Bayan secures approval from Bapepam

Coal mining firm PT Bayan Resources begins selling shares to the public today after finally receiving the go ahead from the Capital Market Financial Institutions Supervisory Board (Bapepam), Kontan reported on Wednesday.

The company?s corporate secretary Jenny Quentero said in Jakarta on Tuesday that Bapepam had declared the effective date of the company?s registration statement on Monday night.

With the Bapepam?s approval, Bayan will sell its shares beginning today (Wednesday) until Friday. The shares will be listed on the Indonesian Stock Exchange on Aug. 12.

Bayan planned to offer about 31 percent of its shares from July 29 through August 1, but it was later delayed after Bapepam refused to issue its approval due to a problem related to exploration activities of the company?s subsidiary in East Kalimantan.

As earlier reported, the local government of the East Kutai regency in East Kalimantan halted the operation of Bayan?s subsidiary PT Perkasa Inakakerta since July 11 for conducting mining activities in forestry area without a proper permit from the Forestry Ministry.

Bapepam chairman Fuad Rahmany said on Tuesday that the company was allowed to go ahead with its IPO plan because ?it is the licensing problem of the central government not the local authority.?

?The most important thing is that investors are aware that the company has a problem with its mining permit,? Fuad said. (*)