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)