OFFICIAL THE WORLD BCUMENTS 11RD I WORLDBANKGROuPMU E T RODRIGO A CHAVES Country Director, Indonesia and Timor-Leste Letter No. CD-205/WB/XI/2017 November 23, 2017 Mr. Robert Pakpahan Director General of Budget Financing and Risk Management Ministry of Finance Gedung Frans Seda JI. DR. Wahidin Raya No. 1 Jakarta 10710 Indonesia Dear Mr. Pakpahan: Re: Republic ofIndonesia: Western Indonesia National Roads Improvement Project Loan No. 8043-ID Amendment No. 4 We refer to the Loan Agreement ("Loan Agreement"), dated December 14, 2011, as amended through September 27, 2016, between the Republic of Indonesia (the "Borrower") and the International Bank for Reconstruction and Development (the "Bank") for the Western Indonesia National Roads Improvement Project (the "Project"). We also refer to your letter dated November 6, 2017 requesting the Bank to: (i) reallocate Loan proceeds; (ii) extend the Closing Date; (iii) amend the Loan Agreement to reflect a change in the Project description, institutional arrangements and the list of Work Program Sub-projects. We are pleased to inform you that, after due consideration, the Bank accedes to your request. Accordingly, the Bank: (i) hereby reallocates the Loan proceeds in the withdrawal table in Section IV.A.2 of Schedule 2 to the Loan Agreement as shown in the revised table in Attachment I to this amendment letter; (ii) has established December 31, 2018 as the later date for purposes of Section IV.B.2 to the Loan Agreement; and (iii) proposes to amend the Loan Agreement as set out below in this amendment letter (the "Amendment"). 1. Part 1 of the Project Description in Schedule 1 of the Loan Agreement is amended and restated as follows: "Part 1: Betterment and Capacity Expansion of National Roads. Betterment (including base course strengthening, minor widening, providing a new asphalt wearing course and improving drainage); and capacity expansion of approximately 578 kilometers of National Roads, including replacement of approximately 160 meters of bridges." 1818 H Street NW * Washington, DC 20433 USA Mr. Robert Pakpahan 2 Loan No. 8043-ID 2. Section I.A.3 of Schedule 2 to the Loan Agreement is amended to read as follows: 3. "Regional Project Implementation Units (Balai). Except as the Borrower and the Bank shall otherwise agree in writing, the Borrower, through DGH, shall ensure that Balai II shall be the Regional Project Implementation Unit for Sub-Projects in North Sumatera Province, Balai III shall be the Regional Project Implementation Unit for Sub-Projects in West Sumatera Province and Bengkulu Province and Balai V shall be the Regional Project Implementation Unit for Sub-projects in Lampung Province, in each case until completion of the Project." 4. Annex 1 to Schedule 2 (Work Program Sub-Projects) is amended as stated in Attachment 2 of this Amendment. 5. Appendix ("Definitions"): Paragraph 5 on the original "Balai I" is amended to read as follows: "5. "Balai II" means the Balai related to the Project that includes North Sumatera Province, a Project Province, and which is part of the Project implementation arrangements as set out in paragraph 3 of Section L.A of Schedule 2 to this Agreement." 6. Appendix ("Definitions"): Paragraph 6 on the original "Balai II" is amended to read as follows: "6. "Balai III" means the Balai related to the Project that includes West Sumatra Province and Bengkulu Province, which are Project Provinces and which is part of the Project implementation arrangements as set out in paragraph 3 of Section l.A of Schedule 2 to this Agreement." 7. Appendix ("Definitions"): Paragraph 7 on the original "Balai III" is amended to read as follows: "7. "Balai V" means the Balai related to the Project that includes Lampung Province, a Project Province, and which is part of the Project implementation arrangements as set out in paragraph 3 of Section L.A of Schedule 2 to this Agreement." 8. Appendix ("Definitions"): The term "Project Implementation Unit" is amended to read as follows: "33. "Regional Project Implementation Unit" means each of Balai II, Balai III, and Balai V, in its function as the implementation unit for the Project in its respective Provinces." Unless the context otherwise requires and except where otherwise defined in this Amendment, all capitalized terms contained herein shall have the meanings given to them in the Loan Agreement. Except as specifically set out in this Amendment, all terms and conditions in the Loan Agreement remain unchanged. 1818 H Street NW * Washington. DC 20433 USA Mr. Robert Pakpahan 3 Loan No. 8043-ID Please confirm your agreement to the foregoing on behalf of the Borrower by countersigning and dating the corresponding form of confirmation set forth below, and returning one fully countersigned original of this Amendment to us. Upon receipt by the Bank of this Amendment duly countersigned by an authorized representative of the Borrower, the above amendments to the Loan Agreement shall become effective. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT odr o . Chaves Country Dire , In nesia and Timor Leste CONFIRMED: REPUBLIC OF I ONESIA By: Name: LLY-Y ALF-M-AA Title: P1REOTOV 6CAGFAL- OF UP&ET flMA&WAS Date: Hct SreN *Waigo 2017D 18 18 H Street NW -Washington, DC 20433 USA Mr. Robert Pakpahan 4 Loan No. 8043-ID Attachment 1 Revised Withdrawal Schedule (Section IV.A.2 of Schedule 2) Amount of the Loan Percentage of Category Allocated Expenditures to be (expressed in USD) financed (inclusive of Taxes) (1) Civil Works under Part 1 of the Project 225,400,000 70% (2) Goods, Non-consulting Services, 17,000,000 100% Consultants Services and Incremental Operating Costs* under Part 2 of the Project (3) Goods, Non-consulting services and 0 100% Consultants' Services under Part 3 of the Project (4) Works, Goods, Non-Consulting 0 100% Services, Consultants' Services and Incremental Operating Costs* under Part 4 of the Project (5) Unallocated 7,600,000 Total amount 250,000,000 1818 H Street NW * Washington. DC 20433 USA Mr. Robert Pakpahan 5 Loan No. 8043-ID Attachment 2 REVISED ANNEX 1 TO SCHEDULE 2 Work Program Sub-Projects No. Sub-project Province List of WP-1 Proposed Sub-Projects 1 Krui - Biha Lampung 2 Padang Sawah - Sp. Empat including the Air Gadang Bridge West Sumatra 3 Manggopoh - Padang Sawah West Sumatra 4 Ipuh - Bantal Bengkulu List of WP-2 Proposed Sub-Projects 5 Simpang Rampa - Poriaha North Sumatra 6 Ps. Pedati - Kerkap Bengkulu 7 Indrapura - Tapan West Sumatra 8 Bts. Kota Pariaman - Manggopoh West Sumatra 9 [DELETED AND INTENTIONALLY LEFT BLANK] 10 [DELETED AND INTENTIONALLY LEFT BLANK] 11 Bantal - Mukomuko Bengkulu 12 Kambang Indrapura West Sumatra 13 Sp Rukis - Tj Kemuning Bengkulu List of WP-3 Proposed Sub-Projects 14 Painan - Kambang West Sumatra 15 Sibolga Batas TapSel North Sumatra 16 Seblat - Ipuh including Air Lalang & Air Guntung bridge Bengkulu 17 Sp. Gng Kemala - Pugung Tampak Lampung 18 [DELETED AND INTENTIONALLY LEFT BLANK] 19 Lais - Bintuan Bengkulu 20 Lubuk Alung - Sicincin West Sumatra 21 Lubuk Alung - Kuraitaji West Sumatra 1818 H Street NW - Washington. DC 20433 USA