In one of the historic events in the Indonesia capital market on August 5, 1996, a Clearing and Guarantee Institution (LKP) was founded with the name of Indonesia Clearing and Guarantee Corporation (KPEI) by notary deed dated Number 8 dated August 5, 1996. KPEI was inaugurated as legal entity on September 24, 1996 through ratification from the Minister of Justice of Republic of Indonesia. Currently, 100% of the KPEI paid up capital is owned by the Indonesia Stock Exchange (IDX) with authorized capital of Rp500 billion and a total paid-up capital of Rp200 billion.
KPEI as one of the Self-Regulatory Organization (SRO) under the supervision of the Indonesia Financial Services Authority (IFSA), is given the authority to make and implement regulations related to its function as LKP in Indonesian capital market. This is in accordance with the mandate of the Capital Market Law No.8 Year 1995, which states that the task of LKP is to provide exchange transaction clearing and settlement guarantee services in an orderly, fair and efficient manner as well as other services on IFSA’s approval.
KPEI in Indonesia capital market industry serves as LKP who performs exchange transaction clearing and settlement guarantee function. The clearing activity is done through a process of determining the rights and obligations of stock exchange transactions, for each Clearing Member (AK) which must be settled on the settlement date. The exchange transaction settlement guarantee function is done by providing legal certainty for the fulfillment of rights and obligations for AK arising from securities exchange transactions.
KPEI continuously improves the quality of services and products and strives to innovate on every service and product to meet market expectations. As part of institutional development, KPEI always performs infrastructure development, research and development, and strive to apply international best practices as Central Counterparty (CCP).