5. Subject to the requirement that taxation measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on trade and investment, nothing in this Agreement shall be construed to prevent a Party from adopting, maintaining or enforcing any measure which:
a. aims at ensuring the equitable or effective (3) imposition or collection of direct taxes;
b. aims at preventing the avoidance or evasion of taxes pursuant to the provision of any tax convention or domestic fiscal legislation; or
c. distinguishes between taxpayers, who are not in the same situation, in particular with regard to their place of residence or with regard to the place where their capital is invested.
Article 5.6. Temporary Safeguard Measures
In exceptional circumstances of serious difficulties for the operation of the economic and monetary policies, in the case of Indonesia, or for the economic and monetary union, in the case of the European Union, or threat thereof, Indonesia or the European Union respectively may adopt or maintain safeguard measures with regard to capital movements, payments or transfers for a period not exceeding 6 months. (4) Such measures shall be strictly necessary to address such difficulties.
Article 5.7. Restrictions In Case of Balance of Payments and External Financial Difficulties
1. Where a Party experiences serious balance-of-payments or external financial difficulties, or threat thereof, it may adopt or maintain restrictive measures with regard to capital movements, payments or transfers (5).
2. The measures referred to in paragraph 1:
(a) shall be consistent with the Articles of the Agreement of the International Monetary Fund, as applicable;
(b) shall not exceed those necessary to deal with the circumstances described in paragraph 1;
(c) shall be temporary and shall be phased out progressively as the situation specified in paragraph 1 improves;
(d) shall avoid unnecessary damage to the commercial, economic and financial interests of the other Party; and
(e) shall not treat the other Party less favourably than a third country in like situations.
3. In the case of trade in goods, each Party may adopt restrictive measures in order to safeguard its external financial position or balance-of-payments. These measures shall be in accordance with the General Agreement on Trade and Tariffs (GATT) and the Understanding on the Balance of Payments provisions of the GATT 1994.
4. In the case of trade in services, each Party may adopt restrictive measures in order to safeguard its external financial position or balance of payments. These measures shall be in accordance with Article XII of the General Agreement on Trade in Services (GATS).
5. A Party maintaining or having adopted measures referred to in paragraphs 1 and 2 shall promptly notify them to the other Party.
6. Where restrictions are adopted or maintained under this Article, consultations shall be held promptly in the Committee unless consultations are held in other fora. The consultations shall assess the balance-of-payments or external financial difficulty that led to the respective measures, taking into account, inter alia, such factors as:
(a) the nature and extent of the difficulties;
(b) the external economic and trading environment; and
(c) alternative corrective measures which may be available.
The consultations shall address the compliance of any restrictive measures with paragraphs 1 and 2. All relevant findings of statistical or factual nature presented by the IMF, where available, shall be accepted and conclusions shall take into account the assessment by the IMF of the balance-of-payments and the external financial situation of the Party concerned.
Article 5.8. Application of Laws and Regulations Relating to Capital Movements, Payments or transfers
The provisions of Article 2.8 (Transfers) shall not preclude a Party from applying its laws and regulations relating to:
(a) bankruptcy, insolvency, the protection of the rights of creditors, bank recovery and resolution, or the prudential supervision of financial institutions;
(b) issuing, trading or dealing in financial instruments;
(c) financial reporting or record keeping of capital movements, payments or transfers where necessary to assist law enforcement or financial regulatory authorities;
(d) criminal or penal offenses, deceptive or fraudulent practices;
(e) ensuring compliance with orders or judgments in judicial and administrative proceedings; or
(f) social security, public retirement or compulsory savings schemes.
Such laws and regulations shall not be applied in an arbitrary or discriminatory manner, or in a manner which otherwise constitutes a disguised restriction on capital movements, payments, or transfers.
Article 5.9. Disclosure of Information
1. Nothing in this Agreement shall be construed to require a Party to make available confidential information, the disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of particular enterprises, public or private except where a panel requires such confidential information in dispute settlement proceedings under Chapter 4 (Dispute Settlement between the Parties). In such cases, the panel shall ensure that confidentiality is fully protected.
2. When a Party submits information to the Committee which is considered as confidential under its laws and regulations, the other Party shall treat that information as confidential, unless the submitting Party agrees otherwise.
Chapter 6. INSTITUTIONAL AND FINAL PROVISIONS
Section A. INSTITUTIONAL PROVISIONS
Article 6.1. Committee
1. The Parties hereby establish a Committee comprising representatives of the European Union and Indonesia.
2. The Committee shall meet no later than one year after the entry into force of the Agreement. Thereafter, the Committee shall meet on an annual basis, unless otherwise agreed by the co-chairs of the Committee.
3. The meetings of the Committee shall take place in the European Union or Indonesia alternately, unless otherwise agreed. The Committee may meet in person or by other appropriate means of communication, as agreed by the co-chairs of the Committee.
4. The Committee shall be co-chaired by a representative of Indonesia at Ministerial level and the Member of the European Commission responsible for Trade, or their respective designees.
Article 6.2. Functions of the Committee
In order to ensure that this Agreement operates properly and effectively, the Committee shall:
(a) consider ways to further enhance investment relations between the Parties;
(b) supervise and facilitate the implementation and application of this Agreement, and promote its general aims;
(c) without prejudice to Chapter 4 (Dispute Settlement between the Parties) seek appropriate ways and methods of preventing problems that may arise in areas covered by this Agreement, or of resolving disputes that may arise regarding the interpretation or application of this Agreement;
(d) consider any other matter of interest relating to an area covered by this Agreement; and
(e) adopt at its first meeting its own rules of procedure.
2. In order to ensure that this Agreement operates properly and effectively, the Committee may:
(a) recommend to the Parties any amendments to this Agreement
(b) adopt decisions to amend this Agreement in accordance with Article 6.3, in the following cases:
(i) the Rules of Procedure in Annex 4-A, where appropriate;
(ii) the Code of Conduct in Annex 4-B;
(c) adopt, through decisions, binding interpretations of the provisions of this Agreement, in accordance with Article 6.3. Such interpretations shall enter into force upon exchange of notification in accordance with the Parties' respective procedures. They shall be binding on the Parties and all bodies established under this Agreement, including the panel referred to under Chapter 4 (Dispute Settlement between the Parties);
(d) adopt any decisions as envisaged in this Agreement or make recommendations as provided for in Article 6.3 (Decisions and recommendations of the Committee); and
(e) communicate on matters related to this Agreement with all interested parties including business, trade unions and civil society organizations.
3. The Committee shall exchange views on topics concerning the implementation of this Agreement with civil society representatives participating in a Civil Society Forum. The Committee shall agree at its first meeting on the operational guidelines for the conduct of such dialogue forum. The Civil Society Forum shall meet in conjunction with the meeting of the Committee, unless otherwise agreed by the Parties. The Parties shall facilitate the organisation of the Civil Society Forum and may also facilitate participation by virtual means. The Civil Society Forum includes members of the Domestic Advisory Groups referred to in Article 6.6 (Domestic Advisory Groups) and is open to other relevant independent civil society organisations established in the territories of the Parties. Each Party shall promote a balanced representation of interest groups in economics, social and environmental matters with fields of activity and expertise directly relating to the scope of this Agreement, as appropriate. The Parties may, jointly or individually, publish any formal statements made at the Civil Society Forum.
4. The Committee shall regularly report to the Joint Committee established under the Framework Agreement on Comprehensive Partnership and Cooperation between the European Community and its Member States, on the one part, and the Republic of Indonesia, on the other part on its activities, at the regular meetings of the Joint Committee. Such information could be provided also by designated representatives or in writing.
Article 6.3. Decisions and Recommendations of the Committee
1. The Committee shall, for the purpose of attaining the objectives of this Agreement, have the power to take decisions as provided for in this Agreement. The decisions taken shall be binding upon the Parties and enter into force after the notification in writing of the completion of their respective applicable legal requirements and procedures. The Parties shall take all measures necessary to implement the decisions taken by the Committee.
2. For the purposes of attaining the objectives of this Agreement, the Committee may make appropriate recommendations in respect of all matters covered by this Agreement.
3. The Committee shall take its decisions and make its recommendations by consensus.
Article 6.4. Contact Points
1. Each Party shall designate an "IPA contact point" to facilitate communications between the Parties on matters pertaining to this Agreement and shall notify it to the other Party within 30 days following the entry into force of this Agreement.
2. The designated IPA contact points shall:
(a) unless otherwise provided for in this Agreement, or otherwise agreed by the co-chairs of the Committee, deliver and receive all notifications and information to be provided between the Parties pursuant to this Agreement;
(b) facilitate communications between the Parties on any matter covered by this Agreement, as well as on its implementation; and
(c) coordinate preparations for the meetings of the Committee.
Article 6.5. Domestic Advisory Groups
1. Each Party shall create a new or designate an existing domestic advisory group within a year from the entry into force of this Agreement, with the task of providing advice, including on its own initiative, on matters concerning the implementation of the Agreement. The composition of each domestic advisory group shall ensure a balanced representation of independent civil society organisations (1), based on a multi-stakeholder approach which includes relevant interest groups in economics, social and environmental matters.
2. Each Party shall convene a meeting with its domestic advisory group at least once a year and consider the advice or recommendations that the group may provide. Each Party may decide on the follow-up to the advice or recommendations by its domestic advisory group. Domestic advisory groups may be convened in different configurations to discuss the implementation of different Chapters and provisions of this Agreement.
3. The Parties shall promote public awareness of their respective domestic advisory groups and encourage interaction between them. To this end, each Party shall make publicly available relevant information on the composition of its advisory group and shall exchange information with the other Party on its own domestic advisory group contact point(s).
Section B. FINAL PROVISIONS
Article 6.6. Amendments
1. The Parties may agree, in writing, to amend this Agreement.
2. Amendments shall enter into force on the first day of the second month, or on such later date as may be agreed by the Parties, following the date on which the Parties exchange written notifications certifying that they have completed their respective applicable legal requirements for entry into force of such amendments.
3. Notwithstanding paragraph 1, the Committee may, in accordance with the respective applicable legal requirements of the Parties, amend this Agreement, where provided for in sub-paragraph 2(d) of Article 6.2 (Functions of the Committee).
Article 6.7. Entry Into Force
1. The Parties shall approve this Agreement in accordance with their respective applicable legal requirements and procedures.
2. This Agreement shall enter into force on the first day of the second month following the date on which the Parties exchange written notifications certifying that they have completed their respective applicable legal requirements for the entry into force of this Agreement. The Parties may agree on another date of entry into force of this Agreement.
3. Notifications referred to in paragraph 2 shall be sent to the Secretary General of the Council of the European Union and to the Ministry of Foreign Affairs of Indonesia, or their respective successors.
Article 6.8. Relation with other Agreements
1. Unless otherwise provided for in this Agreement, the existing agreements between the Member States of the Union and/or the European Community and/or the Union and Indonesia are not superseded or terminated by this Agreement.
2. This Agreement shall be an integral part of the overall bilateral relations as governed by the Framework Agreement on Comprehensive Partnership and Cooperation between the European Community and its Member States, on the one part, and the Republic of Indonesia, on the other part and shall form part of the common institutional framework.
3. The Parties affirm their rights and obligations with respect to each other under the WTO Agreement. For greater certainty, nothing in this Agreement requires a Party to act in a manner inconsistent with its obligations under the WTO Agreement.
4. In the event of any inconsistency between this Agreement and any agreement other than the WTO Agreement to which both Parties are a party, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution.
5. If any of the provisions of the WTO Agreement incorporated into this Agreement is amended, the Parties shall consult with a view to finding a mutually satisfactory solution, where necessary.
Article 6.9. Work Programme
1. The Parties shall, on the basis of the progress already made, and without prejudice to their respective positions, restart negotiations on the settlement of investment disputes between a Party and an investor of the other Party concerning breaches of Chapter 2 (Investment Protection) of this Agreement, and for an interpretative guidance on taxation measures and expropriation, no later than on the date of entry into force of this Agreement.
2. In such negotiations the Parties shall work towards a state-of-the-art dispute settlement mechanism, considering, inter alia, progress on reform of investment dispute settlement in relevant international fora. The Parties share the understanding that any parts of the dispute settlement mechanism on which they already reached an agreement in the negotiations towards this Agreement will be part of such work.
3. The Parties shall conclude the negotiations within three years after the date of the entry into force of this Agreement.
Article 6.10. Termination
1. This Agreement shall remain in force unless terminated pursuant to paragraph 2.
2. A Party may terminate this Agreement by written notice to the other Party. This notice shall be sent to the Secretary General of the Council of the European Union and to the Ministry of Foreign Affairs of Indonesia, or their respective successors. This termination shall take effect six months after the receipt of that notice, unless the Parties agree otherwise.
3. In the event that this Agreement is terminated pursuant to paragraph 2, this Agreement shall continue to be effective for a further period of ten years from the date of termination, with respect to investments made before the date of termination of the present Agreement.
Article 6.11. Fulfilment of Obligations
1. Each Party is fully responsible for the observance of all provisions of this Agreement.
2. Each Party shall take all general or specific measures required to fulfil their obligations under this Agreement. Each Party shall ensure within its territory the observance of all obligations and commitments under this Agreement by its respective central, regional and local governments and authorities, and by non-governmental bodies in the exercise of governmental powers delegated to them.
Article 6.12. No Direct Effect
1. Nothing in this Agreement shall be construed as conferring rights or imposing obligations on persons, other than those created between the Parties under public international law, nor as permitting this Agreement to be directly invoked in the domestic legal systems of the Parties.
2. A Party shall not expressly provide for a right of action under its domestic law against the other Party on the ground that a measure of the other Party is inconsistent with this Agreement.
Article 6.13. Territorial Application
1. This Agreement shall apply:
(a) with respect to the Union, to the territories in which the Treaty on European Union and the Treaty on the Functioning of the European Union are applied and under the conditions laid down in those Treaties; and
(b) with respect to Indonesia, to its territory, which is defined as the land territories, internal waters, archipelagic waters, territorial sea, including seabed and subsoil thereof, and airspace over such territories and waters, as well as continental shelf and exclusive economic zone, over which Indonesia has sovereignty, sovereign rights or jurisdiction as defined in its laws and in accordance with international law, including the United Nations Convention on the Law of the Sea, done at Montego Bay, December 10, 1982.
References to "territory" in this Agreement shall be understood in this sense, except as otherwise expressly provided.
2. As regards those provisions concerning the tariff treatment of goods, including rules of origin and origin procedures, this Agreement shall also apply with respect to the Union to those areas of the Union customs territory, as defined by Article 4 of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code, not covered by subparagraph 1 (a).
Article 6.14. Annexes, Appendices and Footnotes
The [Annexes, Appendices, Declarations, Joint Declarations, Protocols and Understandings] to this Agreement constitute integral parts thereof.
Article 6.15. Future Accessions to the European Union
1. The Union shall notify Indonesia of any request made by a country to accede to the Union.
2. During the negotiations between the Union and the country seeking accession, the Union should provide, upon request of Indonesia, and to the extent possible, any relevant information regarding any matter covered by this Agreement.
3. For greater certainty, this Agreement shall apply to trade and investment between the new Member State of the Union and Indonesia from the date of accession of that new Member State to the Union.
4. In order to facilitate the implementation of paragraph 3, the Committee shall examine any effects of the accession on this Agreement and decide on the necessary amendments to this Agreement, and on any necessary adjustment or transition measures, sufficiently in advance of the date of accession of the new Member State to the Union. Such decision shall take effect on the date of accession of the new Member State to the Union.
5. The Union shall notify Indonesia of the entry into force of any accession to the Union.
Article 6.16. Authentic Texts
This Agreement is drawn in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Indonesian, Irish, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each version being equally authentic.