RI, Canada sign deals worth $2b
RI, Canada sign deals worth $2b
JAKARTA (JP): Canadian Prime Minister Jean Chretien witnessed here yesterday the signing of 54 new business deals between Indonesian and Canadian businesspeople worth C$2.76 billion (US$2.02 billion).
"This is a solid base to build on, and Team Canada has taken on that building job in earnest -- with the deals signed today," said the Canadian prime minister at a luncheon meeting hosted by the Indonesia-Canada Chamber of Commerce before the mass signing.
The prime minister is heading a 300-strong delegation of Canadian business people in a trade mission, called Team Canada, that has already taken him to India and Pakistan. He is leaving today for a similar visit to Malaysia.
He stated that the last few years saw trade between Indonesia and Canada grow at a very rapid rate and that both countries have been major forces for trade liberalization through the Asia Pacific Economic Cooperation (APEC) organization.
"We want even more trade, investment and technological cooperation with you, that will translate into jobs and prosperity for the people of both of our countries," said the Canadian prime minister, who was also accompanied by two federal ministers and six provincial premiers of his country.
"Never before in the history of our country have we gathered provincial premiers and so many business leaders in one large commercial visit. And it worked beyond our greatest expectations," he said.
Contracts
The 54 new business deals include C$565.67 million worth of commercial contracts and C$2,195.89 million in agreements in principle, including memoranda of understanding and letters of intent.
Among the 54 deals was a memorandum of understanding between state-owned PT Aneka Tambang in association with PT Iroda Mitra Corporation of Indonesia and SNC Lavalin Inc. of Canada, to undertake a feasibility study for the Pomalaa Hydroelectric power generation plant in Sulawesi.
In the environmental sector, PT Putra Alvita Pratama of Indonesia signed a contract with Canora Asia Inc. of Canada to establish a joint venture to build, own and operate the water supply, waste water treatment and solid waste management system for a new city, Kota Legenda, in Bekasi, West Java.
Yesterday's agreements brought the value of the business deals signed so far by Canada during Team Canada's trade mission to C$8.2 billion.
Besides the C$2.76 billion business deals, Asamera Overseas Limited, a wholly owned subsidiary of Gulf Canada Resources of Calgary, and Talisman Energy, signed an acknowledgment of its memorandum of understanding with the state-owned oil company Pertamina of Indonesia. It will result in new gas infrastructure investment of C$800 million.
Before the mass signings, the Canadian prime minister held talks with Indonesian President Soeharto.
"The two leaders agreed on the need to further enhance bilateral relations," said State Secretary Moerdiono.
He quoted President Soeharto as saying that Indonesia still needs foreign aid but that increased economic cooperation, especially in trade, is now more important.
"During the meeting, Chretien offered Canadian expertise and investment in urban light train transportation and in the field of telecommunications and nuclear power generation," said Moerdiono after the two leaders' meeting.
Soeharto said that Indonesia is planning to build a nuclear power plant with a 1,800 megawatt capacity that would clearly need foreign investment. "But this will be a last resort to meet our growing electricity needs," he noted.
Indonesia is already Canada's largest export market in Southeast Asia. Their two-way trade was estimated to exceed C$1.1 billion last year, with Canada's exports to Indonesia worth C$475 million and its imports C$522 million.
Until last year, Canada's cumulative direct investment in Indonesia, Canada's largest in Southeast Asia, was valued at around C$6 billion.
"There are now about 100 Canadian companies and 23 joint ventures operating in Indonesia. Many more are thinking about setting up shop here in the months ahead," said Chretien. (13)