Treaty Room - Treaty
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 PURP9SE OF THE FINANCIAL SUPPORT
The French Government grants the Government of the Republic of Indonesia
financial support designed for the execution of projects included in the economic development
priorities of Indonesia. The said support shall not exceed 225 M FRF (two hundred twenty five million
French Francs) and shall be used to finance the purchase In France of French goods and services
related to the implementation of the projects referred to In the appendix to the present protocol.
AR!19-E 2 - BREAKDOWN OF FINANCE PACKAGE
The financial support provided for in Article 1 shall comprise :
- a loan from the French Treasury of a total amount not exceeding 112.5 M FRF (one
hundred twelve million five hundred thousand French Francs);
- credits guaranteed by the French Credit Insurance Company (COFACE) of a total
amount not exceeding 112.5 M FRF (one hundred twelve million five hundred thousand French
Francs).
!RIICLE 3 - METHOD GOYERNING THE FINANCING OF THE PROJECTS
The financing of the projects referred to in appendix shall be provided jointly by the
French Treasury loan and the guaranteed credits. The COFACE premium is paid by the borrower. For
each contract related to these projects, drawing rights on the French Treasury loan shall be opened
up to 50 % of the amount of the contract financed by the present protocol and drawing tights on the
guaranteed credits shall be opened up to 50 % of the amount of the contract financed by the present
protocol. The French Treasury loan shall be used to finance the first instalment of each contract
relating to these projects. This first Instalment shall be between 1O% and 20 % of the value of the
contract financed, after deduction of the amount of transport and insurance. The remainder of this
contract shall be financed by joint and simultaneous utilization of the French Treasury loan and the
guaranteed credits.
Additional guaranteed credits could be made available to the Government of the
Republic of Indonesia In order to finance the COFACE premium.
ARTICLE 4 ·CONDITIONS GOVERNING FINANCIAL SUPPQRT
For the projects mentioned in appendix, the French Treasury loan shall be granted for
a period of 31 years, including a grace period of 11 years. The Interest rate shall be 0,63 % per year.
Said loan shall be repaid in 40 equal consecutive six-monthly instalments, the first instalment falling
due 138 months after the end of the calendar quarter during which the drawings are 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.
The date of payment of a maturity of principal or interest is, when it falls due on a
non-wor1dng day In France, postponed to the working day which follows. Any maturity of principal or
Interest not paid on due date shall give rise to interest on overdue payment from the date of maturity
up to the effective date of payment. The rate of Interest on overdue payment Is 9.65 % per year.
Interest on overdue payment shall itself bear interest at the rate above mentioned if it is due for a full
year.
The guaranteed credits 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 months after delivery
of the equipment or completion of the project. Interest shall be payable on the total amount
outstanding. It shall be applicable as of the date of each drawing on the guaranteed credits and is
paid at six-monthly intervals.
ARTICLE 5 - MODALITIES GOVERNING FINANCIAL SUPPORT
An implementation agreement between Natexis Banque, acting in name and on
behalf of the Government of the French Republic and the Indonesian Ministry of Finance, acting In
name and on behalf of the Government of the Republic of Indonesia shall define the mechanism of
utilisation and repayment of the French Treasury loan.
An implementation agreement between the credit institutions approved in France or
authorized to practise on the French territory, under the care of AFB Export and the Indonesian
Ministry of Finance, acting In name and on behalf of the Government of the Republic of Indonesia
shaH define the mechanism of utilisation and of repayment of the guaranteed credits as well as the
related bank conditions, Including those related to interest on overdue payment. The said agreement
shall stipulate that the interest rate applicable shall be the nonnal interest rate on the date of
signature of the contract according to the rules established by the participants to the OECD
Consensus for export credits benefiting of the public supports.
ARTICLE 6 - CURRENCV OF ACCOUNT AND PAYMENT
The currency of account and payment under the tenns of the present protocol shall be
the French Franc.
ARTICLE 7 - REGISTRATION OF THE CONJRACTS
For each contract relating to the projects referred to in appendix, its registration as
specified hereafter is subject to :
- the confonnity of the contract with the recommendations fonnulated by the
pre-evaluation of the project corresponding to such contract;
- the verification of the conformity of the project with the rules established by the
participants to the OECD consensus for exports credits benefiting of a public support;
• the fact that there are no arrears concerning amounts due and not paid on due date
by the Government of the Republfc of Indonesia relating to French Treasury Loans;
- the fact that there are no arrears concerning amounts due and not paid on due date
relating to credits guaranteed by COFACE and granted to the Government of the Republie of
Indonesia or to its public sector or with the guarantee of the Government of the Republic of Indonesia,
if any.
For each contract relating to the projects referred to in appendix, after the French
competent authorities have verified that these conditions are fulfilled, the contract will be registered
on the protocol by exchange of letters between the Economic and Commercial Counsellor to the
French Embassy in Indonesia, acting with the authorisation of the competent French authorities, and
the competent Indonesian authorities.
ARTICLE I · DEAQYNES OF THE FRENCH TREASURY EACILITIES
In order to qualify for the financial support provided for in Article 1 hereof, contracts
between French suppliers and Indonesian buyers must be registered by September 30, 1999 at the
latest.
No drawing on the French Treasury financing provided by the present protocol shall
be made after September 30, 2002. By special agreement between the two Governments, in case of
exceptional circumstances, this date can be extended.
ARTICLE 9 ·TAXATION
The financial support from the French Government shall not be used to finance any
,
taxation in Indonesia.
The payments of principal and interest as well as fees linked to the execution of the
present Protocol shall be paid net of any taxation in Indonesia.
()9
ARJICLE 10 ·POST EVALUATION OF PRQJEC!S
(
The Government of the French Republic may proceed at its own cost to undertake
post evaluation of the projects financed under this protocol on the economic, financial and accounting
levels in order to appraise their impact on the economic development of Indonesia. The Government
of the Republic of Indonesia could, if It wishes, participate In this evaluation, according to modalities
to be defined, 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 Government of the French
Republic and to facilitate the access to relevant infonnatlon about the projects.
ARTICLE 11-EFFECTIVE QATE
The present protocol shall come into force at the date of Its signature.
IN WITNESS THEREOF, the undersigned, authorized
for this purpose by their respective Governments,
have affixed thereto their seals.
Done in
J o.. k.v 1-o.
, the
L.,.1--k
ｯｦＮＨＩ･｣｟
Ｌ ＬｊＮ＾ｴｲｬｾＷ＠
(in four originals, two in the French and two in the
English language, the two texts being equally
authoritative).
For the Government Of
the Republic of Indonesia
Signed
c
For the Government of
the French Repubt.iff
Signed
APPENDIX
Tanah Abang - Serpong: double tracking development (excluding signaling system)
170 MF
Development of port for research vessel
(subject to evaluation)
25MF
Improvement of cancer care and radiotherapy services
30MF
TOTAL
225MF
Afin de renforcer les liens d'amiti8 et de cooperation qui les unissent, le
Gouvemement de la Republique d'lndonesie et le Gouvemement de la Republique franyaise sont
convenus de conclure le present protocole pour favoriser le developpement economique de
l'lndonesie.
ARTICLE 1 - MON!AtjT ET OBJEJ DES (eneficient de la garantle du Gouvemement de la
Republique d'lndonesie.
Pour chaque contrat relatif aux projets mentionnes en annexe, apres que les
autorites franyaises competentes auront constate que ces conditions sont dument remplies, ii sera
procede a son imputation sur le present protocole par echange de tettres entre le Conselller
Economlque et Commerdal pres l'Ambassade de France en lndoneste, agissant avec l'autor1sation
des autorites franyaises ｣ｯｭｾｴ･ｮｳＬ＠
et les autorites indonesiennes competentes.
ARTICLE 8 ·DATE§ LIMITE DES CONCOURS DU TRESQB FRANCAIS
Pour t>eneficier des concours definis ii l'arttcte 1 cl-dessus, tes contrats signes
entre prestataire franyals et acheteur indoneslen doivent etre imputes au plus tard le 30 septembre
1999.
Les tirages sur les financements du Tresor ｦｲ｡ｮｾｩｳ＠
accordes par le present
protocole dotvent 6tre realises au plus tard le 30 septembre 2002. Cette date pourra 6tre prorogee en
cas de Circonstances exceptionnelles, au cas par cas, et apres accord entre les deux
Gouvemements.
ARTICLE 9 - IMPOTS ET TAXES
Les concours financiers du Gouvemement Franyais
protocole ne peuvent servir a payer aucun imp6t ni taxe en Indonesia.
lies a !'execution du present
Les remboursements en principal et les paiements en ｩｮｴ･ｾｳ＠
et les commissions
lies !'execution du present protocote seront effectues nets de tout imp6t et taxe en Indonesia.
a
ARTICLE 10-EVALUATION RETRQSPECTIVE DES PROJETS
Le Gouvemement de la Republique franc;aise peut faire proceder a ses frais 8
revaluation retrospective, sur les plans econornique, financier et comptable, des projets inscrtts sur
ce protocole, de maniere notamment a en apprecier l'impact sur le developpement economtque de
l'lndonesie. Le Gouvemement de la Republique d'lndonesie est associe, s'il le souhaite, a la conduite
de cette evaluation, selon des modalites qui sont a definlr, afin de t>eneticier directement des
resunats de l'etude. Le Gouvemement de la Republique d'lndonesie s'engage a accueilllr la mission
d'evaluation envoyee par le Gouvemement de la Republique franQaise et a lui faciliter l'acces aux
Informations concemant les projets.
ARTICLE 11 - ENTREE EN VIGUEUR
Le present protocole entre en vigueur a la date de sa signature.
EN FOi DE QUOI, les representants des deux
Gouvemements, dument autorlses a cet effet, ont
signe le present accord et y ont appose leur sceau.
(en quatre exemplaires originaux, deux en langue
fran98lse et deux en langue anglaise, les deux textes
faisant egalement foi).
Pour le Gouvemement
de la Republique d'lndonesie
Pour le Gouvemement
de la Republique franQaise
Signed
Signed
n' soenADI
ＶＱｻＰｔｎＯｦｬｾａＮ＠
I( . C. HA "13 f\Al\
ANNEXE
Doublement de la ligne reliant Tanah Abang
'
ala ville de Serpong (hors signalisation)
170 MF
Amenagement portuaire pour navire oceanographique (sous reserve d'evaluation)
25 MF
Developpement des services de radiotMrapie et de traitement du
cancer
30 MF
TOTAL
225MF
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 PURP9SE OF THE FINANCIAL SUPPORT
The French Government grants the Government of the Republic of Indonesia
financial support designed for the execution of projects included in the economic development
priorities of Indonesia. The said support shall not exceed 225 M FRF (two hundred twenty five million
French Francs) and shall be used to finance the purchase In France of French goods and services
related to the implementation of the projects referred to In the appendix to the present protocol.
AR!19-E 2 - BREAKDOWN OF FINANCE PACKAGE
The financial support provided for in Article 1 shall comprise :
- a loan from the French Treasury of a total amount not exceeding 112.5 M FRF (one
hundred twelve million five hundred thousand French Francs);
- credits guaranteed by the French Credit Insurance Company (COFACE) of a total
amount not exceeding 112.5 M FRF (one hundred twelve million five hundred thousand French
Francs).
!RIICLE 3 - METHOD GOYERNING THE FINANCING OF THE PROJECTS
The financing of the projects referred to in appendix shall be provided jointly by the
French Treasury loan and the guaranteed credits. The COFACE premium is paid by the borrower. For
each contract related to these projects, drawing rights on the French Treasury loan shall be opened
up to 50 % of the amount of the contract financed by the present protocol and drawing tights on the
guaranteed credits shall be opened up to 50 % of the amount of the contract financed by the present
protocol. The French Treasury loan shall be used to finance the first instalment of each contract
relating to these projects. This first Instalment shall be between 1O% and 20 % of the value of the
contract financed, after deduction of the amount of transport and insurance. The remainder of this
contract shall be financed by joint and simultaneous utilization of the French Treasury loan and the
guaranteed credits.
Additional guaranteed credits could be made available to the Government of the
Republic of Indonesia In order to finance the COFACE premium.
ARTICLE 4 ·CONDITIONS GOVERNING FINANCIAL SUPPQRT
For the projects mentioned in appendix, the French Treasury loan shall be granted for
a period of 31 years, including a grace period of 11 years. The Interest rate shall be 0,63 % per year.
Said loan shall be repaid in 40 equal consecutive six-monthly instalments, the first instalment falling
due 138 months after the end of the calendar quarter during which the drawings are 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.
The date of payment of a maturity of principal or interest is, when it falls due on a
non-wor1dng day In France, postponed to the working day which follows. Any maturity of principal or
Interest not paid on due date shall give rise to interest on overdue payment from the date of maturity
up to the effective date of payment. The rate of Interest on overdue payment Is 9.65 % per year.
Interest on overdue payment shall itself bear interest at the rate above mentioned if it is due for a full
year.
The guaranteed credits 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 months after delivery
of the equipment or completion of the project. Interest shall be payable on the total amount
outstanding. It shall be applicable as of the date of each drawing on the guaranteed credits and is
paid at six-monthly intervals.
ARTICLE 5 - MODALITIES GOVERNING FINANCIAL SUPPORT
An implementation agreement between Natexis Banque, acting in name and on
behalf of the Government of the French Republic and the Indonesian Ministry of Finance, acting In
name and on behalf of the Government of the Republic of Indonesia shall define the mechanism of
utilisation and repayment of the French Treasury loan.
An implementation agreement between the credit institutions approved in France or
authorized to practise on the French territory, under the care of AFB Export and the Indonesian
Ministry of Finance, acting In name and on behalf of the Government of the Republic of Indonesia
shaH define the mechanism of utilisation and of repayment of the guaranteed credits as well as the
related bank conditions, Including those related to interest on overdue payment. The said agreement
shall stipulate that the interest rate applicable shall be the nonnal interest rate on the date of
signature of the contract according to the rules established by the participants to the OECD
Consensus for export credits benefiting of the public supports.
ARTICLE 6 - CURRENCV OF ACCOUNT AND PAYMENT
The currency of account and payment under the tenns of the present protocol shall be
the French Franc.
ARTICLE 7 - REGISTRATION OF THE CONJRACTS
For each contract relating to the projects referred to in appendix, its registration as
specified hereafter is subject to :
- the confonnity of the contract with the recommendations fonnulated by the
pre-evaluation of the project corresponding to such contract;
- the verification of the conformity of the project with the rules established by the
participants to the OECD consensus for exports credits benefiting of a public support;
• the fact that there are no arrears concerning amounts due and not paid on due date
by the Government of the Republfc of Indonesia relating to French Treasury Loans;
- the fact that there are no arrears concerning amounts due and not paid on due date
relating to credits guaranteed by COFACE and granted to the Government of the Republie of
Indonesia or to its public sector or with the guarantee of the Government of the Republic of Indonesia,
if any.
For each contract relating to the projects referred to in appendix, after the French
competent authorities have verified that these conditions are fulfilled, the contract will be registered
on the protocol by exchange of letters between the Economic and Commercial Counsellor to the
French Embassy in Indonesia, acting with the authorisation of the competent French authorities, and
the competent Indonesian authorities.
ARTICLE I · DEAQYNES OF THE FRENCH TREASURY EACILITIES
In order to qualify for the financial support provided for in Article 1 hereof, contracts
between French suppliers and Indonesian buyers must be registered by September 30, 1999 at the
latest.
No drawing on the French Treasury financing provided by the present protocol shall
be made after September 30, 2002. By special agreement between the two Governments, in case of
exceptional circumstances, this date can be extended.
ARTICLE 9 ·TAXATION
The financial support from the French Government shall not be used to finance any
,
taxation in Indonesia.
The payments of principal and interest as well as fees linked to the execution of the
present Protocol shall be paid net of any taxation in Indonesia.
()9
ARJICLE 10 ·POST EVALUATION OF PRQJEC!S
(
The Government of the French Republic may proceed at its own cost to undertake
post evaluation of the projects financed under this protocol on the economic, financial and accounting
levels in order to appraise their impact on the economic development of Indonesia. The Government
of the Republic of Indonesia could, if It wishes, participate In this evaluation, according to modalities
to be defined, 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 Government of the French
Republic and to facilitate the access to relevant infonnatlon about the projects.
ARTICLE 11-EFFECTIVE QATE
The present protocol shall come into force at the date of Its signature.
IN WITNESS THEREOF, the undersigned, authorized
for this purpose by their respective Governments,
have affixed thereto their seals.
Done in
J o.. k.v 1-o.
, the
L.,.1--k
ｯｦＮＨＩ･｣｟
Ｌ ＬｊＮ＾ｴｲｬｾＷ＠
(in four originals, two in the French and two in the
English language, the two texts being equally
authoritative).
For the Government Of
the Republic of Indonesia
Signed
c
For the Government of
the French Repubt.iff
Signed
APPENDIX
Tanah Abang - Serpong: double tracking development (excluding signaling system)
170 MF
Development of port for research vessel
(subject to evaluation)
25MF
Improvement of cancer care and radiotherapy services
30MF
TOTAL
225MF
Afin de renforcer les liens d'amiti8 et de cooperation qui les unissent, le
Gouvemement de la Republique d'lndonesie et le Gouvemement de la Republique franyaise sont
convenus de conclure le present protocole pour favoriser le developpement economique de
l'lndonesie.
ARTICLE 1 - MON!AtjT ET OBJEJ DES (eneficient de la garantle du Gouvemement de la
Republique d'lndonesie.
Pour chaque contrat relatif aux projets mentionnes en annexe, apres que les
autorites franyaises competentes auront constate que ces conditions sont dument remplies, ii sera
procede a son imputation sur le present protocole par echange de tettres entre le Conselller
Economlque et Commerdal pres l'Ambassade de France en lndoneste, agissant avec l'autor1sation
des autorites franyaises ｣ｯｭｾｴ･ｮｳＬ＠
et les autorites indonesiennes competentes.
ARTICLE 8 ·DATE§ LIMITE DES CONCOURS DU TRESQB FRANCAIS
Pour t>eneficier des concours definis ii l'arttcte 1 cl-dessus, tes contrats signes
entre prestataire franyals et acheteur indoneslen doivent etre imputes au plus tard le 30 septembre
1999.
Les tirages sur les financements du Tresor ｦｲ｡ｮｾｩｳ＠
accordes par le present
protocole dotvent 6tre realises au plus tard le 30 septembre 2002. Cette date pourra 6tre prorogee en
cas de Circonstances exceptionnelles, au cas par cas, et apres accord entre les deux
Gouvemements.
ARTICLE 9 - IMPOTS ET TAXES
Les concours financiers du Gouvemement Franyais
protocole ne peuvent servir a payer aucun imp6t ni taxe en Indonesia.
lies a !'execution du present
Les remboursements en principal et les paiements en ｩｮｴ･ｾｳ＠
et les commissions
lies !'execution du present protocote seront effectues nets de tout imp6t et taxe en Indonesia.
a
ARTICLE 10-EVALUATION RETRQSPECTIVE DES PROJETS
Le Gouvemement de la Republique franc;aise peut faire proceder a ses frais 8
revaluation retrospective, sur les plans econornique, financier et comptable, des projets inscrtts sur
ce protocole, de maniere notamment a en apprecier l'impact sur le developpement economtque de
l'lndonesie. Le Gouvemement de la Republique d'lndonesie est associe, s'il le souhaite, a la conduite
de cette evaluation, selon des modalites qui sont a definlr, afin de t>eneticier directement des
resunats de l'etude. Le Gouvemement de la Republique d'lndonesie s'engage a accueilllr la mission
d'evaluation envoyee par le Gouvemement de la Republique franQaise et a lui faciliter l'acces aux
Informations concemant les projets.
ARTICLE 11 - ENTREE EN VIGUEUR
Le present protocole entre en vigueur a la date de sa signature.
EN FOi DE QUOI, les representants des deux
Gouvemements, dument autorlses a cet effet, ont
signe le present accord et y ont appose leur sceau.
(en quatre exemplaires originaux, deux en langue
fran98lse et deux en langue anglaise, les deux textes
faisant egalement foi).
Pour le Gouvemement
de la Republique d'lndonesie
Pour le Gouvemement
de la Republique franQaise
Signed
Signed
n' soenADI
ＶＱｻＰｔｎＯｦｬｾａＮ＠
I( . C. HA "13 f\Al\
ANNEXE
Doublement de la ligne reliant Tanah Abang
'
ala ville de Serpong (hors signalisation)
170 MF
Amenagement portuaire pour navire oceanographique (sous reserve d'evaluation)
25 MF
Developpement des services de radiotMrapie et de traitement du
cancer
30 MF
TOTAL
225MF