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AGREEMENT BETWEEN 1lffi GOVERNMENT OF THE REPUBLIC OF
INDONESIA AND THE
GOVERNMENT OF THE UNITED STATE OF AMERICA
FOR THE SALE OF AGRICULTURAL COMMODITIES

The Government of the United States of America and the Government
of the Republic of Indonesia, agree to the sale of the agricultural
cormnodities specified below.

This Agreement shall consist of the

Preamble and Parts I and III of the Agreement signed June 3, 1988,
together with the following Part II.

PART II - PARTICULAR PROVISIONS

Item 1.

Cormnodity Table:

Commodity

Rice

Item II.

Supply

Approximate

Maximum Export

Period

Quantity

Market Value

(U.S. Fiscal Year)

(Metric Tons)

(U.S. Dol. Million)

FY 1989

36,000

$10.0

Payment Terms:

Convertible Local Currency Credit Terms (CLCC).

1.

Initial Payment - ten (10) percent.

2.

Currency Use Payment - ten (10) percent for Section 104(A) purposes.

3.

Number of Installment Payments - twenty-six (26).

4.

Amount of Each Installment Payment - approximately equal annual
amounts.

5.

Due Date of the First Installment Payment - seven (7) years after
date of last delivery of commodities in each calendar year.

6.

Initial Interest Rate - two (2) percent.

7.

Continuing Interest Rate - three (3) percent.

Item III.

Usual Marketing Table:
Usual Marketing

Conmodity

Import Period

Requirements

(U.S. Fiscal Year)

(Metric Tons)

Rice

1989

Item IV.

A.

33,000

Export Limitations:

Export Limitation Period:

The export limitation period shall be United States fiscal year 1989,
or any subsequent United States fiscal year during which commodities
financed under this Agreement are being imported or utilized.

B.

Commodities to which export limitations apply:

For the purposes of Part I, Article III (A) (4) of this Agreement,

the commodities which may not be exported are:

rice - rice in the form

of paddy, brown, or milled.

Item V.

A.

Self-Help Measures:

The Government of the Republic of Indonesia agrees to undertake
self-help

measures

to

improve

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the

production,

storage,

and

distribution

of

agricultural

measures

shall be

progress

in needy rural

actively

in

commodities.

The

following

implemented to contribute directly

increasing

areas

self-help

to development

and enable the needy to participate

agricultural

production

through

small

farm

agriculture.

B.

The Government of the Republic of Indonesia will continue to exert
its best efforts to extend its program of deregulation affecting the
agricultural sector through the deregulation and simplification of
investment procedures,

trading regulations

and export

and

import

procedures, which will have a substantial impact on the agricultural
sector.

C.

Verifiable indicators: The Government of the Republic of Indonesia

will provide a report within twelve months from the date of this
Agreement on the status of the formulation of such a deregulation
package, and will provide a second report within 24 months of the
date of this Agreement on the status of the package's implementation.

Item VI.

Economic Development Purposes for which Proceeds Accruing to

Importing Country are to be used:

A.

The proceeds accruing to the Government of the Republic of Indonesia
from the sale of commodities financed on CLCC terms under this
Agreement will be used for financing the self-help measures set forth
in the Agreement or for development in the agricultural and rural
development sectors, in a manner designed to increase the access of
the needy in Indonesia to an adequate, nutritious, and stable food
supply.

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B.

In the use of proceeds for these purposes, emphasis will be placed on
directly improving the lives of the neediest of Indonesia's. people
and their capacity to participate in the development of their country.

C.

For the period during which disbursements are made in accordance with
this Item VI, the government of the importing country will furnish
the government of the exporting country reports on the proceeds
received and disbursements made, certified by the appropriate audit
authority of the government and a description of the activities for
which the disbursements were made.

D.

The government of the exporting country reserves the right to review
such

activities.

detennines that a
to

receive

a

If

the

government

of

the

exporting

country

disbursement was made for an activity ineligible

disbursement

tmder

this

Item VI,

notice

of

such

ineligibility shall be given by the government of the exporting
country to the government

of the

importing country and

the two

governments shall, upon request of either, consult regarding such
ineligibility, giving due regard to the eligible uses set forth in
Item VI.A above.

If the notice of ineligibility is not rescinded by

the government of the exporting country within 90 days of receipt of
such

notice

by

the

government

of

the

importing

country,

the

government of the importing country shall identify another use for
such proceeds which is an eligible use for such proceeds under this
Agreement.

E.

The government of the importing country agrees to maintain adequate
records for not less thhll three years after the end of the supply
period of this Agreement to pennit review and audit by the government

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of the exporting country of the generation of sales proceeds and
measures taken to implement this Agreement.

The government of the

exporting country shall have the right at reasonable times to inspect
and

audit

records,

procedures

and

methods

pertaining

to

the

disbursements.

PART III - FINAL PROVISIONS

This Agreement may be terminated by either government by notice of
termination to the

other government for any reason,

and by the

Government of the Exporting Country if it should determine that the
self-help program described in the Agreement is not being adequately
developed.

Such termination will not reduce any financial obligations

the Government of the Importing Country has incurred as of the date of
termination.

This Agreement shall enter into force upon signature.

IN WITNESS WHEREOF, the respective representatives, duly authorized
for the purpose, have signed the present Agreement.

OONE at Jakarta, Indonesia, in duplicate, the

ＱＺＮｷｾｙ｜ｴｬ＠

.l;

CJ.1'

day of October, 1988.

FOR 1HE GOVERNMENT OF TIIE
REPUBLIC OF INDONESIA

FOR TIIE GOVERNMENT OF TIIE
UNITED STATES OF AMERICA

Signed

Signed

Poedji Koentarso, M.A.
Director General
of
Foreign Economic Relations,
Department of
Foreign Affairs

Michael V. Connors
Charge d'Affaires
ad interim
of the United States of
America to the Republic
of Indonesia