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November 12, 2001

The Government of the Republic of the Philippines and the Government of the Republic of the Indonesia, hereinafter referred to as the Parties.

DESIRING to strengthen the friendly relations and mutual understanding existing between the two countries in the field of tourism;

INSPIRED by a common commitment to enhance within their capabilities, the promotion of cooperation in the afore-mentioned field on the basis of quality, mutual respect and benefit;

CONSIDERING that both countries are active members of the Association of Southeast Asian Nations;

COGNIZANT of the role of tourism in their economic development and as a positive instrument towards the improvement of the equality of life for all peoples;

CONVINCED of the role of tourism as a vital force in promoting peace and better international understanding;

REFERRING to the Cultural Agreement between the Republic of the Philippines and the Republic of Indonesia signed at Manila on 28 April 1959 and the Basic Agreement on Economic and technical Co-operation between the Government of the Republic of Indonesia and the Government of the Philippines signed at Jakarta on 8 August 1974.

PURSUANT to the prevailing laws and regulations of their respective countries;

Have agreed as follows:

ARTICLE I

AIMS OF COOPERATION

This Memorandum of Understanding (MOU) aims to:

a. Increase tourist arrivals to both countries from world tourist generating market, through the Republic of Indonesia and/or through the Republic of the Philippines;

b. Encourage a wider distribution of visitors to the various tourist destinations and attractions in each other’s country;

c. Encourage visits of both nationals and residents to each other’s country; and

d. Encourage the healthy growth of the tourism industry in both countries.

ARTICLE II

EXECUTING AGENCIES

a. The Government of the Republic of the Philippines designates the Department of Tourism as the agency responsible for the implementation of this Memorandum.

b. The Government of the Republic of Indonesia designates the State Ministry of Culture and Tourism as the agency responsible for the implementation of this Memorandum.

ARTICLE III

AREAS OF COOPERATION

Both Parties shall endeavor to tourism cooperation in accordance with the laws and regulations of their countries in the following areas:

a. RESEARCH AND DEVELOPMENT

The Parties undertake cooperation in the areas of research and development through exchange of information on results of research or studies in areas that shall benefit both Parties.

b. EDUCATION AND TRAINING

The Parties shall undertake cooperation in the areas of education and training through exchange of information, comparative studies on training programs and skills improvement in both public and private sectors.

c. PROMOTION

The Parties shall encourage and promote individual or group travel by their respective citizens and citizens of third countries to Indonesia and the Philippines.

The Parties shall promote tourist flows by air and sea between both countries and shall endeavor to facilitate the supply of essential services for that purpose.

The Parties shall provide support for each other’s tourism promotion activities, and whenever necessary, undertake joint promotion programs involving youth and student exchanges, cooperation on advertising, development of joint tour packages, production exchange and dissemination of their respective brochures, films, and photographs including slides, interlaid.

The Parties shall undertake joint promotion programs that included a “twinning program” whereby each Party shall promote and sell the other’s destinations jointly with its own in international tourist markets through joint tourism programs, as well as encourage tourists visiting the countries of the Parties to extend their visits to each other’s destinations, which shall all be in compliance with their respective national laws and regulations.

d. MEETING, INCENTIVE, CONVENTION AND EXHIBITIONS

The Parties shall undertake cooperative efforts in the areas of meetings, incentives, conventions, and exhibitions through exchange of information on MICE facilities/events, and through joint organization of conferences and exhibitions.

e. PRIVATE SECTOR COOPERATION

The Parties shall encourage their respective tourism-related establishments, particularly travel agencies and other institutions, to establish business contacts, to create investments promotion programs, and to exchange experiences and information regarding their existing systems. These establishments shall likewise be encouraged to develop joint promotional programs that would market Indonesia and the Philippines under one tour package.

ARTICLE IV

IMPLEMENTATION

a. The Representatives of the designated Executing Agencies of the Parties shall, when necessary, meet alternately in the two countries to assess and monitor the implementation of this Memorandum of Understanding.

b. To facilitate the implementation of this Memorandum of Understanding, both Parties shall set down the procedures, plans and recommended programs of cooperation toward achieving its aims through specific contact offices within their respective competent official agencies as mentioned in Article II.

ARTICLE V

INTELLECTUAL PROPERTY RIGHTS AND CONFIDENTIALITY

The protection of intellectual property rights shall be enforced in conformity with the respective national laws and regulations of the Parties. All information acquired or exchanged by virtue of this Memorandum of Understanding shall not be transmitted to a third party without the prior written consent of the other Party.

ARTICLE VI

AMENDMENTS

Either Party may request in writing an amendment or modification of any part of this Memorandum of Understanding. Such amendment or modification shall enter into force in accordance with the provision on entry into force agreed by both Parties.

ARTICLE VII

SETTLEMENT OF DISPUTES

Any dispute between the Parties concerning the interpretation and/or implementation of this Memorandum of Understanding shall be settled amicably through consultations and/or negotiations between the Parties, through diplomatic channels.

ARTICLE VIII

ENTRY INTO FORCE, DURATION AND TERMINATION

This Memorandum of Understanding shall enter into force on the date of the later written notification by the Parties, indicating that the internal procedure for its entry into force have been complied with.

This Memorandum of Understanding shall remain valid for a period of five (5) years and shall automatically renewed for another two (2) years, unless either Party terminates it by giving written notification through diplomatic channels, at least six (6) months prior to its expiration.

The termination of this Memorandum of Understanding shall not affect the validity and duration of any on-going programs and projects under this Memorandum of Understanding.

In Witness Whereof, the undersigned have signed this Memorandum of Understanding.

Done in duplicate at Jakarta on the 12th day of November in the year of two thousand one in the Indonesian and English languages, both texts being equally authentic. In case of any divergence on the interpretation of this Memorandum of Understanding, the English text shall prevail.