Government ready to carry out share buy-back program through PIP

Jakarta (ANTARA News) - The government is ready to continue its share buy-back program in the Indonesian Stock Exchange (BEI) through the Government Investment Center (PIP) whose fund management also involves the asset management company PT Perusahaan Pengelolaan Aset (PPA), a senior official said. 

"The funds available at the PIP amount to Rp4 trillion, of which Rp2.5 trillion is managed by the PIP itself while the remaining Rp1.5 trillion is managed by the PPA," Muhammand Said Didu, secretary of the office of the state minister for Natinal Development Plan/chairman of National Development Planning Board (Bappenas), said here on Monday. 

He said that at present PPI was under the process of appointing a security firm which would be named as a buy-back broker for state-owned enterprises (SoE). 

"Once the security firm has named, the PPI and PPA will realize this week the buy-back of SoE's shares," Didu said. 

The funds with PPI were reserve funds for infrastructure development. 

Apart from the PPA, the government is also encouraging 10 publicly listed SoEs to buy back their shares at BEI with a fund accumulation reaching Rp7 trillion. 

Didu said that the office of the Ministry of Enterprises only provided directives, not intervening in the implementation of the buy-back program.