Double Trouble; Analyst Suggests Avoiding Bakrie Stocks

TEMPO.CO, Jakarta - Over the last couple of weeks, unpleasant situations have been looming over the Bakrie Group. PT Bakrie Sumatera Plantations Tbk (IDX: UNSP) is threatened with inability to pay US$100 million of bond interest. Meanwhile, PT Bakrie Telecom Tbk (IDX:BTEL) is being sued by three bond holders in the United States on a similar charge of failing to pay bond interest.

The negative sentiments, analysts said, are causing Bakrie Group's stocks performances to falter in the Indonesia Stock Exchange (IDX). David Cornelis from KSK Financial Group said that, for the mid term, Bakrie's stock prices will remain in downtrend.

"[Bakrie's] management must work hard in order to keep their shares attractive [to investors]," he told Tempo on Friday.

On Monday last week, three BTEL bond buyers filed a lawsuit to the Court of New York, suing Bakrie telecom for allegedly violating terms of agreement. The investors claimed that BTEL and two other Bakrie companies have failed to pay their bond interests for two times. Meanwhile, Bakrie Sumatera Plantation may not be able to pay its interest on bonds worth US$100 million.

John Vetter, an analyst with Investa Saran Mandiri, also recommended investors to avoid Bakrie shares for the time being. "It is best to invest in issuers that are proven to have good fundamentals, with a management that is not problematic." 

FAIZ NASHRILLAH | M. AZHAR (PDAT) | DINI PRAMITA