Government Regulation No. 5 re the Jasa Tirta Perum (Public Corporation)

Considering Bearing in mind ML. THE PRESIDENT OF THE REPUBLIC OF INDONESIA Government Regulation Number 5 of 1990 Dated February 12, 1990 R E THE JASA TIRTA PERUM (PUBLIC CORPORATION) THE PRESIDENT OF THE REPUBLIC OF INDONESIA, a. that in the framework of the development of the river areas, irrigation infrastructures have been developed with the aim of providing water for the various requirements' of the community in adequate quantity as well as quality; b. that for the implementation of the exploitation and maintenance of the irrigation infrastructures as well as for the exploitation of water and water sources existing in said river areas, it is neces sary to form a PERUM/Public Corporation; c. that based on the'above mentioned considerations , it is deemed necessary to establish the Jasa Tirta Perum/Public Corporation with a Government Regula tion. 1. Articl~ 5 paragraph (2) and Article 33 paragraph (3) of the 1945 Constitution; 2. Act Number 19 Prp of 1960 concerning State Com panies (State Gazette of 1960 Number 59, Supplemen~ tary State Gazette Number 1989)~ 3. Act Number 9 of 1969 concerning the Stipulation of the Government Regulation Substituting Act Number 1 of 1969 concerning the Forms of State Undertakings (State Gazette of 1969 Number 16, Supplementary State Gazette Number 2890) to become a Law ( State Gazette of 1969 Number 40, Supplementary State Ga zette Number 2904); 720 CAFI 32 / 15-3-1990. To stipulate 4. Act Number II of 1974 concerning Irrigation (State Gazette of 1974 Number 65. Supplementary State Gazette Number 3046); 5. Government Regulation Number 6 of 1981 concerning the Contribution for the Financing of the Exploita tion and Maintenance of Irrigation Infrastructures (State Gazette of 1981 Number 6. Supplementary State Gazette Number 3189); 6. Government Regulation Number 22 of 1982 concerning the Water Use Regulation (State Gazette nf 1982 Number 37. Supplementary State Gazette Number 3225); 7. Government Regulation Number 3 of 1983 concerning the Procedure .for the Promotion and Supervision of PERJANs/Departmental Companies. PERUMs/ Public Corporations. and PERSEROs/State-Owned Liability Companies (State Gazette of 1983 Number 3. Supple mentary State Gazette Number 3246) as already amended by Government Regulation Number 28 of 1983 (State Gazette of 1983 Number 37). HAS DEC IDE D THE GOVERNMENT REGULATION OF THE REPUBLIC OF INDONE SIA RE THE JASA TIRTA PERUM (PUBLIC CORPORATION). CHAPTER I. GENERAL PROVISIONS Article I. In this Government Regulation : I. The Government shall mean the Government of the Republic of Indone sia; 2. The President shall mean. the President of the Reoublic of Indone sia; 3. The Minister shall mean the Minister of Public Works; 4. The Director General shall mean the Director General responsible for the Irrigation Sector; 5. The Supervisory Board shall mean the Supervisory Board or the Jasa Tirta PERUM/Public Corporation; 6. Th Company shall mean the Jasa Tirta Perum/Public Corporation; 7. The Board of Directors shall mean the Board of Directors of the Jasa Tirta PERUM/Public Corporation; ML. 721 CAFI 32 / 15-3-1990. 8. The President Director shall mean the President Director of the Jasa Tirta PERUM/Public Corporation; 9. Employees/Personnel shall mean Employees/Personnel of the Jasa Tirta Perum/Public Corporation; io. Promotion shall mean the activity to give guidelines for the company planning, organization, implementation, and control with the purpose that the Company can carry out its task abd function efficiently and effectively and be able to develop in a proper way; 11. Supervision shall mean the entire evaluation activities process to wards the Company with the objective, that the Company can carry ouf its task and function properly, and be successful in achieving the stipulated objectives; 12. Inspection shall mean the activity to evaluate the Company by way of comparing between the actual condition and the condition which should have been achieved in the financial ~ector as well as in the opera tional technical sector; 13. The Company management shall mean the activity of planning, organiza tion, implementation, and control of the Company in accordance with the promotion outlined by the Minister. CHAPTER II. ESTABLISHMENT OF THE COMPANY Article 2. To conduct the irrigation infrastructures expolitation and mainten ance efforts and the water- and water sources exploitation, a Public Corpo ration has been established, as meant- in Act Number 9 of 1969 with the name of Jasa Tirta Perum/Public Corporation. CHAPTER III. THE COMPANY'S ARTICLES OF ASSOCIATION First Part G e n era 1 Article 3. (1). The Company as meant in Article 2 in the undertaking body which con ducts efforts of exploitation and maintenance of irrigation infras tructures as well as of exploitation of water and water sources. (2). The company conducts its undertakings based on the provisions in this Government Regulation and the prevailing legislative regula tions. (3). Without prejudice to the provisions in this Government Regula tion towards the Company, the Indonesian Law shall be effective. ML. 722 CAFI 32 / 15-3-1990. Second Part Domicil~ Article 4. (1). The Company is domiciled and has its head office in Malang. (2). Changes in the Company's domicile and head office is stipulated by the President on the proposal of the Minister. (3). In the framework of the development. the Company can establish an executors' organization unit stipulated by the Board of Directors after having obtained the approval of the Minister. Third Part Nature. Aims and Objectives Article 5. (1). The nature of the Company's undertaking is to provide services for the general utility and simultaneously to accumulate profits based on the Company's management principles. (2). The purpose of establishing a Company is to organize a general uti lity on the water and water sources of quality. adequate for the fulfilment of the life of the people at large. as well as to carry out certain tasks given by the Government in the management of the river water catchment areas comprising among others the protection. development and utilization of rivers and/or water sources includ ing the provision of information. recommendation. extension and guidance. (3). The objectives of the Company are to participate in the nationpl economic development by participating in the national development program implementation in the water and water sources management sector. Article 6. (1). To achieve the aims and objectives as meant in Article 5. the Com pany also conducts rehabilitation activities. (2). The amount of cost for the rehabilitation activities which shall be the Company's responsibility is stipulated by the Minister after haVing obtained the approval of the Minister of Finance. Fourth Part Undertaking opportunities Article 7. With due observance of the economic principles and in safeguarding the safety of the State property. the Company conducts the following endeavours ML. 723 CAFI 32 / 15-3-1990. a. the provIsIon of standard water for drinking water companies, electricity companies, plantation/estate companies, fishery companies, industries, harbours, and for washing away; b. tourism undertakings, cORsultation services and other under takings which can facilitate the achievement of the objectives as meant in Article 5 paragraph (3) with the approval of the Minister. Article 8. (I). The Company conducts undertaking activities as meant in Article 7, in the following rivers: Kali Brantas, Kali Amprong, Kali Lesti, Kali Metro, Kali Lahor, Kali Putih, Kali Semut, Kali Badak, Kali Bambang, Kali Lekso, Kali Ngrowo, Kali Song, Kali Ngasinan, Kali Tawing, Kali Parit Raya, Kali Dawir, Kali Parit Agung, Kali Boding, Kali Tugu, Kali Kedak, Kali Srinjing, Kali Konto, Kali Beng, Kali Widas, Kali Bening, Kali Kuncir, Kali Kedung Soko , Kali Ulo, Kali Brangkal, Kali Marmoyo, Kali Watudakon, Kali Sadar, Kali Kambing, Kali Porong, Kali Surabaya, Kali Mas, Kali Wonokromo, Kali Kedurus, Kali Ewoh, and Kali Jari. (2). The exploitation of water and water sources in other rivers by the Company is stipulated by the President on the proposal of the Minister. Fifth Part Cap ita I Article 9. (I). The Company's capital is State property separated from the State Revenues and Expenditure budget and is not divided into shares. (2). The amount of the Company's capital is the entire value of the State property which is already' invested in the Master Project of the Kali Brantas River Area Development except Waduk/reser voirs, Bendung/Dams, Tanggul/Embankments, Terowongan/Tunnels , and Pelurusan Sungai/River Strainghtening of which the value is stipulated by the Minister of Finance ia accordance with the calculation results conducted jointly by the Department of Pub lic Works and the Department of Finance. (3). Any capital addition originating from separated State property, shall be conducted by Government Regulation. (4). The company can increase its capital by way of the funds formed and accumulated internally according to the provision in Article 55. (5). The company does not make silent or secret reserves. ML. 724 CAFI 32 / 15-3-1990. may originate (6). All liquid equipment not directly r.equired by the Company shall be deposited at a State-Owned Bank approved by the Minister. Article 10. (1). Investment expenditures conducted by the Company from : a. internal Company funds; b. State capital participation through the State Revenues and Ex penditures Budget; c. loans from within the country or from abroad; d. other legal sources. (2). The investment budget shall be forwarded in the Company·s budget , whereas if the investment budget is forwarded during the current book year, the investment budget shall be forwarded simultaneously with the annual budget or a Company budget amendment of which the forwarding shall be conducted in accordance with the procedure as meant in Article 21. Article II. (1). The Company can obtain and use the funds acquired to develop its undertaking through the issuance of bonds or other legal instru ments. (2). The issuance of bonds or other legal instruments as meant in para graph (1), includes the provisions in relation there-with, regulat ed with a Government Regulation. Article 12. Any activity of delivery, transfer, imposition, writting off of fix ed assets, the receipt of a medium/long term loan, the provision of a loan in whatever from or way', the discontinuing of a collection, the writing off of receivables and of goods in stock can be conducted by the Board of Directors with the approval of the Minister, after the Minister has obtained the approval of the Minister of Finance beforehands. Article 13. The imposition of an additional task to the Company outside its main task causing a financial consequence towards the Company's budget is stipulated by the Minister-after the approval of the Minister of Fin ance has been obtained. ML. 725 CAFI 32 / 15-3-1990. Sixth Part. Board of Executives. Promotion and Management Article 14. The Company is led and managed by a Board of Directors. comprising a President Director and at the most 4 (four) Directors in accordance with their business sectors. Article 15. (1). The promotion towards the Company is conducted by the Minister, who in the implementation there of is assisted by a Director General bas ed on provisions further stipulated by the Minister. (2). The Board of Directors or the President Director for an on behalf of the Board of Directors receive directives from and is responsible to the Minister concerning the general policy to carry out the main tasks of the Company and other matters deemed necessary. (3). The implementation of the Company·s functional Administrative respon sibility State-owned Public Corporation towards the Government. in this case the Minister and the Minister of Finance. is conducted by the President Director on behalf of the Board of Directors. Article 16. a. b. c. d. e. f. g. h. i . The task and authority of the Board of Directors are as follows ., to lead. take care of and manage the Company in accordance with the aims and objectives by continuously making efforts to increase the efficiency and effectiveness of the Company; to control. maintain and take care of the Company·s property; to represent the Company in court and out of it; to implement the general policy as outlined by the Minister in taking care of the Company; to stipulate the Company's policy in accordance with the general pol icy stipulated by the Minister; to prepare in due time the Company·s annual work plan complete with the financial budget; to hold and maintain the bookkeeping and the administration of the Company in accordance with the prevailing customs for a Company; to prepare a Company organizational structure complete with the speci fication of the tasks; to appoint and discharge employees in accordance with the personnel regulations in force in the Company; ML. 726 CAFI 32 / 15-3-1990. J. to stipulate the salaries, pensions/old age allowance and other in come for the employees and to take care of all other personnel mat ters in accordance with the provisions of the prevailing legisla ~ tive regulations; k. to provide all information on the condition and the course of the Company in the form of annual as well as periodical reports accord ing to the way and time provided' in this Government Regulation, as well as any time it is requested by the Minister. 1. to carry out other obligations based on the directives of the Min ister. Article 17. (1). In the execution of the Company's main tasks a. the President Director has the rigth and authority to act on be half of the Board of Directors; b. the Directors have the right and authority to at on behalf of the Board of Directors for thei~ respective sectors within the limits provided in the regulations for discipline and procedure in the implementation of the work of the Board of Directors. (2). If the President Director is indisposed to continue the implement ation of his work or if that function is vacant and his successor has not yet been appointed or has not yet taken up his function , then the function of President Director shall be taken up by the Director, who is oldest in tenure based on the provisional designa tion of the Minister, and if the Director concerned is not present or is permanently indisposed, then the position shall be taken up by another Director based on the provisional designation of the Minister, both with the power and authority of a President Direc tor. (3). If all members of the Board of Directors permanently indisposed to carry out their work or if the function of the Board of Directors is entirely vacant and their successors have not yet been appointed or have not yet taken up their function, then for the time being the management and control of the Company shall be carried out by an acting Board of Directors designated by the Minister. (4). In the execution of the task and authority as meant in Article 16 letter c., the Board of Directors can carry out themselves or dele gate said authority to : a. one or several members of the Board of Directors, or; b. one or several Employees, individually or pointly, or; c. another person or agency, designated especially for said matter. ML. 727 CAFI 32 / 15-3-1990. (5). The disciplines and procedures in carrying out the work of a Board of Directors as meant in paragraph (1). is regulated in the regula tion stipulated by the Board of Directors with the approval of the Minister. (6). The salaries. allowance. emoluments and other in come of the mem bers of the Board of Directors. are stipulated by the Minister with due observance of the provisions in force. Article 18. (1). The members of the Board of Directors are appointed and discharged by the President on the proposal of the Minister after hearing the considerations of the Minister of Finance. (2). The members of the Board of Directors are appointed for a tenure of 5 (five) years and after the expiration of their tenure they can be re-appointed. (3). In the following cases. the President on the proposal.of the Min ister can discharge the entire or one of the members of the Board of Directors although their/his tenure as meant in paragraph (2) has not yet expired, because of a. a functional mutation in the interest of the Company and the State; b. their/his own request; c. having conducted an act or shown an attitude which is harmful for the Company; d. having taken measures of having shown an'attitude against the interest of the state; e. being physically or mentally disabled with the consequence of not being able to carry out their/this task; f. having passed away; g. being not sufficiently capable or apparently not. having carried out their/his· task as appropriate; h. not haVing implemented the prov~sions in the Company's Articles of Association. (4). Termination/discharge because of reasons as meant in paragraph (3) letter c and letter d, if constituting a violation on the panel law regulations, shall be a dishonourable discharge. (5). Before a discharge is conducted because of reasons as meant in paragraph (3) letter c and letter d, to the member of the Board of Directors concerned, is given the opportunity to defend himself in writing addressed to the Minister, which shall be executed with in 1 (one) month after the member of the Board concerned is notifY ed by the Minister of the intention to his discharge. ML. 728 CAFI 32 / 15-3-1990. (6). As long as the matter as meant in paragraph (5) is not yet decided, the Minister can discharge the member of the Board of Directors con cerned temporarily. (7). If within the period of 2 (t~o) months after the temporary dis charge of the member of the Board of Directors concerned, based on paragraph (4), no decision has been obtained concerning the dis charge of said member of the Board of Directors, then the temporary discharge becomes cancelled and the member of the Board of Direc tors concerned can immediately re-assume his function, except if for the decision on said discharge the jUdgement of the Courth is required, in which case the person concerned shall be notified. Article 19. (1). The members of the Board of Directors shall be an Indonesian nation al. (2). The members of the Board of Directors are appointed based on the requirements of capability and expertise in the sector of Company management, possession of knowledge and experience required to lead a Company moving in the sector as meant in Article 7, having a good character and morale and meeting the other requirements necessary to facilitate the progress of the Company they lead. (3). The Board of Directors shall devote all dedication and capabilities fully to their task, obligation and achievement of the objectives for which the Company has been established. Article 20. (l) . (2) • (3) • (4) • ML. Among the members of the Board of Directors there shall not be any family relationship until the third degree, according to a straight as well as side line, including in-laws. except with the approval of the President. If after the appointment. they enter into said prohibition family relationship, then to be able to continue their function. the written approval of the President is required. The members of the Board, of Directors shall not have any another association/Company undertaking/aiming for profits. The members of the Board of Directors shall not have a double func tion as mentioned here-under : a. President Director or Director of another company. or other re lated to the management of the Company; b. Other structural and functional positions in a Central Govern ment/Regional Agency/Institution; c. Other functions, based on the legislative regulations in force. Seventh Part (TO BE CONTINUED) 729 CAFI 32 / 15-3-1990. Seventh Part Company Work Plan and Budget Article 21. (1). At the latest 3 (three) months before the effectiveness of the new fiscal year, the Board of Directors send a Company Work Plan and Budget comprising the investment- and exploitation budgets to the Minister of obtain the legalization there-for based on the joint assessment of the Minister and the Minister of Finance. (2). Except if the Minister forwards any objections in writing or re fuses the activities contained in the Company workplan and budget before the beginning of the new fiscal year, said budget is fully effective. (3). The Workplan and/or additional budget or the budget amendment can tained in the fiscal year concerned shall first be forwarded to the Minister, according to the way and time stipulated by the Minister, to obtain its legalization based on the joint assessment by the Min ister and the Minister of Finance. (4). If within a period of 3 (three) months after the application for approval as meant in paragraph (3) has been forwarded, by the Min ister no objections in writing has been given, then the said amend ment in the workplan and budget shall be assumed as legalized. (5). The Company workplan and/or bUdget already legalized constitute the work basis and it is the task of the Board of Directors to carry out the activities contained there-in. ML. 746 CAFI 33 / 17-3-1990. Article 22. (1). All financings in the framework of the task implementation of the Internal Supervision Unit, the Supervision Council as well as the experts, shall be charged to the company and be clearly budget ed in the Budget of the Company. (2). The company is prohibited to finance expenditures conducted by the Departments/Agency which promotes and supervise the Company in the framework of the promotion and supervision of the Company. Eight part Contribution Articlee 23. The contribution of the irrigation infrastructures 2xploitation and maintenance financing is based on the principle of achieving a sufficient income for the Company to cover the exploitation cost stipulated by Decree of the Minister on the proposal of the Board of Directors, after the considerations of the Minister of Finance has b~en obtained. Ninth Part Accounting System Article 24. The Company's fiscal year is the Calendar year, except if other wise stipulated by the Minister. Article 25. (1). Any change, wheter it is caused by a transaction or by another event in the Company, influencing the assets, debts, capital costs and income shall be recorded based on an accountable ac counting system. (2). The accounting system as meant in paragraph (1) is composed and implemented by the Board of Directors in order that it can pro ceed properly based on the internal control principles, especial ly the distribution of the functions of management, registration storage and supervision. (3). In the framework of the inspection, the Financial and Development Supervision Agency evaluates the system stipulated as meant in paragraph (2) and if necessary gives directives and suggestions for improvement. ML. 747 CAFI 33 / 17-3-1990. Tenth Part Supervision Article 26. (1). The Minister conducts a general supervision on the course of the Com pany. (2). In the Company a Supervisory Council is formed responsible to the Minister. (3). The Supervisory Council has the task to carry out supervision to wards the management of the Company including the implementation of the Company's workplan and budget. (4). The Supervising Council carries out its task authority and responsi bility in accordance with the provisions in force towards the Com pany and executes the decisions and directives of the Minister. Article 27. of the Company's workplan and budget of its assessments to the Minister of Directors and to the Director The Supervisory Council in the implementation of its task has obligations: a. To give Hs views and suggestions to the Minister' through the tor General concerning the design of the Company's workplan bUdget, including the amendements/additions, and other reports the Board of Directors; b. to supervise the implementation as well as to submit the result with a carbon copy to the Board General; the Direc ana from c. to follow the development of the Company's activities, and in case the Company indicates symptoms of decline, to immediately report it to the Minister with a carbon copy to the Director General, accompa nied with suggestions on the improvement measures to be followed; d. to provided views and suggestions to the Minister with a carbon copy· to the Director General and to the Board of Directors concerning any other problems considered as important for the management of the Company; e. to submit reports to the Minister and the Minister of Finance periodic ally (quarterly and annually) as well as any the time required con~ crening the Company's development and the result of the task imple mentation of the Supervisory Council; f. to carry out other supervision tasks stipulated by the Minister. ML. 748 CAFI 33 / 17-3-1990. Article 28. In the implementation of the supervision task as meant in Article 26, the Supervisory Council shall observe: a. the guidelines and directives of the Minister by continuously ob serving the Company's efficiency; b. the provisions in the Company's establishment regulations as well as the provisions in the legislative regulations in force; c. the supervision task separation with the Company's management task constituting the task and responsibility of the Board of Directors. Article 29. In the implementation of its task and obligations the Supervisory Council has the following authority: a. to see the books and letters as well as other documents, inspect the condition of the cash (for verification purposes) and to inspect the Company's properties; b. to enter premises, buildings and offices used by the Company; c. to request elucidations from the Company's Executives concerning matters concerning the Company's management; d. to request the Board of Directors and/or other functionaries with the knowledge of the Board of Directors to attend a meeting of the Supervisory Council; e. to attend meetings of the Board of Directors and provide its views on matters in discussion; f. to conduct other matters deemed necessary as regulated in the Company's establishment regulations. Article 30. (1). The Supervisory Council shall hold a meeting at least once in 3 (three)months and any time as required. (2). In the meetings as meant in paragraph (1) matters shall be dis cussed in connection with the Company in accordance with the main task, function as well as the rights and obligations there-of. (3). The decisions of the Supervisory. Council's meetings are taken based on deliberation for consensus. \ (4). For each meeting the minutes of the meeting shall be made. ML. 749 CAFI 33 / 17-3-1990. Article 31. To assist in the smoothness of the task implementation of the Super visory Council, the Minister can appoint a Secretary for the account of the Company. Article 32. (1). The Supervisory Council as meant in Article 26 consists of elements of functionaries of the Departmeent of Public Works, the Depart ments of Finance, and other Departments/Agencies of which the acti vities is related to the Company, or other Functionaries proposea by the Minister with due observance of the considerations of the Minister of Finance. (2). One of the members of the Supervisory Council is appointed as the Chairman of said Council. Article 33. (1). The members of the Supervisory Council are appointed from the man power with high dedication, considered as qualified, and possessing the capabilities to implement the Minister's policy concerning the Company's promotion and supervision. (2). Besides the requirements as meant in paragraph (1) the members of the Supervisory Council are not allowed to have interests contrary to or harmful to the Company's interest. Article 34. (1). The members of the Supervisory Council shall at least be 2 two ) persons and at the most 5 (five) consisting of a Chairman and members of the Council. (2). The Chairman of the Supervisory Council who coordinates the members of the Supervisory Council is responsible for the implementation of the supervision to the Minister and/or Minister of Finance. Article 35. (1). The tenure of the functions of Chairman and members of the Supervi sory Council is 3 (Three) years. (2). The members of the Supervisory Council after the completion of their tenure as meant in paragraph (1) can be reappointed, still with due observance of the provisions as meant in Article 33. ML. 750 CAFI 33 / 17-3-1990. (l) . (2) • Article 36. The appointment and discharge of the members of the Supervisory Cou~ cil is conducted by the President on the proposal of the Minister after hearing the considerations of the Minister of Finance. If the Minister is of the opinion that the members or one of the members of the Supervisory Council after having held their/his posi tion for some time are is apparaently not or not capable of doing their/his tasks as appropriate, then the Minister can propose their/ his discharge to the President. Article 37. If deemed necessary the Supervisory Council in the implementation of their task can obtain assistance from experts. Article 38. Members of the Supervisory Council are not allowed to have another position in a private undertaking entity, which may cause contradictory interests, directly or indirectly, to the interests of the Company. Article 39. (1). The Company's Internal Supervision is conducted by the Internal Su peervisory Unit. (2). The Internal Supervisory Unit is lead by a Head who is responsible to the President Director. Article 40. (1). The Internal Supervisory Unit has the task to assist the President Director in making assessments on the management control system and the implementation there-of in the Company and to provide improve ment suggestions. (2). The Board of Directors use the views and suggestions of the Internal Supervisory Unit as material to carry out the Company·s management improvement as appropriate and accountable. Article 41. In the implementation of their task, the Internal Supervisory Unit shall safeguard the smoothness of the task implementation of other organi zational units in the Company in accordance with their respective tasK and responsibility. ML. 751 CAFI 33 / 17-3-1990. Article 42. The Internal Supervisory Unit can nbtain assistance of experts. Article 43. The executives of the Internal Supervisory Unit shall have an ade quate education and/or expertise, meeting the requirements as internal supervisors, objective and highly dedicated. Article 44. The head of the Internal Supervisory Unit is appointed and dischar ged by the Board of Directors. Article 45. (1). The Head of the Financial and Development Supervisory Agency con ducts accounting audits on the Company's annual financial report. (2). The audit as meant in paragraph (1) can also be conducted by an Accountant Public with the provision that the results of the audit shall be approved by the Head of the Financial and Development Su pervision Agency. (3). In the implementation of the provision as meant in paragraph ( 1 ) an operational audit can also be conducted towards the Company. Article 46. The result of the audit of the task as meant in Article 45 shall also be submitted to the minister, the Minister of Finance, the Board of Directors and the Supervisory Council. Article 47. Without any disregard of the supervision competency as meant in the articles of this Part, each Organizational Unit in the Company is responsible in conducting a bu.ilt-in supervision in their respective tasks. Eleventh Part Personnel. Articlee 48. (1). To accelerate the achievement of the objectives of the Company tranquility, quiet and work enthusiasm in the Company shall created by giving a reasonable appreciation to all employees accordance with their performance. ML. 752 CAFI 33 / 17-3-1990. , be in (2). The legal position. the structure of the position. hierarchy. dis charge. salaries. pension. and allowances for the Personnel is regulated based on the legislative regulation in force. (3). Other income of the personnel shall be regulated themselves by the Board of Directors after an approval from the Minister has been obtained. Article 49. The Board of Directors appoint s and discharges Company employees/ workers based on the legislative regulations in force. Article 50. (1). To be personnel a pension is provided based on the legislative re gulations in force for employees. (2). Besides a pension to the employees. another old age allowance can also be given to be regulated by the Board of Directors aftpr an approval from the Minister has been obtained. Twelfth Part Responsibility of the Employees and charges for indemnification Article 51. (1). All Employees including the members of the Board of Directors in their position as such. who are not burdened with the task of money deposits. valuable documents and supplies of goods who. be cause of actions against the law or because of a negligence in the obligations and task assigned to them. directly or indirectly,have caused a loss to the Company. are obligated to indemnify said loss. (2). The provisions on indemnification towards Civil Servants are fully effective towards the employees. (3). All employees burdened with the task of money deposits. payments or deliveries and valuable documents property of the Company - and goods in stock property of the Company stored in a warehouse or another place of storage. especially and merely used for this pur pose. are responsible for the execution of their task to the Finan cial Audit Board. (4). The employees as meant in paragraph (3) are not required to send an accountability report on the method of their handling there -of to the Financial Audit Board. ML. 753 CAFI 33 / 17-3-1990. (5) • (6) • (7) • Claims towards said employees shall be conducted according to the provisions stipulated for treasurers who by the Financial Audit Board are exempted from the obligation to account for the method of their handlings. All evidence letters and other letters whatever their nature, in eluded in the category of Company bookkeeping and administration , are filed in the place of the Company of another place designated by the Minister, except if temporarily moved to the Financial Audit Board in case it is deemed necessary for the purpose of an audit. For the purpose of an audit in connection with the stipulation of taxes and an accountant's audit, generally the evidence letters and other letters as meant in paragraph (6) can temporarily be moved to the Department of Finance and/or the Financial and Development Supe~ vision Agency. Thirteenth Part Reporting Articlee 52. (1). For each fiscal year an annual calculation is composed by the Board of Directors comprising a balance sheet and a profit and loss ac count. (2). The balance sheet and the profit and loss account as meant in para graph (1) is sent to the Minister with a carbon copy to the Minister of Finance, the Financial Audit Board, the Financial and Development Supervision Agency, the Director General and the Supervisory Council at the latest 6 (six) months after the fiscal year in accordance with the method stipulated by the Minister. (3). The way in evaluating a post in the annual account/calculation shall be stated. (4). If within a period of 3 (three) months after having received the annual account/calculation as meant in paragraph (1) by the Minister no written objections have been made, then the annual account/calcu lation is assumed as legalized. (5). The annual calculation/account legalized by the Minister after hav ing been jointly evaluated by the Minister and the Minister of Fin ance based on the audit of the Financial and Development Supervisory Agency or another Agency designated by him. (6). The legalization as meant in paragraph (5) releases the Board of Directors from anything and everything contained in said annualac count/calculation. (7). The President Director is obligated to submit quarterly reports and other periodical reports in accordance with the limits of the stipu lated periods together with other reports according to the provision of these Articles of Association and the legislative regulations, to the functionaries of the agencies as meant in paragraph (2). ML. 754 Article 53. Tile assessment results on the quarterly and annual financial reports as well as of other reports of the Company conducted by the Director Gen eral shall be submitted to the Minister and the Minister of Finance with in a time limit of at the latest 2 (two) months after the report of the President Director has been received. Article 54. (1). The reports as meant in Article 52 and Article 53 shall be submitted timely. (2). The form of the task implementation report as meant in paragraph (1) is stipulated by the Minister of Finance after having heard the con sideration of the Minister. Fourtheerth Part Use of the Profit Article 55. (1). From the net profit already legalized according to Article 52 is re served for : a. World Development funds 55% (fifty Five percent); b. General Reserves 20% (twenty percent). these general reserves re aches an amount twice as much as twice the capital of the Com pany; c. Objective reserves 5% (five percent); d. The remainder of 20% (twenty percent) is used for social funds education. production services and for contribution to the pen sion funds of which the distribution ratio specification is further stipulated by the Minister. (2). If the amount of general reserves as ment in paragraph (1) letter b is already achieved. the amount of the net profit part allocated for the accumulation of said general reserves. can further be used to accumulate funds for the Company's capacity expansion expenditures. (3). Before said general reserves has reached an amount twice as much as the Company's capital. with the approval of the Minister of Fin ance on the proposal of the Minister. the Board of Directors can use said general reserve funds for the purpose of Company expansion ex penditures. (4). The objective reserves as meant in paragraph (1) letter c among others are used to accumulate funds for Company capacity expansion expenditures. ML. 755 CAFI 33 / 17-3-1990. Fifteenth Part Dissolution of the Company Article 56. (I). The dissolution of the Company and the designation iiquidators is stipulated by Government Regulation. (2). All Company properties after the liquidation will become State pro perties. (3). The accountability for the liquidation by the liquidator in con ducted to the Minister who will release him of the responsibility concerning the work already completed by him. CHAPTER IV. CONCLUDING PROVISIONS Article 57. This Government Regulation shall be effective as of the date of promulgation. In order that everyone shall take cognizance of this, the promulga tion of this Government Regulation is herewith ordered by publication in the State Gazette of the Republic of Indonesia. Stipulated at J A K ART A On February 12, 1990 THE PRESIDENT OF THE REPUBLIC OF INDONESIA ttd. Promulgated at J A K ART A On February 12, 1990 THE MINISTER/STATE SECRETARY OF THE REPUBLIC OF INDONESIA signed MOE R D ION 0 S 0 E H ART 0 STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 1990 NUMBER 8. ML. 756 CAFI 33 / 17-3-1990.