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IDX Chief Calls on Freeport to Go Public
President Director Indonesia Stock Exchange, Tito Sulistio when meeting with Commission XI House of Rerpesentative in parliament complex, Jakarta, April 27, 2016. TEMPO/Dhemas Reviyanto
Friday, 14 July, 2017 | 12:00 WIB
IDX Chief Calls on Freeport to Go Public

TEMPO.CO, Jakarta - The Indonesia Stock Exchange (IDX) president director Tito Sulistio has called on Freeport Indonesia and 52 other companies operating in Indonesia to go public.

The IDX president director Tito Sulistio argues that those companies' main profits are generated in Indonesia, so it is only appropriate for them to list here.

"They reap profit in Indonesia, but the holding company is listed overseas,” he said.

Tito revealed that Freeport was once listed at the IDX back in 1994-1995 through PT Indocopper. Its shares that went public accounted for 9.36 percent. Indocopper has been delisted.

The IDX is targeting large foreign companies engaged in mining, property, palm oil and plantation to list their shares in Indonesia. Most of these companies garnered revenues and have assets in Indonesia, yet they list their shares in other countries like Singapore, Malaysia, China, and Australia.

Read: Divest to Inalum, Govt Pushes Freeport to Conduct IPO


Tito said there are three things to do to attract those companies into holding IPOs. First is by upgrading Indonesia's capital market quality, the second is by targeting companies with bank loans above Rp1 trillion, and the third is by inviting those companies' subsidiaries to go public. 

These large, foreign companies' listing is expected to serve as a funding source for Indonesia's development projects.

"Indonesia has many infrastructure projects, and it is the time that the capital market helps finance them—to lessen the state budget's burden," Tito said. 

Freeport Indonesia spokesman Riza Pratama responded to IDX's request by saying that the US miner has always wanted to list in Indonesia. But the plan is delayed by lack of regulations.

Riza said Freeport will go public if the move is considered as a divestment. "From what I know of, there is no rule for that. A divestment must first be offered to the state, then to the central government, SOEs, ROEs, and then the stock market," he said.


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