Document of

The World Bank

FOR OFFICIAL USE ONLY

4A/V 3 3Repor No. P-5383-IND

MEMORANDUM AND RECOMMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED LOAN

IN AN AMOUNT EQUIVALENT TO $15.5 MILLION

TO THE

REPUBLIC OF INDONESIA

FOR A

YOGYAKARTA UPLAND AREA DEVELOPMENT PROJECT

FEBRUARY 22, 1991

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS(as of January 1991)

Currency Unit - Rupiah (Rp)

$1.00 Rupiah 1,901Rp 1 million $526.04

FISCAL YEAR *

April 1 - March 31

WEIGHTS AND MEASURES

1 kilometer = 0.62 miles (mi)± square kilometer (kn2) = 100 hectares (ha) = 0.39 sq. miles1 hectare (ha) = 2.47 acres (ac)1 kilogram (kg) 2.2 pounds (lb)1 cubic meter (cu m) = 35.3 cubic feet

GLOSSARY OF ABBREVIATIONS AND TERMS

GOI - Government of IndonesiaINPRES - Presidential InstructionKabupaten - DistrictRepelita V - Fifth Five-Year Development Plan (1989-1994)

FOR OFFICIAL USE ONLY

INDONESIA

YOGYAKARTA UPLAND AREA DEVELOPMENT PROJECT

Loan and Project Summary

Borrower: Republic of Indonesia

Loan Amount: $15.5 million equivalent

Terms: Twenty jears, including five years of grace, at theBank's standard variable rate

Financing Plan: Government $ 9.6 millionIBRD $15.5 million

Total $25.1 million

Economic Rateof Return: For soil stabilization and agricultural development

components: 12 percent; for the village roadcomponent: 15 percent.

Staff AppraisalReport: Report No. 9113-IND

Map: IBRD 22421

This document has a restricted distribution and may be used by recipients only .n the Ferformanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

MEMORANVUtM AND RECOMM@ENDATION OF TtlE PRESIDENTOF 'TIHE INTERtNATIOtNAL BANK FOR RECONSTIRUCTION AND DEVELOPMENT

TO TU1E EXECUTIVE DIRECTORSO01 A PROPOSED 1.OAN TO INDONESIA

FOR 'rilE YOGYAY.APTA UPLAND AREA DEVELOPMENT PROJECT

1. The foJlowwiig iniemior'mdtui and recommitenidation oni a proposed loan totle Rlep'tIlic 1 ol Indonesia lor $1.5.5 million eqluivaletLt is subnmit.ted foraIptZoval. 'l'lih lprolposed loani would be for 20 years, including five years ofguL'ake, at the Banik's statlnid varlable ititerest rate, and would lielp finance afLo.uw-upt tupland area development project in the YogyakaLta province of Java.

Z. Upland Agtriculture antd Poverty AlleviaLiol. T'he issues ofag.I.CuILotual productLvi.ty and ilncomlie, iLteitwitied witit resource matiagetmetiL anldcofsCi,vat ioll, are cLitical in Iiidonesia, notably in tihe rainfed uplands ofJava. Wil.1 G0 lpercenit of Indonesia's populatioin concentrated on Java, most oftlie land is In productive use, including 75 percent in agriculture, with notmuchi scope for expansion. At tihe same titne, Java conifronts iticreasingp)pulaLion pressure and an agticultural resource base being depleted byurbanization and in(lustrialization in the lowlancds and by deforestation,expLotl.ative production systelts, antd erosioni in the uplands. Thie upperwatersheds, withl fragile sedimenitary soils, are the area considered most atrlsk due to erosion. A Batik study estimates the cost of erosioni to Java at$350-420 milliotn per annum. Whiile siltation of rivers and downstream dams andcanials causes economic disruption, the larger impact (80 percent) isatLributed to on-farm ptroductivity loss in tihe uplands due to soil depletion.

3. Compirisitig two thirds of Java and accommuilodating 30 millioi people,Llhe uplands are distiniguislhed from thie lowlands by lower agriculturalp)roductivity and farm income, less off-farm employment, and lower density ofroads, maLketing facilities and government services. While data on the extentof the muost critical watersheds (eroding or In danger of eroding) and of thieoccurrence of poverty are limited, it is p)robable that about 12 million peoplelivinlg itn the critical parts of tire uplands are among the poorest farmers inJava and that about 40 percent of them are below the poverty level. They areseriously limited in their ability to naintain or improve productivity andincome. Yet, reversal of thie trend toward ecological degradation andunsustaitnable farming practices Is paramount to ensure a viable uplandeconomy, and stable, equitable development in Java overall.

4. Goveritment Focus. Mainitaillinig its emphasis otl p)oveLty alleviationt,employment generationt and equitable development, the Government of Indonesia(GOI) has increasingly recognized that souIId agricultural and conservationpractices are required to improve productivity, generate and sustain farmitncoutes, and lhusbaLd resources over the long term. Doing so means undertakingmore comupiehetisive measures thian its ongoing Regreening Program comprisingbench teLeacing, tree planting and checkdams. Under Repelita V (1989-94), GOIhas begun to look more intensively at land-use patterns and watershedmlaniagemiietit, innovative cropping patteLns, vegetative soil conservationtecthniques, anld locally orieLnted research on agricultural practices.Addressing these possibilities over widely diverse agroecological conditionshas necessitated more decentralized decision-making, more participatoryinvolvement of producer communities, and concerted efforts at institutionbuilding atnd intersectoral cooperation through training of relevant govertunentwotkers.

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5. Rationale for Bank Involvement. Over more than a dpcade, the Bankhas supported government's evcdving priorities regarding upland developmentthroughl four projects, including the previous project, Yogyakarta RuralDevelopment (Cr. 946-IND, $12 million, completed ix 1989). Numerous lessonshave been learned from this experience, as well as from bilateral andgovernment-sponsored progLams for upland development. The major lesson isthat both technology and the approaches to develop replicable and costeffective measures require refinement to halt resource degradation andincrease upland agricultural productivity and incomes. This proposed projectembodies refinements in both, building on promising elements gleaned fromexperience: managing and treating soil stabilization on a microwatershed/commtnity basis; shifting from physical structures such as bench terraces andcheckdams to cost-effective grass and shrub barriers to stem soil erosion;providing alternative soil conservation techniques for farmers rather thanemphasizing a single solution; demonstrating site-specific technology optionsfrom which farmers can choose the most appropriate and affordable farmingsystem; and engaging farmers in the development and adoption of soilconservation measures. Once equipped with sound technical options, uplandcommunities also require improved social (credit, extension) and physic,il(roads, bridges) infrastructure that enable access to Inputs, markets andother government services in order to secure income and upgrade livingstandards. Experience also points to the need for significant amounts oftechnical and managerial training of government pl nners, implemente-s,extension workers and researchers and within line agencies, and the particularchallenge of forging links and working relationships across separate,sometimes overlapping, structures of government.

6. The Yogyakarta Province provides a basis and environment in whichrefined technologies and administrative processes can be developed mostrapidly for possible wider replication. Over the medium term, the Bank canhelp GOI to develop the processes, institutions and technologies to support aprogram to foster sustainable development throughout Indonesia's most criticalupland watersheds with the objectives of protecting their environments fromerosion and of reducing the number of people living below poverty levels.Experience with the first Yogyakarta project indicates that levels of povertycould be halved in five to ten years, with actions such as those proposed inthis project together with income growth through spontaneous development. Theestimated per capita investment levels and returns compare well withirrigation scheme rehabilitation, and are significantly more viable thaninvestments in new irrigation for rice cultivation. If the levels of costsand benefits were to be extrapolated for the areas and populations in Javawith similar critical conditions, they would show that a sustainabledevelopment program reducing the costs of soil erosion and lowering thepoverty incidence from about 40 to 20 percent of 12 million inhabitants ofJava's critical uplands is an attainable objective. The proposed projectwould continue to help the GOI to support and test the soundness of itsstrategies and to firm up the timetable to achieve its targets.

7. Project Objectives. The project's overall goal is to develop asustainable and replicable approach to soil stabilization and agriculturaldevelopment as a basis for improving incomes and living standards inYogyakarta's upland villages, specifically, and in Java's similarly endangeredupland areas, generally. The project will address the major needs of uplandareas: effective and affordable soil and moisture conservation measures,increased farm productivity leading to higher farm incomes, essential socialservices and infrastructure, and institutional support for planning and

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implementing site-specific change. It aims at tackling the major threat toupland productivity over the long term--a fragile and eroding resource base--through an innovative and low-cost, community directed approach to soilstabilization by groups of neighboring farmers within microwatersheds. Overthe medium term it would also provide essential experience to supportnationwide watershed programs that would also help to reduce poverty of thepopulation living in these areas.

8. Project Description. Over five years, the project would implementcomponents on: upland agricultural productivity and watershed stabilization;credit and grants for productive investment by upland hamlets and villages;toad and bridge improvements; and institutional strengthening of relevant lineagencies. It would focus on better moisture retention and runoff control andmore productive farming practices in microwatershed areas, with emphasis onvegetative barriers, perennial crops for ground cover, and higher-yielding,higher-value food, tree, and estate crops. A project-supported researchstation that concentrates on upland agriculture would be established.Concurrently, throughout Yogyakarta's upland villages, a menu of on-farmtechnology options would be demonstrated, more credit facilities would beprovided, essential social services expanded, and in remote areas, villageroads and bridges upgraded. The improved village road network is expected torespond to increasing demand by facilitating access to services, inputs,markets and off-farm employment in upland areas. Using existing line agenciesand staff, the project would provide extensive skills-based and managerialtraining support to all implementing agencies in order to bolster delivery ofupland services, strengthen planning, execution, monitoring and continuity ofproject activities, and improve coordination across ministries at all levels,with special emphasis on the local arena--village, district and province.

9. The proposed loan of $15.5 million would finance 62 percent ofproject costs, (70 percent excluding reserved procurement of $0.99 million andduties and taxes of $1.94 million). The GOI would provide the equivalent of$9.57 million. Retroactive financing of $1 million is included for eligibleexpenditure after February 1, 1990. The Bank loan would finance civil works,equipment, technical assistance, staff training, research, and funds forsubdistrict, village and hamlet projects and for onlending to farmers. Abreakdown of project costs and the financing plan are presented in Schedule A,and the amounts and methods of procurement and disbursement in Schedu'e B. Atimetable for key processing events is in Schedule C, and the status of BankGroup operations in Indonesia is given in Schedule D. A map is attached. TheStaff Appraisal Report No. 9113-IND dated February 22, 1991, will bedistributed separately.

10. Actions Agreed. The Government has agreed on the following:(a) research facilities in Yogyakarta would be upgraded to a full researchstation; (b) hamlet revolving funds would charge no less than commercialinterest rates; (c) village projects would be selected in accordance withagreed criteria, and would be subject to the physical and financialsupervision by district agencies; (d) roads and bridges would be selected andbuilt to agreed standards; physical progress of road construction and costswould be monitored; road maintenance master plans based on monitoring ofconditions of roads and bridges would be established; and road realignmentwould be preceded by environmental assessment. Satisfactory maintenance ofthe roads built under the previous project, as well as those to be built underthe proposed project, would be a condition for continuation of disbursementsfor road construction.

11. Benefits. Most project benefits involve stabilizing the soil inYogyakarta upland areas by methods that ensure the productivity base andincrease yields and incomes for farmers under rainfed conditions. Focus andresearch concentration or. microwatersheds as the organizing unit forstabilization and production should yield benefits beyond the 2,500 ha whereproject activities would be most intense. On-farm technology displays thatdemonstrate improved agronomy, planting materials, and the benefits ofshifting to perennial crops in order to retain soil and moisture should have awide-ranging effect on production and incomes in all upland villages. A fullresearch station with an upland focus would validate technical and socio-economic recommendations for application in upland areas throughout Java.Supported by improved extension services, credit facilities, and social andphysical infrastructure, living standards in upland villages should likewisebenefit. The project's benefits by component are likely to affect:microwatershed stabilization, 4,200 households; on-farm technology displays,12,000 households: roads and bridges to 49 villages, 49,000 households;village projects, 40,000 households; overall, some 60,000 households with300,000 upland residents wlil benefit (often by more than one component).

12. Incomes for farmers under microwatershed improvements would increase64 percent, corresponding to an increase of the incomes net present value(di-:counted at 10 percent over 10 years) of 41 percent. On farms outside themicrowatershed development areas, but exposed to the project's on-farmtechnology displays, income would rise 28 percent and net present value22 percent. The project's economic benefits are based mainly on incrementalproduction of cassava, maize, upland rice, groundnuts, bananas and avocados.The economic rate of return for the project's upland ptoductivity andstabilization components is 12 percent over 30 years and for the village roadscommnent 15 percent.

13. Risks. The project's risks are technical and institutional. Low-cost soil conservation and runoff measures and farming systems that put alarger portion of cultivated area under shrubs or tree crops to ensureadequate ground cover may be slowly adopted by farmers within microwatersheds.Line agencies might also be slow in responding to the project's coordinationmechanisms. Research, training, technical assistance and detailedinstitutional planning are directed at these concerns, which would be annuallyreviewed jointly by GOI and the Bank. The risks are, therefore, consideredreasonable.

14. Recommendation. I am satisfied that the proposed loan would complywith the Articles of Agreement of the Bank, and recommend that the ExecutiveDirectors approve the proposed loan.

Barber B. ConablePresident

Attachments by Ernest Stern

Washington, D.C.February 22, 1991

Schedule A

INDONESIA

YOGYAKARTA UPLAND AREA DEVELOPMENT PROJECT

Estimated Costs and Financing Plan

Estimated Costs: /a Local Foreign Total-------- ($ million) ------

Upland Productivity and Stabilization 4.1 1.0 5.1Upland Community Development 3.2 0.2 3.4Village Roads and Bridges 4.7 1.8 6.5Institution Strengthening 3.4 1.3 4.7

Base Costs 15.4 4.3 19.7

Physical Contingencies 1.5 0.3 1.8Price Contingencies 3.0 0.6 3.6

Total Costs 19.9 5.2 25.1

Financing Plan:

Goverrnment 9.6 - 9.6IBRD 10.3 5.2 15.5

Total 19.9 5.2 25.1

/a Inclusive of duties and taxes of $2.0 million and $1.0 million reservedprocurement.

Schedule BPage 1

INDONESIA

YOGYAKARTA UPLAND AREA DEVELOPMENT PROJECT

Procurement ano Disbursements($ '000)

LCB Other N.A. Total

Buildings 291 291(233) (233)

Village roads and bridges 3,352 3,352 6,704(2,682) (2,681) (5,363)

Equipment and furniture 811 541 1,352(730) (487) (1,217)

Vehicles /a 992 992

Technical assistance 2,709 2,709and studies (2,429) (2,429)

Training 2,011 2,011(1,710) (1,710)

Local projects, 5,409 5,409revolving and research funds (4,338) (4,338)

Incremental staff salaries 1,195 1,195and allowances

Staff travel, operation and 4,180 4,180maintenance

Land titling and surveys 234 234(210) (210)

Total 4,454 7,594 13,029 25,077(3,645) (5,597) (6,258) (15,500)

/a Reserved procurement.

Note: Amounts in parentheses to be financed by IBRD.

Schedule BPage 2

Disbursements

Category Amount($ million)

Technical Assistance and Studies 2.3 1002 of expenditures

Civil Works, Roads, Bridges 5.5 802 of expenditures

Equipment 1.1 1002 of foreign expenditures,1002 of local expenditures(ex-factory). or 652 of thecosts of locally procureditems

Training 1.5 1002 of foreign expenditures,702 of expenditures for localtraining

Village projects 1.1 652 of expenditurees forgrants to villages

Hamlet projects, hamlet revolving 2.5 902 of expendituresfunds, Kecamatan funds, discretionaryfunds, research funds, land titling

Unallocated 1.5

Total 15.5

Estimated IBRD Disbursement

IBRD Fiscal Year 1991 1992 1993 1994 1995 1996 1997…----------------- (S million) --------------

Annual 0.5 1.3 3.7 3.5 3.1 2.8 0.6Cumulative 0.5 1.8 5.5 9.0 12.1 14.9 15.5

StltduIe C

lNDONlES IA

YULGYAKARTA UVLANI) AIEbA IJEVELUPNEI'1 PI'OJECT

T£iietable of _Ky Project PFovessing Evetits

(a) lime tnkott to preptre: 24 years

(I) PretwaLed lay: Govertilueult supported by loc.alconsiultants and FAO/World BankCooper taLive lPrugLani

(C) Flist IBRI) tissiotn: April 1988

(d) Appraisal mtissiou depatLuLe: Febtuary 1990

(e) Negotlatious: Jalnuarv 28, 1991

(f) Planned effectiveniess date: April 1991

(g) List of relevant PCRs and PPARs: PCR: Yogyakarta Rural DevelopmentProject (Credit 946-INU), May 1990No. 9246.

Schedule DPage 1 of 4

STATUS OF BANK GROUP OPERATIONS IN INDONESIA

A. STATEMENT OF BANK LOANS AND IDA CREDITS /a(as of December 31, 1990)

Amount (USS million)Loan/ Bank IDACredit Fiscal Original Principal Undis-number Year Purpose (less cancellation) bursed

Seventy-eight Loans and forty-eight credits 5,765.90 901.61fully disbursed

Of which SECALS, SALs and Program Loans fb

2780 1987 Trade Policy Adjustment 300.002937 1988 Second Trade Policy Adjustment 300.003080 1989 Private Sector Development 350.00

Subtotal: 950.00

1840 1980 National Agricultural Research 35.00 - 2.132007 1981 lUucleus Estate and Smallholders V 102.90 - 10.872101 1982 Second Tsacher Training 79.59 - 0.462214 1983 Twelftb Power 292.50 - 31.172232 1983 Nucleus Estate and Smallh.otders VII 96.00 - 25.462236 1983 Jakar-.a Sewerage and Sanitation 22.40 - 2.432275 1983 East Java Water Supply 30.60 0.362288 1983 Transmigration IV 46.00 - 10.182290 1983 Second Polytechnic 107.40 - 5.612300 1983 Thirteenth Power 273.00 - 4.502341 1984 Third Agricultural Training 63.30 - 7.712344 1984 Nucleus Estate and Smallholder Sugar 70.30 - 11.352355 1984 Scond Nonformal Education 43.00 - 1.842408 1984 Fifth Urban Development 39.25 - 2.572431 1984 Second Swamp Reclamation 65.00 - 27.702443 1984 Fourteenth Power 210.00 - 16.482472 1985 Secondary Education and 78.00 7.46

Management Training2474 1985 Upland Agriculture and Conservation 11.30 - 6.90

,a The status of the projects listed in Part A is described in a separatereport on all Bank/IDA-financed projects in execution, which is updatedtwice yearly and circulated to the Executive Directors on April 30 andOctober 3'.

/b Approved during or after FY80.

Scthedule 1Page 2 of 4

Amount (USS millioti)Loan/ Bank IDACredit Fiscal Original Principal Undis-number Year Purpose (less cancellation) bursed

2494 1985 Smallholder Rubber Development II 89.00 - 42.592529 1985 Fourth Population 35.13 - 5.362542 1985 Second Health (Manpower Development) 38.30 - 17.062543 1985 Kedung Ombo Multipurpose Dam 156.00 35.23

and Irrigation2547 1985 Second University Development 147.00 - 50132560 1985 West Tarum Canal Development 43.40 - 17.162577 1985 National Ports Development 82.69 - 34.812578 1985 Transmigration V 97.00 - 15.422599 1986 Science and Tcchnology Training 93.00 - 10.982628 1986 Smallholder Cattle Development 32.00 - 11.812632 1986 Second East Java Water Supply 43.30 - 4.332636 1986 Second Nutrition & Community Health 33.17 11.492638 1986 Nusa Tenggara Agariculture Support 33.00 - 15.352649 1986 Central and West Java Irrigation 166.00 - 81.462690 1986 Gas Distribution 34.00 - 19.922702 1986 Export Development 64.50 - 7.852705 1986 Manpower Development and Training 58.10 - 13.632717 1986 Highway Maintenance and Betterment 300.00 - 9.232725 1986 Housing Sector Loan 200.00 - 5.222748 1987 Third National Agricultural Extension 55.00 - 25.772757 1987 Telecommunications Technical Assistance 14.50 - 0.492773 1987 Fisheries Support Services 24.50 - 18.662778 1987 Power Transmission & Distribution 226.00 - 66.342800 1987 BRI/KUPEDES Small Credit 101.50 - 1.282816 1987 Urban Sector Loan 270.00 - 16.102817 1987 Regional Cities Urban Transport 51.00 - 8.182879 1988 Industrial Energy Conservation 21.00 - 12.092880 1988 Irrigation Subsector 234.00 - 53.332881 1988 Second Rural Roads Development 190.00 - 88.042891 1988 Railway Technical Assistance 28.00 - 18.782930 1988 Forestry Institutions & Conservation 30.00 - 19.622932 1988 Jabotabek Urban Development 150.00 - 108.612940 1988 Accountancy Development 113.00 - 94.762944 1988 Higher Education Development 140.30 - 47.782979 1988 Second Export Development 165.00 - 61.392992 1989 Tree Crop Human Resource Development 18.40 - 15.133000 1989 Tree Crop Processing 118.20 - 107.073031 1989 Agriculture Research Management 35.30 - 30.77

Schiedule DPage 3 of 4

Amount (US$ million)Loan/ Bank IDACredit Fiscal Original Principal Undis-number Year Purpose (less cancellation) bursed

3040 1989 Industrial Restructuring 284.00 - 223.863041 1989 Small & Medium Industrial Enterprise 100.00 - 70.693042 1989 Third Health 43.50 - 38.233097 1989 Power Sector Efficiency 337.00 - 336.413098 1989 Paiton Thermal Power 354.00 - 325,633112 1990 Public Works Institutional 36.10 - 33.21

Development & Training3133 1990 Highway Sector 350.00 - 306.293134 1990 Professional HIuman Resource Development 117.50 - 107.743158 1990 Second Secondary Education 154.20 - 142.203180 1990 Rural Electrification 329.00 - 329.003182 1990 Third Telecommunications 350.00 - 350.003209 1990 Gas Utilization /a 86.00 - 86.003219 1990 Second Jabotabek Urban Development /a 190.00 - 190.00

3243 1990 Second Forestry Institution 20.00 - 20.00and Conservation

3246 1991 Third Jabotabek Urban Development La 61.00 - 61.003249 1991 Second BRI/KUPEDES Small Credit 125.00 - 118.36

*3267 1991 Second Private Sector Development /a 250.00 - 250.003282 1991 Fertilizer Restructuring la 221.70 - 221.70

Total 14.571.72 901.61of which has been repaid 2,116.23 59.17

Total now held by Bank and IDA 12.455.50 842.44Amount sold 88.08of which repaid 44.76

Total undisbursed 4.588.71

/a Not yet effective as of December 31, 1990.

* SAL, SECAL or Program Loan.

Schedule DPage 4 of 4

B. STATEMENT OF IFC INVESTMENTS (as of December 31. 1990)

(USS million)Undisbursed

Original Total includitngFiscal Commitments Held Participants'Year Company TvRe of business Loan Equity Total by IFC Portion1971/74 P.T. Primatexco Textiles & fibers 4.0 0.8 4.8 - -

1971 P.T. Unitex Textiles & fibers 2.5 0.8 3.3 0.3 -

1971/73/ P.T. Semen Cibinong Cement 46.0 5.8 51.8 - -

74/76/841971 P.T. Kabel Indonesia Cables 2.8 0.4 3.2 - -

1972/77/ P.T. Daralon Textiles Textiles & fibers 5.8 1.5 7.3 -

79 Mfg. Corp.1973/89 P.T. Jakarta Tourism 9.8 2.7 12.5 2.7 -

Int'l Hotel1974 P.T. Private Dev. Development - 0.5 0.5 0.4 -

Finance Co. of financeIndonesia

1974 P.T. Monsanto Electronics 0.9 - 0.9 - -

1974/77 P.T. Kamaltex Textiles 3.8 0.8 4.5 - -

1980 P.T. Papan Sejahtera Housing finance 4.0 1.2 5.2 1.21980 P.T. Supreme Indo- Dinnerware 11.1 0.9 12.0 - -

American1980/88 P.T. Semen Andalas Cement 48.6 5.0 53.6 22.71982/85 P.T. Saseka Gelora Leasing 5.0 0.4 5.4 0.4 -

Leasing1988 P.T. Bali Holiday Tourism 11.3 - 11.3 2.8 -1988 P.T. Asuransi Jiwa Insurance - 0.3 0.3 0.3 -1989 P.T. Monterado Mining 8.0 2.0 10.0 5.5 -1990 P.T. Astra /a Manufacturing 12.5 12.5 25.0 12.5 -1990 Federal Motor /a Manufacturing 12.5 - 12.5 - -1990 Nomura Fund Ctry. Fund - 3.0 3.0 1.5 -1990 Bank Umum Nacional Dev. finance 10.0 - 10.0 10.0 10.01990 Bank Niaga Dev. finance 7.5 - 7.5 7.5 7.51990 Raja/Pendopa Oil exploration - 4.2 4.2 4.2 3.41990 P.T. Agro Muko Plantations 10.5 2.2 12.7 12.7 9.01990 Indo Rama Synthetics Textiles 12.0 - 12.0 12.0 12.01991 Argo Pantos Textiles - 13.0 13.0 13.0 -

Total 228.5 57.9 286.6 109.6 41.9

1989 P.T. Kalteng /b Mining - 1.4 1.4 - -1990 P.T. Kayu NIC fc Wood products 12.2 0.9 13.1 13.1 13.11991 Argo Pantos Lc Textiles 83.0 - 83.0 30.0 83.01991 P.T. Petrochemical /c Petrochemicals 325.0 15.0 340.0 90.0 340.3

/a Loan subsequently cancelled.a Loan approved but subsequently dropped./c Not yet signed as of December 31, 1990.

_IbR 2242 lar

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