Investor Compensation in Indonesia: Who Can Claim?

KSEI and the Indonesia Securities Investor Protection Fund, or Indonesia SIPF, signed an agreement on September 15, 2026 to strengthen the infrastructure used to distribute investor-loss compensation. The arrangement covers fund accounts and payments to eligible investors.

The announcement does not make every investment loss compensable. Share-price declines, unsuccessful trades, weak issuer performance, and ordinary market volatility remain risks borne by investors.

Two Indonesian mechanisms are frequently confused: the Investor Loss Compensation Fund, known as DKKI, and the Investor Protection Fund, known as DPP. They have different funding sources, activation conditions, claims processes, and coverage.

KSEI and Indonesia SIPF cooperation to prepare the infrastructure for investor-loss compensation. Source: Indonesia SIPF, September 15, 2026. The agreement establishes distribution infrastructure and does not announce automatic compensation for every investor or every investment loss.

DKKI Is Funded by the Return of Unlawful Gains

DKKI relates to capital-market violations that produce unlawful gains or unlawfully avoid losses. Its regulatory basis is OJK Regulation No. 65/POJK.04/2020.

OJK may order the responsible party to return those gains. Recovered money may then be used to establish a DKKI if OJK determines that the conditions for doing so are met.

The process generally involves:

• OJK establishes a violation and orders the return of unlawful gains.

• The responsible party pays into a designated account.

• OJK determines whether a DKKI will be created.

• An administrator is appointed and a distribution plan is announced.

• Investors who meet the stated criteria submit claims and supporting evidence.

• Available funds are distributed under the case-specific plan.

The KSEI and Indonesia SIPF agreement strengthens the account and distribution stages. It does not remove the need for an OJK determination, fund establishment, claim verification, and eligibility criteria.

Who May Be Eligible to Claim from a DKKI?

A person does not become eligible merely by trading a security connected to a violation. Eligibility depends on the case, transaction period, nature of the misconduct, connection between the misconduct and loss, and the applicable distribution plan.

An investor may need to establish that:

• The holding or transaction occurred within the designated period.

• The loss relates to the violation underlying the DKKI.

• Investor data can be matched with KSEI and intermediary records.

• The claim was filed within the announced window.

• Submitted documents and information are complete and accurate.

Compensation may be smaller than the investor’s total loss. The available pool comes from unlawful gains that were successfully recovered. When verified losses exceed the fund, distribution follows the method established for that case.

DPP Covers Missing Assets at a Custodian

The Investor Protection Fund serves a different purpose. DPP is designed to protect investor assets that are missing when a custodian cannot meet its obligations, following the required written determination from OJK.

A loss caused by a falling share price is not a missing-custody-asset claim. DPP also does not compensate for estimated future investment value that an investor expected to earn.

Basic claim conditions under Indonesia’s Investor Protection Fund. Source: Indonesia SIPF, accessed September 29, 2026. DPP is separate from DKKI and does not compensate investors for ordinary share-price declines.

Three Examples That Clarify the Difference

A. A Share Falls Because the Issuer Underperforms

An investor buys a share at IDR 1,000 and the price falls to IDR 600 after the issuer reports weaker revenue. The IDR 400-per-share loss is a market risk. It does not create an automatic DKKI or DPP entitlement.

B. Misconduct Produces Unlawful Gains

OJK identifies misconduct, orders the return of unlawful gains, and establishes a DKKI. An investor may file a claim only if the transaction period, loss, and documentation meet the distribution plan’s requirements.

C. Assets Are Missing at a Custodian

Records show that an investor owns securities or cash, but the assets are missing and the custodian cannot return them. A DPP claim may become available if OJK makes the required determination and the investor satisfies the claim conditions.

How Much Protection Is Available?

An OJK press release issued in late 2020 recorded an increase in the DPP ceiling to a maximum of IDR 200 million per investor and IDR 100 billion per custodian under the decision then in force. These are protection limits, not automatic payment amounts.

Investors and editors should verify whether a more recent OJK decision applies before relying on those figures in an actual claim. Payment remains subject to verified missing assets, the applicable ceiling, and available protection-fund resources.

The DPP ceiling must not be applied to a DKKI. A DKKI’s size depends on recovered funds and the distribution plan for the specific enforcement case.

What Records Should Investors Keep?

Investors should preserve transaction records before any problem occurs. Relevant documents may include:

• Single Investor Identification, or SID.

• Customer Fund Account records.

• Securities subaccount records.

• Trade confirmations and transaction statements.

• KSEI ownership statements.

• Bank statements and transfer evidence.

• Communications with the securities firm or custodian.

• Complaint records and ticket numbers.

Official announcements should be checked directly through OJK, KSEI, and Indonesia SIPF. Claim links delivered through unsolicited private messages should be treated cautiously because compensation events can be exploited for phishing.

Conclusion

Investor compensation is not insurance against every stock-market loss. DKKI distributes funds recovered from unlawful gains, while DPP addresses missing investor assets held through a custodian under conditions determined by OJK.

The KSEI and Indonesia SIPF agreement improves distribution readiness. A claim right still arises case by case, after there is a legal basis, formal announcement, investor criteria, and verification process.

Investors should monitor three items: an OJK enforcement determination, an announcement establishing a DKKI or activating DPP protection, and the claim deadline. Without those elements, an investment loss does not automatically become a compensation claim.

Disclaimer

This article is for general information only and does not constitute legal, investment, or case-specific claims advice. Eligibility, payment value, protection limits, and required documentation are determined by OJK, Indonesia SIPF, and the official rules applicable to each case.