The Government of the Republic of Korea and the Government of the Republic of Indonesia (hereinafter referred to as "Parties"); Bearing in mind the friendly and cooperative relations existing between the two countries and their peoples; 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 and mutual benefit; and Recognizing that the promotion and protection of such investments will be conducive to the stimulation of individual business initiative and to foster prosperity in both countries; Have agreed as follows: