One of the silver linings of the global economic downturn is the fresh attention given by developed nations to emerging economies, particularly Indonesia, which has proven to be remarkably resilient to the crisis.
Outgoing Canadian Ambassador to Indonesia, John T. Holmes, told The Jakarta Post at his office recently that more Canadian companies have begun to look to Indonesia to explore its market potential as the world economy continues to struggle and "things are not so good" in the United States, Canada's main trading partner.
"We recognize that we have to expand our market and look elsewhere."
"Despite the downturn, we are seeing a modest increase in Canadian business interests in the Indonesian market," he said.
While still expecting a slowdown, Holmes said he was upbeat trade relations between the two countries were strong enough to weather the crisis. And this, he said, is the embassy's prime achievement under his three year leadership.
Holmes, who once told the Post that his mission here was "to sell" Canada, presented his credentials to President Susilo Bambang Yudhoyono in 2006.
"Our trade outreach programs, which have included Surabaya, Medan, Makassar and Balikpapan, were successful in developing new markets or potential sales and partnerships," he said.
Holmes explains the lack of legal certainties in Indonesia has long eclipsed the country's potential and been a major hindrance to foreign investment, a challenge that he has tried to overcome in order to draw investors from his home country.
The Canadian embassy, he said, is currently holding talks with Indonesian authorities to sign an agreement on investment protection. He has told Canadian investors, "you need to come out here *to Indonesia*. You cannot do a deal overnight, not like doing business in other parts of the world. You need to make those personal connections and see what the opportunities there are and follow up on them constantly."
In 2008, bilateral trade grew to US$2.51 billion, with Canada's exports to Indonesia reaching $1.87 billion. Canada's primary exports to Indonesia are wheat, wood and wood products, oil and gas equipment, and electronic products, most notably the widely popular BlackBerry.
"The IT *information technology* sector is a big market for us here," Holmes said. Three Canadian telecom companies attending an IT conference in Singapore recently, he added, were very interested in Indonesia's market potential.
There is no exact figure for the number of Canadian companies operating here, Holmes said. Their big investors include Manulife and Sunlife in the financial sector and Husky and Talisman in the oil and gas sector.
The improving trade relations reflect Canada's solid and growing ties with Indonesia in other important areas.
Because of its strategic importance, Indonesia is among the countries Canada's development projects are focused on under the Canadian International Development Agency (CIDA).
"We are coming to the end of our involvement in Aceh this year," Holmes said.
The country has built nearly 9,000 houses in the tsunami-ravaged province of Nanggroe Aceh Darussalam. It is now focusing its development projects on the eastern part of Indonesia, especially the island of Sulawesi.
"For historical and other reasons we have a lot of partnerships there.We have several projects that are up and running. And we also have projects that are coming on stream soon in the areas of sustainable livelihoods," he said.
Holmes said he expected people-to-people relations to improve in the coming years, following the recent moderation of Canada's travel advisory for Indonesia and the country's new immigration policy, which allows foreign students to work during summers or for three years after completing study in Canada.
Although Canada does not have a scholarship program equivalent to the United States' Fulbright or Britain's Chevening, its decades-old development program with the State Islamic University (UIN) has contributed significantly to the growth of informed and democratic views in Muslim-majority Indonesia.
Abdul Mukti Ali, one of the first promoters of Islamic modernism in Indonesia, studied at McGill University in Montreal. He paved the way for UIN (formerly IAIN) students to study in Western universities.
"The challenge is the distance between our countries and the lack of air connections," Holmes said.
Holmes, who served as ambassador in Amman, Jordan, before coming to Jakarta, is scheduled to leave Jakarta for Ottawa this month to assume his new post as Canada's director general for Middle Eastern and Maghreb affairs. "I am very excited about the challenge," he said.
When asked about his most memorable experience during his term here, Holmes answered: Traveling to Canada's housing projects in Aceh and, "seeing the faces of these people who have lost their loved ones in the tsunami and to see how happy they are to be in a very wonderful house," he said.
That memory will put a smile on his face when he leaves, knowing that his country has helped Indonesia.
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