S&P's plan to aquire Pefindo shares negotiated

JAKARTA (JP): New York-based international rating agency Standard & Poor's plan to acquire shares in Pefindo, Indonesia's only rating agency, is still being negotiated.

A Pefindo executive said yesterday it would be too premature to comment on the American rating agency's planned entry into the Indonesian rating company.

"Whether S & P buys a 20 percent stake in Pefindo or S&P will join hands with Pefindo to set up a joint venture... we don't know yet. It's still being negotiated," said the executive, who preferred anonymity.

"I don't want to comment on that," he said.

Bisnis Indonesia reported yesterday that S&P would buy 20 percent of Pefindo in a deal that could lift up the later's performance in the global market.

Pefindo's rating director Urip Suprodjo said the transaction was expected to be finalized by the end of this year.

Interested

He said S&P had long been interested in buying Pefindo's stake and eager to acquire up to a 50 percent stake of Pefindo.

"S&P wants to buy up to a 50 percent stake in Pefindo," he told the paper.

Urip said Pefindo welcomed S&P's entry but allowing it to own up to 50 percent was too much.

"Pefindo's shareholder agreed to sell at the maximum a 20 percent stake to S&P," Urip said.

Pefindo's president Faried Harianto said S&P, which has provided technical assistance to Pefindo since August 1996, asked the Indonesian rating firm to establish a joint venture.

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

A joint venture with an international rating agency like S&P will benefit the local market, he said.

Pefindo's ratings cover property, banking and finance sectors.

PT Pefindo, established in December 1993 on the initiative of the Capital Market Supervisory Agency and the central bank, Bank Indonesia, started its commercial operations at the end of 1994.

Urip said Pefindo had signed joint alliances with other rating agencies from Southeast Asian countries including Malaysia, Thailand and the Philippines.

"Such alliances are aimed at boosting Pefindo's presence in the regional market," Farid said in June.

In 1996, Pefindo posted a net revenue of Rp 8.29 billion with rating activities accounting for 89 percent of the revenue, bank interest 8.3 percent and information services accounting for 2.7 percent. (aly)