Page  1
1818 H Street N.W. 
(202) 473-1000 
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 
Washington, D.C.  20433 
 
The World Bank 
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 
INTERNATIONAL DEVELOPMENT ASSOCIATION
 
WORLD BANK OFFICE JAKARTA
 
JSEB Tower 2, Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190 
Telephone: (62-21) 52993000 
·
Facsimile: (62-21) 52993111
 
able 
 
CONFORMED
 I
COPY
TBAFRAD
 
RDRAFD  
 
 
Letter 
No. 
331/COREMAP/VI/2010 
      June 
30, 
2010 
 
Mr. Rahmat Waluyanto  
Director General of Debt Management 
Ministry of Finance 
Jalan Lapangan Banteng Timur 2-4 
Jakarta 10710 
 
Dear Mr. Waluyanto: 
 
Re: Coral Reef Rehabilitation and Management Project (COREMAP II) 
–
Extension of Closing 
Date; Cancellation of Proceeds and Reallocation of Proceeds of the Loan; and Amendment  
for Loan No. 4740-IND and Credit No. 3910-IND and GEF Grant No. TF053350 
 
I
am pleased to refer to: (i) the Loan Agreement (Loan No. 4740-IND) (the Loan 
Agreement), between the Republic of Indonesia (the Borrower) and the International Bank for 
Reconstruction and Development (the Bank) (the Loan Agreement), the Development Credit 
Agreement (Credit No. 3910-IND) (the Development Credit Agreement) between the Borrower and 
the International Development Association (the Association) and the GEF Grant Agreement (GEF  
Grant No TF053350) (the Grant Agreement) between the Republic of Indonesia (the Recipient) and 
the Bank, acting as an implementing agency for the Global Environment Facility (GEF),   each dated 
June 30, 2004; and (ii) to your letters, dated July 7, 2009 (with respect to the Loan Agreement) and 
September 28, 2009 (with respect to the Development Credit Agreement), and to the minutes of 
restructuring discussions, dated April 8, 2010, requesting extension of the Closing Date of the Loan 
Agreement, Development Credit Agreement and Grant Agreement, cancellation of Proceeds of the 
Loan, re-allocation of the Proceeds of the Loan and the Credit, and amendment of certain 
implementation arrangements.  Capitalized terms used but not defined in this letter agreement 
(Amendment) have the meanings given to them in the Development Credit Agreement. 
 
I
am pleased to inform you that, after due consideration, the Bank and the Association concur 
with your request and accordingly have agreed to amend the Development Credit Agreement, the 
Loan Agreement and the Grant Agreement as follows. 
 
A. 
Extension of Closing Date of the Development Credit Agreement, the Loan Agreement 
and the Grant Agreement
 
1. 
The Association has established December 31, 2011 as the later date for the purposes of 
Section 2.03 of the Development Credit Agreement. 
 
2. 
The Bank has established December 31, 2011 as the later date for the purposes of Section 
2.03 of the Loan Agreement. 
 
Page  2
Mr. 
Rahmat 
Waluyanto 
 
   2 
of 
9 
    June 
30, 
2010 
Ministry of Finance 
 
3. 
The Bank has established December 31, 2011 as the later date for the purposes of Section 
2.03 of the Grant Agreement.  
 
B. 
Partial Loan Cancellation.  
 
1. 
Pursuant to your request, dated  July 7, 2009 and received by the Bank on July 9, 2009, and 
pursuant to Section 6.01 of the General Condition, the Bank hereby cancels, as of July 9, 2009, the 
amount of three million two thousand three hundred and seventy four United States Dollars 
(US$3,002,374) and the commitment charge has ceased to accrue on such amount.  The Schedule to 
the Loan Agreement (Amortization Schedule), is being revised by the Bank as a result of the 
cancellation, and the revised figures will be sent to you shortly.   
 
C. 
Reallocation of Loan Proceeds. 
 
1. 
 
The Table in paragraph 1 of Section A of Schedule 1 to the Development Credit Agreement, 
which is incorporated by reference in the Loan Agreement pursuant to Section 3.01 of the Loan 
Agreement, is amended as set out below to reflect the partial cancellation of the Loan and the 
reallocation of proceeds of the Loan pursuant to your request, dated July 7, 2009 (with respect to the 
Loan Agreement) and September 28, 2009 (with respect to the Development Credit Agreement).  
With respect to the reallocation of the Development Credit Agreement, the reallocations below 
factored in actual amounts disbursed as of the date of this Amendment.  
 
Category 
Amount of the 
Credit 
Allocated 
(expressed in 
SDR)  
Amount of 
the Loan 
Allocated  
(expressed in 
USD) 
Percentage of 
Expenditures to be 
Financed 
 
(1)  Goods 
(a) under Part B.1(e) and (f), B.2(g), 
B.4(b) of the Project 
 
(b) under other Parts of the Project 
(except Part B.5) 
 
292,200 
 
640,075
500,100 
 
504,084
80% of foreign 
expenditures, 80% of local 
expenditures (ex-factory 
cost), and 60% of local 
expenditures for other 
items procured locally 
 
100% of foreign 
expenditures, 100% of 
local expenditures (ex-
factory cost), and 80% of 
local expenditures for 
other items procured 
locally 
 
(2)  Community Support Services 
1,806,960
3,326,712
80% 
 
Page  3
Mr. 
Rahmat 
Waluyanto 
 
   3 
of 
9 
    June 
30, 
2010 
Ministry of Finance 
 
(3)  Workshops and Training: 
(a)  under Part B.1 (a), (b) and (c) of 
the Project 
 
(b)  under other Parts of the Project 
(except Part B.5) 
 
48,430 
 
2,424,100
1,900,000 
 
3,559,321
80% 
 
100% 
(4)  
Consultants’ services: 
(a)  under part B.4(b) of the Project 
 
(b)  under other Parts of the Project 
(except Part B.5) 
 
672,650 
 
2,649,279
1,750,200 
 
2,271,203
80% 
 
100% 
(5)  Studies and Surveys (except 
Part B.5 of the Project) 
1,643,142
4,026,846
100% 
(6)  Incremental Operating Costs 
(except Part B.5 of the Project) 
1,080,555
1,613,508
100% in FY2004, FY2005 
and Fy2006, 80% in 
FY2007 and FY 2008, and 
60% thereafter 
 
(7)   Fellowships and Scholarships 
560,335
1,310,420
100% 
 
(8)  Awareness and Educational 
Services 
 
1,157,850
3.365.134
100% 
(9)  District and Village Grants 
2,684,424
5,176,944
100% of Grant amount 
disbursed 
 
(10) Front-end Fee 
-
166,000
Amount due under Section 
2.04 of the Loan 
Agreement 
 
(11) Unallocated 
-
561,154 
Amount cancelled from the front-end 
fee as of June 30, 2004 
 
(166,000)
Amount cancelled as of July 9, 2009 
 
-
(3,002,374)
TOTAL 15,660,000
30,197,626
D. 
Other Amendments to the Development Credit Agreement and the Loan Agreement. 
 
1. 
Section 1.02 (Definitions)
 of the Development Credit Agreement, which is incorporated by 
reference into the Loan Agreement pursuant to Section 3.01 of the Loan Agreement, is amended as 
follows: 
 
Page  4
Mr. 
Rahmat 
Waluyanto 
 
   4 
of 
9 
    June 
30, 
2010 
Ministry of Finance 
 
(a) Paragraph (aa) is amended to add a seventh Participating District resulting from a split in an 
existing Districts:  “(aa) “Participating Districts” means the following districts of the 
Borrower: Sikka in the Province of Nusa Tenggara Timur; Biak in the province of Papua and 
Raja Ampat in the Province of Papua Barat; Pangkajene Kepulauan and Selayar in the 
Province of Sulawesi Selatan; Buton and Wakatobi in the Province of Sulawesi Tenggara.” 
 
(b) Paragraph (bb) is amended to add a fourth Participating Province resulting from a split in an 
existing Province: “(bb) “Participating Provinces” means the following provinces of the 
Borrower: Nusa Tenggara Timur, Papua, Papua Barat, Sulawesi Selatan and Sulawesi 
Tenggara.” 
 
2. 
Schedule 2
 to the Development Credit Agreement, which is incorporated by reference into 
the Loan Agreement pursuant to Section 3.01 of the Loan Agreement, is amended to restate the 
Project Development Objective to match the original project appraisal document as follows:  “The 
objective of the Project is to establish viable reef management systems in at least six priority districts, 
through a financially sustainable program that is nationally coordinated but decentralized in 
implementation, in order to empower and to support coastal communities to sustainably co-manage 
the use of coral reefs and associated ecosystem resources, which will revive damaged or preserve 
intact coral reef ecosystems and in turn, enhance the welfare of these communities in Indonesia.” 
 
3. 
Part A.1 of Schedule 2 to the Development Credit Agreement, which is incorporated by 
reference into the Loan Agreement pursuant to Section 3.01 of the Loan Agreement, is amended by 
adding a new sub-activity (e) as follows:  “(e) closing out the Project in an orderly fashion, including 
planning and undertaking end of Project review, assessment and reporting based on terms of 
reference agreed between the Borrower and the Association.” 
 
4. 
Part B. 2 of Schedule 2 to the Development Credit Agreement, which is incorporated by 
reference into the Loan Agreement pursuant to Section 3.01 of the Loan Agreement, is amended by 
adding a new sub-activity (i) as follows:  “(i)  Documenting, popularizing and distributing 
community best practices and lessons learned in coral reef management.” 
 
5. 
Part B. 3 of Schedule 2 to the Development Credit Agreement, which is incorporated by 
reference into the Loan Agreement pursuant to Section 3.01 of the Loan Agreement, is amended to 
remove support for financial intermediaries at the Participating District level by restating Part B.3(b) 
of the Project as follows:  “(b) Supporting the establishment and strengthening of village-level credit 
and savings facilities in Participating Village through provision of technical assistance.” 
 
6. 
Part B.3 of Schedule 2 to the Development Credit Agreement, which is incorporated by 
reference into the Loan Agreement pursuant to Section 3.01 of the Loan Agreement, is amended by: 
(a) deleting Part B.3(d) of the Project (partial credit guarantee program) , Part B.3 (g) of the Project 
(pilot program of visits by employment agent to evaluate work opportunity for fishers and reef 
gleaners outside the participating village) and Part B.3(h)  of the project (district block grant 
program),  and (b) by re-numbering Part B.3(e) as Part B.3(d), and Part B.3(f) as Part B.3(e).  
 
Page  5
Mr. 
Rahmat 
Waluyanto 
 
   5 
of 
9 
    June 
30, 
2010 
Ministry of Finance 
 
7. 
Part B.4 of Schedule 2 to the Development of Credit Agreement, which is incorporated by 
reference into the Loan Agreement pursuant to Section 3.01 of the Loan Agreement, is amended by 
restating Part B.4(c) of 
the Project as follows: “ (c) Development of a District marine resources 
strategic plan in each Participating District as guide to Participating Villages in the selection of 
marine conservation areas  and build towards a network of community-based/District  marine 
conservation areas, in participating Districts except Wakatobi.” 
 
8. 
Schedule 4.  
Paragraph 2 of Schedule 4 to the Development Credit Agreement, which is 
incorporated by reference into the Loan Agreement pursuant to Section 3.01 of the Loan Agreement 
is amended by re-numbering the existing paragraph 2 as paragraph 2(a) and adding a new paragraph 
2(b) as follows:  “The Borrower shall establish and maintain until completion of the Project the 
Regional Coordinating Unit in each Participating Province responsible for advocating support from 
provincial level decision makers for implementation to address District issues, increasing public 
awareness and liaising between Province-level agencies for monitoring, control and surveillance, and 
ensure that such RCUs are provided at all times with adequate funds and other resources and staffed 
by qualified and experienced personnel in adequate numbers as shall be necessary to accomplish 
their objectives.” 
 
9. 
Paragraph 12 (b) of Schedule 4 the Development Credit Agreement, which is incorporated by 
reference into the Loan Agreement pursuant to Section 3.01 of the Loan Agreement is amended to 
remove “the relevant Participating Village” and replace such reference with “the relevant PMU” by 
restating such Paragraph 12(b) as follows: “ensure that a Village Lending Agreement acceptable to 
the Association, is entered into between the relevant PMU and an established village financial 
institution for the provision of a Village Loan to such a financial institution; such Village Lending 
Agreement to include terms and condition of the Village Loan, terms and condition of Sub-loans and 
criteria for Sub-project eligibility, all in accordance with the provisions of this agreement and of the 
Village Grant Guidelines.” 
 
10. 
Paragraph 13(a) of Schedule 4 to the Development Credit Agreement, which is incorporated 
by reference into the Loan Agreement pursuant to Section 3.01 of the Loan Agreement is amended 
by the limit on Grants to Participating Villages “not to exceed Rp.100,000,000 
 
11. 
Paragraph 17  of Schedule 4 to the Development Credit Agreement, which is incorporated by 
reference into the Loan Agreement pursuant to Section 3.01 of the Loan Agreement, and which sets 
out the implementation arrangements for a partial credit guarantee arrangement is deleted, and the 
subsequent sections re-numbered accordingly. 
 
12. 
Paragraph 18  of Schedule 4 to the Development Credit Agreement, which is incorporated by 
reference into the Loan Agreement pursuant to Section 3.01 of the Loan Agreement is amended by 
deleting paragraphs (b), (c) and (d) and adding a new paragraph (b) as follows:  “; and (b) not later 
than December 31, in each calendar year of Project implementation, furnishing to the Association, a 
report acceptable to the Association, on studies carried out during such year and an action plan for 
studies to be carried out during the upcoming year.” 
 
13. 
Schedule 5
 to the Development Credit Agreement, which is incorporated by reference into 
the Loan Agreement pursuant to Section 3.01 of the Loan Agreement is amended as set out in the 
Attachment to this Amendment. 
 
Page  6
Mr. 
Rahmat 
Waluyanto 
 
   6 
of 
9 
    June 
30, 
2010 
Ministry of Finance 
 
E. 
Other Amendments to the Grant Agreement 
 
1. 
Section 1.02 (Definitions) of the Grant Agreement is amended as follows: 
 
(a) Paragraph (w) is amended to add a seventh Participating District resulting from a split in an 
existing Districts:  “(w) “Participating Districts” means the following districts of the 
Borrower: Sikka in the Province of Nusa Tenggara Timur; Biak in the province of Papua and 
Raja Ampat in the Province of Papua Barat; Pangkajene Kepulauan and Selayar in the 
Province of Sulawesi Selatan; Buton and Wakatobi in the Province of Sulawesi Tenggara.” 
 
(b) Paragraph (x) is amended to add a fourth Participating Province resulting from a split in an 
existing Province: “(x) “Participating Provinces” means the following provinces of the 
Recipient: Nusa Tenggara Timur, Papua, Papua Barat, Sulawesi Selatan and Sulawesi 
Tenggara.” 
 
2. 
Schedule 2
 to the Grant Agreement is amended to restate the Project Development Objective 
as follows:  “The objective of the Project is to establish viable reef management systems in at least 
six priority districts, through a financially sustainable program that is nationally coordinated but 
decentralized in implementation, in order to empower and to support coastal communities to 
sustainably co-manage the use of coral reefs and associated ecosystem resources, which will revive 
damaged or preserve intact coral reef ecosystems and in turn, enhance the welfare of these 
communities in Indonesia.” 
 
3. 
Part A.1 of Schedule 2 to the Grant Agreement is amended by adding a new sub-activity (e) 
as follows:  “(e) closing out the Project in an orderly fashion, including planning and undertaking end 
of Project review, assessment and reporting based on terms of reference agreed between the 
Borrower and the Association. 
 
4. 
Part B. 2 of Schedule 2 to the Grant Agreement is amended by adding a new sub-activity (i) 
as follows:  “(i)  Documenting, popularizing and distributing community best practices and lessons 
learned in coral reef management.” 
 
5. 
Part B. 3 of Schedule 2 to the Grant Agreement is amended to remove support for financial 
intermediaries at the Participating District level by restating Part B.3(b) of the Project as follows:  
“(b) Supporting the establishment and strengthening of village-level credit and savings facilities in 
Participating Village through provision of technical assistance.” 
 
6. 
Part B.4 of Schedule 2 to the Grant Agreement is amended by restating Part B.4(c) of the 
Project as follows: “ (c) Development of a District marine resources strategic plan in each 
Participating District as guide to Participating Villages in the selection of marine conservation areas  
and build towards a network of community-based/District  marine conservation areas in participating 
Districts except Wakatobi.” 
 
7. 
Part B.3 of Schedule 2 to Grant Agreement, is amended by: (a) deleting Part B.3(d) of the 
Project (partial credit guarantee program), Part B.3 (g) of the Project (pilot program of visits by 
employment agent to evaluate work opportunity for fishers and reef gleaners outside the participating 
village) and Part B.3(h)  of the project (district block grant program),  and (b) by re-numbering Part 
B.3(e) as Part B.3(d), Part B.3(f) as Part B.3(e). 
Page  7
Mr. 
Rahmat 
Waluyanto 
 
   7 
of 
9 
    June 
30, 
2010 
Ministry of Finance 
 
8. 
Schedule 4.  
Paragraph 2 of Schedule 4 to Grant Agreement  is amended by re-numbering 
the existing paragraph 2 as paragraph 2(a) and adding a new paragraph 2(b) as follows:  “The 
Borrower shall establish and maintain until completion of the Project the Regional Coordinating Unit 
in each Participating Province responsible for advocating support from provincial level decision 
makers for implementation to address District issues, increasing public awareness and liaising 
between Province-level agencies for monitoring, control and surveillance, and ensure that such RCUs 
are provided at all times with adequate funds and other resources and staffed by qualified and 
experienced personnel in adequate numbers as shall be necessary to accomplish their objectives.” 
 
9. 
Schedule 5
 to the Grant Agreement is amended as set out in the Attachment to this 
Amendment. 
 
Except as specifically amended by the provisions of this letter of Amendment, all terms and 
conditions of the Development Credit Agreement, Loan Agreement and Grant Agreement otherwise 
remain in full force and effect. 
 
Please confirm your agreement to the foregoing by signing and dating the enclosed copy of 
this Amendment in the space provided and returning one copy with your original signature to us.  
The above amendments shall enter into effect on the date of the Borrower’s countersignature of this 
Amendment.
 
Sincerely yours, 
INTERNATIONAL BANK FOR RECONSTRUCTION AND 
DEVELOPMENT/INTERNATIONAL DEVELOPMENT ASSOCIATION 
 
/s/ Chris Hoban 
Acting Country Director, Indonesia 
 
AGREED: 
 
REPUBLIC OF INDONESIA 
 
By: /s/  Rahmat Waluyanto 
 Authorized 
Representative 
 
Name: Rahmat Waluyanto 
 
Date: 
July 13, 2010 
 
Page  8
Mr. 
Rahmat 
Waluyanto 
 
   8 
of 
9 
    June 
30, 
2010 
Ministry of Finance 
 
ATTACHMENT 
 
Performance Indicators for the Credit, Loan and Grant 
Key Performance Indicator
 
New Proposed Indicator 
Management & Empowerment 
1.   Collaboratively managed marine conservation 
areas cover 10 % of program district reefs by EOP 
Collaboratively managed fully-protected no-
take zones, covering 10%, on average, of 
reefs in all project managed areas by EOP. 
2. 
70 % of operating costs of program activities fully 
integrated into target district Government 
Programs and funded independent of COREMAP 
II by EOP 
Retained 
3.   Awareness about the importance of coral reefs 
increases to or is maintained at 70 % in all 
participating districts 
Retained 
Biophysical
 
4.   Live coral cover in program districts increases 5 
%
annually until levels are reached and 
maintained comparable to those of similar to reefs 
in well-managed or pristine areas 
Significant improvements in live coral cover 
in project managed areas relative to non-
project areas, in 80 % of samples sites 
5
Average catch- per- unit- effort for early breeding 
indicator species harvested by each of the main 
sustainable fishing techniques in program districts 
increases 35 % by EOP, while average CPUE for 
medium-size indicator species harvested by each 
of the main sustainable fishing techniques in 
program districts increases by 10 % by EOP. 
Reef fish population improved based on 
CPUE of fishers using traditional reef fishing 
gear and/or visual census in selected project 
sites at EOP in 80 % sample sites, compared 
to expected decline in control areas (outside 
project areas) 
Socio economic and poverty
 
6
Total income received from, and the total number 
of people receiving their income from, sustainable 
reef-based and reef-substitution activities in 
program districts increases by 10 % by EOP 
Total income of project beneficiary group 
members increased by 10 % by EOP 
7
At least 70 % of fishers/beneficiaries in coastal 
communities in program districts perceive the 
program has had a positive impact on their 
welfare and economic status by EOP 
At least 70% of fishers/beneficiaries in 
coastal communities in program managed 
areas perceive the project has had a positive 
impact on their welfare  
Page  9
Mr. 
Rahmat 
Waluyanto 
 
   9 
of 
9 
    June 
30, 
2010 
Ministry of Finance