Two Indonesian State-Owned Plantation Companies May Conduct IPO in 2014
Indonesia's Coordinating Economic Minister Hatta Rajasa announced that the Indonesian government approved plans for the initial public offerings (IPOs) of two state-owned plantation companies: Perkebunan Nusantara V and Perkebunan Nusantara VII. The former is engaged in the plantation and production of palm oil as well as rubber, while the latter is engaged in the cultivation and plantation of rubber, oil palm, sugar cane, and tea products. Before the IPO, the government will establish a holding company for the plantation companies first.
Reuters reported in November 2013 that Perkebunan Nusantara VII aims to sell a 30 percent stake through an IPO in the second half of 2014. The company expects to reap IDR 2 trillion (USD $164 million).