Mining Company Owned By Bakrie Conglomerate Family Gets IUPK Extension 10 Years

Illustration. (Photo: Doc. Antara)

JAKARTA - The mining company belonging to the Bakrie conglomerate family, PT Bumi Resources Tbk (BUMI) has received approval for the extension of the Special Mining Business License (IUPK) for its business entity, namely PT Kaltim Prima Coal (KPC).

President Director of Bumi Resources, Adika Nuraga Bakrie, thanked the government for recognizing the company's contribution to the state treasury.

"Our contribution to the surrounding community is through sustainable development and welfare programs and a commitment to continue to comply with applicable laws and regulations and world-class mining governance practices," he said in a written statement, quoted Saturday, March 12.

BUMI announced on March 9, 2022 that PT Kaltim Prima Coal obtained a Special Mining Business License from the government. This is through the Decree of the Minister of Investment/Head of the Investment Coordinating Board of the Republic of Indonesia No. 90/1/IUP/PMA/2021 concerning Approval for Granting Special Mining Business Permits as Continuation of Contract/Agreement Operations to PT Kaltim Prima Coal.

This IUPK is granted for a period of 10 years until December 31, 2031 and can be extended in accordance with the provisions of the legislation. The granting of this permit will have a good impact on the sustainability of the company's operations and also on state revenues.

For information, BUMI has just carried out the Capital Increase Without Pre-emptive Rights (PMTHMETD) by issuing a total of 34.49 billion new shares. BUMI mentions PMTHMETD in order to improve its financial position. This coal mining issuer launched new shares with a par value of Rp50 per share and an exercise price for PMTHMETD of Rp73 per share.

"The price is the conversion price for the Mandatory Convertible Bonds (OWK) that applies to the exercise of the conversion rights of the OWK," the management wrote in the disclosure of information.

As for the parties who took part in the PMTHMETD, the details were on behalf of Nuzul Fajri Muhammad Nur with a total conversion rate of IDR 5.68 million or 77,944 shares of OWK, Ita Haryavita worth IDR 6.5 million or 89,041 shares.

Furthermore, on behalf of Ronald Ferry Pangaribuan with a total conversion rate of IDR 90 million or 1,232,877 shares, and the largest was from the company Innovate Capital Pte. Ltd. worth Rp2.51 trillion or 34,496,648,183 shares. The total implementation of the conversion of OWK reached a value of Rp2,518,357,507,312 with a total number of 34,498,048,045 shares or 34.49 billion Series C shares.

After the implementation of this PMTHMETD, the total issued and paid-up capital of the Company will increase from 74,274,746,007 shares which are divided into 20.77 billion Series A shares and 53.50 Series B shares, to 108.77 billion shares which are divided into 20.77 billion shares. Series A shares, 53.50 Series B shares, and 34.49 billion Series C shares.