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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF AUSTRALIA
RELATING TO THE PROJECT FOR ANIMAL RESEARCH AND
DEVELOPMENT (PARO) IN INDONESIA
GENERAL

1.

THIS MEMORANDUM expresses the understandings 0f
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 Project
for Animal Research and Development (PARD) ,
hereinafter referred to as the Project, located
at the Research Institute for Animal Production
(RIAP), Ciawi.


The Project is a continuation

of an existing program of co-operation between
the two Governments in which the major undertaking
was "the establishment at Ciawi of a new animal
research laboratory and associated buildings
conducJve

to problem-solving research of the

highest standard, with the long - term view of
staffing it fully with Indonesian scientists
trained to carry out first class research".
This Memorandum replaces that Memorandum signed
on 4 December 1974 setting out the administrative
arrangements for the establishment of the Project .
Objectives of the Project are detailed at Annex 1.
AUTHORITIES

2.


The Executing Authorities for this Project
will be
For the Indonesian Government

The Central

Research Institute for Animal Science of the
Agency for Agricultural Research and Development
(CRIAS-AARD), Ministry of Agriculture.
For the Australian Government

The Australian

Development Assistance Bureau (ADAB) of the

F
(

Department of Foreign Affairs.

The Australian Development Assistance Bureau may
nominate suitable qualified agents to undertake
any part or all of the Project on its behalf.

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2

DURATION

3.

This Memorandum will take effect from the date
of its signature and the Project will be deemed
to have conunenced on 4 December 1974.

The


Australian contribution to the Project and all
undertakings given herein will cease on 31 December
1989 or on such other date as may be arranged
between the two Governments.
PROJEcr

4.

ORGANISATION

Project management is detailed at Annex 2.
Responsibility for development and direction of
the Project will be vested in a Project Coordinating Board, whose chairman will be appointed
by the Indonesian Government.

Membership of the

Board will include the Director of RIAP,
a representative appointed by AARD, the Australian
Project Manager and a nominee of the Australian

Embassy, Jakarta.

The Board will meet not less

than twice each year.
5.

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

co-ordinating policy for the Project;

(b)

co-ordinating the disposition of the p roject
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(c)


reviewing and reporting on progress to the
two Governments; and

(d)

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

RESPONSIBILITY

6.

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

The final

authority for decisions on implementation of the
agreed work program shall rest with the Director
General of AARD after consultation between the

Director of CRIAS, the Director of RIAP and the
Australian Project Manager.

3

CONTRIBUTIONS

7.

The contributions of the Indonesian and Australian
Governments are detailed in Annex 3 and are estimated
to value RplO billion and $A7.917 million respectively.
Disbursement of the Indonesian and Australian
contributions will be subject to the normal annual
Parliamentary approval of appropriations.

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 would be undertaken by a joint investigation
team appointed by the two Governments and independent of
staff involved in the Project.
It is expected that an evaluation will take place
early in 1984.
PERSONNEL

9.

For the purposes of this Project, the Indonesian
Government will, in accordance with existing laws
and regulations, facilitate the employment by
the Australian Government or its agent of personnel
as required for the Project and established between

the two Government by (
(a)

granting exemption from income or other taxes
on project salaries and allowances;

(b)

granting exemption from import and other duties
on personal and household effects;

(c)

granting exemption from import duties on one
cormnercial motor vehicle per expert, or granting
exemption from taxes and duties on the purchase
in Indonesia of one locally assembled motor
vehicle per expert on condition that i t either
be exported, sold to a person who has the same
privileges, or duty paid on its assessed value

at time of sale within Indonesia.

The expert's

assigrnnent should be on a long term basis or at
least a twelve consecutive months period;

(d)

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

(e)

expediting the i ssue of all documentation
required for the entry of, and performance of
work by, project personnel, including work
permits or certificates and drivers ' licenses
for eligible persons.


SUPPLIES

lO .

(a)

The Indonesian Government

will, in accordance

with existing laws and regulations either
exempt from import duties and other truces or
pay such duties on a ll goods supplied by
Australia for the est ablished purposes of the
Project as set out in Annex
(b)

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The Indonesian Government will facilitate
movement of project supplies by providing
appropriate customs and wharfage facilities
in the port closest to the project site and
will be responsible for the expeditious
transport of such equip.nent and supplies to
the

(c)

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and

Project supplies provided by Australia shall be
available for the unr estricted use of the Project
and shall not be withdrawn from such use without
the consent of the Project Co- ordinating Board .
The Australian Project Manager in consultation
with the Indonesian Director of RIAP shall
exercise administrative control over such
supplies for the duration of the Project.

LIABILITY

ll.

The Indones i an Government shall be responsible for
dealing with any claims which may be brought by
third parties against Australia or an executing
agency, their officia l s or other persons performing
services on their behalf and shall hold them harmless
in respect of any claims or liabilities resulting
from operations under this Memorandum.

5

This provision shall not relieve any person from
liability for any criminal, grossly negligent or
fraudulent act.
SECURITY

12.

The Indonesian Government will arrange for any
protection deemed necessary to ensure the safety
of Australian personnel, project and personal
equipnent both at the project location, in transit
and on any other official representational activity
in Indonesia.

The Australian Government will take

reasonable precautions to ensure that Australian
personnel have due regard for local traditions and
customs,
SETTLEMENT OF

13.

DIFFERENCES

Any dispute

arising out of the interpretation or

implementation of the Memorandum shall be settled
amicably by consultation or negotiation between
the two Governments.

AMENDMENTS

14.

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

ANNEXURES 1, 2 and 3 to this Memorandum form an integral part of it.
SIGNED at JAKARTA, in duplicate, this

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FOR セhe@
THE セpublic@

ゥキセM

セ、。ケ@

of

1j81.

GOVERNMENT OF
OF INDONESIA

Signed

FOR THE GOVERNMENT OF
AUSTRALIA

Signed

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ANNEX

1

OBJECTIVES

The Project will provide institutional support to the Research
Institute for Animal Production (RIAP) at Ciawi in carrying out its task
as designated by the Indonesian Government.
The task of RIAP is to conduct animal husbandry research and development
to support
(a)

the increase in quantity and quality of animal production;

(b)

the increase in profit and welfare of the farmer.

The research conducted should be designed to improve the
efficiency with which meat and eggs are produced while taking into
account the need to optimise the role of livestock in mixed farming
systems.

This research should

!

be principally, but not exclusively, relevant to
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take cognisance of the potential for expansion of intensive
animal production at the village and regional level;
be designated to develop the use of indigenous feedstuffs,
particularly agricultural wastes and by-products;
take account of rural employment aspects;
recognise the need for collaborative research with the Research
Institute for Animal Disease and other research institutes in
AARD;

take account of the conservation of genetic and other natural
resources.
The Project will be responsible for a training program for Indonesian
scientists and support professional and technical staff at Ciawi, e.g., in
the analytical, engineering, veterinary, farm and library services and in
scientific reporting.

ANNEX

2

PROJECT MANAGEMENT
1.

The project will be developed in two further stages
(a)

198l
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1984 :

during which period the Project will be

incorporated within CRIAS-AARD and managerial responsibilities
for RIAP-Ciawi will be shared between Indonesia and Australia.
The management responsibilities and development of research
programs will be as follows :
(i)

The facilities at Ciawi will have been directed by
an Australian

until the date of
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signature of this Memorandum, when the Indonesian
Director of RIAP will assume responsibility for all
RIAP facilities and activities including all Project
buildings and assets purchased with Australian funds.
(iil

From the date of signature of this Memorandum the
Australian Research Leader will be the Australian
Project Manager and the Research Co-ordinator at
Ciawi.

The Director of RIAP will appoint an Indonesian

Research
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at Bogar.

The Indonesian and

Australian Research Co'