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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE REPUBLIC OF FINLAND
CONCERNING
RURAL ELECTRIFICATION

The Government of the Republic of Indonesia and the Government of
the Republic of Finland, desiring to cooperate in furthering the
cordial relations between their two countries and promoting

the

economic and social development in Indonesia.
Have agreed as follows :

ARTICLE

I


The Project
1. The Government of the Republic of Indonesia and the Government
of Finland shall cooperate in implementing the rural electri fication of clustered villages using suspended insulated conductors (hereinafter referred to as "the Project").
2. The objectives of the Project are as follows :
2.1. Formulate the basic guide-lines to be applied for the
electrification of two Indonesian villages agreed upon by
the parties hereto
2.2. Prepare the detailed plan for rural electrification consisting of low-voltage distribution network
2.3. Supply of suspended insulated conductors with accessot'ies
and for overhead line and service entrance material
2.4. The supervising and guiding of the installation work made
by the PLN

when installation concerns equipment referred

to in paragraph I : 2.3. above

2.5. The Finnish •••

- 2 -


2.5. The Finnish planning, supplies and supervision of the
installation are limited by the starting point of the
medium tension line feeding the substations as well as
by the wall inlets of the houses in the villages
2.6. Train the Indonesian personnel.

The purpose of the train-

ing is to transfer the installation and maintenance technology to the Indonesian technical personnel. The training
consists of theoretical and practical training in the pilot
villages. The number of the personnel to be trained will be
agreed upon by the parties hereto. The training will be
executed in suitable places determined by the Indonesian
authorities
2.7. Evaluatethe results achieved by the Project.
3. The supplies will be effected ex works in May 1979 and the training and the supervision of the installation will take place

in


August/September 1979. The Project will be completed latest by
the end of October 1980.
ARTICLE

II

Competent Authorities
The Ministry for Foreign Affairs of Finland, represented in Indonesia by the Embassy of Finland, and the Ministry of Mines and Energy
represented by PLN of Indonesia shall be the Competent Authorities
of the two Governments for the implementation of this Memorandum.
ARTICLE

III

Obligations of the Government of Finland
1. The Government of Finland shall contribute towards the costs
of the Project up to the maximum of four hundred and eighty
thousand (480.000) Finnish Marks.

This amount will be made


available in 1979.
2. For

- 3 -

2. For the performance of the Project the Government of Finland
will conclude a consultancy contract with the Finnish Company
Oy NOKIA Ab) Finnish Cable Works (hereinafter referred to as
"the Consultant").
ARTICLE

IV

Obligations of the Government of Indonesia
The Government of Indonesia shall :
1. Bear the costs of Indonesiancounterpart personnel and other
Indonesian personnel needed in the implementation of the Project.
2. Acquire all other material, tools and labour needed for the
realization of the Project.

3. Provide the consultant with all the relevant data and information
available and necessary for the completion of the Project.
4. Assist the consultant and his personnel in arranging introductions
to and appointments with authorities and other parties as necessary.
5. Provide and bear the costs of
suitable office acconnnodation and secretarial services and
telephone as well as other normal office services for the
consultant
local travel and transportation for the consultant's personnel
in connection with the official Project business.
ARTICLE

V

Status of the Consultant
The Government of Indoresia in conformity with its regulations shall
make the necessary arrangements for :
granting free of charge and in due t ime permits and licenses that
may be required for the consultant's personnel in Indonesia
providing accommodation, excluding meals, laundry, telephone and

other personal_ expenses fo r the personnel of the consultant
- exempting •••

- 4 - Exempting the Consultant from customs duties and related charges
in respect of material and equipment imported into Indonesia in
connection with the Project, and the personnel of the Consultant
in respect of personaJ

goods imported into Indonesia, provided

that the material and equipment are consequently exported out of
Indonesia after the completion of the Project.
ARTICLE

VI

General Provision
l.For the evaluation of the Project the two Governments

shall make


available to each other all such information and data as the other
may reasonably request. The Ministry of Mines and Energy of Indonesia shall submit to the Ministry for Foreign Affairs of Finland
a final progress report after the completion of the Project.
2.This Memorandum may be amended or modified by mutual negotiations
between the Competent Authorities; such amendment or modification
shall be made in writing.
3.Any dispute arising out of the interpretation or implementation of
this Memorandum shall be settled through consultation or negotiation
between the Governments.
ARTICLE

VII

Entry into Force and Termination
l.This Memorandum shall enter into force on the date of signing and
shall remain valid until the completion of the Project .
2.This Memorandum may be terminated by either of the Parties with a
prior notice in writing of three months to the other Party.
IN WITNESS WHEREOF the Representatives of the two Governments, Duly

have signed this Memorandum.
。オエィッイゥセ・、@

SIGNED in Jakarta on April ,2,,,.p(, 1979 in duplicate, in the English
language.
FOR THE GOVERNMENT OF THE

FOR THE GOVERNMENT OF THE

REPUBLIC OF INDONESIA

REPUBLIC OF FINLAND

Signed

Signed

SAMAUN SAMADIKUN

TUURE MENTULA


Director General of Power

Ambassador of the Republic
of Finland.

MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE REPUBLIC OF FINLAND
CONCERNING
RURAL ELECTRIFICATION

The Government of the Republic of Indonesia and the Government of
the Republic of Finland, desiring to cooperate in furthering the
cordial relations between their two countries and promoting

the


economic and social development in Indonesia.
Have agreed as follows :

ARTICLE

I

The Project
1. The Government of the Republic of Indonesia and the Government
of Finland shall cooperate in implementing the rural electri fication of clustered villages using suspended insulated conductors (hereinafter referred to as "the Project").
2. The objectives of the Project are as follows :
2.1. Formulate the basic guide-lines to be applied for the
electrification of two Indonesian villages agreed upon by
the parties hereto
2.2. Prepare the detailed plan for rural electrification consisting of low-voltage distribution network
2.3. Supply of suspended insulated conductors with
。」・

ウセ


イ ヲセ

ウ@

and for overhead line and service entrance material
2.4. The supervising and guiding of the installation work made
by the PLN

when installation concerns equipment referred

to in paragraph I : 2.3. above
2.5. The Finnish •••

- 2 -

2.5. The Finnish planning, supplies and supervision of the
installation are limited by the starting point of the
medium tension line feeding the substations as well as
by the wall inlets of the houses in the villages
2.6. Train the Indonesian personnel.

The purpose of the train-

ing is to transfer the installation and maintenance technology to the Indonesian technical personnel. The training
consists of theoretical and practical training in the pilot
villages. The number of the personnel to be trained will be
agreed upon by the parties hereto. The training will be
executed in suitable places determined by the Indonesian
authorities
2.7. Evaluate the results achieved by the Project.
3. The supplies will be effected ex works in May 1979 and the training and the supervision of the installation will take place

in

August/September 1979. The Project will be completed latest by
the end of October 1980.
ARTICLE

II

Competent Authorities
The Ministry for Foreign Affairs of Finland, repres ented in Indonesia by the Embassy of Finland, and the Ministry of Mines and Energy
represented by PIN of Indonesia shall be the Competent Authorities
of the two Governments for the implementation of this Memorandum.
ARTICLE

III

Obligations of the Government of Finland
1. The Government of Finland shall contribute towards the costs
of the Project up to the maximum of four hundred and eighty
thousand (480.000) Finnish Marks.

This amount will be made

available in 1979.

2. For

- 3 -

2. For the performance of the Project the Government of Finland
will conclude a consultancy contract with the Finnish Company
Oy NOKIA Ab, Finnish Cable Works (hereinafter referred to as
"the Consultant").
ARTICLE

IV

Obligations of the Government of Indonesia
The Government of Indonesia shall
1. Bear the costs of Indonesiancounterpart personnel and other
Indonesian personnel needed in the implementation of the Project.
2. Acquire all other material, tools and labour needed for the
realization of the Project.
3. Provide the consultant with all the relevant data and information
available and necessary for the completion of the Project.
4. Assist the consultant and his personnel in arranging introductions
to and appointments with authorities and other parties as necessary.
5. Provide and bear the costs of
suitable office acconnnodation and secretarial services and
telephone as well as other normal office services for the
consultant
local travel and transportation for the consultant's personnel
in connection with the official Project business.
ARTICLE

V

Status of the Consultant
The Government of Indonesia in conformity with its regulations shall
make the necessary arrangements for :
granting free of charge and in due time permits and licenses that
may be required for the consultant's personnel in Indonesia
providing acconnnodation, excluding meals, laundry , telephone and
other personal

expenses for the personnel of the consultant
- exempting •..

- 4 - Exempting the Consultant from customs duties and related charges
in respect of material and equipment imported into Indonesia in
connection with the Project, and the personnel of the Consultant
in respect of personal goods imported into Indonesia, provided
that the material and equipment are consequently exported out of
Indonesia after the completion of the Project.
ARTICLE

VI

General Provision
1. For the evaluation of the Project the two Governments shall make
available to each other all such information and data as the other
may reasonably request. The Ministry of Mines and Energy of Indonesia shall submit to the Ministry for Foreign Affairs of Finland
a final progress report after the completion of the Project.

2. This Memorandum may be amended or modified by mutual negotiations
between the Competent Authorities ; such amendment or modification
shall be made in writing.
3. Any dispute arising out of the int erpretation or implementation of
this Memorandum shall be settled through consultation or negotiation
between the Governments.
ARTICLE

VII

Entry into Force and Termination
1. This Memorandum shall enter into force on the date of signing and
shall remain valid until the completion of the Project.
2. This Memorandum may be terminated by either of the Parties with a
prior notice in writing of three months to the other Party.

IN WITNESS WHEREOF the Representatives of the two Governments , Duly
authorized have signed this Memorandum.
SIGNED in Jakarta on April 2.,

セ、N@

, 1979 in duplicate, in the English

language.
FOR THE GOVERNMENT OF THE

FOR

REPUBLIC OF INDONESIA

REPUBLIC OF FINLAND

Signed

THE

GOVERNMENT OF THE

Signed

SAMAUN SAMADIKUN

TUURE MENTULA

Director General of Powe r

Ambassador of the Republic
of Finland.

I

URHO

KALEVA

KEKKONEN

President of the Republic of Finland
make known:

WHEREAS the Government of the Republic of Finland and the
Government of the Republic of Indonesia have decided to conclude
an

Agreement

on

the

cooperation in implementing the

rural

elect rifi cation of two Indonesian villages ;

THEREFORE
Ambassador

I

have

authorized

Extraordinary

and

Mr.

Tuure

MENTULA ,

Plenipotentiary of Finland

in

Djakarta, or, in case of his absence, his deputy, to negotiate
and sign on behalf of the Government of Finland the aforesaid
Agreement;

IN WITNESS WHEREOF I have hereunto set my hand and caused
my seal to be affixed to these pre sen ts.

GIVEN at Helsinki this 6th day of October 1978.