Rating agency is limited company acting as investment advisor that performs rating activities and gives ratings. Prior to performing its business, rating agency must obtain business licence from OJK.
Rating agency is obliged to carry out is rating activities independently, free from intervention of other party that uses its services, being objective and accountable in giving ratings. Rating agency can perform rating on rating objects as follow:
- Debt securities, sukuk, asset-backed securities, or other kinds of securities that can be rated;
- Party as entity (in company rating), including mutual fund and real estate investment trust in the form of collective investment contract.
To run its business, rating agency must be located and performs its operational activities in Indonesia. Aside from that, rating agency is obliged to have procedures and methodology that are accountable, systematic, have underwent a series of examination, and also implemented in a consistent and transparent manner. Furthermore, rating agency that performs rating based on certain party's demand is obliged to make rating contract with the party.