Indonesia State-Owned Enterprises (SOEs) Urged to Hold Back on External funds & IPOs

Reporter: Ahmad Febrian, Arfyana Citra Rahayu, Muhammad Julian | Editor: Syamsul Azhar

KONTAN.CO.ID -  JAKARTA. The political year has slowed down the expansion agenda of State-Owned Enterprises (SOEs). The government is said to have asked SOEs and their subsidiaries to hold back on gathering external funds, including through initial public offerings (IPO) in the Indonesia Stock Exchange.

Information obtained by KONTAN, revealed that the Ministry of SOEs warned the directors of state-owned and subsidiary companies to be cautious in limiting their expansion. "There are instructions for SOEs and their subsidiaries to hold back. If an IPO is necessary, it should be done no later than June this year. After that, it is not allowed," said a director in one of the SOEs last week.