JAKARTA, Jan 6 (Reuters) - Indonesia plans to issue a regulation to ensure that primary bond dealers produce only research that is “credible”, a senior finance ministry official said on Friday.
“The point is, the analysis has to be credible and correspond to factual data,” Suahasil Nazara, the finance ministry’s head of fiscal policy office, said in a text message.
The move comes after Indonesia cut business ties with JPMorgan Chase & Co following a November downgrade by the U.S. bank in its Indonesian stocks recommendation, to “underweight” from “overweight”.
The finance ministry dropped JPMorgan’s services as a primary dealer for domestic sovereign bonds and as an underwriter for bonds sold to the global markets. (Reporting by Hidayat Setiaji; Writing by Eveline Danubrata; Editing by Clarence Fernandez)