EXCHANGE OF LETTERS

concerning the extension of the Agreement in the form of an Exchange of Letters between the European Union and the Government of Indonesia on the tasks, status, privileges and immunities of the European Union Monitoring Mission in Aceh (Indonesia) (Aceh Monitoring Mission — AMM) and its personnel

Jakarta, 21 July 2006

Dear Excellency,

On behalf of the Government of the Republic of Indonesia, I would like to express our appreciation to the European Union in the Aceh Monitoring Mission (AMM) and for its remarkable role since its deployment in the Province of Nanggroe Aceh Darussalam (NAD).

As the peaceful solution to the Aceh question has achieved one of its most important stages, namely the adoption of the new law on the governing of Aceh by the Indonesian Parliament, the people of Aceh are now preparing to exercise their civil and political rights, i.e. to participate in the local election to be held in November 2006.

In this regard, I have the honour to convey to you the decision of the Government of the Republic of Indonesia to invite the European Union for a final extension of its presence in NAD for a period from 16 September 2006 until either 15 December 2006 or at an earlier date following the local election in NAD to be held on 22 November 2006. The Indonesian Government offers Your Excellency discretion on either date of termination of this extension.

The works of the AMM during this period will include the tasks of AMM as stipulated in Articles 5.1 and 5.2 paragraphs (g) and (h) of the Memorandum of Understanding between the Government of the Republic of Indonesia and the Free Aceh Movement 15 August 2005.

During this final extension period, the status, privileges and immunities of the AMM will be identical to those stipulated in our Exchange of Letters respectively dated 14 September 2005 and 3 October 2005 constituting a legally binding instrument between the Government of the Republic of Indonesia and the European Union.

If the foregoing proposal is acceptable to the European Union, I have further the honour to propose that this letter as well as your affirmative letter in reply together constitute a legally binding instrument between the Government of the Republic of Indonesia and the European Union. This instrument shall enter into force on 16 September 2006 and be terminated no later than 15 December 2006. For the Government of the Republic of Indonesia this legal framework is based on Indonesian Law No 2 of 1982 dated 25 January 1982 concerning the Ratification of Convention on Special Mission, 1969.

Furthermore, as agreed in paragraph 1.2.7 of the MoU Helsinki which reads, ‘Outside monitors will be invited to monitor the elections in Aceh’, I would also like to propose to you the sending of European Union election monitors during the preparation and at the time of local election in NAD. Indonesia is ready to discuss the time frame, terms of references and other relevant matters for the presence of such monitors in full consultation with the local election commission as has been done in the past.

I believe that the constructive cooperation that has been established, with a view to providing a peaceful, comprehensive and sustainable solution to the challenges facing Aceh, within the framework of the Unitary State of the Republic of Indonesia, can be further sustained and strengthened.

I look forward to your positive consideration.

Yours sincerely,

Brussels, 15 September 2006

Dear Excellency,

I have the honour to refer to your letter of 21 July 2006 in which you convey to us the decision of the Government of the Republic of Indonesia to invite the European Union for a final extension of its presence in the Province of Nanggroe Aceh Darussalam (NAD) for a period of three months from 16 September 2006 until 15 December 2006.

I am pleased to confirm to you that the European Union has agreed to respond positively to this invitation.

I confirm that, in accordance with the terms of our Exchange of Letters respectively dated 14 September 2005 and 3 October 2005 constituting a legally binding instrument between the Government of the Republic of Indonesia and the European Union, this instrument will be extended until 15 December 2006.

The work of the AMM during this period will include the tasks of the AMM as stipulated in Articles 5.1 and 5.2 paragraphs (g) and (h) of the Memorandum of Understanding between the Government of Indonesia and the Free Aceh Movement of 15 August 2005.

I have further the honour to confirm that your letter and this letter in reply constitute a legally binding instrument between the Government of the Republic of Indonesia and the European Union. This instrument shall enter into force on 16 September 2006 and be terminated on 15 December 2006.

May I once more take this opportunity to record the EU’s appreciation of the progress made in the Aceh peace process and to reaffirm the European Union’s continued commitment to supporting the development of a peaceful, comprehensive and sustainable solution to the challenges facing Aceh.

Please accept, Sir, the assurance of my highest consideration.

Yours sincerely,