Leading the Field in Services for the Indonesian Financial Market

IDClear — aka PT Kliring Penjaminan Efek Indonesia — was established in 1996 as a clearing and guarantee institution, or central counterparty (CCP), for the Indonesian capital market.

Its vision is to become the leading clearing and guarantee institution known for reliably providing the best services in Indonesia. Under the leadership of President-director Iding Pardi, the firm’s stated mission is to make the country’s capital and financial market safer and more efficient, while delivering value-added services.

Another objective is to be the trusted CCP for exchange-traded, OTC, and bilateral transactions by providing best-in-class infrastructure for clearing, risk management, and collateral management services.

IDClear provides services for securities exchange transactions, such as clearing for equity transactions, clearing and settlement for derivative transactions, and clearing for bonds transactions.

It also provides clearing services for regulated over-the-counter transactions, guarantees and credit-, liquidity-, and market risk-management, securities borrowing and lending, and collateral management.

Other services include institutional delivery, account operator, triparty repo, IPO settlement and distribution as provider of electronic Initial Public Offering System (e-IPO), member interface, mobile clearing and guarantee system (m-CLEARS), and clearing member/participant portal.

IDClear has a strong and sustained synergy with Indonesian FSA to support its role to regulate and to supervise Indonesia’s financial industry activities. This helps IDClear to perform its strategic mission that rests on the principles of securities regulation.

Those principles are based on three objectives:

• Protection for investors
• Ensuring that markets are fair, efficient and transparent
• Reducing systemic risk.

For more than two decades, IDClear has responsibly carried out its role by providing a best-in-class service for the domestic capital market. It has effectively managed the risks that may arise from any transaction or transaction-settlement process.

Backing these services are innovations in technology, including the development of clearing and settlement systems accompanied by increased system capacity to support e-IPOs.

The development of Indonesia’s industry and economy has enabled IDClear to expand its activities to cover other financial supporting services, with the approval of the Indonesian FSA and in accordance with all laws and regulations. In 2020, IDClear marked another milestone by expanding its role as CCP of the OTC Derivative market to support the government’s programme to develop integrity, efficiency, and transparency on the money market.

This proven track record has been strengthened with the appointment of IDClear by the Central Bank of Indonesia as the clearing organiser for the transactions of all government bond instruments, and implementation of a clearing system connected to the BI-SSSS system.

In addition, Bank Indonesia has given in-principle approval for IDClear to act as a CCP for over-the-counter interest- and exchange-rate derivatives transaction; this expands IDClear’s services in capital and financial markets.

IDClear always prioritises best practice in the principles of good corporate governance, including the achievement of ISO 37001: 2016 (certification on Anti-Bribery Management System — GCG).

With its commitment to the development of shariah capital markets, IDClear obtained a fatwa from Indonesia Ulama Council (MUI) on the Application of Sharia Principles in the clearing and guarantee mechanism of exchange transactions settlement on equity securities.

IDClear plays an active role in encouraging the development of sustainable capital markets by prioritising the green economy and ESG practices. It drives paperless reporting and collaborates with all stakeholders to accelerate green economy programmes.

IDClear continues to improve the quality of its services and products, and strives to innovate services and products to meet, and exceed, market expectations. As an institutional developer, IDClear strives to improve infrastructure, research and development, and implement international standard best practices as a central counterparty.

IDClear is wholly owned by PT Bursa Efek Indonesia. In accordance with capital market law, the Indonesian government designated IDClear as a self-regulatory organisation (SRO), together with IDX and Indonesia Central Securities Depository (KSEI).