www.ebtaccount.jpmorgan.com is considered to spread panic and act unethically by making a commodity country.
The government on Thursday (27/8) said it had given “sanction” JPMorgan Chase & Co. after the investment bank recommends smaller exposure to the Indonesian government bonds, but did not say what kind of sanctions.
Investor sentiment towards Indonesia increasingly negative due to the fragile economy, with domestic consumption is slowing, declining reserves of foreign exchange, and commodity prices hit the deck.
JPMorgan change the status of Indonesian government bonds to “underweight (lightweight)” from “overweight” in a report dated August 20. Some of the reasons cited is the devaluation of the Chinese currency and the Indonesian government plans to raise a loan.
The report provoked a strong reaction from Finance Minister Bambang Brodjonegoro and the Governor of Bank Indonesia Agus Martowardojo. Agus accused JPMorgan on Wednesday spread panic in the country.
“When there is a negative analysis about Indonesia, we as an authority must take action because after all, this is something that is also unethical: making the country a commodity,” said Bambang told reporters.
When asked repeatedly whether sanctions against JPMorgan, Bambang declined to give details, saying only that “it would disturb them and make them uncomfortable.”
He then joked that JPMorgan had to do 100 push-ups movement as punishment.
A spokesman for JPMorgan declined to comment.
Indonesia grappled with the weakest growth in the last six years and the decision-makers has increased its efforts in the last two weeks to reduce sales in the currency and stock exchanges.
Some analysts have missed the “micro data” and equating all developing countries without considering the fundamental differences, said Bambang.