KSEI as Securities Depository and Settlement Institution
The Indonesia Central Securities Depository (KSEI) is a Depository and Settlement Institution in the Indonesian Capital Market that provides organized, standardized, and efficient central custodian and securities transaction settlement services, in compliance to Law No.8 Year 1995 on the Capital Market. After its establishment in Jakarta on December 23, 1997, and receiving its business permit on November 11, 1998, KSEI became one of Indonesia’s Self-Regulatory Organizations (SRO) along with the Indonesia Stock Exchange (BEI) and the Indonesian Clearing and Guarantee Corporation (KPEI). KSEI started its operational activities in script-form securities transaction settlements on January 9, 1998, and took over the function of the Indonesia Securities Clearing Depository (KDEI) as the country’s Depository and Settlement Clearing Institution.
In 2000, KSEI and other SROs adopted scripless trading transactions and settlements for the Indonesian Capital Market, which was supported by KSEI’s main system, the Central Depository and Book Entry Settlement System (C-BEST). Realizing the rapid growth of transactions in our capital market, along with the advancement of technology systems, on August 8, 2018 KSEI initiated the sustainable development of its C-BEST system by launching the C-BEST Next Generation (Next-G) system as part of KSEI’s efforts to support the growth of the Indonesian Capital Market, especially in terms of increasing the total number of investors and transaction settlements.
KSEI’s endeavor to increase investors’ trust was realized by adopting the mandatory use of Single Investor Identifications (SID) in 2012. SID as a single identification number for each investor not only simplifies the investor identification process but also became a foundation to develop other capital market advancements, such as the AKSes (Securities Ownership Reference) facility. In 2016, KSEI also implemented its Integrated Investment Management System (S-INVEST), which provides an integrated platform for the Indonesian Capital Market’s investment management industry. For this breakthrough, KSEI was awarded as the Best Central Securities Depository in Southeast Asia in 2016 by Alpha Southeast Asia magazine and propelled Indonesia as the first country in Southeast Asia to have an integrated investment management system. Optimism and dedication drives KSEI’s enthusiasm in advancing the Indonesian Capital Market. With the support of its shareholders; which include SROs (BEI and KPEI), Securities Companies, Custodian Banks, and Registrars; KSEI continues to push forward in improving its performance by implementing various initiatives and applicable researches that are continuously developed to match with current industry trends and market demands.