PT Chandra Asri Petrochemical

JAGO Rev. 0

Updates on the monthly finance performance,

the target/realization of synergy with CAP as well
Page 1 of 3
Document No: JAGO/CAP/20230531/II as the condition precedents and projects of KTI,
KDL and SRI.

MINUTES OF MEETING

MOM No. JAGO/CAP/20230531/II

Updates on the monthly finance performance, the target/realization of synergy with
Meeting Subject CAP as well as the condition precedents and projects of KTI, KDL and SRI.
‘[
Date and Time 31 May 2023 @ 10.00 PM
Location Agung Room 7A
CAP BOD: JAGO Working Team:
 Bpk Erwin Ciputra;  Bpk Agus L. Hakim;
 Bpk Andre Khor;  Bpk Harry M. Tamin;
 Bpk Suryandi;  Bpk Ahmad Dhahnial;
 Bpk Ruly Aryawan;  Ibu Irena Agustina;
 Ibu Athira Hana;
 Ibu Neysa Safira;
Attendees

Attachment -

All parties confirmed and agreed the minutes of meeting on the following pages.

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 PT Chandra Asri Petrochemical

JAGO Rev. 0

Updates on the monthly finance performance,

the target/realization of synergy with CAP as well
Page 2 of 3
Document No: JAGO/CAP/20230531/II as the condition precedents and projects of KTI,
KDL and SRI.

TOPIC PIC Remarks

Monthly Finance Performance of KTI

1. Sales Volume
For April, it has slightly reduced due to Ied Holiday. For
HSM I incident, it has reduced KTI sales volume to
Rp1,25billion in May.

2. Net Income
Slightly increased by some efficiency so KTI can keep To be updated in next
USD10million of dividend. Agus
meeting
3. Distribution of dividends
 KS intends to take 70% of KTI's interim dividend
now, and the remaining part will be taken later. KTI
to push the dividend to 100% first.
 The AGMS to distribute the dividend will be
conducted in June. However, the financial
statements of KTI for FY2023 have not been audited
by its public accountant.

Monthly Performance of KDL

1. Volume and Revenue

The volume comparing to April 2022 is increased, due to
pembangkitan, so we can inscrease our revenue.

2. EBITDA
 Increased comparing to March 2023 and April 2022
due to profit to electrical services.
 In detail, KDL’s profit last year was volatiled. This To be updated in next
Harry
year, KDL tries to stabilized (increase) it coming to meeting
electrical services.

3. HSM Case
 Since the monthly performance is as of April 2023,
the HSM incident have not yet reflected in this
presentation. But the mentioned incident will surely
impact KDL’s business.
 There are possilibilities this incident will continue to
impact KDL (and KTI) beyond 2024.
 KS still manage asking KP to search the equipment.

Monthly Finance Performance of SRI

1. Net Income To be updated in next
Ahmad
SRI’s net income for this month is negative due to the gas meeting
price in Europe is down so the energy price is cheaper.
SRI has to be diligent and focus on net income.

Confidentiality Disclaimer: This document is confidential. Any form of reproduction, dissemination, copying, disclosure,
modification and/or publication is strictly prohibited without the expressed permission of PT
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 PT Chandra Asri Petrochemical

JAGO Rev. 0

Updates on the monthly finance performance,

the target/realization of synergy with CAP as well
Page 3 of 3
Document No: JAGO/CAP/20230531/II as the condition precedents and projects of KTI,
KDL and SRI.

Target/Realization of Synergy with CAP Y2023 of KTI

1. Sea Water Treatment & Desalination
KTI is currently in negotiations with Ecolab.

2. CAP to stop 1 (intermittent) of two desalination units

and use water from KTI
 KTI has discussed with the technical team about this
project.
 The technical team is currently checking if the
stoppage of desalination units will cause any
damage. If there is no issue, the units can be
stopped.

3. Industrial/Demin Water Supply to CA/EDC and other

Companies
 KTI is currently examining whether it is possible to
supply Demin water to CA/EDC and other To be updated in next
Agus
companies. meeting
 KTI is also exploring suitable pipelines to supply the
water.

4. PE Pipe grades for piping facilities

 These pipelines will be distributed from Sidang Heula
and Karian Barat Dams to KTI.
 KTI confirmed at the meeting that this project will be
conducted from 2024 until 2025.

5. KTI’s Land Sale at KDL area

 KTI intends to sell its land in KDL’s area with a total
area of 15,000 m2 to CAP, CAA or KDL.
 CAP’s BOD responsed that it is not critical to sell this
land to CAP because CAP’s top priority is to
purchase KS’ Land.

Harry To be updated in next

Target/Realization of Synergy with CAP Y2023 of KDL
meeting
1. Completed awards
KDL has completed (i) the award spot PO/WO (Overhaul
Motor, Busduct Trafo, etc.) with a total amount of US$124
thousand and (ii) the award contract chartering with a total
amount of US$370 thousand.

2. Potential awards
The potential awards may be conducted for (i) the blanket
services motor package (technical clarification) with a total amount
of US$100 thousand and (ii) Mini TAM 2023 with a total amount of
US$338 thousand.
3. Rooftop Solar Panel (KDL-Pancapuri)

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modification and/or publication is strictly prohibited without the expressed permission of PT
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 PT Chandra Asri Petrochemical

JAGO Rev. 0

Updates on the monthly finance performance,

the target/realization of synergy with CAP as well
Page 4 of 3
Document No: JAGO/CAP/20230531/II as the condition precedents and projects of KTI,
KDL and SRI.

This project will not continue because, based on the roof

structure analysis report, it is not feasible to install the
solar panel on the roof of Pancapuri’s warehouse.
[Closed]

4. Floating Solar at KTI Reservoir, Krenceng Lake

 This project must be executed after the KPE share
project.
 CAP will sign its employee from project management
and legal to assist KDL in this project, since KDL has
no manpower with its certain skill to do the project.
 KDL has liaised with KTI to assist KDL in obtaining
required licenses from the Ministry of Public Works
and Public Housing (“PUPR”).
 KDL will build a floating solar plant for the amount of
US$9.4 million for 9.6MWp, which is equivalent to
5% (five percent) of the total surface.
 According to Pak Harry’s explanation, the local
content (tingkat komponen dalam negeri) for the
floater is 40% (fourty percent). CAP’s BOD was of
the view that this percentage needs to be discussed
with the counterparty in China.

5. Request to swap its land with KS land

KDL has received KS’ formal letter. However, KS cannot
accept the land swap request. [Closed]

Target/Realization of Synergy with CAP Y2023 of SRI

SRI to provide a project
Ahmad outline to realize its
SRI does not have any project related to CAP at the moment. So,
synergy with CAP
CAP’s BOD requested that SRI present an outline of its new
upcoming project to synergize with CAP in the next meeting.
Agus 1. To be updated in
Follow up on KTI’s Condition Precedent
next meeting.
1. The intercompany loan amendment between KBK and 2. KTI to summarized
KTI all CPs to track
The amendment has been signed on 14 March 2023. But which CP already
KBK has not yet paid the interest. closed or still open

2. KE-PKPU
 According to Pak Agus’ explanation, KTI and KDL’s
receivables will be converted into KE shares with a
buyback option (depending on the financial condition
of KE).
 The buyback period will start in Q4 2023.
 According to Pak Harry’s explanation, there are
creditors appealing the homologation or PKPU
decision so KE cannot executed the debt to equity

Confidentiality Disclaimer: This document is confidential. Any form of reproduction, dissemination, copying, disclosure,
modification and/or publication is strictly prohibited without the expressed permission of PT
Chandra Asri Petrochemical.
 PT Chandra Asri Petrochemical

JAGO Rev. 0

Updates on the monthly finance performance,

the target/realization of synergy with CAP as well
Page 5 of 3
Document No: JAGO/CAP/20230531/II as the condition precedents and projects of KTI,
KDL and SRI.

swap yet.
 KTI receivables is around IDR650mio.

3. PPKT’s debt to KTI amounting to Rp13 billion

 According to Pak Agus’ confirmation, PPKT will be
given a loan from SMI to pay its debt to KTI,
amounting to Rp13 billion.
 The loan will be used by PPKT to cover its additional
project cost (cost overrun).
 Follow-up issue: PPKT (through PP) wants to sell its
shares to KTI, and KTI needs to know the shares
valuation.
 CAP’s BOD requested that KTI not agree with any of
PPKT’s or PP’s proposals.

4. Pasauran Land
The covernote on Pasauran Land is still under process
with the third party for an SPH.

5. Kosambironyok Land
KSI is currently verifying the sale and purchase of
Kosambironyok Land. The deadline is on 27 August 2023.

6. KTI’s Operational Permit

KTI is currently processing its permits, i.e., the operational
permit of the electricity business license and the B3 waste
temporary storage license, which is valid to February
2024.

Condition Precedent and Updated Projects of KDL

1. Purchase of KPDP shares by KDL
KS insists to place its 200 manpowers in KPDP. KBK
stated it can be negotiated. Its due on 30 June 2023. Our
stance is the placement of KS’s manpowers can be done
only if there is a job for the manpowers.
To be updated in next
Harry
2. KE-PKPU meeting
Not discussed.

3. SUTET relocation contract

Not discussed.

4. Land replacement
Not discussed.
Agus To be updated in next
Updated Projects of KTI
meeting
1. PPKT Gresik
 PP plan to sell 30% (thirty percent) of their shares in
PPKT. PP provide a valuation price in the range of

Confidentiality Disclaimer: This document is confidential. Any form of reproduction, dissemination, copying, disclosure,
modification and/or publication is strictly prohibited without the expressed permission of PT
Chandra Asri Petrochemical.
 PT Chandra Asri Petrochemical

JAGO Rev. 0

Updates on the monthly finance performance,

the target/realization of synergy with CAP as well
Page 6 of 3
Document No: JAGO/CAP/20230531/II as the condition precedents and projects of KTI,
KDL and SRI.

Rp85 billion to Rp100 billion.

 KTI has hired its own appraiser to know the shares
valuation. As for now, the appraiser has only
valuated KTI’s assets and not its business model yet.
 In the legal aspect, there are no specific provisions
on offset and requirements to pay an overrun cost in
the JV Agreement of PPKT.

2. DDWP Sumbawa
 Currently under construction, 38% (thirty eight) of the
construction are complete.
 KTI is targeting the completion of this project by
November 2023.

3. Karian Barat and Sindang Heula Dams project

 KTI intends to integrate two dams and one
consortium through a Public-Private Partnership
(Kerja Sama Pemerintah dan Badan Usaha or
KPBU) scheme.
 KTI is still in a discussion with the consortium
participants. Afterwards, they will arrange a high-
level meeting with officials from the local government
of Banten and the Ministry of PUPR.
 The consortium project involving KTI, AdiKarya, UCS
and Raja as participants. However, this project is
currently on hold because of an internal issue
between UCS and Raja.

KTI Consortium Project
 There is a potential consortium project involving KTI,
AdiKarya, UCS and Raja as participants. However,
this project is currently on hold because of an
internal issue between UCS and Raja.

4. Water ex-SWRO, AHS

KTI is still discussing the issues that may arise in this
project, i.e., the quality treatment, the investment cost,
pipe facilites and the project price. [Sedang ekplore
menggunakan Pipa Indonesia Power]

5. Cidanau Dam and WTP

 KTI is still discussing with officials from the Ministry
of Public Works and Housing about the business
scheme.
 The target of delivery is in 2029.
Harry To be updated in next
Updated Projects of KDL
meeting
1. New MCW System for CCPP
 Based on KDL’s discussion with CAP team, CAP

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modification and/or publication is strictly prohibited without the expressed permission of PT
Chandra Asri Petrochemical.
 PT Chandra Asri Petrochemical

JAGO Rev. 0

Updates on the monthly finance performance,

the target/realization of synergy with CAP as well
Page 7 of 3
Document No: JAGO/CAP/20230531/II as the condition precedents and projects of KTI,
KDL and SRI.

does not intend to use KDL’s MCWP facility. CAP

also suggests KDL to maximize the existing MCWP
usage, which can be done by revitalizing or
modifying.
 In line with the explanation above, KDL has planned
to conduct an additional study, and currently, a
consultant has been appointed for the revitalization
plan.

2. Floating Solar Panels as Krenceng Dam 9.6 MWp

 KDL and KTI are currently drafting a Memorandum of
Understanding (MOU).
 KDL is currently preparing a letter to officials of the
Ministry of PUPR.
 KDL is requesting a feasibility study and has
requested the consultant’s quotation.

3. Electronic Vehicle (“EV”) Charging Station/SPKLU at

Wisma Barito Pacific
 Star Energy intends to buy EV cars, which requires
charging stations to be installed in its office, i.e.,
Wisma Barito Pacific.
 KDL has presented the proposal to Griya Idola about
the charging station installment. KDL offering price
to Griya Idola was Rp700 million per site.
 KDL has also discussed this project with the supplier
from China and submitted a cooperation or EPC
proposal.
 In line with the explanation above, KDL will sharpen
the cooperation scheme and look for other
alternative suppliers.

Ahmad To be updated in next

Updated Projects of SRI
meeting
1. SRI’s Governance
As of now, SRI is attending to the following corporate
governance matters:
 Minutes of Meeting of the BOC Meeting
 Approval from SRI’s BOC for SRI’s annual report and
financial statements for FY 2022
 BOC Circular Resolutions regarding the logistic cost
increment
 BOC Circular Resolutions regarding the BOD’s
scorecard and remuneration
 Joint Venture Contract Governance, in order to
ensure compliance with the reserved matters of
Shareholders and the BOC of SRI
 Loan interest for the Libor/SOFR transition

Confidentiality Disclaimer: This document is confidential. Any form of reproduction, dissemination, copying, disclosure,
modification and/or publication is strictly prohibited without the expressed permission of PT
Chandra Asri Petrochemical.
 PT Chandra Asri Petrochemical

JAGO Rev. 0

Updates on the monthly finance performance,

the target/realization of synergy with CAP as well
Page 8 of 3
Document No: JAGO/CAP/20230531/II as the condition precedents and projects of KTI,
KDL and SRI.

2. SRI Resignation Case

 There were eight resignation cases in April, of which
9% (nine percent) were SRI production operators
that joined Lotte for higher positions. These positions
account for 12% (twelve percent) of the critical
positions in the production department.
 This case is a part of SRI’s risk assessment and SRI
has anticipated this turnover.
 Mitigation actions have been taken since December
2022. However, SRI did not convey any objection to
Lotte.

3. SRI’s concerns for Lotte’s next recruitment cycle

 SRI has the risk of losing 3 (three) to 13 (thirteen)
employees and different from the April case, this
cycle will most likely disrupt the operational activities
of SRI.
 Internally, SRI will continute to take action to ensure
SRI’s business continuity.
CAP will prepare the
Others
management service
1. Subsidiaries’ Manpower agreement draft.
 KDL now has 1 legal on contract basis. But at the
same time CAP legal team will also assist KDL if
needed.
 If in the future there are lots of contact or legal
aspect of KDL/KTI that need to be reviewed by CAP
legal team, then they can hire more people if
needed.

2. Management Services Fee for KTI

 KS has delivered a management fee holding letter to
its subsidiaries (including KTI).
 In this letter, KS will charge KTI management service
fees amounting to Rp1.5 billion per month. However,
the letter does not comprise further details about the
said services (e.g., nature of work, contractual
framework).
 CAP’s BOD responded that KTI needs to understand
the justification of the provided management service
fees.
 In line with the above, CAP will prepare a service
agreement for KTI.

3. CDI Organization Structure

 CDI will holds subsidiaries for utilities and
infrastructure business. Whether SRI will be moved
to CDI, it will be on another discussion.
 CAP intends to appoint Ibu Melati from KS to be the
President Director of CDI.

Confidentiality Disclaimer: This document is confidential. Any form of reproduction, dissemination, copying, disclosure,
modification and/or publication is strictly prohibited without the expressed permission of PT
Chandra Asri Petrochemical.
 PT Chandra Asri Petrochemical

JAGO Rev. 0

Updates on the monthly finance performance,

the target/realization of synergy with CAP as well
Page 9 of 3
Document No: JAGO/CAP/20230531/II as the condition precedents and projects of KTI,
KDL and SRI.

 Soon CDI will have proper organizational structure.

4. Project Management Services for KDL

 The CAP's BOD stated that they will assign people to
help KDL carry out a big project to build a solar
panel, for which CAP will provide services and KDL
team will pay them.
 In line with the above, CAP team will provide a
service agreement to KDL.

5. Management Service Agreement CAP-SRI

CAP’s BOD and SRI have agreed not to execute their
management service agreement.

6. KS’s land sale to CAP/CAA

CAP/CAA intends to purchase KS’s land of approximately
31Ha. On the negotiation process, CAP will request KS to
fulfill or complete all KS/KSI’s CP first.

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modification and/or publication is strictly prohibited without the expressed permission of PT
Chandra Asri Petrochemical.