ADFIAP, in collaboration with the Association for the Advancement of Small Business (PUPUK), successfully conducted the “Cleantech MSME Finance Forum“ in Bandung, Indonesia on November 9, 2018. PUPUK is ADFIAP’s Indonesian partner in the 4-year EU funded Asian Cleantech MSME Financing Network (ACMFN) project.
The Forum was aimied at accelerating the development of financial products for MSMEs in the clean technology space by showcasing best practices and lessons learned from Indonesian financial institutions, investors, and MSMEs, as well as cleantech best practices from other Asian countries, including China and India. The forum was attended by over100 participants from financial institutions, investors, MSMEs and decision-makers from government and development finance institutions. Innovative approaches were discussed and essential partnerships were explored to enable a transfer of best practices to foster the development of the cleantech financing sector in Indonesia.
PUPUK Chairperson, Madam Rieta R. Dewi, formally welcomed the guests and participants of the forum and the introductory remarks was delivered by ADFIAP’s Secretary General, Octavio B. Peralta. The event was officially opened by the Dr. Husmana Hartadji MM, Head of Field Cooperative Empowerment of the West Java Indonesia Governor’s office. Key officials from various local and international agencies such as OJK and IFC attended the forum, together with a critical eco-system of key people from the government agencies, MSMEs and other stakeholders.
Highlights of the event were the conduct of the four sessions namely:
Innovative SME Financing Instruments – Potential to Go Green/Cleantech
This session preseented an overview of the cleantech financing landscape in Indonesia. Panel speakers were Mr. Novianto Utomo of OJK, Mr. Arif Budi Raharja of Shariah Economic Association (MES), Mr. M. Dida Gursida Ashi of PT PNM, Mr. Betani Jezamien of Gandeng Tangan, Mr. Apsoro of Bank BJB, Mr. Muhammad Fadly Rizani of BRI Bank and Mr. Iman Pribadi of the Ministry of Cooperatives and MSME, who discussed the regulations, product portfolios and services and the different approaches to cleantech and cleaner production financing in Indonesia.
Building Indonesia’s Cleantech Finance Ecosystem: The Role of Komunitas in SME support
The objective of the session was to understand the green movement of “komunitas“ (communities of MSMEs) in Bandung and their role in supporting MSMEs in the field of cleaner production; identify challenges in cleaner production and possible ways to overcome them and explore potential new collaborations to further support cleaner production of MSMEs in Bandung. Panel speakers were Mr. Miftah Budiman of TPKAD, Mr. Nandang Nurdin of Komunitas Malai Padi, Mr. Sugianto Tandio of Green Hope, Green Technology Enterprise and Mr. Kawi Budiseto of PUPUK.
Financers Reverse Pitching – How to Access Finance for MSMEs
This session cvered how to connect with financial institutions offering innovative financial instruments for cleantech and cleaner production MSMEs with potential investees and other interested stakeholders. It showcased innovative financing instruments for MSMEs in the cleantech sector, its investment process, financial product features and requirements for accessing financial instruments. Panel speakers for this session were Mr. Aditya Pandu of Mekar Peer to Peer lending, Mr. Titin Sondang of Melania Credit Union, Mr. Gerry Ahmad Syam Bastaman of BJB Bank, Mr. Asep Dian Suryaman of PT Investama Ventura Syariah and Mr. Purnomo Tjandra Irawan of OCBC-NISP. A subsequent round-table discussion was done to facilitate exchange and allowed participants to address questions around the investment process, financial product features and requirements for successful deal closing.
Building a Cleantech Financing Ecosystem in China and India – How to transfer best practices in Indonesia
In this session, Mr. K. Muralikrishnan and Nisha Jayaram of the Confederation of Indian Industries (CII) presented India’s best practices in building cleantech financing ecosystem particularly the original equipment manufacturer (OEM) and the cluster approach. They also shared the value chain approach of Tiruppur Exporters Association (TEA), which can be replicated by the komunitas in Indonesia. Mr. Walter Ge of Green Start-ups on the other hand, discussed non-bank financing approach in building China’s cleantech financing ecosystem. Ms. Corazon Conde of ADFIAP discussed various schemes in the promotion of MSME cleantech financing in the Philippine setting and Mr. Pahpriyanto Alam Surya Putra presented Asia Foundations’ mission of creating effective partnerships with innovative local government, civil society and private sector to improve environmental governance, increase social inclusion and economic growth.
To cap the event, PUPUK’s Executive Director, Cecep Kodir Jelani gave the overall outlook and synthesis stating the roadmap to support cleantech financing for SMEs in Indonesia.
The Asian Cleantech MSME Financing Network (ACMFN) is a 4-year SWITCH-Asia EU-funded multi-country project in China, Indonesia and India that aims to promote sustainable products, processes, services and consumption patterns in Asia. To find out more about ACMFN, please visit its website at www.acmfn.com.