Press Release The Development of Capital Market Infrastructure: Investors Are Now Able to Withdraw Funds Through ATM RDN

Transcription

1 Press Release The Development of Capital Market Infrastructure: Investors Are Now Able to Withdraw Funds Through ATM RDN Jakarta, March 30 th, The expansion of AKSes (Securities Ownership Reference) Facility Co-Branding cooperation, in the form of fund withdrawal instruction facility through ATM was launched today by Indonesian Central Securities Depository (KSEI), PT Bank Permata Tbk (PermataBank) and PT Trimegah Securities Tbk (Trimegah Securities). Held at the Main Hall of the Indonesia Stock Exchange Gallery, Jakarta, the launching was conducted in the presence of Chief Executive Officer of the Capital Market Supervisory, Financial Services Authority (FSA), Nurhaida, as well as representatives from Indonesia capital market participants. For the last decade, the Indonesia capital market has been growing rapidly. This can be seen from the value of market capitalization in the stock market, which rose by almost 700% from Rp trillion at the end of 2004 to more than Rp 5 thousand trillion at the end of September The increase in the value of market capitalization is in line with the increasing number of issuers from 331 at the end of 2004 to more than 500 Issuers at the end of Similarly, the average value of daily transactions has reached Rp 8 trillion, whereas 10 years ago that number only reached in the range of USD 1-2 trillion. Certainly, this growth can not be separated from the role of capital market regulators who have continuously develop the establishment of a capital market that are effective, efficient and fair as mandated by the Capital Markets Law Year Among those development effort was the socialization and education activities to invite public participation to become an investor and for companies to utilize capital markets as a funding source. The capital market infrastructure development is also equally important as a key supporter of the market growth The potential for market deepening in Indonesia is still very large. The opportunity to utilize capital market as a source of funding for company is still quite large because the current number of 500 issuers is still relatively small. Likewise, a similar condition also applies to retail investors who utilize capital market as an investment alternative. Based on the latest data, the number of domestic investors with an investment portfolio Securities listed on Indonesia Stock Exchange was only around 370 thousand. Compared to the total Indonesia s population of approximately 250 million, 370 thousand investors is certainly still very small with much room for improvements. Likewise, demographically as much as 92% or 345,678 investors are still concentrated in Java and Sumatera. With sufficient socialization and education program which cover the whole all regions, the expectation of increasing the number of domestic investors will have to be supported with a better capital market infrastructure. One of KSEI s strategy for infrastructure development was to build synergy with the banking industry. Margeret M. Tang, President Director of KSEI, said that they are currently developing the AKSes Facility so that it is able to connect with currently established and publicly accepted banking facilities. "The banking network has been well established with a wide coverage even to remote areas. In the future, if we can integrate AKSes facility with the banking infrastructure, AKSes facility can be a financial hub for capital market participants and retail investors, she said. 1/5

2 Cooperation between KSEI and the banking industry has been explored by KSEI since 2013 with six RDN Administrator Banks. Until now, four banks has been cooperating with KSEI. With this partnership, the AKSes Facility of KSEI can be accessed by investors through PermataATM s network since July 2014 and through Bank Mandiri s ATM network since December Soon, KSEI s AKSes Facility can also be accessed by investors through both Bank CIMB Niaga and Bank BCA s internet banking network. Starting in 2015, AKSes Facility will have an added function of not only to obtain information, but also to deliver investors instructions in the capital market. As an initial step, the available instructions in KSEI s AKSes Facility through the banking industry will include RDN fund withdrawal instruction. As a pilot project, this feature is being developed by KSEI with Bank Permata and Trimegah Securities. Furthermore, Margeret said that the development of fund withdrawals instruction feature via the bank s e-channel is the first step for future feature development. "If this can be achieved, technically the various needs of instruction delivery or communication by investors as a client of market participant can be done through AKSes Financial Hub. Through AKSes Facility, the public s opportunity to purchase capital market primary products such as Initial Public Offering of shares, Government Retail Bonds (Obligasi Ritel Indonesia or ORI) to Mutual Funds, will be more open and convenient, said Margeret. The launching event of fund withdrawals facilities through AKSes Co-Branding via PermataATM for Trimegah Securities clients was marked with a live demo of the facility from three locations, which are IDX Main Hall, Jakarta, Trimegah Securities office at Artha Graha Building, Jakarta and an ATM at PermataBank s Makassar Branch Office. With an easy and fast process, an investor from Makassar can deliver instructions on its investment to Trimegah Securities. This illustrates that synergy with the banking industry instantly provides the capital market with the infrastructure to reach investors in remote areas. On one hand, investors can easily access the capital market, and on the other hand capital market participants can also utilize infrastructure to increase its operational efficiency. Roy A. Arfandy, President Director of Permata Bank said, "We are committed to continue our support to the Indonesia capital market. One of them is to continue being a pioneer in creating products and services that support the Regulator s policy, as well as the needs of capital market participants. Convenience and security in transactions for customers is a primary requirements we constantly promote. Based on these requirements, PermataBank, together with KSEI and Trimegah Securities, developed an RDN fund withdrawal instruction facility through PermataATM to investors. Through our network and e-channels, we hope that the investors can be more flexible and safe in making transaction." The President Director of PT Trimegah Securities, Tbk, Stephanus Turangan, said that "The development of this facility is in line with our efforts to further increase the number of our retail clients. A wider capital market connectivity will expand public s access to the capital market, which in turn will expand the retail investor base in the country, which will further develop the capital market itself, and ultimately help increase the welfare of Indonesians through investment. " The Chief Executive Officer of the Capital Market Supervisory, FSA, Nurhaida, welcomes the availability of fund withdrawal instruction facility. Underscoring the potential for an increase in the number of local investors in the Indonesia capital market, Nurhaida emphasized the importance of infrastructure development to support the FSA's vision of market deepening. An increase on the supply side, namely the number of Issuers and the diversity of investment products, on the demand side by increasing the number of investors, as well as supports from capital market regulations should also be equipped with an adequate infrastructure support. 2/5

3 The Eastern Indonesia Region has no less potential than its western counterpart in terms of capital market development. It would be too time consuming for the Indonesia capital market participants to develop the infrastructure with the ability to reach the Eastern region extensively by themselves, since even now the potential of the Western region has not been fully explored due to the limitations of existing infrastructure. This cooperation with banks for synergy and infrastructure support is expected to be the breakthrough for the fulfillment of infrastructure requirement to stimulate the development of the Indonesia capital market. Nurhaida expressed, "There are three main bases for running the market deepening program, namely supply, demand, and capital market infrastructure. This program is expected to provide convenience so that investors will be interested in capital market investment, so that it will increase the number of Indonesian investors. The ultimate goal of this market deepening is to balance two types of capital market investors, the foreign investors and domestic investors. As we all know, currently foreign investors are still dominating the Indonesia capital market. This lacking role of domestic investors needs to be improved by continuously providing convenience for investors in investing in the capital market. " The launching of fund withdrawals instruction facility through AKSes Co-Branding via PermataATM for Trimegah clients has opened a new chapter of the Indonesia capital market infrastructure development. The ease and convenience will be felt by the investors, which is expected to be a supporter of the FSA s market deepening program to increase the number of domestic investors. --- *** --- For further information please contact: Indonesian Central Securities Depository Zylvia Thirda Corporate Communications Unit Phone. (021) Fax. (021) kp@ksei.co.id PT Bank Permata Tbk Rubby Harijono Head, Transaction Banking Phone. (021) ext rharijono@permatabank.co.id PT Trimegah Securities Tbk Agus D Priyambada Corporate Secretary Phone. (021) Fax. (021) agusdp@trimegah.com 3/5

4 Indonesian Central Securities Depository Indonesian Central Securities Depository (KSEI) was established in Jakarta on December 23 rd, 1997, and obtain its operating license as the Depository and Settlement Institution (Lembaga Penyimpanan dan Penyelesaian - LPP) on November 11 th, In the Indonesia capital market institution, KSEI is a Self Regulatory Organization (SRO), together with Indonesia Stock Exchange (IDX) and Indonesian Clearing and Guarantee Corporation (KPEI). Under the provisions of Capital Market Law No. 8 Year 1995, KSEI serves its role as the LPP in Indonesian capital market by providing Central Depository Services and a well managed, fair and efficient settlement of securities transactions. Since February 2012, KSEI, together with other SROs, have completed the implementation of Single Investor Identification (SID), the Client s Fund Account (Rekening Dana Nasabah - RDN) and AKSes (Securities Ownership Reference) Facility. AKSes Facility embodies the information transparency principle in Indonesia capital market since its launching in Through AKSes Facility, investors can directly monitor their investment assets in KSEI. As an alternative to login to the system, KSEI has developed AKSes Mobile in Based on data as of the end of February 2015, the total Sub Securities Accounts recorded in KSEI was 476,933 accounts out of a total of 372,758 investors. Out of that number, 97% or 362,805 investors are domestic investors, with 358,222 (98%) of whom are individual investors. Nationwide, the total investors who have logged into the AKSes Facility had reached 47,022 investors or approximately 13%. PT Bank Permata Tbk PermataBank has grown into a major private bank that offers innovative and comprehensive products and services, particularly in terms of delivery channels including the Internet Banking and Mobile Banking. PermataBank s vision is to become pioneers in providing innovative financial solutions. Serving approximately 2 million customers in 60 cities in Indonesia, as of January 2015 the Bank operates 330 branches (16 Sharia Branches & 314 Conventional Branches, 1,005 ATMs with access to over 50,000 ATMs (VisaPlus, Visa Electron, MasterCard, Alto, ATM Bersama and ATM Prima) and millions of ATMs worldwide connected with Visa, Mastercard, Cirrus network. Recent recognitions of PermataBank s achievements are awards from Asiamoney for Cash Management and Foreign Exchange Products and Services for three consecutive years during ; 9 consecutive years of awards for Contact Service Excellence, Bank with the Best ATM in Banking Service Excellence from 2012 to 2014 and third place in Best Overall Performance Conventional Bank and four consecutive top rank for PermataBank Sharia in service excellence, the Diamond Award in 2014 for Priority Banking in Service Quality Award. PermataBank s website can be accessed at Bank. PT Trimegah SecuritiesTbk PT Trimegah Securities Tbk (TRIM) is a Listed Company in Indonesia Stock Exchange and an Exchange Member in Indonesia Stock Exchange with several business divisions. The Equity Capital Markets division provides equity brokerage services and margin lending facilities for both retail and institutional clients. Debt Capital Markets Division serves Government Bonds brokerage service, including the Retail Government Bonds, Sharia Retail Government Bonds and Retail Savings Bonds, as well as corporate bonds. The Investment Banking Division provides equity and bonds underwriting, arranger and financial advisory services. 4/5

5 In January 2011, PT Trimegah Asset Management as a subsidiary of PT Trimegah Securities Tbk has obtained its business license as an Investment Management company. PT Trimegah Asset Management provides a wide range of investment products for all asset classes consisting of equity, balanced, fixed income and money market funds, as well as discretionary funds. To cater its retail clients, PT Trimegah Securities Tbk currently operates 17 branch offices in 13 cities in Indonesia. PT Trimegah Securities Tbk and PT Trimegah Asset Management have obtained its business license, and are registered and supervised by the Financial Services Authority. PT Trimegah Securities Tbk and PT Trimegah Asset Management website can be accessed at and ---***--- 5/5