Products and Services

Financial Products & Advisory Services

1. Financial Products

   The core of ALIF’s business activity is the generation of new financing transactions to be held for its own account. As appropriate, transactions will then be funded jointly by the funding partner and ALIF. At the moment, the financial products offered by ALIF are as follows:

1. Ijarah (lease)
   A contract between the Company (Muajjir) and a Customer (Mustajir), in which the Mustajir agrees to rent a Company’s asset and to pay the fee for the rented asset.
2. Ijarah Muntahia Bittamlik (lease & hire purchase)
   A contract between the Company (Muajjir) and a Customer, in which the customer/ Mustajir agrees to pay the fee for the rented asset during an agreed period and when the rental contract expires the Customer can opt to transfer the ownership of the rented object.
3. Murabahah (purchase & sale)
   Purchase and sale contract, in which the bank agrees to finance the purchase of goods/assets, and to sell them to the customer at their purchase price plus a pre-agreed profit margin. The sale price must not change during the period of contract.
2. Advisory Services

   While ALIF will participate in the majority of the transactions it originates, there will be instances where the Company will simply act as arranger, underwriter, placement agent, lead arranger and/or manager. In addition, ALIF may also involve itself in the creation, management, and/or brokering of transactions other than leases.

   Such transactions will typically be limited to those instances where the needs of a customer demand the use of an Islamic financial instrument other than the lease. At the moment, the advisory services by ALIF will be as follows:

• Financial Arranger
  This service is intended for Indonesian project owners looking for strategic investors from Gulf area in particular and OIC member countries in general. We provide the service to all types of Indonesian economic entities from state-owned enterprises, private sector, to regional government and central government. Our management strong international experience will enable us to advise the mentioned entities to obtain financing from overseas. Our comprehensive services will include among others origination of financing source, negotiation on terms & conditions, finalization of the financing agreement, and disbursements of the financing.
• Security Agent
  This service is intended for Gulf-based financial institutions in particular or other emerging market-based banks in general planning to finance some projects in Indonesia. Our staff experience in dealing with local project, trade, and working capital financings in Indonesian market enable us to provide maximum security arrangement to foreign financiers interested to participate in financing some projects in the country.
• Structuring Services
  This service is also intended for Gulf-based financial institutions in particular and emerging market-based banks in general.The objective of the service will be to structure Indonesian based project or trade financings in such a way that the risk is mitigated and the interest of the financiers is protected.
• Trade Matching
  This service is intended for Indonesian traders (exporters and importers) keen to penetrate the foreign markets and foreign based traders planning to enter Indonesian market. For Indonesian traders, we will assist them in penetrating the markets of Middle East and Central Asia. The countries where we have immediate networking at the moment are Gulf countries (Bahrain, Oman, Kuwait, Qatar, Saudi Arabia, and United Arab Emirates), Kazakhstan, Iran, Sudan and Turkey.

  For the above-based traders, we will position ourselves as their reliable partners in penetrating Indonesian markets.

• One-Stop Facilitation Center

• For Indonesian traders
  We provide facilitation services to Indonesian traders planning to enter the OIC countries. The country focuses at the moment are Bosnia, Gulf countries (Bahrain, Oman, Kuwait, Qatar, Saudi Arabia, and United Arab Emirates), Kazakhstan, Iran, Sudan and Turkey.
• For foreign based- traders and investors
  We provide facilitation services to traders and investors from primarily the above mentioned countries to export their goods to Indonesia or to invest in the country. ALIF may offer services to them in term of securing all necessary licenses & logistical needs to make the business operational in the country.

Who can benefit from our advisory services?

All Indonesian economic entities from state-owned enterprises, private sector, to regional and central governments looking for strategic investors, major financiers, and new market in primarily Gulf countries can benefit from our international dealing experience. Other than the Gulf region, ALIF will also consider bridging the finance, investment, and trade activities with other potential countries such as Kazakhstan, Iran, Sudan and Turkey.

On the other hand, economic entities from the above countries willing to enter Indonesian markets can also benefit from our local expertise. We can provide practical business information on how to do business in Indonesia including securing all the necessary licenses & logistical needs to make the business operational in the country.