Indonesia's BUMN Minister Rini Wants More State Companies to Go Public

Jan 05, 2016 15:00 JST

JAKARTA, INDONESIA, Jan 05, 2016 - (ACN Newswire) - Minister for state-owned companies (BUMN) Rini Soemarno said she wants more BUMNs to go public to raise capital for business expansion.

"In 2016 we will see that more BUMNs would be more self supporting financially and less dependent on state capital participation," Rini said here on Monday after attending the reopening of share trade at the Indonesian Stock Exchange (BEI) after long holiday.

She said the ministry is studying a number of state companies potential to launch initial public offering (IPO) and consider raising the number of shares of listed BUMNs to be floated in the stock market.

Aluminum smelting company PT Indonesia Asahan Aluminium (Inalum) in North Sumatra is one of state companies expected to launch IPO, as it has a number of projects to be developed in the coming years, she said.

"Inalum has many down stream projects that are potential for development," she added.

Meanwhile, BEI President Director Tito Sulistio said the BEI management has made presentation to the Parliament about plan to simplify the IPO process for efficiency.

"We hope, the Law on BUMN is included in the national legislation program of the Parliament in 2016," Tito said.

BEI hopes that 35 more companies including BUMN and BUMN subsidiaries, would launch IPO in 2016, he said, adding currently BEI is processing IPO proposals from five companies.

Chief commissioner of the Financial Service Authority (OJK) Muliaman D. Hadad said companies including BUMNs could utilize capital market to mobilize funds to strengthen management system and gain greater confidence.

"Capital market becomes an alternative source of long term financing, therefore, market expansion would continue.

"More companies would be encouraged to launch IPO and local investors are expected to enter the market. Education and socialization would be intensified," Muliaman said.

He said OJK would also promote supervision system to maintain the credibility of stock market in the eye of investors in facing the implementation of the ASEAN Economic Community. --Antara.

Sectors: Daily Finance, Daily News