Indonesia targets IPOs at 2 Pertamina units next year, says deputy minister
INDONESIA aims to launch initial public offerings (IPOs) for the upstream and geothermal units of state energy firm Pertamina next year to fund expansion, a senior government official said on Wednesday (Dec 7).
Pertamina Hulu Energi, the upstream unit of Pertamina, is expected to sell a 10 per cent to 15 per cent stake in an IPO next year and had conducted initial “sounding out” of potential investors, deputy state-owned enterprise minister Pahala Mansury told lawmakers.
The government also aims to conclude the IPO of Pertamina’s geothermal unit in the first quarter of next year, after it was delayed due to “less than optimum” market conditions this year, Pahala said.
The IPO of Pertamina Geothermal Energy was initially targeted to take place in the second quarter of this year.
Pertamina Hulu Energi could raise between US$1 billion and US$3 billion in the IPO, Refinitive publication IFR said, citing people with knowledge of the matter.
IFR had also previously reported that the geothermal unit’s IPO could raise up to US$500 million.
Pahala did not disclose the expected value at the hearing. He said in coming years, the upstream unit is expected to spend US$4 billion to US$6 billion a year amid a push by the government to enhance energy security.
“We hope to diversify financing ... and to optimise the momentum of high oil and gas prices,” Pahala said, adding that the government would also push Pertamina Hulu to expand the development of offshore projects.
The government is also preparing for share sales of state palm oil company Perkebunan Nusantara and state fertiliser maker Pupuk Kaltim, he said. REUTERS
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