JAKARTA Jan 11 Indonesia's finance ministry
announced new rules that require primary bond dealers to
"safeguard" their partnership with the government and avoid
conflicts of interest.
Primary dealers "have the duty to safeguard the partnership
with the Indonesian government based on professionalism,
integrity, the avoidance of conflict of interest, and looking at
the interests of the Republic of Indonesia," according to
documents uploaded to the ministry's website on Wednesday.
The documents, dated Dec. 30, said the finance minister can
revoke the license of a primary dealer if it does not fulfill
the stated conditions.
The finance minister also has the authority to accept or
reject an application to be a primary dealer by taking into
consideration the track record of the bank or securities firm,
including its working experience with the ministry.
The Indonesian government cut its business ties with
JPMorgan Chase & Co following a November downgrade by
the U.S. bank in its Indonesian stocks recommendation to
"underweight" from "overweight".
(Reporting by Eveline Danubrata and Gayatri Suroyo; Additional
reporting by Fransiska Nangoy; Editing by Richard Borsuk)