Indonesia Eases Share Buyback Rules After Stock Market Rout

Nation's central bank also keeps key interest rate unchanged to safeguard the rupiah

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Indonesia's financial regulator said on March 19 that it would temporarily loosen share buyback rules, following the worst market fall in more than a decade.

On the same day, the nation's central bank kept its key interest rate unchanged for a second straight month, seeking to safeguard the rupiah.

The currency, Asia's worst-performing currency so far in 2025, was last down 0.6 per cent at 16,525 per US dollar.

The moves come a day after a stock market meltdown that was fuelled by a combination of domestic factors — from President Prabowo Subianto's economic policies to a worsening fiscal outlook. A key factor was fear that veteran Minister of Finance Sri Mulyani Indrawati would resign, a rumour she has allayed.

The benchmark Jakarta Composite Index plummeted more than 7 per cent in intraday trading on March 18, the biggest plunge since September 2011. The fall forced the Indonesia Stock Exchange to halt trading for 30 minutes for the first time since the Covid-19 pandemic in 2020.