Indonesia ends all JPMorgan partnerships after downgrade

Jakarta

INDONESIA'S government said it terminated all business partnerships with JPMorgan Chase & Co after the US bank downgraded its assessment of equities in South-east Asia's largest economy following Donald Trump's election win.

The finance ministry will stop using JPMorgan as a primary dealer and as an underwriter of its sovereign bonds, Robert Pakpahan, the ministry's director-general for budget financing and risk management told reporters in Jakarta on Tuesday. He said a November research report issued by the bank was not "accurate or credible". JPMorgan downgraded Indonesia's equity market by two notches to underweight from overweight in a Nov 13 report as a "tactical response" to the Trump election win. The bank also downgraded Brazil, while noting that both countries may provide a "better buying opportunity" later.