Indonesia probes claims over Bumi unit Indonesia's market regulator is investigating the use of funds raised in an initial public offering of one of London-listed Bumi Plc's key assets. Bapepam, the financial watchdog, has requested data and information over several months from Bumi Resources Minerals, which in late 2010 raised about $230m through a flotation in Jakarta. BRM is a subsidiary of Bumi Resources, the Indonesian coal miner controlled by the influential Bakrie family in which the London group has a 29 per cent stake Allegations over the BRM funds also form part of the Bumi Plc board's probe into what it says are potential financial irregularities at its Indonesian businesses. Samin Tan, the chairman of Bumi Plc who is also the president of BRM, confirmed when asked by the Financial Times that Bapepam was investigating the use of funds raised in the IPO but declined to discuss the details. Bumi's board also is considering the issue, according to people familiar with the matter. The regulator declined to comment. According to one person familiar with the matter, the board was examining an allegation that $110m in IPO funds was used to back a bank loan to a special purpose vehicle, known as Blue Quartz. Another person, who is familiar with Bapepam's investigation, said the regulator's probe was currently narrower, relating to the allocation of about $13m in fees between the IPO and an accompanying convertible notes offering. Mr Tan told the FT that he was aware of various allegations of financial irregularities at Bumi Plc's Indonesian businesses a year before the London group launched its investigation last month. Mr Tan invested about $1bn buying half the Bakrie family's stake last October despite learning during due diligence of the some of the issues now being probed by Macfarlanes, the London law firm, for the Bumi Plc board. He would not elaborate on his due diligence report, saying that it was still being investigated. But when asked about the issues being examined, he said: "Generally speaking, they're what I knew about before." Mr Tan is at loggerheads with Nat Rothschild, the financier who floated the London cash shell that became Bumi Plc and who resigned from the company's board on Monday. Mr Rothschild is insisting that directors fully investigate potential financial wrongdoing before considering a $1.2bn asset purchase proposal from the Bakries.