Your Excellency President Megawati Soekarnoputri
Ministers
Distinguished Guests
Ladies and Gentlemen

Today’s ceremony marks the completion of the natural gas pipeline from South Sumatra to Singapore via Batam, or more simply, the Sumatra-Singapore pipeline. The project is a collaborative effort between Indonesia’s PT Perusahaan Gas Negara and Singapore’s PowerGas Ltd. The pipeline will supply natural gas from South Sumatra to Singapore for 20 years. It will be an enduring symbol of the close cooperation between Singapore and Indonesia.

The Sumatra-Singapore pipeline will benefit our two countries considerably. It is expected to generate some US$9 billion in revenue for Indonesia. Over 700 jobs will be created for Indonesians in the operations and maintenance of the pipeline. Singapore, in turn, will use the gas for more efficient electricity generation. It will be an additional source of energy to meet our growing needs.

The Sumatra-Singapore pipeline is the second collaborative venture between Singapore and Indonesia in the power-generation sector. In January 2001, our two countries launched the West Natuna-Singapore gas pipeline. That project is expected to generate US$8 billion for Indonesia over 22 years. Together, the two gas projects will bring US$17 billion in revenue for Indonesia. They bear testimony to the large mutual gains that can accrue from successful bilateral cooperation.

Indeed, as immediate neighbours with complementary strengths, we should welcome more opportunities to build synergies between our economies. They will bring greater prosperity to our peoples. Our two governments have agreed to ensure that conditions remain conducive for such win-win relations to flourish. This means a climate of trust, confidence and friendship, and working on the basis of equal partnership.

Over the past two years, despite difficult external circumstances, Indonesia's economic recovery has made steady progress. It is a welcome development not just for Indonesia, but the region. As the largest country in ASEAN, Indonesia's ups and downs have an impact on your neighbours. Your stability is important to the entire region. When investors evaluate opportunities in other ASEAN countries, they want to know too, how Indonesia is faring. Singapore, therefore, takes a deep interest in the peace and prosperity of Indonesia.

Presently, Singapore companies and investors are optimistic about Indonesia's prospects. Singapore, in fact, was the top investor in Indonesia last year. We hope that our investments will have a catalytic effect on the Indonesian economy. For instance, our participation in projects in Indonesia shows Singapore's long-term commitment to Indonesia. It is an expression of our confidence in your future. We believe this will signal to international investors the many opportunities in Indonesia.

The significance of the Sumatra-Singapore pipeline goes beyond bilateral relations. The pipeline is an important link in the Trans-ASEAN Gas Pipeline project, or TAGP. President Megawati's and my presence here today show also the importance we attach to ASEAN.

The TAGP is a major initiative to establish interconnecting arrangements for the flow of gas between ASEAN countries. The purpose is to achieve greater security and sustainability of energy supply for all of us. The TAGP is a substantive example of regional co-operation, and I am very pleased that it is progressing well. An MOU was signed in July last year at the ASEAN Energy Ministers Meeting in Bali. I hope ASEAN will now work fast to implement the project. Successful regional co-operation reinforces investor confidence in the cohesiveness of ASEAN, and our seriousness in integrating our economies.

On this note, let me congratulate PT Perushaan Gas Negara and PowerGas Ltd on the completion of the Sumatra-Singapore gas pipeline project. Thank you.

______________________________