JPMorgan, the biggest U.S. bank by assets, retained its spot at the top of the global investment bank rankings despite a drop of 11.7 percent in fees from investment banking.
JAKARTA: Indonesia terminated all business partnerships with JPMorgan Chase & Co. after the U.S. bank downgraded its assessment of Southeast Asia’s largest economy following Donald Trump’s surprise U.S. election win, according to a report on the Okezone news portal.
The finance ministry ended the partnerships from Jan. 1, saying the bank’s November research report downgrading Indonesia to underweight was potentially destabilizing to the nation’s financial system, Okezone reported, citing a letter from Marwanto Harjowiryono, the director general of treasury at the ministry.
JPMorgan double-downgraded Indonesia to underweight from overweight in a Nov. 13 report as a “tactical response” to the Trump election win. The bank also downgraded Brazil to neutral from overweight, while noting that both countries may provide a “better buying opportunity” later.
JPMorgan’s business in Indonesia continues to operate as normal, the bank said in an e-mailed statement on Tuesday. “The impact on our clients is minimal and we continue to work with the Ministry of Finance to resolve the matter,” it said.
Suahasil Nazara, the head of fiscal agency at Indonesia’s finance ministry, didn’t immediately respond to calls to his mobile phone on Tuesday.
Foreign investors sold a net $2.8 billion of Indonesian stocks and bonds last quarter as investors dumped emerging-market assets following Trump’s victory.
That drove the rupiah lower, forcing policy makers to intervene to stabilize the currency. - Bloomberg
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