VENDOR POLICY

PT MRT JAKARTA

1.     PT MRT Jakarta (Perseroda) prioritizes direct procurement to manufacturers, authorized distributors or sole agents and avoids the use of intermediaries that do not provide added value.

2.    Vendors participating in the process of procuring goods or services at PT MRT Jakarta (Perseroda) are required to meet the following requirements:

a.    Having expertise, experience and technical and management capabilities in accordance with their line of business.

b.    Having resources (facilities, human resources, production equipment, and other resources) that are in accordance with the category of business in supporting operational activities.

c.    Preferred legal entity.

d.    Not being subject to legal sanctions or being involved in a legal case that could impact the operational failure of PT MRT Jakarta (Perseroda).

3.    Vendors are obliged to obey the rules and requirements that apply in Indonesia and in the environment of PT MRT Jakarta (Perseroda) related to the procurement of goods / services.

4.    Vendors who do not yet have PT MRT Jakarta e-Procurement Users are required to register by:

a.    Register the company by filling out the registration form provided on the registration page.

b.    Activating the User Id that is sent automatically from the e-Procurement system to the registered email address of the company.

c.    Complete all Administrative data entries and attachments of required Company documents.

d.    Uploading the Terms and Conditions document signed by the Company Director.

e.    Make revision to the documents on the review results provided by PT MRT Jakarta Procurement unit (Perseroda).

6.     PT MRT Jakarta (Perseroda) stipulates Approved Vendor List ("AVL") which will be used in routine and non-bidding procurement. Vendors in AVL are Vendors who have been declared to have passed the evaluation process conducted by PT MRT Jakarta (Perseroda).

7.    Vendors who are interested in registering themselves as AVL must fulfill all registration requirements required by PT MRT Jakarta (Perseroda), to be further evaluated in accordance with the applicable provisions at PT MRT Jakarta (Perseroda).

8.    Each vendor can be registered in a maximum of 2 (two) types of classification and a maximum of 3 (three) sub-business fields for each type of classification.

9.    In an effort to encourage vendor performance improvement, PT MRT Jakarta (Perseroda) has established a Vendor Performance Assessment System to ensure quality as well as continuous improvement. Vendor performance evaluation results will be the basis for determining reward and punishment as well as assessing the existence of Vendors in AVL.

10.    PT MRT Jakarta (Perseroda) has the right to terminate vendor status on AVL if:

a.    The vendor acts as a broker or intermediary that does not provide added value.

b.    The vendor resigns in writing by sending a resignation letter from the Vendor list addressed to the Jakarta MRT Procurement Work Unit (Perseroda).

c.    Violating the provisions as stipulated in the procurement environment of PT MRT Jakarta (Perseroda).

d.    Not actively participating in procurement at PT MRT Jakarta (Perseroda).

e.    Performance evaluation is below the standard of PT MRT Jakarta (Perseroda) on a recurring basis or results in loss and disruption of PT MRT Jakarta (Perseroda) operational activities.

f.    There is a change or adjustment to the types of business sectors that are managed in AVL.

11.    Vendors who violate the rules will be given sanctions according to categories, as follows:

A.    Red List (Red List),

Determination of the status of the red list based on the following criteria:

1.    Provide goods or services that do not meet specifications.

2.    Refusing to deliver the goods after being determined as the winner.

3.    Assigning main tasks to other parties without the Company's permission.

4.    Not completing work and not paying fines in accordance with the agreement.

Sanctions for vendors who are on the red list are as follows:

1.    Vendors are not allowed to take part in the procurement process two (2) times.

B.    Black Category (Black List),

The company determines blacklist status for vendors who take actions that can harm the     company's interests. Determination of blacklist status based on the following criteria:

1.    Engage in corruption or conspiracy in determining prices among participants or from Company employees.

2.    Bribing employees of the Company.

3.    Falsification of documents or manipulating data.

4.    Providing fake goods which can be proven through a statement from the competent authority / factory / seller.

5.    Unable to provide goods and services in accordance with the contract and have fatal consequences for the Company's operations.

6.    Being involved in a criminal offense that is declared by the competent authority.

7.    Misuse of documents for any purpose that is not related to participation in the procurement process and or work process, without the Company's permission.

8.    Publish untrue issues that cannot be proven legally and have a negative impact on the Company.

Sanctions against blacklisted vendors are as follows:

1.    The company prohibits vendors on the blacklist from participating in procurement activities at the Company.

2.    The company has the right to announce the blacklist status on the Company's electronic procurement site.