IDX Ensures 22 Securities in Solo Raya are Registered by Indonesia SIPF

Armfalcon.com, SOLO — The Indonesia Stock Exchange (IDX) confirmed that as many as 22 securities in Solo Raya were registered with the Indonesia Securities Investor Protection Fund (SIPF) to provide transaction security in the capital market.

“In Solo Raya there are as many as 22 securities that are our members. Thus, those who open securities accounts in Solo Raya are already protected by SIPF,” said Head of BEI Central Java II M Wira Adibrata in Solo, Monday (15/5/2023).

In Solo and its surroundings, except for Klaten, there were 216,660 capital market investors. All of them have been guaranteed protection by Indonesia SIPF.

He said that the existence of Indonesia SIPF could erode transaction doubts in the capital market because it provides a safe side for investors. “For example, how come buying shares didn’t arrive and wasn’t resolved. So far, thank God, it was resolved by the securities themselves,” said Wira.

If it can’t be resolved later, he said, don’t panic right away, there are institutions that carry out guarantees, protection for securities transacted through stock exchange members and SIPF members.

Meanwhile, the Main Director of Indonesia SIPF Narotama Aryanto said, SIPF has the same function as the Deposit Insurance Corporation (LPS) in banking, namely to both protect lost assets. If LPS protects customer funds, Indonesia SIPF protects its effects.

“For example, shares. What is protected is the loss of shares, not their value,” he said

For example, in the banking industry, a customer has Rp. 10 million in funds at Bank X. Three years later it is still Rp. 10 million, but the value is different. What is protected is this Rp. 10 million, so it’s not the value. Likewise with SIPF.

He said that the risk protected by Indonesia SIPF is the risk of loss of investors’ assets. This risk of loss can be caused by the potential for the transfer of assets belonging to investors without the knowledge of investors by the custodian. Custodian is a party that administers investors’ assets.

“The criteria for protected investors are investors who deposit their assets and have a securities account with a custodian, investors who have a securities sub-account with a depository and settlement institution, and investors who have an investor identity residence number (SID),” he said.

In terms of legal basis, said Narotama, previously SIPF was regulated under the legal umbrella of the Financial Services Authority Regulation (POJK). However, starting this year the mechanism for protecting investors in the capital market has been regulated in Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK).

“Protection of official investors’ funds is a provision in the law. So it will be safer for investors throughout Indonesia, especially in Solo and its surroundings,” he said.

source: BETWEEN