Jakarta. Eleven subsidiaries of Indonesian state-owned companies are planning to conduct initial public offerings throughout this year, allocating the proceeds to help fund business expansion — including various government-initiated infrastructure projects, a senior official at the Ministry of State-Owned Enterprises said.
"Eleven of our companies have expressed interest to go public this year. Some of them had postponed their IPO plans last year," Aloysius Kiik Ro, restructuring and business development deputy at the ministry, told reporters on Wednesday (07/02).
He did not disclose the potential size of the IPOs.
Some of these subsidiaries include Wika Realty, a leasing arm of state-controlled Wijaya Karya (Wika); Tugu Pratama Indonesia, a general insurer and subsidiary of state energy firm Pertamina; Indonesia Kendaraan Terminal and Pelabuhan Tanjung Priok; subsidiaries of Pelindo II, PP Energi and PP Urban Precast; subsidiaries of construction firm PP and HK Realtindo; and a subsidiary of construction firm Hutama Karya.
Aloysius said the SOE ministry will establish a committee comprising ministerial deputies, public policy executives, capital market analysts and experts to assist these companies before undertaking their IPOs.
"The committee will give recommendations on the IPO, acquisition and bond issuance for the SOE subsidiaries," Aloysius said.
The committee will help set the size of the IPOs, the offering price and the schedule.
The main goal of the committee is to streamline the schedule of the IPOs to avoid similar delays to what happened last year.
The committee will also provide suggestions and inputs to SOE Minister Rini Soemarno.
President Joko "Jokowi" Widodo has been urging Indonesia's SOE subsidiaries to seek financing from the capital market for much-needed infrastructure projects, since they cannot depend solely on bank loans.
Infrastructure has been the main focus of Jokowi's administration. The president wants to build 24 new seaports, 15 new airports, 2,650 kilometers of arterial roads, 1,000 kilometers of toll roads, 3,258 km of railroads and 60 ferry slips across the archipelago by 2019.
Last year, 37 companies undertook IPOs, raising a total of Rp 9.6 trillion ($710.06 million), according to data from Indonesia's financial services regulator, the OJK.
In 2016, 14 companies went public, raising a total of Rp 12.1 trillion in proceeds.