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Workers union reject Pertamina Geothermal's IPO plan

Tempo - February 17, 2023

Riri Rahayu, Jakarta – PT Pertamina Geothermal Energy Tbk. (PGE) is preparing to hold an initial public offering (IPO). But the plan was met with rejection from the United Pertamina Workers Union Federation (FSPPB), the parent organization of 25 trade unions within Pertamina's ecosystem.

The president of FSPPB, Arie Gumilar, demands an end to all efforts to privatize all Pertamina's business units.

"As expected, it has now been proven that there has been a process of privatization of PT Pertamina Geothermal Energy, which is done by listing PGE – a company owned by the state via Pertamina, by the Government through relevant ministries," he said in a written statement on Tuesday, 7 February.

Arie suspects that the corporate act was not based on prudent studies and without due diligence that can be accounted for. This, he said, would harm the state and could lead to law violations that only benefit certain groups.

However, an expert in business economics at Gadjah Mada University (UGM), Mudrajad Kuncoro, has a positive opinion of PGE's IPO. He said that the company's finances are good, with profits posted.

Pertamina Geothermal Energy will list its shares at the IDX as PGEO after securing an effective statement from the Financial Services Authority (OJK). PGE will hold the IPO on February 20-22, targeting Rp9.8 trillion in proceeds.

Source: https://en.tempo.co/read/1692906/workers-union-reject-pertamina-geothermals-ipo-pla