Danantara’s Roadmap Opens the Door for SOE IPOs: Who Could Be Next to List?

SOE IPOs Are Part of Danantara’s Transformation Roadmap

More than three years have passed since PT Pertamina Geothermal Energy Tbk. (PGEO) conducted its initial public offering (IPO) in February 2023. The prospect of new listings from Indonesia’s State-Owned Enterprise (SOE), aka Badan Usaha Milik Negara (BUMN), ecosystem is now re-emerging as IPOs form part of Danantara’s five-year transformation roadmap. Before companies are brought to the capital market, however, the transformation process will first focus on strengthening their corporate structure, organization, and operations. Under this approach, an IPO represents one potential avenue for value creation once a company’s business fundamentals are considered sufficiently prepared.

The roadmap begins with consolidation and restructuring in the first year, followed by human capital development and corporate culture in the second. The third year focuses on innovation and artificial intelligence implementation, while the fourth moves into the value creation phase, including determining whether companies should pursue strategic partnerships, conduct an IPO, or remain privately held. The following stage focuses on improving performance and strengthening companies’ competitiveness on a global scale.

Pegadaian to InJourney Airports Emerge as Potential Candidates

Four companies have been identified as having the potential to enter the capital market: PT Pegadaian, PT Pupuk Indonesia, PT Pelabuhan Indonesia (Pelindo), and PT Angkasa Pura Indonesia (InJourney Airports). No final decisions or IPO timelines have been announced for any of these companies, meaning their inclusion does not imply that they are formally being prepared for a listing. Nevertheless, their different business profiles provide an initial picture of the types of assets within the SOE ecosystem that could potentially be opened to public investors.

Company	Core Business
Pegadaian	Pawn-based financing & gold ecosystem
Pupuk Indonesia	Fertilizers & petrochemicals
Pelindo	Ports & logistics
InJourney Airports	Airport operations

The potential scale of these IPOs could also be relevant to institutional investors, including foreign investors. IPOs with sufficient market capitalization, free float, and liquidity could broaden Indonesia’s investable universe for global institutional funds, although actual capital inflows would still depend on fundamentals, valuation, corporate governance, and the structure of each offering. At the same time, SOE IPOs could also support the IDX’s target of having more than 1,100 listed companies by 2030.

Other Attractive Assets Remain

Beyond these four companies, PT Geo Dipa Energi is another business worth watching. Geo Dipa operates the Dieng and Patuha geothermal projects with approximately 120 MW of combined installed capacity, while its longer-term development plans are aimed at expanding capacity further. With a relatively focused geothermal business model, Geo Dipa could offer a clear investment profile if it were eventually considered for capital market access.

A standalone IPO, however, is not the only possible route for unlocking value from Geo Dipa. Danantara could also assess whether Indonesia’s state-owned geothermal assets would be more effectively developed through consolidation with an existing platform such as PGEO. The idea of consolidating state-owned geothermal assets is not new, as the government previously considered establishing a geothermal holding company involving PGE, Geo Dipa, and PLN’s geothermal assets in 2021. The strategic question, therefore, is not simply whether Geo Dipa is suitable for an IPO, but whether greater value could be created by keeping it as a standalone company or integrating it into a larger SOE geothermal platform.

Other potential names include Pertamina International Shipping (PIS), PTPN IV PalmCo, ASDP Indonesia Ferry, and Bio Farma.

Company	Core Business
Pertamina International Shipping (PIS)	Energy shipping & oil and gas logistics
PTPN IV PalmCo	Palm oil plantations & agribusiness
ASDP Indonesia Ferry	Ferry transportation & ferry operations
Bio Farma	Pharmaceuticals & vaccine manufacturing

What Can’t Investors Buy on the IDX Yet?

Part of the appeal of potential SOE IPOs lies in the fact that several strategically important business models still lack comparable representation on the Indonesia Stock Exchange. Investors already have extensive choices across banking, mining, consumer, property, and telecommunications, but direct access to a national port operator of Pelindo’s scale or an airport network such as InJourney Airports remains limited. Similarly, listed exposure to a large-scale fertilizer producer or an integrated energy shipping business remains relatively scarce.

Bringing such companies to the market could therefore do more than simply increase the number of listed companies. Pelindo could provide a market valuation benchmark for the port industry, InJourney Airports for airport operations, PIS for energy shipping, while Geo Dipa could broaden listed exposure to geothermal energy. Investors would consequently gain more targeted access to segments of Indonesia’s economic growth that have historically been difficult to capture directly through IDX-listed equities.

IPO as the Source of Expansion Capital

Beyond opening these businesses to public investors, an IPO can also provide an alternative source of funding for companies requiring substantial capital to support growth. Capital requirements vary by sector: geothermal development requires investment in power plants and well drilling, shipping companies need to acquire and renew vessels, while port and airport operators require continuous investment to expand capacity and improve infrastructure.

An IPO also does not necessarily mean that the government or existing shareholders are simply selling down their ownership. An offering may involve the issuance of new shares, the sale of existing shares, or a combination of both. If new shares are issued, the proceeds flow directly to the company and can be used for expansion in accordance with the use of proceeds disclosed in the prospectus. Under such a structure, the capital market can become an additional source of financing to support the company’s next phase of growth.

From Restructuring to the Capital Market

Danantara’s roadmap raises the possibility that the composition of SOE-related companies listed on the IDX could look very different in the years ahead. Beyond large and familiar companies, businesses in ports, airports, fertilizers, geothermal energy, and energy shipping—many of which currently have limited representation in the public market—could eventually become accessible to investors. If some of these assets ultimately reach the stock exchange, their appeal would extend beyond their status as state-owned businesses by providing investors with direct access to business models that have previously been difficult to own through listed equities.

Pegadaian, Pupuk Indonesia, Pelindo, and InJourney Airports have been identified as companies with potential to enter the capital market, while Geo Dipa, PIS, PalmCo, ASDP, and Bio Farma illustrate that the pool of potentially attractive businesses within the SOE ecosystem is considerably broader. What do you think, Sobat KAF, which company would be the most attractive to own if its shares eventually became available on the Indonesia Stock Exchange?

Let’s discuss in the comments!

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Disclaimer: This content is created for educational purposes or service promotion, and does not constitute a recommendation to buy or sell any specific Securities. Any risks arising from investment decisions made based on the information in this publication are the sole responsibility of the respective audience. The data was sourced from various sources. PT KAF Sekuritas Indonesia is licensed and supervised by the Financial Services Authority (Otoritas Jasa Keuangan / OJK).