Back Down, PalmCo IPO Will Be Held In 2026

Illustration (Photo: Doc. ANTARA)

JAKARTA - President Director of PT Perkebunan Nusantara III or PTPN III Mohammad Abdul Ghani targets PalmCo subholding to conduct an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) at the earliest in 2026.

"The condition (IPO) in 2026-2027 is that the government is still new," he said in a meeting with Commission VI of the DPR, at the DPR Building, Parliament Complex, Tuesday, June 25.

Ghani admitted that his party had no problem delaying the PalmCo IPO. Because, he admitted, his company must also see good market monetum to be listed on the stock exchange.

"It's okay. Right now we have a bad valuation. Now coincidentally, we have to look for momentum. For an IPO, it's not just looking for funds, for governance and so on. If the market is not good, why do we force it," he explained.

For your information, the initial plan for PalmCo's subholding IPO was carried out in 2023. This means that the IPO plan will be postponed for three years.

Ghani said that the postponement of the IPO plan was carried out because it had to improve the company's condition.

Moreover, he continued, this subholding has not yet been formed.

Karena pasar dan kami lagi raph-rapih ini perlu. Subholding kan perlu dibentuk 2023 Desember. Rapihin dulu, dipoles-poles dulu, katanya.

Previously, it was reported that the Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that the initial offering or PalmCo IPO is planned to be carried out in the fourth quarter of 2023.

The company is a spinoff of the Nusantara Plantation Holding to strengthen the palm oil industry ecosystem and its derivatives.

"For the palm oil industry, now we are in the application for a permit to draft government regulations on the formation of PalmCo. Hopefully, in the fourth quarter, corporate action can be carried out," he said in a meeting with Commission VI of the DPR, Monday, March 20, 2023.

Erick emphasized that the presence of PalmCo is very important in optimizing derivatives of palm oil products.

According to him, with this corporate action, state-owned palm oil companies could be the largest.

One of the functions is industrialization in Indonesia. So that the derivative of the palm oil industry is in the 80s. We will see that one of the raw materials is indeed for the make-up industry," he said.

Indonesia's make-up market reaches the top 5 in the world. Now 70 percent of the raw materials are from local products. This proves that downstreaming is beneficial for Indonesia if we are serious," he continued.