UPDATE 1-Indonesia says no need to suspend Bumi shares

(Adds regulator news conference)

JAKARTA, Nov 10 (Reuters) - Indonesia's regulator said on Monday there were no need to suspend trading in the shares of the country's top coal miner, PT Bumi Resources Tbk (BUMI.JK), despite calls from some brokerages after new sharp fall in the shares.

Bumi, which is controlled by the family of Indonesia's chief social welfare minister, Aburizal Bakrie, is the core asset in the Bakrie group.

"We have not seen any risk to the overall economy if we do not suspend trading in the shares," Fuad Rahmany, the chairman of the capital market regulator (Bapepam), told a news conference.

"On the contrary, we see that a trading halt (in Bumi) would threaten the national economy... we need to protect the mutual fund industry as the size is enormous and there are many retail investors involved," he added.

Concerns about the financial health of the politically connected Bakrie group have contributed to a sharp sell-off in Indonesia's stock market, prompting the authorities to close the exchange for three days last month.

Bumi shares have fallen by nearly 10 percent in each of the three trading days since the lifting of a month-long trading suspension.

Rahmany said five brokerages had "relatively high exposure to shares of the Bakrie group (of companies) through repurchase agreements." He declined to identify them.

PT Bakrie & Brothers Tbk (BNBR.JK), the group's holding company, said last month it hoped to raise $1.2 billion by selling off stakes in various assets, including Bumi Resources.

Bakrie & Brothers announced more than a week ago that it had reached an agreement to sell its entire 35 percent stake in Bumi to Northstar Pacific for $1.3 billion, to pay off its debt.

Philippine conglomerate San Miguel Corp (SMCB.PS) has said it plans to bid for a 51 percent stake in the company, rivaling Northstar's bid. (Reporting by Andreas Ismar; Writing by Harry Suhartono, Editing by Ed Davies)