ERIA, Jakarta VISIT ( 2 July 2009)

Went to the Economic Research Institute for ASEAN and East Asia - ERIA today with my AEI friends i.e. Azrul Shahreen & Zikry Kholil for a 10am appointment.

Purpose of the visit was two-pronged i.e. to understand the functions and workings of ERIA and to gather data on SMEs and Islamic Finance which would be pertinent for my research paper.

Am honoured and very thankful that 2 researchers i.e. Ms. Friska Parulian & Mr. Sothea Oum took time off from their busy schedule to brief us about ERIA and to answer my questions on Economics/Finance generally and on Islamic Finance and SMEs specifically. In addition, we were given copies of the latest Policy Brief on "Global Financial Crisis and Policy Responses in Southeast Asia" and a draft of a future Policy Brief as well. Quite pleased to hear that the researcher "liked" Malaysia's Stimulus Package response to the Global Financial Meltdown.

Thank you again to Mr. Sothea Oum for extending me a copy of the ERIA Research Project Report, No.5 titled "Asian SMEs and Globalization".

My heartfelt thanks to Miss Arlene Taulu of the ASEAN Secretariat for making the visit arrangements and to Ms. Mitsuko Takayanagi for receiving us and bringing us around.

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.

Conducting Survey on Using Islamic Finance to Strengthen Malaysian SME & Government Participation

Dear Readers,

Please email to amirulblog@gmail.com if you can participate in my survey or, know of somebody who is willing to participate.

My area of survey/research is on Islamic Finance(IF) generally and more specifically on "Using IF to strengthen Government & SME participation".

Thank you.

FIRST Islamic Finance Presentation.....in 5years

Just had my first Islamic Finance(IF) presentation in 5 years. It was for our "Accounting & Financial Tools for SMEs" class under the IMSME programme at AEI-UM.

It was also the first time that I'm co-presenting with a non-IF practitioner. Thank you Miss Penny Siew for your efforts on the presentation slides and the presentation itself.

Those Interested to checkout our slides....please go to slideshare.net/amirul or, http://www.slideshare.net/amirulaei/islamic-finance-final

Thank you Prof. Manfred Pollanz for your valuable insights esp. from the Germans' and/or Europeans' perspective!