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August 27, 1997

Considering the friendly and cooperative relation existing between the two countries and among countries in Southeast Asia and particularly ASEAN.

Desiring to enhance or strengthen the existing bilateral relationship through defense and security cooperation between both countries.

Recognizing that the strengthening of cooperation will be beneficial to both national defence and security, particularly to both Armed Forces.

Willing to promote defense and security technical cooperation between the two countries based on the principles of equality, mutual
benefit, and full respect of sovereignty.

Hereby agreed as follow:

ARTICLE I
PURPOSE

The purpose of this Agreement is to provide a the bilateral relation between the defense agencies of to promote cooperative activities in the field of d

ARTICLE II
SCOPE OF COOPERATION

Cooperation between both defense agencies may include the following forms :

a. Joint and combined training and exercises between the two Forces.

b. Operations for the purpose of the attainment of tranquility in the border areas between the two countries.

c. Development of the human resources of ministries and armed forces of the two countries, education and training and other related activities, visits, attachments, and information exchanges.

d. Development of the interoperability of their Armed Forces in operations and logistics.

e. Communication, electronic measures and countermeasures,

f. Defense technology, including research and development, production and modernization, as well as transfer of technology.

g. Logistics support system, including maintenance and repair.

ARTICLE III
IMPLEMENTING ARRANGEMENTS

1. The Parties shall endeavor to take all necessary measures to encourage and to develop defence and security technical cooperation between the two countries within the frame work of this agreement and in conformity with the respective national laws and regulation of the Parties.

2. If required, die Parties shall conclude particular implementing arrangements pertaining to specific aspects of cooperation.

ARTICLE IV
JOINT COMMITTEE

1. A Joint Defense and Security Cooperation Committee hereinafter referred to as the Joint Committee is hereby formed for the purpose of undertaking the tasks stated in Section 8 of this Article.

2. The Joint Committee will be composed of at least five official representatives from each Part. On the meeting, if required, each Party could invite not more than five officials from other relevant department or agencies other than the permanent members of the Committee.

3. The Joint Committee will be Co-Chaired by the Chief of the General Staff of Indonesian Armed Forces and a designated Undersecretary of National Defense for the Republic of the Philippines,

4. The Joint Committee may establish sub-committees to effectively address specific projects of mutual interest.

5. The Joint Committee will meet in principle, once a year, alternately in the two countries.

6. The date, site and agenda will be agree upon between the Co-Chairmen.

7. The Joint Committee will organize the ministerial meeting biannually.

8. The tasks of the Joint Committee are as follows :

a. To explore and identify potential areas of cooperation.

b. To identify items of common interest.

c. To initiate and recommend the cooperative activities.

d. To coordinate, monitor, and control the approved activities.

e. To recommend implementing arrangements, if required.

f. To resolve problems arising out of the implementation of the Agreement.

g. To submit at the conclusion of each meeting a joint report to their respective Defense Ministers.

ARTICLE V
INDUSTRIAL PROPERTY RIGHTS

1. The rights and obligations of each Party in the field of industrial, property rights, copyright in its state territory, transfer of manufacturing licenses, sales to third parties and protection of patent related to innovation or development shall be defined in the implementing arrangements.

2. The receiving Party shall be responsible to protect the industrial property right from unauthorized usage and unauthorized personnel.

ARTICLE VI
CONFIDENTIALITY

1. The Parties commit themselves to protect the classified information to which they may have access within the framework of this Agreement in accordance with both national laws and regulations.

2. Classified information and equipment shall only be through official channels or other channels agreed upon Chairmen of the Joint Committee. These information and are to be labeled with the indication of their classification leve State of Origin as follows:

INDONESIAN ENGLISH
SANGAT RAHASIA TOP SECRET
RAHASIA SECRET
TERBATAS/KONFIDENSIAL CONFIDENTIAL
BIASA UNCLASSIFIED

3. All information and equipment received in the framework of this Agreement shall not be transferred, disclosed or released, either directly or indirectly, on temporary or permanent basis, to third parties, whether persons and entities, without the prior written consent of the originating Party.

ARTICLE VII
FUNDING

1. This Agreement shall be implemented in accordance budgetary allocation of each Party.

2. The budgetary allocation of each Party shall be defined in the implementing arrangement.

ARTICLE VIII
SETTLEMENT OF DISPUTES

1. Any matter arising from this Agreement with respect to its interpretation, application or implementation shall, in the first instance, be submitted to the Joint Committee for settlement.

2. Settlement of any dispute should be based on mutual consultation or negotiation.

3. In the event that he dispute is not settled at this level, both Co-Chairmen of the Joint Committee shall refer the matter to the Parties for settlement.

ARTICLE IX
ENTRY INTO FORCE, AMENDMENT AND TERMINATION 

1. This Agreement shall enter into force on the thirtieth day upon notification by the Parties that their respective constitutional and legal requirements for entry into force have been fulfilled and shall continue to be in force for period of ten (10) years. Unless terminated by either Party in accordance with paragraph 3 of this Article, this Agreement can be extended for a period often (10) years by written notification.

2. This Agreement can be reviewed or amended at any time by mutual written agreement between both Parties.

3. This Agreement can be terminated at any time by either Party, giving the other a written ninety (90) days prior notice.

4. The termination of this Agreement shall not affect the validity or duration of any on-going contracts concluded within its framework.

In witness whereof, the undersigned, being duly authorized by their respective Governments, have signed this Agreement

DONE at Jakarta on this 27th day of August in the year of one thousand nine hundred and ninety seven, in duplicate, in Indonesian and English languages, both texts being equally authentic.

In case of divergence of interpretation, the English text shall prevail.

Entry into Force: March 3, 2010