As the Indonesia-Canada relations are nearing their fiftieth anniversary in the year 2002, the initiative undertaken by the Indonesia-Canada Chamber of Commerce to launch a book entitled "Indonesia-Canada Relations - Into the New Millennium" is indeed a commendable effort. This initiative is also timely as we now approach the new millennium offering challenges as well opportunities for the relations between Indonesia and Canada to expand. In retrospect, the Indonesia-Canada relations has been generally positive.   Nevertheless, its cooperation as a whole is not as tremendous as it deserves to be and thus needs to be further enhanced. It is therefore timely for both Indonesia and Canada to look into the opportunities offered to further develop this relations especially for the welfare of its peoples.

Looking at Indonesia, it has a very old cultural heritage and tradition, but it is still a relatively young nation. Indonesia became independent after a long struggle against its colonizer and proclaimed its independence on the 17^th of August 1945. This year, Indonesia has celebrated its 54^th year of independence. On the other hand, Canada has had a longer independence and it has just celebrated its 132 years. Since the establishment of diplomatic relations in 1952, Indonesia and Canada have always tried to enhance their bilateral relations and cooperation on the basis of mutual benefit, genuine interdependence, shared responsibility and partnership. Canada is one of the countries that has given its immediate international "de jure" recognition for Indonesia's independence in 1950 at the United Nations Security Council.

The Indonesian economy has had three decades of continuous steady growth fostered by political, social and macro-economic stability suddenly fell triggered by the Asian economic crisis of 1997. The crisis has sown the seeds of a major change in Indonesia's economy and political field. Subsequently, its GDP dropped and revealed underlying weaknesses in Indonesia's economic and financial structures, which prompted actions for unprecedented wide ranging fundamental reforms in all fields to strengthen its economic as well as its political and legal systems and to correct its past mistakes. With a growing 35 mil middle class, Indonesia has taken measures aimed at stabilizing its economy, restructuring its ailing banking system, and creating the conditions conducive for a more efficient, transparent and rule-based, market-based allocation of resources in several key sectors. These reforms involve, inter alia, a major review of anti-competitive practices, including monopolies, oligopolies and all other restrictive marketing arrangements that have survived Indonesia's trade and investment liberalization in the last decade. This will certainly contribute to create a more open, competitive marketplace, where few firms will remain protected. Thus, the reform process will bring about a bigger opportunity not only for Indonesia but also for Canadian business. Moreover, Canada on the other hand, has made efforts to expand trade and promote new investment supported by a strong domestic economy. Its gross domestic product grew 3.1% in 1998, with a population of over 30 million and with an income per capita of approximately C$ 29.000 fueled by strong domestic demand and a steady trade performance. For the first time in three decades, Canada has achieved a budget surplus at the federal level. Low inflation, low interest rates, and rising employment levels have put Canada in a good position to weather the current turbulence in world financial markets and to continue to be an active participant in world trade and investment. Furthermore, Canada 's economic activity has reflected strong private consumption and investment, supported by prudent monetary management and the stimuli of regulatory reform, closer internal market integration and pressure from greater international competition. Reduction and reform of public spending and increased budgetary revenues from economic growth underpin the improved fiscal situation. This conducive situation would provide Canada the opportunity to do business with Indonesia by exploring the new areas and potentials.

In response to the increasing economic interdependence in the global market, cooperation by both countries needs to be further strengthened. No country in the world is immune to a crisis. In fact, Canada has somewhat been affected by the Asian crisis. Therefore, closer cooperation in maintaining the global economy and finance with a view to minimizing the impact of the crisis should be further promoted.

Thus, while entering the millennium and in welcoming the golden anniversary of the bilateral relationship, we should enhance our endeavours to meet those challenges by putting forth the overall interest and welfare of the people of both countries in a broader perspective. At the same time we should also seek for opportunities offered by this situation through pro active and continued contacts and approaches at the government and business levels to make use of the economic potentials in both countries.