JPMorgan Chase and Co. has reaffirmed its long-term commitment to Indonesia, ruling out speculation that the global financial market crisis would lead it to exit from the country, the Jakarta Post reported Tuesday.
The statement came amid speculation that the firms was pulling out of the local market as it got burned in its investment in the Indonesian conglomerate Bakrie Group amid massive sell-offs on world stock markets.
"Our business in Indonesia has been operating for over 80 years. JPMorgan is one of the largest foreign investment banks in Indonesia and our strategy calls for further investment and the expansion of the client base," JPMorgan Asia Pacific CEO Gaby Adbelnour was cited by the Jakarta Post as saying.
JPMorgan is one of the global companies that extended a total of1.2 billion U.S. dollars in loans to Bakrie Group. The loans are backed by shares in Bakrie units, including PT Bumi Resources, PT Energi Mega Persada and PT Bakrie Sumatera Plantations.
With last week's free fall in share prices, speculation over Bakrie's default on its loans was rife, dragging down shares in the company and its units, eventually sharply pushing down the market's main index.
Source:Xinhua
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