Investor protection fund Rp307.11 billion

Jakarta (ANTARA News) - Until February 2018 the Securities Investor Protection Fund (SIPF) has collected a protection fund for Indonesian capital market investors of Rp307.11 billion (about US$22,357,608).

"The protection fund consists of investor protection fund amounting to Rp157.11 billion and investor compensation reserve valued at Rp150 billion," Indonesia SIPFs President Director Ignatius Girendroheru said in an official statement here on Wednesday.

He added that the investor protection fund was a set of funds which was established under the rules of the Financial Services Authority (OJK) to protect investors in capital market from loss of assets.

Meanwhile, reserve compensation fund is fund belonging to Self-Regulatory Organization (SRO) which is placed in SIPF Indonesia as a reserve fund. This fund is used if the investor protection fund is insufficient to replace claims for loss of investor assets which is kept in securities companies and custodian banks.

"As of February 2018, the value of investor protection fund has grown by 12.88 percent year on year. The growth of value is from the annual fee of members consisting of 105 securities companies and 19 custodian banks," he noted.

Ignatius pointed out that the total amount of investor protection fund members due in 2018 was Rp17.07 billion (about US$1,242,696). This amount is higher than that in the previous year which amounted to Rp13.42 billion. The increase of investor protection fund also came from the investment of the fund which reached Rp7.47 billion yoy.

Meanwhile, Indonesia SIPFs Director Widodo added that the total value of investor assets in the stock market under SIPFs protection until the end of February 2018 has reached Rp4,491.6 trillion (about US$326,988,480). The amount increased by Rp200.06 trillion or grew 4.66 percent year to date.

According to him, the increase in asset value was due to several factors, including the strengthening of the stock market which was reflected by the growth of composite stock price index (IHSG) of 3.80 percent during that period. Another factor is corporate activities of issuing initial public offering (IPO) or corporate bonds.

"Up to the end of February 2018 there were two companies conducting IPOs with a total value of Rp201.6 billion, seven institutions issued 23 bond series with total emission value of Rp18.57 trillion, and 10 series of Government Securities (SBN) issuance with a value of Rp42,57 trillion," he explained.

Meanwhile, the number of investors protected by Indonesia SIPF until February 2018 is 794,997 investors based on the number of securities sub accounts (SRE) in PT Kustodian Sentral Efek Indonesia (KSEI).

"The number of investors protected by Indonesia SIPF increased by 32,185 SRE or grew by 4.22 percent," Widodo noted

Source: ANTARA News

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