Dear Sir,

First, the Owner would like to notify the Contractor that during the Construction Period for
Muara Tawar Add-On Block 2,3 & 4 in June 2022, the Owner expressed dissatisfaction due to
the lack of performance by Contractor for the certain events. Therefore, the Owner’s evaluation
and expectation remain unchanged due to the Contractor’s performance has not improved
significantly and has not being able to satisfy the Owner.

Accordingly, the Owner hereby emphasizes and summarizes our evaluation of the Contractor’s
performance as follows:

1. Cancellation Schedule on Busbar A &B for the CT Dismantling 11 & 12 Block 3 &
4. Referring to the Contractor Letter No. MRT-HK-PJB-LT-221402 regarding the Update
Shutdown Schedule of Existing Switchyard 500 kV as per Owner letter No. MTW-G-C-
LT-22.2244.0. The Contractor needs support from the Owner to achieve the approved
shutdown condition for Busbar A or Busbar B of 500 kV Switchyard, with the proposed
date on 18th June 2022 to 7th July 2022 in diameters 11 & 12.

Diameter Date Description Manpower

11 (Block 3) 18 June 2022 Preparation 6

Dismantling CT (3pcs)
12 (Block 4) 18 June 2022 Preparation 6
Dismantling CT (3pcs)

According to our latest notification letter No. MTW-G-C-LT-22.2348.0 on 14th June the
Owner is already given the support to the Contractor by providing a work permit during
the weekend (Saturday & Sunday), and also the Owner already communicated and get
approval from PLN Dispatcher on 18th June 2022, so that the Contractor can continue the
work progress for the dismantling the CT Diameter 11 & 12 based on the Contractor’s
Update Shutdown Schedule. Therefore, the Contractor postpones and reschedules the
shutdown after the Owner’s equipment for Grid Code 2020 implementation are available
at the site.

In the opinion of the Owner, the Owner highlighted that the shutdown activity plan on
18th June 2022 i.e. the dismantling of CT is not havedoes not have a correlation or
depending depend on the arrival of new CT material at the Site. Moreover, the
Contractor’s reason for requesting the rescheduling of the shutdown on the first day of its
schedule for the purpose of having proper preparation and the optimisation optimization
of the works is a further demonstration of the Contractor’s incompetence and inability to
timely and effectively plan, prepare for and execute the Works.

The Contractor’s lack of performance once again delayed the Project Progress and blame
the Owner regarding the material that should be provided by the Owner. On 18th June
Contractor should start the CT Dismantling which is already being allocated and
 supported by the Owner. The Owner instructs the Contractor to fully commit and comply
with the Schedule to complete the Works.

1. Cancellation Schedule on GT Shutdown. Referring to the Contractor Letter No. MRT-

DS-PJB-L-220052 regarding “Update Shutdown Schedule, The Owner already trying to
support by allocating the Permit for Existing GT Block 3 Shutdown on July Period to
August Period 2022 as below;

Shutdown Plan
Activity Unit
Start Date Finish Date
Diverter Damper
Commissioning dan GT (TCS) GT 31 9 July 2022 17 July 2022
Test
Diverter Damper
Commissioning dan GT (TCS) GT 32 18 July 2022 26 July 2022
Test
Diverter Damper
Commissioning dan GT (TCS) GT 33 27 July 2022  4 August 2022
Test

Yang dibawah table apa?Furthermore, the Contractor proposed another scenario for GT
Shutdown Schedule in August Period in 2022. In this case, we trying to understand and
elaborate what is the obstacle for this matter, but Contractor seems don’t have any
explanation in terms of technical justification and mitigation plan to overcome this
matter. We cannot tolerate this kind of proposal due to the existing working contract with
the PLN that require the fix schedule.

Shutdown Plan
Activity Unit
Start Date Finish Date
Diverter Damper
6 August
Commissioning dan GT GT 31 14 August 2022
2022
(TCS) Test
Diverter Damper
15 August
Commissioning dan GT GT 32 23 August 2022
2022
(TCS) Test
Diverter Damper
24 August
Commissioning dan GT GT 33 31 August 2022
2022
(TCS) Test

The Owner is dissatisfied with the inconsistency of the Contractor Plan Schedule to
expedite for the optimal outcome for this matter. Contractor The contractor seems to
 struggle and lack a of plan and recovery plan for these agenda and always don’t have any
commitment about the schedule that has been proposed to the Owner. This cancellation
seems affecting to affect the Project Project’s Progress in the future, and the Owner is
will not tolerate very concernconcerned with this kind of line of work from the
Contractor.

1. Cancellation Schedule on AGC System Installation Solution. We are kindly

concerned regarding the AGC system that has been proposed by the Contractor with
letter No. MRT-DS-PJB-LT-220048. According to the latest discussion, the Contractor
proposed 2 Options for the mechanism but neither option 1 nor 2 Contractor cannot
commit to the technical allocation. The Owner also mentioned that the Contractor should
give another solution but until now there is no update regarding this matter, which lack of
performance and knowledge by the Contractor once again affects the Progress of the
Project.

For the first time Contractor proposed that the discussion for AGC System Installation
will be held on 22nd June 2022, as stated in MRT-DS-PJB-LT-220053. Later on, the
Contractor postponed and proposed another Schedule to discuss this matter on 23rd June
2022 stated in MRT-DS-PJB-LT-220054. The integration system to connect Micro
SCADA to JCC seems a very important matter to this Project that needs to accelerate and
expedite by the Contractor, but we are very dissatisfied with the Contractor’s
performance that requires much time to process the research and development, and also
lack commitment which technology should be applied upon this.

ditambahkan surat undangan mereka yang direncanakan rabu, trus ditunda (nah surat
penundaan ini masih kita tunggu).
The Owner instructs the Contractor to fully commit and has a responsibility to provide
certain solutions to this problem if the Contractor has any difficulties should describe and
communicate with the Owner.       
      

2. Manpower allocation for Contractor Scheduler. The Owner would like to notify the
Contractor to provide a Scheduler to recapture and reevaluate the Contractor Schedule to
implement and execute the certain agenda due to the several Schedule that has not been
met with the Contractor’s plan & schedule. Due to the Contractor’s lack of performance
and several delays in the withdrawal schedule, The Owner instructs the Contractor to
fully commit and follow the schedule proposal that has been proposed and approved by
the Owner because it will affect the Project timeline. The Owner needs the Contractor to
be fully aware and concerned regarding the Project timeline. Therefore, the Owner
expects the Contractor shall maintain the current number of direct manpower of more
than 1.000 persons until the Contractor has catch caught up with the delayed progress and
evaluate the Contractor that the additional manpower should be followed by the
improvement of the works supervision and the security at the Site.
Based upon several things regarding the Cancellation Schedule that has been proposed by the
Contractor, the Owner is not in a good standing position and does not tolerate this line of work.
Owner instruct Contractor to increase awareness, focus, and commitment, especially the timeline
for Steam Blow Block 2 will start on 30th June 2022 which the cancellation schedule that Owner
has experienced before would be fatal and critical to be implemented during 18 days period for
Steam Blow Block 2. If the Contractor fails to deliver the good attention, and performance for
this matter it will be affecting not only the COD of Block 2 but the Owner & Existing Muara
Tawar working contract with management, so we cannot tolerate this matter. Moreover, we are
trying to support the Contractor to handle several things like communicating with PJB existing
Muara Tawar, PLN Dispatcher, but the Owner wants the fixed schedule to be implemented in the
future.

Furthermore, the Owner is fully concerned about another Block which Blocks 3 & 4 have many
milestones that have not been completed yet with the Contractor forecasting plan. There are
several milestones according to the Contractor’s Monthly Progress Report that became our
concern such as Steam Admission for Block 2,3,4; Hydrotest Block 3 & 4; Power Receiving
Block 3 & 4; Synchronization Block 2,3,4; Reliability Test Block 2,3,4; Performance Test Block
2,3,4 until COD each block. Contractor behavior that always delayed and postpone certain
agenda is not tolerated by the Owner, because it will be affecting several milestones in the
future.Kita ngejar steamblow #2 yg ditargetkan pada 29 jun 2022, bila mundur akan berpengaruh
ke pencapaian COD. Ini menjadi titik krusial.

Ini sangat menjadi concern karena selain COD blok 2, di blok 3 dan 4 banyak milestone
(disebutin satu2, cek di laporan yg ada milestonenya, apa aja yg ditargetkan di smt 2 2022) yang
ditargetkan dicapai, dan bila masih behaviour nya kayak gini, kami khawatir target2 tsb dapat
dicapai.

BasedMoreover, the on the evaluation above which is mostly the same every week through the
Owner's letter, therefore by the provision of Clause 45 of the General Conditions of Contract -
Rate of Progress, the Owner herewith expresses to the Contractor that its mode, manner, and
speed of execution of the works is not of a kind and being conducted in a manner to the
satisfaction of the Owner. As required by the GCC Clause 45 the Contractor shall take such steps
as shall be necessary and acceptable to the Owner to expedite progress to complete the Works by
the prescribed time. Moreover, it is also noted that the last paragraph of the GCC Clause 45
instructs that the Contractor shall seek the Owner's permission to do any of the Works at night or
on Sundays, the Owner confirms that such permission is requested by the Contractor, will not be
unreasonably refused.

Consequently, the Owner reiterates that the Muara Tawar Block 2,3,&4 Add OnAdd-On Project
is are included in the National Strategic Project. So that the Owner insists the Contractor to put
forth extraordinary efforts and find a new breakthrough in order to deliver good results for this
project. Even the achievements of this project will influence the ContractorContractor’s's
reputation at PLN Group in the future.
In conclusion, the Owner expresses its disappointment and points out that it’s unhappy with the
Contractor's performance at this moment.

The Contractor's fast response and maximum cooperation are mandatory and will be highly
appreciated.