JAKARTA - PT Pertamina (Persero) is mulling the release of its shipping and renewable energy subholdings to the Indonesia Stock Exchange (IDX).
"We are studying the possibility of our shipping and renewable energy subholdings going public," Pertamina CEO Nicke Widyawati said on Monday (29/6) as quoted from CNN Indonesia.
However, Ms Widyawati is yet to disclose when the corporate actions will be launched as the stock market has been turbulent due to the coronavirus (COVID-19) pandemic. She added that the plan is still being reviewed because IPOs are not the company's only financing options.
"We need to make this decision carefully by taking into account our shareholders' opinion. We should not publicly disclose a policy without a thorough evaluation," Ms Widyawati said.
Previously, State-owned Enterprises Minister Erick Thohir had said one to two of Pertamina's subholdings were expected to launch IPOs at the IDX within the next two years. Pertamina has six subholdings, namely upstream, refinery, commercial and trading, new and renewable energy, shipping, and gas.
Until 2026, Pertamina has budgeted US$133 billion in capital expenditure (capex). Accorrding to Ms Widyawati, 47% of the amount will be funded internally, 28% externally, 15% through equity financing, and 10% through project financing. (MS)