Regulation of the Minister of Energy and Mineral Resources of RI No. 15/2013 regulating the use of Domestic Products in Upstream Oil and Natural Gas Business Activities

Article 3 mized and empowered category; ( 1) In supporting the domestic product utilization b. list of service providers belonging to the prior- policy, the target of TKDN in the usptream oil itized, maximized and empowered category; and natural gas business activities shall be set as and contained in Attachment I, which constitutes an c. list of capability of domestic producers of integral part of this ministerial regulation. goods and/or providers of service already se- (2) In order to achive the target of TKDN as meant curing SKUP Migas. in paragraph ( 1), the Director General shall stipu- (4) Further provision on the APDN Book as meant in late a roadmap of the accomplishment of target paragraph (3) shall be stipulated by the Director of TKDN in the upstream oil and natural gas busi- General. ness activities. Part Two

Article 4 Task and Responsibility (1) Every contractor, domestic producer, and suppli- Article 5 er of goods and/or provider of service procuding ( 1 I In a bid to prioritize to the use of domestic prod- goods and/or service in usptream oil and natural ucts, the Directorate General shall be obliged gas business activities shall be obliged to use, to: maximize and empower domestic goods, service a. examine and evaluate capability of domestic as well as engineering and design potentials ful- products in the framework of issuing SKUP filling the quantity, quality, delivery time and price Migas; in accordance with the provision in the procure- b. issue and renew APDN Book periodically; ment of goods and/or service. c. qualify companies and individuals to undertake (2) The procurement of godos and/or service shall be verification; and obliged to use APDN Book as a reference to stipu- d. supervise the utilization of domestic goods, late strategy of the procurement as well as deter- service, technology and design and engineer- mine requirements and provisions on the procure- ing capability. ment. (2) If necessary, in order to ascertain that the produc- (3) The' APDN Book as meant in paragraph (2) shall tion of goods and/or service is really executed by be issued periodically by the Directorate General, domestic producers, the Directorate Genera may which contains at least: witness the production of domestic goods and/or a. list of goods belong to the required, maxi- seN,ce ordered by contractors. Business News 8470110-23-2013 27

Article 6 complishment of TKDN in the implementation of In a bid to prioritize to the use of domestic the procurement contract of goods and/or ser- product, the Special Executive Working Unit of Usp- vice; and tream Oil and Natural Gas Business Activities shall be e. submit report on result of the verification of the obliged to: accomplishment of TKDN to the Directorate Gen- a. stipulate the target of TKDN that contractors eral and the Special Executive Working Unit of have to be accomplished in every work plan and Usptream Oil and Natural Gas Business Activities. budget and/or list of procurement plan; b. foster contractors to fulfill the accomplishment target of the use of domestic products mentioned Article 8 in work plan and budget and/or list of procure- ( 1) In a bid to prioritize to the use of domestic prod- ment plan; ucts, domestic producers and/or suppliers of c. provide information which may be ascertained by goods and/or providers of service shall be obliged the public with regards to the plan for the pro- to: curement of domestic goods and/or service in the a. fulfill the quality, delivery time and price in usptream oil and natural gas business activities; accordance with the provision in the procure- and ment contract of goods and service; d. coordinate contractors in a joint effort to increase b. fulfill committment to the self-assessment the use of domestic goods and/or service. TKDN of service stipulated in the procure- ment contract of goods and/or service;

Article 7 c. enhance TKDN of the produced goods and/or In a bid to prioritize to the use of domestic service, which is declared in the committment products, contractors shall be obliged to: to the plan for the enhancement of TKDN of a. require maximally the production of goods and/or goods and/or service; and service in the country; d. submit report on the production capacity of b. stipulate technical specification of goods and/or goods and/or service to the Directorate Gen- service by referring to APDN Book; eral every 6 (six) months. c. stipulate the target of TKDN that has to be ac- (2) Besides the obligation as meant in paragraph (1 ), complished in the procurementof goods and/or domestic producers shall be obliged to: service; a. have SKUP Migas, which remains valid; and d. conduct verification in order to determine the ac- b. undertake production process in the country; ! 28 I Business News 8470110-23-2013 GOVERNMENT REGULATIONS c. fulfill! TKDN of goods in accordance with the accomplishment of target of TKDN. value mentioned in certificate of TKDN. Part Two CHAPTER Ill Corporate Status-based Price Preference PRICE PREFERENCE Article 10 Part One In the procurement of goods, domestic pro- TKDN-Based Price Preference ducers having status of domestic company with the

Article 9 accomplishment of TKDN 25% {twenty five percent) { 1) In the framework of appreciating domestic prod- or higher may be granted additional price preference uct, price preference may be granted. maximally 2.5% {two point five percent), besides the (2) Price preference shall be granted if TKDN of goods TKDN-based price preference in accordance with the reaches or exceeds 25% {twenty five percent) of provision as meant in Article 9 paragraph (3). the promise/committment to the accomplishment of TKDN in the case of goods, or reaches or ex- CHAPTER IV ceeds 30% {thirty percent) of the promise/com- LOCAL CONTENT mittment in the case of service. Part One (3) In the procurement of goods or procurement of TKDN of Goods engineering, procurement, construction and in- Article 11 stallation service substance of domestically pro- { 1) TKDN of goods shall be counted on the basis of duced goods may be granted TKDN-based price the cost of domestic components in goods, com- preference maximally 1 5 % {fifteen percent), pared to the whole cost of product. counted proportionally on the basis of the accom- (2) The whole cost of product as meant in paragraph plishment of TKDN adjusted to roadmap of the { 1) shall be counted as far as the location of work accomplishment of target of TKDN. {factory I workshop) and constitute cost spent for (4) In the procurement of engineering, procurement, the production of goods, covering: construction and installation service other ser- a. direct component {material) cost; vice or consulting service, substance of domestic b. direct manpower cost; and service shall be granted TKDN-based price prefer- c. factory overhead cost, excluding profit, com- ence maximally 7. 5 % {seven point five percent), pany overhead cost and output tax in the counted proportionally on the basis of the accom- framework of the delivery of goods. plishment of TKDN adiusted to roadmap ot the 13) The determination of the domestic component Business News 8470110-23-2013 29 GOVERNMENT REGULATIONS cost in the goods as meant in paragraph ( 1 ) shall c. cost of working equipment/facility; and be based on criteria: d. general service cost, a. in the case of direct component (material), excluding profit, company overhead cost and based on country of origin; output tax. b. in the case of manpower, based on national- (3) The determination of cost of domestic component ity; and in the service as meant in paragraph ( 1) shall be c. in th ecase of working equipment/facility, based on criteria: based on ownership and country of origin. a. in the case of material being used to help the (4) Procedure for the calculation of TKDN of goods provision of service, based on country of ori- shall follow the provision of legislation issued by gin; the minister in charge of industrial affairs. b. in the case of manpower and consultant, based on nationality;

Article 12 c. in the case of working equipment/facility, The calculation of TKDN of the combination based on ownership and country of origin; of several kinds of goods shall be based on the ra- and tio of the sum of the multiplication of TKDN of each d. in the case of general service cost, based on goods with the acquisition price of each goods to the the criteria as meant in letter a, letter b, and acqusition price of the combination of goods. letter c. Part Two (4) The determination of domestic component of the TKDN of Service working equipment/facility as meant in paragraph

Article 13 (3) letter c shall be based on the following _provi- ( 1) TKDN of service shall be calculated on the basis of sion: the ratio of service cost of domestic component a. working equipment produced in the country in service to the total cost of service. and owned by domestic company or Indone- (2) The total cost of service as meant in paragraph ( 1) sian citizen is valued as much as 100% (one shall be counted as far as the location of work (on hundred percent) of domestic component; site) and constitute cost spent for the production b. working equipment produced in the country of service, covering: and owned by national company is valued as a. cost of component (material) which is used; much as 75 % (seventy five percent) of the b. manpower am1 consultant cost: domestic component; 30 Business News 8470110-23-2013 GOVERNMENT REGULATIONS c. working equipment produced in the country ~ (1) TKDN of the combination of goods and service and owned by foreign company or foreign citi- shall constitute a ratio of the whole cost of do- zen is valued as much as 50% (fifty percent) mestic components in the combinantion of goods of the domestic component; and service to the whole combined cost of goods d. working equipment produced abroad and and service. owned by domestic ocmpany or Indonesian (2) The whole combined cost of goods and service as citizen is valued as much as 75 % (seventy meant in paragraph ( 1) shall constitute cost spent five percent) of the domestic component; to produce the combination of goods and service, e. working equipment produced abroad and which is counted as far as location of work (on owned by national company is valued as site). much as 50% (fifty percent) of the domestic (3) TKDN of the combination of goods and service as component; or meant in paragraph ( 1) shall be counted in every f. working equipment produced abroad and activity of the combination work of goods and owned by foreign company or foreign citizen service. is valued as much as 0% (nil percent) of the (4) The spent cost as meant in paragraph (2) shall in- domestic component. cludec production cost in the calculation of TKDN of goods as meant in Article 11 paragraph (2) and

Article 14 service cost in the calculation of TKDN of service (1) The calculation of TKDN of service shall be in- as meant in Article 13 paragraph (2). quired as far as the second-level service which is produced by domestic service provider. Part Four (2) In the event that component resulting from the Data and Recapitulation of TKDN third-level service provided by domestic service Article 16 provider is found in the inquiry into the second- ( 1) TKDN shall be calculated on the basis of account- level sevice as meant in paragraph (1 ), TKDN of able data. component of the third-level service shall be de- (2) In the case of data used in the calculation of TKDN clared 100 (one hundred percent) as meant in paragraph ( 1) being not accountable, the value of TKDN of the said component shall Part Three be nil. TKDN of Combination of Goods and Service , (3) Format of the recapitulation of the calculation of

Article 15 l"KDN of goods, service as well as combination Business News 8470110-23-2013 31 GOVERNMENT REGULATIONS of goods and service shall be as contained in At- may be executed by contractor personnel tachment 11, Attachment Ill and Attachment IV, 1 having qualification to verify. which constitute an integral part of this ministe- rial regulation. c. in the case of the procurement of goods and/or service with the value less than Rp CHAPTER V 5,000,000,000 (five billion rupiah) or kind of VERIFICATION service having low complexity, the accom-

Article 17 plishment of TKDN may be calculated person- ( 1) Contractors or suppliers of goods and/or providers ally (self assessment) by personnel of supplier of service shall be obliged to verify the accom- of goods andor provider of service having plishment of TKDN of the combination of serveral qualification to verify. kinds of goods, several kinds of service or com- (2) Result of the verification as meant in paragraph bination of goods and service with the provision ( 1) letter a and letter b shall be legalized by the as follows: Di rector ate General. a. verification of the procurement of combi- (3) The Directorate General may audit report on the nation of several kinds of goods, combina- accomplishment of TKDN in the procurement of tion of several kinds of service or combina- combination of several kinds of goods, several tion of goods and service with the value Rp kinds of services or combination of goods and 50,000,000,000 (five billion rupiah) or more service in the usptream oil and natural gas busi- and the accomplished TKDN 30% (thirty per- ness activities. cent) or higher is obliged to use service of independent surveyor having qualification to Article 18 verify; ( 1) The qualified independent surveyor as meant in b. verification of the procurement of combi- Article 17 paragraph ( 1) letter a shall constitute nation of several kinds of goods, combina- domestic companies having SKUP Migas. tion of several kinds of service or combina- (2) The implementation of verification shall be obliged tion of goods and service with the value Rp to use personnel having qualification to verify. 5,000,000,000 (five billion rupiah) up to Rp (3) Provision on guidance for verification and qualifi- 50,000,000,000 (fifty billion) and the accom- cation of verifier of TKDN shall be stipulated by plished TKDN 30% (thirty percent) or higher the Director General. may use service of independent surveyor or 32 Business News 8470110-23-2013 GOVERNMENT REGULATIONS CHAPTER VI shall be in the form of: FOSTERING AND SUPERVISION a. gold rating, in the case of contractors, do-

Article 19 mestic producers, and suppliers of goods and/ ( 1) The Director General! shall foster and supervise or providers of service belonging to the very the implementation of the provision on the uase good category; of domestic producers in the upstream oil and b. silver rating, in the case of contractors, do- natural gas business activities. mestic producers, and suppliers of goods and/ (2) In executing the fostering and supervision as or providers of service belonging to the good meant in paragraph ( 1), the Director General may category; establish a team for the use of domestic products c. bronze rating, in the case of contractors, do- in the usptream oil and natural gas business ac- mestic producers, and suppliers of goods and/ tivities. or providers of service belonging to the rela- (3) The membership composition of the team for the tively good category; use of domestic products in the upstream oil and (3) Provision on procedure and requirement for the natural gas business activities as meant in para- granting of the award shall be stipulated by the graph (2) shall consist of representatives of the Director General. Directorate General, Special Executive Working Unit of Upstream Oil and Natural Gas Business CHAPTER VIII Activities, Contractors, as well as related institu- SANCTION tions and associations Article 21 (1) The Head of the Special Executive Working Unit CHAPTER VII of Usptream Oil and Natural Gas Business Activi- AWARD ties shall impose sanction on contractors violating

Article 20 the provision in Article 4 paragraph ( 1), paragraph ( 1) The minister shall grant award to contractors, (2), Article 7 letter a, letter b, letter c, letter d, or domestic producers, and suppliers of goods and/ letter e, Article 17 paragraph (1) letter a or letter or providers of service to appreciate their perfor- b or paragraph (2). mance in the utilization of domestic producers in (2) The Director General shall impose sanction in the usptream oil and natural gas business activi- the form of written warning and/or revocation of ties. SKUP Migas on domestic producers violating the (2) Kinds of thij owoni as meont ,n paragraph \~) provision in Article 4 paragraph ( 1), paragraph Business News 8470/ 10-23-2013 33 GOVERNMENT REGULATIONS (2), Article 8 paragraph ( 1) letter a, letter b, let- a. in the case of the ranking of winner not chang- ter c, or letter d, paragraph (2) letter a, letter b, or ing, the sanction is as much as the difference letter c. between the evaluation price of bid (HEP) in (3) The Director General shall impose sanction in the contract realization phase· and HEP in the the form of written warning and/or revocation of bidding phase; SKUP Migas on suppliers of goods and/or provid- b. in the case of the ranking of winner changing, ers of service violating the provision in Article 4 the sanction is as much as the difference be- paragraph ( 1), paragraph (2), Article paragraph tween the evaluation price of bid (HEP) in the ( 1) letter a, letter b, letter c, or letter d, Article 17 contract realization phase and HEP in the bid- paragraph ( 1) letter a or letter b atau paragraph ding phase, plus the difference between value (2). of contract of the first rank and bidding value (4) The administrative sanction in the form of written of the second rank in the bidding phase. warning as meant in paragraph ( 1) and paragraph (2) The financial sanction as meant in paragraph (1) (2) shall be granted maximally 2 (two) times in shall be subtracted from the payment value of the period of one month at the maximum. contract. (5) In the event that domestic producers or suppliers (3) Example of the calculation of the sanction as of goods and/or providers of services receiving meant in paragraph (2) shall be as contained in the warning do not fulfill their obligation after the Attachment V, which constitutes an integral part expiration of the second written-warning period, of this ministerial regulation. the Director General shal impose admiinstrative sanction in the form of the revocation of SKUP CHAPTER IX Migas. CONCLUSION

Article 24

Article 23 The ministerial regulation shall come into ( 1) Domestic producers and/or suppliers of goods force as from the date of promulgation. and/or providers of service violating the provision For public cognizance, the ministerial regulation shall in Article 8 paragraph ( 1) point b, Article 10 fol- be promulgated by placing it in State Gazette of the lowing the implementation of the procurement Republic of Indonesia. contract of goods and/or service shall be subject to financial sanction by contractors with the pro- Stipulated in Jakarta vision as follows: On february 22,2013 34 Business News 8470110-23-2013 GOVERNMENT REGULATIONS THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA sgd. JEROWACIK Promulgated in Jakarta On February 22,2013 THE MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA sgd AMIR SY AM SU DIN ! ATTACHMENT I TARGET OF LOCAL CONTENT OF GOODS/SERVICE IN UPSTREAM OIL AND GAS BUSINESS ACTIVITIES Target of TKDN (%) NO COMMODITIES Short-term Medium-term Long-term (2013-2016) (2017 - 2020) (2021 - 2025) Goods 1. Drilling pipe (OCTG) a. High Grade 25 40 55 b. Low Grade 15 25 40 2. Distribution pipe (linepipe) a. Spiral/SAW 50 65 80 b. ERW 50 65 80 C. Seamless Pipe 10 30 50 3. Drilling mud, cement and chemicals 40 55 70 4. Electrical Submersible Pump 15 25 35 5. Pumping Unit 40 55 70 6. Machinery & Equipment 20 30 40 Business News 8470/ 10-23-2013 35 GOVERNMENT REGULATIONS 7. Wellhead and X-mas tree a. Onshore 40 55 70 b. Offshore 15 30 40 8. Fuel oil (BBM) 60 75 95 9. Lubricant 50 60 70 10. Other goods 15 25 40 Service 1. Survey, Seismic and Geology Study a. Darat 60 75 90 b. Laut 15 25 35 2. Drilling service a. Darat 50 70 90 b. Laut 35 45 55 3. Front End Engineering Design (FEED) service a. Darat 60 70 80 b. Laut 4. Engineering Procurement Construction Installation (EPCI) service a. Darat 50 70 90 b. Laut 35 45 55 5. Shipping service 75 80 85 6. Air carrier service 80 90 95 7. Other service 40 55 75 THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA sgd. JERO WACIK 36 Business News 8470110-23-2013 GOVERNMENT REGULATIONS ATTACHMENT II CALCULATION OF LOCAL CONTENT-GOODS NAME OF MANUFACTURE CALCULATION BY PRODUCER Cost per one unit of product COST COMPONENT Cost Cost Cost % Domestic Imported Total Cost component Component Component Rp / US $ a b c = a + b d = ale I. Direct material cost II. Direct labor cost Ill. Factory overhead IV. TOT AL PRODUCTION COST Note: • % TKDN Goods = Total cost (IV.cl - Total imported component cost (IV.bl Total cost (IV.cl • % TKDN Goods Total domestic component cost (IV.a) Total cost (IV.cl • Statement of TKDN achieving > 15% must be enclosed by SKUP Migas. THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA sgd JERO WACIK Business News 8470! 10-23-2013 37 GOVERNMENT REGULATIONS ATTACHMENT Ill CALCULATION OF LOCAL CONTENT - SERVICE NAME OF SUPPPLIER OF GOODS/PROVIDER OF SERVICE A. COST COMPONENT Cost Summary KON KLN TOTAL TKDN Rp / US$ % Rp / US$ a b C d e=b/d f= d x e I. Material used cost Rp US$ 11. Personnel & Consultant cost Rp US$ 111. Equipment & Work Facility Cost Rp US$ IV. Other service cost Rp US$ V. Total cost n: I to IV) Rp US$ B. Non cost component Rp US$ C. Total quoted price Rp US$ 38 Business News 8470110-23-2013 GOVERNMENT REGULATIONS Note: • % TKDN Service = Total cost (A.V.d) - Total imported component cost (A.V.c) Total cost (A.V.d) • % TKDN Service = Total domestic component cost (A.V.b) Total cost (A.V.d) THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA sgd JERO WACIK ATTACHMENT IV CALCULATION OF LOCAL CONTENT - GOODS AND SERVICE A. COST COMPONENT Cost Summary KDN KLN TOTAL TKDN Rp / US$ % Rp / US$ a b C d e=b/d f= d x e I. GOODS 1. Material used cost Rp US$ 2. Installed equipment cost Rp US$ 3. Sub Total I. Rp US$ II. SERVICES 1. Personnel & Consultant Cost Rp US$ 2. Equipment & Work Facility Cost Rp US$ -- Business News 8470110-23-2013 39 GOVERNMENT REGULATIONS 3. Construction/Fabrication Cost Rp US$ 4. Other service cost etc Rp US$ 5. Sub Total II. Rp US$ Ill. TOT AL COST GOODS + SERVICES Rp US$ B. Non cost component Rp US$ C. TOT AL QUOTED PRICE Rp US$ Note: Total domestic component cost of goods (A.1.3.b) + • % TKDN Combination Total domestic component cost of service (A.11.5.a) Total cost (A.111.d) THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA sgd JERO WACIK 40 Business News 8470110-23-2013 GOVERNMENT REGULATIONS ATTACHMENT V EXAMPLE OF CALCULATION OF FINANCIAL SANCTION AGAINST THE FAILURE TO ACCOMPLISH TARGET OF TKDN AND/OR CORPORATE STATUS 1 . Calculation of Fine Due to the Failure to Accomplish Commitment to TKDN a/or Status Perusahaan - Not Changing Rating of Winner Sup- Description Bid Realization of contract plier Value Rp. TKDN Bid evaluation price Rat- TKDN Bid evaluation price Rat- (%) (Rp.) ing {%) (Rp.) ing A Direct Production Cost 25,000,000,000.00 28.00 23,992,322,456.81 28.00 23,992,322,456.81 (HPb) Transport & Handling Cost 1,500,000,000.00 1,500,000,000.00 1,500,000,000.00 Cost component 26,500,000,000.00 25,492,322,456.81 25,492,322,456.81 Corporate status 2.5 24,870,558,494.45 0 25,492,322,456.81 Non-cost component 2,000,000,000.00 2,000,000,000.00 2,000,000,000.00 Bid evaluation price 28,500,000,000.00 26,870,558,494.45 I 26,972,083,455.77 I B Direct production cost 24,000,000,000.00 0.00 24,000,000,000.00 0.00 24,000,000,000.00 {HPb) Transport & Handling Cost 1,200,000,000.00 1,200,000,000.00 1,200,000,000.00 Cost component 25,200,000,000.00 25,200,000,000.00 25,200,000,000.00 Corporate status 25,200,000,000.00 25,200,000,000.00 Non-cost component 2,300,000,000.00 2,300,000,000.00 2,300,000,000.00 Bid evaluation price 27,500,000,000.00 27,500,000,000.00 Ill 27,500,000,000.00 Ill C Direct production cost 24,500,000,000.00 25.00 23,614,457,831.33 25.00 23,614,457,831.33 {HPb) Transport & Handling cost 1,470,000,000.00 1,470,000,000.00 1,470,000,000.00 Cost component 25,970,000,000.00 25,084,457,831.33 25,084,457,831.33 Corporate status 25,084,457,831.33 25,084,457,831.33 Business News 8470110-23-2013 41 GOVERNMENT REGULATIONS Non-cost component 2,030,000,000.00 2,030.000.000.00 2,030,000,000.00 Bid Evaluation Price 28,000,000,000.00 27,114,457,831.33 II 27,114,457,831.33 II Fine HEP Realization of Contract (A) - HEP of Bid (A) Fine Rp.26.972.083.455, 77 - Rp.26.870.558.494,45 Rp.101.524.961,32 2. Calculation of Fine Due to the Failure to Accomplish the Commitment to TKDN - Changing Winner Rating Ser- vice Description Bid Realization of contract pro- Value Rp. TKDN Bid evaluation price Rat- TKDN Bid evaluation price Rat- vider (%) (Rp.) ing (%) (Rp.) ing A Cost component (HPj) 25,800,000,000.00 50 24,867,469,880.00 45.00 25,634,824,667.47 Of the work executor Non-cost component 2,ooo,000,000.oo 2,000,000,ooo.oo 2,000,000,ooo.oo Evaluation price of bid 27,800,000,000.00 26,867,469,880.00 I 27,634,824,667.47 Ill B Cost component (HPj) 25,200,000,000.00 30 24,645,476,772.62 30 24,645,476,772.62 Of the work executor Non-cost component 2,300,000,000.00 2,300,000,000.00 2,300,000,000.00 Evaluation price of bid 27,500,000,000.00 26,945,476,772.62 II 26,945,476,772.62 I C Cost component (HPj) 25,970,000,000.00 35.00 25,305,724,725.94 25.00 25,305,724,725.94 Of the work executor Non-cost component 2,030,000,000.00 2,030.000.000.00 2,030,000,000.00 Evaluation price of bid 28,000,000,000.00 27,114,457,831.33 Ill 27,114,457,831.33 II 42 Business News 8470110-23-2013 GOVERNMENT REGULATIONS Fine = (HEP of Contract Realization - HEP of Bid) + (Contract Value - Bid Price of Rank 2nd I) Fine = (Rp.27.634.824.667,47 - Rp. 26,867,469,880.00) + (Rp.27.800.000.000,00 - Rp.27.500.000.000,00 = Rp. 767 .354. 788,00 + Rp.1 .000.000.000,00 = Rp. 1. 767 .354. 788,00 THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA sgd JERO WACIK ( R) 43