IPO CAN PREVENT POLEMICS AT FAMILY COMPANIES

by Andi Abdussalam

Jakarta, Feb 20 (Antara) - Transparency is one of the reasons why family companies are often reluctant to go public through the initial public offering (IPO) while in fact IPO can prevent polemics regarding share ownership at family companies.          According to the Indonesian Employers Association (Apindo), one of the obstacles faced by companies in conducting an IPO is their uncertainty with regard to becoming more transparent, considering that most Apindo members are family companies.          "I see that the obstacle faced is their hesitation in terms of transparency. They are a little less comfortable with the openness," Apindo Chairman Hariyadi Sukamdani said in Jakarta on Tuesday (Feb 20).          They are worried about the transparency, for fear it would cause other problems since transparency will place the company under the public spotlight. In fact, going public would help prevent polemics at family firms.          The Indonesian Stock Exchange (BEI) is of the view that companies which conducted IPO would prevent polemics at family firms especially with regard to share ownership.

FOREIGN FIRMS URGED TO FLOAT SHARES AT STOCK EXCHANGE

By Andi Abdussalam

Jakarta, Jan 7 (Antara) - Foreign companies, whose assets and income originate in Indonesia, are being urged to float their shares on the Indonesian Stock Exchange (BEI) as an Initial Public Offering (IPO).          There are some 52 foreign investment companies in Indonesia that fall into these categories. If the 52 foreign firms have their shares listed on the Indonesian Stock Exchange, the BEI would value their total stake at Rp400 trillion.          Therefore, the BEI president director, Tito Sulistio, has delivered the list of the 52 foreign investment companies to Finance Minister Sri Mulyani Indrawati. The aim of the BEI is to ask the government to encourage those companies to launch IPOs on the Indonesian Stock Exchange.          Tito said there are 52 foreign companies conducting business in the country, having a potential of listing Rp400 trillion worth of shares on the BEI.          He said among those 52 companies, three have indicated interest in launching initial public offerings (IPO) at the BEI this year. Two of the foreign companies are operating in the mining sector, while the other is in the property sector.