Selanjutnya

c

I,

I
I

DEVELOPMENT LINE OF CREDIT LOAN

BE'IWEEN

THE GOVERNMENT OF THE REPUBLIC OF INDONESIA

0

AND

THE GOVERNMENT OF CANADA

THIS AGREEMENT MADE IN DUPLICATE THE

JQTH DAY OF OCTOBER, 1972.

BETWEm THE GOVERNMENT OF THE REPUBLI C OF INDONESIA
(hereinafter called "Indonesia")
and -THE GOVERNMENT OF CANADA (hereinafter referred to
as "Canada") as represented by the Secretary of
State for Exter nal Affairs acting through the
Pr esident of the Canadian International Development
Agency (hereinafter r eferred to as "CIDA")

WHEREAS Indonesia wishes to purchase in Canada certain equipment and
conunodities as described in Annex "A" of this Agreement, AND WHEREAS
Canada is willing to make a development loan available f or this purpose
on the terms and conditions provided herein;

NOW THEREFORE the parties

hereto agr ee as follows:
0

ARTICLE I

The Loan
Section 1 . 01
Canada shall make available to Indonesia on the terms and conditions
hereinafter set forth a development It>an in an amount not to exceed
six million Canadian dollars ($6, 000, 000).
Section 1 . 02
Canada shall open on its books a Loan Account in the name of Bank Indonesia
acting for and on behalf of the Government of Indonesia (hereinafter
r eferred to as "Bank Indonesia"), and shall credit t o such account the
full amount of the Loan.

Withdrawals, payments and dis bursements may

be made from the Loan Account in accordance with the provisions of this
Agreement.

...../ .....

- 2 -

Section 1.03
This Loan shall be free from interest, corrmitment or service charges.
Section 1. 04
Repayment of the nrincipal amount of the Loan shall be made in eighty
semi-annual instalments of seventy- five thousand Canadian dollars ($75,000)

0

each, due and payable on the l ast day of September and March in each year
coJIDilencing on September 30, 1982 and ending on March 31, 2022.
Section 1.05
Indonesia shall have the right to prepay principal in whole or in part
on any date without notice to Canada.

The amount of any prepayment shall

be applied qn the instalments of principal then remaining payable in the
reverse order of their maturity.

Section 1 . 06
All payments and prepayments, as set forth herein, shall be made by
Indonesia in Canadian dollars to the Receiver- General of Canada, and shall
be deemed to have been paid when received by the Receiver- General of Canada.
Section 1.07
The principal of the Loan shall be paid without any deductions whatsoever
and more particularly shall be free from any tax.es, char ges or other
restrictions imposed under the laws of Indonesia and those in effect in
i ts territories or sul:x:livisions .
Section 1 . 08
Indonesia agrees that it will negotiate, at the r equest of Canada, concerning
acceleration of payments to the Receiver- General of Canada to be made under
this Agreement at any time after six ( 6) months before the first payment
of principal becomes due and payable.

Indonesia and Canada shall mutually

determine whether, on the basis of the capacity of Indonesia to service

...../ .....

- 3a more rapid liquidation of its obligations in the l i ght of its internal
and external financial aid and economic position, such an acceleration
should take place.

ARTICLE II

c

Section 2. 01
Except as may otherwise be specifically agreed to by Canada, the pr oceeds
of the Loan shall be used by Indonesia exclusively for the purchase of
cer tain equipment and corrmoditi es in Canada and for the payment of ocean
freight and marine insurance for such equipment and corrmodities.

All

items required to carry out the Loan Agreement shall be as described in
Annex "A" , and procedures for their procurement and payment shall be
those set forth in Annex "B" , ooth Annexes being subject to such modification

as may be agreed upon between Canada and Indonesia.
Section 2. 02
The equipment and coilIIlodities to be financed from the proceeds of the Loan
shall be procured in Canada and shall have an overall Canadian manufactured
content of not less than sixty- six and two- thirds per cent (66 2/3

%).

Section 2. 03
Equipment and commodities contracted for prior t o the effective date of
this Agreement may not be financed out of the proceeds of the Loan except
as may otherwise be agreed to by Canada.
Section 2. 04
The equipment and commodities supplied under this Agreement are for domestic
Indonesian conslllllption and shall not be re- exported by Indonesia.
Section 2.05
Proceeds from the Loan shall not be used by Indonesia to meet the costs of

...../ .....

- 4any taxes, f ees or customs duties imposed directly or indirectly by
Indonesia on the i t ems procured.

ARTICLE Ill
Withdrawals of Proceeds of Loan
Section 3.01
Withdrawals f r om the Loan Account shall be for payments to Canadian suppliers
for imports by Indonesia of equipment and commodities eligible under this
Agreement and for the payment of ocean f r eight and marine insurance for
such equipnent and commodities.

Such payments will be made under irrevocable

l etters of credit, expressed in Canadian currency, issued by Indonesian
foreign exchange banks designated by Bank Indonesia through designated
correspondent Canadian banks.
Section 3 . 02
Withdrawals shall be deemed t o occur on the dates on which reimbursements
are made from the Loan Account to the designated Canadian bank for the
payments to suppliers referr ed to in Section 3. 01.

Section 3 . 03
Subject to the conditions and limitations set forth , Indonesia shall be
entitled to withdrawals from the Loan Account in such amounts a s are
'if

J

r equired to meet the reasonable costs of the conmodities in Annex "A"
and the costs of ocean freight and marine insurance for such commodities,
as these become due and payable.
Section 3 . 04
As set forth in Annex "B" hereto , for public sec tor pr ocurement, the
Indonesian procuring agency shall pr ovide Canada with a copy of each
invitation to tender, contract and/or purchase order for the pr ocurement
of commodities under this Loan Agreement in respect of which any withdrawal

...../ .....

- 5 is to be made.

Private sector procurement may be without tender for

individual transactions not exceeding $200, 000 (Cdn. ) each, unless
otherwise agreed to by Canada.

Bank Indonesia and/or the relevant

Indonesian foreign exchange bank, designated by Bank Indonesia, shall
pr ovide Canada with a copy of each irrevocable letter of credit issued
under this Agreement.
Section 3.05
The Indonesian procuring Agency shall furnish, or cause to be furnished
to Canada such doclllllents and other evidence in support of the letters
of credit referred to in Section J . 01 as Canada may reasonably request,
such evidence to be sufficient in form and substance to establish that
the amounts to be withdrawn ar e properly related to the purposes of the
Loan Agreement.

ARTICLE IV
C>

Cancellation and Suspension
Section 4. 01
Indonesia may, by sixty (6o) days • notice to Canada cancel all or any
part of the Loan not withdrawn by Indonesia prior to the giving of such
notice and not required to meet outstanding financi al obligat ions to
suppliers or finns incurred under the Loan.
Section 4 . 02
If any of the following events occur and continue to occur, Canada may,
by sixty (60) days ' notice to Indonesia, specifying the reason for
suspension, suspend in whole or in part the right of Indonesia t o obtain
withdrawals from the Loan Account:
a)

A default on the part of Indonesia in the perfonnance of any
undertaking under this Agreement;

...../ .....

- 6 b)

Any situation which renders it impossible for Indonesia to perform
its obligations under this Agreement.

If suspension occurs and continues for thirty (30) days , Canada may by
sixty (60) days' notice to Indonesia, cancel that part of the Loan not
withdrawn pr ior to the giving of such notice, and not required to meet
outstanding financial obligations to suppliers or finns incurred under
the Loan.
Section 4.03
Unless otherwise agreed to by Canada, if the full amount of the Loan is
not spent by September 30, 1973, the balance will be cancelled and the
final instalments of the repayment to be made by Indones ia shall be
reduced accordingly.

ARTICLE V
General Undertakings
Section .5.01
Indonesia and Canada shall ensure that this Agreement is carried out with
due diligence and efficiency and each shall furnish to the other all such
information as shall reasona bly be requested.
Section .5.02
Indonesia shall afford accredited representatives of Canada all reasonable
opportunities to visit any part of the terr itories of Indonesia for
purposes relat ed to this Loan Agreement .
Section .5.03
The present Agreement and any Annex hereto shall be free from any taxes,
fees or other charges that may be imposed under the laws of Indonesia
and those in effect in its territories or administrative, political or
juridical divisions or sul:xiivisions in connection with the execution,

...../ .....

- 7issue, delivery and registration thereof.
Section 5.04
Indonesia shall at all times pr ovide or cause t o be provided as needed
all other monies and r esources which may be required to implement this
Agreement.

0
Section 5.05
For the purposes of this Agreement and the Annexes hereto , Indonesia shall
include any agent or agents authorized by and on behalf of Indonesia with
regard to its rights , duties and obligations herein.

ARTICLE VI
Section 6 . 01
Any communication or doctUDent given, made or sent by either Indones ia or
Canada pursuant to the present Agr eement or any Annex thereto shall be in
writing and shall be deemed t o have been duly given, made or sent to the
party to which it is addressed at the time of its delivery by hand, mail,
telegram cable or r adiogram at its respective address , namely:

0

For Indonesia

Bank Indonesia

Mail Address:

Jalan Kebon Sirih No. 82- 84
Jakarta, Indonesia

Cable Address:

Delegasi, Jakarta

For Canada

Canadian International Development
Agency

Mail Address:

122 Bank Street
Ottawa, Ontario, Canada, KlA OG4

Cable Address :

CIDA, Ottawa

and/or

Canadian Embassy

Mail Address :

Jalan Budi Kemuliaan No . 6
Jakarta, Indonesia

Cable Address:

Domcan, J'akarta

...../ .....

- 8 Section 6.02
Any one of the parties hereto may, by notice to the other party, change
the address to which any notice or r equest intended for the party so
giving such notice shall be addressed.
Section 6.03
All conrnunications and documents subnitted to Canada shall be either the
English or the French language and all technical specifications therein
shall be in tenns of Canadian standards except where Canada may otherwise
agree in writing.
Section 6.04
This Agreement may be simultaneously executed in several counterparts each
of which so executed shall be deemed an original.

IN WITNESS WHEREOFb the parties hereto have caused to

be subscribed the

signatures of their authorized repres enta tives at the City of Jakarta
as of the day and year first above written.

On behalf of the Government of

On behalf of the Goverrunent

the Republic of Indonesi a

of Canada

Cl
Signed

Signed

Adam Malik
Mj.nister of Foreign Affairs

W. T. Deh..crth
Ambassador

-

- 2 -

5.

The Canadian compani es invited t o tender shall be instructed to :

a)

include in their t ender a declaration of the Canadian content of
the products they are offering for purchase;

b)

send copies of all tenders t o CIDA at the same time as they are
f orwarded to the recipient Indonesian procurement agency ; (the

0

copies of tenders received by CIDA will be treated as a closed tender
call and not opened until the dates established by the r ecipi ent);
c)

complete a Canadian Content Fonn and f orward it to CIDA with each
copy of tender;

d)

suhnit t o CIDA, technical specifications complying with the Canadian
quali t y standards for the pr oducts to be supplied.

6.

If other than the lowest tender with acceptable Canadian content is

to be approved, the concurrence of CIDA shall be obtained bef or e the
purchase contr act

ｾ ﾧ＠

issued.

7. CIDA may upon receipt of f ormal advance application, waive the
r equirement for competiti ve tender s in the situations specified hereunder:
a)

when procurement is pr oposed under certain supplier/importer
r elationships and the buyer is a r ecognized customer of the supplier;

0

b)

when procurement concerns a pr oduct which is only available from a
singl e source ;

c)

when procurement concerns a pr oduct which by nature and specifica tion
i s peculiar to a specific manufacturing pr ocess or end product;
'

d)

when pr oducts are to be procured under such other condi tions which
appear t o CIDA to merit a waiver f r om the t endering pr ocedures •

...../ .....

I

ANNEX "B" TO THE DEVELOPMENT LJNE OF CREDIT LOAN

Between the Government of the Republic of Indonesi a
And the Government of Canada

Procurement Procedures

c
1.

Products eligible for financing under this Loan Agreement may be

procured by either the public sector ( goverranent deoartments and/or
agencies) or by the private sector under the following respective
procedures :
Public Sector
2.

All public sector pr ocurement shall be subject t o competitive tender

procedures unless prior approval for waiver is obtained from CIDA.

3. Before any purchase contr acts are entered into , the prospective
contracting party
ｳｾｬ＠

invite tenders from a representative number of

Canadian suppliers of the r equired pr oducts unless otherwise agreed to
by CIDA.

4. Lists of Canadian suppliers may

be obtained from the Canadian Embassy

in J akarta or from CIDA in Ottawa.

Copi es of each tender call, a list of'

compani e s invited to tender ,
｡ｾ､＠

the assessment of the tenders received

will be forwarded to CID.A and/ or the Canadian Embassy, Jakarta.

Prior

to the issuance of a pirchasing contract, Bank Indonesia w.i.11 obtain
confirmation from Canada to the use of the Loan for each transaction
through CIDA and/or the Canadian Embassy, Jakarta which will constitute
clear ance for the transact ion for Canadian content and tendering r egulations •

...../ .....

- 3 -

519(i) , 519(iii); 520; 521; 599; 676; 677; 678; 685; 687(i); 709;
742, 742( i ) ; 838(iii); 84l(ia); 880; 905, 905(i); 905(ii); 906,
906(i); 906(ii) ; 907, 907(i), 907(ii) ; 910; 911; 912; 922; 923;
924(ii) ; 925; 926, 926(i); 93l(ii); 933(ii); 936; 938; 939; 940; 941;
942; 943.
Anns, armaments, guns, a.rmnunition, and all other equipment or materials
for military use or for the manufacture thereof.
I

-

All atomic energy materials and equipnent.

I
I

I

I
I

i

At CIDA 1 s request , substantiation may be required from time to time
that the products being purchas ed under this Agreement are r equired
for developmental purposes by Indonesia.

CID.A res erves the r iglt. to

amend this negative list as may be r equired and as may be r equested
by Indonesia.

0

- 2 -

- 12, 12(ii) (iia); 24; 36(i); 39(iia); 58; 59(ii); 6l(i); 71;
123; 174; 175; 184(iib); 20l(ii); 202, 202(i); 203(i); 237;
281; 283; 284; 285; 286; 337; 343; 344(ii); 346(ia)(ib); 347;
349; 351, 35l(i) , 351(2); 355, 355(ii) , 355(ii-a-b); 742; 742(ii) ;
743; 764; 838(ii); 839(i); 883; 900(i) ; 90l(i); 902(i); 903(i) .

0

-

32; 42(i) , 42(iii); 43; 47; 85; 185; 190; 204; 255; 264; 309(ii);
333; 338; 344(ii); 453; 519 ; 899; 900( ii); 90l(ii); 6o2(ii);
903(ii) .

-

4; 8, 8(i), 8(ii); 9; 10; 11; 12, 12(ia), 12(ib) , 12(ii); 13;
14; 15; 16; 17; 18; 19; 20; 21; 23; 26; 27; 28; 29; 30; 31; 33;
34; 35; 36; 37; 38; 39, 39(i), 39(iia) , 39(iib); 41, 41(i) , 41(ii);
43(ii); 44; 45; 46; 47; 48, 48(i), 48(ii); 49, 49(i), 49(ii);
50(i); 51; 52; 52(i); 52(iia) , 52(iib) ; 53; 54; 55 · 56; 6l(ii) ;
62; 63 ; 64; 65; 66; 67, 67(i), 67(ii); 69; 73; 74; 76, 76(i) ,
76(ii); 77; 78, 78(i), 78(ii); 79; 80, 80(ii); 81; 82; 83; 84;
86; 87; 88; 89; 90; 91; 92; 93, 93(i) , 93(ii); 94; 95; 96, 96(i) ,
96(ii); 97; 98; 99; 100; 101, lOl(i) , lOl(ii); 102; 103; 104;
105; 106; 107, 107(i) , 107(ii); 108; 110; 111, lll(i), lll(ii);
112; 113; 114; 115; 116; 117, 117(i), ll7(ii), 117(iia), ll7(iib);
118, 118(ii) , 118(iia); 119; 120; 121, 12l(i), 12l(ii); 122; 129;
130; 134; 159(ii) , 159(iii); 194(i); 202(ii); 203 , 203(ii); 205(ii) ;
208, 208(i) , 208(ii); 212; 213; 290; 295; 298; 334(i); 345;
346(iii) , 346(iv) , 346(v) , 346(vi) , 346(vii); 352(v), 352(vi),
352(vii); 352(viii); 356(ij), 356(k), 356(v) , 356(vii ), 356(ix),
356(x) , 356(xii) , 356(.xiii) , 356(xiv); 357, 357(ii); 358; 36o(iv) ,

36o( v) , 36o( vi) , 360( via) , 36o( vib) , 360( vii) , 360( viii) , 36o( ix);
411; 413; 414; 429; 430; 431; 432; 433; 434; 435; 438; 439; 474;
475; .503; .508; 514; 516, 516(i), 516(ii), 516(iii); 517; 519,

...../ .....

ANNEX "A" TO THE DEVELOPMENT LINE OF CREDIT LOAN
Between the Government of the Republic of Indonesia
And the Goverrunent of Canada

Use of the Loan
The proceeds of the Loan are to be utilized exclusively t o finance the
purchase f r om Canadian suppliers of certain pr oducts which are required
for development purposes in Indonesia and for the payment of ocean freight
and marine insurance for such nroduct s pr ovided that the total value of
items supplied under the Loan shall not exceed six million Canadian
dollars ($6 ,000,000).

Approved pr oducts purchased under this Loan may

be ordered in any amount and in any combination of categories within the
ceiling of the $6.0 million total and within the period in which the Loan
is in force pr ovided that (a) purchases under the Loan shall have a
clllllUlative average of sixty- six and two- thirds (66 2/3) per cent Canadian
manufactured content, and ( b) unless otherwise agreed to by CIDA,
purchases of raw and semi- processed materials and corrmodities shall not
exceed $3 .0 million, and (c) the products are eligible for export under
Canadian export regulations and are eligible for import under Indonesian
import regulations .

For the sake of efficient shipnent, Canada r eserves

the right to es tablish certain minimum quantities or orders for various
pr oducts .

In the case of newsprint and chemical fertilizers , the minimum

value of orders supplied should be $50, 000 and $.500 ,000 respectively.
In the case of all other pr oducts the minimum value of the orders should
be $5, 000.
Negative List
The following products shall not be eligible for financing under this Loan:
- Items from A, B, C and D l ists according to decree number 334/KP/X/1971
of October 29, 1971, f r om the Minister of Trade of Indonesia:
12(iia) ; 40; 42(ii); 135(i)(ii); 16S(i).

. .... I .....

- 38.

Applications for waiver, supported by rea sons therefore, must be

forivarded through the Canadian Embassy, Jakar ta t o CIDA in Ottawa.

No

procurement action shall be initiated until the notification of approval
is given by CIDA.

c

Private Sector

9.

Private Sector procurement may be without tender for individual

transactions not exceeding $200, 000 (Cdn. ) each, unless otherwise agreed
to by CIDA.
10. Prior to shipment of products, the Canadian supplier shall complete
a Canadian Content Form and forward it along with technical specifications
complying with Canadian quality standards and all supporting documentation,
as s pecified in the Letter of Credit, to CIDA for approval.
Payment Procedures for Eligible Products Under This Loan Agreement
11.

Bank Indonesia agrees to issue a general instruction to accredited
""

foreign exchange banks in Indonesia that Letters of Credit opened on behalf
of Indonesian importersstipulate that advice by the Canadian correspondent
bank of the credit to the Canadian suppliers shall be subject to confirmation
by CIDA.

12.

Letters of Credit shall instruct Canadian suppliers to prepare and

sul::mit for payment to the designated Canadian correspondent bank all
necessary documents, incl uding negotiable bills of lading, commercial
and marine insurance invoices as well as non- negotiable and duplicate copies
of each of t he above.

••• •o/ •••••

- 413.

The Canadian supplier or the accredited Canadian selling agent

for Indonesia shall be responsible for :
a)

arranging and paying for ocean freight and insurance;

b)

inspection of the products prior t o packing and shipping.

14.

The Government of Indonesia shall be r esponsible for the pr eparation

and sutmission of cla:ims to Canadian suppliers for short shiµnents , and
for the preparation and subnission of marine insurance claims in t he event
of losses or· damage to comnodities while in transit.
15.

Statements of disbursements will be prepared by CIDA and forwarded

to Bank Indonesia at six- month intervals, normally the first of March
and the first of September of each calendar year until the Loan Agreement
ha s been terminated.
16.

For the purposes of this Loan Agreement , the designated Canadian

correspondent BanksCfor Indonesia shall be the Bank of Montreal and the
Toronto- Dominion Bank and the Indonesian f oreign exchange banks shall be
the f ollowin,g:a)

Offices throu ghout Indonesia of:
Bank Indonesia
Bank Ekspor Impor Indonesia
Bank Rakyat Indonesia
Bank Bumi Daya
Bank Dagang Negara
Bank Umum N'asional P. T.
Bank Negar a I ndonesi a 1946
P. T. Bank Bali
P. T. Bank Dagang Nasional Indonesi a
P. T. Bank Perdania
P. T. Pan I ndonesi a Bank

...../ .....

- .5 -

b)

Jakarta O:f:fices o:f:
American Express Internati onal Banking Corp.
First National City Bank
Bangkok Bank Limited
Bank o:f America
Chase Manhattan Bank
Bank o:f Tokyo Limited
Hong Kong and Shanghai Banking Corp.
Chartered Bank
Algemene Bank Nederland N.Y.
Deutsch Asiatische Bank

0