JP Morgan commits long term in Indonesia

The Jakarta Post, Jakarta 

The management of JP Morgan Asia-Pacific issued a statement Monday reaffirming its commitment to the development of its franchise in Indonesia, dispelling persistent market rumors that it is pulling out of the country. 

Gaby Abdelnour, chairman and chief executive officer of JP Morgan Asia-Pacific said Indonesia, where the company had been in operation for 80 years, was central to the company's expansion in Southeast Asia. 

"All financial markets are being challenged by the fallout from the global crisis. But JP Morgan is confident of Indonesia's long-term potential for economic and business growth," he said in the statement, made available to The Jakarta Post. 

"JP Morgan is one of the largest foreign investment banks in Indonesia and our strategy calls for further investment and expansion of the client base," he said. 

JP Morgan has been involved in a number of privatizations during the past 15 years. 

Last week, JP Morgan, as a local currency government bond primary dealer, was a net buyer of the instrument. Total purchases between Oct. 6 and Oct. 9 alone amounted to Rp 1.1 trillion (US$115 million). 

However, JP Morgan did not make any statements regarding its operation in the local equity market, which has seen massive sell-offs since last week. 

JPMorgan Chase & Co is one of the creditors of PT Bakrie & Brothers, which together with its other Bakrie units became the center of trading speculations last week following rumors that the company defaulted on its $1.2 billion debt. (rid)