Canadian businesses have been actively involved in trade and investment in Indonesia for a number of decades. Although the government-to-government approach has been the main contributor to the strengthening of economic relations between the two countries, private business organizations have also played an important role.

The Indonesia Canada Chamber of Commerce (ICCC) is among the most active business organizations in promoting investment and trade between the two countries. The ICCC regularly conducts various programs that are not only related to business activities but also carried out through social events.

The ICCC was formed in 1996 through the merger of two organizations, the Canadian Business Association (CBA) and the Indonesia Canada Business Council (ICBC). The CBA was largely represented by Canadian businesspeople in Indonesia, while the ICBC largely consisted of Indonesian businesspeople interested in closer business ties with Canada. Both organizations agreed that merging their resources and efforts would produce an even stronger organization and more closely connect the Indonesian and Canadian members of each organization.

The mission of the ICCC is focused on serving the needs and interests of the Indonesian-Canadian business community, primarily via information sharing and business and social networking activities, says Vivien Kusumowardhani, the ICCC’s newly elected chairperson.

Kusumowardhani, the president commissioner of PT Sun Life Financial Indonesia, was elected as the chairperson during the ICCC Annual Networking Luncheon and General Meeting in Jakarta in April this year. The new executive board also includes Gregory A. Elms as vice chairperson, Tony Costa as treasurer and Edwin Pieroelie as secretary-general.

The ICCC’s main role is bridging the two countries’ business sectors through a wide range of programs, such as providing information and analysis on trade and investment trends in Indonesia and hosting events that provide opportunities to learn about and discuss business opportunities in Indonesia and in Canada.

In addition, the ICCC also represents the general interests of Canadian business to the Indonesian government and provides practical assistance and information to support existing and new businesses.

“The ICCC also regularly organizes social networking events to bring Canadian and Indonesian members of our network closer together,” Kusumowardhani said.

Vivien Kusumowardhani (Courtesy of ICCC)

In addition to such programs, the ICCC also closely collaborates with the Canadian Alumni in Indonesia (CALINDO), Canadian Education International (CEI) and the Canadian Women’s Association (CWA), as well as other business chambers and organizations in Indonesia.

Indonesia is one of Canada’s main foreign investment destinations in Asia. In the beginning of the 1980s, Canada’s outward foreign direct investment in Indonesia was the country’s largest in Asia, excluding Australia.

With the increase in Canada’s foreign investments in other Asian countries such as Japan, Singapore and China, in the early 1990s, Indonesia’s ranking on Canada’s foreign direct investment list continued to drop. Indonesia was the sixth largest recipient of Canada’s foreign direct investment in Asia in 2016.

According to data from the Asia Pacific Foundation of Canada (APF Canada), a non-profit organization focusing on Canada’s relations with Asia, in 2016, Canada’s foreign direct investment reached a total of C$2.59 billion, a slight decline from C$2.52 billion in 2015 and C$3.90 billion in 2014.

Canadian companies are involved in various business sectors, such as mining, financial, construction, energy, transportation, warehouses and telecommunications. A number of major Canadian companies have operated in Indonesia, including Sunlife Financial, Manulife Financial, Husky Energy, Talisman Energy and Circle K.

Husky, which has been in Indonesia for 30 years, is currently developing gas projects in the Madura Strait offshore. These include the BD and shallow water MDA-MBH fields, which are expected to produce natural gas and associated liquids.

Circle K, which has been operating in Indonesia for more than 25 years, has become one of the most popular and successful convenience store companies in Indonesia. At present, the Canadian retailer has more than 500 outlets in seven major cities including Jakarta, Bali, Bandung, Yogyakarta, Surabaya, Makassar and Batam.

Several other organizations have also contributed significantly in promoting bilateral economic relations. For example, most trade missions are organized by the Trade Commissioner Service of the Canadian government as well as by provincial trade office representatives, such as the British Columbia Trade & Investment office in Jakarta.

The ICCC Board and its members are often called upon to meet with and brief visiting trade missions so that they may hear directly from them about business opportunities. The ICCC also regularly holds social events to provide excellent opportunities for its members to network not only within the Indonesian-Canadian business community, but also with members of other business chambers based in Indonesia as well as other Canadian chambers in the region.

Among annual flagship events are the Maple Leaf Ball, the Canada Cup Golf Tournament and the Friends of Canada Networking Evening, as well as regular breakfast briefings and luncheons on current business issues. The ICCC also organizes quarterly business networking evening gatherings called “Biztros.”

In the field of trade, Canada is also one of Indonesia’s major trading partners. But Indonesia continues to suffer a trade deficit, although the figure has indicated a declining trend in recent years.

According to data from Indonesia’s Trade Ministry, two-way trade between the two countries slightly dropped to US$2.11 billion in 2016 from $2.3 billion in 2015. In 2016, Indonesia’s imports reached a total of $1.38 billion, higher than its exports of $732.44 million. During the year, Indonesia’s trade deficit amounted to $650.58 million but it showed a significant decline from $886.90 billion in 2015 and $1.10 billion in 2014.

Indonesia’s major exports to Canada consist of woven clothing and apparel articles, electrical machinery equipment, rubber and rubber articles and knitted apparels, while its imports mostly comprise cereals, wood pulp, paper or paperboard scraps, fertilizers, boilers and mechanical scraps.