Selanjutnya
SPECIFIC AGREEMENT
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND THE
GOVERNEMENT OF THE KINGDOM OF BELGIUM
ON THE
IMPLEMENTATION OF THE PROJECT DTA-166
"FEASIBILITY STUDY FOR DEVELOPMENT OF MACHINE TOOL INDUSTRY"
============================================================
The Government of the Republic of Indonesia,
and
the Government of the Kingdom of Belgium
Within the framework of the General Agreement on Technical Cooperation
of June 16, 1969,
Desiring to contribute to the development of the Machine Tool Industry,
Wanting to co-operate in the implementation of the project described
hereafter :
Have agreed as follows :
Article 1 - THE PROJECT
The present agreement aims at the implementation of a feasibility study
for the development of the machine tool industry in Indonesia, herinafter
referred to as "the project". The project is further described in the
Terms of Reference which are attached to this Agreement and form an
integral part thereof.
Article 2 - EXECUTING AGENCIES
2.1. The Belgian Government designates the Belgian Administration for
Development Cooperation (B . A.D.C.) as agency responsible for the
realization of its contribution to the project. The B.A.D.C. is
reprensented in Indonesia by the Development Cooperation Section
of the Belgian Embassy in Jakarta. The B.A.D.C. may entrust the
practical realization of the project or of certain of its parts to
experienced subcontractor(s). Any subcontractor or consultant
experts shall be highly qualified and agreed to by the ..Indonesian
Government.
/(__ ｾ＠
. I ..
2.2. The Government of the Republic of Indonesia designates the Directorate General for Basic Metal Industries, Department of Industry,
as agency responsible for the implementation of its contribution to
and operational matters of the project.
Article 3 - OBLIGATIONS AND CONTRIBUTIONS OF THE BELGIAN GOVERNMENT
The Government of the Kingdom of Belgium shall :
a) take an active part in the realization of the project and take all required administrative and budgetary measures to this end ;
b) provide the services of the experts mentioned in the t.o.r. including
their international travel expenses, their board and lodging, their
urban transport and their international telecommunications expenses.
Article 4 - OBLIGATIONS AND CONTRIBUTIONS OF THE INDONESIAN GOVERNMENT
The Government of the Republic of Indonesia, in accordance with the prevailing laws and regulations shall :
a) make available furnished and equipped offices and domestic telecommunication facilities as required for the implementation of the project
b) appoint full time senior counterparts as specified in the Terms of
Reference, including the domestic travel expenses related to their
duties ;
c) bear the cost of the agreed official project related domestic journeys
of the Belgian experts (save urban transport) ;
d) provide the Belgian experts with the exemptions and privileges mentioned in article 7 of the General Agreement on Technical Co-operation
of June 16, 1969 ;
e) provide the available reports, maps, library documents, technical data
and other information required for the proper implementation of the
project ;
f) issue the required agreements for the Belgian experts.
Article 5 - CONTROL AND EVALUATION
5.1. Both governments may review the aims, objectives and implementation
of the project and if necessary discuss the main problems occuring
during the implementation of the project at the convening of a joint
commission for this purpose ;
JZJ
./
..
5.2. the governement of Indonesia reserves the right to request the
Belgian governement to recall any of the consultant's personnel in
Indonesia whose services and/or activities are found unsatisfactory
or for reasons of misconduct, misbehaviour or illness ,
5.3. at any time, both governments may supervise and/or control on the
spot the state of progress of the project ,
5.4. where necessary and after consultation , both governments may evaluate
the project or part of its implementation aspects.
Article 6 - SETTLEMENT OF DISPUTE
Any dispute arising out of the interpretation or implementation of this
Specific Agreement shall be settled amicably, by consultation or negotiation between the two governments .
Article 7 -
ENTERING INTO FORCE AND VALIDITY
7.1. This Specific Agreement and the attached terms of reference shall
enter into force on the date of signing and remain in force until
completion of the project ,
7.2. amendments to this Specific Agreement not resulting in
increased
cost to any of the contracting parties may be made with mutual consent of the two governments by exchange of letters.
any
IN WITNESS WHEREOF,
the undersigned duly authorized have signed this Specific Agreement
on april 13, 1 984 .
Done at Brussels
In two copies in the English language,
For the Government of the
Republic of Indonesia,
Signed
-·
I'll I
Ｇ
ｾ＠
For the Government of the
)fi"Ilgdom of ｂｾｬｧｩｵｭＬ＠
Signed
TERM OF REFERENCE
Feasibility study on the Production of Ma.chine Tools.
1 • Project Background
The rapid growth of the engineering industries of Indonesia (an average
of 19% p.a.since 1972) has led to great demands for practical all
types of machine tool. This is made very clear by an MIDC study on the
increase in machine tool holdings over the 1972 to 1978 period :
T YP e
Lathe
Milling Machine
Boring and Drilling
Machine
Grinding Machine
Press
Shaping Machine
Others
1972
1978
4,ooo
500
7,200
950
1'800
700
300
1, 400
1, 300
3,420
1 ,630
570
2,660
3,470
A further reason for the high level of demands is that many of the
existent machine tools are old and can no longer work to the necessary
tolerances. A study of the condition of machine tools in Indonesia
that was carried out by the Hindustan Machine Tool Factory (HMT)
produced the following results :
- 10 to 15 % of all machines are in good condition
- 60 to 70 % need overhauling
- 20 to 25 u can no longer be used
Until now, demands for machine tools for the working of metals have
been met by imports. Over the past seven years, these imports developed
as follows :
... / ...
••c:t
2.
YEAR
Value
(million -
1973
1974
1975
1976
1977
1978
1979
us.$.)
11 , 087
16, 981
13,890
20,806
23,870
19,928
27,037
In spite of the high level of demands, there is no domestic production
of machine tools, the main reasons are probably as follows :
Most of the firms that have been established during the past ten
years are joint ventures with foreign partners, who have been
permitted to import machine tools from their home countries.
- The remaining "free" machine tool market has been largely supplied
with imports from so-called "cheap countries" that subsidise
exports (Taiwan, Hongkong, Cheahoslovakia, GDR, etc ••• ), so that
domestic production would be faced with great competition.
2. Project Description.
As shown by the above-mentioned studies, Indonesia does have demands
for a variety of machine tools, some of which could well be built
within the country. A feasibility study should therefore be carried
out to determine.
- what quantities
-of which machine tools
could be economically produced, and
- from what time onwards.
The productionwill be on a "one off" or short-run basis, whereby
assembling (purchasing of intermediates and components from overseas)
will prevail at first. Domestic suppliers will have to qualify themselfes over the course of time. A high local content is to be achieved
as quikly as possible. Examples of development possibilities are
Local development of machine tool types with technical support
from a foreign industrial enterprise.
- Production of a number of standardized types under licence from
a foreign manufacturer , beginning with assembly work.
- Introduction of a broader programme as a joint venture with a
foreign partner.
.../ ...
3.
3. Scope of work of the Consultant
The necessary stages of work in the preparation of the feasibility
study are :
- Market analysis
- Investigation of subcontracting possibilities
- Location
Production capacity, production process and engineering
Organization and manpower
Project implementation
- Financial and economic evaluations.
3.1. Market Analysis
Potential customers are all sectors of the engineering industries
and the vocational training centres.
During the 1972 to 1979 period, the engineering industries had an
average growth rate of 19% p.a. The HTM study contains a list of
the main customer seQtors in Indonesia.
To be able to estimate the demands and determine a range of products
which will meet the market requirements, the various requirements of
the individual sectors in respect of price, quality and reliability
should be ｩｮｶｾｧ｡ｴ･､＠
in greater detail.
The government plants to establish 250 new vocational training
centres by the and of 1984 (Repelita III). Annual demands for 300
lathes are estimated, to equip these and improve the facilities of the
existent centres. (The mondiale S.A. nroject is based on this demand
figure.) Numerous other machine tools apart from lathes are needed;
the demands will have to be determined.
3.2. Analysis of Subcontracting Possibilities
In keeping with the objective of the Indonesian Government of
ｩｮ｣ｲｾｳｧ＠
the degree of integration of industry by utiliZing
subcontracting possibilities, a detailed investigation must be carried
out to determine what intermediates, part and component could be
supplied by domestic firms.
.../ ...
4.
The machine
building of
sheet steel
small parts
tool factory would for example need steels for the
machines, iron castings, steel casting, brass components,
roller bearings, motors, transmission components,
and electrical components.
domestic industry could already supply castings, motors and
sheet steel. Casting could for example be obtained from the Barata
Foundry. ｍｾｴｯｲｳ＠
of the required rating (up to 5kw) are not being
assembled in Indonesia; they are of the asynchronous type.
Syncronous motors are howeverrequired as drive units for machine
tools. It will be necessary to determine whether the assembling of
such motors in Indonesia would be economical. (The production of
motors is decreasing, although demands are growing.)
Sheet steel can be be obtained from the P.T. Krakatau Steel when
its cold-rolling plant is taken into service. The study must
describe the quality standards for parts from subcontractors,
and must list measures for qualifying possible Indonesian suppliers.
ｔｾ･＠
3. 3. Location
The optimal location for the factory will have to be determined
on the basis of the results of the study of subcontracting possibilities and allowing for further factors such as the availability of
manpower, energy, trlfic infrastructure and the regional structure
of sales. Consideration should also be given to the possibility of
lin.,...;king the project with the Mondiale project.
3.4. Production Capacity, Production Process and Engineering
The range of products, production capacity and the process must be
determined and the necessary buildings, machines and equipment for
the factory defined on the basis of the results of the study of
demand developments and possibilities of subcontracting.
3.5. Organization and Manpower
The optimal
ｯｲｧ｡ｮｩｺｾ＠
will have to be found for the company,
and the quality and quarfitative manpower requirements determined.
Particular attention must be given to ways recruiting sUitablyqualified staff and what training possibilities exist or could be
created (for example, by utilization of the know-how gathered
during mondiale production activities).
3.6. Project Implementation
A detail_ed time sche-dule for realization of the project must be
prepared.
/
... ...
5.
Particular attention must be given to the development of subcontracting relationship (qualification of the subcontracting
enterprises, coorporation with subcontractors).
3.7. Financial and Economic Evaluations
Financial and economic evaluations of the project must be carried
out.
In the case of economic evaluation, the effects in the subcontracting
sector will have to be investigated in detail. Both evaluations are
to be in accordance with UNIDO guidelines } •
4. Time Schedule for preparation of the Study
Four calendar months will be necessary for the study; two months
thereof for the collection of data in Indonesia, a month for
preparation of a draft report in the home office, a week for
discussion of the draft "with the client in Indonesia, and three
weeks for preparation of the final report in the home office.
5. Number and Qualifications of Experts
Performance of the study will call for three experts with the
following qualifications for the given periods of duty :
One academically-qualified engineer, speciality machine-building,
with particular experience in the production of machine tools;
term of duty 4 months.
One economist engineer with a special experience of plant planning;
term of duty 3 months.
One economist with a special experience of the preparation of
feasibility studies for the industrial sector; term of duty
2.5 months.
Apart from the essential professional experience, all three experts
should preferably have an experience of work in Indonesia.
6. Contributions of the client
An English-speaking counterpart will be provided for each expertfor
the duration of his work in Indonesia. An office with the necessary
equi pment should be provided for the period of duty in Indonesia •
.../ ...
6.
The transport cost:; in Indonesia are to be borne by the client,
except urban (taxi) transportation costs. These are to be horne
by the contractor and allowed for in its costing.
?. Reports
The draft report to be submitted 3 months after commencing work,
in 25 copies; the final report is to be submitted 4.5 months
(including 0.5 month for typing, translation, and printing)
after commencing work, in 25 copies. All specifications, units,
quality gradings, etc ••• are to be as
per ISO standards.
6
gas
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND THE
GOVERNEMENT OF THE KINGDOM OF BELGIUM
ON THE
IMPLEMENTATION OF THE PROJECT DTA-166
"FEASIBILITY STUDY FOR DEVELOPMENT OF MACHINE TOOL INDUSTRY"
============================================================
The Government of the Republic of Indonesia,
and
the Government of the Kingdom of Belgium
Within the framework of the General Agreement on Technical Cooperation
of June 16, 1969,
Desiring to contribute to the development of the Machine Tool Industry,
Wanting to co-operate in the implementation of the project described
hereafter :
Have agreed as follows :
Article 1 - THE PROJECT
The present agreement aims at the implementation of a feasibility study
for the development of the machine tool industry in Indonesia, herinafter
referred to as "the project". The project is further described in the
Terms of Reference which are attached to this Agreement and form an
integral part thereof.
Article 2 - EXECUTING AGENCIES
2.1. The Belgian Government designates the Belgian Administration for
Development Cooperation (B . A.D.C.) as agency responsible for the
realization of its contribution to the project. The B.A.D.C. is
reprensented in Indonesia by the Development Cooperation Section
of the Belgian Embassy in Jakarta. The B.A.D.C. may entrust the
practical realization of the project or of certain of its parts to
experienced subcontractor(s). Any subcontractor or consultant
experts shall be highly qualified and agreed to by the ..Indonesian
Government.
/(__ ｾ＠
. I ..
2.2. The Government of the Republic of Indonesia designates the Directorate General for Basic Metal Industries, Department of Industry,
as agency responsible for the implementation of its contribution to
and operational matters of the project.
Article 3 - OBLIGATIONS AND CONTRIBUTIONS OF THE BELGIAN GOVERNMENT
The Government of the Kingdom of Belgium shall :
a) take an active part in the realization of the project and take all required administrative and budgetary measures to this end ;
b) provide the services of the experts mentioned in the t.o.r. including
their international travel expenses, their board and lodging, their
urban transport and their international telecommunications expenses.
Article 4 - OBLIGATIONS AND CONTRIBUTIONS OF THE INDONESIAN GOVERNMENT
The Government of the Republic of Indonesia, in accordance with the prevailing laws and regulations shall :
a) make available furnished and equipped offices and domestic telecommunication facilities as required for the implementation of the project
b) appoint full time senior counterparts as specified in the Terms of
Reference, including the domestic travel expenses related to their
duties ;
c) bear the cost of the agreed official project related domestic journeys
of the Belgian experts (save urban transport) ;
d) provide the Belgian experts with the exemptions and privileges mentioned in article 7 of the General Agreement on Technical Co-operation
of June 16, 1969 ;
e) provide the available reports, maps, library documents, technical data
and other information required for the proper implementation of the
project ;
f) issue the required agreements for the Belgian experts.
Article 5 - CONTROL AND EVALUATION
5.1. Both governments may review the aims, objectives and implementation
of the project and if necessary discuss the main problems occuring
during the implementation of the project at the convening of a joint
commission for this purpose ;
JZJ
./
..
5.2. the governement of Indonesia reserves the right to request the
Belgian governement to recall any of the consultant's personnel in
Indonesia whose services and/or activities are found unsatisfactory
or for reasons of misconduct, misbehaviour or illness ,
5.3. at any time, both governments may supervise and/or control on the
spot the state of progress of the project ,
5.4. where necessary and after consultation , both governments may evaluate
the project or part of its implementation aspects.
Article 6 - SETTLEMENT OF DISPUTE
Any dispute arising out of the interpretation or implementation of this
Specific Agreement shall be settled amicably, by consultation or negotiation between the two governments .
Article 7 -
ENTERING INTO FORCE AND VALIDITY
7.1. This Specific Agreement and the attached terms of reference shall
enter into force on the date of signing and remain in force until
completion of the project ,
7.2. amendments to this Specific Agreement not resulting in
increased
cost to any of the contracting parties may be made with mutual consent of the two governments by exchange of letters.
any
IN WITNESS WHEREOF,
the undersigned duly authorized have signed this Specific Agreement
on april 13, 1 984 .
Done at Brussels
In two copies in the English language,
For the Government of the
Republic of Indonesia,
Signed
-·
I'll I
Ｇ
ｾ＠
For the Government of the
)fi"Ilgdom of ｂｾｬｧｩｵｭＬ＠
Signed
TERM OF REFERENCE
Feasibility study on the Production of Ma.chine Tools.
1 • Project Background
The rapid growth of the engineering industries of Indonesia (an average
of 19% p.a.since 1972) has led to great demands for practical all
types of machine tool. This is made very clear by an MIDC study on the
increase in machine tool holdings over the 1972 to 1978 period :
T YP e
Lathe
Milling Machine
Boring and Drilling
Machine
Grinding Machine
Press
Shaping Machine
Others
1972
1978
4,ooo
500
7,200
950
1'800
700
300
1, 400
1, 300
3,420
1 ,630
570
2,660
3,470
A further reason for the high level of demands is that many of the
existent machine tools are old and can no longer work to the necessary
tolerances. A study of the condition of machine tools in Indonesia
that was carried out by the Hindustan Machine Tool Factory (HMT)
produced the following results :
- 10 to 15 % of all machines are in good condition
- 60 to 70 % need overhauling
- 20 to 25 u can no longer be used
Until now, demands for machine tools for the working of metals have
been met by imports. Over the past seven years, these imports developed
as follows :
... / ...
••c:t
2.
YEAR
Value
(million -
1973
1974
1975
1976
1977
1978
1979
us.$.)
11 , 087
16, 981
13,890
20,806
23,870
19,928
27,037
In spite of the high level of demands, there is no domestic production
of machine tools, the main reasons are probably as follows :
Most of the firms that have been established during the past ten
years are joint ventures with foreign partners, who have been
permitted to import machine tools from their home countries.
- The remaining "free" machine tool market has been largely supplied
with imports from so-called "cheap countries" that subsidise
exports (Taiwan, Hongkong, Cheahoslovakia, GDR, etc ••• ), so that
domestic production would be faced with great competition.
2. Project Description.
As shown by the above-mentioned studies, Indonesia does have demands
for a variety of machine tools, some of which could well be built
within the country. A feasibility study should therefore be carried
out to determine.
- what quantities
-of which machine tools
could be economically produced, and
- from what time onwards.
The productionwill be on a "one off" or short-run basis, whereby
assembling (purchasing of intermediates and components from overseas)
will prevail at first. Domestic suppliers will have to qualify themselfes over the course of time. A high local content is to be achieved
as quikly as possible. Examples of development possibilities are
Local development of machine tool types with technical support
from a foreign industrial enterprise.
- Production of a number of standardized types under licence from
a foreign manufacturer , beginning with assembly work.
- Introduction of a broader programme as a joint venture with a
foreign partner.
.../ ...
3.
3. Scope of work of the Consultant
The necessary stages of work in the preparation of the feasibility
study are :
- Market analysis
- Investigation of subcontracting possibilities
- Location
Production capacity, production process and engineering
Organization and manpower
Project implementation
- Financial and economic evaluations.
3.1. Market Analysis
Potential customers are all sectors of the engineering industries
and the vocational training centres.
During the 1972 to 1979 period, the engineering industries had an
average growth rate of 19% p.a. The HTM study contains a list of
the main customer seQtors in Indonesia.
To be able to estimate the demands and determine a range of products
which will meet the market requirements, the various requirements of
the individual sectors in respect of price, quality and reliability
should be ｩｮｶｾｧ｡ｴ･､＠
in greater detail.
The government plants to establish 250 new vocational training
centres by the and of 1984 (Repelita III). Annual demands for 300
lathes are estimated, to equip these and improve the facilities of the
existent centres. (The mondiale S.A. nroject is based on this demand
figure.) Numerous other machine tools apart from lathes are needed;
the demands will have to be determined.
3.2. Analysis of Subcontracting Possibilities
In keeping with the objective of the Indonesian Government of
ｩｮ｣ｲｾｳｧ＠
the degree of integration of industry by utiliZing
subcontracting possibilities, a detailed investigation must be carried
out to determine what intermediates, part and component could be
supplied by domestic firms.
.../ ...
4.
The machine
building of
sheet steel
small parts
tool factory would for example need steels for the
machines, iron castings, steel casting, brass components,
roller bearings, motors, transmission components,
and electrical components.
domestic industry could already supply castings, motors and
sheet steel. Casting could for example be obtained from the Barata
Foundry. ｍｾｴｯｲｳ＠
of the required rating (up to 5kw) are not being
assembled in Indonesia; they are of the asynchronous type.
Syncronous motors are howeverrequired as drive units for machine
tools. It will be necessary to determine whether the assembling of
such motors in Indonesia would be economical. (The production of
motors is decreasing, although demands are growing.)
Sheet steel can be be obtained from the P.T. Krakatau Steel when
its cold-rolling plant is taken into service. The study must
describe the quality standards for parts from subcontractors,
and must list measures for qualifying possible Indonesian suppliers.
ｔｾ･＠
3. 3. Location
The optimal location for the factory will have to be determined
on the basis of the results of the study of subcontracting possibilities and allowing for further factors such as the availability of
manpower, energy, trlfic infrastructure and the regional structure
of sales. Consideration should also be given to the possibility of
lin.,...;king the project with the Mondiale project.
3.4. Production Capacity, Production Process and Engineering
The range of products, production capacity and the process must be
determined and the necessary buildings, machines and equipment for
the factory defined on the basis of the results of the study of
demand developments and possibilities of subcontracting.
3.5. Organization and Manpower
The optimal
ｯｲｧ｡ｮｩｺｾ＠
will have to be found for the company,
and the quality and quarfitative manpower requirements determined.
Particular attention must be given to ways recruiting sUitablyqualified staff and what training possibilities exist or could be
created (for example, by utilization of the know-how gathered
during mondiale production activities).
3.6. Project Implementation
A detail_ed time sche-dule for realization of the project must be
prepared.
/
... ...
5.
Particular attention must be given to the development of subcontracting relationship (qualification of the subcontracting
enterprises, coorporation with subcontractors).
3.7. Financial and Economic Evaluations
Financial and economic evaluations of the project must be carried
out.
In the case of economic evaluation, the effects in the subcontracting
sector will have to be investigated in detail. Both evaluations are
to be in accordance with UNIDO guidelines } •
4. Time Schedule for preparation of the Study
Four calendar months will be necessary for the study; two months
thereof for the collection of data in Indonesia, a month for
preparation of a draft report in the home office, a week for
discussion of the draft "with the client in Indonesia, and three
weeks for preparation of the final report in the home office.
5. Number and Qualifications of Experts
Performance of the study will call for three experts with the
following qualifications for the given periods of duty :
One academically-qualified engineer, speciality machine-building,
with particular experience in the production of machine tools;
term of duty 4 months.
One economist engineer with a special experience of plant planning;
term of duty 3 months.
One economist with a special experience of the preparation of
feasibility studies for the industrial sector; term of duty
2.5 months.
Apart from the essential professional experience, all three experts
should preferably have an experience of work in Indonesia.
6. Contributions of the client
An English-speaking counterpart will be provided for each expertfor
the duration of his work in Indonesia. An office with the necessary
equi pment should be provided for the period of duty in Indonesia •
.../ ...
6.
The transport cost:; in Indonesia are to be borne by the client,
except urban (taxi) transportation costs. These are to be horne
by the contractor and allowed for in its costing.
?. Reports
The draft report to be submitted 3 months after commencing work,
in 25 copies; the final report is to be submitted 4.5 months
(including 0.5 month for typing, translation, and printing)
after commencing work, in 25 copies. All specifications, units,
quality gradings, etc ••• are to be as
per ISO standards.
6
gas