Page 1 ISEB Tower 2, Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190 • Telephone (62-21) 5299 3000 • Facsimile: (62-21) 5299 3110 P.O. Box 1324/JKT, Jakarta 10013 • Telex: IBRDIA 60086 • Headquarters: The World Bank, Washington DC, USA CONFORMED COPY Letter No.:CD-421/PFM MDTF/IX/2010 September 6, 2010 Mr. Rahmat Waluyanto Director General of Debt Management Directorate General of Debt Management Ministry of Finance Jalan Lapangan Banteng Timur 2-4 Jakarta 10710 Dear Mr. Waluyanto: Re: Technical Assistance to Indonesia Tax Administration Reform under the Support Public Financial Management and Revenue Administration Multi Donor Trust Fund TF093998 - Amendment No. 2; Extension of Closing Date and Partial Cancellation We refer to the Grant Agreement, dated April 22, 2009, as amended through February 10, 2010, between the Republic of Indonesia (the Recipient) and the International Bank for Reconstruction and Development (the World Bank), as administrator of grant funds provided by the Commission of the European Communities and the Netherlands Minister for Development Cooperation for the Public Financial Management Multi-Donor Trust Fund (Parent Trust Fund No. TF070661), for the above-captioned project (the Grant Agreement), and to your letter, dated July 30, 2010, requesting (i) extension of the Closing date until October 31, 2012; and (ii) amendment of the Grant Agreement to reflect a cancellation of $30,000 of the amount of the Grant not needed to complete the Project. The World Bank concurs with your request and accordingly agrees to amend the Grant Agreement as follows: A. Extension of Closing Date . Accordingly, the World Bank has established October 31, 2012 as the later date for the purposes of Section 3.03 of the Annex to the Grant Agreement B. Cancellation and Amendment. The World Bank proposes to amend the Grant Agreement as set out below (Amendment No. 2). 1. The amount of the Grant is reduced by the cancelled amount of thirty thousand United States Dollars (US$ 30,000). The total amount of the Grant, following the cancellation, is two million three hundred forty three thousand two hundred United States Dollars (US$2,343,200). All terms and conditions applicable to the Grant, as set out in the Grant Agreement, remain in full force and effect. 2. The table in Section 3.01 of the Annex to the Grant Agreement is amended to reflect the cancellation set out in paragraph 1 of this Amendment No. 2 as follows: Page 2 Mr. Rahmat Waluyanto 2 of 3 September 6, 2010 Ministry of Finance ISEB Tower 2, Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190 • Telephone (62-21) 5299 3000 • Facsimile: (62-21) 5299 3110 P.O. Box 1324/JKT, Jakarta 10013 • Telex: IBRDIA 60086 • Headquarters: The World Bank, Washington DC, USA Except as specifically amended by the provisions of this letter of amendment, all terms and conditions of the Grant Agreement otherwise remain in full force and effect. Please confirm you agreement to the foregoing by signing and dating both enclosed copies of this letter in the space provided and returning one signed copy to us. The above amendment will become effective as of the date of the Recipient’s countersignature of this letter. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT/ INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Chris Hoban Chris Hoban Acting Country Director, Indonesia AGREED: REPUBLIC OF INDONESIA By: /s/ Rahmat Waluyanto Authorized Representative Name: Rahmat Waluyanto Title: Director General of Debt Management Date: September 20, 2010 Category Amount of the Grant Allocated (expressed in USD) Percentage of Expenditures to be Financed (1) Consultants’ Services 2,343,200 100% (2) Cancellation, effective July 30, 2010 30,000 TOTAL AMOUNT 2,373,200 Page 3 Mr. Rahmat Waluyanto 3 of 3 September 6, 2010 Ministry of Finance ISEB Tower 2, Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190 • Telephone (62-21) 5299 3000 • Facsimile: (62-21) 5299 3110 P.O. Box 1324/JKT, Jakarta 10013 • Telex: IBRDIA 60086 • Headquarters: The World Bank, Washington DC, USA CC: - Mr. Agus Suprijanto, Head of Government of Indonesia MCR Support Public Financial Management and Revenue Administration Multi Donor Trust Fund - Mr. Moch. Tjiptardjo, Director General of Taxes, Ministry of Finance - Mr. Maurin Sitorus, Director of Loan and Grant, Ministry of Finance - Mr. Paruli Lubis, Chair of Advisory Team of Support Public Financial Management and Revenue Administration Multi Donor Trust Fund, - Mr. Robert Pakpahan, Director Business Process Transformation, Directorate General of Taxes, Ministry of Finance - Mr. Moh. Hatta, Chair of Project Service and Supporting Unit, GFMRAP