JAKARTA - Member of Commission C of the DKI Jakarta DPRD, Hardiyanto Kenneth, said that if PAM Jaya seriously wants to conduct an Initial Public Offering (IPO) or an initial public offering, there are a number of steps and requirements that must be met.
"There are many aspects that must be considered comprehensively, ranging from regulations, governance, to public sensitivity to the clean water service sector," Kenneth said in Jakarta, quoted by Antara, Monday, May 12.
Bang Kent, his nickname, said that what DKI Jakarta Governor Pramono Anung Wibowo had said was not wanting to rush the IPO.
Because, he said, steps to get to this IPO should not be carried out in a hurry and must be based on an in-depth and thorough study.
"He is a person who is quite thorough and very detailed. So the Board of Directors of PAM Jaya must be able to consider various development financing options other than the IPO, such as regional bonds or others," he said.
The reason is that until now, Kent admits that there are still many reports from the people of Jakarta regarding the poor service from PAM Jaya, as an example in the West Jakarta area, with water problems that often do not come out and frequent disturbances.
To be able to IPO, said Kent, PAM Jaya must meet the high standards of transparency and corporate governance (GCG). This includes financial audits, improvement of internal and external systems, and disclosure of information that has not yet become a culture in many Jakarta BUMDs.
"In West Jakarta, there is a lot of PAM water that doesn't come out, so if you want to do an IPO, please avoid things like this, because it will be a negative assessment from the Financial Services Authority (OJK)," he said.
In addition, he continued, the coverage of PAM Jaya's clean water services, which still has not reached 100 percent, must also be considered, residents in other areas in Jakarta are also still dependent on groundwater or refilled water.
"Things like this that are worried will become an obstacle for Perumda PAM Jaya to go to the IPO," he said.
Kent, who has Certified Investment Banker (CIB) expert certification, is able to handle IPOs to mergers and acquisitions, said that the IPO is not only a matter of strong capital, but a matter of credibility.
Investors will see the performance, financial statements, and political risks behind the company. So, to be able to IPO this OJK will not be regulated, they will objectively see from the parameters of customer satisfaction and other things, because PAM is the basic nature of service.
SEE ALSO:
"For example, if he randomly spreads feelings to the people of Jakarta regarding services from PAM Jaya and many complaints from the people of Jakarta, it will be an obstacle to leading to an IPO. So dynamics like this must be properly considered," he said.
Then, continued Kent, PAM Jaya's water tariffs are considered uneven and do not always reflect people's purchasing power. There are challenges in balancing operational costs, subsidies, and water access for the poor.
Because there are still people who do not understand the benefits of piped water, and prefer groundwater because of the habit or perception of cheaper costs.
"So it takes massive and intense public education so that the transition to piped water can run smoothly. IPO is an option, not the only way. The most important thing is, service to the community must still be a top priority," he said.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
