The government is mulling setting up an independent team to monitor and evaluate the realization of Garuda Indonesia’s plan to raise up to US$350 million through an initial public offering (IPO) this year. "So far, an independent evaluating committee has been formed to monitor Krakatau Steel’s (IPO). Right now we are considering whether or not it (the committee) is suitable for Garuda’s IPO," State Enterprises Minister Mustafa Abubakar said at the presidential palace here on Wednesday. The committee had proven effective to monitor the state-owned steel maker’s IPO, he said. He expressed hope such a committee could be set up to supervise the national flag carrier’s IPO.

"It is likely we will order the formation of such an independent team to monitor Garuda’s IPO," he said. He said the state enterprises ministry, along with other relevant agencies were still discussing preparations for Garuda’s IPO. One of the issues discussed was the price of shares offered in the IPO. Garuda is expected to sell 30 percent of its shares through the IPO scheduled for February 11, 2011. To conduct the IPO, Garuda has appointed PT Danareksa Sekuritas, PT Bahana Securities, and PT Mandiri Sekuritas as domestic underwriters, and UBS and Citibank as foreign underwriters. Garuda booked a net profit of Rp194 billion in the year ended September 30, 2010.