Press Release: PT Bumi Resources Tbk announces US$385 million refinancing

SINGAPORE -- 4 October 2004 ? Indonesia?s largest coal producer, PT Bumi Resources Tbk today signed a $ 385 million refinancing agreement, for PT Kaltim Prima Coal (KPC), one of its subsidiaries, with Credit Suisse First Boston (CSFB), thus reducing its average interest expenses on the loan from around 12% to around 6% (Libor + 4%).

Ari S. Hudaya, President Director of PT Bumi Resources Tbk said: ?The signing of this agreement is another important step in strengthening our balance sheet and enhancing our financial efficiency. This new refinanced is one in a series of consecutive steps in our financial strategy that allow us to improve our cash flow. To date we have paid a total of US$40 million so far this year with US$20 million paid at the end of Q2, ahead of schedule. During the same period Bumi?s market capitalization has risen to US$1.6 billion or more than 40% since the beginning of the year.? Ari went on to say: ?As part of our strategy, we will continue to adopt measures to improve our financial position and thus ultimately benefit our shareholders.?

The transaction syndication attracted 24 institutions ranging from European to Asian creditor bases and a commitment of US$686 million in demand, an oversubscription of nearly twice the amount of the loan. ?In addition to demonstrating the confidence of the international financial markets in Bumi Resources,? added Eddie Soebari, Director of PT Bumi Resources Tbk.

Given the bullish coal market and its low capital-cost production strategy, Bumi Resources will continue to expand its capacity aggressively over the next three years to reach production of 70 million tons. For 2004 Bumi has secured sales contracts for more than 94% of the coal that it produces through term contracts. Bumi has committed 45% of next year?s delivery contracts.

Bumi Resources Tbk., a JSE listed holding company with market capitalization of US$1.6 billion and now in the MSCI Indonesia, has emerged as one of the world?s largest exporters of thermal coal. Bumi Resources Tbk has two coal-mining subsidiaries, PT Kaltim Prima Coal and PT Arutmin Indonesia. At the present time 94% of the 38.5 million tons that it mined in 2004 is under yearly contracts to international buyers; the remainder is sold on the spot market and currently commands over US$55 per ton. (end of release)

Contact: Martinus Peter T. (Investor Relations)
Ph: (6221) - 574 205
Fax: (6221)- 573 3421
www.bumiresources.com