JAKARTA (Indonesia Today) – Composite index of the Indonesia Stock Exchange (IDX) ended lower by 1.03% at 4,200.01 on Monday (Sept 24) with Bumi leading the fall. Regional weaknesses also hit sentiment on local stocks.
Shares of giant coal miner PT Bumi Resources Tbk (BUMI) dropped 19.05% to Rp160 per share after its biggest shareholder, Bumi Plc, said it was investigating potential financial irregularities.
Another underlying asset Berau Coal Energy (BRAU) also lost 9.27%. All other Bakrie-related stocks were smashed. Bakrie Telecom plummeted 16.85%, Bumi Resource Minerals lost 12.28%, Bakrieland -11.86%, Energi Mega Persada-12.50%, Bakrie Sumatera Plantation -8.90% and Visi Media down 6.06%.
Bumi Plc announced on its website today that it has become aware of allegations concerning, among other matters, potential financial and other irregularities in the company’s Indonesian operations, especially in relation to PT Bumi Resources Tbk (BUMI).
Bumi Plc said an independent investigation has been commissioned to investigate the allegations on an urgent basis, and is to report to the Board. ??It ??also intends to contact relevant authorities in the UK and Indonesia, as appropriate, in respect of some of the allegations.
An area of focus of the investigation, Bumi Plc said, will be the development funds of PT Bumi Resources Tbk. ??The extensive development funds in PT Bumi Resources Tbk and the one development asset in PT Berau Coal Energy Tbk were marked down to zero in the accounts of Bumi plc as at 31 December 2011, except for one investment with a carrying value of $39 million in the consolidated financial statements. (Indonesia Today)