Senior Economist Reveals The Attractiveness Of PHE's Initial Share Sales

Illustration. (Photo: Doc. Antara)

JAKARTA - Sunarchi senior economist assessed that the positive performance of PT Pertamina Hulu Energi (PHE) which received a net profit of US$4.67 billion or equivalent to Rp69.03 trillion (exchange rate of Rp14,783 per US dollar) in 2022 could be an attraction for investors to buy PHE's initial shares.

"My prediction is that the market will be enthusiastic about this PHE IPO. Well, if this IPO is successful then of course this will be a source of cash for Pertamina for the development of the upstream sector," said Sunaftarik who is also the Chief Economist of The Indonesia Economic Intelligence (IEI) to the media, Thursday, June 22.

The Sun archive added that PHE is one of Pertamina's largest upstream oil and gas companies. Of course, this is an attraction for investors to enter and buy PHE shares.

"On the other hand, PHE will also benefit from this IPO. Through the IPO, PHE becomes more attractive to investors. Its expansion has the potential to increase in line with the price movements of its issued shares according to market prices," explained the Sun archive.

PHE's IPO corporate action also has a macro positive impact. This action will attract foreign investors and of course bring foreign currency (foreign currency) into Indonesia. The entry of this variant will certainly strengthen the position of capital inflow, which has returned to Indonesia during 2023.

"In addition to creating positive sentiment for the financial market, the foreign exchange itself will add to our foreign exchange coffers to meet the needs of foreign exchange in the country," explained Sunarchi.

Not only that. GCG's score achievement of 85.05 will also be an attraction for investors to own PHE shares. This achievement will increase the confidence of potential investors regarding governance and will become a concern for investors.

"Through the IPO, PHE's chances of increasing its capacity and capability in upstream business development abroad are getting bigger. Because, through the IPO, PHE becomes better known and can align its capabilities with large upstream oil and gas companies abroad," concluded Sun. archive.

Regarding PHE's IPO plan, the Minister of SOEs Erick Thohir also previously conveyed the plan. Erick ensured that PHE and also the sub-holding of PT Perkebunan Nusantara III (Persero) or PTPN III, namely PalmCo, would conduct an initial public offering or IPO this year.

"If it's PTPN and Pertamina, if possible this year, why not," he said at the DPR Jakarta Complex, Thursday, June 15.

According to him, this corporate action is a momentum to increase energy security. According to him, the IPO is an effort to increase domestic oil and gas production.

"Of course this plan is nothing but to increase our oil production, if we can increase by 5 percent every time, we also have to increase our productivity," he said.