I’m a bull on Indonesia* for all my sins and it hasn’t done me much gd. It is a treacherous place, navigating through opaque regulations, erratic business relationships, changing policies and deeply entrenched corruption.
Nat Rothschild, son of Jacob Rothschild (a semi- retired leading London- based financier), a good dealer-maker and savvy investor has found that out the hard way. He is chairman and a major shareholder of London- listed Bumi plc which owns a 29% stake in Jakarta- listed Bumi Resources, and 75% of Berau. He wrote in early November a very nasty letter to the CEO of both Bumi compaines (same man), complaining that
– despite being heavily in debt, Bumi Resources had US$867m of assets that had nothing to do with its core coal business; and
– these assets were held by “connected parties”.
It seems he has yet to receive an official response.
RElated post:
http://atans1.wordpress.com/2010/12/15/nomura-bullish-on-indonesia/#more-5517
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*Long on Lippo Malls Trust and hoping First Reit’s share price falls so I can buy.
Just buy a big ETF on Indo and let it rot for 30 yrs. Auto re-invest any dividends back into the ETF. Returns will be 10,000%. Just in time to fund your retirement.