 Laidlaw dan Sander (2016:15 and 43) stated that an IPO changes corporate culture towards a more professional direction. Other than that, it also increases pride and minimizes internal information sharing. But this pride comes with a price. Employees and management should change their behavior to maximize shareholders' value.
If they don't, then they're in grave danger. The corporation should disclose its share-price sensitive information beforehand. Furthermore, an IPO of this scale could bring many new retail and institutional investors. These new owners would enforce sub-holdings' management to strengthen their accountability. Not doing so could cost them precious capital.
We can say that this whole process would push those sub-holdings to maximize value for their shareholders. Moreover, it would nudge them to improve the value for money of Pertamina to the taxpayers. This premise comes from the fact that Pertamina is under the Indonesian government's custody as a political institution.
Consequently, the explanation above indicates that the IPO of sub-holdings is good. Yes, but only as a first step. Pertamina should step further in this process of restructuring. They should embrace even more radical means to increase ownership participation and value for money. What are those means?
First, bombard the public realm with advertisements about the IPO. Official video releases on its Youtube channel is not enough. Pertamina also should run creative ads on TV, radio, billboards, and various social media. Therefore, members of the public would become conscious of this opportunity and would apply for shares.
Second, these sub-holdings could issue convertible bonds to attract further investment. After all, not everyone likes the high risk that share ownership involves. So, they need an instrument that provides a path to ownership with less risk. Bonds that can become shares can be the best alternative. Calamos (2017:3) said that it combines the return enhancement of stocks and the low-medium risk of fixed income assets. That's a bullseye.
Third, implement an employee stock ownership plan (ESOP) on each of those sub-holdings. This crusade to create a sense of direct ownership shouldn't stop here. Accordingly, it must go further towards the sub-holdings' employees. Why?
Blasi et al. (2013:121-122) explained that ESOP companies survive longer. Hence, this rate of survival is a result of higher employee performance on average. Furthermore, it creates a new "ownership culture" that improves employee commitment, flexibility, and innovative ideas. ESOP would make them  possessors of the company, not mere employees.
 In conclusion, Pertamina's plan to do an IPO of its sub-holdings is not going against Indonesia's interest. It is within our advantage to improve Pertamina's value for money by increasing its efficiency. But, this IPO is only the first big leap towards a better Pertamina. They should march onward in creating a new sense of ownership and accountability.
As Whitney Houston's song title goes, this is Pertamina's one moment in time. Everyone would reap the benefits in the long-run. Let's not waste it with short-run grumblings.
Oleh: Rionanda Dhamma Putra | Staff Kajian Kanopi FEB UI 2020 | Ilmu Ekonomi 2019
