KPEI is wholly-owned by Indonesian Stock Exchange (IDX).
Brief History
PT Kliring Penjaminan Efek Indonesia (Indonesian Clearing & Guarantee Corp. (KPEI)) was established in 1996 based on the Law No. 8/1995 concerning Capital Market and provide an orderly, appropriate and efficient of clearing and guarantee of stock exchange settlement in Indonesian Capital Market. Moreover, The Capital Market Supervisory Agency (Bapepam) issued the Operational License to KPEI on 1 June 1996 which officially allowed KPEI to perform the clearing and guarantee of stock exchange settlement in the Indonesian Capital Market.
KPEI is known as the Central Counterparty (CCP) in the Indonesian Capital Market. As the CCP, KPEI will be the only seller for each buyer and the only buyer for each seller at every stock exchange transaction performed in Indonesia Stock Exchange. Furthermore, as the clearing and guarantee institution, KPEI was designed to mitigate every risk that might arise from the settlement of stock exchange transaction and to perform the guarantee process for the transaction. Based on that, KPEI is required to drive the investors trust to their capital market transactions. As a result, the capital market will give significant contribution to the Indonesian economic growth.
Types and number of Participants
- Clearing Member, which are the Stock Exchange Members,
-
Custodian Bank, which is the public bank which has the approval from Bapepam as custodian.
Regulatory Environment
All the operational process of clearing and guarantee of stock exchange settlement activities are performed under the Law No. 8/1995 concerning the Capital Market, the Government Regulation No. 45/1995 and the Rules of Supervisory Board of Capital Market and Financial Institution (Bapepam-LK).
Stock Exchanges
- Indonesia owns one stock exchange and entitled as Indonesia Stock Exchange.
Other CSDs or clearing
organization in your country
PT Kustodian Sentral Efek Indonesia (KSEI).
Services Provided
- Clearing; the clearing process is the process to determine the rights and obligation as the result of stock exchange transactions (money and/or stock).
-
Settlement; settlement of the stock exchange transaction is performed on T+3 for the regular market and T+0 for the cash market. For the negotiation market, the clearing will be performed by trade for trade mechanism and the settlement will be performed at T+3 as well.
Eligible Securities
Corporate Action services
Provided? Yes/No (If yes, what kinds of services provided?)
No.
Value
of Securities in Custody (US$):n/a
Amount
of Cash Settled per annum (US$):USD 19.01 billion (Oct, 2008)
Percentage of Securities
Immobilized/ Dematerialized:100%
Market Capitalization/
Trading volume per annum (US$):USD 108 billion (Oct, 2008)
Total Revenue/ Expense
and Net income Per annum (US$):USD 7.3 million (Oct, 2008)
Memorandum of Understanding/
Business Agreement (Date)
Cross-Broader Transaction
(Counterpart)
N/A
Withholding Tax Treatment
of Cross-Border Trading Transactions (Details)
N/A
DVP Implementation (Yes/No)
No.
Settlement Period
T+3
Contact Information
Contact Person: Muhammad Irwan
Tel: (62-21) 529 957 20
Email: irwan@kpei.co.id
Fax: (62-21) 515 51 20
Remarks
