TRADE AGREEMENT

BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE DEMOCRATIC REPUBLIC OF
TIMOR-LESTE

The Government of the Republic of Indonesia and the Government of the Democratic
Republic of Timor-Leste, hereinafter referred to as ''the Parties"

Recalling the Joint Comm~mique Concerning Diplomatic Relations Between the

Republic of Indonesia ~nd the Democratic Repuhiic of Tir:.1c.r-Lestt: signed in Jakarta,
2 July 2002;

Desiring to develop and to strengthen economic and trnde relations between the
Parties in the perspective of mutua: benefit, suppor. and respect;

Pursuant to the prevailing laws and regulations of the Pari:ics;

Have agreed as follows:

ARTlCLE 1

Tlte Parties shall, within the framework of their respective ~aws a1~d regulat:ons, takr
al! appropriate measures to prnmt'te, fdc!litc.te, strengtLcn. and coa~.olici1-1te trade and
trade related matt~rs between the ?ar.i~s.

ARTICLE 2

(1) The Parties shall g~ant each other the Most Favoure:i Nation trcatm0!1t wit~1 in
the limits of laws an::! regulations in force in tlteic rcspe.;t:vc countries in respc.;t
to customs duti~s, and other charges imp0sed •Jn importt::d goods ?.S well a->
customs fcwr1ialitk,s.

(2) This Agreement shall not apply to any taxat;on measures. The. 1,;{emption and
relief from ta-xes, if any, shall b~_in acc01<lan~c with th~ applic<lble tax laws and
regulations. Further, the arrangement of taxes 111altcrs shall he drawn up i11
separated agreement.

ARTlCLE3

The provision of Articie 2 ab·Jve ~hall 110t preclude the mainternm.:-e of the further
cor.sideration by the Parties pf:
a. Privileges or special tre;~tir.ent \·\'hich art': or may be granted by the Parties to
facilitate cross border trnde iP atcor<lam·e wir.n prcvaiting law.:; and regulations
in the r~:;µective countries;
 b. Advantages or preferences accorded by the Parties resulting from any
association for expansion of trade on regional and multilat~ral basis to which it
is or may become a member.

ARTICLE4

All payments for goods and services between the Parties shall be made in freely
convertible currencies, in accordance with the fcreign excha11ge regulations in force in
each country.

ARTICLF.5

In order to develop further trade, the Parties shall facilitat~ each other in trade fairs
and cxhibiticns t0 be held in either country, on terms to be agreed between the Parties.

The exemptions and relief from customs duties ard other similar charges of articles
and samples intended for fairs and exhibition, as weli as their sale and dispositions,
shall be subject to the !av. s and regi.J lations of the cou1;try where such fairs and
e>.hibitions are held.

ARTICLE 6

E:ich Patty shalJ protect, within its territory, the intellectual p1opeity rights of the
other Party in accordance \.\ ith the p!'evailing laws nnd reguhtions in forl·~ in their
respect:ve countries;

Both Parties shall take steps to avoid trade in c0unterfeit gooJs which results to a
violation of intellectual property rights protection.

ARTICLR 7

This, \greement shall not prevent either Puty fror1 ap!>lying prohibition or restriction
of any form directed to the protection of an essential security interest and public
health; the protection of diseases and pests of animal or plants; and/or the preservation
of national measures of artistic, hiscorical or archeological vain<.:.

ARTICLES

The Parties shall desig11ate their re~pective ag~ncies to coordinate and excci.:te this
Agreement a!i well a~ to oversee ar:d ensure the smooth implementation of th~
Agreement:
a. for the Government of the Republic of lndor.esia is the Ministry of Trade
b. for the Government of th~ Dem ocratic Republic of Timor-Leste is the Ministry
ofTouri.:;m, Comm~rce and Indust.'y, or its successcr Agencies.
 ARTICLE 9

Any dispute arising out of the": interpretation er implementation of this Agreement

shall be settled amicably by consultation or negotiation between the Parties.

ARTICLE 10

(1) This Agreement shall enter into for1.:e on the l1nte of the receipt of last
notifications informing the other party of :.he completioll of its internal
procedures for the entry into force ~f this Agreement.
(2) This Agreem~nt shall be valid for a period of 3 (thre~) years and shall be
automatically extended for every succe~sive period of 3 (three) years unl,ess
terminated by either Party by givir.g a written notificntion 6 (six) months prior
its expiry. ·
(3) The Par1ies may request in wri~ing a revision or amendment of all or part of this
Agreement. Any revi!jion or amendment which has been &gre-cd on to by the
Parties shall come hlto effect on the date of the receip~ of the last notification by
which the Parties shall nvtit)' each other through diplomatic channels thctt their
legal requirements for the entry into force of the Agreement have been fulfilled.
(4) The termination of this Agree:nent shall not affect the validity and duration of
:my arrangements and projects maJe under this t\gree1nent until the completion
of such arrangements and prqj~ct5.

IN WITNESS WHEREOF, the under')igned, duly authorized thtreto by their

respective Governments have sign\;d this Agreement.

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English. Both texts are being equally authentic.

FOR THR GOVERNMENf FOR THE GOVERNMENT OF

OF THE RF.P UBLIC OF THE DEMOCRATIC REPUB .JC
INDONESIA Olf TIMOR-LESTE

Signed Signed

MARI'ELKA PANGESTU 9JL DA COSTAf\. N.

ALVES
MINISTER OF TRADE MINISTER OF TOURISM,
COMlVIERCE AND lNDUSTRY