Corporate action plan: Jumbo IPO of SOE subsidiaries
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Rencana aksi korporasi: IPO jumbo anak BUMN
9 February 2023
By: Muhammad Ghafur Fadillah
Jakarta - Two state-owned enterprise (SOE) subsidiaries, PT Krakatau Sarana Infrastruktur and PT Pertamina Huku Energi, are targeting trillions of rupiah in funding from their plan to hold an initial public offering (IPO) at the Indonesia Stock Exchange (IDX) this year.
PT Krakatau Steel (Persero) Tbk (KRAS) President Director Purwono Widodo said that PT Krakatau Sarana Infrastruktur (KSI) was expected to obtain up to US$200 million or around Rp3 trillion in funding from the IPO.
“Rp2.1 trillion or 70% is planned to be used for KSI’s development,” Purwono said to Bisnis on Wednesday (8/2).
Purwono said that Rp500 billion would be used by KSI for acquisitions and land development in Krakatau Industrial Estate (KIK) 3. Besides that, the funding will also be used to build infrastructures, such as roads, drainage channels, gates, wastewater treatment plants, and others.
Then, Rp300 billion will be allocated to reclaim land management right (HPL) 15 in Cilegon, Banten. The funding will be used to cover consulting, licensing, and reclamation costs.
“HPL 15 reclamation worth Rp300 billion for consulting, licensing, and reclamation costs, as well as others,” he explained.
KSI will also allocate Rp1.3 trillion to develop Krakatau Urban Valley (KUV). KUV development includes land purchase and housing construction by Krakatau Steel, consulting cost, and KUV development cost.
In other developments, the IPO plan of the subsidiary of PT Pertamina (Persero), PT Pertamina Hulu Energi (PHE), is still waiting for the completion of the financial report audit as of December 2022.
Special Staff to SOE Minister Arya Sinulingga said that after the audit process was completed, it would be forwarded to the Financial Services Authority (OJK) to continue the IPO process.
“If the report has been issued, the financial report can [be used to] continue the IPO process. With an IPO, PHE will look for fresh funds for expansion,” Arya said at SOE Ministry Building on Wednesday (8/2).
Previously, OJK Derivative Financial Capital Market and Carbon Exchange Supervisory Executive Chairperson Inarno Djajadi said that PHE’s IPO fundraising target was around Rp8 trillion to Rp9 trillion. However, it depends on the market’s interest and condition.
On the other hand, PT ASDP Indonesia Ferry (Persero) ensures that there will be no IPO in 2023. ASDP Planning and Development Director Harry M.A.C. said that an IPO had been prepared even though it would not be realised this year. ASDP is still waiting for the direction from the SOE Ministry regarding if an IPO can be carried out in 2024.
