Speech by Prime Minister Goh Chok Tong at the Inauguration Ceremony of the Natural Gas Transmission Pipeline from Grissik, Indonesia to Sakra, Singapore at Batam, Indonesia, 4 August 2003

SPEECH BY PRIME MINISTER GOH CHOK TONG AT THE INAUGURATION CEREMONY OF THE NATURAL GAS TRANSMISSION PIPELINE FROM GRISSIK, INDONESIA, TO SAKRA, SINGAPORE, AT BATAM, INDONESIA, ON MONDAY, 4 AUGUST 2003

Your Excellency President Megawati Soekarnoputri
Ministers
Distinguished Guests
Ladies and Gentlemen

Today'sceremony marks the completion of the natural gas pipeline from SouthSumatra to Singapore via Batam, or more simply, the Sumatra-Singaporepipeline. The project is a collaborative effort between Indonesia's PTPerusahaan Gas Negara and Singapore's PowerGas Ltd. The pipeline willsupply natural gas from South Sumatra to Singapore for 20 years. Itwill be an enduring symbol of the close cooperation between Singaporeand Indonesia.

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

3 The Sumatra-Singapore pipeline is the secondcollaborative venture between Singapore and Indonesia in thepower-generation sector. In January 2001, our two countries launchedthe West Natuna-Singapore gas pipeline. That project is expected togenerate US$8 billion for Indonesia over 22 years. Together, the twogas projects will bring US$17 billion in revenue for Indonesia. Theybear testimony to the large mutual gains that can accrue fromsuccessful bilateral cooperation.

4 Indeed, as immediateneighbours with complementary strengths, we should welcome moreopportunities to build synergies between our economies. They will bringgreater prosperity to our peoples. Our two governments have agreed toensure that conditions remain conducive for such win-win relations toflourish. This means a climate of trust, confidence and friendship, andworking on the basis of equal partnership.

5 Over the past twoyears, despite difficult external circumstances, Indonesia's economicrecovery has made steady progress. It is a welcome development not justfor Indonesia, but the region. As the largest country in ASEAN,Indonesia's ups and downs have an impact on your neighbours. Yourstability is important to the entire region. When investors evaluateopportunities in other ASEAN countries, they want to know too, howIndonesia is faring. Singapore, therefore, takes a deep interest in thepeace and prosperity of Indonesia.

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

7The significance of the Sumatra-Singapore pipeline goes beyondbilateral relations. The pipeline is an important link in theTrans-ASEAN Gas Pipeline project, or TAGP. President Megawati's and mypresence here today show also the importance we attach to ASEAN.

8The TAGP is a major initiative to establish interconnectingarrangements for the flow of gas between ASEAN countries. The purposeis to achieve greater security and sustainability of energy supply forall 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 inJuly last year at the ASEAN Energy Ministers Meeting in Bali. I hopeASEAN will now work fast to implement the project. Successful regionalco-operation reinforces investor confidence in the cohesiveness ofASEAN, and our seriousness in integrating our economies.

9 Onthis note, let me congratulate PT Perushaan Gas Negara and PowerGas Ltdon the completion of the Sumatra-Singapore gas pipeline project. Thankyou.