The capital market in Indonesia has its own structure or strata. Each level in the capital market carries out its respective duties and roles. Regarding the capital market, I have already discussed the full explanation. You can read here: Capital Market: Definition, Benefits, Functions, and Structure of the Capital Market. The following is a picture of the structure of the capital market in Indonesia.
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Image source: www.idx.co.id (Click image to enlarge) |
The following are the functions and duties for each level in the Indonesian capital market:
1. Financial Services Authority (OJK)
In the capital market structure, OJK has the highest position. OJK carries out the following duties and supervision:
a. Financial services activities in the banking sector
b. Financial services activities in the capital market sector
c. Financial services activities in the insurance sector, pension funds, financing institutions and other financial service institutions.
2. Self Regulatory Organization (SRO)
SRO is an organization that has the authority to make regulations related to its business activities. There are 3 SRO institutions, namely the Stock Exchange, the Indonesian Clearing Guarantee Institution and the Depository and Settlement Institution.
a. stock Exchange
Stock Exchange is a party that organizes and provides a system and means to bring together offers to buy and sell securities of other parties (brokers and dealers) with the aim of trading securities between them. The Stock Exchange is the provider of securities trading media such as stocks.
The stock exchange has the task of regulating the course of stock exchange trading so that it runs safely, regularly and efficiently. Stock exchanges must also regulate and supervise securities trading procedures and regulate requirements for securities traded on the exchange through stock exchange regulations.
The Indonesia Stock Exchange (IDX) is the result of the merger of the Jakarta Stock Exchange (JSX) and the Surabaya Stock Exchange (BES), which were merged on November 30, 2007 and changed its name to the Indonesia Stock Exchange (IDX).
b. Indonesian Clearing Guarantee Institution
This institution was established with the aim of providing regular, fair and efficient clearing and guarantee services for the settlement of stock exchange transactions. Currently, there is only one institution that has received a business license as the Indonesian Clearing Guarantee Institution by Bapepam, namely PT Kliring Penjaminan Efek Indonesia (KPEI). KPEI has the authority to make regulations regarding clearing activities and guarantees for settlement of stock exchange transactions.
c. Depository and Settlement Institution
This institution was established with the aim of providing central custodial services and transaction settlement in an orderly, fair and efficient manner. Currently, there is only 1 Depository and Settlement Institution inaugurated by Bapepam, namely PT Kustodian Sentral Efek Indonesia (KSEI). KSEI is tasked with making regulations for central custodian services, securities transaction settlement services, and other related services.
3. Securities Companies
A securities company is a company that has a business license from Bapepam to carry out its functions as a securities underwriter, securities broker, or investment manager.
4. Capital Market Supporting Institutions and Capital Market Supporting Professionals You can see here: Various Capital Market Supporting Institutions
5. Share Trading Actors are divided into two. You can read the article here: Capital Market Players.
