III.    TRAINING PROGRAMME AND ACTIVITIES

The training programme has been carefully designed, prepared and carried out so as to match the current dynamism of microfinance development in developing countries, especially in establishing and managing microfinance institution (MFI). Apart from the technical training, other extra-curricular activities were also organized to complement the learning environment and experience.

1.      Training Purpose and Objectives

The purpose of the training is to provide participants from African countries with an opportunity to improve their knowledge and techniques in the field of microfinance, especially in establishing and managing microfinance institution (MFI). The training will also provide participants with an opportunity to exchange ideas, information and experiences among them.

The objective of the training is to provide an instant benefit to the microfinance practitioners, especially those from African region. Upon completion of this training the trainee is expected to be able to: (i) comprehend the philosophy of microfinance; (ii) explain different kinds of microfinancing services; (iii) apply different techniques to develop various microfinancing products; (iv) apply appropriate method in establishing and managing microfinance institution operations; (v) develop business plan; and (vi) gather and learn the experience of other microfinance institutions and adopt for back home application.

2.      Training Substance, Methodology and Expected Output

Substance

The training substance was focused on technical aspects of microfinance development. There were 8 (eight) training modules delivered and discussed, namely: (1) General Overview on the Indonesian Economy and Banking System; (2) Microfinance Development; (3) Establishing and Managing MFI; (4) Financial Strategy; (5) Business and Strategic Planning; (6) Accounting for MFI; (7) Management Information System; and (8) Introduction and Exercises on Loan Application and Management by two different financing schemes, conventional and sharia.

Methodology

The training sessions were conducted participatory and the teaching methodology was based on adult learning techniques that include case studies, group exercises and discussions. Very little lecturing was used as this training was meant to be practical and of immediate benefit to the participant. 

Participants were required to bring country reports from their institutions for further sharing and analyzing various relevant data and information and, to some extent, using financial information to lead management decisions towards financial sustainability.

Expected Output

Each trainee is expected to:

§       acquire a complete comprehension on technical aspects of microfinance;

§       acquire necessary skills to mobilize microfinance practices in his/her country;

§       produce an action plan to be followed-up upon his/her return to his/her organization; and

§       learn from each others’ experiences across the region.

3.      Training Schedule

The training comprised of 8 (eight) effective working days for theories in Class Session and 4 (four) effective working days for exercises at Field Session. It started daily at 08:30 am until 05:00 pm with 15-minute interval break twice a day at 10:00 am and 03:00 pm, and 60-minute break at lunch hour (12:00 noon). 

The training covered three major clusters to accommodate: (a) practical-based theories on 27 October to 3 November 2008; (b) field studies on 4 to 8 November 2008 to Yogyakarta; and (c) lessons shared and preparation of back-home plan on 9 to 11 November 2008. Detail of the Training Agenda is attached as Appendix A

Basically there were class session and field session.

Class Session

The class session covered the subjects of: (a) Indonesian Economic Development and Banking System; (b) Indonesian Policy on Microfinance Development; (c) MFI Models in Indonesia: Microbanking, Cooperative, and Non-Bank and Non-Cooperative; (d) MFI Establishment and Community-based MFI; (e) Empowering the Community-based MFI (Case Study); (f) Loan Analysis; (g) Business Plan for MFI; (h) Sharia MFI; (i) Assets and Liabilities Management; (j) Product Development; (k) Loan Analysis Using Scoring System for MFI; (l) (m) Standard Operational Procedure; (n) MFI Control and Supervision; (o) Risk Management; (p) MFI Rating System; (q) MFI Internal Control; (r) MFI Network, Linkages and Strategic Alliances; (s) Management Information System (MIS); and (t) Application of MMS.

Field Session

The field session covered various practical subjects related to the operation and management of microfinance based on two different basic schemes, namely conventional and sharia schemes. During the field visits the participants were also facilitated to exercise loan application and loan management of two different schemes. The excercises and visits were conducted in Yogyakarta. Two MFIs visited were: (1) Rural Credit Bank of BPR Danagung Bakti located that practices the conventional scheme; and (2) Sharia Financial Institute of BMT Beringharjo that practices sharia scheme. Profile of BPR Danagung Bakti and BMT Beringharjo is attached as Appendix B.

4.      Training Participants

A total of 10 participants were successfully selected from 8 African countries. Due to the demanding nature of the microfinance development, the participants came from different disciplines and backgrounds that also have the requirements to capture the skills and knowledge of the current evolving microfinance mobilization. List of the Participants is attached as Appendix D.

5.      Training Instructors/Facilitators

Selection of the training instructors/facilitators was based on the feedbacks of the past TCTP participants and critical evaluation on the past implementation of the three TCTPs; through which careful consideration and decision were made by the Organizing Committee. The basic criteria are that the facilitators should have appropriate skills and knowledge on microfinance, either as bank official or professional instructor/facilitator for microfinance development. List of the Instructors is attached as Appendix C.

6.      The Organizing Committee

The Organizing Committee for this training comprised of Teamwork for Training Substance and Teamwork for Administration & Supporting Logistics from the joint-organizers. List of the Committee Members is attached as Appendix E.

7.      Training Orientation Session

An orientation session was conducted prior to the training session activities where all participants were assembled for an informal ‘ice-breaking session’ held at the NAM CSSTC meeting room on 10th floor. 

The informal session was fully facilitated by Mr. Achmad Rofi’ie, the Assistant Director for Programme of NAM CSSTC. During this session participants introduced themselves by describing their names, jobs, organizations, and experiences in microfinance or microfinance-related fieldworks. Before concluding the session, the facilitator made a briefing on the training agenda, subjects, instructors/facilitators, methodology, field session, administrative and financial arrangements, as well as the logistics.

8.      Expectation of Participants

For the purpose of evaluation and acquiring the participants’ expectations, an appropriate form was prepared and distributed to the participants. The form was filled up to indicate their respective expectations on (1) understanding the development of microfinance and MFI, (2) substances (either policy and/or technical aspects) to be delivered be related to the participants’ country’s context, (3) possible application of knowledge and experience on microfinance to the participants’ country development, and (4) other expectations which are considered important by participants. The objective was basically to evaluate whether learning acquisition has met the expectations of the participants. The filled out forms to be openly discussed further on the last day of the training course.

9.      Post-Class and Post-Field Survey

Post-class and post-field surveys were conducted each time after training subject and field visit accomplished. The objective of these surveys was to evaluate the perception level of learning acquisition of the participants. The surveys basically comprised of objective (multiple-choice) questionnaires covering various elements from the training subjects and supporting aspects. Description of the Expectation, Post-Class and Post-Exercise Surveys is attached as Appendix G.

10.  Overall Evaluation

In addition to the post-class and post-field surveys the Committee also conducted an overall evaluation at the end of the training session. The structured questionnaires were distributed to participants for their comments, followed by an open discussion among participants. Description of the Overall Evaluation is attached as Appendix G.

11.  Extra-Curricular Activities

Apart from attaining skills and knowledge through intensive technical training sessions, participants were also exposed to other extra-curricular activities that involved exchange of individual and group’s relationships and cultures, as well as understanding the culture of the local communities. 

On the sixth day of the programme (Saturday, 1 November 2008), the Committee organized a tour visit around Jakarta from 09:00 am until 05:00 pm assisted by PNM officials. The participants had chance to experience shopping at several malls and shops. 

During visit to Yogyakarta, the participants were also facilitated to see around the City, the Royal Palace of Sultan Hamengkubuwono, Prambanan Temple, Borobudur Temple, as well as watching 30-minute leather puppet show at Tom’s Silver in Kota Gede. Shopping sessions to various shopping areas in Yogyakarta were also organized to accommodate the participants’ repeated requests.