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Jakarta Post

Win or lose, Bakries ‘must clean up own mess’

  • Raras Cahyafitri

    The Jakarta Post

Jakarta   /   Fri, February 22 2013   /  10:26 am

Whatever the results of Bumi plc’s extraordinary general meeting (EGM) in London on Thursday, the Bakries need to clean up alleged regularities in order to help restore the reputation of its crown jewel, Jakarta-listed PT Bumi Resources, analysts say.

Bumi Resources has been under the spotlight for alleged financial irregularities after a whistleblower brought documents to the firm’s 29.2 percent owner, Bumi plc, in September last year.

The documents reportedly exposed US$1 billion in financial malfeasance in Bumi plc’s Indonesian assets, which are its stake in Bumi Resources and a 84.7 percent stake in PT Berau Coal Energy.

Bumi plc, in which Indonesian investor Bakrie Group indirectly owns 23.8 percent, decided to involve law firm Macfarlanes LLP to conduct an investigation into the allegations. However, the probe’s results have been kept from the public a...