KSEI Continuously Provides Convenience to Indonesian Capital Market Investors

By : Abraham Sihombing And Aldo Bella Putra | Sunday, December 10 2017 - 15:00 IWST

Friderica Widyasari Dewi Direktur Utama PT Kustodian Sentral Efek Indonesia (KSEI) (Foto Dok Industry.co.id)
Friderica Widyasari Dewi Direktur Utama PT Kustodian Sentral Efek Indonesia (KSEI) (Foto Dok Industry.co.id)

INDUSTRY.co.id - Jakarta - When this article was written, the author recalled Friderica Widyasari Dewi, President Director of Kustodian Sentral Efek Indonesia (KSEI), who received the Marquee Award in early 2017. That is because KSEI is recognized as the best Central Custodian in Southeast Asia by Alpha Southeast Asia.

The prestigious Marquee Award was received by Friderica's mother at The 10th Best Deal and Solution Awards 2016 in Putrajaya, Malaysia, on January 25, 2017.

KSEI deserves the recognition and recognition because it is related to the various efforts undertaken throughout 2016. With the award, KSEI is expected to provide more and more best solution for investors to be more secure and comfortable to invest in Indonesia capital market.

Of course, Friderica's mother and her whole family share the same hope of advancing and improving the capital market services system in Indonesia.

Upon receiving the award, Friderica's mother humbly disclosed that KSEI's achievement is a joint collaboration with the Financial Regulatory Organization (OJK), the Self Regulatory Organization (SRO) and capital market actors, so that various programs of KSEI development in 2016 can be well realized.

According to Friderica's mother, KSEI received the award for its success in implementing an integrated platform, called S-INVEST, for various investment management transactions, one of which is mutual fund investment.

S-INVEST was launched in August 2016 with the aim of improving standardization, efficiency and real time monitoring of various investment management industry activities.

In addition, KSEI in 2016 has also enforced the accelerated opening of investment accounts from several days to less than 30 minutes. It is one of KSEI's efforts to realize Indonesia's increasingly comfortable capital market, which is expected to attract more investors to invest in Indonesia.

Meanwhile, the recognition of Siddiq Bazarwala, CEO & Publisher Alpha Southeast Asia, stated that KSEI deserves the title as the best Central Custodian in Southeast Asia because it has shown a strong commitment in improving the quality of capital market in Indonesia in the past year.

In addition, KSEI in 2016 has also cooperated with Bank Indonesia (BI) to implement Single Investor Identification (SID) for Securities and Government Securities (SBN) issued by Bank Indonesia, so that the investor data recorded in KSEI is more complete and consolidated.

The success of KSEI in 2016 is to establish cooperation with the Directorate General of Population and Civil Registration (DG), Ministry of Home Affairs, to utilize demographic data to accelerate the opening of securities accounts and other capital market services.

That is the success of KSEI in 2016. Mrs. Friderica hopes that KSEI recognizes as the best Central Depository in Southeast Asia in 2016, so that recognition is expected to continue to motivate all KSEI people to work harder to realize various programs that have been planned in 2017.

In 2017, a series of activities to continue to provide convenience for Indonesian capital market investors has also been done by KSEI. At the beginning of April 2017, KSEI began to apply data use of DG for public investment account acceleration.

In its realization, KSEI entered into a cooperation agreement between 98 players of capital market industry and DGapapil. Subsequently, KSEI submitted electronic ID card reader (e-ID card) to the capital market industry actor who has cooperated with the Directorate General of Dukcapil.

E-KTP reader device is a card reader application, which is a computer application used to read e-ID card. The submission of e-KTP reader device is expected that the capital market industry players can develop the application in order to facilitate and accelerate the process of opening securities account.

While the use of demographic data through the use of e-KTP card reader application aims to speed up the opening of investor accounts in capital markets that previously took several days, is now shortened to just less than 30 minutes.

Application of this application makes the Indonesian capital market investors no longer lose the moment to invest. The condition is expected to increase the number of Indonesian capital market investors. Previously, investors often lost the momentum to invest because the account opening process can not be completed in a short time.

In addition, the application also allows investors outside Java to open investment accounts in a shorter time. Although there is no branch office of securities companies outside Java, but the opening of securities accounts can be done easily and quickly.

Two months after the application, KSEI noted that the number of Indonesian capital market investors has penetrated one million people. It is proven that as of June 7, 2017, KSEI recorded 1,000,289 officially registered SIDs.

It is the consolidated number of SIDs, consisting of investors of shareholders, bonds, mutual funds, Government Securities (SBN) and various other securities recorded in KSEI.

SID which began to be implemented since 2012 is a single identity that must be owned by Indonesia capital market investors. With the application of S-INVEST, the number of registered investors in KSEI is increasingly consolidated. Especially, after KSEI was appointed as SID Generator for SBN investors in October 2016.

The culmination of KSEI's strategic activities this year is the development of e-Proxy and e-Voting platform which is done in cooperation with KSEI Turkey called Merkezi Kayit Kurulusu (MKK).

Both platforms are applications that facilitate investors to participate in the General Meeting of Shareholders (GMS) without the need to attend the event physically.

The application can solve the problems that arise because of the possibility of more than one organizing the GMS on the same day in one year. This may happen because the total issuers of Indonesia Stock Exchange (IDX) currently have reached more than 500 companies.

Not to mention, the condition is burdened by data stating that 35% of investors have more than one security in the Indonesian capital market. So, with the application of the application platform, then the investors can follow the GMS directly without the need to attend physically.

Application of the application platform will be adjusted to the legal corridor applicable in Indonesia. Such a platform needs to be applied in Indonesia because of Indonesia's geographical conditions in the form of archipelago with the domicile of investors scattered in various places.

For the first phase, KSEI and MKK will develop an e-Proxy platform, which is electronic means to provide power of attorney to third party if the investor concerned cannot attend the GMS.

Meanwhile, e-Voting application platform is the development of e-Proxy application platform in the long term in the next stage. The platform requires regulatory level changes for its implementation.

Nevertheless, these two application platforms cannot replace the GMS as is often done today. It is because Article 77 of Law Number 40/2007 regarding Limited Liability Company states, such application platform can only be an option for shareholders who use the voting rights in the GMS.

This is a remarkable achievement of KSEI in 2017. Nevertheless, it cannot be separated from the efforts of capital market regulators to provide ease and convenience of investing through the development of various infrastructures, the implementation of education and socialization of capital markets in various regions and the contribution of all market participants. (Abraham Sihombing)

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