the government even would encourage BUMNs to go public because it would give a positive impact not only to the companies.Jakarta (ANTARA News) - Chief economic minister Hata Rajasa said the government would not restrain state-owned companies from going public due to the recent unsatisfactory IPO of PT Garuda Indonesia.
"There will be no limitations for BUMNs to conduct IPO," he said here on Monday.
He said the government even would encourage BUMNs to go public because it would give a positive impact not only to the companies.
"BUMNs that go public will be encouraged to be healthy because they will be scrutinized by the public and their financial reports will be audited," he said.
He said what was needed to be evaluated with regard to BUMNs` IPO was the timing.
"Garuda share price was expected to reach Rp759 but it was not. It is alright but later it must be better. We will not restrain BUMNs from conducting an IPO but the timing for it must be determined rightly and the strategy must also be correct," he said.
Some have viewed the IPO of the state-owned airline company Garuda was unsatisfying.
"Factors that caused it vary but inter-connected such as the timing, offering strategy and price setting. Those things must become evaluation materials. It is hoped the case will not recur in the future," legislator from Commission VI Aria Bima said.
Garuda share price was closed down to Rp620 from the IPO price of Rp750 on the first day of trading at the Indonesia Stock Exchange on Friday.
Of the total shares offered reaching 6.335 billion, 3.008 billion or worth Rp2.25 trillion must be absorbed by underwriters.
Garuda had offered 6.33 billion shares to raise Rp4.75 trillion.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2011
