-·· PTJLP AND PAPITIH Ii.DUSTRY STJ DY
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11".a.e Governmont o:f Indonesia and tile Government of Ca n ada , dec i
-ring to re c or d an u_11cfo r s t a n d:i.ng conoernin£; the under tak.ine of a s urvey of
t he pulp a nd paper :industr y in Inc on esia hn.ve a gr e e d a s follows :
Arti c le I c
The s t udy will l)e known r?.s t he Pulp ano. Pape_· I n rlu3tr y Study ,
and is being -i.m d8:r t c..iken in Ind onesia in conjucti on with the Pine and
Agathi s Pla n tations Study in 'e:otral ch1Yc1 .
11.his study will be 1.l! .. dcrtaken t·ri th a vi e H t o (a ) _ repar i ng ,a
pla n for the pha::icd de velopment of pulp .:i,ncl pc:.1 er mills on a xra:ti omli.d.e
b asis over t he next ten years r (b) ue l ect_· ng po c nti<:i.l rn · 11 site s ·for
imme d i ate deve lopment and , (c) car r inc out suff i c:\.ent e conomi c ana1yf3i s
'to support wlm t e VE!r .eec omrnendc.tions a r e made o..s a result of t he stu dy • ,.
. Article . II
.As part of i to contribution tmder i ts a.id ーZZNセッ{Lイ。 ュ@ to I ndonesia,
Government of Canada , throuzh the Canadia n Intcrnat i ona.1 Development
Agency, will provide an am ount not exceeding Sl 00 , 000 (Ca nadian: ) t o pay
for the s ervice s of a Gana.(li a 1 エ セ QB Qウ オャ@ t an t team wh ich wi ll undertake the
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I aforement i oned Btui'iy .. The Go ·rnmcnt ッ エ セ@ Carn:.td;:-:>, will als o meet the speci-f i e loca l costs outlined i n .:.>0 ction 3 of the A:rmcx heret o .
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'I As det ailed in Sect ion 4 o:f t he Am1ex hereto, th Government of
Indonesia will provide countc r p[).rt persom1e1.,. ancl bear the cost of all
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'. ,. ... i · a dministrative assistance and
an
local nupport , other than t hn:trefer-./:'i
, red to in Sect ion 3 cf the A1mox hereto a.s the r espom>ibility of t he
of Canada. .
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•Tue imr,lemen t at ion of t he pr o;ject will b e in a ccordance with
des cri ption in the Annex hereto . I t is e st i mated that the study
require approxi mately four to six months to compJ.ote .
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The Annex of the . Memor andum may be 11mended from time to time
the s pirit of the_ J'1Temorandum b y let terB exchanged
Governmc£,t of Inclomrn i a a nd t he Government of Ca na da .•
In wゥエセ・ウウ@ Whereof the Undersi 511cd , Being Duly Authorized By
Respective Governmentn , Have Signe c1 This 1fomorandu m Executed.
In Duplicate At
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fuyッヲ セG@
1971 .
,-·Signed Signed
ANNEX
---to the Memore,ndum of Unclerst2-p.clin_g_
OF THE PROJEC T
,.
A Survey f or the Deve lopme nt of ·the
Pulp and Paper Jndustr :v
The pr oj e ct shall cons:i.st of the provision of con s ulting
ser-"
as are required to car::cy out a broa rl s urvey o:f th e pttlp and.
pa-in Indonesia for t h e purpose of prepn.rpa-ine; a plan for the
!·;,phased developmen t of pulp and paper mills on a na t ion- wide b as is over ... '
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next 10 year s , selecting' potential mill sites for immediate deveJ.-and c arrying out sufficient economic anal ysis t o support what.e- ·
ver recommendations are mccle as a result of the survey .
OF
WORK
rI'he Government of Ca nada shall eng;aee a Canadian consul·!;a.nt
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whose servi ces, without l imi-ting the genera lity of the
foreg-oing , shall include :
Consultations with Indonesian (5overnment officials,
parti-cularl;y those in the National Development Plaiming aァ・ョ」セャ@
(BAPPENAS), the Department of Industry a.ncl the De partment
of Agriculture, to determine curren t and proposed plans ,
policies and l egisl a tion r e l ating to the clevelopme nt of
. the pulp and. paper industry, and to }'.'eview projections for
pulp and paper
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pulp and paper r equirements dur ing the next 10 years.
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A.n assessment of a.11 a vailab l e datn ancl reports rela tecl to
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the developr.ient of the Indones i a n pulp an<l paper industry , .
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particul arly those rmbmi ttecl by };CAFE, FAO IBIW, J apan and ! '
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· the Uni te d States , an well as those prep'.lre d by pri va te
commercia l i ntere::::i ts.
c) An assessment of the availabi lity and c ompa r a tive economy
of using pulpable f ores+, r es ources ancl other fi h r-ous r a u .
lrB.. tcrials s uch a s straw , l1agc:wse , etc. , :for the ma
nufac-ture of pulp. ':Jlhis a ssessment should a L-10 include r e
com-mend-'.ltions regardi ng measures to be taken :for the
develop-ment of pulpP.blo forest resources and other fibrous raw
ma terial s throue;h replnnting , ex t ension of r es01.u•ce a reas
and improvement of infr.astructure to ens11re a continuous
supply of r aw mater ials for the pulp and po..p e1, · indus try.
d) An ass essment of t ho present and future availc..bili ty , ·
sources. and cos t s of water, power, fuel, che mica ls, trans
-porta tion, wood , l ab our, e quipment and othor inputs
requi-red for t he devel opment of t ho pul p and paper i n duotry .
e) A brief asse s smen t of the present c>,nd f uture dome s tic · and
export ma r ket s f or pulp a nd po,per produ cts , including paper
boa.rd and bag container's , as related. to the deve lopment of
the I ndonesian pulp a nd paper industry.
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A brie f assessment •••.
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fl brief a.sseGsrnent of ex.isti11g . lo:;c-i:l{'; !.'e.ct ice s a:nd pulpQセ Qゥ ャ ャ@ operations for tho pnr11ose_ of provi clin,..,. gniclclines
for tbo integrati on o · these ·oper :?.t:i. oni:; into the overall
developmen t pl<l:n .
g) Submission of an assem:;rncnt of prese 1.t r;ov0rnment :policies re1atin;:; to for· st in1lustrie:::; dovelo_ r:1ont 1 p ant loc::i,tionG,
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di vor sifi cmtirn1, s pecia.li ::.ation , t ariffs , taxes , suboid.ieG,
l icencec, private and r,ovornm0nt o«mershiyi and. foreif91 in-.vei.::tment •
. h ) A a sBecsment of opportmli.ties for the intee;ra.tion of pulp
ancl paper plants 1·ri th other fores t i nc'.u r;tries ancl an
est:i.-ma:h on of t he amount and cos ts of b y - . roducts a:vailable
for the manufacture o:f pul p and paper .
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Cn t he ba;.:;is of pr elimina ry tochnicC1l and. economic f easi-bili ty t tdi es s ubrnissi on of rccommenda.t ions on 1. a prelimin;:i,:r J p.:>.pe-c- m:i.1 1 development plan ;
2 . s i?:C , type 1 capac ity and. locat ion of poten t ial pulp and
paper mi lls ranked in order of pr i ority for de velopment ;
3.
a, t i me -s c hedule for the i mplementat i on of t he develop-4 .
addi ti on<:tl studi es , sm-vcys a d t 0st8 that may 1Jerequ-ired before irnplcmentint;: the plan .
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On the 1)asis of costs- benefit studi es of c.l term1ti v e s ,using- present worth •••••
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an'd ' rate of retlll'n t e stq,bli shment of .
the
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net oenefits to Indonesia.
of sketch' plans, preliminary flow
for the proposed mills.
itemized estimate -6f engineering and con-·
The 」セウエ@ estimate will be broken down
to
costs and ,probable sources of construction
equip-materials, process equipment, engineering
person-,,
labour and supervision. For"','materials
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of Canadian -origin the consultant
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of Canadian content .
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of annual . amortization, operat
costs with breakdown of 'major cost
Submiss"ion .1of a time schedule f or
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engineering' design' !:,
construction.
Submission of a recommended plan for phasing the
construe-tion of the propom=id mills toge ther with an ·estima te of
expenditures over· the cons truct ion period.
""-assensment of the availability and capa.bili t y of local
· ' cons truction labour, cス[ャ セ ゥョ ・ ・イゥョァ@ an<l
supervi-sory personnel
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-sory })ersonnel .
An assessment of the ·109.al availability of facilities and ·
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serviceo required for construction such as construction
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and ma. teria ls, power an
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uater supply, tran'sport. h3.ndl ing equipment, port f a cilities and storae;e andAn estimate of a dmini s tration and stc:fffing requirements
prop osed mills ancl an a s sessment of the
availabi-of ·t.ho local labour mf.1rlrnt to meet
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requ1rernenu s•
S1'ib mission of a r e commended pla n for tra inin5
administra-tive, · operatine and maintena nce personnel .
Submir:1sion , in a form r:mi table for later s ubmission to'
in-ternational financing a eencics , of a compre hensive report,
which w\}l i nclude the' results of t he s t u dy ,
recommend.a-tions, a n indication of project viability and sufficient
supporting cla to.. to refute or support thfl implementation of
· the proposed mills .
, The Government of Canada 1·!ill
a) Provicl e a n amotmt not exceeding :$ 100,000 (Canadian) to be
used to pay for the servi ces of t he Canadian con sultant
t eam to un dertake •••
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-, team to i.mderta _ce t he stuc\y as outlined above . I n addit ion
this amount will )e uf:.:ed, to cover the l oca.1 cos t s of
prov-id.inc hotel a ccommoda.tion for the mer:1hers of the_ consultmg ,.
team during the period of time they are in DjoJ.rarta for
the purpose of ca rryin e; out the aforementioned stud,y . \'Jll.en adequa.te gues·l;- house a ccommodation clliring field visits i s
not availa1)le, local hotel ac c omrnod.at'ion will be provi ded
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'under the Cana dian c ontribution . 'J.1l1e Cana.cli a n contribution
キセャャ@ .::i,lso be used to cover tho costs of travel by the n1ost
suitable means between Djakarta and the field ウゥエ・{セL@ as
,, required for successful comp letion of the s tud,_y .
Provi:i.cle to the Government of I ndonesia a narrative -report
on t he pr ogress of t he project e very two months, t-1Hh the
finnl compre hensive rep ort at the conclusion of the ー イッェ・」エセ@
c) · On 」 ッョ」ャセQゥッョ@ of 1the project , tra nsfer to the Government
of· Indonesia. any m::i.terials or equipment pur chased for the
project out of either Canadian 01· Indonesian . :fv.ncls .
11he Government of Inclonesia will :
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Appoint Enc;l iffrtspeal':in[; counterp;;:i.rt pc1· so1me l asappropri-a te , includi nr: a. proje ct direct or, Nho uil1 comml t with the Canadian r roj e ct tea n l e2.cl0r on セ セQQ@ matter s イ・ャセZゥNエ・」ャ@ to
the ウオ」 」・ウイ セヲオャ@ comple tion of the ln'ojoct ets previous ly
clescri becl
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-inter-depar.tmental _steerin g committee to give
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the consul tan ts in keeping . with the
of reference and to advise. the project director.
of the following local support and ,
assistance
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guest-house ac commod".l.tion when n vP-ilable during ·
fielcl vi s its required for the studies;
fu:c rdshed office space, wi th t,Y:peton·iters and
of-ca.lculat orsi
staff -for the C;;madian consul ting
a.c required;
Ni th driver, for _local transportat ion both _in ·'
and on the fie+
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sites when requ:ired a.s partand expeditious transshipment
Customs, ·without - co s t to the Government
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or the .Canadian consulta nts for. imp ort, cus toms ai{cl
·taxes of all material and equipment required
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. project. This provision will cover the bona fide per
effects of a.11 Canadian personnel eml_)loyed
by
theconsul-Exe.mpt the Canadian consultant firm and セ エウ@ Ca nadian personnel · I "
-resident and local ta!lces, a nd rf'rom the G セ・」・ウウゥ@ ty of
income tax returns., on payments made out of the Canadian
contribution to the
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con t ri n 1ti on t o t h e pr o j e c t o..nd. or i n r,: cme ea r :'1ed ou ts-" de ofI ndoncrnia .
c) Kee p t h e Canadian c on su l t imt f irm a.nd i t;:; ᄋ セ エョ 。 、 ゥ ZZ ュ@ pers on e el inf' or mec.l of t he lo c'.1.l lc .. 1is and. r e .zul a t ;i. on c Hh i ch rna.y a :ffoct the ir wor : .
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Imlcrnnif.y ·Ji thout co st to the Cover rnent of C:J. ir:,cla aml s a veI
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harml osrj t he C.:i. 1a d:i.rm consulta n t f ir111,J..nd. tho C::i..nach a n per
sen-1101 f rom ancl o. ;:i.i n st all cla. i t:1s , J. ofm es , <1on:i.::;e s , COf..: tG , a c -:
tion.:::: ci r1d < t h •.:;r pr ocee1J. · n c:r.: rn::i,cle , s u s t ai11e '1 「イ ッオ セ [ィエ@ or· pr
o-secutc d in a; ;;r .an nor 1x :.i":cd u pon, occa si onocl lJjT or attrilmt
-f rom a.ny act occur r :i.n ..r; dlL-r:i.n g t he perfor nnn ce or t he . .i:urR_or
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able -to e,ny i nj ury 1 i nfr in.,e rr:e nt 1 、N。 イ ゥ 。 ・ セセ@ r del.l.th 。 イ ゥウ ゥョ ・ セ@
ted perf or mmi co of the i r J._ lm cti on s pu.rs1 an:t: ··o the a c rc enent
b e ·b1c en t_1c 」ッ ョN セ オャ エ ュ イエ@ f i r . a.nd the g ッ カ 」イ セQュ ッ ョ エ@ of Ca na.cm .
This pr ovi.!ti on shall not Z」・ ャ ゥ ・キセ@ 。 N ゥセ イ@ pers on fr om lia bil it;{
for an;.r cr i mi rL1l o f r 8.uduJ. c:i1 t a c t .
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Provide ,as
promptJ y 2.s ー ッウイセ ゥィj・ Z@i)
All p err:1it:=; , li ッ ョ セ j 」ウ@ c:.1d other doc1mr::11ti=i ne ce c s ::i.r y to E=.mab le Canadii1n J. e r r:: onn c l to c a rry 01 t i;l o ir .re Hpe c t i ve r e ::J-ponsib il.it i c s in I i d.on es i a ;
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a.ny of t he r.ri:J.t er i als , e quirmen t 1 c f fe c tn, ( i n c l ud i n c セ [ ・ イウッ ョ 。ャ@
・ ヲ ヲ ・」エセ [ I@ H}1i cll u.r e t h e 1)r o e r ··r of t ' te ·c:mad:i."l.n ッ ッ イキ オ ャエ セセョ エ@ o .
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h is per " on.ne J. .
h) Prov· u.e a.cce ::::c to th ose ;:i2.rts of I :1done s i ::-, Y-erruiro d t o ena ble