Commercial papers not fully traded

JAKARTA (JP): Indonesia's only rating agency, PT Pemeringkat Efek Indonesian (Pefindo), said about 50 percent of the 66 commercial papers the firm rated last year was not traded because it failed to meet the central bank's minimum grade.

The agency's president, Faried Harjanto, said that in 1996 Pefindo received 159 rating orders from 130 companies involving commercial papers and bonds worth about Rp 13.4 trillion.

Orders for commercial paper issues made up 46.5 percent (Rp 6.1 trillion) of the rating orders, 27.7 percent for bonds (Rp 6.1 trillion) and 25.8 percent for corporate assessment.

But he said only 68 of ratings were published.

Faried said Indonesian companies were becoming aware of the importance of their business activities having ratings.

He said his firm's partner. Standard and Poors, which had given Pefindo technical assistance, was interested in setting up a joint venture.

"But we have to wait for approval from the central bank and Bapepam," he said.

A joint venture would benefit the local market, he said.

Pefindo's net revenue in 1996 was Rp 8.29 billion of which 89 percent or Rp 7.4 billion came from rating activities, 2.7 percent from information services and 8.3 percent from bank interest.

The company's ratings covers the property, banking and finance sectors. (09)