PART IV PROJECT REQUIREMENTS

1. GENERAL CONTRACT CONDITIONS

 The following documentation shall be included in the contract:
Part I Contract Letter
Part II Specification & Scope of Work
Part III Schedule of Prices
Part IV Project Requirements
Part V Site Conditions and General Health & Safety Conditions for
Contractors
Part VI Conditions of Contract
----- Contractor Proposal

Refer to Part I, Contract Letter, for priority of documents.

 By accepting the contract, Contractor agrees that it understands the work scope and
agrees to perform the required work for the contract price to meet the contract scope,
quality and schedule.
 The contract shall be valid upon signature by Contractor of the Contract Letter of
Acceptance. The first work day and the work schedule shall be agreed by Owner and
Contractor.
 The contract shall be valid until completion of the work, provision of a Completion
Certificate signed by Contractor and Engineer, submittal of reports and documentation
by Contractor, payment by Owner to Contractor of approved invoices and expiry of
warranty and warranty extensions.
 If Contractor, in Owner’s opinion, fails to demonstrate that he understands the work
requirements or fails to perform the work according to contract requirements and
Indonesian regulations, he may be dismissed from the contract by issue of a letter from
Owner to Contractor, subject to payment for Contractor work performed and approved by
Owner.
 The contract may be extended by mutual agreement of Owner and Contractor.

2. EXTRA WORK (OPTIONAL AND ADDITIONAL)

 Contractor may be requested to perform Extra Work (Optional Work and/or Additional
Work), including supply of materials and provision of services that are extra to, but
consistent with, the scope of the contract and within Contractor’s capabilities.
 Such extra work shall be authorized and performed only under a Contract Work
Instruction (CWI), issued by the Engineer, describing the scope and cost and signed by
Owner and Contractor.
 The cost of extra work may be fixed price, or determined by application of the agreed
contract rates for extra work (refer to Part III), or by other mutually agreed pricing
method.
 Payments to Contractor for extra work shall be based on the agreed CWI and written
acceptance by the Engineer of the completed work.

3. QUALITY ASSURANCE
 The Plant is certified to ISO 9001:2015 (Quality Assurance), ISO 14001:2015
(Environmental Protection), ISO 45001:2018 (Work Health & Safety) and ISO
50001:2011 (Energy Management). Jawa Power and YTL operate to the highest
international standards of quality, health, safety, environmental protection and energy
efficiency. Contractor shall do likewise.

PART IV (REV. 21 JAN 2020) Page 1 of 14

 PART IV PROJECT REQUIREMENTS

 Contractor shall document and maintain a Quality System. Contractor system shall
comply with ISO 9001 or an equivalent standard quality system approved by YTL.
 The Engineer’s Representative will inspect the work and will undertake quality
surveillance as per the applicable Quality System. Deficiencies noted shall be corrected
by Contractor.

4. HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION (HSE)

 Refer to Part IV, Attachment 2, “Special Conditions Re: Health, Safety & Environmental
Protection (HSE)”.
 Contractor shall provide its employees with suitable safety equipment (Personal
Protective Equipment = PPE) including, as a minimum: hard hats, safety shoes and
safety glasses. Contractor’s PPE shall meet international standards. Refer to Part V,
“Site Conditions and General Health & Safety Requirements for Contractors”,
Attachment 1.
 Contractor shall clean the work site daily and at the completion of the work, leave the
work site clean and in environmentally sound condition.
 Contractor shall provide technical data sheets and MSDS for potentially hazardous
products and shall use the products only with approval of YTL. Product containers
provided by Contractor, including those with potentially hazardous materials (paints,
sealants, etc.), shall be removed from Plant site and reused or disposed in an
environmentally sound manner. Containers provided by Owner for Contractor use shall
be taken to the appropriate Plant disposal area as directed by Engineer’s
Representative.

5. ENERGY CONSERVATION & EFFICIENCY

 The Plant is certified to ISO 50001:2011, Energy Management Systems, and is
dedicated to the following:
o Establishing, implementing and maintaining an effective energy management
system.
o Achieving continual improvement in energy efficiency, energy security, and energy
use.
 Suppliers and Contractors providing materials, equipment and services shall
demonstrate in their proposals that they have considered the suitability, safety and
energy efficiency of their offering and shall achieve same in the performance of orders
awarded to them. This includes such methods as energy conservation by insulation,
efficiency of electric motors, reduction in consumption of fuel, etc.
 The overall objectives are to increase energy efficiency, achieve cost savings and to
contribute to environmental protection.

6. CONTRACTOR PERSONNEL
 Contractor shall provide the required number of personnel of suitable skills, experience,
qualifications and, as appropriate, with valid certificates to perform the work. Refer to
Part IV, Attachment 1, regarding personnel general requirements.
 Contractor is bound by Indonesian Law to pay the regional manpower rate (UMR) as a
minimum to all its employees during this contract.

PART IV (REV. 21 JAN 2020) Page 2 of 14

 PART IV PROJECT REQUIREMENTS

 All labour shall be employed under a written contract that complies with Indonesian Law
13/03 and the latest versions of other relevant regulations.
 Copies of working agreements signed by Contractor and its workers shall be available to
Owner within 30 calendar days after contract start date and may be audited by Owner at
any time thereafter.
 Refer to Part IV, Attachments 3 & 4, regarding Contractor compliance with labour laws.

7. CONTRACTOR MATERIALS, TOOLS & EQUIPMENT

 Contractor shall provide materials, tools, equipment and consumables as required to
meet the work requirements. Refer to Part IV, Attachment 1, regarding equipment
general requirements.

8. WORKING HOURS
 The normal working hours at the Plant are 5 days/week (Monday – Friday), and 8 hours/
day (07:00 – 16:00), with one unpaid hour for lunch (12:00 – 13:00).
 Contractor shall work outside these hours only if specified in Contract, such as for
maintenance shutdowns and for urgent work, and subject to written approval from YTL.
 Contractor shall prepare time sheets each day identifying persons working, location of
work, type of work and hours of work. These time sheets shall be submitted daily, or as
otherwise agreed, to Engineer’s Representative for approval and signature.

9. INSURANCE
 Contractor shall maintain insurance, for value as mutually agreed with Owner, during the
contract period. As required, Contractor shall provide a certificate of insurance reflecting
coverage for the following:
o Workman’s Compensation (BPJS):
 Contractor shall provide evidence of BJPS Ketenagakerjaan and BPJS
Kesehatan for its employees in compliance with Indonesian law.
 Contractor shall provide evidence of its good standing with BPJS government
agencies.
o Employer liability.
o Automobile liability.
o Public liability.

10. WARRANTY
 Contractor shall provide warranty of materials and labour for one year after the written
acceptance of the work by the Engineer, unless otherwise stated. The specific warranty
terms shall be stated in Part II, Specification & Scope of Work, “Warranty”.

11. PAYMENT
 Pre-payment (advanced payment) is not applicable, unless otherwise agreed. Refer to
Part II, “Payment Terms”.

PART IV (REV. 21 JAN 2020) Page 3 of 14

 PART IV PROJECT REQUIREMENTS

 Standard payment shall be 30 days from the date of receipt of invoice and relevant
documentation accepted by Owner, including:
o Commercial Invoice.
o VAT Invoice (Faktur Pajak).
o Completion Certificate signed by Engineer or his representative.
o Supporting documentation, as required.
 Similarly, any invoice for agreed progress payment or for termination of the work with
less than 100% completion, shall be accompanied by a Progress or Completion
Certificate signed by the Engineer’s Representative plus other relevant documentation.
 Withholding Tax shall be applied as appropriate. International companies are subject to
20% Withholding Tax on their services (but not materials). This may be reduced or
eliminated depending on the tax treaty between countries subject to Contractor
completion of Tax Clearance Certificate (DGT). See Part IV, Attachment 5. Alternatively,
Contractor shall “gross-up” his offer to include the additional 20% to be withheld.
 Contractor invoice shall be made in the name of Owner at the following address:
PT Jawa Power
Summitmas II, 20th Floor
Jl. Jenderal Sudirman Kav. 61 – 62
Senayan, Kebayoran Baru
Jakarta Selatan 12190, Indonesia

 The invoice and all supporting documents shall be sent to Operator at the following
address:
PT Jawa Power c/o PT YTL Jawa Timur
Jl. Raya Surabaya – Situbondo, Km. 141
Paiton 67291, Probolinggo, Indonesia
Phone: +62-335-773100 / Fax: +62-335-773161 / Email: Finance@ytljt.com
Attention: Financial Services Manager

12. CONTRACT MEETINGS

 To coordinate the work, Contractor may be required to attend the following meetings:
o First Contract Meeting, prior to the start of the work, to review Contractor plans for
work procedure, schedule, organization, quality, HSE, etc.
o Regular Progress Meetings, as required, to review progress, quality, safety, etc.
o Post Contract Meeting to review contract performance.

13. MATERIAL COUNTRY OF ORIGIN

 Contractor shall identify country of origin for materials not originating from USA or
Europe for Owner approval. Owner may request a Certificate of Origin.

14. SUBCONTRACTING
 Contractor shall not sub-contract or otherwise divide the responsibility for performing the
work without the approval of the Owner. For clarity, refer to Part VI, Conditions of
Contract, Item 3.2, Subcontracting.

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 PART IV PROJECT REQUIREMENTS

15. AUDIT
 Owner reserves the right to audit, at any time with sufficient notice, relevant Contractor
documentation and records in order to ensure that Contractor is in compliance with
contract requirements and Indonesian regulations.
 Owner shall review and request evidence from Contractor of Contractor compliance with
labour law, government regulations and contract requirements, including payments of
VAT, wages, benefits and allowances and other relevant matters. Contractor
documentation to be reviewed includes sales tax records, BPJS records, employee
contracts, employee payment records, VAT and Withholding Tax payments, and other
documents relevant to the contract.

PART IV (REV. 21 JAN 2020) Page 5 of 14

 ATTACHMENTS TO PART IV PROJECT REQUIREMENTS

ATTACHMENT 1
GENERAL REQUIREMENTS FOR PERFORMANCE OF CONTRACTOR WORK

 Contractor shall provide work plan, schedule, HSE procedures and other relevant
documentation for Owner approval before starting the work.
 Contractor may perform similar services at any location within the Plant as requested by
Owner, subject to agreed price and schedule.
 Within the contract fee, Contractor shall provide administration of the contract. This
includes communication between YTL and Contractor, progress meetings and reports,
reporting personnel absence and their replacement, submitting workers time sheets
including overtime, contact for emergency requirements, safety, communications with
Contractor main office, maintaining the office provided at site by Owner, etc.
 Contractor shall provide qualified supervision, personnel, equipment, tools,
consumables, services and support as required to perform the work, in accordance with
the required standards and within the approved schedule.
 Contractor Equipment and Tools:
o Contractor shall provide equipment and tools to meet work requirements and subject
to Owner approval.
o Contractor shall identify clearly its tools and equipment. These shall be in good
condition and fit for purpose.
o Contractor equipment and tools shall be calibrated, as applicable and valid
calibration certificates shall be provided as required.
o Contractor Electrical Equipment shall be registered with the Engineer’s
Representative, shall have passed a Portable Electric Tools and Equipment (PETE)
Test and shall be suitably tagged before use is allowed on site.
 Contractor Personnel:
o Contractor shall provide the required number of qualified personnel to perform the
work. Personnel shall be government certified, as required for the work (welder, etc.)
and for the work conditions (diving, heights, etc.).
o Engineer shall have right to reject Contractor personnel if they are considered to be
unable to perform the work. Contractor shall be responsible for providing an acceptable
replacement as soon as possible. Where Contractor personnel have been rejected,
payment to Contractor shall be stopped until an acceptable replacement commences
work.
o Contractor shall provide qualified and experienced supervision for its personnel,
responsible for organizing the work, ensuring the safety of Contractor personnel and
reporting to YTL. Owner shall have the authority to direct Contractor Supervisor to
stop or to perform certain work due to consideration of urgency, quality, safety, health
and environmental protection, etc.
o Contractor personnel shall wear appropriate Contractor uniform.
o Contractor shall provide its employees with suitable safety clothing and equipment
(Personal Protective Equipment = PPE) including, as a minimum, hard hats, safety
shoes, safety glasses plus gloves, dust masks, etc., as required.
o Personnel on sick leave or vacation shall be replaced at no additional cost to Owner,
unless otherwise agreed.

PART IV (REV. 21 JAN 2020) Page 6 of 14

 ATTACHMENTS TO PART IV PROJECT REQUIREMENTS

o Contractor shall give preference to personnel from the Paiton, Probolinggo area. This
is subject to these persons meeting reasonable standards for skills, qualifications and
experience.
 Contractor shall comply with the labour laws of Indonesia, the requirements of this
contract and good labour practice. Refer to Part IV, Attachments 3 & 4.
 Contractor shall observe health, safety and environmental protection practices. See Part
IV, Attachment 2, below.
 Contractor shall maintain clean and safe working conditions at all times and shall
dispose of all waste and hazardous materials prior to acceptance of the work by the
Engineer.

PART IV (REV. 21 JAN 2020) Page 7 of 14

 ATTACHMENTS TO PART IV PROJECT REQUIREMENTS

ATTACHMENT 2
SPECIAL CONDITIONS RE: HEALTH, SAFETY & ENVIRONMENTAL PROTECTION
(HSE)

 Prior to start of work, each Contractor employee shall receive Site Safety Induction
presented by YTL, plus Plant access pass subject to YTL approval. Contractor shall pay
a refundable fee for each person’s access pass.
 Contractor shall comply with Plant HSE procedures as provided by Engineer’s
Representative, plus the relevant HSE requirements of the contract, government
regulations and good industry practice.
 Contractor shall provide his personnel with standard personal protective equipment
(PPE) and other appropriate safety equipment.
 Contractor shall provide personnel certified and experienced to perform the work safely.
 Contractor shall perform the work only with the required Permit for Work issued by YTL.
 Contractor shall perform the work while Plant equipment is operating and shall comply
with Permit for Work and associated safety documents in order to provide a safe working
environment and to prevent interference with the operating facilities.
 Contractor may interface with Plant electrical system and shall comply with Permit for
Work and requisite Plant procedures.
 Contractor may use scaffolding and shall comply with Permit for Work and requisite Plant
procedures.
 Contractor may handle heavy loads and shall comply with Permit for Work and requisite
Plant procedures.
 Contractor may work at heights and shall comply with Permit for Work and requisite
Plant procedures.
 Contractor may work on/near the water and shall comply with Permit for Work and
requisite Plant procedures.

PART IV (REV. 21 JAN 2020) Page 8 of 14

 ATTACHMENTS TO PART IV PROJECT REQUIREMENTS

ATTACHMENT 3
CONTRACTOR COMPLIANCE WITH INDONESIAN LABOUR LAWS

1. INTRODUCTION
In the provision of services under this contract Contractor shall comply with the following with
regard to its performance of the required services and its administration of its workers:
 The labour laws of Indonesia.
 The labour requirements of this contract.
 Good labour practice.

2. CONTRACTOR COMPLIANCE WITH THE LABOUR LAWS OF INDONESIA

 Contractor shall comply with the applicable labour laws of Indonesia including but not
limited to Law 13/2003, specifically Articles 64 – 66, attached, and any relevant
successor laws and regulations.
 Contractor company shall be registered with government as a “PT” or “Cooperative”.
 Contractor shall provide BPJS coverage for its employees in compliance with Indonesian
law.
 Contractor shall provide evidence of its good standing with the respective government
agencies.
 Each of Contractor workers shall be employed under a written agreement between
Contractor and the employee that complies with Indonesian Law 13/2003 and other
relevant government labour regulations.
 Contractor is bound by Indonesian Law to pay the regional manpower rate (UMR), as a
minimum, to its employees employed under this contract. Contractor shall pay its
employees those wages and allowances that comply with the requirements of the law.

3. GOOD LABOR PRACTICE

 Copies of working agreements signed between Contractor and each worker shall be
available to Owner within 30 calendar days after contract start date.
 Owner may review and request evidence from Contractor of Contractor compliance with
labour law, government regulations and contract requirements, including payments of
VAT, wages, benefits and allowances and other relevant matters. Contractor
documentation to be reviewed includes sales tax records, BPJS records, employee
contracts, employee payment records, VAT and Withholding Tax payments, and other
documents relevant to this contract.
 Contractor shall pay its employees those fees and allowances due to workers and paid
by Owner to Contractor as a cost of this contract, including Annual Leave Allowance,
Termination Allowance, etc.

4. DISMISSAL
 Failure to comply with the above shall be cause for dismissal of Contractor from the
contract.

PART IV (REV. 21 JAN 2020) Page 9 of 14

 ATTACHMENTS TO PART IV PROJECT REQUIREMENTS
ATTACHMENT 4
INDONESIAN LABOR LAW 13/2003: ARTICLES 64-66
Article 64
The company may subcontract some of
work implementation to other company
through a working contract agreement or
provisions of worker/labour service in
writing.
Article 65
(1) Transferring some of work
implementation to the other company
shall be carried out through a written
working contract agreement.
(2) The work, which may be transferred to
other company as, meant in paragraph
(1) have to fulfil the following conditions:
a. conducted separately from the main
activity;
b. conducted under direct or indirect
order from employer
c. representing activity supporting the
company as a whole; and
d. does not directly inflict the production
process.
(3) Other company as meant in paragraph
(1) have to in the form of legal entity.
(4) Work protection and conditions for
worker/labour at other company as
meant in paragraph (2) shall be at least
equal to the work protection and
conditions at the company of work
provider or according to the prevailing
law and regulation.
PART IV (REV. 21 JAN 2020)
Pasal 64
Perusahaan dapat menyerahkan sebagian
pelaksanaan pekerjaan kepada perusahaan
lainnya melalui perjanjian pemborongan
pekerjaan atau penyediaan jasa pekerja/
buruh yang dibuat secara tertulis.
Pasal 65
(1) Penyerahan sebagian pelaksanaan
pekerjaan kepada perusahaan lain
dilaksanakan melalui perjanjian pem
borongan pekerjaan yang dibuat secara
tertulis.
(2) Pekerjaan yang dapat diserahkan
kepada perusahaan lain sebagaimana
dimaksud dalam ayat (1) harus
memenuhi syarat-syarat sebagai berikut:
a. dilakukan secara terpisah dari
kegiatan utama;
b. dilakukan dengan perintah langsung
atau tidak langsung dari pemberi
pekerjaan;
c. merupakan kegiatan penunjang
perusahaan secara keseluruhan; dan
d. tidak menghambat proses produksi
secara langsung.
(3) Perusahaan lain sebagaimana dimaksud
dalam ayat (1) harus berbentuk badan
hukum.
(4) Perlindungan kerja dan syarat-syarat
kerja bagi pekerja/buruh pada
perusahaan lain sebagaimana dimaksud
dalam ayat (2) sekurang-kurangnya
sama dengan perlindungan kerja dan
syarat-syarat kerja pada perusahaan
pemberi pekerjaan atau sesuai dengan
peraturan perundang-undangan yang
berlaku.
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 ATTACHMENTS TO PART IV PROJECT REQUIREMENTS
(5) Changes and/or additions of the
conditions as meant in paragraph (2)
shall be furthermore regulated based on
Decree of the Minister.
(6) Working relation in the work
implementation as meant in paragraph
(1) shall be regulated based on Working
Agreement in writing between other
company and the employed
worker/labour.
(7) Working relation as meant in paragraph
(6) may be based to Indefinite Working
Agreement or Definite Working
Agreement if it has fulfilled the conditions
as meant in Article 59.
(8) In the case of provision as meant in
paragraph (2), and paragraph (3), are
not fulfilled, then for the sake of working
relation status of worker/labour with the
Contractor shall changed to be the
working relation of worker/labour with the
Employer.
(9) In the case of working relationship is
changed over to the Employer agent as
meant in paragraph (8), then the working
relation of worker/labour with the
employer shall become according to the
working relation as meant in paragraph
(7).
Article 66
(1) Worker/labour of the employer agent
shall not be used by employer to carry
out basic activity or activity directly
corresponding with production process,
except for the supporting service activity
or activity which does not directly
correlated to the production process.
(2) Worker/labour agent for the supporting
service activity or activity which are not
directly correlated to production process
have to meet the standard as follows:
PART IV (REV. 21 JAN 2020)
(5) Perubahan dan/atau penambahan
syarat-syarat sebagaimana dimaksud
dalam ayat (2) diatur lebih lanjut dengan
Keputusan Menteri.
(6) Hubungan kerja dalam pelaksanaan
pekerjaan sebagaimana dimaksud dalam
ayat (1) diatur dalam perjanjian kerja
secara tertulis antara perusahaan lain
dan pekerja/buruh yang dipekerjakannya.
(7) Hubungan kerja sebagaimana dimaksud
dalam ayat (6) dapat didasarkan atas
perjanjian kerja waktu tidak tertentu atau
perjanjian kerja waktu tertentu apabila
memenuhi persyaratan sebagaimana
dimaksud dalam Pasal 59.
(8) Dalam hal ketentuan sebagaimana
dimaksud dalam ayat (2) dan ayat (3)
tidak terpenuhi, maka demi hukum status
hubungan kerja pekerja/buruh dengan
perusahaan penerima pemborongan
beralih menjadi hubungan kerja pekerja/
buruh dengan perusahaan pemberi
pekerjaan.
(9) Dalam hal hubungan kerja beralih ke
perusahaan pemberi pekerjaan
sebagaimana dimaksud dalam ayat (8),
maka hubungan kerja pekerja/buruh
dengan pemberi pekerjaan sesuai
dengan hubungan kerja sebagaimana
dimaksud dalam ayat (7).
Pasal 66
(1) Pekerja/buruh dari perusahaan penyedia
jasa pekerja/buruh tidak boleh digunakan
oleh pemberi kerja untuk melaksanakan
kegiatan pokok atau kegiatan yang
berhubungan langsung dengan proses
produksi, kecuali untuk kegiatan jasa
penunjang atau kegiatan yang tidak
berhubungan langsung dengan proses
produksi.
(2) Penyedia jasa pekerja/buruh untuk
kegiatan jasa penunjang atau kegiatan
yang tidak berhubungan lang-sung
dengan proses produksi harus memenuhi
syarat sebagai berikut:
Page 11 of 14
 ATTACHMENTS TO PART IV PROJECT REQUIREMENTS
a. existence of working relation
between worker/labour and the
worker/labour service agent;
b. Working Agreement which is
effective for working relation as
meant in letter a is Definite Working
Agreement which fulfil conditions as
meant in Article 59 and/or Indefinite
Working Agreement which is made in
writing and signed by both parties;
c. protection of wage and prosperity,
working conditions, and dispute
arising out become responsibility the
worker/labour service agent; and
d. agreement between the
worker/labour service users and
other company acting as the worker/
labour service agent in writing and
must contain the Article as meant in
this law.
(3) Worker/labour service agent shall be in
the form of incorporated business and
have the permit/license from the
institution in charge of manpower area.
(4) In the case of provision as meant in
paragraph (1), paragraph (2) letter a, b
letter, and d and also paragraph (3) have
not been fulfilled, then for the sake of
working relation status between
Worker/labour and the worker/labour
service agent shall change to be working
relationship between worker/labour and
the employer agent.
PART IV (REV. 21 JAN 2020)
a. adanya hubungan kerja antara
pekerja/buruh dan perusahaan
penyedia jasa pekerja/buruh;
b. perjanjian kerja yang berlaku dalam
hubungan kerja sebagaimana
dimaksud pada huruf a adalah
perjanjian kerja untuk waktu tertentu
yang memenuhi persyaratan
sebagaimana dimaksud dalam Pasal
59 dan/atau perjanjian kerja waktu
tidak tertentu yang dibuat secara
tertulis dan ditandatangani oleh
kedua belah pihak;
c. perlindungan upah dan
kesejahteraan, syarat-syarat kerja,
serta perselisihan yang timbul
menjadi tanggung jawab perusahaan
penyedia jasa pekerja/buruh; dan
d. perjanjian antara perusahaan
pengguna jasa pekerja/buruh dan
perusahaan lain yang bertindak
sebagai perusahaan penyedia jasa
pekerja/buruh dibuat secara tertulis
dan wajib memuat pasal-pasal
sebagaimana dimaksud dalam
undang-undang ini.
(3) Penyedia jasa pekerja/buruh merupakan
bentuk usaha yang berbadan hukum dan
memiliki izin dari instansi yang
bertanggung jawab di bidang
ketenagakerjaan.
(4) Dalam hal ketentuan sebagaimana
dimaksud dalam ayat (1), ayat (2) huruf
a, huruf b, dan huruf d serta ayat (3) tidak
terpenuhi, maka demi hukum status
hubungan kerja antara pekerja/buruh dan
perusahaan penyedia jasa pekerja/buruh
beralih menjadi hubungan kerja antara
pekerja/buruh dan perusahaan pemberi
pekerjaan.
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 ATTACHMENTS TO PART IV PROJECT REQUIREMENTS

ATTACHMENT 5
INDONESIAN WITHHOLDING TAX (WHT) FOR FOREIGN COMPANIES
PROVIDING SERVICES TO INDONESIAN COMPANIES

 According to Indonesia Tax Law No. 61, effective January 1, 2010 (revised 2018),
service performed either within or outside Indonesia by a foreign entity (company or
other) on behalf of an Indonesian client is subject to withholding tax of 20% of the value
of the service. The supply of materials is excluded.
 However, if there is a Double Taxation Agreement between Indonesia and the home
country of the foreign entity, Contractor may have a reduced WHT per the provisions of
the Agreement, including the possibility of zero WHT.
 International service contractors may receive the exemption or reduction from WHT by
the following:
o Properly completing the Indonesian government DGT form (with Owner assistance).
o Providing verification (Certificate of Residence, COR) from Contractor home country
tax office that Contractor is a valid company in good standing. This is done by a
proper home tax office signature and stamp on Page 1 of the DGT form or a separate
signed and stamped letter from the home tax office.
o Providing the originals of the DGT and COR no later than with Contractor invoice.
 Thus, by entering into this contract, Contractor acknowledges that either Contractor shall
be subject to 20% withheld from the contract price for services or Contractor shall
provide the completed DGT plus verification from Contractor home tax office.
 Owner shall issue the Indonesian WHT (DGT) Form to Contractor in order to apply for
reduced WHT. To apply for a lower rate of withholding tax, Contractor shall meet the
following requirements:
o It shall not be otherwise subject to tax within Indonesia.
o It shall complete and sign the required DGT Form and meet all the administrative
requirements stated in the DGT Form.
o It shall obtain the signed and stamped approval by the Tax Authority of its country or
obtain a letter of good standing from its tax office.
o The transaction shall not be an abuse of the Double Taxation Agreement and shall
conform to the following:
 The transaction shall not be performed by using structures/schemes in such a
way that the intention is solely to benefit from the Double Taxation Agreement.
 The foreign recipient of income shall be the actual beneficial owner of the
economic benefits of the income.
 The foreign contractor shall not meet any one of these criteria:
o Has an address in Indonesia.
o Has a permanent establishment in Indonesia.
o Has a residence in Indonesia.
o Has a company registration, management office or headquarters in Indonesia.

PART IV (REV. 21 JAN 2020) Page 13 of 14

 ATTACHMENTS TO PART IV PROJECT REQUIREMENTS

 Page 2 of the DGT shall be signed by an authorized person of the Contractor, such as
the Financial Services Manager. Page 2 shall be completed for each invoice submitted.
Also:
o Sign Page 1, Part II, item 8
o Sign at bottom left of Page 2, Part VI, item 44
o Sign at bottom left of Page 3, Part VIII, item 65
 Page 1, Part III shall be certified (signed & stamped) by the Tax Office of the foreign
entity and is valid during the calendar year of certification
 In lieu of certifying the DGT Form, the Tax Office may issue a letter, signed & stamped,
affirming the entity’s good tax standing in the foreign country.
 The original of the completed DGT Form shall be received by Owner before payment is
made, preferably with the invoice.
 Failure to provide the original certificate shall result in the application of the withholding
tax.

PART IV (REV. 21 JAN 2020) Page 14 of 14

 PART V SITE CONDITIONS
AND GENERAL HEALTH & SAFETY CONDITIONS FOR CONTRACTORS

1. INTRODUCTION
1.1 The requirements of this Section shall, as relevant, apply to all Contractors engaged
by PT Jawa Power (“Owner”) and PT YTL Jawa Timur (“Operator”) at the Paiton II
Power Station (“Site”) and the Operator Housing Complex (OHC).
1.2 The Site is deemed to be the area bounded by the fences surrounding the property
known as Paiton II Power Station and includes the boundaries, structures, jetty, coal
yard and conveyor plant, power station complex, ash disposal area, offices,
workshops, warehouses, and any additional facilities owned and maintained by the
Owner.
1.3 The OHC is the area bounded by the fences surrounding the property known as the
Operator Housing Complex and includes all facilities therein such as houses,
structures, installations, services and equipment.
1.4 The Owner of the site and OHC is PT Jawa Power and the Operator is PT YTL Jawa
Timur.
1.5 The location on the Site or OHC where Contractor shall undertake the work shall be
described as Contractor Work Area.

2. CONTRACTOR RESPONSIBILITIES
2.1 Contractor, his personnel and his sub-contractors shall comply with the instructions in
this section as part of the contract requirements.
2.2 It is Contractor responsibility to ensure that the health and safety of its own personnel
and subcontractors and the health and safety of other persons on the Site and OHC
are not compromised in the execution of the work.

3. SITE SAFETY INDUCTION TRAINING

3.1 Contractor personnel and any of his approved subcontractors shall attend a Site
Safety Induction Course provided by Operator. It is mandatory that all contractor
personnel successfully undertake the site safety induction course in order to receive
a site access pass for access to the site. The course will take approximately 2 hours.
3.2 Attendees at site safety induction courses shall submit a completed application form
with two (2 cm x 3 cm) photographs of themselves and a photocopy of the KTP or
passport (for expats). Attendees are also required to bring personal protective
equipment (PPE) consisting of, as a minimum, hard hat, safety footwear and safety
glasses (not goggles).
3.3 As deemed necessary by the engineer’s representative, contractor supervisors may
be required to undertake nominated competent person training, and nominated
competent supervisor training under the site safety rules. Contractor supervisors
shall successfully complete this training before they can undertake these roles. The
purpose is to allow contractor to obtain and implement a permit for work. The training
takes approximately one day.

4. ACCESS TO SITE
4.1 Access to site and OHC is through the respective main security gates only. All
personnel entering site must surrender their site access pass and will be issued with
a numbered main site pass.

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 PART V SITE CONDITIONS
AND GENERAL HEALTH & SAFETY CONDITIONS FOR CONTRACTORS

4.2 Contractor vehicles that are required to go on the main plant site shall obtain and
display the appropriate security pass. All vehicles may be searched when either
entering or leaving site.
4.3 Contractor employees shall obey speed limits, signs and notices when driving on the
Site or in the OHC.
4.4 Contractor’s employees are only permitted to be in areas for the purpose of
undertaking the contract work.
4.5 With the exception of reasonable access to and from the place of work, all other
areas are prohibited.
4.6 Contractor employees shall not interfere with any plant or equipment on site unless
authorised by the Engineer’s Representative.
4.7 Site access during the work shall only be granted to Contractor personnel and sub-
contractors that have successfully undertaken the Site Safety Induction Training,
possess a valid Site Access Pass, have the appropriate PPE and are required on
Site to undertake the Work.

5. WORK CONTROL AND SAFETY RULES

5.1 All work performed on site shall be administered using the Site work control system
and the Site safety rules as defined in the appropriate Paiton Management
Instructions (PMI) and Paiton Implementation Procedures (PIP).
5.2 If the contract work specifies that Contractor employees are required to receive and
clear Permits for Work under Site Safety Rules as Competent Persons CP), these
employees shall attend a training course after which they will be formally nominated
to receive safety documents. Refer to Item 3.3, above.
5.3 The Engineer’s Representative and the YTL Section Head of Safety have the right to
stop work at any time if, in their opinion, the activities involve a risk of serious injury
to any person.
5.4 The Operator’s employees also have a right to stop work at any time if they believe
there is an immediate risk of serious injury to any person or damage to the facilities.

6. METHOD STATEMENTS
6.1 Contractor shall prepare and submit written Method Statements to the Engineer’s
Representative for approval of the work as specified in the contract. Contractor shall
ensure that the Method Statements are prepared using adequate information on
hazardous elements of the proposed work and shall detail the methods, tasks,
actions, procedures and responsibilities to ensure the work is undertaken safely.
6.2 Contractor shall ensure that his personnel and any sub-contractors undertake the
work using the approved Method Statements.
6.3 Where the Engineer’s Representative has advised Contractor that the work is being
performed in an unsafe and dangerous manner or that the Method Statements are
inadequate, Contractor shall revise the Method Statements and resubmit them to the
Engineer’s Representative for approval as soon as possible. Work shall not resume
until the Engineer’s Representative has granted approval of the revised Method
Statements.

PART V (REV. 21 JAN 2020) Page 2 of 12

 PART V SITE CONDITIONS
AND GENERAL HEALTH & SAFETY CONDITIONS FOR CONTRACTORS

7. PERSONAL PROTECTIVE EQUIPMENT

7.1 Contractor shall provide all required Personal Protective Equipment (PPE) to its
employees. This includes the mandatory requirements for Paiton II site (Hard Hat,
Safety Glasses and Safety Shoes) and hearing protection for designated buildings.
In addition, Contractor shall supply his personnel with all other PPE requirements, as
required and described in the Contract. Refer to Attachment 1.
7.2 Contractor shall provide all required Personal Protective Equipment (PPE) to its
employees. This includes the mandatory requirements for Paiton II site (Hard Hat,
Safety Glasses and Safety Shoes) and hearing protection for designated buildings.
In addition, Contractor shall supply his personnel with all other PPE requirements, as
required and described in the Contract. Refer to Attachment 1.
7.3 Contractor Personnel shall wear appropriate PPE at all times on Site in the
designated areas. In addition, Contractor shall provide suitable working apparel
(preferably overalls or coveralls) to protect and identify Contractor personnel and
shall ensure his subcontractors wear appropriate apparel.
7.4 For the OHC, PPE requirements will be as specified in the contract, if other than
above.

8. VEHICLES, MOBILE PLANT AND MACHINERY

8.1 Contractor vehicle access to site shall be limited to those vehicles and mobile plant
that are necessary for undertaking the work.
8.2 All vehicles and mobile plant shall be subject to inspection by the Engineer’s
Representative for safety, suitability and condition. Where vehicles and mobile plant
are considered to be unsafe, unsuitable and or in poor condition, they may be
refused entry to the Site. Vehicles may also be searched by Site security personnel
at any time.
8.3 Contractor shall apply for and receive a Vehicle Site Pass from the Engineer’s
Representative for all vehicles and mobile plant used on Site before site access will
be granted. All Vehicle Site Pass applications shall be supported by a copy of the
vehicle STNK document and signed by the Engineer’s Representative. Vehicles and
mobile plant shall have valid insurance and be driven by personnel with valid driver's
licenses.
8.4 Motorcycles are not permitted on Site, except at approved parking locations. All
dangerous parts of machinery, including drive belts, pulleys, etc. shall be effectively
guarded to prevent contact by any person.
8.5 No machinery, mobile plant and vehicles shall be left running unattended.
8.6 All mobile cranes brought to Site shall have a crane driver trained and certified in that
specific type and size of crane. The crane shall have either an automatic safe load
indicator, or a radius load chart with a working angle indicator. The crane must also
have a top limit switch fitted and in working order. A Method Statement shall be
required for all mobile crane operations. Refer to PMI/H&S/300.
8.7 Vehicles and mobile plant shall be parked/set up at agreed positions and only moved
on/off Site via designated routes.

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 PART V SITE CONDITIONS
AND GENERAL HEALTH & SAFETY CONDITIONS FOR CONTRACTORS

9. TOOLS AND EQUIPMENT

9.1 Contractor shall provide his personnel and sub-contractors with all necessary tools
and equipment to complete the work or otherwise specified. Contractor’s tools and
equipment shall be clearly identified, maintained in good condition, fit for purpose and
used only for the intended purpose.
9.2 Where Owner tools are required to undertake the work, they shall be provided by the
Engineer’s Representative on a loan-and-return basis to Contractor personnel and
sub-contractors.
9.3 Engineer’s Representative may request Contractor to cease immediately the use of
tools and or equipment that are considered unsafe. Where tools and equipment are
deemed unsafe, Contractor shall remove, repair or replace the tools and or
equipment as soon as possible.
9.4 Contractor lifting tackle shall comply with Indonesian regulations in respect of the
examination, test and maintenance records required. Contractor shall ensure that the
equipment and records are submitted to the Engineer’s Representative for the
Contract before the equipment is used on site. This shall include proof of examination
in the previous six months by an authority certified by Depnaker for performing such
examinations. All lifting equipment shall be permanently and uniquely identified in
accordance with the certification. Further guidance may be obtained from the
relevant legislation and from PMI ENG 410 - Management of Lifting Tackle.
9.5 Contractor shall ensure that all gas cylinders for cutting and welding are fitted with
suitable Flashback Arresters and that all fittings associated with such gas cylinders
are in good condition and fit for purpose.

10. ELECTRICAL TOOLS AND EQUIPMENT

10.1 Contractor shall obtain the approval of the Engineer’s Representative to use any
electrical equipment at the site.
10.2 Portable Electric Tools and Equipment shall be double pole switched and generally
shall be of the Very Low Voltage type (less than 110V AC). Contractor transformers
shall have the centre point of the secondary winding connected to Earth. Contractor
portable lights shall be of no more than 25 V and shall be provided with transformers.
10.3 Alternatively, if it is not possible for portable tools and equipment to operate at Very
Low Voltage and they are operated at 220-240 VAC, then protection by a Residual
Current Device (RCD) shall be provided. RCD's shall be regularly tested to ensure
correct operation and shall be provided with a test system for easy testing.
10.4 All leads, plugs and sockets supplied by Contractor shall be in good condition and
shall be correctly fitted and of the correct type.
10.5 Contractor Electrical Tools and Equipment shall be registered with the Engineer’s
Representative, and shall have passed a Portable Electric Tools and Equipment Test
(PETE Test) and shall be suitably tagged before use is allowed on site. If Contractor
has undertaken the testing himself or via a third party inspector, the inspection
records shall be made available for audit by the Engineer’s Representative. Testing
shall be carried out according to PMI/ENG/430 - Portable Electric Tools and
Equipment (PETE). Contractor Electric Tools and Equipment shall be tested every
three months or as requested by the Engineer's Representative.
10.6 Work in wet or damp areas shall require approval from the Engineer’s Representative
that Contractor Work Area is safe before work is undertaken.

PART V (REV. 21 JAN 2020) Page 4 of 12

 PART V SITE CONDITIONS
AND GENERAL HEALTH & SAFETY CONDITIONS FOR CONTRACTORS

10.7 Electric tools and equipment that are not in use shall be unplugged and the cables
tidied to ensure no tripping hazards.
10.8 If a fuse blows or an RDC is tripped, Contractor shall investigate the reason and
report the incident to the Engineer’s Representative. If the problem is repeated,
Contractor personnel shall cease work using the tools and equipment and Contractor
Supervisor shall request an electrician to attend and repair the fault.
10.9 Contractor electric tools or equipment that malfunctions shall be switched off and
disconnected as soon as possible. Contractor supervisor shall notify the Engineer’s
Representative immediately. The faulty equipment shall not be used until it has been
repaired, re-tested and approved for use under the rules for PETE, above.

11. CONTRACTOR WORK AREA

11.1 Contractor shall ensure his personnel keep Contractor work area clean, tidy and
safe. Loose materials, rubbish, tools and equipment placed around the work site are
a major hazard to safety and shall be kept to a minimum. All cables, hoses and ropes
shall be placed so as to reduce the risk of tripping hazards and shall be removed
when not required.
11.2 Contractor shall ensure that dangerous parts of machinery, including drive belts,
pulleys, linkages, high temperature components, sharp edges, rotating items and
devices that operate automatically are effectively guarded to prevent contact by any
person. No machinery, mobile plant and vehicles shall be left running unattended.
11.3 No cover or floor grating shall be removed without the permission of the Engineer’s
Representative and where this is done sufficient barriers shall be erected to ensure
the safety of all personnel and passersby. Contractor shall ensure that removed
cover or floor grating is reinstalled as soon as possible and shall not leave this area
unattended. The Engineer’s Representative shall inspect the reinstated cover and
grate and only after his approval shall Contractor remove the safety barrier. No
exposed holes shall be left unattended at any time unless a fence can be erected
strong enough to prevent a person falling into the hole.
11.4 On completion of the Contract Work, all covers must be refitted.
11.5 Work areas shall be cleaned after completion of the work and restored to the initial
condition. The Engineer’s Representative will confirm acceptance of the final
conditions.
11.6 The Engineer’s Representative will inform Contractor of arrangements for disposal of
waste materials.
11.7 Where Contractor is required to perform welding, he shall be responsible for ensuring
that adequate screens are provided and maintained to protect passersby from the
electric arc and also from spatter produced by the welding process.
11.8 Contractor shall ensure that welding earth returns are attached close to the point of
welding to prevent stray currents causing damage to rotating machinery.

12. SUPERVISION
12.1 Contractor Supervisor shall ensure that Contractor work area on the site is safe for
Contractor personnel and sub-contractors and other personnel prior to work starting.
Contractor Supervisor shall be responsible for the safety of Contractor personnel,
sub-contractors and any other personnel in Contractor work area and shall ensure

PART V (REV. 21 JAN 2020) Page 5 of 12

 PART V SITE CONDITIONS
AND GENERAL HEALTH & SAFETY CONDITIONS FOR CONTRACTORS

that all aspects of the work is undertaken safely and to the requirements of this
section.
12.2 Contractor Supervisor shall regularly meet with the Engineer’s Representative to
monitor and review the Health and Safety, Progress and Quality of the work.

13. SITE EMERGENCY

13.1 Contractor Supervisor shall immediately notify of all accidents involving Contractor
employees and subcontractor employees, both to the Engineer’s Representative and
Contractor. He shall provide assistance to the Engineer’s Representative in any
subsequent investigation.
13.2 If Contractor, his personnel and or his sub-contractors, are involved in an accident,
emergency or other event that threatens the safety of personnel and or plant,
Contractor, Contractor’s Supervisor or any of his personnel or sub-contractors shall
contact Tel. 4444 as soon as possible. A Site Emergency maybe declared if
necessary.
13.3 The nature of the incident, the location, the damage and/ or injuries sustained and
any other relevant information shall be supplied by Contractor Supervisor.
13.4 In the event an evacuation alarm is sounded, Contractor Supervisor shall assemble
Contractor personnel and subcontractors at the designated Assembly Point as soon
as possible. The Supervisor shall report to the Engineer’s Representative and advise
if all Contractor personnel and subcontractors have been accounted for and if
personnel are missing. Contractor personnel and subcontractors shall remain at the
Assembly Point until instructed otherwise by the Engineer’s Representative.
13.5 The Site Clinic (First Aid Facility) is located in the Administration Area behind the
Main and Technical Offices.

14. SITE GENERAL RULES

14.1 If Contractor fails to undertake the work to the satisfaction of the Engineer, default
proceedings as defined in the contract may be applicable.
14.2 Photography, videotaping or any other form of image taking shall be permitted at the
Site only under the permission of the Engineer and the control of the Engineer’s
Representative.
14.3 The minimum age for employment on site shall be 17 years of age.
14.4 The Site has been designated as a non-smoking area and smoking is only permitted
in designated smoking areas. Contractor shall ensure that his personnel and sub-
contractors abide by the non-smoking regulations. Personnel who persist in smoking
in non-designated areas may have their site access revoked.
14.5 Rules for access to site are posted at the main plant security gate, including:
 All persons must wear standard helmet, safety footwear and safety glasses.
 Site access pass must be shown to Security.
 All vehicles entering/leaving site may be searched and must clearly display a
vehicle site pass.
 Motorcycles are not permitted on site except at specified parking areas outside
the Main Plant.
 There is no access for mobile cranes without permission from YTL.

PART V (REV. 21 JAN 2020) Page 6 of 12

 PART V SITE CONDITIONS
AND GENERAL HEALTH & SAFETY CONDITIONS FOR CONTRACTORS

 Smoking is prohibited (see above).

 Weapons are prohibited.
 Photographing is prohibited.

15. SITE SERVICES

15.1 220 V and 415 V power supply outlet sockets are available in various locations. For
location of specific connections Contractor shall request a Site visit.
15.2 Compressed air outlets at approximately 8 bar are available in various locations, but
spare capacity of the compressor is limited. Thus, if a large demand of air is needed
then Contractor shall be required to supply his own compressor.
15.3 Contractor Car Park is available to the north of the Main Office.
15.4 Contractor use of the Workshop at Site may proceed only after approval from the
Engineer’s Representative.
15.5 Praying, toilets and hand wash facilities are available on the ground floor west of Unit
6 boiler.
15.5 On-site tools and material storage and office accommodation areas are generally not
available for Contractor use.
15.7 Contractor is recommended to arrange his own temporary site establishment for the
duration of the Contract. Contractor site establishment shall be located in an area
that is approved by the Engineer and shall include the minimum facilities and
equipment that Contractor requires undertaking the work.
15.8 If, however, Contractor has a need that he cannot address himself with his own
temporary site establishment, formal application in writing at the time of tendering is
required. Prior written approval from the Engineer is required before use of any
offices, workshops or facilities shall be granted.

16. ENVIRONMENTAL PROTECTION

16.1 Contractors and their subcontractors are required to ensure their activities are
performed in such a manner as to minimise any negative impact on the environment,
and to cooperate and assist with the implementation of the Site Environmental Policy.
Refer to PMI-ENV-010.
16.2 Engineer’s Representative will inform Contractor of arrangements for disposal of
waste materials. Generally this will mean using the existing rubbish bins at
designated locations.
16.3 Contractor shall ensure that rubbish and waste materials are placed in designated
waste bins or locations and never thrown into the sea, cooling water canals or
drainage ditches.

17. HAZARDOUS MATERIALS AND MATERIAL SAFETY DATA SHEETS (MSDS)

17.1 Contractor shall provide a Material Safety Data Sheet (MSDS) for all chemicals,
lubricants, glues, cleaning fluids and other potentially hazardous substances that
Contractor intends to use in the performance of the work. No material shall be
permitted on site unless the Engineer’s Representative, in conjunction with the
Nominated Hazardous Substances Officer, has given prior approval.

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 PART V SITE CONDITIONS
AND GENERAL HEALTH & SAFETY CONDITIONS FOR CONTRACTORS

17.2 Contractor shall follow the requirements for storage, handling and disposal of
materials as set by the Engineer's Representative in conjunction with the Site
Hazardous Substances Officer.
17.3 Any material found on site that does not have a MSDS and or has not otherwise
been approved shall be removed immediately by Contractor until approval has been
granted.

18. DISPOSAL OF HAZARDOUS AND NON-HAZARDOUS WASTE

18.1 Contractor shall be responsible for the correct disposal of all waste generated in
undertaking the work. Hazardous Waste (B3 waste) is a waste containing toxic and
hazardous substances, which may, directly or indirectly, damage and or contaminate
the environment and or endanger human life or health.
18.2 Contractor shall analyse any waste generated by his work to identify and determine
whether the waste is to be categorised as B3 or not, based on the B3 waste table
listed in Government Regulation PP/85 of 1999 concerning B3 waste management.
Engineer’s Representative and the Hazardous Substances Officer shall have the
right to review Contractor waste management and to recommend improvements and
changes to ensure compliance to Government regulations.
18.3 Contractor shall handle B3 classed waste in a manner that shall not contaminate the
environment nor endanger human life or health. Where there is uncertainty in the
classification of waste, Contractor shall treat the waste as hazardous and dispose of
it appropriately.
18.4 If resultant waste contains no B3 material or is not listed in the regulation, the waste
may be categorised as a non-B3 waste. The waste may be disposed of in designated
landfill sites provided by local government.

19. SECURITY AND LIABILITY

19.1 Contractor, his personnel and his sub-Contractors shall not remove any plant,
equipment, materials or any other property of the Engineer and or the Owner unless
approved in writing by the Engineer. If Contractor is found to have removed material
without approval, it shall be returned immediately to the site. Engineer may prosecute
for theft if he considers the removal of materials was malicious.
19.2 Contractor shall ensure that any materials, equipment or documentation issued to
him by the Engineer or Owner shall be securely stored when on site. Contractor shall
be responsible for Owner Material and Equipment while in his possession and until
such time as it is returned to the Engineer’s Representative or installed at site and
accepted by the Engineer.
19.3 Contractor shall be responsible for any damage or loss to Owner Plant and
Equipment that is caused by Contractor, his personnel and his sub-contractors.
Contractor liability shall be limited to the amount or value as specified in the contract.
19.4 Neither the Owner nor the Operator accepts any liability for the loss of any of
Contractor equipment and materials while on Site, and no liability shall be implied in
this Contract. Contractor shall make all necessary arrangements to ensure the
security of its own property.

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 PART V SITE CONDITIONS
AND GENERAL HEALTH & SAFETY CONDITIONS FOR CONTRACTORS

20. LABOUR
20.1 All labour shall be employed under a written contract between Contractor Labour and
Contractor that satisfies Indonesian Labour Law No. 13 /2003 and other relevant
regulations.
20.2 Contractor is bound by Indonesian Law to pay the Regional Manpower Rate (UMR)
as a minimum to all its manpower for the duration of this contract. Any amendments
in the Regional Manpower rate shall be passed on to Contractor’s personnel as soon
as practicable. In addition, all government labour policy in relation to leave, insurance
and any other requirements shall be adhered to.
20.3 Normal Plant working hours is Monday to Friday, 07.00 – 16.00, excluding
Indonesian public holidays.
20.4 Work outside normal working hours shall be performed only when authorized in
writing by Owner.

21. CONTRACT MONITORING AND REVIEW

21.1 In order to maintain the highest standards of health and safety, quality and value for
money Contractor shall use his best efforts to assist Engineer’s Representative in
achieving these objectives during the Contract work.
21.2. At the inquiry stage of the Contract a Pre-Tender Meeting may be held. The agenda
shall be as follows:
 Scope of work
 Technical specifications
 Site safety conditions
 Commercial aspects of the work
 Contractual aspects of the work, including Parts IV, V, V1 of the contract:
o Part IV: Project Requirements
o Part V: Site Conditions and General Health & Safety Conditions for
Contractors
o Part VI: Conditions of Contract
 Other matters deemed necessary by the Procurement Contract Officer,
Engineer’s Representative, Safety Section Representative or Contractor
 Site inspection of the proposed workplace
Refer to PMI-QA-005, Attachment: Contract Pre-Tender Meeting Agenda.
Prior to the start of work on Site an Inaugural (Kick-off) Meeting will be held as
update of the Pre-Tender Meeting.
21.3 During the course of the work a daily inspection may be made to confirm safe
working practices, good housekeeping, quality and progress of the works. This
inspection will be made jointly by Engineer’s Representative and Contractor.
Engineer’s Representative may decide that additional inspections are necessary
under certain circumstances.
Refer to PMI-QA-005, Attachment 3, Workplace Inspection Check Sheet.
21.4 A daily (or as determined by the Engineer’s Representative) progress meeting shall
be held. The agenda shall include:

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 PART V SITE CONDITIONS
AND GENERAL HEALTH & SAFETY CONDITIONS FOR CONTRACTORS

 Safety issues
 Matters arising from the daily joint site inspection
 Quality
 Progress
 Coordination requirements
 Any other business
Refer to PMI-QA-005, Attachment: Contract Progress Meeting Agenda.
21.5 On completion of the work Engineer’s Representative shall review the performance
of the work by completing the appropriate form. Refer to PMI-QA-005, Attachment:
Engineer’s Representative Questionnaire. The completed form shall be submitted to
the YTL Section Head responsible for the work, the Department Manager,
Procurement Section Head and Safety Section Head. Contractor may review the
completed form upon his request.

PART V (REV. 21 JAN 2020) Page 10 of 12

 ATTACHMENTS TO PART V SITE CONDITIONS
AND GENERAL HEALTH & SAFETY CONDITIONS FOR CONTRACTORS

ATTACHMENT 1
PERSONAL PROTECTION EQUIPMENT STANDARDS

Classification No. Item Standards

Mandatory 1 Safety Helmets AS/NZS 1801
EN 397
ANSI Z89.1
BS 5240

2 Safety Glasses EN 166-167

(complete with side shields) ANSI Z87.1

3 Safety Shoes ANSI Z41.1

(for potential ankle injury) AS/NZS 2210.3
EN 345

Optional (Required based

4 Body Harness and Safety Belts EN 358 & 361
on associate risk)
AS/NZS 1891
ANSI Z359.1 & ANSI
A10.14

5 Ear Plug or Ear Muff OSHA 29 CFR 1926.52

ANSI S3.19
EN 352-1

6 Dust/Mist Respirator EN 149

NIOSH 42 CFR 84

7 Safety Goggles EN 166

ANSI Z87.1
CSA Z94.3

8 Welding Helmets EN 175

ANSI Z87.1
CSA Z94.3

9 Face Shields EN 166

10 Safety Boots EN 345

(for potential ankle injury) EN 347

11 Hand Protection
Rubber, PVC, Vinyl, Nitrile, EN 374
Neoprene or other special EN 388
Materials Gauntlets (long) EN 420

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 ATTACHMENTS TO PART V SITE CONDITIONS
AND GENERAL HEALTH & SAFETY CONDITIONS FOR CONTRACTORS

Classification No. Item Standards

Leather Gloves EN 374
EN 388
Cotton Gloves EN 420

Fire Fighting Gloves NFPA 1971

EN 443

Electrical Gloves ASTM D 120-87

12 Respiratory System NIOSH 42 CFR 84

ANSI Z88.2

13 Life/Work Vest US Coast Guard

14 Abrasive Blasting Suits NIOSH Type C

ANSI Z89.1 for hats
ANSI Z87.1 for Face Shiled
CE Continuous Flow Class
Respirator

15 Coverall Protective Suit 89/686/EWGEN

(Chemical Handling, Cleaning, EN 369/368/373/374
Paint Spraying, MMMF, Spill
Clean-up and Accident)

16 Welding Apron EN 470-1

PART V (REV. 21 JAN 2020) Page 12 of 12

 PART VI CONDITIONS OF CONTRACT

1. DEFINITION AND INTERPRETATION

1.1 Definitions
 In the Contract (as herein defined) the following words and expressions shall have the
meanings hereby assigned to them:
i. “Commencement Date” or “Start Date” means the date which is specified in the
Contract as the date from which the Work starts, or if not so specified is the date of
the Contract itself.
ii. “Owner” means PT Jawa Power, the owner of Paiton II Power Station.
iii. “Completion Certificate” means a certificate issued by the Engineer or Contractor,
and signed by both parties, to document and to confirm that the scope of work
and supply has been performed by Contractor.
iv. “Contract” means the agreement between the Owner and Contractor for the
execution of the Work as may be expressly incorporated by the Contract Letter.
v. “Contract Period” means the period stated in the Contract during which the Work is
to be provided.
vi. “Contract Price” means the sum stated in the Contract Letter (either as a fixed lump
sum or the sum of tendered rates) as payable to Contractor for the provision of the
Work.
vii. “Contractor” means the party nominated in the Contract to perform the Work.
viii. “Engineer” means the person appointed by the Owner to act on Owner’s behalf.
The Engineer shall be the Station Director, PT YTL Jawa Timur, or his appointee.
ix. “Engineer's Representative” means any representative of the Engineer appointed by
the Engineer.
x. “Letter of Acceptance” means the signed acceptance by Contractor of the offer by
the Owner.
xi. “Mechanical Completion” means the verification and testing of the work
performed by Contractor in order to confirm that the installation is in accordance
with applicable requirements and ready for commissioning or start-up.
xii. “Schedule of Prices” means the prelist of prices or rates agreed by Owner and
Contractor and published in the Contract.
xiii. “Sub-contractor” means any party (other than Contractor) employed by Contractor
to perform part of the work. The employment of subcontractors by Contractor shall
require Owner approval.
xiv. “Work” means the activities by Contractor, stated or not in the Contract, to perform
Contractor obligations under the Contract.

1.2 Interpretation
 The terms “Owner” and “Engineer” may be used interchangeably.
 If any term is unclear, Contractor shall request clarification from Owner.

2. PRIORITY OF CONTRACT DOCUMENT

 The following documents shall be included in the Contract. Unless otherwise stated in the
Contract Letter the priority of the Contract documents, shall be as follows in descending
order of priority:

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 PART VI CONDITIONS OF CONTRACT

Part I Contract Letter

Part II Specification & Scope of Work
Part III Schedule of Prices and other Tender Schedules
Part IV Project Requirements
Part V Site Conditions and General Health & Safety Conditions For Contractors
Part VI Conditions of Contract
----- Any other documents from Jawa Power/ YTL forming part of the Contract
----- Contractor proposal

 Where there are contradictory statements or clauses in the Contract documents, the
statement or clause in the section with the higher precedence shall apply and the lower
shall be disregarded.

3. NOTICES, CONSENTS AND APPROVALS

 Wherever in the Contract provision is made for the giving of notice, consent or approval by
any person, such consent or approval shall not be unreasonably withheld. Unless otherwise
specified, such notice, consent or approval shall be in writing and the word "notify" shall be
construed accordingly.

4. CONTRACTOR ASSIGNMENT & SUBCONTRACTING

4.1 Assignment
 Contractor shall not assign the Contract or any part of his obligations under the Contract.
 A charge in favour of Contractor bankers of any monies due under the Contract shall not be
considered an assignment.

4.2 Subcontracting
 Except as approved by Owner, Contractor shall not subcontract any part of the Work
without the prior consent of the Engineer.
 Contractor shall be responsible for the acts, defaults and neglects of any subcontractor, his
agents or employees as fully as if they were the acts, defaults or neglects of Contractor, his
agents or employees.

5. CONTRACTOR OBLIGATIONS
5.1 General
 Contractor shall, in accordance with the Contract, with due care and diligence, provide the
Work during the Contract Period. Contractor shall also provide all necessary Contractor
property, supervision, labour and, except as otherwise stated in the Contract, all necessary
facilities, services and support therefore. Failure to discharge these obligations may result in
liquidated damages or other forms of relief available to the Owner.

5.2 Liquidated Damages

5.2.1 Delay
 If, as a result of delay caused by reasons attributable to Contractor (including Contractor
personnel, subcontractors, agents or employees), Contractor shall pay to Owner an
amount, and in a manner, as stipulated in Part II of the Contract.

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 PART VI CONDITIONS OF CONTRACT

5.2.2 Performance Failure

 If, as a result of failure to achieve certain performance milestones caused by reasons
attributable to Contractor (including Contractor personnel, subcontractors, agents or
employees), Contractor shall pay to Owner an amount, and in a manner, as stipulated in
Part II of the Contract.

5.2.3 Other
 Owner may seek other forms of relief in lieu of, or in addition to, liquidated damages.
 The payment of such liquidated damages shall not invalidate Owner right to terminate
the Contract as per Part VI, Clause 19.

6. SUFFICIENCY OF CONTRACT PRICE

 Contractor shall be deemed to have satisfied himself of, and taken account of, the
following in his Tender:
o All conditions and circumstances affecting the Contract Price.
o The possibility of performing the Work as described in the Contract.

7. CONTRACTOR REPRESENTATIVE
 Contractor shall employ one or more competent representatives (Contractor
Representative, Supervisor) to supervise the performance of the Work.
 Any instruction or notice which the Owner or Engineer gives to Contractor representatives
shall be deemed to have been given to Contractor.

8. OBJECTION TO CONTRACTOR EMPLOYEES

 Contractor shall, upon the Engineer’s written instruction, remove from the Site any person
employed by Contractor in the provision of the Work, who misconducts himself or is
incompetent or negligent

9. SAFETY PRECAUTIONS
 Contractor shall observe all applicable regulations regarding safety on the Site.

10. ACCESS TO AND POSSESSION OF THE SITE

 Owner shall in reasonable time grant Contractor access to and possession of the Site,
which may, however, not be exclusive to Contractor. The Engineer shall, to the extent
stated in the Specification, provide access for the delivery of all Contractor property to the
Site.

11. MANNER OF EXECUTION

 The Work shall be executed by Contractor in the manner set out in the Contract. Where the
manner of manufacture and execution is not set out in the Contract, the work shall be
executed in a proper and workmanlike manner in accordance with recognised good
practice.

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 PART VI CONDITIONS OF CONTRACT

12. VARIATIONS
12.1 Owner/Engineer Right to Vary
 The Engineer may, by Variation Order to Contractor at any time during the Contract Period,
instruct Contractor to alter, amend, omit, add to or otherwise vary any part of the Work.

12.2 Variation Order Procedure

 If the Engineer decides that the variation shall be performed, he shall request Contractor
proposal for such work. Engineer shall issue a Variation Order (“Contract Work
Instruction”, “Change Order”), clearly identified as such, in accordance with Contractor
submission or as modified by agreement.
 Where rates are not contained in the Contract Schedule of Prices, the cost shall be
reasonable as per similar work. Due account shall be taken of any over or under recovery of
overheads by Contractor in consequence of the variation.
 On receipt of a Variation Order, Contractor shall forthwith proceed to perform the variation
work and shall be bound to these Conditions of Contract in so doing as if such variation was
stated in the Contract.

13. PAYMENT
13.1 Terms of Payment
 Contractor shall submit invoices as per the agreed payment schedule stipulated elsewhere
in the contract.
 In any case, Contractor shall not submit invoices at intervals not less than a calendar
month.
 The invoice document shall consist of the following:
o Commercial Invoice – one per currency.
o VAT Invoice (Faktur Pajak).
o Evidence of the acceptance, by the Engineer, of the work performed.
 Invoices shall be addressed to PT Jawa Power and submitted to PT YTL Jawa Timur,
marked for the attention of Financial Services Department.

13.2 Payment
 Owner shall make payment to Contractor at his principal place of business within 30 days
from the date of receipt of a properly submitted invoice.

14. DAMAGE TO PROPERTY AND INJURY TO PERSONS

14.1 Contractor Liability
 Except as provided under Sub-Clause 14.3, Contractor shall be liable for and shall
indemnify Owner against all losses, expenses and claims in respect of any loss of or
damage to physical property, death or personal injury occurring to the extent caused by the
act, negligence or omission, breach of contract or of statutory duty of Contractor, his
Subcontractors or their respective employees and agents.

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 PART VI CONDITIONS OF CONTRACT

14.2 Owner Liability

 Owner shall be liable for and shall indemnify Contractor against all losses, expenses and
claims in respect of loss of or damage to physical property, death or personal injury
occurring, to the extent caused by the act, negligence omission, breach of contract or of
statutory duty of the Owner or other contractors engaged by the Owner or of their
respective employees or agents.

14.3 Accidents
 Contractor shall be liable for and shall indemnify the Owner against all losses, expenses or
claims arising in connection with the death of or injury to any person employed by
Contractor or his subcontractors for the purposes of the Work, unless caused by any acts or
defaults of the Owner or other contractors engaged by the Owner or by their respective
employees or agents. In the latter cases, Owner shall be liable for and shall indemnify
Contractor against all losses, expenses and claims arising in connection therewith.

15. INSURANCE
15.1 Third Party Liability/ Public Liability
 Contractor shall insure against liability to third parties for any death or personal injury and
loss of or damage to any physical property arising out of the performance of the Contract.
Such insurance shall be placed before Contractor begins any work on the Site. The
insurance shall be for not less than USD 250,000 or contract value, whichever is larger,
unless otherwise agreed.

15.2 Employees
 Contractor shall insure and maintain insurance against his liability under Sub-Clause 14.3.

15.3 General Requirements of Insurance Policies

 Contractor shall, as required by Owner or Engineer, produce the policies or certificates of
any insurance which he is required to effect under the Contract together with receipts for
the premiums.
 Contractor shall effect all insurances for which he is responsible with an insurer and in
terms approved by Owner.

15.4 Remedies on Contractor Failure to Insure

 If Contractor fails to produce evidence of insurance cover as stated in Sub-Clause 15.3,
then Owner may effect and keep in force such insurance. Premiums paid by the Owner for
this purpose shall be deducted from the Contract Price.

16. LIMITATIONS OF LIABILITY

16.1 Liability for Indirect or Consequential Damage
 Neither party shall be liable to the other for any loss of profit, loss of use, loss of production,
loss of contracts or for any indirect or consequential damage suffered by the other party,
unless:
o Otherwise agreed in the contract.

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 PART VI CONDITIONS OF CONTRACT

o Due to incompetence or negligence by the offending party.

17. DEFAULT
17.1 General
 If Contractor is not performing the Work in accordance with the Contract or is neglecting to
perform his obligations there under so as to affect the quality of the Work, Engineer may
give notice to Contractor requiring him to make good such failure or neglect within such
period as shall be reasonable in the circumstances.

17.2 Contractor Default

 If Contractor:
o has failed to comply within a reasonable time with a notice under this Clause, to
Engineer’s reasonable satisfaction, or
o assigns the Contract or subcontracts the whole, or part, of the Work without Engineer’s
written consent, except as provided under Clause 3.2, or
o becomes bankrupt or insolvent, has a receiving order made against him or compounds
with his creditors, or carries on business under a receiver, administrator, trustee or
manager for the benefit of his creditors or goes into liquidation, or
o is in breach of his obligations under the Contract in such a manner as to cause the
Engineer fundamentally to lose all trust in Contractor ability to perform the Contract to
completion,
Owner may terminate the Contract forthwith.
 Any such termination shall be without prejudice to any other rights or powers of the
Owner/Engineer or Contractor under the Contract.
 Owner may, upon such termination, complete the Work himself or by any other contractor.
 Owner, Engineer or such other contractor may use, for such completion, any of Contractor
property which is on the Site. Owner shall pay or allow Contractor a fair price for such use.
Otherwise Contractor shall be granted a reasonable period to remove Contractor property
from the Site.

17.3 Valuation at Date of Termination

 Engineer shall, as soon as possible after such termination, certify the value of the Work and
all sums then due to Contractor as at the date of termination, in accordance with Clause 17.

17.4 Payment after Termination

 Owner shall not be liable to make any further payments to Contractor until the Contract has
been completed. When the Work is so complete, the Owner shall be entitled to recover
from Contractor the extra costs, if any, of completing the Work from any sum due to
Contractor under Clause. If there is no such extra cost Owner shall pay any balance due to
Contractor.
 If Owner is unable to obtain payment of extra costs from Contractor, Owner shall be
entitled, and is hereby authorised by Contractor, to sell any Contractor property owned by
Contractor or by any firm or corporation in which Contractor has a controlling interest and
apply the net proceeds in or towards the satisfaction of such extra costs.

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 PART VI CONDITIONS OF CONTRACT

18. APPLICABLE LAW

 This contract shall be governed by and interpreted in accordance with the laws of the
Republic of Indonesia.

19. DISPUTES
 Any dispute, controversy, or claim arising out of or relating to the Contract, or the breach
thereof, either directly or indirectly, shall be resolved amicably through negotiation between
Owner and Contractor.
 In the case where no settlement can be reached through negotiation, external arbitration
shall apply. The external arbitration shall be conducted in Indonesia in accordance with the
United Nations Commission on International Trade Law (UNCITRAL) arbitration rules as in
effect on the date of the arbitration. All proceedings shall be in the English language.

20. CONTRACT LANGUAGE

 The language of this contract shall be, to the maximum extent permitted by the
governing law, the English Language.
 All correspondence, drawings and documentation submitted by Contractor, his
employees and or sub-contractors shall be in the English Language.

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