SOEs public listing plan faces undervaluation, crowding risks
There have been no new initial public offerings (IPOs) by state-owned firms on the Indonesia Stock Exchange over the past three years.
The Indonesian state-owned enterprises (SOEs) plan to list on the Indonesia Stock Exchange (IDX) amid concerns over undervaluation and investor crowding, according to Danantara, the country's state asset fund. Over the past three years, no SOEs have undertaken initial public offerings (IPOs) on the IDX, despite analysts' praise for the strategy's potential to enhance corporate governance and increase market depth.
Well-performing SOEs are expected to benefit from IPOs, providing increased transparency and liquidity. However, the current market volatility has prompted caution, as improperly timed or undertested listings may struggle to attract investors or displace competing enterprises in search of capital. Pandu Sjahrir, Danantara's chief investment officer, revealed that the organization intends to concentrate on the IPO process within the next six to twelve months, under the management of its subsidiary Dam.
According to the head of SOEs Dony Oskaria, a few SOEs are ready to go public, including PT Pegadaian (pawnshop), PT Pupuk Indonesia (fertilizer producer), PT Pelabuhan Indonesia (port company) and PT Angkasa Pura Indonesia (airport operator). Sjahrir stated that the IPO initiative aligns with Danantara's five-year strategy to strengthen and streamline Indonesia's SOE performance.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
