TEMPO.CO, Jakarta - Ronald Andi Kasim, president director of securities ratings agency, Pemeringkat Efek Indonesia (Pefindo), said there are indications that companies pay agencies money to get high credit rates prior to issuing bonds.

Pefindo is one of Indonesia's three ratings agencies along with Fitch Ratings Indonesia and India Credit Rating Agency (ICRA) Indonesia.

According to Ronald, one indication of the bribing practice is the testimonies from several corporate representatives. These reps, he said, claimed that one ratings agency vouched to give their companies a good score. In addition, there are differences in the quantitative data over a company's ranking between one agency and another.

Ronald said that a rating agency should represent investors in assessing the performances of listed companies. Companies should be rated and graded based on the appropriate methodology, and the results must be submitted transparently without any "transactional element".

Ronald admitted receiving an offer from one particular company in order to give it a good rating. "[The company] threatened that if Pefindo could not give them a good assessment they will find another agency that is willing to do so," he said.

Ronald said that, not only is the practice creates an unhealthy competition, it is also detrimental to investors—who supposedly make their bond-purchase decisions based on ratings. "If the rating is forged, they are doomed," he said.

Pefindo's suspicion, Ronald said, had been reported to the Financial Services Authority (OJK). He hopes that the OJK will immediately follow up on the report.

Senior analyst from Fitch Ratings Indonesia, Baradita Katoppo, ensured that his agency does not sell ratings. When assessing a company, he said, Fitch adheres and refers to OJK's rules as well as regulations that apply in the United States and Europe.

"You can rest assure there is no such practice at Fitch. We are a very strict company," he said.

As of Wednesday, Tempo had not been able to contact anyone from ICRA Indonesia.

OJK's deputy commissioner for capital market supervisory, Sarjito, said the OJK will learn about the report Pefindo submitted. Any company found guilty of such practices will be subjected to administrative sanctions, starting from a written warning to the revocation of its licenses.

FAIZ NASHRILLAH