MEMORANDUM OF UNDERSTANDINGBETWEEN

MINISTRY OF INDUSTRY OF THE REPUBLIC OF INDONESIAAND

MINISTRY OF INDUSTRY AND MINES OF THE ISLAMIC REPUBLICOF IRAN

ONSMALL AND MEDIUM INDUSTRIES COOPERATION

Ministry of Industry of the Republic of Indonesia and Ministry of Industryand Mines of the Islamic Republic of Iran hereinafter referred to as "theParties";

CONSIDERING their mutual intention to improve economic welfarethrough industrial cooperation between the Parties:

DESIRING to promote and strengthen economic and technical cooperationbetween the Parties;

RECALLING to the Framework Agreement on Comprehensive Trade andEconomic Partnership between the Government of the Republic ofIndonesia and the Government of Islamic Republic of Iran, signed inTehran on 21 June 2005;

PURSUANT to the prevailing laws and regulations of their respectivecountries;

HAVE AGREED as follows:

ARTICLE 1OBJECTIVE

The objective of this Memorandum of Understanding (hereinafter referredto 35 MOD) is to strengthen small and medium industries (3M!s) throughindustrial cooperation between the Parties.

ARTICLE 2SCOPE OF COOPERATION

The Scope of Cooperation under this MOD shall cover the foilowings.1. Transferring experience on establishment of S.V.is and supporting the active

units;2. Exchanging information on ru'es and regulations of both Parties related

to economic development as well as market information;3. Transferring experience in standard:zal:on, design and technology

development;

4. improving capacity building of human resources and consultancyservices;

5. Oraanlzir.g Seminars, Workshops and Business Discussions;6. Implementing joint research and development;7. Exchanging experience on industrial estate and clusters development;8. implementing joint efforts for developing, information and communication

technology (ICT), and technology parks;9. Other areas as may be mutually agreed upon by the Parties.

ARTICLE 3JOINT COMMITTEE

The Parties agree on establishing a working group for the purpose ofcompiling a working agenda of this MOU with the aim of effectivecontribution development cf SM.'s of the two counties. The Committeeshall meet regularly or at the request of either Party, alternately inIndonesia or in Iran. The Committee shall report the result of the meetingto the respective ministers.

ARTICLE 4EXECUTING COMMITTEE

(1) in achieving the agreed items the parties confirmed the necess;ty cfinitiating profound cooperation and forming executing committee andregular exchange of views with expertise organizations between the |jtwo countries and agreed that members cf the said committee tc beintroduced tc each other one month after the MOU is signed.

(2) The organizations responsible fo.- the execution of this MOU;* for the Government cf the Republic of Indonesia shall be

Directorate General of Small and Medium Industry of the Ministry ofIndustry, and

« for the Government of the Islamic Republic of Iran shall be IranSmall Industries and Industrial Park? Organization of the Ministry cfIndustry and Mines.

ARTICLESTECHNICAL ARRANGEMENT

specific a'rangements.

ARTICLESPROTECTION OF INTELLECTUAL PROPERTY RIGHTS

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ARTICLE 7SETTLEMENT OF DIFFERENCE

Any differences arising out of the interpretation and/or application of thisMOD shall be settled amicably through consultation or negotiationbetween the Parties.

ARTICLE 8AMENDMENT

This MOU may be amended at any time, by mutual written consent of theParties. Such amendment shall come into effect on such date as may bedetermined by the Parties and shall form as an integral part of this MO J

ARTICLE 9ENTRY INTO FORCE AND DURATION

1 . This MOU shall enier into force on the date of its signing2. This MOU shall remain into force for a period of 5 (five) years and shall

be extended automatically for the subsequent 5 (five) years unlesseither Party notifies the other Party of its intention to terminate this MOUat least 6 (six) months prior to its termination.

3. The termination of this Memorandum of Understanding sha!! not affectthe validity and duration of any arrangement, programs or activitiesmade under this Memorandum of Understanding until the completion cfsuch arrangement, programs or activities, unless the Parties decidedother/v'ss.

IN WITNESS WHEREOF, the undersigned duly authorized thereto bytheir respective Governments, have signed this MOU.

DONE in duolicate at Jakarta on the tenth of Mav two thousand and six.

For the Ministry of industry

Fahmi idrisMinister of industry

Dr. Mohammad SoleimaniMinister of Communication and

Information Technology