MEMORANDUM OF UNDERSTANDING BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND
THE UNITED NA TIO NS INDUSTRIAL DEVELOPMENT ORGANIZATION REGARDING THE PROMOTION OF SOUTH-SOUTH
INDUSTRIAL COOPERATION
WHEREAS the United Nations Industrial Development Organization (hereinafter referred to as UNIDO), as a specialized agency of the United Nations, has the primary responsibility in promoting industrial development in developing countries and in countries with economies in transition;
WHEREAS the Declaration on the New Asian-African Strategic Partnership, done in Bandung, Indonesia on 24 April 2005, emphasizes the need to promote practical cooperation between the two continents in areas such as trade and industry;
WHEREAS the Government of the Republic of Indonesia (hereinafter referred to as "the Government") and UNIDO (hereinafter referred to collectively as "the Parties") desire to consolidate and enhance their cooperation, especially in the field of South-South cooperation, and in the fields of research, the transfer of technology and the promotion of investments;
WHEREAS the successful development expenence and the achievements in industrial technologies of the Republic of Indonesia may serve as a model for other developing countries and contribute to their industrial development within a mutually beneficial framework;
WHEREAS the Parties share the long-term objective of concluding an agreement on the establishment of a UNIDO Regional Centre for South-South Industrial Cooperation in the Republic of Indonesia, if and when they deem it feasible;
2
ARTICLE I
1. Subject to the availability of the necessary financial resources, the Parties will strengthen
their cooperation in the field of industrial development by taking into consideration the objective of
South-South cooperation when planning new industrial development programmes and projects in
future.
2. The Parties will explore innovative approaches for enhanced South-South industrial
cooperation, with the least developed countries as the agreed focus of priority.
ARTICLE II
The Parties will cooperate to promote, inter alia, the following areas of South-South
industrial cooperation between selected countries:
(i) Exchanging experience in the orientation, formulation and implementation of
industrial policy;
(ii) Institutional and enterprise networking in order to enhance productive capacities, and
the flow of trade, technology promotion and investments;
(iii) Replicating best practices for the reduction of poverty through industrial
development and through grassroots innovations serving as impulses for rural growth;
(iv) Strengthening national and local innovation systems for the use of modem
technology, and enhancing adaptive capabilities to commercialize new knowledge;
(v) Enhancing the entrepreneurial and productive capacities of small and medium-sized
enterprises through the sharing of best practices and experiences, as well as through other
activities to improve skills;
3
ARTICLE III
In implementing programmes and projects for South-South industrial cooperation under this
Memorandum of Understanding, both Parties agree to utilize available opportunities for the
transfer, subject to respect for applicable intellectual property rights, of proven Indonesian
technologies and technical and managerial expertise to other developing countries in a mutually
beneficial partnership.
ARTICLE IV
All programmes and projects for South-South industrial cooperation under this
Memorandum of Understanding will be developed in accordance with the applicable rules of
UNIDO governing technical cooperation and will be subject to the financial regulations, rules and
administrative instructions and procedures of UNIDO.
ARTICLE V
1. The Parties will not, without the consent of the other Party, disclose to a third party any
proprietary information obtained during the implementation of this Memorandum of
Understanding, other than for the purposes of promoting South-South industrial cooperation.
2. Where necessary, the Parties will mutually agree on appropriate measures for the protection
of intellectual property rights in the implementation of South-South programmes and projects
pursuant to this Memorandum of Understanding.
ARTICLE VI
This Memorandum of Understanding may be amended in writing by the Parties following
mutual consultations. This Memorandum of Understanding will come into effect upon signature by
both Parties and will remain in effect for period of the 2008-2013 country programme cycle of
4
ARTICLE VII
Any dispute as to the interpretation or implementation of this Memorandum of
Understanding shall be settled by consultation and negotiation between the Parties.
ARTICLE VIII
This Memorandum of Understanding may be terminated by either party on ninety days'
written notice to the other Party. If this Memorandum of Understanding is terminated by either
Party, steps will be taken to ensure that the termination does not affect any prior obligation, project
or activity already in progress.
IN WITNESS WHEREOF, the undersigned, being dully authorized thereto, have signed this
Memorandum of Understanding at Vienna on the fourth day of December 2007, in English.
On behalf of the
Government of the
Republic of Indonesia
Fahrni Idris
Minister for lndustry and Trade
On behalf of the
United Nations Industrial
Development Organization
