PT. Bumi Resources Tbk.

“Before I describe the achievement that BUMI had in 2011, I would like to reflect on what BUMI stands for. There is much to say after the first ten years of this Company, much to say about how far it has come and how far it can go. Foremost is management’s ensuring that primary focus has consistently remained on the mines.”

Arutmin has grown from a mine with per per year output of 13.6 million tonnes at acquisition in 2003 to 24.7 million tonnes in 2011. KPC has expanded from an output of 28.2 million tonnes at acquisition in 2005 to 40,5 million tonnes in 2011. BUMI’s first decade was also marked with an impressive improvement in safety performance, the formalization of the reforestation programs and heightened regard and investment for its community responsibilities.

Now providing employment for 35,000 employees, BUMI has increased training and opportunities for its staff. Through heavy rains or fine weather, teams of experienced coalminers have shipped ever greater amounts of coal to domestic markets and abroad, making BUMI the world’s largest exporter of thermal coal.

While recently acquiring new brownfield and greenfield coal properties, BUMI has broadened its scope to include a variety of metals properties, both inside and outside of Indonesia. Exploration continues and some economically viable deposits have been found. Management’s commitment to return value to shareholders is mirrored in the commitment made early on to find oil in their first property of Gallo Oil, acquired ten years ago and verging on finding oil in economic quantities.

2011 Performance Gains

Commitment and value were both in evidence in the returns of 2011 with total revenue increasing to US$ 4 billion, up 37% from 2010’s US$ 2.92 billion; EBITDA increasing to US$ 1.3 billion, up 34% from 2010’s US$ 1 billion and returning an earnings per share of US$ 10.86 in 2011.

The Board of Commissioners did notice the decrease in share price over the course of 2011 and feel that this decline is temporary, created primarily by market events in the Eurozone, over which BUMI has little control. Because the Company’s fundamentals remain solid and the Company remains sufficiently profitable, market uncertainty will subside, and the share price will return to levels better reflecting BUMI’s underlying value.

Achieving attainable growth targets for mine output, coupled with bringing new coal properties into production resulted in increased output of 65.9 million tonnes in 2011. The Board of Commissioners feels strongly that due attention was paid by the Board of Directors throughout 2011 concentrating on mine operations while pushing forward with BUMI’s long term expansion strategy.

In terms of long term strategy, following on the early repayment of expensive debt in 2010 which resulted in substantial immediate savings, agreement was reached with Bukit Mutiara (owner of affiliate coal company Berau Coal) and Recapital Asset Management on the repayment of loans in 2012 to allow BUMI to continue early repayment of debt. The recent strategic grouping of the non-coal non-oil assets into Bumi Resources Minerals has provided organizational focus. Thus, with the effective leveraging policy and the organizational sharpening, investors will benefit from increased income streams while acquiring long term interests in a promising range of discreetly managed mining prospects.

Long term predictions rest on forecasting into the next 20 years, with output targets mirroring a variety of national growth expections across the Asian region and the world. With supply currently emphasised to keep pace with demand, BUMI has set priorities that balance interests: meet demand but prioritize the long term environmental interests of Indonesia.

Governance

BUMI through its investor relations department maintains a steady flow of information to all investors. This information is gained through internal audit and governance systems overseen by the Board of Commissioners with the assistance of the four committees under its jurisdiction.

In 2011 the Audit Committee was actively in monitoring the financial reporting systems and Internal Audit actions, with the Board of Commissioners receiving timely and informative reports. The Risk Management Committee was active with the assistance of an external consultant in strengthening risk capability in the areas of succession planning, consolidated financial reporting and fuel pricing.

The Remuneration and Nomination Committee has reviewed remuneration and Nomination Committee Charter draft for the Board of Commissioners and Board of Directors. The IT Steering Committee made several recommendations to strengthen the IT data collection, communication and report generation systems, in an effort to simplifying and consolidating the presentation of performance data and facilitating communication across a growing number of operational units and key personnel.

In an effort to expand reporting coverage and strengthening commitment to the CSR process, BUMI will be introducing a Sustainability Report in 2011. The purpose of this report is to collect pertinent information from KPC’s award winning report and Arutmin’s sustainability efforts into a single source. As other mines expand or come into production, their data will be integrated into the report. We do hope that the final report will highlight BUMI’s growing commitment to sustainable community development.

This report will highlight actions that BUMI has taken to meet its commitment to reforestation and its close attention to managing the mine footprints. In following good mining practice, BUMI is leading the way in ensuring biodiversity and reestablishing habitats, including cooperation in protecting orangutans.

The Global Market – Past and Future

The global market for coal in 2011 was generally favorable with a slight increase in average price and moderately increasing demand. The world-wide continuing economic uncertainty stemming from Europe and the United States of America has damped demand in certain markets and has led to increased caution among energy purchasers. Nevertheless, BUMI’s balancing of long and spot market positions provided and will continue to provide a cushion against sharp changes in market conditions while allowing some flexibility to meet changing circumstances.

BUMI is always taking efforts to ensure that its customers are prioritized in meeting potential energy supply uncertainty into 2012. These efforts are integral to the vision to be a world class global operator: customers are always served. However, a challenge remains for BUMI, not only in reaching output targets of 100 million tonnes by 2014, but also navigating the unsteady market demands created by economic conditions in Europe and the United States of America.

Nevertheless, with BUMI’s customer commitment, large proven reserves and secured delivery chain, the prospects are good for BUMI into the medium term. The Board of Commissioners is confident that demand for its coal will remain strong, especially so within BUMI’s key market areas of Japan and China, and within the growing domestic demand created by increased coal-fired energy production coming on line.

Appreciation

In closing this letter, let me express a strong appreciation on behalf of the Board of Commissioners for the hard work done by management, staff and contractors over 2011. I would like to thank the various regulators for providing the framework for a vibrant mining sector within Indonesia. I would also like to thank our shareholders and other stakeholders for their continued support for the company.