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Message from President Commissioner

Board of Commissioners considers that the Board of Directors has drawn up appropriate measures to address various challenges faced by the Company. From the operational side, this has been proven by the success of BUMI in significantly improving its efficiency.



Dear Shareholders,


Entering 2015, the mining industry in general is still under pressure. The prices of mining commodities, such as oil, coal, nickel and others, are still struggling in the lower price range. Oil prices had even reached the lowest point in the last six years.

Global coal selling price is still unable to rise any higher, in fact it continues to go downward. This is mainly due to the oversupply and the declining demand from China, one of the largest coal importers in the world, and one of our main coal export destinations, in addition to India and Japan.

Against this circumstances, maintaining the operational of mining companies is certainly a tough undertaking, as evident by the large amount of mining company forced to cease its operation.

Pondering upon the above facts, the Board of Commissioners very much appreciates the hard work and persistence of the Board of Directors and Management of the Company in overcoming these challenges.



Review on BOD Performance


BOC considers that the Board of Directors has drawn up appropriate measures to address the various challenges. Operation wise, BUMI is proven able to improve efficiency significantly, especially on coal segment, as evident from the decline in striping ratio, or cash cost of production. If we are able to maintain such level of efficiency, then upon the full recovery of the world economy, and the coal mining industry regained its momentum, we strongly believe that the Company will be able to again spur its growth.

On the other hand, BUMI seeks to continue to increase its sales by approaching reputable customers. In our opinion, the approach taken by BUMI is quite effective to maintain the selling price of BUMI coal at a reasonable rate.

Regarding financial performance, we see that the Board of Directors continues to strive to maintain the balance of the Company’s cash flow and to direct it to a more healthy position. In our view, BOD’s initiative to reschedule debt settlement, or in different cases by converting them into shares of stock, is an evidence of BOD’s solid experience as the helmsman of the Company. We believe that if all goes well, then BUMI will again have a healthy and strong financial structure.

When we see the result of 2014, we understand that the Board of Directors has adopted the right strategy regarding the situation experienced by the Company. In the previous year, the Company recorded a net loss of USD 609.0 million, now in 2014, the Company managed to record a net loss of USD 388.0 million (January - December 2014). It is a positive note for BUMI and can certainly will strengthen the optimism of shareholders, employees and other stakeholders.

BUMI’s strong commitment to the application of the principles of good corporate governance within the company also determine the future of the Company. BOC considers that the Board of Directors is able to keep that commitment and not to compromise despite facing great challenges. BUMI consistency in performing one of the principles of good corporate governance, namely openness, is evidenced by its adherence to the rules, including one that require the Company to submit audited financial statements, annual reports, and other reports required by the regulator. It would abate biased sentiments in share valuation process and would return market trust towards BUMI. Going forward, this will be a strong foundation for the Company’s business continuity.


Business Prospect

Global economic slowdown is predicted to continue in 2015. However, we are still optimistic, despite that the economic recovery might not happen in the near future, but the recovery efforts in that direction began surfacing, both domestically and abroad.

The analysts also speak in optimistic tones over Indonesian economy. Although it still grow in a moderate level of 5.5 to 5.8%, not as high as what have been expected before, but it is still considered solid enough to cope with fluctuations in the world economy. The government plans to spur the development of infrastructure and productive sectors which certainly can boost economic growth in the future.


Changes in Board of Commissioners

BUMI‘s General Meeting of Shareholders held on June 30, 2014, reached the decision that the commissioners who served at the time of the AGM are reappointed and may resume their duties as the Board of Commissioners. Accordingly, no changes in the composition of the Board of Commissioners occurred in 2014.




Closing Mark

On this occasion, please allow me to represent the Board of Commissioners to express our appreciation to the success shown by the Board of Directors and the Management of BUMI, in bringing the Company passed a tough challenge in 2014.

We also wish to thank all employees of BUMI for their loyalty and hard work throughout 2014. The Board of Commissioners would like to also thank the shareholders for their trust and support bestowed upon us.

And finally, to our customers, business partners and other stakeholders, we also wish to thank you for your cooperation. Obviously we hope that this good thing can be continued in the coming years.



On behalf of the Board of Commissioners

PT Bumi Resources, Tbk


Kusumo A. Martoredjo

President Commissioner & Independent Commissioner

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