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DERMAGA JAYA
(SDJ)
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PROJECT QA / QC PROCEDURE

Rev. Descr. Date Drawn/Prepared Approved

PT. LIBRA DWI KARTIKA (LDK)

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TABULATION OF REVISED PAGES

PAGE Rev 0 PAGE Rev 0

1 X
2 X
3 X
4 X
5 X

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TABLE OF CONTENTS

TABLE OF CONTENTS
POLICY STATEMENT...........................................................................................................5
1 PROJECT DESCRIPTION ...........................................................................................6
1.1 DISTRIBUTION OF THIS QUALITY PLAN ...........................................................................6
1.2 MANAGEMENT AND REVISION OF THE QUALITY PLAN ......................................................6
1.3 CONTROL OF THE PLANS..............................................................................................6
1.4 NATURE AND DESCRIPTION OF THE WORK.....................................................................7
1.5 WORKING HOURS AND BREAKS.....................................................................................8
1.6 PROJECT START..........................................................................................................8
1.7 COMPOSITION PROJECT TEAM................................................................................8
1.8 CONTACT PERSONS AND ADDRESSES ...........................................................................9
1.9 OUTSOURCING (SUBCONTRACTING)............................................................................10
1 PROCESS CONTROL...................................................................................................11
1.1 COMMUNICATION ......................................................................................................11
1.1 TASKS, COMPETENCES RESPONSIBILITIES...................................................................12 2.3
2.4 WTB QUALIFICATIONS...............................................................................................13 2.5
DOCUMENTS MANAGEMENT .......................................................................................13 2.6
ENGINEERING ...........................................................................................................13 2.7
EXECUTION...............................................................................................................13 2.8
PUNCHING / TESTING / PRESSURIZATION ....................................................................13
2.9 PLANNING AND MONITORING ......................................................................................13
2.9 FINANCIAL MONITORING..........................................................................................14
2.10 PROJECT SETTLEMENT...........................................................................................14
2.11 FINAL DOCUMENTATION..........................................................................................14
1.1.1 As built documentation...................................................................................14
2 QUALITY ASSURANCE................................................................................................15
2.1 IDENTIFICATION AND TRACEABILITY.............................................................................15
2.2 VERIFICATION OF BOUGHT MATERIALS ........................................................................15
2.3 DEVIATIONS..............................................................................................................15
2.3.1 Non-destructive Examination
(NDE)..................................................................16
1.1.2 Tracers..............................................................................................................1
6
1.2 CHECKS, INSPECTIONS AND TESTS .............................................................................16

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1.2.1 Inspection- and test

reports...............................................................................16
1.2.2 Quality Inspection
plan......................................................................................16
1.3 SPECIFICATIONS AND QUALIFICATIONS WELDING ACTIVITIES.........................................17 3.6
INTERNAL AUDITS ......................................................................................................18
3.7 CUSTOMER SATISFACTION .........................................................................................18
2 LAWS AND REGULATIONS.........................................................................................19
3 DELIVERY & MAINTENANCE......................................................................................20
3.1 DELIVERY .................................................................................................................20
3.1.1 Delivery
Documentation....................................................................................20
3.2 AFTER-SALES SERVICE ..............................................................................................20

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Quality Policy Statement

The Project Quality policy of PT. Libra Dwi Kartika (LDK) is focused on ensuring that all Contractors, Sub
Contractors, Vendors, Suppliers & Service Providers for the project deliver, achieve and guarantee the desired
quality which will result in a “First In Class Industrial” in the preparation, manufacturing, installing, putting into
operation and commissioning of instrumentation installation and electrical installation..

It is the purpose of the quality policy to achieve and to maintain everything stated above in all reasonableness, in
accordance with contractual demands, all general and legal rules, as well as the applicable demands for
manufacture, as dictated by governing policies of LDK.

This policy applies to both own and hired personnel and to third parties employed by LDK.

To achieve the above, LDK adopts Quality requirements as stipulated in ISO 9001:2008 and where applicable the
Quality Management Systems of the Contractors, Sub Contractors, Vendors, and Suppliers & Service Providers.

This policy document is a collection of procedures, work instructions and forms that have a logical coherence in
order to be able to realize the policy and other objectives.

This policy and the objectives have been published and introduced at all levels within the organization. The quality
management system is continuously tested for effectiveness and suitability with respect to the intended objectives
and improved where necessary.

All the employees are instructed and coached on the basis of this company care system, so that everybody can
take his personal responsibility for the quality that is to be delivered.

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1 Project description
1.1 Distribution of this quality plan

After approval of this policy, the distribution is taken care of by LDK Project Manager. The approved version of this
plan, including revisions, is distributed in accordance with the distribution list. These persons are responsible for
the execution of this plan by the personnel that is employed under his supervision.

Changes in this quality plan are incorporated in a quality plan that is to be newly submitted, under a successive
revision number. When this is finished the plan will be distributed once again.

1.2 Management and revision of the quality plan

This quality plan has specifically been made for this project and has internally been approved by the QA/QC
Manager and the Project Manager.

Only holders of a registered copy will automatically receive supplementations and/or changes.

Textual changes in respect of a previous revision are indicated by a vertical line in the margin before the relevant
changed paragraph.

1.3 Control of the plans

In the tables below the status of the quality plan and the HSE plan and which person must undertake which action
have been made transparent.

Quality plan
Version Date of Status/description In possession of Initials author Initials QA
revision

Health, Safety & Environment Plan (HSE plan)

Version Date of Status/description In possession of Initials author Initials HSE
revision

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1.4 Nature and description of the work

The nature of work that will be covered within the scope of this policy is contract scope is monthly progress
basis engineering, procurement, construction and commissioning of a Coal Company. The complex involves
among others the conveyor, storage facilities, various utility generation units, warehousing, office facilities
and other supporting facilities. The total project will be executed from the project and site management point
of view. The project is to be considered as a ‘Green Field’ project for all intent and purposes. For what
concerns the various technologies and design for the complex, these will be executed by either Proprietary
technology suppliers and or engineering firms.

Within this facility the following shall be considered as integral parts required for the smooth and efficient
operation of the Complex;

1. The detail of scope of work, as follows :

Task Name
KICK OF MEETING
SITE SURVEY
A. DOCUMENT ENGINEERING
A.1. VENDOR DATA APPROVAL
A.1.1. Electrical
Diesel Engine Generator 350kVA (other)
Diesel Engine Generator 2000kVA (other)
LV Switchgear & LV MCC Panel
LVDP Existing Plant
ULDP Existing Plant
NGR
LV Capacitor Bank
UPS
Lighting Fixture
A.1.2. Instrument and Control
PLC System
A.2. DOCUMENT FOR CONSTRUCTION
B. PROCUREMENT MAIN MATERIAL AND DELIVERY
B.1. PURCHASE ORDER
B.1.1. INITIAL WORK
Diesel Engine Generator 350kVA
Low Voltage Distribution Panel (LVDP)
Lighting Fixture
Power & Lighting Cable
Cable Tray
Cable Gland and Accessories
Bulk Material
B.1.2. PHASE 1A
B.2.1. Electrical
Diesel Engine Generator 2000kVA (Future)
LV Switchgear & LV MCC
LV Capacitor Bank
UPS
Low Voltage Distribution Panel (LVDP)
Lighting Fixture
Power & Lighting Cable
Cable Tray
Cable Gland and Accessories

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Bulk Material
NGR
B.2.2. Instrument and Control
PLC
HMI Hardware
HMI Software
PLC Panel
Remote I/O Panel
Junction Box
Support Panel
Power And Instrument Cable
Cable Tray
Cable Gland and Accessories
Bulk Material
B.2. FAT AND INSPECTION
B.2.1. INITIAL WORK
Diesel Engine Generator 350kVA
Low Voltage Distribution Panel (LVDP)
Lighting Fixture
Power & Lighting Cable
B.2.2. PHASE 1A
B.3.2.1. Electrical
Diesel Engine Generator 2000kVA (Future)
LV Switchgear & MCC
LV Capacitor Bank
UPS
Low Voltage Distribution Panel (LVDP)
Lighting Fixture
Power & Lighting Cable
Cable Tray
NGR
C.3.2.2. Instrument and Control
PLC Panel
Remote I/O Panel
Junction Box
Power And Instrument Cable
B.3. PACKING & SHIPMENT
B.3.1. INITIAL WORK
Diesel Engine Generator 350kVA
Low Voltage Distribution Panel (LVDP)
Lighting Fixture
Power & Lighting Cable
Cable Tray
Cable Gland and Accessories
Bulk Material
B.3.2. PHASE 1A
D.2.1. Electrical
Diesel Engine Generator 2000kVA (Future Scope)
Power Transformer (Future Scope)
MV Switchgear & MCC (Future Scope)
LV Switchgear & MCC
LV Capacitor Bank
UPS 01

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Low Voltage Distribution Panel (LVDP)

Lighting Fixture
Power & Lighting Cable
Cable Tray
Cable Gland and Accessories
Bulk Material
NGR
D.2.2. Instrument and Control
PLC
HMI Hardware
HMI Software
PLC Panel
Remote I/O Panel
Junction Box
Support Panel
Power And Instrument Cable
Cable Tray
Cable Gland and Accessories
Bulk Material
C. CONSTRUCTION
C.1. INITIAL WORK
MOBILIZATION PERSONEL
Setup Mess
Setup Office Site (by RH)
Setup Warehouse & Workshop
Power House Building (existing)
Diesel Engine Generator 350kVA
LVDP Utility Installation
Cable Tray Installation
Underground Cable
Excavation Cable Trench
Sand Fill
Pulling Cable
Sand Back Fill
Red Tile Installation
Warning Tape Installation
Reinstatement
Temporary Camp
Distribution and Lighting Panel Installation
Lighting Installation
Grounding Installation
Lightning Protection Installation
C.2. PHASE 1A
C.2.1. Area 1
Pulling LV Cable (4C - 240 mm2 - N2XFGBY)
Excavation Cable Trench (800 M)
Sand Fill
Pulling Cable
Sand Back Fill
Red Tile Installation
Warning Tape Installation
Reinstatement
C.2.2. Area 2

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Power House Building (Existing)

Extended GCP Panel Installation
Cable Tray Installation
Grounding Installation
Capacitor Bank 0.4kV Installation
Power and Control Cable Installation
Lighting Installation
Termination LV Cable
MCC Existing Building
Modification MCC BLC
Modification MCC Tunnel
Lighting Installation
C.2.3. Area 3
Power House Building (New Plant)
DEG 2000kVA Installation (Other)
NGR DEG 2000kVA installation (Other)
LV Switchgear and LV MCC Installation
UPS
Battery
Capacitor Bank
Cable Tray Installation
Lighting Installation
Grounding Installation
Lightning Protection Installation
Termination LV Cable
C.2.4. Area 4
Cable Tray Installation
Lighting Installation
Grounding Installation
Lightning Protection Installation
Distribution and Lighting Panel Installation
Power and Control Cable Installation
Termination Power and Control Cable
C.2.5. Area 5
Cable Tray Installation
Lighting Installation
Grounding Installation
Lightning Protection Installation
Distribution and Lighting Panel Installation
Power and Control Cable Installation
Termination Power and Control Cable
C.2.6. Area 6
Cable Tray Installation
Lighting Installation
Grounding Installation
Lightning Protection Installation
Distribution and Lighting Panel Installation
Power and Control Cable Installation
Termination Power and Control Cable
C.2.7. Area 7
Cable Tray Installation
Lighting Installation
Grounding Installation

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Lightning Protection Installation

Distribution and Lighting Panel Installation
Power and Control Cable Installation
Termination Power and Control Cable
C.2.8. Area 8
Cable Tray Installation
Lighting Installation
Lighting Cable Installation
Termination lighting Cable
Power and Control Cable Installation
Termination Power and Control Cable
C.2.9. Area 9
Excavation Cable Trench +/- 2,5 km (using excavator)
Sand Fill
Pulling LV Cable
Splice LV Cable
Sand Back Fill
Red Tile Installation
Warning Tape Installation
Reinstatement
Distribution and Lighting Panel Installation
Termination LV Cable
Lighting Installation
Grounding Installation
Lightning Protection Installation
C.2.10. Instrument and Control
Support Installation, Angle 6 x 6
Remote I/O Panel
Panel Installation
Main PLC Panel
Remote I/O Panel
Junction Box
Cable Tray Installation
Pulling Cable
Termination
D. INDIVIDUAL TEST
D.1. Area 1
D.2. Area 2
Power House Building (existing)
Extended GCP Panel Test
Grounding Test
Capacitor Bank 0.4kV Test
Power and Control Cable Test
MCC Existing Building
Modification MCC BLC
Modification MCC Tunel
Lighting Installation
D.3. Area 3
Power House Building (New Plant)
UPS And Battery Test
Capacitor Bank Test
Lighting Test
Grounding Test

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Lightning Protection Test

D.4. Area 4
Lighting Test
Grounding Test
Lightning Protection Test
Distribution and Lighting Panel Test
Power and Control Cable Test
D.5. Area 5
Lighting Test
Grounding Test
Lightning Protection Test
Distribution and Lighting Panel Test
Power and Control Cable Test
D.6. Area 6
Lighting Test
Grounding Test
Lightning Protection Test
Distribution and Lighting Panel Test
Power and Control Cable Test
D.7. Area 7
Lighting Test
Grounding Test
Lightning Protection Test
Distribution and Lighting Panel Test
Power and Control Cable Test
C.8. Area 8
Lighting Test
C.9. Area 9
Lighting Test
Grounding Test
Lightning Protection Test
Distribution and Lighting Panel Test
Power and Control Cable Test
D.10. Instruments and Control
Loop Test
Feeder Breaker FB1.1
Conveyor C1.1
Conveyor C1.2
Conveyor C1.3
Reclaim Feeder (RF) 1.1
Reclaim Feeder (RF) 2.1
New BLC Conveyor C-01
Modbus Generator
Modbus Stacker
Individual Test
Feeder Breaker FB1.1
Conveyor C1.1
Conveyor C1.2
Conveyor C1.3
Reclaim Feeder (RF) 1.1
Reclaim Feeder (RF) 2.1
New BLC Conveyor C-01
Modbus Generator -01

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Modbus Generator -02

Modbus Generator -350kV
Modbus Stacker -01
Modbus Stacker -02
E. COMMISSIONING & START UP
F. PERFORMANCE TEST
G. AS BUILD DOCUMENT

In addition to the above, the following activities that will be executed within this project shall also fall under
the purview of this policy manual;

a.) Receipt, handling and installation of all equipment related to the site
b.) Procurement, supply, handling, pre-fabrication, testing and installation at site of all electrical,
instrumentation and control system cabling, cable trays and conduits including but not Iimited to
lighting related to the complex.
c.) Preparation, control and submission of all regulatory documentation related to Contractor,
Subcontractor, Vendor, Supplier & Service Provider scope of supply.
d.) Preparation, control and submission of all 'As Built' documentation for the complex both pre and post
commissioning in hard copy and AutoCad digital drawings version.
e.) Planning, control and execution of the project as per requirements of LDK,
f.) The complete management of the project and the construction of the complex including but not
limited to the management and coordination of all sub-contractors and liaison with LDK personnel at
the site.
g.) Site mobilization, site erection equipment and temporary facilities such as workshops
(communication systems etc.);
h.) Inventory and visual quality inspections of the materials delivered to site, prompt reporting to LDK of
any missing or damaged material;
i.) Supply and installation of the iIIumination, grounding and lightning systems, including material;
j.) Electrical erection materials supply, also including cables and cable trays, electrical and instrument
installation;
k.) Supply of calibrating and measuring devices for testing during pre-commissioning;
l.) Testing;
m.) Support during pre-commissioning and commissioning equivalent;
n.) Site cleaning, waste disposal to the Battery Limit of construction to dedicated disposal containers
provided by LDK
o.) Labor insurance and safety equipment for safety personnel working at site;
p.) Submission of the Safety Plan to be approved by LDK.

1.5 Working hours and breaks

Start : 07.00hrs
Coffee break : 09.30 - 09.45hrs
Lunch break : 12.00 - 13.00hrs
End working day : 18.00hrs
Working days : Monday - Sunday

Smoking is only allowed in breaks and before and after working hours.

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1.6 Project/Construction Start

As soon as each project and or tender has been awarded, the project teams from both the Contractor,
Subcontractor, Vendor, Supplier & Service Provider side and LDK side shall plan and organize a "kick-off meeting"
in which all the members of the project team must attend. Going by a list of action points, all relevant matters that
are essential for a proper and timely execution of the project shall be discussed.

Prior to this “kick-off meeting”, said Contractor, Subcontractor, Vendor, Supplier or Service Provider shall submit to
the attention of the appropriate person in charge at LDK an editable electronic format copy and hard copy of the
“Project Quality Plan” and the “Project Health, Safety & Environment Plan” for discussion, review and approval by
LDK. Such plans shall be complimentary and improvement of LDK’s in house document and under no
circumstances shall have requirements inferior to that specified in the base plans of LDK.

If, for certain actions, Contractor, Subcontractor, Vendor, Supplier & Service Provider are required to deviate from
either the Client’s or its own standards, procedures and work instructions and to act according to the procedures
that are standard with the customer or otherwise, the said procedure shall only be followed primarily after
agreement between both parties.

All points discussed in the "kick-off meeting" are recorded in a report that shall distributed to the attendees of the
meeting and any other person of interest as stipulated within the Distribution List.

1.7 Project/Construction Team Composition and Qualification

The project organization and team composition are evaluated and recorded per project and depend on the nature,
the scope, the interest and the complexity of the received order to a great extent. The board and operational
managers determine the project team compositions at all times.

LDK’s Project Team is composed in general of 4 critical operative units. These are namely;
1. Project & Engineering Unit;
2. Procurement & Logistics Unit;
3. Construction Unit.

These teams have been equipped with personnel who have knowledge and experience with projects of similar
nature. The composition of the LDK Project Team is shown in the organization chart below.

The Contractor, Subcontractor, Vendor, Supplier or Service Provider who is involved in the Project shall ensure
that a team of similar capacity and formation is setup and equipped by its organization to liase with, interact, plan
and execute the project with LDK team. The formation and composition of the team coupled with CVs of as a
minimum the heads of each discipline and one level below them shall be submitted to LDK prior to the “kick-off
meeting” for review and approval by LDK.

Where necessary or desired, this project team, which shall be assigned to the project on a fulltime basis, shall be
supplemented with additional technical specialists such as various engineering discipline specialists, quality
control, HSE, commissioning, buying and warehouse management.

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1.8Outsourcing (subcontracting)

At the onset or during the project it may be decided to contract out part of the activities by the Contractor,
Subcontractor, Vendor, Supplier or Service Provider. The decision as to which parts and to whom, is taken by the
the Project Manager of the Contractor, Subcontractor, Vendor, Supplier or Service Provider in consultation with
their Sourcing department. Such as of outsourcing (subcontracting) however shall be prior notified to LDK at least
21 days before such an act is to take place for review and approval. No outsourcing (subcontracting) shall be
carried out without prior review and approval by LDK. In advising the Project Manager, the Sourcing will brief the
PM in this respect on the basis of existing contractors and experiences and in cooperation with the PM or on
behalf of him he will negotiate with the contractors and formulate the contract. The manner in which the parts will
be contracted out depends on a number of criteria. These include;

- Primarily the chosen subcontractor by Contractor, Subcontractor, Vendor, Supplier or Service Provider
shall have the approval of the contractor and LDK.
- Formulation and scope of subcontracting materials, services and/or a combination of both.
- Risks for LDK with respect to the liability.
- Financial scope of the subcontracting.
- Clear separation of the responsibilities for the tender-specifications.
- Full shifting of responsibility for tender-specifications for the part that is to be contracted out.

Depending on criteria referred to above, the manner of contracting will be effected on the basis of subcontracting
or on the basis of Back to Back principle. Depending on the scope and nature of the activities which are
contracted out, the PM of the Contractor, Subcontractor, Vendor, Supplier or Service Provider shall in consult with
LDK PM determine whether the contractor needs to supply a quality plan for his part of the activities, or that he is
to follow the quality plan of LDK. The testing of the activities of the contractor is effected by the QC employee of

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the project according to the standards and/or enclosed testing and inspection plan set in the subcontractor's
agreement.

If there is situation whereby a quality plan is to be delivered by the subcontractor, then this must be available and
approved by the respective Contracting Party and LDK before commencement of the activities. The content of this
plan will be tested by the Contracting Party and witnessed by LDK as to correctness and completeness, where
the quality plan of the subcontractor serves as a reference. Attention is also paid to processed measures with
respect to the safety demands applicable at the project.

Before commencement of the activities subcontractors will comply with the company care system of Contractor,
Subcontractor, Vendor, Supplier or Service Provider and LDK insofar as this has not been included in the
agreements.

For this project the following contractors are known to us:

Company name Activities Relation to LDK

tba Electrical Cabling and Panels Installation Contractor
tba Instrumentation Cabling and Panels Installation Contractor

2 Process control
LDK has laid down the structured approach of process control in the quality assurance system. The major steps
pertaining to execution are shown below.

2.1 Communication

For the benefit of a structured consultation the project teams will meet at regular intervals. The Project Managers
shall determine in consult the frequency of these meetings depending on the need and progress of the work in
progress and records this frequency.

All internal and external project team meetings, discussions and agreements shall be recorded in a summary
report in the form of Minute of Meetings as specified in the meeting schedule.

In this chapter it is recorded how the communication between LDK and the Project Manager of Contractor,
Subcontractor, Vendor, Supplier or Service Provider will be effected with respect to the following subjects:

Communication between Project Manager and LDK

- Personal relations play an important part
- Survey of making the contacts

Communication to third parties

- Good agreements about the duration of the deployment
- Agreements about the number of working days or hours.
- Agreements about the price/quality
- Agreements about non-fulfilment of the agreements
- Contacts with third parties and by whom.

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Means of communication
- Ascertaining which means will be used
- Personal media (interviews)
- Audio media (telephone)
- Visual media (photographs)
- Written media (e-mail)
- Audiovisual media (presentations)

2.2 Tasks, competences responsibilities

During the execution of the work the care for the proper quality, the good working conditions and safety of the
employees as well as care for the protection of the environment are a line responsibility. This means that every
employee, charged with the supervision, or the management of work that is to be carried out by others, will
dedicate his best efforts to the areas referred to.

In addition, everybody has to give a full account concerning equipment, material, customer or company properties
that are his responsibility.

Formally, the responsibilities and competences of the various functions are laid down in the job descriptions,
which (complete with function demands) have been prepared and are kept by the personnel department.

In Attachment 4 the major tasks, responsibilities and competences of the officers involved in the project as shown
in the organization chart have been laid down.

These job descriptions must be considered as an addition to, or further specification of the general job
descriptions of LDK.

Tasks can be delegated. The officer who delegates the tasks, however, remains responsible for the delegated
tasks.

Every employee is to adhere to the quality system as laid down in this quality plan.

2.3 Documents managementt

LDK, Contractor, Subcontractor, Vendor, Supplier or Service Provider’s shall each register all incoming and
outgoing documents and correspondence and complete with a with a document number.

2.4 Engineering

Where engineering is required, Contractor, Subcontractor, Vendor, Supplier or Service Provider’s shall execute
such engineering works to the level of detail as required by the Contract and Good Engineering Practice and in
accordance to International Engineering Standards as it applies.

2.5 Execution

During the execution of the activities the procedures and work instructions of LDK, Contractor, Subcontractor,
Vendor, Supplier or Service Provider’s are to be strictly followed, as well as the mounting instructions of the
equipment and materials involved of the suppliers.

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If Contractor, Subcontractor, Vendor, Supplier or Service Provider’s is requested for certain actions to deviate from
this and to act in accordance with the procedures desired by LDK, these will be carried out where possible and
previously agreed.

Additional work instructions and/or procedures if so required shall at all times be laid down in writing, where their
absence might influence the quality of the work disadvantageously.

Prior to starting with the execution, the supervisor explains the nature of the order and discusses all the required
instructions with the employees falling under his responsibility. He sees to it that these instructions and the
accompanying management measures are understood and carried out by everybody.

2.6 Punching / Testing / Pressurization

The installation of new pipelines and pressure testing will be executed as described in the “Quality Inspection
Plans” and the “Test and Inspection Plans”.

2.7 Planning and monitoring

The overall planning supplied by LDK shall serves as a basis for the detail plans design and execution set up by
Contractor, Subcontractor, Vendor, Supplier or Service Provider’s. In these plans the activities of third parties are
also incorporated. By means of a progress control system the current state of affairs of the project is monitored
and registered every week.
LDK shall at all times and as minimum periodically be kept abreast on the progress of the work with the fullest
transparency and without fail by Contractor, Subcontractor, Vendor, Supplier or Service Provider.

2.8 Financial monitoring

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Regular more- and less work, additional assignments and/or applications that fall within the stipulations of the
current project will, if applicable, be registered and monitored per case Variation Orders and Variation Order
Registers.

2.9 Project settlement

As soon as all the activities are finished and the required checks and tests have been carried out according to the
agreed protocols, all completed works shall be handed over by Contractor, Subcontractor, Vendor, Supplier or
Service Provider for inspection, by which it can be demonstrated that the offered materials meet the set demands
and accepted.

At this offering for acceptance only those documents of the inspections and/or tests are presented, as mentioned
in the tender-specifications. Other inspections and/or tests are available for perusal at all times.

When the activities have been accepted by LDK or his authorized representative, the Project Manager of the
project will officially be transferred. After this the project has commercially, financially and administratively been
completed.

2.10 Final Documentation & As built Documentation

All Contractor, Subcontractor, Vendor, Supplier or Service Provider shall have the responsibility to prepare ‘as
built’ documentation based on final supply conditions and relevant drawings. These updated drawings are
stamped ‘as built’ and included in the set of drawings submitted to LDK.

Pre-fabrication:
All changes during pre-fabrication shall be marked up on the drawings in red. One copy shall be handed over to
QC. One copy to Project - Work Preparation.

Project - Work Preparation shall ensure the marked up copy is entered into the Site work map and marked up on
the master copy.

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3 Quality assurance
3.1 Identification and traceability

Equipment and materials designated for the project shall be immediately delivered to the project site by the
Contractor, Subcontractor, Vendor, Supplier or Service Provider following close coordination with the LDK Project
Team and its Site Team. Materials that are received are marked and stored accordingly. Traceability of materials
is procedurally recorded in the work instruction.

Calibrated equipment and instruments are marked by means of labels or stickers with inscriptions and are
released for installation as required. Goods with deviations or damages, which are not suitable or provisionally not
suitable for assembly as a consequence, are marked by labels or stickers and are stored separately from the
other good and an Overage/Shortage/Damaged report is generated.

Registration and traceability on the piping shall be made by maintaining a “Line Inspection Summary List”. In this
list, next to the data of the materials, certificates and welding seams, also the results of carried out tests are
registered.

3.2 Verification of bought materials

Where applicable and useful a verification of bought materials is carried out with suppliers (such as e.g. reduction
tests in distributors, power stations in panels/cabinets, etc.). If agreed, or according to contract, LDK shall be
invited to attend and carry out a verification of these materials at the Contractor, Subcontractor, Vendor, Supplier
or Service Provider facility.

3.3 Deviations

During the project deviations may be occur:

A deviation in respect of the tender-specifications

A deviation in respect of the tender-specifications is recorded in a query form by the project management of LDK
and independently by the Contractor, Subcontractor, Vendor, Supplier or Service Provider. This will then be
submitted to LDK which will then determine whether the deviation is reasonable and undertake further action to
approve or reject.

A deviation of materials in respect of the order specification

A MRR (Material Receiving Report) will be made, or when there is a deviation an NCR form will be made. Then
the goods are provided with a red label "HOLD" and stored clearly separated from the other goods.

The project-responsible person is responsible for the settlement of the deviation. Important deviations (deviations
that have consequences for the planning, deliverability, quality and finances) and the proposed solution shall
presented to LDK for approval by the project-responsible person. Corrective measures which must be taken after
found deviations, will only be carried out after written acceptance or rejection of such deviations.

When the deviation is corrected, the HOLD-label can be removed by a person who is authorized to do so
(indicated on the HOLD-label).

3.4 Non-destructive Examinations (NDE)

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Non-destructive inspection in the prefab shop (if applicable) shall be executed by an appointed 3rd Party
inspection agency. Such inspections shall be coordinated by Contractor, Subcontractor, Vendor, Supplier or
Service Provider and notified to LDK. Interpretation of the films and other tests are executed by both appointed
3rd Party and competent and certified employees of LDK & Contractor, Subcontractor, Vendor, Supplier or Service
Provider. Reports and films are filed away by Contractor, Subcontractor, Vendor, Supplier or Service Provider.
Inspection and tests will be carried out in accordance with the ASME B31.3 and or ASME B31.12 where
applicable.

3.5 Checks, inspections and tests

To ascertain and make demonstrable that during the execution of a project the set (quality) demands and
standards are achieved, Contractor, Subcontractor, Vendor, Supplier or Service Provider uses in the quality
system:

- Inspection and test reports (as attached)

- Construction monitoring systems

3.6 Inspection & Test Reports

The inspections and tests selected for this project by LDK are reflected in the inspection plan.

3.7 Quality Inspection Plan

The “Quality Inspection plan” reflects all the inspections and tests (both the regular ones and those included in the
specifications) that shall be utilized to achieve acceptance and transfer of every described installation. The
Contractor, Subcontractor, Vendor, Supplier or Service Provider shall at all times endeavour to provide LDK with
points of attendance and/or hold points.

The description of the various columns in the “Inspection plan” is:

Description activity
Description of the testing or inspection involved.

Responsible person
Officer who is responsible for the execution of the activity.

Control procedure
The procedure that describes what must be carried out to execute the activity, or has some interfaces concerning
this activity. This may be an LDK, Contractor, Subcontractor, Vendor, Supplier or Service Provider procedure
according to the company care system or a thematic procedure.

Instructions and/or criteria

Instructions and/or criteria that are important to achieve a good outcome, in accordance with the set demands.
Instructions are for instance: thematic (work) instructions, user instructions

Evidence or registration - Contractor, Subcontractor, Vendor, Supplier or Service Provider

The document in which the results have been recorded. This may be both Inspection and test reports, a report of
Contractor, Subcontractor, Vendor, Supplier or Service Provider or a document of third parties.

Evidence or registration - Tender-specifications/contract

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The article involved from the tender-specifications or contract to which the activity relates.

Point for verification

To guarantee that during manufacturing and testing of the components all required procedures and quality
specifications have been complied in specific against LDK quality requirements inspection plans are formulated,
which reflect the inspections and tests in the various stages that are of vital interest for the completeness of the
project.

Points for inspection are defined as follows:

- Hold
A specifically identified activity in manufacture/ installation and test to which an inspection must
be carried out. With the following activity no commencement is made until this point has been
reported and approved.

- Witness
A specifically identified activity in manufacture/ installation and test to which an inspection must
be carried out. The following activity is not started up without permission.

- Review
Activity is audited afterwards. (reports, film, radiography)

- Monitor
Inspections of activities involved are carried out randomly.

Remarks
Here still some relevant data may be added with respect to the activity

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3.8 Internal Audits

To keep informed of the activities in the field of quality, working conditions and environment, and for the
assessment of the effectiveness of the quality system, these shall be periodically verified as to observation by
employees of LDK, Contractor, Subcontractor, Vendor, Supplier or Service Providers.

3.9 Customer Satisfaction

It shall be of the highest importance to Contractor, Subcontractor, Vendor, Supplier or Service Providers how LDK
thinks about it, or about the services it supplies. At the end of the project LDK shall conduct a quality survey of the
supplied services and or material.

With this information LDK shall analyze and determine points for improvement internally and archive its
experiences with each Contractor, Subcontractor, Vendor, Supplier or Service Providers for future reference and
use within the Sinarmas Group.

4 Laws and regulations

General
For this project all the design criteria are so that International Design and Fabrication standards such as ASME IX,
ASME B31.3, ASME B31.12, ASME VIII, ATEX, IEC, IEEE and SNI are applicable.

Manufacturer
Contractor, Subcontractor, Vendor, Supplier or Service Providers shall act as supplier

Manufacture
Manufacture shall be carried out in accordance with the quality system as represented in this Quality Manual. The
checks that are carried out during the manufacture are detailed in the Test and Inspection plan

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5 Delivery & Maintenance

5.1 Delivery
Here is a list and/or a survey of the documents that are to be delivered (the list is not comprehensive):

- E&I reports.
- Transmittals.
- Mechanical completion reports.
- As-built drawings.
- Inspection reports:

Meeting schedule
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Consultation/ Consultation with Consultation with Consultation with Consultation with

Discussion LDK project team execution subcontractors
Chairman LDK Project Project manager Project manager, Project manager, construction
Directors construction manager manager or supervisor
or supervisor
Participants LDK and project Project manager, Project manager, Project manager, construction
manager and/or construction manager, construction manager and/or supervisor and
construction engineering & work manager, supervisor subcontractors
manager preparatory, work and/or subcontractors
planner and/or
supervisor, quality
controller.
Schedule Communications Communications Items with respect to Rounded off actions, points of
previous report, previous report, points execution. action, quality, HSE.
points of action, of action, planning,
quality, HSE, additional/less work,
planning, progress design,
additional/less quality,
work, any other HSE, any other
business business
Minimal On a weekly basis on a weekly basis according to your according to your needs, at least
frequency (contractually) needs 1 time *
Report yes yes No yes
Distribution Participants Participants, LDK Participants
Mgmt, quality
department, HSE
department,

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Tasks, competences & responsibilities

LDK Management
No specific job description.

Project manager
For place in the organization see the organization chart in the attachment. It is the purpose of the function to
manage the project environment of one or several complex projects so that projects are realized effectively within
the agreed quality demands, budgets and time planning.
The project manager is responsible for the total operational management of a project or several multidisciplinary
projects. He also formulates an annual plan for his organization.
He also has to see to an optimal staffing of a project. This in the field of number, level and professionalism.
He motivates, stimulates, coaches and, if necessary, corrects the employees.
The project manager is responsible for the realization of projects. He integrates several disciplines and manages
several project teams.
Furthermore the project manager formulates project plans, manages the planning and checks the progress of
projects, so that the formulated objectives are reached in time and within the budget.
The project manager is able to identify risks continuously and he thinks up solutions to prevent or control risks. He
is also responsible for contracting, organization and communication within the project. In cooperation with the
contract manager he is responsible for contract form and claims registration. In the field of finances/administration
the project manager is responsible for correct financial management, monitoring of costs, monitoring of hours and
submitting of more- and less work. He is able to signal deviations in time and takes measures to make
adjustments, so that claims situations are prevented. The project manager maintains contacts with the clients on
board and management levels about the progress of the project. He is able to keep up the position of LDK,
Contractor, Subcontractor, Vendor, Supplier or Service Providers under pressure. Besides, the project manager
advises the own management from specific expertise, whether asked or uninvited. He keeps his knowledge about
developments involved in the specialist field up to standard for the own function and in order to be able to support
and inform others.

Construction or Installation Supervisor

For place in the organization see the organization chart in the attachment. Hierarchically speaking, a construction
manager works under the supervision of an operational manager and is functionally placed under a project
manager/project leader. It is the purpose of the function to organize and supervise the daily execution of various
types of projects, in such a way that the project is realized in accordance with tender specifications, planning and
work budget.
The construction manager is responsible for the planning, steering and co-ordination of the daily activities with
regard to the execution of the current project in accordance with work instructions, in such a way that the delivery
can be effected in time, in accordance with tender-specifications, quality- and HSE-demands and within the work
budget.
The construction manager must see that an optimal and motivated staff is working on the current project, both
as to quantity and quality. He will see to this by instructing, checking, motivating and coaching the employees
actively.
In the field of management and cost control the construction manager is responsible for a proper recording,
communication and administration of changes and as-built data. Furthermore he must daily keep track of the
project expenses by recording the data during the execution of the project and he must check the invoices and
agreed instalments for the benefit of the progress- and cost control.

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In cooperation with the project manager/project leader he must see that the project planning with regard to the
organization, work methods, plans, deployment of people/means are such that a safe, effective and efficient
project execution is guaranteed as much as possible.

Supervisor
For place in the organization see the organization chart in the attachment. A supervisor works under the
supervision of a project manager, project leader or a construction manager. It is the purpose of his function to see
that the activities with respect to execution are realized in accordance with tender-specifications, planning and
work budget.
In the field of staffing the supervisor must see that the activities are executed as effectively and efficiently as
possible and he is expected to coach his employees.
Execution-technically speaking, the supervisor manages and sees that the daily construction activities are carried
out in accordance with work instructions, in such a way that the delivery can be effected in time, in accordance
with working drawings, specifications, wishes of the customer, quality- and HSE-demands and within the work
budget.
The supervisor is responsible for controlling the project expenses. He will do this by keeping track of data every
day, and recording these during the execution of the project and by checking invoices and agreed instalments for
the benefit of the progress- and cost control.
During the planning of the project the supervisor will make a contribution to the organization, work methods,
plans, deployment of people/means, quality and HSE, in such a way that a safe and efficient project execution is
guaranteed as much as possible.
Another important point of the supervisor is the preservation of a tidy working environment with minimal
disturbance of the production process, with due observance of the safety regulations.
The supervisor is responsible for the drawing package with respect to noticing changes according to asbuilt.

Work planner
For place in the organization see the organization chart in the attachment. Hierarchically speaking, a work planner
works under the supervision of a department manager and is, especially on location, functionally placed under a
project manager/project leader. It is the purpose of the function to see to an optimal technical/organizational
planning or guidance of several projects, so that quality and costs are guaranteed.
A work planner is expected, if necessary, to be able to manage junior work planners.
A work planner may, independently or in a team, draw up plans and diagrams with respect to personnel,
materials, equipment and subcontractors to realize an optimal progress of the project.
In cooperation with the project leader and supervisor the work planner formulates a plan of approach, composes
project- and assembly folders and inventories the project risks. He is also responsible for supplying work- and
detail drawings.
The work planner is also responsible for making financial surveys, he updates changes in the more- and less work
and makes project evaluations. He is also occupied in keeping up with developments within the domain and he
prepares documentation.
The work planner also maintains the contacts with clients, suppliers and subcontractors in the field of orders,
materials, delivery times, prices and innovative developments.

Engineering & Work preparator

For the place in the organization see the organization chart in the attachment. Hierarchically the Engineer & work
preparator works under the supervision of the project manager. On site the engineer & work preparator works in
close contact with the construction manager. The tasks are coordination for preparation of shop and erection
works. Preparation of sub-contractor scope. Coordination of prefabrication and erection activities. He is also
responsible for the implementation of applicable work instructions and specifications. Report achieved erection
progress steps. Following up changes in engineering and field construction activities. Coordination and follow up
queries.

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Project support
No specific job description.
The duty of the project support officer is to retain the experience from the early phase of the project.

QC-employee
For place in the organization see the organization chart in the attachment. The QC-employee functionally works
under the supervision of a department manager and can operationally work under the supervision of the project
manager. It is the purpose of the function to guarantee the quality of existing or new E-, W-, and/or control
installations with the accompanying legal stipulations.
The QC-employee works on the execution of functional, quantitative and qualitative calculations, checks and/or
tests and inspections of the relevant E-, W-, or control installations and –systems in accordance with periodical
(inspection) plans going by for example installation diagrams, drawings, (international) directives and quality
standards.
Furthermore, the QC-employee sets up a complete test registration, he collects deviation reports and inspection
registrations and he manages above-mentioned documents.
Furthermore, he supports mechanics in the field of (internationally) applicable quality standards. The QC-
employee formulates competences for the execution of inspection activities to new or existing installations or tools
and records these in writing.

Document controller
The document controller registers, distributes and manages all incoming and outgoing project documents, all
incoming and outgoing mail, all incoming and outgoing e-mails and all the documents, forms, minutes of
meetings, etc. made in the project, etc.

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Inspection plan E&I

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DERMAGA JAYA
(SDJ)
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Rev. date by Appr. Project no:XXXXX QC plan no: XXXXXXX rev.00 page no : 1/1
Plan for:. XXXXXXXXXXXXXXXx
Inspection: Inspection Client Approval Contractor: Approval LDK:
A= R = Review documents Name: LDK Date: Date:
Contracto H = Hold Adress : XXXXX Name: Name:
rB= W = Witness Part: Steel Structure Sign: Sign:
Fabricator
C = LDK
C =
Step Description Document Control-document Inspection Remarks
A B C D E

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DERMAGA JAYA
(SDJ)
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DERMAGA JAYA
(SDJ)
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Work Instructions

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Work Instruction : Input Check & Material Identification

Purpose:
It is the purpose of this instruction to see that incoming inspections and identifying of materials designated for
processing in technical installations is carried out univocally.

Scope:
This work instruction is applicable to all material for the GCR project.

Definition and abbreviation

OS&D Report Overage, Shortage, Damage Report: report for stating deviations between order and delivery in Overage,
Shortage and Damage.

Approach:

1. Incoming inspection
Going by the packing list(s) and the goods receipt or the buying form, materials are checked for:
• number
• type of material
• dimensions
• damages
• if applicable: batch number See 5, defects.

2. Registration of incoming materials

In the registration Contractor, Subcontractor, Vendor, Supplier or Service Providers shall distinguish between
materials supplied by it and those supplied by LDK (whether or not via third party):
• Materials supplied by Contractor, Subcontractor, Vendor, Supplier or Service Providers:
After incoming inspection materials are entered into inventory system.
When ordering with certificates, a “Material Receipt Report” is printed out from the inventory or written after
every delivery and, together with accompanying packing list, supplied material certificates and possibly OS&D
Report sent to QC.
• Materials supplied by LDK:
If the materials supplied by the LDK are delivered with certificates, the data of the received material are stated
on an MRR and on the accompanying packing list after inspection or delivery. The data of the received
material are also stated on the certificates of the supplied material and, if drawn up, on the OS&D Report. All
documents are sent to QC

3. Checking and approving of registered materials

QC department collects the material certificates that belong to the registered materials, provides them with a unique
consecutive number, approves of the delivery and puts the certificate data in a summary list. For approving
deliveries, the Delivery certificate must be completed and signed, if this has been laid down in the purchase order or
contract.

4. Identifying incoming materials

Wherever the project specifications require this and/or the project quality plan provides for this, the received
components (except material for supporting) are provided with a unique identification number. The identification
consists of a combination of a letter (is issued by QC and is unique for the project) and a successive number
starting at 001.

At the incoming inspection materials are given an identification with a felt-tip in such a way that it is well legible.
• Duplex and Rust-resistant material is marked with a Rose Edding marker;

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• Other material is marked with a Whitemarker.

Identification of the various components is done as follows:

• fittings, flanges, etc. of equal size, of the same type of material and of the same batch are given one
identification number;
• for pipe material the same applies as for fittings and flanges;
• shut-off valves, pumps, etc. are identified with the unique chosen letter, adding the letter V and a
successive number that starts at 001

Defects of deliveries and damages can be stated on an OS&D Report.

5. Material with Defect

If you find material with a defect, please act as follows:
• Prevent the material from being installed, as long as it is (still) unclear whether further processing may lead to
(some) disruption of the process.
• Provide the material with a rejection label.
• Put the material with defect apart from the other materials in (a section of) the rack that is specially
appropriated to that aim. This rack must also be marked by a red label or sticker.
• Send the packer's number, provided with the description of the defect (stamp) to the person who ordered or
bought the item.
• The person who ordered or bought the item must complain, so that the proper materials or goods will finally be
obtained.
• The person who ordered or bought the item sees that invoicing is not effected yet.

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Sheet : 1 of 1

STATEMENT OF DELIVERY
Purchase order
Projectnumber
Agreement nr
Description of delivery

STATEMENT OF DELIVERY, APPROVAL AND ACCEPTANCE OF (A PART OF) THE WORKS AS SATED IN ABOVE
MENTIONED PURCHASE ORDER AND/OR AGREEMENT

Percentage approved and delivered %

Remarks

Accepted by LDK Accepted

Company
Name Name
Date Date
Signature Signature

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MATERIAL RECEIPT REPORT (MRR)

MRR Nr. Job nr. Supplier

Receiving date DO nr. Reference
Number Description Dim. Type Press Material Number Number Heat number Cert. Code Identification
type ordered received Nr.

Received by
Date
Signature

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Work instruction: HANDLING AND STORAGE OF PRODUCTS

Purpose:
The purpose of this work instruction is to see that products, pending processing and/or shipping, are handled and stored
in a uniform way.

Scope:
The work instruction pertains to received goods that are processed in the final product and must temporarily be stored,
and to prefabricated parts that are stored pending transport.

Approach:
After incoming inspection products are stored in the spaces intended for that purpose and are provided with an ID-
number. During storage the quality of the products must be maintained, for example by capping off and preserving.

Components of rustproof steel and carbon steel must not come in immediate contact with each other and must remain
separated from the ground.

Released parts must be stored in such a manner that:

• it is clearly recognizable for which project the prefab is intended;
• the prefab remains undamaged and clean by providing the parts with caps, wooden slices or another effective
means of protection.

Rejected materials / parts must be identified and, pending further processing, stored in a place designated to this aim.

This rule applies to every form of storage: the storage must not cause any risk to people and environment.

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