SEC questions Bumi's loan collateral

Publicly listed PT Bumi Resources Tbk has raised bank loans worth about US$103.9 million to acquire South Kalimantan-based coal mining company, Bisnis Indonesia reported on Tuesday.

But the Capital Market Supervisory Agency (Bapepam) questioned the type of collateral the company had provided to guarantee the loan.

According to Bapepam? senior official Indarto, the information submitted by Bumi Resources to Bapepam related to the takeover plan and the bank collateral was not clear enough.

?We have to know exactly the kind of collateral it provided to ensure that it would not cause loss to the investing public,? Indra said. ?We also want to know the majority shareholders of the company,? he said.

Earlier reports said that Bumi Resources, partly owned by Aburizal Bakrie family, plans to take over the 100 percent stake of PT Arutmin. The company which is involved in coal mining activities in Kotabaru regency, South Kalimantan, is 80 percent owned by BHP of Australia and 20 percent by PT Barkrie and Brothers.

The acquisition of BHP?s 80 percent share will cost Bumi Resources some US$148.4 million, while the 20 percent share of Bakrie will be worth $35 million. (*)