Selanjutnya

"'

MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE REPUBLIC OF FINLAND
CONCERNING
FORESTRY HAND-TOOLS DEVELOPMENT AND ESTABLISHMENT
OF MECHANISED NURSERY PILOT PROJECT

WHEREAS, the Government of the Republic of Indonesia (hereinafter referred to as "the Government of Indonesia")
and
the Government of the Republic of Finland (hereinafter referred to as "the Government of Finland") desiring to cooperate in furthering the cordial relations between the two
countries and promoting the economic and social development
in Indonesia;
WHEREAS, the Government of Indonesia and the Government of
Finland have on July 18, 1979 signed a Memorandum of Understanding concerning co-operation in the agricultural sector;
NOW THEREFORE, the Government of Indonesia and the Government
of Finland have agreed to co-operate in the implementation
of Forestry Hand-Tools Development (ATA - 265) and Establishment of Mechanised Nursery Pilot Project (ATA-267) (hereinafter referred to as "the Programme"), as follows :

ARTICLE I
SCOPE OF THE PROGRAMME
The activities of the Programme are described in detail in
the Terms of Reference attached hereto (Annex I) .

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ARTICLE II
COMPETENT AUTHORITIES
The Department of Agriculture of Indonesia
of Foreign Affairs of Finland, represented
respectively by the Directorate General of
Embassy of Finland, shall be the Competent
the two Governments for the implementation
dum of Understanding.

and the Ministry
in Indonesia
Forestry and the
Authorities of
of this Memoran-

ARTICLE III
CONTRIBUTION OF THE GOVERNMENT OF FINLAND
The Government of Finland shall, subject to Parliamentary
approval in Finland of the aid budget for the calendar year
1982 contribute towards the costs of th e Programme up to
the maximum of one million eight hundred thousand (1,800,000)
Finnish Marks, on a grant basis.
ARTICLE IV
CONTRIBUTION OF THE GOVERNMENT OF INDONESIA
The Government of Indonesia shall :
1. ·render such assistance and take such action as may from
time to time be required for the smooth and expeditious
ex e cution of th e Programme;
2. provide all relevant data and information for execution

of the Programme, especially provide studies, information
and data already available and relevant of used nursery,
afforestation and manual logging techniques in Indonesia;
3. b e ar and directly cover the costs on Indonesian counterpart
personnel in the central and provincial administrations
and other resources in the implementation of the Programme
a s indicated in the Terms of Re f er ence (Annex I) or a s

.. . .. / / .. ...

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may from time to time be reasonably required for the
implementation as well as :
- construct the pilot nursery,
- carry out the experimental seedling production (20,000 30,000 seedlings) and planting the seedlings,

- carry out the necessary soil tests in accordance with
the test programme as well as the water tests if
required,
organize and carry out the logging and extraction in
the experimental logging site,
- carry out the productivity studies in accordance with
the study programmes of logging and afforestation.
4. provide and bear the costs of :
- two offices,
- internal telephone communications for official duties
in the Central Office,
secretarial services and other supporting services for
the implementation of this Programme,
- drivers, servicing and repair of project vehicles as
well as fuel,
accommodation and possibility to acquire meals in the
work sites.
ARTICLE V
RIGHT AND OBLIGATION OF THE EXPATRIATE
1. The Government of Indonesia shall exempt the Expatriates

income tax or any other direct tax in respect of any
emolument paid to them from the Government of Finland for
the official services associated with the Programme .

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

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2. All materials and equipments imported into Indonesia for
the Programme under this Memorandum of Unde rstanding
including motor vehicles for the Programme as well as
private cars and personal effects of the Expatriates shall
be exempted from all customs duties, taxes and other
charges on imports, provided that they become and remain
the property of the Government of Indonesia or are reexported from the country in accordance with the prevailing
regulations.

3. In respect of the Finnish personnel working in Indonesia
under this Memorandum of Understanding the Government of
Indonesia shall
3.1. in case of any damage to a third party caused by the
Finnish personnel in the course of their official
duties in Indonesia under this Memorandum of Understanding be liable in their place, and any claim
against Finnis h p e rsonnel shall to that extent be
excluded unless such damage has arisen from the gross
negligence or wilful or criminal conduct on the part
of the Finnish personnel,
3.2. in the event of an international crisis affecting
the safety of foreign nationals in Indonesia accord
the same repatriation facilities to Finnish personnel
according to the prevailing regulations.
ARTICLE VI
GENERAL PROVISIONS
1. The Competent Authorities shall ensure that the resources
made available for the Programme are exclusively utilized
for the needs of the Programme and in a manner enabling
the implementation of the Programme in the most effective

way.

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

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2. This Memorandum of Understanding may be amended or modified
by mutual negotiations between the two Governments; such
an amendment or modification shall be made in writing in
accordance with their respective procedural requirements.
3. Any dispute arising out of the interpretation or application
of this Memorandum of Understanding shall be settled amicably
through consultation or negotiation between the two Governments.
4. All information and data received by a party from the other
party for the implementation of the Programme can only be
used by approval of the authorities concerned.
ARTICLE VII
ENTRY INTO FORCE, VALIDITY AND TERMINATION

1. This Memorandum of Understanding shall enter into force
upon its signing and shall remain valid until the completion
of the Programme.
2. This Memorandum of Understanding may be terminated by
written notification by either party to the other and such
a termination shall have effect at the expiration of three
months from the date of such a notification.
DONE in Jakarta on this
thirteenth
in duplicate in the English language.

FOR THE GOVERNMENT OF
THE REpt!BLIC OF INDONESIA

Signed
SOEDJARWO
Director General for Forestry
Department of Agriculture

I

day of

Ma y

1981,

FOR THE GOVERNMENT OF
THE REPUBLIC OF FINLAND

Signed
Mr. Rt:IN O URO NEN
Secretary General·Mi ni stry
of Ag!i culture a nd Forestry

......
ANNEX

I

TERMS OF REFERENCE
INDONESIA-FINLAND CONSULTING PROGRAMME IN FORESTRY

1. INTRODUCTION
The Government of Indonesia has proposed that the Government
of Finland would cooperate with the Government of Indonesia
in
- Forestry Hand-Tools Development (ATA-265).
- Establishment of Mechanised Nursery Pilot Project (ATA-267).
Because these two projects include partly same kinds of
activities and will be done in the same areas and it is proved
to be possible to carry out both the projects by the same
experts so the projects are attached here together as Indonesia - Finland Consulting Programme in Forestry.
2. THE PROGRAMME
The
ｾｲｯｧ｡ｭ･＠

is composed of two projects

- Forestry Hand-Tools Development.

- Establishment of Mechanised Nursery Pilot Project.
They will be carried out by two specialists who will be assisted
by other Finnish Expatriates for shorter times.
A part of the work will be done in Finland like technical
backstopping and preparation of training materials.
The Programme will be started on the first of November 1981
and it will continue to the 31 December 1982.
The schedule of the activities is appended.
3. THE DETAILED DESCRIPTION OF THE PROJECTS
3.1. Forestry Hand-Tools Development

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Objectives
- Prepare proposal for modification of existing
methods and for introduction of new hand-tools and
light machinery.
- Prepare a programme for studying the productivity
of alternative methods and equipment and assist
in leading the studies and analysing their results.
Activities
- Analyse and evaluate manual logging and forest
haulage methods used in Java on the bases of
available surveys and visits to logging sites.
- Develop
new manual logging methods that combine
the use of new hand-tools and light machinery and
are more efficient and productive in the application.
- Prepare proposals of alternative concepts for
detailed productivity study and formulate the scope
and programme of such a study in co-operation with
Forest Research Institut e in Indonesia.
- Supply Finnish hand - tools f or testing purposes and
trials such as axes, saws and bark spades up to
ten of each and light machinery for extraction of
wood.
Assist in training the labour in the use of new
equipment and in leading and carrying out the
productivity study in the logging sites.
- Assist in analysing the results of the study.
- Prepare a short presentation of the results and
make recommendation of new or modified methods.
Personnel Required
a. Finnish Personnel

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The project will be carried out by two Finnish
experts. They will be assisted in training of
the workers by a Finnish Forest Technician
specialized in training of workers and by a
Finnish work instructor for shorter time.
b. Indonesian Personnel
- Counterparts for two experts in manual logging
and planning and implementation of the time
studies.
- Foremen to take care of the experimental logging
site.
Skilled workers for using of logging hand.tools
and light machinery (5 - 10).
3.2. Establishment of Mechanised Nursery Pilot Project
Objectives
a. Immediate objectives
- Identify the most suitable feasibility of
mechanised nursery methods and determine the
alternatives (location, equipment, methods etc.)
for implementation.
- Carry out necessary soil test in accordance with
the test programme.
- Carry out the experimental seedlings production
(20,000 - 30,000 seedlings).
b. Long-range objectives
If model nursery is considered feasible and
established :
- Provide management, technical plans and control
for the establishment of the model nursery.
Provide training for the managers and supervisors
of the model nursery in Indonesia and abroad as
well.

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- Produce about 4,000,000 seedlings a year of
the five major species which are Pinus merkusii,
Eucalyptus urophylla, Eucalyptus deglupta,
Albizia falcataria, Acacia auriculiformis .
The nursery will be located in South Sumatra,
South Sulawesi, South Kalimantan or West Kalimantan.
Activities
a. feasibility Study
- Review of the present nursery methods and
equipments in Indonesia.
- Evaluation of the available data and a field
orientation in the four alternative locations.
- Test programme for the study of the suitability
of peat and locally available soil types for
filling the pots where seeds are germina ted
and seedlings grown.
- Basic design of the model nursery, including
production, building infra structures, beds,
irrigation and fertilizing systems, shading
techniques, equ ipment for soil preparations
and for filling and sowing of pots, pots and
other raising materials, packaging and transport
system for seedlings, planting equipment etc.
- Estimate capital costs.
- Production cost estimates including seeds,
chemicals, pots, soil and packaging materials
and field costs of personnel, operating and
maintenance supplies and general overheads .

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b. Management and Control
This will include :
- Supply of the pilot nursery, pots, peat and
other raising materials and planting tubes
for testing purposes.
- Carrying out the experimental seedling
production (20,000 - 30,000 seedlings).
- Specifications for the procurement of equipment and machinery and if model nursery is
established will be followed with control of
the installation work and development of
practical techniques for nursery operations.
c. Training
This includes preparation of operating manuals
and on the spot training of the managers and
the supervisor during the starting of the
nursery operations.
d. Planting
This will include :
- Testing of Finnish planting hand-tools.
- Assisting Forest Research Institute in planning
and implementation of productivity study if
Finnish planting hand-tools are used in
practical work.
Personnel Required
a. Finnish Personnel
- The project will be carried out by the same
two Finnish experts as the forestry hand-tools
development project.

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- They will be assisted by a Finnish Nursery
Adviser for a short time during the preparing
of the feasibility study.
b. Indonesian Personnel
- Counterparts for two experts in nursery
activities.
- Foremen to take care of the experimental
seedling production.
- Skilled workers for constructing the pilot
nursery and for the experimental seedling
production and afforestation activities.
4. REPORTING
The Experts shall submit to the Department of Agriculture
of Indonesia and to the Ministry of Foreign Affairs of
Finland a written quarterly progress report. The final
report shall be submitted in three months' time after
the completion of the Programme. Both the quarterly
reports and the final report shall be submitted in five
copies to the Ministry of Foreign Affairs of Finland
and in twenty copies to the Department of Agriculture
of Indonesia. The reports shall be written in the
English language.

ANNEX

II

COST ESTIMATE

1. Establishment of Mechanised Nursery Pilot Project
- pilot nursery and forestry hand-tools
- freights and packing
technical backstopping in Finland

90,000 PIM
60,000
50,000
200,000

2. Forestry Hand-Tools Development
- hand-tools and light machinery
- freights and packing
- acquisition and dispatch of material

220,000
60,000
20,000
300,000

3. Ge neral Costs in Indonesia
-

salaries and social costs of two experts
accommodation of experts
two motor vehicl e s
travel with ·f amilies and other costs

550,000
168,000
70,000
187,000
975,000

4. Gen e ral Co s ts in Finland
-

supervi s ion and advisers
145,000
overheads (20 % of salaries and social costs) 98,000
pr eparation o f training material
40,000
oth e r costs
42,000
325,000
Total ......... 1,800,000 PIM

========== == =

5. Co s t Distribution
a . 1981 --- --------- ------ PIM
b. 1982 -- - -- - - -- --- - - - -- -- PIM

300,000
1,500,000

Tot a l . . . . . . . . . . . . . . PIM

1,800,000

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APPENDIX TO ANNEX I
PROPOSED WORK SCHEDULE
November 1 - December 31, 1981
a. Review of present nursery methods, equipment and planting
techniques in Indonesia.
b. Establishment of experimental seedling production of
20,000 - 30,000 seedlings.
c. Establishment of tests to find out locally available soil
types for filling pots.
January 1, 1982 - March 31, 1982
a. The field orientation in the four alternative locations
of the model nursery.
b. The feasibility study of the model nursery :
- planning of yearly production and alternative production
systems.
basic des ign of buildings and nursery equipment.
- planning of labour requirements.
- capital cost estimate.
- production cost estimate.
- building schedule.
- presentation of the study to Indonesian officials.
April 1 - 30, 1982
a. Analysing and evaluation of manual logging methods used
in Java.
b. Development of alternative logging systems using Finnish
hand-tools and light machinery.
c. Planning of the productivity time study in co - operation
with Forest Research Institute.

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May 1 - June 30, 1982
a. Planning of productivity study for alternative planting
methods using forestry hand-tools in co-operation with
Forest Research Institute.
b. Analysis of the experimental seedling production.
c. Productivity study of manual planting methods using partly
seedling produced in experimental seedling production.
July 1 - 31, 1982
Vacation.
August 1 - October 31, 1982
a. Training of foremen and workers in the use of logging
hand-tools and light extraction machinery.
b. Assisting Forest Research Institute in leading and carrying
out the productivity study in loggi ng sites.

ｾｶ･

c. Assisting in analysing the results of the study and
recommendation of new or modified methods.
｢ｾｲ＠

1 - December 31, 1982

a. Preparing of the training plan for the staff and labour
of model nursery.
b. Report processing.

I

AUTHORIZATION LETTER

I make it hereby known that I have appointed
Mr. Reino DRONEN, Secretary General of the
Ministry of Agriculture and Forestry of Finland,
on my behalf to sign the Memorandum of Understanding
between the Government of the Republic of Finland and
the Government of the
ｾ･ｯｵ｢ｬｩ｣＠

of Indonesia concerning

Forestry Hand - Tools Development and Establishment of
Mechanised
ｮｵｲｾ･ｹ＠

PiJot Project.

Jokarta, May 13, 1981

Signed

Fauri ";'O'ge#_____ _
Director of the ｮ･ｰ｡ｲｴｭｾ＠
for
ｉｾｴｐＮｲｮ｡ｩｯｬ＠
Development Co operation of the ｾｩｮｳｴｲｹ＠
for
Foreign ftffairs of Finland

I

U R H 0

K A L E V A

K E K K 0 N E N

PRESIDENT OF THE REPUBLIC OF

FINLAND

make known:

WHEREAS
and

the Government of the Republic of Finland

the Government

of the Republic of Indonesia

have

decided to conclude an Agr2enent on the carrying out of
a

Programme

consisting

Development Project
ｾｮ､＠

of
a

a

Forestry

Mechanised

Hand

Tools

Nursery

Pilot

Project;
THEREFORE

I

have

authorized

Director of the Department for
ment

Co-operation

r!r. Mauri

International

EGGERT,
Develop-

of the Ministry for Foreign Affairs

of Finland, or in case of his absence his appointee, to
negotiate and sign

on

behalf

of

the

Government

of

Finland the aforesaid Agreement;
IN WITNESS
ｗｈｅｾｏｆ＠

I have her e unto set my hand and

caused my seal to be affixed to these presents.
GIVEN at
ｈ･ｬｳｩｮｾ＠

this 8th day of May 1981.

Si_gned

,r

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