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FINANCEENTITYPROFILE

FinanceDivisionisasupportingentitywiththemissionofsupportingManagementandotherentitiesin
achievingtheCompanysobjectivesbyprovidingdata,adviceandassistanceintheareasofBudgeting,
CostControlling,Reporting,Accounting,Taxation,Treasury,InternalControlandInsurance.
Inadditiontotheabovemission,bydelegationoftheDG,Financeisanentityguaranteeinginternal
controlinthecompany.
ThemainobjectiveofFinanceDivisionisSafeguardingcompanysasset,interestandoperation.

Inordertoachievethemainobjectiveabove,thereareseveralmainfunctionsdonebyFinanceentity:
1. CashManagement
Performcashmanagementwiththeobjectiveofminimizingbalancecashonhandtoavoid
opportunitylossbymatchingbetweenCashIn(Partner,3
rd
partyandinternal)versusCashOut
(Internal,3
rd
partyandGovernmentofIndonesia).

2. Accounting
Thereare2subfunctionsperformedwithinAccountingfunction:
a. Invoiceprocessingfunctionwiththeobjectivetoensurecommercialandtaxinvoicerelated
tomaterialandserviceprocurementaretreatedproperlyandprocessedaccordingto
contractualterm.
b. Bookkeepingfunctionwiththeobjectivetoensurethataccountingrecordsaremaintained
andkepttrueinaccordancewithGenerallyAcceptedAccountingPrinciplesusedinthe
internationalPetroleumIndustry,PSC/JOAobligations,IFRSandUSGAAPaswellasensuring
theaccuracyandtimelinessofAccountingReport.

3. Tax
Taxfunctionwith2majorobjectives:
a. ToensurethatCompanystaxobligationsaremetinordertopreventorminimizetax
exposures.
b. Toactasvocalpointforbothinternalandexternaltaxrelatedmattersincludingtaxaudit.


4. BudgetandCostControlReporting&Analysis
BudgetandCostControlReporting&Analysisfunctionobjectiveistoassistusersinallfinancial
aspectsbothinDailyOperationandProjectImprovement.Thereare3subfunctionsperformed
underBudgetandCostControlReporting&Analysis:
a. Budgetfunctionwiththeobjectivetoelaborateandoptimizebudgettocoveralltechnical
operationsandsupportingactivities.
b. CostControllingfunctionwiththeobjectivetoensurethatallfinancialfiguresare100%
reliablesothatallaspectsofoperationrunsmoothlytominimizeriskofauditfindingand
issueswithotherrelatedparties.
c. CostReportingfunctionwiththeobjectivetoprovidefeedbackandanalysistousersto
enhancetheproperfollowupandefficiencyoftheiroperation.

5. FinancialReportingtoHeadOfficeandGovernmentofIndonesia
Ingeneral,thereare2majorstakeholdersofManagementReportproducedbyFinancialReporting
function,externalparties(Governmentandotherparties)andHeadQuarter.
TheobjectiveofFinanceReportingfunctionistoensurefinancialinformationiswellupdatedand
availabletimelytoTEPIManagementaswellasHeadQuarterandexternalparties.

6. RiskManagement
RiskManagementfunctionobjectiveistoensurecompanysassetarewellprotectedandcontrol
throughinsuranceservice.

7. BusinessProcessImprovement
Thereare3subfunctionsperformedunderBusinessProcessImprovementfunction:
a. Controlfunctionwiththeobjectivethatinternalcontrolareperformedeffectivelyandin
timelymannerwithintheEntityLevelControlframework.
b. Reviewfunctionwiththeobjectivetoidentifyroomforimprovementandreviewany
deficiencyinFinanceBusinessProcesses(MethodandProcedure)aswellasFinance
BusinessSystem.
c. Improvefunctionwiththeobjectivetoimplementanyimprovementidentifiedasadditional
roomforimprovementandalsoimprovementduetoidentifieddeficiencyinFinance
BusinessProcesses(MethodsandProcedures)aswellasFinanceBusinessSystem.


FollowingareseveralreportsproducedbyFinanceEntity: