CFCL General information – Indonesia
Reference
CFCL eligible fund types
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 money 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 money 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 CFCL. The time for translation might take about two months.
CSD link
No CSD link as the Indonesia market is register only.
Exchange Traded Funds (ETFs)
Exchange-Traded Funds (ETFs) are not permitted and cannot be traded within the Indonesia market.
Operational arrangements
This section describes the operational arrangements of the Indonesia market:
Register Market | Remarks | |
Settlement free of payment | Yes | |
Settlement against payment | Yes | Eligible settlement currencies (between CEU, CBL and CFCL counterparties only): AUD, CAD, CHFa , CNY, CZK, DKK, EUR, GBP, HKD, HUF, JPY, MXN, NOK, NZD, PLN, SEK, SGD, TRY, USD and ZAR. |
a. Settlement in CHF is possible only for non-Swiss securities and not against SIX SIS as counterparty in CEU.