The 12th WIEF Press Conference Summarizes Triumphs & Challenges
Minister of Finance of the Republic of Indonesia Sri Mulyani Indrawati, together with Chairman of WIEF Foundation Tun Musa Hitam, addressed a Press Conference held in the Assembly 3 room, following the Closing Session of the 12th WIEF in Jakarta.
WIEF Foundation Tun Musa thanked the Indonesian government for its intense effort in identifying issues to be addressed in the forum. He also stated he regarded the forum as being highly successful in a number of ways, recollecting the time in 2005 when the Foundation started the forum, attended by only about 400 participants.
Minister Sri Mulyani Indrawati thanked the forum, as a high level platform for state leaders, industrialists, academics and scholars, professionals, innovators and investors to explore opportunities for business partnerships in the Muslim community.
The Minister observed how the three-day engagement witnessed participants getting to know each other, sharing brilliant ideas, performing the best of creative work, resulting in a number of business agreements being concluded, including MoU signings.
Sri Mulyani Indrawati said takeaways from this event include the need to address the lack of knowledge about Islamic financial products and the inability of financial firms to appreciate long-term prospects offered by halal-related industries. She also mentioned the need to strengthen long-term infrastructure financing mechanism, including asset-backed securities. Additionally, building better collaborations between grass-root businesses and mainstream industries are also needed to be addressed.
The forum also called on authorities and policymakers to promptly develop regulations and incentives to establish a long-term infrastructure pool of funds to bridge the gap between demand and supply in Islamic financing for infrastructure.
There is also a need for greater collaboration between grass-root businesses like garment manufacture and food selling, and mainstream industry, to further foster innovation. Islamic fashion and halal culinary can benefit, rising to a higher level, should successful collaboration be concluded.
Jakarta, Aug. 4.The 12th World Islamic Economic Forum, which took place in Jakarta from August 2-4, was formally concluded today by Minister of Finance of the Republic of Indonesia Sri Mulyani Indrawati and WIEF Foundation Chairman Tun Musa Hitam.
The 3-day forum, attended by more than 4,200 participants from 73 countries, worked on a theme of ‘Decentralizing Growth, Empowering the Future Business’. 63 percent of the participants came from Indonesia, 24 percent from Malaysia and 13 percent from other parts of the globe.
Five heads of state — Indonesia’s president Joko Widodo, Malaysia’s Prime Minister Dato’ Sri Mohd Najib Tun Abdul Razak, President of the Republic of Tajikistan Emomali Rahmon, President of the Republic of Guinea Alpha Conde and Prime Minister of Sri Lanka Ranil Shriyan Wickremenshinghe, were present for the event. In addition, there were 10 ministers representing Muslim-majority nations including Qatar, Algeria, Bangladesh, South Africa, Nigeria, Pakistan, Republic of Guinea and the Arab Republic of Egypt.
The forum, held at the Jakarta Convention Center in Senayan, South Jakarta, presented 52 speakers, 23 panels, masterclass sessions and 22 complementary program speakers. There were also 20 presenters at the Business Exchange forum. Participants ranged from leading corporate figures, businesswomen, young entrepreneurs, experts, academics, players of creative arts to media celebrities.
The forum also paved the way for the signing of a number of agreements worth some US$900 million, relating to real estate, medical facilities, halal industry, business franchises, Islamic finance and capital markets.
WIEF Foundation Secretary General Tan Sri Dato’ Ahmad Fuzi Haji Abdul Razak observed how leaders who attended the forum highlighted challenges faced by the Islamic community as well as the world:
– Growing inequality, which continues to defy solutions for inclusive development
– Centralized development tends to overlook or even marginalise large sections of society in many countries
– The unintended consequence of innovative technology often leads to the enrichment of a few
– Underutilized potential of a young population in the developing world
– The importance of formulating an effective media strategy to improve global perception of Islamic world investment and business potential.
Dato Abdul Razak enumerated notable recommendations of the forum, including:
– Promotion and support of an enabling environment, including access to finance, for the development and corporatisation of MSMEs and cooperatives to address job creation, income generation and strategies to unlock economic opportunities in rural communities.
– Harnessing innovative training to provide youth with modern skills to add economic exchange value, as well as to infuse Corporate Social Responsibility (CSR) for promoting wider social benefit through innovative technology.
– Broadening of Islamic Finance to grow a halal ecosystem, ‘modest fashion’ industry, infrastructure development and social finance.
– Harnessing the use of disruptive technologies for the wider benefit of a more inclusive society
– Development of strategies to strengthen the potential of creative industries, to spread economic growth.
In her closing speech, Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati delivered some concrete takeaways. Those are:
Addressing the lack of knowledge about Islamic financing products, as well as the lack of ability for financial companies to see the long-term prospects offered by halal-related businesses;
Strengthening long-term infrastructure financing mechanism, including asset-backed securities, and;
Building better collaborations between grass-root businesses and mainstream industries.
Tun Musa Hitam, Chairman of WIEF Foundation, expressed his thanks to Indonesia as this year’s host, and mentioned a special appreciation to President Joko Widodo, Minister of Finance Sri Mulyani Indrawati, Minister of National Development Planning Agency Bambang Brodjonegoro and all participating in the conference.
He stated his confidence that WIEF has always been a forum to bring business opportunities to MSMEs, from both the Muslim and non-Muslim world.
Jakarta, August 4, 2016 – A collaboration of creative talents displaying an array of genres gathered last evening to top off MOCAFest Soundscape Concert with modern, traditional, and exquisite performances. Jamal Raslan, Ayu Laksmi, Rasmee Wayrana, Marcell, were among the skilled performers.
On the last day of its showcase, audiences still have the opportunity to revel in the glory of an Islamic fashion, visual and live installation, before the 12th WIEF sealed its session today.
As presented earlier this morning in the panel discussion, attention of the audience was drawn to the discourse on ‘Islamic Cinema’. As observed by Dr. Katinka Heeren, this appears to bring a broad definition or leave some question marks as to what constitutes Islamic cinema itself, be it values, culture, or people. However, any depictions shown within the film are acknowledged by the directors, whether to monetize as a means to market entry or solely to portray the idealism behind the movie. Aside from that, two renowned Indonesian directors/filmmakers, Ismail Basbeth and Daniel Rudi Haryanto, were there to share their ideas arising from the topic.
The movie “Khalifah’ by Nurman Hakim, screened after the panel discussion, allowed the audience a broader perspective on Islamic Film. The movie depicts an aspect of feminism as Khalifah (‘Leader’) is the label for a man in Islam while in this movie the role of Khalifah is played by a woman (Marsha Timothy). A conflict arises when Khalifah wishes to have equality for herself and her child, as a leader. Director Nurman Hakim is also known for his movie ‘3 Doa 3 Cinta’.
To enact this year’s MOCAfest, Fauzi Yusoff along with Etson Caminha, performed a dynamic pair between multimedia art and traditional musical instruments.
Upgrading Indonesian Micro-Businesses in Market Access and Funding
Jakarta, Aug 4. An overwhelming percentage of the workforce in Indonesia works in ‘Micro-businesses’. They face challenge on insufficient market access and a shortage of funding that hinder them to grow. Since the bulk of the population works in this sector, a concrete solution is needed to take micro-businesses to the next level.
Offering a solution, James Digby, Co-Founder of Denmark-based Rockstart Accelerator, said that the micro-financing industry demands entrepreneurial talent, something that enables it not to merely channel money but also able to ensure money invested is used wisely to develop both the micro- and small-enterprises themselves and the communities around them.
On the same occasion, Bahrain’s Dr. Atef Elshabrawy, Global Expert, MENA Region, International Council for Small Business, believes that small businesses must go global and become multinational companies. In his opinion, such internationalization of small businesses is not difficult today, as the world has changed with the internet, and most founders of small businesses or startups are well-educated, quality-oriented, creative and innovative.
Using the Indonesian wisdom of ‘Gotong-royong’ social solidarity, Sandiaga S. Uno, Vice Chairman, Micro, Small and Medium Enterprises, Cooperatives and Creative Economy, Indonesian Chamber of Commerce and Industry, has offered a new platform known as the ‘Solidarity Economy Platform’. He encouraged small businesses to gain benefits from this platform to enhance their operations, broaden access to capital and embrace technology.
Moderated by Elias Schulze, cofounder and managing director Kana Television, Ethiopia
Rapid changes in technology have forced small businesses to improve significantly. Knowing where to go and what specific technology will support them in the quest to achieve their goals are essential to navigate the path to success.
Eddy Lee, Managing Partner, Coffee Ventures, Singapore, emphasised how MSMEs must be familiar with their marketplace. They must dig unique opportunities and find ways to digitise their position in that specific market. He cited the hijab community as an example of a marketplace. For an MSME to utilise such knowledge, it must establish and promote an online presence among hijab communities, making sure they can easily be found via Google search.
Philip Glickman, Regional Head of Commercial Payments, Mastercard Asia Pacific, said that knowledge and adaptability have been proven by the big companies that were MSMEs in the past. They jump the rungs of a vertical ladder because they can capitalise on data and can succeed in exploiting opportunities, among them through partnership. He explained how big companies afford to buy other companies to complement their services, while for MSMEs ‘specific’ partnership is the key. He encouraged MSMEs to partner with other companies to fill in the gaps in their business deliveries. Once MSMEs know how to choose a partner correctly and how to use data effectively, it can understand the vertical course to success.
Ridzki Kramadibrata, Director Grab Indonesia added that understanding the local market is important for MSMEs to grow. Realizing that the cashless community is still small in Indonesia, Grab offered a cash-based system for their hail-riding services. This understanding allow them to attract markets and acquire customers of other ride-sharing services.
The three speakers agreed that education and improvement in human capacity will generate more opportunities for MSMEs to exploit the current technology revolution. They believe that as technology costs become more affordable in the future, some would be provided free; MSMEs will rely for growth on ‘smart people’—the right people who know offline and online behaviour, who know both mainstream and social media preferences, and who can make the right decisions, fully informed.
Jakarta, Aug 4. Micro, Small and Medium-scale Enterprises (MSMEs) face financial restrictions that impede their business expansion. Lack of financing access for MSMEs stipulate impediments for them to grow. The main issue is about collateral treatment issue that does not imposed on big businesses – many of whom have the same propensity to default. The structure of MSMEs that is considered as ‘not-scalable’ that makes them less attractive to financial institutions.
Keynote speaker Tanri Abeng, President Commissioner of PT Pertamina, Indonesia’s state-owned oil and gas company, offers so-called ‘People’s Owned Enterprises’ or Badan Usaha Milik Rakyat (BUMRA) as a solution for both financing and empowering Micro- Small- and Medium-Enterprises (MSMEs). According to Abeng, BUMRA is set up as a corporatization of cooperatives and MSMEs and has been professionally-managed as scalable enterprises. With a market-driven approach, these BUMRAs will gain access to markets, obtain cost-effective from production to distribution, and will attract for funding.
Dr. Adnan Chilwan, UAE-based Dubai Islamic Bank CEO, supported Mr. Abeng’s BUMRA concept, which basically creates an ecosystem to institutionalize MSMEs. Chilwan underlined how BUMRA will still require government support. As banks will seek for government-back guarantees before lending money to BUMRA-like institutions.
Thione Niang, Co-Founder and President of US-based Solektra International, emphasized that young people going into business should have a defined idea and should be passionate about this business concept. According to him, such passion will encourage young people to do everything they can to make their business idea work. In the funding issue, Niang pointed out how the internet has provided non-traditional funding sources, such as the currently-popular Crowd Funding and other techniques of gathering financial support through campaigns.
Sharing his experience in growing MSMEs, Peniel Uliwa, Managing Partner at Tanzania-based SME Impact Fund, offers the concept of ‘impact Financing’ through which a funding agency not only provides financing and access to specific credit but also business assistance services. Under the concept of Impact Financing, the funding agency focuses on specific type of MSMEs, i.e. the agricultural sector.
Located in Exhibition Hall A, the 12th WIEF Exhibition has been arranged to grant numerous networking opportunities and afford prominence to corporations who are interested in showcasing their products, services and recent innovations.
The exhibition was held on August 2-4, 2016 which was contributed by 53 exhibitors with 55 booths, including 2 pavilion from Indonesia and Malaysia. Those booths consist of 37 sponsor booths which include national and multinational companies; 2 country pavilions from Indonesia and Malaysia; 10 country desks from Pakistan, Brazil, Spain, Korea, Thailand, Sri Lanka, United Kingdom, Malaysia, Indonesia, and Guinea; and 6 SME booths showcasing Islamic fashion, batik, innovation, and other handicrafts from Indonesia.
SMEs participating in Country Pavilions and Country Desks are open to explore opportunities in regional and international markets, discover new funding options, increase brand exposure, establish business partnerships and organise one-on-one business meeting with interested parties.
The Indonesian Country Pavilion is uniquely designed to attract crowds and engage forum participants:
Halal Tourism Cluster: Ministry of Tourism; Ministry of Maritime and Fisheries
Islamic Fashion Cluster: Cita Tenun Indonesia; Ikat Indonesia (by Didiet Maulana); APPMI (by Poppy Dharsono)
Islamic Finance Cluster, Innovation and Digital Economy: Himpunan Bank Milik Negara; Inkubator bisnis start-ups by PT Telekomunikasi Indonesia (Persero); PT Dirgantara Indonesia; BRISat by BRI
Government Cluster: Ministry of Finance Ditjen PPR; Badan Pengembangan Infrastruktur Wilayah; Bank Indonesia; Kementerian PPN/ Bappenas; Otoritas Jasa Keuangan
Culinary and Business Network Cluster: Asosiasi Dewan Teh; Business presentation
It also features Investment Coordinating Board (BKPM) and the Ministry of Trade, which promote the upcoming Trade Expo Indonesia in October 2016.
The ‘Modest Fashion’ exhibition includes a collaboration of BeKraf, Berau Indonesia creative economy and HijUp, an Indonesia e-commerce platform for Muslim fashion on display at the Exhibition Hall.
The Exhibition is open for forum participants and the public until the closing of the forum on Thursday, August 4, 2016.
Innovative startups pitch their business to investors
IdeaPad is a niche event held at the 12th WIEF Exhibition, promising a sneak peek into the booming world of startup business. This platform aims to provide aspiring entrepreneurs with innovative ground-breaking and world-changing ideas and to capture the interest of potential clients and investors from across the globe.
This year’s IdeaPad was centered on a panel discussion on equity crowdfunding, bringing together the first-ever licensed equity crowdfunding operator in the ASEAN region to help boost funding options for regional startups.
Five (5) startups pitched their business during the IdeaPad session: SoCash (Singapore), PT Anterin Digital Nusantara (Indonesia), Sirenio (Australia), UpStart (Philippines) and Mynumber.com (Kazakhstan).
The business pitched by these startups will be judged by experts including Shinta Witoyo DHanuwardoyo, CEO of Bubu.com and Kyri Andreou, Co-Founder and Director of ATA Plus.
Selected startups will be partnered with an investor to grow their business; results will be released during the announcement of regional a startup award for ASEAN, scheduled to take place after the 12th WIEF.
Jakarta, Aug 3 The Marketplace of Creative Arts Festival (MOCAfest) 2016 assembles the enthusiasm and spirit amongst worldwide artists and audiences in a showcase of film, visual arts, music, audio-visual mapping, performing arts, and fashion. All were displayed in a performance, masterclass, panel discussion, a ‘Sharing Circle’ fish-bowl dialogue, and a ‘MOCAfest SOUNDSCAPES’ concert.
Championing the nation’s official motto of “Bhineka Tunggal Ika” (Unity in Diversity), today’s MOCAfest opened by MOCA Translation 7.0, manifesting the theme in poetry and traditional musical instruments in harmony. A set of visual installations included illustration, design, calligraphy, comics, and photography, an on-site Batik class offered as well by the G&B Guitars.
At the entrance, audiences were welcomed by displays of several Moslem-wear brands: MAIMA Indonesia, Jenahara, Etu, etc.; these were set to bring the Moslem fashion as a trend in Indonesia and hopefully other countries as well.
In accordance with the above, the cross-cultural dialogue on stage heated up in the afternoon session, bringing forth issues faced by the creative economy sector, whether to commercialise our heritage or otherwise, to preserve it. One of the speakers, Mr. Fiki Satari, responded by emphasizing on the idea of “Transforming Tradition” suggesting that a creative economy has the role to create a heritage and traditional culture relevant to modern needs and lifestyles. He added that when there is collaboration, a new expression emerges.
Tonight, a collaboration of creative talents who carry an array of genres will gatherto spice up the evening with modern, traditional, and exquisite performances. Jamal Raslan, Ayu Laksmi, Rasmee Wayrana, and Marcell are scheduled to perform.
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