The Taipei Economic and trade Office and the Indonesian Chamber
of Commerce To Taipei hereinafter referred to as the " parties"
;
Desirous of strengthening trade relations between the parties ;
Intending to create favourable conditions for greater business
cooperation between them and in particular for investments by i-
ndividuals and companies of one country in the other country ;
Recognizing that the promotion and protection of such investmen-
ts will be conducive to the stimulation of individual business
initiative and to foster prosperity in both countries ;
Being duly authorized ;
Have agreed as follows ;
ARTICLE I
Definitions
For the purpose of this Agreement :
1 The term "investment" means any kind of asset invested by inv-
estors of one country in the other country, in conformity with
the laws and regulations of the latter, including but not exc-
lusively :
a movable and immovable property as well as other rights such
as mortgages, liens or pledges ;
b shares stocks and debentures of companies wherever incorpor-
ated or interest in the property of such companies ;
c claims to money or to any performance related to investment
having a financial value ;
d intellectual property rights and goodwill ;
e business concessions conferred by laws or under contract re-
lated to investment includiilg concessions to search for, c-
ultivate, extract or exploit natural resources.
2 "Investors" means any individuals or company of one country w-
ho effected or is effecting investments in the other country.
3 "Companies" means:
In Indonesia :
Any company with a limited liability incorporated in Indonesia
or any juridical person constituted in accordance with its le-
gislation. In Taiwan :
Any company or other juridical person properly incorporated a-
nd constituted in Taiwan.
4 "Individuals" means physical persons who according to the law
of each country are considered as citizens of each country.
5 "Retuns of incomes" means the amounts yielded by an investment
and in particular, though not exclusively, includes profit,
interest, capital gains, dividends, royalties or fees.

ARTICLE II
Promotion and Protection of Investment
1 Either party shall in accordance with its laws and regulations
encourage and create favourable conditions for individuals or
companies of the other party to invest in its country.
2 Investment of individuals or companies of either party shall
at all time be accorded fair and equitable treatment and shall
enjoy adequate protection in the country of the other party

ARTICLE III
Scope of Agreement
This Agreement shall only apply to investment by investors of T-
aiwan in Indonesia which have been granted admission in accorda-
nce with the Foreign Capital Investment Law No.l of 1967 and any
law amending or replacing it at or after the entry into force of
this Agreement.
This Agreement shall only apply to investments by investors of
Indonesia in Taiwan which have been granted admission in accord-
ance with the Statute for Investment by Foreign Nationals and t-
he Statute for Technical Cooperation of Taiwan, and any relevant
laws or regulations at or after the entry into force of this Ag-
reement.

ARTICLE IV
Treatment
Both parties shall seek and obtain the approval of their respec-
tive authorities to the effect that all investments made by inv-
estors of any party shall enjoy fair and equitable treatment by
the other party. This treatment shall be no less favourable than
that granted to investors of any third country.

ARTICLE V
Repatriation of Investment
Both parties shall seek and obtain the approval of their respec-
tive authorities to the effect that individuals or companies of
either party shall have the right of free transfer of their cap-
ital and of the returns hom it, subject to the right of each pa-
rty in exceptional financial or economic circumstances to exerc-
ise equitably and in good faith powers conferred by its existing
laws and regulations when this Agreement enters into force.

ARTICLE VI
Expropriation
1 Both parties shall seek and othain the approval of their resp-
ective authorities to the effect that investments of individu-
als or companies of either party shall not be nationalized, e-
xpropriated or subjected to measures having effect equivalent
to nationalization or expropriation (hereinafter referred to
as " expropriation") in the territory of the other party exce-
pt for a public purpose related to the internal needs of the
expropriating party and against compensation. Such compensati-
on shall amount to the market value of the investment expropr-
iated immediately before the expropriation or impending expro-
priation became public knowledge, shall be made without undue
delay, shall be effectively realizable and shall be freely tr-
ansferable. Appropriate provision shall be made for the deter-
mination and payment of such compensation. The legality of any
expropriation and the amount and method of payment of compens-
ation shall be subject to review by due process of law.
2 Where a party expropriates the assets of a company which is i-
ncorporated or constituted under the law in force in any part
of its territory, and in which individuals or companies of the
other party own shares, it shall ensure that the provisions of
paragraph (1) of this Article are applied to the extent neces-
sary to guarantee the compensation provided for in that parag-
raph to the owners of these shares.

ARTICLE VII
Compensation for Losses
Both parties shall seek and obtain the approval of their respec-
tive authorities to the effect that individuals or companies of
either party who suffer losses in relation to approved investme-
nts owing to revolts, riots, armed conflicts or revolutions, in
the territory of the other party, shall be accorded by this par-
ty, treatment no less favourable than that accorded to the indi-
viduals or companies of the latter party or of any third State,
as regards restitutions, indemnifications, compensation or other
similar valuable consideration. Such payments shall be freely t-
ransferable.

ARTICLE VIII
Subrogation
1 Both parties shall seek and obtain the approval of their resp-
ective authorities to the effect that if either party makes p-
ayment under an indemnity it has given in respect of an inves-
tment or any part thereof in the territory of the other party
the latter party shall recognize :
a the assignment, whether under law or pursuant to a legal tr-
ansaction of any right or claim from the party indemnified
to the former party (or its designated agency) and ;
b that the former party (or its designated agency) is entitled
by virtue of subrogation to exercise the rights and enforce
the claims of such a party.
The former party (or its designated agency) shall according-
ly if it so desires be entitled to assert any such right or
claim to the same extent as its predecessor in title either
before a court or tribunal in the territory of the latter p-
arty or in any other circumstances.
2 Both parties shall seek and obtain the approval of their resp-
ective authorities to the effect that if the former party acq-
uires amounts in the lawful currency of the other party or cr-
edits thereof by assignment under the terms of an indemnity,
the former party shall be accorded in respect thereof treatme-
nt not less favourable than that accorded to the funds of ind-
ividuals or companies of the latter party or of any third Sta-
te deriving from investment activities similar to those in wh-
ich the party indemnified was engaged. Such amounts and credi-
ts shall be freely available to the former party concerned for
the purpose of meeting its expenditure in the territory of the
other party.

ARTICLE IX
Settlement of Disputes between the Parties
Any dispute arising between the parties concerning the interpre-
tation or application of this Agreement shall, as far as possib-
le, be settled amicably through consultations.

ARTICLE X
Disputes Relating to the Investment
Any dispute between the investor and authority of one of the pa-
rties shall, as far as possible, be settled amicably through ne-
gotiations between the parties to the dispute, and failing which
shall be referred to arbitration on such terms and conditions as
the disputing parties may agree.

ARTICLE XI
Entry into Force Duration and Termination
1 This Agreement shall enter into force on the date of signature
. It shall remain in force for a period of ten years and shall
continue in force thereafter unless, after the expiry of the
initial period of nine years, either party notifies in writing
the other party of its intention to terminate this Agreement.
The notice of termination shall become effective one year aft-
er it has been received by the other party.
2 In respect of investments made prior to the date when the not-
ice of termination of this Agreement becomes effective, the p-
rovisions of this Agreement shall remain in force for a furth-
er period of ten years from that date.
DONE in Taipei in duplicate, this nineteenth day of December,
l99O, in English language.

FOR THE TAIPEI ECONOMIC AND FOR THE INDONESIAN CHAMBER OF
TRADE OFFICE 'COMMERCE TO TAIPEI
[Signed] [Signed]
TZEN, WEN-HUA ALINOERRASJID CHAIRMAN
REPRESENTATIVE