Photo by JP Morgan
JAKARTA (TheInsiderStories) – Indonesia Minister of Finance Sri Mulyani said that the ministry may soon lift ban on JPMorgan Chase & Co and reinstates the investment bank as an underwriter. The ban was imposed last year after the US investment bank wrote negative comments about the Indonesian stock market.
“Any future business cooperation between the two sides will be based on trust and (mutual) respect”, she said in an interview on Oct. 27.
She said Indonesia is open to the idea of reinstating JPMorgan as an underwriter. “If it’s going to be a need for all of us to have a good relationship, we will restore the relationship,” Indrawati said in reply to a question.
The Head of Fiscal Policy Agency at the Finance Ministry Suahasil Nazara added that the strategic partnership between the Indonesian government and JPMorgan will be reviewed after 13th of November, a year after the ban was officially imposed.
“We [government] will basically respect all of our partners in work,” she told TheInsiderStories.
The government stopped using JPMorgan’s service as a primary dealer and underwriter for sovereign bonds last year, after the investment bank downgraded the country’s equity rating by two categories to “underweight”. The government maintained the ban on the bank as an underwriter of its rupiah and dollar bonds.
JPMorgan in the mean time continued to serve its private clients in Indonesia, where it provides investment and commercial banking services. The bank, which obtained an Indonesian banking license in 1968, posted a net income of Rp314 billion (US$23 million) in the country last year, according to its website.
JPMorgan has missed out on being part of the Indonesian government’s fund-raising program this year. The government raised Rp512.6 trillion through the sale of rupiah bonds as of Oct. 25 and Rp142 trillion  through global offerings of sovereign dollar, euro and yen bonds, Finance Ministry data show.
Writing by Elisa Valenta, Email: elisa.valenta@theinsiderstories.com