AGREED MINUTES OF THE FIRST MEETING OF THE PHILIPPINES-INDONESIA JOINT COMMISSION FOR BILATERAL COOPERATION Manila, 6-8 September 1995
INTRODUCTION
1. In accordance with the Memorandum of Understanding on the Establishment of a Joint Commission for Bilateral Cooperation between the Philippines and Indonesia, the First Meeting of the Joint Commission was held in Manila from 6 to 8 September 1995.
2. The Philippine delegation was led by H.E. Domingo L. Siazon, Jr., Secretary of Foreign Affairs. The Indonesian delegation was led by H.E. Ali Alatas, Minister for Foreign Affairs. The lists of both delegations appear as ANNEXES A and B.
3. The Leaders of both delegations expressed the hope that this historic Meeting would lead to enhanced relations between the two countries, as reflected in their opening statements, the texts of which appear as ANNEXES C and D.
4. The Meeting adopted the Agenda, which appears as ANNEX E.
BUSINESS ARRANGEMENTS
5. The Meeting agreed to form three (3) Working Groups on Consular Matters, on Trade and Investments, and on Agriculture and Forestry. The other agenda items were discussed in plenary.
CONCRETE MEASURES TO PROMOTE BILATERAL RELATIONS
6. The Meeting discussed concrete measures to promote and further enhance bilateral relations between the two countries.
PROBLEMS OF FISHERMEN
7. The Meeting noted that while many cases had been settled properly by the RP-RI Border Committee, some processes might be improved particularly in the following areas:
a. establishing measures to lessen instances of intrusions of Filipino fishermen into Indonesian waters;
b. dissemination of information on Indonesian laws and regulations concerning the matter;
c. immediate notification by either country to the relevant authorities of the other country upon arrest or detention of nationals of that other country;
d. standardization of procedures in the identification of persons to be charged and the period of investigation/detention;
e. maximum expediency in the investigation of cases of detained fishermen, with the objective of bringing the case to trial within the shortest possible time;
f. identification of responsibilities of each country regarding expenses related to the care and maintenance of detained fishermen; and
g. formulation of common criteria for the identification of traditional fishermen.
The Meeting adopted the following procedures:
a. In the event of the arrest/apprehension of nationals of Indonesia or the Philippines in the other’s territory, the apprehending authorities, through their respective chains of command, shall inform the other party (Philippine Embassy in Jakarta and/or the Consulate General of the Philippines in Manado, and the Indonesian Embassy in Manila and/or Indonesian Consulate-General in Davao) within 24 hours of such arrest. In cases where there is a lack of communication facilities, the report must be made within 24 hours upon reaching the nearest base, or other offices open during holidays.
b. Investigation of the cases of detained fishermen shall be conducted with the maximum expediency, with the objective of bringing the case to trial within the shortest time possible allowed under each party’s legal process.
c. In accordance with international practice and existing laws of each country, each party shall assume responsibility for the subsistence and medical needs of its nationals apprehended by the other party as soon as the national detained has been released from detention and eligible for repatriation.
The Meeting also agreed to pass on the aforementioned observations to the RP-RI Border Committee, for its consideration.
8. The Meeting agreed to explore the possibility of establishing joint ventures in the field of fisheries in the adjoining waters of the Philippines and Indonesia.
9. The Philippine delegation proposed that it would be beneficial to consider schemes similar to the joint venture arrangements between big Philippine fishing companies and Indonesian canneries, through arrangements that would allow Filipino small “traditional fishermen” to fish in Indonesian waters provided that a share of their catch is turned over to Indonesian authorities. The Indonesian delegation will convey the proposal to the authorities concerned.
Both sides agreed to discuss the matter at the next meeting.
MARITIME BOUNDARY DELIMITATION
10. The Meeting agreed that the “Second Senior Officials Meeting on the Delimitation of the Maritime Boundary Between the Philippines and Indonesia” would be held in Davao City early in 1996.
PRESENCE OF INDONESIANS IN SOUTHERN PHILIPPINES
11. The Meeting discussed the presence of Indonesians in Southern Philippines, some of whom have been in the Philippines for two or three generations, without proper documents.
12. The Meeting was informed that the Philippine government would conduct an information drive/survey of these individuals to determine their actual number and circumstances. This will serve as a basis for further discussion on a plan of action to be implemented for this particular group of people.
The Indonesian government through its authorities in the Philippines was requested to assist in the implementation of the survey.
The Meeting agreed to hold technical meetings to discuss the conduct of the Philippine survey.
13. The Meeting also agreed to cooperate in the formulation and implementation of a program for the repatriation of those who wish to return to Indonesia.
COOPERATION IN TRADE AND INVESTMENTS
14. The Meeting noted that two-way trade between the countries increased by approximately 15% on average from 1990 to 1994. Exports by the Philippines increased by 4.38% while Indonesia’s increased by 19.11%. In 1994, total trade amounted to US $ 437,780,000.00.
15. The Meeting agreed to implement a number of trade enhancement measures such as participation in trade fairs organized in each other’s country; the holding of in-store trade promotions to disseminate information about each other’s products for export and industrial capabilities; and the organization of high-level trade and investment missions attended by representatives from both the government and private sectors.
16. The Philippine delegation submitted for consideration two proposed measures to facilitate market access, namely:
a. a review of tariffs imposed on the following Philippine export products:
b. allow the entry of Philippine pharmaceutical products which comply with WHO standards.
On the review of tariffs, the Indonesian delegation informed the Philippine delegation that in May 1995, the government of Indonesia had taken some deregulation measures to reduce the tariffs and to eliminate/reduce import surcharges.
The Indonesian delegation will refer the proposed measures to the appropriate authorities.
17. The Meeting took note of the various trade and investment facilitation measures agreed at the Meeting of the BIMP-EAGA Working Group on the Construction Sector held in Palawan from 18 to 19 May 1995. These measures include the exchange of trade and investment missions in the construction sector, the proposed establishment of a One-Stop Action Center on Importation and Exportation, promotion of joint venture projects in the manufacture of construction materials and participation in trade fairs organized by each country’s organizations in areas within EAGA.
18. The Meeting agreed that the conclusion of a bilateral investment guarantee agreement would provide an effective springboard for investment promotion. Both sides agreed to” enjoin the concerned agencies to start negotiations and conclude an Investment Guarantee Agreement by the first half of 1996.
19. The Meeting agreed to recommend the formation of Joint Business Councils in each other’s capital which would act to foster closer linkages between the business sectors of the two countries. The Meeting recommended that they be formed at the initiative of their respective embassies.
COOPERATION IN AGRICULTURE
20. The Meeting agreed that the Framework of Bilateral Cooperation in Agriculture proposed by the Philippines to the Indonesian side should be transmitted to concerned authorities of Indonesia for more detailed consideration and approval.
21. In response to the Philippine proposal, the Indonesian delegation specifically requested for technical cooperation in coconut, sugar and banana. The Indonesian delegation further requested that implementation of agreements to be forged under the cooperation in agriculture should start in 1997.
22. The Philippine delegation responded that all on-going initiatives on cooperation in agriculture (such as those under the BIMP-EAGA) should continue to be actively pursued. The Philippine delegation proposed that, in the interim, exchanges of farmers’ visits and consultations on the details of the desired technical cooperation be encouraged and pursued.
23. Both delegations agreed to establish a Working Group in Agriculture, the first meeting of which would be held in Jakarta.
COOPERATION IN FORESTRY
24. The Meeting noted the draft Memorandum of Understanding on Forestry, which was initialled by Hon. Rolleo L. Ignacio, Undersecretary of Agriculture, for the Government of the Republic of the Philippines, and Hon. Triyono, Senior Adviser to the Minister of Forestry, for the Government of the Republic of Indonesia. The draft MOU appears as ANNEX F.
COOPERATION IN THE FIELD OF COMMUNICATIONS
AIR SERVICES
25. The Meeting agreed that there is a need for representatives of both countries to continue their air consultations on non-consensus items which were still pending in their consultations in Denpasar in August 1995.
TELECOMMUNICATIONS
26. The Indonesian delegation raised the question of the back accounts of DOMSATPHIL for leasing Palapa Satellite transponders of Indonesia.
27. The Philippine delegation informed the Indonesian delegation that PTV-4 had been up-to-date on payments, and assured the Indonesian side that the matter of DOMSATPHIL would be followed up.
28. The Philippine delegation stressed the importance of improving telecommunications in the light of the developments in the BIMP-EAGA. It stated that it envisioned becoming a center for telecommunications training and research and standards development in the ASEAN region. It also emphasized the need to develop networks and linkages to facilitate business contacts and noted that this would entail the harmonization of rules and regulations in telecommunications.
29. The Indonesian delegation noted the Philippine delegation’s statement.
COOPERATION IN THE FIELD OF SCIENCE AND TECHNOLOGY
30. The Philippine delegation expressed its interest in initially undertaking collaborative projects in the following fields:
a. Biodegradation of Manganese Dioxide Tailings;
b. Microbiological Leaching of Low Grade Copper Ores; and
c. Joint Project on Aircraft and Avionics Technology.
The Philippine delegation signified its readiness to send experts to Indonesia as early as next year to explore the possibility of developing research and development projects for collaboration and to further strengthen linkages between centers of excellence.
31. The Indonesian delegation welcomed the proposals of the Philippines and stated that they were being considered by appropriate Indonesian agencies.
32. The Philippine delegation stressed the increasing significance of cooperative undertakings in science and technology between developing countries such as the Philippines and Indonesia.
33. The Meeting agreed to review the Philippines-Indonesia Agreement on Science and Technology of 1974 with a view to further enhancing and accelerating its implementation.
COOPERATION IN THE FIELD OF ENERGY
33. With regard to the Memorandum of Understanding dated 22 June 1995 between the Ministry of Mines and Energy, Republic of Indonesia, and the Department of Energy, Republic of the Philippines, the Indonesian delegation expressed its interest in being a long-term source of coal for the coal-fired power expansion program of the Philippines.
34. The Philippine delegation expressed its interest in obtaining knowledge from Indonesian experts in coal exploration, mine technology, safety and coal preparation.
35. The Indonesian delegation noted that Philippine experts in coal technology had already visited Indonesia, and suggested that concerned government agencies be asked to oversee the cooperative efforts in this field.
36. Responding to the Indonesian delegation’s query regarding the state of Philippine technology in geo-thermal energy, the Philippine delegation stated that it was now the second leading producer of geo-thermal energy and expressed the Philippines’ willingness to undertake technical cooperation with Indonesia in this field.
COOPERATION IN THE FIELD OF EDUCATION AND CULTURE
37. The Philippine delegation noted the need to initiate more cooperative undertakings in education and culture since this is an essential factor in strengthening mutual understanding and harmony between countries.
38. The Indonesian delegation noted that cooperative programs in education and culture are already underway, such as the teaching of the Indonesian language as an elective in Philippine schools in Regions 9, 10, 11 and 12 and the commencement of a one-year Darmasiswa scholarship program for Filipino instructors to study the Indonesian language and traditional arts in Indonesia.
39. The Meeting agreed to initiate exchanges between universities and other institutions of higher learning in Mindanao and Indonesia.
COOPERATION IN THE FIELD OF TOURISM
40. The Philippine delegation presented the following proposals for cooperative undertakings in tourism:
a. work towards the finalization and signing of the draft Memorandum of Agreement on Tourism Cooperation between the Philippines and Indonesia;
b. negotiate for possible soft-loan agreements to finance infrastructure projects in Samal and Panglao islands;
c. exchange of familiarization tours;
d. exchange of training programs between the two countries to upgrade skills and expertise of workers in tourism-related industries;
e. strengthening of tourism promotion networking through the designation of tourism desk officers in both countries; and
f. adopting a mechanism for information-sharing in important tourism-related information, such as accreditation and licensing standards, tourism statistics, studies and development plans.
The Philippine delegation noted that the implementation of the proposed projects can be better facilitated with the signing of the Memorandum of Agreement on Tourism Cooperation,
41. The Indonesian delegation welcomed the proposals of the Philippine delegation and stated that it would present a counter-draft Memorandum of Agreement on Tourism Cooperation.
COOPERATION ON INFORMATION
42. The Meeting agreed that the draft Memorandum of Understanding between the Philippines and Indonesia on Cooperation in the Field of Information should be signed as soon as possible.
COOPERATION IN THE DEFENSE AND SECURITY
43. The Meeting was of the view that defense and security cooperation was one of the strongest pillars for Philippines-Indonesia bilateral relations. It was encouraged by the existing cooperation in defense and security such as in the border patrol, intelligence exchanges, student exchanges between Staff and Command Colleges, and cooperation between the two Air Forces.
In this regard, the Philippine delegation stressed the need for the defense and military establishments to undertake concrete initiatives for the strengthening and broadening of defense and security cooperation and for such cooperation to be institutionalized through a memorandum of understanding.
44. The Philippine delegation proposed five major policy thrusts that would underpin Philippines-Indonesia defense and security cooperation:
a. expand current training exchanges to include lower-level defense and military officials;
b. explore cooperative activities that will serve the security requirements of the BIMP-EAGA;
c. enhance the interoperability of military forces of the two countries;
d. exchange of defense technology, mutual assistance in logistics, and upgrading of intelligence and information exchange to the level of national security and strategic assessments; and
e. broader access of defense attaches to higher institutions of learning in the military and defense establishments.
45. The Indonesian delegation conveyed the following proposals:
a. establishment of a human resources development program for the Armed Forces of both countries; and
b. study/examination of the tasks and responsibilities of the Border Committee and the liaison officers in the light of the establishment of the Joint Commission and the BIMP-EAGA.
BRUNEI DARUSSALAM INDONESIA MALAYSIA THE PHILIPPINES –
EAST ASEAN GROWTH AREA (BIMP-EAGA)46. The Meeting noted the great strides taken by the BIMP-EAGA as seen in the successful holding of three Ministerial Meetings and the first BIMP-EAGA Tourism Fair. The Fifth Ministerial Meeting and the First Agri-Aquaculture Fair will be held in Mindanao in 1996.
47. The Meeting welcomed the results of the most recent Ministerial Meeting of BIMP-EAGA in Kuching on 15 June 1995 and expressed the hope for further positive developments resulting from the forthcoming Ministerial Meeting in Bandar Seri Begawan on 30-31 October 1995.
48. The Philippine delegation emphasized the need to strengthen linkages, particularly air linkages, between the two countries as this is one of the key building blocs in ensuring the further growth of BIMP-EAGA. It recalled that the Philippines had already lifted the travel tax for travelers from Mindanao to EAGA destinations and encouraged Indonesia to do the same since this tax remained an impediment to travel. It also reiterated the need to adopt the “Near Coastal Voyage” concept presented by the Philippines in the BIMP-EAGA Working Group on Sea Linkages. Under this concept, any BIMP-EAGA vessel travelling within EAGA would be treated as a domestic vessel with the corresponding charges and treatment. The Philippine delegation proposed:
a. the extension of the Manado-Davao service to include General Santos City;
b. the formation of a special committee at the sub-regional level to discuss the expansion and use of current transport facilities and the need for international support; and
c. the inclusion of trading as one of the purposes for border crossing under the Border Patrol and Revised Border Crossing Agreements.
49. The Indonesian delegation noted the Philippine proposal for a “Borderless BIMP-EAGA” and expressed its belief that it was shared by all member countries of the BIMP-EAGA. In this connection, the Indonesian delegation stressed the need to encourage all sectors to work for BIMP-EAGA’s success. It stressed, however, that
the success does not depend solely upon political commitment, but also upon concrete actions by both the government and the private sector, and that success should be sought on a long-term basis.
50. The Indonesian delegation further noted the need to give more attention to:
a. the follow-up of the MOU concerning coal commodity;
b. the follow-up of cooperation for the exploration and exploitation of geothermal energy;
c. increasing sea transportation services connecting Bitung and General Santos City and surrounding areas;d. increasing air transportation services connecting Manado and Davao City; and e. increasing capital investment which is highly needed for the small and medium scale enterprises.
51. The Philippine delegation informed the Indonesian delegation that the Philippines was actively involved in the following tourism-related projects under the BIMP-EAGA:
a. establishment of a BIMP-EAGA Regional Training Center for Human Resources Development;
b. development of a BIMP-EAGA Masterplan for Tourism;
c. development and implementation of a BIMP-EAGA Coastal Zone Management Program; and
d. establishment of Tourist Info-Centers and Craft Villages.
The Philippine delegation further proposed the strengthening of networking among research and development centers in the BIMP-EAGA area and the identification of centers of excellence in various fields and disciplines.
52. The Indonesian delegation noted the Philippine proposals.
PROTOCOL AMENDING THE 1993 AGREEMENT FOR THE AVOIDANCE
OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH
RESPECT TO TAXES ON INCOME53. Both delegations acknowledged receipt of each other’s proposed reformulation of Section 3, Article 11, of the Protocol Amending the 1993 Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, and enjoined their respective finance authorities to conclude negotiations on the matter.
RELATIONS BETWEEN THE JOINT COMMISSION FOR BILATERAL COOPERATION AND THE PHILIPPINES-INDONESIA BORDER COMMITTEE
54. The Meeting noted that the terms of reference of the Joint Commission excluded the responsibilities of the Border Committee and that there was no political framework for the operations of the Committee. The Meeting indicated the need to establish a .OS m relationship between the Commission and the Committee.
The Meeting agreed that, since the Joint Commission has a larger scope of activities, which include all aspects of the bilateral relationship, the Border Committee would be requested to inform the Commission of its activities for information and better coordination.
OTHER MATTERS
SOUTH CHINA SEA
55. The Philippine delegation briefed the Indonesian delegation on the results of the recent bilateral talks between the Philippines and China on the South China Sea question. The Philippine delegation expressed the Philippine Government’s appreciation for Indonesia’s initiatives in sponsoring the Workshop series on Managing Potential Conflicts in the South China Sea.
GRP-MNLF PEACE PROCESS
56. The Philippine delegation expressed its appreciation for the role of Indonesia as the Chairman of the OIC Committee of the Six in the peace process in Southern Philippines.
DATE AND VENUE OF THE SECOND MEETING OF THE PHILIPPINES-INDONESIA JOINT COMMISSION FOR BILATERAL COOPERATION
57. The Meeting agreed to hold the Second Meeting of the Philippines-Indonesia Joint Commission for Bilateral Cooperation in Indonesia on a date to be mutually agreed upon by both countries.
APPRECIATION
58. The Indonesian delegation expressed its appreciation to the Philippine government for the warm hospitality and excellent arrangements in organizing the Meeting.
GOVERNMENT OF THE REPUBLIC
OF THE PHILIPPINES:
GOVERNMENT OF THE REPUBLIC
OF INDONESIA:
DOMINGO L. SIAZON, JR.
ALI ALATAS
of the Republic of the Philippines
of the Republic of IndonesiaManila, 8 September 1995