JAKARTA, Indonesia, Sept. 28, 2022 /PRNewswire/ -- PT Bank Rakyat Indonesia (Persero) Tbk. (IDX: BBRI) is currently conducting a share buyback program worth IDR 3 trillion. Through the Annual General Meeting of Shareholders, BRI received shareholders' approval to carry out the program within 18 months from 1 March 2022 to 31 August 2023.
Head of Research Mirae Sekuritas Indonesia Hariyanto Wijaya revealed the buyback program shows management's belief that the current share price is still undervalued. However, Hariyanto Wijaya, and Mirae Asset Sekuritas Analyst Jennifer A. Harjono are positive the performance of the financial sector will remain strong amid rising fuel prices as supported by the increasing credit growth. With the increase in interest rates and BRI tightening its monetary policy, Mirae Asset Sekuritas estimated that BRI's net interest margin will increase.
"The purpose of the share buyback program is to boost BRI employees' performance through the Employee Stock Allocation (ESA) or Employee Stock Option Plan (ESOP)," explained BRI Finance Director Viviana Dyah Ayu at the Indonesia Stock Exchange's Public Expose Live event on 14 September 2022.
On the same occasion, BRI President Director Sunarso explained, "BRI's management policy was to do the share buyback program to improve the quality of employees, their competencies, and engagement with the company. BRILian personnel who can provide the best value to the company will receive a bonus."
The bonuses take the form of three things: cash, individual investment to improve competence and capability through quality training and education and share ownership. Furthermore, the ESOP bonus is also given because the current portion of BRI shares owned by employees is still less than 1%.
BRI provides non-cash incentives to further increase employee motivation, which in turn will improve the company's performance sustainably. "We will continue to do the share buyback program to give long-term incentive treasury stocks for all BRI employees," added Viviana.
The mindset of BRILian People is expected to lead to the same goal towards the company's vision. BRI aims to become The Most Valuable Banking Group in Southeast Asia and Champion of Financial Inclusion by 2025.
"We will continue to do the share buyback program so that our employees are more engaged, more competent, more competitive, and provide more value for the company," concluded Sunarso.
For more information about Bank BRI, visit www.bri.co.id.
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SOURCE PT Bank Rakyat Indonesia Tbk (BRI)