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Date: 26/06 / 01 Time: 6:53:4 6 PM
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MEMORANDUM Q.f UNDERSTANDING
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BETWEEN
THE DEPARTMENT OF MARINE AFFAIRS AND FISHERIES
THE REPUBLIC OF INOON.E SIA
AND
THE KEL GROUP (Represented .b y KEL Aerospace Pty Ltd)
AUSTRALIA
CONCERNING
COOPERATION TO SUPPORT THE CONCEPT OF A BUILD.OWN-OPERATETRANSFER (B.0.0.T) PROJECT TO SUPP·L Y THE MCS SYSTEM.


The Indonesian Department of Marine Affairs and Fisheries and The KEL Group,
represented by KEL Aerospace Pty Ltd (KEL) of Ashburton, in the State of Victoria,
Australia, hereinafter are referred to as the Parties.

Pursuant to the prevailing laws and regulations in Australia and Indonesia as well
as the procedures and policies of the Government of Australia and the Government
of Indonesia concerning international technical cooperation;
BOTH PARTIES HAVE AGREED AS FOLLOWS;
ARTICLE I
Objective of cooperation

The purpose of this MoU is to establish and to set down principles under which
cooperation_ may occur between the Parties, in order for KEL to successfully bring
about a 'Build-Own-Operate-Transfer' (B.0.0.T.) Project that will support the
Monitoring Control and Surveillance (MCS) objectives of the Department of Marine
Affairs and Fisheries and will create an appropriate position for the KEL Group and
its future partners or colleagues, which will enable the B.0.0.T Project to be viable.

ARTICLE II
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The 'principles of cooperation' included in this MoU are as follows:
2. i

The Department of Marine Affairs and Fisheries recognises the unique
capabilities of The KEL Group, especially KEL Aerospace Pty Ltd, in the
field of Maritime Surveillance, Understanding and Experience of

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Dat e: 26/06/01 Time: 6:53:46 PM

Cooperation in Indonesia, Reputation for Through Life Support and Training
of Local Operators and Knowledge of and Access to key Australian contacts
and Organisations that might support and cooperate with the development
of an Indonesian Civil Maritime Surveillance System (CMSS).
2.2

The KEL Group recognises the importance of the Department Marine Affairs
and Fisheries in Indonesia, together with the vast amount of work that

already has been performed by this Department in the area of Monitoring
Control and Surveillance (MCS).

2.3

The KEL Group already has been working for more than 1 year developing
the B.0.0.T. Project specifically for the CMSS and after making
presentations to key personnel within the Department of Marine Affairs and
Fisheries, which generally have been found to be acceptable and attractive
to the Department, KEL now is formally 'recognised' under this MoU for its

work in that area.

2.4

The Department of Marine Affairs and Fisheries and The KEL Group should
further develop the principle of the, B.0.0.T. Project for the CMSS, including
the prospect of the Department and The KEL Group working in close
cooperation during the realisation of this Project if it shall proceed.


2.5

The KEL Group is presently evaluating suitable sources of finance for the
CM SS B. O. O. T. Project and will keep the department advised of progress in
this area. Such finance sources might i nclude Project Revenue (Licences
and other, expanded, Fishing Industry Income), Direct Income from Fishing
Licences granted by the Department, Concessional Finance through
Indonesian Yayasans, Partial 8.0.0.T. Finance provided by Major Systems
Vendors and Capital arranged through normal channels by KEL

2.6

In return for The KEL Group providing the elements of the MCS System
including Project Definition Study (PDS), Patrol Boats, Wide Area
Surveillance System, Communication Network and Operating Support for 10
years it is understood by both parties that the Department should provide all
possible support to the KEL Group to enable it to develop and implement an
acceptable independent Income Scenario for its Financier or Investor for this
B.0.0.T Project


ARTJCLE Ill
Limitation of activities of KEL and its personnel
It is clearly understood under this MoU that personnel engaged by KEL in the
cooperative program of developing this B.0.0.T Project will not engage in any
political affairs or activities in Indonesia outside those agreed upon between the
Parties under this MoU without the prior approval from the Government of
Indonesia through the State Secretariiat of the Republic of Indonesia.

Page 3 of 4

., SUTRIONO

Date: 26/06/01 l ime: 6 :53:46 PM

ARTICLE IV
Amendment, Entry into Force, Execution and Termination
4.1

Amendment of this MoU may be made at any time by mutual agreement in
writing between the Parties through consultation.


4.2

Disputes, if any, arising from the interpretation or implementation of this
MoU shall be settled amicably through negotiation between the Parties.

4.3

This MoU shall come into force on the date of its signing by both Parties and
will be evaluated on a biennial basis unless it is superceded by subsequent
Agreements or Contracts between the Parties relating to the 8.0.0 .T.
Project This MoU shall be valid for 4 years and shall be automatically
extended for 1 year unless being terminated by either Party. Should either
Party wish to terminate this MoU it should notify the other Party in writing at

least six (6) months prior to such termination.

4.4

Should this MoU terminate as stipulated in Paragraph 4.3, such termination

will not ipso facto affect the validity or duration of any implementation
agreement or contract made subsequent to the signing of this MoU.

ARTICLEV
LIMITATION OF OBLIGATION OF THE PARTIES
5.1

This MoU is designed only to introduce, establish and commence discussion
of 'principles' that might become the basis of future agreements between the
Department of Marine Affairs and Fisheries and The KEL Group.

5.2

At this time it is clearly understood by both the Department of Marine Affairs
and by The KEL Group that this MoU is a 'discussion of principles' and that
neither party is in any way obliged in any form whatsoever to perform any
act or accept any responsibility as a direct result solely of this MoU.

IN WITNESS WHEREOF, the undersigned, authorized representatives have
signed this MoU.

DONE in Canberra on the 261h day of June, 2001, in the English language, in
duplicate, both texts being equally authentic.
For Department of Marine Affairs and
Fisheries

Signed
DR Rokhmin Dahuri,
Minister for Marine Affairs and
Fisheries

For The KEL Group, represented by
KEL Aerospace Pty ltd.

Signed
Mr. Terry Kelly,
Chairman,
KEL Aerospace Pty Ltd.

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