Sumary of Indonesia to jump on IPO boom by listing 14 state-owned companies:
- JAKARTA — A fossil fuel shipper and a geothermal energy firm are among the 14 state-owned companies that the Indonesian government plans to list in the stock market by 2023 in an effort to both improve management and replenish public coffers drained by the coronavirus response.
- Indonesia is home to over 100 SOEs, according to the government.
- Out of that number, 34 are already being traded on the stock market — mainly those in key industries like transportation and energy.
- Despite retaining majority stakes in the companies, Jakarta hopes that management will improve by creating distance from the government and making executives aware of the views of minority shareholders.
- “The latest round of IPOs is scheduled to begin this fall on the Indonesia Stock Exchange.
- Dayamitra Telekomunikasi, a tower-building subsidiary of telecommunications leader Telekomunikasi Indonesia, is due to list in the fourth quarter of this year.
- The funds are expected to go toward investments in 5G communications services, which launched in Indonesia this year.
- The 14 companies destined for IPOs include those in designated growth industries such as electric vehicles and health care.