Indonesia – Canada Relations

Indonesia-Canada diplomatic relations formally began when the two countries signed an agreement to open diplomatic missions in their respective capitals on October 9, 1952. However, relations between the two countries started in 1948, when Indonesia was struggling to gain international recognition for its independence from its former colonial power in 1945.

Canada, through General Andrew McNaughton as the President of the United Nations’ Security Council, managed to break the deadlock in the negotiation on resolving the conflict between Indonesia and the Netherlands that resulted in the adoption of Resolution 67/1949, which endorsed the establishment of a Tripartite Commission to hold negotiations with Indonesia and the Netherlands. The Tripartite negotiations lead to the international recognition of Indonesia’s sovereignty in December 1949.

At the initial stage of Indonesia’s independence, Canada also supported the development in Indonesia through the Colombo Plan during the 1950s.

Achievements

In 2007, Indonesia and Canada succeeded in arranging a Policy Planning Consultation (PPC) I in Ottawa. In this meeting, both countries agreed to conduct training in Policy Planning, especially in Strengthening Foreign Policy Analysis Training for Diplomats from the Policy Analysis and Development Agency, Ministry of Foreign Affairs of the Republic of Indonesia. The training was held on June 18th – August 2010.

Following the success of the previous meeting, Indonesia and Canada held PPC II in Bali on January 26th –January 27th 2010. This meeting discussed domestic development, bilateral relations, foreign policy direction, and democracy. Indonesia and Canada agreed that the bilateral relationship between two countries is on an excellent track.

In the parliamentary sector, Indonesia and Canada signed the Canada-Indonesia Parliamentary Friendship Group (CIPFG) on April 27, 2009. The signatories are the Hon. Bryon Wilfert, PC, MP (Canada) and Prof. Bomer Pasaribu, MP (Indonesia). The Group is pursuing an objective to increase bilateral cooperation, mainly on the Parliamentarian side, as well as encouraging executives in each country to increase bilateral economic and trade relations.

Indonesia and Canada also maintain their close relations in security and defence cooperation. In line with the emerging threats of terrorism, Indonesia and Canada work together in combating terrorism through various programs and share common positions in numerous multilateral organizations. Furthermore, Canada also gave technical assistance in the Counter Terrorism on Nuclear, Biological and Chemical Weapons (CT-NBC) Program with the implementation of Training for Trainers and provided CAD $ 250.000 aid. Since 2004, Canada also actively participated in the Jakarta Center For Law Enforcement Cooperation (JCLEC) and the Bali Regional Counter Terrorism Process chaired by Indonesia and Australia.

In order to generate a recommendation policy for the government of both countries, since 2004, Indonesia and Canada actively arrange a bilateral symposium. The third bilateral symposium was held at the Munk Centre, University of Toronto, in April 2008. The result of this symposium is a recommendation policy to broaden the Indonesia-Canada cooperation in politic, economy, and social culture.

Indonesia and Canada are also continuing the Bilateral Dialogue on Human Rights to share experiences and knowledge in promoting the issue in both countries. The Government of Canada committed to support the enforcement of human rights in Indonesia. Both countries have successfully held Six Bilateral Dialogues on Human Rights. On the 6th Bilateral Dialogue on Human Rights held in Indonesia, both countries discussed the best practice of human rights action plan and regional human rights institutions. Indonesia and Canada agreed to improve the human rights cooperation into the new generation and regularly discuss the improvement in handling human rights issues.

Indonesia and Canada also signed the Joint Declaration regarding the implementation of the Bilateral Consultation Forum in 1997, to manage and measure the progress of bilateral cooperation programs.

Economy and Development

Canada has been one of the main trading partners and investors in Indonesia for years. Canadian companies invest in Indonesia in various fields such as mining, oil and gas, financial services, environment and agri-food.

Indonesia is Canada’s fourth biggest partner in investment in Asia, after Japan, Singapore, and Hongkong, with the total amount of investment nearly CAD $ 2 billion. Canadian investment in Indonesia can be divided into the natural resources sector and the finance sector. In the year 2007, Foreign Direct Investment (FDI) Canada to Indonesia was CAD $ 1.910 billion, increased to CAD $ 2.250 billion in 2008, and in 2009 further increased to CAD $ 2.453 billion. In order to protect investment from both countries, Indonesia and Canada are negotiating a Foreign Investment Protection and Promotion Agreement (FIPPA).

Furthermore, Indonesia and Canada signed an “Arrangement on the Mutual Recognition of Fish and Fishery Products Inspection and Control Systems” in 2002. Both sides agreed on information exchange on inspection and control of fisheries products exported from Indonesia to Canada, as well as updating the list of Indonesian fisheries exporters who comply with the Canadian Inspection and Control Standard.

On March 31st – April 1st 2006, Indonesian Minister of Trade, Mrs. Mari Elka Pangestu organized a bilateral meeting with Canadian Minister of Trade, Mr. David Emerson in Vancouver and accomplished significant results, as follows:

1. The establishment of the High Level Consultation Forum in Economy to discuss the improvement of Indonesia-Canada economic partnership. In the following years, this forum will be held annually by the Ministry of Trade of both countries.
2. Enhancement of the quantity of bilateral business to business meetings between Indonesia and Canada.
3. Exploring the probability of Foreign Investment Protection Agreement/Investment Guarantee Agreement between Indonesia and Canada.
4. Exploring the probability of Canada’s technical support in wood packaging inspection, phytosanitary, and fumigation of wood and bamboo products.
5. The Minister of Trade of the Republic of Indonesia also suggested a Mutual Recognition Arrangement (MRA) in forestry product.

Bilaterally, trade between Indonesia and Canada in January-October 2010 was slightly reduced compared to the same period in 2009. Trade deficit for Indonesia in 2010 is more than US$ 17 million.

In order to expand the market for Indonesian products in Canada, the Ministry of Trade, the Ministry of Marine Affairs and Fisheries and the Embassy of the Republic of Indonesia in Ottawa organized the Economic Promotion and Trade Mission Indonesia 2010 in Vancouver on June 29th 2010. This event was held to develop market access for Indonesian products, especially fisheries, coffee, chocolate, handicraft, textile, rattan, and wood.

Development Cooperation

The Canadian International Development Agency (CIDA) is one of the main development agencies from developed countries that provide assistance to Indonesia for years. Previously, CIDA’s programs in Indonesia were focused on institutional build-up and societal empowerment to overcome development challenges. Since the successful reform movement in 1999, the focus shifted towards the issue of governance, social development (health and education) and empowerment of small and medium enterprises (SMEs). CIDA is also financing cross-cutting projects that relate to gender equality and sustainable environment.

In 2009, CIDA announced Indonesia was among the 20 countries as its focus for assistance. The Government of Canada provided CAD $ 25 million to support Indonesia’s development. To solidify the cooperation, the Indonesian Government drafted a document called: ‘Jakarta Commitment: Aid for Development Effectiveness Indonesia’s Roadmap to 2014’, which was adopted by all of Indonesia’s developing partners on January 12, 2009. One of CIDA’s Programs cooperated with Red Cross Canada to provide a recovery program for all the victims of the Tsunami in Aceh.

Related link :

http://www.acdi-cida.gc.ca/Indonesia

Socio-Cultural and Tourism

The image of Indonesian Tourism increased with the revocation of the travel warning by the Government of Canada on February 11th 2009. Tourism campaigns to attract Canadian tourists have been carried out each year in various Travel Marts. In 2008, Canadian tourists to Indonesia amounted to 39,784 persons.

In education, the Embassy of the Republic of Indonesia continues to facilitate cooperation in higher education in Canada and Indonesia. One of them is the CIDA educational assistance program in collaboration between McGill University and the Ministry of Religion of the Republic of Indonesia.

The Government of Indonesia also cooperated with McGill University in arranging the interfaith dialogue to stress the importance of tolerance between the two countries held in Ottawa (2007) and Montreal (2008).

Facts on Indonesia-Canada Trade and Investment Relations

Bilateral Merchandise Trade

Foreign Direct Investment

Source: www.asiapacific.ca