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

THE GOVERNMENT OF AUSTRALIA

RELATING TO THE DEVELOPMENT OF FMD VACCINE
PRODUCTION BY MEANS OF SUSPENSION TISSUE
CULTURE TECHNIQUES,

AND FMD ERADICATION

CAMPAIGN
(ATA 76)

MEMORANDUM OF UNDERSTANDING
RELATING TO THE DEVELOPMENT OF FMD VACCINE
PRODUCTION BY MEANS OF SUSPENSION TISSUE
CULTURE TECHNIQUES,

AND FMD ERADICATION

CAMPAIGN
(ATA 76)

GENERAL

1.

THIS MEMORANDUM expresses the understandings of the
Governments of the Republic of Indonesia and Australia
concerning the responsibilities and contributions
respectively of the two Governments in regard to the
development of FMD

vaccine production by means of

suspension tissue culture techniques, and FMD
eradication campaign 0\TA 76), hereinafter referred
to as the Project.

This Project is intended to assist the Government of
Indonesia in its national program for the control
and eradication of Food and Mouth Disease as further
described and detailed in Annex 1 to this Memorandum.
AUTHORITIES

2.

The Executing Authorities for this Project will be :
For the Indonesian Government: The Directorate
General of Livestock Services, Department of
Agriculture .
For the Australian Government : The Australian
Development Assistance Bureau of the Department of
Foreign Affairs.
The Australian Development Assistance Bureau may
nominate suitably qualified agents to undertake any
part of its functions on its behalf.

DURATION

3.

This Memorandum will take effect from the date of
its signature and the Project will be deemed to have
commenced from September 1974 .

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The Australian contribution to the Project and all
undertakings given herein will cease on 30 June
1981 or on such other date as may subsequently be
arranged between the two Governments.
PROJECT

4.

Responsibility for development and direction of

the Project will be vested in a Project Co-ordinati ng

ORGANIZATION

Board , whose chairman will be appointed by the
Indonesian Government.

This Board will include the

Project Manager, who is to be appointed by the
Australian Government .

Membership of the Board will

also include representatives of the Indonesian
Government Ministry referred to in Clause 2 above,
or nominated at the discretion of the Indonesian
Government, as well as a nominee designated by the
Australian Embassy.

The Board will meet not less

than twice per year .
FUNCTIONS OF

5.

PROJECT CO -

Functions of the Board will include :
(a)

ORDINATING

reviewing and reporting on progress to the
two Governments; and

BOARD
(b)

recommending to the two Governments any changes
in program, budget and future development.

RESPONSIBILITY

6.

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

CONTRIBUTIONS

7.

The contributions of the Indonesian and Australian
Governments are detailed in Annex 1 and are estimated
to value Rp 1.176.833.000,- and $A8.034 million
respectively. Disbursement of Australian and
Indonesian contributions are subject to the normal
annual Parliamentary approval of Appropriations .

..... // .....

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BVALUATION

8.

An evaluation of progress of the Project may be
made at
ｴｌｾ･ｳ＠

arranged between and mutually

convenient to, The Indonesian and Australian
Governments.

Such an evaluation woul be under-

taken by a joint investigation team appointed by
the two Governments and independent of staff
involved in the project.
PERSONNEL

9.

For the purposes of this Project, the Indonesian
Government will,in accordance with the existing
laws and regulations,facilitate the employment
by the Australian Government or its agent of
personnel as required for the Project and
established between the two Governments by
(a)

granting exemption from income or other
taxes on Project salaries and allowances;

(b)

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

{c)

granting to Australian project personnel
all rights and entitlements accorded to the
aid personnel of any other donor country;

(d)

expediting the issue of all documentation
required for the entry of and performance
of work by, project personnel.

SUPPLIES

10.

{a)

The Indonesian Government will, in accordance
with the existing laws and 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 1 .

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Obl

The Indonesian Government will facilitate
movement of project supplies by providing
appropriate customs and wharfage facilities
in the port closest to the project site and

will be responsible for the expeditious
clearance and transport of such supplies.

(c)

The equipment, materials and vehicles
imported or procured for the Project by the
Government of Australia shall become the
property of the Government of Indonesia on
arrival in the port of unloading.

(d)

The vehicles imported or procured for the
Project may be used, after consultation
between the relevant executive authorities,
for other Australian-Indonesian Technical
co-operation projects within the scope of
the Directorate General of Livestock
Services, Department of Agriculture.

LIABILITY

11.

The Indonesian Government shall be responsible for
dealing with claims which may be brought by third
parties against Australia or an executing agency,
their officials or other persons performing services
on their behalf, and shall hold them harmless in
respect of claims or liabilities arising from
operations under this Memorandum.
This provision shall not relieve any person from
liability for any criminal, grossly negligent or
fraudulent act.

SECURITY

12.

The Indonesian Government will arrange for any
protection deemed necessary to ensure the safety
of Australian
ｰ･ｲｾｯｮｬＬ＠

project and personnel

equipment both at the project location, in transit

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and on any other official representational activity
in Indonesia .

The Australian Government will take

reasonable precautions to ensure that Australian
personnel have due regard to the local traditions
and customs.
SETTLEMENT OF

13 .

DIFFERENCES

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

AMENDMENTS

14.

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

ANNEX l to this Memorandum forms an integral part of it .

SIGNED at

J a k a r t a ,

in duplicate, this twentysecond day of July

1980.

FOR THE GOVERNMENT OF

FOR THE GOVERNMENT OF

THE REPUBLIC OF IND0rESIA

AUSTRALIA

Signed

Signed
D.G.

WI L S 0 N

Charge d'Affaris a . i. of
the Embassy of Australia
in Jakarta

ANNEX

1

THE DEVELOPMENT OF FMD VACCINE PRODUCTION
BY MEANS OF SUSPENSION TISSUE CULTURE
TECHNIQUES, AND FMD ERADICATION CAMPAIGN
ATA 76 )

A.

OBJECTIVES
The major undertaking w1der the Project is the development of Pusat

Votorinaria Farma {hereinafter referred to as Vetma) in Surabaya , a
laboratory for the production of animal disease vaccines at the rate of 5
million doses per year.

The Australian contribution to this objective will

take tne form of upgrading the present facility and providing expertise and
equipment for the production of FMD vaccine.
As a secondary undertaking and until such time as the FMD vaccine
laboratory becomes fully productive, or for a period to be mutually decided
by the Governments of Indonesia and Australia, the Australian Government
will provide FMD vaccines from outside sources, specified items of
vaccinating and field equipment and motor vehicles to enable the Indonesian
Department of Agriculture to carry out mass vaccination against FMD in the
provinces of Bali, East Java tincluding Pulau Madura), Central Java , Yogyakarta , West Java and South Sulawesi.
After the completion of the Australian involvement in the Project
FMD vaccine production at Vetma will be the responsibility of the Indonesian
Government and further mass vaccination against FMD in Indonesia will be
carried out by the Indonesian Government as necessary.
B.

AUSTRALIAN CONTRIBUTION

1.

Assistance to Vetma
Australia will make the following contribution to the development

and operation of the Fr·ID laboratory at Vetma.

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(a)

prepare architectural and engineering designs and specifications
of the laboratory buildings and other installations which may
form part of the production laboratory;

(b)

supply all construction materials for the laboratory and related
structures if any;

(c)

by the process of contracting out the work, reconstruct the
laboratory building and related structures if any;

(d)

supply and install all

services, laboratory and other
ｾ･｣ｨ｡ｮｩｬ＠

equipment, machinery and fittings required for the initial
establishment of tbe production laboratory;
(e)

provide whatever Australian
ｰ･ｲ

ｾ ｯｮ･ｬ＠

are needed from time to

time to oversight the work relating to refurbishing of the

laboratory building, installation of equipment and commissioning
of the production unit, and to assis·t witb the initial stages
of vaccine production, testing and on-site training of laboratory
staff;
(f)

supply vehicles for the official use of Australian personnel
for the duration of their assignments on the Project, and meet
the costs of fuel, lubricants and maintenance for such vehicles;

(g)

provide accommodation and remuneration for all Australian
personnel assigned to the Project; and

(h)

provide training awards for training in Australia and in some
cases in the United Kingdom for selected Indonesian personnel
from Vetma.

All such training programs will be agreed to by

both Governments.
2.

Assistance with Mass Vaccination Program
Australia will provide the following items and services to assist

with field mass vaccination in the Provinces of Bali, East Java (including
Pulau Madura) Central Java, Yogyakarta, West Java and South sulawesi:

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{a}

vehicles, the types and numbers to be mutually decided by the
two Executing Authorities;

(b)

field vaccinating equipment such as syringes, needles, field
sterilizers, portable coolers, ear notching pliers;

(c)

prefabricated

ｾ｡ｬｫ

Ｍ ｩｮ＠

type coolroom units for central storage

of FMD vaccines at the following sites: Jakarta, Denpasar,
Singaraja, Surabaya, Semarang, Bandung, Purwokerto, Yogyakarta,
Kediri, Ujung Pandang, Pare-Pare and Bone;
(d)

FMD type 0 vaccines purchased from the Wellcome Foundation,
Pirbright, United Kingdom, in quantities necessary for the
mass vaccination of each of the areas referred to above.
Unless otherwise mutually agreed, Australia will provide FMD
vaccine until such time as the FMD vaccine laboratory becomes
fully productive;

(e)

C.

technical advisers,
ｾｳ＠

necessary,

INDONESIAN CONTRIBUTION

1.

The Government of Indonesia will contribute to the implementation

of the Project in the following ways:
{a)

provide the building (known as the main laboratory, which is
to be refurbished with Australian assistance) empty of all
items of furniture, equipment and in a condition suitable for
commencement of restoration work;

(b)

provide basic office space, telephone and typing facilities
for the Australian personnel attached to vetma;

(c)

meet all rupiah running costs for electric power, water supply,
cleaning, landscaping, official use of telephone and postal
services, fuel and lubricants and maintenance of Project vehicles
and such other local costs as may occur in the normal operation
of the Project except those specifically mentioned in the
document under the heading "B. Australian Contribution";

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(d)

arrange the extension, or the upgrading as the case may warrant,
of electric power and t e l ephone ser v i ce s to the FMD Vaccine
building and provide an adequate mains water supply from which
all internal tap water points can be taken;

(e)

meet the cost of purchase of all animals required by the FMD
laboratory for experimental and vaccine testing purposes;

(f)

provide or appoint suitable and sufficent numbers of Indonesian
staff who will be responsible for the operation and maintenance
of the laboratory and all equipment and other installations
provided therein for the production, packaging and testing of
vaccines, and the efficient operation of the mass vaccination
ｾｍｄ＠

program covered by this Memorandum of Onderstanding;
(g)

provide the salaries and allowances, accommodation and
transportation for all Indonesian staff attached to the Project;

(h)

meet the cost of overtime worked by Indonesian staff in

connection with activities essential to the efficient and
successful operation of the laboratory;
(i)

meet the travelling costs of all Indonesian staff of the Proje ct
when travelling on duty within Indonesia;

(j)

meet all clearilg, handling and transport costs from the port
of entry to the Vetma laboratory site and to the Office of the
Animal Husbandry Services in each of the Provinces listed in
B. 2 above, of all imported building materials, laboratory
equipment, vehicles, machinery, fittings and all other goods
supplied for the project from Australia or other countries.

1.:.

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