World Bank Document

RESTRICTED Report No. EAP -1 9a Public Disclosure Authorized This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized

THE INDONESIA ECONOMY:

DEVELOPMENT TRENDS AND FOREIGN AID REQUIREMENTS,

1970 - 1972

(in three volumes) Public Disclosure Authorized VOLUME II

REVIEW OF PROJECT AID COMMITMENTS AND 1971/72 P AND TECHNICAL ASSISTANCE LISTS

Cn >< -I 4t C November~27 197~ ~ ~ ~~~. C

November 27, 1970I zo

0 Z Public Disclosure Authorized cn

~~Asia & Pacific Department O I. K 6 C) CURRENCY EQUIVALENTS

U.S. $1.00 Rp.,378

1 Rupiah = U.S. $0.003

1 million Rupiahs - U.S. $29646 TABLE OF CONTENTS

Page No.

Review. of Project Aid Commitment,s 1 - 2

Table II-1 : Commitm(nts obtained in 1968 and 1969 3 - 5

Tabl.e II-2 : Status cf 1970/71 project list 6 - 8

Annex II-1 : P-oject Proposals fI ,r 1971/72

a) Summary of 1971/7;' Project Aid Proposals 9

b) Project Proposals for 1971/72 10 - 16

c) Summary Descripti.nns of 1971/72 Project P.-oposals 17 - 3h

Annex II-2: Pre-Investment Surve.ys and Te.hnical Assistance for 1971/72 35 - 56

VOLUME II

REVIEW OF PROJECT AID COMMITMENTS

AND

1971/72 PROJECT AND TECHNICAL ASSISTANCE LISTS

1. Lists of projects which the Government of Indonesia plans to undertake, subject in some cases to further study as well as to the availability of financial aid, have been presented to the IGGI in support of its aid requests for the years 1968, 1969 and 1970/71 (15 months). The amounts of project aid requested in the three periods were $75 million for 1968, $180 million for 1969, and $260 million for 1970/71, or a total of $515 million.

2, Specific project aid commitments received in the same period, including commitments expected in the remaining part of 1970/71, amount to $545 million. For the most part these commitments have been made for projects which were included in the lists presented for consideration, but some were for projects identified and prepared subsequent to original presentation of the periodically completed lists. A few of the projects presented were subsequently dropped following more detailed study. A few were undertaken without benefit of project aid, and some are under more detailed study at this time. The status of the projects presented in the lists for the three periods is indicated in the attached tabulations.

3. Specific project aid commitments (defined as signed project loan agreements or their equivalent) amounted to $68 million in 1968, $221 million in 1969 (including PUSRI), and are expected to total $246 million in 1970/71. These figures are detailed in Table 3.9 of the Statistical Appen- dix (Volume I).

4. The 1971/72 list attached includes 98 projects with an aggregate estimated foreign exchange cost of $490 million. Of these projects 37 with an estimated cost of $220 million represent projects which were presented for consideration in earlier years or continuations of such projects, but commitments are not expected to have been made for those by March 31, 1971.

5. In the list presented here for consideration in 1971/72, projects are classified in three categories in the effort to distinguish more clearly their preparation status.

The three categories are:

A: Projects for which the necessary feasibility studies have been completed, project feasibility has been established, and project plans are at a stage which permits commitment; - 2 -

B: Projects for which studies are in progress, feasibility of one or another alternative form of the project is probable, and plans are expected to be at a stage permit- ting commitments within 1971/72;

C: Projects identified and considered of sufficient probable merit to justify feasibility study and completion of project preparation to stage of commitment within 1971/72 possible if necessary studies are undertaken promptly and confirm preliminary judgement of project merit. Many of these required studies are included in the list of technical assistance requests.

6. The 1971/72 list of projects and technical assistance for consideration follows. It is accompanied by a very brief description of each of the projects listed. -3- Table II - 1 Commitments Obtained in 1968 and 1969

Project Presented Commitment in .in List of 1968 Name of Project 1968 9 (in '000 USS) Country

1968 list (commitment obtained in 1968)

Rail for track rehabilitation I X 1,140 1,140 Australia Telecommunication, navigational aid, AFIN X X 300 155 Australia Navigational aids, lighthouse X X 1,985 - France Power Distribution network (Central Java) X X 2,600 2,732 W. Germany Buses for city transportation (Djakarta) x X 500 - W. Germany Diesel locomotives X X 2,500 2,232 W. Germany Telecommunication, navigational aid, for aviation X X 2,200 2,732 W. Germany Telephone exchange (Semarang) X Si 2,200 - W. Germany Karang Kates dam X X 11,136 - Japan Kali Konto dam X X 3,043 - Japan Riam Kanan dam X X 5,792 - Japan Caustic soda plant, Waru I - 1,250 - Japan Gowa paper mill X - 531 - Japan Pematang Siantar paper mill X - 277 - Japan Tandjung Priok steam power station X X 12,652 - Japan Marine telecommunications x X 1,279 1,100 Japan Microwave Bandung-Surabaja-Denpasar X X 2,416 1,450 Japan Rehabilitation of sugarmilk X X 940 2,211 Netherlands Rehabilitation of tin dredgers X X 820 2'500 Netherlands Isolatedpower distribution networks X X 1,540 2,500 Netherlands Asphalt bulk storage & distribution equipment X - 940 - Netherlands Marine telecommunications X X 430 1,250 Netherlands Rehabilitation of docks X X 320 2,153 Netherlands New aircraft X - 520 6,000 Netherlands City buses & spare patts X X 516 - U.K.

Electrical equipment for PLN X X 333 - U.K.

Non-listed nrojects. 1968

Postal service - - 130 - Australia Technical assistance for projects - - 300 350 Australia Telephone cable - - 900 - Australia Water supply - Makassar - - 2,269 750 France Fuel tank for tin smelter - - 100 - Netherlands Dept. of Health laboratories - - 89 _ U.K. Rehabilitation of irrigation systems - - 5,000 - IDA Railway signaling equipment - - 500 500 W. Germany

1969 list (commitment obtained in 1969)

Djakarta telephone cable - X - 400 Australia Runway lights, airports - x - 800 Belgium Spare parts for airplanes X X - 800 Canada 1 Inol.ted power (':stribution networks (out- X - - 80 Denmark Wul:jl Java paqer transmission side Java) - X - 3,750 France Project Presented Commitment in in List of 1968 Namn of Project 1968 2 (in '000 US3) Country

1969 list (cont'd)

Telephone exchange (Surabaja) X X - 2,732 W. Germany Brantas Delta irrigation X x - 1,300 Japan Kali Parong irrigation X X - 2,720 Japan X - 890 Japan Navigational aids, buoys - ( ( 500 France Capital supplies for textile industry x - - 760 Japan Riaw YUanan power station X X - 4,800 Jfpan Kali Konto power station X X - 1,000 Japan Karan; Kates power station X x - 10,700 Japan Djratunseluna irrigation rehabilitation - x - 1,250 Netherlands Rehabilitation of dredgers X X - 160 Netherlands Rehabilitation of government vessels X x - 750 Netherlands Dredg'Ing of ports X x - 2,000 Netherlands Djakarta flood control - x - 1,000 Netherlands Medan telephone exchange - X - 1,445 Netherlands Long---:1tance transmission, HF - x - 1,055 Netherlands Gresik cement plant I x - 6,300 U.S.A. Rehab: A-tation of PNP V and VII - X - 16,000 IDA IDA Djakarta power distribution network - x - 15,000 Rehabilitation of Sawit Sebarang estate - X - 2,400 ADB Tadjum irrigation system rehabilitation - I - 990 ADB Pusri Fertilizer Expansion Project X X - 68,000 IDA/ADB/US/Japan Non-listcd projects. 1969

Water :,upply - Bogor - - - 1,800 Australia Textbooks (paper) - - - 200 Canada Grain drying and storage - - - 606 Denmark Padan6 cement plant - - - 2,470 Denmark Capital goods - - - 2,732 W. Germany Industrial finance - - - 2,732 W. Germany Teleoommunications (SLLD) - - - 1,000 France BATAN - - - 300 France Technieal Assistance - - - 2,000 IDA Rehabilitation of ferry services - - - 170 Netherlands Rehabilitation of ports - - - 830 Netherlands Crumb rubber plants - - - 960 U.K. Road rehabilitation - - - 28,000 IDA Survey Asahan Project - - - 800 Japan Tjireboon-Tjik&mpok railway track rehab. - - - 2,300 Japan

Total 67,448 225.037 -5-

Projects for Which No Commitment was obtained by The Ehd of 1969

1968 list Status

2 Tjimanuk River Basin development under study (BTA-1) 18 Tonassa cement project canoelled 20 Palembang tire project cancelled 21 Rehabilitation & replacement of silt barges for Madura cancelled

1969 list

6 Tidal irrigation under study (ATA-4) 7 Dredging of river mouths under study 9 Hydraulic Institute under consideration by UNDP 11 Volcanic debris control T.A. (BTA-12) 15 Vehicles & boats for extension service cancelled 18 Rehabilitation of small holder rubber under study 32 Tonsea Lama hydro station cancelled 40 Gas turbine plant for Djakarta cancelled 47 Railway-- ferry service under study Railway - data processing cancelled 48 Roads - foreign contractors replaced by IDA credit 52 Telecommunications - motor vehicles cancelled Table 11-2

(In millions of dollars)

Cormitjments Expected Before Commitnents Obtained as of 31/10/70 31/3/1971 No. Sector and Prolect Title blource 3Azunt Date Source Remarks

Agriculture -24.3

A-1 Plrp Irrigation No coomitnent expected in 1970/71- A-2 Groundwater for Livestock Australia Combination proposed with A-12 and ATA-10- A-3 Trna/Skipjack Fishirg IDA 3.5 JuAS970 A-4 RehFbilitation of PNP IV (Rubber) IDA Junc i970 Japaa Japanese commitmcnt expected for PM' I. A _ _ _- I ( il P l ______I A1 7 .0 ~ 1 7 ______1-5 R ehbilitstion of P.:PVI (Oil Pal _ _ IDA 7 June ___70 A-6 Behabili tation of P:IPYiIfT eaY Netherlands 2.0 Oct. 1970 A-7 Seeds Inis try Development IDA commitment expected in 1971/72. A-8 Rehabilitation of Sugar Factories Netherlands 1.7 Sept.'1970 Balance of project proposed to France. A-9 New Sufar Factories No commitment expected in 1971/72. A-10 Rehroilitation of P'P XII and XIII __ _ _ _ IDE commitment expocted in 1971/72. A-T! Liveito:k Dev6lo,me:,t, S'L..:-htez- -ourei Belgium Com-2ieterent date <:certsd a. - A-12 Live3tock Devel3opent, R=--,h Cattle '-astern Islanda Study being conducted by New Zealand Tech. As- A-13 Irprrve=ent, Rehnab. of State Fishery Enterprises No comaitment expected in 1970/71. A-14 Rehabilitation of Addit'l Cov't Rubber Estates Studies being undertaken by ID1. A-15 Developaent of Pince and Agathis Plantationes __ Canada to study the project. A-16 Development of Teak Wood Exploitation See ATA-14, carried out by ADB. A-17 AEricultursl Credit through Banking System No commitment expected in 1970/71. A-18 Rice Procesaing Plant U.K. 0.1 Oot. 1970 Pilot rice mill only. See A1A-7.

Irriration 0'

B-1 Rehabilitation of Irrigation Systemas (a) Pomeli Tjomal ) (b) Tjiuijung IDA 14.5 Oct. 1970 to) Sadang .(d D atiluhur _ IDA 18.5 June. 1970 B-2 Rehabilitation of Irrigation Syateas: (a) 3r6ntas Delta Japan 1.3 (b) Kali Porcng Japan (c) Gamrbarsari - Passngrahan 1DBD. (d) Pekslen Sanpan No commitment expected in 1970/71. B-3 Teluk Lade Irrigation Study conducted by USAID. B-4 Sempor Dam and Irrigation ADD B-5 River Dredging, Flood Control Included under new studies, aee BTA-20. B-6 Croundwater Exploration for Irrigation Study financed by IDA technical assistance. B-7 _ Rehabilitation of Drstunselun _ Netherlands B-8 Progo River Project Study financed by U.X..' B-9 River Training. Flood Controls (a) Solo No comnitment expeoted in 1970/71. (b) Tjitanduj U.S.A. Feasibility etudy in 1971/72.

Mining

C-1 Rehsbilitation ot MbAtUmg Power Plant Netherlands 0.9 Commitment in 1970/71 for part of project. C-2 Rehabilitation of Ranggar Power Plant No commitrant expected in 1970/71. C-3 Electric Transmission and Distribution Japan C-4 Rehabilitation of Dredgers Commitment from Netherlands after 1970/71. C-5 Electric Xines ______- _ _.No.commitment expected_in l970,71. _ _ _ C-o Dock Facilities Bo commitsent expected in 1970/71. Status of IV7OI71 Upmiat Lint (soatsd) (la miLIonis of dollars) Commi tments Expec ted Before Commitments Obtained 31/I0/70 31/3/1971 No. Sector and ProJect Title Azmur AnRl AS Source Remarks

Indus try 6.5

D-1 Expansion of Leties Paper Kill Germany D-2 Rehabilitation of Padalarang Paper Kill Japan 0.3 D-3 Rehabilitation of Spinning Kills Japan 1.1 U.K. U.K. intends to finance part of project. D-4 Expansion of Spinning Kills U.K. Survey done by U.K. (see DTA-81 Detailed atady UK!). D-5 Foundry, Surabaja and Djakarta G____ermany ____33Jama~Jaaeetdyngi orDkra.______0-~6 Ariculturel Equipment Manufacturing Germany 1.8 D-7 Takengon Paper Kill See DTA-3/4. No commitment expected. D-8 Rehabilitation of Blabe.k Paper Mill No commitment expected in 1970/71. D-9 Industrial Es tates See DTA-1. Commitment expected in 1971172. D-10 Rehabilitation of Salt Industry See DTA-9. No commitment expected

Power 28_

3-1 West Java Transmission and Distribut ion Zi France 3.8 U.S.A. 3-2 Central Java Transmission.and Distribution Li. U.S.A. 16.8 3-3 East Java Transmission and'Distribution Li Japan 7.0 E-4 Medan Generator, Transmission and Distribution U.S.A. Comzitment expected of 313.8 million. E-5 Isolated Distribution and Diesel Generat~ior Netherlands 1.0 _ Some areas selected for Japanese study!..______- 3-6- Kicro-Hydro Power Plants' U.K. Commitment ex E-7 Rehabilitation of City Gas Works No commitment expected in 1970/71. 3-8 Garung Hydro Power Plant No commitment expected in 1970/71. 3-9 Central Java Power Plant, Semerang U.S. study for E-2 includes this project. 3-10 Eatang A.gam Hydro Power Plant ______ADD commitment expected in 1971172.a Transportation L

7-1 Engineering Design, Djakarta-Bogor Righway U.S.A. 0.6 F-2 Road Rehabilitation, North Sumatra. Centrol Java Japan 2.2 F-3 Rehabilitation of River Dredgers Gervman Commitment expected for part of project. 1-4 Djakarta-Bogor Highway Construction U.S. commitment expected in 1971172. F-5 B alikpapan-Samarinda Highway Construction ____Japan 0.9 ______F--r6 -Railways - 5 Diesel Locomotives Germany 1.0 -______1-7 Bulk Unloading Equipment br 3 Ports Project is withdrawn for this time. 1-8 Rehabilitation of Navigational Aide Japan Small initial commLitment from Japan. 1-9 Replacement of Sea Dredgers Netb./u.s. Study by Netherlands completed. 1-10 Inland Waterway Transportation _____ Study by Belgium committed._ 1-11 Two Aircraft for Feeder Lin. -_____ Ai NvigationLalAi Aide (not listed in 1970/71) Germany/U-.K 3.3 Engineering Design, Telukbetung-Sumur Highway ______Study financed_with New ee,rlTChch..Aa___ _ -_

Telecom:munications 51

G-1 Sumatra Microwave System IDA/Australia 14.1 G-2 lautern Extension of Microwave System Japan 4.0 G-3 Coemmaioation System Improvement Japan/Germany 7.7 Auntre/Neth.. Additional commitments of 33.7 million expected. StAtU_ of Ig7OI7l Prokspt Liat (e@nt'd) (In millions of dollars) Commitments ?xpected Before Cocmitments Obtained 31/10/70 31/3/1971 No. Sector and ProJect Title Source Amount Date Source Remarks

Develoss=enxt Finance Institutions in 1970/71. E-1 Development Loan Finance No oommitment expected

Other Sectors 1.

J-1 Water Supply ja) Djekarta Japan 1.3 bt Solo U (d Den_Pasar uatralia 0.3 J-2 Family Planning IDA ipeii97t/77 J-3 Secondary Technical Education

list. j Theee projects a* of a continuing natur of whick in ea*-C ruccessive year a now eeveent is inoluded in the projeot

a Commit2ents obtinee, for pzoJecto not contained in the 1970/71 project list.

Sources BAFPOkAS _9_ ANNEX II -- 1

Summary of 1971/72 Project Aid Proposals

(In millions of US dollars)

Foreign Exchange Cost of Projects According to Total Foreign Status of Preparation Exchange Cost (A) (B) (A + B)

Agriculture 18.0 62.6 80.6

Irrigation 4.0 15.7 19.7

Mining 5.2 4.0 9.2

Industry 2.6 19.8 22.6

Power 4.1 92.5 96.6

Transportation 90.1 45.8 135.9

Telecommunications 11.9 - 11.9

Development Finance Institutions - 20,0 20.0

Other Sectors 3.5 19.5 23.0

Total 139.6 279.9 419.5

Projects are classified into three categories according to the stages of the preparation, as follows :-

A category - Necessary studies completed and feasibility established.

B category - Studies underway and feaeibility not expected to be established as of March 1971.

C category - Essentiality of the project recognized and request being made for the feasibility study. -10- ANNEX II - 1

Pro.iect fropos;ls for 1571/72

Total Loc;_l Forci&n Cost Currsncy. hxchange US;'000 Cost Cust Sttztus tquiv. Rp ull. USj'000 (i) (2) (3) (4) .inriculturU

(1970/71 Proj_cts C-.rri.d For-.wrd)

A-l Pukp Irrigition C 630 65 430

A-2 Dsvclopunnt of Groundwattr for LivQtock C 385 20 330 k-7 Secds Industry Dvclopr.nt A 7,530 920 5,070

A-8 Roh,bilitation of Suger Factories 5,500 500 4,200

A-9 Duvolopionnt oI Tjot GirAk Sugar Est&t, A 6,700 2,000 1,700

A-10 Aehr:bilit,tion of PIp XII and PNP AIII (toa) A 20,000 3,600 9,000

A-ll Livostock D]Xvolop,c;nt, C150 S1.u4ihtcr F,ouscs;, 6ur,: bc j L. ~~~~~~~1,700 ~b 5DjukLrt;i C 500 A-12 Livestock Developncnt, IL-nch Cattlo, iast_rn Islilds B 10,000 1,900 5,000

A-14 Rehi.bilitition of .-ddition1 GovQrraint hubbur -nd Pailm Cil dstat.o B 30,000 5,700 15,000

A-15 Doveopmcnt of Pir.. .nd Agc this Pl:.nti.tion B 1,400

&'-16 Dovelopr_-nt n.nd Improvcr._nt of Teik dlood Lxploitation B 3,000

Lk-17 (1) h;qaipm_nt and lanag_munt lassistdfcc to Bank Rek-jat B 3,000 (2) Agricultur.l Cr.dit C 10,000 A-18 z{ice Processing Faciliti-s J 10,000 (Now Propos:ls)

A-21 Fish_ry DcvelooLcnt (Skipjack and shrimp) Soron., ^ambon, Tcgal B 7,000

A-22 Tunc. Fishdry Dovloga;nt, Kupang, Bcnoa Land Pn>d.ng B 10,000

L-23 Fizhury Dovolopm nt. Ri_.u C 1,500 ANEXJ - 1

(2) al (4 .t*ricultura.(cont'd)

L-24 Smallholder Rubbur Production B 4,000

L-25 Deli Tobacco Sprinklor- Irrigation (PiP Ix) A 660 60 500

A-26 Strongth,ning of agricultural axtension Sorvicus C 1,000 Total (8l,4055)'(2l,62C)-V 94,330

A catogory 17,970 B category 62,600 C category 13,760

Xrrigation

(1970/71 Projects Carried Forward)

B-2-(4) Pekalen 3ampean, a. Java B 20,000 3,800 10,000

B-3 Teluk Lada Irrigation, W. Java B 6,500 1,140 3,500

B-5 River Drodging-Flood Control (1) Sungai Jarapu, N. Sumatra B 1,660 (2) Other N. Suoatra C 3,000

B-6 Groundwater Lxplorc.tion for Irrigation A 3,400 160 3,000

B-8 Progo River Proj.ct, Central Java B 1,500 380 500

B-9 muorgency Flood Control Measuros, Solo Eivtr, E. Java B

(Now Proposals)

$-10 Djakarta, Flood Control A 1,000

B-ll Rohabilitation of Rivor Drt:dgurs C 230 100 200

Total ( (LLQ)2 21.200

Lt catogory 4,000 B catogory 15,660 C catugory 3,2W0

/ Parentheses denotes incomplete total figures. -12-

ANNEX II-1

(1) (2) (3) (4) MiniLng (1970/71 Projects Carried Fornard)

C-1 Rehabilitation of Idantung Power Plant A 1,040 50 890

C-2 Rehabilitationi of Mianggar., Power Plant A 600 30 500

C-4 Rehab. of Dredgers A 3,960 150 3,580 (1) K.K. Pring (460) (30) (380) 2) K.K. fdanunbing (1,100) (40) (l,Ooo) 3) K.K. Dendang (1,100o (40) (1,ooo) (4) K.K. Sumatra (1,300) (40) (1,200)

(New Proposals)

C-7 Modernization of ms. Pelatuk A 300 20 250

C-8 Iron Sand Project B 5,050 400 4,000

Total 10,950 650 9,220

A category 5,220 B category 4,000

Lnduztry

(1970/71 Projects Carried Forwvard)

D-3 Rehabilitation of Existing Spinning Plants 5,280 1,020 2,550 (1) Setjang Spinning Mill, Central Java B (620) 120) 300) (2) Tjipadung Lill, Bandung B (1,440) 280) 700) 3) IAakatex, Miakassar B (720) (140) (350) (4) Txin Tegal, Central Java B (2,500) (480) (1,200)

D-4 Dxpansion of Zxisting Spinning Plants B 10,450 930 8,000

D-8 Blabak Paper L¶ill Rehabi- litation, Central Java B 1,400 220 800

D-9 Industrial Estates B 12,300 2,000 7,000

(New Proposals)

D-li Expansioii of Benjuwanrgi Paper Mill B 1,750 110 1,460

D-12 Padalarang Paper Mill lxpansion, West Java A 3,600 310 2,800

D-13 P.N. Soda Wara Expansion, Surabaja C 960 80 750

Total 35,740 4,670 23,360 A category 2,800 B category 19,310 C category 750 -13-

ANNEX II - 1

() (2) (4L)

Pow%jr

(1970/71 Projects Cerriu.d ?urwr.rd)

L-1 *iest Java, nG,.~nr;.tion, TrzLas- iiission nnd Diistribution (1) ThurL,"l Pow;.r .'lait, Tjirubon B 21,500 5570 20,000 (2) Tr,s3mission _nd Distribution B 30,000 1,860 25,000

.-2 C.ntralC/ J&va, Generation, Transmission and distribution (1)'_ThQrr. lRowxor Plant, Lalibojo B 21,000 2,300 15,000

E_3 ;V.EsatJav,, Transaission and Distribution B 13,000 760 11,000 k-5 Isolatud ,roLs, Distribution and Diuscl G.nWrctors A 1,600 230 1,000

:-6 i4icro-Hydro .-ow:;r Pllant 1,250 230 640 t-7 Auht-bilit:tion of City Gas Distribution N.1tworrs for Yiodan, Djakartu, 6ea-r!ng C 2,400 720 500

(Ncw Proposc.ls)

1i-11 Pudzng, 4eot Sunatra Powor Plant t-nd Auh.b. of Tran3- nission and Diotribution B 6,000 380 5,000

E--12 Pal;nbv.nG, South zu= _tra Rah.b. of Transaisaion and Distribution B 4,800 300 4,000

£-13 honado DiLs,l Pow;r Plent, Improvau.nt oi Distribution B 5,000 570 3,500

1!-14 hiakassar R,.hab. of Distri- bution Systeii B 5,000 760 3,000

E_15 Ponti.inak, Kalimrantan, Poier Plant, RX,hab. of Distribution B 8,500 950 6,000

E-16 Bali, Pow..r fL.nt, Distriou- tion a_nd Transaission C 4,200 270 3,500

;-17 Karang 1&.tes Hydro Powur Unit 3 A 4,000 540 2,500

E-18 B.adjarcusin Powur Distributivn Systous C 4,500 380 3,500

TotllI 132.750 15%82 104.140

A ctogory 4,140 B catogory 92,500 C catugory 7,500

1 These projiects are proposali'for continued assistance-and represent - the second stage' of phased longer-term programs. ANNEX II - 1

Transportation

(1970/71 Projcects r-iod Foriard)

F-4 Dj,karta-3ogor Highway Construction a 24,500 1,600 20,OOQ

F-1l 'No Aircraft for F*cdcr- Lines C 1,300

(Nuw Proposc.ls)

F-12 Construction of 1ighways and Bridg_s A 28,370 900 26,000 (1) Sidjungdjung-Lubuklinggau Figh'ray Construction (192 k1), Cantral and South Sumatra (2) Bridgc Rsplacunmnt, South Sulawusi

F-13 North Sulawesi Road Rehabilitation 50 1,540

F-14 Rchabilit-.tion1 o. South Kalij .ntz;1 [%i0d Denckulu. roads B 5,000

F-15 Belawan-P6nang Perry A 1,500

F-16 Eighway Ferry and Connection *(92 ku), Lanpung (SumLtra) to 1Hedrak (W. Java) C 7,000

F-17 Construction of highway, North Sulawesi, .uiur&.ng- Duadulo B 24,400 5,30 k10,400

F-18 Rehabilit-tion of Diesel Locomotives A (1) 680 H.P.(6 loco) North Sumatra 150 (2) 340 H.P. and 680 H.P. (16 loco) C. Ja.va. 460 (3) 1500 a.P. (15i locc 120 (4) 1600 L.P. (24 loc., 800

F-19 Rohaobilitiation of Raiilway Track (1st st.) (1 Tjir.bon-1roj&. h )600 (2 Tjir.bon-B,.ndj3.r 600 3) Batur.,dja-P,±ndjang, S. Sux.x:traI B 2,300 (4) tteri5 tCrialo5 A 550 F-20 I%Adarniz"tion oi .ri,sht Cars Serius 120,0W0 (550 ccors) 1,500

F-21 Improvemnt of Pt.sstnger Coaches 700

F-22 Hz,ilbusL;s -nd 5pare Parts, Java (na six units A 1,000 (b six unitu 1,00ooo ANNEX II - 1

() (2) (3) (4) Transportation (cord d) F-23 Concrete Sleeger Production B 830 P-24 Railw;ay Ccmm. and Signaling Facilities, Java A 1,200 P-25 Rezlacement of Inter-island Fleet (lot phase) (a) design B 200 (c) construction C 23,000 F-26 Rehabilitation of Inter-island transport: a) Fleet Rehabilitation B 8,500 b) Doclyards, Repair Pacilities A 4,000 (c) Biro iKvasifikasi A 60 P-27 Rehabilitation of Ports: (a) Tandjurn Priok A 6,000 b) Surabajaa A 3,500 c) Tjilatjap A 4,000 d) Other harbors (Palembang, B 5,000 Tjirebon, Semarang, Belaxvar., Makassar, Bitung, Padang, &xidjerrnsin) F-28 Dxcdging Prograr: A 9,100 (a) Mlodernisati)n of trawler fleet (760 (b) Dredging *-orl: (2,000) (c) Equipment and spares for dredgers (1,785') (d) Equipment and instruments for dredging support (520) (e) Shallow draft trawvling dredges 2,000) P-) Contract Dredging 2,000) P-29 Rhabilitation ana 1,iodernization of Ocean going shipping, C _ F-30 Improvement of Inland hVaterways C P-31 Acquioition of SpDcialized Log Carriers (1st phase) C P-32 M-larine Coastal Comm. (lst phase) A 1,300 P-33 Rehab. of illarine NlaviGa- tional Aids A 3,500 P-34 Improvement of Airport3, (a) MAkassar, Padang, Ambon, Palembarg, Randjermasin B )5,000 (b) IAenado C ) P-35 Power Supply Facilities for Airports A 800 P-36 Air YaviLational Aids: 11DB A 450 VOR B 600 F-37 !1cteorological 2quipmcnt A 650 F-38 Improvemaent of Fire-fighting Services A 600 F-39 Tjurug Aviation Training School C 1,000 F-40 Improvement of Djakarta Air ort B 8,000 'Total .6,210I B cateo C category 33,300 AN1'EX II - 1

(2) . 4

Telecommunications G-4 Djakarta, Extension of Telephone 2xchan,es A 7,350 464 6,100 G-5 New Automatic i,xchanges 1) Semarang, Tjanadi A 850 88 600 2 Mledan A 1,350 47 1,230 3) ih,lang A 450 12 400 G-6 Local Exchange and Trunk Switching (1) Telukbetung-Tand4ungkarang A 450 12 394 (2) Djambi A 150 12 130 (3) Palembang A 500 25 440 G-7 Extension of Cable Network Banda-Atjeh A 120 .24 62 G-8 Radio CoLmunication Kalimantan and 1.i&luku Is nds A 1,450 150 1,050 G-9 Microw 'e Trainsmission in Western Sumatra, Pakanbaru- Bukittingi A 1,260 250 600 G-10 Com unication Improvements North and South Sulawesi A 1,580 265 880

Total 15.510 1.349 11.886

A category 11,886 Develo4ment Fir.ance Institutions (1970/71 Projects carried forward) H-1 Development Loan Y•nance (1) BAPINDO and Other State Banks B 20,000 - 20,000 Total 20.000 - 20.000 B category 20,000

Other Sectors ,i 970/72aProiecti Carried Forward) (1) Bandung C 2,250 2) Surabaja C 4,000 3 Palembang C 1,500 4) Surakarta C 2,000 J-2 Family Planning A 19,300 6,000 3,500 J-4 Education (2) Agriculture B 10,000 1,900 5,000 New Pro csals j-D ;W It of Referral hospitals B 4,000 J-6 Malaria zradication Progrm B 3,500 J-7 Infrastructura, Bali Tourism B 7,000 Total (29300 ( ) 32.750

A category 3,500 B category 19,500 C category 9,750 -17-

Summary Descriptions of 1971/72 Project Proposals

A. Agriculture

A-1 Pump Irrigation

The project is designed to provide irrigation pumps to selected areas for demonstration purposes. Supply of water by small- scale pumps demonstrated economic results in raising crop production in other Asian countries and the project is to accel- erate the growth of this irrigation technique in Indonesia.

A-2 Development of Groundwater for Livestock, Timor, Flores, Sumba

There is scope for substantial livestock development on some of the islands east of Bali. For this purpose, utilization of groundwater is proposed, requiring surveys, expert assistance, supply of equipment and other assistance necessary for construction of wells and windmills. The project is designed to provide for stock watering both on farms and cattle-holding grounds as well as for forage crop production (see also ATA-7 in the 1970/71 technical assistance request).

A-7 Seeds Industry Development

Following the project identification and preparation work by FAO/IBRD mission, an IDA credit amounting to $5.1 million is expected to be committed in 1971/72.

A-8 Rehabilitation of Sugar Factories

Assistance is required to carry out arrears of maintenance and urgent replacement of turbogenerator sets and boilers, etc., for six sugar factories at Tasik Malu, Modjosarang, Sudhono (each with a boiler of 20 ton/hour capacity and a turbogenerator set of 1,200 kw), Tasik Madu, Modjosrangen and Pradjakan (each with a boiler of 40 ton/hour capacity and a turbogenerator set of 2,000 kw). A commitment from the Netherlands for the provision of boilers was obtained during 1970/71 (S1.7 million) and a request for turbogenerator sets is submitted to the French Government.

A-9 Development of Tjot Girek Sugar Estate

The project involves completion of an uncompleted sugar project. The mill is located in North Sumatra and has already successfully completed trial production on the basis of cane produced in trial planted area. The remaining project is to establish sugar cane plantings on an area large enough to -18-

supply the mill. Tne required studies were completed in 1970 by consultants employed under the IDA technical assistance credit.

A-10 Rehabilitation of PNP's XII and XIII, Tea and Quinine

The Tea Industry Reconnaisance Survey financed by U.K. Govern- ment and a World Bank feasibility study identified and prepared the proposed project. An IDA credit of about $9 million is expected to be commited in 1971/72. The credit will include an allocation for financing of further studies of other tea estates and the smallholder tea sector.

A-il Livestock Development, Slaughter Houses and Ancillary Equip- ment, Surabaja and Djakarta

Necessary studies have been completed. It is anticipated that the Government of Belgium will provide the estimated external financing requirements for the Surabaja Project and expects to undertake the construction in 1971/72.

A-12 Livestock Development, Ranch Cattle, Eastern Islands

An IDA project identification mission concluded in August 1969 that the prospects for a livestock development project in Bali, Lombok and Timor were promising. Consultants from New Zealand started a more detailed study and project planning in November 1970.

A-14 Rehabilitation of Additional Government Rubber and Palm Oil Estates

With financing provided by IDA's first estate credit, feasibility studies and planning of some of the project are to be undertaken. Consultants are now being selected.

A-15 Development of Pine and Agathis Plantations, Central Java

A technical assistance agreement for the preparation of an investment scheme has recentlv been concluded with Canada. The expert team is expected to propose measures for the improvement and systematic exploitation of the plantations in Central Java covering some 100,000 hectares. The project will mainly include saw-mills and other processing facilities, handling equipment and roads along with technical and management assistance. -1 9-

A-16 Development and Improvement of Teak Wood Exploitation

The Asian Development Bank in July 1970 agreed to provide technical assistance for the preparation of an investment program for the development and systematic exploitation of Government teak plantations, mainly in Central and Eastern Java, covering 400,000 ha.

A-17 Agricultural Credit Bank

Following the Asian Development Bank study of agricultural credit, ADB financed a study of the lending operations of the Bank Rakjat; a project for equipping and aiding its farm credit operations is being prepared.

A-18 Rice Processing Facilities

The existing rice milling equipment in Indonesia has suffered from negligence and obsolescence for many years and is responsible for excessively large breakage in milled rice and the general deterioration of quality standards for rice. The project is designed to provide new milling and storage facilities in order to reduce such loss, to improve the quality of rice milling. The British Government has recently entered into an agreement with Indonesia for delivery and initial operation of a pilot rice mill in the Bekasi area. Results of the rice marketing study conducted at present with financing of USAID (ATA-4) will help to shape this project.

A-21 Fishery Development (Skipjack and Shrimp), Sorong, Ambon, Tegal

A UNDP/FAO expert team has conducted a survey of fishery resources and has recommended the expansion of investment in fishery activities. It is anticipated that the Government of Indonesia will promote this promising industry more actively in view of the important role the fishing industry will play in improving dietary patterns of the people as well as in expanding exports. Further studies to plan specific facilities required at places named are to be undertaken.

A-22 Tuna Fishery Development, Kupang, Benoa and Padang

A survey of tuna resources was conducted by a team of Japanese experts and investment projects for the development of catch and storage facilities are now under preparation. It is anticipated that a large-scale investment program will result from the feasibility study. -20-

A-23 Fishery Development, Riau

the project is intended to take advantage of the fishery resources that can be tapped for exports to Singapore. A feasibility study is now being conducted by a Japanese team and will be completed by the end of 1970.

A-24 Smallholder Rubber Production

A study by a foreign consulting team financed by the IDA first estate credit is now in progress. It is intended to prepare a project for improvement of smallholder rubber production in an area to be selected in Sumatra.

A-25 Deli Tobacco Sprinkler Irrigation (PNP IX)

On the tobacco growing estates around Deli the regular supply of water to the high-quality tobacco grown in the area is considered to require sprinkler irrigation systems. A feasibility study to assess the economic costs and benefits is needed.

A-26 Strengthening of Agricultural Extension Services

The extension services appear to be thinly spread, insuffi- ciently paid and equipped, and not properly trained for their task. Studies which will indicate ways for improving the capabilities of this important service are underway and should result in the formulation of a program for the strengthening of extension work.

B. Irrigation

B-2/4 Pekalen Sampean Irrigation Rehabilitation Project, East Java

The project is designed to rehabilitate and improve the technical and semi-technical irrigation systems operated by the Irrigation Service of East Java (including drainage and flood protection works) in the Pekalen Sampean Area comprising the Irrigation Districts of Lumadjang, Bondowoso and Banjuwangi. The study is now under way.

B-3 Teluk Lada Irrigation Project

The project which is located on the West coast of West Java includes:

(1) rehabilitation and improvement of the existing irrigation network serving about 20,000 ha; -21-

(2) conversion of areas presently used for rainfed-rice cultivation to irrigated wet-rice cultivation; and

(3) flood control works.

B-5 River Dredging - Flood Control

(1) Sungei Wampu, North Sumatra

The project provides for the dredging of the Wampu River to increase its discharge capacity and to relieve the incidence of flood damages in the riparain areas. The project would also include related drainage and flood control works.

(2) Similar projects are to be prepared for other rivers in North Sumatra. (See BTA-20)

B-6 Groundwater Exploration and Development, Central and East Java

On the basis of the findings and recommendations of reconnaissance and preliminary surveys financed under IDA technical assistance credit, a phased groundwater exploration program is proposed to be carried out as follows:

(1) construction of test holes and test wells in five selected areas in conjunction with geophysical surveys;

(2) construction and initiation of pilot projects to provide data on integrated surface and groundwater use; and

(3) feasibility studies for larger groundwater development in the vicinity of the pilot projects.

B-8 Progo River Project

Rehabilitation and improvement of irrigation facilities is being planned to achieve more efficient utilization of land and water resources in the Progo River Basin. Specific project plans are being prepared with technical assistance provided by the U.K.

B-9 Emergenoy .Flood- Control Measures, Solo River, East Java

Emergency works are required to protect urban areas, road and rail facilities as well as densely populated agricultural areas from recurrent major floods. Engineering assistance and equipment are required for the execution of the flood control and river training works. -22-

B-10 Djakarta Flood Control Project

The project comprises the systematic rehabilitation, improvement and extension of the intra-city drainage and sewerage system with a view to improved sewerage disposal during the dry-season and reduction of flood damages in the urban areas during the wet-season.

B-ll Rehabilitation of River Dredgers

A considerable backlog exists in dredging rivers and river mouths, resulting in frequent flooding-and loss of agricultural output. The existing dredgers need rehabilitation.

C. Mining

C-1 Rehabilitation of Mantung Power Plant

The Netherlands Government recently agreed to undertake the first phase of the construction of a power plant at Mantung; the second phase construction requires approximately $850,000. The plant, upon completion, is expected to supply needed electric power for the expanding tin mining operations on the island of Bangka.

C-2 Rehabilitation of Manggar Power Plant

Procurement of diesel generators necessary to supply electric power to tin mining on the island of Belitung, one of the most important tin producing areas in Indonesia.

C-4 Rehabilitation of Tin Dredgers

The project is designed to overhaul the older dredgers which have been in use for more than 25 years. Design and procurement of equipment, spare parts and machinery required for four dredgers is proposed.

C-7 Modernization of m.s. Pelatuk

The Pelatuk is an exploration ship of the state tin mining corporation. Seismic surveys have indicated the existence of substanti-al tin reserves both offshore and onshore in the seas south of Singapore and east of Sumatra, which now need to be explored further through drilling. The renovation of this exploration ship and installation of a new drilling platform are needed for rapid progress in determining new tin reserves. -23-

C-8 Iron Sand Project

A feasibility study is currently being made to assess the economic and technical characteristics of a project for the production of iron sand concentrate on the south coast of Central Java. The tentative project proposed includes mining, dressing of ores, transport and port facilities.

D. Industry

D-3 Rehabilitation of Spinning Mills

The textile industry is expected to continue to grow at a high rate. The spinning mills proposed for rehabilitation under this project require overhauling and replacement of obsolete equipment. These plants all require adequate stocks of spare parts to prevent wasteful interruptions of operation.

D-4 Expansion of Spinning Mills

Spinning capacity in the country needs to be expanded, given the present imbalance between spinning and weaving capacities. The addition of new spinning capacity to existing plants, largely state-owned, is also intended to increase the economy of their operation.

D-8 Blabak Paper Mill Rehabilitation

The paper mill now produces only 2,000 tons annually against the original design capacity of 7,000 tons. This is largely due to failure in chemical processing of pulp and lack of maintenance leading to mechanical failures of installed paper processing machinery and frequent power failures. A request for technical assistance is separately submitted to conduct the necessary study (DTA-2).

D-9 Industrial Estates

The Government recognizes the important role of private industrial investment which could be greatly facilitated by the provision of industrial estates. Recently, the decision was taken to set up one near Djakarta, possibly in collaboration with foreign private investors. Site selection and related preparatory studies are under way. D-ll Expansion of Banjuwangi Paper Mill

The project, which has been prepared by consultants from Japan, envisages the expansion of the Basuki Rachmat paper mill, both to produce more paper and more bamboo pulp. The surplus bamboo pulp which would be produced is expected to establish more balanced operation of the mill; the surplus is intended to be supplied to Letjes Paper Mill as a raw material input.

D-12 Padalarang Paper Mill Expansion, West Java

The paper mill has recently been restored to normal operational condition. The new project is to expand the production capacity with new equipment to produce cigarette paper at a daily capacity of 5 tons.

D-13 P.N. Soda Waru, Expansion, Surabaja

The plant was rehabilitated at a cost of $1.25 million with Japanese assistance in 1968. The- project is to expand the present annual capacity of 3,000 tons to 6,000 tons in an attempt to make the operation of the plant more economical. A study is required to establish the feasibility of the project (DTA-13).

Power

E-1 West Java Generation, Transmission and Distribution

The West Java area is supplied from a grid system operating at 150 KV, 70 KV, and 30 KV. Generating and high voltage transmission- capacity is at present adequate and two 50 MW thermal units now being installed at Tandjung Priok power station should meet demand until about 1974, but financial commitments for next additions to generating capacity and start of detailed design and construction is needed in 1971/72. Consultants have now been appointed to provide management advisory services to PLN and supervise the rehabilitation of the Djakarta distribution network. The distribution and lower voltage transmission systems throughout West Java are heavily overloaded and in need of rehabilitation. Consultants are also about to be appointed to prepare feasibility reports covering new high voltage transmission requirements, additional generating capacity and the rehabilitation of existing transmission and distribution networks. -27-

F-14 Rehabilitation of South Kalimantan and Bengkulu Roads

The rehabilitation of existing national and provincial roads, minor realignments, the construction of bridges, and workshop facilities will be provided as part of the project.

F-15 Belawan-Penang Ferry

A feasibility study has recently been completed for a new ferry service between Belawan and Penang, sponsored by AID. The project has the support of ECAFE.

F-16 Highway and Ferry Connection, Lampung (Sumatra) to Merak (Java)

A feasibility study has been completed by a New Zealand team on the connection (the shortest between Sumatra and Java), and the same team is proceeding with detailed engineering of a 92 km road (80 km of improvement and the remainder new construction) at the Sumatra end together with ferry terminals. Apart from construction one roll-on-roll-off freight and passenger ferry will be required. It will be desirable for this to be constructed in an Indonesian yard though about 80 percent of its cost will be for foreign engines, plates and gear.

F-17 Construction of Highway Amurang-Duadulo, North Sulawesi

The project includes the construction of the Amurang-Duadulo highway in North Sulawesi.

F-18 Rehabilitation of Diesel Locomotives, 680 hp, 340 hp, 1500 hp, 1600 hp

All these locomotives except the 1600 hp were manufactured in the German Federal Republic by Krupp. The 1600 hp locomotives are General Electric, made in the United States. Eighteen 680 hp locomotives are out of service due to damaged crankshafts and transmissions, the cause of which should be determined before rehabilitation takes place. The same applies to 12 340 hp locomotives while 5 1500 hp locomotives are out of service because of cool-engines, crankshaft, and electrical problems. The General Electric locomotives were put into service 17 years ago but the others are less than 10 years old.

F-19 Rehabilitation of Railway Track and Bridges, Tjirebon-Kroja/ Bandjar and Baturadja-Pandung

Railway traffic is very much hampered by enforced loading and spare restrictions on bridges on this section of high density -28-

line. Because of lack of maintenance funds over many years the bridges are in an extremely poor state and action should be taken immediately to purchase bridge materials and renew abutments. The cost is estimated at $0.6 million.

The permissible speeds on the line have dropped some 30 percent within the last 20 years. In order to improve the condition of this high density route rail replacement, ballast, sleepers, tamping equipment and other track material is required for about 500 km of single track line. The cost of the project has yet to be determined.

The length of the track which needs rehabilitation and line renewal is about 227 km. The traffic density is high, most of it going to overseas destinations. The condition of the track is extremely poor due to lack of maintenance and speeds are restricted to 40 km/hr.

F-20 Modernization of Freight Cars, Series 120000

Freight trams are limited in speed because of safety hazards as they have obsolete braking. Airbrakes should be mounted on 2,000 freight cars of this series, which were obtained from Czechoslovakia in 1961. The airbrakes need not neces- sarily be purchased from the same country.

F-21 Improvement of Passenger Coaches

The main improvements to be made are in the airconditioning for which spare parts are required from the U.K., electrical equipment and clutches. The result is expected to be an increase in night schedules and greater comfort and convenience for the passengers.

F-22 Railbusses and Spare Parts, Java

It is estimated that 6 railbus units are needed consisting of three cars each, i.e., motor car, trailer car and control car. They would be used on feeder lines and on the main line Djakarta-Bogor. Another six units may be needed; their feasibility still must be established.

F-23 Concrete Sleeper Production Plant

The backlog in the replacement of ties is about 4.9 mn. About 90 percent of the present ties are of teak wood and other woods of export quality. The annual requirement is for about 500,000 new ties. The project would release teak wood for export and also reduce the real cost of the ties. -29-

F-24 Railway Communication and Signalling Facilities

These facilities are required in order to increase the capacity of the line between Tjirebon and Surabaja in Java. The present equipment is absolute and it is extremely difficult or impos- sible to obtain the spare parts necessary for safe operation.

F-25 Replacement of Part of the Interisland Fleet

Interisland shipping is crucial for the economic well-being and national cohesion of Indonesia. Efficient and rapid shipping of cargo and passengers would do much to promote this. Initially it is proposed that ferry services (roll-on-roll-off) ships be provided between Belawan-Merak, Pontianak-Merak, Padang-Merak and Banjuwangi-Timor.

F-26 Rehabilitation of Interisland Fleet

Much of the present interisland fleet requires spare-parts and materials in order to make it fully operational. It has been proposed by consultants, after a long study of the prob- lem, that a fund be set up under the auspices of a designated bank. This should be combined with a small team of ship sur- veyors as technical assistance which would evaluate the requests of shipowners for credit.

F-27 Rehabilitation of Ports

Subject to the findings of consultants presently in the field, port rehabilitation is likely to be required in the ports of TandJung Priok (Djakarta), Belawan (Medan), Surabaja, Palembang and Tjilatjap. Maintenance work has not been sufficient over the past several years; as a consequence the facilities are generally in a run down condition. Needed is the rehabilitation of quay walls, sheds, warehouses and fork lift trucks. A survey of precise requirements is now being carried out by consultants, extending to several more ports.

F-28 Dredgers and Equipment

The dredging of shipping channels and harbors is a continuing need and of the 16 mn cu. meters of dredging required there is capacity for only 11 mn cu. meters. To improve the position the purchase of a new hopper dredge is recommended by consultants at a cost of about $4 mn including spare parts. Modern- ization of other dredgers, particularly in electrical equipment, is also required. For one large dredge, the Sumatra II estimated cost is $380,000. For the four other dredgers which require this work the cost will be about $500,000. Four dump barges are also required for a cost of $1,200,000. -30-

The dredging fleet requires support equipment in the form of 6 survey crafts accompanying hydrographic survey equipment and high-fix shore equipment of the Decca type. The craft would cost about $1.5 million, equipment $0.28 million and the high- fix $1.0 million. Because of the large backlog of dredging, now amounting to 5 million cubic meters a year, and pending the commissioning of a new dredge, contract dredging is urgently required of (a) fairways, harbor basins and (b) river mouths.

F-29 Rehabilitation and Modernization of Ocean going Shipping

The project, which needs to be prepared in more detail during the year, envisages only the replacement of presently obsolete Indonesian ocean liners within or outside Freight Conferences. Five ships in the 4 to 5 thousand DWT class and three of 8 to 10 thousand DWT are considered due for replacement.

F-30 Improvement of Inland Waterways

The project for which a feasibility study is still needed, consists of the rehabilitation and improvement of transport facilities for several rivers in Kalimantan and Sumatra.

F-31 Acquisition of Specialized Log Carriers (lst phase)

Twelve ships of 6,000 DWT each are estimated to be needed for carrying logs between Indonesia and Japan, representing about 4 percent of the tonnage required to carry present exports of logs. A further study needs to be undertaken.

F-32 Marine Coastal Radio Communication

Radio stations are required at several ports in order to ensure safety and to improve port operations. Many of the existing radio stations require renewal or rehabilitation.

F-33 Rehabilitation of Marine Navigational Aids

The existing navigational aids in several channels are in very poor condition, posing hazards to shipping. The locations of the required facilities are Surabaja, Tandjung Priok, Bitung, Musi (outer bar), Stanton Passage, Discovery East Bank, General Elliot, dockyard workshops of Dumai and Bitung (in addition to Surabaja and Tandjung Priok referred to as anothr project) need equipment for repairs. Also required is the improvement of light power for lighthouses and beacons as well as two additional tenders for lighthouses and buoys. Several consultants' studies on the needs for such aids have been made. -31-

F-34 Improvement of Airports, Makassar, Medan, Padang, Ambon and Palembang

These airports are at present restricted for fully loaded F-27 operations and some cannot take DC-9 aircraft. The extension and the strengthening of Makassar runway is the most urgent while the others should be done after further study.

F-35 Power Supply Facilities for Airports

The lighting and other navigational aids at many airports cannot function without an independent power supply. In order to extend the availability of airports beyond 1800 hours electricity supply is essential.

F-36 Air Navigational Aids

Safe flying operation requires the installation of radio beacons as well as rehabilitation of those at several airports. Installation of existing VOR and possibly other equipment.

F-37 Meteorological Equipment

The project is designed to meet the increasing needs for aviation weather-forecasting services. It envisages the supply of meteorological equipment for 18 existing stations as a first phase of a four-year project.

F-38 Improvement of Fire-fighting Services

The project contains what is considered to be the obsolete minimum requirements of selected airports for fire-fighting equipment.

F-39 Tiurug Aviation Training School

The project is part of a program of the Tjurug aviation training school to improve pilot training; it consists of the purchase of a link trainer and small training aircraft. A further study of the project is required.

F-40 Improvement of Djakarta Airport

The construction of new terminal facilities to replace the inadequate present facilities is the main part of this project. -32-

G. Telecommunications

G-4 Djakarta, Extension of Telephone Exchanges

The construction in the Djakarta area of new automatic exchanges, extensions to existing exchanges and the installation of about 19,000 line units of equipment, also two 1,000 line unit mobile automatic exchanges.

G-5 New Automatic Exchanges for Semarang, Tjandi, Medan, Malang

The construction of new automatic exchanges: Semarang and Tjandi - 2,000 line units each, Medan city - 4,000 line units and Malang - 2,000 line units.

G-6 Sumatra Local Exchange and Trunk Switching

Local exchange and trunk switching equipment for connection of the towns of Telukbetung-Tandjungkarang, Djambi and Palem- bang to the new microwave trunk system being constructed from Djakarta through the island of Sumatra to Medan.

G-7 Extension of Cable Network Banda-Atjeh

Materials required to extend the subscriber and trunk cabling network in the city of Banda-Atjeh.

G-8 Radio Communication Kalimantan-Maluku Islands

The provision of HF radio equipment and telegaph services to serve cities and towns in the Kalimantan and Maluku islands.

G-9 Microwave Transmission-Western Sumatra

To provide microwave equipment for a connection of Pekanbaru and Bukittinggi in Western and Central Sumatra to the new trans-Sumatra microwave system.

G-10 Communication Improvements-Sulawesi

To provide HF radio and carrier communication equipment to improve trunk line services in the North and South of Sulawesi island. -31-

F-34 Improvement of Airports) Makassar, Medan, Padang, Ambon and Palembang

F-35 Power Supply Facilities for Airports

F-36 Air Navigational Aids

Safe flying operation requires the installation of radio beacons as well as rehabilitation of those at several airports. Installation of existing VOR and possibly other equipment.

F-37 Meteorological Equipment

F-38 Improvement of Fire-fighting Services

The project contains what is considered to be the obsolete minimum requirements of selected airports for fire-fighting equipment.

F-39 Tjurug Aviation Training School

F-40 Improvement of Djakarta Airport

The construction of new terminal facilities to replace the inadequate present facilities is the main part of this project. -32-

G. Telecommunications

G-4 Djakarta, Extension of Telephone Exchanges

G-5 New Automatic Exchanges for Semarang, Tiandi, Medan, Malang

The construction of new automatic exchanges: Semarang and TJandi - 2,000 line units each, Medan city - 4,000 line units and Malang - 2,000 line units.

G-6 Sumatra Local Exchange and Trunk Switching

Local exchange and trunk switching.equipment for connection of the towns of Telukbetung-Tandjungkarang, Djambi and Palem- bang to the new microwave trunk system being constructed from Djakarta through the island of Sumatra to Medan.

G-7 Extension of Cable Network Banda-Atjeh

Materials required to extend the subscriber and trunk cabling network in the city of Banda-Atjeh.

G-8 Radio Communication Kalimantan-Maluku Islands

The provision of HF radio equipment and telegaph services to serve cities and towns in the Kalimantan and Maluku islands.

G-9 Microwave Transmission-Western Sumatra

To provide microwave equipment for a connection of Pekanbaru and Bukittinggi in Western and Central Sumatra to the new trans-Sumatra microwave system.

G-10 Communication Improvements-SulaweSil

To provide HF radio and carrier comtmunication equipment to improve trunk line services in the North and South of Sulawesi island. -33-

H. Development Finance Institutions

H-1 Development Loan Finance

The need for specialized institutions providing medium- and long-term fihance has been recognized for some time, both by the Governmenit and several member countries of the IGGI. A series of actions are being taken at present to create the institutional mechanisms for this kind of lending. The experience with the medium-term credit program which the Government initiated early in 1969 clearly demonstrates the existence of large and increasing demand for investment resources.

A program for strengthening of the existing industrial development bank, BAPINDO, has recently been proposed by IDA and accepted by the Government. In the course of 1971/72 this institution should become capable of handling and will need credits for industrial finance.

Other state commercial banks to an extent specialized in lending to particular sectors of the economy, can also be used as a channel for term financing in those sectors. Bank Bumi Daya has been studied for that purpose by a team from the Asian Development Bank; the possibility exists also to channel funds for agricultural credit through Bank Rakjat. Technical assistance in the initial period of actual loan operations, management assistance and some support for the introduction of improved procedures will need to be provided along with financial resources.

Other Sectors

J-1 Water Supply

Australia, France and Japan have made commitments for improvement of water supply facilities in Makassar, Djakarta, Bogor and Denpaser. This project involves similar projects for Bandung, Surabaja and Palembang.

J-2 Family Planning

A joint UN/WHO/IBRD mission presented a report in July, re- commending a concrete operational plan designed to obtain six million acceptors in Java, Madura and Bali by 1975. The Government has established an organization charged with responsibility for executing essentially the plan recommended. Materials, equipment and finance and experienced advisors are needed. -34-

J-4 Agricultural Education

The urgent need for improved training of extension and other personnel for the agricultural sector is recognized. An FAO/ IBRD mission is at present studying the structure and requirements of agricultural education in Indonesia. Its report will be available in time for a commitment to be considered, possibly by IDA, during 1971/72.

J-5 Development of Referral Hospitals

Under the Master Plan for the National Health Services now being implemented with assistance from UNICEF and WHO, the development of an integrated referral system for health services will be pursued through the rehabilitation of kabu- paten (district) hospitals. Most are in a run-down condition and lack essential equipment. Those offering practice training for paramedical personnel will receive priority. Aid has already been commited for new equipment for 55 such hospitals. External assistance is sought to equip 123 more district referral hosptials, over a four-year period, at a total cost of $14 million of which $4 million is needed in 1971/72.

J-6 Malaria Eradication Program

A malaria eradication program was conducted in Java and Bali, with assistance from WHO and the United States, in 1964. As a result, the number of malaria cases was reduced to only 7,000 cases in 1965. Through lack of funds, it was not Dos- sible to continue the program and as a result the annual incidence had increased to 97,000 in 1969 and could approach 500,000 in 1970.

To meet this situation a selective program has been drawn up for Java and Bali, particularly for development areas. The estimated cost for 1971/72 is $3.5 million of which $2.5 million is for D.T.T., and the remainder for drugs, equipment and transport.

J-7 Bali Tourism Project

The first interim report of the Bali Tourism Development Study indicated the need for several investments in infrastructure to promote private investment in tourism projects. Feasibility studies will have to be carried out, after the study has been completed. The amount estimated includes power and water supply facilities, equipment for roads and some other investments. -35- ANNEX II-2

Pre-investment Surveys and Technical Assistance for 1971-72

Note: The request submitted by the Indonesian Government to the I.G.G.I. in December 1969 differed from the numbering of Annex II of the Economic Report of November 14, 1969 (EAP-10a). The numbering in the present Annex follows the one used now by the Government of Indonesia.

A. Agriculture

(Carried forward from 1970/71)

ATA-1 Assistance to Agricultural Planning Bureau

The proposal is to extend technical assistance to the planning personnel in the Ministry of Agriculture by providing experts to the Agricultural Planning Bureau.

ATA-3 Intensification of Livestock Production Around Main Consuming Centers

Demand for livestock products has been rising especially around the metropolitan areas and the trend is expected to continue with the rising income and increasing number of foreigners in Indonesia. The project is to promote commercial production of livestock products to meet the requirement.

ATA-4(d) Animal Diseases Investigation Service

Based on preliminary surveys carried out by FAO, technical assistance is requested over a five-year period to improve the equipment of the Central Livestock Disease Research Institute at Bogor and to strengthen and coordinate the facilities and services for livestock disease investigation in Eastern Indonesia at Makassar, Denpasar and Kupang with particular reference to improvement of the quality of export cattle. The technical assistance requested would include construction and equipment of laboratories, experts and fellowships.

ATA-9 Rice Intensification Project - Lampung, Tanah, Djawa, Garut

Of the three pilot projects proposed in 1970/71 for this purpose, two were taken up by external donors. Rapid increase in food production calls for adoption of im- -36-

proved modern technology in particular proper applica- tion of fertilizers and pesticides as well as improved seeds. The new projects are designed to set up pilot projects in Soth Sumatra and Java for demonstration purposes.

ATA-12 Crop Intensification Studies

Improved practice of cultivating various cash crops will require expert guidance and the scope of the project is to provide such required technical assistance to production of pepper, coconut, coffee, tobacco, clove, cocoa and citrus.

ATA-15 Watershed Rehabilitation and Improvement

To supplement the irrigation rehabilitation projects being undertaken, the importance of overall effective utilization of water resources has been recognized and the project is aimed at promoting conservation works of various river catchment areas. These rivers include (1) upper Solo River, (2) Tjimanuk River, (3) Djratun- seluna River and (4) Brantas River.

(New Proposals)

ATA-16 Forest Inventory and Development - Riau

The island of Riau possesses rich but hitherto unex- ploited forestry resources. An inventory of existing tree growth and development possibilities is to be made and studied under this proposal.

ATA-17 Improvement of Food Crop Statistics

The need for reasonably reliable statistics on agricultural production has been acutely felt and the proposal is to study what necessary steps should be taken to achieve the desired results in this direction.

ATA-18 Plant Protection Services Head Offi'e in Pjakarta, and Krawang Pilot Project

The request is for assistance to build up the plant protection service in Indonesia. The organization pattern needs to be determined and the activities -37-

planned by the Djakarta Head Office which therefore needs to be assisted first; a pilot project in the Krawang area would provide useful information on the suitable organization of the plant protection activities.

ATA-19 Corn Production Center Development

The proposal envisages the creation of research centers in major corn growing areas of Indonesia, notably Cen- tral and East Java, South Sulawesi and South Sumatra. These centers would assist in the selection of seeds and methods of production and would also provide marketing assistance.

ATA-20 Grain Legumes Development

In certain areas of Indonesia particularly parts of Java, Sulawesi and Lombok, the natural conditions for growing soybeans, groundnuts and other grain legumes are favor- able and export prospects appear good. A study is required of the possibilities for expanding production and to improve marketing arrangements.

ATA-21 Pump Irrigation Feasibility Study

The project was proposed to explore the feasibility of small-scale pump irrigation in a selected area for demonstration purposes.

ATA-22 Copra Industry Study

Indonesia produces substantial quantities of copra and exports are largely unprocessed. Copra processing industries may be feasible; the proposed study is to explore measures and technical improvements conducive to the development of copra industry.

ATA-23 Improvement of Management and Marketing of Fruits and Vegetables

The rich variety of fruits and vegetables which Indonesia can produce in substantial quantities suggest the need for a study of the possible improvement of production and marketing conditions both to enhance farmers' incomes and export. -38-

ATA-24 Aerial Photography of Forestry Resources

The large and unexplored forestry resources of Indonesia need to be inventorized in order to determine availability of major tree varieties for export. Aerial surveys are proposed to this end as first step towards more comprehensive information on forestry resources.

ATA-25 Forestry Industrial Development Planning

The Directorate General of Forestry requires assistance in economic and market analysis and planning of forest exploitation.

ATA-26 Shrimp Culture Study

Export markets for shrimp are rapidly growing and Indo- nesia's exports, presently valued at some $1.5 million, could be increased substantially if proper provisions for culture and marketing are made. This study is expected to identify the possibilities.

ATA-27 Danau Tempe Fishery Project

This lake in South Sulawesi has in the past been a rich source of fish supplies, but conditions have deteriorated as a result of lack of maintenance of the irrigation system in the area. A feasibility study is required to es- timate costs and benefits of a rehabilitation project.

ATA-28 Development of Groundwater for Livestock

Following a survey and report by a Dutch expert (Ir. Felius), a project is prepared for Timor, Flores and Sumba. The project would include a more detailed survey of the actual construction sites, expert assistance, and the setting-up of windmills for stock watering both on farms and cattle- holding grounds as well as providing some water for crop production.

ATA-29 Livestock Development, Slaughterhouse Djakarta, Feasibility Study

A feasibility study is required to establish costs and benefits of a proposed project for the construction of a slaughterhouse in Djakarta. -39-

ATA-30 Improvement of Pines

The services of an expert on silviculture is requested to sttudy the genetic and environmental characteristics responsible for the great differences in the commercial values of different pine plantations and to prepare a breeding and/or selection program for future plantings.

B. Irrigation

(Carried forward from 1970/71)

BTA-2(a) Solo River Basin - East Java

A survey of existing and required flood control is needed, leading to the formulation of a phased program of protective works serving major urban centers along the Solo River.

BTA-2(b) Tjitanduj River Basin - West Java

The rehabilitation of existing flood control works and the construction of new works needs to be studied for an areas of about 30,000 ha which is expected to benefit from a possible project.

BTA-4 Tjimanuk River Basin Study, W. Java

BTA-5 Krueng Djrue Irrigation, Atjeh

BTA-6 Krueng Baro Irrigation, Atjeh

BTA-9 Dumoga Irrigation, N. Sulawesi

BTA-10 Gumbasa Irrigation, Central Sulawesi

The above projects are at different stages of implementation and technical assistance is requested to assess their flood control requirements and irrigation.

BTA-12 Riam Kanan Irrigation - South Kalimantan

Technical assistance is required to make an overall review and evaluation of the existing study conducted by Indonesian technical personnel. The project area covers 30,000 ha of land which could be irrigated upon completion of the project. -4o-

(New Proposals)

BTA-13 South Kedu River Basin Development - South Sulawesi

The area is watered by five major rivers and offers a possibility of improving the existing irrigation system through construction of a dam and rehabilitation of main canals to extend irrigation coverage to 51,000 ha under rice cultivation.

BTA-14 Seraju Basin Development - Central Java

A feasibility study and redesigning of the existing plan are required for the proposed construction of a permanent weir in the Seraju River and rehabilitation of canals and existing hydraulic structures.

BTA-15 Volcanic Debris Control

Survey of the existing conditions and measures to reduce damages from volcanic eruptions will be undertaken under the program.

BTA-16 Swamp Land Reclamation and Tidal Irrigaion - South Kalimantan

UNDP/Special Fund has approved a large land and water resources development project in Southeast Sumatra which includes the above project. The Government requests a parallel study for South Kalimantan which would be directly related with the Southeast Sumatra study.

BTA-17 Kali Surabaja Improvement, E. Java

Large fluctuations in river flows bring about flood damages to the city of Surabaja. Therefore, the proposal is to explore the measures necessary to assure protection through improved flood control and proper sewerage disposal during the dry season.

BTA-18 Dataran Anai Irrigation

In the region around Padang, rice cultivation has declined as a result of lack of maintenance of existing irrigation systems. A study is required to determine the best way for rehabilitating the irrigation structure. -41 -

BTA-19 Rehabilitation of River Dredgers Feasibility Study

Many river dredgers in Indonesia require rehabilitation and the study is to determine which of these river dredgers require rehabilitation and which ones should be replaced.

BTA-20 Lombok Water Resources Survey

Earlier studies of the possibilities of groundwater development for ranch cattle have been made. It is now proposed to widen the scope of the hydrological work in order to provide a better basin for water resources planning.

BTA-21 River Dredging Feasibility Study

Deforestation and inadequate maintenance of irrigation structures, combined with an accumulated backlog of river dredging result in siltation of river channels and mouths and consequent flooding. The study will determine the priorities in this area and equipment requirements.

BTA-22 Inventory of Irrigation Infrastructure

Further planning and selection of priority areas for irrigation rehabilitation and extension require a complete description of existing works. The study is intended to provide the reference frame for such future planning.

BTA-23 Engineering Assistance to Existing Irrigation Projects

The Irrigation Department has in the past embarked upon a sizable number of small irrigation projects. Progress is slow and a substantial part of scarce manpower resources is absorbed by these projects which lack proper engineering and design. The proposed assistance could lead to speedier completion of these projects.

BTA-24 Hydrological Study - Lampung

The possibilities of constructing new irrigation works in the sparsely populated area of Lampung, South Sumatra, depend on findings of the proposed study of the water resources and their development potential.

BTA-25 Regional Land Development Program

Several areas of South Sumatra are presently only thinly populated and are therefore potential transmigration regions. Studies are required to determine soil characteristics and irrigation possibilities and costs. -42-

BTA-26 Wlingi

Linked to the Karang Kates multipurpose development which is now in an advanced stage of implementation, further irrigation possibilities exist in the same region, notably at Wlingi. A feasibility study of the proposed Wlingi multipurpose scheme is required.

C. Mining

(Carried forward from 1970/71)

CTA-1 Mineral Conservation and Research/Processing Ores

Technical assistance will include planning and coordination of mineral resource development, completion and publication of geological maps, interpretation of geophysical data, photogeological mapping and training of Indonesian personnel in the field.

CTA-2 Aerial-Photo and Magnetic Survey (Request for Continued Assistance)

CTA-3 Geochemical Mineral Prospecting (Request for Continued Assistance)

CTA-5 Geophysical Mineral Prospecting (Request for Continued Assistance)

The above three projects are carried out under a single coordinated program of aerial magnetic survey combined with aerial photo reconnaissance operation.

These operations will be followed up by various geological surveys combined with chemical and physical processing of the minerals. The proposals have received a total commitment of $2.8 million from Japan and the United States requiring additional $2.4 million for five-year operation.

CTA-4 Vulcanology

Early detection of disastrous volcanic explosion requires scientific training and the proposal is made to obtain necessary expert assistance for this purpose. -43-

CTA-6 Engineering Geology and Hydrogeology

The program includes groundwater conservation studies, geological engineering research on dam sites, urban sites, urban and regional development with respect to water supply and landslide and slope stability research.

CTA-8 Off-shore Sonic Survey

The proposal is designed to explore the off-shore deposit of minerals particularly tin around the presently producing areas. The project has already received commitment of aid from Netherlands amounting to $138,000 and the request is for continuation of the early stages of operation.

(New Proposals)

CTA-9 Feasibility Study of Alumina Plant, Bintan

The improvement of port and bulk loading facilities on the island of Bintan and the consequent increase of bauxite output point to the need for a study to determine the feasibility of an alumina smelter on Bintan.

CTA-10 Strengthening of the Geological Institute

A study is required to assess the present and future use of the Geological Institute in Bandung, its required staff, equipment and facilities.

D. Industry

(Carried forward from 1970/71)

DTA-1 Industrial Estates

Several proposals have been made by private companies for setting up industrial estates near Djakarta, Sura- baja and Tjilatjap. The Government is also interested in undertaking the establishment of industrial estates. Assistance in implementation is now sought under this proposal, specifically with regard to the establishment of estate authorities. DTA-3 Survey of Pulp and Paper Industry

The survey is designed to explore and assess the country's potential in developing pulp and paper industry based on the domestic raw materials and the domestic demand for various paper products. The study is intended to include identification of technical and managerial difficulties experienced by the existing paper mills such as Letjes, Padalarang, Blabak, Goa and Basuki Rachmat. Takengon Paper mill feasibility study is expected to be conducted on the basis of these findings.

DTA-5 Petro-Chemical Industry Feasibility Study

The study is designed to conduct a survey of potential petro-chemical industries utilizing domestically available raw materials.

DTA-9 Soda Ash and Caustic Soda

Under project aid request, expansion of P.N. Soda Waru is proposed and the study is aimed at determination of feasibility of expanding the soda ash and caustic soda industry in Indonesia.

DTA-10 Survey on Pesticides

The study is to determine present use of pesticides in Indonesia by type of crops and area, in order to determine possibilities of local production and use of domestic materials for making pesticides.

DTA-ll Formic Acid and Acetic Acid Industry Survey

Evaluation of the presently available feasibility study and process and engineering study are required to determine whether there is need for a plant to supply formic acid and acetic acid to the rubber processing industry.

DTA-12 Maritime Industries Feasibility Study

The study should determine what needs to be done in order to complete and operate more efficiently the existing shipyards and shipyards projects in Makassar, Padang, Gresik and Bitung. DTA-14 Aircraft Industries Feasibility Study

The study will explore what measures may be appropriate regarding the establishment of aircraft overhaul, assem- bly and ground/support facilities.

DTA-21 Production and Management to the Paper Industry

Technical assistance is required to assist management in the production of pulp and paper and in general plant management.

(New Proposals)

DTA-27 Foundry Center in Medan

A feasibility study is required to determine costs and benefits of a third foundry center to be located in Medan.

DTA-28 Promotion of Light Industries

The study will determine whether the establishment of a Light Industries Institute is desirable to assist in management, production and marketing of mainly small- scale industries.

DTA-29 Pre-Investment Studies on Various Metal Processing Industries

The studies are intended to provide information on feasibility of the production of iron and steel pipe, hardware, tools, industrial spare parts and machinery rehabilitation.

DTA-30 Machine Tools Rehabilitation Center

The study aims at determining the feasibility of establishing centralized maintenance and repair facilities for machinery and equipment.

DTA-31 Strengthening Chemical Institutes

The study should determine which of the existing chemical industry research institutes should be strengthened to provide necessary assistance to the country's developing chemical industry. DTA-32 Cellulose Research Institute

DTA-33 Ceramic Research Institute

DTA-34 Material Research Institute

DTA-35 Batik and Handicrafts Industry Research

Studies should be conducted to determine the usefulness of these institutes and define their functions and activities. On that basis recommendations should be made regarding their staffing, training, and equipment needs.

DTA-36 Laboratory Equipment for Foundry Center, Surabaja

The foundry center being established in Surabaja needs laboratory equipment.

DTA-37 Industrial Advisory Team

In the light of mounting requirement for individual project identification and appraisals in industrial sectors, the Government is requesting necessary technical assistance. The proposed team is also expected to supply required assistance to the Department of Industry and formulating overall industrial development policies.

DTA-38 Technical Assistance for Operation of Foundries and Other Metal Working Plants

Germany and Japan agreed to assist in constructing modern foundry centers, in Surabaja and Djakarta. The proposal is made to request necessary technical assistance to these new foundries and the related factories in the field of metal working industry.

Power

(Carried forward from 1970/71)

ETA-6 Power Research Institute

ETA-7 Research and Training Institute for Gas Industries

The two requests above are for studies which must determine the future roles which these institutions can play serving the industry. -47-

(New Proposals)

ETA-8 Rehabilitation of City Gas Networks

Studies are required to determine the relative cost of rehabilitating existing gas networks in Medan, Djakarta and Semarang as compared to the provision of residential energy supplies from other sources.

ETA-9 Bali Power Distribution and Transmission

ETA-10 Bandjarmasin Power Distribution System

The two studies will determine feasibility of improving and expanding power distribution and transmission facilities in isolated areas.

F. Transportation

(Carried forward from 1970/71)

FTA-3 Ports and Dredging Advisory Services

The request is for continuation of advisory services presently provided.

FTA-4 Port of Tjilatjap - Feasibility Study

The Government of Indonesia is making a special request to conduct a feasibility study on the rehabilitation of the port as a high priority project which has direct relation to an investigation of the possibility of establishing an industrial estate.

(New Proposals)

FTA-8 Feasibility Study of Feeder Roads Development - Bukit Tinggi - Tarutung-Medan Highway

The cross-Sumatra highway from the west coast near Padang to Medan on the east coast traverses areas of substantial agricultural activities. Feeder road systems linked to the highway will be beneficial to farmers in the region and will also stimulate exports. FTA-9 North Sulawesi, Central Sumatra, Diambi, West Java, Feeder Road Study

The study will assess the relative needs and priorities for improving the UNDP Highway Services Team investigation of priorities at national and provincial levels.

FTA-10 Feasibility Study, Lubuklinggau-Pandjang-Sumatra

The highway now being designed under IDA auspices between Sidjundjung and Lubuklinggau will eventually form an important "trans-Sumatra route" for agricultural producers as well as passengers. A continuation of the route to the deep water port of Pandjang appears to be logical; the area of influence would then be able to export from this port by what seems to be the lowest cost route.

FTA-li Feeder Road Study, Pandiang-Marindjai, Lampung Province

The Marindjai area is the center of a maize-growing area which is of growing importance with the injection of considerable foreign investment and large-scale migration from Java. Foreign investors are planning storage sites and wharf facilities at Pandjang for export of the maize. Tonnage is expected to be about 1 million annually.

FTA-12 Feasibility Studies, Pontianak-Border Highway

The pre-feasibility study has established that the economic benefits from this highway will be high. Final engineering for the construction of 309 km of highway and bridge is now required.

FTA-13(a) Feasibility Studies, Djakarta-Tjirebon Highway

FTA-13(b) Feasibility Studies, Semarang-Surabaja Highway

Highway transportation between these points is costly because of the poor alignments and road service conditions. Between Djakarta and Tjirebon at least 3 routes are possible but without a feasibility study it is not quite clear which one should be preferred. Similarly, between Semarang and Surabaja there are at least 2 possible routes and the improvement to one of these is essential for good transportation. Feasibil- ity studies are therefore proposed. The connection between Tjirebon and Semarang is in fair shape and can be rehabilitated. -49-

FTA-13(c) Feasibility Studies, Surabaja-Malang Highway

Consultants have proposed a feasibility study for improvement or new construction of this important highway. The highway runs from a rich agricultural area around Malang to the sea- port town of Surabaja. The length of the road is 90 km, the heaviest traffic section was reported to be 10,000 vehicles per day in 1969. Construction costs are estimated to be about $1 million with a foreign exchange component of $650,000.

FTA-13(d) Feasibility Studies of Padang-Medan Highway

The road is a vital link between the two largesr trading centers of Sumatra. It traverses some of the richest agricultural land in Indonesia and consequently carries heavy traffic. A study is required to consider the feasibility of upgrading about 230 km of road from Bukittingi to Padang Sidempuan and to choose a route for upgrading from the latter point to Medan.

FTA-14 Highway Bridge Design - South Sulawesi

The bridges in South Sulawesi are generally in very poor condition and many are dangerous. Others were demolished during civil disturbances in the mid-1960's. Some areas are thus almost completely isolated. Pre-feasibility studies have been completed for the required bridge replacement and these are considered to be of sufficient quality to immediately proceed to detailed design.

FTA-15 Survey on the Position of Wrecks Constituting Hazards to Navigation

The last survey on the wrecks was done in 1960. It is necessary for the improvement of waterways and channels to update the earlier survey.

FTA-16 Survey of Water Supply for Ships

In many ports water supply to ships is inadequate or of in- ferior quality; a survey by Nedeco is expected to be completed soon. The study should determine which sources should be tapped for the improving fresh water supplies in the ports. FTA-17 Dockyard Technical Assistance, Tandiung Priok and Surabaja

The dockyards are in urgent need of assistance in management in order that they can be brought to the standard of the com- petitive Hong Kong and Singapore yards. This assistance would provide 6 management consultants over a period of two years.

FTA-18 Rehabilitation and Modernization of Ocean-Going Shipping

The study would be a survey of the needs for provision and installation of spare parts for the ocean-going fleet, the largest part of which is the Government-owned Djakarta Lloyd. Additionally, managerial assistance in this shipping line would be desirable.

FTA-19 Acquisition of Specialized Log Carriers

The rapid increase in exports of forestry products raises the question whether Indonesia could take a larger share in the shipment of logs abroad. The study will determine feasibility of the acquisition of six specialized log carriers.

FTA-20 Assistance to Banking System for Fleet Rehabilitation

The rehabilitation of sea communications has been hampered by an almost total lack of financial resources. The study would determine the institutional arrangements necessary to channel investment funds to the shipping sector, either by using one of the existing banks or by the creation of specialized institution.

FTA-21 Fleet Survey

A complete inventory of ships, their makes and present conditions of the fleet is needed as the basis of longer term program of expanding inter-island communications.

FTA-22 Assistance to Biro Klassifikasi, Indonesia

The program is designed to provide necessary technical assistance to the Bureau of Classifications for the purpose of improving port operation.

FTA-23 Implementation of Navigational Aid System

The program is intended to provide a consulting team to assist the installation of navigational aid systems. FTA-24 Feasibility Study for Dockyards

The dockyards of Tandjung Priok, Surabaja and other selected ports require to be studied in order to determine the feasibility of their rehabilitation and possible expansion.

FTA-25 Processing of AVI's

The available data from the Central Bureau of Statistics, De- partment of Trade and the Ministry of Communications on move- ments of goods through the ports are incomplete and not adequate for port administration and planning. The proposed study would lead to recommendations for the processing of ships' manifests; this is the only source of information which could give complete coverage of goods movement in Indo- nesia.

FTA-26 Urban Traffic Study - Surabaja

The study is designed to explore measures which will allevi- ate traffic congestion in Surabaja.

FTA-27 Road Transport Industry

A study of road transport, including routes, types of vehicles and costs is needed as a basis for proper decision-making in the Communications Ministry on issues related to road transport.

FTA-28 Feasibility Studies on New Investment Proposals for Railways

The State Railways have put in a number of project proposals which related mainly to rehabilitation of locomotives, rolling stocks and track. In order to ensure that a project is sound, it is desirable to engage 3 consultants, a railway engineer, financial analyst and an economist for a period of about one month.

FTA-29 Railway Advisory Team

A request is being made for extension of the services of the present advisory team.

FTA-30 Djakarta Airport Engineering, Kemajoran

Kemajoran Airport is expected to serve for the next seven years and engineering is required for the minimum improvements to accommodate the anticipated traffic by the existing airport. FTA-31 Menado Airport Study

The study will determine what measures must be taken to safeguard the runway from severe flooding during the rainy season.

FTA-32 Aviation Training School

The provision of flight trainers, three training aircraft and exports for initial operation is requested for the aviation training school in Tjurug.

FTA-33 Meteorological Technical Assistance

Procurement of meteorological equipment is requested to improve aviation weather forecasting.

FTA-34 Inland Waterways Development

Rehabilitation of dredging equipment and navigational buoys is needed on inland waterways of Sumatra and Kalimantan where at present no alternative means of transport are available.

G. Telecommunications

(New Proposals)

GTA-1 Telecommunication Training Center

Training of 69 junior engineers, 193 senior technicians and 1,680 technicians over the course of three years requires provision of experts and equipment. The study is intended to define the extent of such assistance.

GTA-2 Telecommunication Network Development

A request is made for continued consulting services on systems planning for the Telecommunications Authority.

GTA-3 Regional Telecommunication Network

Planning of the national communication network needs to be supplemented by the studies of local and regional telecommunication requirement.

GTA-4 Postal Development

Expert advice is requested to improve services and mail distribution. H. Water Supply

(Carried forward from 1970/71)

HTA-2 Management, Operation and Maintenance of Water Supply

Technical assistance is requested to study measures for improvement in management, operation and maintenance of water supply systems.

HTA-3 Metropolitan Area Water Supply

Studies are requested of the existing conditions of metropolitan water supply systems in Surakarta, Surabaja, Bandung and Palembang leading to water supply development project formulation.

(New Proposals)

HTA-4 Rural Water Supply Study

Little is known at present about rural water supply; the proposed study would analyze present conditions and make general suggestions for improvement.

J. Education

(Carried forward from 1970/71)

JTA-2 Agriculture Education

JTA-3 Technical Education

These two programs are intended to provide guidelines for the development of improved education and training in agricultural and technical schools.

(New Proposals)

JTA-4 National Assessment of Education

JTA-5 Education Advisory Team for BPP

These two programs are designed to provide technical assistance in drawing up long-range educational development program and policies. Most of the technical assistance provided so far in the field of education dealt with particular technical aspects of the sector. A comprehensive plan for educational reform based on administrative and economic feasibility is required for which are needed experts in public administration, economics and sociology in addition to education spe- cialists. The advisory team would be attached to the Educa- tion Planning Bureau (BPP).

JTA-6 Book Package Program

UNICEF and the Canadian Government have supplied substantial quantities of paper for printing textbooks in Indonesia. The program is proposed to be construed in order to secure necessary quantities of paper for printing school textbooks.

K. Housing

(New Proposals)

KTA-1 Research on Building Materials

KTA-2 Survey, Study and Prototype of Housing Project

KTA-3 Housing Development Project

The studies are to explore the feasibility of promoting the development of public housing for workers and the professional groups of modest income as was successfully carried out by some countries of Southeast Asia, notably Singapore and Hong Kong. The studies may establish needs to further experimen- tation with housing types and different building materials, and to establish on a pilot basis a housing development project.

L. Urban and Regional Development

(New Proposals)

LTA-1 Urban and Regional Planning Documentation and Information

LTA-2 Integrated Survey and Regional Analysis of Area Development

LTA-3 Regional Development Studies for Djakarta

The technical assistance is requested to make a beginning with regional and urban planning. The provision of better information flows and documentation and the start on a regional survey of Bali and djakarta could be useful steps. LTA-4 Masterplan Preparatory Study, Surabaja

A study is to be conducted to outline the scope and focus of a masterplan survey for the Surabaja area.

LTA-5 Bali Regional Development Planning Unit

Bali is one of the two planning units established at the beginning of the Five-Year Plan and served as a pilot project for other provinces.. Technical assistance is requested to make the unit more efficient and effective. M. Tourism

(New Proposals)

MTA-2 Java Tourism Study

The island of Java provides many scattered attractions of which a large number are at present not easily or not at all accessible. Also, the development of tourism on Java would depend on the availability of hotel and restaurant facilities of good quality throughout the island. The study would recommend specific measures and investment program appropriate for these circumstances.

MTA-3 Sumatra Tourism

The area around Lake Toba is attractive for tourists from nearby foreign countries, usually visiting for several nights. Improvement of communications and provosion of family-type accommodations could be economically attractive, but a study needs to be undertaken to assess probable costs and benefits.

N. Information Services

(New Proposals)

NTA-1 Assistance to Development Project Communication

Information on developmental activities must be provided on a larger scale in order to obtain increased support for project implementation and operation at the lower level. Tech- nical assistance is required in setting up an information flow system. P. Health

PTA-1 Health Master Plan: Assistance in Project Preparation

Technical Assistance for 36 man-months is sought for project preparation in connection with the Master Plan of Operations for the National Health Services, 1969-1974, which was for- mulated in agreement with WHO and UNICEF.

PTA-2 Family Planning: Training Courses ($37,600)

PTA-3 Family Planning: Foreign Training ($100,000)

PTA-4 Family Planning: Advisors and Consultants ($200,000)

These three forms of assistance are required in connection with the family planning program recommended by a UN-WHO-IBRD mission earlier in 1970 and accepted by the Government of Indonesia. Other commodities and equipment requirements for the National Family Planning program are expected to require $2 million in assistance.