Over the past three years, several companies operating in the energy sector have achieved successful initial public offerings (IPOs) on the Indonesia Stock Exchange (IDX). In the specific sub-sector of oil and gas storage and distribution, notable entries include PT Humpuss Maritim International Tbk (HUMI), PT GTS International Tbk (GTSI), and PT Indah Prakarsa Sentosa Tbk (INPS). Furthermore, apart from those that went public in the last three years, there are at least five other companies listed in the same sub-sector. In the production and oil refining sub-sector, we see the presence of key players such as PT Medco Energi Internasional Tbk (MEDC), PT Sugih Energy Tbk (SUGI), PT Energi Mega Persada Tbk (ENRG). The most recent entrant in this sub-sector is PT Super Energy Tbk (SURE), which conducted its IPO in 2018.
These companies have opted to expand by becoming publicly listed entities on the Indonesian capital market, which has achieved noteworthy records compared to other Southeast Asian capital markets over the past three years. Companies within the energy sector are included in the IDXENERGY index, a sector that has exhibited a positive trend since the stock exchange entered the post-COVID-19 recovery phase. IDXENERGY has witnessed substantial growth, soaring from a closing price of 740.68 in January 2021 to 2034.88 in August 2023. This translates to IDXENERGY achieving a Compound Annual Growth Rate (CAGR) exceeding 50%. Such remarkable performance is underpinned by the global economic recovery and the prevailing commodity boom.
(Movement of the closing price index of the Indonesian Stock Exchange)
Being listed on the capital market signifies a commitment to adhere to the regulations of the stock exchange and the Financial Services Authority (OJK), which includes meeting the expectations of stock investors. One of the ways to comply with regulatory requirements is by fulfilling the obligation to report annual financial statements, as mandated by OJK Regulation No. 29/POJK.04 since 2016. The primary objective of annual reports is to reflect on the social responsibility of listed companies in their business activities. Oversight and sanctions encompass the enforcement of provisions, ranging from written warnings to registration cancellations. The listed companies are presented in the following table:
Apart from compliance, annual reports also serve as a means of communication and maintaining relationship with investors. These reports reveal trends and conditions in the relevant company sector, particularly concerning energy transition issues. During the ASEAN seminar held in Jakarta in 2023, Indonesia reaffirmed its commitment to energy transition through the development of concepts, long-term roadmaps, regional electric interconnectivity pathways, and efforts to bridge the gap between policies and the realization of investments in the renewable energy sector in Indonesia.
However, in the short term, the energy transition does not pose a threat to the oil and gas sector. According to the OPEC World Oil Outlook 2022, it was noted that the demand for oil as a primary fuel and gas will continue to rise until 2045. This is attributed to the projected global economic growth, expected to double, an increase in the world population by 1.6 billion people by 2045, urbanization rates, and the spending power of the middle-class population in developing countries. Although the renewable energy industry is forecasted to grow significantly each year, reaching 7.1% by 2045, it cannot replace the role of oil in meeting global energy needs.
In support of these positive trends, SW Indonesia, through its SW Business Advisory division, stands ready to be a financial advisor in facilitating the IPO process for companies, whether in the energy sector or others. Pre-IPO services and restructuring planning support the decisions of company stakeholders in executing the IPO process.
