Doctunent of

The World Bank

FOR OFFICIAL USE ONLY

AA/ 29q.z- /MZDRepowt No. P-4863-IND

MEMORANDUM AND RECOMMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED LOAN

IN AN AMOUNT EQUIVALEEIT TO US$18.4 MILLION

TO THE

REPUBLIC OF INDONESIA

FOR A

TREE CROPS HUMAN RESOURCE DEVELOPMENT PROJECT

August 15, 1988

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authoriation.

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CURRENCY EQUIVALENTS(as of July 1988)

Currency Unit = Indonesia Rupiah

US$1.00 = Rp 1,660Rp 100 = US$0.06Rp 1 million = US$602

GOVERNMENT OF INDONESIAFISCAL YEAR

April 1 - March 31

ACADEMIC YEAR

July 1 - June 30

PRINCIPAL ABBREVIATIONS AND ACRONYMS USED

AAETE - Agency for Agricultural Education, Training and ExtensionDGE - Directorate General of EstatesDIP - Annual Budgetary allocation from GovernmentDISBUN - Provincial Offices of Estate CropsGOI - Government of IndonesiaMOA - Ministry of AgricultureNES - Nucleus Estates and Smallholder Projects (externally

funded)PIR - Nucleus Estates and Smallholder Projects (Government

funded)PIU - Project Implementation UnitPMU - Project Management UnitSECDP - Smallholder Estate Crops Development ProjectTCHRDP - Tree Crops Human Resource Development Project

FOR OFFICIAL USE ONLY

INDONESIA

TREE CROPS HUMAN RESOURCE DEVELOPMENT PROJECT

Loan and Project Summary

Borrower: Republic of Indonesia

Amount: US$18.4 nillion equivalent

Terms: Repayable in 20 years, including 5 years of grace, at thestandard variable interest rate.

Financing Plan:Local Foreign Total…---- (US$ million)

Government 8.2 - 8.2Bank loan 9.7 8.7 18.4

Total /a 17.9 8.7 26.6

Economic Rateof Return: Not applicable.

Staff AppraisalReport: No. 6396-IND dated July 19, 1988

Map No.: IBRD 20193

/a Includes taxes and duties estimated at US$0.5 million equivalent.

This document has a restricted distribution and may be used by rscipients tanly in the performanceof their official duties. Its contents may not otherwise be disclosed withow World Bank authorization.

FOR OFFICIAL USE ONLY

INDONESIA

TREE CROPS HUMAN RESOURCE DEVELOPMENT PROJECT

Loan and Project Summary

Borrower: Republic of Indonesia

Amount: US$18.4 million equivalent

Terms: Repayable in 20 years, including 5 years of grace, at thestandard variable interest rate.

Financing Plan:Local Foreign Total…---- (US$ million) -----

Government 8.2 - 8.2Bank loan 9.7 8.7 18.4

Total /a 17.9 8.7 26.6

Economic Rateof Return: Not applicable.

Staff AppraisalReport: No. 6396-IND dated July 19, 1988

Map No.: IBRD 20193

/a Includes taxes and duties estimated at US$0.5 million equivalent.

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIUNAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOANTO THE REPUBLIC OF INDONESIA

FOR A TREE CROPS HUMAN RESOURCE DEVELOPMENT PROJECT

1. The following memorandum and recommendation on a proposed develop-ment loan to the Government of Indonesia (COI) for US$18.4 million equivalentis submitted for approval. The proposed loan would be on standard IBRD termswith 20 years' maturity including a five-year grace period at the standardvariable interest rate, and would help finance a tree crops human resourcedevelopment project.

2. Background. Skill deficiencies in staff of the Directorate Generalof Estates (DGE) of the Ministry of Agriculture (MOA) and among smallholdershave been recognized as a serious constraint to satisfactory development ofthe tree crops subsector. The effects of these deficiencies are measured inthe disappointing quality of newly planted tree crops in government sponsoredschemes and in the suboptimal maintenance, harvesting and primary processingon the part of subsector smallholders. The origin of the problem can in partbe traced to weakness of manpower management in the subsector; a lack of treecrop subsector training capacity, inadequately trained subsector workforce;and infrequent farmer leader training.

3. Human resource deficiencies in the subsector have been brought toGovernment attention thrQygh a number of detailed studies including the MajorTree Crops Review, 1985 - and A Survey of the Training Needs of the EstateCrops Sector in Indonesia, 1985. Government reaction to evidence that man-power weaknesses contribute to the slowdown of subsector development and theloss of potential foreign exchange earnings from key export tree crop productshas been speedy and positive. The Third National Agricultural ExtensionProject (NAEP III) includes, as one of its objectives, the training of treecrop extension workers and farmer leaders; the Second Smallholder RubberDevelopment Project (SRDP II) contains a significant training component; theplanned Smallholder Eatate Crops Development Project (SECDP) gives consider-able emphasis to staff and smallholder training. However, most earlier sub-sector projects concentrated on physical targets in line with Governmentdevelopment plan objectives. Many projects contained small project relatedtraining components but with some exceptions there was no concerted humanresource development capacity strengthening strategy whereby succeedingprojects built on the foundations of earlier ones. By and large, subsectorHRD has been addressed in a piecemeal, project by project fashion resulting ina persistence of skill deficiencies. These have been aggravated by the severepressures on managerial and technical staff brought on by ambicious subsectordevelopment programs and the lack of manpower management and training capacityin the subsector.

1/ Indonesia: the Major Tree Crops: A Sector Review, A Study of theProspects for Rubber, Oil Palm and Coconuts during Repelita IV (1-984-1988), The World Bank, Report No. 5318-IND, April 15, 1985 (the "TreeCrops Sector Report").

- 2-

Rationale for Bank Involvement

4. Bank assistance to GOI in the development of the subsector has beensignificant. Since 1917, seven Bank funded Nucleus Estates and Smallholders(NES) projects have been instrumental in settling 100,000 farm families andthe establishment of 136,000 ha rubber, 70,000 ha oilpalm and 34,000 hacoconuts. The Bank is in the process of assisting the subsector in expandingprocessing capacity and increasing support for further smallholder develop-ment. This commitment to development of the subsector is tempered by therealization that insufficient attention has been paid to developing humancapacity to manage improved technology. The 1985 Major Tree Crops SectorReview cited in para. 3 provided sufficient evidence of human resourceweakness to prompt GOI to request assistance to remedy the situation. Thereis now a unique opportunity to address human resource development and manage-ment on a total subsector basis avoiding the piecemeal approach of the pastand, by concentrating on capacity building, laying the foundation for long-term human resource development improvement.

5. Bank involvement in Agriculture Sector Agricultural Education andTraining projects (Credit 288-IND, Loan 1692-IND) and the ongoing AgriculturalTraining III Project (Loan 2341-IND) served to establish and strengthen theAg.=ncy for Agricultural Education, Training and Extension (AAETE). Inaddition to running a major share of the formal agricultural secondary schoolsin Indonesia, AAETE is responsible for all formal inservice training for theNOA. AAETE, to-date, has focussed heavily on the training of food crop exten-sion staff to the neglect of other subsector personnel. However, AATTE is nowready to turn its attention to the training needs of the tree crops subsectorand could benefit greatly from a tree crops human resource development projectby building its own capacity to expand training activities in tree crop tech-nology and, during the project implementation period, participating in thetraining of field extension staff and farmer leaders.

Project Objectives

6. The proposed project has the following objectives:

(a) to improve productivity in the tree crops subsector, by enhancin-manpower management capability in the DGE; preparing tree cropspecialized trainers; providing well structured inservice trainingprograms and undertaking coordinated farmer leader training; and

(b) to contribute to the capacity building of AAETE and the Estate CropsTraining Institute to enable them to better meet the human resourcedevelopment demands of the subsector.

Project Description

7. Project objectives would be achieved through activities conductedunder four broad categories:

(a) Human Resource Management Capacity Building. Creating in DGE thecapacity to plan for and manage manpower, undertake training needs

MbMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOANTO THE REPUBLIC OF INDONESIA

FOR A TREE CROPS HUMAN RESOURCE DEVELOPMENT PROJECT

1. The following memorandum and recommendation on a proposed develop-ment loan to the Government of Indonesia (GOI) for US$18.4 million equivalentis submitted for approval. The proposed loan would be on standard IBRD termswith 20 years' maturity including a five-year grace period at the 3tandardvariable interest rate, and would help finance a tree crops human resourcedevelopment project.

2. Backgrotnd. Skill deficiencies in staff of the Directorate Generalof Estates (DtE) of the Ministry of Agriculture (MOA) and among smallholdershave been recognized as a serious constraint to satisfactory development ofthe tree crops subsector. The effects of these deficiencies are measured intte disappointing quality of newly planted tree crops in government sponsoredschemes and in the suboptimal maintenance, harvesting and primary processingon the part ox subsector smallholders. The origin of the problem can in partbe traced to weakness of manpower management in the subsector; a lack of treecrop subsector training capacity, inadequately trained subsector w-rkforce;and infrequent farmer leader training.

3. Human resource deficiencies in the subsector have been brought toGovernment attention thr97gh a number of detailed studies including the MajorTree Crops Review, 1985 . and A Survey of the Training Needs of the EstateCrops Sector in Indonesia, 1985. Government reaction to evidence that man-power weaknesses contribute to the slowdown of subsector development and theloss of potential foreign exchange earnings from key export tiee crop productshas been speedy and positive. The Third National Agricultural ExtensionProject (NAEP III) includes, is one of its objectives, the training of treecrop extension workers and farner leaders; the Second Smallholder RubberDevelopment Project (SRDP II) contains a significant ttaining component; theplanned Smallholder Estite Crops Development Project (SECDP) gives consider-able emphasis to staff and smallholder training. However, most earlier sub-sector projects concentrated on physical targets in line with Governmentdevelopment plan objectives. Many projects contained small project relatedtraining components but with some exceptions there was no concerted humanresource development capacity strengthening strategy whereby succeedingprojects built on the foundations of earlier ones. By and large, subsectorHRD has been addressed in a piecemeal, project by project fashion resulting ina nersistence of skill deficiencies. These have been aggravated by the severepressures on managerial and technical staff brought on by ambitious subsectordevelopment programs and the lack of manpower management and training capacityin the subsector.

1/ Indonesia: the Major Tree Crops: A Sector Review, A Study of theProspects for Rubber, Oil Palm and Coconuts during Repelita IV (1984-1988), The World Bank, Report No. 5318-IND, April 15, 1985 (the "TreeCrops Sector Report").

- 2-

Rationale for Bank Involvement

4. Bank assistance to GOI in the development of the subsector has beensignificant. Since 1977, seven Bank funded Nucleus Estates and Smallholders(NES) projects have been instrumental in settling 10,000 farm families andthe establishment of 136,000 ha rubber, 70,000 ha oilpalm and 34,000 hacoconuts. The Bank is in the process of assisting the su7sector in expandingprocessing capacity and increasing support for further smillholder develop-ment. This commitment to development of the subsector is tempered by therealization that insufficient attention has been paid to developing humancapacity to manage improved technology. The 1985 Major Tree Crops SectorReview cited in para. 3 provided sufficient evidence of human resourceweakness to prompt GOI to request assistance to remedy the situation. Thereis now a unique opportunity to address human resource development and manage-ment on a total subsector basis avoiding the piecemeal approach of the pastand, by concentrating on capacity building, laying the foundation for long-term human resource development improvement.

5. Bank involvement in Agriculture Sector Agricultural Education andTraining projects (Credit 288-IND, Loan 1692-IND) and the ongoing AgriculturalTraining III Project (Loan 2341-IND) served to establish and strengthen theAgency for Agricultural Education, Training and Extension (AAETE). Inaddition to running a major share of the formal agricultural secondary schoolsin Indonesia, AAETE is responsible for all formal inservice training for theHOA. AAETC, to-date, has focussed heavily on the training of food crop exten-sion staff to the neglect of other subsector personnel. However, AATTE is nowready to turn its attention to the training needs of the tree crops subsectorand could benefit greatly from a tree crops human resource development projectby building its own capacity to expand training activities in tree crop tech-nology and, during the project implementation period, participating in thetraining of field extension staff and farmer leaders.

Project Objectives

6. The proposed project has the following objectives:

(a) to improve productivity in the tree crops subsector, by enhancingmanpower management capability in the DGE; preparing tree cropspecialized trainers; providing well structured inservice trainingprograms and undertaking coordinated farmer leader training; and

(b) to contribute to the capacity building of AAETE and the Estate CropsTraining Institute to enable them to better meet the human resourcedevelopment demands of the subsector.

Project Description

7. Project objectives would be achieved through activities conductedunder four broad categories:

(a) Human Resource Management Capacity Building. Creating in DGE thecapacity to plan for and manage manpower, indertake training needs

- 3 -

analyses, and to design, implement (through subsector trainingagencies) and evaluate training programs;

(b) Building Training Capacity in the Subsector. Increasing the numberof tree crop specific trainers at master trainer and inservicelevels in AAETE; providing upgrading opportunities for the EstateCrops Training Institute teaching staff; and training trainers for aprogram of farmer leader training;

(c) Staff Training. Providing a comprehensive series of trainingprograms on technical, management and financial topics for staff ofDGE, the provincial service of the DGE (DISBUN) and the Estate CropsTraining Institute to improve technical capacity to serve thesubsector' s needs; and

(d) Farmer Leader Training. Undertaking a well planned and coordinatedprogram of farmer leader training, emphasizing key husbandry andprocessing practices and stressing leadership techniques.

8. The project is estimated to cost a total of US$26.6 million, with aforeign exchange component of US$8.7 million (33Z). Cost estimates and thefinancing plan are shown in Schedule A. Amounts and methods of procurementand of disbursements and the disbursement schedule are shown in Schedule B.The timetable of key events in project processing and the status of Bankoperations in the country are summarized in Schedules C and D. A map is alsoattached. The Staff Appraisal Report is being distributed separately.

Agreed Actions

9. A number of project related actions already taken have been reviewedand agreed at negotiations including:

(a) Technical Assistance. A short list of firms qualified to supplyexpertise together with draft contracts.

(b) DGE Headquarters Training. A list of staff from DGE Directorates toparticipate in training programs, their specializations and plannedschedules for enrollment.

(c) Training of Trainers. Selected candidates for training of trainercourses, draft curricula and schedule of field visits.

(d) Budget. The 1988/89 budget for the first year of projectoperations.

(e) Project Implementation Unit. Details of the establishment of theunit, appointment of a fulltime project manager and identities ofunit and human resource development counterpart staff.

Assurances were provided by Government that suitable accounts would be main-tained, audited by an independent auditor acceptable to the Bank within ninemonths of the close of each GOI fiscal year. Assurances were also provided at

- 4 -

plan to incorporate annual DGE-wide human resource development activities intothe normal operations of the DGE. Government, by negotiations, had (a) appointedstaff to the agreed key posts in the project implementation unit; and (b) estab-lished the management Board.

Benefits

10. The project is expected to: (a) minimize the human resource relatedconstraint to estate crops subsector development; (b) create a body of welltrained subsector trainers at various levels; (c) improve the technical andmanagement capability of DGE, DISBUN, managers of other smallholder projectsand staff; (d) positively influence smallholder production through systematicfarmer leader training; and (e) contribute to improving the standard of livingof subsector smallholders through increased income from the application ofbetter husbandry and primary processing techniques.

Risks

11. While there are no major risks associated with the proposed projectit could face, in common with other development projects in Indonesia budge-tary constraints and problems of project coordination which could slow theimplemert.ation process. The project includes measures to alleviate theserisks.

Recommendation

12. I am satisfied that the proposed loan would comply with the Articlesof Agreement of the Bank and recommend that the Executive Directors approvethe proposed loan.

Barber B. ConablePresident

AttachmentsWashington, D.C.August 1, 1988

- 5 - Schedule A

INDONESIA

TREE CROPS HUMAN RESOURCE DEVELOPMENT PROJECT

Estimated Costs and Financing Plan

Estimated CostsLocal Foreign Total

=--- (US$ million)

Strengthening Directorate General of Estates:Human Resource Development/PIU 0.8 1.6 2.4Staff Development Program 0.1 0.7 0.8Management Information Systems Study 0.0 0.2 0.2

Subtotal 0.9 2.5 3.4

Improvement of Training Delivery Capacityin the SubsectorAAETE 1.6 1.2 2.8LPP 0.9 2.1 3.0MOA, Sec. Gen. 0.1 0.2 0.3

Subtotal 2.6 3.5 6.1

Improvement of Sectoral Productivity-Local Training:Project Management Units 5.5 0.6 6.1DTSBUN 0.4 0.1 0.5Public Estates (PTPs) 0.3 0.0 0.3Private Estates 0.2 0.0 0.2Farmer Leaders 4.2 0.8 5.0

Subtotal 10.6 1.5 12.1

Base Cost (July 1988) /a 14.1 7.5 21.6

Physical contingencies 1.5 0.7 2.2Price contingencies 2.3 0.5 2.8

Total Project Costs 17.9 8.7 26.6

Financing Plan:

Government 8.2 0.0 8.2Bank 9.7 8.7 18.4

Total 17.9 8.7 26.6

/a Inclusive of taxes and duties estimated at US$0.5 million equivalent.

-6- Schedule BPage 1

INDONESIA

TREE CROPS HUMAN RESOURCE DEVELOPMENT PROJECT

Procurement(US$ million)

Procurement Method TotalCategory of expenditure ICB LCB Other NA cost

Consultants 2.5 2.5(2.2) (2.2)

Fellowships 1.9 1.9(1.3) (1.9)

Training of Trainers 0.3 0.3(0.3) (0.3)

Local Training 14.6 14.6(12.0) (12.0)

Equipment, books and journals 1.9 0.5 0.5 2.9(1.4) (0.3) (0.3) (2.0)

Operating Costs 4.4 4.4(0.0) (0.0)

Total 1.9 0.5 19.8 4.4 26.6(1.4) (0.3) (16.7) (0.0) (18.4)

Note: Figures in parentheses are the respective amounts financed by the Bank.

Disbursements(US$ million)

Category Allocation % of expenditure to be disbursed

Consultants, overseas fellowships, 4.0 1001 of total expenditurestraining of trainers

T.ocal training (excluding consumable 11.3 100% of total expenditurestraining materials)

Equipment, vehicles, books, and 1.7 100l of foreign;journals 95% of local (ex-factory cost);

and 65% of local expenditures

Unallocated 1.4

Total 18.4

- 7 - Schedule BPage 2

Estimated Bank Disbursements(USS million)

Bank PY 1989 1990 1991 1992 1993 1994 1995

Annual 0.4 1.2 2.8 4.0 4.4 4.4 1.2Cumulative 0.4 1.6 4.4 8.4 12.8 17.2 1%2.4

-8- Schedule C

INDONESIA

TREE CROPS HUMAN RESOURCE DEVELOPMENT PROJECT

Timetable of Key Project Processing Events

(a) Time taken to prepare: One year

(b) Prepared by: Government with FAO/WorldBank assistance

(c) First Bank mission: January 1985

(d) Appraisal mission departure: May 1986

(e) Negotiations: July 13-19, 1988

(f) Planned Date of Effectiveness: December 30, 1988

(g) List of relevant PCRs and PPARs:

Credit/Loan Project PGR Date PPAR No.

Cr. 288-IND Second Education Project 07/11/78 3058Ln. 1237-IND Fourth Education Project 03/29/85 6312Ln. 1692-IND Agricultural Training II 09/30/86

- 7 - Schedule BPage 2

Estimated Bank Disbursements(US$ million)

Bark FY 1989 1990 1991 1992 1993 1994 1995

Annual 0.4 1.2 2.8 4.0 4.4 4.4 1.2

Cumulative 0.4 1.6 4.4 8.4 12.8 17.2 18.4

-8- Schedule C

INDONESIA

TREE CROPS HUMAN RESOURCE DEVELOPMENT PROJECT

Timetable of Key Project Processing Events

(a) Time taken to prepare: One year

(b) Prepared by: Government with FAO/WorldBank assistance

(c) First Bank mission: January 1985

(d) Appraisal mission departure: May 1986

(e) Negotiations: July 13-19, 1988

(f) Planned Date of Effectiveness: December 30, 1988

(g) List of relevant PCRs and PPARss

Credit/Loan Project PCR Date PPAR No.

Cr. 288-IND Second Education Project 07/11/78 3058Ln. 1237-IND Fourth Education Project 03/29/85 6312Ln. 1692-IND Agricultural Training II 09/30/86

9 - Schedule D

Page 1 of 4 pages

THE STATUS OF BANK GROUP OPERATIONS IN INDONESIA

A. STATEMENT OF BANK LOANS AND IDA CREDITS(as of March 31, 1988) /a

Loan/ Amount (USS million)Credit Fiscal (less cancellations)number year Purpose Bank IDA Undisbursed

Fifty-three Loans and forty-seven Credits fully 3,175.00 890.45 -disbursed

946 1980 Yogyakarta Rural Development - 12.00 2.571751 1980 Nucleus Estate and Smallholders III 92.00 - 2.551835 1980 Aiucleus Estate and Smallholders IV 30.00 - 12.101840 1980 National Agricultural Research 35.00 - 15.501872 1980 Ninth Power 218.18 - 3.891904 1981 University Development 45.00 - 10.021958 1981 Swamp Reclamation 22.00 - 0.731972 1981 Fourth Urban Development 43.00 - 0.812007 1981 Nucleus Estate and Smallholders V 127.16 - 54.052049 1981 Jakarta-Cikampek Highway 85.00 - 38.572056 1982 Eleventh Power 170.00 - 9.212066 1982 Second Seeds 15.00 - 2.612079 1982 Bukit Asam Coal Mining Development and

Transport 183.86 - 22.552083 1982 Rural Roads Development 85.00 - 10.052101 1982 Second Teacher Training 79.59 - 32.592102 1982 Second Textbook 25.00 - 7.092118 1982 Sixteenth Irrigation 37.00 - 6.392119 1982 Seventeenth Irrigation (East Java

Province) 70.00 - 21.352126 1982 Nucleus Estate and Smallholders VI 52.07 - 34.322153 1982 Coal Exploration Engineering 25.00 - 1.17

/a The status of the projects listed in Part A is described in a separate report onall Bank/IDA financed projects in execution, which is updated twice yearly andcirculated to the Executive Directors on April 30 and October 31.

- 10 - Schedule DPage 2 of 6 pages

Loan/ Amount (US$ million)Credit Fiscal (less cancellations)number year Purpose Bank IDA Undisbursed

2214 1983 Twelfth Power 300.00 - 121.552232 1983 Nucleus Estate and Smallholders VII 135.23 - 104.302235 1983 Provincial Health 27.00 - 12.202236 1983 Jakarta Sewerage and Sanitation 22.40 - 12.742248 1983 Transmigration III 94.00 - 10.062258 1983 Public Works Manpower Development 30.00 - 7.542275 1983 East Java Water Supply 30.60 - 2.562277 1983 Fifth BAPINDO 208.90 - 77.382288 1983 Transmigration IV 53.50 - 35.642290 1983 Second Polytechnic 107.40 - 45.932300 1983 Thirteenth Power Z79.00 - 59.892341 1984 Third Agricultural Training 63.30 - 20.322344 1984 Nucleus Estate and Smallholder Sugar 70.30 - 24.872355 1984 Second Nonformal Education 43.00 - 15.472375 1984 Second Provincial Irrigation Dev. 89.00 - 14.462404 1984 Highway Department 240.00 - 35.242408 1984 Fifth Urban Development 39.25 - 12.542430 1984 Third Small Enterprise Development 204.65 - 5.322431 1984 Second Swamp Reclamation 65.00 - 44.862443 1984 Fourteenth Power 210.00 - 79.302472 1985 Secondary Education and Management

Training 78.00 - 58.662474 1985 Upland Agriculture and Conservation 11.30 - 10.562494 1985 Smallholder Rubber Development II 109.00 - 97.322529 1985 Fourth Population 35.13 - 28.532542 1985 Second Health (Manpower Development) 39.00 - 33.512543 1985 Kedung Ombo Mulipurpose Dam and

Irrigation 156.00 - 124.512547 1985 Second University Development 147.00 - 119.762560 1985 West Tarum Canal Development 43.40 - 35.132577 1985 National Ports Development 111.00 - 93.422578 1985 Transmigration V 97.00 - 67.062599 1986 Science and Technology Training 93.00 - 66.002628 1986 Smallholder Cattle Development 32.00 - 23.282632 1986 Second East Java Water Supply 43.30 - 25.812636 1986 Second Nutrition and Community Health 33.40 - 27.232638 1986 Nusa Tenggara Agriculture Support 33.00 - 24.56

Schedule DPage 3 of 4 pages

Loan/ Amount (USS million)Credit Fiscal (less cancellations)number year Purpose Bank IDA Undisbursed

2649 1986 Central and West Java Irrigation 166.00 - 146.122690 1986 Gas Distribution 34.00 - 33.832702 1986 Export Development 64.50 - 46.132705 1986 Manpower Development and Training 58.10 - 46.922717 1986 Highway Maintenance and Betterment 300.00 - 196.682725 1986 Housing Sector Loan 200.00 - 116.282748 1987 Third National Agricultural Extension 55.00 - 50.552757 1987 Telecommunications Technical Assistance 14.50 - 12.282773 1987 Fisheries Support Services 24.50 - 23.172778 1987 Power Transmission & Distribution 226.00 - 215.382800 1987 BRI/KUPEDES Small Credit 101.50 - 81.712816 1987 Urban Sector Loan 270.00 - 142.032817 1987 Regional Cities Urban Transport 51.00 - 42.312879 1988 Industrial Energy Conservation 21.00 - 20.752880 1988 Irrigation Subsector 234.00 - 224.002881 1988 Second Rural Roads Development 190.00 - 190.002891 1988 Railway Technical Assistance /a 28.00 - 28.00

Total Bank loans and IDA credits 10,027.02 902.45

Of which has been repaid 1,054.05 34.75

Total now outstanding 8,972.97 867.70

Amount sold to third party 79.21 -

Total now held by Bank and IDA /b 8,893.76 867.70

Total undisbursed 3,481.77

/a Not yet effective.7b Prior to exchange adjustment.

- 12 - Schedule D

Page 4 of 4 pagas

B. STATEMENT OF IFC INVESTMENTS(as of March 31, 1988)

(US$ million)

UndisbursedOriginal Total including

Fiscal Type of commitments held participantsyear Obligor business Loan Equity Total by IFC portion

1971/74 P.T. Primatexco Textiles& fibers 4.0 0.8 4.8 -

1971 P.T. Unitex Textiles& fibers 2.5 0.8 3.3 0.8

1971/73/ P.T. Semen Cibinong Cement 46.0 5.8 51.8 4.874/76/841971 P.T. Kabel Indonesia Cables 2.8 0.3 3.1 - -1972/77/79 i.T. Daralon Textile Textiles

Manufacturing Corp. & fibers 5.7 1.5 7.2 - -1973 P.T. Jakarta Tourism 9.8 1.6 11.4 1.6 -

International Hotel1974 P.T. Private Development

Development Finance finance - 0.4 0.4 0.3 -Company of Indonesia

1974 P.T. Monsanto Electronics 0.9 - 0.9 - -1974 P.T. Kamaltex Textiles 3.7 0.7 4.5 - -1980 P.T. Papan Sejahtera Housing

finance 4.0 1.2 5.2 1.2 -1980 P.T. Supreme Indo- Dinnerware 11.1 0.9 12.0 - -

American1980/85/87 P.T. Semen Andalas Cement 48.5 5.0 53.5 22.1 -1982/85 P.T. Saseka Gelora Leasing 5.0 0.3 5.3 0.3 _

Leasing1985 P.T. Asuransi Jiwa /a Insurance 0.4 - 0.4 0.4 0.41986 P.T. Bali Holiday Tourism 9.8 - 9.8 3.5 3.51987 P.T. Monterado Mining 8.0 2.0 10.0 5.5 6.41987 P.T. Kalteng /a Mining - 1.4 1.4 1.4 1.4

Total 162.4 23.0 85.4 42.0 11.7

/a Agreements not yet signed as of March 31, 1988.

,L

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