Investment Fund Market Guide – Indonesia
Key features (Register market)
| Yes/No | Remarks |
Settlement free of payment | Yes |
|
Settlement against payment | Yes | Refer to CBL’s Eligible currencies and the fund currency specified in fund prospectus. |
Disclosure Requirements | Yes | Refer to Disclosure Requirements – Investment Funds – Indonesia. |
Restrictions on customer | No |
|
Restrictions on market | Yes | Refer to Holding Restrictions – Investment Funds – Indonesia. |
Restrictions on settlement | No |
|
| Remarks |
Market type / link type (Settlement link) | Register market |
Eligible fund types in CBL | Register market: Collective Investment Contract, open-ended mutual fund in corporate form, Islamic/Sharia compliant investment fund CSD link: n/a |
Eligible fund types in CBL
Register market
Under the law of Indonesia, an investment fund is commonly known as a mutual fund. A fund may be established as either a corporate or collective investment contract (Kontrak Investasi Kolektif, KIK).
The investment manager pools money from investors by selling them mutual fund shares, and the monies pooled are often invested in various securities traded on the stock exchange and money market instruments. For open-ended corporate mutual funds, investors are allowed to sell back their shares to the investment manager.
Likewise, a KIK mutual fund pools money by issuing participation units to the investors, where the funds raised will be used to purchase various securities on stock exchanges and money markets.
Islamic Sharia compliant funds pool monies from public investors for investments in securities that comply with Sharia capital market principles. Such Sharia investment funds can exist in either corporate or collective investment contract forms.
Some fund prospectuses in Indonesia might be in Bahasa Indonesia where lead time is required for translation into English before these funds can be accepted in CBL. The time for translation might take about two months.
Account structure
Clearstream Banking can act as the intermediary for customers interested in Indonesian funds. With each of the fund management companies, CBL will open segregated accounts for each customer by applying for a unique “Investor Fund Unit Account – IFUA” number, attached to Clearstream Banking’s Single Investor ID (SID).