KSEI Immediately Realizes Integrated S-Invest System that Facilitates Mutual Fund Purchase

To support the mutual fund industry in the Indonesian capital market, PT Kustodian Sentral Efek Indonesia (KSEI) as the Depository and Settlement Institution (LPP) plans to develop an integrated investment management system (S-Invest). The supporting infrastructure includes instructions for buying or selling mutual fund units through ATM networks, Internet banking and mobile banking. To realize other capital market infrastructure development plans, KSEI has allocated Rp 200 billion for capital expenditures.

"It is planned that in 2016 additional features will be developed, including instructions for buying/selling mutual fund units through ATM, Internet banking and mobile banking networks," said Margeret Tang, President Director of KSEI to Time.

It is expected that all business processes and flows can run smoothly and efficiently. For this reason, support from related parties such as agents, investment managers, custodian banks and securities companies as users of the S-Invest system is very necessary.

S-Invest itself is part of the AKSes Financial Hub, which has previously partnered with a number of banking parties since 2013 with the aim of providing comprehensive access to the public who wish to invest in the capital market.

Integrated investment processing system

So far, people who are interested in investing in mutual funds are still doing it themselves by utilizing selling agents and investment managers (MI) who generally use their own system. To anticipate the development of securities transactions in the capital market and the increasing number of issuers and investors, KSEI developed the main system for the C-Best NEXT-G project.

"The system, which is expected to be completed by the end of 2016, will be able to handle up to 3 million investors with a settlement processing capability of 20.000 transactions per minute, or more than 6 times the capacity of the system currently used," said Margeret.

To support the overall performance of the mutual fund online system, the Financial Services Authority (OJK) is targeting an integrated investment management system Net Funds can be used in June 2016. Later Net Funds functions to make transaction processes efficient in the mutual fund investment management industry working online such as stock market activities.