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MEMORANDUM OF UNDERSTANDING BETWEEN

THE DIRECTORATE OF METAL INDUSTRY OF

THE DIRECTORATE GENERAL OF METAL, MACHINERY, TEXTILE AND MULTIFARIOUS INDUSTRIES OF THE MINISTRY OF INDUSTRY OF

THE REPUBLIC OF INDONESIA AND

THE HENAN PROVINCIAL COMMERCE DEPARTMENT OF THE HENAN PROVINCIAL PEOPLE'S GOVERNMENT OF

THE PEOPLE'S REPUBLIC OF CHINA ON

SCIENTIFIC AND TECHNOLOGY COOPERATION IN

IRON AND STEEL MAKING INDUSTRY AND METALLURGY INDUSTRY

The Directorate of Metal Industry of the Directorate General of Metal, Machinery, Textile and Multifarious Industries of the Ministry of Industry of the Republic of Indonesia and the Henan Provincial Commerce Department of the Henan Provincial People's Government of the People's Republic of China hereinafter individually referred to as "Party" and collectively referred to as the "Parties".

CONSIDERING the importance of expeditious realization of Indonesia's National Vital Project of Iron & Steel Making in South Kalimantan Province and the mutual interest of the Parties in promoting cooperation;

DESIRING to enhance scientific and technology cooperation in iron and steel making industry and metallurgy industry, particularly in the fields of manufacturing equipments, investment, management and research and development between the two countries;

INTENDING to encourage and support partnership between iron and steel making industries and metallurgy industries of both countries;

REFERRING to the Trade Agreement between the Government of the Republic of Indonesia and the Government of the People's Republic of China, signed in Jakarta on August 8, 1990;

TAKING INTO ACCOUNT the Joint Declaration between the Republ ic of Indonesia and the People's Republ ic of China on Strategic Partnership signed in Jakarta on April 25, 2005;

HAVE REACHED an understanding as follows:

Article 1 Objective

The objective of this Memorandum of Understanding is to promote scientific and technology cooperation and partnership in the fields of manufacturing equipments, management, and research and development in the industry of iron and steel making as well as metallurgy between the Parties.

Article 2

Scope of Cooperation

The Parties shall encourage and facilitate cooperation in the following areas:

1. Promote the expeditious realization of Indonesia's National Vital Project of Iron & Steel Making in South Kalimantan Province.

2. Promote research and development cooperation in scientific fields, research and internship exchange activities;

3. Promote Indonesian iron ore resources utilization and development, iron and steel making industry as well as metallurgy industry;

4. Promote investment cooperation and encourage the entrance of Henan iron and steel making industries as well as metallurgy industries into ASEAN market through establishing production bases in Indonesia;

5. Promote business partnership between the iron and steel making industries as well as metallurgy industries of both parties;

Article 3 Executing Agency

Article 4

Technical Arrangements

The cooperation under this Memorandum of Understanding shall be carried out through special arrangements to be concluded by the Parties.

Article 5

Protection of Intellectual Property Rights

The Parties agree that any intellectual property arising under the implementation of this Memorandum of Understanding will be jointly owned and:

1. In accordance with the legislation of their states the Parties shall provide efficient protection of intellectual property rights.

2. The issue of protection and distribution of intellectual property rights, taking into full consideration of the contribution of the respective participants, shall be regulated by the arrangement of the cooperation on specific areas bring in under this Memorandum of Understanding.

3. Each Party shall be allowed to use such intellectual property for the purpose of maintaining, adapting and improving the relevant property.

Article 6

Settlement of Disputes

Any dispute arising out of the interpretation and/or implementation of this Memorandum of Understanding shall be settled amicably through negotiations or consultations between the Parties.

Article 7 Amendment

This Memorandum of Understanding may be amended at any time in writing by the mutual consent of the Parties. Such amendment shall form an integral part of this Arrangement.

Article 8

Entry Into Force, Duration and Termination

2. This Memorandum of Understanding shall remain in force for a period of 5 (five) years and will be automatically extended unless either party proposes to terminate by giving written notification at lease 6 (six) months prior to the date of the intended termination.

3. The termination of this Memorandum of Understanding will not affect the validity and duration of any on-going Project or activities until the completion of such project or activities.

IN WITNESS WHEREOF, the undersigned have signed this Memorandum of

Understanding.

DONE in duplicate at Zhengzhou City, Henan Province, on March 121h , 2009, in

the Chinese, English and Indonesian languages, all texts being equally authentic.

In case of any divergence on the interpretation of this Memorandum of Understanding, the English text shall prevail.

Signed

I Gusti Pttlu Suryawirawan

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Director

Signed

Li Qingshu

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THE COMMERCE DEPARTMENT OF THE DIRECTORATE OF METAL

HEN AN PROVINCE INDUSTRY OF METAL, MACHINERY,

THE PEOPLE'S REPUBLIC OF CIDNA TEXTILE AND MULTIFARIOUS

INDUSTRIES

THE MINISTRY OF INDUSTRY THE REPUBLIC OF INDONESIA

MEMORANDUM OF UNDERSTANDING ON SCIENTIFIC AND TECHNOLOGY COOPERATION IN

moN AND STEEL MAKING INDUSTRY AND METALLURGY INDUSTRY

2009

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