Purpose: This study aims to evaluate the internal readiness and governance of PAM Jaya in transforming its legal entity from a Regional Public Company into a Regional State-Owned Limited Liability Company as a strategic step toward becoming a public company through an IPO.
Research Methodology: This study was conducted at PAM Jaya, a regional drinking water utility in the Special Capital Region of Jakarta. A mixed-methods approach was employed that combined quantitative and qualitative analyses.
Results: The findings indicate that PAM Jaya has strong long-term revenue stability, providing a solid foundation for its corporate transformation. However, significant gaps remain in information transparency, investor relations functions, and financial reporting standards required by capital markets. In addition, the organizational culture requires further strengthening to support the transition from a public service orientation to an independent corporate environment.
Conclusions: The transformation of PAM Jaya into a Regional State-Owned Limited Liability Company is highly feasible. Nevertheless, the success of a future IPO depends on implementing a clear transformation roadmap, stronger GCG, strict compliance with capital market regulations, and clearer shareholder policies regarding public service obligations.
Limitations: This study focuses on a single regional water utility company, which may limit the generalizability of the findings to other public service enterprises with different organizational and regulatory environments.

Contributions: This study contributes to the literature on public sector transformation, corporate governance and state-owned enterprise reform. It provides practical insights for policymakers, local governments, utility managers, and researchers regarding organizational readiness  and strategic planning for IPO.