Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 3

The industry worldwide must satisfy the need for efficient, fast settlement by full adherence to the International Securities Numbering process (ISO 6166) and uniform usage of ISO 15022 based standards for all securities messages. The industry should seek to introduce a global client and counterpart identification methodology (BIC - ISO 9362) to further facilitate straight through processing. Applications and programmes should be structured in such a way as to facilitate open inter-action between all parties.

1.	Does the market use ISIN as the primary securities identification code?	Yes.KSEI is a member of ANNA Association to issue ISIN Codes for all securities listed in Jakarta and Surabaya Stock Exchange (JSX & SSX).
2.	Are the major participants in the market linked electronically?	Yes, 191 Securities Companies and 18 Custodian Banks are link electronically to C-BEST (KSEI’s book entry system). Please see our answer no.2b.
3.	Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging?	See no 4.
4.	Does the market operate standard identification codes for counterparties or client accounts and, if so, how do (or could) these fit into a single global identification methodology?	3 & 4 : locally market participants use local code as a reference, however for international settlement KSEI as the national securities number agency also issues ISIN for all listed stocks in the exchanges for the single global identification methodology.