JAKARTA. The holding of defense industry of Indonesia, also known as Defend ID, is aiming to enter the top 50 global defense industry companies. It plans to realise this goal by debuting in the stock exchange through an initial public offering (IPO).
Bobby Rasyidin, President Director of PT Len Industri (Persero), explained that in order to become one of the top 50 defense companies in the world, Defend ID cannot rely solely to the domestic market. “To become one of the top 50 global companies, we surely need support from the export market,” he stated during Indo Defence 2022 Expo and Forum earlier this week, as quoted by Bisnis.
On top of expanding market, Rasyidin also saw a need in inorganic growth inside Defend ID itself. It will be attainable through corporate actions, such as merger, acquisition, divestment, and IPO. “We, indeed, do have a plan to merge, establish a joint venture (JV), acquire, and arrange an IPO,” he confirmed.
Adik A. Soedarsono, President Director of PT Pindad (Persero), claimed that the market capitalisation of Defend ID is expected to reach IDR 38 trillion by 2025. He is confident that establishing this holding, by consolidating all those assets, will allow the defense industry companies to grow and expand.
According to Soedarsono, as an industrial company, Defend ID will have more chances to grow if they decided to went public, as seen in Malaysia and Singapore. “If we take a look at Malaysia and Singapore, [their defense holding] have been publicly listed. However, as there was still one point of regulation [that stood before us and IPO], we could not discuss about it yet,” he revealed further. (AM/ZH)