Analysts welcomed the plan, particularly for well-performing SOEs, saying initial public offerings (IPOs) could improve transparency and inject more liquidity into the bourse. But with the stock market already under pressure, they cautioned that poorly timed or inadequately prepared listings could struggle to attract investors or crowd out other companies seeking fresh capital.

Danantara chief investment officer Pandu Sjahrir told reporters on Monday that the agency would focus on the IPO process over the next 6-12 months, which would be carried out by Danantara Asset Management (DAM), a subsidiary that is responsible for managing and operating SOE assets.

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“The effort is also intended to add liquidity to the capital market,” he said. 

Previously, Danantara chief operating officer Dony Oskaria said several SOEs were considered ready to go public, including state-owned pawnshop PT Pegadaian, state fertilizer producer PT Pupuk Indonesia, state port company PT Pelabuhan Indonesia and state airport operator PT Angkasa Pura Indonesia.

“Many of our SOEs are good for IPOs based on their market capitalization,” said Dony on Thursday, as quoted by news agency Antara. 

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According to him, the IPO plan is part of Danantara’s five-year road map to consolidate and enhance Indonesia’s SOE performance. 

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