PT MedcoEnergi Internasional (IDX: MEDC) has announced the plan to buy back 407 million shares, or equivalent to 1.62 percent of the issued and fully paid capital within the next three months after the disclosure of information submitted on Tuesday, March 25, 2025. 

Corporate Secretary of PT MedcoEnergi Internasional, Siendy K. Wisandana, said that this move aims to increase return on equity (RoE) and provide greater flexibility in managing the company's capital.

"The share buyback will provide greater flexibility for the company in managing capital and maximizing returns to shareholders," Siendy in the disclosure of information as quoted on Tuesday, March 25, 2025

Siendy emphasized that this buyback will not have a negative impact on the company's income.

"The company has sufficient working capital and cash flow for the buyback, so there will be no material negative impact on the company's finances," she added.

MedcoEnergi CEO, Roberto Lorato, said that the buyback decision reflects the company's belief in strong business fundamentals and long-term growth prospects.

"We remain committed to optimizing capital allocation and continuing to create value for shareholders," Roberto said.

In implementing this buyback, MedcoEnergi has allocated US$50 million. The funds include transaction fees, intermediary traders, and other costs estimated to reach Rp925 million.

As of February 28, 2025, the number of treasury shares owned by MedcoEnergi reached 119,453,088 shares or 0.48 percent of the issued and fully paid capital.

MedcoEnergi management has appointed PT BRI Danareksa Sekuritas to carry out the buyback through trading on the Indonesia Stock Exchange (IDX).

"Share buybacks will only be carried out if they provide benefits to the company and shareholders," Siendy said.

Strengthend shares

From the Stock Exchange floor, MEDC shares closed up 2.62 percent to Rp980 in trading on Tuesday, March 25, 2025. However, on an annual basis (year-on-year) MEDC shares experienced a decline of 30.25 percent or 425 points.

Going forward, Siendy said, MedcoEnergi will continue to focus on operational excellence, portfolio optimization, and sustainable energy initiatives to ensure long-term business resilience and growth.