US-based investment bank JP Morgan Chase Bank had a 45-minute talk with President Joko “Jokowi” Widodo on Wednesday, the first day of their return as one of the country’s primary dealers of sovereign bonds.
“We discussed a lot of things with Mr. President, including cybersecurity, investment and the ease of bureaucracy. It was a productive 45-minute discussion,” JP Morgan Chase Bank Indonesia managing director Haryanto Tiara Budiman said at the Presidential Palace in Jakarta.
JP Morgan Chase CEO Jamie Dimon praised Jokowi for his work in developing the Indonesian economy. “I believe President Jokowi has done a great job in growing Indonesia for all of its people,” he said.
In January 2017, Finance Minister Sri Mulyani Indrawati removed JP Morgan’s license to deal Indonesian government securities following the US bank’s negative research report on Indonesia. It downgraded Indonesia’s rating by two notches.
On Monday, the government reappointed the bank as the dealer, effective on Wednesday.
Sri Mulyani said on Wednesday that as a primary dealer of Indonesia’s bonds, JP Morgan should promote Indonesia and maintain a good relationship with the country. The negative research report in November 2016 could potentially cause a market swing, she said.
“JP Morgan has reviewed all of its research, changing its protocol and mechanism. After a year of evaluation, we view the change as positive and we made JP Morgan bank a dealer again,” Sri Mulyani said.
The reinstatement followed an application made by the bank in February, after the one-year ban ended, Finance Ministry director general for budget financing and risk management Luky Alfirman said. “JPMorgan is now committed to follow all rules,” he said as quoted by Bloomberg on Monday.