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MEMORANDUM OF UNDERSTANDING BETWEEN THE AGENCY FOR MARINE AND FISHERIES RESEARCH THE MINISTRY OF MARINE AFFAIRS AND FISHERIES OF THE REPUBLIC OF INDONESIA AND THE OVERSEAS FISHERY COOPERATION FOUNDATION OF JAPAN CONCERNING THE JAPAN-INDONESIJl. DEEP SEA FISHERIES RESOURCE~ JOINT EXPLORATION PROJECT The Agency for Marine and Fisheries Research, the Ministry of Marine Affairs and Fisheries of the Republic of Indonesia (hereinafter referred to as "AMFR") and the Overseas Fishery Cooperation Foundation of Japan (hereinafter referred to as "OFCF") in which both of them are hereinafter referred to as "the Parties". Bearing in mind the mutual interest in ensuring the sustainable management and conservation of living marine resources in the Republic of Indonesia·, Considering the existing common desire for friendly cooperation and enhanced relations between the Parties; Realizing that fisheries resources exploration cooperation would lead to common benefits for the Parties: Aiming to promote cooperation of the Parties In the field of deep sea fisheries resources exploration on the basis of equality and mutual benefit; Pursuant to the prevailing laws and regulation In Indonesia, as well as procedures and policies of the Government of the Republic of Indonesia concerning internationa I technical cooperation; • .,; r---·--, • , • • .-! • 'II'\'.• ' --- '"-·---··-- ;,~ :r·o~ . t ~;.•1 .. v_-. :I ''.:' ,_7,.-;. ,~'.-.~!'J';l\•,,-.; ·..'IT~~IJ,""~ll'ififf \~.~,Tj·\j\~·~:r;~"li::i':r~':'·,'r.'·'.J~'·".~'"li": '·~.-. '"'.·~·-·,-~~";"'." ....... ~•: ·•·•.7:·--- --·---··-------- '' '' ' ,.. ·- ...~, ···•··. ~ ......•·•·•...·-:-.. : ·~ Have Agreed As Follows: Article 1 Definition · For the purpose of this Memorandum of Understanding: a. "MoU" means Memorandum of Understanding of the project entitled "The Japan-Indonesia Deep Sea Fisheries Resources Joint Exploration Project". b. "Project" means The Japan-Indonesia Deep Sea Fisheries Resources Joint Exploration Project. c. "Research Vessel" means scientific research vessel "Baruna Jaya IV" which will be used to carry out the Project. d. "OFCF Expert" means the expert to be appointed and dispatched by OFCF to implement the Project in Indonesia. e. "AMFR Researcher and Scientist" means researcher and scientist to be appointed and dispatched by AMFR to implement the Project. f. "RIMF" means Research Institute for Marine Fisheries of AMFR. g. "Personnel" means persons to be appointed by each Party and involved to implement the Project in Indonesia. Article 2 Objective of the Project The objective of the Project is to research and develop deep sea fisheries resources in the waters west of 115 degrees east on the Indian Ocean side in the Indonesian Exclusive Economic Zone. Article . 3 Implementation of the Project The Project shall be carried out according to t11e Research Implementation Plan / ! I . I ! which is set out in Annex which constitutes as an integral part of this MoU. •,i\ Article 4 Research Vessel The details provision relating to the use of the Research Vessel shall be set forth in a separate Arrangement to be concluded.by the Parties. Article 5 Responsibility of OFCF OFCF shall, at its own expense, as the need arises, for the implementation of the Project: (1) Appoint OFCF Experts and dispatch them. (2) Provii:te materials and equipment when such materials and equipment are deemed necessary for the implementation of the Project, provided that the kinds and quantities of such materials and equipment shall be determined through consultation between the Parties. (3) Bear part of the expenses necessary to operate the Research Vessel according to the Agreement on the Operation of the Research Vessel. Article 6 Responsibility of AMFR AMFR shall, at its own expense, as the need arises, for the implementation of the Project: (1) Ensure the use of the Research Vessel to cmry out the Project. (2) Bear part of the expenses necessary to operate the Research Vessel according to the Agreement on the Operation of the Research Vessel. (3) Appoint Researchers and Scientists aboard the Research Vessel. (4) Keep the Research vessel in good condition during the implementation of the Project. (5) Obtain all necessary permits, provide free of charge fishing licenses, and bear the expenses of voyage licenses. (6) Bear the cost of any levies imposed on the fuel and the lubricating oil .. ' . -·-·-··-----·--· ----------------··-·--·-··----·------····--···-··-··---··---- . necessary for operation of the Research Vessel. (7) Bear transport, storage and other expenses related to catch, which accrue after the catch is delivered to AMFR or an organization designated by AMFR. (8) Provide an office and a warehouse to store the materials and equipment described in Article 5 paragraph 2. (9) Provide a laboratory for research activities related to the Project. ( 10) Obtain the exemption from, or otherwise bear the cost of, import duties, revenue-stamp duties on imports and other levies as well as the permission of import on the Project equipment and materials as described in Article 5 paragraph 2. Obtain the exemption from, or otherwise bear the cost of, local taxes (excluding VAT) imposed on materials and equipment related to the Project procured in Indonesia. -·-- ( 11) Bear domestic expenses to transport the materials and equipment described in Article 5 paragraph 2 to a Project site in Indonesia. (12) Obtain the exemption from, or otherwise bear the cost of, the income tax and other levies on the money remitted from abroad for OFCF Experts to cover the living cost and carry out the Project. (13) Obtain a permit for OFCF Experts and their families to import into and export from Indonesia personal effects. Obtain the exemption from, or otherwise bear the cost of, revenue-stamp duties on imports and other levias imposed on those personal effects. Suc\l import and export shall comply with t~e laws of the Republic of Indonesia and normal customs proceedings shall be taken. ~ (14) Obtain permits of entry, exit and stay for OFCF Experts and their families during the implementation of the Project. (15) Fully support OFCF Experts in case of any third party claims arising from the implementation of the Project. This provision will not relieve any person from liability from a criminal act, negligence or willful misconduct. Article 7 Status of Equipment (1) Among the materials and equipment described in Article 5 paragraph 2, those procured outside the Republic of Indonesia shall become the property of I -- ·' .• , •. ··;~- .......... -~-":..-a;<· ..~~=·'. .;;.;,·;;_·,-..·:;·::;:-!::"t •:.'!o;.S<-1-!;!7.,:,,_.!~. ··~\- ·.~..... ~ .......,. ·fa:·.,, ;, ·.~:-·..,.:: ... -,-:··;·7· -· .:-...... -~-..,..:--.T"-~··- __ .. ____~·---:·- --·~.:i:::---; -----------~--------·-·---~·-·····-----·-------··-·--·-··--·---- •·: AMFR upon delivery to Government Authorities on a CiF basis at the port of Jakarta or an airport of disembarkation in Indonesia. (2) Among the materials and equipment described in Article 5 paragraph 2, those procured inside the Republic of Indonesia shall become the property of AMFR upon purchase. (3) During the implementation period of the Project, those aforementioned materials and equipment shall be used solely for the implementation of the Project. Article 8 Status of Research Data .......... ( 1) Data -gained by the researct1 shall belong equally to both Parties. (2) Based on gained data, a comprehensive report shall be jointly prepared as soon as possible. Article 9 Intellectual Properties Rights (1) Any intellectual property right brought by one of the Parties for the implementation of the activities under this MoU shall remain the property of that Party. However, that Party shall have indemnity so that the intellectual property right has not resulted from the infringement of any other third party's legitimate rights. Further, that Party shall be liable for any claim made by any third party on the ownership and legality of the use intellectual property rights, which are brought in by the aforementioned Party for. the implementatio;i of the activities under this MoU. (2) Any intellectual property right, data and information resulting from research activities conducted under this MoU shall be jointly owned by both Parties, and both Parties shall be allowed to use such property for non-commercial purposes free of royalty. Should the intellectual property right resulted from the activities under this MoU be used for commercial purpose by one Party, the . ' r::' ;-' ~ other Party shall be entitled to the royalties obtained from the exploitation of -· -·-.-:.--- -- ·--~----··:--- .. ··-- ---·-· .......... such property on the basis of the principle of equitable contribution. (3) 11 either l"arty wishes to disclose oonfldsntlal data and or information resulted from the Pro)set lo any third ~arty, Iha disclosing Party must obtain prior consent from the other Party before any di1cloaur• cen be me de. (4) Whenever either Party requires the cooperation of another party outside Indonesia and Japan to develop any commercial product based on fntellectual property covered by this MoU, this Party will give first preference of the cooperation to the other Party under this MoU, which will be waived if the other party is unable to participate in a mutually beneficial manner. (5) Whenever possible, in case any royalties are obtained from the exploitation of intellectual property right resulted from the Project, p3rt of the royalties shall be used for conservation of the relevant marine resources in Indonesia. Article 10 Limitation of Activities of.OFCF and its Personnel OFCF assures that OFCF itself and its Personnel shall not be involved in political affairs or in any ventures or activities in Indonesia outside those stated in the MoU and the Research Implementation Plan without the prior approval of the Indonesian Government through State Secretariat of the Republic of Indonesia. Article 11 Risk -r (1) i In case of emergency such as serious disturbance of public peace and order, AMFR could provide necessary assistance within its capacity that may assure the security of the life and property of OFCF Experts and their accompanied family. (2) Risks to the life and property of OFCF Experts while engaged in the Project shall be borne by OFCF. (3) Risks to the life and property of Indonesian Personnel provided by AMFR shall be borne by AMFR in accordance with the rules and regulations of Indonesia. -,-·~-~_-:-:"".- .. ;- .,- I ---·----·--·-·------····--·-···-········--···---·· -·-·······-··--·-.. --····· . Monitoring, Evaluation, and Consultation (1) OFCF and AMFR shall monitor the progress of the Project and shall evaluate the progress and results. (2) OFCF and AMFR shall consl.llt each other in respect of any matters that may arise in connection with the implementation of the MoU. Article 13 Settlement of Disputes Any disputes or differences arising out of interpretation or implementation of this MoU shall be settled amicably through consultation between the Parties. Article 14 Amendment This MoU may be amended or modified at any time, in written form by mutual consent of the Parties. Article 15 Entry into Force, Duration and Termination (1) I This MoU shall enter into force on the date of its signing. It shall be valid until March 31, 2006. (2) This MoU may be extended by mutual consent of the Parties in writing or terminated at any time by either Party by giving 3 (three) month written I i notification in advance to the other Party. ! i t 1/M L -· - . ·" ""! Article 12 (,_.l ~---- --------- .... . ; ,, ~'"'"~''"m, -· ..... '"'··· lh• ""''raigo•d, lh• have signed this MOU. '• , -· .-· . . ~ ··.;_ ;-- --_".'.""'.';":"'.--····:· ..._..., .. ~,~--·-.-·---":"' ...:::;:-~··,..,-_·_- '""~'"' ,.,,.,.:,u:~o~:~,-,,~,--1 Oona at Jakarta, Indonesia on Mey 24, 2004 In duplicate in the English language, both texts being equally authentic. For The Agency for Marine and For The Overseas Fishery Fisheries Research of Indonesia, Cooperation Foundation of Japan, (;//\ (' .. v\J ~~ < _) -- INDROYQNC SOESILO Chairman k. E. MICHIO SHiMADA President -----------------..-----------------, . Annex RESEARCH IMPLEMENTATION PLAN Pursuant to the provision of Article 3 of the MoU, the Parties have agreed a;1d decided on the following: 1. Organizations to Implement the Project (1) OFCF and RIMF shall carry out the Project. (2) For the implementation of the Project, OFCF may entrust marine researches to the Japan Deep Sea Trawlers Association. 2. Project Site and Research Area .. ~\ (1) The -base of the Research Vessel shall be Port of Jakarta. (2) The research area shall b·3 in the waters west of 115 degrees eilst on the Indian Ocean side in the Indonesian Exclusive Economic Zone. 3. OFCF Experts OFCF shall dispatch experts needed for the research in Indonesia. OFCF shall notify AMFR in advance of dispatching such Personnel. 4. AMFR Researchers and Scientists AMFR shall appoint Researchers and Scientists aboard the Research Vessel. l AMFR shall notify OFCF in advance of boarding ttiem. 5. Marine Researches Marine researches shall be conducted according to the marine research plan that lays out the research points and research methods. (1) The marine research plan shall be jointly prepared by OFCF and RIMF. (2) The fishing method shall be deep sea trawling and bottom longline if necessary. (3) When both Parties agree, other passengers shall be allowed aboard the Research Vessel, provided that they bear the expenses b)' themselves. Page 1 of 3 ~--·-------------···-· .. II -r------- ---·---------···--·--···· ------- ----··· ~ --·· ·-·--··-· 6. Scope of Research (1) Development and research of fishing grounds of deep sea fisheries resources. (2) Biolo9ical research of deep sea fisheries re$ources. (3) Oceanographic research (biology, physic, chemic&!), 7. Delivery of Catch (1) All fish and shellfish caL-1ght by research fishing (hereinafter reftirred to as "the Catch"), except those to be used as research samples, shall be delivered to AMFR or an organization designated by AMFR free of charge on wharf at a port agreed upon by botr1 Parties. (2) Wh.en the Catch is delivered, 2 (two) delivery certificates shall be prepo;red by the Project and signed by representatives of AMFR Researcher and OFCF Expert. 8. Report and Publication (1) The following three means may be used for widely disseminating the results of the research carried out under the Project: 1) Reports, 2) Seminars, and 3) International Publications. (2) Pursuant to Article 8 ot the Mou, a summary report shall be drawn up for each voyage, for the purpose of expediting the compiiation of the comprehensive report. Upon agreement by both Parties, these summ2ry reports can be accessed by the Ministry of Marine Affairs and Fisheries and related agencies of Indonesia, and the Fisheries Agency and related fishery organizations of Japan. 9. Necessary Materials and Equipment for the Project OFCF shall provide the materials and equipment listed, for the implementation of the Project. If it deemed necessary, by mutual consent, OFCF shall provide additional materials and equipment after receiving an official letter of request from AMFR. J, . j I' : ' Page 2 of J ···--·-···· :. r" . -- ·-·---··-·---···----· ----------·-------· ~--··--·-·-·-·-·-..-·--· ·-·-·-· "··--···- --- ·---·--·-----·i ii l . \ LIST OF MATERIALS AND EQUIPMENT 1. For marine researches ;.• Deep sea trawling net 2 sets Warp (22mm x 2400m) 2 unit Otter-board 1 set Net recorder 1 unit Marine scale 2 unit 2. For data col!ection Compute.r 3 sets Digital camera 1 unit --r Page3of3