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SPECIFIC AGREEMENT BETWEEN THE GOVERNMENT OF THE
REPUBLIC OF INDONESIA
KINGDOM OF BELGIUM
PROJECT :

AND THE GOVERNMENT OF THE

ON THE IMPLEMENTATION OF THE

Bdevlopmセt@

OF PAL-SHIPYARD".

The Government of the Republic of Indonesia and the Gover
ment of the Kingdom of Belgium,
Within the framework of the General Agreement on Technica
Cooperation of June 16, 1969,
Considering the importance of the development of the ship!
エィゥセ@

building industry in Indonesia and desiring to co-operate in

field,

Have agreed as follows
ARTICLE 1.

Description of the project.

The Government of the Republic of Indonesia and the Gover
ment of the Kingdom of Belgium decide to co-operate in the imple '
mentation of the project : "Development of PAL-Shipyard",
hereinafter referred to as "the Project".
The Project is described in the Terms of Reference
(T.O.R.) attached to this Specific Agreement and forming an
integral part of it.
ARTICLE 2.

Executing Agency.

The Government of the Republic of Indonesia designates
P.T. PABRIK KAPAL INDONESIA (Persero)


(P.T. PAL INDONESIA) as

its Executing Agency.

. .I . .

-

2.

The Government of the Kingdom of Belgium designates the
General Administration for International Co-operation and Development (G.A.C.D.) as its Executing Agency. The G.A.C.D. is
represented in Indonesia by the Development Co-operation
Section of the Belgian Embassy in Jakarta.
For reasons of efficiency, the G.A.C.D. will entrust the
implementation of its contribution

to


an

experienced sub-

contractor.

ARTICLE 3.

Contribution of the Government of the Kingdom of
Belgium.

Within the limits of the budgetary means of the Belgian
Government, the Belgian contribution allocated to the Project
will not exceed B.F. 100.000.000. This amount covers the
following inputs :
a)

The total cost of a team of eight experts for a total
period of 108 manmonths. These experts will be respectively
specialized in the following fields

two all-round specialists;
two wooden hull specialists;
two engineroom and ship's outfit specialists;
two electricians.
and be acceptable to the Government of the Republic of
Indonesia. The travel expenses to and from Surabaya will be
borne by the Belgian Government.

b)

The training of twenty Indonesian shipyard technicians in
Belgium for a total duration of 120 manmonths, the travel
expenses of these trainees to and from Belgium and the
necessary allowances for lodging and health insurance
during their stay in Belgium.

c)

Establishing of training facilities and supply of necessary equipment for the training facilities at PAL including
the dispatching of this equipment to Surabaya.


. .I . .

3.

d)

Maintenance and operational training in Belgium for the user
as detailed in the T.O.R. for a total duration of 48 manmonths.
The Government of the Kingdom of Belgium will bear their travel expenses to and from Belgium as well as the

necessary

allowances for board and lodging and health insurance

during

their stay in Belgium.

ARTICLE 4.


Contribution of the Government of the Republic of
Indonesia.

The Government of the Republic of Indonesia, in accordance
with the prevailing laws and regulations, shall grant the Projec
with sufficient means to reach the objectives described in the
Terms of Reference.
More particularly the Government of the Republic of Indonesia shall
- appoint the Indonesian counterparts as well as the appropriate
administrative and technical personnel required for the implementation of the Project;
- select the candidates for training in Belgium;
- place at the disposal of the Belgian experts the shipyard's
infrastructure and equipment as well as the off ice accomodation necessary for the implementation of the Project;
- do its utmost so that the Indonesian counterparts be in a posi
tion to fully devote themselves to the Project;
- provide the Belgian experts who will be appointed in Indonesia
for the Project with the exemptions and privileges

mentioned


in article 7 of the General Agreement on Technical Co-operation of June 16, 1969.
- grant exoneration from all duties, other restricting rights
and taxes on the equipment which will be delivered by the
Government of the Kingdom of Belgium as agreed upon in Article
10 of the said General Agreement.

. .I . .

-

I

4.

provide furnished accomodation and a service car for the Belgian experts mentioned in Article 3.a. during their stay

in

Indonesia.


ARTICLE 5.

Control and evaluation.

At any time both Governments may supervise and/or
control the state of progress of the Project.
Where necessary and after consultation, both Governments
may evaluate the Project or part of its implementation aspects.

ARTICLE 6.

Settlement of dispute.

Any dispute arising out of the interpretation or implementation of this Specific Agreement, shall be settled amicably
by consultation or negotiation between the two Governments.

ARTICLE 7.

Modification.


Alterations and additional clauses to this Agreement can
be made after consultation by exchange of letters between

both

Governments.

ARTICLE 8.

Validity.

This Specific Agreement comes into force on the date of
signing and remains valid until the full completion of the
Project.

I

. .I . .


5.

In witness whereof, this Specific Agreement was signed
at

Jakarta

on

November

/.5th

1981,

in duplicate

by
For the Government of


For the Government of the

the Republic of Indon esia,

King, ........

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