Status:InForce|Effective:1Januari1992|Signed:8Mei1990

AGREEMENTBETWEEN

THEREPUBLICOFINDONESIAAND

THEREPUBLICOFSINGAPORE

FOR

THEAVOIDANCEOFDOUBLETAXATIONANDTHEPREVENTIONOFFISCALEVASIONWITHRESPECTTOTAXESONINCOME

The Government of the Republic of Indonesia and the Government ofRepublicofSingapore,DESIRINGtoconcludeanAgreementfortheavoidanceofdoubletaxationandthepreventionoffiscalevasionwithrespecttotaxesonincome,HAVEAGREEDASFOLLOWS:

Article1PERSONALSCOPE

ThisAgreementshallapplytopersonswhoareresidentsofoneorbothoftheContractingStates.

Article2TAXESCOVERED

1. ThisAgreementshallapplytotaxesonincomeimposedonbehalfofeachContractingState,irrespectiveofthemannerinwhichtheyarelevied.

2. Thereshallberegardedastaxesonincomealltaxesimposedontotalincomeoronelementsof income, includingtaxesongainsfromthealienationofmovableor immovablepropertyandtaxesonthetotalamountofwagesorsalariespaidbyenterprises.

3. TheexistingtaxestowhichthisAgreementshallapplyare: (a) inSingapore:

theincometax(hereinafterreferredtoas"Singaporetax");

(b) inIndonesia:

(i) the income tax (pajak penghasilan), and, to the extentprovidedinsuchincometax,

(ii) thecompanytax(pajakperseroan)and (iii) thetaxoninterest,dividendsandroyalties(pajakatasbunga,

dividendanroyalty) (hereinafterreferredtoas"Indonesiantax").4. This Agreement shall also apply to any identical or substantiallysimilar taxes which are imposed after the date of signature of thisAgreement in addition to, or in place of, the existing taxes. ThecompetentauthoritiesoftheContractingStatesshallnotifyeachotherofanysignificantchangeswhichhavebeenmadeintheirrespectivetaxationlaws.

5. If,byreasonofchangesmadeinthetaxationlawofeitherContractingState, it seems desirable to amend any article of this Agreementwithout affecting the general principles thereof, the necessaryamendments may be made by mutual consent by means of anexchangeofdiplomaticnotesor inanyothermanner inaccordancewiththeirconstitutionalprocedures.

Article3GENERALDEFINITIONS

1. InthisAgreement,unlessthecontextotherwiserequires: (a) (i) theterm"Singapore"comprisestheterritoryoftheRepublic

of Singapore as defined in its laws and the adjacent areasoverwhichtheRepublicofSingaporehassovereignrightsorjurisdiction in accordance with the provisions of the UnitedNationsConventionontheLawoftheSea,1982;

(ii) theterm"Indonesia"comprisestheterritoryoftheRepublicofIndonesiaasdefinedinitslawsandtheadjacentareasoverwhich the Republic of Indonesia has sovereign rights orjurisdiction in accordance with the provisions of the UnitedNationsConventionontheLawoftheSea,1982;

(b) theterms"aContractingState"and"theotherContractingState"meanIndonesiaorSingaporeasthecontextrequires;

(c) the term "tax" means Indonesian tax or Singapore tax as thecontextrequires;

(d) the term "person" includes an individual, a company and anyother body of persons which is treated as an entity for taxpurposes;

(e) the term "company" means any body corporate or any otherentitywhichistreatedasabodycorporatefortaxpurposes;

(f) the terms"enterpriseofaContractingState"and"enterpriseofthe other Contracting State" mean respectively an enterprisecarriedonbyaresidentofaContractingStateandanenterprisecarriedonbyaresidentoftheotherContractingState;

(g) theterm"national"means:

(i) any individual possessing the nationality or citizenship of aContractingState;

(ii) any legal person, partnership, association and any otherentityderivingtheirstatusassuchfromthelawsinforceinaContractingState;

(h) theterm"internationaltraffic"meansanytransportbyashiporaircraft which is operated by an enterprise of one of theContractingStates,exceptwhen theshiporaircraft isoperatedsolelybetweenplacesintheotherContractingState;

(i) theterm"competentauthority"means:(i) in the case of Indonesia, the Minister of Finance or his

authorisedrepresentative;(ii) in the case of Singapore, the Minister for Finance or his

authorisedrepresentative.2. AsregardstheapplicationofthisAgreementbyaContractingState,any term not defined in this Agreement shall, unless the contextotherwiserequires,havethemeaningwhichithasunderthelawsofthatContractingStaterelatingtothetaxeswhicharethesubjectofthisAgreement.

Article4FISCALDOMICILE

1. For the purposes of this Agreement, the term "a resident of aContractingState"meansanypersonwhoisresidentinaContractingState"fortaxpurposesofthatContractingState.Thistermshallnotinclude a permanent establishment of a foreign enterprise which istreatedasaresidentfortaxpurposes.

2. Wherebyreasonof theprovisionsofparagraph1an individual isaresidentofbothContractingStates,thenhisstatusshallbedeterminedinaccordancewiththefollowingrules:

(a) heshallbedeemedtobea residentof theContractingState inwhich he has a permanent home available to him. If he has apermanenthomeavailabletohiminbothContractingStates,heshall be deemed to be a resident of the Contracting Statewithwhichhispersonalandeconomicrelationsareclosest(centreofvitalinterests);

(b) iftheContractingStateinwhichhehashiscentreofvitalinterestscannot be determined, or if he has not a permanent homeavailabletohimineitherContractingState,heshallbedeemedtobearesidentoftheContractingStateinwhichhehasanhabitualabode;

(c) ifhehasanhabitualabodeinbothContractingStatesorinneitherofthem,thecompetentauthoritiesoftheContractingStatesshallsettlethisquestionbymutualagreement.

3. Wherebyreasonoftheprovisionsofparagraph1apersonotherthanan individual isaresidentofbothContractingStates, thecompetentauthoritiesoftheContractingStatesshallsettlethequestionbymutualagreement.

Article5PERMANENTESTABLISHMENT

1. For the purposes of this Agreement, the term "permanentestablishment" means a fixed place of business through which thebusinessoftheenterpriseiswhollyorpartlycarriedon.

2. Theterm"permanentestablishment"shallincludeespecially: (a) aplaceofmanagement; (b) abranch; (c) anoffice; (d) afactory; (e) aworkshop; (f) afarmorplantation; (g) amine,anoilorgaswell,aquarryorotherplaceofextractionof

naturalresources; (h) a building site or construction, installation or assembly project

whichexistsformorethan183days; (i) the furnishingof services, includingconsultancyservices,byan

enterprise throughanemployeeorotherperson (other thananagentofanindependentstatuswithinthemeaningofparagraph7)where theactivities continuewithinaContractingState for aperiodorperiodsaggregatingmorethan90dayswithinatwelve-monthperiod.

3. Theterm"permanentestablishment"shallnotbedeemedtoinclude: (a) theuseoffacilitiessolelyforthepurposeofstorageordisplayof

goodsormerchandisebelongingtotheenterprise; (b) themaintenanceofastockofgoodsormerchandisebelongingto

theenterprisesolelyforthepurposeofstorageordisplay; (c) themaintenanceofastockofgoodsormerchandisebelongingto

the enterprise solely for the purpose of processing by anotherenterprise;

(d) the maintenance of a fixed place of business solely for thepurpose of purchasing goods or merchandise or for collectinginformationfortheenterprise;

(e) the maintenance of a fixed place of business solely for thepurposeofadvertising,forthesupplyofinformation,forscientificresearch or for similar activities which have a preparatory orauxiliarycharacter,fortheenterprise.

4. An enterprise of a Contracting State shall be deemed to have apermanentestablishmentintheotherContractingStateifitcarriesonsupervisory activities in that other State formore than6months inconnectionwithaconstruction,installationorassemblyprojectwhichisbeingundertakeninthatotherState.

5. ApersonactinginoneoftheContractingStatesfororonbehalfofanenterprise of the otherContracting State other than an agent of anindependentstatustowhomparagraph6ofthisArticleappliesshallbedeemedtobeapermanentestablishmentinthefirst-mentionedState,if:

(a) he has, and habitually exercises, in the first-mentioned State ageneral authority to conclude contracts for or on behalf of theenterprise, unless his activities are limited to the purchase ofgoodsormerchandisefortheenterprise;or

(b) he habitually maintains in the first-mentioned State a stock ofgoodsormerchandisebelongingtotheenterprisefromwhichheregularlydeliversgoodsormerchandise fororonbehalfof theenterprise.

6. NotwithstandingtheprecedingprovisionsofthisArticle,aninsuranceenterprise of a Contracting State shall, except in regard to re-insurance,bedeemedtohaveapermanentestablishmentintheotherContractingStateif itcollectspremiumsintheterritoryofthatotherStateorinsuresriskssituatedthereinthroughapersonotherthananagentofanindependentstatustowhomparagraph7applies.

7. AnenterpriseofaContractingStateshallnotbedeemed tohaveapermanent establishment in the other Contracting State merelybecause it carries onbusiness in that other State throughabroker,general commission agent or any other agent of an independentstatus,wheresuchpersonsareactingintheordinarycourseoftheirbusiness.However,whentheactivitiesofsuchanagentaredevotedwhollyoralmostwhollyonbehalfoftheenterprise,heshallnotbeconsideredan agent of an independent status within the meaning of thisparagraph.

8. The fact that a companywhich is a resident of a Contracting StatecontrolsoriscontrolledbyacompanywhichisaresidentoftheotherContracting State, or which carries on business in that other State(whetherthroughapermanentestablishmentorotherwise),shallnotof itself make either company a permanent establishment of theother.

Article6INCOMEFROMIMMOVABLEPROPERTY

1. IncomederivedbyaresidentofaContractingStatefromimmovablepropertysituatedintheotherContractingStatemaybetaxedinthatotherState.

2. Forthepurposesof thisAgreement, theterm"immovableproperty"shallbedefinedinaccordancewiththelawsoftheContractingStateinwhichthepropertyinquestionissituated.Thetermshallinanycaseinclude property accessory to immovable property, livestock andequipment used in agriculture and forestry, rights to which theprovisionsofgenerallawrespectinglandedpropertyapply,usufructofimmovable property and rights to variable or fixed payments asconsiderationfortheworkingof,ortherighttowork,mineraldeposits,oil or gas wells, quarries and other places or extraction of naturalresources includingtimberorother forestproduce.Ships,boatsandaircraftshallnotberegardedasimmovableproperty.

3. Theprovisionsofparagraph1shallalsoapplytoincomederivedfromthe direct use, letting, or use in any other form of immovableproperty.

4. Theprovisionsofparagraphs1and3shallalsoapplytotheincomefrom immovable property of an enterprise and to income fromimmovable property used for the performance of professionalservices.

Article7BUSINESSPROFITS

1. TheprofitsofanenterpriseofaContractingStateshallbetaxableonlyin that State unless the enterprise carries on business in the otherContractingStatethroughapermanentestablishmentsituatedtherein.If the enterprise carries on business as aforesaid, the profits of theenterprisemaybetaxedintheotherStatebutonlysomuchofthemasisattributabletothatpermanentestablishment.

2. WhereanenterpriseofaContractingStatecarriesonbusinessintheotherContractingState throughapermanentestablishmentsituatedtherein, there shall in each Contracting State be attributed to thatpermanent establishment the profits which it might be expected tomakeifitwereadistinctandseparateenterpriseengagedinthesameorsimilaractivitiesunderthesameorsimilarconditionsanddealingwholly independentlywith the enterprise ofwhich it is a permanentestablishment.

3. Indeterminingtheprofitsofapermanentestablishment,thereshallbeallowed as deductions expenses including executive and generaladministrativeexpenses,whichwouldbedeductibleifthepermanentestablishment were an independent enterprise, insofar as they arereasonably allocable to the permanent establishment, whetherincurredintheStateinwhichthepermanentestablishmentissituatedorelsewhere.

4. Iftheinformationavailabletothecompetentauthorityisinadequatetodeterminetheprofitstobeattributedtothepermanentestablishmentofanenterprise,nothing in thisArticleshallaffect theapplicationofanylawofthatStaterelatingtothedeterminationofthetaxliabilityofapersonbytheexerciseofadiscretionorthemakingofanestimatebythecompetentauthority,providedthatthelawshallbeapplied,sofarastheinformationavailabletothecompetentauthoritypermits,inaccordancewiththeprincipleofthisArticle.

5. For the purposes of the preceding paragraphs, the profits to beattributedtothepermanentestablishmentshallbedeterminedbythesamemethodyearbyyearunlessthereisgoodandsufficientreasontothecontrary.

6. Whereprofitsincludeitemsofincomewhicharedealtwithseparatelyin other Articles of this Agreement, then the provisions of thoseArticlesshallnotbeaffectedbytheprovisionsofthisArticle.

7. Noprofitsshallbeattributedtoapermanentestablishmentbyreasonof themerepurchaseby thatpermanentestablishmentofgoodsormerchandisefortheenterprise.

Article8SHIPPINGANDAIRTRANSPORT

1. Income derived by an enterprise of a Contracting State from theoperationofaircraftininternationaltrafficshallbetaxableonlyinthatContractingState.

2. Income derived by an enterprise of a Contracting State from theoperation of ships in international trafficmay be taxed in the otherContracting State, but the tax imposed in that other State shall bereducedbyanamountequalto50%thereof.

3. Theprovisionsofparagraphs1and2shallalsoapplytotheshareofthe income from the operation of ships or aircraft derived by anenterpriseofaContractingStatethroughparticipationinapool,ajointbusinessoraninternationaloperatingagency.

Article9ASSOCIATEDENTERPRISES

Where:(a) anenterpriseofaContractingStateparticipatesdirectlyorindirectly

in themanagement,controlorcapitalofanenterpriseof theotherContractingState;or

(b) the same persons participate directly or indirectly in themanagement, control or capital of an enterprise of a ContractingStateandanenterpriseoftheotherContractingState;

and in either case conditions are made or imposed between the twoenterprises in their commercial or financial relations which differ fromthosewhichwouldbemadebetweenindependententerprises,anyprofitswhich would, but for those conditions, have accrued to one of theenterprises,but,byreasonofthoseconditions,havenotsoaccrued,maybeincludedintheprofitsofthatenterpriseandtaxedaccordingly.

Article10DIVIDENDS

1. DividendspaidbyacompanywhichisaresidentofaContractingStatetoaresidentoftheotherContractingStatemaybetaxedinthatotherState.

2. However, such dividends may be taxed in the Contracting State ofwhichthecompanypayingthedividendsisaresident,andaccordingtothelawofthatState,butiftherecipientisthebeneficialownerofthedividendsthetaxsochargedshallnotexceed:

(a) 10% of the gross amount of the dividends if the recipient is acompanywhich owns directly at least 25%of the capital of thecompanypayingthedividends;

(b) 15%ofthegrossamountofthedividendsinallothercases. The competentauthoritiesof theContractingStates shall bymutualagreementsettlethemodeofapplicationoftheselimitations.Theprovisions of this paragraph shall not affect the taxationof thecompanyontheprofitsoutofwhichthedividendsarepaid.

3. Notwithstandingtheprovisionsofparagraph2ofthisArticleaslongasSingaporedoesnot imposeataxondividends inadditiontothetaxchargeableontheprofitsorincomeofacompany,dividendspaidbyacompanywhich isaresidentofSingaporetoaresidentof IndonesiashallbeexemptfromanytaxinSingaporewhichmaybechargeableondividendsinadditiontothetaxchargeableontheprofitsorincomeofthecompany.However,whenSingaporeimposesataxondividendsin addition to the tax chargeable on the profits or income of acompany,therateasprescribedundertheprovisionsofparagraph2ofthisArticleshallapply.

4. Theterm"dividends"asusedinthisArticlemeansincomefromsharesorotherrights,notbeingdebt-claims,participatinginprofits,aswellasincome from other corporate rights which is subject to the sametaxationtreatmentasincomefromsharesbythelawsoftheStateofwhichthecompanymakingthedistributionisaresident.

5. Theprovisionsofparagraphs1and2shallnotapplyiftherecipientofthedividends,beingaresidentofaContractingState,hasintheotherContracting State, of which the company paying the dividends is aresident,apermanentestablishmentwithwhichtheholdingbyvirtueofwhichthedividendsarepaidiseffectivelyconnected.Insuchacase,theprovisionsofArticle7shallapply.

6. WhereacompanywhichisaresidentofaContractingStatederivesprofits or income from the other Contracting State, that other Statemay not impose any tax on the dividends paid by the company topersons who are not residents of that other State, nor subject thecompany'sundistributedprofitstoataxonundistributedprofitsevenifthedividendspaidorundistributedprofitsconsistwhollyorpartlyofprofitsorincomearisinginsuchotherState.Dividendshallbedeemedtoarise:

(a) inSingapore:ifitispaidbyacompanyresidentinSingapore;or

(b) inIndonesia:ifitispaidbyacompanyresidentinIndonesia.

Article11INTEREST

1. Interestarising inaContractingStateandpaid toa residentof theotherContractingStatemaybetaxedinthatotherState.

2. However,suchinterestmayalsobetaxedintheContractingStateinwhich it arises, and according to the laws of that State, but if therecipient is thebeneficialownerof the interest, the taxsochargedshallnotexceed10%ofthegrossamount.

3. Notwithstanding theprovisionsofparagraph2, interestarising inaContracting State and paid to a resident of the other ContractingStateshallbetaxableonlyinthatotherState,iftheinterestispaidinrespectof:

(a) abond,debentureorothersimilarobligationoftheGovernmentof the first-mentioned State or a political subdivision or localauthoritythereof;or

(b) a loan made, guaranteed or insured, or a credit extended,guaranteedorinsuredbytheMonetaryAuthorityofSingapore,orthe"BankIndonesia"(TheCentralBankofIndonesia),oranyother lending institution, as may be specified and agreed inletters exchanged between the competent authorities of theContractingStates.

4. ThecompetentauthoritiesoftheContractingStatesshallbymutualagreement settle the mode of application of the limitationsprescribedintheprecedingparagraphs.

5. Notwithstanding the provisions of paragraphs 2 and 3, theGovernmentofaContractingStateshallbeexemptfromtaxintheotherContractingStateinrespectofinterestderivedfromthatotherState.

6. Forthepurposesofparagraph5,theterm"Government": (a) in the caseofSingaporemeans theGovernmentof Singapore

andshallinclude:(i) the Monetary Authority of Singapore and the Board of

CommissionersofCurrency;(ii) theGovernmentofSingapore InvestmentCorporationPte

Ltd;(iii) (aa) PortofSingaporeAuthority; (bb) PublicUtilitiesBoard; (cc) TelecommunicationAuthorityofSingapore;and(iv) any statutory body, public body or institution as may be

agreed between the competent authorities of theContractingStates;

(b) inthecaseofIndonesiameanstheGovernmentoftheRepublicofIndonesiaandshallinclude:(i) alocalauthority;(ii) BankIndonesia(TheCentralBankofIndonesia);(iii) any statutory body, public body or institution as may be

agreed between the competent authorities of theContractingStates.

7. Theterm"interest"asusedinthisArticlemeansincomefromdebt-claims of every kind, whether or not secured by mortgage andwhetherornotcarryingarighttoparticipateinthedebtor'sprofits,and in particular, income from government securities and incomefrombondsordebentures,includingpremiumsandprizesattachingtosuchsecurities,bondsordebentures.

8. The provisions of paragraphs 1, 2, and 3 shall not apply if thebeneficial owner of the interest, being a resident of a ContractingState,carriesonbusinessintheotherContractingStateinwhichtheinterestarises,throughapermanentestablishmentsituatedtherein,and the debt-claim in respect of which the interest is paid iseffectivelyconnectedwithsuchpermanentestablishment.Insuchacase,theprovisionsofArticle7shallapply.

9. Interest shall be deemed to arise in a Contracting State when thepayer isthatState itself,apoliticalsub-division,a localauthority,astatutory body or a resident of that State. Where, however, thepersonpayingtheinterest,whetherheisaresidentofaContractingStateornot,hasinaContractingStateapermanentestablishment,inconnectionwithwhichtheindebtednessonwhichtheinterestispaidwas incurred, and such interest is borne by such permanentestablishment, then such interest shall be deemed to arise in theStateinwhichthepermanentestablishmentissituated.

10. Where,byreasonofaspecialrelationshipbetweenthepayerandthebeneficialownerorbetweenbothof themandsomeotherperson,theamountoftheinterest,havingregardtothedebt-claimforwhichitispaid,exceedstheamountwhichwouldhavebeenagreeduponby the payer and the beneficial owner in the absence of suchrelationship,theprovisionsofthisArticleshallapplyonlytothelast-mentionedamount. In such case, the excesspart of thepaymentsshallremaintaxableaccordingtothelawsofeachContractingState,dueregardbeinghadtotheotherprovisionsofthisAgreement.

Article12ROYALTIES

1. Royaltiesarising inaContractingStateandpaidtoaresidentoftheotherContractingStatemaybetaxedinthatotherState.

2. However, such royalties may be taxed in the Contracting State inwhich they arise, and according to the law of that State, but if therecipient is thebeneficialownerof the royalties, the taxsochargedshallnotexceed15%ofthegrossamountoftheroyalties.The competentauthoritiesof theContractingStates shall bymutualagreementsettlethemodeofapplicationofthislimitation.

3. The term "royalties"asused in thisArticlemeanspaymentsof anykindreceivedasaconsiderationfortheuseof,ortherighttouse,anycopyrightofliterary,artisticorscientificworkincludingcinematographfilms and films or tapes for radio or television broadcasting, anypatent,trademark,designormodel,plan,secretformulaorprocess,orfortheuseof,ortherighttouse, industrial,commercialorscientificequipment, or for information concerning industrial, commercial orscientificexperience.

4. Theprovisionsofparagraphs1and2ofthisArticleshallnotapplyiftherecipientoftheroyalties,beingaresidentofaContractingState,has in the other Contracting State in which the royalties arise, apermanentestablishmentwithwhichtherightorpropertygivingrisetotheroyaltiesiseffectivelyconnected.Insuchacase,theprovisionsofArticle7shallapply.

5. Royalties shall be deemed to arise in a Contracting Statewhen thepayer is that State itself, a political subdivision, a local authority, astatutorybodyoraresidentofthatState.Where,however,thepersonpayingtheroyalties,whetherheisaresidentofaContractingStateornot, has in a Contracting State a permanent establishment inconnectionwithwhich the liability topay the royaltieswas incurred,andsuchroyaltiesarebornebysuchpermanentestablishment,thensuch royalties shall be deemed to arise in the Contracting State inwhichthepermanentestablishmentissituated.

6. Theprovisionsofparagraphs1,2and5of thisArticleshall likewiseapply to proceeds arising from the alienation of any copyright ofscientificwork,anypatent,trademark,designormodel,planorsecretformulaorprocess.

7. Where, owing to a special relationship between the payer and thebeneficialownerorbetweenbothofthemandsomeotherperson,theamount of the royalties paid, having regard to the use, right orinformationforwhichtheyarepaid,exceedstheamountwhichwouldhavebeenagreeduponbythepayerandthebeneficialownerintheabsenceofsuchrelationship,theprovisionsofthisarticleshallapplyonlytothelast-mentionedamount.Inthatcase,theexcesspartofthepayments shall remain taxable according to the laws of eachContractingState,dueregardbeinghadtotheotherprovisionsofthisAgreement.

Article13INDEPENDENTPERSONALSERVICES

1. Income derived by a resident of a Contracting State in respect ofprofessionalservicesorotheractivitiesofan independentcharactershall be taxable only in that State unless he is present in the otherContractingStateforaperiodorperiodsexceedingintheaggregate90daysinanytwelve-monthperiod.IfheremainsinthatotherStatefortheaforesaidperiodorperiods,theincomemaybetaxedinthatother State but only somuch of it as is derived in that other Stateduringtheaforesaidperiodorperiods.

2. The term "professional services" includes especially independentscientific,literary,artistic,educationalorteachingactivitiesaswellasthe independent activities of physicians, lawyers, engineers,architects,dentistsandaccounts.

Article14DEPENDENTPERSONALSERVICES

1. Subject to theprovisionsofArticles15,17,18,19, and20, salaries,wages and other similar remuneration derived by a resident of aContractingStateinrespectofanemploymentshallbetaxableonlyinthatStateunlesstheemploymentisexercisedintheotherContractingState. If the employment is so exercised, such remuneration as isderivedtherefrommaybetaxedinthatotherState.

2. Notwithstandingtheprovisionsofparagraph1,remunerationderivedby a resident of a Contracting State in respect of an employmentexercised in theotherContractingStateshallbe taxableonly in thefirst-mentionedStateif:

(a) therecipientispresentintheotherStateforaperiodorperiodsnot exceeding in the aggregate 183 days in the calendar yearconcerned;and

(b) theremunerationispaidby,oronbehalfof,anemployerwhoisaresidentofthefirst-mentionedState;and

(c) the remuneration is not borne by a permanent establishmentwhichtheemployerhasintheotherState.

3. Notwithstandingtheprovisionsofparagraphs1and2,remunerationderived in respect of any employment exercised aboard a ship oraircraft operated in international traffic by an enterprise of aContractingStateshallbetaxableonlyinthatState.

Article15DIRECTORSFEES

1. Directors' fees and similar payments derived by a resident of aContractingStateinhiscapacityasamemberoftheboardofdirectorsofacompanywhichisaresidentoftheotherContractingStatemaybetaxedinthatotherState.

2. The remuneration which a person to whom paragraph 1 appliesderives fromthecompany inrespectof thedischargeofday-to-dayfunctions of a managerial or technical nature may be taxed inaccordancewiththeprovisionsofArticle14.

Article16ARTISTESANDATHLETES

1. NotwithstandingtheprovisionsofArticles13and14,incomederivedby a resident of a Contracting State as an entertainer, such as atheatre,motionpicture,radioortelevisionartiste,oramusician,orasanathlete,fromhispersonalactivitiesassuchexercisedintheotherContractingState,maybetaxedinthatotherState.Suchincomeshall,however,beexemptfromtaxinthatotherStateifsuchactivitiesaresupported,whollyorsubstantially,fromthepublicfunds of the Government of either Contracting State or a localauthorityorastatutorybodythereof.

2. Where income in respect of personal activities exercised in aContracting State by an entertainer or an athlete in his capacity assuchaccruesnottotheentertainerorathletehimselfbuttoanotherperson,thatincomemay,notwithstandingtheprovisionsofArticles7,13and14betaxedinthatState.Suchincomeshall,however,beexemptfromtaxinthatStateifsuchactivitiesaresupported,whollyorsubstantially,fromthepublicfundsoftheGovernmentofeitherContractingStateoralocalauthorityorastatutorybodythereof.

Article17PENSIONS

Subject to the provisions of Article 18, pensions and other similarremunerationarising inaContractingStateandpaid toa residentof theotherContractingStateinconsiderationofpastemploymentmaybetaxedinthefirst-mentionedState.

Article18GOVERMENTSERVICE

1. (a) Remuneration,otherthanapension,paidbyaContractingStateorapoliticalsubdivisionora localauthorityorastatutorybodythereof to an individual in respect of services rendered to thatStateorpoliticalsubdivisionor localauthorityorstatutorybodyshallbetaxableonlyinthatState.

(b) However, such remuneration shall be taxable only in the otherContractingStateiftheservicesarerenderedinthatStateandtheindividualisaresidentofthatStatewho:(i) isanationalofthatState;or(ii) didnotbecomearesidentofthatStatesolelyforthepurpose

ofrenderingtheservices.2. Anypensionpaidby,oroutoffundscreatedby,aContractingStateorapoliticalsubdivisionoralocalauthorityorastatutorybodythereoftoanindividualinrespectofservicesrenderedtothatStateorpoliticalsubdivisionorlocalauthorityorstatutorybodyshallbetaxableonlyinthatState.

3. TheprovisionsofArticles14,15,and17shallapplytoremunerationandpensions inrespectofservicesrendered inconnectionwithanytrade or business carried on by a Contracting State or a politicalsubdivisionoralocalauthorityorastatutorybodythereof.

Article19TEACHERSANDRESEARCHERS

1. An individual who is a resident of a Contracting State immediatelybeforemakingavisittotheotherContractingState,andwho,attheinvitationofanyuniversity,college,schoolorothersimilareducationalinstitution,visitsthatotherStateforaperiodnotexceedingtwoyearssolely for the purpose of teaching or research or both at sucheducationalinstitutionshallbeexemptfromtaxinthatotherStateonanyremunerationforsuchteachingorresearch.

2. ThisArticleshallnotapplytoincomefromresearchifsuchresearchisundertaken primarily for the private benefit of a specific person orpersons.

Article20STUDENTSANDTRAINEES

AnindividualwhoisaresidentofaContractingStateimmediatelybeforemakingavisittotheotherContractingStateandistemporarilypresentintheotherStatesolely:(a) as a student, at a recognized university, college, school or other

similarrecognizededucationalinstitutioninthatotherState;(b) asabusinessortechnicalapprentice;or(c) arecipientofagrant,allowanceorawardfortheprimarypurposeof

study, researchor training from theGovernmentofeitherStateorfromascientific,educational, religiousorcharitableorganizationorunder a technical assistance programme entered into by theGovernmentofeitherState;

shallbeexemptfromtaxinthatotherStateon:(a) all remittances from abroad for the purposes of his maintenance,

education,study,researchortraining;(b) theamountofsuchgrant,allowanceoraward;and(c) anyremunerationnotexceedingUnitedStatesDollarstwothousand

two hundred per annum in respect of services in that other Stateprovided the services are performed in connection with his study,research or training or are necessary for the purposes of hismaintenance.

Article21INCOMENOTEXPRESSLYMENTIONED

The laws in force in each Contracting State shall continue to govern thetaxation of income in the respective Contracting States except whereexpressprovisiontothecontraryhasbeenmadeinthisAgreement.

Article22LIMITATIONOFRELIEF

Where this agreement provides (with or without other conditions) thatincome fromsources inaContractingStateshallbeexempt fromtax,ortaxedatareducedrateinthatStateandunderthelawsinforceintheotherContracting State the said income is subject to tax by reference to theamountthereofwhichisremittedtoorreceivedinthatotherStateandnotbyreferencetothefullamountthereof,thentheexemptionorreductionoftax tobeallowedunder thisAgreement in thefirst-mentionedStateshallapplyonlytosomuchof the incomeas isremittedtoorreceived inthatotherState.

Article23ELIMINATIONOFDOUBLETAXATION

1. SubjecttotheprovisionsofthelawsofIndonesiaregardingallowanceasacreditagainstIndonesiantaxoftaxpayableinaterritoryoutsideIndonesia (which shall not affect the general principle hereof), taxpayable under the laws of Singapore and in accordance with thisAgreement, whether directly or by deduction, on profits or incomefromsourceswithinSingaporeshallbeallowedasacreditagainstanyIndonesiantaxcomputedbyreferencetothesameprofitsorincomebyreferencetowhichtheSingaporetaxiscomputed.Thecreditshallnot, however, exceed that part of the Indonesian tax, as computedbeforethecreditisgiven,whichisappropriatetosuchitemofincome.

2. SubjecttotheprovisionsofthelawsofSingaporeregardingallowanceasacreditagainstSingaporetaxoftaxpayableinaterritoryoutsideSingapore (which shall not affect the general principle hereof), taxpayable under the laws of Indonesia and in accordance with thisAgreement, whether directly or by deduction, on profits or incomefromsourceswithinIndonesiashallbeallowedasacreditagainstanySingaporetaxcomputedbyreferencetothesameprofitsor incomebyreferencetowhichtheIndonesiantaxiscomputed.Thecreditshallnot, however, exceed that part of the Singapore tax, as computedbeforethecreditisgiven,whichisappropriatetosuchitemofincome.

Article24NON-DISCRIMINATION

1. ThenationalsofaContractingStateshallnotbesubjectedintheotherContracting State to any taxation or any requirement connectedtherewith,whichisotherormoreburdensomethanthetaxationandconnectedrequirementstowhichnationalsofthatotherState inthesame circumstances and under the same conditions are ormay besubjected.

2. ThetaxationonapermanentestablishmentwhichanenterpriseofaContractingStatehasintheotherContractingStateshallnotbelessfavourably levied in that other State than the taxation levied onenterprisesofthatotherStatecarryingonthesameactivities inthesamecircumstancesandunderthesameconditions.

3. Enterprises of a Contracting State, the capital of which is wholly orpartly owned or controlled, directly or indirectly, by one or moreresidentsoftheotherContractingState,shallnotbesubjectedinthefirst-mentionedState to any taxation of any requirement connectedtherewithwhich isotherormoreburdensomethanthetaxationandconnectedrequirementstowhichothersimilarenterprisesofthefirst-mentionedStateareormaybesubjectedinthesamecircumstancesandunderthesameconditions.

4. Nothing contained in paragraphs 1, 2, and 3 of this Article shall beconstruedas:

(a) obliging a Contracting State to grant to residents of the otherContractingStateanypersonalallowances,reliefsandreductionswhichitgrantstoitsownresidents;

(b) affection any provisions of the tax laws of the respectiveContractingStatesregardingtheimpositionoftaxonnon-residentpersonsassuch;

(c) obliging a Contracting State to grant to nationals of the otherContracting State those personal allowances, reliefs andreductionsfortaxpurposeswhichitgrantstoitsowncitizenswhoarenotresidentinthatStateortosuchotherpersonsasmaybespecifiedinthetaxationlawsofthatState;and

(d) affecting any provisions of the tax laws of the respectiveContracting States regarding any tax concessions granted topersonsfulfillingspecifiedconditions.

5. InthisArticletheterm"taxation"meanstaxeswhicharethesubjectofthisAgreement.

Article25MUTUALAGREEMENTPROCEDURE

1. WherearesidentofaContractingStateconsidersthattheactionsofoneorbothof theContractingStates result orwill result for him intaxation not in accordance with this Agreement, he may,notwithstandingtheremediesprovidedbythenational lawsofthoseStates,presentthecasetothecompetentauthorityoftheContractingState ofwhich he is a resident. The casemust be presentedwithinthreeyearsfromthedateofthefirstnotificationoftheactionresultingintaxationnotinaccordancewiththeprovisionsoftheAgreement.

2. Thecompetentauthorityshallendeavour,iftheobjectionappearstoitto be justified and if it is not itself able to arrive at an appropriatesolution,toresolvethecasebymutualagreementwiththecompetentauthorityoftheotherContractingState,withaviewtotheavoidanceof taxation which is not in accordance with this Agreement. If anagreement is reached, it shall be implemented notwithstanding anytimelimitsprescribedinthetaxlawsoftheContractingStates.

3. ThecompetentauthoritiesoftheContractingStatesshallendeavourtoresolvebymutualagreementanydifficultiesordoubtsarisingas tothe interpretation or application of the Agreement. They may alsoconsult together for theeliminationsofdouble taxation incasesnotprovidedforintheAgreement.

4. ThecompetentauthoritiesoftheContractingStatesmaycommunicatewitheachotherdirectlyforthepurposeofapplyingtheprovisionsofthisAgreement.

Article26EXCHANGEOFINFORMATION

1. The competent authorities or the Contracting States shall exchangesuchinformationasisnecessaryforcarryingouttheprovisionsofthisAgreement for the avoidance of double taxation and prevention ofevasionoftaxescoveredbythisAgreement.Anyinformationsoexchangedshallbetreatedassecretandshallbedisclosed only to any persons or authorities (including a Court orreviewing authority) concerned with the assessment, collection,enforcement or prosecution in respect of, or the determination ofappeals in relation to, the taxes which are the subject of theAgreement.

2. Innocaseshalltheprovisionsofparagraph1beconstruedsoastoimposeonaContractingStatetheobligation:

(a) to carry out administrativemeasures at variancewith the lawsandtheadministrativepracticeofthatoroftheotherContractingState;

(b) tosupplyparticularswhicharenotobtainableunderthelawsorinthe normal course of the administrative of that or of the otherContractingState;

(c) to supply informationwhichwould disclose any trade, businessindustrial,commercialorprofessionalsecretortradeprocess,orinformation, thedisclosureofwhichwouldbecontrary topublicpolicy.

Article27DIPLOMATICAGENTSANDCONSULAROFFICERS

Nothing in this Agreement shall affect the fiscal privileges of diplomaticagentsorconsularofficersunderthegeneralrulesof international laworundertheprovisionsofspecialagreements.

Article28ENTRYINTOFORCE

1. This Agreement shall be ratified by the Governments of theContracting States and the instruments of ratification shall beexchangedatSingaporeassoonaspossible.

2. This Agreement shall enter into force upon the exchange ofinstrumentsofratificationandshallhaveeffect:

(a) inSingaporeinrespectofSingaporetaxfortheyearofassessmentbeginningonorafter1 January in the secondcalendaryear following theyear in which the exchange of instruments of ratification hastakenplaceandsubsequentyearsofassessment;

(b) inIndonesiain respect of Indonesian tax for the tax year beginning one orafter 1 January in the calendar year next following the year inwhichtheexchangeofinstrumentsofratificationhastakenplaceandsubsequenttaxyears.

Article29TERMINATION

ThisAgreement shall remain in forceuntil terminatedby aContractingState. Either Contracting State may terminate the Agreement throughdiplomaticchannels,bygivingwrittennoticeofterminationonorbeforetheThirtiethdayofJuneofanycalendaryearfollowingaftertheperiodoffiveyearsfromtheyearinwhichtheAgreemententersintoforce.Insuchevent,theAgreementshallceasetohaveeffect:(a) inSingapore

inrespectofSingaporetaxfortheyearofassessmentbeginningonorafter1Januaryinthesecondcalendaryearfollowingtheyearinwhichthenoticeisgivenandsubsequentyearsofassessment;

(b) inIndonesiainrespectofIndonesiantaxforthetaxyearbeginningonorafter1January in the calendar year next following the year in which thenoticeisgivenandsubsequenttaxyears.

IN WITNESS WHEREOF the undersigned, being duly authorized thereto,havesignedthisAgreement.Done in duplicate at Singapore on this eighth day of May 1990, in theEnglishlanguage.

FortheGovernmentoftheRepublicofIndonesia

TUKSETYOHADI

FortheGovernmentoftheRepublickofSingapore

HSUTSE-KWANG

PROTOCOL

1. AtthetimeofsigningtheAgreementbetweentheGovernmentoftheRepublic of Indonesia and the Government of the Republic ofSingaporefortheAvoidanceofDoubleTaxationandthePreventionofFiscal Evasion with respect to Taxes on Income, both GovernmentshaveagreedthatthefollowingprovisionsshallformanintegralpartoftheAgreement.

2. Inrespectofparagraph2(h)ofArticle5"Permanentestablishment",itisunderstoodthatatimelimitof3monthsshallapplytoanassemblyor installation project performed by a person other than the maincontractor.

3. In connectionwithArticle7 "Businessprofits", nothing in thisArticleshallpreventeitherContractingStatefromimposing,apart fromthecorporateincometax,abranchprofitstaxontheaftertaxprofitsofthepermanentestablishment,providedthatthetaxsoimposedshallnotexceed15%ofsuchamount.

4. InconnectionwithArticle10"Dividends"

(a) NothinginthisArticleshallaffecttheprovisionscontainedinanyproduction sharing contracts relating to the exploitation andproductionofoilandnaturalgaswhichhavebeennegotiatedwiththeGovernmentofIndonesiaortherelevantstateoilcompanyofIndonesia,providedthatacompanywhichisresidentinSingaporederiving incomefromaproductionsharingcontractshallnotbelessfavourablytreatedwithrespecttotaxthanthatleviedonacompany of any third state deriving income from a similarproductionsharingcontract.

(b) Article VII of the Agreement between the Government of theRepublic of Singapore and the Government of Malaysia for theAvoidance of Double Taxation and the Prevention of FiscalEvasionwithrespecttoTaxesonIncomesignedinSingaporeon26thDecember,1968,shallbetakenintoconsideration.

IN WITNESS WHEREOF the undersigned, being duly authorized thereto,havesignedthisProtocol.DONE in duplicate at Singapore on this eighth day of May 1990 in theEnglishlanguage.

FortheGovernmentoftheRepublicofIndonesia

TUKSETYOHADI

FortheGovernmentoftheRepublickofSingapore

HSUTSE-KWANG