'PERTAMINA

KILANG PERTAMINA
BALIKPAPAN

Balikpapan, June Itj 2021

No.j^ /KPB1000/2021-S0

Subject Labor Accommodation Strategy - Critical Concern

Reply Request ■ Yes □zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
No

Attn. Mr. Yun Dong Kim

Project Manager ERG ISBL-OSBL
ROMP Balikpapan JO,
JO Office Menara Jamsostek Level 7
Jl. Gatot Subroto No. 33 Kav 71-73
Jakarta Selatan 12710, Indonesia

Dear Sir,

OWNER writes with reference to its ongoing major concern at CONTRACTOR'S lack of planning
and strategy with finalizing an appropriate worker accommodation facilities.

CONTRACTOR submitted a reforecast L3 schedule that identified that CONTRACTOR should be

at 4,500 direct labor by the end of June-21, rising to 9,700 direct labor by the end of August -21,
however, CONTRACTOR'S response in the recent sponsor's meeting on
worker accommodation identified that CONTRACTOR is citing COVID-19 as its basis to not have
a finalized plan in place. Therefore, this lack of mitigation is contrary to CONTRACTOR'S
submitted and subsequently rejected L3 reforecast schedule and is also a breach of
CONTRACTOR'S contractual obligations to mitigate any event and/or circumstance that may
occur during project execution that adversely impacts the project. OWNER will address this
matter directly in due course and under separate cover.

Without procrastinating this issue any longer, CONTRACTOR is firmly instructed to finalize its
accommodation plan and strategy without any further delay. CONTRACTOR is requested to
submit within three days of this letter its plans to OWNER and to hold a
specific labor accommodation workshop meeting with all required personnel so the parties can
work together to finalize this long pending and unresolved issue that is serving to adversely
impact the project schedule. The meeting shall take place week commencing 21st June and
CONTRACTOR shall come fully prepared with its plan and strategy to discuss with OWNER with
a view to having a final plan agreed that shall be immediately Implemented. OWNER shall not
accept any further delays by CONTRACTOR on this matter.

PL KILANG PERTAMINA BALIKPAPAN

Jl. Yos Sudarso No 01 Balikpapan
 PERTAMINA
KiLANG PERTAMINA
-2- BALIKPAPAN

No. I# /KPB1000/2021-SO
OWNER trusts that CONTRACTOR understands OWNER'S firm position on this and looks
forward to CONTRACTOR'S immediate action and long pending resolution to its labor issues in
order to generate critically needed project progress.

Thank you for your kind attention and cooperation.

Sincerely yours,

Development Director,

I Djoko Keen Soewlto

CC:

PMC Project Manager