PT Kliring Penjaminan Efek Indonesia (KPEI) was established in 1996 as a Clearing and Guarantee Institution or Central Counterparty (CCP) for the Indonesian capital market. In accordance with Law No. 8 of 1995 on Capital Market, the Government of the Republic of Indonesia designated KPEI as part of the Self-Regulatory Organization (SRO) of the Indonesian capital market, together with PT Bursa Efek Indonesia (IDX) and PT Kustodian Sentral Efek Indonesia (KSEI).
Overview
KPEI Role Overview
As an entity, KPEI’s line of business is to organize clearing of securities exchange transaction and regulated over-thecounter (OTC) transactions as well as securities exchange settlement guarantee. The development of industry and economy has enabled KPEI to expand its business activities by conducting other financial supporting services, with the approval of the Financial Services Authority (FSA) and in accordance with applicable laws and regulations. The year 2020 marked another milestone of KPEI as it expanded its role as central counterparty (CCP) of the OTC Derivative market in order to support the Government’s program to develop an
integrity, efficient, and transparent money market.
KPEI and Sustainable Innovation
The existence of KPEI in the Indonesian capital market industry functions as an LKP that carries out clearing activities and the function of guaranteeing the settlement of stock exchange transactions. The clearing activity is referred to through the process of determining the rights and obligations of stock exchange transactions, of each Clearing Member (CM) which must be completed on the settlement date. The function of guaranteeing the settlement of stock exchange transactions is carried out by providing legal certainty for the fulfillment of rights and obligations for CM arising from exchange transactions.
KPEI continues to improve the quality of services and products on an ongoing basis, and strives to innovate on each type of service and product to meet the expectations of market participants. As an institutional development, KPEI also always strives to improve infrastructure, research and development, and implement international standard best practices as a Central Counterparty (CCP).