Indonesia may raise close to US$2 billion selling shares in three state companies before the end of the third quarter, buoyed by the stock market’s recent rally. Pertamina Hulu Energi, the upstream unit of state energy firm Pertamina, is in talks with the financial regulator and the bourse to offer less than 10 per cent stake in the second quarter, said State-owned Enterprise Deputy Minister Pahala Mansury. Pertamina Geothermal is marketing a 9.78 trillion rupiah (US$650 million) IPO in what could be Indonesia’s biggest in a year, while palm grower PalmCo could raise up to US$672 million in the third quarter. The government is divesting stakes in state companies to fund expansion and reduce reliance on the state budget. The Jakarta Composite Index was among the top performers in Asia last year, in contrast with declines in China and Korea. While even a 10 per cent stake in Hulu Energi could be worth US$2.5-3 billion, less may be sold to ensure the market can absorb such a large offering that would follow Pertamina Geothermal’s IPO this month, Mansury said in an interview on Friday. The Financial Services Authority said on Monday Hulu Energi could raise as much as 9 trillion rupiah. “Floating three state companies this year is ideal”, said Mansury. For PalmCo, “this is the best momentum to find additional funding”. PalmCo would be raising funds to expand its downstreaming business and boost local production of olein, stearin, and biodiesel, he said.