PT Johnson & Johnson Indonesia, Medical Division

STANDARD OPERATING PROCEDURE

TRAVEL POLICY

Issue/Effective Date January, 2005

1st RevisionDate January 2, 2008
Type Finance
Approved By 1. Hemant Desai
(Finance Director)
2. Ratrelis V. Canny
(HR Director)
3. Lester Lee
(Managing Director)
Travel Policy

1. PURPOSE OF POLICY
The purpose of this policy is to communicate specific guidelines and procedures adopted
by Johnson & Johnson Medical Indonesia, regarding the Travel Policy. This policy also
serves to communicate procedures necessary for the completion of the Travel
Approval Form (Air/train Ticket and/or Hotel requisition form) and Traveling
Document Requisition form.

The policy enclosed is to be consistently practiced at all times. The Managing Director
and/or Finance Director shall approve any exception to the policy contained
herein.

2. GENERAL
2.1. Employee’s Responsibility

2.1.1. Employees should be aware that the business trips are expensive in terms
of the time involved and the expense incurred. Teleconferencing or
Videoconferencing facilities shall be considered in lieu of travel.

2.1.2. In general Employees are discouraged from having spouses & children
accompany them on business trips. All instances of spouses, & children
accompanying employees on Business trips must be pre-approved by the
employee’s supervisor, Functional Heads and MD.

2.1.3. Employee takes the responsibility to absorb the full cost of an employee’s
spouse & children accompanying on a business trip.

2.1.4. Employees are required to use the Travel approval form and
Traveling Document Requisition form for any upcountry and overseas
traveling request. Employees are required to provide a clear explanation
of the reason for any business trips request.

2.1.5. Employees should ensure that the Travel approval form and
Traveling Document Requisition form is supported and attached with
all appropriate supporting documents before forwarding for approval.
Examples of supporting documents are official training
proposal/communication, sponsorship proposal signed by the related
doctor (incl. original hospital stamp), etc.

2.1.6. Employees are encouraged to submit their Travel approval form and
Traveling Document Requisition form to the designated approver in a
timely manner. The approved Travel approval form and Traveling
Document Requisition form should be submitted to the person dealing
with Amex before 14 days respectively for Local and International travel
from the date of travel. The approved “Travel Approval Form” will be
communicated to Amex by “ Amex/Travel Coordinator”

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Travel Policy

2.1.7. Employees should be aware that the Travel approval and Traveling
Document Requisition request is ‘wholly exclusively and necessarily
expended in the course of the business for the Company’.

2.2. Approver’s responsibilities

2.2.1. The original Travel approval form and Traveling Document Requisition
form must be duly signed and approved in accordance with Approval
Authority Guideline below.

2.2.2. Only approved Travel approval and Traveling Document Requisition shall
be processed by person dealing with Amex.

Travel Approval Limit Approval Required

Department Head/SM’s /FM’s

All Employees (except SMC & MD)

SMC MD

VP Asia pacific & Finance

MD
Manager/Finance Director

Overseas Travel MD

2.2.3. The person who approves on the Travel approval form and Traveling
Document Requisition form should be aware and ensure that:

2.2.3.1. The Travel approval and Traveling Document request are

wholly, exclusively and necessarily expended in the course
of business and are in compliance with the policy stipulated
herein.
2.2.3.2. The approved Travel approval form and Traveling Document
Requisition form should be submitted to the “ Amex/Travel
Coordinator” before 7 days respectively for Local and
International travel from the date of travel.

3. SPECIFIC GUIDELINES
3.1. Business Travel

3.1.1. Employee is required to attach boarding pass and used ticket jacket
(optional) for each trip to the “Expense Report” form.

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Travel Policy

3.1.2. It is the responsibility of the Employee to inform the Company of any

unutilized trips within 30 days of proposed date of travel. Any unused
airline tickets must be returned for refund. The Company reserves the
rights to withhold future reimbursement if known unused tickets are not
returned.

3.1.3. All employees shall stay at accredited hotels (List available with travel
coordinator) with the Company unless this will cause significant
business inconvenience. If a hotel other than what is recommended in
the guide is used, the business reasons for this exception shall be
documented on the “Expense Report” form. Exceptions are given to
Employees attending conferences sponsored by outside organization.

3.1.4. Hotel invoices/receipts shall be attached with the “Expense Report” form
with personal expenses properly identified and excluded for purpose of
reimbursement.

Where ever possible Employees are encouraged to spend

all business related expenses by way of credit card. This
is mandatory.

Employees must submit the credit card payment slip

along with original Bill.

3.1.5. Reasonable consumption of Mini Bar snacks and Drink is allowed.

However employees are encouraged to buy Water, Beverages or snacks
from a nearby convenience store.

3.1.6. Reasonable and necessary business related telephone expenses incurred

during business travel would be reimbursed. Employee should become
familiar with the various methods to minimize the cost of long distance
calls, especially when calling from hotel room or other locations where
significant surcharges may be levied. Employee should refrain calling
long distances from Hotel room phone.

3.1.7. When Traveling abroad employees should use calling card provided
when possible.

3.1.8. Laundry/Dry Cleaning is authorized only if the travel exceeds three (3)
consecutive working days. It is expected that an employee should be able
to pack sufficient clean clothing for a trip of 3 days or less without
incurring any incremental laundry cost that would be necessary to
reimburse. If Employee is traveling continuously over 3 days or back-to-
back travel, employee can claim laundry/dry-cleaning bills.

3.1.9. Gratuities should be minimized to the lowest possible:

• Tips for meals and others of similar nature – prevailing rates in that
country or not exceeding 15% for overseas and 10% for Domestic.

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Travel Policy

• Any exception has to be explained and is subject to approval. The

Company reserves the rights not to reimburse any exception and
decision made is final.

3.1.10. Expenses not related to the trip should be filled up on a separate

“Expense Report” form.

3.2. Personal travel

3.2.1 If the travel is primarily for business, but the time of the trip is extend
ed to include time for vacation, the transporation cost for only the business
portion of the trip is reimbursable. Living expenses covering the vacation
period are not reimbursable.

3.2.2. The Company is not responsible for employee expenses for personal travel.
Reservation and Airline ticketing for personal travel in conjunction with
business travel can be completed through Sales Admin or executive admin
or their designated agency, however all personal travel must be at the
employee’s expense and charged to the employee’s personal charge card
and not the corporate card.

3.3. Airline reservations/Travelling

3.3.1. Airline reservation shall be made through Company’s accredited Travel

Agency.

3.3.2. All ticket issuances shall be supported by an approved Travel Approval

Form (TAF).

3.3.3. Executive Secretary will handle all Airlines booking of all employees.
Where ever possible and felt appropriate Air tickets will be booked on
line/E booking using either Corporate Credit Card or Employees
personal credit card information. Employee Personal credit card
information will only be used only after seeking approval from concerned
employee.

3.3.4. All flights shall be on economy class, restricted and non-endorsable.

3.3.5. Business class travel needs approval of MD

3.3.6. If traveling by train, First class is to be used whenever possible.

3.3.7. The company provides Travel Accident Insurance Policy for employees
traveling on company business. Any additional preflight insurance shall
be purchased at employee’s expense and is not reimbursable by the
Company.

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Travel Policy

3.4. Accommodation

3.4.1. Employees are required to stay at company’s accredited hotel (List

available with Travel coordinator) with a corporate rate. List of
accredited hotels will be issued and updated from time to time by
secretary.

3.4.2. Whenever room in an accredited hotel is not available, employee may

then stay in another hotel which rate is within the company’s corporate
rate.

3.4.3. Any stay in a non-standard room, if the rate is not in accordance with the
company’s travel policy, its excess shall be born by the employee.
Exception will only be given upon reasonable justification, which is
approved in writing by employee’s immediate supervisor and
Department Head. Any savings resulted from the price difference due to
staying in a lower rate, is not claimable by employees.

3.5. Business Meal & Entertainment Expense

3.5.1. Business meal is defined as all approved meals involving J&J employees.

3.5.2. Entertainment is defined as all approved meals involving people outside

of J&J.

3.5.3. It is the responsibility of each employee to use his/her discretion in

keeping meal and other costs in line with acceptable business practice in
the location where he/she travels.

3.5.4. The Company will reimburse 100% of the necessary and reasonable
business meals incurred on behalf of the Company that are properly
substantiated.

3.5.5. Liquor bill will be reimbursed provided they are found to be reasonable
and approved by concerned Department Head. However spending on
Liquor should not be the primary purpose of spending.

3.5.6. Business meal is reimbursable when the Employee has worked in excess
of a typical working day or when accompanied by a business guest.

3.5.7. When meal expenses are incurred as a group, the most senior employee
or host is to pay and report the expenditure.

3.5.8. All business meals and entertainment expenses (A&P) shall be completed
on the appropriate section of the “Expense Report” form where the
following information is required:
a. Date and place (restaurant name)
b. Company, name and title of all people who attend
c. Nature and reason for the business discussion
d. The amount of the expenditure, supported by appropriate receipts.

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Travel Policy

3.5.9. Failure to comply with the above disclosure will render the claim as
invalid and hence, not reimbursable.

3.6. Use of Employee Personal Credit Card

3.6.1. Employees are encouraged to spend all business related expenses by

way of credit card. This is mandatory.

3.6.2. Employees must submit the credit card payment slip along with original
Bill.

3.6.3. Employees not provided with AMEX Corporate card, JMI Encourage
Employees to opt for Citibank (Visa/Master) card for paying all Business
expenses.

3.6.4. JJMI will reimburse annual credit card renewal fees for employee
opting to use Citibank credit card.

3.6.5. Late fee and interest charges imposed by the Citi Bank or any other
Banks credit card for the late payment is the responsibility of the
employees.

3.6.6. Employees not willing to avail citibank card facility will have to use their
personal credit card for paying all Business expenses. JJMI will not
reimburse Annual credit card renewal fees for NON-Citibank credit
cards.
e.

3.6.7. Failure to comply with the above disclosure will render the claim as
invalid and hence, not reimbursable.

3.7. Use of Corporate Card

3.7.1. All employees expected to travel are to enroll in AMEX Corporate Card
program. The Eligibilty is decided by MD.

3.7.2. AMEX Corporate Card is issued based on intended business use by a

qualified employee and approved by his/her supervisor.

3.7.3. Expenses of a personal nature may NOT be charged on your Corporate

AMEX Card, except in emergency situations.

3.7.4. Employee shall not use his/her Card to cover the business travel costs of
other employees or Company guests or consultants. Exceptions are
permitted when other employee card is blocked or lost or any other valid
reasons.

3.7.5. Each cardholder is personally responsible for paying IDR amount of

American Express statements upon receipt.

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Travel Policy

3.7.6. AMEX late fees are not reimbursable.

3.7.7. Responsibility for complying with these guidelines and reconciling

American Express Card statements with expense reports is a part of every
employee's job responsibility.

3.7.8. All expenses incurred in USD will be paid by JJMI directly to Amex.
Employees should make a reference of expenses paid by using Amex
card and inform Finance by highlighting the amount.

3.7.9. For resigning employee, the AMEX Corporate Card must be surrendered
to the HR Department upon submission of resignation.

3.7.10. Lost card should be immediately reported by the corporate cardholder to

the Company and to the credit card company. If employee fails to report
immediately, the charges for the lost card shall be for the employee’s
account

3.7.11. For resigning employees, the Company will automatically cancel the card
effective on the date of resignation letter receipt by the HR Director. The
card should be surrendered by the cardholder to the Company.

3.8. Other Employee Expenses

3.8.1. Local Transportation

A reasonable cost of public transportation or taxi may be claimed.

Employee shall specify on the Expense Report the place he/she boards
the taxi and his/her destination. The use of cost efficient and safe local
transportation is encouraged.

Rental car should be used only when other suitable means are not
practical or available. Where several people are traveling together,
sharing a rental car may be more cost effective than other forms of
ground transportation. For safety reasons, employees should rent at least
an intermediate size or similar class car. Upgrades may be appropriate
given the number of business passengers, however if not documented on
the expense report, upgrades are a personal, non-reimbursable expense.

The appropriate invoice from the Car Rental should be obtained. Rental
invoice or agreements should be signed with Employee Name and
ensure Johnson & Jonshon in noted in the contract. This is to extend the
insurance coverage to the employee and any business associates driving
the vehicle.

Fines and penalties imposed for the violation of traffic laws with rental
vehicles are the responsibility of the traveler and not reimbursable.

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Travel Policy

3.8.2. Telephone (when Traveling outside employee’s Base Locations)

3.8.2.1. Calls made for Business purposes will be fully reimbursed
3.8.2.2. Personal calls: Reasonable incoming or outgoing calls are
permitted as per this policy.
3.8.2.3. Such expenses should be approved by respective Department
Head

3.9. Cash Advance

Please refer to SOP for Cash Advance (Travel, Training and others) for
specific guidelines and procedures

3.10. Expense Report

The Expenses Report Form should be used for claiming all expenses.

Separate Forms should be used for Travel and A&P expenses.

The Process adopted for approval of Travel expenses as well as A&P

remains the same.

Please refer to SOP for Expenses Claims and Reimbursements (Travel and
General) for specific guidelines and procedures.

************
End of this policy

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