Economy Will Be Managed Professionally, Says Sri Mulyani

Indonesia penalizes JPMorgan for negative report in latest emerging markets skirmish.

 
Jakarta, 05 Rabiul Akhir 1438/04 Januari 2017 (MINA) – Despite lingering global challenges, the country’s economy will continue to be managed professionally, accountably and transparently, Indonesias finance minister Sri Mulyani Indrawati said here, Tuesday .

“It has not yet been perfect but we will continue improving it professionally, accountably, and transparently while continuing to develop mutually respectful relations,” Antara quoted Sri Mulyani as saying in connection with the government’s decision to cut its partnership with JPMorgan Chase Bank.

She said any partnership with financial institutions will be based on good and mutually beneficial relations, but building a positive climate is important under the current circumstances.

“We do not close ourselves, we will be open to all criticism and assessments, which is important for improvement. However, institutions with a big reputation also have a big responsibility to create positive psychological conditions instead of misleading,” the former World Bank director said.

In view of that she hoped that all government partners will be able to complete each other in managing and preserving national economic fundamentals through continuous and positive cooperation.

“We respect all products of research institutes in terms of their accuracy, credibility, methodology or assessment. We wish all stakeholders have the same message. Let us work positively,” she said.

Sri Mulyani assured that the government had listened to voices within the economic community as well as institutions that have high credibility and had made improvements from within, for example, with regard to tax reform.

“If we think the national budget is the problem we correct it. We will not hesitate to do it because we believe professional, accountable, credible, and beneficial relations are important,” she said.

The Indonesian government has decided to cut its partnership with JPMorgan Chase Bank, N.A. in connection with the results of the US banks research, which is believed to have the potential to disrupt the stability of the country’s financial system.

The director general of risks and financing management of the finance ministry, Robert Pakpahan, said the partnership with the bank was cut because it had doubted the quality of Indonesian companies assets.

“The results of its research are questionable because it seems they are not based on accurate and credible assessment. Therefore, we decided to just cut it as we considered it unprofessional,” he said.

With the decision, JPMorgan Chase Bank will no longer be a selling agent for government bonds, a participant in bidding of government securities (SBSN) bidding, joint lead underwriter for global bonds, and a perception bank for state receipts.

“There used to be 20 SUN (state bond) dealers. The number is now minus one and totally there are now 19. Total participants of SBSN (shariah bond) bid is 22, now there are 21 left. We have also revoked its position as a partner in joint lead underwriter. With regard to perception banks, we now have more than 50. So, it would be no problem,” he said (T/RS05/RS01)

Mi’raj Islamic News Agency (MINA)