Indonesia's state firms prepare to buy back shares

Indonesia's state-owned companies prepare to buy back their shares at the bourse in part to boost the performance of the stock market, a minister said here on Thursday.

State Enterprises Minister Rini Soemarno said that the firms are carrying out analysis over the plan.

"There are some firms have been ready. Still, we are discussing which firm will do it first. We will coordinate them," she said at finance ministry.

The composite index at the Indonesia's stock market has dropped to a level of below 4,000 from its peak at above 5,000 at recent months. On Thursday the index was at 4,430.63.

As many as 13 state firms including those at banking sector and insurance insist to buy back their shares, according to the state enterprises ministry.

The Indonesian government plans to inject 10 trillion rupiah ( some 707.813 million U.S. dollars) into the companies to help them buy back shares, according to state enterprises ministry.

Currently, the ministry is monitoring the shares movement of the state companies, Rini has said.

Previously, the country's Financial Authority Services has allowed the firms to buy back shares to ease the excessive volatility at the stock market.

The government on Thursday unveiled a package plan to be effective next week to help smooth economic growth and prop up weakening rupiah against the U.S. dollar. Endi