Rekayasa Industri to Go Public

PT Rekayasa Industri (Rekin), a state company on construction and engineering, has planned to sell 30% shares in initial public offering.

For the first step the government will sell 4.97% shares of the company to PT Pupuk Sriwidjaja.

The Secretary of SOE Ministry M Said Didu said that the IPO will be this year.
"The government owns Rekin directly and indirectly through Pusri. We will sell our direct ownership to Pusri and later Pusri will offer the stocks of Rekin to the public," he said this week.

He said the company will use the money to expand the business. "The government will not take the money as the company will use it to expand the business."

Didu said the SOE Ministry has discussed the plan with Privatization Committee. He said Pusri will still control Rekin. "Usually we propose that the offering is 30% so that we will still control the unit."

Rekin belongs to Pusri (90.06%), the government (4.97%), and Pupuk Kaltim. Rekin is state company on engineering, procurement, and construction (EPC).

The company has been working in some industries like gas, geothermal, refinery, petrochemical, mineral, environment management and infrastructure. The company has seven units like Rekayasa Industri Malaysia Sdn, Bhd, PT Yasa Industri Nusantara, PT Rekayasa Engineering, PT Rekayasa Konsultan, Comspain SA, PT Mega Eltra and PT Puspetindo.