The Indonesia Composite Index (IHSG) experienced a trading halt on Thursday (Jan. 29, 2026), triggering a broad market sell-off. Many stocks plunged by double digits and hit the lower auto-rejection limit (ARB). Despite the intense pressure, several major listed companies responded differently. Rather than joining the panic, some firms took advantage of the sharp decline to repurchase their own shares through buyback programs.

This move was more than a routine corporate action, as it signaled management’s confidence in the strength of their business fundamentals. In essence, share buybacks serve two main purposes. First, they indicate that management believes the stock is undervalued. Second, they help stabilize prices by absorbing part of the selling pressure in the market.

From a psychological standpoint, buybacks are also intended to reassure investors by demonstrating the company’s optimism toward its long-term prospects. At least three issuers were recorded as acting swiftly amid the sharp market correction.

UNTR
Shares of PT United Tractors Tbk (UNTR) had already come under pressure even before the IHSG trading halt, following a licensing dispute involving the Martabe gold mine in South Tapanuli, operated by its subsidiary PT Agincourt Resources. Shortly after, UNTR announced a buyback program without a shareholders’ meeting, running from January 22 to April 15, 2026, with a total allocation of Rp2 trillion funded from the company’s internal cash.

BBCA
PT Bank Central Asia Tbk (BBCA), Indonesia’s largest private bank, briefly fell below the 7,000 level on January 28, 2026. Later that day, after the market closed, management revealed plans for a Rp5 trillion buyback. However, the execution is not immediate, as the proposal still requires shareholder approval at the General Meeting scheduled for March 12, 2026, with the buyback expected to take place over approximately one year.

BBCA has been among the stocks most affected by MSCI’s tightening of free float requirements, given its substantial weighting in the index. With the MSCI review set to continue until May 2026, market volatility may persist, although the buyback plan is expected to help ease pressure and support price stability.

RAJA
Another issuer conducting a buyback is PT Rukun Raharja Tbk (RAJA), a company affiliated with Happy Hapsoro. Management has allocated around Rp250 billion for the share repurchase, fully funded by internal cash and without disrupting operations. The buyback period spans three months, from January 29 to April 28, 2026.

Overall, the swift actions taken by these three companies highlight that the recent market correction has also created strategic opportunities for firms with strong fundamentals and sufficient liquidity. For investors, buybacks can be interpreted as a signal of management confidence, though they should still be assessed alongside macroeconomic conditions, MSCI policy developments, and ongoing challenges in the global market.