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SOE Ministry aims for up to 12 IPOs in next three years
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Cement producer PT Semen Baturaja has secured an agreement with KALOG—a railway operator, to increase its cement distribution capacity to 800 tons. The state-owned company was the last to enter the stock market in 2013. (Courtesy of/Kalog)
T
he government is targeting between eight and 12 initial public offerings (IPOs) of state-owned enterprises (SOEs) in the next three years to end a hiatus of state-backed companies entering the stock market.
SOE Minister Erick Thohir said on Thursday that the state-owned companies and their subsidiaries were expected to conduct IPOs through Indonesia Stock Exchange (IDX) between 2021 and 2023. He did not specify which companies would offer their shares.
“We already have some [IPO plans] in the pipeline,” he said during the IDX opening ceremony that day. “However, they are not just going public. Their business fundamentals and sustainability must also be good.”
The ministry has long been pushing SOEs to go public to improve their corporate governance and to cut back on state capital injections in the long term, especially after the COVID-19 pandemic forced the government to disburse billions of dollars in relief packages.
Even before the pandemic, state-owned companies have hardly made attempts to go public as they struggled with poor financial conditions. The last SOE that entered the stock market was cement producer PT Semen Baturaja in 2013.
Read also: Semen Baturaja boosts white clay, mortar production in wake of pandemic
State-owned oil company PT Pertamina’s insurance unit, PT Auransi Tugu Pratama, went public in 2018 to fund its expansion.
