The Ministry of State-Owned Enterprises (SOE) deems reformed regulation concerning IPO for SOEs is necessary; with so many stages for companies to go through, it takes months or even years for SOEs to conduct IPO.
“Meanwhile, the first period of tax amnesty is only until September 2016,” said Rini Soemarno, SOE Minister. She appealed to the Coordinating Minister for Economic Affairs to seek solution together with SOE Ministry and the Financial Services Authority (FSA).
So far, there are 25 stages the SOEs must go through to become public companies. Those are:
1. Make proposal for privatization plan
2. Be proposed in the State Budget Draft (the latest by May 31 for government shares or by December 31 for new shares).
3. State Budget Draft to be approved by House of Representatives
4. SOE Ministry to design yearly privatization programs
5. SOE Ministry to construct list of companies, privatization method, types and stretch of shares.
6. Design be accepted by Deputy of SOE Ministry
7. SOE Ministry to give feedback
8. SOE Ministry to set Yearly Privatization Program
9. Submit the program to Privatization Committee and Finance Ministry
10. Privatization Committee to provide direction and Finance Ministry to give recommendation
11. Manage revisions with regards to direction and/or recommendation
12. Notifying company’s director
13. Socialization by the company
14. Consultation to House of Representatives
15. Recommendation Letter from House
16. Construction of Government Regulation on related SOE’s privatization
17. SOE to perform Annual General Meeting of Stakeholders
18. SOE Ministry to form Privatization Team
19. Construction of terms of selection reference
20. Announcement of selected institutions and supporting professions
21. Submitting pre-qualification documents to SOE Ministry
22. Verification by SOE Ministry
23. Announcement for having passed pre-qualification stage
24. Propose selection results to SOE Ministry
25. SOE Ministry to decide selection results
With those prolonged processes, SOE seemed to be reluctant to carry out IPO since 2014. In fact, the government deemed IPO for SOEs to be able to sustain absorption of tax amnesty fund, by channeling repatriated funds to shares of SOEs or their subsidiaries. (*)
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