Bumitama Agri

Bumitama Agri: said a regional govt in Indonesia has revoked a location permit for 4,810 ha of land belonging to a subsidiary, of which 3,420 ha are planted area as at 1Q12. The affected land represents 2.9% of the co's total cultivated area and 1.9% of its uncultivated land. Bumitama said it was made aware of the revocation in June, and it had not received any prior warning letters. The co believes the revocation is without merit and plans to take legal action. The news is likely to put a dampener on Bumitama stock, which closed at an inception high of $1.11. Other Indonesian plantation stocks, IndoAgri, Golden Agri and First Resources may also be affected, due to the overhang arising from regulatory uncertainty.