Jakarta. State-owned lender Bank Negara Indonesia (IDX: BBNI) plans to repurchase up to Rp 627 billion ($34.6 million) worth of its shares as the bank moves to support its stock price after the shares fell 24.22% year-to-date.

The decline has erased Rp 850 from BBNI's share price this year, leaving the bank with a market capitalization of Rp 129.97 trillion ($7.18 billion). The weakness comes amid macroeconomic headwinds weighing on Indonesian banking stocks, including persistent rupiah weakness, expectations that the Federal Reserve will keep interest rates higher for longer, and foreign fund outflows from emerging markets.

Despite the share price decline, BNI maintained solid financial performance in 2025. The bank posted operating income of Rp 64.98 trillion, while net profit attributable to shareholders reached Rp 20.04 trillion. Gross loans also expanded 15.9% year-on-year, reflecting resilient business fundamentals despite challenging market conditions.

The buyback plan is being carried out under Financial Services Authority (OJK) Regulation No. 13/2023 on policies to safeguard capital market performance and stability during periods of significant market volatility, as well as OJK Letter No. S-10/D.04/2026 dated March 13, 2026 regarding share buybacks by listed companies during periods of significant market fluctuations.

According to a disclosure on Monday, the buyback will be conducted through the Indonesia Stock Exchange (IDX), either gradually or in a single transaction, and completed within three months of the disclosure period, from July 27 to Oct. 26, 2026.

"The buyback will take into account the company's liquidity and capital conditions, as well as prevailing laws and regulations," Corporate Secretary Okki Rushartomo said.

BNI said the shares will be repurchased at prices deemed fair and reasonable in accordance with applicable regulations. The program will be financed entirely from the bank's internal cash, with the estimated Rp 627 billion allocation including transaction costs of up to 0.30%.

Assuming the bank utilizes the full Rp 627 billion in free cash flow for the buyback, its assets and equity would each decline by up to the same amount. However, BNI said the transaction would not have a material impact on operating expenses, allowing earnings to remain in line with the bank's targets.

The lender added that it has sufficient capital and cash flow to finance the buyback while continuing its normal business operations and does not expect the program to have a material adverse impact on its financial condition or operations.

As of 2:41 p.m. Jakarta time, BBNI shares were down 20 points, or 0.57%, at Rp 3,500.