Business Expert From UGM: PHE IPO Has A Good Prospect For Company Development

JAKARTA - Gadjah Mada University (UGM) business expert Professor Nindyo Pramono said that the plan to sell the initial public offering (IPO) of PT Pertamina Hulu Energi (PHE) has good prospects for the company's development.

According to him, PHE can be on par with foreign oil and gas companies such as Chevron and Petronas. In fact, it can also be parallel to Singtel, Singapore's largest communication company.

"This act of releasing shares to the public indicates that the company's business entity is already more advanced," he said in a written statement, quoted from Antara, Monday, June 26.

He said that once the company advances and goes public, it requires a capital structure. This company has good and growing management.

A number of national state-owned companies, he added, also made progress after carrying out the IPO action, one of which was PT Perusahaan Gas Negara Tbk, which developed rapidly after entering the stock exchange.

"After going public, PGN has won the trust that it can cooperate with foreign companies," he said.

Public companies, he continued, did have strong business fundamentals, because before selling shares to the public the company had to go through a series of studies or feasibility studies.

In addition, added Nindyo, the corporation must also obtain approval from shareholders through the General Meeting of Shareholders (GMS).

On the other hand, Nindyo also said that the public also does not need to worry because the PHE IPO will not eliminate state ownership of the company.

"To protect the interests of the state, the government as a shareholder also has veto rights. Thus, the state's right to the company is not lost," he said.

Previously, the Ministry of State-Owned Enterprises (BUMN) confirmed that the plan of PT Pertamina Hulu Energi (PHE) to conduct an IPO will be carried out this year.

However, Deputy Minister of SOEs Pahala Mansury has not been able to reveal the exact time PHE will be listed on the Indonesia Stock Exchange (IDX).

"For PHE, we are waiting for the right timing," he said when met by the DPR RI Building, Jakarta.

According to Pahala, determining the right IPO time is quite important to get optimal results. The plan, PHE will release about 5-10 percent of the shares during the IPO.