Govt rejects Jasa Marga IPO plan

Govt rejects Jasa Marga IPO plan

JAKARTA: The Indonesian government has rejected PT Jasa Marga's plan to hold a public share offering before the end of the year, a senior government official said on Friday.

"We don't see the need for the company to go public as it could raise funds through other mechanisms such as a bond issue or bank loans," State Enterprises Minister Sugiharto told reporters on Friday.

He did not provide any other reasons for the government's decision, nor did he say whether the government would allow the toll road builder and operator to go public next year.

The government owns 100 percent of Jasa Marga.

Jasa Marga sent its proposal for a public share offering for government approval in the middle of the year. It had planned to raise around Rp 1 trillion (US$111 million) from the sale of at least a 20 percent stake in the company to the public. -- Dow Jones