FINANCIAL PROTOCO L BETWEEN J`HE GOVERNMENT OF THE

FINANCIAL PROTOCO L
BETWEEN
J'HE GOVERNMENT OF THE REPUBLIC OF INDOl\ES IA
AND
Ti lE GOVERNMENT OF TilE FIU~N Cll REPUDLI C'
Wuh a view to strengthening the ties of fnendship and cooperatiOn that bind them, the
Government of the Republic of Indonesia and the Government of the f-rench Republic have agreed
to conclude the present Protocol to foster the economic development of Indonesia.
ART ICLL; I- EXTE?\T AND PURPOSE OF TilE Fl A CIA L SUPPOR'I
The French Government grants the Government of the Republic of lndones1a financial
support designed for the execution of a project included m the economic development priorities of
Indonesia. The sa id support, in the form of a French Government loan. shall not exceed
E I 300 000 (One Million Three Hundred Thousand Euros) and shall be used to finance the
purchase in France of French goods and serv1ces related to the implementation of the project of
tcchn1cal ass 1stance to the Air Traffic Control Center of Makassar.
ARTIC'l.l : 2- CONOITlONS AND MODALITIES GOVERNING FINANCIAL SUPPORT
The French Government loan shall finance the first downpayment of each contract related
to thiS project and the remainder of these contracts. The first downpayment shall be comprised
between 10% and 20% of the amount of the financed contract. after deduct1on of the amount of
freight and insurance.
The French Government loan shall be granted for a period of 12.5 years, includmg a
grace penod on years. The Interest rate shall be 0.2% per year. The sa1d loan shall be repaid in II
equal consecullve six-monthly instalments, the first instalment fal hng due 90 months afier 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
Government loan and shall be pa1d at six-monthly intervals.
The date of payment of matunty of principal or interest IS. when it falls due on a
non-workmg day tn France, postponed to the working day that follows. Any maturity of princi pal
or unerest not paid on due date shall give rise ro interest on overdue payment from the date of
maturity up to the eHcetive date of payment. The rate of interest on overdue payment is the legal
interest rate published by the French Authorities for year 2006, plus 3% per year. Jnterest on
overdue payment shall itself bear interest at the rate above mentioned if it is due for a full year.
An implementation agreement will be s1gned between the Indonesian Ministry of
Fmance, acting 1n name and on behalf of the Government of the Republic of Indonesia, and
Natex1s n anques Populaires (Direction of Institutional Activities). acting in name and on behalf of
the Government of the French Republic. It shall define the mechan1sms of uttlisation and
repayment of the h ench Government loan.
AR11CLl::. 3 - C'URRE. CY OF ACCOUNT A '0 PAYMENT
The currency of account and payment under the terms of the present Protocol shall be
the Euro.
ARTJCLF. 4 - REGISTRATION OF THE CONTRACTS
The two Governments confirm the importance of the figh t against corruptton tn
international business transactions. The Parties to the contracts registered on the present Protocol
shall neither offer or g1ve, nor seek, accept or get pronused, d1rectly or indirectly, for themselves
or for another Party, any undue pecuniary or other advantage from or to a third Party and/or each
other which \vould or could be construed as an 1llcgal and corrupt pracuce.
For each contract rclatmg to the prOJCCI referred to in Arucle I, Its registration as
specified hereafter IS subject to:
- The conformity of the contract with the recommendations formulated 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 <>fa public support.
- The fact that it ex1sts no arrears concerning amounts due and not paid on due date by the
Government of the Republic of Indonesia relating to debt consolidation agreements that
took place 111 the Pans Club and to French Government loans;
- The examination of the state of amounts due and not paid on due date concerning export
credits guaranteed by COF ACE and granted either to the Government of the Republic of
Indonesia either to its public sector, or with the guarantee of the Government of the
Republic of Indonesia or its public sector.
f-or each contract relating to the project referred to in Art1cle I hereabove, after the
French competent Authorities have verified that these conditions are fulfilled. the contTact will bl'
reg1stered on the Protocol by exchange of letters between the authorised representatives of the
Government ofthc Republic oflndones1a and ofthe Government of the f-rench Republic.
AR rJCLE 5- OF.ADLI 'ES OF THE FRE CH GOVERNME T f-ACILITIES
In order to qualify for the financ ial support provided for 111 Article I hereof, contracts
between French suppliers and lndoncstan buyers must be rcgtstcrcd by 31 March 2007 at the
latest.
No drawmg on the French Government loan provided by the present Protocol shall be
made after 31 December 20 10.
ARTlCU. 6 - TAXATION
The financial support related to the execution of the present Protocol cannot be used for
the payment of any tax or duty in Indonesia. The reimbursemem of princ1pal and the payment of
tnterest, bankmg fees, fees and accessories linked to the execution of the present Protocol shall be
pa1d net of any taxation 111 Indonesia.
otwithstanding the provisions of the fiscal agreement and of 1ts assoc1ated protocol,
signed between France and Indones1a on 14 September 1979, and for the purpose to reserve the
financial resources provided for in the present protocol for the development of the Republic on
lndonesta, 11 IS agreed that for the contracts registered, the supply of goods and services. mcluding
techn1cal assistance by French companies m the framework of the present protocol. as well as
Importation, exportation, purchase, utilisation or disposal of goods and services contributing to the
production of such supplies, shall not be subject to any tax, customs dulles, soc tal secunty taxes or
any other levies 111 Indonesia.
Should such levies, whatever their object or nature, be collected according to the
Indones1an rules with respect to the said operations, then the payment of these levies shall be to the
charge of the Indonesian buyer.
AR11CLE 7- POST EVALUATION OF THE PROJECT
The Government of the French Republic may proceed at its own cost to undertake post
evaluation of the project financed under this Protocol on the economic. financ1al and accounting
levels in order to appraise its 1mpact on the economic development of lndones1a. The Government
of the Republic of' Indonesia shall part1c1pate 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 information about the project.
ARTICLE 8- EPPECTIVE DATE
The present Protocol shall come into force on the date of its signature.
IN WITNESS T li EREOF, the
undersigned, authorised for this
pw-pose
by the1r respective
Governments. have affixed thereto
( 1_ _ -#;_
their seals.
Done
.I 111.~
the.2/.s t.. /~ ~(In
four originals, two in the
Engh~h nd two in the French
langua s, the two texts being
equa authoritative),
For the Government of
the Republic of Indonesia
ror the Government of the
French Republic
Signed
Signed
PROTOCOLE FINANCIER
ENTRE
L.E GOUVERNEMENT DE LA REPUBLJQUE D' lNDONESlE
ET
LE GOUVERNEMENT DE LA REPUBLIQUE rRA:-.JCAISE
Afin de pourslllvre l'approfondissernent des hens d'amitie et de cooperation qui les
umssent, le Gouvernement de Ia Republique d'Indonesie et le Gouvernement de Ia Repubhque
fram,:a1se sont convcnus de conclure le present protocole pour favoriser le dcveloppement
CC0n0m1quc de J'Jndones1e.
Lc Gouvcrnemcnr de Ia R.epublique fran9aise consent au Gouvernement de Ia Republique
d'Jndonl!sic un concours financier destme a Ia realisation d'un projet s'inscnvant dans lcs priorires
de dcvcloppement cconomique de I'Indoncsie. Ledit concours, sous Ia forme d'un pret
gouvcrnemental fran9ais, est d'un montant maximum de 1.300.000 € (un million trois cent mille
euros) et finance l'achat en France de biens et servtces fran9ais relatif.-; au projet d'assistancc
technique destine au centre de controle de trafic aerien de Makassar.
ARTICLE 2 - CONDITIONS ET MODALJTES DE MISE EN PLACE DES CONCOURS
FI A:-.!CIERS
Le prct gouvememental fran9ais financera le premier acompte de chaque contrat relatif a
cc projet ainsi que le solde de ces contrats. Le premier acompte sera compris entre I0% et 20 %
du montant du contrat finance. deduction faite des frais de transport et d'assurance.
Lc prct gouvernemental franyais a une dun~e de 12,5 ans, dont 7 ans de francl11se. Le ta ux
d'mtcrct est de 0.2 % l'an. Le principal est remboursable en I I semcstrialitcs cgales et success1ves.
Ia premiere echcanl 90 mois aprcs Ia fin du trimesrre c1vil au cours duquel les tirages auront ete
effecn11!s. Lcs mterets sonr calcules sur le momant du princ1pal restant dii : ils courent a partir de Ia
date de chaquc tiragc sur le pret gouvernemental fran9ais et sont paycs semestriellement.
La date de rcglement d'une echcance de principal Oll d'intcret est, lorsqu'elle echoit till
jour non ouvre en France, repoussec au premier jour ouvre qui suit. Toute cchcance de pnncipal ou
d'interet non rcglee a bonne date donnera lieu a mteret de retard acomptcr du jour de l'exlgibtlitc
jusqu 'au jour du paiement effectif. Le taux des interets mora to ires est le raux cl'mteret legal
fran9<HS tel que lixc par dec ret ministeriel pour I'annee 2006, majorc de 3% I'an. Les imerets de
retard portent cux-mcmcs interet au taux delini ci-dessus s'ils sont dus pour une annec entiere
Une convention d'application sera signee entre Natexis Banqucs Popula1res (Direction des
Activitcs Insututionnelles) agissant au nom et pour lecompte du Gouvernement de Ia Rcpublique
rranc;aise et lc Ministcre des Finances indonesien agtssant au nom et pour le compte du
Gouvcrnement de Ia Republique d'Indonesie. Elle precisera lcs modalitcs d'uuhsation et de
rembourscment du pret gouverncmental fran9ais.
ARTICLE 3- MO;>JNAIE OE COMPTE ET DE PAIEMEN1
La monnate de compte et de pa1ement au titre du present protocole est l'euro.
ARTICLE 4 - IMPUTATION DES CONTRATS
Les deux Gouvernements rappellent leur attachement a Ia lutte contre Ia
corruption dans les transactions corrunerciales internationales. Les Parties aux comrats 1mputes sur
Je present protocolc ne peuvent proposer ou donner a un tiers, demander, accepter ou se faire
promcttre, directemenr ou mdirectement, pour leur benefice ou cclui d'une autre Partie aucun
avantage mdu. pccuniaire ou autre, constituant ou pouvant constituer um: pratique illt!gale er de
corrupt1011.
Pour chaque contrat finance par le pret gouvernemental franya1s relatif au projet
rnentiOIU1e a l'aruclc I, son Imputation, con1n1e prccisce ci-dessous, est condltionnee :
- a Ia confonnirc du comrat avec les recommandations fonnulees par l'evaluauon prealablc
du proJct correspondant au dit contrat ;
-a Ia verilicatwn de Ia conCormite du projet avec les dispositions prcvues par I'Arrangement
de I'OCnr. rclatif aux credits a I"exportation beneftciant d' un souticn public ;
- i1 !'absence de montants dus et non rcgles a bonne date par le Gouvcrncment de Ia
Rcpub lique d' lndom!s•e au titre des accords de consolidation de dette intervenus en Club de
Paris ~t des prets gouvernementaux fran<yais ;
- a l'examen de l'ctat des montants dus et non regl<~s a bonne date, au titre des cn!dits
bancaires garantis par Ia COFACE accordes au Gouvernement de Ia Republique d' Indonesie, a
son secteur public ou avec Ia garantie du Gouvernement de Ia Republique d'lndonesic.
Pour chaque contrat relatif au projet mcntionne a l'arttcle I, apres que les
autorites fran<ya•scs competentcs auront constate que ces conditions sont dumcnt remplies, il sera
proccde a son imputauon sur le present protocole par echange de leures entre les rcpresentants
autoriscs du Gouvernement de Ia Republique d'lndonesie ct du Gouvemement de Ia Republiquc
fran<yatse.
ARTICLE 5- DATES LIMITES DU PRET GOUVERNEME TAL FRANCA IS
Pour beneftcier du pret gouvernemental defim a l'arucle I ci-dessus. lcs contrats
entre prestataircs franpts et acheteurs indonesiens doivcnt ctre tmputes au plus tard Je 31 mars
2007.
Les tirages sur le pn!t gouvernemcntal fran<yais accorde par lc present protocole
doivent eire realises au plus lard le 31 decernbre 20 I0.
ARTICLE 6- IMPOTS ETTAXES
Les concours financiers lies a !'execution du present protocole ne peuvcnt scrvir a payer
aucun impot m taxe en lndonesic. Les remboursements en principal et les paiements en inten~ts,
commissions bancaires, frais et acccssoires lies a !'execution du present protocole seront effectues
nets de tout 1mpot et taxe en Indonesie.
·onobstant lcs dispositions de Ia convention fiscale et de son protocole associe, signe
entre Ia France ct I'Indonesie le 14 septembre 1979, et aux fins de reserver les tinancements pn!vus
par lc present protocole au developpement de Ia Republique d'lndonesie, il est entendu que pour
lcs contrats Imputes, Ia foumiture de biens et services, y compris !'assistance technique. par des
cntrcpnscs franyaiscs dans le cadre du present protocole, de meme que !'importation, !'exportation,
l'achat, l'uttlisation ou Ia disposition de biens et servtces concourant a Ia production de telles
lournnures, ne subironr aucuncs taxes, droits de douanes, cotisations soc iales ni autre prelevement
obhgato1re en lndonesie.
Si de tcls prclevements, quelque soit leur objet ou leur nan1re devaient etrt: effectues selon
lcs rcglcs indoncsietmes sur les operations precitees, le paiement serait <i Ia charge de l'achctcur
indoncsicn.
ARTICLE 7- EVALUATIO
RETROSPECTIVE DU PROJET
I.e Gouvcrncment de la Republique franc;aise peut fa1rc procedcr a scs fra1s a !'evaluation
retrospecuvc. sur les plans cconomique, financier et comptablc. du projet mscrit sur ce protocole.
de maniere notammcnt a en apprecier !'impact sur le developpement economiquc de l' fndonesie.
Le Gouvcrnemcnt de Ia Republique d'lndonesie est associe, s'il le souhaite, a Ia conduite de cettc
cvaluat1011, seton des modalites qui soot a definir, afin de bencfic1er directement des resullats de
l'cmde. I.e Gouverncment de Ia Republique d' Indonesie s'engage a accue!llir Ia miSSiOn
d'cvaluation cnvoyee par le Gouvernement de Ia Republ!que ti·anc;aisc era lui faciliter l'acces aux
informatiOns concernant le projct.
ARTICLE 8- ENTREE EN VIGUEUR
Lc present protocole entre en Vlgueur a Ia date de sa signamrc.
EN FO£ DE QUO! , les representants
des deux Gouvernements, dument
autorises a eet effet, ont signc lc
present accord et y ont appose leur
sceau.
Fait a
le .2(
(En qu ·e exempla1res origmaux, deux
en Ia 0 Ue franc;aise, deux en langue
les deux textes faisant
Pour le Gouverncment
de Ia Republique d'lndonesie
Signed
Ab~ 2.~ ·
Pour le Gouverncmelll
de Ia Republique franr,;aise
Signed