PT Kustodian Sentral Efek Indonesia(Indonesian Central Securities Depository)Indonesia Stock Exchange Building 1st Tower 5th FloorJl. Jendral Sudirman Kav. 52-53,Jakarta 12190 - IndonesiaPhone: (62-21) 5299 1099, Fax: (62-21) 5299 1199

www.ksei.co.id

Indonesian CentralSecurities Depository

ProfilePT Kustodian Sentral Efek Indonesia

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Content

KSEI at a glance

KSEI Services     C-BEST System 

Human Resources        CorporateManagement             Education Programand Social Activities     

Profile P

T K

ustodian Sentral E

fek Indonesia

As a Central Securities Depository Institution in the Indonesiancapital market, KSEI is committed to consistently increase

and improve its service and performance for the excellence.

In its 10th anniversary, KSEI promotes a new corporate spiritthrough the introduction of the new logo that takes the form

of thick circles with the core circle in the middle.The logo symbolizes trust as the core value that KSEI upholds

with the continuous spirit and dynamism to fulfill its new mission and vision.

Now KSEI is optimistic to move forward into the future inorder to become an internationally standardized centraldepository and Securities transaction settlement service

provider.

KSEI at a glanceKSEI continues to endeavor in optimizingthe development of the capital market in Indonesia

PT Kustodian Sentral Efek Indonesia (KSEI) was established on 23 December 1997and then on 11 November 1998, KSEI received its operating license as a CentralSecurities Depository Institution from the Capital Market Supervisory Board andFinancial Institution (Bapepam-LK).

By virtue of Law Number 8 of 1995 on Capital Market, KSEI functions as a providerof orderly, fair and efficient central Securities depository and transaction settlementservices. As a non-profit organization and a Self Regulatory Organization (SRO),KSEI endeavors to support and contribute to the development of the Indonesiancapital market particularly to the national economy. Along with the Stock Exchange and the Clearing and Guarantee Institution, since17 July 2000, KSEI has been successful in implementing a breakthrough in scriplessSecurities trading in the Indonesian capital market. This scripless trading providesbenefit to capital market players, among others are to increase security factor, reducetransaction settlement risk, reduce cost and provide an easier and faster corporateaction distribution.

In addition, to promote efficiency and in anticipating the dynamic development of thecapital market, KSEI introduced The Central Depository and Book-Entry SettlementSystem or known as C-BEST. This system is an integrated electronic platformsupporting the scripless Securities depository and transaction settlement throughbook-entry in the Indonesian capital market. 

C-BEST is a new step to provide central depository services that is inseparable fromthe Indonesian capital market. It is expected that this breakthrough will allow KSEIto continuously enhance the quality of their services. Supported by the C-BEST, KSEItogether with PT Bursa Efek Indonesia (BEI) and PT Kliring Penjaminan Efek Indonesia(KPEI) become part of a comprehensive and integrated system in facilitatingtransparent, efficient and reliable Securities transactions.

As of 31 December 2007, 36% shares of KSEI were held by Custodian Banks, 33.5%by Securities Companies, 26.5 % by SRO (BEI and KPEI) and 4 % by Registrars.

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Mission, Vision and Core ValuesEnvisioning the future and leveragingon the spirit of cooperation in executing the mandateto reach the highest dreams

MissionTo actively take role in realizing a globally competitive capital market in Indonesia.

VisionTo become a reliable central depository with a regional competitiveness. Reliablemeans that KSEI is able to deliver fair, secure, accurate, orderly and prompt services.To be competitive in the regional level, KSEI exerts to provide innovative and efficientservices that suit to the regional market development and customers’ needs.

Core Values

Integrity, reflecting integrity in business and personal interaction, through honest,trustful and professional actions.

Excellence, dedicated to excellence in the performance of the company and as anindividual. Every individual working at KSEI is expected to achieve the best, to becompetent in fulfilling his/her duty and be professionally accountable to serve thecustomers’ needs.

Continual Development, to achieve sustainable development through continuouslearning. Oriented towards self-improvement, continual independent learning as wellas managing and sharing knowledge are the key elements.

Togetherness, to reach harmony in fulfilling the company’s purpose. Mutual accordis upheld to put forward the company’s interest above personal interest, in which allKSEI staffs are expected to endorse the collective decision and respect and trust aswell as care for others.

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For the past decade, KSEI has been able to respond to the fast growing demandsof the market. The rapid development of the capital market has shown a promisinggrowth. As the capital market progressed swiftly, KSEI has a future outlook to fostertogetherness in carrying out its duty. This has become more apparent as the tradingof paper-based Securities was replaced by scripless trading supported by the KSEIsystem (C-BEST).

As the services of KSEI further developed, the former logo of KSEI -depicting a pileof securities paper- was deemed obsolete and no longer reflecting the new mission,vision and core values of KSEI. The scripless era beginning in July 2000 has inducedKSEI to change its logo.

In celebrating its 10th anniversary, KSEI is taking advantage of this momentum tointroduce a new logo that takes the form of thick circles with the core circle in themiddle. The shape of a core circle reflects the central function as a prudent andorderly institution. The thick circles covering the core circle symbolize the layeredprotection in accordance with the international standard in order to safeguard themandate entrusted to KSEI.

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The maroon color of the thick circles reflects maturity and professionalism of KSEI.The orange color in the core circle symbolizes the spirit and dynamism of KSEI. Thesilver color of the helvetica condensed font represents transparency that is orientedtowards modern technology and high security.

In relation to the launching of the new logo, a new tagline is introduced: “Aim HighWith New Spirit” that carries the new mascot ’SPICO’ (Spirit and ContinualDevelopment). The spirit brings forward the continuous development in order toaccomplish the company’s mission and vision.

KSEI ServicesDiverse development to enhance satisfactory services

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Central Point of DevelopmentAs a Central Securities Depository Institution, KSEI strives continuously to diversifyits development of services to enhance customers’ satisfaction by providing secureand efficient services to the capital market players, enabling KSEI to be at level withworld-class institutions.

KSEI services cover: Securities account administration, Securities transactionsettlement, distribution of corporate action proceeds and other services such as: PostTrade Processing and central depository service reporting. To ensure secure and convenient services for the investors in the capital market,from the initial stage of its development, KSEI has been successful in applying andoperating The Central Depository and Book-Entry Settlement System (C-BEST). Thissystem is an integrated electronic platform that supports the settlement of Securitiestransactions through book-entry settlements in the Indonesian capital market.Furthermore, this system converted all the paper-based Securities to electronicrecords. Since June 2002, KSEI has finalized the conversion program of the Securitiesin the stock exchange from paper-based to scripless.

At the end of 2007, the overall asset value of Securities in C-BEST were valued atRp 1,298.25 trillion, a significant growth of 66% from Rp 781.05 trillion in the previousyear. Those assets comprised of Shares valued at Rp 1,191.33 trillion, CorporateBonds worth Rp 79.66 trillion, the Government Bonds valued at Rp 10.67 trillion,Sukuk valued at Rp 1.02 trillion, Mutual Funds valued at Rp 578.04 billion, BankIndonesia Certificates worth Rp 1.39 trillion, Warants valued at Rp 10.37 trillion,Rights totalling Rp 8.11 billion, Medium Term Notes valued at Rp 2.94 trillion andNegotiable Certificate of Deposit valued at Rp 256.49 billion.

As the number of traded Securities increased under the C-BEST system and toensure the continuous operations, KSEI has operated the Disaster Recovery Center(DRC) since 13 September 2001. The DRC is placed separately from the mainsystem, to serve as the back-up system in case of emergency. The DRC system hasa work process and capacity that is similar to the main system. The two systems areautomatically interchangeable if one fails.

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Sustainable growthExpanding its services has always been the foundation for KSEI’s exponential growth.This impressive growth has motivated all levels of management to be innovative-driven in delivering their services. By applying prudent and careful measures, KSEIhas successfully implemented the Post Trade Processing (PTP) facility since July2004. This facility rests on the C-BEST platform to allow the Investment Managerscommunicate with members of the stock exchange market and the Custodian Banks.The PTP facility is an initial step towards Straight Through Processing in standardizinga global settlement transaction process in the Indonesian capital market industry.

KSEI plays an active role in promoting the advancement of the Indonesian capitalmarket industry. Since January 2004, KSEI has provided the e-monitoring applicationsystem for routine reporting of Mutual Funds to Bapepam-LK that is mandatory forCustodian Banks in transacting Mutual Funds.  Since January 2005, the system hasbeen continuously developed by adding various features such as the alert functionapplied by the Bapepam-LK as a monitoring tool and as reference for the pricing ofCorporate Bonds used by Investment Managers in calculating the net value of theMutual Funds.

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In addition, KSEI offers the Online Research and Centralized Historical Data (ORCHiD)facility that allows the account holders to process the data from the C-BEST for analysis,research, reporting and audit purposes. Another facility provided in the ORCHiD is theData Tabulation Center that supports ORCHiD’ s function as the center for dataprocessing of C-BEST. KSEI at all times distributes the corporate actions promptly and in accordance with thedate set by the Issuers. In 2007, KSEI managed to distribute 1,764 corporate actionsefficiently in terms of time and cost to the Securities holders that get benefit from KSEI’stimely services.

To support the market growth, KSEI has effectively disseminated up-to-date informationon corporate actions and other developments through e-mail and other informationaccess known as the Emiten Area. This facility allows the Issuers to access informationrelated to the Issuer’s Securities, including access to data of the daily changes onownership, list of Securities owners, and data on Securities used as collateral.

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Throughout 2007, KSEI has distributed payment of funds, such as dividend, exerciseand interest amounting Rp 70.39 trillion and USD 209.15 million to all account ofentitled parties. The corporate action distribution in terms of Securities, was consistedof 50.01 billion unit of Shares, 6.34 billion unit of Warrants and 39.57 billion unit ofRights. To keep up with the pace of capital market industry. KSEI continues to seek opportunitiesto create products and services to meet the market needs. In line with this, KSEI hasbeen appointed as a Sub Registry of Bank Indonesia that enables KSEI to manageand settle Government Bonds transactions (SUN).

As the number of SUN transactions increases, KSEI is motivated to take advantageof the open opportunity to expand its services. In August 2006, KSEI released a newservice to handle the administration and settlement of SUN transactions outside themarket or known as over the counter transactions.

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To complement this service on the 1 May 2007, KSEI also started in handling thetransaction settlements of SUN in the stock exchange. The transaction mechanismis similar to the settlement services for corporate bonds provided by KSEI since 2000through the book-entry settlement.

Following the services for SUN transactions, since 16 March 2007, KSEI offeredservices in managing and settling the transactions of Bank Indonesia Certificates.

Observing the dynamic growth of the Indonesian capital market, KSEI is active informulating new instruments to develop a more attractive capital market. KSEIlaunched a new depository and settlement service of, the Exchange Trade Fund orETF.  After going through the process of “Rule Making Rule”, Bapepam-LK endorsedthe Rules of KSEI as a legal basis for collective depository of Mutual Funds. Theregulation for this facility is stipulated in the KSEI Board of Directors’ Decree numberKEP-012/DIR/KSEI/0807 dated 21 August 2007.

As of December 2007, there were 2 (two) ETFs recorded in C-BEST that were tradedin the PT Bursa Efek Indonesia. It is expected that the growing number of differentinstruments traded in the market will become more attractive for investors to investin Indonesia.

KSEI Service Quality AssuranceTo ensure and enhance the service quality, KSEI regularly conducts Customer Surveysthrough questionnaires, direct visits to customers and Focus Group Discussions withthe representatives of KSEI customers. Through these activities, KSEI gains valuableinputs as part of the evaluation, assurance, and improvement of the service qualityand these surveys serve to identify the need to develop new products and services.

KSEI’s commitment to maintain service quality and achieve international servicequality standard is proven by the ISO 9001:2000 certification that was awarded toKSEI in July 2003.  In 2007, KSEI also retained the certification under a surveillanceaudit process by PT SGX Indonesia in April and October 2007 with satisfactory results.

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C-BEST SystemThe important role of technology in respondingto the capital market development

In the financial business world, there is a famous saying: technology creates its ownmarket, which means technology has an important role in the capital market.

Securities trading as a global business has motivated KSEI to be an active SRO inthe Indonesian capital market and to adapt to the development of technology.Particularly, the enactment of Law Number 8 of 1995 on Capital Market has openedthe opportunity for scripless trading which has now been practiced for more than tenyears. In responding to fast-growing capital market in Indonesia, KSEI has placed priorityon the development of information technology. As one of the facilitators in theIndonesian capital market, KSEI constantly develops the application of technologyto support its services.

Since C-BEST was launched in July 2000, the total assets recorded by C-BEST (dataper 31 December 2007) reached Rp 1,298.25 trillion. This is only possible due to thefeatures of C-BEST that integrates and develops new modules as required by themarket. To ensure the quality and reliability of the services, and in response to thegrowing capital market, the C-BEST system is regularly upgraded from time to time.

To support the ever-increasing variety of services offered, KSEI continuously expandsand improves its information technology.  For example the Real Time Straight ThroughProcessing Connection allows the C-BEST system to communicate through host-to-host connection with the account holder back-office system. Under this system, thehuman factor is minimized in delivering and receiving transaction messages.

The implementation plan of The Central Fund Settlement System (C-TRUST) is alsoone of focuses at KSEI. This system allows fast, secure and efficient transactionsof Mutual Funds. It is expected that the Mutual Fund industry in Indonesia can continueto expand with the support of such system that becomes even stronger.

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Human ResourcesCommitted to maintain trust for further advancement

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The world of the capital market is a dynamic and ever-growing world that is indicated bythe continuous innovations of new investment instruments and the rising value and amountof the securities traded that needs to be supported by state-of-the-art technology. Therefore,in order to maintain the trust from the capital market players, all KSEI personnel arecommitted to strive for continual self development.

The number of KSEI employees is a real example of the correlation between the elementsmentioned above. Prior to the scripless trading era, the number of employees reached 300people. However, since the introduction of scripless trading, the number of staff has shrunkto only 83 personnel.

The management is aware that besides the importance of advancement in technology,human investment is also a key element in the success of the company. Sustainabledevelopment of the human resources is part of the strategic business plan of KSEI. Themanagement is highly committed to cultivate and internalize the corporate culture. This alsomeans that the management must apply an integrated system in recruiting and developingthe staff as well as the management.

Upholding the principles of human resources management, KSEI has been able to createa favorable work atmosphere in which the relationship among employees and the interactionbetween the employees and management -based on mutual trust and commitment- promoteshigh productivity.

Together with other SROs, KSEI has been able to respond to the rapid development of thecapital market. Owing to the full commitment of KSEI’s management to enhance thecompetence of the employees, many of the staff from both the core divisions and supportdivisions were given the opportunity to take various training courses both in-country andoverseas.     KSEI has also implemented a performance assessment system using the 360 degreemethod that assesses and evaluates employees based on their competence. This method-that has been implemented for approximately 4 years- yields fair results for all personnel. For example, the Head of a Division and the Head of a Department are evaluated by theirsupervisors, their peers and their direct subordinates. Therefore, the remuneration andcareer development for employees can be objectively assessed based on their workperformance.   In addition, KSEI also applies the Balanced Score Card system which is a performancemanagement tool that assists the organization to translate the vision and strategy to actionplan by using financial and non-financial indicators in the line of cause impact method.

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Corporate ManagementMoving forward with transparent and accountable management

In the modern business world, transparent and accountable management is a must.The commitment to mantain the principles of corporate governance is a must toincrease the shareholders’ value and protect the stakeholders’ interest.    

To achieve good corporate governance, the Directors are assisted by 4 (four)committees. The committees consist of 3 (three) Working Committees and 1 (one)Budget Committee. The Working Committees consist of the Business Committee,the Regulation Committee and the Internal Control Committee. The committeesprovide inputs and advice to the Directors to ensure accountability, integrity andtransparency in carrying out their duty.

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Education Programs andSocial ActivitiesBeing committed to social responsibility, KSEI is activein developing education programs and social initiatives

Being fully aware that the world of capital market has not been fully understood bythe public in Indonesia, KSEI never ceases to promote this business of the future tothe public. Together with Bapepam-LK, Bursa Efek Indonesia and KPEI, KSEI activelyorganizes programs to raise public awareness. These activities are essential toeducate the public on capital market that is basically an alternative source for businessfinancing besides banking institutions and other financial institutions. It is undeniablethat the main target of the Securities market is capital market stakeholders, investor,investor will be and public.

In line with the spirit to aim high for the Indonesia capital market, KSEI together withSROs conduct capital market school that is open widely for public who wants to knowmore about what is KSEI and how  to invest in capital market.

Understanding that younger generation has an important role in capital market in thefuture, KSEI also has a partnership program with higher educations institutions. Theprograms offered to the young intellectuals include seminars, electronic securitiestrading simulations, talk shows, capital market exhibitions, and competition on capitalmarket knowledge. The programs aim to augment public awareness, specially studentsin higher education. By having proper knowledge on capital market, the programhopes the students could share the knowledge on capital market to its neighbor andsociety as agent of change.

KSEI’s social activities also aim to get a better understanding from local investor,mainly related to the investment risk analysis. The programs was conducted incoordination with capital market professional organizations such as Ikatan PialangEfek Indonesia, Asosiasi Emiten Indonesia, Himpunan Konsultan Hukum PasarModal, and Asosiasi Wakil Perantara Pedagang Efek Indonesia.

Apart from giving attention to the development of the capital market, KSEI has takenpart in social activities along with other SROs. In the field of education, KSEI andSROs has been giving in-kind to renovate schools affected by natural disasters,providing scholarship to under privilaged student and building schools. Other socialactivities, KSEI accommodated massive circumcision charity events, fund raising fororphanage and others.

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Profile of the Board ofCommissioners

Arys IlyasChairman

Bachelor in Economics from University of Indonesia in 1976. He is very keen inbroadening his knowledge and skills by participating in courses and seminars bothdomestic and overseas in the field of capital market and taxation. Born in Bima, WestNusa Tenggara, on 21 November 1945. He has held the position of Chairman ofKSEI since March 2004. Before, he was the Head of Transaction and SecuritiesInstitution Bureau (1997-2005) in Bapepam. He is also entrusted the position as theCommissioner of PT Sarana Multigriya Finansial (Persero) since 2005 to today.

Susiana SuhendraCommissioner

Joined KSEI in 2006. She is now the Head of Securities Services of The Hongkongand Shanghai Banking Corporation Limited (HSBC). Her position before it, was Headof Custody and Clearing (2002-2004) of HSBC. Born in Jakarta, on 19 August 1956.She has various experience in banking industry and capital market in Indonesia formore than 28 years. Hold Bachelor Degree in Secretariat/Management andAdministration, she is also keen in gaining knowledge through courses and seminarsin capital market and banking held in-country and overseas.

Uriep Budhi PrassetyoCommissioner

Born in Jakarta on 6 September 1961. Commissioner of KSEI in 2006 and Secretary-General of APEI (2005-now). Joined with PT Dhanawibawa Arthacemerlang (since2005 till present) and he has held the position of Director of Operations. Previously,Director of Business and Development and Director of Information Technology PTMegatech Global Mitrausaha. Joined Boedihardjo Groups (1992-2000); He holdsMBA in International Management from College of Notre Dame, Belmont, California,USA (1992), and also a Bachelor of Science in Mechanical Engineering, from SanFrancisco State University, San Francisco, California (1988).

Profile of the Directors

Ananta WiyogoPresident Director

Born in Roma, Italy, 14 August 1957. Joined KSEI since June 2007. Before that, hewas a President Director of PT Pemeringkat Efek Indonesia (2001-2007). He startedhis career in Atlantic Richfield Indonesia (1987-1989) and Bankers Trust (1990-1995).He was Vice President PT Bank Niaga Tbk (1995-1997), Managing Director NiagaFinance Co. Ltd, Hong Kong (1997-1999), Director PT Tunas Sepadan Investama(1999-2001). He hold MSc in Finance from Bentley College, Waltham, MA, USA(1987) and MSc in Management from Arthur D. Little Management Education Institute,Cambridge, USA. He graduated from Wijawiyata Management, LPPM (1981) andFaculty of Fisheries, IPB (1981).

Trisnadi YulrismanDirector

Born in Jakarta, 26 July 1966. Director of KSEI since 2004. Previously, he was theHead of Jakarta Stock Exchange Internal Audit Division in 2000-2004. Started hiscareer in the Badan Pengawasan Keuangan dan Pembangunan (BPKP) in theProvince of North Sumatera (1987-1990) and in the Province of West Java (1994-1997). He has been participated in many courses and seminars in-country andoverseas. Holding a master degree from IPMI, Jakarta in 2007 and graduated fromSekolah Tinggi Akuntansi Negara (STAN) in 1993.

Risbadi PurbowoDirector

Joined KSEI since June 2007. Born in Ponorogo, on 24 September 1953. Graduatedfrom Economic Faculty of University of Diponegoro, Semarang in 1981. Hold the titleHead Securities Services in PT Bank Mandiri (Persero) Tbk (2005-2007). Before, heheld several critical position in PT Mandiri Sekuritas namely as a Director from 2003to 2005, President Director from 2000 to 2003. Has held important position in severalsecurities company, such as President Director PT Exim Securities (1999-2000),President Director PT Merincorp Securities Indonesia (1992-1999). He started hiscareer in PT Bank Ekspor Impor Indonesia (Persero) (1983-1992).