Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Capital Markets  >>   Fraud warning in Bumi prospectus
NEWS UPDATES Asean Affairs         22  June 2011

Fraud warning in Bumi prospectus

Related Stories

May 4, 2011
Indonesia to introduce Shariah equities index

February 17, 2011
New trading hours for Indonesian bourse

February 5, 2011
Indonesia could be left out of regional link

December 28, 2010
Indonesian firms raise $11.4b from stock market

Bumi, the renamed venture founded by global financier Nathaniel Rothschild and majority-owned by Indonesia’s Bakrie family, has detailed fraud and graft allegations among risks to investors eyeing its shares when it lists next week.

Bumi published its prospectus ahead of a listing of the company’s shares on the premium segment of London’s official list, the first step in the path to a spot in the FTSE index.

“It may not be possible for the group to detect or prevent every instance of fraud, bribery and corruption in every jurisdiction,” Bumi said.

Prospectuses for companies operating in some of the world’s more difficult geographies often detail fraud risk. However, the involvement of the politically connected Bakrie family has generated increased interest in Bumi’s listing documents, not least because of the perceived lack of disclosure among Bakrie-linked companies.

The potential catapulting into the FTSE of one of Indonesia’s best-known political families, delays to the listing and the complexity of the deal have added to pressure on the company. So too have concerns surrounding other miners majority-owned by emerging markets investors, particularly Kazakh miner ENRC, which has been damaged by a boardroom split.

Bumi, which disclosed risks to investors over 20 pages, said Indonesia, where its activities are focused, ranked 110 out of 178 countries in Transparency International’s 2010 Corruption Perceptions Index. It also highlighted allegations made by a former tax official at the center of a high-profile corruption trial, Gayus Tambunan, who said subsidiaries Bumi Resources, Kaltim Prima Coal and Arutmin paid him $3 million to settle tax disputes.

Tambunan was convicted in January for bribery and abuse of power and faces a new trial over falsifying a passport. Bumi, meanwhile, said police had found insufficient evidence to file charges against Bumi Resources, and internal investigations found the allegations “groundless.”

But the company has retained a third-party consultant to review procedures for cash payments and said that corruption allegations “even if untrue, could harm the group’s reputation.”

“They are being ultra-cautious,” said one source familiar with the listing process, referring to anticorruption policies.

The trial is ongoing.


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    22  June  2011 Subsribe Now !
• Fraud warning in Bumi prospectus Subcribe: Asean Affairs Global Magazine
• US companies to make shoes in Indonesia Asean Affairs Premium
• Malaysia fingerprints voters
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Myanmar media owner asks for acquittal
• Philippines-NZ dairy talks stall
• Singapore invests in mobile apps
• Thailand economic group challenges election giveaways
• Thai digital media budgets increase p

Asean Analysis    22  June  2011

Advertise Your Brand
• Thailand after the election Sponsor Our Events

Asean Stock Watch    22  June  2011 

• Asean Stock Watch-June 22 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand