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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF AUSTRALIA
RELATING TO
ADVISORY ASSISTANCE TO THE
DIRECTORATE GENERAL CIPTA KARYA, IN INDONESIA

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MEMORANDUM OF UNDERSTANDING RELATING TO
ADVISORY ASSISTANCE TO THE
DIRECTORATE GENERAL CIPTA KARYA, IN INDONESIA
GENERAL

1.

TH IS MEMORANDUM expresses the understanding of the
Government of the Republic of Indonesia and the
Government of Australia concerning the responsibilities and contributions respectively of the two Governments in regard to the provision of advisory assistance to the Directorate of Sanitary Engineering within

the Directorate General CIPTA KARYA of the Ministry
of Public Works, Jakarta, (hereinafter referred to as
the Project) which is intended to assist that organisation in the planning and management of the Indonesian
Government's water supply and sanitation program for

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Repelita I I I as further described and detailed in
Annex 1 to this Memorandum.
AUTHORITIES

2.

The Executing Authorities for this Project will be :
For the Indonesian Government : DIRECTORATE GENERAL
OF HOUSING, BUILDING PLANNING AND URBAN DEVELOPMENT
OF THE MINISTRY OF PUBLIC WORKS (DIREKTORAT JENDERAL
CIPTA KARYA DEPARTEMEN PEKERJAAN UMUM).
For the Australian Government : THE AUSRALIAN
DEVELOPMENT ASSISTANCE BUREAU OF THE DEPARTMENT OF

FOREIGN AFFAIRS.
The Australian Development Assistance Bureau may
nominate suitable qualified agents to undertake
any part of its functions on its behalf .

DURATION

3.

This Memorandum will take effect from the date of
its signature and the Project will be deemed to have
commenced from that date.
The Australian contribution to the Project and all
undertaking s given he rein will cease four years after
th e date of signature of thi s Memorandum or on such
other dat e as may s ub s eque ntly be agreed be tween the
two Gove rnment s .

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PROJECT

4.

Responsibility for developmen t and direction
of the Project will be vested in a Project

ORGANISATION

Co-ordinating Board, whose chairman will be
appointed by the Indonesian Government.
Membership of the Board will include

the

Australian Team Leader, who is to be appointed
by the Australian Executing Authority in concultation with the Indonesian Government.
Membership of the Project Co-ordinating Board
will also include representatives of the Indonesian Government Ministry referred to in Clause 2
above, or nominated at the discretion of

the

Indonesian Government, as well as a nominee designated by the Australian Embassy accredited
to Indonesia.
The Board will meet not less than twice per year.

5.

Function s of the Project Co-ordinating Board
will include
(a)

reviewing and reporting on progress
to the two

(b)

Governments ; and

recommending to the two Governments
changes in program, budget and future
development.

RESPONSIBILITY

6.

Overall responsibility for this Project will rest
with the Government of Indonesia.

The final

authority for decisions on implementation of the
agreed works program shall res t with the Directorate General CIPTA KARYA after consultation with
Australian Team Leader.
CONTRIBUTIONS

7. The contributions of the Indonesia n and Austra1 ian Governments are deta il ed in Annex 1 and
are es timated to value Rp. 50,000,000. $A 860,000.- respect ively.

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and

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Disbursement of the Australian Government contribution will be subject to the normal annual Parliamentary approval of Appropriations.

The

Indonesian contribution wi 11 be provided through
the annual Directorate of Sanitary Engineering
budget.
EVALUATION

8.

An evaluation of progress of the Project may
be made at times arranged between and mutually

convenient to the Indonesian and Australian
Governments.

Such an evaluation may be under-

taken by a joint investigation team appointed
by the two Governments and independent of staff
involved in the Project.
PERSONNEL

9.

For the purposes of this Project, the Indonesian
Government wi 11, in accordance with preva iling
laws and regulations, facilit ate the employment
by the Australian Government or its agent of
personnel as required for the Project and established between the two Governments by
(a)

granting exemption from income or other

taxes on Project salaries and allowances;

(b)

granting exemption from i mport and other
duties on personal and household effects;

(c)

granting exemption from taxes and duties
on the purchase in Indonesia of one locally assembled motor vehicle per expert on
condition that it either be exported, sold
to a person who has the same privileges or
duty paid on its assessed va lue at time of
sale within Indonesia.
The expert's assignment should be on a
long term basis or at least a 12 (twelve)
consecutive months period;

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(d)

granting to Australian Project personnel
all rights and entitlements accorded to
the aid personnel of any other donor
country; and

(e)

expediting the issues of all documentation
required for the entry of, and performance
of work by, Project personnel, including
work permits or certificates for eligible
pe rs ons.

SUPPLIES

10.

(a)

The Indonesian Government wi 11 in accordance
with the prevailing laws and regulations,
exempt from import duties and other taxes
(or pay such duties t hereon) all goods
supplied for the established pur poses of
the Project as set out in Annex 1.
Prior to such importation the Australian
Government will submit a master lis t of
all supplies to be supplied by the Australian
Government to the Indonesian Government.

(b)

The Indonesian Government wi 11 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 site; and

(c)

Project equipment and supplies provided by
Australia shall be available for the unrestricted use of the Project and sha ll not be
withdrawn from such use without the consent
of the Project Coordinating Board.
The Australian Team Leader in consultation
with the Indonesian Project Manage r shall
exercise administrative control over such
s upplies for the dur ation

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of the Project.

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LIABILITY

11.

The Indonesian Government shall be responsible
for dealing with any claims which may be b rought
by third parties against Australia and its experts,
agents or Australian personnel and shall hold harmless Australia and its experts, agents and personnel
in case of any claims or liabilities resulting from
operations under this Memorandum .
This provision shall not relieve any person from
liability for any criminal, grossly neg ligent or
fraudulent act.

SECURITY

12.

The Indonesian Government will arrange for any
protection deemed necessary to ensure the safety
of Australian personnel, Project and pe rsonnel
equipment both at the Project l ocation, i n transit and on any other official r eprese ntational
activity in Indon es ia.

The Australian Government

will take reason ab le precautions to ensure that
Australian personnel have due regard for local traditions
and customs.
SETTLEMENTS OF

13.

DIFFERENCES

Any differences arising out of the inte rpreta tion or implementation of the Memorandum shall
be settled amicably by cons ultat ion or negotiation
between the two Gove rnment s .

AMENDMENTS

14.

Amendments to this Memo randum may be made at
any time by an Exchange of Le tters be tween the
two Governments.

ANNEXURES 1, 2 and 3 to this Memorandum form an integral part of it.

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SIGNED in Jakarta, in duplicate, this fifth day of February 1981.

FOR THE GOVERNMENT OF
THE ｒｾｐｕｂｌｉｃ＠
OF INDONESIA

Signed
(POERNbMOSIDI HADJISAROSA)
Minister of Public Works

FOR THE GOVERNMENT
OF AUSTRALIA

Signed
(THOMAS K. CRITCHLEY')'
Ambassador

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ANNEX 1

ADVISORY ASSISTANCE TO DIRECTORATE GENERAL
CI PTA KARYA
PROJECT SUMMARY

1.

Description and Objectives
The Indonesian Government has requested the Australian

Government to provide three engineering advisers to assist the
technical staff of the Directorate of Sanitary Engineering, within
the Directorate General Cipta Karya of the Ministry of Public Works,
in the planning and management of the Indonesian Government's water
supply and sanitation program.
The objective of this Project is to assist the Directorate of Sanitary Engineering achieve the targets set down in the Third Five Year
Development Plan (REPEL ITA I I I) in res rect to the provision of water
supplies to urban centres throughout Indonesia.
2.

Project Implementation
The Australian Government will make available to the

Directorate of Sanitary Engineering the services of three long-term
engineering advisers.

One of the advisers will be designated Team

Leader and will be the counterpart of the Chief, Sub-Directorate of
Planning, Directorate of Sanitary Engineering.

The advisers will be

based in Jakarta but it is expected that they will be required to
visit other centres in connection with their duties.
It is expected that short-term advisers wi 11 occasionally be appointed
to support the activities of the long-term advisers.

3.

Duties of the Advisers
The duties of the Australian advisers will relate to the

range of activities within the Directorate of Sanitary Engineering
and wi 11 include the following

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ANNEX 1
2

(i)

assist in the overall planning of water supply and
sanitation projects included in the Indonesian Government's Third Five Year Development Plan;

(ii)

provide assistance and advice direct to the Director
General of Cipta Karya and the Director of the Directorate of Sanitary Engineering as requested.

(iii)

assist in the preparation or review of Predesign Study
Reports for water supply and sanitation projects, the
review of feasibility and master plan studies, and in
the examination of consultant proposals and contract
documents related to water supply and sanitation projects;

(iv)

assist in the planning and design of water supply
facilities in transmigration resettlement areas;

(v)

undertake short periods of assignment to Cipta Karya
regional offices to assist regional managers and to
provide on the job training for local Cipta Karya
engineers in areas such as selection and supervision
of contractors, tenders and negotiations with consultants; and

(vi)

provide additional assistance as may be requested by
the Chief, Sub-Directorate of Planning,

(vii)

perform co-ordination and liai son between Cipta Karya
and Australian Government Agencies involved in the
approved Australian Water Supply aid projects.

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ANNEX 2

CONTRIBUTION OF THE AUSTRALIAN GOVERNMENT

This Annex sets out the contribution of Australian
Government to this Project .
(i)

The Australian Government will

provide payment of salaries and allowances to the
three advisers;

(ii)

meet all travel costs directly related to the Project
for the advisers and their dependants;

(iii)

provide personal specialised office supplies, not
including furniture, and minor Project

equipment,

required for the advisers;
(iv)

provide and maintain one Mini-Bus and one 4 X 4 Station
Wagon, for use by the Australian personne l;

(v)

meet the cost of the services of drivers for vehicl es
under the supervision of the advisers; and

(vi)

provide living accommodation for the advis e rs and their
dependants in Jakarta.

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ANNEX 3
CONTRIBUTION

Of

THE INDONESIAN GOVERNMENT

This Annex sets out the contribution of the Indonesian
Government to this Project.
(i)

The Indonesian Government will :

provide suitable office accommodation in Jakarta for
the advisers.

This accommodation is to be conveniently

located with respect to the office of the Sub-Directorate
of Planning of the Directorate of Sanitary Engineering;
(ii)

provide office accommodation for advisers in other centres
as required; and

(iii)

provide and meet the costs of administrative support staff
and materials f or the advisers.

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