Innovative Approaches to SMEs and Entrepreneurial Financing for Enhanced Competitiveness 8 9 November 2017 Borobudur Hotel Jakarta, Indonesia This two day intensive workshop, comprising of interactive lectures and group discussions, brings together government officials from developing Asian countries involved in the development and financing of small and medium sized enterprises (SMEs) in their respective countries. The objective is to build the capacity of officials in designing and implementing innovative approaches to SME and entrepreneurial financing for enhanced competitiveness. 1 Workshop participants will include senior policy makers, international experts, representatives from multilateral banks, the private sector and academia involved in SMEs development and financing. DAY ONE: 8 November 2017 (Wednesday) 08:30 09:00 Registration of participants 09:00 09:20 Opening remarks Wawan Juswanto, Senior Economist, ADBI Welcome Remarks Prof. Dr. Ari Kuncoro, Dean, Faculty of Economics and Business, University of Indonesia 09:20 10:00 KEYNOTE ADDRESS: Iwan Jaya Azis (Cornell University, LPEM) Naoyuki Yoshino, Dean ADBI (Video) 10:00 10:30 Group Photo and Coffee Break 10:30 12:00 SESSION 1: Challenges and Opportunities for Enhancing SMEs' Competitiveness In the competitive and dynamic pathway, a key to SME development is greater involvement in production networks. Empirical literature reveals that a firm's participation in networks and its capability upgrading are correlated in a kind of virtuous cycle; firms with higher capabilities participate more in production networks, 1 Toshiba International Foundation (TIFO), a public interest incorporated foundation, provides LPEM with financial support to co host this workshop under the name of Indonesia Japan Partnership Forum for Enhancing Human Capital, Innovation and Sustainability SME Promotion and Inclusive Finance." 1
and a firm's participation in networks can help it further upgrade its capabilities. Welllinked firms outperform non linked firms in product and process innovation by reducing the innovation costs. This session will discuss the needs for SMEs' involvement in the production networks as well as its challenges and opportunities. Kiki Verico (LPEM) M. Dian Revindo (LPEM) Fukunari Kimura / Lili Yan Ing (ERIA) 12:00 13:00 Lunch Break 13:00 14:30 SESSION 2: SMEs' Linkage to Large Enterprises and Technological Upgrading The most important factor for SMEs to become competitive and dynamic is technological upgrading. The first step to achieve it is to go into linkages with large enterprises, either local or foreign, that are producing for the domestic market. And the second step is creating linkages with large enterprises that are operated globally. By supplying to the large enterprises, SMEs may need to make investments for upgrading their technological capability to meet the stricter requirements of those large enterprises, especially to those that export their products globally. This session will discuss the policy to develop linkages between SMEs and large enterprises. Moreover, the strategy for SMEs to acquire new technology will also be discussed in this session. Dainn Wie, Associate Professor, National Graduate Institute for Policy Studies (GRIPS) (TBC) Joon Ho Lee, Vice President, Korea Small Business Research Institute (KOSBI) 14:30 15:00 Coffee Break 15:00 16:30 SESSION 3: Role of Credit Guarantee Scheme in Improving SMEs' Access to Financing Credit guarantees are designed to bridge the gap between lending banks and borrowing SMEs and serve as an important mechanism for addressing the collateral constraints faced by small firms and augmenting the volume of credit available to them. This session will try to examine the use of credit guarantee scheme for improving SMEs' access to financing to achieve technological upgrade, which could support their involvement in the production networks. 2
T.M. Zakir Machmud (LPEM) Pinky S. Padronia, Senior Associate Director, Bankers Association of the Philippine (TBC) Winny Purwanti, Deputy Director, SMEs Development Department, Bank Indonesia / Sony Harsono, Head Division of Micro Business Policy and Development, Bank Rakyat Indonesia (BRI) (TBC) SESSION 4: Country Panels #1: How to Enhance SMEs' Competitiveness 16:30 18:00 Thailand Vietnam Laos 18:30 20:00 Dinner Reception DAY TWO: 9 November 2017 (Thursday) 09:00 10:30 SESSION 5: Financing Options for Upgrading SMEs' Technological Capability Financing technological upgrade is often challenging particularly for small businesses that rely on internal or personal funds to run their operations. This session will examine innovative SME financing such as SME banks, crowd funding and their relevance to the SME sector in Asia. It will try to provide some insights for the participants to increase their capacity to implement the policies and measures that promote the financing for upgrading SMEs' technological capability in their own countries. Firdaos Rosli, Director of Economics, Trade and Regional Integration, Institute of Strategic and International Studies Hiroyuki Kawakami, Head Office, International Division, Japan Desk, Bank Negara Indonesia (BNI) (TBC) 10:30 11:00 Coffee Break 3
11:00 12:30 SESSION 6: Community based Financing for SMEs and Local Entrepreneurs Community based financing, such as hometown investment trust (HIT) funds, is one of the innovative approaches to financing SMEs and local entrepreneurs. The potential of such financing rests on shared ownership between financiers and entrepreneurs, positive spillovers to the community, harmony with social imperatives and mobilization of small local savings. This session will provide lessons learned from the two community based financing and business development cases in Japan and Thailand. Wawan Juswanto, Senior Economist ADBI Masami Komatsu, CEO, Music Securities, Inc. Japan Toshiro Nishizawa, Project Professor, Graduate School of Public Policy (GraSPP), The University of Tokyo, Japan / Representative from Navuti (TBC) 12:30 13:30 Lunch Break SESSION 7: Country Panels #2: How to Enhance SMEs' Competitiveness 13:30 15.00 Philippines Malaysia Myanmar 15.00 15:30 Coffee Break 15:30 16:40 SESSION 8: Country Panels #3: How to Enhance SMEs' Competitiveness Cambodia Indonesia 4
16:40 17:00 Concluding Remarks 5