THE WORLD BANK IBRD -IDA I WORLDBANKGROUP OFFICIAL RODRIGO A CHAVES Country Director. Indonesia and Timor-Leste DO CUM ENTS Letter No. CD-2 11 /WB/NAHP/XI/2017 November 30, 2017 Mr. Marwanto Harjowiryono Director General of Treasury Ministry of Finance Gd. Prijadi Praptosuhardjo I, 2nd Floor Jl. Lapangan Banteng Timur No. 2-4 Jakarta Pusat Dear Mr. Harjowiryono: Re: IBRD Loan 8717-ID (National Affordable Housing Program Project) Additional Instructions: Disbursement I refer to the Loan Agreement (the "Agreement") between the Republic of Indonesia (the "Borrower") and the International Bank for Reconstruction and Development (the "Bank") for the above-referenced project, dated November 30, 2017. The Agreement provides that the Bank may issue additional instructions regarding the withdrawal of the proceeds of IBRD Loan 8717-ID ("Loan"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The attached Disbursement Guidelines for Investment Project Financing, dated February 2017 ("Disbursement Guidelines") (Attachment 1), are an integral part of the Disbursement Letter. The manner in which the provisions in the Disbursement Guidelines apply to the Loan is specified below. Sections and subsections in parentheses below refer to the relevant sections and subsections in the Disbursement Guidelines and, unless otherwise defined in this letter, the capitalized terms used have the meanings ascribed to them in the Disbursement Guidelines. I. Disbursement Arrangements (i) Disbursement Methods (section 2). The following Disbursement Methods may be used under the Loan: * Reimbursement * Advance * Direct Payment (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four (4) months after the Closing Date specified in the Agreement. Any changes to this date will be notified by the Bank. (iii) Disbursement Conditions (subsection 3.8). Please refer to the Disbursement Condition(s) in the Loan Agreement. 1818 H Street NW * Washington. DC 20433 USA 2 of 7 8717-ID II. Withdrawal of Loan Proceeds (i) Authorized Signatures (subsection 3.1). Applications for this Loan will be signed by the officials authorized to sign Applications as indicated in the Ministry of Finance Letter No. S-3571/PB/2016 dated April 27, 2016. Please notify us promptly should there be any change in the authorized officials in this regard. (ii) Applications (subsections 3.3). Please provide completed and signed applications for withdrawal, together with supporting documents, to the address indicated below: The World Bank Office Jakarta (WBOJ) Jakarta Stock Exchange Building, Tower 2, 12"' Floor JL. Jenderal Sudirman Kay. 52-53, Jakarta 12190, Indonesia Attention: Disbursement Team (iii) Electronic Delivery (subsection 3.4) The Bank may permit the Borrower to electronically deliver to the Bank Applications (with supporting documents) through the Bank's Client Connection, web-based portal. The option to deliver Applications to the Bank by electronic means may be effected if: (a) the Borrower has designated in writing, pursuant to the terms of subparagraph (i) of this Section, 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. If the Bank agrees, the Bank will provide the Borrower with SIDC for the designated officials. Following which, the designated officials may deliver Applications electronically by completing Form 2380, which is accessible through Client Connection (https://clientconnection.worldbank.org). 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. (iv) Terms and Conditions of Use ofSIDC to Process Applications (subsection 3.2). 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 ("Terms and Conditions of Use of Secure Identification Credentials") provided in Attachment 2; and (b) to cause such official to abide by those terms and conditions. (v) Minimum Value ofApplications (subsection 3.5). The Minimum Value of Applications for direct payment and reimbursement is US$100,000. (vi) Advance (sections 5 and 6). * Type of Designated Account (subsection 5.3). Segregated. One (1) segregated designated account will be established for the Project and managed by the Treasury Department of the Ministry of Finance. * Currency of Designated Account (subsection 5.4): USD. 1818 H Street NW - Washington [C 20433 USA 3 of 7 8717-ID * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): Bank Indonesia. * Ceiling (subsection 6.1). Variable and based on forecast for two (2) quarters as provided in the quarterly Interim Financial Report. III. Reporting on Use of Loan Proceeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as set out below: * For requests for Reimbursement: " List of payments against contracts that are subject to the Bank's prior review, in the form attached (Attachment 3, Statement 1-B); o Statement of Expenditure in the form attached (Attachment 3, Statement 1-C and 1-C2) for all other contracts and/or expenditures; and o Interim Financial Reports in the form attached (Attachment 3, Statement IFR-1 and IFR- 2). * For reporting eligible expenditures paid from the Designated Account: o List of payments against contracts that are subject to the Bank's prior review, in the form attached (Attachment 3, Statement 1-B); o Statement of Expenditure in the form attached (Attachment 3, Statement 1-C and 1-C2) for all other contracts and/or expenditures: 0 Statement of Project Cash Forecast (Attachment 3, Statement 1-D); o Interim Financial Reports in the form attached (Attachment 3, Statement IFR-1 and IFR- 2); and o Designated Account Reconciliation Statement in the form attached (Attachment 3, Statement 1-A) and bank statements. * For requests for Direct Payment: Records evidencing eligible expenditures, e.g., copies of receipts, supplier invoices. (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): The period set out in the Loan Agreement for provision of Interim Financial Reports, i.e. quarterly. IV. Other Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the Bank's public website at https://www.worldbank.org and its secure website "Client Connection" at https://clientconnection.worldbank.org. Print copies are available upon request. If you have not already done so, the Bank recommends that you register as a user of the Client Connection website (https://clientconnection.worldbank.org). From this website you will be able to prepare 1818 H Street NW * Washineton. D( 20433 USA 4 of 7 8717-ID and deliver Applications, monitor the near real-time status of the Loan, and retrieve related policy, financial, and procurement information. All Borrower officials authorized to sign and deliver Applications by electronic means are required to register with Client Connection before electronic delivery can be effected. For more information about the website and registration arrangements, please contact the Bank by email at . If you have any queries in relation to the above, please contact Chau-Ching Shen, Senior Finance Officer at WFALN MANILAL&worldbank.org or the Disbursement Team in WBOJ using the above reference. Yours sincerely, Rodrig .Chav Country D ,one ria Attachments 1. Disbursement Guidelines for Investment Project Financing, dated February 2017 2. Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, dated March 1, 2013 3. Form of Interim Financial Report Cc with copies: - Maurin Sitorus, Directorate General of Housing Finance - Syarif Burhanuddin, Director General of Housing Provision 1818 H Street NW - Washington. DL 20433 USA 5 of 7 8717-ID Attachment 2 Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation March 1, 2013 The World Bank (Bank)' will provide secure identification credentials (SIDC) to permit the Borrower2 to deliver applications for withdrawal and applications for special commitments under the Agreement(s) and supporting documentation (such applications and supporting documentation together referred to in these Terms and Conditions of Use as Applications) to the Bank electronically, on the terms and conditions of use specified herein. SIDC can be either: (a) hardware-based (Physical Token), or (b) software-based (Soft Token). The Bank reserves the right to determine which type of SIDC is most appropriate. A. Identification of Users. 1. The Borrower will be required to identify in a completed Authorized Signatory Letter (ASL) duly delivered to and received by the Bank each person who will be authorized to deliver Applications. The Bank will provide SIDC to each person identified in the ASL (Signatory), as provided below. The Borrower shall also immediately notify the Bank if a Signatory is no longer authorized by the Borrower to act as a Signatory. 2. Each Signatory must register as a user on the Bank's Client Connection (CC) website (https://clientconnection.worldbank.org) prior to receipt of his/her SIDC. Registration on CC will require that the Signatory establish a CC password (CC Password). The Signatory shall not reveal his/her CC Password to anyone or store or record the CC Password in written or other form. Upon registration as a CC user, the Signatory will be assigned a unique identifying account name. B. Initialization of SIDC. 1. Prior to initialization of SIDC by a Signatory, the Signatory will acknowledge having read, understood and agreed to be bound by these Terms and Conditions of Use. 2. Where a Physical Token is to be used, promptly upon receipt of the Physical Token, the Signatory will access CC using his/her account name and CC Password and register his/her Physical Token and set a personal identification number (PIN) to be used in connection with the use of his/her Physical Token, after which the Physical Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Where a Soft Token is to be used, the Signatory will access CC using his/her account name and CC Password and set a personal identification number (PIN) to be used in connection with the use of his/her Soft Token, after which '"Bank" includes IBRD and IDA. 2 "Borrower" includes the borrower of an IBRD loan, IDA credit, or Project Preparation Facility advance and the recipient ofa grant. 1818 H Street NW - Washington, [X 20433 USA 6 of 7 8717-ID the Soft Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Upon initialization of the SIDC, the Signatory will be a "SIDC User". The Bank will maintain in its database a user account (Account) for each SIDC User for purposes of managing the SIDC of the SIDC User. Neither the Borrower nor the SIDC User will have any access to the Account. 3. Prior to first use of the SIDC by the SIDC User, the Borrower shall ensure that the SIDC User has received training materials provided by the Bank in use of the SIDC. C. Use of SIDC. 1. Use of the SIDC is strictly limited to use in the delivery of Applications by the SIDC User in the manner prescribed by the Bank in the Agreement(s) and these Terms and Conditions. Any other use of the SIDC is prohibited. 2. The Bank assumes no responsibility or liability whatsoever for any misuse of the SIDC by the SIDC User, other representatives of the Borrower, or third parties. 3. The Borrower undertakes to ensure, and represents and warrants to the Bank (such representation and warranty being expressly relied upon by the Bank in granting SIDC) that each SIDC User understands and will abide by, these Terms and Conditions of Use, including without limitation the following: 4. Security 4.1. The SIDC User shall not reveal his/her PIN to anyone or store or record the PIN in written or other form. 4.2. The SIDC User shall not allow anyone else to utilize his/her SIDC to deliver an Application to the Bank. 4.3. The SIDC User shall always logout from CC when not using the system. Failure to logout properly can create a route into the system that is unprotected. 4.4. If the SIDC User believes a third party has learned his/her PIN or has lost his/her Physical Token he/she shall immediately notify clientconnection(aworldbank.org. 4.5. The Borrower shall immediately notify the Bank at clientconnection(aworldbank.org of any lost, stolen or compromised SIDC, and take other reasonable steps to ensure such SIDC are disabled immediately. 5. Reservation of Right to Disable SIDC 5.1. The Borrower shall reserve the right to revoke the authorization of a SIDC User to use a SIDC for any reason. 5.2. The Bank reserves the right, in its sole discretion, to temporarily or permanently disable a SIDC, de-activate a SIDC User's Account or both. 1818 H Street NW - Washington. D( 20433 USA 7 of 7 8717-ID 6. Care of Physical Tokens 6.1. Physical Tokens will remain the property of the Bank. 6.2. The Bank will physically deliver a Physical Token to each Signatory designated to receive one in a manner to be determined by and satisfactory to the Bank. 6.3. Physical Tokens contain delicate and sophisticated instrumentation and therefore should be handled with due care, and should not be immersed in liquids, exposed to extreme temperatures, crushed or bent. Also, Physical Tokens should be kept more than five (5) cm from devices that generate electromagnetic radiation (EMR), such as mobile phones, phone-enabled PDAs, smart phones and other similar devices. Physical Tokens should be carried and stored separate from any EMR device. At close range (less than 5 cm), these devices can output high levels of EMR that can interfere with the proper operation of electronic equipment, including the Physical Token. 6.4. Without derogating from these Terms and Conditions of Use, other technical instructions on the proper use and care of Physical Tokens are available at http://www.rsa.com. 7. Replacement 7.1. Lost, damaged, compromised (in terms of 4.5, above) or destroyed Physical Tokens will be replaced at the expense of the Borrower. 7.2. The Bank reserves the right, in its sole discretion, not to replace any Physical Token in the case of misuse, or not to reactivate a SIDC User's Account. 1818 H Street NW - Washington, DX 20433 USA 1-A National Affordable Housing Program Project Designated Account Activity Statement for the Reporting Period Bank and Account No: IDR Part I 1. Cummulative advances to end of current reporting 2. Cummulative expenditures to end of last reporting 3. Outstanding advances to be accounted (1-2) Part II 4. Opening SA balance at beginning of reporting period 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) (must be same as item 3) 9. Closing SA balance at end of current reporting 10. Add/substract: Cummulative adjusment (if any) ** 11. Expenditures for current reporting period 12. Add 10+11 13. Add 9+12 14. Difference (if any) 8-13 Part III 15. Total Forecasted amount to be paid by World Bank 16. Less: Closing SA balance (as peritem9) 17. Cumulative adjustment (if any) **** 18. Add 16+17 19. Cash requirement from WB for next four months (15-18) 20. Amount requested for advance to DA (rounding) * Explanation for item 5 (if not Zero): IFR & WA Ref. Amount (+/-) Remarks Total - ** Explanation for item 10 (if not Zero): IFR & WA Ref. Amount (+/-) Remarks ***Explanation for item 14 (if not Zero): IFR & WA Ref. Amount (+/-) Remarks 1-B2 National Affordable Housing Program Project Detail for Payments of Contracts Subject to Prior Review For period: Ln/CrrTF No. Sheet No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Item Disbursement Category Cross-Ref Date of Contract Supplierl Contract Total Amount WB Amount of Amount WB's No. SPHL SPHL Voucher Payment No. Contractor Value Paid to Financing WB portion Charged contract Cat No. Description No date No. and Date Name (incl. VAT) Contractor % paid to DA ref. (IDR) -I GRAND TOTAL - */ Please have a seperate line item if the WB'financing percentage is different "I Please check these ref through Client Connection National Affordable Housing Program Project Summary Statement of Contract NOT Subject to Prior Review For Period: 1 2 3 4 5 6 7 8 Item Number of Country of Total Paid WB Amount of Amount Disbursement Payment supplier to Contractors Financing WB portion Charged No. Paymet_suplie/_toContactos/_Fiancig_WBporton_Carge Cat Description covered consultant/ Expenditures % paid to SA No. training (IDR) TOTAL National Affordable Housing Program Project Detail for Payments of Contracts NOT Subject to Prior Review For period: Ln/Cr/TF No. Sheet No. 1 2 3 4 5 6 7 8 9 10 11 12 13 Item Disbursement Category Cross-Ref Date of Contract Supplier/ Contract Total Amount WB Amount of Amount No. SPHL SPHL Voucher Payment No. Contractor Value Paid to Financing WB portion Charged Cat No. Description No date No. and Date Name (incl. VAT) Contractor % paid to DA (IDR) GRAND TOTAL - National Affordable Housing Program Project Project Cash Forecast For the period: (a) (b) (c)=(a)+(b) (d) (e) GOI+WB GOI+WB Total Cash GOI WB Disbursement Category Cash Requirement Cash Requirement Requirement for Cash Requirement Cash Requirement for Quarter ending Additional 1 month next four months next four months next four months (IDR) (IDR) (IDR) (IDR) (IDR) Total IFR-1 National Affordable Housing Program Project Project Sources and Uses of Funds for the Reporting Period: Currency : IDR Actual / iii Planned Variance % Disbursement Category Current Year-To Cumulative Current Year-To Cumulative Current Year-To CumulatiV Quarter /ii Date To-Date/iii Quarter lii Date To-Date/liii Quarter i Date To-Date/iii 1 2 3 4 5 6 7=1/4 8=5/5 9=3/6 Sources of Funds GOI The World Bank Other Donor/lender Total Sources of Fund Uses of Funds (by Category) Non Bank Financed (Rupiah Murni) Total Uses of Fund IFR-2 National Affordable Housing Program Project Project Uses of Funds by Category for quarter ending: currency : IDR Expenditures in the Current Quarter Uses of Funds (by Category) */ Outstanding (no charged to WB Total GOI counterpart Others Donor SPHL yet) Sp.Acct IDR IDR IDR IDR IDR 1 2 3 5 7 Non Bank Financed (Rupiah Murni) Total Uses of Fund Expenditures in Year to Date Uses of Funds (by Category) */ Outstanding (no charged to WB Total GOI counterpart Others Donor SPHL yet) Sp.Acct IDR IDR IDR IDR IDR 1 2 3 5 7 Non Bank Financed (Rupiah Murni) Total Uses of Fund :J Cumulative Expenditures to Date Uses of Funds (by Category) */ Outstanding (no charged to WB Total GOI counterpart Others Donor SPHL yet) Sp.Acct IDR IDR IDR IDR IDR 1 2 3 5 7 Non Bank Financed (Rupiah Murni) Total Uses of Fund