T

he seemingly toothless Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) is facing another daunting task in probing companies linked to the politically wired Bakrie family.

While official investigations are still underway, the watchdog has made pessimistic remarks that this new case with family controlled coal producer PT Bumi Resources, is unlikely to be resolved easily.

"We have found no violation yet in (the transactions made by Bumi). There is some misinformation going on, and we still probing whether this has resulted in any wrongdoing," said Bapepam head of investigation Sardjito on Friday.

Bumi has spent a total of Rp 6.1 trillion (US$564 million) purchasing shares in three coal companies -- PT Pendopo Energi, PT Fajar Bumi Sakti and PT Dharma Henwa.

The combined transaction value exceeds 10 percent of Bumi's revenue and 20 percent of equity value. Under the existing regulations, this acquisition value is considered to be a "material transaction", requiring prior Bapepam clearance.

In its recent disclosures, Bumi has insisted it has not violated any stock market regulations.

Bumi president director Ari Saptari Hudaya has said the acquisitions will be paid in several instalments, therefore not burdening the company with heavy debts nor violating the "material transaction" benchmark.

Another concern over the transactions is that the heavily indebted Bakrie family is trying to make Bumi a cash cow to help pay its debts by forcing the company to purchase the three firms which are allegedly also controlled by the family.

Pendopo Energi is 90 percent-owned by PT Bakrie Capital Indonesia, while the Fajar Bumi president director is a former analyst at Bumi and its coal producing subsidiaries.

Nalinkant Rathod, the Bakrie & Brothers president director, is also listed as Fajar's president commissioner.

Bapepam chairman Fuad Rahmany said earlier the investigation was under way due to suspicions the acquisitions might not have been made in the best interests of the shareholders. Analysts have also been questioning the transactions as the prices are far above their book values and will put another burden on Bumi, whose parent PT Bakrie & Brothers is already heavily indebted.

Earlier this week, Bumi submitted a report based on independent appraisals to Bapepam to explain the disputed acquisitions to the capital market authority.

Bumi has said Yanuar Bey & Partners and Ernst & Young Advisory Services have cleared any possible allegations of conflict of interest or of price-inflating transactions.

The Bumi case was previously handled by the Bapepam bureau of financial report and inspection for real sector companies, headed by Anis Baridwan. Anis recently handed over the case to Sardjito.

"We have seen their (Bumi management) arguments are different from what we consider. That's why we requested the investigation and inspection bureau to examine the transactions further," he said.

The recent Bumi case is another spat in the uneven saga of battles between Bapepam and the firms linked to the Bakrie family, which helped bankroll President Susilo Bambang Yudhoyono's 2004 election. Thus far, Bapepam is losing these battles one after the other and no stiff sanctions have been slapped onto these companies.

The first case of Bapepam versus the Bakries erupted in 2007 when the family decided to sell embattled Lapindo Brantas from parent PT Energi Mega Persada.