Demanded By Pramono On The Stock Exchange, PAM Jaya Will Change Perumda Status To Perseroda

JAKARTA - DKI Jakarta Governor Pramono Anung targets Perumda PAM Jaya to start conducting initial public offering (IPO).

Responding to the discourse, PAM Jaya President Director Arief Nasrudin admitted that his party would first propose a change in the form of a legal entity from Perumda to a regional company (perseroda).

"We are preparing to change the company's status from Perumda to a company company. Now this will only be encouraged to enter the proposal to the Governor," Arief told reporters, Tuesday, May 6.

Arief admitted that PAM Jaya could actually start to take the floor on the stock exchange with the form of a Perumda legal entity. However, changing status to a company makes public trust stronger.

"The Perseroda makes the P3 public-private partnership stronger. Like Jakro, Bank DKI, they already have all of them. So I think it's one of the strengthening," said Arief.

On the one hand, Arief believes PAM Jaya can release its shares to the public because it has a 100 percent clean water service coverage target in the next four years.

"Because services are already very high, yes, it's already 70.4 percent. So it is necessary, this company needs to be independent to be able to find creative financing processes," he explained.

Previously, DKI Jakarta Governor Pramono Anung revealed that until now the DKI Provincial Government was still reviewing the discourse on the IPO Perumda PAM Jaya.

If the regional-owned enterprise (BUMD) managing clean water services starts to take the floor on the stock exchange, Pramono projects to sell shares of up to 20 percent.

"It is possible that if the IPO is issued, you will get fresh funds if you release 20 percent. Later, it may be around Rp. 6 trillion to Rp. 8 trillion," said Pramono in the Menteng area, Central Jakarta, Monday, May 5.

However, the DKI Provincial Government still opens opportunities to take other options to develop PAM Jaya's business. One of them is to make strategic partnerships with other business entities.

Pramono targets PAM Jaya to be able to meet 100 percent clean water service coverage in Jakarta by 2029. Currently, PAM Jaya's service coverage is still 70 percent. This achievement target will be considered in making decisions on the development of PAM Jaya companies.

"Right now, we are still studying deeply. Because whatever, this water is different. Whatever the water has to be really for the needs of the community, and we don't want to be wrong in that problem," explained Pramono.

"So, in deciding whether the IPO or the strategic partner, we decide carefully," he added.