A G R E E M E N T BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF I NDONESIA AND
THE GOVERNMENT OF THE KINGDOM OF BELGIUM CONCERNING FINANCIAL CO-OPERATION
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND
THE GOVERNMENT OF THE KINGDOM OF BELGIUM CONCERNING FINANCIAL CO-OPERATION
The Government of the Republic of Indonesia and the Government of the Kingdom of Belgium;
Considering the establishment in 1967 Governmental Group on Indonesia (hereafter Group") with the purpose to contribute to development of the Republic of Indonesia;
of an Inter-called "the the economic
Considering that Belgium participates in the activities of the Group since its establishment;
Considering that by the Royal Decree Nr. law of 10 August 1981,
the law of 3 June 1964, modified 75 of 10 November 1967 and by the and the Royal Decree No. 526 of 31 March 1987 authorize the Belgian Minister of Finance and the Belgian Minister in charge of Foreign Trade to grant loans to foreign States;
Desiring that the financial co-operation provided for in the present Agreement should be made available within the framework of the joint co-operation undertaken by the members of the Group with a view to facilitate the implementation of the programme relating to the Development Plan of the Republic of Indonesia;
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-Have agreed on the following:
Article 1 Payments
1. The Government of the Republic of Indonesia shall be granted by the Government of the Kingdom of Belgium financial co-operation in the form of a non-interest bearing loan amounting to three hundred fifty (350) million Belgian Francs.
2. This financial co-operation shall be made available to the Government of the Republic of Indonesia through one payment which shall be made in Belgian Francs into a non-interest bearing account in the name of the Republic of Indonesia, Minister of Finance, Directorate General of the Budget, opened with the National Bank of Belgium. This payment will be effected as soon as possible after the formalities as provided under Article 7 of the present Agreement have been complied with.
Article 2 Repayments
1. The loan granted under this Agreement shall be repaid by the Government of the Republic of Indonesia to the Government of the Kingdom of Belgium in twenty installments, each amounting to seventeen million five hundred thousand (17.500.000) Belgian Francs.
The loan utilized by the
Article 3
Utilization of the loan
provided under this Agreement Government of the Republic of
shall be Indonesia for the purchase of Belgian capital goods or services related thereto in conformity with the needs of the Development Plan of the Republic of Indonesia.
The technical procedures for implementing the provisions of this Article shall be determined jointly by an exchange of letters between the Government of the Kingdom of Belgium and the Government of the Republic of Indonesia.
Article 4
Payments effected in accordance with this Agreement for settlement of the principal shall be free of all existing or future charges or taxes of whatever description, for which such payments could be liable under any legal provisions or regulations of whatever description of the Kingdom of Belgium and the Republic of Indonesia respectively.
Article 5
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-Article 6
The National Bank of Belgium and the Minister of Finance of Indonesia acting as agents of their respective Governments, shall by joint Agreements take the te c hnical measures required for the implementation of the provisions of this Agreement.
Article 7
The provisions of this Agreement will become effective at a date
establishing
to that
be determined by an exchange of notes the formalities required by the national legislation of each of the Contracting Parties for the implementation of this Agreement have been complied with.
IN WITNESS WHEREOF the undersigned, duly empowered to this end, have afficxed their signature to this Agreement.
Done at Jakarta, ｴＴＮＬＮｴ［ＬＮＮｾ＠ ｾｾｦ＠ ｾｩｮ＠ two originals in English language. ,YI' Y
FOR THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
Signed
POEDJI KOENTARSO
Director General for Foreign Economic Relations,
Department of Foreign Affairs.
FOR THE GOVERNMENT OF i'HE KINGDOM OF BELGIUM
Signed
Excellency,
With a view to implementing the provisions of
Article 3 of the Agreement reached today between the
Government of the Kingdom of Belgium and the Government
of the Republic of Indonesia, I have the pleasure in
suggesting that the following technical procedure be adopted:
1. The sums in Belgian Francs made available to Indonesia
under Article 1 ( thereinafter referred to as 11 sums
in Belgian Francs 11
) shall be used for down payments
and progress payment in favour of persons and firms
whose trading activity is located in Belgium,
amounting to approximately one third of the value
of contracts for the supply of Belgian substation
and transmission line equipments and services related
thereto for Sumatra, Java and Kalimantan.
2. The Ministry
Development
of Foreign Affairs, Foreign Trade and
Cooperation of Belgium may request the
of the Republic of Indonesia to supply Government
any information as may be necessary to ascertain
whether the payments due for the performance of the
relevant contract are in conformity with the objective
of the Agreement.
His Excellency,
Mr. Poedji Koentarso
Director General for Foreign
Economic Relations,
Departmentof Foreign Affairs.
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-3. In accordance with article 6 of the Agreement, the technical measures required for the execution of its provisions will be taken, by joint agreement between the National Bank of Belgium and the Minister of Finance of Indonesia on the initiative of the former; the latter solely will be empowered to nominate or revoke the officials authorized to dispose of the account opened by virtue of article 1 of the agreement and he will notify his decision, through diplomatic channels, to the National Bank of Belgium. As soon as these technical measures will have been taken, the Minister of Finance of Indonesia, or the persons duly authorized by him, may forward to the National Bank of Belgium irrevocable payment orders against the sum in Belgian Francs in respect of payments
contracts.
provided for by the above-mentioned
The execution of these payment orders shall be subordinated to the formal approval by the Belgian Ministry of Foreign Affairs,
Development Cooperation.
External Trade and
I should be grateful if you would kindly confirm that Your Government agrees with these provisions.
Please ｡｣｣ｾｰｴＬ＠ Excellency, my highest consideration.
the assurances of
Signed
NESTOR COCKX
Excellency,
In conformity with Article 7 of the Agreement
between the Government of the Kingdom of Belgium and
the Government of the Republic of Indonesia relating
to the granting of financial assistance by the Government
of the Kingdom of Belgium to the Government of the
Republic of Indonesia, signed at Jakarta, on
I have the honour to inform Your Excellency
that the formalities required by the legislation of
Belgium for the enforcement of the Agreement have been
duly complied with.
Consequently, I would propose that the date of
entry into effect of the Agreement be fixed as today's
date.
I avail myself of this opportunity to renew to
Your Excellency the
consideration.
His Exce l lency ,
Mr . Poedji Koent arso ,
Directo r Gene r al fo r For eign
Economi c Rela t i ons,
Department of For e i gn Affa i rs .
assurances of my highest
Signed
NESTOR COCKX
Ambassador Extraordinary
