State-Owned Banks Plan Stock Buyback, Bank Mandiri Remains Cautious

Several state-owned banks are planning to repurchase their shares (buyback) as banking stocks face a correction.

PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI) and PT Bank Negara Indonesia (Persero) Tbk. (BBNI) have announced buyback plans worth up to IDR 3 trillion and IDR 905 billion, respectively. But what about PT Bank Mandiri (Persero) Tbk. (BMRI)?

When asked about the matter, Bank Mandiri President Director Darmawan Junaidi stated that there had been no discussions regarding a buyback plan.

"Not yet, not yet," Darmawan said at the Mandiri Investment Forum (MIF) 2025 on Tuesday, February 11, 2025.

Bank Mandiri Yet to Discuss Buyback, Awaiting BUMN Decision

Meanwhile, Bank Mandiri Corporate Secretary M. Ashidiq Iswara confirmed that there had been no internal discussions regarding the buyback initiative.

He mentioned that Bank Mandiri still needs to confirm with the Ministry of State-Owned Enterprises (BUMN) whether this corporate action will be brought up during the Annual General Meeting of Shareholders (AGMS).

"Not yet, really not yet. We need to check first. I don’t know, we have to verify with BUMN," Ashidiq said during the same event.

Ashidiq emphasized that a buyback cannot be done simply because other state-owned banks are doing it. Any such decision must undergo thorough analysis and internal discussions.

Nevertheless, he remains optimistic about Bank Mandiri's performance, highlighting the company’s strong fundamentals, which could support BMRI’s stock movement.

"What I can say is that our fundamentals are solid, so we remain optimistic. We can rely on them," he concluded.

BMRI Stock Drops Nearly 13% in a Week

Over the past week, BMRI shares have plunged 12.86%, now standing at IDR 4,880. This is a significant decline from the IDR 7,450 level recorded on September 23, 2024.

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