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Indonesia’s Bakrie group urged to detail Bumi deal

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Indonesia’s Bakrie group urged to detail Bumi deal
Indonesia's regulator said on Monday a trading suspension in shares of some Bakrie group firms would not be lifted until the group provides details on its plans to raise $1.3 billion from the sale of a stake in coal miner Bumi Resources, reported Reuters.

Concerns about the group's financial health contributed to a sharp sell-off in Indonesia's stock market .JKSE, prompting the authorities to close the exchange for three days last month.

PT Bakrie & Brothers Tbk, controlled by the family of Indonesia's chief social welfare minister Aburizal Bakrie, said on Saturday investment group Northstar Pacific would buy a 35 percent stake in Bumi, Indonesia's biggest coal-mining firm.

"We have asked them to hold a public (presentation) immediately to explain how they will repay debts related to the repurchase agreement of Bumi shares from the proceeds from the sale to Northstar," Fuad Rahmany, chairman of the capital market watchdog, known as Bapepam, told Reuters by text message.

"Soon after the public (presentation), we will lift the trading halt," Rahmany added.

Bakrie & Brothers, which has interests in energy, property and telecoms, borrowed $1.1 billion last year, using shares of Bumi Resources as collateral for the loan, but the shares have since tumbled 75 percent since peaking in June.

A spokeswoman for Bakrie & Brothers said the group had not yet set a date to hold a public presentation.

Northstar Pacific is run by Indonesian banker Patrick Walujo, a former Goldman Sachs banker, and has a joint venture with U.S. buyout firm TPG Capital.

Bakrie & Brothers has been struggling to raise over $1 billion to repay short-term debt amid global financial market turmoil.

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