Ruling on rating issued

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)