Sri Mulyani asked about JPMorgan

Finance Minister Sri Mulyani Indrawati had been asked about JPMorgan Chase Bank from Commission XI of the House of Representatives (DPR). Sri Mulyani had previously cut off cooperation contract with JPMorgan to everything partnership.

detik.com

This question arises from the Chairman of Commission XI Melchias Mark Mekeng in a meeting with Sri Mulyani at the Parliament Building, Jakarta, Wednesday (18/01/2017).

Sri Mulyani explained that the government's relationship with JPMorgan originated from the need in the management of debt. The government requires the primary dealers as intermediaries of securities issued.

"This cooperation, for primary dealers in order to facilities mutually advantageous right to be in the issuance bond government got offers the most in terms of price and yield. It is held throughout the government debt management so that the risk profile is smaller," she explained.

The position of the primary dealers is very important because it directly affects the investors from home and abroad who want ownership of Indonesian government debt. Mainly were through the sentiment.

"We're with JP Morgan and whole other partner is hoping can keep confident. It was only can be enforced if there is an element of credibility," said Sri Mulyani.

However, research results from JPMorgan which appeared in November 2016 ago turmoil on the stability of national financial system coincides with the global financial market turmoil after the election of Donald Trump as the US President.

"We consider the existence of a JPMorgan moment assessing the uncertain situation," she said.

So we do the study on JPMorgan research results issued by the Directorate General of Financing and Risk Management (DJPPR). We found that the research results do not meet the elements of objective.

"That's why we issued the decision," said Sri Mulyani.

Her answer responded directly by the Chairman of Commission XI Melchias Mark Mekeng. According to him, JPMorgan has been done already underway repeatedly.

"JPMorgan was not the first time but has been repeatedly, I remember it was in 2005. So I think this has gone too far," said Mekeng on the same occasion.

source