Pramono Still Reviewing PAM Jaya's IPO, 20 Percent Of Shares Plans Are Released

DKI Jakarta Governor Pramono Anung/DOK Public Relations DKI Provincial Government

JAKARTA - DKI Jakarta Governor Pramono Anung revealed that until now the DKI Provincial Government is still reviewing the discourse on the initial public offering (IPO) of 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.

Previously, Pramono targeted two DKI BUMDs to be listed on the stock exchange during his leadership in Jakarta. One of them is PAM Jaya. If the coverage of clean water services in Jakarta has reached 100 percent, according to Pramono, PAM Jaya deserves to be listed on the stock exchange.

"PAM Jaya has a market of approximately 2.5 million. If repairs are made, it can be 100 percent and then the customers are above 3 million, in my opinion, if IPO is made into something extraordinary and very big," said Pramono.