Background on the Canada-Indonesia Foreign Investment Promotion and Protection Agreement (FIPA) Negotiations
Canada and Indonesia held their fourth round of Foreign Investment Promotion and Protection Agreement (FIPA) negotiations from November 6 - 7, 2008 in Ottawa. The parties have pledged to continue to work together to conclude an agreement in a timely manner. The next round of negotiations is tentatively planned for February 2009 in Indonesia.
Canada's objective in these negotiations is to secure a comprehensive, high-quality agreement that will provide a framework of legally binding rights and obligations, as well as access to international arbitration for the settlement of disputes. Such a FIPA will provide greater predictability and protection for Canadian investors and their investments in Indonesia.
In 2007, the stock of Canadian direct investment in Indonesia was C$2.1 billion, making it the fourth largest destination for Canadian direct investment in Asia. Canada's business community has consistently identified Indonesia as a priority partner, with significant investment opportunities in a variety of sectors including natural resources, financial services, infrastructure, and telecommunications, among others.
