Release: Moody?s places ratings of KPC on review for possible downgrade

Hong Kong, June 22, 2005 -- Moody's Investor Service has placed the following ratings of Kaltim Prima Coal (KPC) on review for possible downgrade:

Ba2 local currency corporate family rating (previously called senior implied rating)
Ba3 local currency issuer rating
Ba2 foreign currency secured debt rating

This rating action follows the announcement that all of KPC's existing and future receivables will be securitized to service USD$600 million of new debt to be raised by Bumi Resources, the majority owner of KPC. This may significantly reduce financial flexibility at the KPC level.

Moody's understands that the potential new parent-level bonds will be backed by existing and future receivables generated by KPC and PT Arutmin Indonesia, both of which are subsidiaries of Bumi Resources. Part of the new debt will be used to refinance the existing secured bank debt at the KPC level. When this occurs, Moody's expects to withdraw its secured bank debt rating.

In its review of the corporate family rating, Moody's will assess a) the financial profile of Bumi Resources on a consolidated basis after the new bond issuance; b) the debt-servicing needs at KPC's level for this new parent debt - and the resultant rating impact on KPC .

PT Kaltim Prima Coal, headquartered in Jakarta, Indonesia, operates one of the world's largest thermal coal mines in East Kalimantan, Indonesia. PT Bumi Resources TBK is a publicly listed company in Indonesia and the ultimate parent of KPC. (end of release)

Source: Moody's Investor Service