Suahasil Nazara, head of fiscal policy office of Finance Ministry said, government will restricter the foreign securities house report in Indonesia to ensure their assessments of Indonesia are based on facts. Indonesia had 19 such dealers as of November 25. The ministry has terminate all ties with US’s JP Morgan Chase & Co related to the research has potentially disrupt the stability of domestic financial on Jan. 1, 2017. In November 2016, JP Morgan released a report double downgraded the country to underweight from overweight, after reading a trend that the benchmark US 10-year treasuries offered more attractive yields, which in turn increased risks of fixed-income investment into emerging market countries like Indonesia. This was the second time in just over a year that Indonesia’s finance ministry was infuriated by a JP Morgan assessment. In first research in August 20, former Finance Ministry Bambang Brodjonegoro has given a sanction to JP Morgan after spreading panic in the country on their report on government securities. JPMorgan recommended for holding a smaller exposure to the Indonesian government bonds. JPMorgan moved to “underweight” from “overweight” on Indonesian government bonds in a report dated Aug. 20. Some of the reasons it cited were China’s devaluation of its currency and Indonesia’s planned increase in government borrowings.
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