As the oldest and the most trusted credit rating agency in Indonesia, PT Pemeringkat Efek Indonesia, mostly known as PEFINDO, was established on December 21, 1993 under the initiative of the Financial Services Authority of Indonesia (previously known as the Capital Market Supervisory Agency) and the Central Bank of Indonesia.
PEFINDO, which is the only locally-owned domestic credit rating agency, has been rating entities and their debt instruments listed in Indonesia Stock Exchange House. As of today, it has rated more than 700 companies and regional governments. Capital market instruments including the conventional senior- and sub-ordinated bond, sukuk, medium-term notes (MTN), KIK-EBA, and mutual fund have all been rated by PEFINDO. To develop municipal bond market in Indonesia, PEFINDO, with strong support from the World Bank and Asian Development Bank, has started to rate regional governments since 2011. A strategic alliance with Standard & Poor’s (S&P), the leading global credit rating agency, starting in 1996, has enabled PEFINDO to adopt rating methodology by international standards.
PEFINDO has carefully diversify its operations. Services like PEFINDO25, a stock index comprising of selected small- and medium-size companies, and SME Rating are some of the initiatives that have already been launched.
To maintain its independency, PEFINDO is owned by a total of 86 entities (as of June 2020) representing key players in Indonesia capital markets in which no shareholder owns more than 50 percent.