JSF Announces Capital Participation in Indonesian Securities Finance Company
PT Pendanaan Efek Indonesia Based on Enhanced Cooperation
with Indonesia Stock Exchange GroupTOKYO, August 25, 2020 --- Japan Securities Finance Co., Ltd. (JSF) is pleased to announce its
agreement with Indonesia Stock Exchange (IDX) Group (the Indonesia Stock Exchange, the Indonesia
Clearing and Guarantee Corporation, and the Indonesia Central Securities Depository) and PT
Pendanaan Efek Indonesia (PEI), the sole Indonesian securities finance company, to enhance mutualcooperation in securities financing including capital participation by JSF. Based on this agreement,
JSF determined to acquire a 10% stake (approximately 400 million yen) in PEI. JSF announces that
all the necessary procedures with regard to this capital participation have been completed legally inIndonesia by today.
In Indonesia, the major policy goals for financial services are as follows:
To strengthen the financial services sector to realize the country's medium- to long-term economic
growth and maintain stability of the financial system as a basis for sustainable economic development.
In this context, the Indonesian Financial Services Authority formulated the “Indonesian FinancialServices Sector Master Plan.” In terms of the capital market, the plan aims to improve efficiency,liquidity, and stability, and one of the measures to this extent is enhancement of efficiency of securities
transactions and settlements through securities financing.
Specifically, a project to establish and operate a securities finance company in Indonesia has been
implemented since 2014, and in December 2016, PEI was established by IDX Group. After preparing
for business launch as well as obtaining the necessary administrative license, PEI commenced
providing margin loans to securities companies in October 2019.
Since the beginning of this project, JSF has actively and continuously provided support as an
infrastructure of the Japanese securities market under the viewpoint of contributing to the sustainable
development of the Indonesian securities market and its infrastructure and international financial
cooperation between Japan and Indonesia, as well as JSF’s new business development and theSustainable Development Goals. Amid this process, JSF has been considering minor capital
participation in PEI as a symbol of the cooperative relationship with IDX Group to be established andexpanded and the basis for developing the financial markets of both countries. Based on these thoughts,
JSF acquired a 10% stake in PEI after obtaining the necessary administrative approval from theIndonesian Financial Services Authority in April 2020. As a framework for effective cooperation, theAdvisory Committee was established in PEI through which JSF will participate jointly with IDXGroup in discussing future business development of PEI.
Statement from Yutaka Okada, Managing Executive Officer for International Relations and Business
Development at JSF:
“In utilizing our knowledge and expertise in securities financing, we will further support businessdevelopment of PEI and IDX Group based on the enhanced cooperation framework which includes
JSF’s capital participation in PEI. At the same time, we would like to contribute to the sustainable
development of Indonesia’s economy as well as its financial and securities markets.”
The impact of this capital participation on the business performance of JSF is minimal.
----- end ----<About JSF>
Japan Securities Finance Co., Ltd. (JSF) is the sole securities finance company in Japan incorporatedin 1950 with a license under the Financial Instruments and Exchange Act. Its main business is theprovision of funds and securities to securities companies for settlement of standardized margintransactions pursuant to the above law, and also provision of securities lending and financing. As aninstitution specializing in the securities finance business, JSF, with a keen awareness of this publicrole, has a mission of contributing to the development of the securities market by proactively meetingthe diverse needs of securities and financial circles and boosting the long-term interests of securities
market participants. JSF’s credit rating is AA- under both Rating and Investment Information, Inc. andJapan Credit Rating Agency, Ltd., and A under S&P Global Ratings. JSF’s stock is listed on the Tokyo
Stock Exchange.
For more information, visit https://www.jsf.co.jp/english/<About PEI>PT Pendanaan Efek Indonesia (PEI) is the sole securities finance company in Indonesia incorporated
in 2016, established by Indonesia Stock Exchange (IDX) Group (the IDX, the Indonesia Clearing andGuarantee Corporation and the Indonesia Central Securities Depository) within the framework of theIndonesian Financial Services Authority’s “Indonesian Financial Services Sector Master Plan 20152019” to enhance efficiency and stability in the financial services sector and as part of the “IDX Master
Plan 2016-2020.” PEI will act as a fund and securities provider for securities companies and aims atimproving liquidity, transaction value, and market capitalization in Indonesia.
For more information, visit http://www.pei.co.id/en/home/<About IDX Group>Indonesia Stock Exchange (IDX) is the sole Indonesian stock exchange based in Jakarta. As ofDecember 2019, 668 companies were listed, and the total market capitalization was USD 523 billion.
IDX has set as its current goal “Become an acknowledged and credible world-class exchange” andas its mission “Provide infrastructure for fair, orderly, and efficient securities trading that is also
accessible to all stakeholders” to boost the Indonesian securities market. IDX owns several
subsidiaries and associates in the financial market, such as Indonesia Clearing and Guarantee
Corporation and Indonesia Central Securities Depository.
For more information, visit https://www.idx.co.id/en-us/＜Related SDGs＞<Inquiries>
Japan Securities Finance Co., Ltd.
Business Development Department
Phone: +81-3-3666-3083
Email: bddept@jsf.co.jp