Indonesia's OJK Extends No-RUPS Buyback Rule to June 2027

Indonesia's OJK has extended the window for listed companies to buy back their own shares without shareholder meeting approval to June 2027. The policy, originally due to expire at the end of December 2026, now gets roughly six more months.

Hasan Fawzi, OJK's chief executive for capital market, derivative finance, and carbon exchange supervision, announced the extension at a press conference at the Indonesia Stock Exchange in Jakarta on Monday, October 26. "We are extending the enforcement period of the buyback policy without shareholder meeting approval, which was originally set to end this year, to June 2027," Hasan said, according to Antara.

Why the Extension

Hasan said the extension responds to requests from Indonesian listed companies seeking certainty over the timeframe for this fast-track mechanism. It also gives more room, he said, to companies currently running or planning to start buyback programs.

"This certainly responds to requests for certainty on the timeframe for buybacks without shareholder meeting approval from our issuers, who appear to have assessed their share prices are at levels that allow them to carry out this buyback activity," Hasan said, per Antara's report.

That explanation suggests many issuers see their share prices trading below what they consider fair value, making an immediate buyback more attractive than waiting through a formal shareholder meeting process.

What RUPS Is and Why It Can Be Skipped

RUPS, or the General Meeting of Shareholders, is the highest decision-making forum at a publicly listed Indonesian company, where shareholders vote on corporate actions including share buybacks. The normal process takes time because it involves public announcements, formal meeting notices, and the meeting itself, a cycle that can stretch for weeks.

The no-RUPS buyback scheme skips that sequence. Issuers can start repurchasing their own shares in the market as soon as management decides the price is right, without waiting for shareholders to vote at a formal meeting.

Rules Companies Still Must Follow

The extension does not give issuers a free hand. Hasan stressed implementation must still comply with OJK Regulation No. 13 of 2023, which he said is designed to give companies flexibility while preserving market stability and investor confidence.

Companies must also follow OJK Regulation No. 29 of 2023, specifically Articles 6, 9, and 14. These provisions require prudence, a buyback size matched to the company's financial capacity, and mandatory public disclosure.

Hasan also underlined that buybacks cannot be allowed to undermine the minimum free float requirement. "We also affirm that implementing this buyback must not neglect the obligation to meet minimum free float, so there is no contradiction with our strong desire to keep increasing share free float as set out in exchange regulations," he said.

There is also a follow-up obligation once a buyback wraps up. Issuers must resell or otherwise dispose of the repurchased shares according to the rules and timeframes in place, rather than holding them in treasury indefinitely.

The Free Float Connection

Free float refers to the portion of a company's shares that trade freely among the public, excluding stakes held by controlling shareholders or affiliates. The Indonesia Stock Exchange sets minimum free float requirements to protect liquidity and prevent a handful of parties from easily moving a stock's price.

When a company runs a large buyback, the share count available to the public temporarily shrinks. That is why OJK keeps stressing these two policies, the no-RUPS buyback window and the push for higher free float, are meant to work together rather than against each other.

An MSCI Timing Note

IDNFinancials, in its report on the extension, linked the policy's timing to the release of an MSCI decision, though the outlet did not spell out the details of that connection in the coverage available. MSCI is a global index provider widely used by foreign fund managers to guide capital allocation into emerging markets, Indonesia included.

Index provider decisions of this kind typically influence foreign fund flows into or out of specific stocks on the Indonesia Stock Exchange, so it makes sense that the timing of a domestic policy like this buyback extension gets read in that broader context.

Issuers That Have Already Used This Route

The no-RUPS buyback mechanism has already been used by several large issuers. Bank BCA extended its share buyback period to October 23, 2026. Bank BRI had also prepared a Rp1 trillion buyback fund amid capital market volatility, according to Antara's reporting.

These examples show large banking issuers in particular have leaned on the fast-track buyback option during periods of market turbulence, since it lets them act in the market immediately without waiting weeks for a formal shareholder meeting process.

What It Means for Investors

The extension signals the fast-track buyback option will remain available to Indonesian listed companies at least through mid-2027. There are a few concrete things retail and institutional investors can track from here.

First, watch disclosure announcements from issuers planning new buybacks under this scheme, since the rules require transparency on both plans and execution. Second, keep an eye on free float ratios for companies running large buybacks, since a free float that drops too low can hurt liquidity and affect an issuer's standing in certain indices.

Third, track the timeline for reselling repurchased shares. Shares bought back cannot be held forever, so there is a chance they return to circulation at some point under the applicable rules, which could affect future share supply.

Finally, this policy on its own is not a guarantee any particular stock price will rise. A buyback is simply one tool issuers can use to support their share price when they consider it undervalued, not an instrument that automatically shifts the broader market trend.