AGREEMENT BETWEEN
                THE REPUBLIC OF INDONESIA
                AND
                THE GRAND DUCHY OF LUXEMBOURG
FOR
THE
                AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON
                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
- 
This Agreement shall apply to 
 taxes on income and on capital imposed on behalf of a Contracting State or its local authorities,
 irrespective of the manner in which they are levied.
- 
There shall be regarded as taxes 
 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 existing taxes to which the 
 Agreement shall apply are :(a) in Indonesia : 
 the income tax imposed under the Undang-undang Pajak Penghasilan 1984 (Law No. 7 of 1983);
 (hereinafter referred to as “Indonesian tax”);(b) in the Grand Duchy of Luxembourg : (i) the income tax on individuals (l’impôt sur le revenu des personnes physiques); (ii) the corporation tax (l’impôt sur le revenu des collectivités); (iii) the tax on fees of directors of companies (l’impôt spécial sur les tantièmes); (iv) the capital tax (l’impôt sur la fortune); (v) the communal trade tax (l’impôt commercial communal) (hereinafter referred to as “Luxembourg tax”). 
- 
The Agreement shall also apply to 
 any identical or substantially similar taxes 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
- 
For the purposes of this 
 Agreement, unless the context otherwise requires :(a) the term “Indonesia” 
 comprises the territory of the Republic of Indonesia as defined in its laws and the adjacent
 areas over which the Republic of Indonesia has sovereign rights or jurisdiction in accordance
 with international law;(b) the term “Luxembourg” 
 means the territory of the Grand Duchy of Luxembourg;(c) the term “person” includes 
 an individual, a company and any other body of persons;(d) the term “company” means 
 any body corporate or any entity which is treated as a body corporate for the tax purposes;(e) the terms “enterprise of a 
 Contracting 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;(f) the term “international 
 traffic” 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;(g) the term “competent 
 authority” means:(i) in Indonesia : 
 the Minister of Finance or his authorized representative;(ii) in Luxembourg : 
 the Minister of Finance or his authorized representative;(h) the term “national” means 
 :(i) any individual possessing 
 the nationality of a Contracting State;(ii) any legal person, 
 partnership and association deriving its status as such from the laws in force in a
 Contracting State;(i) the terms “a Contracting 
 State” and “the other Contracting State” mean Indonesia and Luxembourg as the context
 requires.
- 
As regards the application of the 
 Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise
 requires, have the meaning which it has under the law of that State concerning the taxes to which the
 Agreement applies.
Article 4
                RESIDENT
- 
For the purposes of this 
 Agreement, 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 other
 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.
- 
Where by reason of the provisions 
 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 a resident 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);(b) if the State in which he has his 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;(c) if he has an habitual abode in both States 
 or in neither of them, the competent authorities of the Contracting States shall settle the
 question by mutual agreement.
- 
Where by reason of the provisions 
 of paragraph 1 a person other than an individual is a resident of both Contracting States, the
 competent authorities of the States shall settle the question by mutual agreement.
Article 5
                PERMANENT ESTABLISHMENT
- 
For the purposes of this 
 Agreement, the term “permanent establishment” means a fixed place of business through which the
 business of an enterprise is wholly or partly carried on.
- 
The term “permanent establishment” 
 includes especially:(a) a place 
 of management;(b) a branch; (c) an 
 office;(d) a 
 factory;(e) a 
 workshop;(f) a 
 warehouse or premises used as sales outlet;(g) a farm or 
 plantation;(h) a mine, an oil or gas well, a quarry or 
 any other place of extraction or exploration of natural resources, drilling rig or ship used
 for exploration or exploitation of natural resources.
- 
The term “permanent establishment” 
 likewise encompasses a building site or a construction project, or supervisory activities in
 connection therewith, an assembly or installation project, but only where such site, project or
 activities continue in one of the Contracting States for a period of more than 5 months.
- 
Notwithstanding the preceding 
 provisions of this Article, the term “permanent establishment” shall be deemed not to include:(a) the use of the facilities solely for the 
 purpose of storage or display of goods or merchandise belonging to the enterprise;(b) the maintenance of a stock of goods or 
 merchandise belonging to the enterprise solely for the purpose of storage or display;(c) the maintenance of a stock of goods or 
 merchandise belonging to the enterprise solely for the purpose of processing by another
 enterprise;(d) the maintenance of a fixed place of 
 business solely for the purpose of purchasing goods or merchandise, or of collecting
 information, for the enterprise;(e) the maintenance of a fixed place of 
 business solely for the purpose of advertising, or for the supply of information, or for
 similar activities which have a preparatory or auxiliary character, for the enterprise;(f) the maintenance of a fixed place of 
 business solely for any combination of activities mentioned in subparagraphs (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.
- 
Notwithstanding the provisions of 
 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:(a) has and habitually 
 exercises in 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;(b) has no such authority, but 
 habitually 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.
- 
An insurance enterprise of a 
 Contracting 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.
- 
An enterprise of a Contracting 
 State 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 or its associated enterprises, he will not be considered an agent of an independent status
 within the meaning of this paragraph.
- 
The fact that a company which is 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.
Article 6
                INCOME FROM IMMOVABLE PROPERTY
- 
Income derived by a resident of 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.
- 
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 provisions of paragraph 1 
 shall also apply to income derived from the direct use, letting, or use in any other form of immovable
 property.
- 
The provisions of paragraphs 1 and 
 3 shall also apply to the income from immovable property of an enterprise and to income from immovable
 property used for the performance of independent personal services.
Article 7
                BUSINESS PROFITS
- 
The profits of an enterprise of 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 (a) that permanent establishment;(b) sales in that other State of goods or merchandise of the same or similar kind
 as those sold through that permanent establishment; or (c) other business activities carried on
 in that other State of the same or similar kind as those effected through that permanent
 establishment.
- 
Subject to the provisions of 
 paragraph 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.
- 
In determining the profits of a 
 permanent establishment, there shall be allowed as deductions expenses which are incurred for the
 purposes of the business 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. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise
 than towards reimbursement of actual expenses) by the permanent establishment to the head office of
 the enterprise or any of its other offices, by way of royalties, fees or other similar payments in
 return for the use of patents or other rights, or by way of commission, for specific services
 performed or for management, or, except in the case of a banking enterprise, by way of interest on
 moneys lent to the permanent establishment. Likewise, no account shall be taken, in the determination
 of the profits of a permanent establishment, for amounts charged (otherwise than towards reimbursement
 of actual expenses), by the permanent establishment to the head office of the enterprise or any of its
 other offices, by way of royalties, fees or other similar payments in return for the use of patents or
 other rights, or by way of commission for specific services performed or for management, or, except in
 the case of a banking enterprise, by way of interest on moneys lent to the head office of the
 enterprise or any of its other offices.
- 
For the purpose of the preceding 
 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.
- 
Where profits include items of 
 income 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.
Article 8
                SHIPPING AND AIR TRANSPORT
- 
Profits from the operation of 
 ships or aircraft in international traffic shall be taxable only in the Contracting State of which the
 enterprise is a resident.
- 
The provisions of paragraph 1 
 shall also apply to profits from the participation in a pool, a joint business or an international
 operating agency.
Article 9
                ASSOCIATED ENTERPRISES
- 
Where : (a) an enterprise of a Contracting State 
 participates directly or indirectly in the management, control or capital of an enterprise of
 the other Contracting State, or(b) the same persons participate directly or 
 indirectly in the management, control or capital of an enterprise of a Contracting State and
 an enterprise of the other Contracting State,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.
- 
Where a Contracting State includes 
 in the profits of an enterprise of that State – and taxes accordingly – profits on which an enterprise
 of the other Contracting State has been charged to tax in that other State and the profits so included
 are profits which would have accrued to the enterprise of the first-mentioned State if the conditions
 made between the two enterprises had been those which would have been made between independent
 enterprises, then that other State shall make an appropriate adjustment to the amount of the tax
 charged therein on those profits. In determining such adjustment, due regard shall be had to the other
 provisions of the Agreement and the competent authorities of the Contracting States shall, if
 necessary, consult each other.
- 
A Contracting State shall not 
 change the profits of an enterprise in the circumstances referred to in paragraph 2 after the expiry
 of the time limits provided in its national laws.
Article 10
                DIVIDENDS
- 
Dividends paid by a company which 
 is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that
 other State.
- 
However, such dividends may also 
 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 if the recipient is the beneficial owner of the dividends the
 tax so charged shall not exceed:(a) 10% of the gross amount of the dividends 
 if the beneficial owner is a company (other than a partnership) which holds directly at least
 25% of the capital of the company paying the dividends;(b) 15% of the gross amount of the dividends 
 in all other cases.The competent authorities of the 
 Contracting States shall by mutual agreement settle the mode of application of these
 limitations.
 The provisions of this paragraph shall not affect the taxation of the company in respect of
 the profits out of which the dividends are paid.
- 
The term “dividends” as used in 
 this Article means income from shares or other rights, not being debt-claims, participating in
 profits, as well as income from other corporate rights which is subjected 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.
- 
The provisions of paragraphs 1 and 
 2 shall 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.
- 
Where a company which is a 
 resident 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.
- 
Where a company which is resident 
 of Luxembourg has a permanent establishment in Indonesia, the profits of that permanent establishment
 may be subjected to an additional tax in Indonesia in accordance with its laws, but the additional tax
 so charged shall not exceed 10% of the amount of such profits after deducting therefrom the income tax
 imposed thereon in Indonesia.
- 
The provisions of paragraph 6 of 
 this Article shall not affect the provisions contained in any production sharing contracts and
 contracts of work (or any other similar contracts) relating to oil and gas sector or other mining
 sector concluded by the Government of Indonesia, its instrumentality, its relevant state oil and gas
 company or any other entity thereof with a person who is a resident of Luxembourg.
Article 11
                INTEREST
- 
Interest arising in a Contracting 
 State and paid to a resident of the other Contracting State may be taxed in that other State.
- 
However, such interest may also be 
 taxed in the Contracting State in which it arises, and according to the laws of that State, but if the
 recipient is the beneficial owner of the interest the tax so charged shall not exceed 10% of the gross
 amount of the interest. The competent authorities of the Contracting States shall by mutual agreement
 settle the mode of application of this limitation.
- 
Notwithstanding the provisions of 
 paragraph 2, interest arising in a Contracting State and derived by the Government of the other
 Contracting State including local authorities thereof, shall be exempt from tax in the first-mentioned
 State.
- 
For the purposes of paragraph 3, 
 the term “Government” includes:(a) in the case of Indonesia : (i) the “Bank Indonesia” (the Central Bank of Indonesia); (ii) such other financial institution, the capital of which is wholly owned by the Government of the 
 Republic of Indonesia, as may be agreed upon from time to time between the competent authorities
 of the Contracting States;(b) in the case of Luxembourg : (i) the “Société Nationale de Crédit et d’Investissement”; (ii) such other financial institution, the capital of which is wholly owned by the Government of the 
 Grand Duchy of Luxembourg, as may be agreed upon from time to time between the competent
 authorities of the Contracting States.
- 
The term “interest” as used in 
 this 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 law of the state in which the income arises, including interest on deferred payment sales.
- The provisions of paragraphs 1 and 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 is paid is effectively connected
 with:(a) such permanent 
 establishment or fixed base, or with(b) business 
 activities referred to under (c) of paragraph 1 of Article 7.
- 
Interest shall be deemed to arise 
 in a Contracting State when the payer is that State itself, 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.
- 
Where, by reason of a special 
 relationship 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.
Article 12
                ROYALTIES AND FEES FOR TECHNICAL SERVICES
- 
Royalties and fees for technical 
 services arising in a Contracting State and paid to a resident of the other Contracting State may be
 taxed in that other State.
- 
However, such royalties and fees 
 for technical services may also 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 and fees for
 technical services the tax so charged shall not exceed:(a) in the case of royalties 
 12.5% of the gross amount of such royalties;(b) in the case of fees for 
 technical services 10% of the gross amount of such fees.The competent authorities 
 of the Contracting States shall by mutual agreement settle the mode of application of this
 limitation.
- 
The term “royalties” as used in 
 this Article means payments, whether periodical or not, and in whatever form or name or nomenclature
 to the extent to which they are made as a consideration for:(a) the use of, or the rights to use, any 
 copyright, patent, design or model, plan, secret formula or process, trade mark or other like
 property or right; or(b) the use of, or the right to use, any 
 industrial, commercial or scientific equipment; or(c) the supply of scientific, technical, 
 industrial or commercial knowledge or information; or(d) the use of, or the right to use : (i) motion 
 picture films; or(ii) films or 
 video for use in connection with television; or(iii) tapes for 
 use in connection with radio broadcasting; or(e) total or partial forbearance in respect of 
 the use or supply of any property or right referred to in this paragraph
- 
The term “fees for technical 
 services” 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.
- 
The provisions of paragraphs 1 and 
 2 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 (a) such permanent establishment or fixed base, or with (b) business
 activities referred to under (c) of paragraph 1 of Article 7. In such case, the provisions of Article
 7 or Article 14, as the case may be, shall apply.
- 
Royalties and fees for technical 
 services shall be deemed to arise in a Contracting State when the payer is that State itself, 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 a fixed base in connection with which the liability to make the payments
 was incurred, and such payments are borne by such permanent establishment or fixed base, then such
 royalties or fees for technical services shall be deemed to arise in the State in which the permanent
 establishment or fixed base is situated.
- 
Where, by reason of a special 
 relationship 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, 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
 payment shall remain taxable according to the laws of each Contracting State, due regard being had to
 the other provisions of this Agreement.
Article 13
                CAPITAL GAINS
- 
Gains derived by a resident of a 
 Contracting State from the alienation of immovable property referred to in Article 6 and situated in
 the other Contracting State may be taxed in that other State.
- 
Gains from the alienation of 
 movable 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.
- 
Gains from the alienation of any 
 property other than that referred to in the preceding paragraphs shall be taxable only in the
 Contracting State of which the alienator is a resident.
Article 14
                INDEPENDENT PERSONAL SERVICES
- 
Income derived by a resident of 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 91 days in any taxable year. 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.
- 
The term “professional services” 
 includes especially independent scientific, literary, artistic, educational or teaching activities as
 well as the independent activities of physicians, engineers, lawyers, architects, dentists and
 accountants.
Article 15
                DEPENDENT PERSONAL SERVICES
- 
Subject to the provisions of 
 Articles 16, 18, 19 and 20, 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.
- 
Notwithstanding the provisions of 
 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 
 in that other State for a period or periods not exceeding in the aggregate 183 days within any
 taxable year; and(b) the remuneration is paid 
 by, or on behalf of, an employer who is not a resident of the other State; and(c) the remuneration is not 
 borne by a permanent establishment or a fixed base which the employer has in the other
 State.
- 
Notwithstanding the preceding 
 provisions 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.
Article 16
                DIRECTORS’ FEE
- 
Directors’ fees and other similar 
 payments derived by a resident of a Contracting State in his capacity as a member of the board of
 directors or any other similar organ of a company which is a resident of the other Contracting State
 may be taxed in that other State.
- 
The remuneration which a person to 
 whom paragraph 1 applies derives from the company in respect of the discharge of day-to-day functions
 of a managerial or technical nature may be taxed in accordance with the provisions of Article 15
 (Dependent personal services).
Article 17
                ARTISTES AND ATHLETES
- 
Notwithstanding the provisions of 
 Articles 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.
- 
Where income in respect of 
 personal 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.
- 
Notwithstanding the provisions of 
 paragraphs 1 and 2, income derived from activities referred to in paragraph 1 performed under a
 cultural agreement or arrangement between the Contracting States shall be exempt from tax in the
 Contracting State in which the activities are exercised if the visit to that State is wholly or
 substantially supported by funds of one or both of the Contracting States, a local authority or public
 institution thereof.
Article 18
                PENSIONS
any pension or other similar remuneration paid to a resident of one of the Contracting States from a
source in the other Contracting State in consideration of past employment or services in that other
Contracting State may be taxed in that other State.
Article 19
                GOVERNMENT SERVICE
| 1. | (a) | Remuneration, other than a | |
| (b) | However, such remuneration | ||
| (i) | is a national of that State; | ||
| (ii) | did not become a resident of | ||
| 2. | (a) | Any pension paid by, or out of | |
| (b) | However, such pension shall be | ||
| 3. | The provisions of Articles 15, | ||
Article 20
                TEACHERS, RESEARCHERS AND STUDENTS
- 
An individual who visits a 
 Contracting 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.
- 
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.
Article 21
                OTHER INCOME
which are not expressly mentioned in the foregoing Articles of this Agreement shall be taxable only in
that State except that, if such income is derived from sources within the other Contracting State, it may
also be taxed in that other State.
Article 23
                CAPITAL
- 
Capital represented by immovable 
 property referred to in Article 6, owned by a resident of a Contracting State and situated in the
 other Contracting State, may be taxed in that other State.
- 
Capital represented by movable 
 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 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.
- 
All other elements of capital of a 
 resident of a Contracting State shall be taxable only in that State.
Article 23
                ELIMINATION OF DOUBLE TAXATION
- 
In Luxembourg, double taxation 
 shall be eliminated as follows :(a) Where a resident of Luxembourg derives 
 income or owns capital which, in accordance with the provisions of this Convention, may be
 taxed in Indonesia, Luxembourg shall, subject to the provisions of subparagraphs (b) and (c),
 exempt such income or capital from tax, but may, in order to calculate the amount of tax on
 the remaining income or capital of the resident, apply the same rates of tax as if the income
 or capital had not been exempted.(b) Where a resident of Luxembourg derives 
 income which, in accordance with the provisions of Articles 10, 11, 12 and 21 may be taxed in
 Indonesia, Luxembourg shall allow as a deduction from the tax on the income of that resident
 an amount equal to the tax paid in Indonesia. Such deduction shall not, however, exceed that
 part of the tax, as computed before the deduction is given, which is attributable to such
 items of income derived from Indonesia.(c) Where a company which is a resident of 
 Luxembourg derives dividends from Indonesian sources, Luxembourg shall exempt such dividends
 from tax, provided that the company which is a resident of Luxembourg holds directly at least
 25% of the capital of the company paying the dividends since the beginning of the accounting
 year. The above-mentioned shares in the Indonesian company are, under the same conditions,
 exempt from the Luxembourg capital tax.
- 
In Indonesia, double taxation 
 shall be eliminated as follows :
 Where a resident of Indonesia derives income from Luxembourg in accordance with the provisions of this
 Agreement, the amount of Luxembourg tax payable in respect of the income shall be allowed as credit
 against the Indonesian tax imposed on that resident. The amount of credit, however, shall not exceed
 the part of the Indonesian tax which is appropriate to such income.
Article 24
                NON-DISCRIMINATION
- 
Nationals of a Contracting State 
 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.
- 
The taxation on a permanent 
 establishment 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 on
 account of civil status or family responsibilities which it grants to its own residents.
- 
Enterprises of a Contracting 
 State, 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.
- 
Interest, royalties 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.
- 
In this Article the term 
 “taxation” means taxes which are the subject of this Agreement.
Article 25
                MUTUAL AGREEMENT PROCEDURE
- 
Where a person considers that the 
 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 law 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 2 years from the first
 notification of the action resulting in taxation not in accordance with the provisions of the
 Agreement.
- 
The competent authority shall 
 endeavour 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 this
 Agreement.
- 
The competent authorities of the 
 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.
- 
The competent authorities of the 
 Contracting States may communicate with each other directly for the purpose of reaching an agreement
 in the sense of the preceding paragraphs. The competent authorities, through consultations, shall
 develop appropriate bilateral procedures, conditions, methods and techniques for the implementation of
 the mutual agreement procedure provided for in this Article.
Article 26
                EXCHANGE OF INFORMATION
- 
The competent authorities of the 
 Contracting States shall exchange such information as is necessary for carrying out the provisions of
 this Agreement or of the domestic laws of the Contracting States concerning taxes covered by the
 Agreement, insofar as the taxation thereunder is not contrary to the Agreement in particular for the
 prevention of fraud or evasion of such taxes.
 The exchange of information is not restricted by Article 1. 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. However, if the information is originally regarded as secret in the transmitting State it
 shall be disclosed only to persons or authorities (including courts and administrative bodies)
 involved in the assessment or collection of, the enforcement or prosecution in respect of, or the
 determination of appeals in relation to, the taxes which are the subject of the Agreement. Such
 persons or authorities shall use the information only for such purposes but may disclose the
 information in public court proceedings, or in judicial decisions.
- 
In no case shall the provisions of 
 paragraph 1 be construed so as to impose on a Contracting State the obligation :(a) to carry out 
 administrative measures at variance with the laws and administrative practice of that or of
 the other Contracting State;(b) to supply information 
 which is not obtainable under the laws or in the normal course of the administration of that
 or of the other Contracting State;(c) to supply information 
 which would 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).
Article 27
                MISCELLANEOUS RULES
to restrict in any manner any exclusion, exemption, deduction, credit, or other allowance now or hereafter
accorded:
| (a) | by the laws of a Contracting | 
| (b) | by any other special | 
Article 28
                DIPLOMATIC AGENTS AND CONSULAR OFFICERS
privileges of diplomatic agents or consular officers under the general rules of international law or under
the provisions of special Agreements.
Article 29
                EXCLUSION OF CERTAIN COMPANIES
(sociétés holding) within the meaning of special Luxembourg laws, currently the Act (loi) of 31 July 1929
and the Decree (arrêté grand-ducal) of 17 December 1938 nor to companies subject to a similar fiscal law
in Luxembourg. Neither shall it apply to income derived from such companies by a resident of Indonesia nor
to shares or other rights in such companies owned by such a person.
Article 30
                ENTRY INTO FORCE
- 
This Agreement shall enter into 
 force on the later of the dates on which the respective Governments may notify each other in writing
 that the formalities constitutionally required in their respective States have been complied
 with.
- 
This Agreement shall have effect : (a) in respect of tax withheld 
 at the source to income derived on or after 1 January in the year next following that in which
 the Agreement enters into force; and(b) in respect of other taxes 
 on income and capital, for taxable years beginning on or after 1 January in the year next
 following that in which the Agreement enters into force.
Article 31
                TERMINATIOIN
a Contracting State. Either Contracting State may terminate the Agreement, through diplomatic channels, by
giving written notice of termination on or before the 30th day of June of any calendar year following
after the period of 5 years from the year in which the Agreement enters into force.
In such case, the Agreement shall
              cease to have effect:
| (a) | in respect of tax withheld at | 
| (b) | in respect of other taxes on | 
Agreement.
              Done in duplicate at this 14th day of January 1993, in the English, French and Indonesian languages, all
              three texts being equally authentic.
            
| For the Government of the Republic of Indonesia | For the Government of the Grand Duchy of Luxembourg | 
