Dian Swastatika Is Flooding the Market With Nearly 10 Billion Shares — Can Foreign Buyers Absorb the Deluge?

Shares of Sinar Mas Group subsidiary PT Dian Swastatika Sentosa (DSSA) surged 10.3% to IDR 1,075 on August 10, the same day the company began selling up to 9.63 billion treasury shares — roughly 5% of all issued stock — back into the open market. The paradox of a stock rising on news that could massively increase supply tells a story about regulatory deadlines, foreign appetite, and a market betting the selling will be orderly.

• Indonesia's Regulator Forced the Company's Hand. Under OJK Regulation No. 29 of 2023, companies that buy back their own shares must transfer those treasury shares within a set deadline or lose the ability to conduct future buybacks.

DSSA is now selling back 9,631,904,000 shares — equal to 5% of total issued and listed shares — through the Indonesia Stock Exchange.

The transfer requires no shareholder meeting approval , and PT Sinarmas Sekuritas is handling the execution, scheduled from August 10 until completed. This is compliance, not strategy.

• Foreign Money Was Already Piling In Before the Sale Started. On August 6, DSSA topped the entire exchange's foreign net buy list , with IDR 317.7 billion in net foreign purchases. The stock climbed 12.14% that day and another 0.52% on August 7, meaning today's pop extends a 28.7% rally in just four sessions from IDR 835. That kind of momentum suggests large institutional buyers view the treasury dump as a rare chance to accumulate a thinly traded Sinar Mas holding company at scale.

• The Underlying Business Is Coal-Heavy and Shrinking on the Top Line. In 2025, subsidiary Golden Energy Mines (GEMS) contributed roughly 89% of DSSA's total revenue.

Full-year 2025 revenue fell 7.5% to $2.79 billion, while earnings dropped 25.4% to $230.5 million.

Q1 2026 showed a partial stabilization, with net profit rising 3.8% year-over-year to IDR 1.39 trillion , but revenue still slipped 4.5% to IDR 11.68 trillion. Buyers are betting on a floor, not a growth story.

• A Massive Treasury Overhang Remains. After this transfer, DSSA still holds 37.9 billion treasury shares — nearly four times the current tranche. An extraordinary shareholder meeting is scheduled for September 10 , with an undisclosed agenda. Future dispositions could pressure the stock once the current buying wave fades. For now, foreign flows and regulatory clarity are winning the tug-of-war against dilution risk — but the overhang is enormous.