Keputusan Presiden Nomor 45 Tahun 1998 tentang PENGESAHAN AIR TRANSPORT AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE LAO PEOPLE'S DEMOCRATIC REPUBLIC

Mengesahkan Air Transport Agreement between the Government of the Republic of Indonesia and the Government of the Lao People's Democratic Republic, yang telah ditandatangani Pemerintah Republik Indonesia di Vientiane, Laos, pada tanggal 20 Pebruari 1997, sebagai hasil perundingan antara Delegasi-delegasi Pemerintah Republik Indonesia dan Pemerintah Republik Demokrasi Rakyat Laos yang salinan naskah aslinya dalam bahasa Inggeris sebagaimana terlampir pada Keputusan Presiden ini.

Keputusan Presiden ini mulai berlaku pada tanggal ditetapkan. Agar … PRESIDEN REPUBLIK INDONESIA Agar setiap orang mengetahuinya, memerintahkan pengundangan Keputusan Presiden ini dengan penempatannya dalam Lembaran Negara Republik Indonesia. Ditetapkan di Jakarta pada tanggal 10 Maret 1998 PRESIDEN REPUBLIK INDONESIA, ttd. SOEHARTO Diundangkan di Jakarta pada tanggal 10 Maret 1998 MENTERI NEGARA SEKRETARIS NEGARA REPUBLIK INDONESIA ttd. MOERDIONO LEMBARAN NEGARA REPUBLIK INDONESIA TAHUN 1998 NOMOR 63 AIR TRANSPORT AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE LAO PEOPLE'S DEMOCRATIC REPUBLIC The Government of the Republic of Indonesia and the Government of the Lao People's Democratic Republic, hereinafter called in this Agreement as the Contracting Parties; BEING Parties to the Convention on International Civil Aviation, opened for signature at Chicago on the seventh day of December, 1944; and DESIRING to conclude an Agreement, supplementary to the said Convention, for the purpose of establishing scheduled air services between and beyond their respective territories; HAVE AGREED AS FOLLOWS : ARTICLE I DEFINITIONS For the purpose of this Agreement, unless the context otherwise requires: 1. The term "Convention" means the Convention on International Civil Aviation, opened for signature at Chicago, on the seventh day of December, 1944, and includes any Annex adopted under Articles 90 of that Convention and any amendment of the Annex or Convention under Articles 90 and 94 thereof insofar as those amendments and Annexes have become effective for both Contracting Parties; 2. the term "Aeronautical Authorities" means, in the case of the Government of the Republic of Indonesia, the Minister of Communications and any person or body authorized to perform funcstions at present exercised by the said Minister or similar functions and in the case of the Government of the Lao People's Democratic Republic the Prime Minister's Office and any person or body authorized to perform functions at present exercised by the said office or similar functions. 3. the term "Territory" means, in the case of Indonesia, the territory of the Republic of Indonesia as defined in its laws and in the case of Lao People's democratic as defined in its laws. 4. the term "Agreement" means this Agreement, its Annex and any amendments thereto; 5. the term "Designated Airline" means, an airline(s) which has been designated and authorized in accordance with Article III of the present Agreement; 6. the term "Air Service", "International Air Service", "Airline" and "Stop for non-traffic purposes" have the meaning respectively assigned to them in Article 96 of the Convention; 7. the term "Specified Routes' means the routes established or to be established in the Annex to this Agreement; 8. ther term "Agreed Services" means the international air services which can be operated, according to provisions of this Agreement, on the specified routes; 9. the term "Tariffs" means the prices to be paid for the carriage of passengers, baggage and freight and the conditions under which those prices apply, including prices and conditions for agency and other auxiliary services, but excluding remuneration or conditions for the carriage of mail; ARTICLE II TRAFFIC RIGHTS 1. Each Contracting Party grants to the other Contracting Party the rights specified in the present Agreement for the purpose of establishing international schedule air services on the routes specified in the appropriate Section of the Annex thereto. 2. The airline(s) of each Contracting Party shall enjoy the following privileges: a. to fly without landing across the territory of the other Contracting Party; b. to make stops in the said territory for non-traffic purposes; and c. to make stops in the said territory at points specified in the Route Schedule of the Annex to this Agreement for the purpose of taking on or putting down, on international traffic, passengers, cargo and mail in accordance with the provisions of the Annex to this Agreement, to or from the territory of either Contracting Party. 3. Nothing in paragraph (2) of this Article shall be deemed to confer on the airline(s) of one Contracting Party the privilege of taking up in the territory of the other Contracting Party, passengers, cargo or mail carried with or without remuneration or hire and destined for another point in the territory of that Contracting Party. 4. Notwithstanding the provisions of paragraphs (1) and (2) of this Article the operation of the agreed services in areas of hostilities or military occupation, or in areas affected thereby, shall, in accordance with Article 9 of the Convention, be subject to the approval of the competent military authorities. ARTICLE III OPERATING AUTHORIZATION 1. Each Contracting Party shall have the right to designate in writing to the other Contracting Party one or more airline for the purpose of operating the agreed service on the specified routes. 2. On receipt of such designation, the other Contracting Party shall, subject to the provision of paragraph (4) and (5) of this Article, without delay grant to the designated airline(s) the appropriate operating authorizations. 3. Each Contracting Party shall have the right, by written notification to the other Contracting Party, to withdraw the designation of any such airline(s) and to designate another one. 4. The airline(s) designated by either Contracting Party may be required to satisfy the other Contracting Party that it is qualified to fulfil the conditions prescribed by the laws and regulations normally and reasonably applied by this Contracting Party to the operation of international air services in conformity with the provisions of the Convention. 5. Each Contracting Party shall have the right to refuse to grant the operating authorization referred to in paragraph (2) of this Article, or to impose such conditions as it may deem necessary on the exercise by a designated airline of the rights specified in Article II of the present Agreement, in any case were the said Contracting Party is not satisfied that substantial ownership and effective control of that airlines are vested in the Contracting Party designating the airline or in its nationals. 6. When an airline(s) has been so designated and authorized, it may at any time begin to operate the agreed services, provided that a tariff established in accordance with the provisions of Article (X) of the present Agreement is in force and an agreement in accordance with the provisions of Article (V) of the present Agreement has been reached in respect of that service. ARTICLE IV SUSPENSION AND REVOCATION 1. Each Contracting Party shall have the right to revoke the operating authorization or to suspend the exercise of the right specified in Article II of the present Agreement by the airline(s) designated by the other Contracting Party, or to impose such conditions as it may deem necessary on the exercise of these rights: a. in any case where it is not satisfied that substantial ownership and effective control of that airline(s) are vested in the Contracting Party designating the airline(s) or in nationals of such Contracting Party, or b. in the case of failure by that airline(s) to comply with the laws or regulations of the Contracting Party granting these rights, or c. in case the airline(s) otherwise fails to operate the agreed services in accordance with the conditions prescribed under the present Agreement. 2. Unless immediate revocation, suspension or imposition of the conditions mentioned in paragraph (1) of this Article is essential to prevent further infringements of laws or regulations, such right shall be exercised only after consultations with the other Contracting Party. In such a case consultations shall begin within a period of sixty (60) days from the date of request made by either Contracting Party for consultations. ARTICLE V CAPACITY 1. The designated airline(s) of each Contracting Party shall, in all respect, enjoy fair and equal opportunity for the carriage of international traffic between and beyond the territories of the two Parties. 2. In operating the agreed services, the airline(s) of each Contracting Party shall take into account the interest of the airline(s) of the other Contracting Party so as not to affect unduly the services which the letter provides on the whole or part of the same route. 3. The capacity to be provided, the frequency of services to be opereted and the nature of air service, that is, transiting through or terminating in the territory of the Contracting Parties shall be agreed between the aeronautical authorities in accordance with the principles laid down in this Article. 4. Any increase in the capacity to be provided or frequency of services to be operated by the designated airline(s) of the other Contracting Party shall be agreed between the aeronautical authorities on the basis of the estimated requirements of traffic between the territories of the two parties and any other traffic to be jointly agreed and determined. Pending such agreement or settlement, the capacity and frequency entitlements already in force shall prevail. 5. The capacity to be provided, the frequency of services to be operated and the nature of air service, that is transiting through or terminating in the territory of the other Contracting Party as agreed to in accordance with the provisions of this Article shall be specified in an exchange of letters between the aeronautical authorities of the Contracting Party. ARTICLE VI CERTIFICATES AND LICENSES 1. Certificates of airworthiness, certificates of competency and licences issued or rendered valid by one Contracting Party and still in force shall be recognized as valid by the other Contracting Party for the purpose of operating the agreed services on the specified routes in the Annex to this Agreement, provided that the requirements under which such certificates and licences were issued or rendered valid are equal to or above the minimum standrs which may be established pursuant to the International Civil Aviation Convention. 2. Each Contracting Party reserves the right, however, of refusing to recognize the validity of the certificates of competency and the licences granted to its own nationals by the other Contracting Party, for the purpose of overflying its own territory. ARTICLE VII AVIATION SECURITY 1. Consistent with their rights and obligations under international law, the Contracting Parties reafirm that their obligation to each other to protect the security of civil aviation against acts of unlawful interference forms an integral part of this Agreement. Without limiting the gererality of the rights and obligations under international law, the Contracting Parties shall in particular act in conformity with the provisions of the Convention on Offences and Certain Other Acts Committed on Board Aircraft, signed at Tokyo on 14 September 1963, the Convention for the Suppression of Unlawful Seizure of Aircraft, signed at the Hague on 16 December 1970, and the Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation, signed at Montreal on 23 September 1971, and any multilateral convention on aviation security which may become binding on both Contracting Parties. 2. The Contracting Parties shall provide upon request all possible necessary assistance to each other to prevent acts of unlawful seizure of civil aircraft and other unlawful acts against the safety of such aircraft, their passengers and crew, airports and air navigation facilities, and any other threat to the security of civil aviation. 3. The Contracting Parties shall, in their mutual relations, act in conformity with the aviation security provisions established by the International Civil Aviation Organization and designated as Annexes to the Convention on International Civil Aviation to the extent that such security provisions are applicable to the Contracting Parties; they shall require that operators of aircraft of their registry or operators of aircraft who have their principal place of business or permanent residence in their territory and the operations of airports in their territory act in conformity with such aviation security provisions. 4. Each Contracting Party agreed that such operators of aircraft may be required to observe the aviation security provisions referred to in the paragraph above required by the other Contracting Party for the entry into, departure from, or while within, the territory of the other Contracting Party. 5. Each Contracting Party shall ensure that adequate measures are effectively applied within its territory to protect the aircraft and to inspect passengers, crew, carry-on items, baggage, cargo and aircraft stores prior to and during boarding or loading. Each Contracting Party shall also give sympathetic consideration to any request from the other Contracting Party for reasonable special security measures to meet a particular threat. 6. When an incident or threat of an incident of unlawful seizure of civil aircraft or other unlawful acts against the safety of such aircraft, their passengers and crew, airports and air navigation facilities accurs, the Contracting Parties shall assist each other by facilitating communications and other appropriate measures intended to terminate rapidly and safely such incident or threat thereof. 7. Accordingly each Contracting Party shall advise the other Contracting Party of any difference between its national regulations and practices and the aforementioned aviation security provisions. Either Contracting Party may request immediate consultations with the oher Contracting Party at any time to discuss any such difference. ARTICLE VIII EXEMPTION FROM CUSTOMS AND OTHER DUTIES 1. Aircraft opereted on international services by the airline(s) designated by each Contrcating Party, as well as their regular equipment, supplies of fuel and lubricants and the aircraft stores (including food, beverages and tobacco) on board such aircraft shall be exempt from all custom duties, inspection fees and other duties or taxes on arriving in the territory of the other Contracting Party, providing such equipment and supplies shall remain on board the aircraft up to such time as they are re-exported. 2. There shall also be exempted from the same duties and taxes with the exception of charges corresponding to the service performed: a. aircraft stores taken on board in the territory of either Contracting Party, within limits fixes by the authorities of the said Contracting Party, and for use on board the aircraft engeged on a specified route of the other Contracting Party; b. spare parts entered into the territory of either Contracting Party for the maintenance or repair of aircraft used on a specified route by the designated airline(s) of the other Contracting Party; c. fuel and lubricants destined to supply aircraft operated on a specified route by the designated airline(s) of the other Contracting Party, even when these suplies are to be used on the part of the journey performed over the territory of the Contracting Parties in which they are taken on board. d. baggage and cargo in direct transit. 3. The normal board equipments, as well as the materials and supplies retained on board the aircraft operated by the designated airline (5) of one Contracting Party may be unloaded in the territory of the other Contracting Party only with the approval of the Customs Authorities of such a territory. In such a case, they will be placed under the supervision of the said authorities until they are re-exported or otherwise disposed of in accordance with the customs regulations. 4. In so far as no duties or other charges are imposed on goods mentioned in paragraphs 1 to 3 of this Article, such goods shall not be subject to any economic prohibitions or restrictions on importation, exportation and transit that may otherwise be applicable unless such prohibition or restriction applies to all airlines including the national airline in respect to certain items mentioned in paragraphs 1 to 3 of this Article. 5. The treatment specified in this Article shall be in addition to and without prejudice to that which each Contracting Party is under obligation to accord under Article 24 of the Convention. ARTICLE IX DIRECT TRANSIT TRAFFIC Subject to the laws and regulations of each Contracting Party, passengers, baggage and cargo in transit across the territory of either Contracting Party shall, in principle, not be subject to more the minimum control. ARTICLE X ESTABLISHMENT OF TARIFFS 1. The tariffs to be charges by the designated airline(s) of one Contracting Party for carriage to or from the territory of the other Contracting Party shall be established at reasonable levels, due regard being paid to all relevant factors, including cost of operation, reasonable profit, and the tariffs of other airline(s). 2. The tariffs referred to in paragraph (1) of this Article shall, if possible, be agreed by the designated airline(s) of both Contrcating Parties, after consultation with the other airline(s) operating over the whole or part of the route, and such agreement shall, wherever possible, be reached by the use of the procedures of the International Air Transport Association for the working out of tariffs. 3. The tariffs so agreed shall be submitted for the approval of the Aeronautical Authorities of the Contracting Parties at least sixty (60) days before the proposed date of their introduction. In special cases, this period may be reduced, subject to the agreement of the said authorities. 4. This approval may be given explicitly. If neither of the Aeronautical Authorities has expressed disapproval within thirty days from the date of submission, in accordance with paragraph (3) of this Article, these tariffs shall be considered as approved. In the even of the period for submission being reduced, as provided for in paragraph (3), the Aeronautical Authorities may agree that the period within which any disapproval must be notified shall be less than thirty (30) days. 5. If a tariff can not be agreed in accordance with paragraph (2) of this Article, or if, during the period applicable in accordance with paragraph (4) of this Article, one Aeronautical Authority gives the other Aeronautical Authority notice of its disapproval of any tariff agreed in accordance with the provisions of paragraph (2). The Aeronautical Authorities of the Contracting Parties shall, after consultation with the Aeronautical Authorities of any other State whose advice they consider useful, endeavour to determine the tariff by mutual agreement. 6. If the Aeronautical Authorities can not agree on any tariff submitted to them under paragraph (3) of this Article or on the determination of any tariff under paragraph (5) of this Article, the dispute shall be settled in accordance with the provisions of Article XVIII in this Agreement. 7. A tariff established in accordance with the provision of this Article shall remain in force until new tariff has been established. Nevertheless, a tariff shall not be prolonged by virtue of this paragraph for more than twelve months after the date on which it otherwise would have expired. ARTICLE XI FINANCIAL PROVISIONS 1. Subject to their foreign currency exchange control, each Contracting Party grants the designated airline(s) of the other Contracting Party the right of free transfer of the excess of receipts over expenditure, earned on its territory in connection with the carriage of passengers, baggage, mail, freight by the designated airline(s) of the other Contracting Party, in a freely convertible currency at the prevailing rate of exchange. Transfer shall be effected immediately, at the latest within sixty (60) days after the date of request. 2. Where a special payment agreement exists between the Contracting Parties, payments shall be effected in accordance with the provision of that agreement. ARTICLE XII TECHNICAL AND COMMERCIAL ACTIVITIES Subject to the laws and regulations of the other Contracting Party, the designated airline (5) of each Contracting Party shall have an equal opportunity: 1. to open its representation in the territory of the other Contracting Party and in this purpose to enter, reside and employ in the other Contracting Party, or to bring in and maintain in the territory of the other Contracting Party those of their own managerial and other specialist staff who are required for the provision of air services; 2. to issue all kinds of documents of carriage, and to advertise and to promote sales in the territory of the other Contracting Party, to engage in the sale of air transportation in that territory directly or at the airline discretion, through its agents. Each airline shall have the right to sell such transportation in the currency of that territory or in freely convertible currencies of other countries, in accordance with the monetary regulations of each Government. ARTICLE XIII LAWS AND REGULATIONS 1. The laws and regulations of each Contrcating Party controlling the admission to or departure from its own territory of aircraft engaged in international air services or related to the operation of aircraft while within its territory, shall be applied to the aircraft of the designated airline(s) of the other Contracting Party. 2. The laws and regulations controlling the entry, stay and departure of passengers, crew, baggage, mail and cargo, over the territory of each Contracting Party, and also the regulations related to the requirements of entry and departure from the country, immigration, customs and sanitary rules, shall be applied in such territory to the operations of the designated airline(s) of the other Contracting Party. ARTICLE XIV COMPUTER RESERVATION SYSTEMS 1. A Computer Reservation Systems (CRS) means a computerized system containing information about airline (5) schedule, seat availability, fares and related services and through which reservations can be made and/or tickets can be issued and which makes some or all of these facilities available to travel agents. 2. Contracting Parties agree that: a. the interest of cunsumers of air transport products will be protected from any misuse of such information including misleading presentation thereof; b. the designated airline(s) of a Contracting Party and the airline's agents will have unrestricted and non-discriminatory access to and use of the CRS('s) in the territory of the other Contracting Party; c. in this respect the CRS-Code of Conduct adopted by the EEC will prevail in the territory of the EEC, whereas in the territory of the other Contracting Party the ICAO CRS-Code of Conduct will be applicable. Pending the adoption of this ICAO Code of Conduct by the ICAO Assembly the ICAO Guidelines on CRS, as published in ICAO Circular 214-AT/84, will apply in the territory of that other Contracting Party. 3. A Contracting Party guarantees to the CRS('s) chosen as its primary system by the designated carrier of the other Contracting Party free and unimpaired access in its territory. Neither Contracting Party will, in its territory, impose or permit to be imposed on the CRS of the designated carrier of the other Contracting Party more stringent requirements than those imposed on the CRS of its own designated carrier, such as with respect to : a. the operation and sale of the CRS services including CRS display and editing rules; and b. the access to and use of communications facilities, selection and use of technical hardware and software or the installation of hardware. ARTICLE XV CONSULTATIONS 1. In a spirit of close co-operation, the Aeronautical Authorities of the Contracting Parties shall consult each from time to time with a view to ensuring the implementation of, and satisfactory compliance with, the provisions of the present Agreement and the Annex thereto. 2. Such consultations shall begin within a period of sixty (60) days from the date of receipt of the request, unless otherwise agreed by the Contracting Parties. ARTICLE XVI MODIFICATIONS 1. If either Contracting Party considers it desirable to modify any of the provisions of this Agreement, it may request consultation with the other Contracting Party. Such consultation may be between the Aeronautical Authorities and may be conducted by discussions or corespondence and shall begin within a period of sixty (60) days from the date of request. Any modifications so agreed shall come into force when they have been confirmed by an exchange of diplomatic notes. 2. Modification to the Annex to this Agreement may be made by direct agreement between the competent Aeronautical Authorities of the Contracting Parties and confirmed by exchange of diplomatic notes. ARTICLE XVII CONFORMITY WITH MULTILATERAL CONVENTIONS In the event of the conclusion of any general multilateral conventions concerning air transport by which both Contracting Parties become bound, the present Agreement shall be amended so as to conform with the provisions of such convention. ARTICLE XVIII SETTLEMENT OF DISPUTES 1. If any dispute arises between the Contracting Parties to the interpretation or application of this Agreement it shall be settled by direct consultations in the spirit of close cooperation and mutual understanding between aeronautical authorities of both Contracting Parties. In the case, where such direct consultations are not successful, both Contracting Parties shall settle the dispute through diplomatic channels. 2. If the Contracting Parties fail to reach a settlement by negotiations, the dispute may, at the request of either Contracting Party, be submitted for decision to a tribunal of three arbitrators, one to be nominated by each Contracting Party and the third to be appointed by the two so nominated. Each of the Contracting Parties shall nominate an arbitrator within a period of sixty (60) days from the date of receipt by either Contracting Party from the other of a notice through the diplomatic channel requesting arbitration of the dispute, and the third arbitrator shall be appointed within a further period of sixty (60) days. If either of the Contracting Parties fails to nominate and arbitrator within the period specified, or if the third arbitrator is not appointed within the period specified, the President of the Council of the International Civil Aviation Organisation may be requested by either Contracting Party to appoint an abitrator or arbitrators as the case requires. 3. The Contracting Parties undertake to comply with any decision given under paragraph (2) of this Article. 4. If and so long as either Contracting Party or a designated airline(s) of either Contracting party fails to comply with a decision given under paragraph (2) of this Article, the other Contracting Party may limit, withold or revoke any rights or privileges which it has granted by virtue of the present Agreement to the Contracting Party in default or to the designated airline or airlines of that Contracting Party or to the designated airline(s) in default. ARTICLE XIX EXCHANGE OF STATISTICAL DATA The Aeronautical Authority of either Contracting Party shall supply to the Aeronautical Authority of the other Contracting Party upon their request such informations or other statements of statistics as may be reasonably required for the purpose of reviewing the capacity provided on the agreed services by the designated airline(s) of the Contracting Parties. ARTICLE XX TERMINATION Either Contracting Party may at any time give written notice through diplomatic channels to the other Contracting Party of its decision to terminate the present Agreement; such notice shall be simultaneously communicated to the International Civil Aviation Organization. In such case the Agreement shall terminate twelve (12) months after the date of the notice by the other Contracting Party, unless the notice to terminate is withdrawn by agreement before the expiry of this period. In the absence of acknowledgement of receipt by the other Contracting Party, notice shall be deemed to have been received fourteen (14) days after the receipt of the notice by the International Civil Aviation Organization. ARTICLE XXI REGISTRATION This Agreement and all amendments thereto shall be registered with the International Civil Aviation Organization. ARTICLE XXII ENTRY INTO FORCE This Agreement shall enter into force on the first day of the second month after the Contracting Parties have notified each other through diplomatic channels that the procedures necessary for the entry into force of this Agreement have been completed. IN WITNESS WHEREOF, the undersigned, being duly authorized thereto by their respective Governments, have signed the present Agreements. DONE in duplicate at Vientiane on this twentieth day of February in the year one thousand nine hundred and ninety seven, in the English language, both texts being equally authentic. FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF THE THE REPUBLIC OF INDONESIA LAO PEOPLE'S DEMOCRATIC REPUBLIC ALI ALATAS SOMSAVAT LENGSAVAD

Minister for Foreign Affairs Minister for Foreign Affairs ANNEX 1. Section 1 Routers to be served by the designated airline(s) of the Republic of Indonesia in both directions: Points of Intermediate Points of Points Departure Points Destination Beyond

Points in Any (3) points Vientiane Any (3) Indonesia points 2. Section II Routers to be served by the designated airline(s) of the Lao PDR Points of Intermediate Points of Points Departure Points Destination Beyond

Points in Any (3) points Jakarta Any (3) Lao PDR points 3. The designated airline(s) of either Contracting Party may, on any or all flights omit calling at any of the above points, provided that the agreed services on this route start and terminate in the territory of that Contracting party; 4. The right of the designated airline(s) of either Contracting Party to transport passengers, cargo and mail between the points in the territory of either Contracting Party and the points in the territory of the Third Parties shall be subject to an agreement between the Aeronautical Authorities of the Contracting Parties.