Bailing Out Profit From Investor Area

Transcription

1 From The Editor Implementation of Investor Area facility has come into the second month. Therefore, we have collected various inputs from market players as well as the regulator. The point is that all parties give their supports and have the same objective which is to create a more transparent, secure, and reliable Indonesia capital market. In this, we also show you comments of the Bank that have been appointed as KSEI Payment Bank for the period of What preparations they have made? And how they respond to Indonesia capital market development where they become part of it? As part of KSEI efforts to improve co-operation and information exchange among Central Securities Depository, KSEI has sent its delegation to attend an international meeting, The 11th ACG Cross Training Seminar in Bangladesh. The event, review of which can be read in this, brought up a theme of Serve Our Investor. Coming into the fasting month of Ramadhan 1430 H, all team, Directors, Management as well as KSEI staffs would like to apologize for any unintentional slip up we made, and wish a peaceful fasting to all of you who perform it. Enjoy the Reading! Editor Bailing Out Profit From Investor Area Investor Area facility has been officially applied to cope with investors security and market transparency. What are the reaction and response of market player toward this facility launching? A Asset ownership of investors get better secured after Investor Area facility was implemented on last June 18, It is because, through this facility, investors can check their Securities ownership position anytime so suspicious things can be detected earlier to prevent subsequent negative impact. President Director of PT Kustodian Sentral Efek Indonesia (KSEI), Ananta Wiyogo, mentioned that in order to have access of data available in KSEI website, investors have to apply for it through Securities Company or Custodian Bank that manage their investment portfolios. Investor Area facility not only provides easiness to check account balance, but it also CONTENT 1 Bailing Out Profit From Investor Area 4 Payment Banks Are Ready To Move 6 The 11th ACG Cross Training Seminar 8 activities & StatistiC Serve Our Investor 04 Edition Year 2009

2 Nurhaida Hoesen Wan Wei Yiong enables investors to check historical data of Securities movement recorded in KSEI data saving system called The Central Depository and Book Entry Settlement System (C-BEST) up to the last 30 days. The whole data of investors available in Investor Area can be consolidated as well. Certainly, active participation from Account Holders (Securities Companies) and Custodian Bank is absolutely required so With just one ID, investors can access into all accounts they owns at once investors get a chance to obtain Investor ID and Pin Code. With such Investor ID, investors can check all account positions spread out in several Securities Companies through KSEI website at ksei.co.id. Therefore, there is no need for investors to concentrate all Securities accounts they own to only one Securities Company. With just one ID, investors can access into all accounts they own at once, explained Ananta. The application of Investor Area facility does not give benefit only to investors. Securities Company or Custodian Bank get things even simplified for they have valid data source to deliver accurate and transparent information required by investors. Additionally, the commitment to support transparency and fairness in capital market industry management has been fulfilled as well. Through it offers many benefits, Ananta admitted that investor response is not optimal yet. As per August 25, 2009, total investors recorded have just reached 4,185 people. These figures are still too far from Sub Securities Account data of 355,358 accounts. This minor participation is due to improper knowledge of investors upon benefit and existence of Investor Area facility, said Ananta. Responding the implementation of Investor Area facility, Emmy Andriani, PT Sinarmas Securities (Sinarmas) representative said that in line with the capital market development, information disclosure will become the main requirement in investment. Concerning Sinarmas investors responses, according to Emmy, they re quite varied. Minority of investors admitted that they have not known it yet, but generally, they really agreed with the implementation of such system. In fact, several investors directly contacted us and asked about how to get it right after hearing the launching of Investor Area facility through media publication, she added. Director of PT Indo Premier Securities (Indo Premier), Fredy Sumendap, said that as broker or KSEI Account Holder, his company is obligated to handle the registration of Investor Area facility for all investors of Sub Securities Account holder in Indo Premier. Since the implementation of Investor Area facility, Indo Premier has delivered such electronic message to all users of Indo Premier On-line Trading or familiarly known as IPOT. Fredy added that before Investor Area facility is applied, Indo Premier has set up a special system for investors to monitor their assets position. The existence of Investor Area facility gets investors feel even secure and confident as they can compare Securities data or Securities mutation provided by broker with those kept in KSEI. Several Penerbit: PT Kustodian Sentral Efek Indonesia (KSEI) Penasihat: Direksi KSEI Dewan Redaksi: Zylvia Thirda, Dharma Setyadi, Susiyanti, Novian Harry Wibowo, Regina Natalia, Annisa Indri Hapsari Penanggung Jawab: Bagian Komunikasi Perusahaan KSEI Alamat Redaksi: Gedung Bursa Efek Indonesia, Tower I Lt. 5, Jl. Jend. Sudirman Kav 52-53, Jakarta 12190, Telp , Fax Sirkulasi: Bagian Komunikasi Perusahaan KSEI

3 that disparity or inaccuracy is found between investors record and information in Investor Area, it is expected that investors can actively perform further clarification with Securities Company or Custodian Bank, answers of which must be delivered clearly and reasonably to investors. In line with the capital market and technology developments, KSEI is also expected to keep reviewing the system to support the facility improvement, especially the implementation of Single Investor ID. l ND Murdani they own, either the Securities or the fund movement, explained Hoesen. ND Murdani, chairman of Indonesia Securities Investor Society, said that his institution extended a warm welcome to the application of Investor Area facility. Not only because it supports information transparency, but it also minimize misapplication risk of investors assets. However, according to him, further socialization concerning the process or utilization of such single identity is still required. Several investors feel reluctant to deal with tax. But if it is delivered transparently, I think everybody can accept it, said Murdani. President Director of KPEI, Hoesen, said that the tax issue should never be barrier to investor to use Investor Area facility. One day, tax transparency is a must. Tax evasion attitude will exactly shut down investor chance to get profit opportunity when Single ID is applied for various transactions in the capital market. Bapepam-LK SUGGESTION At the same occasion, Nurhaida also mentioned things that Emmy need to be taken Andriani care of related to the facility. In the case The application of Investor ID in Investor Area facility was initial development step to single identity (Single ID) Creation for Investors. Fredy Sumendap misapplication incidents of Securities and fund owned by investors have made investors put security of Securities depository in broker in doubt, Fredy admitted. Transparency Chief Bureau of Securities Transaction and Institution - Bapepam - LK, Nurhaida, mentioned that Investor Area implementation was a very significant tool to improve the investor trust toward our capital market. Investor Area facility, according to her, needs to be extended to ensure the investor fund security. The same comment was also delivered by Director of PT Bursa Efek Indonesia (BEI), Wan Wei Yiong, saying that Investor Area facility was a realization of transparency commitment in Indonesia capital market environment. To BEI, trust and confidence of investors and prospective investors that transaction in capital market can be performed securely is an absolute factor for the achievement of Indonesia capital market development, he added. In accordance with such transparency commitment, Nurhaida affirmed that on June 8, 2009, Bapepam-LK has issued written notice (through Bapepam-LK letter ref.#: S-4882/BL/2009) to all KSEI Account Holders to respond to all requests of investors for Investor Area facility. With such regulation, KSEI as Self Regulatory Organisation can give saction to any account holders that cannot comply with such regulation, explained Nurhaida. For market development, according to President Director of PT Kliring Penjaminan Efek Indonesia (KPEI), Hoesen, the application of Investor ID in Investor Area facility was initial development step to single identity (Single ID) creation for investors in capital market activities, starting from the transaction up to transaction settlement. If Single ID has been applied in all relevant parties, KPEI shall also develop a clearing system referred to such ID modeling, Hoesen affirmed. Currently, according to Nurhaida, Bapepam and the SROs have been conducting finalization of such Single ID concept. It is expected to be applied in all activities in the capital market, starting from order up to book entry settlement performance in Securities account. In years ahead, said Hoesen, such ID would be very much useful for the benefit of broader transaction, e.g. corporate action activities like distribution of dividend, Initial Public Offering and Rights Issue. With such Investor ID, investors can also monitor movement flow of all assets

4 Payment Banks Are Ready To Move KSEI has appointed four Payment Bank as fund flow site of Securities transaction settlement in Indonesia capital market. They are BCA, Bank CIMB Niaga, Bank Mandiri and Bank Permata. A s employment contract of KSEI and Payment Bank period has expired, KSEI then made a renewed co-operation with Payment Bank period. Through the signing of co-operation agreement on July 13, 2009, KSEI has officially appointed 4 (four) bank that shall act as Payment Bank, namely PT Bank Central Asia Tbk (BCA), PT Bank CIMB Niaga Tbk (CIMB Niaga), PT Bank Mandiri (Persero) Tbk (Bank Mandiri) and PT Bank Permata Tbk (Bank Permata). This co-operation between KSEI and Payment Bank is made for KSEI as nonbanking institution cannot perform fund book-entry function, especially fund payment to service users. It is also related to requirement of fund placement in special account in bank, pursuant to Bapepam Regulation number III.C.6 regarding Procedures of Operation and Depository and Settlement Institution Internal Control. The Payment Bank selection was conducted through tender process starting from April 2009 by KSEI Team. Formulation of Request for Proposal for bank candidates was arranged based on performance evaluation of Payment Bank previous period as well as future plan. Proposals of bank candidate were later evaluated by KSEI Team, including visits to the four bank to ensure the operational system of all Payment Bank candidates. Final evaluation was carried out by using 4 (four) criterias, namely company profile, Information Technology, additional functionality & service price and credit facility. According to Erwina Wigneswara, Vice President Funding Relationship Manager I Erwina Wigneswara Rusdianti Salim Corporate Banking Group CIMB Niaga, PT Bank CIMB Niaga Tbk which is a mergered bank result of Bank Lippo and Bank Niaga is once again being entrusted by KSEI to become one of Payment Bank period. Previously, Bank Lippo had become the Payment Bank since and period, as well as through PT Bank CIMB Niaga Tbk. So we already have capital market infrastructure, organization, experience, knowledge, comprehension, products and services, said Erwina Wigneswara, Vice President Funding Relationship Manager I Corporate Banking Group CIMB Niaga. Preparation to become KSEI Payment Bank was not easy. Besides, it should be supported with TI system and infrastructure. KSEI performed a tight selection by end-to-end and determined detailed Service Level Agreement consisting of cut off time, response time, Disaster Recovery Center, etc. The election process of 2009 happened concurrently with CIMB Niaga merger, and therefore certain things had to be done, e.g. integration process of Payment Bank ex Bank Lippo and ex Bank Niaga, uniting of branch office at Bursa Efek Indonesia building, banking system integration to CIMB Niaga core banking, as well as allignment of services and procedures, explained Erwina. Capital market services CIMB Niaga provides among others are: working capital loan, intraday service, bank collateral, virtual account, e-banking, e-tax or forex transaction, and custody. According to Erwina, Payment Bank can be treated like entry ticket to go into comprehensive capital market service business. We have already made continual developments of system, product, and service based on dinamic capital market player requirements. Currently, we have provided intraday service for Exchange Members to perform settlement transaction of stocks, government bonds, and corporate bonds, Issuer IPO service, e-banking, tax payment, lending, mass fund transfer, virtual account, corporate payroll, corporate card and fund placement, added Erwina. According to Erwina, as per June 2009, CIMB Niaga has served the transaction value through KSEI up to 52% with a total value of Rp trillion and C-BEST transaction frequency served up to 44%. The total clients of Payment Bank was 32% of total Securities Companies and Custodian Bank 83%. And meanwhile, the total Securities Companies having co-operation with

5 CIMB Niaga has reached up to 78%. For Bank Mandiri, appointment as KSEI Payment Bank was not for the first time either. Bank Mandiri has been appointed as Payment Bank since 1994, and the appointment this time was the fourth time. It is therefore, from the side of relationship experience, Bank Mandiri shall be more ready. Wisnu Broto, Senior Manager FI Overseas Network Group of Bank Mandiri, said that KSEI transaction value served by Bank Mandiri as per June 2009 has exceeded Rp 100 trillion, as quoted from Bank Mandiri Director statement. According to him, the point plus of Bank Mandiri is that it is the first state-owned bank in Indonesia appointed as KSEI Payment Bank for more than 14 years and remains so up till now. For BCA, it was the second time to become KSEI Payment Bank, and period. Preparations BCA performed this time was not as complicated as new Payment Bank did in providing host-to-host network witk KSEI. This time, it tends to provide service development suits to client satisfaction, said Rusdianti Salim, Chief Manager of BCA Cash Management Unit. As Payment Bank, BCA is expected to develop Indonesia capital market by providing flexible services to investors or Exchange Members to perform capital market transaction with sophisticated information technology. Therefore, capital market transaction through BCA can be performed easily, fast, and securely, she added. Improvement of transaction value BCA booked from Exchange Members having BCA accounts is Rp trillion per month. Having more than 850 branch offices all around Indonesia, BCA offers varioues services to investors to perform transaction, among others are: Internet Banking, Mobile Banking, Debit BCA, ATM, layanan BCA Prioritas, BCA Bizz, and BCA by Phone. BCA has managed more than seven million accounts wide-spread all over Indonesia. It is BCA basic capital as Payment Bank in which majority of capital market community, e.g. investors and Exchange Members, has taken advantage of BCA to perform banking transaction related to capital market. However, it was for the first time for Bank Permata to become KSEI Payment Bank. Bank Permata appointment as KSEI Payment Bank was a true milestone, showing Bank Permata commitment and competence to provide banking services according to standard determined by KSEI in supporting Indonesia capital market activities, said Ardi Sedaka, Head - Financial Institutions of Bank Permata. Preparation activity consisted of IT devices investment, system application and procedures creation, supporting product/ service making, up to work layout and personnels training in the significant points of overall Payment Bank activities. In his point of view, Bank Permata has met all requirements of Payment Bank set by KSEI. Bank Permata has 268 conventional branches and 10 syariah branches in 55 ci- Ardi Sedaka Wisnu Broto ties with 563 ATMs widely accesible through 17,000 ATMs of ATM Bersama, ALTO, Plus and Prima networks. Bank Permata can be accessed through internet banking (Permatae_Business) which can be applied by corporate or individual clients to improve efficiency and operational business security. Bank Permata also has Virtual Account, operated on Real Time On-line. Therefore, it enables Exchange Members to receive payment from clients easily without manual reconciliation process. For investors who become Exchange Member s clients, Bank Permata provides Sub Account product which can be accessed real time online to monitor Securities transaction payment. This product shall improve fund management transparency of clients by Exchange Member, and provide an ease for the reporting to regulator. Those products shall support Securities Companies in performing clients transactions, frequency and volume of which keep growing especially due to the trend of on-line trading. According to Rusdianti, co-operation built between BCA and KSEI has run well and it is expected that we can maintain the system stability and continuity to support capital market transaction. Synergy formed between banking and capital market industry, she added, has to be improved by sharing recent information concerning capital market industry so Payment Bank can deliver excellent services. According to Erwina, the existing cooperation with KSEI has run very well. Daily monitoring and evaluation of all Payment Bank are performed jointly and transparently to maintain and improve services quality. This co-operation shall be even a lot more better if KSEI or the SROs lets the Payment Bank be part of capital market development team in discussion with the authorities, e.g. Bank Indonesia or Ministry of Finance, etc. Consequently, all services provided to capital market players can be jointly improved to give maximum benefits in its multi-dimensions. Synergy formed between banking and capital market industry, has to be improved by sharing recent information concerning capital market industry.

6 The 11 th ACG Cross Training Seminar Serve Our Investor Again, the routine meeting of Asia Pacific Central Depository Group (ACG) Cross Training Seminar was held for the eleventh time. Taking Issuer Service as the topic, countries of ACG participants agreed to stay focus on investors need and to provide them with excellent services. T he performance of The 11 th ACG Cross Training was to facilitate exchange of information and to improve co-operation built among ACG members. The activity, which was held on July 2 4, 2009 at Pan Pacific Sonargaon Hotel, Dhaka, was hosted by The Central Depository Bangladesh Limited (CDBL), Dhaka, Bangladesh. Taking Issuer Service as the main topic, the event were participated by 15 institutions from 11 (eleven) countries in Asia Pacific. The 11 th ACG Cross Training was to facilitate exchange of information and to improve cooperation built among ACG members. They are India, Pakistan, China, Japan, Korea, Indonesia, Malaysia, Mongolia, Hong Kong, Singapore and Thailand. In this annual program, PT Kustodian Sentral Efek Indonesia (KSEI) delegates were represented by Research and Business Development Division (Dian Kurniasarie), Central Depository Services (Hartati Handayani), Information Sytem Development Division (Erna Mudji Ambarsari) and Legal Department (Roshida Widyawati). The KSEI delegates carried out presentation of Depository Model and Issuer Services Provided By KSEI, which explains the corporate action service provided for service users. The topic discussion was divided into 4 (four) topics, namely Comparison of Depository Models, CSD s Legal Protection in case of Participant Insolvency, Legal Issues and Implications raised by Unification of Private Law (UNIDROIT) Convention, Collateral Management as well as Impact of the World Financial Crisis on the Market and Actions Taken by CSDs. Welcome reception which was attended by almost all participants marked the first day activity. It was meant to get to know each other inserted with exchange of information in between concerning the respective institution. On the second day, the seminar was opened by welcome speeches from the host, Chairman of CDBL, Samson H Chowdhury, and Chairman of The Securities and Exchange Commission (SEC), Ziaul Haque Khondker, followed by presentation by Samad, CDBL regarding CDBL development since 1999 and CDBL service products, among others are: dividend distribution to investor, internet access, and Short Messaging Service (SMS) to view Securities balance owned by investor directly from CDBL website. This annual event was then followed by the main topic discussion, Comparison of Depository Model, a topic which was chosen in the exchange of information among Task Forces. There were seven countries dealing with the exchange of information concerning Securities depository services for service users namely, China, India, Singapore, Hong Kong, Malaysia, Indonesia dan Japan. The discussion was giving the stress on structure of Securities Account and Sub Securities Account applied in respective country. Also, Corporate Action activities and access granting to investors to view Securities balance in their Sub Securities Accounts. Like Indonesia with its Investor Area facility, other countries have also provided similar facility to the investors. Therefore, they can now have the access to their Sub Securities Account through the

7 need and to provide better services. See you at the following ACG Cross Training next year. l [KSEI Delegates] been conducting UNIDROIT Convention study, implementation of which shall be adjusted after having the approval from the respective Capital Market Supervisory of each country. Afterward, on the third topic of Collateral Management, delegates of Indonesia, that were represented by PT Kliring Penjaminan Efek Indonesia (KPEI), Thailand and South Korea delivered their presentations concerning collateral structure and Securities transaction settlement. This two-days program was ended by presentation from Dr Hasan Imam, Managing Director & CEO Race Capital Management, Mendjargal Orosoo, Mongolian Securities Clearing House and Central Depository, Naoko Watanabe, Japan Securities Depository Center, Inc. and A.C. Gautam, Managing Director Bank of India Shareholding, regarding financial crisis impact and necessary actions central custodian has to take in facing the financial crisis occurred since mid 2008 up to now. The event was closed by dinner, attended by the whole participants and CDBL big family. It was also enlivened by Bangladesh traditional art, and ended with photo session. CDBL delivered a slogan of Serve your Investor at the end of the program, meaning that all Central Securities Depository have to focus on investors website or SMS. On similar day, group discussion was also organized carrying the main issue of Issuer Services, dividing participants into seven small groups. On the third day, the program was followed with the second topic of CSD s Legal Protection in case of Participant Insolvency, and it was presented by Pakistan and Malaysia. In the presentation, both countries described that Securities of investor have to be kept in Sub Securities Account to protect investors assets from Account Holder bankruptcy, and that Account Holder is prohibited to perform Securities transfer, withdrawal or collateral without instruction from the investors. The third topic of Legal Issues and Implication of UNIDROIT Convention was brought up by delegates of South Korea, Japan and Thailand with their presentation regarding comparison between UNIDROIT Convention and provisions of Securities depository and transaction settlement applied in the respective countries. UNIDROIT Convention background is cross border transaction, in which moderization and harmonization are required related to transaction settlement provisions applied in the countries involved in such cross border transaction. Currently, these three countries have With slogan of Serve Your Investor, currently, all Central Securities Depositories focus on investors need and to provide better services.

8 activities A Visit of Iran Delegates On July 22, 2009, KSEI, jointly with PT Bursa Efek Indonesia and PT Kliring Penjaminan Efek Indonesia extended a warm welcome to honorable visit of Stock Exchange Organization (SEO) Iran delegates comprising of various elements of Iran capital market, e.g. Securities Company, Issuer, Judge, and regulator. The aim of the visit was information exchange related to development of capital market industry in respective countries. It was started with trading floor visit, followed by presentations from respective institutions and ended up with discussion. l Team Building of KSEI Service Users The 12th DRC Live Test To ensure the smoothness, comfort, and security of investors in transacting in Indonesian capital market, KSEI, once again, conducted the 12th Disaster Recovery Center (DRC) Live Test on July 31, Such DRC system testing was to ensure that DRC system is capable of securing and replacing C-BEST main system when disruption occurs in the main engine and Business Contingency Plan can run as set procedures. l Again, KSEI arranged Team Building activity for KSEI Service Users in Bandung at July 3 5, The event with the heading of Jungle Adventure was not only to strengthen the existing relationship and cooperation between KSEI and service users, but also to show appreciation and gratitude upon achievements made all this time. The Team Building activity was attended by 350 participants, namely Securities Companies, Custodian Bank, Registrars, Payment Bank, BEI, and KPEI. All participants enthusiastically joined in series of activities of Team Building activity held at Green Forest, starting from departure point up to Gala Dinner at Nu Art Sculpture. It brought up a deep impression and provided a better intimacy between KSEI and the service users accordingly. The film screening of team building activities, live band and dancer performances, and doorprizes make the event merrier. l statistic