Fixed Income - Clearing

The type debt securities traded on the Indonesia Stock Exchange (IDX) and cleared by KPEI include corporate bonds, government securities, corporate sharia bonds (sukuk), state sharia securities/sukuk and asset-backed securities.

The type of debt securities definition as mentioned above is as follows:

  1. Corporate bonds are bonds issued by the local Private Company and public enterprises, including State Owned Enterprises (SOEs)
  2. Government Debt Securities are securities issued by the Government according to the Law No. 24 Year 2002, consisting of:
    a. Government Bond (including Retail Government Bond / ORI)
    b. Indonesia Treasury Bills (SPN)
  3. Corporate Sukuk are fixed income instruments issued based on Islamic principles in accordance with Bapepam-LK Np. IX.A.13 about Islamic Securities.
  4. Government Sharia Securities (SBSN) or Sukuk are securities issued by the Government based on Islamic Sharia in accordance with Rule No.19 Year 2008 on the Government Sharia Securities (SBSN).
  5.  Asset Backed Securities (ABS) are debt securities issued with Underlying Assets as the basis for the issuance.

BONDS TRANSACTION CLEARING

In calculating the rights and obligations of debt securities transactions, KPEI uses two methods of clearing: clearing by netting, and per-transaction. Both of these methods can be used for rights and obligations fulfillment in cash and or securities, either in the Regular and Negotiation Market.
The rights and obligations value calculation is performed by KPEI in the following manner:

Description:
•  Clean price : bond transaction value excluding accrued interest calculation
•  Accrued interest: An amount which becomes the seller’s right when transaction occurs between two bond coupon payment dates.
                               The calculation base for bonds always follows 30 days each month and 360 days each year
•  AK-EBU : Bonds Clearing Member

In carrying out the clearing process, KPEI system uses the web-based Electronic Bond Clearing System (e-BOCS). The system provides clearing results information in the form of DHK only for Clearing Member (AK) level. In addition to clearing function, e-BOCS also run the transaction’s affirmation-confirmation process, tax administration, issues settlement instructions and publishes reports. To access e-BOCS, AK requires a user ID, password and certain keyfile.
To access KPEI Rules governing the bonds transaction clearing, click here.

The bond transaction clearing mechanism is presented below:

CALCULATION SIMULATION OF BONDS TRANSACTION’S RIGHT AND OBLIGATION: