JAKARTA – As market volatility persists, numerous Indonesian issuers are turning to share buybacks to signal confidence and stabilize their positions. While these corporate actions are traditionally viewed as positive indicators, analysts warn that their impact on stock prices remains limited in a sluggish market, urging investors to exercise caution and selectivity in their portfolio choices.
Beyond share buybacks, several companies are also opting for stock splits to improve liquidity and affordability. Sukarno Alatas, a Senior Analyst at Kiwoom Sekuritas Indonesia, notes that while both strategies are theoretically beneficial, their effectiveness depends heavily on current market conditions.
The Strategic Impact of Buybacks vs. Stock Splits
According to Sukarno, share buybacks generally serve as a stronger support mechanism for stock prices. “Buybacks signal that a stock may be undervalued while effectively reducing the number of outstanding shares. Conversely, stock splits are primarily aimed at increasing liquidity and making share prices more accessible to a broader range of investors,” he explained.
Among the companies currently pursuing buybacks, Sukarno highlights PT Alamtri Resources Indonesia Tbk. (ADRO) and PT Mitra Keluarga Karyasehat Tbk. (MIKA) as particularly noteworthy. ADRO has announced a buyback program of up to Rp4 trillion, spanning from April 20, 2026, to April 20, 2027. Meanwhile, MIKA plans to initiate a buyback of up to Rp1 trillion between June 10, 2026, and June 9, 2027.
Why ADRO and MIKA Stand Out
Sukarno points to strong fundamentals for these picks. “ADRO is highly attractive due to its solid first-quarter 2026 performance, inexpensive valuation, and a compelling dividend story,” he said. “MIKA is also a solid choice for the medium to long term, supported by its defensive business model and an increasingly attractive valuation following recent market corrections.”
In the first quarter of 2026, ADRO reported a 23.40% year-on-year (YoY) increase in revenue, reaching US$470.91 million, with growth across all business segments. The company’s net profit surged by 67.07% YoY to US$128.14 million. Similarly, MIKA posted a strong performance with net revenue rising to Rp1.36 trillion from Rp1.27 trillion in the same period last year, alongside a net profit increase to Rp325.80 billion.
Broader Market Trends
Data gathered between March 1 and May 18, 2026, shows that at least 28 issuers have announced buyback plans. This includes PT Bank Mandiri (Persero) Tbk. (BMRI), which plans to buy back up to Rp1.17 trillion in shares. BMRI’s financial health remains robust, with the bank reporting a 16.6% YoY increase in first-quarter net profit to Rp15.4 trillion.
Additionally, PT GoTo Gojek Tokopedia Tbk. (GOTO), which recently achieved profitability with a net profit of Rp171 billion in the first quarter of 2026, has announced a buyback plan of up to Rp3.50 trillion for the period of June 2026 through June 2027.
On the stock split front, three companies have declared plans as of May 18, 2026: PT Rukun Raharja Tbk. (RAJA) with a 1:5 ratio, PT Itsec Asia Tbk. (CYBR) with 1:2, and PT Dian Swastatika Sentosa Tbk. (DSSA) with a 1:25 ratio.
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Summary
Indonesian companies are increasingly utilizing share buybacks and stock splits to stabilize prices and improve liquidity amid ongoing market volatility. While these actions signal corporate confidence, analysts suggest that their effectiveness remains tied to broader market conditions and company fundamentals. Among the active participants, PT Adaro Energy Indonesia Tbk. (ADRO) and PT Mitra Keluarga Karyasehat Tbk. (MIKA) are highlighted as notable choices due to their strong first-quarter 2026 financial performances and attractive valuations.
ADRO has committed to a Rp4 trillion buyback program, supported by significant year-on-year revenue and net profit growth. Similarly, MIKA plans a Rp1 trillion buyback, leveraging a defensive business model that appeals to medium-to-long-term investors. Other major issuers, including Bank Mandiri (BMRI) and GoTo Gojek Tokopedia (GOTO), have also announced substantial buyback plans as part of a broader trend of corporate capital management in the current economic landscape.
