Translated from Indonesian to English - www.onlinedoctranslator.

com

INTRODUCTION

In order to bring Industrial Relations into the life of the Company and Workers as well as work

conditions as stated in the Employment Regulations, this COMPANY REGULATION has been

made.

COMPANY REGULATIONS (PP) are written provisions that regulate the work conditions and

regulations of the Company and regulate the rights and obligations of each party between the

Company and Workers, in order to encourage work activities so that it will increase production

and work productivity based on :

1. 1945 Constitution.

2. Republic of Indonesia Employment Law No.13 of 2003

3. Regulation of the Minister of Manpower of the Republic of Indonesia No. 28 of 2014

concerning Procedures for Making and Ratifying Company Regulations and Making and

Registration of Collective Work Agreements.

4. Legislation in the field of employment.

With the existence of Company Regulations, this is intended to implement Industrial Relations in

order to create harmonious, safe, peaceful, dynamic working relationships, calm at work,

improving employee welfare, business continuity, certainty of the rights and obligations of each

party and a sense of mutual trust.

Everything contained in these Company Regulations is subject to the applicable laws, regulations

and policies of the Government of the Republic of Indonesia.

1
Both parties, both the Company and the Employees, are responsible for fulfilling the obligations

contained in these Company Regulations or regulations related to their implementation or

application.

The purpose of this Company Regulation is to:

1. Improving harmonious relations between Workers and Companies, based on Industrial

Relations.

2. Increase worker productivity so that it will increase company income and worker welfare.

3. Clarify the rights and obligations of the Company and Workers.

4. Eliminate all forms of discrimination, differences in ethnicity, religion, race, between

groups in making decisions, other than based on skills or expertise, job duties or

obligations, position or field of work.

PIG

2
 GENERAL

article 1

General requirements

1. As a Company which in its daily activities has and requires workers, the Company is

fully aware of the importance of fostering Employment Relations between Employers

and all Workers, as referred to in:

a. Republic of Indonesia Law Concerning Employment No.13 of 2003.

b. Republic of Indonesia Law Concerning Job Creation No.11 of 2020.

c. Republic of Indonesia Government Regulation Concerning Specific Time Work

Agreements, Outsourcing, Working Time and Rest Time, and Termination of

Employment Relations No.35 of 2021.

d. Republic of Indonesia Minister of Manpower Regulation No. 28 of 2014 concerning

Procedures for Making and Ratifying Company Regulations as well as making and

registering Collective Work Agreements.

e. Republic of Indonesia Legislation in the field of employment.

2. With the legal basis in question, the creation of Company Regulations containing work

requirements, rules and so on is to:

a. Fostering harmonious work and employment relations based on Industrial Relations.

b. Creating protection, tranquility, business calm and work calm.

c. Achieving increased production and work productivity as well as improving worker

welfare.

d. Explain the rights and obligations of each party, namely between the Company and

Workers.

3
 e. Creating and simultaneously developing a harmonious working atmosphere and

working relationships between superiors and subordinates.

f. Outlines work conditions for workers in achieving joint results. In this way, a good

understanding will be created and employee work motivation will be maintained to

support all company programs and targets which include improving employee welfare

and skills.

3. Work requirements, regulations, work procedures and other provisions that regulate

reciprocal rights and obligations between the company and workers, must be known and

understood as best as possible by both parties and then apply to all employees of PT

Alphatech Dredging Indonesia and are part of which is inseparable from these

COMPANY REGULATIONS.

4. Special work requirements related to professions that cannot be generally regulated in

these Company Regulations will be regulated in the work agreement between the

Company and the employee concerned.

5. Other matters that have not been regulated in these Company Regulations or for one

reason or another need to be amended, these matters will be regulated in separate

regulations and will not conflict with applicable laws and regulations.

Section 2

Scope of Regulations

4
1. This Company Regulation contains regulations, provisions and procedures regarding

work relationships and requirements that apply to all Workers and the Company in

carrying out its activities.

2. Matters that are technical in nature and require further elaboration will be regulated in the

provisions of the Directors' Decree, Standard Operating Procedures (SOP), General

Company Policies (KUP) and Inter Office Memorandum (IOM) which do not conflict

with the provisions of these Company Regulations .

3. These Company Regulations apply to the Company and all Workers as long as the terms

of Collaboration are not specifically regulated in the Employment Agreement or in

placement at the Project location.

4. Provisions regulated in laws and government regulations regarding employment remain

in effect and directly become an inseparable part of these Company Regulations.

Article 3

Company and Employee Responsibilities Regarding Company Regulations

5
1. The Company and Workers are obliged to comply and fully implement Company

Regulations, Standard Operating Procedures (SOP), Company General Policies (KUP),

Inter Office Memorandum (IOM) and Laws and Regulations in the field of employment.

2. Every worker is MANDATORY to understand and comprehend the contents of Company

Regulations, Standard Operating Procedures (SOP), Company General Policies (KUP),

Inter Office Memorandums (IOM) that already exist or will be issued in the future and

Legislation in the field of employment.

3. Workers cannot evade their duties and responsibilities on the grounds that they do not

know or understand the contents of Company Regulations, Standard Operating

Procedures (SOP), Company General Policies (KUP), Inter Office Memorandum (IOM)

and Legislation in the field of employment.

Article 4

Company Rights and Obligations

1. Make regulations deemed necessary for the smooth running of the company as long

as they do not conflict with applicable regulations of the Government of the Republic

of Indonesia and these Company Regulations.

2. Recruitment and selection of workers including but not limited to transfers,

promotions, demotions and termination of employment.

3. The company has the right to the results of the employee's work.

4. The company has the right to order/manage workers with the aim of achieving

targets.

6
 5. The company has the right to terminate employment relations with

workers/labourers/employees if they violate previously agreed provisions.

6. Eliminate all forms of discrimination based on ethnicity, religion, race, between

groups or other discrimination in terms of acceptance, promotion, transfer/mutation

and determination of work or position.

Article 5

Workers' Rights and Obligations

1. Receive fixed or variable wages and allowances from the company.

2. Obtain information/explanation regarding changes in status, namely transfers, promotions

and demotions that will be carried out by the company regarding the position/position,

abilities/skills and career of workers.

3. Workers are responsible for carrying out the work assigned in accordance with the

obligations and orders of the position, both directly and indirectly, as well as possible and

with a full sense of responsibility.

4. Every employee is obliged to comply with and implement all regulations and work

regulations as regulated in these Company Regulations, Standard Operating Procedures

(SOP), Company General Policies (KUP), Inter Office Memorandum (IOM) and any

other provisions that apply in the Company.

5. Every worker is obliged to look after, use and maintain all company assets and work

equipment used during work as well as possible and must return them in good condition

to the company after the end of their work period.

7
6. Workers MUST report personal data and any changes in data to the Personnel

Department, relating to:

a. Last address.

b. Changes in a Worker's family status such as marriage, death, birth or adoption.

c. Heir.

d. Close family composition (wife, children and parents)

e. Proof of genuine education/training in accordance with the field

f. Other proof if needed.

7. Every employee is MANDATORY to try to avoid things that could hinder progress

and/or be detrimental to the company.

8. Every worker MUST understand employment information via notice boards or other

media issued by the company.

9. Every worker is MANDATORY to maintain a clean work environment and/or organize

work procedures in such a way as to prevent undesirable things from happening.

10. Every employee MUST prioritize the company's interests above their personal interests

and, as far as possible, avoid conflicts between the Company's interests and personal

interests and MUST carry out their duties with full dedication, responsibility and high

discipline.

11. Every employee is MANDATORY to maintain the good name of the Company and the

Board of Directors and management within the Company.

12. Every employee MUST sign and implement the Integrity Pact provided by the Company.

8
 CHAPTER II

WORK RELATIONSHIP

Article 6

Employee Acceptance

1. Acceptance of new workers is adjusted to the company's needs and in accordance with

certain terms and conditions determined by the Company.

2. General requirements for accepting new workers are:

9
 a. Indonesian Citizen or Foreign Citizen if required by agreement.

b. Minimum age of 18 years at the time of acceptance, except for experts based on

mutual agreement.

c. Fulfill the position requirements and required competencies

d. Be healthy in body and mind by passing a health test by a doctor appointed by the

company.

e. Willing to comply with placement provisions according to company needs.

f. Be of good behavior in accordance with a certificate from the police if necessary

(SKCK).

g. Willing to show original evidence of documents/personal data including: Educational

diploma and most recent work experience.

h. Willing to obey and comply with the provisions outlined in these Company

Regulations.

i. Pass the test and/or interview held by the Company.

j. Sign an Employment Agreement stating that the prospective employee is aware of

and agrees to these Company Regulations.

Article 7

Employment agreement

1. A work agreement is made for a certain time, abbreviated as PKWT (Specified Time

Work Agreement) or for an indefinite time, abbreviated as PKWTT (Indefinite Time

Work Agreement).

2. A Specific Time Work Agreement (PKWT) is based on:

a. The time period or completion of a particular job.

10
 b. Cannot require a probationary period of employment.

c. A certain period of time can be held for a maximum of 5 (five) years and can be

extended for a period of time according to the agreement between the Company and

the Worker provided that the total term of the PKWT and its extensions is not more

than 5 (five) years.

3. Indefinite Time Work Agreement (PKWTT):

a. An Indefinite Time Work Agreement may require a work trial period of a maximum

of 3 (three) months.

b. During the trial period, each party can not continue or end the employment

relationship at any time and for workers who resign and do not continue or terminate

the employment relationship during the trial period without providing justifiable

reasons, the Company will provide a work reference letter (verklaring) and any

payment other than final wages.

c. Before the trial period ends, the company will notify you of the continuation of the

employment relationship no later than 7 days before the trial period ends.

d. Workers who have passed the probationary period and are deemed competent will be

appointed as permanent workers and have the rights and obligations as determined.

4. Workers who work at PT. Alphatech Dredging Indonesia is NOT ALLOWED to work

for other companies or agencies and if this happens, then the worker is considered to have

committed a serious violation and the company has the right to demand compensation

from the worker if the company can prove the loss.

Article 8

Job Performance Assessment

11
1. The main objectives of the Job Performance assessment are:

a. Create open lines of communication between employees and their superiors.

b. Identifying the strengths and weaknesses of a worker in carrying out their work.

c. Identify employee training and development needs.

d. Providing information on employee suitability for transfers and promotions in (other)

more suitable fields.

e. Providing assistance and guidance for Workers to improve Worker performance.

2. The system and technical implementation of Job Performance Evaluation is regulated

separately and specifically through company provisions which are separate from these

Company Regulations.

3. The results of the work performance assessment will be a reference in determining

several company policies, including changes to the organizational structure, review of

salary increases, promotions and bonus amounts.

Article 9

Worker Rank

1. Based on the nature and type of work, the company can determine employee ranks

starting from the lowest class or rank level to the highest class or rank level.

2. Position arrangements, classification and rank of workers are regulated separately

through a Directors' Decree.

Article 10

12
 Worker Utilization

1. PROMOTION

Promotions can be carried out by following these conditions:

a. There is a vacancy or need within the company to fill a certain position.

b. Proposed by the worker's direct superior (manager level) based on the needs of the

position/structure, potential review and taking into account the results of the work

performance assessment.

c. The Board of Directors will consider promotion proposals and provide approval in

accordance with organizational needs and applicable requirements.

d. Companies can prioritize promotions for workers with at least 1 (one) year of service,

or with different conditions based on the existing situation and conditions.

2. MUTATION

Mutations can be carried out for the following reasons:

a. The company's need for more jobs in a place takes into account the skills, abilities of

workers, and considers their career within the company.

b. Providing opportunities for workers who have the potential to advance so they can

develop their careers in other positions.

c. Workers whose health, according to a doctor's recommendation, does not allow them

to work in the position/job they occupy.

d. In the event that a transfer is a result of company reorganization/modernization and it

is deemed necessary for the company to transfer from one department to another, then

the transfer must not reduce the salary previously received.

13
 e. For workers who are transferred to another department because they made a mistake

or are unable to hold their position any longer, the facilities and allowances related to

their position are adjusted to the new position.

f. The mutation/transfer mechanism is regulated by separate provisions.

g. Workers who refuse transfer are considered to have resigned from the Company.

3. DEMOTION

Demotion can be done for the following reasons:

a. Demotion can occur if a worker is transferred to a position of lower responsibility

because the worker is proven unable to demonstrate adequate work performance

according to the Company's expectations.

b. With demotion, it is hoped that workers will be able to show better performance,

because the level of task demands and responsibilities in their new job is seen to be

more in line with the abilities and skills possessed by the worker concerned.

c. Workers subject to Demotion will continue to receive the same basic wage but

position allowances or facilities that are no longer appropriate to their new position

will be eliminated.

Article 11

Career development

14
1. Career development programs are carried out for the mutual benefit of the company and

employees to increase work productivity and are carried out seriously within the

Company.

2. The success of companies and superiors in career development programs is the creation

of cadres of workers who can replace superiors at any time or fill the need for new tasks

and develop organizational structures.

CHAPTER III

WORKING DAYS, WORKING TIME AND WORKING OVERTIME

15
 Article 12

Working Days and Working Hours

1. The company determines the applicable working days, namely Monday to Friday or in

accordance with statutory regulations in the field of employment, namely 5 (five) or 6

(six) working days in a week and does not include official holidays determined by the

government.

2. The company's working hours are 09.00 – 17.00 or 8 (eight) hours a day and 40 (forty)

hours a week, with 1 (one) hour break every day.

3. The arrangements for working days and hours in the Company are determined based on

the interests and needs of each Department or Division without violating the provisions

set by the Government.

4. If necessary, arrangements for working days and hours can be determined by adjusting

the applicable working days and hours wherever the worker is placed.

5. On certain days where workers are required by religion/belief to perform worship, the

company will provide permission or sufficient time for this purpose.

Article 13

Work Time Discipline

16
1. Workers who are late coming to work for certain reasons are required to report to the

Human Resources Department (HRD) or their direct superior by explaining the reason for

the delay.

2. If for some reason a worker has to leave his job temporarily, before leaving he must ask

permission from the Human Resources Department (HRD) or his immediate superior.

3. Workers who are unable to come to work are required to notify the Personnel Department

(HRD) and their immediate supervisor in any way.

4. Workers who are unable to come to work due to illness are required to immediately

notify the Personnel Department (HRD) and their supervisor directly by sending a sick

certificate from a doctor or agency authorized to do so.

Article 14

Work overtime

1. Overtime work is work carried out for the benefit of the company for more than 7 hours a

day and 40 hours a week for 6 working days or more than 8 hours a day and 40 hours a

week for 5 working days.

2. Overtime work is considered valid if it is in accordance with applicable procedures,

namely accompanied by an Overtime Order and/or according to the schedule that has

been made and/or has received approval from the superior and is in accordance with

attendance.

3. Calculation of overtime work and overtime rates are adjusted to the provisions of

applicable laws and regulations.

4. There is no overtime pay for workers with the position/level of Supervisor and above. As

compensation, allowances are given according to their respective jobs and positions.

17
5. For types of work that receive commissions and/or incentives, excess working time is not

counted as overtime.

6. Overtime periods of less than half an hour are not counted as overtime, more than half an

hour and less than one hour are counted as one hour.

CHAPTER IV

Leave Conditions

Article 15

18
 Paid leave

1. Leave is a worker's absence that is known and approved by the direct superior and

acknowledged by the Human Resources Department (HRD) and submitted before the day

the leave is taken.

2. In cases of emergency and suddenness, leave can be taken by notification by telephone

on the day the leave is taken to the Personnel Department (HRD) and the Direct

Supervisor.

3. The supervisor concerned has the right to approve the employee's leave request if there is

very urgent work that must be completed.

Article 16

Annual leave

1. Every worker who has worked for 12 consecutive months will be entitled to annual leave

of at least 14 (fourteen) working days with full wages, in accordance with applicable

regulations.

2. The annual leave period is set at the beginning of the calendar year (January –

December).

3. Annual leave is valid for 1.5 (one and a half) years from the emergence of the right or at

the latest it can be used before the following year provided that if it exceeds the validity

limit, Annual Leave cannot be cashed in and will expire if it is not used without an

acceptable reason or not for the Company's wishes.

19
4. Applications for annual leave must be submitted and obtained approval from the

Employee's Direct Supervisor (at least Manager level) no later than 1 (one) week before

the date of implementation of the leave.

5. To ensure that the smooth running of work is not disrupted, the company has the right to

arrange the taking and distribution of leave.

6. For the benefit of the Company, the Board of Directors can determine Annual Leave

together on a mass basis.

Article 17

Long Break

1. Workers who have worked for 6 (six) consecutive years without interruption, have the

right to take a long rest for 2 (two) months with full wages and are not entitled to annual

leave in the current 2 (two) years.

2. The right to take a long break must be used for 1 (one) month each in the seventh and

eighth years or 2 consecutive years since the right arose.

3. Long rest can be taken in several parts, where there is one part of taking long rest for 10

(ten) consecutive days.

4. A request for a long rest must be submitted and approved by the worker's superior (at

least at manager level) at least 1 (one) month before the right to a long rest is exercised.

5. Workers who exercise the right to long rest are not entitled to annual leave that year.

Article 18

Childbirth and Pregnancy Breaks

20
1. Female workers who are about to give birth have the right to receive maternity rest while

still receiving full wages during the break (1.5 months before and 1.5 months after giving

birth).

2. Female workers who wish to use maternity rest must submit a written request to the

company no later than 1 (one) month in advance by attaching a certificate from the doctor

or midwife who cared for them, unless in an emergency the written request can be given

later.

3. Work: Women who experience a miscarriage are given the right to a maximum of 1.5

(one and a half) months of sick leave based on a doctor's certificate while still receiving

full pay during the leave.

4. Female workers who take maternity leave will not reduce their rights to annual leave or

long leave as long as the leave is still valid.

Article 19

Special Leave

1. Special leave is given to employees who will carry out religious obligations according to

their respective religions, with written notification known and approved by the Board of

Directors 1 (one) month in advance.

2. Special leave is given to workers who have worked for at least 3 years.

3. Special leave will be given for the required time but not exceeding 40 (forty) days with

full salary.

4. This Special Leave is only given 1 (one) time as long as the Employee works at the

Company.

21
5. For workers who will carry out their religious obligations for the second (2) time, the

worker will be placed on Annual Leave and if the Annual Leave is over then they will be

put on Unpaid Leave.

Article 20

Permission to Leave Work

Permission to leave work without deduction of leave and salary rights is:

a. Married workers (only for first marriage) = 3 (three) working days

b. Workers legally married outside the city = 5 (five) working days

c. Married Workers' Children = 2 (two) working days

d. Circumcision/Baptizing a worker's child = 2 (two) working days

e. Employee's wife who legally gives birth/miscarriage = 2 (two) working days

f. Worker's wife/husband, parent/in-law, child/daughter-in-law dies = 2 (two) working

days

g. Death of a family member in one household = 1 (one) working day

h. Accidents (on duty/out of service) are based on the Director of Directors' discretion in

accordance with the Doctor's Certificate.

i. Fulfill state calls/state obligations in accordance with the law (discretion of the Board

of Directors)

j. Other matters (including fire accidents, natural disasters, house evictions) are given a

special permit policy taking into account the event.

CHAPTER V

REMUNERATION

22
 Article 21

Wage System and Scale

1. The Company's wage system and scale are determined on the basis of job responsibilities

or achievements as reflected in the position class, the provisions of which are based on

the Board of Directors' Decree.

2. The wage scale review is carried out once a year by paying attention to the wage system

and considering the factors of company capacity, inflation rate, increase in the cost of

living and wage levels in the market.

3. Workers' wages are private and confidential, and fall into the category of confidential

information. Workers are not allowed to discuss wages with other workers. Failure to

comply with this provision constitutes a serious offence.

4. Reviewing and adjusting wages is entirely within the company's authority based on work

performance assessments and taking into account company conditions.

5. Wage payments are made once a month no later than the 5th (fifth) of each month.

Article 22

Wages During Sickness

1. Based on a doctor's advice and statement, a worker can be given sick/rest leave while still

receiving full wages, which must be done in accordance with the doctor's approval.

23
2. If a worker is sick for a long period of time and is unable to carry out his work as proven

by a doctor's certificate/approval, the company will pay his wages in accordance with the

following provisions:

a. For the first 4 (four) months, paid 100% (one hundred percent) of wages.

b. For the second 4 (four) months, 75% (seventy five percent) of wages are paid.

c. For the third 4 (four) months, 50% (fifty percent) of wages are paid.

d. For the following month, 25% (twenty five percent) of wages will be paid, before the

company terminates the employment relationship.

3. If after 12 (twelve) months it turns out that the worker concerned is not yet able to return

to work, the company can terminate the employment relationship and this will be done in

accordance with applicable laws and regulations.

CHAPTER VI

BENEFITS AND ASSISTANCE

Article 23

Religious holiday allowance

24
Religious Holiday Allowances will be given before Religious Holidays, with the following

conditions:

a. Religious Holiday Allowance is given in the amount of 1 (one) month's wages for

Workers who have worked for 1 (one) full year and are still working for the Company.

b. For workers who have worked for 1 (one) month or more but less than one year, the

Religious Holiday Allowance will be given proportionally to the year in question.

c. In 1 (one) year, each worker is only entitled to receive 1 (one) holiday allowance.

d. Further provisions regarding Holiday Allowances are in accordance with the provisions

of Permanaker 6/2016.

e. Payment of holiday allowances for Muslim workers will be made 7 days before Eid al-

Fitr and for non-Muslim workers will be made 7 days before Christmas.

Article 24

Marriage Allowance

1. Workers who are getting married for the first time or have a first marriage, are given a

Marriage Allowance, the amount of which is regulated in separate provisions.

2. Marriage allowance is given to workers who have worked for at least 1 year.

Article 25

Condolence Compensation

25
1. The Company provides bereavement compensation for the death of parents, children and

wives of workers and also applies to workers, with the amount of bereavement

compensation regulated in separate provisions.

2. If the worker himself dies and it is not caused by a work accident, then his heirs (by

showing a Certificate of Heirship from the authorized party accompanied by supporting

documents for example: marriage certificate, birth certificate extract, family card) will be

given:

a. The salary of the month in question has passed away.

b. The amount of condolence compensation is regulated in separate provisions.

c. The rights that must be paid are in accordance with applicable laws

Article 26

Assistance for Families of Detained Workers

1. In the event that a worker is detained by the authorities because he is suspected of

committing a criminal act, not based on a complaint from the employer, the company will

not pay the salary of the worker concerned, but the company will provide assistance to

the dependent family with the following conditions:

a. 25% of wages for workers who have 1 (one) dependent

26
 b. 35% of wages for workers who have 2 (two) dependents

c. 45% of wages for workers who have 3 (three) dependents

d. 50% of wages for workers who have 4 (four) dependents

2. The above assistance is provided for a maximum of 6 (six) consecutive months.

3. After 6 (six) months the problem has not been resolved by the authorities or there has

been no court decision, the company will terminate employment relations which will be

carried out in accordance with applicable laws and regulations.

4. If during this period an inspection is carried out by the authorities and the employee

concerned is proven guilty, the Company will dismiss the employee in accordance with

the applicable laws and regulations.

Article 27

Non-Fixed Allowance

a. Meal allowances

1. Companies provide meal allowances according to the nature of each job or have a

special work agreement with the company.

2. Meal allowance is only given to workers who attend work, and is not given if the

worker does not attend work.

3. The amount of meal allowance is regulated in the provisions of the Company's

General Policy.

b. Transportation Allowance

1. The company provides transportation allowances according to the nature of the work

and the level of each position and is a replacement for transportation costs from the

worker's residence to the work location or vice versa.

27
 2. The company is not responsible for paying traffic fines, fines for lost parking

cards/tags caused by workers.

c. Maternity Benefit

1. The Company provides Maternity Benefits to female workers/workers' wives in

accordance with Standard Operating Procedures (SOP), Company General Policy

(KUP) and Inter Office Memorandum (IOM).

2. Female workers/workers' wives who give birth are given birth allowance for up to 3

(three) children.

3. Birth allowance is given if the worker can show a valid certificate (birth certificate)

from the Population and Civil Registry Service.

4. The amount of the Maternity Benefit is regulated in separate provisions.

d. Service Allowance

For workers who work out of town on orders from the Company, service allowances are

given in accordance with the Company's provisions, while still paying attention to the

obligation to fill in the Official Travel Form which has been provided by the Company

with the knowledge and approval of the Direct Supervisor.

1. What is meant by official travel is tasks carried out by workers outside the company

premises or outside their daily work area with a radius of at least 100 (one hundred)

kilometers (one way travel).

2. The company provides official travel costs and allowances to workers who undertake

official travel.

3. Official travel provisions will be regulated in separate provisions.

e. Disaster Allowance

28
For workers who experience disasters caused by other natural events, including fires,

earthquakes, tsunamis, volcanic eruptions, typhoons and landslides, the company will

provide disaster benefits which will be regulated in separate provisions.

CHAPTER VII

WELL-BEING

Article 28

Social Security Administering Body (BPJS)

Employment

29
1. The company includes workers in the Employment Social Security Administering

Agency (BPJS) in accordance with Law No. 24 of 2011, namely the program:

a. Work Accident Insurance (JKK) with a premium contribution of 0.24% of the monthly

salary paid/borne by the Company.

b. Death Guarantee (JK) with a premium contribution of 0.30% of the monthly salary

paid/borne by the Company.

c. Old Age Security (JHT) with premium contributions of 5.7% of monthly salary with a

distribution of payment burden of 3.7% paid/borne by the Company, while 2.0% is the

responsibility of the employee.

d. Pension Guarantee with Premium Contribution of 3.0% of monthly salary with a

distribution of payment burden of 2.0% paid/borne by the Company, while 1.0% is the

responsibility of the employee

e. Job Loss Guarantee with Premium Contribution of 0.46% of the worker's monthly wages

reported by the company to BPJS Employment.

2. Premium payments for the BPJS Employment program are deducted directly from the

basic wage and paid to BPJS Employment by the Company every month.

Article 29

Medical facility

1. Basically, the health care of workers and their families is the responsibility of each

worker. To help workers and their families so that they receive good health service

standards, the company provides health care assistance facilities for workers and their

families in collaboration with BPJS Health.

30
2. Those entitled to receive health facilities are workers who have worked for 6 (six)

consecutive months or more.

3. The company provides other health facilities outside BPJS Health for workers and their

families for outpatient and inpatient health care amounting to 1 (one) month's basic salary

for 1 (one) year. If within the usage period the maximum budget limit for the Health

facility is not reached or is not used at all, then the difference or the entire unused Health

facility budget cannot be cashed out or counted as an additional budget for the following

year. In line with this provision, all costs that exceed the Health facility budget are the

responsibility of the Worker.

4. Reimbursement for health facility claims is 100% of the total medical costs.

5. The budget period for Workers' Health facilities is from January to December.

CHAPTER VIII

WORKING RULES

Article 30

General Obligations

1. Workers are required to seriously and disciplinedly carry out and comply with all

provisions in the Company Regulations as well as all directions given by both superiors

and management.

31
2. Workers are obliged to pay attention to the interests of the Company as best as possible

and be disciplined in carrying out the tasks assigned to them either directly or indirectly

by the Company or their direct superior, as well as paying attention to/carrying out all

orders and anything related to these orders.

3. Workers are obliged to use the facilities provided only for the benefit of the company and

not to use these facilities for personal interests and business as well as carrying out

trading business during office operational hours and locations.

4. Every employee must be present at their respective places at the appointed time while

always observing the obligations specified in these Company Regulations and/or special

provisions specified in the Employment Agreement, except with permission or orders

from their Direct Supervisor/Director to carry out their duties. tasks outside the

workplace.

5. Every worker is obliged to cooperate with his superior or other workers in carrying out

his duties and carry them out as well as possible and is not permitted to transfer his duties

to other people without his superior's permission and is not permitted to consider/choose

whether the work given to him is heavy or light. Failure to comply with this provision

constitutes an offence.

6. Every worker is obliged to look after and maintain properly all Company property or

assets by always paying attention to these Company Regulations and Workers are

prohibited from bringing and/or using goods/equipment belonging to the company out of

the Company premises without authorized permission and for purposes other than their

work/ personal. Failure to comply with this provision constitutes an offence.

32
7. Every worker is obliged to maintain a clean work environment and personal health from

infectious diseases.

8. Every worker is required to wear work equipment to maintain personal safety while

working in their work environment.

9. Every employee is obliged to maintain and uphold Company secrets. Failure to comply

with this provision constitutes a Serious Violation.

10. Every worker is required to immediately report in writing to the Company through the

Personnel Department (HRD) any changes to his or her status, family structure,

residential address, etc., and the report is expected to be received by the Personnel

Department (HRD) no later than 2 (two) weeks after the change occurs.

11. Every worker is obliged to check all their work tools before starting work or leaving

work so that they do not cause damage/danger that will disturb the Company. Failure to

comply with this provision constitutes an offence.

12. Workers are obliged to develop their skills and knowledge in order to support the

implementation of their duties.

13. Workers are required to be polite and respectful towards management, superiors,

subordinates and their work relatives.

14. Workers are obliged to immediately report to their superiors/company if they become

aware of any irregularities that could cause danger or loss to the Company.

Article 31

Absent/Not Attending Work

33
1. If a worker does not come to work without permission from his superior and without

reasons that are acceptable to the company and his attendance is not recorded without

acceptable information, then the worker is considered absent/absent and is not entitled to

receive food allowance and is considered to be on leave for 1 day. .

2. If you are absent/absent for 5 (five) consecutive working days and have been summoned

by the Company 2 (two) times properly and in writing but the Worker cannot provide

written information with valid evidence, then the Company can terminate the

Employment Relationship in accordance with which are regulated in the applicable

Legislation.

Article 32

Disciplinary Actions and Sanctions for Violations

1. Both the Company and the Workers are obliged to make full efforts to enforce work

discipline, therefore for violations of the Company's Code of Conduct it is deemed

necessary to take disciplinary action as a corrective action and direction for the Worker's

attitudes and behavior.

2. Every employee who violates the Company's Code of Conduct, violates the law or causes

harm to the Company will be subject to sanctions/action from the Company in the form

of a reprimand or warning or suspension or termination of employment and will be

subject to compensation if necessary, carried out in accordance with applicable laws and

regulations.

34
 3. The purpose of providing these sanctions/actions is to foster discipline, namely to educate

and always provide opportunities for workers to improve their attitudes that are not in

accordance with the Company's Code of Conduct.

Article 33

Basis for Imposing Disciplinary Action

Worker disciplinary action at the company is based on

a. Type of violation

b. Frequency (often/repetition) of violations committed

c. Weight of violation

d. Element of intention

e. Company Rules and Regulations

Article 34

Giving a Warning Letter

1. In accordance with Government Regulation no. 35 of 2021 Article 52, the first warning

letter, second warning letter and third warning letter are given sequentially.

2. Types of violations, given a warning letter:

1. Not being present at the office for 1 (one) working day without valid information

and/or acceptable to the company and informed by the Direct Supervisor or Section

Manager.

2. Several times arriving late, both in the morning when entering/starting work and

when returning from break/lunch, without a reasonable reason.

35
3. Leaving the workplace or leaving early without permission from the immediate

supervisor or section manager.

4. Neglecting his obligation to notify and submit a doctor's certificate at the first

opportunity to come to work.

5. Disobeying superiors' directions without a reasonable reason

6. Not informing the Personnel Department regarding changes to the Employee's

personal data (Marriage Letter/Certificate, Birth Certificate, Change of

Address/Residence).

7. Failure to comply with rules regarding cleanliness and tidiness of the workplace and

work tools.

8. Often makes mistakes in work or is unable to complete the work that has been

assigned to him or cannot achieve the agreed work performance targets.

9. Deliberately or unintentionally neglecting the obligation to know the contents of these

Company Regulations and other regulations that already exist or will be issued and

using this as an excuse for employees to avoid their duties and responsibilities.

10. Absence from work for 2 (two) consecutive working days or 4 (four) non-consecutive

working days in a month without providing justifiable information/reasons.

11. Arriving late, leaving early or leaving his duties for personal needs for 3 consecutive

days or 6 non-consecutive days in one month without permission from his direct

superior/or Section Manager.

12. Moving, carrying or using equipment belonging to the Company outside the

Company premises without permission from superiors/officials authorized to do so.

13. Failure to carry out or refuse proper/appropriate orders from superiors.

36
 14. Entering the office without permission from superiors outside working hours/days

and on holidays, or entering another person's room/workplace without permission

from the official on duty or appointed during working days.

15. Take over the work of another worker except at the request of the direct

superior/authorized official.

16. Often repeat mistakes when doing work or are unable to do work or cannot achieve

targets agreed upon by superiors.

17. Lazing around, sleeping around, or playing games during working hours.

18. Not being polite and respecting each other towards management, superiors,

subordinates and work relatives.

19. Not being present at the office/not working for 3 (three) consecutive working days or

5 (five) non-consecutive working days in a month without attaching a doctor's

certificate or valid evidence that can be accounted for by the Company.

20. Ignoring tasks assigned by the Company without an acceptable reason.

21. Using and/or giving permission to use without authorization without the permission

of the Direct Supervisor the Company's assets and/or facilities for personal interests

and business.

3. If an employee commits another violation or repeats a violation of the First Warning

Letter and the Warning Letter is still valid, a further Warning Letter can be issued

4. First and Final Warning Letter:

1. After three consecutive attempts, the worker still refused to obey orders even though

a warning letter had been issued.

2. Carrying out actions or deeds that could cause trouble or unrest within the Company

37
 3. Deliberately leaving himself in such a state that he cannot carry out the work assigned

to him.

4. Incompetent to carry out work even though he has been given several opportunities in

other departments and has been given a written warning.

5. Deliberately, without an acceptable reason or without the permission of his/her

superior, has moved/stored company property in an inappropriate place as an attempt

to steal or assist in theft.

6. Carrying out demonstrations, inviting and/or influencing workers to carry out

demonstrations or strikes that are not in accordance with Company Regulations or the

laws in force in Indonesia.

7. Misusing attendance cards by filling in incorrect data or asking other workers to print

attendance cards on the recording machine.

8. Not informing superiors or not taking preventative action when learning about an

incident or danger that could harm the Company or co-workers.

9. Scribbling, tearing or unauthorizedly taking announcements/notices on the company

notice board.

10. Because carelessness damages, removes or causes the loss of company property in the

area where they live.

5. Violations due to urgent reasons, resulting in layoffs:

1. Proven to have provided false or falsified testimony or information at the interview

stage, filling out application forms and other documents when applying for a job; or

proven to have committed any kind of forgery for one's own or another person's

benefit in any form that could harm the company, co-workers or customers.

38
2. Losing and/or damaging documents/securities/confidential letters or company

belongings, whether intentionally or unintentionally, or leaving company property in

a dangerous condition which will cause losses to the company and in this case

additional sanctions may be imposed to pay compensation. make a loss.

3. Carrying/storing or using/under the influence of narcotic drugs, stimulants,

drunkenness, violence in the workplace and company environment.

4. Committing immoral acts in the workplace/company environment, causing unrest to

other workers and tarnishing the company's name

5. Committing crimes, for example stealing, embezzling goods/money, cheating, trading

prohibited goods both inside and outside the Company premises.

6. Persecuting, insulting, being rude or threatening Company Management or fellow

Workers in the work environment.

7. Bring firearms or sharp weapons into the Company's premises unless the nature of the

job/position he holds requires it.

8. Persuading, provoking employers or fellow workers to do something that is contrary

to law or morality in any form.

9. Deliberately or through carelessness, doing something that could damage or harm the

company, including but not limited to carrying out acts of buying and selling

company assets for personal gain.

10. Deliberately or through carelessness puts himself or other workers in a dangerous

position.

11. Leaking or providing information that constitutes Company secrets, including but not

limited to financial and payroll matters.

39
 12. Defaming the good name of the Company Chairman and his family.

13. Taking or using money belonging to the Company for personal or other people's

interests.

14. Neglecting duties, working haphazardly, or not carrying out work properly to the

detriment of the Company even though we have been given a final warning.'

15. Deliberately or through carelessness damages, loses or causes the loss of Company

property while on leave and/or outside the area where he lives.

16. Gambling in any form carried out within the Company's premises

17. Accepting compensation for services from anyone that could result in harm to the

Company.

18. If due to negligence, employee carelessness results in material or non-material losses

for the Company or other third parties, they may be subject to additional sanctions of

paying compensation or fines.

19. Deliberately entering into an employment relationship with a company and/or another

agency without the Company's approval, either before or after establishing an

employment relationship with the Company.

20. Violating the provisions of the Integrity Pact.

Article 35

Sanctions for Violations

Below is a description of sanctions for violations committed by workers, as follows:

- TIER 1

Type of Disciplinary Action =Verbal/Written Warning/Reprimand

40
 Who is authorized/obligated to sign =Direct supervisor (Supervisor or Section

Manager) with a copy to the Personnel Department.

- LEVEL 2

Type of Disciplinary Action =Warning Letter 1 (SP1)

Who is authorized/obligated to sign =Direct supervisor (Supervisor or Section

Manager) with a copy to the Personnel Department.

- TIER 3

Type of Disciplinary Action =Warning Letter 2 & Warning Letter 3

Who is authorized/obligated to sign =Direct supervisor (Supervisor or Section

Manager) with a copy to the Personnel Department.

- TIER 4

Type of Disciplinary Action =First and Final Warning Letter

Who is authorized/obligated to sign =Direct supervisor and HR Manager.

- TIER 5

Type of Disciplinary Action =Due to Urgent Reasons

Who is authorized/obligated to sign =Carried out by the Direct Supervisor, Personnel

Department and approved by the Company's Directors. Implementation of layoffs and

employee rights in accordance with applicable laws and regulations.

Article 36

41
 Consequences of Giving a Warning Letter

1. Workers who receive a warning letter due to mistakes/violations they have made may

be subject to a reduction in their performance/conduct evaluation score.

2. A reduction in employee evaluation/conduct scores can result in:

a. Postponement of promotion to position/rank and/or salary

b. Postponement/reduction in payment of allowances or bonuses that will be

received by the Employee.

3. If a worker's violation causes losses to the company, the company can impose

compensation sanctions on workers who receive a warning letter from the company,

namely that the worker is willing to pay the compensation by deducting a maximum

of 30% of their monthly wages until it is paid in full and is carried out with reference

to Applicable laws and regulations.

Article 37

Temporary Work Release (Suspension)

1. If a worker still violates the Work Code or other violations even though he has been

warned in writing 3 (three) times in a row, the company will temporarily dismiss the

worker.

2. During the work release period:

a. This time is calculated towards the work period of the worker concerned.

b. Workers are not permitted to come to work, except in the process of resolving their

problems.

42
3. During suspension, the Company pays wages and other rights that workers usually

receive.

CHAPTER IX

WORK TERMINATION
43
 Article 38

General Termination of Employment

1. Expiration of the Fixed Time Work Agreement.

With the end of the Specific Time Work Agreement (PKWT), the employment

relationship will terminate automatically and the Company will provide compensation in

accordance with applicable laws and regulations.

2. Workers who are absent work for at least 5 (five) continuous working days.

In the event that a worker is absent from work for at least 5 (five) continuous working

days and has been summoned by the company 2 (two) times in writing and appropriately

but the worker is unable to provide written information with valid evidence, then his

employment relationship can be terminated and he is entitled to compensation. rights and

separation money.

3. The worker died.

4. Workers reach the retirement age of 55 years.

For workers who are dismissed because they are entering retirement age, they will be

given compensation in accordance with Article 56 of the Indonesian Government

Regulation concerning Fixed Time Work Agreements, Outsourcing, Working Time and

Rest Time, and Termination of Employment Government Regulation No. 35 of 2021.

Article 39

Termination of Employment at the Employee's Request

44
 1. In this case, the employee must submit a request for resignation at least 30 (thirty)

days in advance to his or her superior with a copy to the Head of Department/Director

in charge and the Personnel Section.

2. Workers who resign and are qualified to resign will not receive severance pay or

gratuity pay but are entitled to compensation and separation pay for their loyalty

while working, which is determined based on company policy.

Article 40

Termination of Employment at the Company's Initiative (Will).

1. The worker is sick for 12 (twelve) consecutive months.

2. Violation of the rules and regulations during the validity period of the first and last or

third written warning.

3. Urgent violations.

4. If termination of employment is forced to be carried out due to the Company's

operational activities being reduced or terminated due to the company's deteriorating

conditions, the Employer is obliged to provide severance pay and/or service pay based on

the applicable laws and regulations in the field of employment.

5. Income tax on severance pay and/or service gratuity is the responsibility of the worker.

Article 41

Termination Rules

45
 1. Basically, the Company prevents termination of employment without any strong basis or

reason. If after all efforts have been made and termination of the employment relationship

cannot be avoided, then the termination of the employment relationship will be carried

out through bipartite deliberation by both parties.

2. If deliberation cannot be reached, then the settlement will be forwarded tripartitely to the

local employment agency.

3. Every process of terminating employment relations and settling the obligations and rights

of each party will be carried out in accordance with Labor Law No. 13 of 2003 and other

applicable laws and regulations.

4. Settlement of the rights and obligations of both parties is carried out after there is a

mutual agreement between the Worker and the Company.

Article 42

Severance Pay, Long Service Rewards, Replacement Pay and Separation Pay

Provisions for granting severance pay and service pay and compensation for rights are in

accordance with article 156 of the Republic of Indonesia Law Number 11 of 2020 concerning

Job Creation and Article 40 of the Republic of Indonesia Government Regulation concerning

Certain Time Work Agreements, Outsourcing, Working Time and Rest Time, and Termination

Employment Relations No.35 of 2021, as follows:

1. In accordance with applicable laws and regulations, the wage components used as a basis

for calculating Severance Pay, Long Service Rewards, Replacement Rights and

Separation Pay consist of:

a. Basic salary

46
 b. Fixed Allowance

2. Severance pay, regulated for those entitled to it, is as follows:

a. Working period of less than 1 year = 1 month's wages

b. Work period of 1 year or more but less than 2 years = 2 months' wages

c. Work period of 2 years or more but less than 3 years = 3 months' wages

d. Work period of 3 years or more but less than 4 years = 4 months wages

e. Work period of 4 years or more but less than 5 years = 5 months' wages

f. Work period of 5 years or more but less than 6 years = 6 months wages

g. Work period of 6 years or more but less than 7 years = 7 months wages

h. Work period of 7 years or more but less than 8 years = 8 months' wages

i. Work period of 8 years or more = 9 months' wages

3. Period of Service award money, the amount for those who are entitled to receive it is at

least as follows:

a. Work period of 3 years or more but less than 6 years = 2 months' wages

b. Work period of 6 years or more but less than 9 years = 3 months wages

c. Work period of 9 years or more but less than 12 years = 4 months wages

d. Work period of 12 years or more but less than 15 years = 5 months wages

e. Work period of 15 years or more but less than 18 years = 6 months wages

f. Work period of 18 years or more but less than 21 years = 7 months wages

g. Work period of 21 years or more but less than 24 years = 8 months wages

h. Work period of 24 years or more = 10 months' wages

4. Replacement money for rights which includes:

a. Annual leave that has not been taken and has not yet expired.

47
 b. Costs or return costs for workers and their families to the place where the worker is

accepted to work.

c. Other matters stipulated in the Employment Agreement or Company Regulations.

5. Severance payment

A. For workers who resign amicably from the company and fulfill administrative

requirements or carry out responsibilities, the employee does not receive severance

pay and long service pay but still gets compensation money and separation pay for his

loyalty while working.

The amount of Separation Money is as follows:

a. Working period of less than 3 years does not get separation pay.

b. Work period of 3 years or more, but less than 6 years, equals 1.5 months' salary.

c. Work period of 6 years or more, but less than 9 years, equals 2.5 months' salary.

d. Work period of 9 years or more, but less than 15 years, equals 4 months salary.

e. Work period of 15 years or more, 6 months salary.

B. For workers who are absent for 5 (five) consecutive working days without

explanation and have been summoned by the Company twice in writing, Termination

of Employment for urgent reasons, Violation or not complying with the resignation

requirements 1 (one) month in advance and not resolve administrative problems or

carry out responsibilities, then compensation money and separation money are

regulated as follows:

a. Working period of less than 3 (three) years does not receive Separation Pay.

b. Work period of 3 (three) years or more, but less than 6 (six) years, amounting to

500,000 (five hundred thousand rupiah)

48
 c. Work period of 8 (eight) years or more, amounting to 750,000,- (seven hundred

and fifty thousand rupiah).

Article 43

Employee Debt

1. In connection with the termination of the employment relationship between the company

and the worker, the employee's personal debts to the company or vice versa with valid

evidence will be calculated at the same time as severance pay, service award money and

compensation money on behalf of the worker or from other sources of funds on behalf of

the worker. .

2. If it turns out that the Severance Pay, Service Period Rewards and Compensation Money

are still insufficient to pay off the Worker's personal debts, this Termination of

Employment does not automatically free the Worker from his debts to the Company.

3. In the event that a worker resigns, the worker's personal debts to the company or vice

versa must be paid/resolved first.

4. Workers who have debts to the company are required to provide collateral until the debt

is paid in accordance with the amount of the debt based on the provisions set by the

company.

CHAPTER X

TRAINING AND DEVELOPMENT

Article 44

Training Within the Company (In House Training) and Outside the Company

49
1. The Company seeks to improve the special knowledge, general knowledge, skills, skills,

mental attitude, way of thinking and high discipline of workers by holding or

participating in training and development both within and outside the Company

environment.

2. Training is always adjusted to the level of knowledge, field of work and position of the

employee as well as the needs of the Company.

3. Training and development is proposed by the Dept. Head, acknowledged by the

Personnel Department and approved by the Board of Directors.

4. If training within the Company is not possible, then with Management approval, training

can be carried out/continued/participated outside the Company.

5. Workers who are assigned to take part in training and development are obliged to

seriously follow and comply with all training programs determined by the Company or

the training implementation committee.

6. All training costs including and not limited to required equipment are borne by the

Company.

7. If the total costs incurred in connection with fulfilling the training payment prerequisites

exceed the value determined by the Company/Directors, then before the training is

carried out, a Service Engagement Letter will be made and agreed upon by the Company

together with the Workers.

8. If there is a certification examination program in the training, then the original certificate

obtained from the training and/or certificate examination must be submitted to the

Company and will be returned when the employee has resigned on condition that he is

not bound by any official ties.

50
 9. Workers who are assigned to take part in training and development are obliged to apply

the results of the training and development to their field of work and are also obliged to

inform other fellow workers about the results of the training and development.

10. Other provisions regarding training will be regulated in separate provisions based on the

Board of Directors' decision.

CHAPTER XI

DRESS IN YOUR WORK ENVIRONMENT AND OFFICE VEHICLE

Article 45

OFFICE DRESS

Clothing for workers during working hours is as follows:

51
 a. Dress neatly and politely.

- shirt/collared t-shirt/batik & trousers (Men).

- shirt/collared t-shirt/batik/blazer & skirt or trousers (women).

b. Closed footwear (Shoes for Men/Women & Flat Shoes for women only).

c. Accessories that are not excessive.

Article 46

OFFICE TRANSPORTATION

1. Office vehicles are only used based on the Company's interests for Employees who wish

to take care of Company affairs outside the Office.

2. It is prohibited for workers who want to use office vehicles for workers' personal

interests.

CHAPTER XII

COMPLAINTS AND SUGGESTIONS

Article 47

Employee Complaints and Complaints

52
1. If a worker feels that he or she has been treated unfairly or unreasonably by the Company

and is in conflict with the provisions of the Code of Conduct, the worker can submit a

complaint or grievance to his or her superior directly.

2. If the immediate supervisor has been given sufficient time to resolve the complaint or

complaints but the worker is not satisfied with the information or decision he has

received, the worker can submit the complaint or grievance to the head of the Personnel

Department or the Board of Directors after informing his immediate superior of his

intention.

3. Complaints or complaints that are not resolved according to the above procedures will be

returned by the Company to the officer responsible for resolving them.

4. The decision of the Board of Directors is the final decision within the Company.

CHAPTER XIII

CLOSING

Article 48

Obligation to Know the Contents of Company Regulations

53
1. Every employee is obliged to know and comply with these Company Regulations as well

as other regulations (Standard Operating Procedures, Company General Policies and Inter

Office Memorandum) that already exist or will be issued as long as they do not conflict

with Company Regulations.

2. No worker can avoid his duties and responsibilities by reason of not knowing the

Company Regulations.

3. Failure to comply with this provision constitutes an offence.

Article 49

Validity Period of Company Regulations

54
1. This Company Regulation is valid for 2 (two) years, starting from the time it is ratified in

a letter ratifying this Company Regulation by the South Sulawesi Provincial Manpower

Service.

2. Everything that is not or is not sufficiently regulated in these Company Regulations will

be regulated and determined later with the note that the Board of Directors has the right

to add to, or subtract from and change existing provisions as long as they do not conflict

with the applicable Regulations or Legislation.

3. This Company Regulation Book is distributed and disseminated to all workers so that

they know, understand and implement it properly based on a full sense of responsibility.

4. If there are work requirements that conflict with the applicable laws and regulations, then

they are null and void and what applies is in accordance with the applicable laws and

regulations.

Established in: Makassar

___________________________

PT Alphatech Dredging Indonesia

Philip Alexander

Director

55