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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE

GOVERNMENT

OF

CANADA

FOR THE
FORESTRY TECHNICAL STUDIES PROGRAMME

MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE

GOVERNMENT

OF

CANADA

FOR THE
FORESTRY TECHNICAL STUDIES PROGRAMME

The Government of the Republic of Indonesia and the Government
of Canada, wishing to cooperate in a Forestry Technical Studies Programme,
have agreed to the following:

ARTICLE I
Responsible Authorities
1.

The Government of the Republic of Indonesia designates the Directorate
General of Forestry of the Department of Agriculture (hereinafter
referred to as DGF) as the Agency responsible for the implementation

of its obligations under this Memorandum.

2.

The Government of Canada designates the Canadian International
Development Agency (hereinafter referred to as CIDA) as the Agency
responsible for the implementation of its obligations under this
Memorandum.

ARTICLE II
The Project
1.

The two parties to this Memorandum shall participate in the Forestry
Technical Studies Programme, hereinafter referred to as the Project.

- 2 -

2.

Objectives of the Project
The objectives of the Project are to develop the conceptual framework
for the designing, and also initiating on a pilot area, of a National
Forest Inventory at the reconnaissance level.

This will include,

inter alia, the selection of appropriate techniques and methodologies,
an assessment of the resources and facilities that will be needed by
Indonesia for the successful and timely completion of the Project
and also detailed terms of reference for any further technical cooperation between DGF and CIDA as necessary.

The purpose and outputs

expected of the Project are outlined in Annex "A'' of this Memorandum.

ARTICLE III
Plan of Operations
1.

The Government of the Republic of Indonesia and the Government of
Canada agree to complete this Memorandum within approximately three
years of the connnencement of the work by undertaking the Plan of
Operations as set out in Annex "A" which constitutes an integral
part of this Memorandum.
(a)

provide a detailed description of the Project and scope
of work;

(b)

This Plan of Operations shall:

and

state the obligations and responsibilities of the Government
of the Republic of Indonesia and the Government of Canada.

ARTICLE IV

Financing Contribution of the Government of the Republic of Indonesia
The Government of the Republic of Indonesia will bear the cost of providing
qualified counterpart personnel and the cost of the necessary administrative
assistance and local support as detailed in Annex "A".

- 3 -

Financing Contribution of the Government of Canada
The Government of Canada, through CIDA, will contribute an amount not
exceeding $600,000 (Canadian) to pay the cost of Canadian advisory
services, special forestry equipment and training, and will provide
such services as detailed in Annex "A".

ARTICLE V
Implement ation
The t wo Government s and their designat ed a gents shal l ensur e t hat t his
Memor andum i s ca rr i ed out with due dil igence and eff ic i ency and ea ch
s hall furnish the other all such information as shall be reasonably
requested.

ARTICLE VI
Communications
Any communications or documents given, made or sent by either Government
or their designated agents pursuant to this Memorandum or Annex hereto
shall be in writing and shall be deemed to have been duly given, made or
sent to the party to which it is addressed at the time of its delivery by
hand, mail, telex, cable or radiogram at its respective address, namely:
FOR INDONESIA
Mailing Address

Director of Forestry Planning
Directorate General of Forestry
Department of Agriculture
Jalan Ir. H. Juanda 100
Bogor,

Indonesia.

- 4 FOR CANADA
Mailing Address

The President
Canadian International Development Agency
200 Promenade du Portage
Hull, Quebec
Canada.

Cable Address

KlA OG4.

CIDA HULL

ARTICLE VII
Evaluation
Periodic evaluations of the Project will be carried out as agreed upon
by both Governments.

ARTICLE VIII
General Provisions

1.

This Memorandum shall become effective on the date of signature and
shall expire upon completion of the Project or on any date mutually
agreed upon by both Parties.

It supersedes any previous arrangement

concerning this Project made between the Government of the Republic
of Indonesia and the Government of Canada.
2.

This Memorandum does not constitute an international treaty.

It is

intended only to set out the administrative responsibilities of the
two Governments in relation to the implementation of this Project
within the framework of technical cooperation between the two
countries.

3.

This Memorandum may be amended at any time with the mutual consent
of the two Parties by an Exchange of Letters.

- 5 -

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

SIGNED in Jakarta on

FOR
THE

ｲｾｏｬｯｺｚＬＷＮｙｩｮ＠

ｔｾ＠
GOVERNMENT OF
REluBLic oF INDONESIA

Signed

Soedarsono Hadisapoetro
Minister of Agriculture

duplicate.

FOR THE GOVERNMENT OF
CANADA

Signed
Michel Dupuy
President of the Canadian
International Development Agency

ANNEX "A"
PLAN OF OPERATIONS

1.0

Description of the Project
Indonesia has 122 million hectares of forest land, the largest
forest cover in South-East Asia.

After petroleum, timber now

comes second on the list of the most important export commodities
of Indonesia.

Therefore, forest resource valuation is an

essential part of the overall planning of natural resource
inventory.
In recent years, the forestry sector in Indonesia has witnessed a
tremendous expansion in log production.
at exponential rates.

Export values have grown

The greatest expansion in log operation

has taken place in East Kalimantan and other certain areas outside
Java.
The most immediate needs then are in the field of forest inventory
and conservation because of the danger of overcommitment of
Indonesia's forest resources.
Based on these considerations, Indonesia urgently requires a
National Reconnaissance Forest Inventory to assess its forest
resource base and plan for the optimal use of its territory.

In

this respect, this technical assistance undertaking comprises the
provision of advisory services, special forestry equipment and
training, as required, to assist in the development of a National
Inventory Programme at the reconnaissance level of the forestry
resources of Indonesia.

- 2 2.0

Scope of Project
2.1 Project Purpose
This Project is intended to:
1) Develop the conceptual framework for the designing of
a National Forest Inventory at the reconnaissance
level of the forestry resources of Indonesia;
2) Provide relevant information on areas to be more
intensively inventoried and guidance for a more
rational resource allocation, management and use;
3) Improve the capabilities of the Indonesian foresters
in the designing, and also initiating on a pilot area,
of a National Reconnaissance Forest Inventory;

and

4) Provide DGF with the necessary tools and techniques
to execute and utilize a National Reconnaissance
Forest Inventory .

2.2 Outputs
The Project's expected outputs are the following:
1) Standardized reconnaissance forest inventory techniques
developed and field tested using available data;
2) Standardized (relevant to 1) forest mapping programmes
initiated and completed for the pilot area;
3) A representative pilot area inventoried;
4) Indonesian counterparts trained in relevant inventory
office and field techniques;

and

5) Short-term training and fellowships as appropriate
completed in related fields.

- 3 -

3.0

The terms of reference for the Canadian experts are as follows.
3.1 The Team Leader shall:
1) In the context of the National Reconnaissance Forest Inventory,
review the existing state of forest inventory practices and
programmes being undertaken by public and private organizations ;
2) Assess available inventory information and its potential usefulness to supplement a National Reconnaissance Forest
Inventory;
3) Develop information on the purpose and uses of a National
Reconnaissance Inventory;
4) Participate with local authorities and other interested parties
in the identification of possible representative pilot areas
and make recommendations on the most suitable;
5) Make recommendations on appropriate inventory specifications,
including forest and land classifications, inventory design,
measurements and compilation procedure, equipment, logistics
and reporting requirements;
6) Assist in the assessment of aerial photography and base map
requirements and assembling available date for the pilot area;
7) Determine the manpower facilities and training required to
complete the inventory from the pilot stage through to a fullscale operation;
8) Provide a realistic estimate of the time and budget required
for the completion of the reconnaissance inventory;
9) Identify counterparts required for the Project on a full-time
basis;

- 4 10) Assess and identify the needs and terms of reference for
the additional short and long-term Canadian expertise
required to participate in the execution of the pilot
reconnaissance inventory;
11) Provide to CIDA recommendations for the recruitment and
administration of the Canadian experts;
12) Participate with all other parties involved in the field
of forest inventory in the establishment of a national
strategy of forest inventories, forest policies and other
forestry related matters when requested by the Directorate
General of Forestry;
13) Identify candidates for the short-term training and
fellowship component of the Project;
14) Prepare the detailed specifications for the special
forestry equipment to be used for the Project;

and

15) Undertake all other relevant tasks necessary to achieve
the purpose and outputs of the Project.

3.2 Other Canadian Experts
The terms of reference for the other Canadian experts required will
be prepared by the Canadian Team Leader, in consultation with
his Indonesian counterpart, in accordance with Article 3.0,
Section 3.1 10) above.

- 5 -

4.0

Conduct of Work
4.1 The work will be conducted as follows:
1)

All technical and administration services of the experts
will be carried out in Indonesia;

2)

The experts will provide quarterly progress reports and
a final report to the Government of the Republic of Indonesia
through CIDA;

3)

and

CIDA will participate in briefings and/or discussions as
appropriate.

5.0

Responsibility and Obligations of the Government of Canada
5.1 The Government of Canada shall, through CIDA, provide:
1)

Funds tha t will be used to pay the cost of fees,
salaries and other emoluments, return travel costs
and other appropriate expenses of the Canadian Team
Leader and other personnel involved in the Project;

2)

Funds for the cost of accommodation for experts
assigned to the Project for a period of six months or
less;

3)

Other miscellaneous expenses incurred in relation to
the Project outside of Indonesia;

4)

The supplies, special forestry equipment (excluding
vehicles) and materials which are essentially required
to implement the Project and which may be required to
be imported into Indonesia;

S)

and

Funds for the short-term training and fellowship component
of the Project.

- 6 -

6.0

Responsibilities and Obligations of the Government of the Republic
of Indonesia
6.1

The Government of Indonesia shall, through designated authorities,
in accordance with the existing laws and regulations of the
Republic of Indonesia:
1) Provide all equipment, materials, supplies not provided under
5.1 4), together with services and labour required to complete
the Project;
2) Provide qualified Indonesian counterpart personnel for the
Canadian experts and such other support staff as is required
to successfully implement the Project and in particular, the
Government of the Republic of Indonesia will appoint a
qualified member of DGF staff to be responsible full-time
for working with the Canadian experts.
3) Provide accommodation and transportation for Canadian experts
assigned to the Project in Indonesia as follows:
i)

accommodation for experts assigned to the Project for
a period of greater than six months;

ii)

out-of-station allowances while travelling on duties
in Indonesia arising out of their assignment in
accordance with Indonesian regulations;

iii) local air or surface transportation for the experts, but
not dependents, while travelling within Indonesia on
official project business;
iv)

transportation with drivers while on official project
business;

v)

provide and bear the cost of transportation for the
professional equipment and personal effects between the
nearest point of entry and departure to the duty station
in Indonesia.

- 7 4)

Provide suitable office accommodation in Bogor and
services including, as appropriate, office space and
furnishings (including typewriters and electric
calculators), clerical staff, typists, domestic
telephone and postal services, and other facilities
necessary in order that the Canadian advisers may
implement the Project effectively;

5)

Establish a counterpart fund to cover local costs of
the Canadian experts incurred in the execution of the
Project and payments from this fund will be made subject
to approval of the Government of the Republic of Indonesia;

6)

Provide exemption from Import, Customs and other duties
and taxes on:
i)

all professional and technical equipment required for
the use of Canadian personnel for their assignments
throughout the period of the Project;

ii)

and

personal and household effects of the Canadian personnel;
Import, Customs and other duties and taxes shall be paid
by the Canadian personnel in accordance with the laws
and regulations of the Government of the Republic of
Indonesia, if the effects mentioned above in 6 6) i)
and 6 6) ii) are sold;

7)

Release the Canadian experts who do not have permanent
residence in Indonesia, from payment of resident and local
taxes for the duration of this Project;

8)

Inform the Cana dian experts of all local laws and regula tions
which may affect their work;

- 8 -

9)

Indemnify without cost to the Government of Canada, and save
harmless the Canadian experts from and against all claims,
losses, damages, costs, actions and other proceedings made,
sustained, brought, or prosecuted in any manner based upon,
occasioned by or attributed to any injury, infringements,
damages or death arising from any action occuring during the
performance or the purported performance of their functions
pursuant to any agreement relating to the Memorandum between
the Canadian experts and the Government of Canada.

This

provision shall not relieve any person from liability for any
criminal, grossly negligent or fraudulent act;
10) Provide:
i)

all permits, licences and other documents necessary to
enable the Canadian experts to carry out their respective
responsibilities in Indonesia;

ii)

and

all export and exit permits required for the return to
Canada of any of the materials, equipment, effects
(including personal effects), which are the property of
the Canadian experts;

11) Provide reasonable access to those parts of Indonesia required
to enable the Canadian experts to carry out their responsibilities.

7.0

Project Implementation
7.1 The Project will start with CIDA contracting with the Canadian
Team Leader after his acceptance by the Government of Indonesia.