The government plans to privatize oil and gas company PT Pertamina in 2012 via an initial public offering, Minister of State Enterprises Affairs Sofjan Djalil said Tuesday (13/11/07).
Starting in December, Pertamina's management will adopt all regulations issued by the government's capital market watchdog Bapepam in running the company. "We need five years to increase Pertamina's value," Dow Jones quoted Djalil as telling a press conference in Bali.
Some of Pertamina's subsidiaries may sell shares to the public over the next one to two years, Djalil said, though he declined to provide further details.
He did not give details on the amount of money that would be raised from the IPO or the size of the stake that will be listed.
Pertamina's unit, PT Elnusa, had said it plans to offer 20% of its shares in an initial public offering in December, which could raise as much as $100 million, to repay some of the company's debt and finance its expansion plan.
Indonesian companies have raised more than $3 billion so far this year in initial public offerings and follow-on equity sales, according to Thomson Financial, marking a record for Jakarta's stock market.