CENTRAL COUNTERPARTY (CCP) SERVICE EXPANSION OF PT KLIRING PENJAMINAN EFEK INDONESIA TOWARDS OVER THE COUNTER MARKET AND PRODUCT

• Main Author: Sudipta Kaban, Haga
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/49198
• Institution: Institut Teknologi Bandung

Global financial crisis happened between 2007 to 2009 was allegedly caused by the lack of transparencies of prominent market makers of Over the Counter market which affected comprehensive impact to global economy. As a response, G20 leaders had instructed reformation of Over the Counter market and product including standardization, trading through designated exchange, and clearing through Central Counterparties (CCP). One of CCP in Indonesia, PT Kliring Penjaminan Efek Indonesia (KPEI) has been serving Indonesian capital market industry since 1996 where securities companies are the main customers. The company has engaged in Over the Counter market for retail government bond and extended its customers to banks. However, the expected standardization of G20 has not yet successfully been realized as can be seen by low transaction frequencies and clearing through PT Kliring Penjaminan Efek Indonesia and only happened in the first month since the business implementation. Therefore, this study aims to identifying external and internal environments of PT Kliring Penjaminan Efek Indonesia, formulating new business strategy and business model to engage in OTC market. It used qualitative methodology through direct observation from September 2019 until July 2020, interview with a director, focus group discussions with 12 people representing 8 banks as potential customers, content analysis, and secondary data. The obtained data was analyzed using PESTEL and Porter’s Five Forces as the external environment analyses tools and VRIO as the internal environment analyses tool which led to construct SWOT analyses. It was then the base reference to formulate business strategy optimizing Strategy Diamond and Business Model Canvas. The results are proposed business focused differentiation strategy and business model improvement for PT Kliring Penjaminan Efek Indonesia to serve Over the Counter market utilizing the Strategy Diamond and knowledges from both comparative studies and current market makers of Over the Counter market.