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MEMORANDUM OF UNDERSTANDING BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF
INDONESIA
AND
THE GOVERNMENT OF AUSTRALIA
RELATING TO
A BRIDGE MANAGEMENT SYSTEM PROJECT

GENERAL.

1.

AUTHORITIES.
2.

THIS MEMORANDUM
expresses the understandings of
the Government of Australia and the Government of
the
Republic
of

Indonesia
concerning
the
responsibilities and contributions of the two
Governments in regard to the provision of technical
assistance to the Directorate General of Bina Marga,
Ministry of Public Works, by the Government of
Australia under the Bridge Management System
Project. The Project i s intended to assist with the
development of, and associated training in, upgraded
systems in a range of bridge management activities,
as further described and detailed in Annex 1 of this
Memorandum .

The Executing Authorities for this Project will be:
For the Government of the Republic of Indonesia:
the Directorate General of Bina Marga, Ministry of
Public Works.
For the Government of Australia : The Australian
International Development Assista nce Bureau (AIDAB)

of the Department of Foreign Affairs and Trade .
The Directorate General of Bina Marga shall
cooperate with the Directorate General of Regional
Development,
Mi nistry
of
Home
Affairs,
the
Directorate General of Land Transport, Ministry of
Communications
and
other
relevant
Indonesian
Government institutions on particular activities of
the ProJect, during the course of the project. The
distribution of the main responsibilities among
Indonesian Government agencies is set out in Annex
II of this Memorandum.

AIDAB shall nominate suitably qualified persons,
organisations or corporations to undertake any part
of its function on its behalf .

DURATION
3.

This Memorandum will take effect from the date of
its signature and the Project
wil 1 be deemed to
have commenced on 1 April 1989. The Australian
contribution to the Project
and all undertakings
given herein will cease three and a half years after
the date of commencement of the Project or on such
other date as may subsequently be arranged between
the two Governments.

PROJECT ORGANIZATION
4.


5.

Responsibility for the development and direction of
the Project will be vested in a Project Coordinating
Board which will be chaired by the Director General
of Bina Marga. Membership of the Board will include
representatives of the Directorate General of Bina
Marga and other relevant authorities nominated by
the Government of t he Republic of Indonesia.
Member s hip
of
the
Board
will
also
include
representatives nominated by the Australian Embassy
in Jakarta and others nominated at the discretion
of the Government of Australia. The Board will meet

not less than twice a year over the life of the
Project.
Functions of the P reject Coo rdi na ting Boa rd wi 11
include:
(a) coordinating policy, funding and operations
for the Project;
(b)
reviewing and reporting on progress to the two
Governments; and
(c)
recommending to the two Governments changes in
either the Project design or budget .

RESPONSIBILITY
6.

Overall responsibility for this Project will rest
with the Government of the Republic of Indonesia.
Decisions on implementation of the Project will be
decided jointly by the two Governments. The final

authority for implementation of those decisions
will rest with the Director General of Bina Marga,
after consultations with the Indonesian Project
Manager and the Australian Team Leader.

2

CONTRIBUTI ONS
7.

The contribution of the Australian Government is
detailed in Annex III and is estimated at $A 21 .279
mi 11 ion.
The contribution of
the
I ndones 1 an
Government is detailed in Annex IV and is estimated
at
Rp
43. 225

b111 ion.
Disbursement of
the
Indonesian and Australian Governments' contributions will be subJect to prevailing annual budget
appropriations. Annual budgets, including forward
allocations and actual disbursements, will be
prepared by both Governments .

PROJECT IMPLEMENTATION
AND MONITORING
8.

The two Governments wi 11 monitor progress of the
Project Jointly on a regular basis. Implementation
and monitoring will be based on the ProJect
Implementation Document, to be prepared by the
Australian consultants within four months of the
start of the ProJect, for approval by the ProJect
Coordinating Board. Other relevant implementation
and monitoring documents for the two Governments

wi 11
be:
the Project Design
Document ,
this
Memorandum and annual plans to be prepared by the
Australian consultants in cooperation with their
Indonesian counterparts.
The consul tan ts wi 11
produce a progress report, not 1 ess than twice a
year, which will form the basis for monitoring
visits to the field by a monitoring team consisting
of representatives of the Di recto rate Genera 1 of
Bina Marga and the Australian Embassy in Indonesia.
The monitoring team will report to a Project
Coordinating Board meeting to be held shortly after
each field visit.

9.


A joint
review
of
the
Project's
progress,
performance and prospects may be undertaken at a
time mutually agreed by both Governments to provide
guidance on con tr i but ions and di re ct ions for the
remaining term of the Project. Such a review would
be undertaken by a joint team appointed by t he two
Governments and independent of the staff ゥセカッ ャカ・、@
in the Project.

3

PERSONNEL
10.

(a)


For
the
purposes
of
this
Project.
the
Government of the Republic of Indonesia will,
in
accordance
with
prevailing
laws
and
regulations, f aci litate the employment by the
Australian
Government
of
persons,

organisations or corporations nominated by it
to undertake its functions on its behalf, and
of Australian project personnel as required
for the Project by :
(i)

bearing income or other taxes on project
salaries
and
allowances:
Australian
project personnel will not bear these
taxes;

(ii) granting exemption from import and other
duties on the personal and household
effects of Australian project personnel;
(iii)granting exemption from taxes and duties
on the purchase in Indonesia of one
locally assembled mo tor vehicle by each
of the Australian project personnel on
co ndition that it either be sold to a
person who has the same privileges, or to
the Agents authorised by the Government
of the Republic of Indonesia. In order to
qualify for such exemption the Australian
project personnel must be assigned to the
Project on a long term basis of at least
twelve (12) consecutive months;
(iv) granting to Australian project personnel
all rights and entitlements accorded to
the aid personnel of any other donor
country; and
(v)

expediting the issue of all documentation
required
for
the
entry
of,
and
performance
of
work
by,
Australian
project personnel including work permits
or certificates for eligible persons.

4

SUPPLIES

11

(b)

For
the
purposes
of
this
Memorandum,
"Australian project personnel" means persons
who are not nationals or permanent residents
of Indonesia,
who are accredited by the
Government of the Republic of Indonesia to
work in Indonesia in an activity under this
Memorandum and whose salaries or other costs
are funded from the Australian contribution to
the Project.

(a)

The Government of the Republic of Indonesia
will, in accordance with prevailing laws and
regulations,
grant
exemption from
import
duties and other central, state and regional
government taxes on all supplies purchased by
the Government of Australia for the Project.

( b)

The Government o·f the Republic of Indonesia
will facilitate movement of project equipment
and supplies by providing appropriate customs
and wharfage facilities in the port of entry
and will be responsible for the expeditious
transport of such equipment and supplies to
the Project site.

(c)

Project equipment and supplies provided by
the Government of Australia will be available
for the unrestricted use of the Project and
wil 1 not be withdrawn from such use without
the consent of the Project Coordinating Board.
The Australian Team Leader, in consultation
with
the Indonesian Project Manager, wi 11
exercise administrative control over such
supplies for the du ration of the Project or
until such tjme as the Government of Australia
consents to their release from the Project.

5

LIABILITY
12.

The Government of the Republic of Indonesia will be
responsible for dealing with any claims which may
be brought by third parties against the Government
of Australia and its advisers or Australian project
personnel and will hold harmless the Government of
Australia and its advisers or Australian project
personnel , in case of any claims or 1iabi1 i ti es
resulting from operations under this Memorandum.
This prevision wi 11 not relieve any person from
liability where it is mutually determined by the
two Governments that such liability results from
any criminal, grossly negligent or fraudulent act
on the part of that person.

13.

The Government of the Republic of Indonesia will
arrange for any protection necessary to ensure the
safety of the person and property of Australian
project personnel and of their dependents, and of
Australian project equipment and supplies, either
at the project location, in transit in Indonesia,
or on any other official representational activity
in Indonesia. The Australian Government will take
reasonable precautions to ensure that Australian
project personnel
have due
regard
for
local
traditions and customs.

SECURITY

SETTLEMENT OF DIFFERENCES
14. Any disputes arising out of the interpretation or
implementation of this Memorandum will be set tled
amicably by consultation or negotiation between
the two Governments.
AMENDMENTS
15. Amendments to this Memorandum may be made at any
time by an Exchange of Letters between the two
Governments.
ANNEXES
16. ANNEXES I to IV of this Memorandum form an integral
part of it.

6

IN WITNESS
WHEREOF .
the undersigned being duly authorised thereto by their
respective Governments, have signed this Memorandum.
SIGNED in Jakarta,
Language

CH'l

24

May 1989,

FOR AND ON BEHALF OF
THE GOVERNMENT OF
THE REPUBLIC OF INDONESIA

in two originals in English

FOR AND ON BEHALF OF
THE GOVERNMENT OF
AUSTRALIA

Signed

Signed

RADINAL MOOCHTAR
MINISTER OF PUBLIC WORKS

PHILIP FLOOD
AMBASSADOR

7

ANNE X 1 (page 1 )
ACTIVITY DESCRIPTION
Background
1 . Upgrading of roads and bridges in Indonesia has been a major
priority since the Government of the Republic of Indonesia's first
five year plan (Repelita I). With such a large land mass. a large
and diversified population, a generally very wet climate and an
extensive and ever-increasing road network, there is an obvious
need for a large number of bridges.
2. The Bridge Management System (BMS) Project aims to enhance the
development and management of Indonesian bridges sector and is a
further component of Australia's on-going involvement in that
area. Previous activities concerned mainly bridge construction
(material supply, technical assistance and training), but the BMS
will cover all major aspects of bridge management.
3.
The BMS will be a nationwide system and will involve
cooperation with level one local government public works offices
in each of Indonesia's 27 provinces.
It will apply only to
national and provincial roads, although some officials to be
trained will also be working on local roads and bridges. The BMS
will complement the nationwide Road Management System, also under
development.
4. The BMS will support decentralization policy and infrastructure
development within the Ministry of Public Works through improved
management procedures, at both central and provincial levels,
improved staff knowledge through formal education programs and incountry training,
and
deve 1opment of standard
procedures,
guidelines and manuals for all activities associated with bridge
works.
5. The BMS will develop capabilities at provincial level through
the DPUP, Cabang Dinas, the bridge section in sub Dinas Bina
Marga, and through local consultants and contractors . The BMS will
support the Indonesian Government's general policy of improving
existing
operation
and
maintenance
systems
for
national
infrastructure through development of standard systems and
procedures for these activities. These systems will be instituted
in all provinces in support of the decentralization policy.
6.
By development of these capabilities and a Management
Information System (MIS) through all provinces the BMS wi 11
support Indonesia's national development programme.

8

ANN EX I

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