Mr. James Batley 1 March 4, 2011

Australian Agency for International Development

CONFORMED COPY

Letter No. CD-028/PSF/1/2011 March 4, 2011

Mr. James Batley

Deputy Director General

Asia Pacific & Program Enabling Group

Australian Agency for International Development

255 London Circuit

Canberra ACT 2601

Australia

Dear Mr. Batley:

Re: Amendment No. 5 to the Trust Fund Contribution Agreement between

the Government of Australia, acting through the Australian Agency for International

Development, and the International Bank for Reconstruction and Development

for the Support Facility for National Program for Community Empowerment (PSF)

(World Bank TF070967) (AusAID Agreement No:51045)

1.We refer to the Trust Fund Contribution Agreement, dated January 30, 2008, as most recently amended on December 6, 2010 (“AusAID Contribution Agreement”), between the Government of Australia, acting through the Australian Agency for International Development (“Donor”), and the International Bank for Reconstruction and Development (“Bank”) for the Support Facility for National Program for Community Empowerment (“PSF”). The Agreement has so far been amended as follows:

 Amendment 1 dated May 8 2008, for the First Additional Contribution of AUD4,550,000;

 Amendment 2 dated June 10 2009, for the Second Additional Contribution of AUD4,000,000;

 Amendment 2B dated November 18 2009, reflecting additional categories for recipient-executed activities;

 Amendment 3 dated May 18 2010, for the Third Additional Contribution of AUD17,500,000; and

 Amendment 4 dated 6 December 2010, to amend the Standard Provisions in line with the revised PSF Operations Manual.

2.This letter records agreement between the Parties on the above amendment history, recognising that Amendment 2B as recorded above was signed by both Parties and came into effect on November 18 2009 but was not designated as ‘Amendment 2B’. For future ease of reference, it shall now be designated as such.

3.Moreover, through this Amendment 5 we are pleased to acknowledge that the Donor will provide an additional contribution of thirty two million Australian Dollars (AUD32,000,000) (the “Fourth Additional Contribution”) to the above-mentioned Trust Fund. Capitalized terms used but not defined in this amendment have the meanings given to them in the AusAID Contribution Agreement.

4.Accordingly, we propose to amend the first paragraph of the AusAID Contribution Agreement to increase the amount of the Contribution to sixty million fifty thousand Australian Dollars (AUD60,050,000) through the provision of the Fourth Additional Contribution as follows:

Paragraph 1 of the Contribution Agreement is amended by replacing the words “twenty-eight million fifty thousand Australian Dollars (AUD28,050,000) (“Contribution”)” with the words “sixty million fifty thousand Australian Dollars (AUD60,050,000) (“Contribution”), of which the amount thirty-two million Australian Dollars (AUD32,000,000) comprises the Fourth Additional Contribution.” .

The Donor shall deposit the fourth additional Contribution into such bank account designated by the Bank promptly following countersignature of this agreement by the Donor and submission of a payment request by the Bank.

5.When making such deposit, the Donor shall instruct its bank to include in its payment details information (remittance advice) field of its SWIFT payment message, information including: the amount paid, that the payment is made by the Donor for TF070967 (the PNPM Support Facility) and the date of the deposit (the “Deposit Instruction”). In addition, the Donor shall provide a copy of the Donor’s Deposit Instruction to the Bank’s Accounting Trust Funds Division by email sent to or by fax sent to (202) 614-1315.

6.The Bank shall convert the Contribution funds into the holding currency of the Trust Fund, namely US Dollars, promptly upon receipt of the Contribution funds and the Deposit Instruction containing the information specified in the preceding at the exchange rate obtained by the Bank on the date of conversion. Where the Contribution proves to be insufficient to complete the activities as a result of an exchange rate fluctuation, neither the Bank nor the Donor shall bear any responsibility for providing any additional financing.

7Except as specifically provided in this amendment, all terms and conditions of the AusAID Contribution Agreement remain unchanged and in effect.

8.It is the Bank’s policy to make publicly available the Agreement and any information related thereto, including this Amendment. By confirming below, the Donor consents to disclosure of this Amendment after it has become effective.

Please confirm your agreement to the proposed amendment to the AusAID Contribution Agreement by signing and dating as indicated below both originals of this amendment, keeping one original for your files and returning the other to us for our records. Upon receipt by the Bank of one fully signed original of this amendment, this amendment shall be deemed to have been effective as of the date of your countersignature.

Yours sincerely,

FOR THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

/s/ Franz Drees-Gross

Acting Country Director, Indonesia

FOR THE GOVERNMENT OF AUSTRALIA

acting through the Australian Agency for International Development

AGREED

By: /s/James Batley______

Name: James Batley______

Date: 7 April 2011______

Title: DDS AusAid______

FMA s.44 Delegate

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