RI, CANADA DISCUSS INVESTMENT COOPERATION

Jakarta, July 21 (ANTARA) - The Indonesian and Canadian governments are discussing an agreement on promotion and protection of investment in both countries, Indonesian Trade Minister Mari Elka Pangestu said.

"This agreement would enable the two countries to provide legal certainty and protection to investment in the two nations," the minister said in a teleconference from Singapore on Tuesday.

The foreign investment and protection agreement will also stipulate the pattern of settlement of a dispute over an investment case in the two countries.

Besides having a bilateral meeting with the Canadian side, the Indonesian trade minister also met with her counterpart from Australia to discuss dumping issues.

"We will meet with Australia this evening to discuss the toilet tissue dumping issue. I want to stress that an investigation on the issue needs to be carried out fairly," the minister said.

Meanwhile, data from the finance ministry show investment in Indonesia is predicted to grow 5.6 percent and the economy 4.1 percent in the first semester this year.

The Indonesian economy is predicted to grow 4.6 percent in the second semester, supported by investment which is expected to grow 9.2 percent.

In 2009 he Indonesia economy is expected to grow 4.3 percent, supported by an investment growth of 7.4 percent.

Foreign direct investment in the first semester this year meanwhile is predicted to reach US$4.549 billion, up from the same period last year reaching US$3.5 billion.

For the second semester it is predicted to reach US$1.704 billion, down from US$4.419 billion recorded in the same period last year.

Foreign portfolio investment in the first semester this year is predicted to be minus US$1.178 billion, down from minus US$288 million in the same period last year.

Foreign portfolio investment in the second semester of 2009 is predicted to reach US$420 million, up from minus US$1.309 billion in the same period last year.

Investment growth is expected to come from foreign direct investment, bank credits, expenditures of state-owned and private companies and also from the capital market.