Synergy Between Banking & Capital Markets


Following AKSes Facility (Securities Ownership Reference) socializations in Surabaya, Yogyakarta and Semarang, Indonesia Central Securities Depository (KSEI), visited Bandung. Located 140 km southeast of Jakarta, Bandung is the third most populated cities in Indonesia, after Jakarta and Surabaya.

Named the Kota Kembang (City of flowers), Bandung is also known as a shopping city, with malls and factory outlets throughout the city, and is now slowly being recognised as a culinary city. Bandung is one of the primary destinations for tourism and education. In addition to the constantly-developing industrial sector, the trading and services sectors also play an important role in its economic growth.

Based on the data from the Bandung Central Bureau of Statistics (BPS), Banks operating in Bandung as of 2013 was dominated by national private banks with a total of 327 offices or around 45.86%. Meanwhile, there are 237 Government Banks’ offices or around 33.86%, approximately 10% are owned by Rural Banks, while the remaining are owned by foreign banks and Regional Development Banks. Based on banking principle, currently there are 630 conventional bank’s offices and 73 Islamic bank’s offices in Bandung.

Thus, Bandung has attracted interest from both foreign and domestic investors. As of the year 2013 there were 40 investment projects in the city, consisting 27 foreign investment projects with an investment outlay of 184 billion dollars, and 13 domestic investment projects with its investment outlay realization of up to 1.5 trillion rupiah.

Total number capital market investors in this city ranked second after Jakarta out of all the other provinces in Indonesia, with more than 60 thousand investors from approximately 400 of capital market investors.

To improve the quality of service and ease of investing for the capital market investors in Bandung, West Java, today Indonesia Central Securities Depository (KSEI), PT Bank Permata Tbk (PermataBank) and PT Trimegah Securities Tbk (Trimegah Securities) introduced a funds withdrawal instruction facility through ATM. This facility is an extension of AKSes (Securities Ownership Reference) Facility Co-Branding cooperation conducted by KSEI, PermataBank and Trimegah Securities.

This facility was officially launched on March 30th, 2015 by the Chief Executive Officer of the Capital Market Supervisory of Financial Services Authority (FSA), Nurhaida, and was attended by representatives from several Indonesia capital market’s participants. The event was organized with a live demo of the facility being accessed from three locations, namely the Main Hall - IDX, Jakarta; Trimegah Securities’s Office in Artha Graha Building, Jakarta; and ATM at PermataBank’ Branch Office in Makassar. The live demo illustrates that investors can submit a withdrawals instructions from any location where an ATM machine is available. This is especially useful if there is an urgent need to withdraw their cash.

Source: KSEI

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I'm Burhan Turnip, an investment junkie based in Jakarta, Indonesia. This is my take on writing Indonesia investor blog. Let's break down investing topics in Indonesia. Get in touch with me via burhanturnip [at] gmail [dot] com

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