Custodian Banks Officially Become DPP Members
The Financial Services Authority (OJK), the Indonesian Securities Investor Protection Fund (P3IEI/SIPF) and relevant stakeholders had established the Investor Protection Fund (DPP). The goal is to improve the security of investing in Indonesia’s capital market.
The Indonesia Stock Exchange (IDX) announced that custodian banks listed in the IDX have been DPP members since January 1, 2016. Thus the number of DPP members now reaches 133 custodians.
“One hundred and twelve of them are securities brokers (PPE), which administrate customers’ securities accounts, and 21 are custodian banks,” SIPF president director Yoyo Isharsaya said on Thursday, February 4.
DPP protects investors’ assets deposited at brokers or at a custodian bank. The protected assets are securities that are collectively entrusted to a custodian and recorded in a securities account in a central securities depository (LPP).
The DPP also protects investors’ funds that are deposited to a fund custodian by opening an account.
With custodian banks becoming DPP members, the value of investors’ assets are protected by the DPP increased to by 295.27 percent from Rp765.25 trillion per December 31, 2015 to Rp3024.78 trillion per January 1, 2016.
Investors whose assets are protected by the DPP are those who entrusted their assets and a securities account at the custodian, opened securities sub-accounts at the LPP by a custodian, and have a single investor identification issued by the Central Securities Depository.