Wedoany.com Report-Oct. 16, PT Arsari Tambang, an Indonesian tin mining firm controlled by the family of President Prabowo Subianto, is negotiating the purchase of a mining property in Canada, according to its chief executive's remarks to reporters on Wednesday.

The company intends to utilize the recently established economic partnership between Indonesia and Canada to facilitate investment in this overseas asset. Aryo Djojohadikusumo, the executive and nephew of Prabowo, shared these insights during the discussion.

Djojohadikusumo withheld specific information about the target due to active talks but indicated the deal's estimated value at 7 trillion rupiah, equivalent to $422.71 million. He added that PT Arsari Tambang targets finalizing the arrangement by June 2026.

This potential move aligns with the broader objectives of the Indonesia-Canada Comprehensive Economic Partnership Agreement (CEPA), signed on September 24, 2025, in Ottawa. The pact, witnessed by President Prabowo Subianto and Canadian Prime Minister Mark Carney, seeks to expand market access for goods, services, and investments while promoting sustainable growth.

Through the CEPA, Canada aims to increase its bilateral trade volume with Indonesia, Southeast Asia's largest economy, by twofold within six years. The agreement covers provisions for small and medium enterprises, labor standards, environmental protection, and women's economic participation, fostering mutual benefits.

PT Arsari Tambang primarily operates in the Bangka Belitung archipelago, a central area for tin extraction in Indonesia, the second-largest global producer of the metal. The company's subsidiary, Mitra Stania Prima, maintains a smelting capacity of 3,811 metric tons as of 2024, supporting efficient processing of raw materials.

This expansion into Canada represents a strategic diversification for PT Arsari Tambang, leveraging international agreements to access new resources and technologies. The Bangka Belitung operations remain a cornerstone, contributing significantly to Indonesia's tin output, which plays a vital role in industries like electronics and alloys.

The CEPA also includes complementary initiatives, such as a Market Leader Partnership between Export Development Canada and Indonesia's Investment Authority, providing up to $825 million in debt financing for collaborative projects. Additionally, an agreement between the Business Council of Canada and Indonesia's Chamber of Commerce and Industry aims to build business networks through joint trade missions.

These frameworks enhance opportunities for cross-border ventures, particularly in sectors like mining and renewable energy. For PT Arsari Tambang, the Canadian acquisition could integrate advanced practices into its portfolio, bolstering long-term competitiveness.

Indonesia's mining sector continues to evolve, with firms like PT Arsari Tambang focusing on sustainable development and global partnerships. The company's growth trajectory, rooted in domestic strengths, now extends internationally, aligning with national goals for economic resilience.

By pursuing this transaction, PT Arsari Tambang demonstrates proactive engagement in the evolving trade landscape. The anticipated closure in June 2026 will mark a key milestone, potentially unlocking synergies between Indonesian expertise and Canadian assets.

Overall, this development highlights the positive momentum from the CEPA, paving the way for enhanced economic ties and investment flows between the two nations.