Investor Protection

To improve investment security in the Indonesian capital market, therefore every investor’s assets has been given protection through the establishment of Investor Protection Fund by Indonesia Securities Investor Protection Fund (SIPF). Indonesia SIPF is a company that organizes the Fund Protection Program Financiers, and surveillance by “Otoritas Jasa Keuangan” (OJK).

Investor Protection

Investor whose asset being protected by Investor Protection Fund shall meet the following requirements:

  1. Has the asset kept and owns Securities account in Custodian

  2. Has Sub Securities Account opened by Custodian in Securities Depository and Settlement Institution

  3. Has single investor identification provided by Securities Depository and Settlement Institution


Those requirements shall not apply for Investor who meets the following criteria:

  1. Investor who involves in or becomes the cause for the loss of Investor asset

  2. Investor is a minority shareholder, director, commissioner, or official under Custodian director; and/or

  3. Investor is an affiliation of the abovementioned parties in point 1 and 2. 

Protection Stages

In terms of asset protected or investor to be protected, the following protection stages shall apply:

Jan 1, 2014 - Dec 31, 2015

Investor Protection Fund shall only provide indemnification to the Investor who is a client of Securities Broker Dealer that performs the administration of client’s Securities account and Member of Indonesia Stock Exchange (IDX). Toward Investor Asset, such indemnification shall be limited only to Investor Asset in the form of stocks kept in Collective Custody of Depository and Settlement Institution and listed on IDX.

Jan 1, 2016

Investor Protection Fund shall only provide indemnification to the Investor who is a client of Securities Broker Dealer that performs the administration of client’s Securities account and Member of Indonesia Stock Exchange (IDX), and also a client of Custodian Bank. Toward Investor Asset, Investor Protection Fund shall only provide indemnification to the Investor who is a client of Custodian Bank.  Indemnification on Investor Asset in the form of fund which are protected by Investor Protection Fund are the funds kept in Clients’ Fund Accounts opened by Custodian in Bank  in name of respective Investor.

Claim Handling Stages

Investor Protection Fund Institution shall perform claim handling activity of Investor for the loss of Investor Asset after the FSA declares the following conditions:

  1. There is a loss of Investor Asset

  2. Custodian fails to reinstate the loss of Investor Asset

  3. Custodian that carries on business as Securities Broker Dealer performing Securities administration is declared incompetent to continue its business activity and its business license shall be revoked by the FSA.

  4. Custodian is declared incompetent to continue its business activity as Custodian Bank and its business license as Custodian shall be revoked by the FSA

By no later than 3 (three) business days following the decision of FSA, Board of Directors of Investor Protection Fund Institution shall:

  1. Notify the public through newspaper/other media for the occurrence of the abovementioned conditions and encourage the concerning Investor to submit a claim to Investor Protection Fund Institution by no later than 30 (thirty) business days following such notification.

  2. Give suggestion to form a claim committee to the FSA; and

  3. Form a claim verification team. 

Indemnification to Investor

Indemnification to Investor by using Investor Protection Fund shall be conducted in compliance with the following provisions:

  1. The FSA has issued a written statement that:

    • There is a loss of Investor Asset
    • Custodian is incompetent to reinstate the loss of Investor Asset; and
    • Custodian that carries on business as Securities Broker Dealer performing Securities administration is declared incompetent to continue its business activity and its business license shall be revoked by the FSA; or
    • Custodian is declared incompetent to continue its business activity as Custodian Bank and its business license as Custodian shall be revoked by the FSA
  2. Investor has submitted an indemnity application to Investor Protection Fund Institution as stipulated in the FSA Rule Number VI.A.5 concerning Investor Protection Fund Institution

Such indemnification shall be given in the form of fund of equal value to a loss of Investor Asset and/or at a maximum limit determined by the FSA for each Investor and Custodian.  Indemnification on the loss of Investor Asset shall not cover the loss of estimated future investment value. Maximum limit of investors assets compensation Rp 100 Million/Investor or Rp 50 Billion/Custodian.

Visit Indonesia SIPF official website for more information click here