STP, Anticipated Future Transaction System

Transcription

1 From The Editor Straight Through Processing (STP) has always been a target discussed by SRO in recent years. The most awaited new milestones to anticipate the surge of trade effect is finally realized. STP launching was conducted on June 18, This is one of the capital market infrastructure that will improve the efficiency of capital markets trading activities in Indonesia. Besides lifting STP as the main theme of this edition, we review the development of the Islamic capital market in Indonesia. Has the Muslim community who become the majority of Indonesia s population utilize optimally the Islamic capital market? How big is the availability of Islamic investment products? And what about the rule of law and the fatwa that complements Sharia Securities trading activity? We have it for the readers on this edition. Fokuss is also present articles about Central Depository Services Regulatory changes, new KSEI commissioner, and the integration of social media and the business world. As usual, we also have a series of KSEI s last activities and events, and statistics which describing the asset and sub-accounts, as well as the amount of AKSes Card and SID recorded in the C-BEST. Happy Reading. Editor Website KSEI helpdesk@ksei.co.id Toll Free Call Center KSEI STP, Anticipated Future Transaction System After scripless trading implementation in 2009, Straight Through Processing (STP) become the most anticipated new milestone in infrastructure improvements series in Indonesia capital market. Implementation of trading transaction process until the integrated clearing and settlement process was conducted to anticipate the increasing activity in Indonesia capital market from year to year. Six year ago, the daily average of stock transactions in Indonesia capital market was recorded at Rp 1,6 Trillion. Currently, the the daily average number increase by Rp 4,9 Trillion. The increasing number of transaction will continue to occur with the increasing number of issuers listed in BEI, and investors, the development of online trading which duplicates investors and the rapid transaction process and also the development of new products. To anticipate this increase, Indonesia capital market scheduled an infrastructure reformation which was written in the capital market master plan in 2010 to One of which was the implementation of Straight Through CONTENTS STP, Anticipated Future Transaction System Overview of Sharia Capital Market Regulatory Changes of Custodian Sentral Services New KSEI Commissioners Social Media Integration With Business World activities & StatisticS 04 Edition Year 2012

2 2 Processing (STP) or so-called integrated trading system. After a long process of preparation and system development, the STP was successfully launched on June 18, The STP program may become the most awaited part of the infrastructure development. Similar to online banking system, STP in capital market is the integration of systems and processes by automating the entire stock exchange transaction process, ranging from order input, transaction execution, clearing, to the confirmation/affirmation and settlement, without any manual intervention or re-input data process. Before the STP was launched, in order to serve investor s transaction, Indonesia Stock Exchange s (IDX) member must interact separately with trading system, clearing system and settlement system managed by each SRO. First process is order input to transaction execution process from IDX s member into JATS system. Second, the process of clearing and settlement into E-Clears system owned by PT Kliring Penjamin Efek Indonesia (KPEI) and settlement confirmation related to Sub Securities Account belongs to each client in the C-BEST system owned by PT Kustodian Sentral Efek Indonesia (KSEI). With STP, it only takes one input process fromorder input, transaction settlement confirmation, until the settlement of Securities and fund to each investor. This is where the new phase of efficiency begins in Indonesia capital market transactions. The STP development is one of capital The STP process needs one input process from order input, confirmation until transaction settlement. market joint projects for infrastructure development coordinated by KPEI. To complete this project, there are several challenges faced by KPEI said Hasan Fawzi, The President Director of KPEI. First, the development of IDX s member back office system to suit with STP process. Then, KPEI have to apply the operating/procedural adjustment for IDX s member so it can compatible with STP process. And lastly, the operational adjustment and stabilization in the SRO system, especially the clearing, settlement and risk management process which have beenchanged a lot since the implementation of STP. Syafruddin However, the success of STP implementation is not apart from the success of KSEI s Single Identification Number (SID) project implementation. As the identity of the investor in the capital market, every investor must has an SID, although the investor is a customer in several Securities Companies. The SID must be included as Trading ID and required forcapital market trading. Syafruddin, Head of KSEI Research and Business Development says, by applying the SID as a Trading ID, every transaction STP PROJECT >> Hasan Fawzi order input into the JATS system will identify the investor. Data order which have been completed with SID also can be read by KPEI s E-Clears system, so the calculation of rights and obligations of the previous settlement is performed at the level of the Clearing Member, by KPEI is now can be calculated up to the customer level. The results of transaction settlement s rights and obligations calculation will be processed automatically and directly on the settlement date to the Sub Securities Account owned by existing customers in the system C-BEST KSEI. With the implementation of SID inclusion as trading ID, trading data information in Stock Exchange becomes more detail and transparent. Previously, information of the person who perform trade instruction in capital market are generally classified by IDX s member code and foreign or local parties, with the SID implementation, the party can be known until the customer level. This facility strongly supports the supervision functions of capital market authorities, so the Source: PMO-SMO Publisher: PT Kustodian Sentral Efek Indonesia (KSEI) Advisor: KSEI Director Editor: Zylvia Thirda, Dharma Setyadi, Susiyanti, Novian Harry Wibowo, Ahmad Nooriman, M. Ridwan, Rachmat Irfan, Adisty Widyasari, Dimas Prayoga Address: Gedung Bursa Efek Indonesia, Tower I Lt. 5, Jl. Jend. Sudirman Kav 52-53, Jakarta 12190, Phone , Fax Circulation: KSEI Corporate Communication Unit.

3 Stock Exchange transaction can run fairly, said Syafruddin. Not only the development from BEI, KPEI and KSEI, to support STP implementation success, IDX s member has also developed the back office systems process to adapt with STP mechanism and by implementing SID. During this development process, IDX s member also make adjustments of the record process of transaction, clearing, risk management, and settlement according to SID. Hasan Fawzi expressed his satisfaction toward the operation of this automatic integrated trade system. With the implementation of STP, repeated data entry is no longer needed and the risk of manual process in each step can be reduced. That way, the capacity of the transaction, clearing and settlement is automatically increase, he said. Hasan said, other purposes are from the aspect of transaction cost efficiency. With no more manual intervention, automatic validation, utilization of funds to client securities, will lower the costs. In previous process, Securities Company must hire workers to perform data input, now is no longer needed. Human resources can be optimized to do the marketing, said Hasan. STP implementations are expected to provide transparency of trade, minimize any risk, increase the frequency of capital market transactions as well as perform activities efficiency of all customers or account holders recorded in KSEI s system. Although it had been launched, doesn t mean KPEI s task to develop STP finished. Hasan also added, in short term, further socialization program of STP operation system for IDX s member will be conducted to minimize operational risk and improve efficiency. In addition, the stabilization and improvement of STP s relevant systems will continue to be made. While for medium and long term, supervision/monitoring efficiency will be optimized and enhanced. Completion of the STP process will be conducted to enhance the efficiency, among others, involves the Custodian Bank as settlement agent, said Hasan. [Editor Overview of Indonesian Syariah Capital Market As one of the biggest Muslim country in the world, potential development of syariah capital market in Indonesia is quite big. Particularly its supported by increasing Indonesia market performance. M ost people in Indonesia commonly knows about Syariah Bank rather than Syariah Capital Market. This is a likely thing because Syariah Banking already develop. The development of Islamic banking industry in Indonesia, particularly in recent years, providing a positive impact on the development of the Islamic capital market, where investment system in accordance with the basic principles of sharia. History of Syaria capital market in Indonesia began with the publication of Syaria Mutual Funds in 1997, followed by the issuance of Islamic bonds by the end of Earlier in July 2000, the Indonesia Stock Exchange (d / h Jakarta Stock Exchange) in collaboration with one of the investment manager launched the Jakarta Islamic Index (JII) that can be used to guide investors who want to invest their funds in Sharia. Islamic investment instruments continues to experience growth in line with the burgeoning growth of national banks to open sharia units. The development of the Islamic capital market continues with Indonesia becoming the first issuance of Sukuk Ijarah in 2004 and the issuance of Sharia Securities List (DES) in Various product and Islamic capital market instruments is growing and needs to be supported by the provision of a clear legal basis. In April 2001, the National Sharia Board Council of Ulama Indonesia (DSN-MUI) issued a fatwa No. 20/DSN- MUI/IV/2001 on Guidelines for Implementation of Mutual Fund Investing For Sharia directly related to the capital markets. Furthermore, Islamic investment instruments in the capital markets continue to grow in the presence of Islamic bonds issued by some issuers. In March 2003 agreed on a Memorandum of Understanding (MoU) between the Capital Market Supervisory Agency and Financial Institution (Bapepam-LK) and DSN-MUI. MoU indicates agreement between Bapepam-LK and DSN-MUI Islamic capital market. DSN-MUI also continue to update various provisions of the Islamic capital market, such as by issuing Fatwa DSN Number: 40/DSN-MUI/X/2003 dated October 4, 2003 on the Capital Market General Principles and Guidelines on Syaria in the Capital Market. This Fatwa determines the criteria of investment products in accordance with the teachings of Islam, among others, related to the The difference between regular market and sharia capital market can be seen generally from the instrument and transaction mechanism. 3

4 4 type of business, products and services are provided as well as how to manage the company is not a venture issuer that is prohibited by Syaria principles. Types of transactions must be done in accordance with the precautionary principle, and not allowed to speculation, manipulation and other acts that contain elements dharar, gharar, riba, maysir, and zhulm include: najash, Ba i al ma dun, insider trading, dissemination misleading information to gain a prohibited transaction, investing in companies at transaction level (ratio) of corporate debt to financial institutions ribawi more dominant than their capital, margin trading and Ikhtikar. Ketentuan, pedoman dan peraturan pasar modal syariah terus digulirkan pada tahun oleh Bapepam-LK, diantaranya adalah Peraturan Bapepam-LK Nomor IX.A13 tentang Penerbitan Efek Syariah dan Nomor IX.A.14 tentang akadakad yang digunakan dalam Penerbitan Efek Syariah di Pasar Modal dan Peraturan Bapepam-LK Nomor II.K.1 tentang Kriteria dan Penerbitan Daftar Efek Syariah. Pada tanggal 30 Juni 2009, Bapepam-LK telah melakukan penyempurnaan terhadap Per aturan Bapepam-LK Nomor IX.A.13 tentang Penerbitan Efek Syariah dan Nomor II.K.1 tentang Kriteria dan Penerbitan Daftar Efek Syariah. Provisions, guidelines and regulations Syaria capital markets continue in effect in the year by Bapepam-LK, including the Bapepam-LK No. IX.A13 on Issuance of Syaria Securities and IX.A.14 number of agreement that used in the Issuance of Securities Syaria Capital Market and Bapepam-LK No. II.K.1 on Criteria and Issuance of Islamic Securities Register. On June 30, 2009, Bapepam-LK has made improvements to Bapepam-LK No. IX.A.13 In Sharia Capital Market, securities instrument traded must come from company which business are from sharia free-sectoral criteria and free from ribawi components. on Issuance of Islamic Securities and II.K.1 Number of Criteria and Issuance of Islamic Securities Listing. To complete the provisions of the Act and Bapepam-LK has issued, on March 8, 2011 authorized the National Fatwa Council No. Syaria.: 80/DSN-MUI/III/2011 on Syaria Implementation Mechanism Trading Syaria Equity in Regular Stock Exchange. With the ratification of the implementation of the fatwa Securities on the Stock Exchange trading has basic or strong legal jurisprudence that continuous auction mechanism (continuous auction) used BEI in equity securities transactions in the regular market in accordance with Sharia principles. In line with the fatwa, on May 12, 2012 Indonesia Stock Exchange launched Indonesia Sharia Stock Index or Indonesia Sharia Stock Index (ISSI) which were meant to be a reference for investors to invest in stocks, particularly shares of sharia. This index is used to help overcome the misunderstandings amongst people who think that Islamic stock consists of only 30 stocks included in the Jakarta Islamic Index. In general, the concept of the Islamic capital market with regular stock market is not much different. The difference between regular capital market with the Islamic capital market instruments can be seen from the transaction mechanism. In the concept of Islamic capital market, the Securities traded instruments should come from companies engaged in sectors that meet Islamic criteria and free from elements of usury. While the transaction is done by a variety of practices to avoid speculation. The development of the Islamic capital market will accommodate the needs of Muslims in Indonesia who want to invest in capital market products according to Islamic principles. Moreover, this development also comes with a set of rules, regulations, guidelines and a clear legal basis. However, the level of public understanding about investing in the stock market based on sharia still needs improvement. With the increasing diversity of Islamic investment products and facilities in Indonesia, it is expected that people would have considered alternatives to invest according to their preference, in addition to investment products, which is already known and developed by banks. [Editor - fron various sources] The STP program has been launched in the mid of July To support the program, KSEI conducted several regulation refinements regarding Custodian Cental Services, especially which related to the STP implementation. Following the rapid development of Indonesia capital market product services,, KSEI as one of the Self Regulatory Organization (SRO), also takes part for all changes and developments. One of the important agendas of Badan Pengawas Pasar Modal dan Lembaga Keuangan (Bapepam-LK) with SRO is the launching of Straight Through Processing (STP) program from the second semester in This national project program has been listed on master plan of Indonesia capital market. STP or usually called the integrated trading transaction system, is the integration of system and process by automating all Securities transaction process. The process is starting from input order, transaction execution, clearing until confirmation/affirmation and settlement process, without manual intervention or repeated data input. The STP implementation is expected as the realization of transparency, minimizing risks and also increasing transaction frequency in the capital market along with activities efficiency to all KSEI shareholders. While STP was being developed, KSEI had also developed the C-BEST On-Line facility that connecting C-BEST with KSEI s account holders back office by host-to-host connection. In addition, KSEI has developed AKSes Facility and implemented Master Client ID to capital market investors. Beside as a support to international standard usage such as XML message and others, those facilities are developed to replace semi manual activities such as upload and download file process that currently used by KSEI account holders.. To implement STP program according to its objectives, several provisions in Central Custodian Services regulations need to be improved, especially the part regarding the function of Securities Account made by KSEI s Account Holders, which related to STP implementation. The process of making the regulation draft performed by KSEI is conducted by the stages of Rule Making Rule as provisioned in Bapepam-LK Regulation No.III.C.2 regarding The Rules of Proce-

5 Regulatory Changes on Custodian Sentral Services The STP program has been launched in the mid of July To support the program, KSEI conducted several regulation refinements regarding Custodian Cental Services, especially which related to the STP implementation. Sub Securities Account (Sub Securities Account 001) to clearing members. This account is still used to place Securities and or fund to stock market transaction settlement or warranty of stock market transaction settlement for the purpose of clearing members client. With those changes, hopefully the STP implementation has the clearly legal basis and expected to increase efficiency for Indonesia capital market. l dures Making of Central Securities Depository. Through Bapepam-LK letter No.S- 6953/BL/2012 dated June, , Bapepam-LK has approved the amendment of Custodian Central Service regulation. Refers to the approval letter from Bapepam-LK, KSEI imposes Custodian Central Service regulation changes which followed by the issues of KSEI s Directors Decree No :KEP 0013/DIR/KSEI/0612 refering to regulatory changes on Custodian Central Service on June 11, The Custodian Central Service regulation changes include the definition of Settlement Securities Account as stated in 1.1 provision number 1.72, 1.7.3, and 1.7.7, which are: rules that related to the use of Securities Account 002 (take and give account), Securities Account 003 (Securities lending and borrowing account of loan recipients) and Securities Account 005 (Securities lending and borrowing account of lender) Securities Account 002 which was used for Securities or fund submission to KPEI has changed to Securities and fund delivery and or receipt from or to KPEI. While the Securities Account 003 has changed from previously as Securities or fund Receipt Account from KPEI, now used as account for Securities or fund referral and or receipt of loan recipients related to lending and borrowing Securities. There is no change of function for Securities Account 004 or guarantee account. This account is still used to put guaranteedsecurities and or Fund by clearing member to KPEI. Another changes of regulation is regarding the opening of Sub Securities 004. The clearing members is now obligated to open only 1 (one) Guaranteed Sub Securities Account (Sub Securities Account 004) for each clients of clearing member who has had Depository [M. Zidni] Through several improvements Rules of the Central Depository Services, STP implementations are expected to have a clear legal basis 5

6 NEW KSEI COMMISIONERS On the 2012 Annual Shareholders General Meeting, Erry Firmansyah was re-elected as President Commissioner. The two other new commissioners are Rudy Tandjung and Wiwit Gusnawan. 6 K The 2012 KSEI s Annual Shareholders General Meeting was held in grand ballroom, The Dharmawangsa, Jakarta on June 28, This event was attended by 34 shareholders who have the voting rights or 92.93% from the total shareholders who have voting rights. Some decisions have been agreed in the meeting that lasted for 2 hours. One was the appointment of KSEI new Board of Commissioners KSEI for period. For the second time, the position of President Commissioner re-entrusted to Erry Firmansyah, who has held the same position for period. Born in Bandung on September 18, 1955, Erry is the familiar figure in Indonesia Capital Market. Starting his career as an auditor at Drs. Hadi Susanto s office, his career in capital market reach the top position when he becomes The President Director of KSEI ( ) and The President Director of PT Bursa Efek Indonesia (BEI) for 2 (two) periods of time ( and ). He is highly respected among Indonesia capital market participants. Earned Bachelor Degree in Economics from University of Indonesia, he was elected again to held the position of President Commissioner. The combination of experience, knowledge, and capabilities of KSEI s new Broad of Commissioners for period, is expected to support KSEI performance. New KSEI Commissioners from left to right: Wiwit Gusnawan, Erry Firmansyah, and Rudy Tandjung. For period, Rudy Tandjung and Wiwit Gusnawan become the newcomer the KSEI s Board of Commissioners, as the replacement for Heri Sunaryadi and Elwin Karyadi. Both were elected as KSEI s new commissioners after the acclamation from all shareholders. Hold a degree from Institute Pertanian Bogor (1991) and Master of Business Administration from Oklahoma City University (1994), Rudy was started his career on American financial companies, A.G Edwards, Oklahoma. Rudy Tandjung entered banking industries in 1996 as Product and Relationship Manager in Citibank. Over the next 13 years, Rudy has continued his career on the same company until his last position, Chief Operating Officer of Citibank s Global Transactions Services in Born in Palembang on June 10, 1967, he holds position as Head of Transaction Banking of PT Bank Permata Tbk. In addition, Rudy has also served as Chief of the Division of Trading period at the Custodian Bank Association of Indonesia. Beside the position of commissioner, Wiwit Gunawan is also served as Finance & Operation Director of PT Bahana Securities. Born in Bandung on April 29, 1970, he held bachelor degree in Accounting from Faculty of Economy, Padjajaran University, Bandung. From his early career until now, Wiwit has been working in securities industries, especially which related to finance and operational. Since 2009, he has been trusted as Project Leader for electronic trading platform development to Direct Market Access and Online Trading in PT Bahana Securities. The combination of experience, knowledge, and capabilities of KSEI s new Broad of Commissioners for period, is expected to support KSEI performance in carrying its duties and responsibilities as Depository and Settlement Institution in Indonesia capital market. l [Editor]

7 Nowadays, almost every people has a Blog, Twitter Account and Facebook. They always spend little time just to update their status, Not only once, even can be many times in a day, this fact shows that used of social media become life style in Indonesia. The Seminar of Issuers session on May 5, PT kustodian Sentral Efek Indonesia (KSEI) entitled use of social media for public company, Enda Nasution the Managing Director of salingsilang.com, explained that social relations for Indonesian is very important thing and cannot be separated from Indonesia culture., the social relations of Indonesia is now being fostered through social media.. At least, there are three reasons why the Indonesian people are very enthusiasm even tend to be addicted to used social media, which are: feel free to express, low cost and simple, keep in touch with their community or group also priority for family relations and friendship, Said Enda. Now Facebook and Twitter are quite popular and mostly used in Indonesia, the interesting fact about that, although these two social networking has been available since 2006, the trend in Indonesia is just happened in a few years later, Facebook on 2009 and Twitter on Although it looks little too late, users of twitter and facebook is very active. Based on data discribed by Enda, Indonesia became the second highest Facebook user in the world and the country with the most active Twitter users number three in the world. Not only for personal interest, social networking also can be utilized for business. Social networking become new media to fulfill conventional media such as television, radio, magazine and newspaper which was already popular as a source of information about products and promotions company. In a study conducted by social media developer Buddy Media and Booz Allen released on blog Harvard Business Review, during the year 2011 over 50% of companies in the U.S. plan to increase use of social media for the comapany. This shows that the company consider the importance of using social media. In the presentation delivered by Enda, social media usage trends have also been penetrated in Indonesia. Some companies in Indonesia already utilizing social media for publication and other means of information. The company seems to be aware that social media has an important role because of many stakeholders who have Social Media Integration and Business World Wake up, check Facebook, Break, update Twitter and posting on Blog before going to sleep. Now, social media has became an integral part of daily activities. accounts on social media. From the consumer point of view, social media is expected to serve as a connector to company if there is problem faced also promoted information and product. while, from company side, social media is very helpful to interact with consumer (Consumer care), to build the company s image, delivering the company s programs, and also can be used for marketing and promotion. The advent of social media trends, giving a change in the characteristics of the media. Conventional media that are a short distance, control, planning and form the image of the brand is being transformed into a new medium that is long-term, difficult to control, dynamic and not just build a brand but also customer loyalty. Based on Enda exposures, the media is now divided into 3 categories: paid media (paid), gained (earned) and made by the company (owned). Internet advertising and sponsorship are some examples of paid media, owned media while the example is a website, mobile applications and digital content. Portion of social media is on earned media, which the company can provide feeds to consumers through various social media. Meanwhile, according to Kaplan, in the article published in Elsevier journals in the year 2009, there are 5 important things to consider if the company wants to use social media, namely: social media carefully choose what to use, decide whether you want to use social media to be made alone, bought or use existing ones, deliver the same content, incorporating the use of social media by conventional media as well as open access to social media at work for the employees for the purpose of monitoring. Cannot be denied, the trend of social media gives a new color to worl of business. For that, companies had to be smart used media strategic planning for the use of social media become useless. l Not only for personal interest, social networking also can be utilized for business [Editor 7

8 KSEI Break Fasting with The Orphans To coincide with the holy month of Ramadan, KSEI organizing iftar employees with young orphans from orphanage Orphans in Kidzania Indonesia, Pacific Place. The event was held on August 4, 2012, the activity started playing with orphaned children and children of employees KSEI in Kidzania. At the end of the event, the participants were then breaking the fast together, and continued with the play activities. With the convening of the iftar activities, KSEI expected to provide entertainment for children orphaned in the holy month of this blessed. l activites Religious Series of Activities During Ramadhan To fill in the month of Ramadan with beneficial activities, SRO consisting of BEI, KPEI, KSEI, held a series of activities during this holy month. For employees who want to learn to read the Quran, whether just learning or to smooth, open class Learning Read Quran (BBQ) held every Tuesday and Thursday at midday during the July 23, August 13, To increase knowledge about the religion of Islam, attended Ustadz Jeffry Al Buchori (July 24, 2012), Ustadz M Khalilurrahman Al Mahfani (July 31, 2012) and Ustadz Dedi Martoni (August 7, 2012), which provides spiritual spray. The event opened with also held on Thursday, August 9, 2012 in Gallery BEI to tighten the relationship between fellow employees SRO. Hopefully Ramadhan was able to give blessings to all. l Mid Year Press Conference In order to commemorate the 35th Capital Market on August 10, 2012, Bapepam- LK together with SRO (BEI, KPEI and KSEI) held a press conference mid-year. Housed in Gallery BEI, BEI Building 1st floor, opened the event by Ngalim Sawega, Chairman of Bapepam- LK, the Indonesian capital market performance delivered in the first semester of After that, Director of SRO deliver performance and its role in the development of the capital market in Indonesia. Before iftar together, also held spiritual spray for media crews. l 8 statistics