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ACCELERATINGINDONESIA’S GROWTH

Opportunities to Enhance

the Indonesia-Canada Economic Relationship

INDONESIA CANADA CHAMBER OF COMMERCE

Policy Paper:



This policy paper is presented by theIndonesia Canada Chamber of Commerce

to the Government of Indonesiaunder President Joko Widodo

in the spirit of goodwill and with a belief insupporting mutually beneficial growth

between the two great countries ofIndonesia and Canada



i

About ICCC

The Indonesia Canada Chamber o Commerce, widely known as ICCC, dedicates itsel to supporting positive business growth or socialand economic development in Indonesia and Canada. The ICCC serves its members, the Indonesian-Canadian business community,by adopting the role as a “bridge”, either between representatives o various business interests or between business and government.

Over the last several years the ICCC has undertaken a rejuvenated approach and has greater ocus on how to sustainably maintain itsposition as a prominent chamber offering high-value membership activities and services to its constituents while collaborating moreclosely with affiliates such as Indonesian government Ministries, Embassy o Canada, the Canadian Alumni in Indonesia (CALINDO),the Canadian Education International (CEI), and the Canadian Women Association (CWA).

The Chamber also aims to provide members with a platorm to meet, exchange inormation and discuss speciic cross-cutting issueswith contemporaries across various sectors. This communication allows the success o Canadian and Indonesians business to beshared across the organization.

Objectives

The ICCC has the ollowing objectives:l To promote and encourage trade, investment and other economic relations between Indonesia and Canada, particularly in the

private sector;

l

To represent, in an objective manner, the views, interests and concerns o members o the Chamber; l To assist in the promotion o inter-cultural relations between the people o Indonesia and Canada;l To provide practical assistance and inormation in support o new and existing business opportunities or both Canadian

businesses in Indonesia and or Indonesian businesses in Canada;l To provide value-added services to the membership in the orm o publications, business meetings and trade/investment

missions;l To promote communication, mutual support and the development o business opportunities between members.

Partners

The ICCC works closely with KADIN (Kamar Dagang dan Industri), CALINDO (Indonesian alumni o Canadian schools), and the CanadianWomen’s Association (CWA) to bring together varied groups to pool resources and promote similar interests. These partnershipsensure that both Indonesians and Canadians are well represented in Indonesian society and business.

Join the ICCC

The structure o the Chamber consists o a board o executives led by a president, three vice-presidents, a secretary and treasurer.There are also a number o standing committees led by various members o the organization. Individuals or corporations interested

in joining the ICCC are welcome to contact email the ICCC at [email protected]

ICCC Plenary Board

Board Members

Chris BendlPresident

Richard EmmersonVice President

Edwin PieroelieSecretary General

Nyoto IrawanVice President

Tony CostaTreasurer

Ipung KurniaVice President

Board of Executives

Mario BabinChairperson– Membership Committee

Dean BouldingChairperson – CSR & SustainableDevelopment Committee

Tracy ReynoldsChairperson– Policy Committee

Stephanie CookeChairperson– Event Committee

Luc St. AmourBoard Member

Gregory ElmsBoard Member

Gary PlantBoard Member

Charles T. KiddBoard Member

Henry LowisBoard Member

Helmi MaemozaxBoard Member

Derrick McClureBoard Member

Neil PrendergastBoard Member

Cameron ToughBoard Member

Helen M. VanwelBoard Member

Aditi DixitBoard Member

Christian TjoaBoard Member

Enaliya SudartamaBoard Member

Francisco GoncalvesBoard Member

Tracy DiehlBoard Member


Indonesia Canada Chamber of Commerce 2015 Policy Paper



PREFACE: ICCC PRESIDENT

As business leaders working in Indonesia, we have the aspirationas good corporate citizens to express our views on the localbusiness climate and to offer suggestions on ways to improve it.As businesses who are here or the long-term we also hold a desireto assist the Indonesian Government in promoting itsel as aninvestment and trade destination as well as assisting Indonesianinvestors wishing to trade or invest in Canada.

The genesis o this publication was a sincere desire o the businessleaders o the Indonesia Canada Chamber o Commerce (ICCC)to provide the incoming Indonesian administration with someconstructively crafed suggestions on how to support criticalindustries where our members compete and to highlight areas oopportunities in other important sectors. The singular objectiveo the exercise was to make a positive contribution to the bilateraldiscussions and to strengthen the riendship that already existsbetween our two great nations.

We began this work beore the outcome o the general andpresidential elections were known. We solicited hundreds o expertopinions rom businesspeople with extensive networks and who

could provide invaluable insights on concrete policy actions that would accelerate the country’s growthand development.

Throughout this process, and or the past ew years, the Canadian Ambassador and Senior TradeCommissioner have challenged us to raise awareness o “the Canadian brand” in Indonesia and topromote Indonesia-Canada bilateral trade. We have made important steps in this direction with theirsupport and guidance.

Since 2012, the ICCC has worked to become a more vibrant, vocal and active participant in the localbusiness community. With the solid inancial backing o our corporate members, we have grown ourmembership size and diversity, the breadth and requency o activities including business and socialnetworking opportunities, and introduced publication and advocacy initiatives.

We have also strengthened our collaboration with our partner associations such as the Canadian Alumniin Indonesia (CALINDO), the Canadian Education International (CEI), the Canadian Women’s Association(CWA), the Indonesian Chamber o Commerce and Industry (KADIN), the Indonesia-Canada Committeeo KADIN (KIKAN) as well as other Business Chambers. As we have made this transormation we haveseen a renewed sense o excitement about the possibilities or Indonesia and Canada’s riendship to betaken to new heights.

We hope that this publication increases your awareness o the Canadian presence in Indonesia, and othe opportunities that exist to broaden and deepen our growing bilateral relationship in the years tocome. We sincerely welcome an opportunity to have a urther dialogue with the Indonesia Chamber oCommerce regarding the opportunities or ideas presented in this publication.

Chris BendlICCC President

iiiIndonesia Canada Chamber of Commerce

2015 Policy Paper



These are exciting times in the Canada-Indonesia relationship. Ourcommercial and people-to-people ties continue to grow rapidly,and Canada looks orward to working closely with the Indonesiangovernment under President Joko Widodo.

Whether it be through our work together at the G20 or APEC; buildingbetter understandings on human rights, democracy, and goodgovernance; collectively combating terrorism and strengtheningdeense relations; or working to expand our increasingly robusttrade and investment partnership, Canada and Indonesia continueto do so in the spirit o riendship.

Wherever I have traveled in Indonesia since my arrival in 2013, I havebeen struck by the depth o commitment o the Indonesian peopleto creating a prosperous, democratic, and pluralistic society.

I have been equally impressed by how Indonesians are determinedto play a larger role in world affairs, and how Indonesia has takenon an increasingly robust economic leadership role in line with itsgrowing economic status!

Our bilateral relationship is mature and ully relects the strategic partnership Indonesia and Canadahave built as global leaders supporting the growth o international trade and investment. This maturerelationship allows us to engage in a rank and open dialogue which ensures that we can celebrateour successes, while working together to address issues that may be limiting our economic growthpotential.

Leading Canadian companies such as BlackBerry, SNC Lavalin, Manulie, Sunlie, Talisman, Husky,Hatch, Bombardier, McElhanney and CAE to name but a ew, are ully engaged in responding to theneeds o the dynamic and rapidly growing Indonesian market. Indonesia is Canada’s largest bilateraltrading partner in the Southeast Asian region, and is home to a considerable amount o Canadian directinvestment. This investment has created thousands o jobs and has helped to increase prosperity anddevelopment across Indonesia.

Indonesia has not only been a recipient o signiicant investment rom Canada, but it has also been agrowing source o oreign direct investment to Canada. Indeed investment by Indonesian companies toCanada is now worth billions o dollars. It is upon this growing oundation o bilateral investment thatour joint uture prosperity will be built.

Looking into the uture, our shared values o promoting prosperous, democratic societies will continueto be the hallmarks o our relationship.

With this in mind, I am pleased that the Indonesia-Canada Chamber o Commerce has prepared thispolicy paper which outlines the successes o our vibrant economic relationship, while outlining how wecan build urther upon it.

Donald BobiashCanadian Ambassador to Indonesia

FOREWARD: CANADIAN AMBASSADOR TO INDONESIA

iv Indonesia Canada Chamber of Commerce

2015 Policy Paper



Firstly, I wish to congratulate the Indonesia Canada Chambero Commerce (ICCC) or publishing this policy paper. Thispaper is very timely as it is released at a time when the newgovernment under President Joko Widodo has outlinedthe national priorities or the next ive years o which theacceleration o Indonesia’s economic and social developmenthas become top on the list.

Thereore, I am o the opinion that ICCC’s policy paper entitled

“Accelerating Indonesia’s Growth: Opportunities to Enhancethe Indonesia-Canada Economic Relationship” will helpreaders gain insights about Indonesia’s untapped economicpotentials.

With a population o more than 240 million and having a largemiddle class, Indonesia is an ideal destination or Canadiancompanies to invest. Indeed, Indonesia and Canada arenatural partners as our two countries share similar conidencein the democratic system o governance and the value o

respecting human rights. The democratic system gives room to both our people to speak theirmind and contribute actively in our respective national development.

I am pleased that Canadian business communities continue to engage in various economicopportunities in Indonesia. We welcome your presence and we wish to see more Canadianinvestors exploring business opportunities, both in our land and in our vast sea territory.

Being an archipelago, Indonesia’s coastline is the second longest afer Canada’s. Our twocountries have been developing a close cooperation in combating transnational crimes atsea, including the challenge o people smuggling. I believe we can also develop a mutuallybeneicial maritime cooperation. Indonesia can learn more rom Canada’s experiences inmaximizing its sea potentials—rom the sustainable use o its marine resources to deep-seaexploration.

As a inal note, ICCC can play a strategic role in generating more awareness and conidenceamong Canadian business community about Indonesia—a country with abundant potentialsthat shall not be overlooked.

Teuku FaizasyahIndonesian Ambassador to Canada

FOREWARD: INDONESIAN AMBASSADOR TO CANADA

vIndonesia Canada Chamber of Commerce

2015 Policy Paper



ACKNOWLEDGMENTS

vi Indonesia Canada Chamber of Commerce

2015 Policy Paper

The message in this policy paper is clear: There issigniicant mutually beneicial value to be gainedrom increasing the social and economic ties betweenthe great countries o Indonesia and Canada. Thispolicy paper attempts to share key insights into howwe can expedite maximizing those beneits.

This policy paper was prepared in close consultationwith Canadian companies and organizations whohave in-depth experience working in Indonesia witha ocus on ways we can work together to enhance the

Indonesia-Canada economic relationship.

The ICCC would like to thank all o the PresidentDirectors, Directors, and contributors or theirvaluable time and ull support during the researchand inormation gathering process.

The ICCC Policy Paper team was led by RichardEmmerson and supported by Chris Bendl, TracyReynolds, Neil Prendergast, Cameron Tough, DeanBoulding, Greg Elms and Edwin Pieroelie. Input intothe ICCC policy paper was given by all members o theICCC board.

Greg Elms and Edwin Pieroelie provided overallediting, oversight, and supervision. James Clinton,a law student at Queen’s University, dedicated hissummer break to lead survey preparation, in-depthinterview implementation, and irst-phase datacompilation. The design team at klirkom (www.klirkom.com) led by Ray Christie prepared the reportor publication.

Cost or developing this policy paper were covered inlarge part by the law irm SSEK.



About ICCC i

ICCC President’s Preface iiiForeward By Canadian Ambassador To Indonesia iv

Foreward By Indonesian Ambassador To Canada v

Acknowledgements vi

Table Of Contents vii

TABLE OF CONTENTS

Oil And Gas

Infrastructure

Non-Bank Financial Services

2

10

1620

6

14

Agriculture

Renewable Energy

Mining

Key Findings 1

24Conclusion

Quick Facts viii

Executive Summary ix

viiIndonesia Canada Chamber of Commerce

2015 Policy Paper



QUICK FACTS

COUNTRY FACTS

Distance from West to East

5,362 km

5,495 km

Major Trading Partners

to Canada :

1,334 million USD870 billion USD

1,893 billion USD

GDPin2013 Total Export Major Commodities Export

to Indonesia :

1,855 million USD

to Canada:

Rubber, Electric Machinery, Apparel, Footwear

to Indonesia:

Fertilizers, Cereals, Aircraf, Wood Pulp

248 million 35 million

138 people/km2 4 people/km2

27.9 years 40.7 years

3,475 USD 51,958 USD

300 600

Bahasa Indonesia English and FrenchOfficial Language(s)

Population

Population

Density

Median Age

Income Per Capita

Number of Distinct

Native Ethnic Groups

Government Type

Unitary PresidentialConstitutional Republic

Federal ParliamentaryConstitutional Monarchy

Annual Natural Gas

Production

Total Forested Area

Total Cultivated Land

76,250,000 m3 143,100,000,000 m3

884,950 km2 (46 %) 3,101,340 km2 (31%)

330,037 km2 (18%) 474, 681 km2 (5.2%)

Bensbach River estuary, Papua9°7′S 141°1′Ea

Pulau Bengal Island, Aceh5°47′N 94°58′E

Boundary Peak 187, Yukon

60°18′N 141°0′W

Cape Spear, Newoundland

47°31′N 52°37′W

ECONOMIC STRENGTH

Mining

Agriculture

Oil and Gas

Manufacturing

Construction

viii Indonesia Canada Chamber of Commerce

2015 Policy Paper



EXECUTIVE SUMMARY

Indonesia and Canada have developed a solid, multiaceted, and mutually beneicial relationshipduring the past 60 years, a relationship which has the potential to urther broaden and deepen in theyears to come as Indonesia’s growth accelerates.

While our two countries are physically separated by the Paciic Ocean, we can also see ourselves aspartners around the shores o this Ocean, brought together by the similar national challenges that existor two vast countries with diverse, disperse populations and abundant natural resources. Today, weare increasingly brought together both commercially and culturally at the speed o light by advances incommunications technologies.

Our two countries have a vibrant and expanding trade and investment partnership, with total bilateral

trade amounting to $3.4 billion in 2014 and growing at 15-20% per year. A diverse range o Canadianirms have invested over $3.2 billion in Indonesia, in communications, energy, mining, environment,inancial services, aerospace & deense, education, inrastructure, consumer products, health, power,agri-ood and agriculture. These investments have created thousands o jobs, have linked Indonesiato international markets, acilitated technology inlows and supported Indonesia’s move up the globalvalue chain. Indonesian irms are increasingly becoming aware o investment opportunities in Canada,and making sizable investments. Canada is welcoming those investments with open arms.

Canadian companies have demonstrated a preerence or long-term investment strategies whichinclude the development o strong local business and social linkages within Indonesia. An integral parto this long-term strategy is the transer o knowledge and expertise, an approach which will beneitIndonesia more and more over the long term. Canadian irms understand the importance o mutualbeneit, and ind it also to be in their own interest to hire or develop national expertise wheneverpossible.

The Government o Canada also supports the Government o Indonesia in a number o developmentpriority areas, including building economic oundations, investing in people, and advancing democracywith an ultimate objective o improving sustainable economic prosperity or the poor. A currentportolio o a dozen development projects ocus on enhancing public inancial management, naturalresource management, and on human resources development to name only some o the areas o ocus.

In this publication, we have initially ocused on six key sectors which align both with Canadian strengthsand with Indonesia’s priorities or accelerated development through private sector investment. Thesesectors are Oil and Gas, Inrastructure, Agriculture, Renewable Energy, Non-Bank Financial Services,and Mining. In each o these six sectors, we have outlined how Canada’s experience, capabilities andinterests support and it well with Indonesia’s growth and private sector development objectives.Based on the experience o our private sector stakeholders in Indonesia and around the world, we have

included constructive suggestions regarding steps that the Government o Indonesia could take toenable or accelerate investments in these priority sectors.

It is hoped that the constructive suggestions provided in this publication can stimulate a dialoguewhich will ultimately lead to a urther expansion o the economic partnership between Canada andIndonesia or mutual beneit.

ixIndonesia Canada Chamber of Commerce

2015 Policy Paper



ACCELERATING

INDONESIA’S GROWTHOpportunities to Enhance

the Indonesia-Canada Economic Relationship



Indonesia Canada Chamber of Commerce

2015 Policy Paper 1

Different but Similar

There are clear differences between Indonesia and Canadawhen our two countries are compared in terms o populationsize, GDP per capita, and o course climate. However thereare some very important similarities between the two nations.Canada and Indonesia are both culturally diverse and Canadacould easily adopt Indonesia’s motto “unity in diversity”. Bothcountries are geographically expansive (Indonesia at 1,904,569km2 and Canada at 9,984,000 km2) and must deal with themany challenges associated with managing and developinga large country. Both countries have several major cities

but also many smaller cities and towns, and many isolatedcommunities. Canada and Indonesia both also have stablemacro-economic environments and strong public inanceundamentals and are both key ounding members o theG20. Canada and Indonesia are both rich in natural resources,and while natural resources orm an important part o botheconomies, Canada and Indonesia are well positioned to takeadvantage o many other economic growth opportunities. Interms o trade and investment policy, Canada and Indonesiahave both swung rom periods o protectionism to greateropenness. With regards to protection o the environment, bothCanada and Indonesia see this as an essential oundation osustainable economic growth.

Strength in Knowledge Sharing

Indonesia has a lot to offer Canada and Canada has a lot to offerIndonesia. Canada is a world leader in science, technology andinnovation, and is recognized as one o the most innovativeand competitive economies in the world. Canada generatesover 4% o global knowledge, despite accounting or just 0.5%o the world’s population.

Canada’s perormance is consistently strong in measuresrelated to the quality o education, market regulation, andsocial actors. Since 2006, over $9 billion has been invested insupport o science, technology, and the growth o innovativeirms, thereby ostering a world-class research and innovationsystem that supports Canadian businesses and economicgrowth.

Vibrant Trade and Investment

Today the total bilateral trade relationship amounts to $3.4billion, growing at 15-20% per year. Billions o dollars oinvestment rom Indonesian companies are planned overthe next several years, which adds to the billions o dollarsCanadian companies have invested in Indonesia to date,creating thousands o jobs. The most recognized Canadiancompanies include:

• Blackberry, Open Text, ToonBoom, Wesley Clover, C-COMSatellite, MDA, operating in Communications Technology

and Innovation; • Talisman, Husky, Pan Orient, Master Flo, McElhanney,Enerlex, Vale, Hatch, Hatield, Terralog, Redpath,Golder Associates, CBM Asia active in the Energy, Miningand Environment sectors;

• CSL Asia Shipping Pte Ltd, a division o The CSLGroup providing marine shipping and handling servicesthat support the Mining sector;

• Manulie and Sunlie providing Financial Services; • Bombardier, Viking, CAE, Eomax, Ultra in Aerospace

& Deence; • LaSalle International College o Design, University o

Waterloo, Aviation Strategies, McGill, UBC, University oAlberta, University o Toronto, SFU, Humber College(to name a ew) in supporting Indonesian’s choices

in Education; • SNC Lavallin, B+H, Airport Kinesis, Morrison Hershield

operating in Inrastructure; • MAC Cosmetics, La Sensa, Nygaard in Consumer Products; • Jamieson Vitamins, ImmunoTech, Cellex-C in Health; • Ballard and Manitoba Hydro in Power; and

• Canpotex, Maple Lea Foods, McCain, Cavendish, Voortman Cookies, Clearwater Seaood in Agriood&Agriculture.

Canadian Experience and Insight: Supportingthe Acceleration of Indonesia’s Growth

Canadian companies have had the privilege to work in key

sectors in Indonesia and have the experience and insight tosupport the acceleration o Indonesia’s growth. Discussionwith Canadian companies and organizations provides valuableinput rom a partner and a riend.

Indonesian and Canada share a strong and mutually beneficial

relationship, and have done so for many years. The relationship

includes investment and trade, government cooperation,

development assistance and visits of citizens to the other country.

There are many reasons to believe this relationship will continue

to strengthen going forward.

KEY FINDINGS

Partners Hand-in-Hand across the Pacific

For over 60 years Indonesia and Canada have shared a strong and mutually beneicial relationship based on investment and trade,

government-to-government initiatives, development, tourism, and education. Today many agree that Indonesia and Canada haveprogressed rom being just ‘neighbours across the Paciic’, to becoming true partners or sustainable and mutually beneicial growth.



OIL AND GAS SECTOR

Ideas and Input to support the

Indonesia and Canada continue to advance in

developing their natural resources in a rapidly

changing local and global environment and

while there is progress in renewable energy

production, hydrocarbons remain a oundation

o Indonesia’s export revenues




2015 Policy Paper 3

Summary Background

Both Indonesia and Canada have beneited signiicantly romthe petroleum industry,with commercial oil production startingin Canada in the 1850s and Indonesia in the 1880s. (Interestingly,evidence suggests Canadian drillers were plying their services inJava beore the end o the 19th century.)

Today Indonesia and Canada continue to advance in developingtheir natural resources in a rapidly changing local and globalenvironment and while there is progress in renewable energyproduction, hydrocarbons remain a oundation o Indonesia’s

export revenues, accounting or 58% o gross revenue in 2012(US$33.48B).

One o the challenges that Indonesia currently aces is that anestimated 70-80% o ields are maturing and recent declines inexploration activities have contributed to diminishing productionwith output o 870,000 barrels o oil equivalent per day (boe/d)in 2013 down rom peak production o 1.387m boe/d in 2001.Estimated reserves are projected to all to 3.4bn by 2022 in theabsence o new discoveries.

To stimulate exploration, the Indonesian government entersinto production sharing contracts (“PSCs”) with both domesticand international oil and gas companies whereby the investorassumes the ull inancial risk o exploration activities. I

successul, the government and the investor split the revenuegenerated by produced hydrocarbons and the investor is also

able to recover the exploration and development unds itincurred on the project.

Under these PSCs there are a number o Canadian oil and gascompanies currently active in Indonesia working with Indonesianpartners to explore or new discoveries. Beyond exploratoryactivities, the Indonesian-Canadian relationship in this sector hasdeepened as Canadian companies have reached the productionphase o speciic projects and are delivering results to investorsand beneits to the Government o Indonesia.

While strategically maximizing revenues rom oil, Indonesia hasthe 11th largest conventional gas reserves in the world, withconventional reserves o an estimated 157 trillion cubic eet (tc).With the development o re-gasiication acilities, Indonesianutility giants, PLN and PGN, are now contracting to purchaseLNG produced within Indonesia and these sales o domestic LNGproduction now set the high mark or pipeline gas.

The ICCC has spoken with the leadership o Canadian companiesworking in the oil and gas sector. There is resounding agreementamongst these Canadian companies regarding the large numbero opportunities available to Indonesia and many have sharedkey strategic actions Indonesia can take to enable the realizationo these opportunities.

OIL AND GAS SECTOR




2015 Policy Paper 4

Maximizing Opportunities

Quality and innovation deine Canada’s oil and gas industry.Canadian companies and research institutes offer solutions atevery stage o energy resource development, rom exploration todistribution. This expertise extends to hydrocarbon engineering;inrastructure development; geophysical and seismic services;drilling rigs and related advanced technology; environmentalmanagement; upgrading, processing, reining; and, pipeline

networks. Two areas where there is incredible opportunityor Indonesia and Canada to collaborate are, (i) enhanced oilrecovery; and, (ii) unconventional gas.

Enhanced Oil RecoveryCanadian companies are ready to support the Indonesiangovernment to apply enhanced oil recovery (EOR) technologiesto stimulate oil production in marginal or abandoned properties.Using EOR or tertiary techniques, 30 to 60 percent or more othe reservoir’s original oil can be extracted, compared withonly 20 to 40 percent using primary and secondary recovery.Developed over decades, ofen in complex reservoir conditions,Canada’s EOR expertise encompasses thermal recovery as wellas chemical and gas injection including CO2-EOR. As an example,a CO2-EOR project in the province o Saskatchewan, started in

2000, is expected to extend the lie o the Weyburn Oil Field or anadditional 25 years and recover an additional 130 million barrelso oil.

Unconventional GasIndonesia’s uture will be dominated by gas which comprises~85% o the country’s hydrocarbon reserves. In terms ounconventional gas potential, estimates rank Indonesia in theglobal top ten. Reserves o shale gas are estimated at 574 tc andcoal bed methane (CBM) at 453 tc, but with minimal developmentto date. Having extensive experience in both shale gas and CBM,over 175,000 wells have been hydraulically ractured and 20,000CBM well producing connections established in the Canadianprovince o Alberta alone. Canadian oil and gas equipment andservice suppliers are world leaders in high volume and multi-stagehydraulic racturing techniques, drilling/casing, gas stimulationor CBM including advanced wellhead pump and sensorequipment, sour gas treatment and lare reduction technologies.Further, Canada has developed a strong regulatory rameworkencompassing both conventional and unconventional gas, whichaddresses key issues such as land access and aquier protection.

Pro-Growth Policy Actions

Strengthening Inter-Ministerial and Department CoordinationThe Jokowi and Kalla leadership will beneit greatly romemphasizing better coordination and cooperation amongstmultiple government ministries and departments which willsigniicantly support increased oreign and domestic investment.This, in turn, will result in increased exploration activity and

increased investment into producing ields.

A good example o past government inter-ministerialcooperation in the oil and gas sector occurred when a shipping

law,originally set to come into effect in 2011,required vesselsoperating in Indonesian waters to be domestically owned.However, no Indonesian shipping companies owned the manykinds o specialized vessels commonly used within the oil andgas industry, such as jack-up rigs and seismic vessels. Strictimplementation o the law would have severely impactedexploration activities and, worse yet, would have resulted inseveral producing oil and gas ields to have had to be capped.Fortunately, relevant government ministries worked together toagree a suitable and practical exemption or the speciic vesselsvital to the oil and gas industry.

Follow through with President Joko Widodo’s mandate ofstreamlining licensing and permittingIn his presidential campaign, President Jokowi on numerousoccasions voiced concern over the layers o bureaucracy andlengthy time periods required to obtain licenses and permits. Inthe oil and gas sector, investors need to obtain up to 69 differenttypes o permits throughout the lie o a project. Those permitsrequire investors to engage in over 280 different processes withmore than 17 different government agencies. One positive stepwill be to require relevant government agencies to sign on toa common streamlined and simpliied “one stop” permittingramework to ensure quality, efficiency and transparency.

PSC RELATED ACTIONS

Developing PSCs with more favorable termsInvestment in the sector will increase i the government continuesto provide alternatives to PSCs with strict “investor incurs allrisk” terms, which limit the number o irms willing to invest inIndonesia and hence limit overall investment. Positive initiativeswhich can be expanded include the government (1) makingavailable an increasing number o contract areas, (2) allowinginvestors to conduct joint studies with Indonesian Universities,(3) direct bidding o new exploration areas, and (4) providingmore avorable economic terms or PSCs in high risk, high cost

areas. Innovative PSC terms will combat the country’s wideningsupply/demand gap, and introduce incentives which will makeIndonesia an attractive destination or exploration investors.This is especially relevant given the act that Indonesia’s newexploration rontiers lie in more remote locations, including theeastern, deep water areas o the country where exploration ishigher risk and requires more complex and costly technology.

Clarity, Consistency, Legal Certainty related to PSCsClarity, consistency, and legal certainty is critical to Indonesia’senergy industry, an industry which requires policy stabilityin order to secure long term investment and inancing. A keyaction which could be taken by the Indonesian governmentwould be to create an amendment to the current Oil and GasLaw which addresses the constitutional requirements set out by

the Constitutional Court, minimizing the risk o challenges to theexistence o the oil and gas regulator and ensuring that rightswill not be unilaterally removed, diminished or restricted by theintroduction o new laws or regulations.

OIL AND GAS SECTOR




2015 Policy Paper 5

This action by the Indonesian government will reduce theperceived risk or local and oreign industry players by creatinga stable and secure legal ramework necessary or the regulationo the upstream oil and gas industry and thereby providing thesanctity o contract or all existing PSCs.

Summary Case Study 1:

A 13 November 2012 Constitutional Court decision declared

the State body BPMIGAS (the upstream oil and gas regulator)unconstitutional, creating deep uncertainty and eroding investorconidence in the oil and gas sector.As a temporary measure, the Government created SKKMIGAS,a special task orce under the Ministry o Energy and MineralResources (“MEMR”), to ulill the roles and responsibilities oBPMIGAS.There were critical questions lef unanswered including: • Who is the counter party to existing PSCs? • Who will sign uture PSCs on behal o the Government?

• What will prevent the Court rom declaring the same ate orSKKMIGAS?

Develop a Clear PSC Extension Process

The current law recognizes PSC extensions and a clear applicationo the extension process will improve certainty, conidence, andenable investment in and continued development o energyresources.

MEMR is working to issue new regulations and in order to developa clear PSC extension process, the regulations will need toinclude clear time lines on government actions and decisions,while also providing enough lexibility or the government andrelevant investors to ensure sufficient mutual beneit to justiythe extension.

Investors will look to invest in new projects, such as enhancedoil recovery on maturing ields, when they are able to calculate areasonable rate o return on their investment over the lie o theextension period. The investments gained rom implementinga clear PSC extension process could play a signiicant role inenabling the government to meet its oil and gas productiontargets. This is especially relevant now because within the nextive years, approximately twenty PSCs (which cover nearly 30%o Indonesia’s oil production)will expire and over the next tenyears,PSCs responsible or more than 60% o Indonesia’s oilproduction will expire.

Retraction of Government Regulation 79/2010 (“GR79”), Landand Building Tax (LBT) on Production Sharing Contracts(PSC)

Retraction o Government Regulation 79/2010 will result ininvestors being subject to Land & Building Tax once productiono hydrocarbons begins on successul PSC explorations and not

subject to taxes i exploration is unsuccessul and not able toproduce hydrocarbons.

Summary Case Study 2

The Land and Building Tax (“LBT”) imposed under GovernmentRegulation 79/2010 will discourage investment in the oil and gassector. PSC contractors do not own the land on which they exploreor hydrocarbons, nor do they own the buildings or acilitiesconstructed in respect o their exploration activities. Thoserights are held by the Government o Indonesia. Application othe LBT on PSC contractors is inappropriate.

Inormation gained rom current post-GR79 PSC contractors revealthat in June 2013, the Tax Office issued LBT notices amounting

to US$260 million (or iscal years 2012 and 2013) exceeding inmany cases the inancial commitment which the PSC contractorhad agreed to expend during exploration activities. While theDirectorate General o Taxes has agreed, in principle, that goingorward the LBT will be imposed only on utilized surace areaas opposed to the entire area set out in the PSC, affected PSCcontractors who wish to challenge the LBT assessment mustmake an advance payment (50% o the assessed amount) beorethe Tax Court will entertain the challenge. This high tax burdenon exploration activities is serving as a disincentive to biddingon new blocks, thereby hindering the government’s objective oincreasing oil and gas production.

OIL AND GAS SECTOR

Investors will look to invest in

new projects, such as enhanced

oil recovery on maturing fields,

when they are able to calculate areasonable rate of return on their

investment over the life of the

extension period.



INFRASTRUCTURE SECTOR


Canada shares many o the geographical challenges

aced by Indonesia and can provide Indonesia with

expertise and development support or air traffic

control systems, airport ground support equipment,

saety and security equipment, IT inrastructure and

services, and engineering and logistics




2015 Policy Paper 7


Summary Background

Inrastructure based on a public-private partnership (PPP) modelis a long-term perormance-based approach in which the privatesector assumes a major share o the risks o developing theinrastructure in terms o inancing, construction, maintenance,and operations and the government generally takes on the risko land acquisition. PPPs are rapidly increasing in popularityinternationally as governments are attracted to the cost andrisk sharing aspect as they deal with signiicant inrastructurerequirements while at the same time struggling to contain iscaldeicits.

The Canadian government has been very open to establishingPPPs and since 1997 has implemented over 205 PPP projects in awide range o sectors. Based on its 20 years o experience and themany lessons learned, the Canadian government has developeda very strong PPP working model which it will share through itssupport o the creation o the APEC PPP Center to be embedded inthe Indonesian Ministry o Finance. Canada will provide inancialand technical support to the PPP Center whose main goal willbe to support the Indonesian government in implementing PPPprojects.


Take advantage of Canada’s knowledge and expertise:There are a number o inrastructure sectors including powergeneration, the construction o airports, and the developmento water/waste water acilities or municipalities, where Canadahas signiicant experience in implementing PPPs. Canada andCanadian companies can be valuable partners working with

and or Indonesia. Canada will also continue to work to supportIndonesia’s efforts to develop a regulatory and operationalenvironment that will lead to the effective implementation oPPP projects.

PPP Based Power Generation Projects:Canada has signiicant expertise in power generation, speciically

in the area o hydro, biomass, and solar power. It is understoodrom the research underpinning the new National Energy Policythat there is a pressing need to develop signiicant additionalpower generation capacity in Indonesia to support urthergrowth o the economy and the expected demand that will comewith growth. Some studies suggest six gigawatts o new powergeneration will be required every year or the next 10 years toguarantee a reliable supply o electricity or industry and publicuse. With an estimated USD$125 billion investment required toaddress the current shortall in generation as well as to meetuture demand, PPP agreements can play a critical role inIndonesia’s uture power generation development.

PPP Based Airport Development Projects:Canada shares many o the geographical challenges aced

by Indonesia and can provide Indonesia with expertise anddevelopment support or air traffic control systems, airportground support equipment, saety and security equipment,IT inrastructure and services, and engineering and logisticssurrounding the airport supply chain at all o the 45 new airportsthe Ministry o Transport is planning to build by 2022 (o which 24are expected to be completed by 2017).

Successul development o Indonesia’s airport inrastructuredepends on the existence o successul airports acting as vibrantcommercial hubs, generating revenue streams rom additionalsources other than only air traffic control ees and relatedcivil aviation ees. Indonesia has the potential to develop asustainable and cost effective network similar to the networkCanada has developed across the country, a network that well

serves small, medium, and large population centers.

Value Transfer of Knowledge

In this picture Canadians and

Indonesians work side-by-side at

an urban inrastructure project.

*photo courtesy McElhanney




2015 Policy Paper 8

Like Canada, Indonesia’s population is spread across a vastcountry with many remote locations requiring access. Civilaviation is the only orm o transportation that can meet theneed or the ast and efficient movement o people across thecountry. As incomes rise,this will urther drive the explosivegrowth o the aviation/airport sector in Indonesia. Canadiancompanies are well positioned to help satisy the growingdemand pressure currently placed on Indonesia’s airportinrastructure.

PPP Based Water/Waste Water Development Projects:Canada is a world leader in water and waste water systemsand Canadian companies are experts at developing a widerange o systems all the way rom basic traditional waterpuriication networks to technically advanced systemsrequired or large vibrant urban centers.

Canadian companies are ready to support Indonesiawith treatment technologies, aerators, pumps, valves,instrumentation, training, industrial wastewatertechnologies/services, engineering and consulting services(including easibility studies or water and sanitationsystems) in order to help the Ministry o Public Works andPublic Housing to reach its goals o increasing access towater rom 42% to 62% in urban areas and rom 11% to 40 %in rural areas by 2015.


Develop a conducive PPP regulatory environmentThere are three key steps Indonesia can take to create aconducive PPP regulatory environment.

1. Create a system which supports timely and air landacquisition

2. Support the development o improved inter-ministerialcoordination, especially in relation to coordinationbetween the central government and local governments

3. Provision o a government guarantee mechanism.Indonesia has taken great steps in achieving aninvestment rating and a government guarantee willcement investor conidence.

Infrastructure based on

a public-private partnership (PPP)

model is a long-term performance-

based approach in which the private

sector assumes a major share of therisks of developing the infrastructure

in terms of financing, construction,

maintenance, and operations and the

government generally takes on the risk

of land acquisition.




Indonesia is a irm believer in

the PPP investment structurewith over USD45 billion in

power generation, rail, road,

port, and water projects

earmarked or PPP contracts.



AGRICULTURE SECTOR


Canadian agricultural products are as diverseas Canada’s land and people, and are world-

renowned or their excellence. Enorcement

o strict quality standards enhances this

international reputation, along with a strong

commitment to environmental sustainability.




2015 Policy Paper 11

Summary Background

Canadian milk and dairy products are as diverse as Canada’sland and people, and are world-renowned or their excellence.Enorcement o strict quality standards on dairy arms and inprocessing plants enhances this international reputation, alongwith a strong commitment to sound animal welare practices andenvironmental sustainability. Canadian companies are ready tosupport Indonesia in all areas o dairy arming with world classknowledge and assistance.


GeneticsThe Canadian dairy industry is amous or the excellent geneticquality o its herd as well as its strong dairy cattle improvementand genetic evaluation programs. Over 76% o Canadian dairyherds are enrolled in milk recording programs. Cows recorded inofficial milk recording programs produced on average 9,780 kg omilk per lactation (305 days) with an average content o 3.85%at and 3.22% protein. The Holstein breed is the most commondairy breed (94% o the dairy herd); Ayrshire, Brown Swiss,Canadienne, Guernsey, Jersey and Milking Shorthorn breedsare also ound on Canadian arms. Canada is at the oreronto new and innovative research into dairy genetics and is readyto share this knowledge with Indonesia. Animal DNA proilesare determined by estimating genomic evaluations or over 60different traits. To date, evaluations are calculated using imputed

genotypes (6K and 50K panels).

Manufacturing of Dairy ProductsCanadians looking or healthy and nutritional products continueto have access to an ever expanding range o quality andinnovative Canadian dairy products. New dairy products havebeen developed such as Greek-style yogurt, pre- and pro-biotics,lactose-ree and calcium or omega-3 ortiied products. Milkprotein products continue to be used as ingredients in a growingarray o ood items, such as inant ormula, sports and nutritionalbeverages and conectioneries. Canadian companies are readyto work with Indonesian entrepreneurs and the Indonesiangovernment to develop products that meet Indonesians’ tastesand needs.

Cheese is an increasingly popular and nutritious ood productin many countries, including Indonesia. The Canadian cheeseindustry has entered into a maturity phase, evidenced by its know-how developed through extensive cheese making traditions andthe diversity o its more than 1000 varieties o cheese (cow, goat,ewe and water buffalo). Canadian companies would appreciatethe opportunity to increase Indonesians’ access to a wide varietyo cheeses recognized around the world or their quality andtaste.

AGRICULTURE SECTOR





Safety and Quality

Indonesian companies have expressed a high degree o interestin accessing Canadian expertise, technology, and live cattle inorder to build a vibrant dairy industry in Indonesia. This interestis driven by Canada’s reputation as a premier producer o dairyproducts. Government and industry partners work in closecooperation to coordinate the movement o milk rom the armto the consumer and to ensure a strong and dynamic industry.

Strict quality standards are applied throughout Canada’sproduction and processing chain, standards and processeswhich Canadians are ready to help Indonesia implement. The

main quality assurance mechanisms that ensure milk and dairyproducts are sae and high in quality are: • Hazard Analysis Critical Control Points (HACCP) and/or ISO

certiication. • “Canadian Quality Milk” on-arm ood saety program

• Sound welare practices in the Code o Practice o the Careand Handling o Dairy Cattle.

• National bio security standards, protocols and strategiesdesigned to protect animal resources.

• National eradication programs or serious cattle diseases(several o which have been eradicated rom the dairy herd).

• Mandatory control and monitoring in accordance withinternational agreements, particularly World Organisationor Animal Health (OIE) agreements, protecting Canadian

livestock rom serious diseases.• Development o a ull traceability system is a priority in

Canada which includes three basic elements: animalidentiication, premises identiication and animalmovement.

• Research and development o new dairy products andproduction methods are the result o strategic alliancesamong producers, processors, universities, and ederal andprovincial research centers.

These high standards contribute to the excellent internationalreputation o Canadian dairy products.


Adherence to OIE guidelines

The World Organisation or Animal Health (OIE) Terrestrial AnimalHealth Code or Bovine spongiorm encephalopathy (BSE) sets outstrict guidelines, all o which are met by Canadian producers, onhow countries can saely import animal products rom countrieslabeled “controlled risk”. In short, the OIE does not oppose tradein Canadian cattle with Indonesia. However, previously underIndonesian law 18/2009, Canada must achieve “Negligible Risk”status under the OIE in order to export live cattle to Indonesia;a law which is prohibiting Indonesian companies rom having

access to the ull suite o Canadian expertise in the dairy industry.This law goes against the guidelines o the OIE. In a recent change,Indonesia’s House o Representatives revised Law 18/2009 inSeptember 2014. The revision will allow the importation o liveanimals/bee rom regions or zones that are not affected byBSE. However, the law will be implemented afer the Ministryo Agriculture issues several animal health regulations. Thisincludes the establishment o a quarantine island or live cattle.In principle this should allow or live cattle access rom Canada.In practice it may be somewhat cumbersome to implement andwill take signiicant time to determine its effectiveness.

In November 2015 Canada will apply to the OIE to change its statusrom “controlled risk” to “negligible risk”, which will allow or theimportation o Canadian live cattle into Indonesia. However, in

the interim the Indonesian government can take steps to pavethe way to develop mutually beneicial partnerships in the dairyindustry. A lifing o the ban on the importation o live Canadiancattle will make it economically viable or Canadian companiesto ully engage in the urther development o the dairy industryin Indonesia.

Strict quality standards

are applied throughout Canada’s

production and processing chain,

standards and processes that

ensure Canadians milk and dairy

products

are safe and high in quality

AGRICULTURE SECTOR



Manitoba

Most o Manitoba’s barley and oats, peas, beans, lax, lucerne(alala) and grasses currently go to the United States howeverthe province looks orward to doing more trade with Indonesia.Manitoba can also support Indonesia reduce the costs o primaryproduction; developing new income streams or arms; andgrowth in the value-added sector.

Quebec

With 80% o Agri-ood exports destined or the United States,Indonesia would make a strategic trading partner. Quebecharvests $225 million in seaood exports attractive to Indonesian

consumers but would also attract consumers interested inChocolate, Soybeans, Snow crab, Lobster, and products rom theBio-Science Industry.

New Brunswick

The Japanese are the largest consumers o this region’s seaoodexports where, in combination o exports to Brazil and the UnitedKingdom and the United States make up $1.2 billion in trade.Specialties include Lobsters, Salmon,Snow crab, Potatoes, Beer (especially those produced by micro-breweries), and products rom the Bio-Science Industry.

Nova Scotia

Nova Scotia leads exports in ish and seaood products. Two oNova Scotia’s major export markets are New England in the UnitedStates and the Caribbean and China is an emerging opportunityor the province’s ood industry. Products Indonesians wouldlove include Lobsters, Scallops, products rom the Aquaculturesector, Blueberries, Wine, and products rom the Bio-ScienceIndustry.

Alberta

Alberta’s international agri-ood exports exceed $6.6 billion in2010. Alberta’s primary export markets have been the US, China,Japan, Mexico and South Korea. Indonesia would be a perect itas consumer demands match Alberta’s produce which includesWheat, Canola, Grade A Bee, and Bio-Science Industry goods.

British Colombia (BC)

British Colombia, directly across theocean rom Papua, Indonesia, has a lot tooffer. Delicious tomatoes,Blueberries, world amous seaoodincluding wild and armed specieso salmon, inish, and shellish. BC isalso home to a growing, internationallycompetitive wine industry. Products romthe Bio-Science Industry are also o greatinterest to Indonesian consumers.

Saskatchewan

Saskatchewan plays a major role in Canada’s agriculture andood industry. Today just over 70% o Saskatchewan’s GDP isdependent upon exports. Products o interest to Indonesiainclude Wheat and Durum, Canola and Flax, Pulses, Mustard,and also products rom the Bio-Science Industry.

Ontario

Including Indonesia as a priority trading partner would supportbalanced expansion o the province’s trade portolio which iscurrently made up o the U.S., Mexico and the European . Productsthat are o interest to Indonesia include Corn, Vegetables, RedMeat (o which a large selection are halal-certiied), Wine, and

products rom the Bio-Science Industry.

Newfoundland and Labrodour

Indonesians would love this region’s specialty - cold watershrimp and snow crab, which thrive in cold water. Currently thelargest Asian importer o this region’s goods is China making up22.5% o export value. Other attractive products include arm-raised Atlantic salmon, herring, mackerel, cod, lounder andother species.

Prince Edward Island

Total agri-ood, isheries and seaood exports exceed $520million. Products o interest to Indonesians include Potatoes,

Blueberries, Lobster, Blue Mussels, Snow crab, and productsrom the Bio-Science Industry where the ocus is on bio-activecompounds and their application to improvements in human,animal, and ish health and nutrition.

Canadian Territories

Interestingly products rom the Yukon, Northwest Territories and Nunavut could present a luxurious goods market or Indonesia’selite. In addition to mollusks, specialty exports to Indonesia could include whalebone and ivory, red meats rom caribou, muskox andother wild species.

A Taste oCanadian AgriculturalCommodities



RENEWABLEENERGY SECTOR


As a result o its volcanic geology, Indonesia has

40% o the world’s potential geothermal resources,

and geothermal energy is expected to become the

leading source o renewable energy generation in

the nation’s uture. In partnership with Canadian

companies (which have a total market capitalization

o $770 million on the Toronto and Toronto Venture

Stock Exchanges) Indonesia can more rapidlydevelop the national geothermal energy industry.



Indonesia Canada Chamber of Commerce 2015 Policy Paper

15

Summary Background

Canada is a world leader in the development o renewableenergy. Our skills and technology are particularly strong inareas o growing interest or Indonesia, namely hydroelectric,geothermal, bio energy, and solar energy generation, andhydrogen and uel cell storage systems.

Canadian companies are considered to be global leaders inhydro-power technology expertise and service provision. Canadagenerates more than 12% o the world’s hydroelectricity, makingit the second-largest global producer afer China. Canadian irmsinvest billions o dollars annually into this expanding industryand support tens o thousands o jobs in Canada.


Hydroelectricity:Canadian companies enjoy over 100 years o experiencetransorming abundant water resources into productivepower and are ready to support Indonesia’s hydroelectricitydevelopment. With 475 hydro-power plants across Canada,Canadian irms offer broad and established expertise in all

aspects o hydro-power technologies and services, includinginternational recognition or small-scale hydro acilitydevelopment, which is particularly applicable to Indonesia.Interestingly, small-scale hydro contributes an estimated C$150million to the Canadian economy and employs close to 2,000workers nationwide. In the Indonesia context, these outcomeswould likely be multiplied many times over.

Hydrogen and Fuel Cells:Canadian public and private sector organizations invested overC$1 billion in the Canadian hydrogen and uel cell sector between2006 and 2010. The result? Today Canada is home to roughly80% o global hydrogen and uel cell acilities and Canadiancompanies are empowered with the expert knowledge requiredor Indonesia to take ull advantage o its renewable resources viathese market-ready energy storage technologies. The journey hasalready begun with Canadian produced uel cells already beingused across Indonesia to provide power to communicationstowers in remote regions.

Geothermal:As a result o its volcanic geology, Indonesia has 40% o theworld’s potential geothermal resources, and geothermal energyis expected to become the leading source o renewable energygeneration in the nation’s uture. In partnership with Canadiancompanies (which have a total market capitalization o $770million on the Toronto and Toronto Venture Stock Exchanges)Indonesia can more rapidly develop the national geothermalenergy industry.

Bio-energy:With the encouragement rom the Canadian government,Canadian irms are ready to support Indonesia with uniqueCanadian expertise across the bio-energy sector; rom biomasspyrolysis to waste-to-energy biomass gasiication technologies.Despite Canada and Indonesia’s different climates, Canada’s vast

array o crops, trees, and industrial and municipal organic residueshave provided Canadian bio-energy players the experience andtechnologies to implement customized solutions which can helpto Indonesia’s increasing energy demands. Canadian expertiseis able to deliver solutions which include the processing variouseed stocks common in Indonesia such as solid waste palm oil,palm oil effluent, solid waste rom sugar cane, and municipalsolid waste.

Solar:Solar technology has the potential to be another ast-growingrenewable energy sector in Indonesia. Canada has approximately350 solar energy companies ready to support Indonesia tohelp make rapid growth in this sector a reality. Canadian solarmanuacturing companies (which are expert at both solar photo-

voltaic (PV) and solar thermal applications) are actively lookingat making investments in Indonesia, and are conident theIndonesian market holds great potential to become a regionalmanuacturing centre.


Indonesia can take a combination o the ollowing critical stepsto expedite the development o inrastructure needed to supportrenewable energy and spur sector growth:

• Addressing Indonesia’s pricing regime or renewable energy • Developing inancial incentives or other orms o accessible

inancing as an alternative to a sovereign debt guarantee toserve as capital or technologies that are new or emerging.

• Reducing/eliminating subsidies or energy consumption

To take ull advantage o solar power development in Indonesia,and create a solar power market that will one day rival themarkets in other countries in the region Indonesia can ocus onthe ollowing areas:

• Promote household buy-in o renewable energy basedresources

• Develop training acilities which produce technicalpersonnel trained at installing and maintain solar cellsystems.

• Implement interconnection standards that allowconsumers to sell excess electricity back to PLN, as is beingdone successully in many countries.

RENEWABLE ENERGY SECTOR



Ideas and Inputto supportNON-BANK FINANCIALSERVICES SECTOR


Canadian companies are well positioned to help

Indonesia develop a strong and vibrant insurance

sector which currently is one o the astest growing and

most promising in South-east Asia due to both rapideconomic growth and a growing population that can

increasingly afford the service.





Summary Background

The Non-Bank Financial Services Sector (NBFI), composed oinsurance, asset management, pension and inance companies,is regulated by the autonomous Otoritas Jasa Keuangan (OJK),an integrated regulatory body established in 2013 under LawNo.21 o 2011 to supervise the inancial services sector, protectcustomers, and create a sound environment or industry growth.

Since its inauguration the OJK has taken admirable strides.The irst regulation promulgated by OJK was POJK No. 1/POJK.07/2013 regulating customer protection by inancial servicecompanies. The regulation introduces a standardized regimeunder which inancial players must operate,covering everythingrom standardized contracts to customer complaints handling.

The OJK continues to be guided by the National FinancialLiteracy Strategy a blueprint which consists o three corepillars: (1) National inancial literacy campaign and education;(2) Strengthening inancial literacy inrastructure; and (3)Development o inancial products and services.

There are currently two Canadian NBFI Companies Operating in

Indonesia:

Manulife IndonesiaManulie has operated in Indonesia since 1985. Through variousregulated entities, Manulie provides individual protection,investment and savings accumulation solutions as well as groupemployee beneits solutions (pensions, group savings, group lie& health, asset management services). The Company distributesboth conventional and takaul (syariah) products throughmultiple distribution channels including agency, bank, directand telemarketing. Manulie Indonesia has over 1.9 millioncustomers supported by more than 12,000 employees and salesrepresentatives in 1,500 points o sales throughout Indonesia.

Sun Life Financial Indonesia

Sun Lie has been in Indonesia or nearly 20 years and currentlyoperates through three entities, including through a joint venturewith CIMB Niaga, Indonesia’s 5th largest bank (by assets). Theyemploy over 400 employees and distribute their productsnationally through 8,000 agents, 100 insurance advisors and 300telemarketers. The company had revenues o over IDR 2 trillionand had over IDR 7 trillion in assets at year-end 2013.


InsuranceCanadian companies are well positioned to help Indonesiadevelop a strong and vibrant insurance sector which currently isone o the astest growing and most promising in South-east Asiadue to both rapid economic growth and a growing population

that can increasingly afford the service.

The global insurance industry is knocking at Indonesia’s door asthey see the sector has averaged compound annual growth o20% in gross written premiums and 26% in assets since 2007. Itwas Canadian companies like Manulie who were operating inIndonesia 30 years ago and working with Indonesia to developthe industry’s potential.

And there is much more opportunity or Indonesia to workwith Canadian companies as insurance penetration is stilllimited at only 1.8% o the population, a much smaller shareo the population than other countries in the region. In act, 43million o the 53 million lie insurance policy holders are throughcorporate group plans. The nearly 10 million individual policy

holders represent more affluent Indonesians.


Create a Transparent OJK FeeThe methodology or determination and expenditure o themandatory yearly ees and levies paid by the inancial servicescompanies overseen by the OJK needs to be clear with oversightand accountability to ensure the OJK matures and developsinto a sustainable and productive organization. Canadianorganizations in partnership with industry are ready to engage indiscussions to support the development o a transparent OJK ee.

Refine OJK Operational StructureTo create greater industry synergy and improve the consultationmechanism between OJK and the industry, especially duringormulation o regulations, is a critical developmental step.OJK is actively reorganizing its internal divisions to driveefficiency and effectiveness and an excellent measure would bethe development o clear standard operating procedures andservice standards.

NON-BANK FINANCIAL

SERVICES SECTOR





Refine Risk Based Capital Valuation MethodologyTo protect many industry players rom the effect o rising interestrates on their Risk Based Capital (RBC) ratios. Failure to do sowould yield inefficient capital utilization and potentially lessproduct choices or customers. The Risk Based Capital regime(solvency requirement or insurance companies) should beadjusted to ensure that liability valuation is more aligned to themark-to-market approach or assets. Canadian organizationsin partnership with the industry association (AAJI) are workingclosely with the regulators and the accounting proession tosupport the required changes.

Tax Department AdministrationTo ensure certainty and a oundation or positive growth, theTax office needs to develop a consistent application o taxregulations related to the treatment o insurance companiesreserve deductibility.Also, to maximize government synergies, the Tax office willbeneit by harmonizing its actions and processes with the OJK.Canadian organizations working with industry partners underthe AAJI and with the support o PwC, have created a policypaper which has been presented to the iscal policy agency (BKF)or urther ollow-up.

Develop Critical Skills in Actuary and Risk ManagementA pillar or economic stability, growth, and the build-up o a stableand trusted inancial services sector lies in the development okey human resources, especially when individual Indonesians,particularly those with limited means, rely on health, lie andother insurance in times o crisis and need. By developingprograms that encourages the growth o Actuary and RiskManagement human resources, Indonesia is ensuring the longterm health o its economy.

Capacity building investments targeted in actuarial science andrisk management at this juncture in time will have a prooundimpact on the uture quality and rate o growth o the nation’sinancial system (lie, general, banking, asset management)

with potentially hugely beneicial impact to Indonesian society.There are several developmental programs being supportedby industry which could address this and Canada could playan important role here. Such initiatives are totally aligned withthe ambition and direction o the OJK, as well as the broaderGovernment o Indonesia’s objectives o dramatically boostinginancial inclusion and growing the middle class.

Integrated Oversight of Financial ConglomeratesOJK should inish developing an integrated oversight mechanismor the improvement o the inancial services industry asregulated in the OJK draf regulation on Integrated Oversight oFinancial Conglomerates. This draf regulation introduces theconcept o a inancial conglomerates lead entity which will beresponsible to integrate risk management implementation in

the inancial conglomerates. Such a regulatory development,i supported by corporate law, could permit conglomerates tobetter manage risk and to coordinate activities more efficiently.

Protect Freedom of Consumer Choice:The Social Security Administration Body (BPJS) oversees amandatory health and employee beneit system whose primaryobjective is to harmonize the disparate healthcare schemes andvastly increase the number o Indonesians with access to basichealthcare. During this important process the role o the privatesector in providing health and pension services needs to berecognized and protected to ensure reedom o consumer choice.

Insurance Policyholder Protection Fund:The establishment o a und to protect Indonesian policyholdersin case their lie insurance company ails will build public trust andconidence in the Industry. To ensure equitable implementationo such a und it will need to be managed by a body similar tothe banking deposit insurance corporation (LPS) and requireheightened supervision and oversight to ensure standardizedtreatment o all insurers.

Avoid Database Repatriation:Databases held offshore allow companies to use off-shoring tomanage their global databases or efficiency or risk managementand can provide better services and security or Indonesiancustomers.

Positive Role of Foreign Ownership:Foreign ownership should be welcomed in Indonesia as theindustry continues to require oreign investment o capital andshould be an important consideration as the draf insurance lawmay provide OJK greater authority to change oreign ownershiplevels. While regulators have indicated any changes would takeplace afer consultation and be applied prospectively to newcompanies and not existing companies, the impact on growthand development need to be careully considered.

FATCA (Foreign Account Tax Compliance Act): In order to ensure simpliication o adoption and compliancewith this new U.S. Law or all inancial services institutionsoperating in Indonesia, we urge the Indonesian Government toimmediately sign an Inter-Governmental Agreement (IGA) withthe United States Treasury.

NON-BANK FINANCIAL SERVICES SECTOR

there is much more

opportunity for Indonesia

to work with Canadian

companiesNON-BANK FINANCIAL

SERVICES SECTOR



A prime example o Canadian excellence,

Manulie has provided 30 years o strong,

reliable, trustworthy and orward-thinking

products and services to its customers in

Indonesia and has demonstrated a deep

commitment to Indonesia through continued

investment and growth.



MININGSECTOR


Discussions with Canadian companies operating in Indonesia

reveal conidence and a strong will to overcome current

challenges, sharing a common understanding that the mining

sector will continue to play a strong role in supporting Indonesia’s

economic success and that Canadian companies, recognized orbeing high quality, more trusted, more conservative, and lower

proile, are well suited as Indonesian partners.





Summary Background

At the writing o this ICCC paper, the combination o steadilyalling commodity prices due to chronic oversupply and China’sgrowth cooling coupled with issues such as mounting resourcenationalism and a non-conducive regulatory environment seemining companies across the globe enduring the ourth year oa distressed market.

Even so, discussions with Canadian companies operating inIndonesia reveal conidence and a strong will to overcomethe challenges, sharing a common understanding that themining sector will continue to play a strong role in supportingIndonesia’s economic success (especially since mining providesup to 40% o the GDP in some provinces) and that Canadiancompanies, recognized or being high quality, more trusted, moreconservative, and lower proile, are well suited as Indonesianpartners.

Richard Ross, the ormer Chairman and Chie Executive Officer oInmet Mining Corporation (“Inmet”) and currently the ProgramDirector o the Schulich MBA specialization in Global MiningManagement, has said “Canada has a long history o mining and

a depth o expertise that exists not only in the mining companiesbut also in the banks, legal irms, and engineering and consultingcompanies that service the sector.” Former Goldcorp Inc.Chairman Ian Teler, a mining veteran said “...mining continues tobe a cornerstone o the Canadian economy.” Mining companiesin Canada were the irst in the world to develop and externally-veriied perormance system or sustainable mining practices.

Under the Jokowi-Kalla pro-economy leadership both localand international mining companies anticipate pragmaticdevelopment o mining industry regulations and policies to bringa new energy into the industry. On October 15, 2014, Indonesiawas accepted as a ull and compliant member o the ExtractiveIndustries Transparency Initiative (EITI), demonstrating to theworld that Indonesia, a country with a large and complex natural

resource sector, can be transparent about its resource revenues.Indonesia is now well positioned to make use o its EITI to embedtransparency into its government systems and to ensure thatnatural resources beneits its citizens.

There are exciting times ahead and in ull partnership withIndonesia, Canadian companies look orward to realizing Article33 (3) o the 1945 Indonesian Constitution, which reads “Theland, the waters and the natural resources within shall be underthe powers o the State and shall be used to the greatest beneito the people.”


Canada’s Value PropositionMajor Canadian miners have spent many years running highlysuccessul operations in Indonesia and there are many moremining sector based Canadian companies looking to invest.Canadian companies are ready to support Indonesia withinnovative technologies and approaches useul in assistingthe mining industry including Canadian mining contractor’sproiciency in everything rom sinking a shaf, completingunderground development or mucking ore. Canadian companiesoffer leading edge products to assist in the extractive sectorwhich help cut costs, reduce environmental degradation, andincrease efficiency.

Even in the area o transport CSL Asia Shipping Pte Ltd (CSL

Asia) is well-positioned to provide highly effective bulk cargoshipping and handling services to support sustainable growth inIndonesia’s mining sector.

Established in Indonesia since 1994, CSL Asia, a division o TheCSL Group o Montreal, Canada, operates and manages high-capacity transshipment platorms in Kalimantan, Indonesia.With transshipment rates in excess o 2,000 tonnes per hour,CSL’s transshippers allow mining companies to overcome drafrestrictions and load both Panamax and Capesize vessels. Alongwith providing customised transshipment services, CSL Asia alsodelivers dry bulk shipping solutions with sel-unloading vessels.These vessels operate on shorter trade routes where the astdischarge rates o sel-unloaders have a signiicant impact oncycle time, and where the inherent lower dust emissions romsel-unloaders are important or importers.

MINING SECTOR

Canadians and Indonesians

working together

Supporting a mining project in

Kalimantan. Acquiring terrestrial

laser scanning (TLS) data or a

coal mine stock pile year end

reconciliation.





Pro-Growth Policy Actions Yearly production or most o Indonesia’s mineral products hasbeen increasing and Indonesia is in the top ranks globally ormany o its mining products but only received 1.8% o globalexploration investment in 2011. In order to ully beneit rom theIndonesian mining sector the government can oster a robustinvestment climate by ocusing on key mineral policies.

Mining exploration itsel poses many investment risks andcompanies are looking to balance natural business risk withcertainty in key areas including stability in tax systems, rules andregulations. Feedback rom Canadian companies supports theIndonesian government ocusing on key areas:

1) Ensuring Coordination and Clarity in the RegulatoryEnvironment & Mineral Policies

Key strengths can be obtained by creating strong coordinationand process clarity both at the national level, between thedifferent ministries and government departments dealing withmining, and at the local level in the working relationship betweenthe central and regional governments. One way Canada cansupport is to share inormation on knowledge management andhow Canada uses the internet to disseminate inormation, whichis aligned to the Government o Indonesia’s ocus on e-commerceand e-procurement.

2) Development of a “Better Business Bureau” for the miningsector

Canadian companies seeking to invest in Indonesia need to indgood domestic partners. A reliable and trustworthy system likethe Better Business Bureau or mining will make it easier to indgood local partners. The ICCC can support the government startto develop such a database to help set up partnerships with goodlocal partners.

3) Ensure Consistency Across Multiple Government EntitiesThrough the development o clear straightorward criteria,consistent across different governments(ederal, provincial and

district), the government will be expediting the start-up o miningprojects in Indonesia.

4) Ease Permit Process Easing the permit process or mining developments in Indonesia,which require hundreds o permits, each with a unique validityperiod and permit requirements by eliminating conlictingrequirements and providing clear interpretation o processesbetween government agencies and government levels.

5) Infrastructure DevelopmentDeveloping inrastructure to rural areas will decrease capitalcosts or mining projects, shorten development schedules bringaster returns to Indonesia and increasing investor interest.

While inrastructure development is clearly on the government oIndonesia’s agenda we repeat the importance in this documentbecause o the requency o inrastructure being mentioned in ourdiscussions especially considering most mining developments inIndonesia occur in remote regions with minimal inrastructure.

6) Land AcquisitionThe Indonesian government has just begun to implement thelaws on Eminent Domain (Pengadaan Tanah) and Canada hasthe experience and the lessons learned to support a air andequitable transaction between landowners and the government.

7) Development of Easy to Access Geological InformationDatabaseAccess to adequate geological inormation, mapping and relatedresources will support efficiency and expediency or miningcompanies during the exploration process.

8) Government program to develop local talentA long-term government education program to oster talent inthe mining industry will make it easy or mining companies toind well trained local human resources. Most mining companieshave a commitment to hiring locally and providing a pool opotential candidates will ensure companies meet and exceedtheir commitment or hiring local talent. Canadians are wellversed in similar educational programs and Canada in act hasthe only MBA in mining at the Schulich School o Business at YorkUniversity, which offers an MBA specialization in Global MiningManagement.

MINING SECTOR

From West to East

In Papua, setting up a TLS unit which

will provide cm accuracy allowing

environmentalists, engineers and hydrolysis to

accurately manage the deposition materials.



Indonesia PartnersPT Adaro Energy Tbk, one o Indonesia’s

preeminent pit-to-power energy

companies, works closely with Canadian

organizations in key aspects o

operations.



A sampling of Canadian companies active

in Indonesia today

24 Indonesia Canada Chamber of Commerce

2015 Policy Paper



Canadian Companies are Well Suited to SupportIndonesia’s Growth

Canadian companies are recognized or their long-terminvestment strategies and or building strong business andsocial linkages in Indonesia. Transer o knowledge is also akey aspect o most Canadian business strategies which its wellwith Indonesia’s expectations or oreign investment to improveIndonesia’s capabilities.

Canadian companies have, over the years, beneited rom oreigninvestment into Canada. A number o sectors have increasedtheir productivity and capabilities through the introduction otechnology introduced by oreign investors, which in turn leads tothe development o next generation services and technologies inCanada. Canadian companies are ready to bring these emergingtechnologies and innovations to Indonesia to enable strategicsectors to move up the value chain.

Potential sectors o increased engagement including mining, oiland gas, inancial services, and inrastructure. Canadian miningtechnology or exploration, development and production areleading edge and over hal o the world’s mining irms are listedon Canadian stock exchanges. Canada is a net exporter o oil andgas, and has developed unique tools and methods or indingand extracting both energy sources. Another Canadian strengthis its Financial Services sector, demonstrated during the 2008“Great Recession” when Canadian banks and insurers cameto the world’s attention due to their strength and consistency.This year, or the sixth year in a row, the World Economic Forumrated Canada’s banking system as the World’s soundest. TheTransportation sector in Canada is also a sector with strongcapabilities, driven by the country’s need to connect a widelyscattered population over a vast land mass. Canada offers world-class technology or both physical inrastructure such as roads,ports and airports, and also communication technology andenergy generation.

The ICCC leadership has met with Canadian companies operatingin Indonesia and also with Canadian companies who areexploring business opportunities in Indonesia and asked howthey – as experienced investors, could support the growth opriority sectors in Indonesia, and what Indonesia could do toensure ull beneits o this interest are realized. Their responses,which are presented in the ollowing chapters in this document,cover ive priority sectors, and provide senior government leaderswith suggestions and ideas which have the potential to enable

several billion dollars o new Canada-Indonesia partnershipopportunities.

Canada welcomes investment from Indonesia

Just as Indonesia beneits rom Canadian investments, Canadais also beneiting rom Indonesian investments. A subsidiaryo the Sinar Mas group, Paper Excellence, owns and operatessix pulp and paper mills in three Canadian provinces. Thisinvestment has had a very positive impact on Canada, includingthe creation o over 2,000 jobs. Another Indonesian irm, PaciicOil & Gas, has invested $25 million in the development o a microLNG processing and export acility. The irm’s total investment isexpected to reach $2.5 billion and create many new jobs.

Canadian government policy actively encourages oreigninvestment in Canada. Beore Canada entered a ‘oreigninvestment renaissance’ many restrictions were placed on

oreign investment and investors, with each investmentcareully reviewed by a government agency. Today, Canadaplaces emphasis on who beneits rather than who owns, and thecountry has consequently become a desirable destination orinternational investors. This has resulted in a sustained increasein economic diversity and stability and job growth or Canadians.

The ICCC hopes that the Indonesia- Canada economic partnershipcan continue to generate mutual beneits and to grow stronger inthe years to come. It is with this positive spirit that we wouldlike to share with you the capabilities, interests, and constructiveinputs o our private sector in the chapters that ollow.

Canada partners with Indonesia on economicdevelopment

Indonesia is a country o ocus or the Government o Canada’sinternational development efforts. Canada supports theGovernment o Indonesia in a number o development prioritiesin its National Medium-Term Development Plan 2010-2014 aswell as the Master Plan or Economic Development (2011-2025).Canada’s development objective or Indonesia is to improvesustainable economic prosperity or poor women and men,through building economic oundations, investing in people, andadvancing democracy. Canada’s portolio o a dozen ongoingprojects concentrates on addressing transparency in publicinancial management, natural resource management, and onbuilding a better-trained workorce. Results rom programmingat the local level are being integrated into national level bestpractices in health service standards, gender-based budgeting

and watershed management. Canada also maintains a highlyeffective program supporting pluralism and religious tolerancein Indonesia.

CONCLUSION

25Indonesia Canada Chamber of Commerce

2015 Policy Paper



Spotlight

Three Canadian Development Projects in Indonesia:

• P3 FRAMEWORK: At APEC 2013, Canada committed 5 million CAD to a Public-Private Partnerships (PPP) Centre or inrastructurein Indonesia, and an APEC PPP Expert Advisory Panel. Drawing on Canada’s lengthy experience with PPPs, this initiative establishesthe institutional architecture, including legal and regulatory rameworks, tools, and coordination mechanisms, to spur inrastructuredevelopment and inancing in Indonesia.

• NATURAL RESOURCE ACCOUNTABILITY: Canada is a leading donor to the Extractive Industries Transparency Initiative (EITI) whichseeks to increase transparency in the oil and gas, and mining sectors through the implementation o standards related to the publicationand veriication o company tax and royalty payments along with government revenues. Indonesia became compliant on October 15,2014. O note, Canada’s unding has supported Indonesia to achieve compliance and will continue to support Indonesia to ensure the

sustainability o the EITI process and expand outreach activities.

• INVESTING IN SMES: The Conerence Board o Canada is starting a ive-year 12 million CAD initiative called Trade and Private SectorAssistance project(TPSA) to acilitate and enhance trade and investment or small and medium-sized enterprises (SMEs) in Indonesia,including those owned and operated by women. The project will address key regulatory constraints, develop tools to enable greatermarket access, distribute market research, and acilitate exchanges o business people.


2015 Policy Paper



The economic strengths o Canada and Indonesia will continue to change as our respective economies develop and evolve. Ourcommon goals are to maximize efficiency and productivity at each stage o this development. And while the process o continuousimprovement will carry on long into the uture, a constant thread that connects us is the value our two countries place on mutualrespect, riendship and knowledge sharing.

In the Key Findings section o this publication, similarities between Canada and Indonesia were highlighted. Our two countries arealmost the same breadth rom West to East, with Canada having the world’s longest coastline and Indonesia having the world’ssecond longest coastline. Our two countries consequently ace similar natural resource and inrastructure development challenges,and Canada is sharing solutions to these challenges. Our trade relationship is growing at 15% to 20% per year. Investments are alsogrowing, including recent interest in large investments into Canada by Indonesian irms, investments that are welcomed by Canada.A signiicant number o Canadian irms are already present in the Indonesian market, creating jobs and adding value, and there is aclear potential or urther growth in bilateral trade and investment in the years to come.

Canadian irms have considerable experience in Oil and Gas project development and supporting services, both at home in Canadaas well as around the world. The Oil and Gas Sector section o the publication shared a number o ideas, based on this experience,or improving the investment attractiveness o the sector which in turn would help Indonesia meet its energy availability targets.In addition to enhanced oil recovery and unconventional gas development, proposed enhancements that would help attract moreinvestment include ideas or strengthening inter-departmental coordination, streamlining licensing and permitting, offering moreavourable terms or high-risk high-cost areas, and improving legal clarity and consistency or production sharing contracts.

Canada also possesses technical and inancial capabilities in the Renewable Energy sector, and has a private sector that is interestedin engaging with Indonesia to support Indonesia’s objective to signiicantly grow the generation o renewable energy to more than20% by 2025.

Inrastructure development has supported the advancement o Canada’s economy, and Canadian expertise is ready to work hand-in-hand with the Government o Indonesia to support the implementation o viable public-private partnership approaches toinrastructure development. Power Generation, Airport Development and Water/Waste Water projects were presented as exampleso Canadian capabilities and interests that match well with Indonesia’s interests. PPP approaches or inrastructure developmentare proven ways to leverage private sector unds, which in turn can ree up government resources or other priority needs such as

education and health care. Ideas were presented on ways to improve the PPP regulatory environment, and urther support in thisarea will be provided by a Canadian Government unded initiative.

In the Agriculture Sector, Canadian milk and dairy products are one example o an emerging opportunity to bring Canadian investmentand expertise to Indonesia which will support Indonesia’s national ood security objectives and enhance the national capability toserve regional markets.

Canadian companies have been developing and will be continuing to invest in developing a strong and vibrant insurance sector in thecountry, and have shared some ideas in the Non-Bank Financial Services Sector section o this publication on how Indonesia mighturther enhance the growth and development o this sector.

Canada and Indonesia, by virtue o our vast country sizes and geology, represent both challenges and opportunities or thedevelopment o the minerals and metals industries through sustainable mining activities. The Mining Services sector section o thispublication has outlined some o the policy options that the government could consider to ensure the sustainable development othese resources in economically viable ways.

Growing the Canada-Indonesia relationship greatly beneits both countries. This publication has been prepared with the hope andexpectation that the Canadian capabilities outlined here will be o interest to members o the Indonesian private sector who areseeking partners, and that the constructive policy suggestions or enhancing sustainable growth will be o interest to the Jokowi-Kallagovernment. The ICCC would like this publication to be the beginning o a process that stimulates discussion, supports constructiveaction, and ultimately enhances the Indonesia-Canada private sector relationship or the mutual beneit o both public and privatestakeholders.

Indonesia and Canada have cooperated closely since the initiation o relations in 1953. On the basis o mutual respect and beneit,our relations have remained strong. We hope that this publication has helped to increase the awareness o Canada’s potential as agrowing long-term economic partner o Indonesia. Indonesia and Canada are two great countries with excellent prospects or an evengreater economic relationship. The ICCC stands ready to build on our existing solid relationship and to work or the shared prosperityo the people o both countries.

CONCLUDING REMARKS AND THE WAY FORWARD…

27Indonesia Canada Chamber of Commerce

2015 Policy Paper



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Other Canada-Indonesia Organizations

Canadian Education International

• Canadian Education International is a non-proit oundation endorsed by the Embassy oCanada to act as the Canadian education inormation hub or students, schools & agenciesin Indonesia. The aim o CEI is to raise public awareness about Canada as a top-qualityoverseas education destination and to enrich public knowledge about internationally-

recognized & well-reputable Canadian education institutions. The CEI provides inormationservices or all relevant stakeholders, such as Canadian education institutions andIndonesian students, schools & agencies.For more information please email [email protected]

Canadian Alumni in Indonesia

• Calindo is an organization whose main goal is to strengthen the ties between the twogreat countries o Indonesia and Canada through social, educational, and other mutuallyenriching activities. In short, while the Canadian Embassy specializes in ‘governmentto government’ and the ICCC specializes in ‘business to business’, Calindo specializes in

‘people to people’. Caldindo membership consists o Indonesians who have spent timein Canada and also Canadians who have spent time in Indonesia. While the majority oCalindo’s Indonesia membership are located in Jakarta, Calindo members can be locatedthroughout the country.For more information please email [email protected]

Canadian Education International

• The CWA seeks to encourage a sense o community as Canadian citizens in Jakarta, tooffer social activities or the Canadian community, to provide support or newcomers andto contribute to social development needs in Indonesia.Membership is open to all nationalities and everyone - male or emale - who has an interestin Canada and/or Canadian affairs is welcome to join. There are a host o activities planned

rom month to month including breakasts, luncheons/dinners and bazaars to name aew and the organization offers members a variety o groups to join including the SocialDevelopment group and tour group.For more information please email [email protected]



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