TEMPO.CO, Jakarta - Bambang Sukmananto, chairman of state-owned forestry firm Perhutani, said his company would reform its subsidiary companies and look at their strength to prepare for the global market.

"Perhutani will focus on strengthening internal company to expand its capital and business," Bambang said yesterday, adding that Perhutani must incorporate each of its subsidiaries' plans to work well in the future.

The total asset of the forest holding state-owned firm is still being reviewed by the Finance Ministry. Currently, the process has progressed to financial statement analysis.

Bambang revealed that Perhutani is not planning to conduct IPO (Initial Public Offering) in the near future. They still need to consolidate its plan with other state-owned firms to conduct IPO. In addition the forest resources are different from others.

"We must consider the good and bad sides of IPO to the environment," Bambang said.

The state-owned forest firm will incorporate its five subsidiaries, PT Inhutani I-V, on October 2, 2014. State-owned enterprises Minister Dahlan Iskan is scheduled to launch the incorporation, along with state-owned plantation holding firm.

YOLANDA RYAN ARMINDYA