ADFIM EXPLORES INDONESIA'S DEVELOPMENT FINANCING, ENTREPRENEURSHIP ECOSYSTEM

By Mohd Iswandi Kasan Anuar

JAKARTA, July 4 (Bernama) -- The Association of Development Finance Institutions of Malaysia (ADFIM) is exploring and evaluating Indonesia’s dynamic development financing and entrepreneurship ecosystem via a study tour to the republic. 

ADFIM chairman, who is also Perbadanan Usahawan Nasional Bhd (PUNB) chief executive officer Izwan Zainuddin, said the delegation learned about innovative financing strategies and products, especially for the underserved communities. 

“We hope to be able to understand best practices, increase financial inclusion, empower entrepreneurs, develop innovative financing products, improve the structure and effectiveness of institutions, and develop cooperation networks,” he told Bernama.

Izwan said that he is committed to bringing home valuable insights in strengthening the development financing and entrepreneurship ecosystem in Malaysia, further driving inclusive and sustainable economic growth. 

Also participating among the ADFIM delegation were representatives from the Malaysian Development Financial Institutions (DFIs), including Bank Pertanian Malaysia Bhd (Agrobank), Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat), Bank Pembangunan Malaysia Bhd, Export-Import Bank of Malaysia Bhd (EXIM Bank), Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank), PUNB, Perbadanan Nasional Bhd (Pernas), Malaysian Industrial Development Finance Bhd (MIDF), and Amanah Ikhtiar Malaysia. 

The delegation also visited important institutions in Jakarta from July 1-6, namely Indonesia’s Banking Development Institute (LPPI), Bank Indonesia, Otoritas Jasa Keuangan, Association of Indonesia Shariah Banks, PT Bank Rakyat Indonesia (BRI), and PT Permodalan Nasional Madani (PNM). 

The main discussion focused on the development of innovative financing products, entrepreneurial development strategies, financial inclusion and the use of technology in financing. 

ADFIM secretary-general Mohd Prasad Hanif stressed that the association will integrate the knowledge and strategies gained to develop financing products to achieve financial inclusion. 

“We will work to improve access to financing for underserved communities by developing new distribution channels, including the use of digital technology and financial technology (fintech) platforms.

“This will ensure that more small and medium entrepreneurs in rural areas and marginalised communities can obtain the necessary capital to start and expand their businesses,” he said. 

Other initiatives include empowering entrepreneurs through the enhancement of holistic entrepreneur development programmes and working with financial authorities in Malaysia to develop policies and regulations that support financial inclusion and entrepreneurial development. 

"We will also strengthen collaboration with financial institutions and development agencies in Indonesia to exchange knowledge and resources.

“This includes the possibility of signing a memorandum of understanding and a strategic cooperation agreement to expand the entrepreneurial and financial support network between the two countries,” added Mohd Prasad.

-- BERNAMA