Admits The Road To The IPO Pramono's Demand Is Not Easy, President Director Of PAM Jaya: Actually I Sported The Heart There

President Director of PAM Jaya Arief Nasrudin/PHOTO: Diah Ayu-VOI

JAKARTA - President Director of Perumda PAM Jaya Arief Nasrudin admitted that his company's plan to take the floor on the stock exchange or conduct an initial public offering (IPO) as stated by the Governor of DKI Jakarta, Pramono Anung, was not a simple matter.

He said the process towards an open company targeted to take place in 2027 demands many fundamental changes internally.

"Actually I'm a heart sport there. Because whatever it is, it has to be, not only professional language, but also transferable, accountable, credible. If not, you can lower your shares. And we have to maintain that performance," said Arief at DKI Jakarta City Hall, Friday, September 19.

Arief said that currently his party is still cleaning up a number of administrative obligations, ranging from legal audits, financial procedures, to operations.

On the one hand, Arief admitted that the IPO is one of the creative ways to fund the big projects that PAM Jaya is currently working on. The main thing is the fulfillment of the coverage of piped clean water services of up to 100 percent in 2029. He said this mechanism is more flexible than the usual business cooperation scheme.

"If the IPO actually raises people's funds, it will make us able to regulate the dividends that will be given to the community," he said.

However, this step could not be taken before there was a change in PAM Jaya's legal status from Perumda to Perseroda. Arief hopes that the process towards the IPO can run after the political support and regulations at the DPRD level are completed.

"If the company doesn't change, the legal entity doesn't change, I can't IPO. That's why I'm asking DPRD colleagues for help," said Arief.

On the one hand, Arief emphasized, the status of an open company or Tbk. is not identical to the privatization or control of the private sector. He gave an example of a state company that has been in open status for a long time.

"And I say this, Tbk. It's not a privateization quote-unquote as if it's controlled by the private sector, isn't it. If it's not possible, there are also some in BUMN that are already running, already running, it's Tbk. , like PLN, Timah, Antam, sampao bank hebara. It's not a private property, it's still a country," he said.

Previously, DKI Jakarta Governor Pramono Anung explained the reason he wanted to change the form of Perumda PAM Jaya's legal entity to a limited company (PT).

According to Pramono, with the change in the status of PAM Jaya's legal entity, the DKI Provincial Government can expand capital participation for regional-owned business entity (BUMD) infrastructure projects in the drinking water service sector apart from the APBD.

"Indeed, in the current era, not all of these projects must be fully funded by the APBD," said Pramono at the Pesanggrahan IPA, South Jakarta, Tuesday, September 9.

In a plenary meeting of the DKI Jakarta DPRD Monday, September 8, a number of factions expressed their rejection of the plan to change PAM Jaya from Perumda to a company in the near future.

They asked for the plan to be postponed due to a number of concerns, such as the issue of water management privatization, and there are still many water service problems by PAM Jaya.

Responding to this, Pramono emphasized that he did it solely to make PAM Jaya more able to develop corporate governance to increase investment.

"Surely the Deputy Governor and I think about this for the good of PAM Jaya. There is no desire at all to make the company make PAM Jaya not good. It will definitely be better and I believe that," explained Pramono.