Will Follow PGE On Stock Exchange, Minister Of BUMN Shows Off PHE Valuation: Billions

Illustration of the refinery (Photo: Doc. Antara)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that his party would encourage Pertamina's subsidiary, Pertamina Hulu Energi (PHE) to conduct an initial public offering (IPO).

For this reason, the Ministry of BUMN will propose a gradual IPO of PHE to the stock exchange.

"We are proposing to go to the stock exchange in stages because the emissions are huge. The valuation is billion billion billion. I can't tell you yet," said Erick, who was met at the Indonesia Stock Exchange, Monday, February 27.

Erick continued, he hoped that later the fresh funds raised by PHE would be used to dredge new wells and develop existing wells with new technology and systems.

Previously, regarding PHE's IPO plan, BUMN Deputy Minister I Pahala Nugraha Mansury said that his party still had to discuss it with related parties such as the Indonesia Stock Exchange (IDX) and the Financial Services Authority (OJK).

Furthermore, Pahala said that PHE's IPO is currently still constrained by the minimum share limit of 10 percent which must be released to the public.

"So far, we still need to discuss the 10 percent capitalization limit. Judging from the capitalization, PHE, let's say only 1 percent, is above the highest IPO value," concluded Pahala.