JAKARTA, Jan 11 (Reuters) - 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)