MEASURING THE PROSPECTS OF SOE’s IPO 2023
Starting in 2023, there are around eight companies that will take the floor on the Indonesia Stock Exchange (IDX) through an initial public offering (IPO) of shares. Based on data released by the Indonesia Stock Exchange, there are 64 prospective issuers in the pipeline who plan to conduct an IPO in 2023.
The BUMN Ministry noted that there are four state-owned companies that will take the floor on the Indonesia Stock Exchange through an Initial Public Offering (IPO) in 2023. The four companies are BUMN subsidiaries engaged in the food to energy sectors.
BUMN Deputy Minister I Pahala Nugraha Mansury detailed, the BUMN subsidiaries which listed their initial shares on the capital market this year consisted of PT Pertamina Geothermal Energy (PGE), PT Pertamina Hulu Energi (PHE), Palm Co, and PT Pupuk Kalimantan Timur (Pupuk East Kalimantan). The IPO of four BUMN subsidiaries is the government’s strategy to improve food and energy security in the country.
PGE is a subsidiary of PT Pertamina Power Indonesia under the auspices of PT Pertamina (Persero). Currently the company manages 13 Geothermal Working Areas (WKP) with a total installed capacity of 1877 MW.
PGE utilizes geothermal energy through direct and indirect utilization schemes. Currently, most of the geothermal utilization is carried out by indirect utilization schemes.
Of course, a large capex is needed to build PGE’s strength, especially since there are plans to merge the geothermal state-owned businesses and PGE is one of the strongest candidates as a holding company. So the IPO plan is considered quite important and strategic for PGE. It is hoped that this IPO will not only be for fund raising, but with the status of a Tbk, it is hoped that the performance of this state company can be better because of greater GCG demands.
