Bumi Looks Set To Be Hit By Recent Acquisitions

A series of opaque acquisitions by Indonesia's Bumi Resources, the country's largest coal producer and the flagship subsidiary of the powerful Bakrie Group, have produced a negative reaction from elements of the investment community, one which CFW believes could yet have major consequences for Bumi, Bakrie and even Indonesia's capital market itself. Trouble began when Bumi spent around IDR6.1trn (US$564mn) taking stakes in three domestic coal companies, specifically 89% of PT Pendopo Energi, a 95% stake in PT Fajar Bumi Sakti and a 44% stake in PT Dharma Henwa. Not only is it spending around 20% of its total equity

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