Bapepam to investigate Bumi Resources

The capital market watchdog (Bapepam) has decided to investigate mining-based company PT Bumi Resources Tbk (Bumi) in the first week of 2002 for its failure to explain the collateral it used to guarantee bank loan worth US$103.9 million to acquire coal mining PT Arutmin Indonesia.

Abraham Bastari, the head of the investigation department said in Jakarta late last week that his office was preparing for the investigation. ?We will soon summon the company?s management,? he told Bisnis Indonesia.

Bumi Resources has raised loan worth $103.9 million to finance the acquisition of the South Kalimantan-based coal mining company. However, the company did not provide information about the collateral the company should provide to guarantee the loans.

Separately, Bumi Resources? finance director Eddie J. Soebari said that the funds raised from the loan had been placed in an escrow account in a Singapore-based bank on October 23.

PT Arutmin, which operates coal mining in South Kalimantan, is 80 percent owned by BHP of Australia, and 20 percent by Bakrie and Brothers. (*)