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 even years for SOEs to conduct IPO.
“In the mean time, the first period of tax amnesty is only until September 2016,” Rini Soemarno, SOE Minister, said. Therefore, she asked Coordinating Minister for Economic Affairs to seek solution together with SOE Ministry and the Financial Services Authority (FSA).
So far, there are 25 stages SOEs must go through to become public companies. Those are:
1. Making proposal for privatization plan
2. Being 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 is approved by House of Representatives
4. SOE Ministry designs yearly privatization programs
5. SOE Ministry constructs list of companies, privatization method, types and stretch of shares.
6. Design is accepted by Deputy of SOE Ministry
7. SOE Ministry gives feedback
8. SOE Ministry sets Yearly Privatization Program
9. Submitting the program to Privatization Committee and Finance Ministry
10. Privatization Committee gives direction whereas Finance Ministry gives recommendation
11. Making revision with regards to direction and/or recommendation
12. Notifying company’s director
13. Socialization by the company
14. Consultation to House of Representatives
15. House issues Recommendation Letter
16. Construction of Government Regulation on related SOE’s privatization
17. SOE performs Annual General Meeting of Stakeholders
18. SOE Ministry forms 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. Proposing selection results to SOE Ministry
25. SOE Ministry decides selection results
With those prolonged processes, since 2014, SOE seemed to be reluctant to carry out IPO. In fact, the government deemed IPO for SOEs be able to become one of moves to sustain absorption of tax amnesty fund, by channeling repatriated funds to shares of SOEs or their subsidiaries. (*)
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