CORRECTED-Indonesia halts Merrill Lynch's local stock trading

(Corrects to make clear that stock official Samsul Hidayatspoke, and not Uriep Budhi Prasetyo)

JAKARTA, Oct 5 (Reuters) - Indonesia's securities depositoryagency has frozen Merrill Lynch Indonesia's stock tradingaccount, following a court order after a legal battle with aninvestor, a stock exchange official said on Friday.

Samsul Hidayat , a director at the stock exchange, said theexchange had received a letter from the Jakarta high court tosuspend Merrill Lynch's account after a dispute between thebrokerage and an Indonesian investor.

"We are only following orders from the court," Hidayat said,without naming the nature of the dispute or the company.

Merrill Lynch, a unit of Bank of America Corp , wasnot immediately available for comment.

The stock exchange and the depository agency will wait for acourt decision to reopen the account, H idayat added.

Investment banks and brokerages have ramped up operations inIndonesia in recent years, aiming to take advantage of greaterinvestor interest and surging markets in southeast Asia's topeconomy, which won an investment-grade credit rating late lastyear.

(Reporting by Fathiya Dahrul; Editing by Neil Chatterjee, DavidHolmes and Sanjeev Miglani)


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