Monday, 8 December 2014

KSEI PLAN RO MAKE BUSINESS EASY FOR INVESTORS



To support market penetration plan run by OJK by building infra-structure whereby to ensure convenience and comfort for investors PT KSEI applied 3 infrastructure development plans for the capital market, inter-connected and scheduled to be ready in the next 3 years.

President of KSEI Hari Suryadi stated KSEI workplan was related to the development of the Development of the Central Depository and Book Settlement System Next Generation [C BEST Next G]. Sometime ago KSEI had introduced development of the system, signified by signing of Collaboration Agreement with chosen vendor from the USA nasdaq OMX. Although the capacity of C-BEST in existence today could still handle transaction of shares at the stockmarket, the system was prepared to accommodate need for up to 3 million investors with capacity increasing by sixfold. After the inauguration, development of C-BEST Next G would enter the next stage in the form of adaptation of X-Stream technology of Nasdaq OMX according to the needed specification.

Not just a matter of capacity, C BEST Next G would also had additional features which would soon accommodate message based on SWIFT ISO 20022 internationally applicable. This would enable KSEI make Cross Border Settlement with other countries in the future, and was expected to step up role of KSEI as Central Securities Depository Indonesia at regional level. As planned, the C-BEST Next G was targeted to be accomplished in December 2016.

Signing of collaboration in infra structure development for other stockmarkets with third parties had been exercised last September.

In this case KSEI would collaborate with Korea Securities Depository [KSD] in developing integrated Investment Management in Indonesia. The Exiting need for centralized system for simplification of business flow at the Reksadana insurance market was the main reason why the system was developed.

Today players of Reksadana industry like sales agents, investment managers, and Kostodian banks including underwriters were still inter-connected the varied way based on the system developed by the respective players. “A centralized system needed to be developed in Indonesia because many process to day were exercised manually which was inefficient in terms of cost. Development of an integrated system could be the way out because this infra structure could facilitate growth of supply-demand at the Reksadana market” Hari said,

Heri was also expecting that the application of integrated Investment Management System would increase Net Asset Value [NAB] of Reksadana increase local portion of ownership at Indonesia’s stockmarket and increase liquidity shares transaction in Reksadana portofolio.

The third focus encompassed development of Akses [Security Ownership Access] Financial Hub to allow convenience of access and investment activities for investors to remote areas. The development was based on application of Single Investors Identification [SID] which had become obligation to investors since 2012. In the development had been executed among others application of Static Data Investors since 2013 and connected SID population database of Indonesia through collaboration between KSEI and the Dir. Gen. of Population, Ministry of Internal Affairs.

The next stage would be numbering of SID number to Collective Investors like Reksadana and collective instrument collection so a picture of investors at the stockmarket could shape up. Expansion of access and networking could be pursued through collaboration with banks. For that matter KSEI planned to collaboration for increasing the number of payer bank and RDN Administrator Bank and soon to be applied also collaboration for co-branding of Akses facilities with the bank’s ATM network.

The three plans would be executed as a form of KSEI support to OJK program for market penetration, which could be attained by way of increasing the supply side, i.e. emitents and product and the demand side by increasing the number of investors, developing infra structure and the supporting regulations.

“The three infra structure development program were an inter related whole and could not be independent. It must not be delayed because soon the market would be more diversed and we would be ready for it” Heri said while hoping that by 2018 all developments would be executed to bring convenience to investors.

While focusing on development on 3 masterplans, effective company’s actions could be KSEI’s attention. On the internal side there would be human resources development to ensure employees quality of performance. To make sure that all data at KSEI would be protected, KSEI would make evaluation ISO 27001 : 2005 on Information confidentiality [SMKI] which was targeted to be upgraded to become version 27001 : 2013 as an effort to improve quality service. (SS)

Business News - October 31, 2014

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