Canada offers RI $198m in aid

JAKARTA (JP): Canada yesterday offered a C$280-million (US$198 million) bilateral support package for Indonesia to help the country overcome its economic crisis.

Canada's Secretary of State for Asia-Pacific Raymond Chan told journalists that the package included C$250 million in agricultural export credit facilities through the Canadian Wheat Board.

It also covered C$20 million in export credits from the Export Development Corporation for "essential imports" such as food and medicine and more than C$9 million for humanitarian aid through the Canadian International Development Agency.

Chan, together with Secretary of State for International Financial Institutions Jim Peterson, was leading a special mission here. They met President Soeharto Tuesday.

Canada and Indonesia sealed yesterday a protocol amending their double taxation agreement. The protocol was signed by Canadian Ambassador to Jakarta Gary J. Smith and witnessed by Peterson.

Peterson said after the signing that Canada would continue to do its share to help Indonesia address and limit the social impact of the economic crisis and support Indonesia in implementing the International Monetary Fund-sponsored reforms.

"Through the signing of the protocol today, we underline our shared confidence that, while the economic crisis currently facing the region will inevitably have an impact on trade and investment numbers, it is a temporary situation only.

"Canada believes strongly that Indonesia will return to a path of strong and sustainable economic growth, and that our relationship will continue to grow in importance," Peterson said.

He said bilateral trade exceeded C$1 billion last year, while Canadian investment in Indonesia totaled some C$8 billion. (rid)