2 major IPO’s in 2012 from Pertamina

Jakarta - Two subsidiaries of state oil and gas company Pertamina will make an initial public offering of their shares in the first semester of 2012, State Enterprises Minister Dahlan Iskan said.

"The two subsidiaries of Pertamina engaged in the upstream sector are ready to go public this year," he said at his office here on Tuesday.

The two companies are PT Pertamina Geothermal Energy (PGE) and PT Pertamina Drilling Services (PDSI).

He said the two subsidiaries would make an initial public offering of their shares this year, along with state cement maker PT Semen Baturaja, state pawnshop PT Pegadaian, and PT Garuda Maintenance Facility, a subsidiary of national flag carrier Garuda Indonesia.

He said the State Enterprises Ministry would continuously encourage state-owned companies including their subsidiaries to float their shares in the public.

"Not only will the step speed up the improvement of the companies` financial performance but also the step has proven capable of improving companies` performance because they are required to implement GCG (good corporate governance), he said.

Deputy for strategic industries and manufacturer to the state enterprises minister Irnanda Laksanawan shared Dahlan`s view saying the initial public offering of the two companies was one of the efforts to improve the work performance of the companies concerned.