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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF NEW ZEALAND
AND
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
CONCERNING
A PILOT PROJECT TO IMPROVE THE PERFORMANCE
OF THE BALI CATTLE BREED ON THE ISLANDS OF BALI AND SUMBAWA

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1.

This Memorandum of Understanding sets forth the

understanding of the Government of New Zealand and the
Government of the Republic of Indonesia concerning New
Zealand ' s contributions to and responsibilit i es in a Pilot
Project (hereinafter referred to as "the project " ) of the
Directorate General of Anima l Husbandry of the Government
of Indonesia to improve the performance of the Bali cattle
breed on the Islands of Bali and Sumbawa by selection

within the breed .
2.

The purpose of the project is to develop an appropriate

long- term breeding strategy for Bal i cattle incorporating
the establishment of an appropriate performance recording
scheme , on the basis of which superior cattle can be
identified and selected and their superior genetic qualities
extended to the wider cattle population on the Islands of
Bali and Sumbawa and eventually throughout Indonesia .
3.

The project involves strengthening the breedi ng

component of the current Bali Cattle Improvement Programme
(hereinafter referred to as " the P3B programme " ) with the
addition of a more comprehensive performance recording scheme
and the development of a Breeding Centre at Pulukan on which
to run a breeding herd of selected Bali cows and facilities

tor a bull performance test in accordance with the strategy
outlined in the Bali Cattle Improvement Feasibility Study of
December 1981 .

. . .I I . . .

2

outline of the Project
4.

The project is planned to proceed in phases as

follows :
Phase One
(a)

The existing five extension and recording units
of the P3B programme will be strengthened with
the addition of extra personnel , cattle weighing

scales , and transport for technical staff .

(b)

The Central Project Office will be relocated to
more suitable premises , will be strengthened
with additional staff and will be equipped with
a micro - computer and computer programme software
designed in New Zeland . These developments are
intended to enable improved storing and retrieval
of cattle performance data and more comprehensive
analysis of the data .

(c)

The Central Project Office will receive additional
transport to facilitate communication with the
recording and extension units in the field .

(d)


Two new extension and recording units will be
established on the Island of Surnbawa .

phase Two
A Breeding Centre at Pulukan will be developed with
fences , water , yards and scales, stables , and other
appropriate buildings necessary to accommodate a
breeding herd of selected Bali cows and a number of
selected bulls to be performance tested , and staff to
manage and run the Centre.
Phase Three
Breeding cows will be selected and purchased according
to the programme design, from among the cattle セーNu。エゥッョ@
which has been organised by the Government of
Indonesia ' s Project Director in five field extension
and recording units.

. . .// .. .


3

A limited number of bulls will be introduced to
undergo appropriate performance , libido and progeny
(sire reference) tests , for the purpose of identifying
bulls of superior genetic merit, to be used primarily
in Indonesia ' s artificial breeding programme i for
natural mating within the project ' s cattle population i
and for wider use in the expansion of the Bali cattle
breed .
A parallel back-up scheme will be developed on the Island of
Sumbawa with a Breeding Centre at Anamina . The Anamina scheme
will be funded by the Government of the Republic of Indonesia .
Project Responsibilities
New Zealand Contribution
5.

The Government of New Zealand is prepared to extend

assistance and advice to the project over f ive financialyears,

commencing on 1 April 1982 , subject to annual appropriations
of the Parliament of New Zealand and , for the final two years,
to a review of the project in late 1984 .
6.

The assistance which the Government of New Zealand is

prepared to provide to the project for the first three years
1982/83 - 1984/85 is set out in Annex I to this Memorandum .
For the purpose of this assistance , the New Zealand Government
will allocate a sum of up to NZ $175,000 . The amount of the
contribution to be made by the Government of New Zealand for
the final two years will be determined, on consultation with
the Government of the Republic of Indonesia, after the review
of the project .
Indonesian Contribution
7.

The Government of the Republic of Indonesia will make


available the land, personnel and budget finance to enable
the i mplementation of the project as set out in Annex II to
this Memorandum.

. .. // . ..

4

Privileges and Exemptions
8.

(a)

The Government of the Republic of Indonesia , in
accordance with its laws and regulations at the
time of the signature of this Memorandum , will
exempt all New Zealand personnel visiting Indonesia
in connection with the project (her einafter in
this Memorandum referred to as "the New Zealand
advisers " )

(i)

from income tax and any other tax levied
by the Government of the Republic of
Indonesia in respect of project salaries ,
allowances , and payments and emoluments
associated with the project;

(ii)

from import , customs and other duties and
tax es on all professional and technical
equipment and spare parts including books
and manuals required for the successful
implementation of this proje c t ;

(iii) from payment of customs and all otherduties
on motor vehicles imported into Indonesia
for the benefit of the project .
(b)


In addition, the Government of the Republic of
Indonesia will
(i)

issue to the New Zealand advisers and their
dependants , free of charge and without
requiring security , the necessary visas as
well as work and residence permits ;

(ii)

waive all sales tax on project goods
purchased by the Government of New Zealand
in Indonesia .

(iii) waive all claims against the Government of
New Zealand and the New Zealand advisers

... I I · · ·


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arising from the acts or omissions of such
advisers while performing their dut i es ;



(iv)

indemnify the Government of New Zealand and
its advisers and hold them exempt from
claims and liabilities , with respect to
(a)

injury or death of any person aris i ng
from the project work ;

(b)


injury or death of any person during
the New Zealand advisers ' performance
of their duties;

(c)

property damage attributable to the
performance of their duties; and

(d)

any other losses resulting from the
acts or omissions of New Zealand
advisers while performing their duties.

This provision will not relieve the New
Zealand advisers from liability for criminal ,
grossly negligent or fraudulent acts .
The Government of New Zealand will be given
full opportunity to consult with the
Indonesian authorities at the earliest
possible time after any such act is
allegedly committed .
9.
New Zealand advisers , together with their dependants,
will while in Indonesia :
(a)

not be subjected to national service obligations
or other mili tary obligations ;

(b)

have the privilege of bri ngi ng foreign currency
into Indonesia and of remitting those amounts to
New Zealand together with such amounts as may be
earned in Indonesia pursuant to their assignment ;

. . . /I . ..

6

(c)

be given protection of both person and property
and the same repatriation facilities in time of
national

セ ッイ@

international crisis as are provided

for other non - Indonesian nationals serving in
Indonesia under similar terms . .
10 .

Without prejudice to the foregoing provisions, the

Government of the Republic of Indonesia will accord the New
Zealand advisers and their dependants no lesser benefits,
facilities, privileges and exemptions than those accorded to
other non - Indonesian nationals working in Indonesia under the
Colombo Plan or under any bilateral scheme for technical cooperation , it being understood between the two parties that
the provisions of this Memorandum will not be diminished by
any other bilateral technical cooperation agreement which may
be or may have been entered into by the Government of the
Republic of Indonesia.
11 .

The provisions of this Memorandum of Understanding may

be amended by the consent expressed in writing of both parties .
12 .

This Memorandum will be. deemed to have taken effect

upon the commencement of the project.

IN WITNESS WHEREOF, the Undersigned , on behalf of their
respective Governments , have signed this Memorandum .

SIGNED in Jakarta on

· FOR THE GOVERNMENT OF
NEW

ZEALAND

Signed

in duplicate .

9th day of November , 1983

FOR THE GOVERNMENT OF THE
REPUBLIC OF
indoesセ@

Signed

MICHAEL POWLES

DkMAN DANUWIDJAJA

AMBASSADOR

DIRECTOR GENERAL FOR
ANIMAL HUSBANDRY

ANNEX

I

NEW ZEALAND ASSISTANCE TO BALI CATTLE
iセwrovemnt@

SCHEME

1982/83 - 1984/85
1982/83
- Visit to New Zealand by Dr Pane (three weeks July 1982).
- Visit to Indonesia by Mr P . Packard (six weeks October/
November 1982) .
- Visit to Indonesia by a computer consultant to devise a
computer programme for the cattle recording system
(four weeks October/November 1982) .
- Computer programme design in New Zealand .
- Equipment
2 four wheel drive vehicles
1 micro- c omputer and associated equipment ,
including monitor and printer
6 sets of cattle weighing scales
5 motor cycles for recording units
Files

1983/84
- Mr Packard to visit Indonesia (three weeks) .
-Micro computer training in New Zealand for project ' s
data analyst (six months) .

1984/85
- Mr Packard to visit Indonesia (three weeks) accompanied
by New Zealand geneticist .
- Six motorcycles for recording units .
- Visit by Programme Review Team .

ANNEX

II

CONTRIBUTION OF THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
TO BALI CATTLE IMPROVEMENT PROJECT
The Government of the Republic of Indonesia will
(a)

Provide 150 ha of land at Pulukan, District of
aembrana, Bali ; and 500 ha of land at Dompu ,
Surnbawa, West Nusa Tenggara.

(b)

Undertake site preparation, works and construction
of the Performance Test Unit and Bali Cattle
Breeding Centre . This involves provision of fencing;
water supply; cattle yards; cattle stalls;
construction of housing of labourers; shed and
office/workshop; pasture and legume development .

(c)

Arrange for the transport of equipment and
supplies from the port of entry (Jakarta or
Denpasar) to the project site.

(d)

Provide credit to participating farmers for the
purchasing of cattle and together with adequate
funds for purchasing bull calves and cows
proposed for performance testing and for the
Breeding Centre.

(e)

Ensure that an adequate number of appropriately
trained personnel are assigned to the project.