The government of Indonesia expects to list two state-owned enterprises on the Indonesia Stock Exchange (IDX) in 2014. Minister of State-Owned Enterprises Dahlan Iskan announced that the two companies involve Perkebunan Nusantara III and Perkebunan Nusantara IV. The main reason behind conducting the initial public offerings (IPOs) is to reap funds for further expansion. The IPO plan needs to be approved first by the Privatization Committee, under the wings of the Ministry of Economy, and then by the House of Representatives (DPR).
Perkebunan Nusantara III is an agribusiness company mainly engaged in the cultivation, production, sale and export of oil palm and rubber products. Besides palm oil and rubber, Perkebunan Nusantara IV also produces tea, coffee and cacao.
Initially, the Indonesian government wanted to create a holding company for the state-owned agribusiness companies. However, as this will need a long political road, the government decided to push for an IPO of two of its agribusiness companies. The initial intention to create a holding company comes from the government's ambition to restructure its state-owned companies. In 2012, Indonesia counted 114 state-owned companies. This number is expected to ease to 91 by 2014 through mergers.
The government had previously tried to list two other state-owned companies, Pos Indonesia and Pegadaian, this year. However, this proposal was not approved by the Privatization Committee. One other state-owned company, Semen Baturaja, did conduct its IPO this year.