Credibility can only be built if we can develop a credible program and at the same time be consistently and strictly adhere to it. Bank Indonesia has been working closely with the Government in developing our own economic program to replace the program currently stated in the IMF Letter of Intent.
Moreover, conflicts of interest need to be considered as rating agencies are paid both for advising the issuer on the best way to structure their products and for rating the same products. To tackle these weaknesses, the rating industry has already indicated the readiness to develop some guidelines for “best practices”.