Title

AGREEMENT

BETWEEN

THE GOVERNMENT OF THE REPUBLIC OF INDONESIA

AND

THE GOVERNMENT OF THE REPUBLIC OF TAJIKISTAN

CONCERNING

THE PROMOTION AND PROTECTION OF INVESTMENTS

Preamble

The Government of the Republic of Indonesia and the Government of the Republic of Tajikistan (hereinafter referred to as Contracting Parties ');

Bearing in mind the friendly and cooperative relations existing between the two countries and their peoples;

Desiring to create favorable conditions for investments by nationals of one Contracting Party in the territory of the other Contracting Party;

Recognizing that promotion and protection of investment under this Agreement will be conducive to the stimulation of individual business initiative and will increase prosperity in both States.

Have agreed as follows:

Body

Article I. Definitions

For the purpose of this Agreement:

1. The term of investments shall mean any kind of asset invested by nationals of one Contracting Party in the territory of the other Contracting Party, in conformity with laws and regulations of the latter,

, including, but not exclusively; '

a) movable and immovable property as well as other rights such as mortgages, privileges, and guarantees and any other similar rights;

b) shares, stocks, or any other forms of share holdings or interest in companies, securities, issued by national of any Contracting Party and returns retained for the purpose of re-investment;

c) claims to money or to any performance having a financial value;

d) intellectual property rights, technical processes, goodwill and know-how;

e) business concessions conferred by law or under contract related to investment including concessions to search for or exploit natural recourses.

2. The term nationals shall comprise with regard to either Contracting Parties:

a) natural persons, having the nationality of that Contracting Party;

b) legal persons constituted under the law of that Contracting Party.

3. The term without delay shall be deemed to be fulfilled if a transfer is made such period as is normally required by international financial practices;

4. The term territory shall mean:

a) In respect of the Republic of Indonesia:

The territory of the Republic of Indonesia as defined in its laws.

b) In respect of the Republic of Tajikistan:

The territory of the Republic of Tajikistan as defined in its laws over which the Republic of Tajikistan has sovereignty, sovereign rights and jurisdiction in accordance with international law.

Article II. Promotion and Protection of Investments

1. Either Contracting Party shall encourage and create favorable conditions for nationals of the other Contracting Party to invest in its territory and shall admit such capital in accordance with its laws and regulations.

2. Investments of nationals of either Contracting Party shall at all times be accorded fair and equitable treatment and shall enjoy adequate protection and security in the territory of the other Contracting Party.

Article III. Most-favored-nation Provisions

1. Each Contracting Party shall ensure fair and equitable treatment of the investments of nationals of the other Contracting Party and shall not impair by unreasonable or discriminatory measures, the operation, management, maintenance, use, enjoyment or disposal there of by those nationals. Each Contracting Party shall accord to such investment adequate physical security and protection.

2. More particularly, each Contracting Party shall accord to such investments treatment which in any case shall not be less favorable than that accorded to investments of nationals of any third state.

3. If a Contracting Party has accorded special advantages to nationals of any third state by virtue of agreements establishing customs unions, economic unions, monetary unions or similar institutions, or on the basis of interim agreements leading to such unions of institutions, that Contracting Party shall not be obliged to accord such advantages to nationals of the other Contracting Party.

Article IV. Expropriation

Each Contracting Party shall not take any measures of expropriation, nationalization or any other dispossession, having effect equivalent to nationalization or expropriation against the investments of a national of the other Contracting Party except under following conditions:

a) The measures are taken for a lawful purpose of public purpose and under process of law;

b) The measures are non discriminatory;

c) The measures are accompanied by provision for the payment of prompt, adequate and effective compensation. Such compensation shall amount to the fair market value without delay before the measure of dispossession became public knowledge. Such market value shall be determined in accordance with internationally acknowledged practices and methods or, where such fair market value cannot be determined, it shall be such reasonable amount as may be mutually agreed between the Contracting Parties hereto, and it shall be freely transferable in freely usable currencies from the Contracting Party.

Article V. Compensation for Losses

1. Nationals of one Contracting Party, whose investments in the territory of the other Contracting Party suffer losses owing to war or other armed conflict, revolution, a state of national emergency, revolt insurrection or riot in the territory of the latter Contracting Party, shall be accorded by the latter Contracting Party treatment, as regards restitutions, indemnification, compensation or other settlement.

2. The treatment shall not be less favourable than that which the latter Contracting Party accords to its own national or nationals of any third state, whichever is more favourable to the nationals concerned.

Article VI. Transfer

1. Either Contracting Party shall guarantee within the scope of its laws and regulations concerning foreign investment guarantee to the nationals of the other Contracting Party, the free transfer, including through not exclusively:

a) profits, interests, dividends and other current income;

b) funds necessary

(i) for the acquisition of raw or auxiliary materials, semi fabricated or finished product, or

(ii) to replace capital assets in order to safeguard the continuity of an investment;

c) additional funds necessary for the development of an investment;

d) funds in repayment of loans;

e) royalties or fees,

0 earnings of natural persons;

g) the proceed of sale or liquidation of investment;

h) compensation for losses,

i) compensation for expropriation.

2. Such transfer shall be made prevailing rate of exchange on the date of transfer with respect to current transaction in the currency to be transferred.

Article VII. Subrogation

If the investments of the one Contracting Party are insured against non-commercial risks under a system established by law, any subrogation of the insurer or re-insurer to the rights of the said national pursuant to the terms of such insurance shall be recognized by the other Contracting Party, provided, however, that the insurer or the re-insurer shall not be entitled to exercise any rights other than the rights which the national would have been entitled to exercise.

Article VIII. Settlement of Dispute between Nationals and the Contracting Party

1. Any dispute between Contracting Party and a national of the other Contracting Party, concerning an investment of the latter in the territory the former, be settled amicably through consultations and negotiations.

2. If such a dispute cannot be settled within a period of six months from the date of a written notification either party requested amicable settlement, the dispute shall, at the request of the national concerned, be submitted either to the juridical procedures provided by the Contracting Party concerned or to international arbitration or conciliation.

3. Each Contracting Party hereby consents to submit any disputes arising between that Contracting Party and a national of the other Contracting Party concerning an investment of that national in the territory of the former Contracting Party to the International Centre for Settlement of Investment Disputes for settlements by conciliation or arbitration under the Convention by Settlement of Investment Disputes between States and nationals of other States opened for signature at Washington on 18 March 1965.

Article IX.

Settlement of Disputes between the Contracting Parties concerning interpretation and application of the Agreement.

Disputes between the Contracting Parties concerning the interpretation or application of this Agreement should, if possible, be settled through diplomatic channels.

Article X. Applicability of this Agreement

This Agreement shall apply to investments by nationals of the Republic of Indonesia in the territory of the Republic of Tajikistan which have been previously granted admission in accordance with the laws of Tajikistan, and to investment by nationals of the Republic of Tajikistan in the territory of the Republic of Indonesia which have been granted admission in accordance with the Law No. 1 of 1967 concerning Foreign Investment and any law amending or replacing it.

Article XI. Application of other Provisions

If the Provisions of law of either Contracting Party or obligations under international law acting at present or established hereafter between the Contracting Parties in addition to the present Agreement contain a regulation, whether general or specific, entitling investment by nationals of the other Contracting Party to a treatment more favourable than is provided for by the present Agreement, such regulations shall to the extent that it is more favourable prevail over the present Agreement.

Article XII. Consultations and Amendment

1. Either Contracting Party may request that consultations be held on any matter concerning this Agreement. The other Contracting Party shall accord sympathetic consideration to the proposal and shall afford adequate opportunity for such consultations.

2. This Agreement may be amended at any time, if deemed necessary, by mutual consent.

Article XIII. Entry Into Force, Duration and Termination

1. The present Agreement shall enter into force three months after the date of the latest notification by any Contracting Parties of the accomplishment of its internal procedures of ratification. It shall remain in force for a period of ten years and shall continue in force thereafter for another period of ten years and so forth unless denounced in writing by either Contracting Party one year before its expiration.

2. In respect of investment made prior to the date of termination of this Agreement becomes effective, the provisions of Article I to XII shall remain in force for a further perioa of ten years from the date of

Terminaiion of pn>r;unt Agreement.

Conclusion

IN WITNESS WHEREOF the understanding duly euthonzed thereto by their respective Governments, have signed this Agreement

DONF. in duplicate t Jakarta on 2G;h of October in the year Two thousand and three in the Indonesian. Tajik and English languages. All texts aie equally authentic. If thme is any divergence concerning interpretation, the English text shall prevail.

For the Government of for the government of

THE REPUBLIC OF INDONESIA THF REPUBLIC OF TAJIKISTAN

Signed

Signed

C2

OK. N, HAf -SAN WIRAJUDA

Minister for Foreign Affairs

KHAKI M SOLIEV

Minister of Economy and Trade