Juridic Review of Share Buyback by Issuer in Market Fluctuation Conditions Due To Covid-19 Pandemic

Abstract

This study aims to discuss issues regarding share buybacks by issuers in fluctuating conditions due to the Covid-19 pandemic in Indonesia. The problems caused by the spread of Covid-19 are very complex, including issues regarding share buybacks by issuers. This study uses a normative juridical research method, using secondary data. Based on the results of the study, it is known that the comparison of the implementation of buybacks in normal economic conditions and in critical economic conditions can be clearly shown by the author through the table in the discussion. However, basically there is a waiver of the implementation of the GMS and the need to determine certain conditions by the government and/or through the authorized regulator in the capital market sector. The position of OJK Circular Letter No. 3/SEOJK.04/2020 of 2020 regarding the implementation of stock buback is as a stipulation of other conditions as mandated in POJK No. 2/POJK.04/2013. Stock trading conditions on the Indonesia Stock Exchange since the beginning of 2020 until the issuance of this Financial Services Authority Circular Letter have experienced significant pressure as indicated by the decline in the Composite Stock Price Index (JCI) by 18.46% so that it needs attention from the government and regulators.