Transcript Slide 1

Sharing Session:
Business Contingency Plan (BCP)
Big Flood Disaster
Jakarta, 2-6 February 2007
5 - 6 July, 2007
Kuala Lumpur, Mandarin Hotel
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
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
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’
Intranet – Daily supporting operational system, such
as reporting and accounts administration.
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.
EMERGENCY HANDLING PROCESS
Risk &
Impact
Analysis
Status
Report to
CMT
Disaster
Occurred
• System Availability
• Network
• Human Resources
Monitor
for Reporting
Event Status
No
Suspend ?
Stop
Operational
• manual input,
• injection,
• delay market,
• DRC
Report to
CMT for
Event
Status
END
MONITOR
BCP
ACTIVATED
BCP
Yes
Normal?
No
Status
Report to
CMT
Yes
Critical ?
No
• dependen
• independen
Yes
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.
Network – Normal Procedure
DATA
RP7420
MAIN DATA
CENTRE
RP7420
Leased Line
Modem Tandem
BI-RTGS & BI-SSSS
DATA
Webshell
Modem
RP7420
RP7420
BI-RTGS&SSSS
Server
Leased Line
ROUTER
Webshell
ROUTER
Ftp Archivelog
DRC DATA
CENTRE
Participant
Network
ROUTER
ROUTER
ROUTER
ROUTER
ROUTER
KPEI
Payment Bank
LIPPO
Payment Bank
MANDIRI
Payment Bank
BCA
Payment Bank
NIAGA
Network – Emergency Procedure
DATA
RP7420
MAIN DATA
CENTRE
RP7420
Dial up analog
Modem Tandem
BI-RTGS & BI-SSSS
DATA
Webshell
Modem
RP7420
RP7420
BI-RTGS&SSSS
Server
Leased Line
ROUTER
Webshell
ROUTER
Ftp Archivelog
Leased Line
During Disaster
DRC DATA
CENTRE
Dial up analog
Dial up analog
Participant
Network
ROUTER
ROUTER
ROUTER
ROUTER
ROUTER
KPEI
Payment Bank
LIPPO
Payment Bank
MANDIRI
Payment Bank
BCA
Payment Bank
NIAGA
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%
166
100%
TOTAL
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
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.
Con’t….
Tuesday, Feb 6, 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.
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).
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
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
Flood Map Area
Description :
light
middle
heavy
Flood area