Regarding PHE's IPO, Ahok: Not Making Money But Looking For Partners

JAKARTA - President Commissioner of PT Pertamina (Persero), Basuki Tjahaja Purnama or Ahok emphasized that Pertamina Hulu Energi's main goal (PHE) to conduct an initial public offering (IPO) is to find strategic partners or strategic partners.

Furthermore, Ahok emphasized that the main goal of the IPO of Pertamina's subsidiary was not to seek additional funds.

"The principle is that we want to find a real strategic partner. If we can get a strategic partner, then the IPO is also allowed," Ahok said when met at the BUMN Ministry office, Jakarta, Tuesday, July 18.

Pertamina as the parent does target PHE to be listed on the Indonesia Stock Exchange (IDX) this year. However, Ahok said PHE's IPO was not in a hurry because it was not an urgent matter.

"We are targeting (IPO) this year. But if this year we can't get a good partner, it's not urgent, it's not money, right. We don't need money, right," said Ahok.

In the process, continued Ahok, finding strategic partners can come from anywhere, including with the help of the Investment Management Institution (LPI) or the Indonesia Investment Authority (INA). The criteria for strategic partners that are sought are those that can bring added value to the PHE business, to technology.

"We can contact INA too. So in principle, we are not about making money, actually SOEs are IPOs, we want to get strategic partners, we want to make them more transparent. We want that partner to bring added value, bring technology, bring money. That's the goal, "explained Ahok.

Regarding the IPO, Ahok said, there are still obstacles in the Financial Services Authority (OJK) regulations, where the number of shares released to the public is at least 7.5 percent.

"It's from the OJK, it's 7.5 percent or how much, it's really big. If we can't achieve it like that, maybe we're in accordance with the consultants, I don't know what kind of Deputy Minister or Minister, what kind of decision," said Ahok.