Selanjutnya
1
•
A.I.D. Loan No. 497-N-014
BE'IWEEN THE
REPUBLIC OF INDONESIA
AND THE
'
UNITED STATES OF AMERICA.
{
Da t ed:
ａｲｾ＠
I
1ri
1
/C/b
7
TABLE OF Q)NTENTS
Section Number
ARTICLE I
SECTION 1.01
ARTICLE II
SECTION
SECTION
SECTION
SECTION
SECTION
2.01
2. 02
2.03
2.04
2.05
ARTTCLE III
SECTION 3.01
SECTION 3. 02
ARTICLE IV
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
L oan••••••••••••••••••••••••••••••••••
1
The Loa n••••••••••••••••••••••••••••••••••
1
Te rms of Repayr.ie nt and Interest •••••••••••
1
Pa yne nt Obligatio ns •••••••••••••••••••••••
ｃｵｲ
ｾ ｮ｣ｹ＠
of Re payme nt •••••••••••••••••••••
Renegotiation of Te rms ••••••••••••••••••••
1
2
2
2
3
Conditions Precede nt••••••••••••••••••••••
3
Co ndition Pr ec e dent t o Initial Financing ••
Date for Fulfillment of Conditions Pre cedent••••••••••••••••••••••••••
3
4
Pro cure n e nt, Utiliza tion, a nd Eligibility
of Coracodities •••••••••••••• -•••••••••••
4
ｔｨ
4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
ｾ＠
ｉｮｴ
ｾ ｲ･
ｳｴ＠
Principal•••••••••••••••••••·•••••••••••••
ｔ ･ ｲｾｩｮ｡ｬ＠
A.I.D. Regulat ion ｉｾ＠
S o urc e of Procureme nt.....................
Dat e of Procure rae nt•••••••••••••••••••••••
Eligible Ite ms••••••••••••••••••••••••••••
ｐｲ
ｯ ｣ｵｲ
･ ｾ ･ｮｴ＠
for Public Sector.............
Utilizatio n o f Comr.ioditi es . . . . . . . . . . . . . . . .
Minimum Size o f Tra nsactio ns..............
4
5
Proce dur es ••••••••••••••••••••••••••••••••
7
Lett e rs of Corami tme nt a n d Disbursenent....
7
SECTION 5.01
SECTION s.02
SECTION 5.03
Re ques ts f o r Le tt e rs o f Commitme nt........
Other Forms of Disburs e n e nt...............
ｔ ｾ ｲｮｩ
｡ ｬ＠
Dat e for Reques ts for Le tt e r s
7
8
of Commitment...........................
8
SECTION 5.04
Te rmina l Da t e for Reque sts £or Disburserae nt • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Docume ntation Re quirement.................
8
8
Additional Cove nants and Warranties.......
9
ARTICLE V
SECTION
s.os
ARTICLE VI
5
5
6
6
7
SECTION 6.01
SECTION 6.02
SECTION 6.03
Re ports•••••••••••••••••••••••••••••••••••
9
Notic e of Adve rs e Developments............
Taxation on Loan Agreement a nd Paynents
9
SECTION 6.04
SECTION 6.05
Comnission , Fees, a nd Othe r Paynen ts ••••••
Financing Physical Facilities •••••••••••••
ｔｨ
･ ｲ ･ ｵｮ､
･ ｲ
ﾷｾ＠
9
10
10
ii
Section Nur.iber
ARTIQE VII
SECTION 7.01
SECTION 7.02
SECTION 7.03
SECTION 7.04
SECTION 7.05
ARTICLE VIII
SECTION 8.01
SECTION 8. 02
A.r.n •........................
11
Eve nts of ｄｾｦ｡ｵｬｴ［＠
Acc e leration •••••••••••
Te rr.iina tion of Disburs ements; Transfe r
of Goods t o A.I.D•••••••••••••••••••••••
Re funds •••••••••••••••••••••••••••••••••••
Waivers,•••••••••••4••••••••••••••••·•••••
Expe nses of Co lle ction ••••••••••••••••••••
11
11
12
13
13
Misca llaneous ••••••••••
1::
Remedies of
Use of
ｃｯｲＺｵｮｩ｣ｾｴｳ＠
ｒ ･ｰ
ｲ ･ｳ
4
••••••••••••••••••
ｩｶ
ｾ ｳ＠ ••••••••••••••••••••
••••••••••••••••••••••••••• -
ｮｴ ｡ｴ
13
14
LOAN AGREEMENT
/If/;,
AGREEMENT dat ed the
day of
Apri
J
1967 between THE REPUBLIC OF INDONESIA ("Borrower") and the United
States of America 7 acting through the AGENCY FOR I NTERNATIONAL
DEVELOPMENT ("A.I.,Do").
ARTICLE I
The Loan
SECTION 1.01.
The Loan.
In accordance with the
Economic Cooperation Agreement between the Republic of Indonesia
and the United States of America signed at Djakarta Octobe r 16,
1950 as supplemented by the Exchange of Notes on Economic and
Technical Cooperation signed at Washington and Dja!,
All commodities which
may be imported and p a id for with "Export Bonus" :foreign exchange
unde r r e gulations of the Borrower in effect on the date of this
Agr eeme nt (the
ＢｂＮｅｾ＠
List")
shall be e ligible for financing under
the Loan, subject to any exc e ptions or conditions stated in this
Agr eeme nt or in a ny
ｉｭｰｬ
ｾｮ･
ｮｴ｡ｩｯ＠
Letter or Cor.unodity ProcureMent
Instruction which muy be issued h e r e under.
Unless otherwise agreed
in writing , the official BoEo List for purposes of this Agreeme nt
shall be
list promulgated by the Borrowe r by DGc r ee s of the
ｴｨｾ＠
Minister of
ｔｲｾ､
･ Ｌ＠
No. 128/SK/IX dated Octobe r 3s 1966 and Nee
144/SK/X/1966 da t ed October 29, 19660
Other items, including
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items which nay
ｨ･
ｲ ｾ｡ｦｴ･
ｲ＠
be added to the B.E. List, shall b e come
eligible for financing under this Agreement only with the writt e n
agreement of A.I.D.
A.I.D. may d e cline to finance any specific
commodity or service when, in its judgment, such financing would
be inconsistent with the purposes of the Loan or of the Fore ign
Assistance Act of 1961, as ame nded.
SECTION 4.05.
Procureme nt for public
ｓ･｣ｴｯｲｾ＠
With
r espect to procur e ment hereunder by or for the Borrower, its
agencies and any state enterprise (a)
Notwithstanding Section 201.ll(a) of A.I.D.
Regulation I, Borrower shall avail its e lf of opportunities to
procure
u.s.
Government owned exce ss property to the maximum e xt e nt
consistent with the purposes of this Loan; and
(b)
The provisions of Section 201.22 of A.I.D.
Regulation I r e garding competitive bid procedures shall apply
unles s A.I.D. o the rwis e agrees in writing•
SECTION 4.06.
Utilizatian of Cormodities .
shall us e its b es t efforts:
Borrower
(a) to assure the prompt and effective
utiliza tion of the cor:unoditi es to be financ ed under this Agreement
in accordance with applicable Indones ian and A.I.D. l egislation,
policies, and r egulations, a nd (b) to preve nt the us e of coruJoditi es
finance d unde r this Agr e ement to pronote o r assist a ny project or
activity a ssociat e d with or financed by any country n o t include d in
Co d e 935 of the A.I.D. Geogr.:i.phic Code Book as in effldc t at the
time of such projected use , except with the prior writte n consent
of A.I.D.
- 7 -
SECTION 4.07.
Mininun Size of Tra nsactio ns.
Excep t
where authorized by A.I.D. in writing) no foreign exchange allocati on or l e tt e r of cre dit issue d pursuant to this Agr eument shall
b e in a n Olilount less tha n One Thousand Dollars ($1,000).
SECTION 4.08.
Proce dures .
A.I.De will issue a
Comr.iodity Procur e nent Instruction (CPI) for the inf o rmation and
r e f e rence o f both parti e s which will r ecord:
- a d e scription of the procur e ment a uthorized by this
Agreement;
- the applicable Comnodity Financing Procedures which,
pursua nt to this Agreement, are A.I.D. 1 s Standard
Commodity Financing Proce dur e s utilizing
ａｾｉＮｄ＠
Regula tion I e xce pt as Re gulation I may b e inco nsiste nt with the Agrecnent;
the a uthorize d me thods of financing, as set o ut in
Articl e V he reof;
specia l provisions app lica ble t o the procur e me nt
a utho rize d by this Agreement (including b o th provisions
applicabl e t o specific c onmodity codes a nd provisions
o f g e n e r a l applica tion ).
Such spe cial provisions
will b e stated in form suitable for incorpor a tion in
instructi o ns to impo rt e r s i ss u e d b y Bo rro wer.
ARTICLE V
L e tt e rs of
SECTION S.01.
ｃｯｲｾｩｴｮ
･ ｲＮｴ＠
a nd Disburs e ment
Requests for L e tte r s of Commitne nt.
To
0
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obtain disburseme nts Jf the Loan, the Borrowe r may from time to
time submit Financing Re que sts to A.I.D. for the issuance of
l e tte rs of comr:iitne nt to o ne or mo re banking instituti o ns in the
United Stat e s designated by the Borrower and satisfactory to
ａｾｉＮｄＬ＠
car.uniting A.I.D. to r e imburs e such bank or b a nks for payments n a d e ,
thr ough letters of cr e dit or otherwise, to the Borrower o r any
designee of the Borrower, pursuant to such docum e ntation requir e·
me nts as AoI.D. nay pre scribe.
Banking charge s incurr e d in
connection with l e tters of comnitment and disbursements shall be
for the account of the Borrower and may b e financ e d by the L oan.
SECTION 5.02.
Othe r Forms of
ｄｩｳ｢ｵｲ
･ｮｾ
DisburseｮｴＬ＠
me nts of the L oan also may be ma de through such other mea ns and
by such other procedures as the Borrower and A.I.D. nay agree in
writing.
SECTION 5.03 .
Comnitment.
Te rminal Date for Re ques ts f o r Le tt e rs o f
Except as A.I 0 D. may otherwise agree in writing, no
letters of corunitme nt shall
｢ ｾ＠
issue d in r e sponse to a Fina ncing
Re que st r e c e ive d after six months fr o m the date of signing of this
Agreement.
SECTION 5.04.
me nt.
Termina l Da t e for Re ques ts
Dis'.:>urs e ｦ｣Ｌｾ＠
Except as A.I.D. may otherwise agree in writing, no dis-
burs e ment o f the Loan shall be ma de a gainst
､ｯ｣ｵＮｾ･ｮｴ
submitted
｡ ｴｩｯｮ＠
after twe lve mo nths from the dat e of signing of this Agreement.
SECTION 5. 05.
Documentatio n Re q1lirer.K mt,
Regulation I
specifies in d e tail the docume nts requir e d by A.I.D. to
c
- 9 -
substantiate disburs ene nts under this Loan Agreement whe the r by
l e tte r of commitnent or other method of financing.
The document
nunber shown in the letter of commitme nt or other disbursing
authorization document shall b e the number
burs e nent documents s ubmitt e d to AoI .D.
ｲ･ｦｬＰ｣ｴＱ
on all dis-
ｾ ､＠
In addition to the above,
the Borrower shall naintain r ecords adequate to establish that the
commodities financ e d here under have been utilized in accordanc e
with Section 4.06 of this Agreement.
ARTICLE VI
Additional Co v e nants and Warranties
SECTION 6.01.
Reports.
A 0 IvD o shall be furnished with
such r eports and infornation relating to the goods and services
financed by the Loan and the performance of Borrower's obligations
under this Agreement as it may r easo nably reques t.
SECTION 6.02.
Notice of Adverse Deve lopments.
Borrower shall promptly inforn
A.r.D.
The
of any conditions which
interfere with, or threat e n t o interfere with, the r epayment of
the Loa n and the int e r es t or the performance of a ny other obiigation of the Borrower he r e unde r.
SECfION 6.03.
Thereunder.
Taxation on Loan Agree ment and Payments
This Agreement shall b e free from, and the principal
of a nd int e r e st on the Loan shall be paid without dedu ction for
a nd free from, a ny t a xation or fees imposed unde r
ｴｨ
ｾ＠
laws of the
Republic of Indones i a or laws in effect in its t e rritory.
- 10 -
SECTION 6.04.
Commission, F ees, a nd Other Paynentse
Borrower warrants and covenants that in conne ction with obtaining
the assistance to b e furnished h e r e unde r or any action under this
Agreement it h as not paid and will not pay or agrue to pay nor to
the b es t of its knowledge has there b een paid or will the r e
｢ ｾ＠
paid or agreed to b e paid by any other p e rson or e ntity, cotniilissi ons ,
fe e s, or other payrae nts of any kind,
ｾ ｸ｣
･ｰ
ｴ＠
as r e gular compensation
t o Borrower's full-time officers and emp loyee s or as compens at i on
for bona fide professional, t echnical, or comparable services to
which it is a party or of which it has knowledge and if the amount
of any such payment is
､ ･ｭｾ､＠
unrea sonable by A.I.D., Bo rr owe r
shall caus e a reduction satisfactory to A.I.D. to be made the r e in.
SECTION 6.05.
Financing Physica l Facilitie s.
Except as
A.I.D. may otherwise agree in writing, not more than $250,000.00
from the procl?e ds of the Loan shall b e made available by the
Borrower for a Single-End Us e , it being unde rstood tha t the Export
Bonus syst em , as presently constituted , operates so as to preclude
imports for a Single -End Use as de fin ed herein.
The tern "Single-
End Us e " means the purchase of commoditi e s and cor.tr.lodity r e l ated
services for us e in the construction, expansion, equipping or
alteration of a physical facility or r e lated physical f ac ilities,
but does not include us e for purposes of r e habilitation or modernization of a n existing f ac ility which does not invo lve a substantial
change in the size or charact e r of the facility.
Fo r purposes
h e reof, "relate d physical facilities" means faciliti es which ,
..
- 11 -
considering such factors
｡ｾ＠
functional int e rdependence , g eographic
proxinity, and owne rship, constitute in the judgraent of A.I.D. a
single enterprise.
ARTICLE VII
Remedies of A .I.D.
SECTION 7.01.
Events of De fault; Acceleration.
If any
one or more of the following events ("Eve nts of Default") shall
occur :
(a)
Borrower shall fail to pay in full any int e r e st
or installment of Principal when due;
(b)
Borrowe r shall f a il to conply with any other
provision containGd herein; or
(c)
Any repres e ntation or warranty made by or on
be half of Borrowe r with r espect to obtaining this loan or nade or
required to b e ma d e he r e under is incorrect in any ma t e rial respe ct;
the n AoI.Do 1 a t its option, may decl a re all or any part of the
Principal balance to be due and payable ililr.lediat e l y, and upon any
such declaration unless the d efault is cure d within sixty (60)
days the reafter, such Principal and a ll intere st accru ed the reon
shall b e come due and pa yabl e
SECTION 7802.
Goods to
ａＮｉ Ｎｄｾ＠
ｩｭ
･ ､ｩ｡ｴ
ｾ ｬｹＮ＠
Te rmination of Disburs e me nts; Transfer of
In the e v e nt that a t a ny tine :
(a )
An e v e nt of default h a s occurred;
{b)
An event occurs which A.I.D. det e rmines to be
an e xtraordina ry situation which ma kes it inproba ble that the
- 12 -
purpo s u s o f the Loa n will b e a tta ine d o r tha t Bo rrower will b e
able to p e rfort1 its obliga ti o n s he reun de r; or
(c)
Any disburs ement would b e in vio l a tio n o f the
l e gisla tio n g o v e rning A.I.D.; or
(d)
A d e fault shall h ave o ccurre d unde r a ny o the r
a gr een e nt b e t ween Bo rrowe r or a ny of its a ge ncie s a nd the Unit e d
State s o r a ny of its a g e nci es ;
the n A.IoDo, in additio n to r e rae di e s pr o vide d in A.I.D. Regula ti on
I, a t its op ti o n, may (i) d e cline to issue furthe r l e tt Grs o f
c ommitne nt o r o the r disbursing a uthoriza tions, ( ii) suspe nd o r
c a nc e l o utsta nding l e tt e rs of commitment or o the r disbur s ing
a utho riza ti o ns to the e xtent tha t the y ha v e n o t b een utilized
thro ugh the issuance o f irre vo c a bl G l e tt e rs of cr e dit, o r
t o the
e xt e nt tha t AoI 0 D. h a s not mad e dire ct r e imburse n e nt t o the
Borrowe r the r e unde r, giving n o tice to Borrowe r pronptly the r eaft e r,
(iii) d e cline t o ma k e disbur seme nts othe r tha n unde r l e tt e rs o f
c oJ:lI'ilitrae nt; a nd (iv) a t A.I.D.'s e xpe ns e , dir e ct tha t title to
g oods fin a nce d h e r e unde r sha ll b e tra nsfe rre d t o A.I.D., if the
g oods a r e in d e live r a bl e sta t e a nd have n o t b een o fflo ade d in p o r ts
of
ｾ ｮｴｲｹ＠
o f Indone si a .
SECTION 7 .03.
Refunds.
In a ddition t o a ny r e fund
othe rwis e r e quir e d by A.IoD u pursua nt t o R8gula ti on I) i f A oI.D.
d e t e rmine s that a n y d isbur sen e nt is no t suppo rte d by v a lid do cune nt a tio n in acc o rda nc e with this Agr eeme nt, o r is in viola tion of
the laws g o v e rning A.I.D. or that the a ssista nc e fin a nce d under
- 13 -
ｴｨｬｾ＠
Agreeme nt is not finahce d or us ed in accordance with the
terns of this Agre e6ent, the Borrowe r shall pay to A.I.D. within
ninety days after receipt of r e que sts the full amount of such
Refunds paid by the Borrowe r to A.I.D. r esulting
､ｩｳ｢ｵｲ･ｭｮｴｾ＠
from violations of the terms of this Agreement shall be considered
as a reduction in the amount of A.IoD. ' s obligation under the
Agree me nt r educing the disburs e me nts a nd the Agreene nt value and
sha ll not b e available for r e us e under the Agr eeme nt.
For
administrative purposes, thos e refunds paid by the Borrower which
are l es s than $10,000 shall s e rve to r e duce the last principal
r epayme nt.
When, however, such r efunds arc $10 1 000 or over the
Amortiza tion Schedule shall b e revised.
SECTION 7.04.
Waive rs.
No d e l ay in e x e rcising or
omitting to exe rcis e , any right, power, or r e me dy accruing to
AoiuD . unde r this Agr eeme nt shall b e construed as a waive r o f a ny
of these rights, powers, o r r emedi es .
SECTION 7.05.
costs incurr ed by
ａｯｉｾｄ
Ｐ＠
Expe nses o f Colle cti on.
All
ｲ ｾ｡
ｳｯｮ｡｢ｬ
･＠
(othe r than sala ri e s of its s t aff) in
connection with the colle ction of amount s due unde r this
ａｧ
ｲ ･
ｲｮ ｾ ｮｴ＠
may b e charged t o Bo rrowe r and reimburs ed as A.IQD. may specify.
ARTICLE VIII
Miscellaneous
SECTION
(a )
ＸｾＰＱＮ＠
Use of Re pr e s e ntatives .
All a cti o ns r equir ed or p e rmitte d t o b e
performed or t ake n under the Agr eement by the Borro we r or A.I.D.
- 14 -
may be performed by their respective duly authorized representatives.
(b)
The Borrower here by designates the Bank Negara
Indonesia as its representative with authority to designate in
writing other representatives of the Borrower in its dealings with
A.I.D. in accordance with the above subsection. "The Borrower's
repr e sent a tives naned pursuant to the preceding sentence, unless
A.I.D. is given notice otherwise, shall have authority to agree
on b e half of the Borrower to any modification or amplification of
this Agreement which does not substantially increase the Borrowe r's
Until r Gce ipt by A.I.D. of writt e n notice
obliga tions h e reunder.
of revocation by the Borrower of the authority of any of its
repres e ntatives , A.I.D. raay accept the signature of such
ｲｾｰ･Ｍ
sentatives on any instrument as conclusive evidence that any action
e ffected by such instrument is authorized by the Borrower.
SECTION 8.02.
Communications,
Any notice, r e quest or
other communication give n, made or sent by the Borrower or
A.r.o.
pursuant to this agreement shall be in writing and shall b e deemed
to have been duly give n, raade or sent to the party to which it is
addressed when it shall be delivered by hand or
ｾｹ＠
mail, t e l e gram,
cable or r adiogram to such other party at the following addresses:
To the Borrower:
Mail Address:
Bank Negara IndonGsia
Djalan Thillllrin 2
Djakarta 1 Indonesia
Attention:
Cable Address:
Foreign
De l e gasi DjakaTta
ｄｾｰ｡ｲｴ･ｮ＠
- 15 -
To A.I .D
0 :
Mail Address:
Cable Address:
Unit ed State s Agency for Inte rnational
Developmont
Amorican Embassy
Djakarta, Indone sia
USAID AMEMB DJAKARTA
Other addresses may be substituted for the above upon the giving
of notic e and acknowledgenent of such \ \ubsti tution.
Signed
UNITED STJ'.1TES OF r'\MERICA
ｂｹＺｾ
ｓ ｟ ｩ｟ ｧ ｟ ｮ ｟ ･ ｟ ､ ｾＭ
•
A.I.D. Loan No. 497-N-014
BE'IWEEN THE
REPUBLIC OF INDONESIA
AND THE
'
UNITED STATES OF AMERICA.
{
Da t ed:
ａｲｾ＠
I
1ri
1
/C/b
7
TABLE OF Q)NTENTS
Section Number
ARTICLE I
SECTION 1.01
ARTICLE II
SECTION
SECTION
SECTION
SECTION
SECTION
2.01
2. 02
2.03
2.04
2.05
ARTTCLE III
SECTION 3.01
SECTION 3. 02
ARTICLE IV
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
L oan••••••••••••••••••••••••••••••••••
1
The Loa n••••••••••••••••••••••••••••••••••
1
Te rms of Repayr.ie nt and Interest •••••••••••
1
Pa yne nt Obligatio ns •••••••••••••••••••••••
ｃｵｲ
ｾ ｮ｣ｹ＠
of Re payme nt •••••••••••••••••••••
Renegotiation of Te rms ••••••••••••••••••••
1
2
2
2
3
Conditions Precede nt••••••••••••••••••••••
3
Co ndition Pr ec e dent t o Initial Financing ••
Date for Fulfillment of Conditions Pre cedent••••••••••••••••••••••••••
3
4
Pro cure n e nt, Utiliza tion, a nd Eligibility
of Coracodities •••••••••••••• -•••••••••••
4
ｔｨ
4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
ｾ＠
ｉｮｴ
ｾ ｲ･
ｳｴ＠
Principal•••••••••••••••••••·•••••••••••••
ｔ ･ ｲｾｩｮ｡ｬ＠
A.I.D. Regulat ion ｉｾ＠
S o urc e of Procureme nt.....................
Dat e of Procure rae nt•••••••••••••••••••••••
Eligible Ite ms••••••••••••••••••••••••••••
ｐｲ
ｯ ｣ｵｲ
･ ｾ ･ｮｴ＠
for Public Sector.............
Utilizatio n o f Comr.ioditi es . . . . . . . . . . . . . . . .
Minimum Size o f Tra nsactio ns..............
4
5
Proce dur es ••••••••••••••••••••••••••••••••
7
Lett e rs of Corami tme nt a n d Disbursenent....
7
SECTION 5.01
SECTION s.02
SECTION 5.03
Re ques ts f o r Le tt e rs o f Commitme nt........
Other Forms of Disburs e n e nt...............
ｔ ｾ ｲｮｩ
｡ ｬ＠
Dat e for Reques ts for Le tt e r s
7
8
of Commitment...........................
8
SECTION 5.04
Te rmina l Da t e for Reque sts £or Disburserae nt • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Docume ntation Re quirement.................
8
8
Additional Cove nants and Warranties.......
9
ARTICLE V
SECTION
s.os
ARTICLE VI
5
5
6
6
7
SECTION 6.01
SECTION 6.02
SECTION 6.03
Re ports•••••••••••••••••••••••••••••••••••
9
Notic e of Adve rs e Developments............
Taxation on Loan Agreement a nd Paynents
9
SECTION 6.04
SECTION 6.05
Comnission , Fees, a nd Othe r Paynen ts ••••••
Financing Physical Facilities •••••••••••••
ｔｨ
･ ｲ ･ ｵｮ､
･ ｲ
ﾷｾ＠
9
10
10
ii
Section Nur.iber
ARTIQE VII
SECTION 7.01
SECTION 7.02
SECTION 7.03
SECTION 7.04
SECTION 7.05
ARTICLE VIII
SECTION 8.01
SECTION 8. 02
A.r.n •........................
11
Eve nts of ｄｾｦ｡ｵｬｴ［＠
Acc e leration •••••••••••
Te rr.iina tion of Disburs ements; Transfe r
of Goods t o A.I.D•••••••••••••••••••••••
Re funds •••••••••••••••••••••••••••••••••••
Waivers,•••••••••••4••••••••••••••••·•••••
Expe nses of Co lle ction ••••••••••••••••••••
11
11
12
13
13
Misca llaneous ••••••••••
1::
Remedies of
Use of
ｃｯｲＺｵｮｩ｣ｾｴｳ＠
ｒ ･ｰ
ｲ ･ｳ
4
••••••••••••••••••
ｩｶ
ｾ ｳ＠ ••••••••••••••••••••
••••••••••••••••••••••••••• -
ｮｴ ｡ｴ
13
14
LOAN AGREEMENT
/If/;,
AGREEMENT dat ed the
day of
Apri
J
1967 between THE REPUBLIC OF INDONESIA ("Borrower") and the United
States of America 7 acting through the AGENCY FOR I NTERNATIONAL
DEVELOPMENT ("A.I.,Do").
ARTICLE I
The Loan
SECTION 1.01.
The Loan.
In accordance with the
Economic Cooperation Agreement between the Republic of Indonesia
and the United States of America signed at Djakarta Octobe r 16,
1950 as supplemented by the Exchange of Notes on Economic and
Technical Cooperation signed at Washington and Dja!,
All commodities which
may be imported and p a id for with "Export Bonus" :foreign exchange
unde r r e gulations of the Borrower in effect on the date of this
Agr eeme nt (the
ＢｂＮｅｾ＠
List")
shall be e ligible for financing under
the Loan, subject to any exc e ptions or conditions stated in this
Agr eeme nt or in a ny
ｉｭｰｬ
ｾｮ･
ｮｴ｡ｩｯ＠
Letter or Cor.unodity ProcureMent
Instruction which muy be issued h e r e under.
Unless otherwise agreed
in writing , the official BoEo List for purposes of this Agreeme nt
shall be
list promulgated by the Borrowe r by DGc r ee s of the
ｴｨｾ＠
Minister of
ｔｲｾ､
･ Ｌ＠
No. 128/SK/IX dated Octobe r 3s 1966 and Nee
144/SK/X/1966 da t ed October 29, 19660
Other items, including
- 6 -
items which nay
ｨ･
ｲ ｾ｡ｦｴ･
ｲ＠
be added to the B.E. List, shall b e come
eligible for financing under this Agreement only with the writt e n
agreement of A.I.D.
A.I.D. may d e cline to finance any specific
commodity or service when, in its judgment, such financing would
be inconsistent with the purposes of the Loan or of the Fore ign
Assistance Act of 1961, as ame nded.
SECTION 4.05.
Procureme nt for public
ｓ･｣ｴｯｲｾ＠
With
r espect to procur e ment hereunder by or for the Borrower, its
agencies and any state enterprise (a)
Notwithstanding Section 201.ll(a) of A.I.D.
Regulation I, Borrower shall avail its e lf of opportunities to
procure
u.s.
Government owned exce ss property to the maximum e xt e nt
consistent with the purposes of this Loan; and
(b)
The provisions of Section 201.22 of A.I.D.
Regulation I r e garding competitive bid procedures shall apply
unles s A.I.D. o the rwis e agrees in writing•
SECTION 4.06.
Utilizatian of Cormodities .
shall us e its b es t efforts:
Borrower
(a) to assure the prompt and effective
utiliza tion of the cor:unoditi es to be financ ed under this Agreement
in accordance with applicable Indones ian and A.I.D. l egislation,
policies, and r egulations, a nd (b) to preve nt the us e of coruJoditi es
finance d unde r this Agr e ement to pronote o r assist a ny project or
activity a ssociat e d with or financed by any country n o t include d in
Co d e 935 of the A.I.D. Geogr.:i.phic Code Book as in effldc t at the
time of such projected use , except with the prior writte n consent
of A.I.D.
- 7 -
SECTION 4.07.
Mininun Size of Tra nsactio ns.
Excep t
where authorized by A.I.D. in writing) no foreign exchange allocati on or l e tt e r of cre dit issue d pursuant to this Agr eument shall
b e in a n Olilount less tha n One Thousand Dollars ($1,000).
SECTION 4.08.
Proce dures .
A.I.De will issue a
Comr.iodity Procur e nent Instruction (CPI) for the inf o rmation and
r e f e rence o f both parti e s which will r ecord:
- a d e scription of the procur e ment a uthorized by this
Agreement;
- the applicable Comnodity Financing Procedures which,
pursua nt to this Agreement, are A.I.D. 1 s Standard
Commodity Financing Proce dur e s utilizing
ａｾｉＮｄ＠
Regula tion I e xce pt as Re gulation I may b e inco nsiste nt with the Agrecnent;
the a uthorize d me thods of financing, as set o ut in
Articl e V he reof;
specia l provisions app lica ble t o the procur e me nt
a utho rize d by this Agreement (including b o th provisions
applicabl e t o specific c onmodity codes a nd provisions
o f g e n e r a l applica tion ).
Such spe cial provisions
will b e stated in form suitable for incorpor a tion in
instructi o ns to impo rt e r s i ss u e d b y Bo rro wer.
ARTICLE V
L e tt e rs of
SECTION S.01.
ｃｯｲｾｩｴｮ
･ ｲＮｴ＠
a nd Disburs e ment
Requests for L e tte r s of Commitne nt.
To
0
- 8 -
obtain disburseme nts Jf the Loan, the Borrowe r may from time to
time submit Financing Re que sts to A.I.D. for the issuance of
l e tte rs of comr:iitne nt to o ne or mo re banking instituti o ns in the
United Stat e s designated by the Borrower and satisfactory to
ａｾｉＮｄＬ＠
car.uniting A.I.D. to r e imburs e such bank or b a nks for payments n a d e ,
thr ough letters of cr e dit or otherwise, to the Borrower o r any
designee of the Borrower, pursuant to such docum e ntation requir e·
me nts as AoI.D. nay pre scribe.
Banking charge s incurr e d in
connection with l e tters of comnitment and disbursements shall be
for the account of the Borrower and may b e financ e d by the L oan.
SECTION 5.02.
Othe r Forms of
ｄｩｳ｢ｵｲ
･ｮｾ
DisburseｮｴＬ＠
me nts of the L oan also may be ma de through such other mea ns and
by such other procedures as the Borrower and A.I.D. nay agree in
writing.
SECTION 5.03 .
Comnitment.
Te rminal Date for Re ques ts f o r Le tt e rs o f
Except as A.I 0 D. may otherwise agree in writing, no
letters of corunitme nt shall
｢ ｾ＠
issue d in r e sponse to a Fina ncing
Re que st r e c e ive d after six months fr o m the date of signing of this
Agreement.
SECTION 5.04.
me nt.
Termina l Da t e for Re ques ts
Dis'.:>urs e ｦ｣Ｌｾ＠
Except as A.I.D. may otherwise agree in writing, no dis-
burs e ment o f the Loan shall be ma de a gainst
､ｯ｣ｵＮｾ･ｮｴ
submitted
｡ ｴｩｯｮ＠
after twe lve mo nths from the dat e of signing of this Agreement.
SECTION 5. 05.
Documentatio n Re q1lirer.K mt,
Regulation I
specifies in d e tail the docume nts requir e d by A.I.D. to
c
- 9 -
substantiate disburs ene nts under this Loan Agreement whe the r by
l e tte r of commitnent or other method of financing.
The document
nunber shown in the letter of commitme nt or other disbursing
authorization document shall b e the number
burs e nent documents s ubmitt e d to AoI .D.
ｲ･ｦｬＰ｣ｴＱ
on all dis-
ｾ ､＠
In addition to the above,
the Borrower shall naintain r ecords adequate to establish that the
commodities financ e d here under have been utilized in accordanc e
with Section 4.06 of this Agreement.
ARTICLE VI
Additional Co v e nants and Warranties
SECTION 6.01.
Reports.
A 0 IvD o shall be furnished with
such r eports and infornation relating to the goods and services
financed by the Loan and the performance of Borrower's obligations
under this Agreement as it may r easo nably reques t.
SECTION 6.02.
Notice of Adverse Deve lopments.
Borrower shall promptly inforn
A.r.D.
The
of any conditions which
interfere with, or threat e n t o interfere with, the r epayment of
the Loa n and the int e r es t or the performance of a ny other obiigation of the Borrower he r e unde r.
SECfION 6.03.
Thereunder.
Taxation on Loan Agree ment and Payments
This Agreement shall b e free from, and the principal
of a nd int e r e st on the Loan shall be paid without dedu ction for
a nd free from, a ny t a xation or fees imposed unde r
ｴｨ
ｾ＠
laws of the
Republic of Indones i a or laws in effect in its t e rritory.
- 10 -
SECTION 6.04.
Commission, F ees, a nd Other Paynentse
Borrower warrants and covenants that in conne ction with obtaining
the assistance to b e furnished h e r e unde r or any action under this
Agreement it h as not paid and will not pay or agrue to pay nor to
the b es t of its knowledge has there b een paid or will the r e
｢ ｾ＠
paid or agreed to b e paid by any other p e rson or e ntity, cotniilissi ons ,
fe e s, or other payrae nts of any kind,
ｾ ｸ｣
･ｰ
ｴ＠
as r e gular compensation
t o Borrower's full-time officers and emp loyee s or as compens at i on
for bona fide professional, t echnical, or comparable services to
which it is a party or of which it has knowledge and if the amount
of any such payment is
､ ･ｭｾ､＠
unrea sonable by A.I.D., Bo rr owe r
shall caus e a reduction satisfactory to A.I.D. to be made the r e in.
SECTION 6.05.
Financing Physica l Facilitie s.
Except as
A.I.D. may otherwise agree in writing, not more than $250,000.00
from the procl?e ds of the Loan shall b e made available by the
Borrower for a Single-End Us e , it being unde rstood tha t the Export
Bonus syst em , as presently constituted , operates so as to preclude
imports for a Single -End Use as de fin ed herein.
The tern "Single-
End Us e " means the purchase of commoditi e s and cor.tr.lodity r e l ated
services for us e in the construction, expansion, equipping or
alteration of a physical facility or r e lated physical f ac ilities,
but does not include us e for purposes of r e habilitation or modernization of a n existing f ac ility which does not invo lve a substantial
change in the size or charact e r of the facility.
Fo r purposes
h e reof, "relate d physical facilities" means faciliti es which ,
..
- 11 -
considering such factors
｡ｾ＠
functional int e rdependence , g eographic
proxinity, and owne rship, constitute in the judgraent of A.I.D. a
single enterprise.
ARTICLE VII
Remedies of A .I.D.
SECTION 7.01.
Events of De fault; Acceleration.
If any
one or more of the following events ("Eve nts of Default") shall
occur :
(a)
Borrower shall fail to pay in full any int e r e st
or installment of Principal when due;
(b)
Borrowe r shall f a il to conply with any other
provision containGd herein; or
(c)
Any repres e ntation or warranty made by or on
be half of Borrowe r with r espect to obtaining this loan or nade or
required to b e ma d e he r e under is incorrect in any ma t e rial respe ct;
the n AoI.Do 1 a t its option, may decl a re all or any part of the
Principal balance to be due and payable ililr.lediat e l y, and upon any
such declaration unless the d efault is cure d within sixty (60)
days the reafter, such Principal and a ll intere st accru ed the reon
shall b e come due and pa yabl e
SECTION 7802.
Goods to
ａＮｉ Ｎｄｾ＠
ｩｭ
･ ､ｩ｡ｴ
ｾ ｬｹＮ＠
Te rmination of Disburs e me nts; Transfer of
In the e v e nt that a t a ny tine :
(a )
An e v e nt of default h a s occurred;
{b)
An event occurs which A.I.D. det e rmines to be
an e xtraordina ry situation which ma kes it inproba ble that the
- 12 -
purpo s u s o f the Loa n will b e a tta ine d o r tha t Bo rrower will b e
able to p e rfort1 its obliga ti o n s he reun de r; or
(c)
Any disburs ement would b e in vio l a tio n o f the
l e gisla tio n g o v e rning A.I.D.; or
(d)
A d e fault shall h ave o ccurre d unde r a ny o the r
a gr een e nt b e t ween Bo rrowe r or a ny of its a ge ncie s a nd the Unit e d
State s o r a ny of its a g e nci es ;
the n A.IoDo, in additio n to r e rae di e s pr o vide d in A.I.D. Regula ti on
I, a t its op ti o n, may (i) d e cline to issue furthe r l e tt Grs o f
c ommitne nt o r o the r disbursing a uthoriza tions, ( ii) suspe nd o r
c a nc e l o utsta nding l e tt e rs of commitment or o the r disbur s ing
a utho riza ti o ns to the e xtent tha t the y ha v e n o t b een utilized
thro ugh the issuance o f irre vo c a bl G l e tt e rs of cr e dit, o r
t o the
e xt e nt tha t AoI 0 D. h a s not mad e dire ct r e imburse n e nt t o the
Borrowe r the r e unde r, giving n o tice to Borrowe r pronptly the r eaft e r,
(iii) d e cline t o ma k e disbur seme nts othe r tha n unde r l e tt e rs o f
c oJ:lI'ilitrae nt; a nd (iv) a t A.I.D.'s e xpe ns e , dir e ct tha t title to
g oods fin a nce d h e r e unde r sha ll b e tra nsfe rre d t o A.I.D., if the
g oods a r e in d e live r a bl e sta t e a nd have n o t b een o fflo ade d in p o r ts
of
ｾ ｮｴｲｹ＠
o f Indone si a .
SECTION 7 .03.
Refunds.
In a ddition t o a ny r e fund
othe rwis e r e quir e d by A.IoD u pursua nt t o R8gula ti on I) i f A oI.D.
d e t e rmine s that a n y d isbur sen e nt is no t suppo rte d by v a lid do cune nt a tio n in acc o rda nc e with this Agr eeme nt, o r is in viola tion of
the laws g o v e rning A.I.D. or that the a ssista nc e fin a nce d under
- 13 -
ｴｨｬｾ＠
Agreeme nt is not finahce d or us ed in accordance with the
terns of this Agre e6ent, the Borrowe r shall pay to A.I.D. within
ninety days after receipt of r e que sts the full amount of such
Refunds paid by the Borrowe r to A.I.D. r esulting
､ｩｳ｢ｵｲ･ｭｮｴｾ＠
from violations of the terms of this Agreement shall be considered
as a reduction in the amount of A.IoD. ' s obligation under the
Agree me nt r educing the disburs e me nts a nd the Agreene nt value and
sha ll not b e available for r e us e under the Agr eeme nt.
For
administrative purposes, thos e refunds paid by the Borrower which
are l es s than $10,000 shall s e rve to r e duce the last principal
r epayme nt.
When, however, such r efunds arc $10 1 000 or over the
Amortiza tion Schedule shall b e revised.
SECTION 7.04.
Waive rs.
No d e l ay in e x e rcising or
omitting to exe rcis e , any right, power, or r e me dy accruing to
AoiuD . unde r this Agr eeme nt shall b e construed as a waive r o f a ny
of these rights, powers, o r r emedi es .
SECTION 7.05.
costs incurr ed by
ａｯｉｾｄ
Ｐ＠
Expe nses o f Colle cti on.
All
ｲ ｾ｡
ｳｯｮ｡｢ｬ
･＠
(othe r than sala ri e s of its s t aff) in
connection with the colle ction of amount s due unde r this
ａｧ
ｲ ･
ｲｮ ｾ ｮｴ＠
may b e charged t o Bo rrowe r and reimburs ed as A.IQD. may specify.
ARTICLE VIII
Miscellaneous
SECTION
(a )
ＸｾＰＱＮ＠
Use of Re pr e s e ntatives .
All a cti o ns r equir ed or p e rmitte d t o b e
performed or t ake n under the Agr eement by the Borro we r or A.I.D.
- 14 -
may be performed by their respective duly authorized representatives.
(b)
The Borrower here by designates the Bank Negara
Indonesia as its representative with authority to designate in
writing other representatives of the Borrower in its dealings with
A.I.D. in accordance with the above subsection. "The Borrower's
repr e sent a tives naned pursuant to the preceding sentence, unless
A.I.D. is given notice otherwise, shall have authority to agree
on b e half of the Borrower to any modification or amplification of
this Agreement which does not substantially increase the Borrowe r's
Until r Gce ipt by A.I.D. of writt e n notice
obliga tions h e reunder.
of revocation by the Borrower of the authority of any of its
repres e ntatives , A.I.D. raay accept the signature of such
ｲｾｰ･Ｍ
sentatives on any instrument as conclusive evidence that any action
e ffected by such instrument is authorized by the Borrower.
SECTION 8.02.
Communications,
Any notice, r e quest or
other communication give n, made or sent by the Borrower or
A.r.o.
pursuant to this agreement shall be in writing and shall b e deemed
to have been duly give n, raade or sent to the party to which it is
addressed when it shall be delivered by hand or
ｾｹ＠
mail, t e l e gram,
cable or r adiogram to such other party at the following addresses:
To the Borrower:
Mail Address:
Bank Negara IndonGsia
Djalan Thillllrin 2
Djakarta 1 Indonesia
Attention:
Cable Address:
Foreign
De l e gasi DjakaTta
ｄｾｰ｡ｲｴ･ｮ＠
- 15 -
To A.I .D
0 :
Mail Address:
Cable Address:
Unit ed State s Agency for Inte rnational
Developmont
Amorican Embassy
Djakarta, Indone sia
USAID AMEMB DJAKARTA
Other addresses may be substituted for the above upon the giving
of notic e and acknowledgenent of such \ \ubsti tution.
Signed
UNITED STJ'.1TES OF r'\MERICA
ｂｹＺｾ
ｓ ｟ ｩ｟ ｧ ｟ ｮ ｟ ･ ｟ ､ ｾＭ