JAKARTA — Technology giant PT GoTo Gojek Tokopedia Tbk (GOTO) has announced a significant capital allocation strategy, revealing plans to execute a share buyback program valued at up to Rp3.5 trillion. This initiative is set to span over the next 12 months, signaling the company’s commitment to enhancing long-term shareholder value.
According to an information disclosure filed with the Indonesia Stock Exchange (IDX), the buyback period is scheduled to run from June 19, 2026, through June 18, 2027, following approval from the Extraordinary General Meeting of Shareholders (EGMS). Management clarified that the total volume of shares repurchased will not exceed 10% of the company’s issued and paid-up capital, a figure that already accounts for current treasury shares.
As of April 30, 2026, GOTO held 39.29 billion treasury shares, representing approximately 3.30% of its total issued and paid-up capital.
Strategic Objectives and Capital Management
GOTO’s decision to initiate this buyback is driven by several key objectives. Primarily, the company aims to gain greater flexibility in managing its capital structure, ensuring that it remains optimized for future operations. By repurchasing its own shares, management believes the market price will better reflect the company’s true fundamental value, ultimately providing more robust returns for shareholders.
Reflecting on previous efforts, GOTO CEO Hans Patuwo noted that the company has already deployed US$140 million toward share buybacks since 2024. “We remain committed to maintaining a comfortable and relatively high cash level to provide the flexibility to capitalize on emerging opportunities and respond to competitive requirements,” Patuwo stated during a recent earnings call.
A Path Toward Greater Profitability
Supporting these initiatives is a healthy financial position. CFO Simon Ho highlighted that GOTO currently maintains a gross cash balance of approximately US$1.4 billion. He emphasized that the company’s core business fundamentals are strengthening, bolstered by a steadily improving adjusted free cash flow.
“As the company becomes increasingly profitable and generates stronger cash flow, we intend to systematically and sustainably return capital to shareholders via buybacks,” said Ho. “We are actively reviewing a broader capital allocation strategy to drive long-term value creation.”
Ho further suggested that share buyback activity in the coming quarters may surpass the levels seen in previous periods, reflecting the company’s optimistic outlook on its financial trajectory.
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Summary
PT GoTo Gojek Tokopedia Tbk (GOTO) has announced a share buyback program valued at up to Rp3.5 trillion, scheduled to take place from June 19, 2026, to June 18, 2027. This initiative, which requires shareholder approval, will be limited to 10% of the company’s total issued and paid-up capital. The move aims to optimize the company’s capital structure and ensure that the market price better reflects its fundamental value.
Supported by a strong financial position with a gross cash balance of approximately US$1.4 billion, the company remains committed to returning capital to its shareholders. Executives highlighted that strengthening core business fundamentals and improved free cash flow provide the necessary flexibility for these buybacks. Management indicated that future buyback activity may increase as part of a broader strategy to drive long-term value creation.
