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MEMORANDUM OF UNDERSTANDING
BETWEEN THE
GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND THE
GOVERNMENT OF AUSTRALIA
CONCERNING
THE IRIAN JAYA GEOLOGICAL MAPPING PROJECT

Clause
GENERAL

l . l THIS MEMORANDUM between the Government of
the Republic of Indonesia hereinafter
referred to as the Indonesian Government
and the Australian Government relate s to
the systematic geological survey of Irian
Jaya which will be undertaken as a joint
Project by the two Governments and which
will be known as the Irian Jaya Geological
Mapping Project ( CTA 36).
1.2 The purpose of the Project is to assist

the Indonesian Government with the
systematic geological mapping of the
Province of Irian Jaya (with the exception
of any sheet as agreed to by the two
Parties) at a scal e of 1:250.000

and a

regional gravity and magnetic survey of
the Province.
EXECUTING
AUTHORITIES

2.1 The Executing Authority for this Project
for the Indonesian Government will be the
Geological Research and Development Centre
of Indonesia of the Department of Mines
and Energy, and for the Australian Government the Australian Development Assistance
Bureau of the Department of Foreign Affairs,
which has appointed the Department of

National Development to act as managing
agent on its behalf.

. .... I I . ....

- 2 2.2 The Executing Authorities will each appoint
a Project Manager.

2.3 Both Governments shall advise each other in
writing of the appointment of any such
managing agent or project manager.
DURATION

3.1 This Memorandum will take effect from the
date of its signature.

3.2 The Australian contribution to the project
and all undertakings given herein will
cease at such date as may be subsequently
mutually agreed between the two Governments.

The Australian contribution will have an
envisaged limit of ten years.

3.3 It is planned that sufficient field work to
establish a comprehensive framework for the
systematic geological survey of Irian Jaya
shall be completed by the end of Repelita
III in March 1984.
RESPONSIBILITY
Overall
Responsibility

4.1 The Indonesian Government will be responsible
for the overall direction and control of
the Project.

Management

4.2 Responsibility for the operational management of the Project will be vested jointly
in the Australian Project Manager (with

responsibility as outlined at Annex III)
and the Indonesian Project Manager.

Advisory Board

4.3 There will be a Project Advisory Board
comprising six members. The Indonesian
Government will appoint four members to
the Board, one of whom will be the Chairman.

· .... I I . ....

- J Each of the four Indonesian members will
be a nominee respectively of the Geological
Research and Development Centre of Indonesia, Department of Mines and Energy,
BAKOSURTANAL and the Cabinet Secretariat.
The Australian Government will appoint two
members to the Board, one of whom will be
a nominee of the Australian Development
Assistance Bureau and the other a nominee

of the managing agent. In addition the
Project Managers will be ex-officio members
of the Board for the purposes of giving
advice. The Project Advisory Board will
meet not less than twice per year and will
advise the Governments of Indonesia and
Australia on the Project. The Advisory
Board's functions will include
(a) advice to the two Governments on
i) the future development of the
Project and on major changes (if any)
in program and budget;
ii) implementation of the Project.
(b) review of the work program and budget
at least annually;
(c) liaison with appropriate civil and
military authorities at the national
and provincial level.
CONTRIBUTIONS

5.1 The contributions of the Indonesian and
Australian Governments are detailed in
Annex I and their total value is estimated
to be Rupiahs 1,500 million and A$

6.o

million respectively. Expenditure on the
Project will be subject to the normal

..... I I . ....

- 4 annual appropriation procedures of the
Governments of Indonesia and Australia.
No expenditure will be incurred in excess
of the sum to be contributed by the
Australian Government without prior
notification to the Indonesian Government.
EVALUATION AND

6.1 Evaluations of progress of the Project
will be made periodically. Subject to the

REVIEW

development of the Project and the advice
of the Project Advisory Board, the
evaluation program will be as follows
(a) on completion of field work in year 2;
(b) on completion of field work in year 4·

'

(c) on completion of field work in year 6·,
( d) at the completion of each field season
there wi.l-1 be a review of the
performance of helicopter support
provided;
(e) at any other times as may be deemed
desirable by the Executing Authorities.

6.2 Continuation of the Project following each
evaluation will depend on satisfactory
achievement of agreed objectives and of
agreed inputs by both Indonesia and
Australia. Evaluation will be undertaken
by a joint investigation team appointed by
the two Governments.
EXEMPTIONS FROM
TAXES AND IMPOSTS
Personnel

7.

The Indonesian Government in accordance
with the existing Indonesian laws and
regulations wiJl facilitate the establishment in Indonesia of the Australian Project
personnel required to carry out the purposes
of the Project, by

· · · · . I I . ....

-

5 -

(a) exempting project salaries and allowances
from income tax and other charges;
(b) exempting personal and household effects
from import duties;
(c) exempting from import duty or sales tax
as appropriate to Indonesian Government
regulations one motor vehicle per
employee for the personal use of project
personnel;

(ct) extending to Australian project personnel
all other entitlements accorded to the
aid personnel of any other donor country.
Equipment and
goods

8.

The Indonesian Government in accordance with
the existing laws and regulations will
exempt from import duties and other taxes
all vehicles, equipment and goods supplied
by the Australian Government for the agreed
purpose of the Project.

DATA AND REPORTS

9.1 The Government of the Republic of Indonesia
will have title to all data collected and
compiled as a result of the survey work of
the Project.

9.2 Processing and compilation of data will be
done jointly by the Indonesian Government
and the Australian Government and be done

in Indonesia where possible. However, in
cases where suitable facilities are not
readily available in Indonesia, processing
and compilation of data may be undertaken
in Australia.

9.3 Final geological, photogeological, geochemical

I

and geophysical maps, together with
accompanying reports will be prepared
jointly by the Indonesian Government and the
Australian Government and be published in
Indonesia by the Indonesian Government •

. . . . . I I . ....

I

- 6 9.4
ｔｨｲｯｵｾｴ＠

the duration of the Project, the
Project Managers are reqnired to submit a
joint quarterly

report to the
ｰｲｯｾ･ｳ＠

Executing Authorities and both Governments.

FREEDOM FROM

10. This Memorandum noes not in any way ir!lply

OBLTGATIO!\

any obligatjon on the part of the Indonesian
Government to erant prior
ｲｩｾｨｴ＠

to

Australian Government arencies or Australian
private enterprises to develop any
ｭｩｮｾ＠

interest in the Province of Irian Jaya.
!'-IBDICAL

11. In the event of an accident or illness the

EVACUATION

Indonesian Government will, at the request
of the Austra lian Project Manager, facilitate
the medical evacuation to Australia of
project personnel by aircraft or such other
transport as the Australian Project Manager
deems necessary.

AMENm!ENTS

12.
ｭ･ｮ､ｾｴｳ＠

without Alteration to the pur pose

of this Memorandum may be made at any time
by an Exchange of Letters between the two
Governments.

13. Annexes 1, 2

ANNEXES

And

3 of this Memoranili1m form

an integral part of' it.

DONE at

Jakarta

in duplicate, this eighteenth day of May 1979.

FOR THE GOVEF.N1'1ENT OF THE
REPUBLIC O,F

_,,. \USTRALIA
ｔｾｄｏｎＸｓｉａ＠

Signed

Signed
Prof. D:t. J .A.

FOK THE GOVERN}RNT OF

ｋｊｾｌｉ＠

Director General of Mines

T.K. CRITCHLEY
Ambassador

- 7 ANNEX I
PROJECT OUTLINE AND CONTRIBUTION

1.

OBJECTIVES
The prime objective of the program is to assist
Indonesia to strengthen institutional long-term
capacity to undertake systematic and comprehensive
geological and geophysical surveys and to produce
appropriate quality maps and reports.
The secondary objective of the project is to assist
in geological and geophysical surveys of the
Province of Irian Jaya as a means of providing the
Indonesian Government with information necessary
for the planning of earth resource management and
utilization. The systematic mapping will identify
and outline areas with potential for mineral and
energy resources including petroleum, coal and
hydro-electric power.
The results of the Project will be published in a
series of geological and geophysical maps which
will conform with series maps published by the
Geological Research and Development Centre, and in
accompanying reports.

2.

IMPLEMENTATION
The primary aim of training Indonesian personnel
will be carried out by on-the-job training in the
field and in the office, but it is also envisaged
that some training will be carried out in Australia.
The personnel and equipment necessary to attain the

•

objectives of the Project (see Chapter

J,

Australian

Contribution) will be supplied as required but it is
understood that the transfer of the Australian
personnel to Bandung shall be completed as early as
possible. The Australian personnel will be phased

..... I I . ...•

- 8 out in accordance with the progress of the Project,
with the exception of the Australian Project Manager
who will continue until year 10 or termination of
the Project at an earlier date. In addition, short
term advisers may be assigned to the Project to
advise the specialists on technical matters, to
assist with training programs, and to meet any other
requirements that may arise.
The field work involved in the Project should be
completed in seven years and the follow-up
investigations and publication of results should be
completed in a further three years.
In view of the difficulty of access in Irian Jaya
helicopter will constitute the main form of transport
and the Australian Government will provide funds for
helicopter charters within the limits set out in
Chapter

J.

During the early stages of the Project the processing
of samples and the compilation and processing of
data will be carried out both in Australia and
Indonesia. In later years sample processing and data
compilation will be done in Indonesia provided
adequate facilities are available. Indonesian
geologists should occupy short-term trainee positions
in Australia to learn techniques of follow-up and
preparatory work.

J.

AUSTRALIAN CONTRIBUTION
The total cost of the Australian contribution is
estimated to be and is made up as follows
A. Geological and Geophysical Surveys
(a) Staff

..... I I . ....

- 9 Australia will provide sufficjent professional and
technical staff (as indicated in Annex II) to
carry out the pu_rposes of the Project which include
on-the-job training of Indonesian counterparts in
the use of helicopters in regional geological and
geophysical mapping, and in the processing of
material and data obtained in the field thereby.
Australia may also provide such administrative
support staff as may be deemed necessary.
Australia will provide all salaries and allowances,
air fares to and from Australia and within Indonesia, and residential accommodation in Indonesia
for Australian staff and families.
Estimated cost A$ 3,550,000
B. Equipment:
Australia will provide equipment required in the
field including :

6 light vehicles
2 trail motor cycles
2 5,5 m. Aluminium boats with outboard motors
2 3 m. In£latable boats with outboard motors
camping equipment
medical supplies
field drafting equipment and supplies
foodstuffs
2 La Coste Romberg gravity meters
2 magnetometers
1 recording magnetometer base system

5 mechanism barometers, normal range
5 mechanism microbarometers, high altitude range
1 recording base microbarograph •

. . . . . I I . ....

- 10 In addition, Australia will provide in Bandung
transport, office, and laboratory equipment,
for the use of Australian Project personnel,
including :

6 vehicles
6 petrological microscopes
2

table stereoscopes

4

mirror stereoscopes

Laboratory equipment for palaecntological
determinations
Desk top computer with appropriate software
and basic language for processing geological
and geophysical data.
Office equipment and supplies
Laboratory and drafting supplies
All equipment specifically purchased for the
Project by the Australian Government will, when
no longer required by the Australian Project
Manager for project use, become the property of
the Geological Research and Development Centro.
The cost of delivery of all such vehicles,
equipment and supplies to Indonesia will be met
by the Australian Government.
Estimated cost A$700,000.
C. Training
Australia will provide either in Indonesia or
Australia appropriate training for Indonesian
personnel directly involved in the Project,
including training in editing maps and English
texts and compiling and reducing photo-scale
maps.

I

Estimated cost A$100,000.

..... I I . ....

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11 -

D. Laboratory Services
Australia will provide laboratory services in
Australia, at least initially, in radiometric
age determination, geochemistry, palaeontology
and petrology in association with on-the-job
training in Australia of appropriate
Indonesian personnel.
Estimated cost A$JOO,OOO.
E. Helicopter Charter
Subject to annual review, Australia will
provide in each of years 1978 to 1983 funds
up to a maximum sum of A$ 225,000 for
helicopter charter.
Estimated cost A$1.J5 million.

4.

INDONESIAN CONTRIBUTION
The Indonesian Government will take the necessary
steps to :
(a) facilitate the admission into and movement
within Indonesia, and Irian Jaya in particular,
of all project personnel, equipment and
supplies;
(b) provide landing and access ri g hts for helicopters,
other aircraft and shipping required for the
purposes of the Project;
(c) ensure that all project equipment including
chartered helicopters, other aircraft and
shipping will be at the full disposal and for
the exclusive use of the Proj e ct;

I
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12 -

(d) limit the attachment of personnel to the Project
to those specifjcally required by the Project
and mutually agreed upon by both Project
Managers;
(e) facilitate the shipment to Australia of all
samples to be processed in Australia, including
a comprehensive collection of rock, mineral and
fossil samples provided always that Indonesian
requirements for type samples shall have
priority;
(f) make available for the purposes of the Project
all relevant geological reports and maps dealing
with Irian Jaya produced by companies or
government instrumentalities together with all
relevant topographic maps and aerial photographs.
The Indonesian Government will, in adnition, provide
the following
(A) Stal'f :
Geologists for on-the-job training in techniques
of using helicopters in the regional geological
and geophysical surveys, together with a
counterpart Project Manager, technical
assistants, draftsmen and other support staff.
Estimated cost Rp 280 million.
(B) Maps and Photographs :
All necessary maps and aerial photographs,
including those produced under Defence Cooperation Programs, together with
｡ｰｲｯｩｾｴ･＠

stationery.
Estjmated cost Rp 50 million.

I

..... I I . ....

- lJ (c) Office and Field Accommodation and Storage
Integrated office accommodation in Bandung for
the exclusive use of Indonesian and Australian
field and support staff employed on the Project.
The office accommodation will be fully furnished
and equipped with adequate power supply and
plumbing including washroom and toilet facilities.
Ten square metres of office space will be
provided for each geologist together with a
large drawing office and photogeology room
(80 sq.m.) a sample preparation room, a store
room and a workshop.
In addition, the palaeontological laboratory of
the Geological Research and Development Centre
will provide sufficient storage, preparation
and office space for a macrofossil study cell.
Indonesia will also provide office accommodation
in the field if available, and dry, secure verminproof storage in Irian Jaya for party equipment
between field seasons, together with a full-time
watchman.
Estimated cost Rp 280 million.
(D) Fuel :
All fuel required for the project. For each field
season it will arrange for supplies to be
delivered one month before the planned
commencement of field work to the administrative
centre or air field at which the operators will
be based on that field season.
The fuel to be supplied includes aviation turbine
kerosine (AVTUR) of the correct specification for
helicopter charter in any one year together with

I

other aviation fuel, motor spirit and diesel fuel

..... I I . ....

- 14 for use in Project or chartered equipment and
liquified petroleum gas (LPG) for cooking and
lighting, and necessary lubricating oils.
Estimated cost Rp 160 million.
(E) Other Field Costs
As required, fixed-wing aircraft, vehicles and
shipping within Indonesia as well as the cost of
local labour, local purchase and repair of
equipment and meet other expenses incurred
within Indonesia including the positioning of
fuel, equipment and party personnel, and field
accommodation in available housing.
Indonesia will also provide one base-camp radio
and eight portable field radios for use in
Irian Jaya.
Estimated cost Rp 425 million.
(F) Laboratory Services
Laboratory services as required by the Project,
including thin-section preparation, micropalaeontology and geochemical analysis to the
extent that existing facilities are adequate or
as they may be upgraded by the provision of
equipment, substantial materials and training
from Australia.
Estimated cost Rp 75 million.
(G) I?rafting and Publication
Personnel, equipment and meet the cost of fair
drawing and publication of gravity maps and 19
geological maps of Irian Jaya at a scale of

I

1:250,000 and the publication of accompanying

· · · .. I I . ....

I

- 15 explanatory notes. Indonesia will also finance
publication of special texts or maps concerning
areas of particular interest.
Estimated cost Rp 70 million.
(H) Helicopter Charter
Subject to annual review Indonesia will provide
in each of years 1978 to 1983 any funds in
excess of the sum provided by Australia which
may be necessary for up to a maximum of 800
hours helicopter charter in each field season .
Estimated cost Rp JOO million.

- 16 ANNEX

II

AUSTRALIA STAFF

DESIGNATION

NUMBER

ＭＮｾ＠

Project Manager

1

Supervising Geologist

1

Supervising Geophysicist

1

Senior Geologists

J

Geologists

2

Geophysical Technician

1

Administrative Officer

1

I
I
I
I
I
I
I
I
I
I
I
I

In addition, specialist geoscientists will be provided
on short-term assignments as required.

- 17 ANNEX

III

AUSTRALIAN PROJECT MANAGER - RESPONSIBILITIES

The Australian Project Manager will be an ex of1icio member
of the Pro ject Anv isory Board.
His primary responsibility will be to mana g e and control,
in consultation with the Indonesian Project Manager, the
Australian inputs to the project.
The Australian Project Manager will be responsible f or

the

following :
the disbursement of any finance provided to him by
Australia;
the use and disposal of all vehicles and equipment
provided by Australia;
duties, discipline, leave and other administrative
issues covering Australian personnel;
the appointment of a deputy Australian Project Manager
with full authority to
｡ｳ

ｾ ｵｭ･＠

the
ｲ･ｾｰｯｮｳｩ｢ｬｴ＠

of

the Project Manag er during his absence;
ensuring the safety of Australian project personnel,
particuL3rl y with regard to any flight in any aircraft
when in his opinion the safety of Australian personnel
could be unduly endangered by such flight;
arrangements for the processing in Australia of some
samples during the first two years of the Proj e ct.