(The Experience of Indonesia)

APRACA CONSULTANCY SERVICES AFRICAN RURAL AND AGRICULTURAL CREDIT ASSOCIATION (AFRACA) In Partnership with APRACA CONSULTANCY SERVICES (ACS) Cordially invites nomination to the INTERNATIONAL STUDY VISIT PROGRAM ON PROMOTING SMALLHOLDER FARMERS AND MSMEs ACCESS TO FINANCE (The Experience of Indonesia) Jakarta Bandung Bali, Indonesia August 24-31, 2015

Page 1 THE INTERNATIONAL STUDY VISIT PROGRAM ON PROMOTING SMALLHOLDER FARMERS AND MSMEs ACCESS TO FINANCE (The Experience of Indonesia) Jakarta Bandung Bali, Indonesia August 24-31, 2015 ABOUT AFRACA The African Rural and Agricultural Credit Association (AFRACA) established in 1977, is a regional association of sub-saharan financial and non-financial institutions involved in promoting rural and agricultural finance. AFRACA s goal is to build a strong and sustainable regional network of institutions and agencies that provide opportunities for learning amongst members and promotes rural and agricultural finance aimed at empowering rural and agricultural communities in the continent. AFRACA members include Central Banks, Commercial Banks, Microfinance Institutions, Farmer Organizations, Agricultural & Development Banks, Universities and Training Institutions. ABOUT ACS ACS stands for APRACA Consultancy Services. It is the consulting agency and the extention arm of Asia-Pacific Rural and Agricultural Credit Association (APRACA). Since 1977, APRACA has ispired to work for rural growth and development, with priority emphasis on the uplift of rural poor. It has pursued the promotion of efficient and effective rural financial systems and broadened access to rural financial services. It established among members, a machinery for systematic interchange of information on sustainable rural and agricultural financial services, encouraged inter-country studies, provided forums to discuss matters of common interest in the field of rural finance, and provided training, consultancy, research and publication services. RATIONALE As one of the main pillars in the national economy development of Indonesia, agricultural sector is oriented to achieve certain level of its capacity enabling food availability, distributed throughout the regions in the country, and accessible by the people at an affordable price. In the attempt to fulfill the national food demand, agricultural sector s goals and objectives are directed to achieve strong food security and maintain food sovereignty. Agriculture activities have always inherent problems and risks. The production risks start from lack of capital to buy necessary supplies before planting. Farmers particularly the marginal ones or smallholders have almost no access to financial institutions in order to capitalize their farming and agriculture activities. Alternatively they are forced to approach private money lenders which eventually put more financial burden to bear. It has been most government efforts in every developing countries including Indonesia that farmers should be promoted in any ways to

Page 2 continue develop their farming activities in order for the country to achieve socio, economic and political stability. On the other side, Micro, Small and Medium Enterprises (MSMEs) has played a significant role in social and economic growth in the world. In Indonesia, the importance of the MSMEs is well illustrated in their contributions on the number of employment, the growing number of business unit, the investment and its contribution to national GDP. The data in 2013 shown that the number of employment of MSMEs was 101.72 million peoples or equal to 97.3% of the whole workforce in Indonesia. Total number of MSMEs is 55.2 million or 99.98 % of total existing business unit, and its contribution to GDP was 57.48%. These proves that MSMEs have become the backbone of the national economy. OBJECTIVES The program is aimed at exposing the participants on the overview and information sharing on the experiences of Indonesia on policies, roles, regulations, strategies and best practices in promoting smallholder farmers and MSMEs. Further, the program is also aimed to share with the participants the innovative thinking, strategic perspectives and related experiences of selected financial institutions, government agencies and NGO in Indonesia that helped improve the capability of agricultural sector and MSMEs to meet the rapid changes due to liberalization and globalization. SCHEDULE AND VENUE The program will be held in Jakarta, Bandung, and Bali, Indonesia on August 24-31, 2015 (8 days, excluding the date of arrival and departure to/from Indonesia). WHO SHOULD ATTEND The programme is suited for bank and finance executives and senior bank officers and managers who are interested in enhancing their know-how on the best practices, innovations and emerging trends in promoting and financing smallholder farmers and MSMEs. PROGRAMME FEE The cost of the programme is only for a fee of US$ 2000 per participant which includes meals (lunches and snacks during the programs, and some dinners), local transfers (airport reception and send-off, one-way domestic air ticket from Bandung to Bali, field visits and city-tour), facilitator s fee, cultural exposure, entrance fees, training venue, program materials and supplies, and other administrative requirements. The fee does not include the international round trip air ticket, cost of hotel accommodation, and other incidental expenses. These will be for the account of the nominating institution. The programme fee should be paid through bank transfer to the following account details: Account Name/beneficiary: Yayasan Konsultasi APRACA Account No: 0206-02-000048-30-1 Depository Bank Bank Rakyat Indonesia (BRI), KCK Special Branch Swift Code: BRINIDJA206 USD SSI: 2000191071661

Page 3 SCHEDULE OF ACTIVITIES A.M. P.M. Sun, 23 Aug Meet and greet participants at Soekarno-Hatta Int l Airport, Jakarta Check-in hotel Akmani, Jakarta [evening] Welcome dinner, program opening, briefing about Indonesia and topic of the program Mon, 24 Aug Visit Ministry of Agriculture for meeting on goverment s policy and programs in promoting smallholder farmers Visit Bank Indonesia (the central bank) for meeting on the role and policies of central bank in promoting agricultural sector and MSMEs Tue, 25 Aug Visit Indonesian Agribusiness Society (IAS) for meeting on the role of IAS in enhancing and promoting smallholder farmers. Field visit to the selected Agro-Processing Industry for a closer look the best practices on Agro- Production and Processing Wed, 26 Aug Check-out hotel Akmani, Jakarta Visit Bank Rakyat Indonesia (BRI) for meeting on its strategy in financing agricultural sector and MSMEs Field visit to BRI Unit for a closer look on the microbanking activities of BRI Travel to Bandung Check-in hotel Promenade, Bandung Thu, 27 Aug Visit the Office of Cooperatives, MSMEs, Industry and Trade of Bandung city for meeting on the policy of local goverment in promoting MSMEs Field visit to the selected SME Industrial Centers. Bandung cultural show [evening] Dinner Fri, 28 Aug Sat, 29 Aug Sun, 30 Aug Check-out hotel Promenade, Bandung Bandung city tour Bali city tour Free program (leisure) Travel to Bali Check-in hotel Bali Rani, Bali Mon, 31 Aug Visit Bank Bali (the Regional Development Bank owned by local government of Bali province) for meeting on its programs in promoting and financing smallholder farmers and MSMEs Field visit to the client(s) of Bank Bali [evening] Program closing and Farewell dinner Tue, 1 Sep Check-out hotel Bali Rani, Bali Departure of participants to home countries *) The schedule of activities can be changed or revised as needed.

Page 4 HOTEL ACCOMMODATION PASSPORT AND VISA ACS encourages all the participants to board at the following hotels: 1. Hotel Akmani, Jakarta Website: www.akmanihotel.com The room rate is Rp. 950,000, or approximately at US$ 73.00 2. Hotel Promenade, Bandung Website: www.hotelpromenade.co.id The room rate is Rp. 700,000, or approximately at US$ 54.00 3. Hotel Bali Rani, Bali Website: www.baliranihotel.com The room rate is Rp. 850,000, or approximately at US$ 65.00 All the above rates are inclusive of breakfast for single occupancy. TRAVEL AND AIRPORT RECEPTION All participants must have passport, which must be valid for at least six months prior to arrival in Indonesia. The participant is requested to contact the nearest Indonesian General Consulate or Embassy for visa requirements. Formal invitations will be sent by the host upon confirmation of participants names. Passport holders of ASEAN member countries do not need a visa to enter Indonesia; they will receive an entry stamp upon arrival at Soekarno-Hatta International Airport, Jakarta. TRAVEL AND MEDICAL INSURANCE The host will not be responsible for travel and medical cover during the travel and program time and the respective institution must ensure all insurance arrangements are done in accordance to their existing policies. Since the programme opening and welcome dinner will be held on Sunday evening of August 23, 2015, then the participants are expected to arrive in Jakarta, Indonesia on Sunday, August 23, 2015 berfore 16:00 local time. Those who are not able to arrive in Jakarta on Sunday, August 23, 2015 before 16:00, is expected to arrive in Jakarta one day earlier. All participants will be met by the host at the Soekarno-Hatta International Airport, Jakarta upon arrival. A representative of the host will be holding a placard with the name of participant written on it for easy identification. Therefore, the flight details are requested to be sent in advance. THE CURRENCY AND FOREIGN EXCHANGE The Indonesian currency is known as Rupiah or Rp. Coin denominations are 25, 50, 100, 500 and 1,000 Rupiah. Bank notes and traveler s checks can be converted into Indonesian Rupiah at foreign ex-change banks and other authorized money changers. The exchange rate is subject to fluctuations. The exchange rate as of March 2015 is Rp.13,000 for US$1. To make convenience, it is advised to bring US Dollar in cash. All USD should be neat and nice. USD folded, stamped, soil or crumpled will sometimes reduce its exchange rate. Since the program will end in Bali, thus all participants are requested to arrange their return flight from Bali to respective countries.

Page 5 ELECTRICITY Electricity in Indonesia is 220 volts AC and 50 Hz cycle power. The two circular holes is an electrical outlet that is most widely used in Indonesia (see the example plugs/outlets). Please check if your electronic devices need a converter or adapter unit. CLIMATE Reservations and Nominations To fully arrange for this program, kindly submit the typewritten nomination form and send to the contact person below: Mr. Agus Gunawan Managing Director APRACA Consultancy Services (ACS) 3rd Floor, YPPI Building Jl. Catur No.3 - Prof. Soepomo, Pancoran, Jakarta 12870, INDONESIA Tel: (62-21) 83788613 Mobile: +62818763361 Email: gunawan172306@gmail.com; acsjakarta@yahoo.com The weather in Jakarta, Bandung, and Bali are typical of tropical climates. Jakarta and Bali temperature ranges from 26 o C - 30 o C with the humidity around 79%. Meanwhile Bandung is located in the highlands, so that the climate is cooler. And cc to: Ms. Caroll Bakang Bilingual Corporate Affairs Manager AFRACA Secretariat Kenya School of Monetary Studies (KSMS) Off Thika Super Highway, Nooridin Road Nairobi, KENYA Tel: +254 20 2715991, +254 20 2717911 Email: annycaroll@afraca.or.ke; carollbakang@yahoo.com; afraca@africaonline.co.ke

Page 6 such as the financial support for social and cultural activities. Therefore the private sectors play an important role in the national government. BANDUNG JAKARTA Jakarta is the capital city of Indonesia. Jakarta whose population has grown approaching to 10 million people is one of the cities in Asia which is much often talked about with the certain reasons. Jakarta has extraordinarily developed and would be at the forefront in Asia over the next few decades. Jakarta is unique with its status as the capital city of Indonesia and the center of the city administration. Jakarta is also a center of social, cultural and health activities. Jakarta is the prominent gateway of Indonesia. As of its geographical condition, land, air and sea transportations are also available. Based on its territory and number of population, Jakarta stands a province equal to the other provinces in Indonesia. As a province Jakarta is led by a governor who is held to take direct responsibility to the president of the Republic of Indonesia through the minister of home affairs. With the double status as province and capital city of Indonesia, Jakarta has got the status of the local capital city of provincial administration. Bandung, the capital of West Java Province is an Indonesian major city. Well-connected with Jakarta through the remarkably Cipularang highway, Bandung has attracted a fast growing number of tourist and travelers especially during weekend and national holidays. Bandung is about 180 KM from Jakarta, it is situated on a plateau in the beautiful Parahayangan Mountains, Bandung's pleasant climate and lush surroundings have offered an escape from the heat of the lowlands since the mid 19th century when it was the heart of the region's most prosperous plantation area. Host to the historic Asia Africa conference in 1955, Bandung is now a center of higher education, commerce and aircraft industry, which despite its modern amenities still retains much of its colonial era charm. Bandung is also renowned for its shopping, particularly for shoes, textiles, clothing and denims, which are found in the colorful Jeans street. Easily reached from Jakarta by train, road or air. Bandung, with its cool mountain air is a popular second stop for those visiting the national capital and an essential stay-over for traveler s route through Java. No doubt that Jakarta is the main center of Indonesian economy. Either national or international investors are interested in participating in the Indonesian economy activities. The central government recently has determined a set of policy in order to trigger the growth of the Jakarta economy, to perfect the export and investment rules and to simplify the banking rule. The government fully supports the private sectors

Page 7 BALI, the island of the gods The island of Bali in Indonesia is year after year voted by the readers of all major travel magazines as one of the most enchanting travel and holiday destination in the whole world. Bali is a land that seems to have a magnet at its very heart. It is a feeling that is difficult to understand unless experienced but once visited you are surely compelled to come back and you may even want to stay forever, such is its pull. Maybe its Bali s beauty, maybe the friendly people, or maybe even the influence from spirits that certainly abide in this place. noted for their traditional dance, the distinctive music of the gamelan and for their skills in weaving cloth of gold and silver threads, Songket, as well as for embroidering silk and cotton clothing. Bali of today is one of the thirty four provinces of the Republic of Indonesia, divided administratively between eight districts that take their names and boundaries from the island s old Hindu kingdoms. Bali goes under many names. Some call it the island of the gods, others Shangri-La. The last paradise, the dawning of the world and the centre of the universe are yet more names for this truly beautiful tropical island inhabited by a remarkably artistic people who have created a dynamic society with unique arts and ceremonies. Daily life on Bali is culturally linked to satisfying and appeasing the gods, spirits and demons in the midst of breathtaking panoramas of cultivated rice terraces, impressive volcanoes and pristine beaches. Bali s main volcano, Gunung Agung, is still active and sometimes explosive and is considered sacred among local people as it is believed to be the centre of the universe. Lying just 8o south of the Equator, Bali can boast a tropical climate with just two seasons a year and an average temperature of around 28 o Celsius. It has a whole range of different environments and activities for the tourist, many of which are covered in these homepages. Economically and culturally, Bali is one of the most important islands of Indonesia. Rice is grown on irrigated, terraced hillsides; other crops include sugar cane, coffee, copra, tobacco, fruits and vegetables. Cattle and hogs are also raised. The Balinese are skilled artisans, particularly in woodcarving and in fashioning objects of tortoiseshell and of gold, silver and other metals. The Balinese are