AGREEMENT BETWEEN
                THE REPUBLIC OF INDONESIA
                AND
                THE FEDERAL REPUBLIC OF GERMANY
FOR
THE
                AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND CAPITAL
Article 1
                PERSONAL SCOPE
This Agreement shall apply to persons
              who are residents of one or both of the Contracting States.
Article 2
                TAXES COVERED
| 1. | This Agreement shall apply totaxes on income and on capital imposed on behalf of a Contracting State, of a Land or a political
 subdivision or local authority thereof, irrespective of the manner in which they are levied.
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| 2. | There shall be regarded astaxes on income and on capital all taxes imposed on total income, on total capital, or on elements
 of income or of capital, including taxes on gains from the alienation of movable or immovable
 property, the payroll tax, and taxes on capital appreciation.
 | 
| 3. | The existing taxes to whichthis Agreement shall apply are, in particular:
 | 
| (a) | in the Federal Republic of Germany :
 the Einkommensteuer (income tax);
 the Körperschaftsteuer (corporation tax);
 the Vermögensteuer (capital tax) and
 the Gewerbesteuer (trade tax)
 (hereinafter referred to as “German tax”);
 | 
| (b) | in Indonesiathe income tax imposed under the Undang-undang Pajak Penghasilan 1984 (Law No. 7 of 1983) and to
 the extent provided in such income tax law, the company tax imposed under the Ordonansi Pajak
 Perseroan 1925 (State Gazette No. 319 of 1925 as lastly amended by Law No. 8 of 1970) and the tax
 imposed under the Undang-undang Pajak atas Bunga, Dividen dan Royalty 1970 (Law No. 10 of 1970)
 (hereinafter referred to as “Indonesian tax”). | 
| 4. | The Agreement shall also applyto any identical or substantially similar taxes on income which are imposed after the date of
 signature of the Agreement in addition to, or in place of, those referred to in paragraph 3. The
 competent authorities of the Contracting States shall notify each other of any substantial changes
 which have been made in their respective taxation laws.
 | 
Article 3
                GENERAL DEFINITIONS
| 1. | For the purposes of thisAgreement, unless the context otherwise requires :
 | 
| (a) | the term “Federal Republic ofGermany”, if used in a geographical sense, means the area in which the tax law of the Federal
 Republic of Germany is in force, as well as the areas of the sea, the sea-bed and its subsoil
 adjacent to the territorial sea of the Federal Republic of Germany, over which the Federal
 Republic of Germany exercises sovereign rights and jurisdiction in accordance with international
 law and with its national legislation;
 | 
| (b) | the term “Indonesia” comprisesthe territory of the Republic of Indonesia as defined in its law and such parts of the continental
 shelf and the adjacent seas, over which the Republic of Indonesia has sovereignty, sovereign
 rights or other rights in accordance with international law;
 | 
| (c) | the terms “a ContractingState” and “the other Contracting State” mean Indonesia or the Federal Republic of Germany as the
 context requires;
 | 
| (d) | the term “person” means anindividual and a company;
 | 
| (e) | the term “company” means anybody corporate or any entity which is treated as a body corporate for tax purposes;
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| (f) | the terms “enterprise of aContracting State” and “enterprise of the other Contracting State” mean respectively an enterprise
 carried on by a resident of a Contracting State and an enterprise carried on by a resident of the
 other Contracting State;
 | 
| (g) | the term “national” means: | 
| (aa) | in respect of the FederalRepublic of Germany any German within the meaning of Article 116, paragraph (1), of the Basic Law
 for the Federal Republic of Germany and any legal person, partnership and association deriving its
 status as such from the law in force in the Federal Republic of Germany;
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| (bb) | in respect of the Republic ofIndonesia any national of Indonesia and any legal person, partnership and association deriving its
 status as such from the law in force in the Republic of Indonesia;
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| (h) | the term “internationaltraffic” means any transport by a ship or aircraft operated by an enterprise of a Contracting
 State, except when the ship or aircraft is operated solely between places in the other Contracting
 State;
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| (i) | the term “competent authority”means in the case of the Federal Republic of Germany the Federal Ministry of Finance, and in the
 case of the Republic of Indonesia the Minister of Finance or his authorized representative.
 | 
| 2. | As regards the application ofthe Agreement by a Contracting State any term not defined therein shall, unless the context
 otherwise requires, have the meaning which it has under the laws of that State concerning the
 taxes to which the Agreement applies.
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Article 4
                RESIDENT
| 1. | For the purposes of thisAgreement, the term “resident of a Contracting State” means any person who, under the laws of that
 State, is liable to tax therein by reason of his domicile, residence, place of management or any
 criterion of a similar nature. But this term does not include any person who is liable to tax in
 that State in respect only of income from sources in that State or capital situated therein.
 | 
| 2. | Where by reason of theprovisions of paragraph 1 an individual is a resident of both Contracting States, then his status
 shall be determined as follows:
 | 
| (a) | he shall be deemed to be aresident of the State in which he has a permanent home available to him; if he has a permanent
 home available to him in both States, he shall be deemed to be a resident of the State with which
 his personal and economic relations are closer (centre of vital interests);
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| (b) | if the State in which he hashis centre of vital interests cannot be determined, or if he has not a permanent home available to
 him in either State, he shall be deemed to be a resident of the State in which he has an habitual
 abode;
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| (c) | if he has an habitual abode inboth States or in neither of them, the competent authorities of the Contracting States shall
 settle the question by mutual agreement.
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| 3. | Where by reason of theprovisions of paragraph 1 a company is a resident of both Contracting States, then it shall be
 deemed to be a resident of the State in which its place of effective management is situated.
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Article 5
                PERMANENT ESTABLISHMENT
| 1. | For the purposes of thisAgreement, the term “permanent establishment” means a fixed place of business through which the
 business of an enterprise is wholly or partly carried on.
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| 2. | The term “permanentestablishment” includes especially:
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| (a) | a place of management; | 
| (b) | a branch; | 
| (c) | an office; | 
| (d) | a factory; | 
| (e) | a workshop, and | 
| (f) | a mine, an oil or gas well, aquarry or any other place of extraction of natural resources.
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| 3. | A building site orconstruction or installation project constitutes a permanent establishment only if it lasts more
 than six months.
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| 4. | Notwithstanding the precedingprovisions of this Article, the term “permanent establishment” shall be deemed not to include:
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| (a) | the use of facilities solelyfor the purpose of storage or display of goods or merchandise belonging to the enterprise;
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| (b) | the maintenance of a stock ofgoods or merchandise belonging to the enterprise solely for the purpose of storage or display;
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| (c) | the maintenance of a stock ofgoods or merchandise belonging to the enterprise solely for the purpose of processing by another
 enterprise;
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| (d) | the maintenance of a fixedplace of business solely for the purpose of purchasing goods or merchandise, or of collecting
 information, for the enterprise;
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| (e) | the maintenance of a fixedplace of business solely for the purpose of advertising, for the supply of information, for
 scientific research or for similar activities which have a preparatory or auxiliary character, for
 the enterprise;
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| (f) | the maintenance of a fixedplace of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e),
 provided that the overall activity of the fixed place of business resulting from this combination
 is of a preparatory or auxiliary character.
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| 5. | Notwithstanding the provisionsof paragraphs 1 and 2, where a person — other than an agent of an independent status to whom
 paragraph 7 applies — is acting in a Contracting State on behalf of an enterprise of the other
 Contracting State, that enterprise shall be deemed to have a permanent establishment in the
 first-mentioned Contracting State in respect of any activities which that person undertakes for
 the enterprise, if such a person:
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| (a) | has and habitually exercisesin that State an authority to conclude contracts in the name of the enterprise, unless the
 activities of such person are limited to those mentioned in paragraph 4 which, if exercised
 through a fixed place of business, would not make this fixed place of business a permanent
 establishment under the provisions of that paragraph; or
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| (b) | has no such authority, buthabitually maintains in the first- mentioned State a stock of goods or merchandise from which he
 regularly delivers goods or merchandise on behalf of the enterprise.
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| 6. | An insurance enterprise of aContracting State shall, except with regard to reinsurance, be deemed to have a permanent
 establishment in the other Contracting State if it collects premiums in that other State or
 insures risks situated therein through an employee or through a representative who is not an agent
 of an independent status within the meaning of paragraph 7.
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| 7. | An enterprise of a ContractingState shall not be deemed to have a permanent establishment in the other Contracting State merely
 because it carries on business in that other State through a broker, general commission agent or
 any other agent of an independent status, provided that such persons are acting in the ordinary
 course of their business. However, when the activities of such an agent are devoted wholly or
 almost wholly on behalf of that enterprise, he will not be considered an agent of an independent
 status within the meaning of this paragraph.
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| 8. | The fact that a company whichis a resident of a Contracting State controls or is controlled by a company which is a resident of
 the other Contracting State or which carries on business in that other State (whether through a
 permanent establishment or otherwise), shall not of itself constitute either company a permanent
 establishment of the other.
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Article 6
                INCOME FROM IMMOVABLE PROPERTY
| 1. | Income derived by a residentof a Contracting State from immovable property (including income from agriculture or forestry)
 situated in the other Contracting State may be taxed in that other State.
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| 2. | The term “immovable property”shall have the meaning which it has under the law of the Contracting State in which the property
 in question is situated. The term shall in any case include property accessory to immovable
 property, livestock and equipment used in agriculture and forestry, rights to which the provisions
 of general law respecting landed property apply, usufruct of immovable property and rights to
 variable or fixed payments as consideration for the working of, or the right to work, mineral
 deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as
 immovable property.The term immovable property shall have the meaning which it has under the law
 of the Contracting State in which the property in question is situated.
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| 3. | The provisions of paragraph 1shall apply to income derived from the direct use, letting, or use in any other from of immovable
 property.
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| 4. | The provisions of paragraph 1and 3 shall also apply to the income from immovable property of a enterprise and to income from
 immovable property used for the performance of independent personal services.
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Article 7
                BUSINESS PROFITS
| 1. | The profits of an enterpriseof a Contracting State shall be taxable only in that State unless the enterprise carries on
 business in the other Contracting State through a permanent establishment situated therein. If the
 enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the
 other State but only so much of them as is attributable to that permanent establishment.
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| 2. | Subject to the provisions ofparagraph 3, where an enterprise of a Contracting State carries on business in the other
 Contracting State through a permanent establishment situated therein, there shall in each
 Contracting State be attributed to that permanent establishment the profits which it might be
 expected to make if it were a distinct and separate enterprise engaged in the same or similar
 activities under the same or similar conditions and dealing wholly independently with the
 enterprise of which it is a permanent establishment.
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| 3. | In determining the profits ofa permanent establishment, there shall be allowed as deductions expenses which are incurred for
 the purposes of the permanent establishment, including executive and general administrative
 expenses so incurred, whether in the State in which the permanent establishment is situated or
 elsewhere.
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| 4. | In the absence of appropriateaccounting or other data permitting the determination of the profits to be attributed to a
 permanent establishment, the tax may be assessed in the Contracting State in which the permanent
 establishment is situated in accordance with the laws of that State, in particular regard being
 had to the normal profits of similar enterprises engaged in the same or similar conditions,
 provided that, on the basis of the available information, the determination of the profits of the
 permanent establishment is consistent with the principles stated in this Article.
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| 5. | No profits shall be attributedto a permanent establishment by reason of the mere purchase by that permanent establishment of
 goods or merchandise for the enterprise.
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| 6. | For the purposes of thepreceding paragraphs, the profits to be attributed to the permanent establishment shall be
 determined by the same method year by year unless there is good and sufficient reason to the
 contrary.
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| 7. | Where profits include items ofincome which are dealt with separately in other Articles of this Agreement, then the provisions of
 those Articles shall not be affected by the provisions of this Article.
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Article 8
                SHIPPING AND AIR TRANSPORT
| 1. | Profits from the operation ofships or aircraft in international traffic derived by a resident of a Contracting State shall be
 taxable only in that State.
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| 2. | The provisions of paragraph 1shall also apply to profits from the participation in a pool, a joint business or an international
 operating agency.
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Article 9
                ASSOCIATED ENTERPRISES
Where:
| (a) | an enterprise of a ContractingState participates directly or indirectly in the management, control or capital of an enterprise
 of the other Contracting State, or
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| (b) | the same persons participatedirectly or indirectly in the management, control or capital of an enterprise of a Contracting
 State and an enterprise of the other Contracting State,
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and in either case conditions are made or imposed
              between the two enterprises in their commercial or financial relations which differ from those which would
              be made between independent enterprises, then any profits which would, but for those conditions, have
              accrued to one of the enterprises but, by reason of those conditions, have not so accrued, may be included
              in the profits of that enterprise and taxed accordingly.
             
Article 10
                DIVIDENDS
| 1. | Dividends paid by a companywhich is a resident of a Contracting State to a resident of the other Contracting State may be
 taxed in the Contracting State of which the company paying the dividends is a resident and
 according to the laws of that State, but the tax so charged shall not exceed:
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| (a) | 10% of the gross amount of thedividends if the recipient is a company (excluding partnerships) which owns directly at least 25%
 of the capital of the company paying the dividends;
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| (b) | in all other cases, 15% of thegross amount of the dividends if the recipient is the beneficial owner of the dividends.
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| 2. | The term “dividends” as usedin this Article means:
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| (a) | dividends on shares includingincome from shares, “jouissance” shares or “jouissance” rights, mining shares, founders’ shares or
 other rights, not being debt-claims, participating in profits; and
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| (b) | other income which issubjected to the same taxation treatment as income from shares by the laws of the State of which
 the company making the distribution is a resident, and, for the purpose of taxation in the Federal
 Republic of Germany, income derived by a sleeping partner (“stiller Gesellschafter”) from his
 participation as such and distributions on certificates of an investment fund or investment trust.
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| 3. | The provisions of paragraph 1shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State,
 carries on business in the other Contracting State of which the company paying the dividends is a
 resident, through a permanent establishment situated therein, or performs in that other State
 independent personal services from a fixed base situated therein, and the holding in respect of
 which the dividends are paid is effectively connected with such permanent establishment or fixed
 base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
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| 4. | Where a company which is aresident of a Contracting State derives profits or income from the other Contracting State, that
 other State may not impose any tax on the dividends paid by the company, except insofar as such
 dividends are paid to a resident of that other State or insofar as the holding in respect of which
 the dividends are paid is effectively connected with a permanent establishment or a fixed base
 situated in that other State, nor subject the company’s undistributed profits to a tax on the
 company’s undistributed profits, even if the dividends paid or the undistributed profits consist
 wholly or partly of profits or income arising in such other State.
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| 5. | Notwithstanding any otherprovisions of this Agreement where a company which is a resident of a Contracting State has a
 permanent establishment in the other Contracting State, the profits of the permanent establishment
 may be subjected to an additional tax in that other State in accordance with its law, but the
 additional tax so charged shall not exceed 10% of the amount of such profits after deducting
 therefrom income tax and other taxes on income imposed thereon in that other State.
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Article 11
                INTEREST
| 1. | Interest arising in aContracting State and paid to a resident of the other Contracting State may be taxed in the
 Contracting State in which it arises and according to the laws of that State, but the tax so
 charged shall not exceed 10% of the gross amount of the interest if the recipient is the
 beneficial owner of the interest.
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| 2. | Notwithstanding the provisionsof paragraph 1:
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| (a) | interest arising in theFederal Republic of Germany and paid to the Government or the Central Bank of Indonesia shall be
 exempt from German tax;
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| (b) | interest arising in theRepublic of Indonesia and paid in consideration of a loan guaranteed by Hermes-Deckung or paid to
 the Government of the Federal Republic of Germany, the Deutsche Bundesbank, the Kreditanstalt für
 Wiederaufbau or the Deutsche Finanzierungsgesellschaft für Beteiligungen in Entwicklungsländern
 shall be exempt from Indonesian tax.
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| 3. | The competent authorities ofthe Contracting States may agree from time to time to grant exemption as provided for in paragraph
 2 to other financial institutions, the capital of which is wholly owned by the Government of the
 other Contracting State.
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| 4. | The term “interest” as used inthis Article means income from debt-claims of every kind, whether or not secured by a mortgage and
 whether or not carrying a right to participate in the debtor’s profits, and in particular, income
 from government securities and income from bonds or debentures, including premiums and prizes
 attaching to such securities, bonds or debentures, as well as income assimilated to income from
 money lent by the taxation laws of the State in which the income arises, including interest on
 deferred payment sales.
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| 5. | The provisions of paragraphs 1and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting
 State, carries on business in the other Contracting State in which the interest arises, through a
 permanent establishment situated therein, or performs in that other State independent personal
 services from a fixed base situated therein, and the debt-claim in respect of which the interest
 paid is effectively connected with such permanent establishment or fixed base. In such case the
 provisions of Article 7 or Article 14, as the case may be, shall apply.
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| 6. | Interest shall be deemed toarise in a Contracting State when the payer is that State itself, a Land, a political subdivision,
 a local authority or a resident of that State. Where, however, the person paying the interest,
 whether he is a resident of a Contracting State or not, has in a Contracting State a permanent
 establishment or a fixed base in connection with which the indebtedness on which the interest is
 paid was incurred, and such interest is borne by such permanent establishment or fixed base, then
 such interest shall be deemed to arise in the State in which the permanent establishment or fixed
 base is situated.
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| 7. | Where, by reason of a specialrelationship between the payer and the beneficial owner or between both of them and some other
 person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds
 the amount which would have been agreed upon by the payer and the beneficial owner in the absence
 of such relationship, the provisions of this Article shall apply only to the last-mentioned
 amount. In such case, the excess part of the payments shall remain taxable according to the laws
 of each Contracting State, due regard being had to the other provisions of this Agreement.
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Article 12
                ROYALTIES AND FEES FOR TECHNICAL SERVICES
| 1. | Royalties and fees fortechnical services arising in a Contracting State and paid to a resident of the other Contracting
 State may be taxed in the Contracting State in which they arise and according to the laws of that
 State, but if the recipient is the beneficial owner of the royalties or of the fees for technical
 services the tax so charged shall not exceed:
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| (a) | in the case of royalties asdefined in paragraph 2 sub- paragraph (a) 15% of the gross amount of such royalties;
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| (b) | in the case of royalties asdefined in paragraph 2 sub- paragraph (b) 10% of the gross amount of such royalties; and
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| (c) | in the case of fees fortechnical services 7.5% of the gross amount of such fees.
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| 2. | The term “royalties” as usedin this Article means payments of any kind received as a consideration:
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| (a) | for the use of, or the rightto use, any copyright of literary, artistic or scientific work (including cinematographic films
 and films or tapes for radio or television broadcasting), any patent, trade mark, design or model,
 plan, secret formula or process; or
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| (b) | for the use of, or the rightto use, industrial, commercial, or scientific equipment, or for information concerning industrial,
 commercial or scientific experience.
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| 3. | The term “fees for technicalservices” as used in this Article means payments of any kind to any person, other than payments to
 an employee of the person making the payments, in consideration for any services of a managerial,
 technical or consultancy nature rendered in the Contracting State of which the payer is a
 resident.
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| 4. | The provisions of paragraph 1of this Article shall not apply if the beneficial owner of the royalties or fees for technical
 services, being a resident of a Contracting State, carries on business in the other Contracting
 State in which the royalties or fees for technical services arise through a permanent
 establishment situated therein, or performs in that other State independent personal services from
 a fixed base situated therein, and the right, property or contract in respect of which the
 royalties or fees for technical services are paid is effectively connected with such permanent
 establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case
 may be, shall apply.
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| 5. | Royalties and fees fortechnical services shall be deemed to arise in a Contracting State when the payer is that State
 itself, a Land, a political subdivision, a local authority or a resident of that State. Where,
 however, the person paying the royalties or fees for technical services, whether he is a resident
 of a Contracting State or not, has in a Contracting State a permanent establishment or fixed base
 in connection with which the obligation to make the payments was incurred, and the payments are
 borne by that permanent establishment or fixed base, then the royalties or fees for technical
 services shall be deemed to arise in the Contracting State in which the permanent establishment or
 fixed base is situated.
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| 6. | Where, by reason of a specialrelationship between the payer and the beneficial owner or between both of them and some other
 person, the amount of the royalties or fees for technical services paid exceeds, for whatever
 reason, the amount which would have been agreed upon by the payer and the beneficial owner in the
 absence of such relationship, the provisions of this Article shall apply only to the
 last-mentioned amount. In such case, the excess part of the payments shall remain taxable
 according to the laws of each Contracting State, due regard being had to the other provisions of
 this Agreement.
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Article 13
                CAPITAL GAINS
| 1. | Gains derived by a resident ofa Contracting State from the alienation of immovable property situated in the other Contracting
 State may be taxed in that other State.
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| 2. | Gains from the alienation ofmovable property forming part of the business property of a permanent establishment which an
 enterprise of a Contracting State has in the other Contracting State or of movable property
 pertaining to a fixed base available to a resident of a Contracting State in the other Contracting
 State for the purpose of performing independent personal services, including such gains from the
 alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed
 base, may be taxed in that other State.
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| 3. | Gains derived by a resident ofa Contracting State from the alienation of aircraft operated in international traffic or movable
 property pertaining to the operation of such aircraft shall be taxable only in that State.
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| 4. | Gains from the alienation ofany property other than that referred to in paragraphs 1 to 3 shall be taxable only in the
 Contracting State of which the alienator is a resident.
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Article 14
                INDEPENDENT PERSONAL SERVICES
| 1. | Income derived by a residentof a Contracting State in respect of professional services or other activities of an independent
 character shall be taxable only in that State unless he has a fixed base regularly available to
 him in the other Contracting State for the purpose of performing his activities or he is present
 in that other State for a period or periods exceeding in the aggregate 120 days in the fiscal year
 concerned. If he has such a fixed base or remains in that other State for the aforesaid period or
 periods, the income may be taxed in that other State but only so much of it as is attributable to
 that fixed base or is derived in that other State during the aforesaid period or periods.
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| 2. | The term “professionalservices” includes especially independent scientific, literary, artistic, educational or teaching
 activities as well as the independent activities of physicians, lawyers, engineers, architects,
 dentists and accountants.
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Article 15
                DEPENDENT PERSONAL SERVICES
| 1. | Subject to the provisions ofArticles 16, 18 and 19, salaries, wages and other similar remuneration derived by a resident of a
 Contracting State in respect of an employment shall be taxable only in that State unless the
 employment is exercised in the other Contracting State. If the employment is so exercised, such
 remuneration as is derived therefrom may be taxed in that other State.
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| 2. | Notwithstanding the provisionsof paragraph 1, remuneration derived by a resident of a Contracting State in respect of an
 employment exercised in the other Contracting State shall be taxable only in the first-mentioned
 State, if:
 | 
| (a) | the recipient is present inthe other State for a period or periods not exceeding in the aggregate 183 days in the fiscal year
 concerned, and
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| (b) | the remuneration is paid by,or on behalf of, an employer who is not a resident of the other State, and
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| (c) | the remuneration is not borneby a permanent establishment or a fixed base which the employer has in the other State.
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| 3. | Notwithstanding the precedingprovisions of this Article, remuneration derived in respect of an employment exercised aboard a
 ship or aircraft operated in international traffic by an enterprise of a Contracting State shall
 be taxable only in that State.
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Article 16
                DIRECTORS’ FEES
Directors’ fees and similar payments derived by a
              resident of a Contracting State in his capacity as a member of the board of directors of a company which
              is a resident of the other Contracting State may be taxed in that other State.
Article 17
                ARTISTES AND ATHLETES
| 1. | Notwithstanding the provisionsof Articles 7, 14 and 15, income derived by a resident of a Contracting State as an entertainer,
 such as a theatre, motion picture, radio or television artiste, or a musician, or as an athlete,
 from his personal activities as such exercised in the other Contracting State, may be taxed in
 that other State.
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| 2. | Where income in respect ofpersonal activities exercised by an entertainer or an athlete in his capacity as such accrues not
 to the entertainer or athlete himself but to another person, that income may, notwithstanding the
 provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of
 the entertainer or athlete are exercised.
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| 3. | Notwithstanding the provisionsof paragraphs 1 and 2, income derived by an artiste or athlete from his personal activities as
 such shall be exempt from tax in the Contracting State in which these activities are exercised if
 the activities are exercised within the framework of a visit which is substantially supported by
 the other State, a Land, a political subdivision, a local authority or public institution thereof.
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Article 18
                PENSIONS
Subject to the provisions of Article 19, pensions and
              other similar remuneration arising in a Contracting State and paid to a resident of the other Contracting
              State in consideration of past employment may be taxed in the first-mentioned State.
Article 19
                GOVERNMENT SERVICE
| 1. | Remuneration, includingpensions paid by a Contracting State, a Land, a political subdivision or a local authority thereof
 to an individual in respect of services rendered to that State, Land, subdivision or authority
 shall be taxable only in that State. However, such remuneration shall be taxable only in the other
 Contracting State if services are rendered in that State, if the individual is a resident of that
 State and not a national of the first-mentioned State.
 | 
| 2. | The provisions of Articles 15,16, 17 and 18 shall apply to remuneration and pensions in respect of services rendered in
 connection with a business carried on by a Contracting State, a Land, a political subdivision or a
 local authority thereof.
 | 
| 3. | The provisions of paragraph 1shall likewise apply in respect of remuneration paid, under a development assistance programme of
 a Contracting State, a Land, a political subdivision or a local authority thereof, out of funds
 exclusively supplied by that State, Land, political subdivision or local authority, to a
 specialist or volunteer seconded to the other Contracting State with the consent of that other
 State.
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Article 20
                TEACHERS, RESEARCHERS AND STUDENTS
| 1. | An individual who visits aContracting State at the invitation of that State or of a university, college, school, museum or
 other cultural institution of that State or under an official programme of cultural exchange for a
 period not exceeding two years solely for the purpose of teaching, giving lectures or carrying out
 research at such institution and who is, or was immediately before that visit, a resident of the
 other Contracting State shall be exempt from tax in the first-mentioned State on his remuneration
 for such activity, provided that such remuneration is derived by him from outside that State.
 | 
| 2. | Payments which a student,apprentice or business trainee who is or was immediately before visiting a Contracting State, a
 resident of the other Contracting State and who is present in the first- mentioned State solely
 for the purpose of his education or training, receives for the purpose of his maintenance,
 education or training shall not be taxed in that first-mentioned State, provided that such
 payments are made to him from sources outside that State.
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Article 21
                OTHER INCOME
| 1. | Items of income of a residentof a Contracting State, wherever arising, not dealt with in the foregoing Articles of this
 Agreement shall be taxable only in that State.
 | 
| 2. | Notwithstanding the provisionsof paragraph 1, if a resident of a Contracting State derives income from sources within the other
 Contracting State in the form of lottery prizes, awards and income from the lease of movable
 property, such income may be taxed in the other Contracting State.
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Article 22
                CAPITAL
| 1. | Capital represented byimmovable property, owned by a resident of a Contracting State and situated in the other
 Contracting State, may be taxed in that other State.
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| 2. | Capital represented by movableproperty forming part of the business property of a permanent establishment which an enterprise of
 a Contracting State has in the other Contracting State or by movable property pertaining to a
 fixed base available to a resident of a Contracting State in the other Contracting State for the
 purpose of performing independent personal services, may be taxed in that other State.
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| 3. | Ships and aircraft operated ininternational traffic by a resident of a Contracting State and movable property pertaining to the
 operation of such ships or aircraft, shall be taxable only in that State.
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| 4. | All other elements of capitalof a resident of a Contracting State shall be taxable only in that State.
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Article 23
                RELIEF FROM DOUBLE TAXATION
| 1. | Tax shall be determined in thecase of a resident of the Federal Republic of Germany as follows:
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| (a) | Unless foreign tax credit isto be allowed under sub-paragraph (b), there shall be exempted from German tax any item of income
 arising in the Republic of Indonesia and any item of capital situated within Indonesia, which,
 according to this Agreement, may be taxed in the Republic of Indonesia. The Federal Republic of
 Germany, however, will take into account in the determination of its rate of tax the items of
 income and capital so exempted.
 In the case of dividends exemption shall apply only to such dividends as are 
                      paid to a company (not including partnerships) being a resident of the Federal Republic of Germany 
                      by a company being a resident of the Republic of Indonesia at least 25% of the capital of which is 
                      owned directly by the German company.
 There shall be exempted from taxes on capital any shareholding thedividends of which are exempted or, if paid, would be exempted according to the immediately
 foregoing sentence.
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| (b) | Subject to the provisions ofGerman tax law regarding credit for foreign tax, there shall be allowed as a credit against German
 income, corporation and capital tax payable in respect of the following items of income arising in
 the Republic of Indonesia and the items of capital situated there the Indonesian tax paid under
 the laws of Indonesia and in accordance with this Agreement on:
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|  | (aa) | dividends not dealt with insub-paragraph (a);
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| (bb) | interest; | 
| (cc) | royalties and fees fortechnical services;
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| (dd) | directors’ fees; | 
| (ee) | income in the meaning ofArticle 21 paragraph 2.
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| (c) | For the purpose of creditreferred to in letter (bb) of sub- paragraph (b) the Indonesian tax shall be deemed to be 10% of
 the gross amount of the interest, if the Indonesian tax is reduced to a lower rate according to
 domestic law, irrespective of the amount of tax actually paid.
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| (d) | The provisions ofsub-paragraph (a) shall not apply to the profits of, and to the capital represented by movable and
 immovable property forming part of the business property of a permanent establishment and to the
 gains from the alienation of such property; to dividends paid by, and to the shareholding in, a
 company; provided that the resident of the Federal Republic of Germany concerned does not prove
 that the receipts of the permanent establishment or company are derived exclusively or almost
 exclusively:
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| (aa) | from producing or sellinggoods or merchandise, giving technical advice or rendering engineering services, or doing banking
 or insurance business, within Indonesia orf
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| (bb) | from dividends paid by one ormore companies, being residents of Indonesia, more than 25% of the capital of which is owned by
 the first-mentioned company, which themselves derive their receipts exclusively or almost
 exclusively from producing or selling goods or merchandise, giving technical advice or rendering
 engineering services, or doing banking or insurance business, within Indonesia.
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| In such a case Indonesian tax payable under the laws of Indonesia and inaccordance with this Agreement on the above- mentioned items of income and capital shall, subject
 to the provisions of German tax law regarding credit for foreign tax, be allowed as a credit
 against German income or corporation tax payable on such items of income or against German capital
 tax payable on such items of capital.
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| 2. | Tax shall be determined in thecase of resident of the Republic of Indonesia as follows :
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| (a) | the Republic of Indonesia,when imposing tax on residents of the Republic of Indonesia, may include in the basis upon which
 such tax is imposed the items of income which may be taxed in the Federal Republic of Germany in
 accordance with the provisions of this Agreement;
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| (b) | where a resident of Indonesiaderives income from the Federal Republic of Germany and such income may be taxed in the Federal
 Republic of Germany in accordance with the provisions of this Agreement, the amount of the German
 tax payable in respect of the income shall be allowed as a credit against the Indonesian tax
 imposed on that resident. The amount of credit, however, shall not exceed that part of the
 Indonesian tax which is appropriate to the income.
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Article 24
                NON-DISCRIMINATION
| 1. | Nationals of a ContractingState shall not be subjected in the other Contracting State to any taxation or any requirement
 connected therewith which is other or more burdensome than the taxation and connected requirements
 to which nationals of that other State in the same circumstances are or may be subjected. This
 provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not
 residents of one or both of the Contracting States, provided they are nationals of one or both of
 the Contracting States.
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| 2. | The taxation on a permanentestablishment which an enterprise of a Contracting State has in the other Contracting State shall
 not be less favourably levied in that other State than the taxation levied on enterprises of that
 other State carrying on the same activities. This provision shall not be construed as obliging a
 Contracting State to grant to residents of the other Contracting State any personal allowances,
 reliefs and reductions for taxation purposes which it grants to its own residents.
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| 3. | Except where the provisions ofArticle 9, paragraph 7 of Article 11, or paragraph 6 of Article 12, apply, interest, royalties,
 fees for technical services and other disbursements paid by an enterprise of a Contracting State
 to a resident of the other Contracting State shall, for the purpose of determining the taxable
 profits of such enterprise, be deductible under the same conditions as if they had been paid to a
 resident of the first-mentioned State. Similarly, any debts of an enterprise of a Contracting
 State to a resident of the other Contracting State shall, for the purpose of determining the
 taxable capital of such enterprise, be deductible under the same conditions as if they had been
 contracted to a resident of the first-mentioned State.
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| 4. | Enterprises of a ContractingState, the capital of which is wholly or partly owned or controlled, directly or indirectly, by
 one or more residents of the other Contracting State, shall not be subjected in the
 first-mentioned State to any taxation or any requirement connected therewith which is other or
 more burdensome than the taxation and connected requirements to which other similar enterprises of
 the first-mentioned State are or may be subjected.
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| 5. | In this Article the term‘taxation” means taxes which are the subject of this Agreement.
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Article 25
                MUTUAL AGREEMENT PROCEDURE
| 1. | Where a person considers thatthe actions of one or both of the Contracting States result or will result for him in taxation not
 in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided
 by the domestic laws of those States, present his case to the competent authority of the
 Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 24,
 to that of the Contracting State of which he is a national. The case must be presented within two
 years from the issuance of the assessment not in accordance with the provisions of this Agreement.
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| 2. | The competent authority shallendeavour, if the objection appears to it to be justified and if it is not itself able to arrive
 at a satisfactory solution, to resolve the case by mutual agreement with the competent authority
 of the other Contracting State, with a view to the avoidance of taxation which is not in
 accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time
 limits in the domestic law of the Contracting States, concerning their internal statute of
 limitation.
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| 3. | The competent authorities ofthe Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts
 arising as to the interpretation or application of the Agreement. They may also consult together
 for the elimination of double taxation in cases not provided for in the Agreement.
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| 4. | The provisions of thisAgreement regarding the reduction or exemption from taxes on income in the Contracting States
 where it arises shall be applied in accordance with the laws of that State and the procedures to
 be agreed by the competent authorities of both Contracting States.
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| 5. | The competent authorities ofthe Contracting States may communicate with each other directly for the purpose of reaching an
 agreement in the sense of the preceding paragraphs.
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Article 26
                EXCHANGE OF INFORMATION
| 1. | The competent authorities ofthe Contracting States shall exchange such information as is necessary for carrying out the
 provisions of this Agreement. Any information received by a Contracting State shall be treated as
 secret in the same manner as information obtained under the domestic laws of that State and shall
 be disclosed only to persons or authorities (including courts and administrative bodies with
 regard to their proceedings or judicial decisions) involved in the assessment or collection of,
 the enforcement or prosecution in respect of, or the determination of appeals in relation to, the
 taxes covered by the Agreement. Such persons or authorities shall use the information only for
 such purposes.
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| 2. | In no case shall theprovisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:
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| (a) | to carry out administrativemeasures at variance with the laws and administrative practice of that or of the other Contracting
 State;
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| (b) | to supply information which isnot obtainable under the laws or in the normal course of the administration of that or of the
 other Contracting State;
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| (c) | to supply information whichwould disclose any trade, business, industrial, commercial or professional secret or trade
 process, or information, the disclosure of which would be contrary to public policy (ordre
 public).
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Article 27
                DIPLOMATIC AND CONSULAR PRIVILEGES
Nothing in this Agreement shall affect the fiscal
              privileges of members of a diplomatic mission, a consular post or an international organization under the
              general rules of international law or under the provisions of special agreements.
Article 28
                ENTRY INTO FORCE
| 1. | This Agreements shall beratified and the instruments of ratification shall be exchanged at Jakarta as soon as possible.
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| 2. | This Agreement shall enterinto force one month after the date of exchange of the instruments of ratification and shall have
 effect :
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| (a) | in the case of taxes withheldat source on dividends, interest, royalties, and fees for technical services in respect of amounts
 paid on or after the first day of January of the calendar year next following that in which the
 Agreement enters into force;
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| (b) | in the case of other taxes, inrespect of taxes levied for periods beginning on or after the first day of January of the calendar
 year next following that in which the Agreement enters into force.
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| 3. | Upon the entry into force ofthis Agreement the Agreement between the Federal Republic of Germany and the Republic of Indonesia
 for the avoidance of double taxation with respect to taxes on income and capital of September 2,
 1977, shall expire and shall cease to have effect as from the dates on which the provisions of
 this Agreements commence to have effect.
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Article 29
                TERMINATION
This Agreement shall continue in effect indefinitely but
              either of the Contracting States may, on or before the thirtieth day of June in any calendar year
              beginning after the expiration of a period of five years from the date of its entry into force, give the
              other Contracting State, through diplomatic channels, written notice of termination and, in such event,
              this Agreement shall cease to be effective:
| (a) | in the case of taxes withheldat source on dividends, interest, royalties, and fees for technical services in respect of amounts
 paid on or after the first day of January of the calendar year next following that in which the
 notice of termination is given;
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| (b) | in the case of other taxes, inrespect of taxes levied for periods beginning on or after the first day of January of the calendar
 year next following that in which the notice of termination is given.
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IN WITNESS WHEREOF the undersigned,
              being duly authorized thereto, have signed this Agreement.
DONE at Bonn on 30th October 1990 in
              duplicate in the Indonesian, German and English languages, all three texts being authentic. In case of
              divergent interpretation of the Indonesia and German texts the English text shall prevail.
| For theRepublic of Indonesia
 | For theFederal Republic of Germany
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PROTOCOL
The Federal Republic of Germany and the Republic of Indonesia have agreed at the
              signing at Bonn on October 30th, 1990 of the Agreement between the two States for the avoidance of double
              taxation with respect to taxes on income and capital upon the following provisions which shall form an
              integral part of the said Agreement.
- 
With reference to Article 5
 paragraph 5
 An agent of a German enterprise acting as a “representative of a foreign trading company” in the
 Republic of Indonesia in accordance with the respective provisions of the Indonesian Laws and
 Regulations shall not constitute a permanent establishment as far as his activities are confined to
 the limits provided for in aforementioned provisions of the Indonesian Laws and Regulations.
 
- With reference to Article 7
 
| (a) | In the determination ofthe profits of a building site or construction, assembly or installation project there shall
 be attributed to that permanent establishment in the Contracting State in which the permanent
 establishment is situated only the profits resulting from the activities of the permanent
 establishment as such. If machinery or equipment is delivered from the head office or another
 permanent establishment of the enterprise or a third person in connection with those
 activities or independently therefrom there shall not be attributed to the profits of the
 building site or construction, assembly or installation project the value of such deliveries.
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| (b) | Income derived by aresident of a Contracting State from planning, project, construction or research activities as
 well as income from technical services exercised in that State in connection with a permanent
 establishment situated in the other Contracting State, shall not be attributed to that
 permanent establishment.
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| (c) | In respect of paragraph 1of Article 7, profits derived from the sale of goods or merchandise of the same or similar
 kind as those sold, or from other business activities of the same or similar kind as those
 effected, through that permanent establishment, may be considered attributable to that
 permanent establishment if it is proved, including by photocopy or taperecorder that:
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| (aa) | this transaction has beenresorted to in order to avoid taxation in the Contracting State where the permanent
 establishment is situated; and
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| (bb) | the permanentestablishment in any way was involved in this transaction.
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| it is understood that apermanent establishment of an enterprise is considered to be involved in a transaction of such
 permanent establishment has signed a contract irrespective of the fact that the delivery is
 partly undertaken by its enterprise.
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- 
With reference to Article 10 and
 11
 Notwithstanding the provisions of these Article, dividends and interest may be taxed in the
 Contracting State in which they arise, and according to the law of that State, if they
 
| (a) | are derived from rights ordebt-claims carrying a right to participate in profits (including income derived from
 “jouissance” shares or “jouissance” rights, by a sleeping partner from his participation as
 such from a “partiarisches Darlehen” and from “Gewinnobligationen” within the meaning of the
 tax law of the Federal Republic of Germany); and
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| (b) | under the condition thatthey are deductible in the determination of profits of the debtor of such income.
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- 
With reference to Article 19 :
 It is understood that the provisions of paragraph 1 of Article 19 shall likewise apply in respect of
 remuneration paid from sources within the Federal Republic of Germany to the staff members of the
 Goethe-Institut sent to Indonesia.
 
- 
With reference to Article 23 :
 Where a company being a resident of the Federal Republic of Germany distributes income derived from
 sources within Indonesia, paragraph 1 shall not preclude the compensatory imposition of corporation
 tax on such distributions in accordance with the provisions of German tax law.
 
| For theRepublic of Indonesia
 | For theFederal Republic of Germany
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