n~akarta,
January
r
t
1967.
Ur. Chargt d'Atfaires. I have the honour to acknowledge receipt cf your note dated January 7 , 1967 • which reade ae !oll.9ws i "I have the honour to refer to convornntions which have recently ·taken place between representet1 veE* of our two Governments relating to inveetments in Indonesia wbioh further the development o tho economic resources and productive capacities ot Indonesia and to g\1.llrantiea ot such inveotments by the Government or the United States of Ame-rica. I also have tho ho41or to confirm
the following underatandingn reached ae a raeult at those oonversatione
t
1. Whan nationals of the
ot
Govern..~nt
of the United
States Ame~ica, hereinafter called the Guaranteeing Governnient, propose to invef!t with the assistance of suarantieo iaoued pursuant to this Agreement in n project or actiYity within the territorial juriediction or the .Gov·ornment o~ the Hepublic of Indonoeia• hereinafter
called the Host Government, the two Governments shall, upon the request of either, consult respecting the nature oC the project or eotivity and its contribution to economic nnd aocial development in Indonesia. 2. 'the prooeduros eet forth in this Agreement shall appl:· only With reapeot to gua.rant•ed investments in projeeto or act1v1t1ee approved. by the llost Government . 3. If the Guaranteeing Goverru:ient tiakeo payment to any investox.- under a guartmty isaued t>Utsuant · to tho present Agreement;, tho Host Government! ahall; aubject to the proviaiono of the follo.u.ng· paragraph, r~cogn1ze
_)
\
Hr. Jack w. Lydman Charge d'Afteiro£: Ad Interim
for the United States of America Djakarta, Indonesia.
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the transfer to the Guaranteeing Government of any currency, credits, assets, or investment on account of which payment under such guaranty i s made as well a s the succession of the Guaranteeing Government to any right, t itle, claim, privilege, or caus e of action existing, or which may arise , in connection therewith.
4. To the extent that the laws of the Host Government partially or wholly invalidate the acquisition of any interests in any property within its national territory by the Guaranteeing Government, the Host Gover nment shall permit such investor and the Guaranteeing Government to make appropriate arrangements pursuant to which such interests are transferred to an entity permitted to own such interests under the laws of the Host Government . ".rhe Guaranteeing Government shall assert no greater right.a than those of the transferring investor under the laws · of the Host Government with respect to any intel.'lests transferred or succeeded to as contemplated in paragraph 3. The Guaranteeing Government does, however, reserve its \ rights to assert a claim in its sovereign capacity in the eventuality of a denial of jus tice or other questi on of state res pons ibility a s defined in international law. ~
5. Amounts in the lawful currency of the Host Government and credits thereof acquired by the Guaranteeing \ Government under such guaranti es shall be accorded treatment neither le ss nor more favorable than that accorded tc funds of nationals of the Guaranteeing Government deriving from investment activities like those in which the investor has been engaged , and s uch amounts and credits shall be freely available to the Guarante eing Government to meet its expenditures in the national territory of the Host Government.
-' 6. (a) Ditferanceo between the t o Governmentn concerning tho interpretation of the proV1s1on of thi~ Agreement shall be eettlod , 1nootnr as po aible , through negot1ationc betveen th two Govornmenta. It such a ditf rence cannot be resolved within p riod of three aontht tollo in th request for Guch negotiation 1 it ohall be eubmitted , at tho roqu st of either Government, to an ~.hs?s ~rbitr l tribunal for settlement in accord nee with the applicable principl a end rules of publi~ internationnl law. fh e.rbitral tribunal ahall be established ae follows: Each Government ball appoint one arbitrntor; these two arbitrators shall de~ignate n President by co~mon agreement who shall be e. c1ti~en ot a third State and be appointed by tl1e two Govel'llDlente. '.rhe arbi trntore shall be appointed within t o monthe end the President within three months of the date of receipt of either Governm . nt•o requoat for arbitration. If tbu 1'orego1n time limi te are not met, either Government may, in the eb ence of any other agreement, requeot tho President of the International Court of Ju tice to make the nece ea.ry appointoent or appointnontst nnd both GovarnmcntD agree to accept such appointr.ient or appointcants. The arbitrnl tribunal ahe.11 decide by maJority voto. Its decioion ehnll be binding. Each of the Governm nte shall pay. the expense of ite momber and 1to repres entation in the prooecdinsa before the arbitrnl tr1bun : tho expen o or the Preeident and the other co~te ~hall be p id in eoual parts by the two _)'
Governm\,;nta . fho arbi trnl tz:'ibuna.l may adopt other regulations concerning t he cooto . In all other mntters, the arbitral tribunal shall regulate its OM\ procedures. ~ (b) Any claim • ar1u1ng out of inveotmants guernte in accordcnce with th1.a Agre rn nc, o. a.in.Jt either ot the two Govommenta t which, in the opinion or the other,
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preoento a question of public international lnw,aholl, at the requeot or the Government presenting the claim, be auboitted to negoti ationa. If at the end of throe monthe tollo.1ng the roqueot tor negotiations the two Governuente hflve not ro L,} olved tho clnim by utunl agreenent, the elate, 1nclua1ng the queation of hethcr it presents queBtion of public international. law, oha.11 be eubm1 tted ·"'or eettler.ient to e.n arbi trnl trl 'bunal oe-, lected in accordance with paragraph (n) above . The arbitrol tribunal shall base its docicion exolunively on the applicable principleo and rulee of public international law. Only the reDpective Governncnts cay request the arbitrol procedure and participate in it.
7. Thie Agree:.uent ebflll continue in force until oix from the date of recei¥t of u note by hich one Government informs the other ot an intent no lon3cr to be a party to the Agree~ent . In such event, the provieion of the Asreement with rea1loct to g-uerantice ianued v;h1le tho Agreement B s in :torco ,o hall rennin in force for the durotion of thoae guarantieo, in no case longer than twenty ye rs, e.fter the denuncintion of the Agreeoent. onth~
)
8. This Agreement ohall enter into force on the date of the note by which the Ho t Goverllr.1ent coremunionton to the Gunranteo1ng Governmont thot the Agreeocnt he been approved in conformity with the Host Govomnent's conet1tut1onal procedures . Upon receipt of a note from Your Excellenoy indiaat1rtE thet the :roraso1r. r p1·oviaione are ncceptnble to 'the Government o! tho nepu t lic o! Indonesiat the Govornment o! tha United State of Acer1ca will conoider that this note and your reply thereto constitute an Agreement between our two Govern::icntJ on th1c t:iub ~ect, the Agreement
...
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into force in accorda.nco with parngra h
Aocopt,
oellency, tho r nc1 d a· urancc
e
above·.
of my
higho t con id r tio.u. i•
I con!'im th t tho foregoing prov1s1ono aro accopt bl to the Government or tha Republic of Indonesia and th t your not
of Jc.nuary ;
, 1967 • end thi. roply thereto const:1 tuto
an Agrcoment bst\vean our Accept,
?Kr".
o Govcrnmento on thia
ubj ct.
Oh rg~ d'JJ.ftairee, tho nsourQiloee of my
hi heet consideration.
Signed
(Adum Malik) inister o.f Fore1e'1l Ii ff'airu •
R public of Indonesi
Signed
(Jae
•
d'Affaire Ad Interim tho United St tea of America.
Chnrg~ ~or )
ydtla.n)
Djakarta, January 7, 1967. Excellency: I have the honor to refer to conversations which
.l
have recently taken place between representatives of our two Governments relating to investments in Indonesia which further the development of the economic resources and productive capacities of Indonesia and to guaranties of such investments by the Government of the United States of America.
I also have the honor to confirm
the following understandings reached as a result of those conversations:
I
1.
When nationals of the Government of the United
States of America, hereinafter called the Guaranteeing Government, propose to invest with the assistance of guaranties issued pursuant to this Agreement in a project or activity within the territorial jurisdiction of the Government of the Republic of Indonesia, hereinafter called the Host Government, the two Governments
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shall, upon the request of either, consult respecting the nature of the project or activity and its contribution to economic and social development in Indonesia. His Excellency Adam Malik,
t
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e
Minister of Foreign Affairs, Republic of Indonesia, Djakarta.
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2.
The procedures set forth in this Agreement
shall apply only with respect to guaranteed investments in projects or activities approved by the Host Government. 3o
If the Guaranteeing Government makes payment
to any investor under a guaranty issued pursuant to the present Agreement, the Host Government shall, subject to the provisions of the following paragraph, recognize the transfer to the Guaranteeing Government of any currency, credits, assets, or investment on account of which payment under such guaranty is made as well as the succession of the Guaranteeing Government to any right, title, claim, privilege, or cause of action existing, or which may arise, in connection therewith. 4o
To the extent that the laws of the Host
Government partially or wholly invalidate the acquisition of any interests in any property within its national territory by the Guaranteeing Government, the Host Government shall permit such investor and the Guaranteeing Government to make appropriate arrangements pursuant to which such interests are transferred to an entity permitted to own such interests under the laws of the Host Government.
The
Guaranteeing Government shall assert no greater rights than those of the transferring investor under the laws of the Host Government with respect
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to any interests transferred or succeeded to as contemplated in paragraph 3o
The Guaranteeing
Government does 1 however, reserve its rights to assert a claim in its sovereign capacity in the eventuality of a denial of justice or other question of state responsibility as defined in international law. 5.
Amounts in the lawful currency of the Bost
Government and credits thereof acquired by the Guaranteeing Government under such guaranties shall be accorded treatment neither less nor more favorable than that accorded to funds of nationals of the Guaranteeing Government deriving from investment activities like those in which the investor has been engaged, and such amounts and credits shall be freely available to the Guaranteeing Government to meet its expenditures in the national territory of the Host Government. 6.
(a) Differences between the two Governments
concerning the interpretation of the provisions of this Agreement shall be settled, insofar as possible, through negotiations between the two Governments.
If
such a difference cannot be resolved within a period of three months following the request for such negotiations, it shall be submitted, at the request of either Government, to an ad hoc arbitral tribunal for settlement in accordance with the applicable
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principles and rules of public international law. The arbitral tribunal shall be established as follows: Each Government shall appoint one arbitrator; these two arbitrators shall designate a President by common 0
agreement who shall be a citizen of a third State and be appointed by the two Governments.
The arbitrators
shall be appointed within two months and the President within three months of the date of receipt of either Government's request for arbitration.
If the foregoing
time limits are not met, either Government may, in the absence of any other agreement, request the President of the International Court of Justice to make the necessary appointment or appointments, and both Governments agree to accept such appointment or appointments. The arbitral tribunal shall decide by majority vote. Its decision shall be binding.
Each of the Governments
shall pay the expense of its member and its representation in the proceedings before the arbitral tribunal; the expenses of the President and the other costs 0
shall be paid in equal parts by the two Governmentso The arbitral tribunal may adopt other regulations concerning the costs.
In all other matters, the
arbitral tribunal shall regulate its own procedureso (b) Any claim, arising out of investments guaranteed in accordance with this Agreement, against
- 5 either of the two Governments, which, in the opinion of the other, presents a question of public international law, shall, at the request of the Government presenting its claim, be submitted to negotiations. If at the end of three months following the request for negotiations the two Governments have not resolved the claim by mutual agreement, the claim, including the question of whether it presents a question of public international law, shall be submitted for settlement to an arbitral tribunal selected in accordance with paragraph (a) aboveo The arbitral tribunal shall base its decision exc
clusively on the applicable principles and rules of public international law.
Only the respective
Governments may request the arbitral procedure and participate in it. 7.
This Agreement shall continue in force
until six months from the date of receipt of a note by which one Government informs the other of an 0
intent no longer to be a party to the Agreement. In such event, the provisions of the Agreement with respect to guaranties issued while the Agreement was in force shall remain in force for the duration of those guaranties, in no case longer than twenty years, after the denunciation of the Agreement.
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a.
This Agreement shall enter into force on
the date of the note by which the Host Government communicates to the Guaranteeing Government that the Agreement has been approved in conformity with the Host Government's constitutional procedureso Upon receipt of a note from Your Excellency indicating that the foregoing provisions are acceptable to the Government of the Republic of Indonesia, the Government of the United States of America will consider that this note and your reply thereto constitute an Agreement between our two Governments on this subject, the Agreement to enter into force in accordance with paragraph 8 above. Accept, Excellency, the renewed assurances of my highest considerationo
Signed
Signed
Jack w. Lydrnan, Charge d'Affaires aoio for the United States of Americao
Adam Malik, Minister of Foreign Affairs, Republic of Indonesiao
MEMORANDUM SALING PENGERTIAN ANTARA PEMERINTAH REPUBLIK INDONESIA DAN PEMERH~TAH
A.MERIKA SERIKAT
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MENGENAI KERJASAMA DALAM BIDANG PENANAMAN MODAL ASING
MEMORANDUM SALING PENGERTIAN ANTARA PEMERINTAH REPUBLIK INDONESIA DAN PEMERINTAH AMERIKA SERIKAT MENGENAI KERJASAMA DALAM BIDANG PENANAMAN MODAL ASING
1.
(1) Pemerintah Republik Indonesia dan Pemerintah
Amerika Serikat menyadari pentingnya peranan penanaman modal asing dalam perkembangan ekonomi kedua negara. Kedua Pemerintah mengakui bahwa arus modal adalah penting dalam peningkatan produktivitas dan mempercepat alih teknologi
d~n
keahlian.
Selanjutnya Kedua Pemerintah menyadari bahwa iklim penanaman modal dan usaha yang baik adalah pokok untuk memudahkan penanaman modal asing. (2) Dengan memperhatikan kondisi-kondisi perkembanga n ekonomi masing-masing, Kedua Pemerintah setuju untuk meneruskan usaha-usaha mereka untuk memperluas kesempatan penanaman modal dan melinqungi, sesuai dengan peraturan perundang-undangannya rnaupun hukum internasional, penanaman modal warganegara-warganegara dan perusahaan-perusahaan negara lain di wilayahnya masing-masing. 2.
Untuk lebih mempererat hubungan ekonomi antara
kedua negara, Kedua Pemerintah mengakui perlunya peningkatan kerjasama di bidang penanaman modal asing.
Untuk ke-
pentingan peningkatan iklim dimana penanaman modal asing
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2
dapat memberikan kontribusi yang saling bermanfaat bagi kedua negara, diakui bahwa : (I) Kedua Pemerintah akan bekerjasama untuk rnengidentifikasi kesempatan penanarnan modal dengan rnemberikan informasi dan bantuan kepada para
inve~tor
yang potensial
dari tiap negara yang ingin rnenanarnkan modalnya di negara lainnya. Pemerintah Amerika Serikat akan mempertimbangkan penyediaan bantuan termasuk dana untuk mernbiayai studi kelayakan tentang proyek-proyek yang cocok bagi usaha bersama di Indonesia. (II) Kedua Pemerintah akan bekerjasama untuk menyediakan inforrnasi yang menyangkut bidang usaha dan bantuan yang layak lainnya bagi perkumpulan usahawan kedua negara (III) Kedua Pemerintah akan berusaha menyelesaikan kesulitan yang dapat timbul sehubungan dengan penanaman modal dari salah satu
~gara
di negara lain dan bila perlu
mengadakan konsultasi mengenai kesulitan-kesulitan tersebut. (IV) Kedua Pemerintah akan bertemu secara berkala untuk meninjau kecenderungan-kecenderungan di bidang Penanaman Modal yang memperngaruhi Indonesia dan Amerika Serikat, hal-hal lain yang dapat secara negatif mempengaruhi Penanaman Modal dan mempertimbangkan langkah-langkah selanjutnya untuk rnemudahkan Penanaman Modal Asing.
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(V)
Untuk mencapai tujuan-tujuan ini, Kedua
Pemerintah menyatakan pentingnya diadakan suatu persetujuan bilateral tentang Peningkatan dan Perlindungan Penanaman .;
Modal. 3.
Kedua Pemerintah setuju dalam semangat Memorandum
Saling Pengertian ini mensponsor pengiriman rnisi penanaman modal dari satu negara ke negara lain termasuk mengadakan seminar bersama. 4.
Pemerintah Amerika Serikat akan terus menasehati
investor yang potensiil tentang kesempatan, peraturan-peraturan , dan keadaan umum tentang penanaman modal dan bisnis di Indonesia. Para investor yang potensiil dan perusahaan akan didorong untuk menemui para _pejabat Indonesia yang bersangkutan terutama para pejabat BKPM untuk mernbahas prospek penanaman modal dan usaha. 5.
Kedua
Pemerin~ah
matik, konsuler dan
par~ .
akan rnenunjuk perwakilan diplopejabat perdagangan masing-rnasing
sebagai perantara untuk memperlancar pelaksanaan Memorandum Saling Pengertian ini. SEBAGAI BUKTI yang bertandatangan di bawah ini, yang mendapat kuasa dari Pemerintah masing-masing, telah menandatangani Memorandum Saling Pengertian ini.
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4
DIBUAT di Jakarta pada tanggal 13 Juli 1984, dalam bahasa Indonesia dan Inggris, kedua naskah tersebut samasama otentik.
UNTUK PEMERINTAH REPUBLIK INDONE S I A
Signed Prof . · Dr. Mochtar Kusumaatmadja Menteri Luar Negeri
UNTUK PEMERINTAH AMERIKA
SERIKAT
Signed George P.
S~hultz
Menteri Luar Negeri
