JAKARTA (Rambu Energy) – The Indonesian government plans to float shares of two state owned plantation companies, namely PT Perkebunan Nusantara V and PT Perkebunan Nusantara VII on the Indonesian Stock Exchange (IDX).
“In principle, we understand that IPO [initial public offering] is very important as a way to add capital, strengthen financial structure and widen land and replanting,” Antara state news agency quoted Coordinating Minister for the Economy Hatta Rajasa as saying on Thursday night.
Minister Hatta Raja said the government plans to float 30 percent shares of PTPN V and 40 percent shares of PTPN VII.
If the IPO of the two companies materialize, it would be the first IPO of state-owned plantation companies.
Hatta said the IPO can be undertaken in the near future, but did not give timetable for the plan. He said the IPO can be realized after meeting certain requirements, including completing internal restructuring, improving efficiency and an establishment of a holding firm for state plantations.
Hatta Rajasa said he will report to the President over the IPO plan as well as the planned establishment of a state plantation firm holding.
PT Perkebunan Nusantara V engages in palm oil and rubber plantations, located in north Sumatera, with head office situated in Pekanbaru, Riau province.
PT Perkebunan VII manages rubber, palm oil and tea plantations, located in South Sumatera, Lampung and Bengkulu. Its head office is situated in Bandar Lampung, Sumatera.
In 2012, PTPN V posted revenues of Rp5.02 trillion and a net profit of Rp312.28 billion. While, PTPN VII, booked revenues of Rp4.36 trillion and net profit of Rp54.33 billion. (*)