Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 6

Convergence of Securities Systems, both within countries and across borders, should be encouraged where this eliminates operational risk, reduces cost and enhances market efficiency.

1.	Is the depository linked electronically and in real time with other segments of the core market infrastructure (e.g. trading platforms, netting systems, matching platforms, payment systems)?	Yes, The Depository system is linked electronically and real time with participants, Clearing Corp and Payment Banks. The system includes the participant workstation, based on Web technology. The workstation provides, in a secure way to the participant : an efficient vehicle to input instructions into the system a comprehensive range of reports of the services offered by the system user profile management a high level of security
2.	Is there one or more depository or settlement system in the market?	For listed equities, there is only one depository system and one Clearing system that are maintained by KSEI and KPEI (Clearing & Guarantee Corporation) respectively. Bank Indonesia (BI) maintains the central depository function, exclusively for Sertifikats Bank Indonesia (SBI), and Government Recapitalisation Bonds.
3.	If there are several, has a consolidation been considered? If yes, by when?	As at now, no plan yet.
4.	Does (do) the securities system(s) allow other domestic or foreign systems to establish direct links on an equal basis to local members?	No. However, a Memorandum of Understanding is presently in place with Singapore Depository (CDP). Both KSEI and CDP are reviewing the best alternate links between the two institutions and the terms and conditions for each respective service.
5.	Does (do) the securities system(s) allow foreign market participants to become direct participants?	No, it should be under custodian banks.