Selanjutnya

PROTOCOL OF UNDERSTANDING
BETWEEN

nm GOVERNMENT OF nm REPUBLIC OF INOONF.sIA AND
nm GOVERNMENT OF nm REPUBLIC OF ITALY
Following the visit of the Italian President of the Council of
Ministers, Hon. G. Goria, an Italian Delegation led by Undersecretary for
Foreign Affairs Senator Gilberto Bonalumi visited Indonesia from January
31st to February 3rd, 1988.
During its stay the Delegation met H.E. Prof. Dr. J.B. Sumarlin,
Minister of State/Chairman of BAPPENAS, H.E. Ir. Hartarto, Minister for
Industry, H.E. Achmad Tahir, Minister for Tourism, Post and Telecomunication and H.E. Prof. Dr. B.J. Habibie, Minister of State for Research and
Technology.
The Italian Delegation had a series of talks with BAPPENAS and other
Official Agencies of the Indonesian Government. The talks were held in an
amicable and constructive spirit.
The visit of the Hon. G. Goria, it was stressed, strengthened the
close bonds of friendship already existing between the two countries and
disclosed new prospects for enhancing their cooperation for development.
In this respect, in order to put in line their present process of
cooperation with the capacities of their re spec ti ve economies, the two

delegations, after reviewing the state of progress of the ongoing
cooperation already agreed upon, looked into new cooperation initiatives.
Such initiatives, it was determined, are suitable to be finalized within
the framework of an organic and comprehensive three year program covering
the period 1988-1990.
To this effect, the Italian Delegation expressed their readiness to
make available for the implementation of such a program, an amount of
financial resources up to 50 million US dollars in grant and up to 150
million US dollars in soft loans.

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The Italian Delegation further expressed that additional financial
resources could be made available over and above such amounts, for the
setting up of joint-ventures, in the priority sectors of the Italian Indonesian cooperation, in accordance with the procedures established by
the Italian law.
Both parties agreed in principle that the program should give particular emphasis, in an integrated approach, to projects in the following
sectors ·
- Agricultural
- Vocational training

- Energy
- Telecommunication
- Regional and local development
To this effect, the Indonesian Delegation will as early as possible
propose a list of priority projects to the Italian government to be
financed with the concessional loan and grant.
It was agreed that, upon receipt of the relevant documentation, the
Italian side will evaluate the said proposal and will send a technical
mission tentatively in May 1988.
The

Indonesian Delegation

expressed

their

satisfaction for

the

ongoing cooperation. At the same time the Indonesian Delegation stressed
the importance to meet for projects agreed by both parties the required
share of local costs .
The Italian Delegation was in a position to assure that new financial
assistance efforts were undertaken in order to assume local costs, on a
case by case basis, up to maximum 25% of the whole foreign component of
any single project submitted by the Indonesian side.
Senator Gilberto Bonalumi extended an invitation to an Indonesian
delegation to visit Italy in June 1988. The Indonesian Delegation accepted
such a proposal.

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The Italian Delegation expressed its gratitude to
the Indonesian Government for its warm reception.

FOR THE GOVERNMENT OF THE

FOR THE GOVERNMENT OF

REPUBLIC OF INDONESIA

THE REPUBLIC OF ITALY

Signed

Signed

Rusli

Noor

Director General for Foreign
Economic Relations,
Department of Foreign Affairs

Hon.Gilberto Bonalumi
( Under Secretary of State
for Foreign Affair s