REPUBLIK INDONESIA
MEMORANDUM OF UNDERSTANDING BETWEEN
THE MINISTRY OF INDUSTRY OF THE REPUBLIC OF INDONESIA A ND
THE MINISTRY OF CHEMICAL AND FERTILIZERS OF THE REPUBLIC OF INDIA FOR
CO-OPERATION IN THE A REA OF UREA MANUFACTURING
This Memorandum of Understanding is entered into between the Ministry of Industry of the Republic of Indonesia and the Ministry of Chemical and Fertilizers of the Republic of India hereinafter referred to as the "Parties";
WHEREAS, the Ministry of Industry of the Republic of Indonesia has interest in co-operating with the Ministry of Chemical and Fertilizers of the Republic of India to develop the fertilizer industry in Indonesia and to produce Urea in Indonesia ;
WHEREAS, the Ministry of Chemical and Fertilizers of the Republic of India desires to co-operate with the Ministry of Industry of the Republic of Indonesia in the fertilizer sector for mutual benefit;
WHEREAS, the Parties desires to enter into arrangements to develop Urea manufacturing;
NOW, THEREFORE, it is hereby agreed as follows:
1. The Parties will cooperate to provide a strong impetus to mutually beneficial investment proposals according to studies of technical and economic feasibility of such proposals directly or through their designated agencies in fertilizer sector for developing fertilizer industry.
2. The Parties, either directly or through their designated agencies, will sign an Executive Agreement for producing Urea in Indonesia. The terms, obligations, quantities and prices will be mutually agreed by the Parties.
3. The Ministry of Industry of the Republic of Indonesia will provide the fertilizer producing company with Coal necessary for producing Urea taking into consideration the requested quantities and qualities at mutually agreed terms and conditions including price of Coal based on the international prices and the availability of deposits.
4. In accordance with the prevailing laws and regulations of their respective countries, the Parties and their designated agencies and companies will enter into negotiations to study and complete, amongst other things but not limited to:
a) A detailed techno-economic feasibility study for setting up Urea plant in Indonesia;
