Pelindo Delays IPO for Sub-holding

TEMPO.CO, Jakarta - PT Pelabuhan Indonesia (Indonesia Port Corporation or IPC) has decided to delay the initial public offering (IPO). The state-owned port operator had planned to list its sub-holding companies on the Indonesia Stock Exchange (IDX) after merging Pelindo I, Pelindo II, Pelindo III, and Pelindo IV.

"The 2019-2020 IPO plan was made before the merger. Of course, after the merger, there have been many changes. Big plans require big funds, and one of the options to source funding is through the IPO," Pelindo president director Arif Suhartono said at a journalists' gathering at the Maritime Museum in Jakarta, Thursday, 19 May.

The IPO plan will be back on the company's plate if the company needs huge capital and once it has a business plan. After the merger, Arif ensured that the state-owned company had collected sizeable funds from merging assets.

"[IPO] is a method for garnering funds. Fortunately, right now we have large funds, and so, for now, we are not going there [IPO] yet," he said.

In May last year, Arif said that each sub-holding had plans for an IPO in the capital market. The companies planning to list shares are those engaged in the container, non-container, marine equipment, and logistics businesses.

But prior to the merger, Pelindo announced to delay the IPO plan after taking into account the unstable market condition due to the pandemic. The delay was for the IPOs of PT Pelabuhan Tanjung Priok (PTP) and PT IPC Terminal Petikemas (IPC TPK).

However, Arif said the company would revisit the strategic plan. For now, the IPO plan is postponed for an indefinite time. 

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HAMDAN C. ISMAIL | ANTARA