JAKARTA Jan 4 Indonesia's finance ministry
sought on Wednesday to assure banks and research firms that they
will not be sanctioned for their assessment of the country as
long as it is "credible".
Indonesia cut its business ties with JPMorgan Chase & Co
because its research was "not credible and not
objective", Suahasil Nazara, head of the Ministry of Finance's
fiscal policy office, told reporters.
Some analysts have said that the decision has raised concern
about whether the government would penalise other research
providers for reports that are deemed to be negative.
Nazara dismissed such worries.
"There is no need to be afraid as long as it's credible," he
"The point is, don't worry, go ahead with an analysis of
Indonesia's economy that is as credible as possible, by using
the available data and facts."
In a note dated Nov. 13, JPMorgan analysts downgraded their
investment recommendation on Indonesia stocks to "underweight"
from "overweight", citing higher risk premiums for emerging
markets after Donald Trump won the U.S. presidential election.
Indonesia has dropped JPMorgan's services as a primary
dealer for domestic sovereign bonds and as an underwriter for
bonds sold to the global markets, Nazara said.
The U.S. bank is also no longer what Indonesia terms a
The government said in a 2006 decree that perception banks
are appointed by the finance minister to receive transfers of
state revenue not related to imports, including tax, onshore
excise and non-tax revenue.
JPMorgan is allowed to continue its business in the private
sector, Nazara said.
The government assurances are unlikely to dispel the
"This has made us more cautious although we'll still try our
best to safeguard our research independence," said a
Jakarta-based analyst at a foreign bank, who declined to be
(Reporting by Hidayat Setiaji and Eveline Danubrata; Editing by