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-·· 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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GV"Utt1Ffi' NN m ·c z セ セM MM M _gffJセ@ w、セヲャp ィGゥ G エョM@ . . - !li'Jll • . .

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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:t

refer-./:'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 .

v

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

ャQ ゥウ@ MセlMM

fuy

ッヲ セG@

1971 .

,-·Signed Signed

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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 ... '

' ;. セ@

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

0

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

ᄋ セ@

the developr.ient of the Indones i a n pulp an<l paper industry , .

,.

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.

f)

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 pulp

Q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,

'1!

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 .

i)

Cn t he ba;.:;is of pr elimina ry tochnicC1l and. economic f ea

si-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 deve

lop-4 .

addi ti on<:tl studi es , sm-vcys a d t 0st8 that may 1Je

requ-ired before irnplcmentint;: the plan .

j)

On the 1)asis of costs- benefit studi es of c.l term1ti v e s ,

using- present worth •••••

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;.. '. ,,

• • セ@ ' l セLQNセ@ ᄋᄋᄋセᄋセ ᄋ@

an'd ' rate of retlll'n t e stq,bli shment of .

the

N⦅セ@ ..: .... ,, ... ,1,: セ@ •t ;·· ; ',/ •

セョ、@ location of ·the .proposed mills that l-nll ·

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

..

engineering' design

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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

...

and ma. teria ls, power an

ct

uater supply, tran'sport. h3.ndl ing equipment, port f a cilities and storae;e and

An 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

.

'

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 :

a )

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Appoint Enc;l iffrtspeal':in[; counterp;;:i.rt pc1· so1me l as

appropri-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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- - · - - - - --· ·- - - · -

MMMMMM

G セ@

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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

I

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+

a,

sites when requ:ired a.s part

and 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

セM

. project. This provision will cover the bona fide per

effects of a.11 Canadian personnel eml_)loyed

by

the

consul-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 of

I 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 : .

f )

Imlcrnnif.y ·Ji thout co st to the Cover rnent of C:J. ir:,cla aml s a ve

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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 .

g)

Provide ,

as

promptJ y 2.s ー ッウイセ ゥィj・ Z@

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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 ;

1• i' ) . セ@ セQQ@ " '\" ) Q"' "l セ ョイ A@ c v·i + p (\Y•" l• t " イ Lセ イ ᄋ@ 11• r or1 B⦅ Qセ Hャ@.. Y' + \,·(e ク セ ・ ᄋ ᄋ ヲ[オ イGBN@ q ゥ⦅ セ@ . . i"i. セ M M セ [@ . ' ""-'-'- ·--- - .. セセ ゥNQ@ ᄋ セ@ - セ@ - - - " - "

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

Referensi

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Het Hna ginO' alweder iD Comité Gl'neranl over ete motie ,,~n de~ beer Kinnear omdetoelage T;r twee muaden geprorogl'8rd, d....rbij bereid .u Olll zoo lang te blijven, ell atelde ,oor