Government of Canada

Government of Canada

November 15, 2015 02:11 ET

Prime Minister Announces Infrastructure Funding for Indonesia

ANTALYA, TURKEY--(Marketwired - Nov. 15, 2015) - Prime Minister's Office

Introduction

The Prime Minister, Justin Trudeau, today announced $14.25 million in funding to strengthen infrastructure development in Indonesia, in order to promote sustainable economic growth and reduce poverty in the country.

Canada is partnering with the World Bank, through the Accelerating Sustainable Public-Private Investments for Infrastructure Renewal (ASPIRE) project, to assist Indonesia in preparing the legal and regulatory groundwork required for critical public-private partnership (P3) infrastructure projects. This includes the establishment and operationalization of a P3 Centre in Indonesia.

The announcement was made on the margins of the G20 Leaders' Summit, following the Prime Minister's bilateral meeting with Indonesian President Joko Widodo.

Quotes

"Canada's economic growth was made possible by building ambitiously. Our government believes that modern infrastructure is one of the key ingredients of a healthy economy-it creates jobs, makes economies more competitive, and strengthens our communities. With the project announced today, Canada will help Indonesia kick-start some critical infrastructure projects, promoting employment and growth, and reducing poverty." - Rt. Hon. Justin Trudeau, Prime Minister of Canada

Quick Facts

  • Infrastructure is critical to reduce poverty in developing countries. Despite strong economic growth, national governments in parts of Asia lack the technical expertise required to develop public-private infrastructure projects that would attract private investment and create good jobs.
  • Infrastructure investment is a key topic of discussion at this year's G20 Leaders' Summit in Antalya, Turkey.
  • Canada and Indonesia have maintained a strong bilateral relationship since the establishment of diplomatic relations in 1952. Canada continues to work with Indonesia on issues of mutual importance, including counterterrorism, good governance, human rights, religious freedom, pluralism, and poverty reduction. Canada's bilateral development program has a dual focus: strengthening investments to build economic foundations, and addressing employment skills for sustainable economic growth. It also supports good governance and democracy.
  • Indonesia has emerged as Canada's largest export market ($2.03 billion in 2014) in the Association of South-East Nations (ASEAN) region and is an important destination for Canadian foreign direct investment abroad (a stock of $4.32 billion in 2014). Canadian exports nearly doubled from 2010 to 2014.

Associated Links

  • Canada in Indonesia
  • Canada-Indonesia Relations
  • Indonesia Factsheet
  • APEC PPP Expert Advisory Panel

This document is also available at http://pm.gc.ca

Backgrounder

The Prime Minister, Justin Trudeau, announced today that Canada is contributing $14.25 million over four years (2015-2019) to the Accelerating Sustainable Public-Private Investments for Infrastructure Renewal (ASPIRE) project. The initiative, which is being undertaken with the World Bank, will strengthen public-private partnerships (P3s) in Indonesia, stimulating sustainable economic growth in the country and reducing poverty.

More specifically, the project will help lay the legal and regulatory groundwork for P3 development of critical Indonesian infrastructure projects that are identified as bankable, high-impact, gender-sensitive, and environmentally sustainable.

The initiative supports Indonesia's connectivity agenda, including increasing access to markets and services, as well as a number of the country's infrastructure goals.

Today's announcement builds on Canada's initial $5 million contribution to the establishment of Indonesia's Public Private Partnership (P3) Centre at the 2013 APEC Leaders' Summit in Bali. The Centre will act as the country's lead agency in P3 preparation and financial structuring. As an APEC-driven initiative, the Indonesia P3 Centre receives support from the APEC P3 Expert Advisory Panel and serves as a pilot for the development of P3s across the region.

Canada is a leader in P3 policy development, and is already providing technical support to select Asian governments, in order to enable an environment for P3s and lay the foundation for commercially viable infrastructure projects. These investments could provide opportunities to mobilize increased Canadian investment in these emerging markets.

Contact Information

  • PMO Press Office:
    (613) 957-5555