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MEMORANDUM OF UNDERSTANDING

THE GOVERNMENT OF nIB REPUBLIC OF INDONESIA

THE GOVERNMENT OF CANADA

AIR CQ.1MUNICATIONS ADVISORY TEAM

ME10RANDUM OF UNDERSTANDING
BE'IWEEN '!HE GOV.IBNMENT OF THE REPUBUC OF INJJClILSIA
AND THE GOVERNMENT OF CANA:)A

Air Communications Advisory Team

The Government of the Republic of Indonesia and the
Government of Canada, desiring to record an understanding concerning
the provision of technical assistance to the Directorate-General of
Air Communications of the Department of Communications in Indonesia,
have agreed as follows:
Article I
The project shall be known as the Air Commmications Advisory

Team and is being undertaken in Indonesia in conjunction with the
Civil Aviation Sectoral Study.
The project shall be undertaken with a view to advising the
Directorate-General of Air Col!lllunications on such immediate and nearterm operations as the following:

a) the development of a rational

and realistic government policy with respect to airlines; b) methods
of preparing and assigning priorities to funding requests; c) the
improvement of connnunication between various government groups
involved in civil aviation; d) the upgrading of staff capabilities
and improvement of personnel morale; e) the reporting and maintaining
of data relative to civil aviation.
Article II
As part of its contribution under its aid programme to
Indonesia, the Government of Canada,

ｴｨｲｯｵｾ＠

the Canadian International

Developnent Agency, shall provide an amount sufficient to pay for the
services of a team of Canadian experts which will serve in an advisory

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capacity as outlined above.

The Canadian contribution shall also

be used to cover the cost of local support as outlined in Section 3
of the Annex hereto.
Article III
The Government of the Republic of Indonesia · shall bear the
cost of such administrative assistance and local support as detailed in
Section 4 of the Annex hereto.
Article IV
The implementation of the project will be in accordance with

the description in the Annex hereto.

It is estimated that the team will

be attached to the Directorate-General of Air COJ!Dnunications for

an

initial period of twelve months, with the possibility of extension.
Article V
The Annex of the Memorandum may be amended from time to time
in accordance with the spirit of the Memorandum by letters exchanged

between the Government of Canada and the Government of the Republic of
Indonesia.
In Witness Whereof the Undersigned, Being Duly Authorized By
Their Respective Governments, Have Signed This Memorandum Executed In

J:/a / .aA-k

Duplicate At

This

!7tN

Day Of

ｄ･ｰ｣ｩＮｲｾ＠

, 1972.
For the Government of

For the Government of

the Republic of Indonesia

Canada

Signed

Signed

.Soe,ion§ Soepa#to

\ i . T. Dehrorth

ｃｯｭｮｵｩ｣｡ｴｾ＠

Ambassador

ｓ･｣ｲｴｦｾｩＮｬ＠

ANNEX TO THE MEl-10RA.NDUM OF UNDERSTANDING

Between the Government of the Republic of Indonesia
And the Government of Canada

AIR CCJ.lMUNICATIONS ADVISORY TEAM

1.

Description of the Project
The project shall consist of the provision of a technical
assistance team to be attached to the Directorate-General of Air
Conmunications of the Indonesian Department of Connnunications for
the purpose of advising on such immediate and near-term operational
problems as the following:

the development of a rational and

r ealistic government policy with respect to airlines; improving
methods of preparing and assigning priorities to ftmding requests;
improving of communication between various government groups
involved in civil aviation; upgrading of staff capabilities and
improvement of personnel morale; improving procedures for reporting
and maintaining data relative to civil aviation.
The team shall consist of a full-time leader resident in
Djakarta for an initial period of twelve montlls subject to extension,
with several team members to be recruited on a short-tenn basis,

the number to be detennined by the team leader in the course of
the project.

The team as a whole shall have capabilities in the

areas of economics, ma.nagement,airline operations, government
organizaticn and aviation infrastructure.
The team shall co-ordinate its activities with those of
the Civil Aviation Sectoral Study team.

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2.

Scope of Work
The Government of Canada shall recruit Canadian experts
whose services, without limiting the generality of the foregoing,
shall include:

a)

Advice and a ssistance to the Directorate-General of Air
Communications in the preparation of funding requests for
equipnent and facilities which are being acquired under the
Five-Year Plan, and to further aid in the presentation of
these requests to BAPPENAS and (as required) to the World
Bank, the Asian Development Bank, and individual donor
countries.

This assistance will involve the preparation

of cost/benefit studies and other social/economic justifications
for individual requests, and must reconcile various requests
for manpower, navaids, communications, runways, and other
civil aviation facilities, in preparing a balanced funding
request based an the actual needs of the aviaticn infrastructure
and the amcunt of flUlding available.

Funding requests for

runway lengthening/strengthening should be among the first
items considered in this area;
b)

Advice and assistance to the Directorate-General of Air
Communications in the definition and implementation of a
raticnal and
airlines.

ｲ ｾ ｡ｬｩｳｴ｣＠

govenun.ent policy with r espect to

Considera tion of service patterns, aircraft types,

service frequencies and fare structures will be included in
this work element;
c)

Advice and assistance to the Directorate-General of Air
Communications in improving the level of technical and

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- 3 operational efficiency among such personnel as air traffic
controllers, airport operators, meteorologists, radio
operators, maintenance workers, etc., who are responsible
for the day-to-day functioning of the aviation infrastructure.
d)

Advice and assistance to the Director-General of Air
Communications in improving intra-governmental communication
and to improve data collection and publication, both with
respect to civil aviation.

3. Contribution of the Government of Canada
The Government of Canada shall:
a)

Provide an amount sufficient to pay for the services of the
team of Canadian experts to serve in an advisory capacity
as outlined above.

In addition, this amount will be used

to cover the cost of the following:
i)

Travel between Canada and Djakarta for the advisors
at the beginning and at the end of their assignments,
and for the dependents of advisors an assigrunent in
Indonesia for six months or more .

ii)

Normal hotel expenses including meals for the advisors
both for the period prior to occupying permanent
accommodation and for the period prior to departure

t

after leaving permanent accommodation.

This item

will cover dependents (i.e. wife and children under

18) of those advisors on assigrunent in Indonesia for
six months or more.
iii)

A monthly housing allowance not to exceed ten per cent
of the basic monthly salary to be used to cover the
cost of pennanent accorranodat ion for advisors on
assigrunent.
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•••• 0

- 4 b)

Provide to the Government of the Republic of Indonesia
a narrative report on the progress of the project every
three months, with the final comprehensive report to be
submitted at the conclusion of the assignment.

4. Contribution of the Government of the Republic of Indonesia
The Government of the Republic of Indonesia shall:
a)

Nominate an official of the Directorate-General of Air
Communications to work with and function as a full-time
counterpart to the team leader.

b)

Authorize the team leader to call upcn m.inisteries, departments
and other government or private agencies as may be required
in the course of his assignment.

c)

Grant the team leader access, if required, to the Minister
of Con:munications, although the leader shall report directly
to the Director-General of Air Communications.

d)

Provide and bear the cost of the foil owing local support
and administrative assistance:
i)

Suitable guest-house accornnodaticn for the advisors
but not for their dependents while travelling on
duties arising from their assignment in Indonesia;

ii)

Suitable fuznished office space with air-conditioning,
typewriters and office calculators, telephone, postal
and other facilities necessary to the carrying out of
the assignment;

iii)

English-speaking clerical and stenographic help for
the team as required;

iv)

For the advisors, but not for their depE11dents, suitable
rail, air or road transportation when travelling in
Indonesia on official duty;

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II

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- 5v)

For local transportation on official duty within
Djakarta, a vehicle with a driver.
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e)

Facilitate the clearance and trans-shipment thrcugti the
Indonesian Customs, with out cost to the Government of
Canada or the Canadian technical assistance team for import,

II

customs and other duties and taxes on all materials and
equipment required for the project in accordance with
Indonesian law and customs regulations for foreign experts.
This provision will cover the bona fide
ｰ･ｲｳｯｮ

ｾ ｬ＠

effects

of all Canadian personnel attached to the team and their
dependents .

Import, customs and other duties and taxes

shall be paid according to the applica ble Indonesian laws
and regulations if these effects are sold or otherwise
disposed of in Indonesia.
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f)

For the duration of this particular project cnly, release

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the Canadian technical assistance team and its dependents

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who do not have pennanent residence in Indonesia fran paying
all resident and local taxes, and from the necessity of filing

II

income tax returns, on payments made out of the Canadian
contribution to the project and/or income earned outside
of Indonesia.
g)

Keep the Canadian technical assistance team infonned of the

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local laws and regulations which may affect their work.
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h)

Provide as promptly as possible:
i)

All permits, licenses and other documents necessary to

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enable the Canadian personnel to carry out their respective
responsibilities in Indonesia;

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- 6ii)

All export and exit permits required for the return
of any of the materials, equipment, effects (including
personal effects) which are the property of the Canadian
personnel and their dependents, insofar as the abovementioned are not contrary to Indonesian law and
customs regulations.

i) Provide access (seeking prior approval from other Indonesian
Government authorities when necessary) to those parts of
Indonesia required to enable the Canadian personnel to
carry out their responsibilities.

5. Mutual Understanding
1.

It is mutually understood that an advisor is entitled to
four weeks leave per annum, which leave may be taken inside
or outside Indonesia in accordance with Canadian leave
regulations at a time or times to be arranged between the
advisor and the Indonesian authorities concerned.

2.

Advisors on assignment for less than six months in
connection with this project will not be accompanied by
their dependents except at the expense of the advisor
concerned.