BANDUNG Fact-Finding Trip & SME Data Gathering (29 June - 1 July 2009)

I visited Bandung on Monday, 29th June - 1 st July 2009.

Purpose of the visit was as a fact-finding trip to observe an Indonesian SME and to gather relevant data on Indonesian SMEs pertinent to my research on SMEs & Islamic Finance. Visited the School of Business & Management, Institut Teknologi Bandung (SBM-ITB),Bandung & Central Refill...both for the second time.

Some interesting observations:-

• There's NO standard definition of an SME in Indonesia. Different ministries will have different criteria. ( In Malaysia, a SME as defined by SMIDEC is mainly based on sales turnover, number of employees and/or type of industry )


• The government's subsidised micro-credit rate of 6-8% p.a. is similar to Malaysia's commercial lending rate ( Indonesia's commercial lending rate is between 12-18%).


• Collaboration between Banks and Universities to render micro-credit assistance to deserving SMEs. Thus, adding another layer to the credit vetting process.


• Slow take-up rate of e-commerce due to security/fraud, technology and other issues.

Thank you to Dr. Dwi Larso of SBM-ITB for the assistance rendered and to Mr. Rohimat Fauzi for sharing the data collected and information on the workings of his own SME(called Central Refill) and also for being such a gracious host. Appreciation to Miss Hiftin Harzanty for acting as our local guide.