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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF CANADA
FOR THE
REGIONAL DEVELOPMENT IMPLEMENTATION ADVISERS PROJECT

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:


The Government of the Republic of Indonesia and the Government
of Canada, wishing to cooperate in a Regional Development Implementation Advisers Project, have agreed to the following :

ARTICLE I

1.

2.

Responsible Authorities
The Government of the Republic of Indonesia designates the
Directorate General of CIPTA KARYA of the Department of
Public works (hereinafter referred to as CIPTA KARYA) as
the Agency responsible for the implementation of its obli gations under this Memorandum.
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

1.


2.



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The Project
The two parties to this Memorandum shall cooperate in the
Regional Development Implementation Advisers Project, hereinafter referred to as "the Project" as described in Annex A
of this Memorandum.
Objectives of the Project
The primary objective of this Project is to strengthen the
capacity of the Government of Indonesia to plan and implement ゥョイpァセN@
rP.ginnal development programs and projects,

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based upon regional development studies. This will be accomplished through the following sub-objectives :
a.

To develop a methodology for the comprehensive integrated screening of regional development programs and projects, at the national, regional and local level ;

b.

To develop priority programs and project proposals arising primarily out of the Sulawesi Regional Development
Study, and, as requested by the Government of Indonesia,
also out of the East Indonesia Regional Development
Study, in collaboration with concerned Departments,
BAPPENAS, and other foreign cooperating countries and
agencies to the point where these proposals can be implemented;

c.

To collaborate with BAPPENAS and the respective BAPPEDAS
in the promotion of these projects and programs to
appropriate implementing agencies and foreign cooperating countries;


d.

To prepare documentation on certain of these proposals
in an appropriate form to enable financial consideration from these agencies and foreign cooperating countries.

ARTICLE III
Execution of the Project
1.

The Government of the Republic of Indonesia and the Government of Canada agree to complete the Project within approximately two years of the commencement of the work as set
out in Annexes A, B, and C which constitute an integral part
of this Memorandum. These Annexes provide :
a.

a detailed description of the Project and scope of

work; and
b.

the obligations and responsibilities of the Government

of the Republic of Indonesia and the Government of
Canada.

- 3 Plan of Operations

2.

CIDA shall submit to CIPTA KARYA a document entitled "Plan
of Operations" which shall include an outline and schedule
of the activities required to implement the Project, an organization chart, a description of the Project and a definition of the roles and responsibilities of the project participants. This Plan of Operations shall be discussed and
agreed to by CIDA and CIPTA KARYA and approved by both Goカ・イョュセ。、@

shall be utilized as a working document through-

out the life of the Project.
3.

Work •Plan
Approximately 3 months after commencement of the Project, the
canadian advisers and their Indonesian counterparts will prepare a Project Work Plan for approval by the Interdepartmental Committee which is described in Annex A. This Work Plan

will detail the activities of the Project for its duration
and also show a preliminary outline of the plan for implementation of the Sulawesi Regional Development Study recom mendations, and, as requested by the Government of Indonesia,
for appropriate activity in respect to the development of
East Indonesian Regional Development Study recommendations.

ARTICLE IV
Financial contribution of the Government of the Republic of
Indonesia
The Government of the Republic of Indonesia through CIPTA KARYA
will bear the cost of providing suitable counterpart personnel
and the cost of the necessary administrative assistance and local
support as specified in Annex C.
Financial contribution of the Government of Canada
The Government of Canada, through CIDn, will contribute an amount

not exceeding $ 1,300,000 (Canadian) to pay the cost of long-term
advisory services and short-term consultant services, and will
provide such services as detailed in Annex B.

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ARTICLE V
Implementation
The two Governments and their designated agents shall ensure
that this Memorandum is carried out with due diligence and efficiency and each shall 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 General of CIPTA KARYA
Department of Public Works
Jln. Patimura 20,

Jakarta Selatan, Indonesia

For canada
Mailing address

The President
Canadian International Development Agency
200 Promenade du Portage
Hull, Quebec
CANADA, KlA OG4

Cable address

CIDA HULL

ARTICLE VII
Evaluation
Periodic evaluations of the Project will be carried out as agreed
upon by the Government of the Republic of Indonesia and the
Government of Canada.


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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 Governments . 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.

Any dispute between the two Governments arising out of the
interpretation or implementation o:C this Memorandum shall be
settled amicably by consultation or negotiation.

4.

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

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

Signed in Jakarta on

1980 in duplicate .

FOR THE GOVERNMENT OF THE

FOR THE GOVERNMENT OF


REPUBLIC OF INDONESIA

CANADA

Signed

Signed

Purnomosidi Hadjisarosa

W.H . Montgomery

Minister of Public Works

Ambassador

1\NNEXA

1 . 0 . Descri ption of the Project
Regional Development has been a prominent aspect of Indonesian affairs for a long time . Resource frontiers , spatial
isolation , demographic issues, urbanization and settlement
systems, and maritime affairs are among the regional development issues that have long histories as subjects of
recognized importance for the archipelago . Since 1965 , the
Government of Indonesia has pl aced major emphasis on regional integration and increased attention has been given to
regional autonomy and decentralization . With the launching
of the Third Five Year Plan , which stresses development
equity as a major pol icy goal, regional devel opment programs will now become one of the central foci in the
Government of Indonesia ' s development thrust.
During the l atter part of the First Five Year Pl an period ,
the Government of Indonesia decided that regional development studies at provincial and multi- provincial scales would
be needed as a first step toward the creation of a regional
planning capacity in Indonesia . To date approxi mately fifteen such studies have been completed or are currently underway . Already completed have been regional studies for West
Sumatera, the five southern provinces of Sumatera , three
provi nces in East Indonesia , the Special Provinces of Jogyakarta and Jakarta, West Kalimantan, and the four provinces
of Sulawesi . Currently underway are studies for West, Central
and East Java , east Kalimantan and the four northern provin ces of Sumatera .



CIDA has to date been involved in two regional development
studies :
the East Indonesia Regional Development study (EIRDS) co vering the provinces of west and East Nusatenggara and the
Moluccas, and the Sulawesi Regional Development Study (SRDS)
covering the four provinces of Sulawesi. The objectives
of these two studies were similar, i . e . to systematically compile data on the physical and social resources
in the areas concerned, and to recommend general development strategies for the regions . Beyond this, the
two CIDA
have セウッ@

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made specific recommendations for programs and projects which
could be used as a basis for the development of East Indonesia and Sulawesi respectively.
To date, for a variety of reasons, there has been very little
implementation of program and project proposals emanating
from any of the completed regional development studies. One
of the main reasons for this is that the regional development
studies still require evaluation vis-a-vis national development policies and goals. They also require further elaboration of implementation strategies for specific programs and
projects. Initially, a comprehensive integrated screening
process has to be established, in order to develop sharply
delineated criteria for the selection of high priority regional development programs and projects for implementation.
In this regard, there is a need for the further analysis and
appraisal of regional development proposals, in consultation
with sectoral and local agencies.
The objective of the current project is to address the problem of lack of effective follow-up on regional development
studies, by providing advisers and consultants who will
help the Government of Indonesia to develop appropriate regional development programs and projects within the overall
context of the Government's national development efforts.
Although the CIDA advisers and consultants will concentrate
specifically on the development, up to the implementation
stage, of program and project proposals arising primarily
out of the CIDA-assisted Sulawesi Regional Development
Study, and, as requested by the Government of Indonesia, out
of the East Indonesia Regional Development Study, they will
impart their methodologies and techniques to Indonesian counterpart personnel, who will then be able to continue the
follow-up program for all of Indonesia's regional development studies .
2.0. Scope of the Project
2.1. The proiect is intended, in the lonq run, to increase
Indonesia's capacity for implementing integrated regional development programs, particularly through the
implementation of multi-sectoral and area development
projects arising from the Sulawesi Regional Development

Study, and, as requested by the Government of Indonesia,
of projects arising from the East Indonesia Regional
Development Study .
2.2 . The Project consists of a joint canadian/Indonesian
unit consisting of two Canadian advisers and their professional Indonesian counterparts (at least three Indonesian regional planners) who report directly to the
Director General CIPTA KARYA through the Directorate of
City and Regional Planning. This unit will assist the
Government of Indonesia in the development of regional
development programs and projects recommended in the
CIDA-assisted studies .
2.3. The unit will review the relevant regional development
documentation; monitor the progress of other Indonesian
regional development studies and follow-on activities;
propose a list of priority projects for implementation;
propose funding procedures for each project; prepare
terms of reference for required short-term consultants;
manage pre-feasibility and feasibility studies as ne cessary; assist the Government of Indonesia in developing requests for project funds as well as in the implementation of priority projects .
2.4. CIDA-funded short-term consultants (both Canadian and
IndonesiaN) will be used by the unit to carry out prefeasibility and feasibility studies required to bring
projects to the implementation stage .
3.0. Interdepartmental Committee
3 . 1. An interdepartmental Committee will oversee the implementation of the Project. The role of the Committee
with respect to the Project will be to :

(i) establish

the policy framework within which the unit will pursue
its activities; (ii) establish operational policies
and priorities to guide the unit in the conduct of its
work;

(iii) review and approve recommendations made by

the unit during the course of the Project; and (iv)
ensure the coordinated integrated and synchronized implementation of the multi-sectoral projects that emerge
from the Project.

3 . 2. The Committ ee will be chaired by the Director General
of CIPTA KARYA and will include functional representation from BAPPENAS, t he Department of Home Affairs, the
Department of Finance and the Department of Agricul ture .
Other government departments wil l be represented as
required . For discussions relevant to the implementation of this project , CIDA will be represented through
the Canadian Embassy in Jakarta .
4 . 0 . Project Implementation
4.1. The Project will commence with CIDA contracting the Canadian long- term advisers , after their acceptance by
the Government of Indonesia.
4.2. In the execution of the Project, the unit should maintain close cooperation and active consul tation with the
Provincial BAPPEDA and local agencies.
4.3 . The units would liaise closely and coordinate its activities with the Directorate of City and Regional Planning.
4.4 . The unit will report to the Director General of CIPTA
KARYA through the Director of City and Regional Planning .
5 . 0 . Evaluation
5.1 . Approximately 14 months after the commencement of the
the Project, CIDA and the Government of Indonesia will
conduct an interim evaluation of the Project. The evaluation team may involve CIDA , the Embassy, GOI representatives and outside consul tants, as required . Detail ed terms of reference for this evaluation will be
developed by CIDA and GOI as the Project progresses .
The Project will be evaluated in the areas of financial
performance and effectiveness . As a result of this eval uation , the evaluation team will determine the necessity for and recommend any directional changes required
to ensure the realization of the Project objectives
within budget and schedule . Further involvement by
Canada will also be addressed by the team .

Evaluation results will be made available to the Interdepartmental Committee, CIDA and the unit prior to the
Interdepartmental Committee meeting held to discuss the
unit's second interim report (due at the end of the
15th month) .

ANNEX B
Responsibilities and Obligations of the Government of Canada
The Government of Canada shall, through CIDA
1.

Provide the services of Canadian long-term advisers and
short-term consultants to carry out the work described in
paragraph 2 . 0 of Annex A. The long- term advisers will remain in Indonesia for a period of at least 24 months each

2.

Provide funds that will be used to pay the costs incurred
in providing such services including fees, salaries and
other emoluments, travel costs between Canada and Indonesia
and other appropriate expenses of the Canadian advisers and
consultants not provided by the Government of Indonesia.

3.

Provide miscellaneous expenses incurred in relation to the
Project outside Indonesia.

4.

As agreed to by the Government of Indonesia, provide equipment (excluding vehicles) and materials required to implement the Project and which will need to be imported into
Indonesia.

5.

Review all required progress reports and in consultation
with CIPTA KARYA and the Interdepartmental Committee take
such action as may be required to ensure the successful
completion of the Project .

6.

Require the Canadian long-term advisers and short-term consultants (as necessary) to prepare and maintain in both
narrative and diagramatic form a Work Plan in accordance
with Article III of this Memorandum, which will clearly
show the scheduling and achieved progress for each activity

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of the Project under their jurisdiction .

ANNEX C

Responsibilities and Obligations of the Government of the
Republic of indonesia
The Government of Indonesia shall, through designated authorities
in accordance with the existing laws and regulations of the
Republic of Indonesia

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1.

Provide all equipment , materials, supplies together with
services and labour required to complete the Project .

2.

Provide qualified Indonesia counterpart personnel as required to successfully implement the Project .

3.

Provide, free of charge, all temporary and permanent basic
furnished accomodation, as required in Jakarta, Indonesia
and other Project sites for all Canadian personnel assigned
to the Project .

4.

Bear the cost of local air or surface transportation for
the canadian personnel but not dependents, while travelling
within Indonesia on official Project business .

5.

Provide out-of-station allowances while travelling on official Project business away from permanent accomodation in
Indonesia.

6.

Provide, free of charge at Project sites, transportation
and drivers while on official Project business, such faci lities being provided for personal use at the experts' own
risk and with agreement on the cost of personal use to be
reached in advance between CIPTA KARYA and the experts.

7.

Provide and bear the cost of transporting Canadian advisers '
and consultant professional equipment between their point
of entry in Indonesia and the Project site .

8.

Provide without charge, appropriate air-conditioned office
accomodation for the Canadian personnel together with
necessary furnishings (including typwriters) clerical
staff, typists, domestic telephone and postal services
and any other office facilities required to implement
the Project .

9.

Establish a counterpart fund to cover local costs of the
Canadian personnel incurred in the execution of the Project.
Payments from this fund will be made subject to approval
of the Government of the Republic o f Indonesia .

10 .

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; and
ii) . personal and household effects of t he 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 in (i) and (ii)
above are sold.

11 .

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

12 .

Inform the canadian personnel of all laws and regulations
which may affect their work.

13 .

Indemnify without cost to the Government of Canada, and
save harmless the Canadian personnel from and against , all
claims , losses , damages , costs , actions and other procee dings 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 occurring during the performance of the purported performance
of their functions pursuant to any agreement relating to
this Memorandum.

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This provision s hal l not relieve any person from liabilit y
for any criminal, grossly negligen t or fraudulent act .
14 .

Provide :
i). all permits , licences , and other documents necessary
to enable the Canadian personnel to carry out their
respective responsibilities in Indonesia; and
ii) . all export and exit permits required for the return to
Canada of any of the materials , equipment, effects
(including personal effects) , which are property of the
Canadian personnel.

15 .

Provide reasonable access to those parts of Indonesian required to anable the Canadian personnel to carry out their
responsibilit ie s .

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