Ruling on rating issued

JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam) yesterday issued a new ruling concerning the operation of a rating agency.

The ruling stipulates that a rating agency should operate as an independent entity, with the task of assessing the quality of stocks, bonds and other listed capital market instruments.

The rating agency should also be open to the public concerning the formula and standards it uses in appraising and analyzing the quality of each stock or bond.

The ruling was apparently issued to facilitate the operation of Pefindo, the first securities rating agency in the country.

The rating agency, established in December 1993, is headed by Erwin A. Koetin, a former senior Bapepam official.(hen)