KPEI Explains Its Role In Protection Of Capital Market Investors In Indonesia

Director of PT Kliring Penjaminan Efek Indonesia (KPEI) Antonius Herman Azwar. (Photo: Doc. Antara)

JAKARTA - Director of PT Kliring Penjaminan Efek Indonesia (KPEI) Antonius Herman Azwar revealed the role of KPEI in providing protection to investors in the Indonesian capital market.

"KPEI carries out its clearing and guarantee functions in the settlement of exchange transactions in the Indonesian capital market," he said in Jakarta, quoted from Antara, Thursday, April 4.

In addition, he continued, KPEI ensures that the clearing and guarantee processes run efficiently and regularly, as well as the transaction completion process runs normally and safely.

"By carrying out this role as well as possible, KPEI indirectly helps protect investors who transact on the capital market," said Antonius.

He explained that various activities were carried out by KPEI to support investor protection through securities companies that are members of Kliring.

These activities include implementing an efficient clearing process through a netting and innovation method, ensuring the completion of exchange transactions by implementing risk management that follows international standards, as well as supervising the compliance of Clearing Members with applicable regulations, especially regulations set by KPEI.

He explained that the regulation was implemented aimed at making Klaring members carry out their roles in an orderly manner, thus providing a sense of security for investors in the Indonesian capital market.

"This effort is to ensure that transactions run well, as well as to avoid investor assets from possible risks in the Stock Company that is a Member of Clearing," said Antonius.

He continued, KPEI together with other capital market institutions are also trying to provide protection to investors, one of which is through socialization and education to investors and potential investors in the capital market.

In addition, his party seeks to prepare various alternative investment products that are safe for investors, such as Borrowing Effects (PME) and Triparty Repo.

"KPEI is actively collaborating with the Financial Services Authority (OJK), the Indonesia Stock Exchange (IDX) and the Indonesian Central Securities Depository (KSEI) to conduct socialization and education to investors and potential investors, related to procedures, opportunities, as well as the risk of transacting in the capital market," said Antonius.

Through the role of investor protection in the capital market, his party hopes that investors can be wiser and do not hesitate in investing in the Indonesian capital market.

"Investors are expected to have a higher awareness of investment risks and how to prevent them, so that investors can be more confident and wise to invest in the Indonesian capital market," said Antonius.