Treaty Room - Treaty
FINANCIAL PROTOCOL
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE FRENCH REPlJULrC
With a view to strengthening the ties of friendship and cooperation which bind them, the
Government of the Republic of Indonesia and the Government of the French Republic have agreed to
conclude the present protocol to foster the economic development of Indonesia.
ARTICLE 1 - EXTENT AND PURPOSE OF FINANCIAL SUPPORT
The French Government grants the Government of the Republic of Indonesia a financial support
designed to finance projects included in the development priorities of Indonesia. The said support shall
not exceed 247 MF (TWO HUNDRED FORTY SEVEN MILLION FRENCH FRANCS) and shall be
used to finance the purchase of French goods and services related to the implementation of projects
referred to in annex to the present protocol.
ARTICLE 2 - BREAKDOWN OF FINANCE PACKAGE
•
The financial support provided in Article I hereof shall comprise :
- a loan from the French Treasury of a total amount not exceeding I I I, 15 MF;
- credits guaranteed by the French credit insurance Agency (COF ACE) of a total amount
not exceeding 135,85 MF.
Furthermore, additional guaranteed credits could be made available to the Government of the
Republic of Indonesia in order to finance the COFACE premium .
ARTICLE 3 - MECHANISMS OF FINANCIAL SUPPORT
The financing of the projects referred to in annex shall be provided jointly by the French Treasury
loan and the guaranteed credits. The COFACE premium is paid by the borrower.
Each contract of goods and services referred to in annex hereof shall give drawing rights on the
French Treasury loan and the guaranteed credits equal to 45 % and 55 % respectively of the total value of
the contract financed by the present protocol. The French Treasury loan shall be used to fully finance the
first instalment provided in each contract. The first instalment of each contract financed with the present
protocol shall amount to between I 0 % and 20 % of the value of the contract. The French Treasury loan
and guaranteed credits - used simultaneously - shall finance the remainder of the value of each · of the
aforesaid contracts.
ARTICLE 4 - CONDITIONS GOVERNING CREDIT FACILITIES
a) The French Treasury loan shall be granted for a period of 3 I years, including a grace period of
11 years. The interest rate shall be 0.25 % per year. Said loan shall be repaid in 40 equal consecutive sixmonthly instalments, the first instalment falling due 138 months after the end of the calendar quarter
during which each drawing is made. Interest shall be payable on the total amount outstanding; it shall be
applicable as of the date of each drawing on the French Treasury loan and shall be paid at six-monthly
intervals.
An agreement between Credit National, acting in the name and on behalf of the Government of
the French Republic, and the Ministry of Finance acting in the name and on behalf of the Government of
the Republic of Indonesia, shall define the mechanisms of utilisation and repayment of the French
Treasury loan.
b) The guaranteed credit shall be granted for a period of 10 years and shall be repaid in 20 equal,
consecutive six-monthly instalments, the first instalment falling due six moi1ths after delivery of the
equipment or of completion of the project.
An agreement between the banks approved in France, under the care of AFB-Export, and the
Ministry of Finance acting in the name and on behalf of the Government of the Republic of Indonesia,
shall define the mechanisms of utilisation and repayment of the said credit. The said agreement shall
stipulate that the interest rate applicable shall be the normal interest rate on the currency concerned on the
date of signature of the contract, under the rules of the OECD participant's agreement.
•
ARTICLE 5 - ADDITIONAL FINANCING
The Indonesian authorities will provide additional financing to those mentioned in th is protocol
to complete the implementation of the projects referred to in annex.
ARTICLE 6 - CURRENCY OF ACCOUNT AND PAYMENT
All transactions under the terms of the present protocol shall be carried out in French Francs.
ARTICLE 7 - IMPLEMENTATION DEADLINE AND EXPIRY DATE
In order to qualify for the financial support provided in Article I hereof, contracts must be
concluded by December 31, 1997 at the latest. The final decision for qualification for financing under the
terms of the present protocol will have to be made three months after this date at the latest.
•
No drawing on the French Treasury financing provided by the present protocol shall be made
after September 30, 2001. This date shall not be extended except by special agreement between the two
Governments in the event of exceptional difficulties .
ARTICLE 8 - FREIGHT AND INSURANCE
Freight and insurance to be financed under the present protocol are considered as French services
when:
- freight is provided under a bill of lading issued by French shipping company or under an airway
bill issued by French air-freight company or under a road bill issued by French company, and is certified
by the French appropriate authorities as being a French service.
- insurance is taken out with approved companies on the French market.
ARTICLE 9 - CONTRACTS COVERED
The final decision on whether contracts related to the projects referred to in annex hereof qualify
for financial support under the terms of the present protocol shall be made by exchange of letters between
the Economic and Commercial Counsellor to the French Embassy in Jakarta acting with the authorization
of the competent French authorities and the competent Indonesian authorities.
For each project, the final decision shall be submitted to the conformity of the project to the rules
established by the participants to the OECD consensus.
In case of arrears related to French Treasury loans or guaranteed credits associated to French
Treasury loans or in case of indemnifications related to credits guaranteed by the French credit insurance
Agency (COFACE) and by the Government of the Republic of Indonesia, no final positive decision will
be possible.
ARTICLE 10 - TAXATION
The payment of principal and interest due on the credits provided by the present protocol shall
not be reduced of any tax payment collected by the Government of the Republic of Indonesia.
ARTICLE 11 - POST EVALUATION OF PROJECTS
The Government of the French Republic may proceed at its own cost to undertake post evaluation
of the projects financed under this protocol in order to appraise their impact on the economic
development of Indonesia. The Government of the Republic of Indonesia could, if it wished, participate
in this evaluation in order to benefit directly from the findings. The Government of the Republic of
Indonesia agrees to welcome the post-evaluation mission sent by the French Government, to facilitate the
access to relevant informations about the project and would be provided with the relevant elements of the
post evaluation report.
ARTICLE 12 - DATE OF EFFECT
The present protocol shall come into force at the date of its signature.
IN WITNESS THEREOF, the undersigned,
authorised for this purpose by their respective
Governments, have affixed thereupon their
seals.
Done in Jakarta, the 17th of July 1996
(in four originals, two in the French language
and two in the English language, the two texts
being equally authoritative).
For the Government
of the Republil of Indonesia
For the Government
of the French Republic
Signed
Signed
ANNEX
•
•
11 Rehabilitation of TV transmitters (phase 2)
70 MF
2/ South Sulawesi substation 150 KV (phase 2)
90 MF
31 Rehabilitation of Jakarta water pumping system
75 MF
4/ Engineering design for Peusangan IV (phase 2)
12 MF
TOTAL :
247 MF
•
PROTOCOLE FINANCIER
ENTRE
LE GOUVERNEMENT DE LA REPUBLIQUE D'lNDONESIE
ET
LE GOUVERNEMENT DE LA REPUBLIQUE FRANCAISE
•
Pour renforcer les liens d'amitie et de cooperation qui les unissent, le Gouvernement de la
Republique d'Indonesie et le Gouvernement de la Republique franc;aise sont convenus de conclure le
present protocole pour favoriser le developpement economique de l'Indonesie.
ARTICLE 1-MONTANT ET OBJET DES CONCOURS FINANCIERS
Le Gouvernement de la Republique franc;aise consent au Gouvernement de la Republique
d'Indonesie des concours financiers destines a la realisation de projets s'inscrivant dans les priorites de
developpement economique de la Republique d'lndonesie. Ces concours, d'un montant maximum de
247 MFF (DEUX CENT QUARANTE SEPT MILLIONS DE FRANCS FRANCAIS) financeront
l'achat de biens et services franc;ais relatifs a )'execution des projets mentionnes en annexe au present
protocole.
ARTICLE 2 - COMPOSITION DES FINANCEMENTS
•
Les concours financiers mentionnes a !'article l sont constitues :
- d'un pret du Tresor franc;ais d'un montant maximal de 11 1, 15 MFF ;
- de credits bancaires garantis par la compagnie franc;aise d'assurance credit (COF ACE)
d'un montant maximal de 135,85 MFF.
En outre, des credits bancaires garantis complementaires pourront etre mis a disposition du
Gouvernement de la Republique d'lndonesie pour permettre le financement des primes d'assurance
credit.
ARTICLE 3 - MODALITES DE FJNANCEMENT DES CONTRATS
Le financement des projets mentionnes en annexe est assure par !'utilisation conjointe du pret
du Tresor franc;ais et des credits bancaires garantis. La prime d'assurance credit est a la charge de
l'emprunteur.
•
Chaque contrat de biens et services relatif aces projets ouvrira un droit de ti rage sur le pret du
Tresor franc;ais et sur Jes credits bancaires garantis d'un rnontant egal respectivernent a 45 % et a 55 %
du montant du contrat impute sur ce protocole. Le pret du Tresor franc;ais servira ;1 financer
integralement le premier acompte qui sera compris entre I 0 % et 20 % du montant du contrat. Le solde
sera finance par utilisation simultanee du pret du Tresor franc;ais ct des credits bancaires garantis.
ARTICLE 4 - MODALITES D'UTILISATION DES CONCOURS FINANCIERS
a) Le pret du Tresor franc;ais a une duree de 31 ans, dont 11 ans de franchise . Le taux d'interet
est de 0,25 % l'an. Le principal est amortissable en 40 semestrial ites egales er successives, la premiere
echeant 138 mois apres la fin du trimestre civil au cours duquel les tirages auront ete effectues. Les
interets sont calcules sur le montant restant dQ; its courent a partir de la date de chaque tirage sur le pret
du Tresor franc;ais et sont payes semestriellement.
Une convention d'application sera signee entre le Credit National agissant au nom et pour le
compte du Gouvernement de la Republique franc;aise et le Ministere des Finances de la Republique
d'lndonesie agissant au nom et pour le compte du Gouvernemcnt
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE FRENCH REPlJULrC
With a view to strengthening the ties of friendship and cooperation which bind them, the
Government of the Republic of Indonesia and the Government of the French Republic have agreed to
conclude the present protocol to foster the economic development of Indonesia.
ARTICLE 1 - EXTENT AND PURPOSE OF FINANCIAL SUPPORT
The French Government grants the Government of the Republic of Indonesia a financial support
designed to finance projects included in the development priorities of Indonesia. The said support shall
not exceed 247 MF (TWO HUNDRED FORTY SEVEN MILLION FRENCH FRANCS) and shall be
used to finance the purchase of French goods and services related to the implementation of projects
referred to in annex to the present protocol.
ARTICLE 2 - BREAKDOWN OF FINANCE PACKAGE
•
The financial support provided in Article I hereof shall comprise :
- a loan from the French Treasury of a total amount not exceeding I I I, 15 MF;
- credits guaranteed by the French credit insurance Agency (COF ACE) of a total amount
not exceeding 135,85 MF.
Furthermore, additional guaranteed credits could be made available to the Government of the
Republic of Indonesia in order to finance the COFACE premium .
ARTICLE 3 - MECHANISMS OF FINANCIAL SUPPORT
The financing of the projects referred to in annex shall be provided jointly by the French Treasury
loan and the guaranteed credits. The COFACE premium is paid by the borrower.
Each contract of goods and services referred to in annex hereof shall give drawing rights on the
French Treasury loan and the guaranteed credits equal to 45 % and 55 % respectively of the total value of
the contract financed by the present protocol. The French Treasury loan shall be used to fully finance the
first instalment provided in each contract. The first instalment of each contract financed with the present
protocol shall amount to between I 0 % and 20 % of the value of the contract. The French Treasury loan
and guaranteed credits - used simultaneously - shall finance the remainder of the value of each · of the
aforesaid contracts.
ARTICLE 4 - CONDITIONS GOVERNING CREDIT FACILITIES
a) The French Treasury loan shall be granted for a period of 3 I years, including a grace period of
11 years. The interest rate shall be 0.25 % per year. Said loan shall be repaid in 40 equal consecutive sixmonthly instalments, the first instalment falling due 138 months after the end of the calendar quarter
during which each drawing is made. Interest shall be payable on the total amount outstanding; it shall be
applicable as of the date of each drawing on the French Treasury loan and shall be paid at six-monthly
intervals.
An agreement between Credit National, acting in the name and on behalf of the Government of
the French Republic, and the Ministry of Finance acting in the name and on behalf of the Government of
the Republic of Indonesia, shall define the mechanisms of utilisation and repayment of the French
Treasury loan.
b) The guaranteed credit shall be granted for a period of 10 years and shall be repaid in 20 equal,
consecutive six-monthly instalments, the first instalment falling due six moi1ths after delivery of the
equipment or of completion of the project.
An agreement between the banks approved in France, under the care of AFB-Export, and the
Ministry of Finance acting in the name and on behalf of the Government of the Republic of Indonesia,
shall define the mechanisms of utilisation and repayment of the said credit. The said agreement shall
stipulate that the interest rate applicable shall be the normal interest rate on the currency concerned on the
date of signature of the contract, under the rules of the OECD participant's agreement.
•
ARTICLE 5 - ADDITIONAL FINANCING
The Indonesian authorities will provide additional financing to those mentioned in th is protocol
to complete the implementation of the projects referred to in annex.
ARTICLE 6 - CURRENCY OF ACCOUNT AND PAYMENT
All transactions under the terms of the present protocol shall be carried out in French Francs.
ARTICLE 7 - IMPLEMENTATION DEADLINE AND EXPIRY DATE
In order to qualify for the financial support provided in Article I hereof, contracts must be
concluded by December 31, 1997 at the latest. The final decision for qualification for financing under the
terms of the present protocol will have to be made three months after this date at the latest.
•
No drawing on the French Treasury financing provided by the present protocol shall be made
after September 30, 2001. This date shall not be extended except by special agreement between the two
Governments in the event of exceptional difficulties .
ARTICLE 8 - FREIGHT AND INSURANCE
Freight and insurance to be financed under the present protocol are considered as French services
when:
- freight is provided under a bill of lading issued by French shipping company or under an airway
bill issued by French air-freight company or under a road bill issued by French company, and is certified
by the French appropriate authorities as being a French service.
- insurance is taken out with approved companies on the French market.
ARTICLE 9 - CONTRACTS COVERED
The final decision on whether contracts related to the projects referred to in annex hereof qualify
for financial support under the terms of the present protocol shall be made by exchange of letters between
the Economic and Commercial Counsellor to the French Embassy in Jakarta acting with the authorization
of the competent French authorities and the competent Indonesian authorities.
For each project, the final decision shall be submitted to the conformity of the project to the rules
established by the participants to the OECD consensus.
In case of arrears related to French Treasury loans or guaranteed credits associated to French
Treasury loans or in case of indemnifications related to credits guaranteed by the French credit insurance
Agency (COFACE) and by the Government of the Republic of Indonesia, no final positive decision will
be possible.
ARTICLE 10 - TAXATION
The payment of principal and interest due on the credits provided by the present protocol shall
not be reduced of any tax payment collected by the Government of the Republic of Indonesia.
ARTICLE 11 - POST EVALUATION OF PROJECTS
The Government of the French Republic may proceed at its own cost to undertake post evaluation
of the projects financed under this protocol in order to appraise their impact on the economic
development of Indonesia. The Government of the Republic of Indonesia could, if it wished, participate
in this evaluation in order to benefit directly from the findings. The Government of the Republic of
Indonesia agrees to welcome the post-evaluation mission sent by the French Government, to facilitate the
access to relevant informations about the project and would be provided with the relevant elements of the
post evaluation report.
ARTICLE 12 - DATE OF EFFECT
The present protocol shall come into force at the date of its signature.
IN WITNESS THEREOF, the undersigned,
authorised for this purpose by their respective
Governments, have affixed thereupon their
seals.
Done in Jakarta, the 17th of July 1996
(in four originals, two in the French language
and two in the English language, the two texts
being equally authoritative).
For the Government
of the Republil of Indonesia
For the Government
of the French Republic
Signed
Signed
ANNEX
•
•
11 Rehabilitation of TV transmitters (phase 2)
70 MF
2/ South Sulawesi substation 150 KV (phase 2)
90 MF
31 Rehabilitation of Jakarta water pumping system
75 MF
4/ Engineering design for Peusangan IV (phase 2)
12 MF
TOTAL :
247 MF
•
PROTOCOLE FINANCIER
ENTRE
LE GOUVERNEMENT DE LA REPUBLIQUE D'lNDONESIE
ET
LE GOUVERNEMENT DE LA REPUBLIQUE FRANCAISE
•
Pour renforcer les liens d'amitie et de cooperation qui les unissent, le Gouvernement de la
Republique d'Indonesie et le Gouvernement de la Republique franc;aise sont convenus de conclure le
present protocole pour favoriser le developpement economique de l'Indonesie.
ARTICLE 1-MONTANT ET OBJET DES CONCOURS FINANCIERS
Le Gouvernement de la Republique franc;aise consent au Gouvernement de la Republique
d'Indonesie des concours financiers destines a la realisation de projets s'inscrivant dans les priorites de
developpement economique de la Republique d'lndonesie. Ces concours, d'un montant maximum de
247 MFF (DEUX CENT QUARANTE SEPT MILLIONS DE FRANCS FRANCAIS) financeront
l'achat de biens et services franc;ais relatifs a )'execution des projets mentionnes en annexe au present
protocole.
ARTICLE 2 - COMPOSITION DES FINANCEMENTS
•
Les concours financiers mentionnes a !'article l sont constitues :
- d'un pret du Tresor franc;ais d'un montant maximal de 11 1, 15 MFF ;
- de credits bancaires garantis par la compagnie franc;aise d'assurance credit (COF ACE)
d'un montant maximal de 135,85 MFF.
En outre, des credits bancaires garantis complementaires pourront etre mis a disposition du
Gouvernement de la Republique d'lndonesie pour permettre le financement des primes d'assurance
credit.
ARTICLE 3 - MODALITES DE FJNANCEMENT DES CONTRATS
Le financement des projets mentionnes en annexe est assure par !'utilisation conjointe du pret
du Tresor franc;ais et des credits bancaires garantis. La prime d'assurance credit est a la charge de
l'emprunteur.
•
Chaque contrat de biens et services relatif aces projets ouvrira un droit de ti rage sur le pret du
Tresor franc;ais et sur Jes credits bancaires garantis d'un rnontant egal respectivernent a 45 % et a 55 %
du montant du contrat impute sur ce protocole. Le pret du Tresor franc;ais servira ;1 financer
integralement le premier acompte qui sera compris entre I 0 % et 20 % du montant du contrat. Le solde
sera finance par utilisation simultanee du pret du Tresor franc;ais ct des credits bancaires garantis.
ARTICLE 4 - MODALITES D'UTILISATION DES CONCOURS FINANCIERS
a) Le pret du Tresor franc;ais a une duree de 31 ans, dont 11 ans de franchise . Le taux d'interet
est de 0,25 % l'an. Le principal est amortissable en 40 semestrial ites egales er successives, la premiere
echeant 138 mois apres la fin du trimestre civil au cours duquel les tirages auront ete effectues. Les
interets sont calcules sur le montant restant dQ; its courent a partir de la date de chaque tirage sur le pret
du Tresor franc;ais et sont payes semestriellement.
Une convention d'application sera signee entre le Credit National agissant au nom et pour le
compte du Gouvernement de la Republique franc;aise et le Ministere des Finances de la Republique
d'lndonesie agissant au nom et pour le compte du Gouvernemcnt