THE GOVERNMENT OF AUSTRALIA AND THE GOVERNMENT OF THE REPUBLIC OF INDONESIA (hereinafter referred to as the "Parties"); 

BEARING IN MIND the friendly and cooperative relations existing between the two countries and their peoples; 

RECOGNISING that promoting the flow of capital for economic activity and development is important for the expansion of their economic relations and cooperation, the stimulation of their investors' business initiative and the fostering of prosperity in both countries; 

INTENDING to create favourable conditions for investments by investors of one Party in the territory of the other Party on the basis of sovereign equality, non-discrimination and mutual benefit; 

ACKNOWLEDGING that investments of investors of one Party in the territory of the other Party would be made within the framework of laws of the latter Party; and 

RECOGNISING that pursuit of these objectives would be facilitated by a clear statement of principles and measures relating to the promotion and protection of investments; 

HAVE AGREED AS FOLLOWS: