Common use of Actions Taken Under the Program Clause in Contracts

Actions Taken Under the Program. The actions taken by the Borrower under the Program include the following: The Borrower, through the Coordinating Ministry for Economic Affairs, has developed standard operating procedures within the Indonesia National Single Window for regular private sector consultative meetings on Indonesia National Single Window implementation issues, and has started holding the meetings. The Borrower, through the Coordinating Ministry for Economic Affairs, has developed work plans for the phased implementation of a Single Sign On procedure for two key agencies of Indonesia National Single Window: BPOM and the Directorate General of Customs. The Borrower, through the Ministry of Trade, has issued a Ministerial Decree (No. 709/M-DAG/KEP/9/2011) establishing a team to formulate Non-Tariff Measures under the Ministry of Trade, with clear standard operating procedures for the issuance of Non-Tariff Measures. The Borrower has issued a Presidential Regulation (No. 32/2011), a Ministerial Regulation (No. PER-06/X.XXXX/08/2011) and two Ministerial Decrees (No. KEP-35//X.XXXX/08/2011 and No. KEP-36//X.XXXX/08/2011), that put in place institutional mechanisms to enhance Connectivity in Indonesia. The Borrower has based Ministry/Agency Budget and Work Plans (RKA-K/L) for 2012 on Government Regulation (No. 90/2010) as evidenced by: separate treatment of baselines and new initiatives in the budget submission document following new guidelines on RKA-K/L; a manual for line ministries on formulation of new initiatives, which enables a review of rationale and cost information; and consistency between Government Work Plan (RKP) and RKA-K/L regarding performance and budget information. The Borrower, through the LKPP, has completed the strategy and policy for human resources development for the procurement function in government agencies. The Borrower has issued a Presidential Instruction (No.4/2011) on government internal audit systems, which clarifies the roles and responsibilities in internal controls. The Borrower has issued a Government Regulation (No. 71/2010) on accrual-based accounting The Borrower, through the Directorate General of Treasury, has submitted a draft regulation to the Minister of Finance detailing accounting policies and chart of accounts. The Borrower, through the National Team, has instructed agencies implementing Cluster 1 poverty programs to use the Unified Database. The Borrower’s National Team Executive Secretariat working group has submitted a policy note on cost scenarios for health insurance for the poor (Jamkesmas) and a proposed health management information system to the chair of the National Team.

Actions Taken Under the Program. The actions taken by the Borrower under the Program include the following: : A. The Borrower, through the Coordinating Ministry for Economic AffairsRENIEC, has developed standard operating procedures within issued official letter (Oficio) No. 000057-2009/JNA/RENIEC, signed by its national head and dated February 9, 2009, accompanied by a sample birth certificate, certifying that all birth certificates include a national identity code (Código Único de Identificación - CUI ), as mandated by RENIEC’s Resolution No. 397-2006-JEF/RENIEC, dated May 26, 2006. B. The Borrower has taken the Indonesia following actions to establish result-based management and increase transparency and civil society vigilance in the budget process: Has begun publication on MEF’s Transparency Portal of the Borrower’s adjusted budget, as mandated by Sections 83.2 and 83.3 of Borrower’s Law No. 29289 (Ley de Presupuesto 2009) of December 11, 2008, as evidenced by official letter (Oficio) from MEF’s National Single Window Budget Director dated February 12, 2009, accompanied by a screenshot of MEF’s Transparency Portal showing the publication of said adjusted budget. Performance-based budgeting goals have been defined for regular private sector consultative meetings the Borrower’s education, health, nutrition and identity programs, as mandated by the Borrower’s Law No. 28411 (Ley General del Sistema Nacional de Presupuesto) of December 8, 2004, as evidenced by the inclusion of said budgeting goals in Borrower’s Law No. 29289 (Ley de Presupuesto 2009) of December 11, 2008. Has published on Indonesia National Single Window implementation issuesMEF’s Transparency Portal, budget execution and has started holding physical data for 31 outputs of Strategic Programs for 2008, as evidenced by Memorandum No. 068-2009-EF/76.01 from MEF’s Budget Director, dated February 12, 2009, accompanied by a screenshot from MEF’s Transparency Portal website showing the meetings. publication, as well as a copy of an accumulative report of the advances of the physical and financial implications of the Strategic Programs, as said report was published on MEF’s Transparency Portal on January 2009. C. The Borrower, through the Coordinating Ministry for Economic AffairsMINEDU, has developed work plans issued official letter (Oficio) No. 010-2009-ME/SPE/UMC, signed by the Director of its Quality Management office, and dated February 6, 2009, certifying that the second grade universal standard test was repeated during the years 2007 and 2008, and that the coverage of the test corresponding to 2007 was expanded to cover 91% of the Borrower’s schools and 80% of the students, accompanied by a detailed report of the outcome for the phased implementation of a Single Sign On procedure for two key agencies of Indonesia National Single Window: BPOM and the Directorate General of Customs. 2007 test. D. The Borrower, through the Ministry of TradeMINSA, has has: (a) issued a Ministerial Decree official letter (Oficio) No. 7098367/2008/M-DAGDGSP/KEP/9/2011MINSA, signed by its General Director of health services, and dated December 23, 2008, establishing the goals for institutional births for each health Budget Executing Unit; and (b) establishing presented a team to formulate Non-Tariff Measures under cumulative report, published on MEF’s Transparency Portal on January 2009, of the Ministry of Tradephysical and financial advances in institutional birth services, with clear standard operating procedures for respect to the issuance obligation of Non-Tariff Measures. The Borrower has issued a Presidential Regulation (No. 32/2011), a Ministerial Regulation (No. PER-06/X.XXXX/08/2011) and two Ministerial Decrees (No. KEP-35//X.XXXX/08/2011 and No. KEP-36//X.XXXX/08/2011), that put in place institutional mechanisms MEF to enhance Connectivity in Indonesia. The Borrower has based Ministry/Agency Budget and Work Plans (RKA-K/L) for 2012 publish quarterly updates on Government Regulation (No. 90/2010) as evidenced by: separate treatment of baselines and new initiatives in the budget submission document following new guidelines on RKA-K/L; a manual for line ministries on formulation of new initiatives, which enables a review of rationale and cost information; and consistency between Government Work Plan (RKP) and RKA-K/L MEF’s Transparency Portal regarding performance and budget information. compliance with such goals. E. The Borrower, through the LKPPSIS, has completed the strategy and policy for human resources development for the procurement function in government agencies. The Borrower has issued a Presidential Instruction (No.4/2011) on government internal audit systems, which clarifies the roles and responsibilities in internal controls. The Borrower has issued a Government Regulation (official letter No. 71/2010) on accrual228-based accounting 2009-SIS-J, signed by its head of the integral health insurance system, and dated February 12, 2009, reporting SIS’ budget assignment execution, as well as certifying the implementation of SIS’ health insurance expansion plans for years 2006, 2007 and 2008. F. The Borrower, through MINSA, has: (a) issued official letter No. 1220-2008-XX-XXXXX/INS, signed by the Directorate General Director of Treasurythe Borrower’s national nutrition and food institute, has submitted and dated December 24, 2008, establishing goals for child growth and development consultations for each regional health directorate (Dirección Regional de Salud - DIRESA); and (b) presented a draft regulation cumulative report, published on MEF’s Transparency Portal on January 2009, of the physical and financial advances in child growth and development services, with respect to the Minister obligation of Finance detailing accounting policies and chart of accounts. The Borrower, through the National Team, has instructed agencies implementing Cluster 1 poverty programs MEF to use the Unified Database. The Borrowerpublish quarterly updates on MEF’s National Team Executive Secretariat working group has submitted a policy note on cost scenarios for health insurance for the poor (Jamkesmas) and a proposed health management information system to the chair of the National TeamTransparency Portal regarding compliance with such goals.

Actions Taken Under the Program. The actions taken Borrower has maintained the proposed 2010 APBN allocation for national infrastructure of at least thirty (30%) over the 2007 level. (President’s budget address to Parliament August 3, 2009) The Borrower has published on the PLN Website: (i) the breakdown of the 2008 PLN PSO by region and consumer category; and (ii) a forward three (3) year PLN PSO plan based upon assumptions and a model shared and agreed by MoEMR, MoF, MoSOE and PLN. The Borrower has defined a revised program structure, objectives and outputs for DGH. (DGH/BAPPENAS exchange of letters nos. 4705/Dt.8.2/08/2009 and PR.01.02/BP.09/1066/2009) The Borrower has approved guidelines for outcome-based fiscal incentives for local governments to expand piped water connections for poor households. (BAPPENAS/MOF/MPW Guidelines of Water Fund Management FY2010-2014, August 19, 2009) The Borrower has developed draft amendments to Perpres 67 extending its application to projects of sub-national governments and ensuring the right to terminate PPP projects where financial close and first debt drawdown are not achieved within 12 months of contract signing. (Coordinating Minister for Economic Affairs Circular No. S-51/M/EKON/08.2009) The Borrower under has issued a Government Regulation establishing the Program include the following: Guarantee Fund. (Government Regulation No. 35/2009) The Borrower, through the Coordinating Ministry for Economic AffairsMoF, has developed standard operating procedures within mobilized finance for the Indonesia National Single Window for regular private sector consultative meetings on Indonesia National Single Window Infrastructure Financing Facility. (Founders Agreement, dated June 30, 2009) The Borrower has satisfactorily implemented the LWG’s Action Plan. (BPN Circular No. 396/ND/DII/VIII/2009) The Borrower has introduced into the parliamentary process legislative amendments to improve the implementation issues, and has started holding enforceability of the meetingsXXXXX process. The Borrower, through the Coordinating Ministry for Economic Affairs, has developed work plans for the phased implementation of a Single Sign On procedure for two key agencies of Indonesia National Single Window: BPOM and the Directorate General of Customs. (Parliament Notice LG.01.03/3613/DPR RI/VI/2009) The Borrower, through the Ministry of TradePublic Works, has issued established a Ministerial Decree procurement taskforce in DGH staffed, funded and mandated to provide support to procurement committees in terms of advice, capacity building, review and problem resolution. (DGH SK No. 70936/M-DAGKPTS/KEP/9/2011) establishing a team to formulate Non-Tariff Measures under the Ministry of Trade, with clear standard operating procedures for the issuance of Non-Tariff Measures. The Borrower has issued a Presidential Regulation (No. 32/2011Db/2009), a Ministerial Regulation (No. PER-06/X.XXXX/08/2011) and two Ministerial Decrees (No. KEP-35//X.XXXX/08/2011 and No. KEP-36//X.XXXX/08/2011), that put in place institutional mechanisms to enhance Connectivity in Indonesia. The Borrower has based Ministry/Agency Budget and Work Plans (RKA-K/L) for 2012 on Government Regulation (No. 90/2010) as evidenced by: separate treatment of baselines and new initiatives in the budget submission document following new guidelines on RKA-K/L; a manual for line ministries on formulation of new initiatives, which enables a review of rationale and cost information; and consistency between Government Work Plan (RKP) and RKA-K/L regarding performance and budget information. The Borrower, through the LKPP, has completed the strategy and policy for human resources development for the procurement function in government agencies. The Borrower has issued a Presidential Instruction (No.4/2011) on government internal audit systems, which clarifies the roles and responsibilities in internal controls. The Borrower has issued a Government Regulation (No. 71/2010) on accrual-based accounting The Borrower, through the Directorate General of Treasury, has submitted a draft regulation to the Minister of Finance detailing accounting policies and chart of accounts. The Borrower, through the National Team, has instructed agencies implementing Cluster 1 poverty programs to use the Unified Database. The Borrower’s National Team Executive Secretariat working group has submitted a policy note on cost scenarios for health insurance for the poor (Jamkesmas) and a proposed health management information system to the chair of the National Team.

Actions Taken Under the Program. The actions taken by the Borrower under the Program include the following: The Borrower, through the Coordinating Ministry for Economic Affairsthe Economy has completed an inter-ministerial review and convened a ministerial-level plenary session (Letter No. UND-95/SES.M.EKON/06/2009) which has reviewed and endorsed the draft of a new regulation on the Investment Negative List that updates sector and investment restrictions, and clarifies the status of publicly listed companies, foreign equity limits for direct investment and grandfathering. The President has developed standard operating procedures within issued implementing regulations for the Indonesia 2007 Investment Law, on one stop shops (PTSP) (Presidential Regulation No.27), simplifying the steps required to set up a domestic or foreign company and the role of the central government relative to provincial and local governments in approving or licensing domestic or foreign direct investment. The National Single Window for regular private sector consultative meetings on Indonesia National Single Window implementation issues, and has started holding the meetings. The Borrower, through the Coordinating Ministry for Economic Affairs, has developed work plans for the phased implementation of a Single Sign On procedure for two key agencies of Indonesia National Single Window: BPOM and the Directorate General of Customs. The Borrower, through the Ministry of Trade, has issued a Ministerial Decree (No. 709/M-DAG/KEP/9/2011) establishing a technical team to formulate Non-Tariff Measures under the Ministry of Trade, with clear standard operating procedures for the issuance of Non-Tariff Measures. The Borrower has issued a Presidential Regulation (No. 32/2011), a Ministerial Regulation (No. PER-06/X.XXXX/08/2011) and two Ministerial Decrees (No. KEP-35//X.XXXX/08/2011 and No. KEP-36//X.XXXX/08/2011), that put in place institutional mechanisms to enhance Connectivity in Indonesia. The Borrower has based Ministry/Agency Budget and Work Plans (RKA-K/L) for 2012 on Government Regulation (No. 90/2010) as evidenced by: separate treatment of baselines and new initiatives in the budget submission document following new guidelines on RKA-K/L; a manual for line ministries on formulation of new initiatives, which enables a review of rationale and cost information; and consistency between Government Work Plan (RKP) and RKA-K/L regarding performance and budget information. The Borrower, through the LKPP, has completed the strategy and policy for human resources development for the procurement function in government agencies. The Borrower has issued a Presidential Instruction (No.4/2011) on government internal audit systems, which clarifies the roles and responsibilities in internal controls. The Borrower has issued a Government Regulation (No. 71/2010) on accrual-based accounting The Borrower, through the Directorate General of Treasury, has submitted a draft regulation proposal (S-02/SA.IV.M.EKON/NSW/08/2009) for the operational model for the National Single Window to the Coordinating Minister for the Economy for inter-ministerial discussion and decision. The DG Tax has issued a decree (Decree No. 47) allowing recognition of digital signatures for individual taxpayer registration and for filing personal income tax returns. The DG Tax has issued a decree (PER-39/PJ) implementing new simplified standard formats capturing key financial indicators and annual tax returns from all types of businesses, and eliminating the need for taxpayers to submit separate financial statements. The Minister of Finance detailing accounting policies has issued a regulation (PMK No.222/2008) on credit guarantee and chart of accountsre-guarantee companies. The BorrowerMinistry of Finance and BAPPENAS have developed a revised program structure for RPJMN 2010-2014 with measurable results and targets, through draft corresponding key performance indicators for all budget holders and finalized requisite regulations and formats (Decree No. 014/M.PPN/06/2009). The DG Treasury has implemented next day daily sweep of revenue accounts into the Treasury Single Account for all commercial banks. The DG Treasury has signed the contract for the new treasury and budget system (SPAN) (Contract Number 02/GFMRAP/A.3/CON/2009). The National TeamPublic Procurement Office (LKPP) has submitted (Letter No. 03/D.1/VIII/2009) to line ministries for inter-departmental review a revised Keppres No. 80/2003 on procurement, mandating the use of standard bidding documents. BAPPENAS has instructed agencies implementing Cluster 1 poverty programs continued (Reference No. 4829/D.III/08/2009) to use poverty targeting in determining the Unified Database. The Borrower’s National Team Executive Secretariat working group has submitted a policy note on cost scenarios for health insurance size of the sub-district community block grants under PNPM and increased the average size of the block grant for the poor (Jamkesmas) and a proposed health management information system to the chair of the National Teampoorest sub-districts.