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Mitratel: IPO & Telco Tower Expansions

State-Owned Enterprise (SOE) Minister Erick Thohir gave a leak regarding the plan to offer shares to the public or initial public offering (IPO) of several SOEs and their subsidiaries. Without elaborating on the company's name, he said that SOEs and their subsidiaries in some sectors were encouraged to IPO, including telecommunications, hospitals, energy, and logistics. He gave an IPO signal from a subsidiary of PT Telkom Indonesia (Persero) Tbk from the telecommunications sector, which is engaged in the data center and telecommunications tower business. The consideration is that Telkom Indonesia can no longer depend on the telephone business. "Telkom's valuation is still good, I think, but it has to be better, especially with the improvement of the existing business model," he said on Friday (7/30). On the other hand, he also encouraged the sub-holding PT Pertamina (Persero), engaged in the marine logistics transportation business (marine logistics), for the IPO. Meanwhile, from the energy sector, he encourages the holding of geothermal or geothermal SOEs formed later on the floor in the capital market. As is known, this geothermal BUMN holding is planned to consist of a subsidiary of PLN, PT PLN Gas & Geothermal, and PT Indonesia Power (IP) which will be managed under PT Pertamina Geothermal Energi (Persero), which is a subsidiary of Pertamina. Erick said that the holding plan had already received the green light from Finance Minister Sri Mulyani.

PT Dayamitra Telekomunikasi (Mitratel) which operated in the telecommunications tower rental business, is the company with the largest number of telecommunications towers in Indonesia. The subsidiary of PT Telkom Indonesia Tbk (TLKM) is certain to be listed on the stock exchange this November. The Ministry of State-Owned Enterprises (SOE) said that Mitratel's IPO plan is targeted to raise funds of US$1 billion to US$1.4 billion or