THE WORLD BANK OFFICIAL 18RD -IDA I WORLDBANKGROUP DOCUM ENTS RODRIGO A. CHAVES Country Director, Indonesia and Timor-Leste Letter No. CD-171/WB/NUDP/XI/2019 November 15, 2019 Mr. Andin Hadiyanto Director General of Treasury Ministry of Finance Gd. Prijadi Praptosuhardjo I, 2nd Floor Jl. Lapangan Banteng Timur No. 2-4 Jakarta Pusat Dear Mr. Hadiyanto: Re: IBRD Loan 8976-ID (National Urban Development Project) Additional Instructions: Disbursement and Financial Information Letter (DFIL) I refer to the Loan Agreement between the Republic of Indonesia (the "Borrower") and the International Bank for Reconstruction and Development (the "Bank") for the above-referenced project. The General Conditions, as defined in the Loan Agreement, provide that the Bank may issue additional instructions regarding the withdrawal of the proceeds of IBRD Loan No.8976-ID ("Loan"), and specify certain financial management reporting and audit requirements. This letter ("Disbursement and Financial Information Letter" or "DFIL"), as revised from time to time, constitutes such additional instructions. The Disbursement Guidelines for Investment Project Financing dated February 2017, ("Disbursement Guidelines") are available in the Bank's public website at https://www.worldbank.org and its secure website "Client Connection" at https://clientconnection.worldbank.or . The Disbursement Guidelines are an integral part of this Disbursement and Financial Information Letter, and the manner in which the provisions in the guidelines apply to the Loan is specified below. I. Disbursement Arrangements, Withdrawal of Loan Proceeds and Reporting of Use of Loan Proceeds (i) Disbursement Arrangements: * Instructions (Schedule 1). The table provides the disbursement methods, information on registration of authorized signatures, processing of withdrawal applications (including minimum value of applications and processing of advances), instructions on supporting documentation, and frequency of reporting on the Designated Account. 1818 H Street NW - Washington, DC 20433 USA 2 of 4 LN 8976-ID * Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications for Reimbursement, Direct Payment and Special Commitment is USD100,000 equivalent. * Disbursement Deadline Date, DDD (subsection 3.7). The DDD is four (4) months after the Closing Date. Any changes to this date will be notified by the Bank. (ii) Electronic Delivery. Refer to section 10.01 (c) of the General Conditions: * The Bank may permit the Borrower to electronically deliver applications (with supporting documents) through the Bank's web-based portal (https://clientconnection.worldbank.org) "Client Connection". This option may be effected if: (a) the Borrower has designated in writing, its officials who are authorized to sign and deliver Applications and to receive Secure Identification Credentials ("SIDC") from the Bank for the purpose of delivering such Applications by electronic means; and (b) all such officials designated by the Borrower have registered as users of "Client Connection". The designated officials may deliver Applications electronically by completing the Form 2380, which is accessible through "Client Connection". The Borrower may continue to exercise the option of preparing and delivering Applications in paper form. The Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Borrower. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Borrower confirms through the authorized signatory letter its agreement to: (a) abide by the Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, available in the Bank's public website at https://www.worldbank.org and "Client Connection"; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits. (i) Financial Reports. The Borrower shall prepare and furnish to the Bank not later than forty- five (45) days after the end of each calendar quarter, interim unaudited financial reports (IFR) for the Project covering the quarter. (ii) Audits. Each audit of the Financial Statements shall cover the period of one fiscal year of the Borrower, commencing with the fiscal year in which the first withdrawal was made. The audited Financial Statements for each such period shall be furnished to the Bank not later than six (6) months after the end of such period. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Bank's public website and "Client Connection". The Bank recommends that you register as a user of "Client Connection". From this website you will be able to prepare and deliver Applications, monitor the near real-time status of the Loan, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, please contact the Bank by email at askloans(&worldbank.org. 1818 H Street NW * Washington, DC 20433 USA 3 of 4 LN 8976-ID If you have any queries in relation to the above, please contact Chau-Ching Shen, Senior Finance Officer at cshenCworldbank.org or the Disbursement Team in WBOJ using the above reference. Yours sincerely, Rodrig .Ch s Country Director, Indo e d Timor- este Attachment 1. Interim unaudited Financial Report (IFR) With copies to: Mr. Hadi Sucahyono Head of Regional Infrastructure Development Agency Ministry of Public Works and Housing Jalan Pattimura No. 20, Kebayoran Baru Jakarta Selatan, Indonesia Hadisucahyonol@gmail.com Mr. Rudy Soeprihadi Prawiradinata Deputy Minister for Regional Development Ministry of National Development Planning/National Development Planning Agency (BAPPENAS) Jalan Taman Suropati No. 2 Jakarta Pusat, Indonesia rudysp@bappenas.go.id Mr. Muhammad Hudori Director General of Regional Development Ministry of Home Affairs Jalan Taman Makam Pahlawan No. 20 Kalibata Jakarta Selatan, Indonesia rencana-bangda@yahoo.com Mr. Scenaider C. H. Siahaan Director of Loans and Grants Ministry of Finance Gedung Frans Seda JI. DR Wahidin Raya No. 1 Jakarta Pusat, Indonesia direktoratph@kemenkeu.go.id 1818 H Street NW - Washington, DC 20433 USA 4 of 4 LN 8976-ID Schedule 1 Disbursement Arrangements Asliinformtnn Country Republic of Indonesia IBRD Loan Number 8976-ID Borrower Ministry of Finance Name of the Project National Urban Development Project Disbursement Methods Methods Available Supporting Documentation Section 2 (*) Subsections 4.3 and 4.4 (*) Direct Payment Yes Copy of Records Reimbursement Yes Interim unaudited Financial Report (Attachment 1) Advance Yes Interim unaudited Financial Report (Attachment 1) Special Commitment Yes Copy of Letter of Credit Deinated Account (Section5ad6 * Segregated. One (1) segregated designated account will be Type established for the Project and managed by the Directorate General Ceiling Variable of the Treasury Department of the Ministry of Finance Financial Institution - A bank as determined by Ministry of Finance acceptable to the Currency USD Name Bank Frequency of Reporting, Same as IFRs, i.e. Quarterly Amount Forecast of two (2) quarters Subsection 6.3 (*) AotedS~jathM e (tbs~ction 1,1d3. * Applications for this Loan will be signed by the officials authorized to sign Applications as indicated in the Ministry of Finance Letter No. S- 841/PB/2019 dated July 11, 2019. Please notify the Bank promptly should there be any change in the authorized officials in this regard. #lithdrawal and AintanP ipeons (Subsecftio 3.3 and 3.4 *) Please provide completed and signed applications for withdrawal, together with supporting documents, to the address indicated below: The World Bank Office Jakarta (WBOJ) Indonesia Stock Exchange Building, Tower 2, 12" Floor JL. Jenderal Sudirman Kay. 52-53, Jakarta 12190, Indonesia Attention: Disbursement Team * Sections and subsections indicated relate to the Disbursement Guidelines for Investment Project Financinz dated February 20 1-A National Urban Development Project TF No. ........................... Special Account Activity Statement F o r t h e R e p o rtin g P e rio d .................2 0 .. - ................ 2 0 ... Special Account No: USD Part I 1. Cummulative advance to end of current reporting period 2. Cummulative expenditures to end of last reporting period - 3. Outstanding advance to be accounted (1-2) - Part II 4. Opening SA balanced at beginning of reporting period as of ........... 20 5. Add/Substract : Cummulative adjustments (if any) * - 6. Advances from the World Bank during reporting period - 7. Add 5 and 6 8. Outstanding advances to be accounted for (4+7) - 9. Closing SA balance at end of current reporting (as of ........... 20...) 10. Add/substract: Cummulative adjusments (if any) **_- 11. Expenditures for current reporting period - 12. Add 10+11 13. Add 9+12 14. Difference (if any) 8-13 Part Ill 15. Total Forecasted amount to be paid by World Bank 16. Less: Closing SA balance after adjusment - 17. Add/substract: Cummulative adjusments (if any) **** 18. Add 16+17 19. Cash requirement from WB for next six months (15-18) - 20. Round Down Note *Explanation for item 5 (if not zero): JFMR & AW Ref. Amount (+/-) *Explanation for item 10 (if not Zero): JFMR & AW Ref. Amount (+/-) **Explanation for item 14 (if not Zero): JFMR & AW Ref. Amount (+/-) ***Explanation for item 17 (if not Zero): JFMR & AW Ref. Amount (+/-) 1-B National Urban Development Project TF No.......................... Summary Sheet for Payment of Contract Subject to Prior Review Quarter: .............. 20... 1 2 3a 3b 4 5 6 7 8 9 10 11 12.00 13 Item Disbursement Category Office Cross-Ref Date of Contract Supplier/ Contract Total Amount WB Amount of Exchange Amount WB's No. Issuing SP2D Payment No. Contractor Value Paid to Financing WB portion Rate Charged contract Cat No. Description SP2D No. (SP2D) and Date Name (incl. VAT) Contractor % paid Applied to SA ref. (GOI+IBRD+PPN) (USD eqv) **/ (1) Consultants Services, non- consulting service, training, workshops, goods and incremental operating costs GRAND TOTAL -_- 1-C National Urban Development Project TF No ................. Summary Statement of Expenditures (Sum-SOE) Quarter ................. 20 ... Sheet No. 1 1 2 3 4 5 6 7 8 9 10 Item Disbursement Category Threshold Number of Country of Total Paid WB Amount of Average Amount No. for SP2D supplier/ to Contractors/ Financing WB portion Exchange Charged Cat No. Description SOEs covered consultant/ Expenditures % paid Rate to SA (USD eqv) training (GOI+IBRD+PPN) (USD eqv) (1) Consultants Services, non-consulting service, training, workshops, goods and incremental operating costs GRAND TOTAL 1-C2 National Urban Development Project TF No. .................... Statement of Expenditures Detail Expenditures for Contracts Not Subject to Prior Review Quarter : ......................... 20 1 2 Sa3b 4 5 6 7 8 9 10 11 12 Item Disbursement Category Office Cross-Ref Date of Contract Supplier/ Contract Total Amoutt WB Amount of Exchange Amount No. Issuing SP2D Payment No. Contractor Value Paid to Financing WB portion Rate Charged Cat No. Description SP2D No. (SP2D) and Date Name (incl. Add) Contractor % paid Applied to SA (GOI+IBRD+PPN) (USD eqv) (1) Consultants Services, non-consulting service, training, workshops, goods and incremental operating costs GRAND TOTAL 1-D National Urban Development Project TF No ........................... Project Cash Forecast For the Quarter Ending .................., 20. ()(b) (c)=(a)+(Ib) (d) (e)(f Cash Cash Total Cash GOI WB WB Disbursement Category Requirement for Cash Requirement Requirement for Cash Requirement Cash Requirement Cash Requirement Quarter ending for Quarter ending next two quarters next two quarters next two quarters next two quarters .., 20.. ... 20 six months) (six months) (six months) (six months) lIR) (lD) I)lD(IDR) (IDR) (USD)D 1 CConsultants Services, non-consulting service, training, workshops, goods and incremental operating costs Total NOTE Exchange rate applied = Rp . / USD IFR-1 National Urban Development Project TF No. .................... Project Sources and Uses of Funds for the quarter ending ..............., 20 currency: Actual / i Planned Variance % Current Year-To Cumulative Current Year-To Cumulative Current Year-To Cumulative Quarter Date To-Date Quarter Date To-Date Quarter Date To-Date 1 2 3 4 5 6 7=1/4 8=2/5 9=3/6 Sources of Funds 1 GOI (Counterpart, Rp. Murni, outstanding SBUN) 2 The World Bank Total Sources of Funds Uses of Funds (by Category) 1 Consultants Services, non-consulting service, training, workshops, goods and incremental operating costs Non Bank Financed (Rupiah Murni) Total Uses of Funds IFR-2 National Urban Development Project TF No. .............. Project Uses of Funds by Category for the quarter ending .............. 20.... Expenditures in the Current Quarter Uses of Funds (by Category) *Others Direct charged to W Total GOI counterpart Donor Payment Outstanding charged to WB 5p.Acc Sp.Acct Rp Rp Rp Rp Rp Us$ 1 2 3 4 5 6 7 1 Consultants Services, non-consulting service, training, workshops, goods and incremental operating costs Non Bank Financed (Rupiah Murni) Total Uses of Fund Average Exchange rate: Expenditures in Year to Date Uses of Funds (by Category) / Others Direct charged to WS Total GOI counterpart Donor Payment Outstanding charged to WB Sp.Acc Sp.Acct Rp Rp R Rp US$ 8 9 10 11 12 13 14 1 Consultants Services, non-consulting service, training, workshops, goods and incremental operating costs Non Bank Financed (Rupiah Murni) Total Uses of Fund Average Exchange rate: Cumulative Expenditres to Date Uses of Funds (by Category) / Others Direct charged to WB Total GOI counterpart Donor Payment Outstanding charged to WS Sp.Acc Sp.Acct Rp Rp Rp Rp Rp us$ is 16 17 18 19 20 21 1 Consultants Services, non-consulting service, training, workshops, goods and incremental operating costs Non Bank Financed (Rupiah Murni) Total Uses of Fund Average Exchange rate: * Please have a seperate line item if the WB financing percentage is different