KPEI – (Kliring dan Penjaminan Efek Indonesia) A limited liability company, which has obtained a business license from BAPEPAM as a clearing and guarantee institution to provide services in clearing and stock exchange transactions settlement guarantee. KPEI is owned by JSX (90%) and SSX (10%).
KSEI – The Central Depository (KSEI – PT Kustodian Sentral Efek Indonesia) was formed in December 1997 and obtained a preliminary operating licence at the same time. A permanent license was granted in November 1998. It is the only central depository for equity and corporate bonds in the Indonesian market and was set up as a private limited liability company. The Capital Market Supervisory Agency (BAPEPAM-LK) is the regulatory authority for the depository.
The first batch of scripless trading started in July 2000. All stocks traded in the regular market at the exchanges are now in scripless form. In addition to safekeeping, KSEI also handles settlement and corporate actions.
On cash settlement, KSEI has appointed cash clearing banks to effect the payment side of the netting process. These are Bank Mandiri, Lippo Bank, Bank Niaga and Bank Central Asia.
At present, acceptance of new membership into the Central Depository (KSEI) is available to custodian banks and brokers. Prospective new members are subject to a review and approval. KSEIs current shareholders are the custodian banks (36%), the brokers (33.5%), PT KPEI (Indonesia’s clearing and guarantee corporation) (7.5%), PT. KSEI (10%), the registrars (4%), the Jakarta Stock Exchange (6%) and the Surabaya Stock Exchange (3%).
Bank Indonesia – The central depository for scripless Sertifikat Bank Indonesia and government debt securities (which include Government Recapitalisation bonds and Treasury Bonds), is Bank Indonesia.
There is no specific order to process cash payments in the Indonesian market except that high value payments of IDR 100 million and above are processed through RTGS (Real Time Gross Settlement). Smaller values are normally processed through Inter Bank Giro (IBG). The RTGS system is an electronic real time payment system introduced in November, 2000. RTGS is available from 08:00 to 16:30.
Under BI Regulation No.3/3/PBI/2001, IDR transfer to non-resident accounts with local banks are only allowed against certain approved economic activities and supported by the appropriate documentation.
Scripless settlement payments – scripless settlement involves the movement of funds between the cash accounts of custodians/brokers held at the applicable payment banks. KSEI will credit/debit the appropriate participant’s cash account held at KSEI to facilitate trade settlement. The funds from scripless delivery transactions will be remitted back to clients cash account on SD.
Settlement under the net settlement system – a net settlement system exists for scripless transactions, particularly between clearing participants (i.e. brokers v.s. KPEI/Indonesian Clearing and Guarantee Corporation). Custodians are not directly involved in these systems, so transactions between custodians and brokers are settled on a trade-for-trade basis
Overdraft: Not applicable