Indonesia - Railway Efficiency Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No.: P-6939-IND MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN THE AMOUNT OF US$105 MILLION TO THE REPUBLIC OF INDONESIA FOR A RAILWAY EFFICIENCY PROJECT October 17, 1996 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization CURRENCY EQUIVALENTS (As of March 1996) Currency Unit = Indonesian Rupiah (Rp) US$1.00 = Rp. 2,330 Rp. I million = $442 WEIGHTS AND MEASURES Metric Units FISCAL YEAR Government of Indonesia April 1 - March 31 Perumka January I - December 31 TERMS AND ACRONYMS USED BAPPENAS National Planning Agency ERR Economic Rate of Return GOI Government of Indonesia IACC Inter Agency Coordination Committee ICB International Competitive Bidding MOC Ministry of Communications MOF Ministry of Finance NCB National Competitive Bidding Persero State Owned Limited Liability Company (PT) Perumka Railway State Enterprise PMU Project Management Unit PSO Public Service Obligation RAP Resettlement Action Plan RTF Restructuring Task Force FOR OFFICIAL USE ONLY REPUBLIC OF INDONESIA RAILWAY EFFICIENCY PROJECT LOAN AND PROJECT SUMMARY Borrower: Republic of Indonesia Implementing State Railway Corporation (Perumka) Agencies: Ministry of Communication Beneficiary: Perumka Poverty: Not Applicable Amount: US$105 million Terms: Payable in twenty years including five years of grace, at the standard interest rate for LIBOR-based US Dollar single currency loans Commitment Fee: Standard Onlending Terms: From the loan proceeds, US$19.8 million equivalent will be onlent by GOI to Perumka for 20 years; the subsidiary loan will be denominated in equivalent US dollars and the on-lending rate will be under the same terms as the Bank's loan plus 0.5 percent per annum. Perumka will bear the foreign exchange risk. Financing Plan: See Schedule A Economic Rate of Return: 20.9% SAR: 15646-IND Maps: IBRD 27873, IBRD 27874 Project ID No.: ID-PE-4026 Regional Vice President: Mr. Javad Khalilzadeh-Shirazi (Acting), East Asia and Pacific (EAP) Director: Ms. Marianne Haug, Country Department Ill, EAP Division Chief: Mr. Anupam Khanna, EA31N Staff: Mr. Joris van der Ven, Sr. Transport Economist, EA31N This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed wiLhout World Bank authorization.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE IBRD TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF INDONESIA FOR A RAILWAY EFFICIENCY PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to the Republic of Indonesia for US$105 million to help finance a project for improving the efficiency of the railway. The loan would be at the standard interest rate for LIBOR-based US Dollar single currency loans, with a maturity of 20 years, including five years of grace. Out of the proceeds of the loan, US$19.8 million would be on-lent to the State Railway Corporation, Perumka, under the same terms as the Bank loan plus 0.5% per annum. The project will be co- financed by Australia for US$56 million equivalent. 2. Country/Sector Background. Over the past 10 years, the Indonesian economy has grown at more than 6% per annum with the most rapid growth occurring on Java in those provinces which have a strong export-oriented manufacturing base. The demand for transport grew slightly faster, at some 7% p.a., and is poised to continue growing rapidly, placing heavy demands on Indonesia's transport system. Java and Sumatra are the only islands of the Indonesian archipelago that feature both road and rail transport. Road is by far the dominant mode but rail - comprising an interconnected network of 3,671 km on Java and three separate lines on Sumatra totaling 1,369 km - has maintained its market share in recent years. On Java the system is primarily a passenger railway and accounts for some 7% of interurban passenger movements; the Sumatra lines are primarily freight railways accounting for some 13% of total freight movements on the island. 3. In recent years, the railway has achieved significant improvements in traffic volumes, productivity, and financial performance. Passenger kilometers grew by 66% from 1990 to 1995 (10.7% p.a.), while freight ton kilometers grew by 31% (5.1% p.a.). The workforce was reduced by 22% from 47,000 in 1988 to 36,700 in 1993, and unit operating costs declined in real terms (ranging from -1.7% to -6.5%). Availability and utilization of rolling stock and train productivity also recorded improvement. And, most important for the future, a young, well trained and highly motivated management cadre is being developed. 4. Since 1990, when the railway incurred an operating deficit of Rp 67 billion, revenues have more than doubled. The working ratio (operating expenses less depreciation divided by operating revenues) improved from 101 to 89, while the operating ratio (operating expenses divided by operating revenues) improved from 134 to 98. Compared to railways of similar size, the Indonesian railways rank relatively high in terms of physical measures of asset utilization. But mainly due to depressed passenger fares, its financial returns are inadequate and significantly lower than those of comparably sized railways such as those, for example, of Thailand, Austria, and Belgium. 5. Notwithstanding these improvements, on Java the potential for the railway in passenger transport is much greater than its current role suggests. The island has a population of 120 million and, with some 850 persons per square km, has the highest population density in the world. Furthermore, the elongated geographic structure with the major centers of economic activity strung -2- along the approximately 1000 km long northern coastline, combined with rapid urbanization, add to the attractiveness of rail for interurban passenger transport. Without further development of the railways the rapid growth in interurban passenger travel demand in Java would have to be met entirely by road transport which would cause major adverse environmental and social impacts. Serious capacity constraints are already occurring on the road network even though vehicle ownership at 23 vehicles per 1000 persons is only a fraction of that in countries such as Japan (510 vehicles per 1000) and South Korea (142 vehicles per 1000) with similar geography but lower population densities. Road transport activity is a major contributor to worsening air pollution in Java, and a high road traffic accident rate is causing considerable human and material losses. Moreover, expansion of the road network's capacity is already necessitating the loss of valuable agricultural land and, in the vicinity of major cities, the displacement of large numbers of people. An efficient railway system will, therefore, be a crucial element of sustainable transport on Java. 6. On Sumatra, with a population density one-tenth of Java's and an economy that is heavily dependent on primary industry, rail's potential role is quite different. The main drivers for its development are major mining projects, such as the expansion of the Bukit Asam coal mine, and other large-scale projects (e.g. cement) for which rail can have an economic role. Expansion of the three Sumatra railway systems should, therefore, depend on the phasing of such projects rather than on the growth of passenger and freight traffic in general. The required investments should be evaluated and justified as an integral part of these projects on a commercial basis. 7. Issues. The realization of the railway's potential for passenger transport on Java and for selected freight movements in general continues to be hampered by powerful constraints which are outside the control of the railway itself. These include: a) Government - Railway Interfaces. The complex relationship between the railway and the government, where the latter, in addition to being policy-maker and regulator is also owner and financier for infrastructure and operations, has led to GOI's micro-managing almost every important aspect of decision-making, stifled modernization and stood in the way of private sector involvement in railway transport. Thus, for example, the benefits of investments made in modern technology, such as centralized traffic control, are not being realized because of regulations and restrictions affecting operations and procedures. b) Organizational Structure. In its present form of state enterprise the railway is constrained by government-imposed organizational models which are ill-adjusted to a commercial type management. These constraints, for example, preclude the establishment of subsidiaries and impose an organization along functional rather than business lines. Also, at the lower levels of the organization there are too many management layers with poorly defined responsibilities and channels of reporting. c) Sector Policies. These prevent the railway from pursuing profitable business opportunities as the Ministry of Communications (MOC) regulates the railway's mix of services and tariffs. Thus at least 60% of capacity must be provided for "non commercial" passenger services with tariffs set on the basis of affordability by lower income groups. While the railway is in principle empowered to set tariffs for "commercial" services and for all freight, its freedom to do so is constrained in practice. Also, road user charges on heavy commercial vehicles remain below the costs these vehicles impose on the road system. -3- 8. While such issues are not uncommon to most state enterprises in Indonesia, in the case of the railways they are particularly detrimental because they combine to create an environment in which the company's financial self-sufficiency and managerial autonomy are more severely hampered than in other sectors. The railway remains over-dependent on government financial contributions not only for its investments but even for its operating expenditures, and the manner in which the support is channeled leads to inefficiencies in the use of resources. Thus, investment choices are mostly driven by bilateral funding opportunities with the result, for example, that the Java railway now employs three different "families" of electronic signaling, thereby exacerbating maintenance and operation problems. Also, because Perumka has little control over revenues and costs and obtains funds from GOI for rehabilitation or replacement, it has come to treat maintenance as the residual item in its budgets resulting in serious under-funding. 9. Government Objectives and Strategy. GOI's objective is for the railway to play a much greater role in the transport sector especially on the densely populated and rapidly growing island of Java where interurban travel is projected to continue to grow steadily. GOI recognized in the late 1980s that reforms were needed if rail transport was to play an expanded role in the transport system and with the support of the Bank's Railway Technical Assistance Project (Ln. 2891-IND), it embarked on an initial railway reform program. In January 1991 the railway, which until then had been a departmental agency, was converted into a more autonomous state enterprise (Perumka) that is required by law to earn revenues sufficient to cover its costs. In the conversion, GOI retained ownership of the infrastructure (track and signals) while Perumka was assigned the rolling stock and other assets, including some valuable inner city landholdings around railway stations, and was made responsible for operating freight and passenger services and maintaining the infrastructure on behalf of GOI. These initial reforms played a major role in the improvements outlined above (paras 3-4). 10. During 1995 a second stage reform agenda, which forms part of GOI's continuing efforts at state enterprise reform, was developed. Based on the findings and recommendations of Bank- financed studies and with Bank assistance, new policies were formulated and a detailed short term action plan was firmed up in early 1996. This involved the participation of all the key agencies concerned and Perumka. The action plan aims at: restructuring the railway into a financially self- sufficient limited liability company (Persero); giving management the necessary commercial autonomy in terms of tariff-setting and the ability to pursue services where rail is competitive; creating transparency in the financial relationship with GOI by compensating the railway for providing basic services to low income groups at fares which do not cover costs (public service obligations (PSO)) and establishing a mechanism to provide adequate payments for track maintenance; relaxing and modernizing operating regulations and procedures; and creating increased opportunities for private sector participation. Government has initiated implementation of the action plan and established in March 1996 an Inter-Agency Coordinating Committee (IACC) with high level representation from the ministries of finance and transport, BAPPENAS and the coordinating ministry for economy and industry. 11. Past Bank Involvement and Lessons of Experience. The Bank has financed only two railway projects in Indonesia. The first (Loan 1005-IND) of 1974 focused on investments and operational improvements. It succeeded in its immediate objectives but had a limited impact on the institutional set-up and the railway's financial situation. After a 10-year hiatus, the Railway Technical Assistance Project (Loan 2891-IND) of 1987, was far more successful in these areas. It -4- was very effective in providing practical training in modern railway management practices for a group of middle-managers from whom many of the current top management team have since been drawn. It was instrumental in initiating the early reform initiatives and in supporting the transition from departmental agency to public corporation status (as required by covenant). 12. A key lesson of the Bank's involvement in railways worldwide is the need for a strong commitment to reform at the highest levels of government and the railway enterprise. Other important lessons from railway reform in developed and developing countries include: a) Railway management should be given sufficient autonomy and authority and should be held accountable for their performance; b) Market driven commercial activities should be separated from public services; c) Reforms involved establishing an organizational structure oriented towards lines of business; d) The issues of surplus personnel and civil service conditions of employment need to be addressed up front; e) Railway reform is a complex matter which should be staged, focusing on the essential problems first and ensuring government understanding and participation; and f) Because of the importance of government commitment and sustained effort, Bank involvement and conditionality can assist the reform but cannot drive it. These lessons have been carefully applied in the preparation of the project. They underlie the close dialogue established with senior GOI and Perumka officials, and are reflected in the overall design of the project and technical assistance components. 13. Bank Strategy and Rationale for Bank Involvement. The Bank has had a continuing involvement in state enterprise reform in several key sectors with the focus shifting to privatization issues. In transport the Bank's strategy is to assist GOI in developing an efficient transport system capable of meeting the challenges of a rapidly growing economy, through: (i) policy and institutional reforms which ensure that the transport modes play their proper role and with effective private participation, (ii) rationalization of the sectoral investment programs and operational improvements: and (iii) the financing of selective investments. The proposed project is an integral part of the Bank's support for land transport and is fully consistent with the last CAS discussed by the Board on March 21, 1995 and the CAS Progress Report discussed by the Board on June 4, 1996. BAPPENAS, MOC and Perumka have sought the Bank's advice for its extensive international experience and its in-depth understanding of Indonesia's transport sector and railway subsector. The government, particularly BAPPENAS, and other lending agencies also expect the Bank to assist in rationalizing the railway investment program. 14. Project Objectives. With the general objective of improving the economic efficiency and service quality of Indonesia's railway subsector, to position it to play its proper role within the transport system, the project aims specifically at: (a) railway subsector policy reform by restructuring the railway corporation, reforming the relationship between it and government and creating the foundations for expanded private participation; (b) rationalizing railway subsector capital investments; (c) improving railway subsector management and operations; and (d) increasing the physical capacity of an important railway corridor. 15. Performance Indicators. Monitoring will cover the achievement of project objectives and implementation of the components. Indicators will cover six main areas: (a) Policy Reform -5- Implementation; (b) Rationalization of Capital Investments; (c) Operational Performance; (d) Financial Performance; (e) Capacity in the Jakarta-Bandung Corridor; and (f) Quality of Service (Attachment page 9). Achievements in policy reform will be tracked by the dates of key actions of the action plan. The rationalization of capital investments will be monitored in terms of the investments in the updated plan that are developed using economic/financial analyses. Operational and financial performance will be monitored using key performance indicators routinely produced by Perumka for which targets will be agreed each year for the two following years. The result of the development of the Jakarta Bandung corridor will be monitored in terms of the theoretical capacity and actual capacity utilization. Project component implementation performance will be monitored against the implementation plan and schedule. 16. Project Description. The project consists of five components: a) Policy reform involving restructuring of Perumka into a Persero (limited liability company) and reform of Government-corporate interfaces; b) Improvements to the railway in the important Jakarta-Bandung corridor (170 km) to expand capacity, shorten passenger journey times and improve safety; c) Implementation of a modern track maintenance system on Java; d) Implementation of a diesel electric locomotive unit exchange maintenance system on Java; and e) Institutional Development of Perumka. Schedule A shows project costs and the financing plan. Schedule B sets forth the amounts and methods of procurement and disbursement. Schedule C summarizes key project processing events, and Schedule D summarizes the status of Bank Group operations in Indonesia, and Schedule E includes the "Indonesia at a Glance" table. 17. Project Implementation. By Ministerial Decree MOC has established a high level IACC to guide and oversee the implementation of the policy reform and the proposed project. This will be supported by a Restructuring Task Force (RTF) responsible for the policy reform and a Project Management Unit (PMU) comprising key Perumka personnel responsible for the investment and institutional development components. 18. Sustainability. The components of the project are aimed at improving the long term economic and financial viability of the railway. The policy component, by focusing on organizational restructuring, deregulation of tariffs and services and the establishment of a PSO mechanism would enhance commercial and financial viability and ultimately eliminate the dependence of the railway on government. The investment for capacity expansion, the track maintenance and rehabilitation program, and the operational improvements should improve service and lower costs which are essential for sustainable railway transport. 19. Social Impacts. The partial double-tracking of the section of line between Cikampek and Padalarang will affect 256 households whose dwellings have been constructed on posted land owned by GOI. All those affected signed yearly rental agreements with Perumka under which they agree to move when the land is required in exchange for a nominal rental payment. There are no squatters. Perumka has prepared a resettlement action plan (RAP) in accordance with World Bank policy on resettlement. For purposes of safety, implementation of the double-tracking will also -6- require the acquisition of narrow (+/- 2 meter) strips of land along some short rural sections of the track. The requirement is for 53 pieces of land totaling 1.6 ha. No displacement is involved. The costs of Rp 1.7 billion associated with the RAP and land acquisition are included in the project cost estimates. Implementation will be monitored independently with progress reports provided to Perumka and the Bank. 20. Environmental Impacts. The environmental category assigned to this project is "B". The project will not have any major adverse environmental impacts. The partial double-tracking of the Cikampek-Padalarang section is straight-forward and does not involve the construction of major structures and/or pose risk of damage to environmentally sensitive areas. Appropriate mitigation measures designed to safeguard drainage structures and minimize dust, traffic disruption, workplace hazards and other impacts of the construction work will be included in the conditions of contract. The diesel locomotive maintenance component entails the limited upgrading of existing workshop and depot buildings and equipment within existing boundaries. Specific provision will be made for preventing workshop and depot operations affecting the surrounding environment, in particular through measures designed to contain and enable satisfactory disposal of spilled or waste fuel and lubricants. The project will also contain measures to eliminate or reduce identified environmental problems. 21. Agreed Actions. At negotiations agreement was reached with GOI that it will: a) maintain the IACC and the RTF; b) annually finalize the railway infrastructure investment plan taking into account the Bank's comments; c) establish with effect from FY1997/98 a compensation mechanism for public service obligations imposed on Perumka, a mechanism for funding adequate rail infrastructure maintenance, and a track-access charges system; d) except for the above compensation mechanisms not provide direct or indirect subsidies to Perumka to finance its investments; e) prepare final drafts of Government Regulations for implementing Law 13/92 on railways taking into account the Bank's comments; f) restructure Perumka into a limited liability company (Persero) by January 1, 1998 in a form satisfactory to the Bank; g) develop improved guidelines and procedures for private participation in the railway subsector; and h) monitor and report on the implementation of the railway reform program in accordance with indicators satisfactory to the Bank. 22. At negotiations agreement was reached with Perumka that it will: a) maintain the PMU and the three PIUs; b) annually finalize its corporate plan taking into account the Bank's comments; c) strengthen its capabilities in the areas of environmental management, occupational health and safety; d) take all measures required to achieve: a self-financing ratio of not less than 20% during 1997 - 2000, and not less than 25 % thereafter; and a debt service coverage ratio of not less than 1.3 of the annual average capital expenditures incurred, or expected to be incurred for that year, the previous financial year and the following year; -7- e) monitor project performance and financial and operating indicators and targets satisfactory to the Bank and revise its targets taking into account the Bank's comments; f) implement the resettlement and environmental action plans and monitoring plans; and g) revalue its fixed assets by December 31, 1997. 23. Program Objective Categories/Poverty Category. The project will contribute to the objective of economic management by targeting institutional and policy reform. Secondary objectives are: environmentally sustainable development, because transport by rail as opposed to road brings about positive environmental effects, and because the project will develop approaches to addressing environmental impacts of capacity expansion investment and of pollutants from workshops and depots; and private sector development, through establishment of a framework and new approaches for private participation in rail. This project is not in the program of targeted interventions. 24. Benefits. The policy reform and institutional development components will provide the railway with a modern enabling institutional environment, lay the foundations for effective private participation and establish management arrangements and technical skills conducive to greater efficiency. This will contribute directly to the delivery of better services in terms of reliability, frequency of trains, safety and affordability. In addition, these components are critical for enabling the railways to carry growing volumes of traffic, play its proper role in the transport system, and reduce its dependence on the government budget through private sector participation. 25. The three investment components yield an overall economic rate of return (ERR) of 20.9%. The Jakarta-Bandung corridor development component is greatly scaled down from an initial ambitious proposal for double tracking which had considerable bilateral interest. The proposed investments comprise only those which pass the test of economic viability. The without-project case assumes a minimum amount of investment in track and rolling stock required to sustain the present situation. Using a "conventional" evaluation approach the ERR is estimated at 12.3%. This evaluation, however, does not take into account difficult to value environmental, social and quality of service benefits such as safety. If these aspects are considered the rate of return increases to 15%. The financial rate of return is estimated at 11 %. If due consideration is given to the capacity constraints which will eventually surface on the road system in this corridor which connects urban agglomerations totaling some 20 million people, this investment is well justified and should enable the railway to demonstrate its capability to offer competitive services with road in an improved policy and institutional environment. 26. Modern track maintenance and upgrading techniques will significantly extend the expected life of the track, thus reducing track rehabilitation and investment costs. In addition, it will also generate savings in train operating costs as a result of reduction in fuel consumption and in locomotive and rolling stock maintenance. The estimated rate of return is 35%. The introduction of unit exchange maintenance procedures will improve locomotive and rolling stock reliability and availability, which will in turn lead to better utilization of the equipment and generate savings in locomotive and rolling stock investment and maintenance. The rate of return is estimated at 26%. Benefits will also accrue from improved workshop operation procedures which will better protect the environment. -8- 27. Project Risks. With regard to the policy reform a main risk is resistance by some parts of MOC. This risk is recognized by those in GOI who are strongly committed to continuation of the reform process. MOF and BAPPENAS can be expected to take a lead role in securing timely implementation of the policies. In order to mitigate this risk an implementation structure - the IACC - whose membership is dominated by reform-oriented ministries and agencies was established. Furthermore, at negotiations agreement was reached on specific and monitorable actions in key policy areas and progress will be reviewed annually. 28. A second risk is that implementation of the investment components will suffer delays because of the need to work within short time "windows" dictated by the frequency of train services. To mitigate this risk, a professional and integrated project management would be established for the Jakarta-Bandung corridor development and Java track maintenance components. Appointment of the project management consultants is a condition of approval of the major contracts for works and equipment. The sensitivity analyses conducted on the investment components where implementation risks and cost uncertainties were assessed indicate that the economic returns are robust. 29. A third risk is that influences from outside the railway will stand in the way of sound capital investments and prudent management of the assets of the railway. There may be pressure to purchase rolling stock from favored domestic or foreign suppliers or there may be directed decisions regarding asset disposal. Given Indonesia's political economy this risk would be managed by fostering a clear and transparent governance structure and decision framework related to investment and financing through agreements on the annual updating and review of the investment program and the railways' financial projections. 30. Recommendation. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank and I recommend that the Executive Directors approve it. James D. Wolfensohn President by Gautam Kaji Washington D.C. October 17, 1996 Attachments INDONESIA - RAILWAY EFFICIENCY PROJECT KEY PERFORMANCE INDICATORS Base Year Full Impact Objective Indicator Unit 1995 1997 1998 1999 2000 2001 2002 Year 1. Policy Reform a. Action Plan Implementation % completed n.a. on schedule 2. Capital Investment a. Annual revision of infrastructure submitted n.a. Rationalization investment plan on time b. Financial evaluation of Perumka Rp billion n.a 1 1 0.5 0.5 0.5 0.5 investment projects greater than 3. Operational a. Loco availability at Bandung % available 80 81 83 85 85 85 85 Performance and Semarang b. Loco availability at other Java % available 82.3 82.5 83 85 85 85 85 depots c. Java main track kilometers with Unit per day 35 35 35 35 35 30 30 temporary speed restrictions d. Java main track kilometers with km 960 940 920 900 880 860 890 track quality below standard e. Total Perumka labor productivity 1000TU/Person 520 575 630 675 720 770 825 f. Java locomotive fleet utilization a. 1000TU/ALD 187 208 245 285 315 325 330 b. km per day 350 434 493 524 545 560 570 g. Java intercity coach fleet 1000TU/ACD 35 35 37 39 46 50 53 utilization 4. Financial a. Self-financing ratio Decimal ratio 0.27 0.42 0.39 0.39 0.36 0.40 Performance b. Debt service coverage Decimal ratio 3.4 2.8 2.2 2.2 2.0 2.1 c. Return on net assets 1/ % 6 2 2 3 4 5 5. Jakarta-Bandung a. Peak period capacity available No. trains per 3 3 3 3 3 5 5 Corridor Performance hour b. Peak period capacity utilized No. trains per 2.5 2.5 2.5 2.5 2.5 3 4 hour c. Passenger and freight train delays Minutes per during construction/implementation day 6. Quality of Service a. Java passenger train punctuality % of trains 35 38 40 42 45 45 45 (trains less than 15 minutes late) operated b. Java container train punctuality % of trains 25 25 25 30 30 35 35 (trains less than 30 minutes late) operated TU = Traffic Unit ALD = Available Loco Day ACD = Available Coach Day I/ based on revalued assets from 1998 - 10 - Schedule A REPUBLIC OF INDONESIA RAILWAY EFFICIENCY PROJECT Estimated Project Costs and Financing Plan Pro.ject Costs Rupiah billion US$ million Foreign as Local Foreign Total Local Foreign Total % of total 1. Policy reform 2.0 7.9 9.9 .9 3.4 4.3 80 2. Jakarta-Bandung Corridor 47.5 235.3 282.8 20.4 100.9 121.3 83 3. Track upgrading and maintenance system 29.2 58.3 87.5 12.5 25.0 37.5 67 4. Locomotive unit exchange maintenance system 4.4 30.5 34.9 1.9 13.1 15.0 87 5. Institutional development 1.9 7.4 9.3 0.8 3.2 4.0 80 6. Base cost 85.0 339.4 424.4 36.5 145.6 182.1 80 Physical contingencies 8.5 20.9 29.4 3.6 9.0 12.6 71 Price contingencies 36.8 82.0 118.8 3.9 8.8 12.7 69 Total project cost 130.3 442.3 572.6 44.0 163.3 207.3 79 Financing Plan Source of Financing Local Foreign Total % IBRD proposed loan - lent to GOI 85.2 85.2 41 IBRD proposed loan - onlent by GOI to Perumka 19.8 19.8 10 Total IBRD Loan 105.0 105.0 51 Loans 3385-IND and 3913-IND (Policy Reform) 2.4 2.4 1 IBRD total 107.4 107.4 52 GOI 39.7 0 39.7 20 Perumka 4.2 0 4.2 1 Government of Australia - lent to GOI (infrastructure) 0 56.0 .0 27 Total 43.9 163.4 207.3 100 - 11 - Schedule B REPUBLIC OF INDONESIA RAILWAY EFFICIENCY PROJECT Procurement and Disbursement Arrangements (US$M) ICB NCB Other h/ NBF c/ Total 1. Works 24.1 3.0 13.4 d/ 40.5 (7.2) (1.8) (9.0) 2. Goods 85.7 0.1 62.2 e/ 148.0 (83.5) (0.1) (83.6) 3. Consultants 15.5 15.5 (12.4) (12.4) 4. Land Acquisition & 0.9 0.9 Resettlement Total 109.8 3.0 15.6 76.5 204.9 (90.7) (1.8) (12.5) (105.0) Note: Figures in parentheses are respective amounts to be financed under the proposed loan. a/ Excluding taxes and interest during construction but including contingencies b/ Direct contracting and consulting services c/ Not Bank-financed d/ Force account works e/ Australian-financed signaling (US$56 million equivalent) and ballast (US$6.2 million) Disbursements Category Allocation of % of Expenditures to be Financed Loan 1. Civil works for Jakarta-Bandung Corridor 6.9 30% of contract expenditures 2. Civil works for locomotive unit exchange 1.3 60% of contract expenditures 3 Jakarta-Bandung Corridor signal supply 21.5 90% of contract expenditures and installation 4. Equipment and materials 47.7 100% of foreign and 100% of local (ex-factory) expenditures 5. Consultants' services 9.9 80% of all expenditures 6. Unallocated 17.7 Total 105.0 Estimated IBRD Disbursements by FY 1997 1998 1999 2000 2001 2002 2003 Annual 3 11 26 26 26 12 2 Cumulative 3 15 40 65 90 105 105 - 12 - Schedule C REPUBLIC OF INDONESIA RAILWAY EFFICIENCY PROJECT Key Project Processing Events (a) Time taken to prepare the project: 26 months (b) Staff who prepared the project: See below (c) First IBRD mission: September 1994 (d) Appraisal mission departure: July 1996 (e) Date of negotiations: September 9-13, 1996 (f) Planned effectiveness date: March 1997 (g) List of relevant PCRs/ICRs/PPARs: Loan Number Project Date Report No. 3739-IND Railway 1 1981 3511 (PPAR) 3908-IND Railway TA 1995 13914 This project was prepared by a team consisting of P. Anderson (Sr. Railway Specialist), D. Bullock (Railway Specialist, consultant), A. Byl (Task Manager until November 1995), S. Guggenheim (Sr. Social Scientist), D. Hawes (Transport Specialist), D. Liu (Economist), M. Rasheed (Financial Analyst), B. Scouller (Operations Officer, from April-September 1996), J. van der Ven (Sr. Transport Economist and Task Manager from November 1995) and T. Walton (Sr. Environmental Specialist). The peer reviewers were Mr. L. Thompson (Railway Advisor, TWUTD), and Ms. H. Deboeck (Sr. Financial Analyst, EA2TP). Ms. Marianne Haug and Mr. Anupam Khanna, the Director and Division Chief respectively, have endorsed this project. MOP Schedule D Run Date: 10/16/96 IBRD Loans and IDA Credits in the Operations Portfolio Status of Bank Group Operations in Indonesia Difference Original amount in US$ millions between expected Project Loan or Fiscal and actual ID Credit No. Year Borrower Purpose IBRD IDA Cancellations Undisbursed disbursements' Number of Closed Loans: 147/ Credits: 48 Active Loans ID-PE-3923 L2932 1988 GOI Jabotabek Urban Transport 150.00 7.83 7.83 ID-PE-3946 L3112 1990 GO Public Works Institutional Dev. & Tmg 36.10 0.01 0.01 ID-PE-3873 L3158 1990 GOI Second Secondary Education 154.20 25.24 25.24 ID-PE-3973 L3182 1990 GO Third Telecommunications 350.00 37.50 23.23 60.73 I ID-PE-3960 L3209 1990 GOI Gas Utilization 86.00 42.53 42.53 ID-PE-3868 L3219 1990 GOI Second Jabotabek Urban Development 190.00 33.07 32.11 ID-PE-3977 L3246 1991 GOI Third Jabotabek Urban Development 61.00 21.64 20.36 ID-PE-3959 L3282 1991 GOI Fertilizer Restructuring 221.70 0.24 10.71 8.05 ID-PE-3981 L3302 1991 GO Provincial Irrigated Agriculture Dev. 125.00 20.50 22.70 43.20 ID-PE-3943 L3304 1991 GOI East Java/Bali Urban Development 180.30 28.01 28.01 ID-PE-3912 L3305 1991 GOI Yogyakarta Upland Area Development 15.50 3.51 3.23 ID-PE-3922 L3340 1991 GOI Sulawesi-Irian Jaya Urban Development 100.00 11.65 8.87 ID-PE-3975 L3349 1991 GOI Power Transmission 275.00 103.40 19.24 117.14 ID-PE-4002 L3385 1991 GOI Technical Assistance for Infrastructure 30.00 11.33 11.33 ID-PE-3928 L3402 1992 GO Agricultural Financing 106.10 54.03 48.73 ID-PE-3966 L3431 1992 GOI Third Non-Formal Education 69.50 14.17 2.47 ID-PE-3940 L3448 1992 GOI Primary Education Quality Improvement 37.00 21.20 11.90 ID-PE-4012 L3454 1992 GOI BAPEDAL Development 12.00 2.16 0.66 ID-PE-3860 L3464 1992 GOT Treecrops Smallholder 87.60 46.19 20.09 ID-PE-3997 L3482 1992 GOI Fourth Telecommunications 375.00 222.24 42.24 ID-PE-3949 L3490 1992 GO Third Kabupaten Roads 215.00 5.06 5.06 ID-PE-3969 L3496 1992 GO Primary School Teacher Development 36.60 15.34 10.04 ID-PE-3916 L3501 1992 GOI Suralaya Thermal Power 423.60 232.21 13.11 ID-PE-3970 L3526 1993 GOI Financial Sector Development 307.00 39.81 45.14 84.95 ID-PE-3914 L3550 1993 GOI Third Community Health & Nutrition 93.50 50.63 7.13 ID-PE-4006 L3579 1993 GO E. Indonesia Kabupaten Roads 155.00 41.82 17.81 Page 1 of 3 Difference Original amount in US$ millions between expected Project Loan or Fiscal and actual ID Credit No. Year Borrower Purpose IBRD IDA Cancellations Undisbursed disbursements' ID-PE-4009 L3586 1993 GOI Integrated Pest Management 32.00 23.62 13.12 ID-PE-3999 L3588 1993 GOI Groundwater Development 54.00 36.53 2.73 ID-PE-4018 L3589 1993 GOI Flores Earthquake Reconstruction 42.10 8.96 8.96 ID-PE-4007 L3602 1993 GO[ Cirata Hydroelectric Phase 11 104.00 78.51 52.71 ID-PE-3990 L3629 1993 GOI Water Supply & Sanitation for Low Income 80.00 57.70 22.70 ID-PE-3985 L3658 1994 GOI National Watershed Mgmt and Consvation 56.50 49.37 5.07 ID-PE-3945 L3712 1994 GO Second Highway Sector Investment 350.00 244.10 74.10 ID-PE-3952 L3721 1994 GOI Skills Development 27.70 22.80 17.85 ID-PE-3998 L3726 1994 GO Surabaya Urban Development 175.00 152.34 54.24 ID-PE-4020 L3732 1994 GOI Fifth Kabupaten Roads 101.50 56.68 -2.81 ID-PE-4010 L3742 1994 GOI Dam Safety 55.00 45.92 8.52 ID-PE-3890 L3749 1994 GOI Semarang-Surakarta Urban Development 174.00 136.27 22.37 ID-PE-4017 L3754 1994 GOI University Research for Graduation Study 58.90 47.60 6.20 ID-PE-3937 L3755 1994 GO] Integrated Swamps 65.00 53.47 6.22 ID-PE-3910 L3761 1994 GOI Sumatera & Kalimantan Power 260.50 244.36 43.86 ID-PE-3954 L3762 1994 GOI Java Irrigation Improvements and Wtr Resource 165.70 137.29 21.49 ID-PE-3984 L3792 1995 GOI Land Administration 80.00 72.66 8.64 ID-PE-4019 L3801 1995 GO Second Accountancy Development 25.00 22.14 9.94 ID-PE-3988 L3825 1995 GOI Second Professional Resource Development 69.00 52.85 -0.16 ID-PE-3979 L3845 1995 GOI Second Rural Electrification 398.00 380.29 46.63 ID-PE-3951 L3854 1995 GOI Kalimantan Urban Development 136.00 115.77 25.27 ID-PE-3972 L3886 1995 GOI Second Agriculture Research Management 61.00 61.00 ID-PE-3968 L3887 1995 GOI Book & Reading Development 132.50 130.22 -2.24 ID-PE-34891 L3888 1995 GOI Village Infrastructure 72.50 39.37 5.63 ID-PE-4001 L3904 1995 GOI Telecommunications Sector Modernization 325.00 325.00 ID-PE-3965 L3905 1995 GOI Fourth Health 88.00 86.72 -1.25 ID-PE-39754 L3913 1995 GOI Second Technical Assistance for Infrastructure 28.00 28.00 ID-PE-3978 L3972 1996 GOI Industrial Technology Development 47.00 46.00 3643.45 ID-PE-4021 L3978 1996 GOI Second Power Transmission and Distribution 373.00 373.00 ID-PE-4003 L3979 1996 GOI Second Teacher Training 60.40 59.60 5.65 ID-PE-39643 L3981 1996 GOI STD/AIDS 24.80 24.30 1.50 ID-PE-4008 L3984 1996 GOI Nusa Tenggara Agriculture Development 27.00 26.20 1 30 ID-PE-401 I L4007 1996 GOI Sulawesi Agriculture Area Development 26.80 26.80 0.75 ID-PE-4014 L4008 1996 GO Kerinci Seblat ICDP 19.10 19.10 ID-PE-39312 L4017 1996 GOI Second E. Java Urban Development 142.70 142.70 14.00 ID-PE-41896 L4030 1996 GOI Human Resource Capacity Building 20.00 20.00 0.51 ID-PE-37097 L4042 1996 GO E. Java Junior Secondaraya Education 99.00 99.00 ID-PE-4004 L4043 1996 GOI Higher Education Support 65.00 65.00 I 50 Page 2 of 3 Difference Original amount in US$ millions between expected Project Loan or Fiscal and actual ID CreditNo. Year Borrower Purpose IBRD IDA Cancellations Undisbursed disbursements' ID-PE-4016 L4054 1996 GOI Strategic Urban Roads 86.90 86.90 ID-PE-3987 L4062 1997 GOI C. Indonesia Secondary Education 104.00 104.00 ID-PE-41894 L4095 1996 GO Sumatra Secondary Education 98.00 98.00 ID-PE-40521 L4100 1997 GOI Second Village Infrastructure 140.10 140.10 IOIAL 8,A43A40 OU 201A45 505.3 4.29.28 Active Loans Closed Loans Total Total disbursed (IBRD and IDA) 3,190.83 14,219.69 17,410.52 Of which repaid 65.78 6,159.40 6,225.18 Total now held by IBRD and IDA 8,176.16 8,082.91 16,259.07 Amount sold 0.00 88.08 88.08 Of which repaid 0.00 82.35 82.35 Total undisbursed 5,051.12 22.63 5,073.75 H vi a. Intended disbursements to date minus actual disbursements to date as projected at appraisal. Note: Disbursement data are updated at the end of the first week of the month. Page 3 of 3 MOP Schedule D Run date: 8/02/96 Indonesia - Statement of IFC Investments As of 6/30/96 (US$ millions) Original Gross Commitments Fiscal 1FC IFC Parti- Held by Held by Undisb. incl. Year Obligor Type ofBusiness Loan Equity cipants Totals IFC Participants Participants 1971 a/ P.T. Kabel-Indonesia - Kabelindo Manufacturing 1.80 0.37 1.00 3.17 0.00 0.00 0.00 1971 a/ P.T. Primatexco Indonesia Textiles 1.35 0.50 0.65 2.50 0.00 0.00 0.00 1971 a/ P.T. Semen Cibinong Cement and Construction Materials 7.58 2.05 3.52 13.15 0.00 0.00 0.00 1971 P.T. Unitex Textiles 0.75 0.80 1.75 3.30 0.35 0.00 0.00 1972 a/ P.T. Daralon Textile Manufacturing Corporation Textiles 3.38 1.12 1.50 6.00 0.00 0.00 0.00 1973 a/ P.T. Jakarta International Hotel Hotels and Tourism 4.00 0.43 7.00 11.43 0.00 0.00 0.00 1973 a/ P.T. Semen Cibinong Cement and Construction Materials 0.65 0.68 4.75 6.08 0.00 0.00 0.00 1974 a/ P.T. Kamaltex Textiles 1.92 0.60 0.48 3.00 0.00 0.00 0.00 1974 a/ P.T. Monsanto Pan Electronics Manufacturing 0.90 0.00 0.00 0.90 0.00 0.00 0.00 1974 a/ P.T. Primatexco Indonesia Textiles 2.00 0.30 0.00 2.30 0.00 0.00 0.00 H 1974 a/ P.T. PDFCI Bank Financial Services 0.00 0.48 0.00 0.48 0.00 0.00 0.00 m 1974 a/ P.T. Semen Cibinong Cement and Construction Materials 5.00 1.52 0.00 6.52 0.00 0.00 0.00 1976 a/ P.T. Semen Cibinong Cement and Construction Materials 0.00 1.06 0.00 1.06 0.00 0.00 0.00 1977 a/ P.T. Daralon Textile Manufacturing Corporation Textiles 0.35 0.00 0.00 0.35 0.00 0.00 0.00 1977 a/ P.T. Kamaltex Textiles 0.44 0.15 0.91 1.50 0.00 0.00 0.00 1979 a/ P.T. Daralon Textile Manufacturing Corporation Textiles 0.70 0.00 0.23 0.93 0.00 0.00 0.00 1980 a/ P.T. Papan Sejahtera Financial Services 4.00 1.20 0.00 5.20 0.00 0.00 0.00 1980 P.T. Semen Andalas Indonesia Cement and Construction Materials 27.95 5.00 28.53 61.48 20.37 10.98 0.00 1980 a/ P.T. Supreme Indo-American Industries Manufacturing 5.10 0.94 6.00 12.04 0.00 0.00 0.00 1982 P.T. Saseka Gclora Finance Financial Services 2.00 0.32 2.00 4.32 0.32 0.00 0.00 1984 at P.T. Semen Cibinong Cement and Construction Materials 8.00 0.00 17.00 25.00 0.00 0.00 0.00 1985 P.T. Saseka Gelora Finance Financial Services 1.00 0.06 0.00 1.06 0.06 0.00 0.00 1988 P.T. Asuransi Jiwa Dharmala Manulife Financial Services 0.00 0.32 0.00 0.32 0.32 0.00 0.00 1988 P.T. Bali Holiday Village Hotels and Tourism 9.32 0.00 2.00 11.32 0.44 0.00 0.00 1988 at P.T. Monterado Mas Mining Mining and Extraction of Metals and Other Ores 3.50 2.00 4.50 10.00 0.00 -1.35 0.00 1988 P.T. Semen Andalas Indonesia Cement and Construction Materials 0.56 0.00 0.00 0.56 0.00 0.00 0.00 1989 a/ P.T. Jakarta International Hotel Hotels and Tourism 0.00 1.06 0.00 1.06 0.00 0.00 0.00 1990 a/ Bank Niaga Financial Services 7.50 0.00 0.00 7.50 0.00 0.00 0.00 1990 a/ Nomura Jakarta Fund (NJF) Financial Services 0.00 3.00 0.00 3.00 0.00 0.00 0.00 1990 P.T. Astra International, Incorporated Motor Vehicles and Components (including Motorcycles) 12.50 12.50 0.00 25.00 11.62 0.00 0.00 1990 a/ P.T. Bank Umum Nasional Financial Services 10.00 0.00 0.00 10.00 0.00 0.00 0.00 1990 a/ P.T. Citra Agramasinti Nusantara Industrial and Consumer Services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1990 a/ P.T. Federal Motors Motor Vehicles and Components (including Motorcycles) 12.50 0.00 0.00 12.50 0.00 0.00 0.00 Page 1 of 3 Original Gross Commitments Fiscal IFC IFC Parti- Held by Held by Undisb. incl. Year Obligor Type of Business Loan Equity cipants Totals IFC Participants Participants 1990 P.T. Indo-Rama Synthetics Textiles 12.00 0.00 0.00 12.00 1.84 4.91 0.00 1990 a/ P.T. Nusantara Island Resort Hotels and Tourism 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1991 P.T. Agro Muko Food and Agribusiness 10.50 2.20 0.00 12.70 5.98 4.09 0.00 1991 P.T. Argo Pantes Textiles 30.00 13.00 53.00 96.00 31.75 30.29 0.00 1991 P.T. Astra International, Incorporated Motor Vehicles and Components (including Motorcycles) 0.00 9.85 0.00 9.85 0.00 0.00 0.00 1991 P.T. Indo-Rama Synthetics Textiles 15.00 6.18 0.00 21.18 16.49 0.00 0.00 1991 al Raja-Pendopo Oil Exploration Program Mining and Extraction of Fuel Minerals 0.00 3.60 0.00 3.60 0.00 0.00 0.00 1992 P.T. Bakric Kasci Corporation Chemicals and Petrochemicals 30.00 9.63 95.00 134.63 31.19 85.73 0.00 1992 P.T. Indonesia Asahi Chemical Industry Textiles 4.00 1.83 0.00 5.83 3.03 0.00 0.39 1992 P.T. Lantai Keramik Mas Cement and Construction Materials 5.40 1.70 10.00 17.10 2.72 7.45 0.13 1992 P.T. Rimba Partikel Indonesia Timber, Pulp and Paper 9.88 0.60 10.00 20.48 9.21 5.00 0.00 1992 P.T. Swadharma Kerry Satya Hotels and Tourism 35.00 0.00 51.00 86.00 26.44 49.11 0.00 1993 P.T. BBL Dharmala Finance Financial Services 5.00 0.00 0.00 5.00 0.79 1.27 0.00 1993 a/ P.T. Kabil Indonusa Estate Industrial and Consumer Services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1993 P.T. Mitracorp PacificNusantara Industrial and Consumer Services 16.00 0.00 0.00 16.00 15.87 0.00 0.00 1993 P.T. Nusantara Tropical Fruit Food and Agribusiness 9.00 0.00 7.00 16.00 4.00 12.00 0.75 1993 P.T. Samudera Indonesia Infrastructure 12.00 5.00 3.00 20.00 7.45 8.05 0.00 1993 P.T. South Pacific Viscose Textiles 20.00 0.00 25.00 45.00 8.72 17.12 0.00 1993 SEAVI Indonesia Aruba A.V.V. Financial Services 0.00 1.50 0.00 1 50 1.50 0.00 0.00 1994 P.T. Asia Wisata Promosindo Hotels and Tourism 0.00 0.00 0.00 0.00 2.30 2.30 0.00 1994 P.T. Astra International, Incorporated Motor Vehicles and Components (including Motorcycles) 0.00 13.08 0.00 13.08 10.67 0.00 0.00 1994 P.T. KDLC Bali BancBali Finance Financial Services 15.00 1.14 0.00 16.14 16.14 0.00 0.00 1994 P.T. Lantai Keramik Mas Cement and Construction Materials 0.00 1.40 0.00 1.40 1.40 0.00 0.00 1994 P.T. Pama Indonesia Financial Services 0.00 0.71 0.00 0.71 0.71 0.00 0.00 1994 P.T. Saripuri Permai Hotel (SPH) Hotels and Tourism 8.00 3.60 24.00 35.60 8.00 24.00 0.00 1994 P.T. Saseka Gelora Finance Financial Services 1.52 0.00 0.00 1.52 0.00 0.00 0.00 1994 a/ P.T. Sinar Pure Foods International Food and Agribusiness 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1994 Prudential Asia Indonesia Trust Financial Services 0.00 6.75 0.00 6.75 6.75 0.00 2.57 1994 PAMA (Indonesia) Limited Financial Services 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1995 P.T. Bakrie Kasei Corporation Chemicals and Petrochemicals 30.00 3.00 0.00 33.00 33.00 0.00 0.00 1995 P.T. Bakrie Kasel Pet Chemicals and Petrochemicals 12.00 2.00 0.00 14.00 14.00 0.00 0.00 1995 P.T. Bakrie Pipe Industies Manufacturing 29.50 0.00 0.00 29.50 29.50 0.00 0.00 1995 P.T. Bunas Finance Indonesia Financial Services 10.00 0.00 6.00 16.00 10.00 6.00 0.00 1995 P.T. Indo-Rama Synthetics Textiles 30.00 4.71 67.50 102.21 34.71 67.50 2.17 1995 P.T. KIA Serpih Mas Cement and Construction Materials 15.00 6.35 55.00 76.35 21.35 55.00 25.11 1995 P.T. Mitracorp PacificNusantara Industrial and Consumer Services 2.75 4.12 0.00 6.87 666 0.00 0.00 1995 P.T. Panin Overseas Finance Financial Services 6.00 1.93 8.00 15.93 7.93 8.00 0.00 1995 PT Citimas Capital Indonesia Financial Services 0.00 2.59 0.00 2.59 2.59 0.00 1.28 1996 P.T. BBL Dharmala Finance Financial Services 15.00 0.00 35.00 50.00 15.00 35.00 2000 1996 P.T. Dharmala Agrifood Food and Agribusiness 20.00 0.00 15.00 35.00 20.00 0.00 0.00 Page 2 of 3 Original Gross Commitments Fiscal IFC IFC Parti- Held by Held by Undisb. incl. Year Obligor Type ofBusiness Loan Equity cipants Totals IFC Participants Participants 1996 P.T. Lantai Keramik Mas Cement and Construction Materials 25.00 6.22 81.00 112.22 31.22 81.00 72.22 1996 P.T. Santika Hotels and Tourism 14.00 0.00 0.00 14.00 14.00 0.00 14.00 1996 P.T. South Pacific Viscose Textiles 25.00 0.00 35.00 60.00 25.00 35.00 0.00 Total gross commitments b/ 60320 149.15 62.32 118A11 Less cancellations, terminations, repayment & sales 222.0 12h3 111-7 35.9L Total commitment, now held c/ 32.0 131.22 54A. 1Q2.84 11239 548.45 138.62 Original Gross Commitments Fiscal IFC IFC Parti- Held by Held by Undisb. incl. Year Obligor Type of Business Loan Equity cipants Totals IFC Participants Participants p Pending Commitments P.T. Indo-Rama Synthetics Textiles 0.00 2.50 0.00 2.50 P.T. Panin Overseas Finance Financial Services 6.00 0.00 8.00 14.00 PRAMINDO 25.00 33.18 300.00 358.18 PT ASIANAGRO 40.00 0.00 40.00 80.00 PT GLENEAGLES 8.30 3.60 13.90 25.80 Total pending commitments 79.30 39.28 361.90 480.48 Total commitments held and pending commitments 458.90 171.07 910.35 1.540.32 Total undisbursed commitments 41.35 12.87 84.40 138.62 a/ Investments which have been fully cancelled, terminated, written off, sold, redeemed or repaid. b/ Gross commitments consist of approved and signed projects. c/ Held commitments consist of disbursed and undisbursed investment. Page 3 of 3 - 19 - Schedule E P. 1 of 2 Indonesia at a glance Lower- POVERTY and SOCIAL East middle- - - Indonesa Asia Income Development diamond' Population mid-1995 (milHons) 193.3 1,709 1,154 GNP per capita 1995 (US$) 980 830 1,700 life pctncy GNP 1995 (bilHons USS) 190.1 1,418 1,962 Average annual growth, 1990-95 Population (%) 1.6 1.3 1.4 Labor force (%) 2.5 1.4 1.8 GNP Gross per . -- primary Most recent estimate (latest year available since 1989) capita enrollment Poverty: headoount index (% of population) .. Urban population (% of total population) 34 31 56 Life expectancy at birth (years) 64 68 67 Infant mortality (per 1,000 "e birhs) 51 36 36 Access to safe water Child malnutrition (% of children under 5) 39 17 Access to safe water (% ofpopulafion) 6s 77 78 Illiteracy (% of population age 15+) 16 17 .. Gross primary enrollment (% of school-age population) 114 117 104 - Indonesia Male 116 120 105 Lower-niddle-income group Female 112 116 101 KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1975 1986 1994 1995 EconomIc ratios* GDP (billions USS) 32.1 87.2 175.5 198.1 Gross domestic investment/GDP 23.7 26.2 30.1 31.5 Openness of economy Exports of goods and non-factor services/GDP 23.2 22.6 25.8 25.5 Gross domestic savings/GDP 25.9 29.1 31.5 31.8 Gross national savings/GDP .. 24.2 27.6 28.2 Current account balance/GDP -3.5 -2.2 -2.0 -3.5 Interest payments/GDP 1.0 2.3 2.5 2.4 Savings Investment Total debt/GDP 35.8 42.1 55.0 53.5 Total debt service/exports 15.1 28.8 30.0 31.1 Present value of debt/GDP .. .. 48.0 .. Present value of debtlexports .. .. 170.8 Indebtedness 1975-84 1986-96 1994 1396 1996-44 (average annual growth) - Indonesia GDP 7.2 7.1 7.5 8.1 8.0 GNP per capita 4.5 5.5 5.4 6.4 6.2 Lower-middle-income group Exports of goods and nfs -0.6 7.8 7.7 7.2 11.1 STRUCTURE of the ECONOMY (% of GP)1994 19[6 Growth rates of output and investment (%) Agriculture 30.2 23.2 17.4 17.2 20 Industry 33.5 35.9 40.7 41.5 1 Manufacturing 9.8 16.0 23.5 24.3 in Services 36.3 40.9 41.9 41.3 Private consumption 65.1 59.1 60.2 59.8 89 30 91 92 93 94 S General government consumption 9.0 11.8 8.2 8.2 - GDI -- GDP Imports of goods and non-factor services 21.0 19.8 24.3 24.8 1975-84 1985-96 1994 1996 (average annual growth) Growth rates of exports and Imports (%) Agriculture 4.3 3.4 0.5 4.0 3 Industry 7.1 9.4 11.2 10.3 Manufacturing 14.4 10.9 12.5 11.1 20 Services 9.5 8.1 7.1 7.4 Private consumption 9.1 6.5 7.7 9.9 General government consumption 11.4 4.8 2.3 3.4 - _ Gross domestic investment 14.5 9.6 12.2 12.5 s so 01 53 s3 s4 s imports of goods and non-factor services 9.9 7.8 12.7 15.3 Gross national product 6.7 8.0 7.3 8.1 Expoft Impons Note: 1995 data are preliminary estimates. - The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will be incomplete. - 20 - Schedule E P. 2 of 2 Indonesia PRICES and GOVERNMENT FINANCE 1976 1985 1994 1995 Domestic prices Inflation I%) (% change) Consumer prices 19.1 4.4 96 9.0 Implicit GDP deflator 11.5 4.3 6.0 6.0 Government finance a/ (% of GDP) 0 Current revenue .. 19.2 15.9 15.5 9o 9t 92 93 94 95 Current budget balance . 6.0 6.6 6.0 - GDP def CPI Overall surplus/deficit -3.2 0.3 0.8 TRADE a) (millions1975 1986 1994 199 Export and Import levels (mIll. US$) Total exports (fob) .. 18.823 42,050 46,019 so.ooo Fuel .. 12,804 10,344 9,749 Rubber . 714 1,316 1,554 Manufactures .. 2,287 20,272 23,636 30.000 Total imports (cif) . 14,056 37,736 44,477 20,0 Food .. 812 782 942 Fuel and energy .. 2,870 3.988 3,845 1o,ooo Capital goods .. 5,394 15,062 18,135 Export price index (1987=100) . 120 135 140 89 90 91 92 93 94 95 Import price index (1987=100) 85 89 90 Exports uImports Terms of trade (1987=100) . 141 153 155 BALANCE of PAYMENTS 1975 1986 1994 1996 (millions USS) Current account balance to GDP ratio (%) Exports of goods and non-factor services 6.981 19,371 46,899 51,644 . Imports of goods and non-factor services 6,775 17,840 43,392 51,052 9 90 91 92 93 94 95 Resource balance 206 1,531 3,507 592 94 Net factor income -1.342 -3,542 -6,994 -7,535 Net current transfers 0 88 0 0 Current account balance, before official transfers -1,135 -1.923 -3,488 -6,943 .3 Financing items (net) 284 962 4,743 3,827 Changes in net reserves 851 961 -1,255 3,116 -4 Memo: Reserves including gold (mill. US$) 592 5,794 12,290 13,869 Conversion rate (locaVUS$) 415.0 1,110.6 2,160.8 2.248.6 EXTERNAL DEBT and RESOURCE FLOWS 1975 1985 1994 1996 (millions US$) Composition of total debt, 1995 (mill. US$) Total debt outstanding and disbursed 11,507 36,709 96,500 106,080 A IBRD 57 3,590 12,008 12,503 G 12503 B IDA 318 844 776 756 18860 756 Total debt service 1,060 5,824 14,792 17.069 6D IBRD 2 384 2.156 1,875 6550 IDA 2 12 26 26 Composition of net resource flows Official grants 69 136 218 220 Official creditors 515 1,003 1,468 3,839 E Private creditors 1,749 154 1,627 3,535 7 33941 Foreign direct investment 476 310 2,109 4,500 Portfolio equity 0 0 3,672 3,327 World Bank program Commitments 311 1,068 1,538 1,312 A - IBRD E - Bilateral Disbursements 164 777 1,184 1,045 B - IDA D -Other multilateral F - Private Principal repayments 0 133 1,260 975 C-IMF G - Short-term Net flows 164 644 -76 70 Interest payments 3 262 922 927 Net transfers 160 382 -998 -857 International Economics Department a. Government finance and trade fiscal year (April to March). MAP SECTION  110°13' INDONESIA SUMATERA RAILWAY NETWORK ja v a S e a JAWA JAKARTA-BANDUNG CORRIDOR IMPROVEMENT COMPONENT Å LOCOMOTIVE UNIT EXCHANGE SYSTEM M rk SELECTED CIT ES ® NATIONAL CAPITAL RAILROADS - INTERNATIONAL BOUNDARIES (INSET) Bogor Purwakarfa Pada\arang Bandung Semarang Gedebage - 7°28728 7*281 ~ Yogyakarta 72' INDIAN OCEAN BRUNEI I_ýUPPINES Ij BUNEQ~ ~Pocd,c Ocean }A L AY SA 0 T 10 60 80 Kilometers DO SI0 20 40 60 Miles 5 l N D 0 N E S l A 10 nd.n o.e AU1TPAIA 11013' # IBRD 27874 950 i BRUN -PIUPPINES lN 0 - LAWA 0 India.INDo.NES MALAYSIA G RE! RMntapropa Nias INDIAN PadangrPnang Sea OCEAN Bcrngka Siberut Belitung INDONESIA RAILWAY NETWORK SUMATERA 5- Tanju Kmrang 0 SELECTED CmES ® NATK)NAL CAPITAL RALROADS - - INTERNATIONAL BOUNDARIES A WA 0 100 200 300 40 KILOMETERS " 0 100 200 300M MES APRIL 1996   IMAGING beport No: P- 6939 IND Type: MOP