Investor Protection

Indonesia Securities Investor Protection Fund (SIPF)

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).

 +(6221) 51-5555-3     http://www.indonesiasipf.co.id/

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 Haindling 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

 

  1. The FSA has issued a written statement that:

    • There is a loss of Investor Asset
    • Custodian is incompetent to reinstate the loss of Invester 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 Indstitution

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 here

 

The Indonesia Capital Market Arbitration Board

The Indonesia Capital Market Arbitration Board (BAPMI) is a forum to settle any civil disputes in capital market through out-of-court settlement mechanisms. BAPMI as an Alternative Dispute Resolution Institution is registered at The Indonesia Financial Services Authority

 +(6221) 515 0480     http://bapmi.org/in/index.php

Background of The Indonesia Capital Market Arbitration Board

BAPMI's establishment is inseparable from demands of Indonesian Capital Market players to have their own special out-of-court dispute settlement board in Capital Market to be handled by those who are experts in Capital Market, in quick and inexpensive processes, with final and binding decisions, and for fairness and justice.

Under the support of the Capital Market Supervisory Agency (Bapepam), subsequently in 2002 the Self-Regulatory Organizations (SROs) in Capital Market sector, i.e. the Jakarta Stock Exchange (JSX) and the Surabaya Stock Exchange (SSX) [now the Indonesia Stock Exchange (IDX)], the Indonesian Clearing and Guarantee Corporation (KPEI) and the Indonesian Central Securities Depository (KSEI) together with 17 associations in Indonesian Capital Market sector signed an MOU (Deed Number 14, drawn up by Notary Fathiah Helmy S.H.) to establish an Arbitration institution, which later was named the Indonesian Capital Market Arbitration Board, or "BAPMI".

BAPMI's Deed of Establishment (Deed Number 15, drawn up by Notary Fathiah Helmy S.H.) was signed in Jakarta by JSX and SSX [now IDX], KPEI and KSEI on 9th August 2002 before Mr. Boediono, the then Indonesia Minister of Finance, in a ceremony held in Indonesian Ministry of Finance's auditorium in Jakarta. Furthermore, BAPMI was recognized as a legal entity through Indonesian Minister of Justice and Human Rights' Decree Number: C-2620 HT.01.03.TH 2002, on 29th August 2002. The recognition was published in the State Gazette of the Republic of Indonesia on 18th October 2002, Number 84/2002, and the State Gazette Number 5/PN/2002.


Visit Indonesia BAPMI website for more information here