October 8, 2021

Letter No. KNMT&R/I/EL-0343/10/2021/NN

PT Selaras Citra Nusantara Perkasa Tbk and its Subsidiaries

Jl. Raya Narogong Km. 19
Dusun Pasir Angin, Kec. Cileungsi
Bogor, Jawa Barat 16820

Attention of: Mr. Donny T Herwindo

Chief Financial Officer

Dear Madam,

The objective and scope of the audit

1. This letter This letter confirms our acceptance and understanding of the engagement of
Kosasih, Nurdiyaman, Mulyadi, Tjahjo & Rekan to audit and report on the financial statements
of PT Selaras Citra Nusantara Perkasa Tbk and its Subsidiaries for the year ended
December 31, 2021. The objective of our audit is to express an opinion on the fairness, in all
material respects, of the presentation of the financial statements in conformity with
Indonesian Financial Accounting Standard.

2. Should conditions not currently anticipated preclude us from completing our audit and issuing
a report as contemplated by the preceding paragraph, we will advise you promptly and take
such action as we deem appropriate.

Auditor Responsibilities and Limitations

3. We will conduct our audit in accordance with auditing standards established by the
Indonesian Institute of Certified Public Accountants (IAPI). Those standards require that we
comply with Professional Code of Ethics and plan and perform the audit to obtain
reasonable rather than absolute assurance that the financial statements are free from
material misstatement whether caused by error or fraud. There are inherent limitations in the
audit process and inherent limitations of internal control, including, for example, selective
testing and the possibility that collusion or forgery may preclude the detection of material
errors, fraud, and illegal acts. Accordingly, a material misstatement may remain undetected.
Also, an audit is not designed to detect error or fraud that is immaterial to the financial
statements.

4. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. An audit also includes assessing the accounting
policies used and significant estimates made by management, as well as evaluating if the
overall financial statement presentation is in accordance with SAK. Our opinion on such
financial statements depends on the results of the audit procedures which we will conduct,
therefore, we cannot guarantee that we can render an unqualified opinion in our report on the
financial statements.
Letter No. KNMT&R/I/EL-0343/10/2021/NN October 8, 2021
PT Selaras Citra Nusantara Perkasa Tbk and its Subsidiaries Page 2

Auditor Responsibilities and Limitations (continued)

5. As part of our audit, we will consider, solely for the purpose of planning our audit,
determination of risk and determining the nature, timing, and extent of our audit procedures,
the Company’s internal control. This consideration will not be sufficient to enable us to provide
assurance on internal control or to identify all reportable conditions.

6. We will determine that appropriate members of management are informed of fraud and illegal
acts of which we become aware. If we become aware of fraud involving senior management
or fraud (whether caused by senior management or other employees) that causes a material
misstatement of the financial statements, we will report this matter directly to the Board
of Commissioners. The existence of fraud may also affect our report. In addition, we will
inform appropriate members of management of significant audit adjustments and of
reportable conditions noted during our conduct of audit procedures. We also may
communicate other opportunities we observe for economies in or improved controls
over the Company’s operations.

7. In accordance with the Government of Indonesia Regulation No. 24 Year 1998 dated
February 14, 1998 as amended by the Government of Indonesia Regulation No. 64 Year
1999 dated July 9, 1999 and most recently updated by the Minister of Trade Regulation No.
25 Year 2020 dated March 16, 2020, the Company, should it qualify under the companies
identified in this regulation, is obliged to submit its audited annual financial statements and
company profile to the Sub-directorate of Corporate Registration of the Ministry of Trade
directly by the Company.

Furthermore, in accordance with the Regulation of the Minister of the Republic of Indonesia
No. 154/PMK.01/2017, Financial Professions Supervisory Centre (PPPK) Secretariat
General of the Ministry of Finance of the Republic of Indonesia has issued Circular No. SE-
2/PPPK/2019 dated February 13, 2019 concerning Obligation to Attach Client’s Audited
Financial Statements (“LKA”) by Public Accountant Firm (KAP) (“Circular Letter”).

Therefore, we are required to attach LKA at the same time with the submission of KAP’s
annual business activities report, with the following conditions:

a. In the event that the Company has submitted its LKA to the Ministry of Trade, the
Company shall provide us with a Receipt of Submission of the Company's Annual
Financial Report (“LKTP”) from the Ministry of Trade.

b. In the event that the Company has not submitted its LKA to the Ministry of Trade, the
Company shall provide us with a Statement Letter stating whether the Company agrees
or disagrees to the submission of LKA by KAP to PPPK.

Based on the above requirement, kindly provide us a receipt of the submission of LKTP or
the completed and signed Statement Letter no later than 5 calendar days after the audit report
release date. The format of the Statement Letter will be provided during the audit fieldwork.

8. The working papers prepared in conjunction with our work are our property and constitute
confidential and proprietary information that will be retained by us in accordance with our
policies and procedures.
Letter No. KNMT&R/I/EL-0343/10/2021/NN October 8, 2021
PT Selaras Citra Nusantara Perkasa Tbk and its Subsidiaries Page 3

Management’s Responsibilities and Representations

9. The preparation and fair presentation of the financial statements and the adequacy of the
financial statement disclosures in accordance with Indonesian Financial Accounting
Standards are the responsibility of the management of the Company, who is also
responsible for establishing and maintaining effective internal control, for properly recording
transactions in the accounting records, for safeguarding assets, and for the overall fair
presentation of the financial statements that are free from material misstatement, whether
due to fraud or error. Management is responsible for adjusting the financial statements to
correct material misstatements, and to provide us access to all information of which
management is aware that is relevant to the preparation of financial statements such as
records, documentation and other matters, additional information that we may request from
management for the purpose of the audit; and also unrestricted access to persons within the
entity from whom we determine it necessary to obtain audit evidence.

10. Management of the Company is also responsible for identifying and ensuring that the
Company complies with the laws and regulations applicable to its activities, informing us of
any discovery of fact that may have existed at the date of our auditor’s report, which may
have affected the financial statements or the related disclosures.

11. As required by auditing standards established by the IAPI, we will make specific inquiries of
management about the representations contained in the financial statements and the
effectiveness of internal control over financial reporting. Auditing standards established by
the IAPI also require that, at the conclusion of the audit, we obtain representation letters from
certain members of management about these matters. The responses to those inquiries, the
written representations, and the results of our audit tests comprise the evidential matter we
will rely upon in forming an opinion on the financial statements. Management is
responsible for providing us with all financial records and related information on a timely
basis and its failure to do so may cause us to delay our report, modify our procedures, or
even terminate our engagement.

Fees and Billings

12. A critical assumption underlying our fee quote is that management is responsible for the
preparation of the schedules and account analyses required for the audit prior to
commencement of the audit. This will involve your accounting personnel assisting us and
cooperating with the timely preparation of information including, but not limited to, the trial
balance, schedules, account analyses, records, documentation and other related
information. Should this information not be prepared as agreed, we will make appropriate
arrangements regarding re-scheduling the commencement of the audit, the timetable for
completion of the audit and will consider the impact on our audit fees. We wish to
emphasize that there should be no limitations to access to any records, documentation and
other related information which are requested by us in relation to the audit, and that our ability
to complete this work on time will depend largely on the availability and quality of the required
information and documents. We will discuss additional fees with management should such a
limitation result in our incurring significant un-budgeted cost overruns.
Letter No. KNMT&R/I/EL-0343/10/2021/NN October 8, 2021
PT Selaras Citra Nusantara Perkasa Tbk and its Subsidiaries Page 4

Fees and Billings (continued)

13. We estimate that the fees for our December 31, 2021 audit services will be
• PT Selaras Citra Nusantara Perkasa : Rp 450,000,000
• PT Selaras Donlim Indonesia : Rp 227,000,000
• PT Selaras Turbo Elektronik Indonesia : Rp 76,000,000
• PT Turbo Electric Domestic : Rp 146,000,000

and additionally we will bill for out-of-pocket expenses. Our invoices for fees and out-of-
pocket expenses will additionally include VAT at the applicable rate (currently 10%).

We will submit our invoices, as detailed below, and payment will be due upon receipt:

First billing, upon signing the proposal 60%

Second billing, upon commencement of audit field work 20%
Final billing, once deliver draft independent audit report and audit financial statements 20%

Out-of-pocket expenses for travel, accommodation and daily allowances will be charged at
actual costs. Other out-of-pocket expenses such as telephone, postage, photocopies, clerical
assistance and other administrative expenses will be charged at 5 percent of the audit fee.

We will provide 5 (five) copies of Company’s audited financial statements with our report in
English, any additional printed copy will be charged for administration costs at Rp 600,000
per copy.

Our fees are subjected to Article 23 Withholding Income Tax, with a rate of 2%, as stated in
the Indonesian Income Tax Law. The withholding tax is to be submitted by the Company to
the State Treasury on behalf of KAP Kosasih, Nurdiyaman, Mulyadi, Tjahjo & Rekan.

14. Our estimated fees and engagement completion timing are based upon, among other things,
our preliminary review of the Company's records and the representations the Company
personnel have made to us, and are dependent upon the Company's personnel providing the
required assistance on a timely basis as described above.

Should our assumptions with respect to these matters be incorrect or should the condition of
the records, degree of cooperation, or other matters beyond our reasonable control require
additional commitments by us beyond those upon which our estimated fees are based, we
may adjust our fees and planned completion dates. In addition, fees for any special audit-
related projects performed at the request of appropriate members of management, such as
proposed business combinations or research and/or consultation on special business or
financial issues, will be billed separately from the audit fee referred to above and may be the
subject of written arrangements supplemental to those in this letter.

15. In the event we are requested or authorized by the Company or are required by government
regulations, subpoena, or other legal process to produce our documents or our personnel as
witnesses with respect to our engagements for the Company, the Company will, so long as
we are not a party to the proceeding in which the information is sought, reimburse us for our
professional time and expenses, as well as the fees and expenses of our counsel, incurred
in responding to such requests.
Letter No. KNMT&R/I/EL-0343/10/2021/NN October 8, 2021
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Other Matters

16. Because of the significance of representations obtained from management during the audit
process, the Company agrees to release and indemnify, defend and hold us and our
personnel harmless from any liabilities, claims, costs and expenses relating to our services
under this letter attributable to any misrepresentations by management, whether made orally
or in writing.

17. The Company agrees that our maximum liability to the Company for any reason relating to
the services under this letter shall be limited to the fees paid to us for the services or work
product giving rise to liability, and that the Company agrees to indemnify and hold us and our
personnel harmless from any claims, liabilities, costs and expenses collectively referred to as
“Loss” (including any VAT or other taxes payable by KAP Kosasih, Nurdiyaman, Mulyadi,
Tjahjo & Rekan on amounts paid by you under this indemnity) arising for any reason, whether
brought or incurred by the Company or any third party which is related to, arises out of, or is
in any way associated with our services or this engagement.

18. In the event of any controversy or claim arising out of or relating to services covered by this
letter or here-after provided by us for the Company or at its request (including any such matter
involving any parent, subsidiary, affiliate, successor interest, or agent of the Company or of
KAP Kosasih, Nurdiyaman, Mulyadi, Tjahjo & Rekan, or involving any person or entity for
whose benefit the services in question are or were provided), shall be submitted first to
voluntary mediation, and if mediation is not successful within 60 days, then to binding
arbitration, in accordance with the alternative dispute resolution procedures of BANI
(Indonesia Board of Arbitration). Judgment on any arbitration award may be entered in any
court having jurisdiction.

19. Except as instructed otherwise in writing, each party may assume that the other approves of
properly addressed faxes, emails (including emails exchanged via Internet media) and
voicemail communications of both sensitive and non-sensitive documents, including third
party confirmations, and other communications concerning the engagement hereunder, as
well as other means of communication used or accepted by the other party.

20. We may make suggestions about the form or content of the financial statements or, at the
request of management, assist in drafting the financial statements based on information
obtained from management. Notwithstanding, our responsibility for the financial statements
that we have audited is confined to the expression of our opinion thereon.

21. If you intend to publish or otherwise reproduce (extracts of) the financial statements together
with our report or otherwise make reference to our Firm in a document that contains other
information, you agree to provide us with a draft of the printed document for our review and
approval before the document is printed and distributed.

22. During the term of this engagement, and for 12 months after it ends, each party agrees not
to knowingly solicit for employment, or to independently contract the services of, any partner
or staff member or sub-contractor of the other party who is involved with performing this
engagement. This clause does not apply to a general employment vacancy advertisement
issued by a party.
Letter No. KNMT&R/I/EL-0343/10/2021/NN October 8, 2021
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Other Matters (continued)

23. Based on Indonesian regulations, provisions regarding the confidentiality of client data is
waived if it is for the purposes of the Ministry of Finance’s supervision as stipulated in Law
No. 5 of 2011 on Public Accountants, Article 29 and in the interests of tax audits, tax
collection, or investigation of criminal acts in the field of taxation as regulated in Law No. 6 of
1983 on General Provisions and Tax Procedures as amended by Republic of Indonesia Law
No. 28 Year 2007 regarding General Taxation provisions Article 35.

In compliance with these provisions, we would like to emphasize that the Company’s
management authorizes the Firm to provide access to the respective audit engagement
working papers and to furnish a copy of the audited financial statements with our report to
parties who have the authority in carrying out the provisions of the applicable regulations. All
costs incurred in connection with the fulfilment of these obligations shall be borne by the
Company’s management and will be billed based on the actual time and expenses spent to
settle these obligations. On the other hand, no fees will be charged if the Company’s
management agrees to fulfil these obligations on their own. It is the sole responsibility of the
Company’s management to submit tax reports and provide any information with respect to
the performance of its tax obligations, including information contained in the audit
engagement working papers and in the financial statements.

24. Given the existing COVID-19 pandemic and Government of Indonesia’s guidance on physical
distancing, we reserve the right to conduct this assignment virtually using remote working
and online meetings in accordance with our policies and procedures.

We have put in place new working arrangements in response to the pandemic such as the
performance of digital communications link, however our ability to deliver may be affected by
non-availability of our resources due to COVID-19 related disruptions, such as sickness
and/or other safety and security reasons and/or wider conditions in Indonesia. In the event of
any such disruption, we will consult you on mitigation.

25. If any portion of this letter is held to be void, invalid, or otherwise unenforceable, in whole or
part, the remaining portions of this letter shall remain in effect.
Letter No. KNMT&R/I/EL-0343/10/2021/NN October 8, 2021
PT Selaras Citra Nusantara Perkasa Tbk and its Subsidiaries Page 7

If these arrangements are acceptable, please sign one copy of this letter and return it to us.

We very much appreciate the opportunity to serve as PT Selaras Citra Nusantara Perkasa Tbk
and Its Subsidiaries’s independent auditor and would be pleased to furnish any additional
information you may request concerning our responsibilities and functions. We trust that our
association will be a long and mutually beneficial one.

Yours very truly,

KAP KOSASIH, NURDIYAMAN, MULYADI, TJAHJO & REKAN

Tri Pramito
Principal

Acknowledged and agreed by:

PT Selaras Citra Nusantara Perkasa Tbk and its Subsidiaries

By:
Name Signature

Position Date