1 I l
.'' I '
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE REPUBLIC OF ITALY
CONCERNING
PROJECT WOOD WASTE ENERGY DEVELOPMENT IN INDONESIA
The Government of the Republic of Indonesia and the
Government of the Republic of Italy;
Within the framework of the Agreement on Scientific and Tehnical Cooperation of November 24 1972;
Wishing to cooperate on the Project Wood Waste Energy Development in Indonesia;
HAVE AGREED AS FOLLOWS:
ARTICLE I
1. The Government of the Republic of Indonesia designates
the Directorate General of Forest Utilization,
Departement of Forestry, hereinafter referred to as
"DGFU", as the Agency responsible for the
implementation of its obligations under this
MEMORANDUM.
2. The Government of the Republic of Italy designates the
company S.E.S.-Sistemi Energia Sviluppo Spa . Italy,
hereinafter referred to as "SES", as the
Organization responsible for the implementation of its
ARTICLE I I
1. The two Governments shall cooperate in the Wood Waste
Energy Development Project in Indonesia, hereinafter referred to as •THE PROJECT".
2. The objectives of THE PROJECT are to identify wood
waste potential for possible application in energy
development PROGRAMMES in the islands of Java and
Surnatera, to demonstrate wood waste processing for
energy source through the implementation of pilot
plants and to prepare recommendations for further development PROGRAMMES.
3. The Project is planned to be implemented in a timespan
lasting about eighteen months, starting from the date
of issue of the approval documents both by the
Governments of Indonesia and Italy, and the date of
validity of the present MEMORANDUM OF UNDERSTANDING,
whichever comes later. A detailed description of the
Project is set forth in Annex I (Plan of Operational),
Annex II (Agreement between DGFU and SES) and Annex
III (Agreement between the Italian Dipartimento per
la Cooperazione allo Sviluppo del Ministero per gli
Affari Esteri and SES, which do not constitute an integral part of this MEMORANDUM).
ARTICLE I I I
The Government of the Republic of Italy in accordance
with the prevailing laws and regulations shall make the following contributions :
-availability of qualified Italian experts.
- supply of relevant equipment and instrumentation
- provide training and expenses
technicians.
in Italy, including overseas flight
living expenses for Indonesian
- bear the expenses of overseas and domestic air
travelling by the Italian experts.
- bear the cost of transportation and insurance of the
equipment and instrumentation up to their arrival
points in Indonesia.
- provide technical assistance to the implementation and
starting-up of the pilot plants.
ARTICLE IV
The Government of the Republic of Indonesia in accordance
with the prevailling laws and regulations, shall make the
following contributions :
- availability of qualified Indonesian experts.
- provide transportation within Indonesia for Italian and
Indonesian staff, as needed by the implementation of
the PROJECT .
- provide the timely examination and approval of the
various progress reports, and forward them to the
Italian Embassy in Jakarta.
provide technical and administrative services to SES
professional staff as needed by the implementation of
the PROJECT .
- provide office space and secretarial facilities for the
Italian staff, as needed by the implementation of the
PROJECT .
- provide unobstructed land and access road for the
implementation of the PROJECT .
- bear the operation and maintenance cost of equipment
and instrumentation and other necessary rraterials,
other than those provided by the Government of the
- bear the cost and take responsibility for the
Indonesian custom clearance, handling safe storing and
related security arrangements of the project equipment
supplied by the Italian side, from their delivery point
on the dockside in an Indonesian port.
- assure free admittance and visas to the Italian staff
as well as utilization of the project equipment and
materials in Indonesia.
- bear the cost of unloading, inland transportation,
installation and storage of the project equipments and
instruments, in the selected project sites.
ARTICLE V
The provisions of Article 5 of the Agreement of November 24, 1972 shall be applicable to the Italian experts
within the framework of this MEMORANDUM .
In any case, the Government of the Republic of Indonesia
will assure to the Italian experts working in Indonesia
for the execution of the Project the facilities and
privileges not less favourable than those granted to
experts from third countries working and operating in
technical cooperation programs.
ARTICLE VI
The Government of the Republic of Indonesia shall hold
the Italian experts working in Indonesia on the Project
subject to this MEMORANDUM harmless against any
liability in case of damages, caused by the Italian
experts in the course of their duties in Indonesia unless
such damage has arisen from wilful misconduct or criminal
ARTICLE VII
1. The provision of Article 9 of the Agreement of
November 24, 1972 shall be applicable to the
importation of the equipment and instruments supplied
by the Government of the Republic of Italy within the
scope of this MEMORANDUM.
2. All equipment and instrumentation shall become
property of the Government of the Republic of
Indonesia at the moment of their delivery on the
territory of the Republic of Indonesia, dockside at
the selected Indonesian port or ports.
ARTICLE VIII
The two Governments
organizations (DGFU
and
and
their
SES)
designated
shall ensure
implementing
that this
MEMORANDUM is carried out with
efficiency and each shall furnish
information that may be considered
implementation of THE PROJECT.
ARTICLE IX
due diligence
the other with
necessary for and
all
the
The Government of the Republic of Indonesia and the
Government of the Republic of Italy, if necessary, shall
review the scope and objectives of THE PROJECT and
discuss and solve possible problems that may occur during
the implementation of THE PROJECT.
ARTICLE X
l . This MEMORANDUM shall enter into force on the date
of signature and shall expire upon completion of THE
PROJECT or on any date mutually agreed upon by the
2. This MEMORANDUM is intended to set out the
Administrative responsibilities of the two Governments
in relation to the implementation of this PROJECT
within the framework of the above mentioned technical
cooperation agreement between the two countries.
3. This MEMORANDUM may be amended at any time with the
mutual consent of both Governments by an Exchange of Letters.
4. Any dispute arising out of the interpretation or
implementation of this MEMORANDUM shall be settled
amicably by consultation or negotiation between the two Governments.
In witness whereof, the undersigned, have signed this MEMORANDUM of UNDERSTANDING .
Signed in Jakarta on Jul y 2nd, 1986 in duplicate in the English Language.
FOR THE GOVERNMENT OF
THE REPUBLIC OF INDONESIA
Signed
SUMARSONO MARTOSOEDIGDO.
DIRECTOR GENERAL OF FOREST
UTI LIZATION.
FOR THE GOVERNMENT OF
THE REPUBLIC OF ITALY
Signed
GIORGIO VECCHI
AMBASSADOR OF ITALY
