Indonesia Severed JPMorgan Contract; Finance Minister Sri Mulyani termination of contract relations cooperation partnership with JPMorgan Chase Bank as the bank’s perception. With the termination of the cooperation, according to the head of BKPM Thomas Lembong doesn’t then affect the intention of investors to invest in Indonesia.
Research by JPMorgan was a short-term prediction. While some other investment bank provides long-term predictions with good judgment, so it does not affect foreign investor entry into Indonesia.
“JP Morgan research that downgraded it in the short term, in the long run it if it was Bloomberg, whether it’s Fitch, an awful lot of it praising the most agencies praised the position and trends, is indeed the challenges now facing it is the exchange rate of dollar, so in the short term it is a challenge,” said Tom
Research carried out by JPMorgan is independent research. Thus, Tom assesses the research is something that should be appreciated.
“As a former bank investors, in one institution that there are independent units of one and other. They are selling to investors that independence. We must also appreciate that independence than the research departments in each of the investment bank,“said Tom.
Even so, he thinks that Indonesia should keep the fundamental economics of Indonesia. It was the one who can maintain investor confidence towards Indonesia.
“It seems to me what’s important is we continue to keep the economic fundamentals. If it is as a positive trade balance, balance sheet capital, deal went positive, stable economic growth, would by itself our ranking goes up. It seems to me, we are not to fall asleep and we must focus on fundamental,” says Tom.