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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION
REGARDING THE PROMOTION OF SOUTH-SOUTH
INDUSTRIAL COOPERATION

WHEREAS the United Nations Industrial Development Organization (hereinafter referred
to as UNIDO), as a specialized agency of the United Nations, has the primary responsibility in
promoting industrial development in developing countries and in countries with economies in
transition;

WHEREAS the Declaration on the New Asian-African Strategic Partnership, done in
Bandung, Indonesia on 24 April 2005, emphasizes the need to promote practical cooperation
between the two continents in areas such as trade and industry;

WHEREAS the Government of the Republic of Indonesia (hereinafter referred to as "the
Government") and UNIDO (hereinafter referred to collectively as "the Parties") desire to
consolidate and enhance their cooperation, especially in the field of South-South cooperation, and
in the fields of research, the transfer of technology and the promotion of investments;

WHEREAS the successful development expenence and the achievements in industrial
technologies of the Republic of Indonesia may serve as a model for other developing countries and
contribute to their industrial development within a mutually beneficial framework;

WHEREAS the Parties share the long-term objective of concluding an agreement on the
establishment of a UNIDO Regional Centre for South-South Industrial Cooperation in the Republic
of Indonesia, if and when they deem it feasible;

NOW THEREFORE, the Parties have reached the following understanding:

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ARTICLE I

1.

Subject to the availability of the necessary financial resources, the Parties will strengthen

their cooperation in the field of industrial development by taking into consideration the objective of

South-South cooperation when planning new industrial development programmes and projects in
future.

2.

The Parties will explore innovative approaches for enhanced South-South industrial

cooperation, with the least developed countries as the agreed focus of priority.

ARTICLE II

The Parties will cooperate to promote, inter alia, the following areas of South-South
industrial cooperation between selected countries:
(i)

Exchanging experience in the orientation, formulation and implementation of

industrial policy;
(ii)

Institutional and enterprise networking in order to enhance productive capacities, and

the flow of trade, technology promotion and investments;
(iii)

Replicating best practices for the reduction of poverty through industrial

development and through grassroots innovations serving as impulses for rural growth;
(iv)

Strengthening national and local innovation systems for the use of modem

technology, and enhancing adaptive capabilities to commercialize new knowledge;
(v)

Enhancing the entrepreneurial and productive capacities of small and medium-sized

enterprises through the sharing of best practices and experiences, as well as through other
activities to improve skills;
(vi)

Promoting the use of sustainable energy and technologies in industry.

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ARTICLE III

In implementing programmes and projects for South-South industrial cooperation under this
Memorandum of Understanding, both Parties agree to utilize available opportunities for the
transfer, subject to respect for applicable intellectual property rights, of proven Indonesian
technologies and technical and managerial expertise to other developing countries in a mutually
beneficial partnership.

ARTICLE IV

All programmes and projects for South-South industrial cooperation under this
Memorandum of Understanding will be developed in accordance with the applicable rules of
UNIDO governing technical cooperation and will be subject to the financial regulations, rules and
administrative instructions and procedures of UNIDO.

ARTICLE V

1.

The Parties will not, without the consent of the other Party, disclose to a third party any

proprietary

information

obtained

during

the

implementation

of this

Memorandum

of

Understanding, other than for the purposes of promoting South-South industrial cooperation.

2.

Where necessary, the Parties will mutually agree on appropriate measures for the protection

of intellectual property rights in the implementation of South-South programmes and projects
pursuant to this Memorandum of Understanding.

ARTICLE VI

This Memorandum of Understanding may be amended in writing by the Parties following
mutual consultations. This Memorandum of Understanding will come into effect upon signature by
both Parties and will remain in effect for period of the 2008-2013 country programme cycle of
Indonesia, subject to the possibility of extension by mutual consent of the Parties.

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ARTICLE VII

Any dispute as to the interpretation or implementation of this Memorandum of
Understanding shall be settled by consultation and negotiation between the Parties.

ARTICLE VIII

This Memorandum of Understanding may be terminated by either party on ninety days'
written notice to the other Party. If this Memorandum of Understanding is terminated by either
Party, steps will be taken to ensure that the termination does not affect any prior obligation, project
or activity already in progress.

IN WITNESS WHEREOF, the undersigned, being dully authorized thereto, have signed this
Memorandum of Understanding at Vienna on the fourth day of December 2007, in English.

On behalf of the

On behalf of the

Government of the

United Nations Industrial

Republic of Indonesia

Development Organization

Fahrni Idris
Minister for lndustry and Trade

Director-General