TEMPO.CO, Jakarta - The Financial Services Authority (OJK) said they found no indication of rank buying practices by bond rating agencies. OJK board member Nurhaida said they have conducted an investigation of alleged sales of bond ratings.

"We have invited a number of rating agencies and asked about the issue reported by the media. From the discussions, we find no such indication," Nurhaida said in Jakarta yesterday.

Based on the explanation of the agencies, they use different methods so that the results are also different. If the difference is very high, we need to first study what is causing the differences. "For example, assumptions or methods used. However there is a national and international minimum standards that are commonly used."

Nurhaida said the OJK will not regulate ratings methods as there are already rating organizations that govern agencies' assessments. In addition, there are countries that require ratings, whilst some countries do not. "Indonesia requires ranking as an effort to protect consumers."

Ronald Andi Kasim, president director of PT Pemeringkat Efek Indonesia (Pefindo), had said there are indications of illicit sales practices between rating agencies and companies. This practice is allegedly done so that certain companies get better ratings than others before issuing bonds.

"This competition is no longer healthy," Ronald said some time ago, alleging that some securities rating agencies work on behalf of investors in assessing the performance of a company.

HERMAWAN SETYANTO| FAIZ NASHRILLAH