Selanjutnya
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE ITALIAN REPUBLIC
CONCERNING THE CONCESSION OF A SOFT LOAN FOR THE
"INDONESIAN FOOTWEAR SERVICE CENTER (IFSC)
SUPPORT PROJECT"
The Government of the Republic of Indonesia, represented by the
Directorate General of Small and Medium Industry and Trade of the Ministry of
Industry and Trade (MOlT) and The Government of the Italian Republic,
represented by the Directorate General for Development Co-operation (DGCS)
of the Ministry ofF oreign Affairs both hereinafter referred to as the Parties.
Recalling the traditionally friendly relations between the Italian Republic
and the Republic of Indonesia;
Stressing the importance of a sound economic and social cooperation
between the two countries;
0
Reminding the request of the government of the Republic of Indonesia,
through the Ministry of Industry and Trade, for a soft loan to be utilised for the
above mentioned project;
Considering the pledge of the Italian Government, as stated during CGI
meeting in 1996 to finance a soft loan amounting to 5.164.568,99 Euro for the
Leather Industry Development in the Republic of Indonesia;
Considering the pledge of the Italian Government, as stated during CGI
meeting on 1-2 February 2000, for an additional soft loan amounting to
5.164.568,99 Euro;
:/...... ..
Considering the approval of the Steering Committee of the Directorate
General for Development Cooperation (DGCS) of the Ministry of Foreign
Affairs of the Italian Republic on May 28, 2002 upon the concession of a soft
loan up to a maximum of 5.550.000,00 Euro in favour of the Republic of
Indonesia to be utilised for the financing of the project;
Taking Into account the request of the Government of the Republic of
Indonesia, through the Ministry of Industry and Trade for a soft loan to be
utilised for the project of Leather Industry Development;
Taking into account the Minutes of Meeting signed by the Parties in
Jakarta on May 19, 2000;
Taking into account the Minutes of Meeting signed by the Parties in
Jakarta on December 8, 2000;
Taking into account the Minutes of Meeting signed by the Parties in
Jakarta on August 30, 2001;
Considering that on May 28, 2002, the Steering Committee of the
Directorate General for Development Cooperation (DGCS) of the Ministry of
Foreign Affairs of the Italian Republic has approved the concession of a soft loan
up to a maximum of 5.550.000,00 Euro in a favour of the Republic of Indonesia
to be utilized for the financing of the project, both Parties have agreed as
follows:
ARTICLE I
Definitions and Acronyms
This MoU is Composed of 14 Articles.
Words and acronyms mentioned below in the text have the following meaning:
Project:
IFSC:
MOlT:
The project for providing assistance to SME' s in the footwear
industry for creating a Service Technical Centre approved by the
Steering Committee of the Directorate General for the
Cooperation with Developing Countries of the Italian Ministry of
Foreign Affairs;
Indonesian Footwear Service Centre;
Ministry of Industry and Trade of the Republic of Indonesia.
:/ ....... .
ARTICLE II
Project Objectives
The Parties agree to cooperate, within the framework set up by this
M.o.U., for the following objectives: the construction of Centre for training and
service for the Indonesian footwear small and medium enterprises sector and the
improvement of the social and economic conditions of the beneficiaries, by
establishing the Indonesian Footwear Service Centre (IFSC) with following
assignments:
2.1. Functions:
a) As footwear training and education centre in Indonesia;
b) As footwear information centre in Indonesia for disseminating
information concerning market, technical, business competition and
others;
c) As research and innovation centre in the field of leather footwear with
competitive capability;
d) Providing consultancy services and solution for footwear industry in
Indonesia.
2.2. Objectives:
a)
b)
c)
d)
Increase of industrial production and export capacity;
Increase of the design and quality of the footwear production;
Increase of the selling price and the reduction of the production cost;
Increase of the knowledge and the techniques of the production and
management for the footwear activities;
e) Increase of the education for sector workers and the acquisition of the
congruent social behaviours with the objective of improving living
conditions.
ARTICLE III
Commitments of the Indonesian side
The Contribution to the Project from Indonesian side is estimated in
approximately 1.150.000,00 Euro with the assurance to the project for the
necessary authorizations for the use of 5.000 sq. meters of the land including all
necessary infrastructure, buildings, complete structure for the Centre and the
payment of the Indonesian staff for operating and managing role:
:/....... .
3 .1 The Ministry of Industry and Trade cq. Directorate General of Small and
Medium Industry and Trade is responsible for operating and maintaining
funds of IFSC;
3.2 The Ministry of Industry and Trade in cooperation with Local Government
is responsible for the creation of the relevant legal institution;
3.3 The relative cost to the purchase of the land and the construction of
infrastructures and the buildings will be borne by the local administration.
ARTICLE IV
Budget
The Italian Government commits itself to authorize the Mediocredito
Centrale S.p.A. (Mediocredito Centrale) to grant the Government of Indonesia,
subject to the finalisation of further procedural steps and arrangements
mentioned in the present MoU, a soft loan not exceeding 5.550.000,00 Euro to
be used for the implementation of the program, as defined in the project
appraisal document.
The Government of the Republic of Indonesia commits itself to lend the
aforementioned amount to the Ministry of Industry and Trade, which is entrusted
with the Implementation of the project.
The above-mentioned amount of 5.550.000,00 Euro is to be understood as
a ceiling, also in case the global price of the contract exceeds it. Should the
global price be less or equal to 5.550.000,00 Euro the amount of the Italian
financing price be less or equal to 5.550.000,00 Euro, the amount of the Italian
financing will be equal to the value of the contract(s) awarded. Anyway,
the Italian Government also reserves the right to withdraw the concession of the
soft loan in case of non-compliance with the conditions and procedural steps
mentioned in this MoU.
ARTICLE V
Supplies and Services
The soft loan is to be solely used for acquiring supplies and services
:/...... ..
through competttlve bidding procedure complying with the Manual of
Instructions adopted by the European Commission on November 10,1999,
supplies and services of Italian origin related to the above-mentioned project.
The above-mentioned supplies and services may be originated in the Republic of
Indonesia or, in case of origin from other developing countries, up to maximum
value equal to 15% of the total contract price.
The above-mentioned supplies and services shall be exempted in the
Republic of Indonesia from taxes or custom duties.
ARTICLE VI
Terms and Conditions
The soft loan will be expressed in Euro and shall be reimbursed by the
Government of Indonesia subject to the following concessional terms:
1) Nominal interest rate: 0,5% per year;
2) Repayment period: 36 years;
3) Grace period: 24 years.
The Government of the Republic of Indonesia shall lend the soft loan to
the Indonesian Footwear Service Centre (IFSC).
ARTICLE VII
Obligations
According to the procedure followed by the Italian Cooperation for the
concession of the soft loans, the main steps to be followed before the
disbursement are listed as follows:
7.1
The Government of the Republic of Indonesia shall forward the bidding
plan and a draft of bidding documents, complying with the Manual of
Instructions adopted by the European Commission on 1oth November,
1999 (Annex 1), to DGCS (through the Italian Embassy in Jakarta) for a
"no objection" appraisal;
7.2
The DGCS (through Italian Embassy in Jakarta) shall inform the
Government of the Republic of Indonesia of its "no objection" on the
:/ ........
above documentation criteria and procedures;
7.3
The Government of the Republic of Indonesia shall send to DGCS a copy
of the bidding invitation at least four weeks (28 days) before bid notice in
order to allow the advertising of the invitation through Italian newspapers;
7.4
The Government of the Republic of Indonesia executes the bid in
accordance with the approved bidding plan and bidding documents and
submits to DGCS a summary of the selection procedure and the draft
contract. All bidding documentation shall be maintained for consultation,
upon request, by DGCS;
7.5
The DGCS will verify the selection procedure and the contract and, in case
of positive evaluation, will submit it to the Steering Committee of the
Directorate General for Development Cooperation to issue its final
approval;
7.6
The Italian Ministry of Economy and Finance shall issue the Project
Financing Decree, authorizing Mediocredito Centrale to sign the relevant
Financial Convention;
7. 7
Mediocredito Centrale and the Ministry of Finance of the Republic of
Indonesia shall sign a Financial Convention which will provide the legal
framework between the Lender and the Borrower. The Financial
Convention will constitute the basis for the actual disbursement and
repayment.
ARTICLE VIII
Monitoring and Control Procedures
The Contracting Parties commit themselves to implement the appropriate
monitoring and control procedures on the appropriate use of the soft loan in
accordance with the conditions mentioned in the present Agreement and in the
Project's Feasibility Study.
:/...... ..
ARTICLE IX
Controversies
Possible controversies that may arise in the course of Programme
implementation shall be submitted to the Parties for resolution through
discussion between MOlT and MAE I DGCS via Embassy.
ARTICLE X
Impediments and Force Majeure
10.1 In case of impediments to the Programme due to causes of force
majeure recognized by both Parties according to practice (such as war,
flood, fire, typhoon, earthquake, labour conflicts and strikes, acts of any
government, unexpected transportation difficulties and other causes) or in
case of peril or unsafe conditions for the expatriate personnel, the
following provisions shall apply:
a. In case the duration of the impediment to the Programme is less than
six months, the Parties shall hold consultations;
b. In case the impediment to the implementation of the Programme is over
twenty-four months, the Parties shall discuss on the continuation of the
Programme and define an agreed course of action. In case the
continuation of the Programme is not feasible, the Parties shall agree
on the destination of the residual funds. In any case, the Indonesian
side commits itself to reimburse according to the terms of the Financial
Convention the amounts already disbursed by Mediocredito Centrale.
10.2 In case some components of the project are affected by impediments or
force majeure, all related activities and concerned funds shall be
suspended until impediment has been removed. If impediments last more
than twenty-four months, the Parties shall agree on the destination of the
residual funds. Components non-affected will continue their activities until
completion and the funds concerned shall remain available.
:/....... .
ARTICLE XI
Resolution of the Memorandum by the MAE I DGCS
11.1
The MAE I DGCS reserves the right to terminate this Memorandum in the
following cases:
a) Failure of the Programme to reach its objectives or of Indonesian
Authorities to produce the pertinent documentation;
b) Severe fault by MOlT. Severe faults are unmotivated and prolonged
delays (more than nine months) respecting the commitment of the
Indonesian side as to threaten the achievement of the Programme's
objectives;
c) Protracted impediment or force majeure as per article X.
11.2 In case of severe fault, as per point b. of the above paragraph, the MAE I
DGCS shall notify the event in writing to the MOlT inviting it to take all
necessary actions within maximum ninety days from the date of
notification. After this time limit. MAE/ DGCS reserve itself the right to
terminate immediately this Memorandum. In this case the provisions
contained in Article IX and X shall apply.
11.3 In the other two cases mentioned above, MAE I DGCS may decide
unilaterally the termination of this Memorandum, notifying through a
Verbal Note to MOlT, with at least three months in advance. In all cases,
after such notification, MOlT shall stop all activities of the Programme,
unless otherwise agreed between the two Parties.
11.4 In case of termination of this Memorandum, the Indonesian side shall
reimburse the funds already disbursed by Mediocredito Centrale,
according to the relevant provisions of the Financial Convention.
ARTICLE XII
Joint Commitments
The Contracting Parties will co-operate actively to ensure the Project
meets its objectives.
:/....... .
ARTICLE XIII
Amendments
The present Memorandum of Understanding may be amended at any time
by mutual consent of the Contracting Parties through an Exchange of Notes via
diplomatic channel.
ARTICLE XIV
Entry into Force, Duration and Denunciation
The present Memorandum shall enter into force at the receiving date of the
last of the two notifications by which the Government of the Republic of
Indonesia and the Government of the Italian Republic notify the completion of
the respective internal procedures. It shall remain into force until the last
payment to Mediocredito Centrale is made.
In witness thereof, the undersigned Representatives, duly authorized by
their respective Governments, have signed this Memorandum.
Done in Jakarta on January 30, 2003 in duplicate in English language, both
texts being equally authentic.
For the Government
of the Republic of Indonesia
Signed
AGUS TJAHAJANA WIRAKUSUMAH
Director General of Small and
Medium Industry and Trade
Ministry of Industry and Trade
For the Government
of the Italian Republic
Signed
H.E. FRANCESCO MARIA GRECO
Ambassador of Italy
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE ITALIAN REPUBLIC
CONCERNING THE CONCESSION OF A SOFT LOAN FOR THE
"INDONESIAN FOOTWEAR SERVICE CENTER (IFSC)
SUPPORT PROJECT"
The Government of the Republic of Indonesia, represented by the
Directorate General of Small and Medium Industry and Trade of the Ministry of
Industry and Trade (MOlT) and The Government of the Italian Republic,
represented by the Directorate General for Development Co-operation (DGCS)
of the Ministry ofF oreign Affairs both hereinafter referred to as the Parties.
Recalling the traditionally friendly relations between the Italian Republic
and the Republic of Indonesia;
Stressing the importance of a sound economic and social cooperation
between the two countries;
0
Reminding the request of the government of the Republic of Indonesia,
through the Ministry of Industry and Trade, for a soft loan to be utilised for the
above mentioned project;
Considering the pledge of the Italian Government, as stated during CGI
meeting in 1996 to finance a soft loan amounting to 5.164.568,99 Euro for the
Leather Industry Development in the Republic of Indonesia;
Considering the pledge of the Italian Government, as stated during CGI
meeting on 1-2 February 2000, for an additional soft loan amounting to
5.164.568,99 Euro;
:/...... ..
Considering the approval of the Steering Committee of the Directorate
General for Development Cooperation (DGCS) of the Ministry of Foreign
Affairs of the Italian Republic on May 28, 2002 upon the concession of a soft
loan up to a maximum of 5.550.000,00 Euro in favour of the Republic of
Indonesia to be utilised for the financing of the project;
Taking Into account the request of the Government of the Republic of
Indonesia, through the Ministry of Industry and Trade for a soft loan to be
utilised for the project of Leather Industry Development;
Taking into account the Minutes of Meeting signed by the Parties in
Jakarta on May 19, 2000;
Taking into account the Minutes of Meeting signed by the Parties in
Jakarta on December 8, 2000;
Taking into account the Minutes of Meeting signed by the Parties in
Jakarta on August 30, 2001;
Considering that on May 28, 2002, the Steering Committee of the
Directorate General for Development Cooperation (DGCS) of the Ministry of
Foreign Affairs of the Italian Republic has approved the concession of a soft loan
up to a maximum of 5.550.000,00 Euro in a favour of the Republic of Indonesia
to be utilized for the financing of the project, both Parties have agreed as
follows:
ARTICLE I
Definitions and Acronyms
This MoU is Composed of 14 Articles.
Words and acronyms mentioned below in the text have the following meaning:
Project:
IFSC:
MOlT:
The project for providing assistance to SME' s in the footwear
industry for creating a Service Technical Centre approved by the
Steering Committee of the Directorate General for the
Cooperation with Developing Countries of the Italian Ministry of
Foreign Affairs;
Indonesian Footwear Service Centre;
Ministry of Industry and Trade of the Republic of Indonesia.
:/ ....... .
ARTICLE II
Project Objectives
The Parties agree to cooperate, within the framework set up by this
M.o.U., for the following objectives: the construction of Centre for training and
service for the Indonesian footwear small and medium enterprises sector and the
improvement of the social and economic conditions of the beneficiaries, by
establishing the Indonesian Footwear Service Centre (IFSC) with following
assignments:
2.1. Functions:
a) As footwear training and education centre in Indonesia;
b) As footwear information centre in Indonesia for disseminating
information concerning market, technical, business competition and
others;
c) As research and innovation centre in the field of leather footwear with
competitive capability;
d) Providing consultancy services and solution for footwear industry in
Indonesia.
2.2. Objectives:
a)
b)
c)
d)
Increase of industrial production and export capacity;
Increase of the design and quality of the footwear production;
Increase of the selling price and the reduction of the production cost;
Increase of the knowledge and the techniques of the production and
management for the footwear activities;
e) Increase of the education for sector workers and the acquisition of the
congruent social behaviours with the objective of improving living
conditions.
ARTICLE III
Commitments of the Indonesian side
The Contribution to the Project from Indonesian side is estimated in
approximately 1.150.000,00 Euro with the assurance to the project for the
necessary authorizations for the use of 5.000 sq. meters of the land including all
necessary infrastructure, buildings, complete structure for the Centre and the
payment of the Indonesian staff for operating and managing role:
:/....... .
3 .1 The Ministry of Industry and Trade cq. Directorate General of Small and
Medium Industry and Trade is responsible for operating and maintaining
funds of IFSC;
3.2 The Ministry of Industry and Trade in cooperation with Local Government
is responsible for the creation of the relevant legal institution;
3.3 The relative cost to the purchase of the land and the construction of
infrastructures and the buildings will be borne by the local administration.
ARTICLE IV
Budget
The Italian Government commits itself to authorize the Mediocredito
Centrale S.p.A. (Mediocredito Centrale) to grant the Government of Indonesia,
subject to the finalisation of further procedural steps and arrangements
mentioned in the present MoU, a soft loan not exceeding 5.550.000,00 Euro to
be used for the implementation of the program, as defined in the project
appraisal document.
The Government of the Republic of Indonesia commits itself to lend the
aforementioned amount to the Ministry of Industry and Trade, which is entrusted
with the Implementation of the project.
The above-mentioned amount of 5.550.000,00 Euro is to be understood as
a ceiling, also in case the global price of the contract exceeds it. Should the
global price be less or equal to 5.550.000,00 Euro the amount of the Italian
financing price be less or equal to 5.550.000,00 Euro, the amount of the Italian
financing will be equal to the value of the contract(s) awarded. Anyway,
the Italian Government also reserves the right to withdraw the concession of the
soft loan in case of non-compliance with the conditions and procedural steps
mentioned in this MoU.
ARTICLE V
Supplies and Services
The soft loan is to be solely used for acquiring supplies and services
:/...... ..
through competttlve bidding procedure complying with the Manual of
Instructions adopted by the European Commission on November 10,1999,
supplies and services of Italian origin related to the above-mentioned project.
The above-mentioned supplies and services may be originated in the Republic of
Indonesia or, in case of origin from other developing countries, up to maximum
value equal to 15% of the total contract price.
The above-mentioned supplies and services shall be exempted in the
Republic of Indonesia from taxes or custom duties.
ARTICLE VI
Terms and Conditions
The soft loan will be expressed in Euro and shall be reimbursed by the
Government of Indonesia subject to the following concessional terms:
1) Nominal interest rate: 0,5% per year;
2) Repayment period: 36 years;
3) Grace period: 24 years.
The Government of the Republic of Indonesia shall lend the soft loan to
the Indonesian Footwear Service Centre (IFSC).
ARTICLE VII
Obligations
According to the procedure followed by the Italian Cooperation for the
concession of the soft loans, the main steps to be followed before the
disbursement are listed as follows:
7.1
The Government of the Republic of Indonesia shall forward the bidding
plan and a draft of bidding documents, complying with the Manual of
Instructions adopted by the European Commission on 1oth November,
1999 (Annex 1), to DGCS (through the Italian Embassy in Jakarta) for a
"no objection" appraisal;
7.2
The DGCS (through Italian Embassy in Jakarta) shall inform the
Government of the Republic of Indonesia of its "no objection" on the
:/ ........
above documentation criteria and procedures;
7.3
The Government of the Republic of Indonesia shall send to DGCS a copy
of the bidding invitation at least four weeks (28 days) before bid notice in
order to allow the advertising of the invitation through Italian newspapers;
7.4
The Government of the Republic of Indonesia executes the bid in
accordance with the approved bidding plan and bidding documents and
submits to DGCS a summary of the selection procedure and the draft
contract. All bidding documentation shall be maintained for consultation,
upon request, by DGCS;
7.5
The DGCS will verify the selection procedure and the contract and, in case
of positive evaluation, will submit it to the Steering Committee of the
Directorate General for Development Cooperation to issue its final
approval;
7.6
The Italian Ministry of Economy and Finance shall issue the Project
Financing Decree, authorizing Mediocredito Centrale to sign the relevant
Financial Convention;
7. 7
Mediocredito Centrale and the Ministry of Finance of the Republic of
Indonesia shall sign a Financial Convention which will provide the legal
framework between the Lender and the Borrower. The Financial
Convention will constitute the basis for the actual disbursement and
repayment.
ARTICLE VIII
Monitoring and Control Procedures
The Contracting Parties commit themselves to implement the appropriate
monitoring and control procedures on the appropriate use of the soft loan in
accordance with the conditions mentioned in the present Agreement and in the
Project's Feasibility Study.
:/...... ..
ARTICLE IX
Controversies
Possible controversies that may arise in the course of Programme
implementation shall be submitted to the Parties for resolution through
discussion between MOlT and MAE I DGCS via Embassy.
ARTICLE X
Impediments and Force Majeure
10.1 In case of impediments to the Programme due to causes of force
majeure recognized by both Parties according to practice (such as war,
flood, fire, typhoon, earthquake, labour conflicts and strikes, acts of any
government, unexpected transportation difficulties and other causes) or in
case of peril or unsafe conditions for the expatriate personnel, the
following provisions shall apply:
a. In case the duration of the impediment to the Programme is less than
six months, the Parties shall hold consultations;
b. In case the impediment to the implementation of the Programme is over
twenty-four months, the Parties shall discuss on the continuation of the
Programme and define an agreed course of action. In case the
continuation of the Programme is not feasible, the Parties shall agree
on the destination of the residual funds. In any case, the Indonesian
side commits itself to reimburse according to the terms of the Financial
Convention the amounts already disbursed by Mediocredito Centrale.
10.2 In case some components of the project are affected by impediments or
force majeure, all related activities and concerned funds shall be
suspended until impediment has been removed. If impediments last more
than twenty-four months, the Parties shall agree on the destination of the
residual funds. Components non-affected will continue their activities until
completion and the funds concerned shall remain available.
:/....... .
ARTICLE XI
Resolution of the Memorandum by the MAE I DGCS
11.1
The MAE I DGCS reserves the right to terminate this Memorandum in the
following cases:
a) Failure of the Programme to reach its objectives or of Indonesian
Authorities to produce the pertinent documentation;
b) Severe fault by MOlT. Severe faults are unmotivated and prolonged
delays (more than nine months) respecting the commitment of the
Indonesian side as to threaten the achievement of the Programme's
objectives;
c) Protracted impediment or force majeure as per article X.
11.2 In case of severe fault, as per point b. of the above paragraph, the MAE I
DGCS shall notify the event in writing to the MOlT inviting it to take all
necessary actions within maximum ninety days from the date of
notification. After this time limit. MAE/ DGCS reserve itself the right to
terminate immediately this Memorandum. In this case the provisions
contained in Article IX and X shall apply.
11.3 In the other two cases mentioned above, MAE I DGCS may decide
unilaterally the termination of this Memorandum, notifying through a
Verbal Note to MOlT, with at least three months in advance. In all cases,
after such notification, MOlT shall stop all activities of the Programme,
unless otherwise agreed between the two Parties.
11.4 In case of termination of this Memorandum, the Indonesian side shall
reimburse the funds already disbursed by Mediocredito Centrale,
according to the relevant provisions of the Financial Convention.
ARTICLE XII
Joint Commitments
The Contracting Parties will co-operate actively to ensure the Project
meets its objectives.
:/....... .
ARTICLE XIII
Amendments
The present Memorandum of Understanding may be amended at any time
by mutual consent of the Contracting Parties through an Exchange of Notes via
diplomatic channel.
ARTICLE XIV
Entry into Force, Duration and Denunciation
The present Memorandum shall enter into force at the receiving date of the
last of the two notifications by which the Government of the Republic of
Indonesia and the Government of the Italian Republic notify the completion of
the respective internal procedures. It shall remain into force until the last
payment to Mediocredito Centrale is made.
In witness thereof, the undersigned Representatives, duly authorized by
their respective Governments, have signed this Memorandum.
Done in Jakarta on January 30, 2003 in duplicate in English language, both
texts being equally authentic.
For the Government
of the Republic of Indonesia
Signed
AGUS TJAHAJANA WIRAKUSUMAH
Director General of Small and
Medium Industry and Trade
Ministry of Industry and Trade
For the Government
of the Italian Republic
Signed
H.E. FRANCESCO MARIA GRECO
Ambassador of Italy