Canada regards RI as important trade partner
JAKARTA (JP): Canada regards Indonesia as its most important trading partner in Southeast Asia with trade volume between the two countries approaching US$1 billion.
"Indonesia is Canada's most important trading partner in Southeast Asia," Canadian Prime Minister Jean Chretien said.
Chretien, who is here to attend the APEC Economic Leaders Meeting in Bogor today, presided over the signing of a number of business initiatives between the two countries at the Le Meridien Hotel yesterday.
"These initiatives undertaken today will only strengthen future relations," Chretien told the Canadian and Indonesian businessmen in attendance.
Chretien emphasized the need to forge trade relations among the small and medium enterprises of the two countries.
Six Indonesian ministers, Minister of Research and Technology B.J. Habibie, Minister of Mines and Energy I.B. Sudjana, Minister of Industry Tunky Ariwibowo, Minister of Education and Culture Wardiman Djojonegoro, Minister of Investment Sanyoto Sastrowardoyo, Minister of Religious Affairs Tarmizi Taher and top Indonesian businessmen Sudwikatmono, Aburizal Bakrie, Mohamad (Bob) Hasan and Sofyan Wanandi were on hand.
Among the initiatives signed yesterday were a US$500 million expansion of PT International Nickel Indonesia which plans to boost its capacity by 50 percent to 150 million pounds (76.5 million kilograms) in the year 2000; an $8 million investment for Bata shoemaker's second plant to raise its production capacity by half. And Hughes Canada is to supply a $15-million air traffic control system to the Indonesian government, while Trenton Works Ltd. of Nova Scotia is supplying 80 coal railway cars for $11 million to the state-owned railroad Perumka.
Minister Wardiman said that Canada has also provided a $12- million grant to Indonesia to finance a total of 59 postgraduate scholarships and an equal amount for women's organizations.
"The grant is the second given by the Canadian government," Wardiman told reporters after the signing ceremony.
Business tycoon Sudwikatmono said his trade with Canada through the Bogasari flour mill has steadily increased from one year to another.
"We import 700,000 tons of wheat per year from Canada which is second only to the United States," he told The Jakarta Post.
Reciprocate
This is good performance indeed by the Canadians, he said, adding that Indonesia has asked Canada to reciprocate by buying Indonesian products.
"In this line, we have already exported our food products, whose ingredients come from Canada, including noodles and pasta, to Canada," Sudwikatmono said.
Chairman of the Indonesia-Canada Business Council M. Sutara said that people tend to forget that Canada has a per capita income of $22,000, about the same as that of the United States.
"We really want to push our exports to Canada and invite Canadian investment to Indonesia," he said.
Indonesia suffered a trade deficit of $100 million with Canada three or four years ago, but last year the figure was only $47 million. The trend now is toward more balanced trade, Sutara said.
"Canada has invested a total of $3.5 billion in Indonesia, with an additional $1 billion coming next year," he said.
Asked about the prospects of fostering trade among small and medium enterprises Sutara said that Canada had taken the initiative in this direction two months ago. (hbk)