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BUMI criticized the comments of an official of IDX

Wednesday, 29 November 2017 | Dityasa H Forddanta

KONTAN.CO.ID - JAKARTA. PT Bumi Resources Tbk (BUMI) criticized one of the executives of Indonesia Stock Exchange (IDX) Nicky Hogan. Criticism was triggered by Nicky's comments about character of a novice investor in an event organized by The Financial Services Authority (OJK).

In an event Financial Clinic with OJK earlier this week, Nicky describes the condition of beginner investors who still often misunderstand. He considered, beginner investors prefer stock volume without considering the fundamental condition of the issuer.

He gave an example, with a capital of Rp 5 million, beginner investors prefer to buy 200 lots of shares of BUMI rather than 5 lots of shares of PT Unilever Indonesia Tbk (UNVR). In fact, according to Nicky, novice investors do not know the history of BUMI.

This comment makes the management of BUMI react. "We think the comments are inappropriate to appear from senior officials at IDX," said Dileep Srivastava, Director of BUMI to Kontan.co.id, Tuesday (28/11). Moreover, the comment was delivered in the middle of a financial clinic forum organized by OJK.

BUMI shares, continued Dileep, have increased almost 600%. The increase also has a basis, namely the fundamental reserves, especially coal reserves, business operations, and coal sector climate re-attractive.

This is still reinforced by the decrease of debt, the principal of interest expense in line with the ongoing restructuring process. Thus, BUMI's profitability will return. "BUMI shares are in the LQ45 Index and MSCI Indonesia, so it does not need to be mentioned that way," Dileep said. He requested that the comment be withdrawn.

"It's been communicated, really, sure (yesterday's comment) not in a negative context," Nicky said when asked for confirmation by Kontan.co.id.

Reporter: Dityasa H Forddanta
Editor: Hasbi Maulana
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