The Taipei Economic and Trade Office and the Indonesian Chamber
of Commerce in Taipei hereinafter referred to as the parties ;
Desiring to intensify and facilitate cooperation for the creati-
on of a favourable investment condition in order to allow indiv-
iduals and companies of one country to operate in the other cou-
ntry ;
Recognizing the benefits to be gained by the parties from closer
economic co-operation for the enhancement of productivity for i-
ndustries in their respective countries in order to promote the
competitiveness of industries in both countries; Being duly aut-
horized, Have agreed as follows :
1.The parties will continue their efforts to expand investment
opportunities and to encourage co - operation among the priva-
te sectors of both sides to develop industries in their respe-
ctive countries in the form of Joint Ventures ;
2.In accordance with their respective laws and regulations, the
parties will continue to cooperate in the protection of inves-
tment made by individuals and companies of one country to the
other;
3.Neither party shall treat the Joint Ventures under this Memor-
andum of Understanding less favourably than that it accords to
investment or returns of individuals or companies of any third
country ;
4.In accordance with its laws and regulations, each party will
respect the rights of the other party of free transfer of its
capital and of the returns therefrom ;
5.The parties will continue to exchange information and experie-
nce in the field of investment and will consult each other pe-
riodically so as to promote investments of their respective p-
rivate sectors, both parties agreed to study the possibility
of concluding an agreement on investment guarantee.
6.The parties will continue to cooperate in resolving tax prob-
lems arising from the investments under this Memo- randum of
Understanding. They will therefore study the possibility of c-
oncluding an agreement on the avoidance of double taxation ;
7.This Memorandum of Understanding will remain in force for a p-
eriod of three years from the date of its entry into force. If
neither party gives written notice to the other at least six
months prior to the expiration of this period of its desire to
terminate this agreement, this Memorandum of Understanding wi-
ll be automatically extended for a period of one year and will
thereafter be extended in the same manner ;
8.Amendments to this Memorandum of Understanding may be made at
any time by an exchange of letters between the parties ;
9.This Memorandum of Understanding will enter into force on the
date of its signing.
DONE in, in duplicate, this nin[e]th day of February, 1990.
[Signed]
Tzen, Wen - hua
Representative of the Taipei Economic and Trade Office
[Signed]
Tamara
Chairman of the Indonesian Chamber of Commerce to Taipei