Document background
The Equity Buyback Agreement is a crucial document used when an Indonesian company wishes to repurchase its own shares from existing shareholders, whether for treasury stock, capital reduction, or as part of a broader corporate strategy. This document is essential in scenarios such as share price stabilization, excess cash utilization, or shareholder exit arrangements. The agreement must strictly comply with Indonesian regulatory framework, particularly Law No. 40 of 2007 and OJK regulations, which set specific requirements for share buybacks including maximum buyback limits, pricing mechanisms, and holding periods. The document becomes especially critical for listed companies where additional regulatory oversight applies. It should address key aspects such as purchase price determination, payment terms, conditions precedent, and necessary corporate and regulatory approvals, while ensuring protection of minority shareholder interests as required under Indonesian law.
