The objective of the Urban Sector Development and Reform Project for Indonesia is to improve urban services in the participating urban local governments (ULGs). The restructuring will: (a) cancel US$6.565 million of the International Bank for Reconstruction and Development (IBRD) loan amount, and (b) reallocate proceeds between disbursement categories. The restructuring does not affect project co-financing from the Policy and Human Resources Development (PHRD) Grant.