IDX to summon Bakrie affiliated companies to clarify rumor

The Jakarta Post | Tue, 10/07/2008 6:52 PM | Business

The Indonesia Stock Exchange (IDX) will summon the management of six listed companies affiliated with the Bakrie family for clarifications on rumors of a repo transaction payment default, which led to the Tuesday suspension.

The companies are, PT Bumi Resources (BUMI), PT Bakrie Sumatera Plantation (UNSP), PT Bakrieland Development (ELTY), PT Bakrie & Brothers (BNBR), PT Energy Mega Persada (ENRG) and PT Bakrie Telecom (BTEL).

"We will summon all the management of listed companies affiliated by Bakrie Group to seek clarification on the repo default rumor, which caused their shares tumbling yesterday," IDX president director Erry Firmansyah said Tuesday.

The IDX on Tuesday suspended the shares of Bumi Resources, Indonesia's biggest market mover, after it lost around a third of its value yesterday. The suspension also applied to the rest five companies affiliated to the Bakrie Group.

Erry said the suspension would be lifted after the exchange receive full explanations as to what happened during Monday trading, which saw the IDX composite index tumbled by 10 percent, the biggest drop in a day ever.

Bumi's shares were suspended after declining by 32.03 percent to Rp 2,175 per share on Tuesday compared to the last trading session before the Idul Fitri holiday on Sept. 29, while UNSP suspended at Rp 460 after plunging by 35.21 percent, ENRG at Rp 350 after down by 32.69 percent, ELTY at Rp 150 after a steep decrease by 36.17 percent, while BTL at Rp 150 after tumbling by 40 percent.

In separate place, the management of Bumi announced the plan to buy back 10 percent of its shares to take advantage of lower shares prices.

"We plan to hold a shareholders' extraordinary meeting at the earliest possible date to obtain the required regulatory and shareholder approval," Bumi president director Ari Hudaya said in a statement sent to The Jakarta Post. (and)

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