Indonesia allows companies to buy back own shares without shareholders' approval
JAKARTA - Indonesia's financial services authority has allowed publicly-listed companies to buy back their own shares - up to 20 per cent of their total capital - without shareholders' approval.
The agency issued this rule late on Tuesday night, just four days after it passed a regulation allowing such a buyback - on condition that the stock market index declines by 15 per cent or more within three consecutive days.
The change came as the Jakarta Composite Index fell below the 4,000 level for the first time in a year, according to Bloomberg data, but rose to close at 4,026 points on Wednesday.
It had declined as much as 3.3 per cent earlier during the day, but turned around after state pension fund managers, including the largest Jamsostek, bought shares.