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Jakarta tightens rules for primary bond dealers after spat with JPMorgan

Finance Ministry upset with downgrade, demands more cooperation

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Indonesia Finance Minister Sri Mulyani Indrawati says JPMorgan's recent report on the country was "misleading."   © Reuters

JAKARTA -- Indonesia's Finance Ministry has issued tougher rules for primary bond dealers, requiring them to "maintain partnership with the government" after it terminated contracts with U.S. investment bank JPMorgan Chase over an equity downgrade.

According to documents published on the ministry's website on Wednesday, primary dealers, which buy government bonds at auction and sell them to investors, are "required to maintain partnership with the government of Indonesia based on the principles of professionalism, integrity, avoiding conflicts of interest, and paying attention to the interest of Indonesia." The regulation was signed on Dec. 30.

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