Danantara prepares IPO of state-owned enterprises within 6-12 months

The Daya Anagata Nusantara Investment Management Agency (Danantara Indonesia) has announced it will prepare initial public offerings (IPOs) for a number of state-owned enterprises (SOEs) within the next 6 to 12 months.

Danantara Indonesia’s Chief Investment Officer, Pandu Sjahrir, stated that the IPO preparation process will be carried out through PT Danantara Asset Management (DAM).

“The process is within DAM. God willing, we can focus on the next 6-12 months. There is also a process later on the Exchange, and the intention is also to add liquidity to the Indonesian capital market,” said Pandu after the Gold ETF Launch at the Indonesia Stock Exchange (IDX) building in Jakarta on Monday.

However, Pandu said he could not yet provide certainty regarding the IPO schedule for SOEs that will take place in the near future.

“Just wait for DAM on that, and also from Mr Dony’s side, he can communicate directly,” said Pandu.

Previously, Danantara Indonesia’s COO, Dony Oskaria, said there are many SOE companies that deserve to be encouraged to conduct IPOs on the IDX.

He said that companies and SOE holding companies such as PT Pegadaian, PT Pupuk Indonesia, PT Pelabuhan Indonesia (Pelindo), and PT Angkasa Pura Indonesia (InJourney Airports) have great potential if they are brought to hold IPOs on the Indonesian capital market.

Dony explained that the IPO plans for these SOE companies have been included in the SOE transformation roadmap for the next five years.

“So which ones will we form strategic partnerships with, which ones will we IPO, which ones will remain closed, we will discuss later with the Ministry of Finance. The direction, of course, is as state-owned. Then finally, we will make those into higher potential targets,” said Dony.