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MEMORANDUM OF UNDERSTANDING

BETWEEN

THE MINISTRY OF FOREIGN AFFAIRS OF THE REPUBLIC OF INDONESIA

AND

THE ROYAL MINISTRY OF FOREIGN AFFAIRS OF NORWAY

CONCERNING

A CONSULTATIVE PROCEDURE FOR DEVELOPMENT COOPERATION

BETWEEN THE TWO COUNTRIES

The Royal Ministry of Foreign Affairs of Norway and The Ministry of Foreign Affairs of the
Republic of Indonesia, hereinafter referred to as the Parties,

0


DESIRING to develop relations of friendship and the development cooperation between
the two countries and to serve the bilateral interest of their nations,

CONSIDERING the need for a procedure mutually agreed upon to promote and expedite
the implementation of projects financed through Norwegian soft loan and grant schemes,
to support Indonesian Government development projects (hereinafter referred to as the
Projects),

HAVE AGREED the following:

1.

The Parties will meet annually together with representatives from the executing agencies
on each side, i.e. NORAD (The Norwegian Agency for Development Assistance) and
BAPPENAS (The Indonesian National Development Planning Agency).

2.

The meeting will inter alia discuss the following issues:
2.1.


Exchange of pertinent information on economic aspects and other issues of
importance related to the Projects.

2.2.

Review of the status of on going Projects financed through Norwegian soft loan
and grant schemes.

2.3.

Discussion of Projects for potential funding in the coming year.

2.4.

Discussion of medium and longer term development plans and identification of
priority sectors relevant to this Memorandum of Understanding.

2. 5.


3.

Cooperation on appraisal and monitoring of the development cooperation Projects.

The Parties are aware of the prevailing terms and conditions for soft loans to Indonesia
as well as OECD guidelines for soft financing.

Done in duplicate on the 19 September 1995 in Jakarta in English language.

FOR THE MINISTRY OF FOREIGN AFFAIRS
OF THE REPUBLIC OF INDONESIA

Signed

Soemadi D.M. Brotodiningrat

FOR THE ROY AL MINISTRY OF
FOREIGN AFFAIRS OF NORWAY

Signed