Monitoring potential default by BCIP subisidiary

Jakarta. Following the case of default payment by Brent Ventura of its Medium Term Note (MTN), the potential default payment by PT Berkat Bumi Citra of its MTN has recently led to unease among the investors.

Berkat Bumi is the subsidiary of PT Bumi Citra Permai Tbk (BCIP) under the Millenium Group. Initially, the MTN funds would be allocated to develop a 1,800 hectare of Millenium Industrial Estate or MIE industrial zone in Cikupa, Tangerang.

The total worth of released MTN by Berkat Bumi remains unclear. But some sources of KONTAN mentioned that the total value of the MTN amounted to hundreds billion rupiah.

One of Berkat Bumi representatives, who did not want to be named, refused to make comment related to the case.

KONTAN actually to contact Corporate Secretary of Bumi Citra Permai Yusli to ask confirmation related to the problem. However, until the news was revealed, KONTAN has not yet received any confirmation, while his phone cell was inactive.

An investor, Joanita Olivia claimed to have invested Rp 1.15 billion under the MTN of Berkat Bumi for a 31-day term. Joanita had deposited the funds in three phases, Rp 300 million, Rp 600 million, and Rp 250 million on 9 August 2016, 22 August 2016, and 24 August 2016, respectively. Berkat Bumi offered a 9.5% of annual return for this investment.

However, on the due date Joanita did not received the return, let alone to withdraw her funds. The lawyer of Joanita Ivan MP Tampubolon claimed that Berkat Bumi had repeatedly promised to settle the bills from his client. However, the financial institution has never realized the promises.

Aside of Joanita, other investors like Lianawati and Yongki Winoto also have the similar case. A number of Berkat Bumi’s investors in Solo, Semarang, and Surabaya are worried of the prospect of their funds.

On a letter to its investors, Berkat Bumi admitted to face financial difficulties. As a commitment to its commitment, Berkat Bumi offers its assets like lands and buildings as the insurance.

However, the investors are unsatisfied with the offer. Therefore Joanita and two other investors to apply for request for postponement of debt payment obligations to Central Jakarta Commercial Court. They hoped that this would force Berkat Bumi to fulfill its obligations.

(MUHAMMAD FARID/Translator)