MUTU International (MUTU) or PT Mutuagung Lestari Tbk, an Indonesian company founded in 1990, has announced its strategic plan to launch an initial public offering (IPO) on the Indonesia Stock Exchange (IDX). This move is an element of the corporate’s commitment to leverage and expand opportunities within the testing, inspection and certification (TIC) industry in Indonesia. As the worldwide community places increasing emphasis on environmental sustainability, MUTU goals to play a big role in promoting responsible practices within the TIC sector.
Environmental sustainability is a key aspect requiring global attention and is a key element of the Sustainable Development Goals (SDGs) formulated by the United Nations General Assembly (UNGA) as a part of the Post-2015 Development Agenda. One of the aspects threatening the environment is greenhouse gas emissions ( GHG), i.e. gases within the atmosphere that retain heat, contributing to the greenhouse effect.
According to Our World in Data, global emissions of greenhouse gases, including carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O), from all sources, were 54.59 billion tons in 2021. This figure represents a rise of two billion tonnes in comparison with emissions recorded in 2020, which amounted to 52.59 billion tonnes.
Various aspects contribute to the rise in greenhouse gas emissions, comparable to the usage of fossil fuels, deforestation and animal agriculture. Data from the Intergovernmental Panel on Climate Change (IPCC) show that the commercial sector is the most important contributor to global emissions (24%), followed by electricity and warmth production, agriculture, transport, buildings and others. Studies, including one by Vohra et al. in 2021, estimated that air pollution from burning fossil fuels caused roughly 8.7 million deaths worldwide in 2018, exceeding findings from other studies.
Effective measures and cooperation between stakeholders are needed to mitigate the rise in greenhouse gas emissions. Accurate measurement of greenhouse gas emissions is crucial to implementing effective reduction initiatives in accordance with international agreements and national policies. The development of international standards, comparable to the verification and validation of greenhouse gas emissions, plays a key role in achieving accurate measurements.
Recognizing the worldwide industrial community’s future commitment to standardizing greenhouse gas emissions, MUTU International has decided to launch an initial public offering on the Indonesia Stock Exchange. As a part of the initial public offering, the corporate plans to supply as much as 942.85 million shares, which constitutes 30% of the entire issued and paid-in capital. The offer price is within the range of IDR 105 to IDR 110 per share, which is able to enable MUTU to boost an estimated fund of IDR 99 billion to IDR 103.71 billion.
Arifin Lambaga, president and director of MUTU International, said this strategic IPO move allows the corporate to capitalize on significant opportunities within the Indonesian TIC industry. He believes that as the federal government enforces certification requirements for businesses, the TIC industry will see accelerated growth.
Arifin Lambaga also highlighted MUTU’s strengths within the natural resources and green economy sectors. In the natural resources sector, MUTU contributes by strengthening the worth of processing corporations comparable to palm oil, timber and agricultural products through its testing, inspection and certification services. Additionally, as a key player within the verification and validation of greenhouse gas emissions, MUTU is an element of the worldwide trend towards commitments to scale back greenhouse gas emissions in the long run.
Through its IPO, MUTU International intends to proceed its commitment to environmental sustainability, contributing to the event of responsible practices within the TIC sector and the general goal of protecting the planet for future generations.
Bibliography:
- “Causes of climate change”. European CommissionClimate.ec.europa.eu/climate-change/causes-climate-change_en#:~:text=Burning%20fossil%20fuels%2C%20cutting%20down,greenhouse%20effect%20and%20global%20warming.
- “Global Greenhouse Gas Emissions Data.” US Environmental Protection Agency15/02/2023, www.epa.gov/ghgemissions/global-greenhouse-gas-emissions-data.
- Roser, Max. “Data Review: How Many People Die from Air Pollution?” Our world in dataJuly 24, 2023, ourworldindata.org/data-review-air-pollution-deaths.
- Grahanus Mediatam. “This is the plan of Mutuagung Lestari (MUTU) after the IPO.” PT Kontan Grahanusa MediatamaJuly 14, 2023, stocksetup.kontan.co.id/news/ini-rencana-mutuagung-lestari-mutu-usai-gelar-ipo.
- Bagaskara. “Quality IPO, Mutuagung Lestari leverages TIC industry opportunities.” International MutuJuly 24, 2023, mutucertification.com/ipo-mutu-tangkap-peluang-industri-tic.
