Singapore Government Media Release
Media Division, Ministry of Information and The Arts,
140 Hill Street #02-02 MITA Building, Singapore 179369.
Tel: 837 9666

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SPEECH BY PRIME MINISTER GOH CHOK TONG AT THE INDONESIA-SINGAPORE FIRST GAS DELIVERY CEREMONY ON MONDAY, 15 JANUARY 2001, AT 4.00 PM AT SAKRA, JURONG ISLAND

Your Excellency President Abdurrahman Wahid

Ministers

Distinguished Guests

Ladies and Gentlemen

 

Today's ceremony marks the first delivery of natural gas under the West Natuna Gas Agreement. This agreement was signed between Singapore's SembCorp Gas and Indonesia's Pertamina exactly two years ago. It was an ambitious undertaking because of the Asian financial crisis. But despite the regional uncertainties, both sides committed enormous resources to construct a pipeline linking West Natuna to Singapore. They were confident of the strength of our bilateral relationship, and of the significant benefits that such a project would bring both our countries.

The entire gas project is expected to generate some US$8 billion in revenue for Indonesia over 22 years. It will create employment for many Indonesians. Singapore, on the other hand, benefits from having an additional source of fuel for power generation. Generating power from natural gas is more efficient and cleaner. In fact, just last week, we started a feasibility study of running public buses on natural gas. If it is successful, we could see in time use of natural gas-run public transport and commercial vehicles. This would help reduce pollution in the environment.

Even as we celebrate the first delivery of natural gas from West Natuna, we are already in an advanced stage of discussion for a second gas project. Singapore Power, through its subsidiary, GasSupply, is working with Pertamina to bring natural gas from Sumatra to Singapore. This project, I understand, will generate US$7 billion worth of revenue over 20 years.

These two gas projects show clearly the significant mutual benefits that can be derived from bilateral cooperation. As immediate neighbours with complementary strengths, we can bring greater prosperity to our two peoples by working closely together. This is as true now and in the future as it has ever been. It has been demonstrated time and again through concrete initiatives.

For example, in August 1990, Indonesia and Singapore signed a historic economic cooperation agreement for the development of the Riau province. Today, Batamindo Industrial Park, Bintan Beach International Resort, Bintan Industrial Estate and Karimun Marine and Industrial Complex have attracted 120 international investors from 14 countries including US, Europe and Japan. Together, these investors have put in commitments of over US$4 billion. The total export value from these industrial parks last year is estimated to be US$2.5 billion. The products from factories in Batam and Bintan, made by Indonesians, carry internationally recognised brands, and are destined for global markets. The resort development in Bintan has seen its visitorship grow by about 25% annually in the last three years, even as tourism numbers in the region declined during the Asian financial crisis. More importantly, these Riau projects have created employment for about 100,000 Indonesians.

In all these collaborations, including this West Natuna gas project, Indonesia and Singapore have not worked alone. By ourselves, Singapore's investments would be too modest to make any great difference to Indonesia's economy. But Singapore can play a useful catalytic role. Our participation in these bilateral projects signals strongly to the international community Singapore�s confidence in the fundamental prospects of Indonesia. We are then able to attract many more international companies and partners to join us, hence expanding significantly the potential of these bilateral projects. Our two countries will therefore benefit from working together on the basis of respect for each other�s strengths. Mutual respect and confidence will enable us to achieve more.

Finally, let me congratulate SembCorp Gas, Pertamina, Conoco of the US, Premier Oil of the UK, and Gulf Resources of Canada on the completion of the developmental phase of the West Natuna gas project.