An agreement for a loan granted by the United States to Indonesia through the Agency for International Development (AID) for higher education development training is described. The assistance to certain educational institutions is designed to assist in the financing of advanced training, upgrading and development of the faculties, administrations, and staffs of state and selected private universities and institutions of higher education. The loan will provide training in the United States for about 65 doctoral candidates and 65 MA/MS candidates, plus third country training for about 15 doctoral and 10 MA/MS candidates. It will also assist in-country training activities by providing the services of short-term consultants from U.S. institutions for up to 87.5 man-months. The loan is especially designed to provide assistance to faculties in institutions of higher education with high priorities given to sciences, technology, and selected social sciences. The following conditions of the loan agreement are detailed: loan terms, conditions precedent to disbursement, general covenants and warranties, procurement, disbursements, cancellation and suspension, communications, representatives, implementation letters, promissory notes, and termination upon full payment. (SW)