Optimizing Stock Investment By Borrowing Effects (PME)

JAKARTA - PT Kliring Penjaminan Efek Indonesia (KPEI) is also trying to prepare various investment alternative products that are safe for investors, one of which is through Borrowing and Loaning Effects or called PME. KPEI facilitates PME activities that allow investors to lend their stock portfolios and earn additional income.

KPEI facilitates PME activities by providing systems, mechanisms, and arrangements. KPEI also manages loans to pay fees for PME activities. So, with the role of KPEI, PME will be safer and more beneficial for all parties," said KPEI Director Antonius Herman Azwar in the TanyaKPEI Youtube Video, quoted Friday, May 3.

Antonius explained that the benefits of PME for investors are as an alternative to managing stock portfolios, especially for long-term ones. In addition, additional income benefits through fees or fees in exchange for investors who lend their shares can be used to pay share storage costs.

PME can be an investment solution for investors in managing stock portfolios. By lending their shares, when the stock price drops, investors can still receive income so that it will reduce potential losses. Then no less important, PME can also increase market liquidity," he added.

In addition, Antonius also said that KPEI ensures security in the process of borrowing, managing to repaying shares loans when they are due to lenders. PME activities carried out by KPEI are also carried out automatically through qualified operational mechanisms, systems, and procedures.

"KPEI has a risk management system and collateral management for loan management so that KPEI can ensure PME activities run safely," he continued.

To use PME facilities, continued Antonius, investors can contact a securities company where investors carry out share buying and selling transactions. Furthermore, investors will get an explanation of how to lend shares, starting from information related to the PME agreement, account opening, and other requirements that must be completed.

"After everything is fulfilled, investors can start PME activities by lending their own stock portfolio," he concluded.