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MEMORANDUM OF UNDERSTANDINGS
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF AUSTRALIA
CONCERNING
THE EXTENSION OF THE KALBAR
INDONESIAN AUSTRALIAN
ROADS PROJECT (K. I. A. R. P.)

II

)

MEMORANDUl-1

GENERAL

1.

OF

UNDERSTANDING

This Memorandum expresses the understandings
and intentions of the Governments of the Republic of Indonesia and Australia concerning
the responsibilities and contributions

res-

pectively of the two Governments in regard to
the extension of the Kalimantan Barat

Indo-

nesian Australian Roads Project (K.I . A.R.P . ),
hereinafter referred to as the Project,

as

recommended in the Final Report of the Evaluation Review of the Project

(February 1978).

The Project is located in the Province of Kalimantan Barat and is intended to assist

the

development of the Province through road con struction and rehabilitation as detailed

in

Annex B.

AUTHORITIES

2.

The executing

Authorities for

this

Project

will be
For the Australian

Government, the Australian

Development Assistance Bureau of the Departmen1
of Foreign Affairs, which nominates the Snowy
Mountains

Engineering Corporation (S.M . P. .C.)

as its executing agent.

I

For the Indonesian Government, the Directorate
Gcncrnl of nighways of Lhe Mlull:itry of PUblic

Works .

-

DURATION

3.

The

2 -

original

between

the

Memorandum of

Understanding

Government of the Republic of

Indonesia and

the Government

of Australia

concerning the implementation of the Project
in

the Province of West Kalimantan

on 1 January 1980.
the

extension of

expires

This Memorandum covering
the Project

effect from that date .

will

take

The Project will be

extended by three years from 1 January 1980
to 1 January 1983 .

The Australian contribu-

tion to the Project and all undertakings
given herein will cease on 1 January 1983 or
on

such other

arranged

date as may subsequently

between

the

two Governments

be

(as

stipulated in paragraph 7 of this Memorandum).

RESPONSIBILITY

4.

Responsibility for development and direction
of

the Project

will be vested in a Project

Co- ordinating Board, whose

chairman will be

appointed by the Indonesian Government . This

Board

will include both the Indonesian

Australian Project Managers.
the Board

and

Membership of

will also include representatives

of the Indonesian Government Ministry referred to in paragraph 2 above, or nominated at
the discretion of the Indonesian GovernmAnt,
as well

as a

nominee

designated

by

the

I.

-

3 -

Australian Embassy in Indonesia.

The Board

will meet monthly or as often as

business

requires but not less than four times a year .
Functions of the Board will include :
(a)

co- ordinating policy for the project,

(b)

Co-ordinating operation of the Project
team;

(c)

Co-ordinating the disposition of the
project personnel;

(d)

Reviewing and reporting on progress to
the two Governments; and

(e)

Recommending to the two Governments
changes in programme , budget and future
development .

5.

Overall responsibility for this project shall
rest with the Indonesian Government .

The

final authority for decisions on the implementation of the agreed works programme shall
rest with the Directorate General of Highways,
after considering the consultations

between

the Indonesian and Australian Project Managers.
CONTRIBUTIONS

6.

The contributions of

the Indonesian

and

Australian Governments are detailed in Annex
A and in addition to the contribution allocated

•

in the original of Memorandum of Understanding
are estimated to value Rp. 8,000,000,000
$A 14,320,000 respectively.

and

- 4 Approximate parity wi ll be maintained in the
annual budget allocations

to the Project by

the Indonesian and Australian Governments .
Di sbursement of the Indonesian and Austra l ian
Government ' s contributions will be subject to
the normal

annual

ｰ｡ｲｬｩｾｭ･ｮｴｹ＠

approval

of

appropriations.

EVALUATION

7.

A second Review of the Project will be under taken in 1981 to recommend upon the future of
the Project after l January 1983 . Thi s evaluation wi ll be undertaken by a joint i nvestigation t eam appointed by the two Governments and
independent of staff involved in the Project.
The terms of reference
drawn up by

of the Review will be

the Indonesian and Australian

Government at a time which is mutually

con-

venient and which will enable the review

to

be held in 1981 .

PERSONNEL

8.

For the purposes of this Project, the Indonesian Government will, in accordance with the
exi sting laws and regulations , facilitate the
employment by the Australian Government

or

its agent of personnel as required

the

Project and established
Governments by

between

for
the

two

I

-

(a)

5 -

Granting exempt ion from income or other
taxes on Project salaries

and

allow-

ances;
(b)

Granting exemption from import and other
duties on personal and household effects,
subject to re-exportation after the completion of their assignment;

(c)

Granting exemption from import duties on
one commercial motor vehicle per expert
on condition

thet it be re- exported

or

duty paid on its assessed value at the
time of sale within Indonesia, or granting exemption from taxes and

duties

on

one motor vehicle per expert for locally
assembled vehicles;
ＨｾＩ＠

Granting

to Aus tralian Project personnel

all rights and entitlements accorded to
the

aid personnel of any other donor

country; and
(e)

F.xpediting the issue all documentation
tion required for the entry of and performance of work

by Project personnel

including work permits and

drivers

licenses.

SUPPLIES

9.

(a)

ｾｨ･＠

Indonesian

accordance

Government will,

in

with the existing laws and

I

- 6 -

regulations, exempt from import duties
and other

taxes (or

pay

such duties

thereon) all goods supplied by Australia

for the established purposes

of

the Project as set out in Annex A. The
Project Manager appointed by

the Aus-

tralian Government shall prepare quarterly shipping schedules of all

goods

supplied by Australia and shall present
such schedules to the Project Manager
appointed by the

Indonesian

Govern-

ment;
(b)

The Indonesian Government will facilitate

movement of Project supplies by

providing appropriate
wharfage

f acilities

customs
in

the

and
port

closest to the project site and

I

will

be r esponsible for expeditious transport of such supplies to the site; and
(c)

Project supplies provided by Australia
shall be available for the unrestricted
use

of the Project

withdrawn

from such

and

shall not

use without

be
the

consent of the Project Manager appointed by the Australian Government.
Australian Project

Manager

shall

exercise administrative control
such supplies for the duration of

I;

The

over
the

I

-

7 -

Project or for such other time as Austra lia agrees they may be released from the
Project.

LIABILITY

10.

The Indonesian Government shall be responsible
for

dealing with any

claims

which

may

be

brought by third parties against Australia and
its experts, agents

or Australian

personnel

and shall hold harmless Australia and its experts,

agents

and personnel in case of

any

claims or liabilities resulting from operations
under this

Memorandum .

This provision

shall

not relieve any person from liability for

any

criminal, grossly negligent or fraudulent act.

SECURITY

11.

The Indonesian Government will arrange for the
protection
safety of

deemed

necessary to

Australian

project

ensure

the

equipment

and

personnel at the Project location, in transit
and

on any

other

official

activity in Indonesia.

representational

The Australian Govern-

ment will take reasonable precautions to ensure
that Australian personnel have due regard

to

the local traditions and customs.

I
SF.TTLF.MENT OF
DIFFERENCIES

12 .

Any ｴＱｩｳｰｵｾ＠

between the two Government

out of the interpretation or implementation of
this Memorandum shall be settled amicably
consultation or negotiation.

I

arising

by

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- 8 -

13 .

AMENDMENTS

Amendments to this Memorandum may be made
at any time by an exchange of Letters between the two Governments .

ANNEXES A and B to this Memorandum form an integral part of it.
SIGNED at

Jakarta

in duplicate,

this

third

day of

January , 1980

For the Government of Indonesia

For the Government of
Australia,

Signed

I

I

Signed

POERNOMOSID: HADJISAROSA

T . K.

Minister of Public Works

Australian Ambassador
to Indonesia.

CRITCHLEY

ANNEX

A

DIVISION OF RESPONSIBILITIES AND CONTRIBUTIONS

1.

Australia
(a)

The Australian

contribution to the Project will be

approximately $A 14,320,000 spread over the Australian financial years 1979-80 to 1982-83.
(b)

Within the limits of its contribution Australia will
provide, on the recommendation of the Autralian Pro ject Manager, the following

items for the purposes

of the agreed construction programme
(i)

the professional

and technical staff on a long

term basis as listed in Annex A-1 including the
payment of their salaries, allowances and

tra-

vel between Australia and Indonesia, and shortterm specialist staff as required;
(ii) survey instruments and equipment
and

in

Indonesia

road design facilities at Cooma in Austra-

lia;
(iii) laboratory testing equipment for testing soils
and construction materials and for bridge subsoil investigation;
(iv) construction

plant, equipment and vehicles as

listed in Annex A-III and spare parts therefor
as required;
(v)

I

technical reference books, films and equipment
for training purposes;

(vi)

Colombo Plan awards for practical training and
academis training if necessary

I

in

Australia

-

2 -

for key Indonesian staff associated with the
Project;
(vii) major household

appliances

deep freeze units, air

(refrigerators,

conditioners, electric

stoves, water filtration units) for the accommodation provided by the Austral ian Government for
Australian personnel. These items will be transferred to the Indonesian Government at the end
of the Project, if requested;
(viii)
(ix)

workshop buildings framework and cladding; and
imported spare parts for the Indonesian supplied
plant, vehicles and equipment.

2.

Major modifications to the list of plant, equipment

and

vehicles at Annexes A- III may be made after consultation
with the Indonesian authorities and the Australian Deve-

I

lopment Assistance Bureau.

3.

Indonesia
(a)

The Indonesian contribution to the Project will be
Rp . 8,000,000,000

spread

over the

Indonesian

financial years 1979-80 to 1982-83 .
(b)

The Director General of Highways will
officer

as Executive

through whom

appoint

Project Director in Jakarta

all communications with the Ministry

of Public Works will be directed .
(c)

Within the limit of its contribution, Indonesia
will provide :

an

-

·- 3 -

( i)

staff as listed in Annex

A-II

on a full - time

basis toaether with the reauisite sub- orofes-

I"

sional. skilled and semi-skilled labour. counteroart

staff to assist with

economic

and

traffic studies and staff for survev and location teams

as reauired: includina oavment of

all salaries and allowances:
(ii)

camoina facilities oroaressivelv

alona

the

route for the location and survey teams;
(iii)

an

amount of Rp . 60,000

for each

Australian

team member will be paid monthly to the Australian Project Manager to cover :
(i)

handling

charges

associated with the per-

sonal effects and foodstuff, and
(ii)

the supply,

maintenance and where necess-

ary, replacement, of all furniture (excluing those

items listed

in paragraph l(b)

(vii)) required for the accommodation

of

Australian

of

personnel during the life

the Project ;
(iv)

all maintenance and
furniture and

replacement

(including

equipment) as necessary during

the life of the Project, for all buildings in
the work Centre, and labour and materials fer
the erection of the houses and other

I

｡｣ｯｾ､

tion provided by Australia with all necessary
services;
(v)

I

field accommodation, workshop and

offices to

mutually agreed specifications as

required

ﾭ

-

4 -

progressively throughout the life of the Project,
and maintenance and replacement therefor as necessary during the life of the Project;

I

(vi)

plant and vehicles as listed in Appendix A- III or
suitable equivalents to mutually aqreed specifications;

(vii)

adequate water and electrical reticulation to re asonable standards within the Norks Centre;

(viii)

road, drainage , sewerage and other services within
the Works Centre ;

I

(ix)

all fuels and lubricants to

mutually

agreed

specifications, road tankers, bulk storage
lities, bowsers

at the

Works Centre ,

faci -

moveable

storage tanks for fuel at field depots to mutually
agreed specifications and the adequate maintenance
of supplies;
(x)

all plant and vehicles tyres in the sizes manufac tured in Indonesia;

(xi)

adequate security arrangements for
Centre , accommodation sites

and

the

Works

construction

sites, and for movement of personnel, equipment
and materials to and from the latter;
(xii)

facilities for

medical treatment

personnel at the Works Centre
(xiii)

for Indonesian

and sites;

all construction materials required for the Project;

(xiv)

payment for
ｾＱ＠

work on the Project
ｵｮ､｣ｲｴｾｫ＠

under contract arrangements with local contractors;

I

-

--

5 -

(xv) all other requisite materials, services
facilities required

and

for the execution of the

Project, estimated annual requirement

to

be

agreed between the Australian Project Manager
and the Indonesian Project Manager
the beginning of each

Indonesian

prior

to

financial

year ;
(xvi)

a diesel-powered barge as required
port

fuel and equipment

to trans-

from Pontianak

to

Sanggau or Singkawang;
(xvii)

all handling, clearing and transportation costs
at

and from the port of entry

to

of imported materials, equipment,
machinery,

the Project,
vehicles,

furniture and fittings and other

goods supplied to the Project by Australia; and
(xviii)

exemption from or reimbursement of all duty and
tax paid in Indonesia by

ｾｵｳｴｲ｡ｬｩ＠

in purchasing

vehicles , spare- parts and materials for the Project.

4.

The Australian Project Manager in consultation

with the

Australian Ambassador in Indonesia or his delegate

shall

nevertheless have final jurisdiction in respect of
(a)

I

duties, discipline, leave and all other adrninistrative issues concerning Australian personnel; and

(b)

use of passenger vehicles provided by Australia as
transportation for Australian personnel.

I

ANNEX A-I

ANNEX A-I
AUSTRALIAN PERSONNEL

Project Manager

1

Engineers

6

Superintendent of Workshops

1

Training Officers/Teachers
Workshop Supervisors/Technicians

2

12

Surveyors
Construction Supervisors/Technicians

2

10

Road Designer

1

Administrative/Finance Officer

1

Workshop/Stores/Finance Clecks

4

Cost Accounting Officer/Engineer

l

41

NOT :I!:

Composition of the Australian team
will be varied to meet actual
requirements and to include shortterm experts as required .

A.."lliF.X

A - II

INDONESIAN PERSONNEL

I
Project Manager
Engineers

1
13

Supervisors

19

Technical Staff I Administration

63

Foremen I Technicians

71

Designers

17

Soil Laboratory Staff

12

Survey Teams

so

Pl ant Operators

180

Drivers

233

Mechanics, Fitters,
Welders, Electricians

230

Carpenters

15

Prestresed Plant

45

Pi pe Plant

15

Bridge Construction
Culvert I Headwall
Quarry

I Crusher

Sealing Crews

140
24

50
20

Maintenance Cr ews
- Temporary Bridges

15

- Road

40

- Telephone resetting

I

5

- Work Centre
Barge Crews

10

Watchmen I Security

50

Office Staff

30

Others

53

9

1. 500

*

* It is understood that this figure is to be regarded
as an order of magnitude only and that therefore it

I

may be necessary as a result of future

experience

on the Project to allow upward or downward movements
in thid figure to occur .

Annex
ANNEX

A - III

A - III

AUSTRALIAN SUPPLIED PLANT EQUIPMENT AND VEHICLES
FOR KIARP EXTENSION

Tractor LGP 60

*

KW

2

Tractor tracked 60 KW

2

Tractor pneumatic tyred

1

Hydraulic Excavator

1

F ront end loader wheeled

1

Motor grader 90 KW

2

Vibrating roller S.P.

4

Pneumatic tyred roller 15 T

1

Tandem steel wheel S . P . roller 10 - 12 T

2

Double drum vib roller 60 em

1

Single drum pedestrian roller

1

Trucks tipping 7 T

60

Utility

4 x 4

10

Utility

4

12

X

2

Station sedan 4 x 4

1

4

2

Sedan

X

2

Front end loader backhoe combination

4

Outboard motors 130 KW

2

Bitumen heating equipment

Qty

120 - 150 T.P.H. rock crushing and
screening plant

1

Diesel generating set 300 KW

1

Box spreaders

4

Laboratory equipment

-

·- -

Qty

--

*

It is understood by the two Governments that it may
be necessary to vary from this list in the light of
new requirements

as

they are revealed during

the

course of future construction.

I

I

I
I

ANNEX

B

K.I.A . R.P . ROAD CONSTRUCTION PROGRAMME

The Governments of the Republic of Indonesia and Australia
agree that the Project should pursue the following priority
road construction and rehabilitation programme as for as resources will allow :
LINK
Ngabang-Sanggau

SCOPE OF WORK
(a)

P.arth works and
Gravelling Betterment

10

55

Sanggau-Sintang

(b)

Base Course and Sealing

Sanggau-Sintang

(a)

Earthworks and
Gravelling Betterment

Tanjung-:Cntikong

LF.NGTH

(b)

Base Course and Sealing

(a)

P.arthworks and

130

30

Gravelling New Cons-

Sidas-Darit

truction Class III

20

(b)

Base Course and Sealing

90

(a)

Earthworks and
Gravelling "!\Jew Construction Class III

Kembayan- Balai
Sebut

(a)

r:arthworks and
Gravelling New Construction Class III

I

I

15

so

This programme may be amended at any time in accordance
with the Government of Indonesian policy on highway development during Pelita III by an exchange of

letters

between the two Governments; whereas amendments on
technical matters can be done by a simple exchange
letters wi t h the Project .

I

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of