PRIVATE & CONFIDENTIAL

PT. ___________________________________

____________________________________________

CALCULATION OF SEVERANCE AND OTHER TERMINATION PACKAGES ____________________________________________

___________ 2004

PT. _________________________________

CALCULATION OF SEVERANCE AND OTHER TERMINATION PACKAGES 1. General Principles and Definitions A. Severance Payment (Years A) 1 months salary 2 months salary 3 months salary 4 months salary 5 months salary 6 months salary 7 months salary 8 months salary 9 months salary

Working period 1 year or more but less than 2 years Working period 2 years or more but less than 3 years Working period 3 years or more but less than 4 years Working period 4 years or more but less than 5 years Working period 5 years or more but less than 6 years Working period 6 years or more but less than 7 years Working period 7 years or more but less than 8 years Working period 8 years or more B. Long Service Pay (Years B) Working period 3 years or more but less than 6 years Working period 6 years or more but less than 9 years Working period 9 years or more but less than 12 years Working period 12 years or more but less than 15 years Working period 15 years or more but less than 18 years Working period 18 years or more but less than 21 years Working period 21 years or more but less than 24 years Working period 24 years or more C.

2 months salary 3 months salary 4 months salary 5 months salary 6 months salary 7 months salary 8 months salary 10 months salary

Separation Money (Uang Pisah) [note: if eligible and as in PP, CLA, etc.] Working period 3 years or more but less than 6 years Working period 6 years or more but less than 9 years Working period 9 years or more but less than 12 years Working period 12 years or more but less than 15 years Working period 15 years or more but less than 18 years Working period 18 years or more but less than 21 years Working period 21 years or more but less than 24 years Working period 24 years or more [*] months salary [*] months salary [*] months salary [*] months salary [*] months salary [*] months salary [*] months salary [*] months salary

D.

Compensation: 1. 2. Untaken annual leave that has not been validly cancelled. Transportation costs for the Employee and his/her family to the place where the Employee was recruited.

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Housing, medical treatment and medication allowance equal to 15% of the severance payment and long service pay if the working period fulfils the requirement for long service pay. Other matters as stipulated in the relevant employment agreement, Company Regulation or Collective Labour Agreement.

4.

Salary for the purpose of calculating severance payment, long service pay and compensation consists of basic salary as well as every fixed allowance given to the Employee and his/her family permanently and regularly and including the value of benefits (e.g. uniform) given free of charge to the Employee.

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Specific Termination Reasons Reason for Termination Serious mistake Serious mistake where Employees duty/function does not directly represent Employers interest (Non-Staff) Criminal action against Employee + guilty/6 months Minor mistakes, etc. Voluntary resignation Voluntary resignation where Employees duty/function does not directly represent Employers interest (Non-Staff) Change of status merger, ownership, etc. and Employee terminates Change of status, merger, ownership etc. and Employer terminates Employer continuous majeure. closed losses due to or force Manpower Law Provision 158 (3) 158 (4) COMP SEP AS PER EA, CR OR CLA + COMP Entitlement

160 (7) 161 (3) 162 (1) 162 (2)

LSER + COMP SEVE + LSER + COMP COMP SEP AS PER EA, CR OR CLA + COMP

163 (1)

SEVE + LSER + COMP

162 (2)

2 X SEVE + LSER + COMP

164 (1)

SEVE + LSER + COMP

Efficiency/redundancy/downsizing Employers bankruptcy Death of employee Employee absent for 5 days (Staff & Non-Staff) Employers actions guilty Employers actions not guilty Long-term illness of Employee SEP SEVE LSER COMP = = = = separation money (uang pisah) severance payment long service pay compensation

164 (3) 165 166 168 (3) 169 (2) 169 (3) 172 EA CR CLA

2 X SEVE + LSER + COMP SEVE + LSER + COMP 2 X SEVE + LSER + COMP SEP AS PER EA, CR OR CLA + COMP 2 X SEVE + LSER + COMP COMP 2 X SEVE + 2 X LSER + COMP = employment agreement = company regulation = collective labour agreement

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Calculation Examples A. Serious Mistake Voluntary Resignation Employees Absence Severance Pay Service Pay Compensation (i) Untaken Leave (ii) 15% housing & medical : Article 158 (3) and (4) : Article 162 (1), (2) : Article 168 (3) : 0 : 0 : : [number of days untaken leave] x Rp. Salary / [21/25*] : 0

(iii) Repatriation cost (if any) : [*] Separation Money : [*] [only for Non Staff, except in the Employees Absence where Staff are also entitled to Separation Money]

Note: * 21 if 5 working days per week or 25 if 6 working days per week.

B.

Redundancy/Downsizing Employers Action (Employer Guilty) Change of Status Etc./ Employer Terminates Severance Pay Service Pay Compensation (i) Untaken Leave (ii) 15% housing & medical

: Article 164 (3)

: Article 169 (2)

: Article 162 (2) : 2 x Years A x Rp. Salary : 1 x Years B x Rp. Salary : : [number of days untaken leave]x Rp. Salary / [21/25*] : 15% x (Severance Pay + Service Pay)

(iii) Repatriation cost (if any) : [*] Note: * 21 if 5 working days per week or 25 if 6 working days per week.

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C.

Employer Closed-Losses/ Force Majeure Employer Bankrupt

: Article 164 (1) : Article 165

Employees Minor Mistakes : Article 161 (3) Change of Status, Etc./ Employee Terminates Severance Pay Service Pay Compensation (i) Untaken Leave (ii) 15% housing & medical

: Article 163 (1) : 1 x Years A x Rp. Salary : 1 x Years B x Rp. Salary : : [number of days untaken leave]x Rp. Salary / [21/25*] : 15% x (Severance Pay + Service Pay) [*]

(iii) Repatriation cost (if any) :

Note: * 21 if 5 working days per week or 25 if 6 working days per week.

D.

Death of Employee Severance Pay Service Pay Compensation (i) Untaken Leave (ii) 15% housing & medical

: Article 166 : 2 x Years A x Rp. Salary : 1 x Years B x Rp. Salary : : [number of days untaken leave]x Rp. Salary / [21/25*] : 15% x (Severance Pay + Service Pay)

(iii) Repatriation cost (if any) : [*] Discretionary Death Payment : [*] [if applicable see PP, CLA] Note: * 21 if 5 working days per week or 25 if 6 working days per week.

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E.

Employee Guilty of Criminal Action Severance Pay Service Pay Compensation (i) Untaken Leave (ii) 15% housing & medical

: Article 160 (7) : 0 : 1 x Years B x Rp. Salary : : [number of days untaken leave]x Rp. Salary / [21/25*] : 15% x (Severance Pay + Service Pay)

(iii) Repatriation cost (if any) : [*] Note: * 21 if 5 working days per week or 25 if 6 working days per week.

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Employers Action (Employer Not Guilty) Severance Pay Service Pay Compensation (i) Untaken Leave (ii) 15% housing & medical

: Article 169 (3) : 0 : 0 : : [number of days untaken leave]x Rp Salary / [21/25*] : 0

(iii) Repatriation cost (if any) : [*] Note: * 21 if 5 working days per week or 25 if 6 working days per week. G. Long-term Illness Severance Pay Service Pay Compensation (i) Untaken Leave (ii) 15% housing & medical : Article 172 : 2 x Years A x Rp. Salary : 2 x Years B x Rp. Salary : : [number of days untaken leave]x Rp. Salary / [21/25*] : 15% x (Severance Pay + Service Pay)

(iii) Repatriation cost (if any) : [*] Note: * 21 if 5 working days per week or 25 if 6 working days per week. ****

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Example of Calculation Format Calculation of Severance Package for Mr. ______________ Basic Salary (B) Fixed Allowance (C) Date of Employment Date of Termination Length of Service Length of Service Equivalent : Rp. __________ : Rp. __________ : _______ 200_ : _______ 200_ : __ years __ month

: Severance Pay (A1) __ months salary : B+C : __ days : 5 days : A1 x D A2 x D A3 x D

Service Pay (A2) __ months salary

Uang Pisah (A3) __ months salary

Salary (D) Untaken Leave (E) Working Days/week Severance Package Severance Pay (F): Service Pay (G):

= Rp. ____________

Rp. __________ Rp. __________ Rp. __________

Separation Pay (uang pisah) (H): Compensation: a. Untaken Leave b. Housing/Medical Allowances c. Repatriation Cost (if any) Subtotal Compensation (I): Total Severance Package Deduct: unpaid loans, debts, etc. Grand Total

E x (D/[21 or 25]) 15% x (F + G)

Rp. __________ Rp. __________ Rp. __________ Rp

F+G+H+I=

Rp____________ Rp. __________ Rp. __________

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