Our ref: JKT501232

Date: 27 July 2007

To: "Irene Retnosari" <Irene.Retnosari@Allianz.co.id>
CC: Budi Maharesi
BCC:
From: Andi Iljas
Reply To:
Subject: Flood Claim - PT Jakarta Steel Mega Utama, our ref. JKT501232 (Email
attached by - Andi Iljas from mail file 'Andi Iljas')

Dear Irene,
At present there is no subsequent Report since our First Report date 23 February 2007.
Upon progress development of this case, we have last visited the loss premises on 16
March 2007 after receiving information that the Continuous Steel Casting Plant has been
operated and recovered from the flood. However, we noted that at that time, the Rolling
Mills Plant was still on the recovery process, the damage was still under the Insured's
inspection and testing.
We met and discussed the claim handling process with Mr. Irwan on behalf of the
Insured at that time. To finalise the claim, we were told that he will compile claim
supporting documentation to be submiited to us to enable us processing this claim
further.
However, none has been received up to date. Given circumstances, we will contact the
Insured and prepared to arrange a site visit again next week.
In regards to the Reserve set out in our First Report, having examined the extent of
damage observed during our last inspection, we consider that the damage was not as
severe as we first thought, thus we are prepared to reduce our Reserve
recommendation on the Machinery from USD 2,000,000 to USD 300,000, whilst we
maintain our level of Reserve on other insured items, Building and Contents, USD
50,000 each. Thus Total Reserve is now USD 400,000.
Trust the above will clarify the situation and we are prepared to issue our subsequent
report following our third visit next week.
Regards,
Andi B. Iljas
ClaimCare - Absolute Transparency

McLarens Young International

Global Claims Services
Ventura Building, 6/F JI RA Kartini No 26, Cilandak, Jakarta 12430, Indonesia
Tel: +62 (0)21 750-4514 Fax: +62 (0)21 750-4569

ClaimCare - Absolute Transparency