5.

0 Management Commitment and Leadership

Commitment and Leadership is essential to minimize HSE risks and improve performance.
Total commitment from the top management up to line managers at all levels is mandatory
and shall be decided as top priority.

Operations Manager, Field Service Manages, Chief Operators, Supervisors and Field
Engineers on site are also considered as Line Managers over the part of operations and
they are directly responsible for the HSE performance of their operations.
The HSE function staff is in place to provide line management with tools, training,
guidance, analysis, and advice, but the responsibility for HSE always rests with the Line
Management.
All managers shall have strong leadership to show the obvious commitment for HSE
through:
 Full participation in any HSE activities such as site visits, monitoring and control of
HSE implementation, audits etc.
 Attendance of monthly general safety meetings, monthly HSE Committee meetings
and quarterly Emergency Response Team meetings.
 Empowerment of the HSE Officer and HSE Committee Team in deciding HSE
issues, which involve a reasonable cost impact.

 Monitor and ensure the closure of preventive action items, gaps or findings from
safety inspections, safety observation program etc.

5.1 Setting Policies and Objectives

5.1.1 Policy

Managers at all level are responsible for defining and implementing HSE policy that
meet applicable internal and external requirements.
 Health, Safety and Environment (HSE) Policy to ensure that the business and
operations protect the stakeholders’ safety and health and maintain balance
between of the commercial needs and the environment.
 Quality Policy which shall result in the quality of products and services
exceeding the clients’ expectations.
 Drug and Alcohol Policy to free the working area from any drug and alcohol
influences
 Driving Policy, realizing that traffic accidents has been the 3rd killers in
Indonesia and about 90% of the accidents was due to human errors.
All the Policy shall be introduced to all employees through the communication means
such as Bulletin Board, Regular HSE Meetings as well as In-house HSE Trainings.
Any changes of the Policy shall be announced and distributed to all employees for
immediate implementation through notice posted in the Bulletin Boards in all work
locations, written notifications by email as well as induction training due to any Policy
changes.
 5.1.2 Objectives

HSE is an integrated part of the Company’s long term, strategic business objectives. It
is the Company’s vision that the HSE objectives should support the business
objectives.
Company shall identify and set the HSE performance targets. These targets shall be
communicated to all stakeholders, including Clients, employees, and contractors.
Employees and contractors shall be informed about “what” the targets are and “how” to
achieve them. Monitoring and review programs shall be in place to assess HSE
performance against the objectives.
All staff members shall have their individual HSE objectives as part of their overall job
performance objectives. These HSE targets are reviewed at least twice in a year and
shall be one of the key factors of their annual performance appraisal.
Following is annual Company’s HSE objectives:

 Zero Fatality
 No Loss Time Incident (LTI)
 Hydrocarbon Spill < 1 Bbl
 Total Damage and Loss of Assets < USD 1,000
 Management site visit and inspection is twice a year
 Employees Medical Check Up: 100%
The above targets are in-line with the Indonesia HSE objectives in Oil, Gas and
Geothermal business.
5.2 Management Commitments towards HSE:
The Management, representing by Managing Director shall continually review, up-date
and improve the effectiveness of the HSE Management System by:

 Communicating to the staff on the importance of meeting customer satisfaction

through briefing, meetings and memos. Top management shall establish specific
objectives for the products/services. In the area of environment the commitment
starts with the “green office and energy saving” campaign in daily office activities.
 Establish general policies and objectives.
 Conduct the annual management review meeting.
 Ensure availability of fund (budget) and resources.
 Top Management shall ensure that customer requirements are determined and are
met with the aim of enhancing customer satisfaction.
 Documented procedure is established to identify occupational health and safety
hazards of the organization’s activities, products and services that the organization
can control.

5.3 HSE Communication

Effective communication process shall be established to ensure proper communication

throughout the organization. An effective two-way-communication shall also be maintained
with the Clients, vendors, government authorities and other related third parties.
HSE regular meetings within the organization are the popular, applicable method of
communications. Other techniques are through Bulletin Boards, HSE Posters, Corporate
Policy Statements, Emergency/Alert Procedures, Stop-cards, Safety Signs, Safety award
etc.

Management shall ensure that the policy established in this Manual is communicated well
and fully understood by all employees within the Organization.

 Internal Communication:
Management shall communicate to the staff, through the department heads, on the
effectiveness of the quality management system. The communication shall be via
one or more of the following means: Management Review, circular email, Notice
board, and Staff briefing.

HSE policy statements and objectives, minutes of meeting, inter-office

memorandum pertaining to quality matters shall be circulated or posted on the
notice board to create awareness on the effectiveness of the quality management
system.

Company safety / HSE meeting shall be conducted regularly; e.g. daily, weekly, bi-
weekly or monthly, whichever necessary or as required by clients. The regular HSE
meeting shall be conducted by each company location.

 External Communication
Management is responsible to establish and maintain procedures for receiving,
documenting and responding to relevant communication from external parties (e.g.
non-governmental organization, customers, bankers, insurance companies and
regulatory bodies).
Legal and other requirements; Management shall ensure that the policy is in
compliance with the appropriate and applicable government legal regulations.

Procedures and standards shall be clearly communicated to all concerns and the
effectiveness of this communication shall be reviewed continuously. However, the
information system should also protect the security and confidentiality of all proprietary
and Client’s data.

5.4 Management Review

Top Management shall conduct Management Review with relevant department heads at
least annually to discuss the HSE issues, such as: Client/Customers’ feedback, monitoring
progress of the preventive and corrective actions, follow-up actions from previous
management reviews, providing recommendation for improvement of the existing HSE
Policy and Objectives, process performance and product conformity, improvement of
product related to customer requirements; and the resources needed.

5.5 Corporate Responsibility

Top Management (the President Director) is fully responsible in achieving the overall HSE
objectives and the implementation of the HSE Policy shall be an integrated part to achieve
the Company’s business goals.
 Within the organization the top management’s responsibilities and authorities towards
HSE is delegated to the Managing Director as the most senior manager who acts as
Chairman of the HSE Committee for managing day-to-day HSE process.

6.0 Recruitment, Orientation and Training

6.1 Recruitment Process
During the recruitment and selection process, HRD (Human Resources Department)
should have closed communications and coordination with HSE functions (HSE
Department.):
a) HRD in coordination with HSE Manager has to review the candidate’s knowledge and
experience regarding HSE and see its concern and capability against the minimum
requirement. Unfit condition of the Medical Check-Up (MCU) result shall considerably
reject the employment.
b) Based on result of the above process, a proper HSE orientation and training program
should be established accordingly and the training results should be recorded and
well documented.
c) The new hired employee(s) will have to read and understand clearly all HSE Policy
Statements as a mandatory condition of the employment agreement.

6.2 Orientation Program (Induction Training)

Health, Safety and Environment (HSE) training constitutes a significant portion of the new
Employment Orientation Program. All new employees (i.e. either newly hired employees
or transferred employees) as well as the main and the long-term relation sub contractors
are required to participate in the program.

The main objective of this program is to understand basic HSE procedures, before start
working at the job sites. Furthermore, they require attending the HSE Management
System and HSE New Employee Checklist (NEC) presentation which will serve as an
initial personal HSE record.

The HRD & HSE Department shall be responsible for the implementation of the Employee
Orientation Program and any other relevant HSE trainings of all new employees before
starting their assignments.

Upon completion of the orientation, the authorized HRD & HSE Managers will endorse the
HSE-NEC list of the employee concerned.

At the work site, an appropriate member of the crew will be assigned as a mentor to a new
employee. The mentor must train the new employee and provide answers to the new
employee’s questions, and make sure that the orientation program is satisfactorily
completed.

Record of the orientation activities during this program shall be documented and filed
accordingly.

The employee orientation program should contain the following information and tasks:
 1) General Information of the job location, list of contacts in case of emergency, field
organization, employee’s rights and responsibilities in respect to HSE, HSE reporting
types and system, surrounding vital locations etc.

2) Information of the Job by introducing the employee to Client’s Representative in

work location, his direct supervisor, detailed job descriptions, and Emergency
Response Plan.

3) His/her right to stop any unsafe jobs, information on any specific hazardous
situations, all safety facilities and locations such as escape route, muster points,
locations of fire extinguisher, first aid stations, clinic, accommodation, etc.

4) HSE Requirements such as company’s available HSE Policy and Standards with
special emphasize on Driving and Drug-alcohol Policy, PPE requirements, HSE
hazards, and required HSE trainings.

6.2 HSE Technical Trainings

The technical trainings shall be conducted to all levels of employee depending upon their
job responsibilities and work locations. The training shall be continuously programmed in
order to improve each employee’s competency.

The program shall include the following trainings i.e. Risk / Hazard Reporting, Defensive
Driving, Fire fighting, First Aids, CPR, Health & Hygiene, Environmental Awareness,
Handling & Lifting, H2S, HUET, Working permits, PPE, HSE Management Trainings and
workshop, Risk Management Concept, Emergency Plan and Alert Procedure, Accident
Analysis, etc.

7.0 Contractors and Suppliers (Vendors) Management

Suppliers and contractors shall be managed to ensure that their products and services
meet the applicable HSE standards.
7.1 Evaluation and selection of Vendors’ Qualification
Qualification of suppliers and contractors shall be evaluated and selected based on their
ability to deliver the best quality product or services at the promised delivery time, in a
safe, healthy and environmentally acceptable manner.

Company’s standard (general) as well as special terms and conditions shall be included in
any PO (Purchase Order) / SO (Service Order) issued to the vendors. They shall cover not
only commercial terms and conditions but also others related to Quality and HSE standard
of performance.

Contractors & Suppliers which do not meet the minimum HSE requirements shall be
disqualified and excluded from the vendor list.

In some occasion it should be clearly stated that the terms and conditions shall be back-to-
back with the Clients’ requirement.
Vendor selection for specific materials, goods and services shall be made by the
procurement of Supply-Chain-Management Department by optimizing the administrative,
technical (including HSE) and commercial aspects.

Workshops, Safety Meetings, and Toolbox meetings will be used to include and integrate
subcontractors into the Company HSE Management System.

A pre-contract (kick-off) meeting will be held to ensure subcontractors understand their

obligations to conduct the required HSE training for its personnel and what kind PPE
should be supplied to conduct the job.

7.2 In compliance with HSE Requirements

Suppliers and contractors shall be committed that their HSE performance conforms to the
contractual requirements. A system shall be designed to manage effective
communications between company and the vendors regarding provision of the best quality
of products and services delivered at the promised delivery date

This requirement shall be part of the Supply Chain Management process.

7.3 Performance Monitoring and Control

Mechanisms to monitor contractor HSE performance shall be implemented. Good HSE

performance shall be expected and recognized mutually; and Contractors shall be actively
involved in the continuous improvement process. Poor HSE performance shall not be
tolerated and may result in early termination of the contract and/or application of penalty.

Rank of vendors competency shall be made based on evaluation of their past

administrative and technical performance and experience with either the company or other
clients for the same products and services.
For day to day monitoring and control, an action register file is utilized on each company’s
location. The person in charge for tracking all action items is the local HSE Officer. The
action register file controls the update of each action items and consists of inspection /
audit results, Stop cards, safety meeting, and others.

7.4 Special Requirements for Consultants

The following requirements shall apply to a consultancy services:

 Consultants must provide his/her resume (including the work experience) for
review as part of the evaluation and selection process. The experience must
include all HSE trainings, all operational experiences, the highest job position
and a list of previous employers. This information must be available at least for
the past five (5) years.

 A new consultant, or one who has not worked for company before, must
conduct an HSE orientation program. An HSE passport will be given upon
successful completion of the orientation and the training results shall be
recorded.
  Company shall provide each consultant with a set of Personal Protective
Equipment according to the minimum PPE requirements.

 A new consultant must provide results from a medical examination taken within
the last two years. A medical examination is required for new consultant who is
unable to provide the valid medical records.

When applicable, the consultant must adhere to any medical check-up as required for the
job concerned. An unfit condition resulted from the Medical Check-up shall not be
tolerated.

8.0 Hazard and Risks Management

The first step in controlling hazards and reducing the associated risk is to identify the
hazards themselves, which could potentially harms PT Prowell Energi Indonesia and third
party personnel. A risk management system and procedures should be put in place in
order to minimize the impact of these hazards.

In order to identify the hazards associated with our activities, comprehensive risk
assessment has to be conducted to new operation area or projects. Introduction of Job
Safety Analysis (JSA) to all operational areas, including the office environment, has
proved both popular and highly effective in hazard identification and risk management.

 A JSA is carried out before a work starts by identifying hazards at basic steps of job
tasks and providing control plans so that the job can be safely and efficiently
executed.

 Risk Assessments (RA) should be carried out on operations to assess the overall risk
associated with a project or program. The RA would normally be done at the office
level, after a site visit, when planning for the work program or project.

Incident, Accident and Safety Observation Card reports all provide valuable information to
assist in controlling risks and have a positive impact in reducing hazard potential and
specifically recurrence. Accident investigation / reports, circulars and alerts ensure this
information and data is distributed, both internally, and also to appropriate third parties.

Management should request that a workplace risk assessment be carried out and
forwarded to the office, when there is a significant change in the work program or there are
obvious work hazards that need to be managed to ensure a safe work site. It is very
important to ensure that the new control measures do not introduce another hazard.