Canadian premier to lead large mission

Canadian premier to lead large mission

JAKARTA (JP): Canadian Prime Minister Jean Chretien will lead
hundreds of business executives in a mission called Team Canada
during his Indonesian visit early next year, Canadian Minister
for International Trade Roy MacLaren said here yesterday.

The prime minister will make Indonesia his main destination on
his planned trip to South and Southeast Asia, said MacLaren, who
ended his two-day visit here yesterday.

MacLaren, accompanied by 25 senior executives of international
firms, met with host Minister of Trade Satrio B. Joedono and
State Minister of Investment Sanyoto Sastrowardoyo during his
visit here.

"The prime minister's Team Canada will represent the largest
Canadian business delegation ever to travel to Indonesia,"
MacLaren told a breakfast meeting hosted by the Indonesia-Canada
Chamber of Commerce at the Shangri-La hotel here.

Team Canada, said Maclaren, is a synchronization of efforts by
business people and the Canadian government to focus on Indonesia
and the Asia-Pacific region in preparation for the 21st century,
which some observers have labeled the Pacific Century.

According to MacLaren, Team Canada will cement expanding
economic ties by helping Indonesia accelerate its technological,
natural and human resource development.

The prime minister is also slated to open the new Canadian
Education Center here during his visit.

"The center, which will promote Canada as a destination for
Indonesian students seeking post-secondary and tertiary education
training abroad, will contribute further to expanding people-to-
people linkages between our countries," said MacLaren.

Indonesia and Canada enjoy a strong bilateral trade and
investment relationship. The two-way merchandise trade is
estimated at C$1.1 billion (US$814.8 million) for this year,
while the value of Canadian investment is C$5.0 billion.

Largest market

"In Southeast Asia, Indonesia is the largest market for
Canadian merchandise exports; it accounts for well over C$100
million annually in service exports, as well as being the most
important destination for direct foreign investment," said
MacLaren.

He said that Canadian firms, having extensive expertise in
harnessing natural gas resources for energy and petrochemical
application, want to work with Indonesia in meeting the ever
rising demand for energy, including conventional, coal-fired and
hydro power.

"We are also looking for new sectoral investment
opportunities," said MacLaren.

The minister also opened the new office of SNC-Lavalin,
Canada's largest consulting engineering company, here on Monday.

According to the company's vice president, Pierre Dufour, SNC-
Lavalin Groups has been active in Asian development for more than
two decades with more than 200 contracts, including 50 in
Indonesia.

SNC-Lavalin Group is a publicly listed company on the Montreal
and Toronto stock exchanges with operations in engineering-
construction and manufacturing in 26 countries.

There are at least one dozen Canadian engineering companies
working in an array of sectors with local partners in Indonesia.

Canadian firms operating in Indonesia include large,
internationally renowned corporations and small and medium-sized
enterprises (SMEs) with unique expertise in emerging technologies
and specialized services.

The Export Development Corporation (EDC) of Canada has
expanded its lending programs to include not only government-to-
government transactions but also support for private sector
procurement.

The facility, which will support transactions with a value of
C$100,000 or more, is of particular importance to Canadian and
Indonesian SMEs which require export credit supports.

MacLaren said there are already a number of such transactions
in the pipeline. They will add to the extensive EDC portfolio in
Indonesia, which has accounted for over C$800 million in
financing support since the 1970s.

Negotiations between both governments have begun towards the
conclusion of a foreign investment protection agreement which
will spur direct investment by Canadians in Indonesia.

"An air service agreement is to be negotiated next month to
permit the establishment of a direct air link between the two
countries," said MacLaren.

He said that Indonesia and Canada share a commitment to
increase openness in the world trading system, as signatories to
the World Trade Organization and proponents of accelerated global
trade and investment liberalization.

Indonesia's ongoing privatization program, recent economic
reform measures and the removal of impediments to increase trade
and investment flows are regarded by MacLaren as visible
demonstration of the country's commitment to ensure the success
of the Asia-Pacific Economic Cooperation (APEC) forum and its
objectives.

MacLaren will proceed to Osaka, Japan, where he will join
APEC's ministerial meeting later this week.(kod)