Indonesia’s largest telecommunications provider, PT Telekomunikasi Indonesia, is prepared to buy back its shares if the stock price plunges too far below normal valuation, the company’s chief executive said.
Shares in Telkom plunged as much as 6.1 percent to 10,000 rupiah on Tuesday. The stock has fallen 22.5 percent since an all time high of 12,900 rupiah in May.
“We have 10 trillion rupiah ($922.08 million) in cash. However, we haven’t allocated a specific amount for buyback yet,” said CEO Arief Yahya.
Last week, Indonesia’s state-owned enterprises minister asked state firms to buy back shares, which have been falling sharply on concerns over the country’s widening current account deficit and broader worries hitting emerging markets in general.
Telkom shares were down 5.16 percent at 10,100 rupiah, with the fourth highest turnover of the day, while the broader Jakarta Composite Index dropped 3.55 percent.
$1 = 10,845 rupiah Reporting by Fathiya Dahrul,; Editing by Anupama Dwivedi