Subsidiaries of SOEs to Seek Rp 21t From IPOs This Year

Indonesia will push nine subsidiaries of state-controlled companies to undertake initial public offerings this year to raise a total of up to Rp 21 trillion ($1.57 billion) in fresh funds. (Antara Photo/Audy Alwi)

By : Sarah Yuniarni | on 8:05 PM March 10, 2017
Category : Business, Corporate News

Kuta, Bali. Indonesia will push nine subsidiaries of state-controlled companies to undertake initial public offerings this year to raise a total of up to Rp 21 trillion ($1.57 billion) in fresh funds that will allow them to fund business expansions, a high-level official at the Ministry of State-Owned Enterprises said on Friday (10/03).

"Three companies will undertake IPOs in the second quarter, followed by three more in the third quarter and the rest will be in the last quarter," Aloysius Kiik Ro, a deputy for restructuring and business development, told reporters on the sidelines of an event held by the Indonesian Stock Exchange (IDX) in Bali.

He said the nine companies include Tugu Pratama Indonesia, a subsidiary of state-owned energy firm Pertamina, and Jasa Pratama, a subsidiary of state-owned port operator Pelindo II.

Aloysius did not disclose the remaining subsidiaries, but hinted that subsidiaries of national flag carrier Garuda Indonesia and state-controlled builder Wijaya Karya, known as Wika, are also in the list.

"Each of these nine companies will sell at least 20 percent to 25 percent of their enlarged capital," Aloysius said. He added that the ministry will push the subsidiaries of the two companies to take the lead.

As the Jakarta Globe previously reported, companies planning to conduct IPOs this year include Wijaya Karya Realty and Wijaya Karya Bangunan Gedung, which are the building construction and developer arms of Wika.

Wika Gedung will undertake an IPO in the second half of this year, while Wika Realty eyes an IPO by the end of the year. It will use the proceeds to fund property projects in Cawang, East Jakarta, and in Bendungan Hilir, Central Jakarta.

PP Peralatan Konstruksi, PP Energi and PP Urban Precast – all subsidiaries of state-controlled builder PP – are reportedly eyeing IPOs this year. Local media reports say PP Peralatan Konstruksi may be the first of them to go public in July.

PP Energi seeks to use the proceeds to increase its power generating capacity to 2,000 megawatts by the end of next year from 100 megawatts currently.

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