Definition of Single Invertor Identification
Single Investor Identification which is abbreviated as SID if we translate into Indonesian means Single Investor Identity. Single Investor Identification is a single investor identity that is required in carrying out various activities in the Indonesian capital market, while the party issuing this SID is PT. Indonesian Central Securities Depository (KSEI). This Single Investor Identification or SID is given to every investor registered in the Indonesian capital market, so this SID is like an ID card for investors which is proof that the investor is officially registered in the Indonesian capital market. The SID number is used by investors to be able to transact in the capital market, with SID investors only needing one investor’s identity even though the investor is transacting in various capital market investment products such as stocks, mutual funds, and bonds.
Form of SID (Single Investor Identification)
This SID is the identity of the investor in the form of a combination of 13 numbers and letters, the 13 numbers of this SID are divided into 5 parts, the 5 parts are:
The first part consists of digits 1 and 2, digits 1 and 2 represent the type of investor, while the codes used are CP for corporations, PF for pension funds, SC for companies, MF (Mutual Fund) for mutual funds, IS for banks, ID for individual or individual investors, and OT for other types of investors.
The second part consists of 3 digits, the second part represents investor status, F Code for foreign investors and D code for local investors or domestic investors.
The third part consists of digits 4 to 7, this section represents the date and month of birth of the investor who owns SID
The fourth part consists of the 8th digit to the 13th digit, this section represents the identity of the investor’s transaction or Trading ID, while the last two digits are the identity of the inspection.
Obstacles in the Implementation of Single Investor Identification
The widespread implementation of SID faces a number of obstacles so that there are still many investors who invest in the capital market without an SID, the main obstacle is that this SID is not a requirement to buy mutual funds, so mutual fund investors can invest in mutual funds without requiring an SID, SID only applies as an obligation on investors who transact in the stock market, without an SID, stock investors cannot make transactions because the condition for opening a stock account is to have an SID number, usually the opening of a stock account for the first time by someone directly becomes the process of managing the investor’s SID by a stock brokerage company.
Requirements for SID ownership for mutual fund investors are difficult because mutual fund investors are not listed on the Indonesia Stock Exchange, mutual fund investors buy mutual fund products through banks, mutual fund trading agents, and through investment manager companies. The mutual fund sales system that does not go through one door is an obstacle in implementing this SID, in selling mutual funds, these mutual funds are not only sold by investment management companies, but are also sold through sales agents such as banks, in fact most of the mutual fund purchases are made through banks and from banks. investor data reports not on behalf of investors but on behalf of the bank.
Benefits of Single Investor Identification
SID provides benefits for investors so that this SID should not only be seen as a troublesome obligation, in fact with SID investment activities in the capital market become easier, the conveniences that investors get with this SID include:
– Can easily check the shares owned by investors through the KSEI website, namely at investor.ksei.co.id
– Checking the shares owned by investors can also be done through the bank that is the investor’s RDN account
– If investors want to change brokers, investors can easily own their shares from the old broker to the new broker
– Investor data is recorded in the capital market, which is useful for the development of a better capital market in the future.
How to Make Single Investor Identification (SID)
Making this SID is not complicated, even something that is easy to do, there are no difficult and burdensome requirements, we can make SID easily, as for how to make SID is:
Investors apply for SID creation through Custodian Banks or Securities Companies that already have Main Securities Accounts at KSEI.
Then KSEI will process the making of this SID based on the data provided by the participant (in this case the custodian bank or securities company).
After the SID is ready, the participant will inform this SID to the customer.
It is so easy to make this SID, so as an investor you should have an SID, even mutual fund investors should proactively ask about this SID at the place where they buy mutual funds, and ask the party about making this SID.
Single Investor Identification is Identity data owned by an Investor in order to carry out activities in the Capital market so that it is used as the most important requirement for a trader to be able to trade in the market, the shape model is almost the same as an ID card so that it can only be used by one user according to the name of the owner. , because the system can be used for almost all types of investment, from stocks, mutual funds, bonds and others, this method was initially implemented. In 2011 for Indonesia, it used to only be used as a stock trader since 2015 has covered all aspects of official investment.
A card holder will easily see characteristics such as there are numbers and numbers consisting of 13 digits then the owner’s name and validity period are attached, so that everyone who already has gets a lot of benefits, one of which is about security of funds or when making transactions, everything is guaranteed because it is protected by law. The strong one.
Benefits of Single Investor Identification
Every Investor can develop an Integrated Capital Trading Infrastructure so as to facilitate the identification and monitoring process of access to ownership data, all of which is carried out transparently and makes it easier to check the total Portfolio even though the invested capital in terms of investment is different.
The identity number is single so that other people cannot use it, thus providing the benefit of convenience in carrying out capital market trading activities from start to finish, everything is guaranteed to run smoothly because you have the freedom to monitor all assets in a simple and easy way because it can be done manually. on line.
The SID system is indeed required (mandatory) to Investors or Traders because without the card it is impossible to have access to the stock trading system and have links to banking so that it will make it easier to carry out activities such as checking assets and withdrawing funds whenever you want through the Fund Account Bank. Investors, ATM and Internet Banking.
