Custodian Banks Officially Become DPP Members

1 min readUpdated May 26, 2025Feb 6, 20162:33 AM

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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.

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What this means

The formal inclusion of custodian banks as DPP members from January 2016 was a robust move to bolster investor confidence in Indonesia's capital market. This immediately amplified the value of protected assets by nearly 300%, a clear signal of enhanced security. By expanding protection beyond securities brokers to include custodian banks, the OJK and IDX directly address potential vulnerabilities and align with best practices for safeguarding collective entrusted securities and funds. This initiative puts pressure on any market actors not yet fully compliant to meet these enhanced security standards. It’s a solid, proactive step to strengthen the financial infrastructure. Watch for any subsequent reporting on investor participation rates or changes in market liquidity following this improved protection framework.

Rajiv Menon

Questions & Answers

What does the DPP aim to achieve for investors?

The DPP's goal is to improve the security of investing in Indonesia's capital market. It protects investors' assets deposited at brokers or custodian banks, and also funds deposited with a fund custodian.

When did custodian banks officially become DPP members?

Custodian banks listed in the IDX have been DPP members since January 1, 2016. This brought the total number of DPP members to 133.

How many of the new DPP members are custodian banks?

Of the 133 DPP members, 21 are custodian banks. The remaining 112 members are securities brokers, according to the SIPF president director.

How did the value of protected assets change after custodian banks joined the DPP?

The value of investors' assets protected by the DPP increased by 295.27 percent. This rose from Rp765.25 trillion on December 31, 2015, to Rp3024.78 trillion on January 1, 2016.

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