•    HOME   
•    NEWS   
•    BUSINESS   
•    INTERNATIONAL   
•    TECH   
•    SPORTS   
•    LIFE & TIMES   
•    OPINION   
•    MY JAKARTA   
•    BLOGS   

The Indonesia Clearing and Guarantee Corp (KPEI) said on Monday that it was ready to manage the proposed insurance fund to protect investors from fraudulent financial products, if it were appointed to do so by the board of the Indonesian Stock Exchange.

On Monday, KPEI president director Hoesen said the firm’s experience in managing guaranteed funds on the local bourse put it in good stead for the job.

The exchange’s director of development, Friderica Widyasari Dewi, had said earlier that the IDX planned to appoint one of the three regulatory organizations in the capital markets to manage the investor-protection fund.

The other two are the Indonesian Central Securities Depository (KSEI) and the IDX itself.

“But we haven’t decided which agency will manage the funds,” Friderica said on Friday.

Last week, IDX president director Ito Warsito said the exchange may create the fund by the second quarter of 2010.

Friderica said there would be more intensive discussions with all the three regulatory organizations and the Indonesian Brokerage Firms Association (APEI) to define the entity and determine the initial capital and fees levied on investors.

Hoesen had earlier said that ideally, the body chosen to manage the fund would be independent and created under a new act.

He cited as an example the creation of the Securities Investor Protection Company (SIPC) under the Investor Securities Protection Act in the United States.