(MENAFNEditorial)
JAKARTA April 24 2015— In the contrary to the government PT Bursa Efek Indonesia (Indonesia Stock Exchange) encourages the state owned companies which are mandated to run public service obligation (PSO) to do IPO at the capital market.
President Director of IDX Ito Warsito said that PSO was not a barrier for the state owned company to conduct IPO.
“Don’t use PSO as a reason not going public” he said in a discussion about SOE’s IPO Thursday (4/23/2015).
He said one SOE which used to receive PSO was PT Telekomunikasi Indonesia (Persero) Tbk in 1990’s. At the time the shares of Telkom were released to public.
After almost 20 years the TLKM coded company has been one of SOE with biggest revenue and becomes the company with biggest dividend payment to state. Telkom’s market capitalization is also in the top 20 at the IDX.
According to him both SOE or the government do not have to be afraid if the shares of the company will not be subscribed. “Foreign investors do not afraid over PSO” he said.
Investors from all around the world also believes that the performance of the SOEs with PSO will remain grow after the IPO. Foreign ownership in Indonesian company including the SOE is still less than the SOE itself.
As an illustration PSO is kind of cost must be spent by the government due to price disparity of SOE or private sales on certain product of services.
Government sets the policy so that the product or services remain affordable and guaranteed. Those SOEs with PSO are PT Kereta Api Indonesia (Persero) PT Pos Indonesia (Persero) and PT Pelayanan Nasional Indonesia (Persero).
Doing IPO through IDX would benefit SOE such as more power to watch the company's transparency.
“Forced power on transparency can be made if there are more supervisors. Inevitably SOE will supervise capital market regulation” said Ito.
Besides he said SOE's barrier also came from the government such as not allowing them not to conduct IPO. Read more..
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