1. Sharing Session: Business Contingency Plan (BCP) Big Flood Disaster
Jakarta, 2-6 February 2007
5 - 6 July, 2007
Kuala Lumpur, Mandarin Hotel

2. Introduction
Indonesian Central Securities Depository (or KSEI - Indonesian term) was established on December 23, 1997 in accordance with Law no. 8, 1995 concerning Capital Market.
On July 17, 2000, KSEI had succeeded to implement scripless trading with their system named C-BEST (Central Book-entry and Settlement System).
In August 2001, KSEI also succeeded to implement the Disaster Recovery Centre, in accordance with Bapepam rule no. II.C.6.
KSEI systems are connected by database synchronization and replication with the securities central clearing house system (or KPEI - Indonesian term).
In August 2006, KSEI systems were connected to central bank for Government Securities Settlement System and RTGS

3. KSEI’s SYSTEM Main System
C-BEST : Central Book Entry and Settlement System
Supporting System
ORCHiD - Online Research and Centralized Historical Data
E-Mon - Electronic Mutual Fund MonitoringSystem
Intranet – Daily supporting operational system, such as reporting and accounts administration.
BI-S4/RTGS – Electronic system for settlement government bonds with central bank
Emiten online – Electronic system for Registrar & Issuer to know their daily securities holders’

4. BCP Regulation
BAPEPAM rule no. III.C.6 : Internal Controls & Administrative Procedures of The Central Securities Depository
Point 19
The Central Securities Depository must have a primary computer and a back-up computer that are at different locations, that enables the back-up computer to continue processing data within 2 (two) hours, from the time of a breakdown of the primary computer.
Point 20
The Central Securities Depository must keep duplicates of electronic data regarding Securities Accounts in a separate place that is secure and not closer that 30 (thirty) kilometers from the principal location.

5. EMERGENCY HANDLING PROCESS
Risk &
Impact
Analysis
Status
Report to
CMT
System Availability
Network
Human Resources
ACTIVATED
BCP
dependen
independen No
MONITOR
BCP
Disaster
Occurred
manual input,
injection,
delay market,
DRC
Normal?
Yes
Report to
CMT for
Event
Status
END
Monitor
for Reporting
Event Status No
Critical ? No
Suspend ?
Status
Report to
CMT
Yes
Stop
Operational
Yes

6. DRC Live Test
As a main system, C-BEST is critical for operational, therefore having a disaster recovery system is a must and also a periodic testing, to assure its readiness to replace the main system.
Untill now, we have already conduct 9 tests for disaster recovery system including disaster recovery center.
Since 2007, we plan to run disaster recovery system test for 3 (three) times a year.

7. Network – Normal Procedure

8. Network – Emergency Procedure

9. Participants Network
Securities companies are connected to Stock Exchange system via fiber optic provided by vendor for exchange trading purposes.
Securities companies and custodian banks (participants) are connected to KSEI via various type of network provided by vendors for transaction settlement purposes. Such networks are: dial up, leased line, microwave, and fiber optic.
Type of Network
Total %
ISDN – Telkom 52
31%
Dial up – Telkom 45
27%
Leased channel - Telkom 13 8%
Microwave – Non Telkom 30
18%
Fiber optic – Non Telkom 26
16%
TOTAL
166
100%

10. Disaster Events Detail
Friday, Feb 2, 2007
Participants began to contact KSEI’s staf via mobile phone, informing that they could not connect to KSEI’s system (C-BEST).
There were 11 participants, who came to KSEI’s office, asking KSEI’s staf to help them, settled their transaction, because of the unavalability of the network.
There were unsettled instruction for that day, especially OTC VP.
KSEI’s system could not provide reference price for Corporate Bonds, because of participation limitation from fund managers.
Telecommunication network (data and voice), particularly fixed line be unavailable.
Connection to Central bank, unavailable since 11:45 am

11. Con’t….
Monday, Feb 5, 2007
More participants came to KSEI’s office, because of the unavalability of the network – 69 participants.
KSEI’s system still could not provide reference price for Corporate Bonds, because of participation limitation from fund managers.
Connection to Central bank had already back to normal.

12. Con’t…. Tuesday, Feb 6, 2007 Wednesday, Feb 7, 2007
Participants came to KSEI’s office had already decreased – 58 participants.
KSEI’s system already provided reference price for Corporate Bonds, because of limitation of participation from fund managers.
Wednesday, Feb 7, 2007
Business back to normal…. although telecommunication network, particularly incoming call for fixed line still be unavailable at KSEI’s office.

13. DISASTER’S IMPACT
Flood immersed almost 70% area of Jakarta, which cause transportation problem, especially for participants who should come to KSEI’s office.
Network telecommunication especially provided by Telkom (data and voice) were went down almost 70% on central business area on Friday (Feb 2, 2007).
Participants could not contact KSEI’s office via telephone network (voice fixed line).

14. CUSTOMER PROBLEMS
Participant using leased channel or dial-up, which are provided by Telkom (one of the largest telecommunication provider in Indonesia) were having problem on their connection to KSEI. Such participants were:
Securities company – 66 of 144
Custodian Banks – 5 of 18
There were also other parties that were having problem on their connection to KSEI. Such parties were:
Fund Managers – all of them (54)
Registrars – 2 of 14
Payment Banks – 1 of 4
Central Bank, and
Real time data provider

15. Contingency Plan in Action
Setup additional computers and room to help participant who came to KSEI’s office to do their transaction settlement, on Feb 5, 2007 and Feb 6, 2007 for 69 and 58 participants respectively.
Additional computers came from KSEI’s staff and rental company.
Immediate rental for additional PC (on non business day, Saturday/Sunday, Feb 3-4, 2007).
Asking for PoA (power of attorney) for some participants who were helped by KSEI’s staf, executing their settlement instructions.
Open and close markets beyond normal business hour to settle participant instructions
Providing additional official wireless communication with mobile phones (CDMA & GSM) = 9 numbers
Almost all operational staffs act as help desk/customer support

16. Flood Map Area
Description :
light
middle
heavy
Flood area