P2K3 SAFETY, HEALTH & ENVIRONMENT

LAWS & REGULATIONS ON SAFETY, HEALTH AND ENVIRONMENT COMMITTEES

POU CHEN CORPORATION

TABLE OF CONTENTS

ACT No. 1 OF 1970 ON SAFETY 1 DECREE OF THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA No. 2 YEAR 1970 ON THE ESTABLISHMENT OF SAFETY AND HEALTH COMMITTEE AT THE WORKPLACE . 9 REGULATION OF THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA No. 3 YEAR 1970 11 REGULATION OF MINISTER OF MANPOWER No. Per. 04/MEN/1987 ON HEALTH AND SAFETY COMMITTEE 13 REGULATION OF THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA No. PER. 02/MEN/ 1992 ON PROCEDURE OF APPOINTMENT, DUTY AND AUTHORITY OF THE HEALTH AND SAFETY EXPERT 18 .. REGULATION OF THE MINISTER OF MANPOWER No. PER. 05/MEN/1996 ON MANAGEMENT SYSTEM OF HEALTH AND SAFETY ENVIRONMENT.. 24 DECISION OF THE MINISTER OF MANPOWER No. KEP. 155/MEN/1984 . 62

ACT No. 1 OF 1970 On SAFETY (State Gazette No. 1 of 1970) WITH THE BLESSING OF GOD ALMIGHTY THE PRESIDENT OF THE REPUBLIC OF INDONESIA Considering :

a. that every worker is entitled to protection of his safety in performing work for his well being an increase in national production and productivity b. that the safety of every other person in the workplace should be ensured c. that every source of production should be used and applied safely and efficiently d. that in this regard it is necessary to make every effort to develop labour protection standards e. that in the development of these standards an act is deemed necessary which contains general provision of safety compatible with social changes, industrialization, changing techniques and technology In view of : 1. Article, 5, 20 and 27 of the 1945 Constitution 2. Articles 9 and 10 of Act No. 14 of 1969 on the Basic Provisions respecting Manpower (State Gezette No. 55 of 1969, Supplementary State Gazette No. 2912) With the approval of the Gotong Royong House of Representatives Resolves : 1. To repeal 2. To enact : Safety Act of 1920 (State Gazette No. 406) : Safety Act

CHAPTER I ON TERMINOLOGY Article 1 In this Act : (1) Workplace means any room or space, closed or open, moving or stationary, where an employed or which is often entered by an employee on behalf of an undertaking, where a source of danger is present as specified in article 2 The term workplace includes any room, space or yard and its surroundings which is a part of or communicates with the workplace

(2) Manager means any person charged with the direct management of a workplace or independent part thereof (3) Employer means : a. any person or corporation carrying on his or its own business and a workplace to that end b. any person or corporation, who or which independently carries on a business owned by another and to that end uses a workplace c. any person or corporation in Indonesia, who or which represents a person or corporation as meant in a. and b. above should the employer reside outside Indonesia (4) Director means the official appointed by the Minister of Manpower to enforce this Act (5) Safety Inspector means a technical officer of the Department of Manpower with special qualifications, appointed by the Minister on Manpower (6) Safety Expert means a person with special qualifications from outside the Department of Manpower, appointed by the Minister of Manpower to supervise the observance of this Act CHAPTER II SCOPE Article 2 (1) This Act regulated safety in all workplaces on land, underground, on the water surface, underwater and in the air within the jurisdiction of the Republic of Indonesia (2) The provisions of (1) above shall apply to workplaces where a. machines, apparatus, tools, equipment or installations are manufactured, constructed, tested, used or applied, which are dangerous or may cause an accident, fire or explosion. b. Materials or goods which are explosive, easily inflammable, corrosive, poisonous, cause infection or have a high temperature, are manufactured, processed, used, applied, marketed, transported or stored c. assembly, repair, maintenance, clearing or demolition of a house or any building or other construction, included waterworks, channels, underground tunnels, etcetera, or preparatory works are being performed d. activities are performed in the fields of agriculture, plantations, forest clearance and exploitation, the processing of timber or other forest products, cattle raising, fisheries and health e. activities are performed in the fields of mining, the processing of gold, silver, other metals or ores, precious, semi-precious and other stones, gas, oil or other minerals, above ground, underground or underwater f. goods, animals or men are transported on land, through tunnels, by water, underwater and in the air g. the loading and unloading of cargoes in or on board ship, proas, quays, docks, stations or warehouses, is performed,
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h. diving, the extraction of products, and other activities are performed underwater i. activities are performed at a height above the surface of land or water j. activities are performed under high or low atmospheric pressure or high or low temperatures k. activities are performed involving danger or being buried, falling bodies or otherwise being struck, falling or stopping into a cavity or excavation, being carried along by or tumbling into water l. activities are performed in tanks, well, cavities or excavations m. temperature variations, humidity, dust, dirt, fire, smoke, vapor, gas draughts, variable weather conditions, rays or radiance, sound or vibration, are present or in circulation n. waste or garbage are deposited or being destroyed o. activities are performed in the field of transmission or receiving by radio, radar, television or telephone p. activities are performed in the field of education, training, experiment, research or making use of technical apparatus in connection therewith q. electricity is generated transformed or distributed, or gas, oil or water are raised, stored or piped r. in performance of a film or play or provision of other recreation, and electrical or mechanical equipment is used (3) Other spaces or yards where in safety or health of persons working, or present, in such spaces or yards could be endangered, may be included as workplaces by legislative regulation modifying the provisions of (2) above

CHAPTER III SAFETY CONDITIONS Article 3 (1) Safety conditions shall be prescribed by legislative regulation to : a. prevent and reduce the possibility of accidents b. prevent and reduce the possibility of and extinguish fires c. prevent and reduce the possibility of danger from explosion d. provide means of escape from fire or other danger e. provide first-aid in case of injury f. ensure that workers are provided with protective equipment g. prevent or control the incidence or spread of temperature variations, humidity, dust, dirt, smoke, vapor, gas, draughts, variable weather conditions, rays or radiance, sound and vibration h. prevent or control the incidence of occupational disease, whether, physical or psychological, poisoning, infection or contagion i. provide adequate and suitable illumination j. provide satisfactory temperature and humidity levels k. provide satisfactory air circulation
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maintain cleanliness, health and good order achieve the unison of work tools, environment, work methods, and processes safeguard and facilitate the transportation of men, animals, plants or goods safeguard and maintain construction of all kinds safeguard and facilitate the loading, unloading, handling and storage of goods prevent shock by electric current adjust and develop safety measures in accordance with the requirements of increasing accident rates (2) The provisions of (1) above may be modified by legislative regulation to conform with future scientific and technological developments and new inventions Article 4 (1) Safety conditions in relation to the planning, production, transportation, circulation, marketing, installation, use, application, maintenance and storage of materials, goods, technical products and means of production, which involve or may cause danger of accident, shall be prescribed by legislative regulation (2) Such safety conditions shall be based upon technical scientific principles and arranged into a collection of orderly, clear and practical provisions having reference to various activities including those concerning construction, processing and manufacturing materials, protective equipment, testing and approbation, packaging or bagging, the furnishing of marks, on materials, goods, technical products and means of production, to ensure the safety of the goods themselves, the workers concerned and the public safety (3) The provisions of (1) and (2) above may be modified by legislative regulation and conform to and fulfill the above safety conditions who shall be prescribed by legislative regulation CHAPTER IV SUPERVISI Article 5 (1) The Director shall carry out the general implementation of this Act while Safety Inspection and Safety Experts have the duty of directly supervising the observance of this Act and assisting in its implementation (2) The Authority and obligations of the Director, Safety Inspectors and Safety Experts, in the implementation of this Act, shall be laid down by legislative regulation Article 6 (1) Any person disagreeing with a decision of the Director may lodge an appeal to an Appeal Committee (2) The procedure for lodging an appeal, the composition and tasks of such Appeal Committee, etcetera, shall be prescribed by the Minister of Manpower
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l. m. n. o. p. q. r.

(3) The decision of such an Appeal Committee shall be final Article 7 The employer shall pay a fee, to be fixed by legislative regulation, for the supervisory services provided for under this Act Article 8 (1) A manager shall be responsible for arranging the examination of workers being engaged or transferred, regarding their health, mental condition and physical ability in relation to the kind of work to be performed (2) A manager shall be responsible for arranging the periodical physical examination of all workers for whom he is responsible, by a physician appointed by the employer and approved by the Director (3) Health examination standards shall be prescribed by legislative regulation

CHAPTER V GUIDANCE Article 9 (1) A manager shall demonstrate and explain to every worker a. the conditions and dangers which may occur in his workplace b. all safety devices and protective equipment which it is obligatory to provide at the workplace c. the personal protective equipment provided for the personnel concerned d. the safety system and conduct in connection with carrying out the work (2) A manager may only employ a person after being satisfied that he has understood the conditions referred to above (3) A manager shall provide his workers with training in accident prevention and fire fighting, the promotion of safety and health and rendering first-aid (4) A manager shall fulfill and obey all the conditions and provisions in force for his business and workplace CHAPTER VI SSFETY AND HEALTH COMMITTEES Article 10 (1) The Minister of Manpower shall have authority to set up Safety and Health Committees to develop co-operation, mutual understanding and effective participation, on the part of the employer or manager and workers in workplaces,
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in fulfillment of their common tasks and obligations in the field of safety and health, for the promotion of production (2) The composition of Safety and Health Committees, their tasks, etcetera, shall be prescribed by the Minister of Manpower

CHAPTER VII ACCIDENTS Article 11 (1) A manager shall report every accident occurring in a workplace for which be is responsible to the official for this purpose by the Minister of Manpower (2) The procedures regarding the reporting of accidents and for their investigation by the official referred to in (1) above shall be prescribed by legislative regulation

CHAPTER VIII OBLIGATIONS AND RIGHTS OF WORKERS Article 12 Legislative regulations shall lay down the obligations and rights of workers to a. provide accurate information upon request by a Safety Inspector or Safety Expert b. use obligatory personal protective equipment c. fulfill and obey obligatory safety and health conditions d. request the manager to carry out all obligatory safety and health conditions e. raise objection to work regarding which, in his opinion, doubts exist concerning obligatory safety, health and personal protective equipment requirements otherwise, within the limits of his responsibility CHAPTER IX OBLIGATIONS WHEN ENTERING A WORKPLACE Article 13 Any person entering a workplace shall obey all the safety instructions and use the personal protective equipment made obligatory under the law

CHAPTER X OBLIGATIONS OF THE MANAGER Article 14 A Manager shall : a. post notices in writing, in places where such notices are easily visible and legible, according to the directions of the Safety Inspector or Safety Expert, concerning all the obligatory conditions of safety and health in the workplace under his management, also a copy of this Act and all the regulations giving effect to its conditions b. exhibit, at the workplace for which he is responsible, the obligatory safety posters and other guidance information in places easily visible or legible, according to the directions of the Safety Inspector or Safety Expert c. provide free of charge to workers under his control and any other person entering the workplace, all the obligatory personal protective equipment together with the necessary instructions for making use thereof, according to the directions of the Safety Inspector or Safety Expert

CHAPTER XI CONCLUDING PROVISIONS Article 15 (1) The administration of the provisions of the aforesaid articles shall be further prescribed for by legislative regulation (2) The legislative regulation as meant in (1) above may prescribe penalties for contravention of its provisions by imprisonment of up to three months or by a fine of up to Rp. 100.000,- (one hundred thousand rupiahs) (3) Such punishable acts shall be minor offences Article 16 An employer making use or workplaces at the time of this Act coming into force shall, within one year there of, comply with the provisions according to or by virtue of this Act

Article 17 Until such time that the legislative regulations for administration of the provisions of this Act are promulgated, the safety regulations in force at the time of this Act coming into effect, shall remain in force provided that they are not in conflict wit this Act

Article 18 This Act shall be called The Safety Act and shall come into force of the its promulgation. In order that everyone may take cognizance of this, the promulgation of this Act is herewith ordered by publication in the State Gazette of the Republic of Indonesia Determined in Jakarta On January 12th 1970 President of the Republic of Indonesia SOEHARTO

Determined in Jakarta On January 12th, 1970 State Secretary of the Republic of Indonesia ALAMSYAH

DECREE OF THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA NO. 2 YEAR 1970 On THE ESTABLISHMENT OF SAFETY AND HEALTH COMMITTEE AT THE WORKPLACE THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA To consider : That, in order to conduct the health and safety counseling at the workplace, it is necessary to establish a forum which shall be adjusted in the companies/projects/agencies/institutions and generally, the applicability in the field sector. : 1. The articles 9 and 10 of Act No. 14, year 1969 on Main Conditions of Manpower (State Document of The Republic of Indonesia, Year 1969 No. 55, Addition of State Document No. 2912); 2. Articles 9 and 10 Act No. 1, year 1970 (State Document of The Republic of Indonesia, year 1970 No. 1); 3. The regulation of Minister of Manpower of The Republic of Indonesia No. 65, year 1969. To Determine : The Regulation of the Establishment of Health and Safety Counseling Committee at the Workplace as follows: Article 1 (1) Minister of Manpower establishes the Health and Safety Counseling Committee in companies/projects/agencies/institutions. (2) The establishment as mentioned in the section (1) shall be conducted by respective Chief of Regional Office of Department of Manpower on behalf of Minister of Manpower.

In view of

(3) After the establishment the Health and Safety Committee, the respective Chief of Regional Office of Department of Manpower immediately submits the report to the Minister of Manpower. (4) Minister of Manpower provides the legalization on the establishment of respective Health and Safety Committee. Article 2 (1) The Health and Safety Counseling Committee shall be the body which is consist of employee, employer and government (tripartite). (2) The Director of Counseling of Work Safety Norms shall determine the guidance on the formation, task, duty directives and such alike, from the Health and Safety Counseling Committee. Article 3 (1) The Chief of Regional Office of Department of Manpower shall act as the executive and coordinator on the guidance of Health and Safety Counseling Committee. (2) The Director of Counseling of Work Safety Norms shall determine the guidance on the arrangement and administration and such alike, from the Health and Safety Counseling Committee at the Regional level and Central level. Article 4 The Chief of Regional Office of Department of Manpower quarterly shall compose the report on the development of The Health and Safety Counseling Committee at its own region to Minister of Manpower c.q. Director of Counseling of Work Safety Norms. Article 5 Other items which are not included yet within this regulation shall be determined by Director of Counseling of Work Safety Norms. Article 6 This regulation shall come into force on the day of its determination. Determined in Jakarta On : 1 July, 1970 THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA

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REGULATION OF THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA NO. : 3 YEAR 1970 On THE ESTABLISHMENT OF PREPARATORY COMMITTEE FOR THE IMPLEMENTATION OF THE ESTABLISHMENT OF HEALTH AND SAFETY COMMITTEE IN COMPANIES THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA To consider : a. That, the establishment of The Health and Safety Counseling Committee in companies shall be adjusted to work programs which have been set up, it is necessary to conduct the well-arranged and directed preparation; b. That, therefore, it is necessary to establish the Preparatory Committee which shall work efficiently. Whereas : a. The articles 9 and 10 of Act No. 14, year 1969 on Main Conditions of Manpower (State Document of the Republic of Indonesia, year 1969 No. 55, Addition of State Document No. 2912); b. The article 10 of Act No. 1, year 1970 (State Document of the Republic of Indonesia, year 1970, No. 1); c. The Regulation of Minister of Manpower of the Republic of Indonesia No. 2, year 1970; d. The Regulation of Minister of Manpower of the Republic of Indonesia No. 65, year 1969. RESOLVES: The mentioned above Preparatory Committee consists of: a. The respective Chief of Regional Office as member also hold as Chief. b. The respective Chief of Inspection of Work Safety at Regional Office as Secretary. c. Three officials from Resort Office in the company region where The Health and Safety Committee shall be established as member. Article 2 The mentioned above Preparatory Committee shall hold the duty of:

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a. To implement the guidance of Work Safety for the managers and labors of the respective company; b. After the guidance ends, immediately to implement the establishment of The Health and Safety Committee in the respective company; c. The respective Chief of Regional Office of Department of Manpower also to implement the section 2 of Article 1 from the Regulation of Minister of Manpower of the Republic of Indonesia No. 1, year 1970; d. After the establishment of mentioned Health and Safety Counseling Committee, the task of Preparatory Committee for the respective company ends; e. The above points from a to d are valid for the respective company where implementing the guidance of Work Safety and the establishment of The Health and Safety Committee. Article 3 The Guidance for the operation of The Counseling of Work Safety at the first body for the officers in Regional and Resort of Department of Manpower offices shall be performed by the officials of Directorate of Counseling of Work Safety Norms. Article 4 The Counseling of Work Safety for the managers and labors in companies shall be performed by the officials of Regional and Resort offices as mentioned in article 2. Article 5 The implementation of The Counseling of Work Safety in companies shall be applied pursuant to the Regulation of Minister of Manpower No. 65, Year 1969. Article 6 All expenses to the implementation of conditions in this Minister Regulation shall be borne by Routine Budget of Directorate of Counseling of Work Safety Norms. Article 7 This regulation shall come into force on the day of its determination. Determined in Jakarta On : August 1, 1970 MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA

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THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA THE REGULATION OF MINISTER OF MANPOWER NUMBER : PER-04/MEN/1987 ON THE HEALTH AND SAFETY COMMITTEE AND THE DIRECTIVES OF THE APPOINTMENT FOR THE WORK SAFETY EXPERT THE MINISTER OF MANPOWER To consider : a. That, in order to prevent the health and safety threat of the worker in the framework of efficiency enhancement and work productivity, it is necessary for the implementation of company hygiene health and safety in companies; b. That, in regarding to the above mentioned item, the company requires to have The Health and Safety Committee in order to assist the company leaders in implementing the company hygiene health and safety. c. That, for above mentioned purpose, it is necessary to pass the Regulation of Minister of Manpower on The Health and Safety Committee. Whereas: 1. Act No. 14, year 1969 on Main Conditions of Manpower; 2. Act No. 1, year 1970 on Work Safety; 3. The Regulation of Minister of Manpower, Transmigration and Cooperation No. PER-03/MEN/978 on The Conditions of the Appointment and Authorization and Duty of Health and Safety Supervisor and Work Safety Expert employee. 4. The Regulation of Minister of Manpower No. PER-03/MEN/1984 on Integrated Manpowership Supervisor. RESOLVES To Determine: THE REGULATION OF MINISTER OF MANPOWER ON THE HEALTH AND SAFETY COUNSELING COMMITTEE AND APPOINTMENT DIRECTIVE FOR THE WORK SAFETY EXPERT. Article 1 In this Minister Regulation, what is meant with: a. Work place is each rooms or open of closed outdoor, movable or fixed in where the worker work or often entered by the worker because of a business need and there appears danger source or sources;
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b. Management is person who has duty to lead a workplace directly or a part on its own; c. The Work Safety Expert is a technical force who specializes in a field and is an outside party of Department of Manpower who is appointed by the Minister of Manpower and holds function to assist the company leader or its management to implement and enhance the work safety effort, company hygiene and health at work, to assist the supervision of obedience of Act-related conditions in the field of health and work safety: d. The Health and Safety Committee which further termed as P2K2 is assisting body at the work place which is a cooperation forum between the employer and employee in order to develop cooperation which is based on mutual understanding and effective participation in implementing of health and work safety. Article 2 (1) Every workplaces with its own criteria, the employer and management have duty to establish HSE Committee. (2) The mentioned workplace in section (1) is: a. Workplace where the employer and management employ 100 people or more; b. Workplace where the employer and management employ less than 100 people nevertheless using materials, processes and installation which having great risks to explode, fire, poisoning and radioactive radiation. Article 3 (1) The membership of HSE Committee consist of employer and employee elements and its composition comprises Chief, Secretary and Member. (2) The HSE Committee secretary is Work Safety Expert from the respective company. (3) HSE Committee is decided by the Minister or by appointed officials based on the suggestion from respective employer or management. Article 4 (1) HSE Committee has duty to raise opinion and consideration whether asked or not to the employer or management about the Health and Work Safety matter. (2) In order to undertake the duty as mentioned in section (1), HSE Committee hold functions: a. To collect and process data on Health and Work Safety in the workplace. b. To assist in showing and explaining to each and every worker: 1) Hazardous factors in workplaces that appears to be possible obstacle of health and work safety including fire danger and blasts and how to prevent it. 2) Factors that affect work efficiency and productivity:

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3) Self-protector equipment for the respective worker 4) Appropriate, safe method and attitude to perform jobs. c. To assist employer and employee as the following: 1) To evaluate work method, process and work environment: 2) To determine correction action and best alternatives. 3) To develop danger situation control system regarding to health and work safety: 4) To evaluate the cause factors of accident, disease caused by work activity as well as taking necessary steps:, 5) To develop counseling and research in the field of work safety, companys hygiene, health in workplace and ergonomics. 6) To hold observation regarding on nutrition at work and dish management in company. 7) To check the completeness of work safety tools: 8) To develop health service for worker: 9) To develop health laboratory and work safety in order to hold a laboratory investigation and conduct the interpretation of the investigation result, 10) To implement work safety administration on company hygiene and work safety. d. To assist company leader in order to compose management policy and work guidance in the framework to enhance work safety of company hygiene, work safety, ergonomic and nutrition of worker. Article 5 (1) Every employer or employee that shall appoint Work Safety Expert shall be obligated to raise written proposal to the Minister. (2) The proposal of Work Safety Expert appointment as mentioned in section (1) shall be with seal, together with following enclosures: a. Curriculum Vitae of Work Safety candidate; b. Certificate of Work Experience; c. Certificate of Health from physician; d. Certificate of declaration of full employment in the respective company; e. Copy of last diploma f. Certificate of special education held by Department of Manpower or Educational institution which is recognized by Department of Manpower.

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Article 6 The proposal as mentioned in article 5 shall be submitted to the Minister with the copies addressed to: a. Respective Department of Manpower Office; b. Regional Department of Manpower Office where the respective company run its business. Article 7 To appoint the Work Safety Expert, the Minister shall establish an Assessment Team which is functionally headed by Director General Manpower ship Relation and Work Norms Supervisory and its members consist of the officials of Department of Manpower and Institution or Agency or Body, which is outside of Department of Manpower if necessary. Article 8 The Assessment Team as mentioned in article 7 hold function: a. To check the requirements completeness of being Work Safety Expert which is submitted by the employer of management. b. To conduct technical ability examination on work safety field , company hygiene, health at workplace and ergonomic; c. To submit to the Minister 1) To be issued the appointment decision as Work Safety Expert when the candidate of Work Safety Expert has fulfill the requirement of Assessment Team; 2) To be issued the refusal decision for employer or management proposal when the candidate of Work Safety Expert has not qualification to fulfill the requirement by the Assessment Team. Article 9 For the employer or management whose proposal is refused as mentioned in article 8 point c section 2, shall resubmit the proposal of the appointment of Work Safety Expert according to the procedures as mentioned in article 5. Article 10 The decision on the appointment of Work Safety Expert can be withdrawn when: a. Not fulfill the regulation of Work Safety Act: b. Remove to other company: c. Do a mistake or impropriety so that causing an accident. d. Resign; e. Death
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Article 11 (1) The decision of Work Safety appointment as mentioned in article 8 point c section 1 shall be valid for 3 years period. (2) After the length of time as mentioned in section (1) ends), it can be asked to extension to the Minister. (3) The proposal of the extension as mentioned in section (2) shall be submitted pursuant to article 6 procedures and be attached with: a. Copy of the appointment decision of the Work Safety Expert. b. Certificate of Declaration of the management that state that the Work Safety Expert has good score of achievement. Article 12 At least once in 3 months, the management is obliged to submit report on P2HSE activity to the Minister through respective Department of Manpower Office. Article 13 (1) The Work Safety Expert which has been appointed before this Minister Regulation is valid shall remain be valid at least 1 (one) year since this Minister Regulation supersedes it. (2) The appointment of Work Safety Expert as mentioned in article (1) can be extended by procedures as mentioned in article 11 section (2) and (13). Article 14 The employer or management who cannot fulfill the requirement in article 2 can be punished in jail maximum 3 (three) months or maximum fine Rp. 100,000 (one hundred thousand) pursuant to article 13 section (2) and (3) of Act No. 1, year 1970 on Work Safety. Article 15 Work Safety Supervisory Officials as mentioned in Act No. 1, year 1970 shall conduct the supervisory of the obedience of this Minister Regulation implementation. Article 16 This regulation shall come into force on the day of its determination. Determined in Jakarta ON : 23 JULY, 23 1987 signed S UD O M O THE MINISTER OF MANPOWER

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REGULATION OF THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA NO. PER.02/MEN.1992 ON PROCEDURES OF APPOINTMENT, DUTY AND AUTHORITY OF THE HEALTH AND SAFETY ENVIRONMENT EXPERT THE MINISTER OF THE REPUBLIC OF INDONESIA To consider : a. That as the implementation of the conditions in article 1, section (6) and article 5 section (2) of Act No. 1, Year 1970 on Work Safety, it is necessary to decide the appointment Procedures, duty and authority of Health and Safety Environment Expert. b. That the appointment procedures, duty and authority of Health and Safety Environment Expert as arranged in the Regulation of Minister of Manpower, Transmigration and Cooperation, NO. PER-03/MEN/1987 and the Regulation of Minister of Manpower No. PER-04/MEN/1987 is no longer suitable to the actual need, therefore it has to be upgraded. c. That, for that reason, it is deemed to be decided by the Regulation of Minister. Whereas: 1. Steam Act Year 1930 (State document 1930 No. 225); 2. Act No. 14 Year 1960 on Main Conditions of Manpower; 3. Act No. 1, Year 1970 on Work Safety; 4. Steam Regulation Year 1930 (State document 1930 No. 339); 5. Decree of the President of the Republic of Indonesia No. 15 year 1984 (juncto) Presidential Decree No. 30 year 1987 on the Formation of Departmental Organization; 6. Decree of the President of the Republic of Indonesia No. 64/M year 1988 on the formation of Development Cabinet V; 7. Regulation of Minister of Manpower No. PER-04/MEN/1987 on the Health and Safety Committee and procedures of Appointment of Health and Safety Environment Expert.

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RESOLVES To Determine : THE REGULATION OF MINISTER OF MANPOWER ON PROCEDURES OF APPOINTMENT, DUTY AND AUTHORITY OF HEALTH AND SAFETY ENVIROMENT EXPERT. CHAPTER 1 GENERAL PROVISION Article 1 In this regulation what is meant with: a. Health and Safety Environment Expert is a technical worker who has special skill from the outside party of Department of Manpower, appointed by Minister of Manpower to supervise the obedience of Work Safety Act. b. Management is individual who has duty to lead directly a workplace or its part which is independent. c. Workplace is every room or field, outdoor or indoor, movable or fixed where the worker conduct his/her jobs or often entered by the worker for official business, and where there are danger source or sources. d. Director is Director as mentioned in Act No. 1, year 1970 on Work Safety. Article 2 (1) Minister of Manpower or Official who are appointed has authority to appoint the Health and Safety Environment Expert in the workplace with special criteria and in company who provides services in the field of health and safety environment. (2) The special criteria as mentioned in section (1) is: a. A workplace where the management employs manpower more than 100 people; b. A workplace where the management employs manpower more than 100 people by using material, process, tools and installation which contain risk of danger to the workers health and safety. CHAPTER II PROCEDURES OF APPOINTMENT OF HEALTH AND SAFETY ENVIRONMENT Article 3 In order to be appointed as the Health and Safety Environment Expert, the candidate should fulfill the following requirements:

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a. Have S-1 (Bachelor) Degree, Diploma degree (3 years) or equals with the following conditions: 1. S-1 (Bachelor) with work experience relevant to its expertise at least 2 years. 2. Diploma degree (3 years) with work experience relevant to its expertise at least 4 years; b. Good physical condition; c. Good conduct; d. Work full time in his company; Article 4 (1).The appointment of Health and Safety Expert is decided upon the written proposal from the management or head of institution to Minister of Manpower or appointed officials. (3) The proposal as mentioned in section (1) should attach: a. Curriculum vitae; b. Certificate of Work Experience in the field of health and safety environment; c. Certificate of good physical condition of physician; d. Certificate of psychology investigation which declares appropriateness to conduct health and safety environment expert tasks; e. Certificate of good conduct from police; f. Certificate of full time employment from the respective company/institution; g. Copy of diploma; h. Certificate of special education on health and safety environment, if he/she has it. Article 5 (1). The appointment of health and safety environment expert shall be given after considering the Assessment Team opinion. (2). The Assessment Team as mentioned in section (1) is appointed by Minister of Manpower, and headed by Director General which specializes in the field of health and safety environment and its members consist of Department of Manpower Officials, Institution and other agencies if necessary. Article 6 (1) The Assessment Team as mentioned in article 5 has duty to conduct assessment on administration requirements and technical know-how of health and safety environment.

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(2) The ability of technical know-how as mentioned in this section (1) is the ability to identify, evaluate and controlling health and safety environment matters in workplace according to his/her job description. Article 7 (1) The decision of the appointment of health and safety environment expert as mentioned in article 4 section (1) is valid for 3 (three) years period. (2) The appointment decision as mentioned in section (1) can be asked for extension to Minister of Manpower or appointed officials. (3) The proposal of the extension as mentioned in section (2) shall be submitted pursuant to procedures in article 4, section (1) with following enclosures: a. All of the enclosures as mentioned in article 4, section (2); b. Copy of decision on appointment of previous health and safety expert; c. Certification of statement from the management or institution head on the achievement of the respective health and safety environment expert; d. Summary of activity report during performing the jobs. (4) In decision of the extension appointment as mentioned in section (2), the Assessment Team can reexamine the ability of technical know-how of the health and safety environment expert. Article 8 (1) The decision of health and safety environment expert is not valid when he/she: a. Removes to other company or institution; b. Resigns c. Be death; (2) The decision of the appointment of the health and safety environment expert can be removed when he/she has proven: a. not fulfill the requirements of the Act on Health and Safety Environment; b. doing mistakes or impropriety so that causing hazardous condition; c. with intention and or his/her mistakes to cause revealing a company/institution secret that because of his/her position requiring the unrevealed policy.

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CHAPTER III DUTY AND AUTHORITY OF HEALTH AND SAFETY ENVIRONMENT EXPERT Chapter 9 (1) The health and safety expert has the following duty: a. To help the supervisory of the implementation of regulation of Act on Health and Safety Environment appropriate to specialized field in its appointment of decision. b. To submit the report to Minister of Manpower or appointed Officials on the result of task implementation with the following conditions: 1. For health and safety environment expert at the workplace once in 3 (three) months, unless decided differently; 2. For the health and safety environment expert in company that specializes in the field of health and safety environment services, every time when the company has performed its activity; c. To unrevealed all of information about company/institution secret which has relation with his/her position. (2) Carbon copies as mentioned in section (1) point b shall be addressed to: 1. Respective Department of Manpower Office. 2. Respective Regional Department of Manpower Office. 3. Director of Health and Safety Environment Norms Supervisory Body. Article 10 (1). The Health and Safety Environment Expert has authority to : a. To enter workplace according to the appointment decision; b. To ask for information and or data on the implementation of health and safety environment requirements at the workplace with the decision of appointment; c. To monitor, check, examine, analyze, evaluate and provide the requirements as well as health and safety environment counseling which comprises: 1. Situation and Facility of Worker, 2. Machinery Condition, Tools and Equipment, Institution Work Tools and Others, 3. Materials Handling, 4. Production Process 5. Nature of Work 6. Work Method

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7. Work Environment (2). The details as mentioned in section (1), point c subject to change according to the science and technology advancement. (3). The health and safety environment expert who is appointed upon Steam Act, year 1930 and health and safety environment expert who works for company specializing in health and safety environment services, in providing the conditions as mentioned in section (1) point c, shall ask for Minister approval or appointed Officials. CHAPTER IV TRANSITION PROVISION Article 11 (1) The health and safety expert who has been appointed before this regulation valid, remain to be valid until the end of his/her appointment of service period in his/her appointment decision. (2) After the end of his/her appointment of service period as mentioned in section (1), can be asked for extension pursuant to procedures as mentioned in article 7 section (2), section (3) and section (4). CHAPTER V CLOSING PROVISION Article 12 The Manpower ship Supervisory Officials shall conduct the supervisory of the obedience of this Minister Regulation. Article 13 With the issuance of this Minister Regulation, then the Regulation of Minister of Manpower, Transmigration and Cooperation No. PER.03/MEN/1978 and Regulation of Minister of Manpower No. PER-04/MEN/1987, article 1, point a, b, and c, 5, 6, 7, 8, 9, 10, 11 and 13, which specialize to rule the health and safety environment expert are no longer valid. Article 14 This regulation shall come into force on the day of its determination. Determined in Jakarta ON : 30-1-1992 THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA Signed DRS. COSMOS BATUBARA
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REGULATION OF THE MINISTER OF MANPOWER NO: PER-05/MEN/1996. ON MANGEMENT SYSTEM OF HEALTH AND SAFETY ENVIRONMENT MINISTER OF MANPOWER To consider : a. That the incidence of accident in the workplace mostly caused by human factors and in part by technical factors; b. That in order to assure the health and safety of the worker or other people who involved in the workplace, and production source, production process as well as work environment in secure condition, then it is necessary to implement the Management System of Health and Safety Environment. c. That the implementation of Management System of Health and Safety Environment can be used to anticipate technical obstacles in the era of commerce globalization; d. That the Management System of Health and Safety Environment needs to decide by Minister Regulation.

In View Of : 1. Article 27 section (2) of The Constitution 1945 2. Act No. 14 year 1969 on, Main Conditions of Manpower (State Document of the Republic of Indonesia, year 1969, No. 55, Addition of State Document No. 2912); 3. Act No. 1 Year 1970 on Work Safety (State Document of the Republic of Indonesia No. 1, Addition of State Document No. 1918). RESOLVES: To determine : THE REGULATION OF MINISTER ON MANAGEMENT SYSTEM OF HEALTH AND SAFETY ENVIRONMENT.

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CHAPTER 1 GENERAL PROVISIONS Article 1 In this Regulation of the Minister what is meant with: 1. Management System of Health and Safety Environment which is further termed as Management System of HSE is a part of whole management system which comprises the organizational structure, planning, responsibility, procedure implementation, process and necessary resources for development, application, achievement, study and maintenance of Health and Safety Environment policy in order to control risk which is related with work activity to create safe, efficient and productive work environment. 2. Workplace is every room or field, outdoor or indoor, movable or fixed, where the worker works, or often entered by the worker for official business and where the hazardous source and sources in land, soil, water surface, in the water or on the air that take place in the legal authority of the Republic of Indonesia. 3. Audit is systematic and independent investigation, to determine that an activity and its results related, appropriate with the planned arrangement, and implemented effectively and appropriate effectively and appropriate to achieve companys aim. 4. Company is any form of business that employs workers in order to gain profit or not, private-owned or state-owned; 5. Director is an official as mentioned in Act No. 1, year 1970; 6. Manpower Supervisory Official is technical employee who has special skill from Department of Manpower, appointed by the Minister; 7. Employer is: a. Individual or legal body who run a self-owned business and for that purpose, utilizes workplace; b. Individual or legal body who independently run a business that is not belong to him/her and for that purpose, utilizes workplace. c. Individual or legal body that in Indonesia, represents mentioned individual or legal body, in point a and b, if the represented located not in Indonesia. 8. Management is individual who has duty to lead directly its workplace or independent field; 9. Worker is every individual who is able to perform jobs in connection or not in connection with work relation in order to produce service or goods to fulfill peoples need;

10. Audit Report is audit result which done by Audit Body and contains finding fact when audit implementation takes place as the basis to publish certificate of performance Management System of HSE achievement;

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11. Certificate is recognition evidence for fulfillment level of act regulation implementation on Management System of HSE. 12. Minister is the Minister who is responsible for the field of manpower ship. CHAPTER II AIM AND PURPOSE MANAGEMENT SYSTEM OF HEALTH AND SAFETY ENVIRONMENT Article 2 Aim and purpose of Management System of HSE is to create the health and safety environment system at the workplace by involving management element of worker, condition and work environment which is integrated, in order to prevent and lessen the accident prevalence and disease as the result of working as well as the creation of safe, efficient and productive workplace. CHAPTER III IMPLEMENTATION OF MANAGEMENT SYSTEM OF HEALTH AND SAFETY ENVIRONMENT Article 3 (1) Every company that employs worker at least one hundred people more and or contains hazardous risk created by the characteristic of process or production material that can cause work accident such as explosion, fire, pollution and diseases caused by working, has obligation to implement the Management System of HSE. (2) Management System of HSE as mentioned in section (1) is obliged to be implemented by the management, employer and whole worker as one entity. Article 4 (1) In the implementation of Management System of HSE as mentioned in article 3, the Company is obliged to implement the following conditions: a. To determine health and safety environment policy and assure commitment to the implementation of Management System of HSE. b. To plan policy, aim and purpose fulfillment of health and safety environment, c. To apply the effective health and safety environment through developing of ability and supporting mechanism which is necessary to achieve policy, aim and purpose of health and safety environment; d. To measure, monitor and evaluate the health and safety environment performance as well as to conduct improvement and prevention;

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e. To review periodically and improve the implementation of Management System of HSE continuously with the purpose to enhance the health and safety environment performance. (2). The guidance of implementation of Management System as mentioned in section (1) and as mentioned in enclosure 1 or this Minister Regulation. CHAPTER IV AUDIT OF MANAGEMENT SYSTEM OF HEALTH AND ENVIRONMENT SAFETY Article 5 (1) To prove the implementation of Management System of HSE as mentioned in article 4, the company can perform an audit by audit body which is appointed by the Minister. (2) Audit of Management System of HSE as mentioned in article (1) comprises the following elements: a. Development and commitment maintenance; b. Documenting strategy; c. Design and contract review; d. Document control; e. Purchasing; f. Work safety based on HSE; g. Supervisory standard; h. Report and improvement; i. Material management and removal; j. Data finding and utilization; k. Management system inspection; l. Skill and ability development; (3) The change or addendum is adjusted to latest development as mentioned in article (2) is arranged by the Minister. (4) Technical guidance of management system of HSE as mentioned in article (2), as attached in the enclosure II of this Minister Regulation.

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CHAPTER V DIRECTOR AUTHORITY Article 6 The director has authority to determine the company who is obliged to be audited which is based on risk of danger level of consideration. CHAPTER VI MECHANISM OF AUDIT IMPLEMENTATION Article 7 (1) The audit of management system of HSE shall be conducted at least once in three years. (2) In order to conducting the audit, the Auditory Body shall: a. Make yearly audit planning; b. Submit the yearly audit planning to the Minister or appointed Official, the management of the workplace that shall be audited and Regional Office of Department of Manpower. c. Make coordination with Regional Office of Department of Manpower. (3) The management of the workplace that shall be audited is obliged to provide necessary documents for the implementation of audit of management system of HSE. Article 8 (1) The Auditory Body is obliged to submit complete audit report to the Director with carbon copy shall be submitted to the management of the workplace that shall be audited. (2) The complete audit report as mentioned in section (1) shall use the form as attached in enclosure III of this Minister Regulation. (3) After receiving the audit report of Management System of HSE as mentioned in section (2), the Director shall conduct evaluation and research. (4) Based on evaluation and assessment result as mentioned in section (3), the Director shall conduct the following action: a. Giving certificate and flag of award according to the level of achievement or b. Instructing the Supervisory Official to take action when, based on the audit result, it is found that there is violation on the Act of Regulation.

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CHAPTER VII CERTIFICATE OF HEALTH AND SAFETY ENVIRONMENT Article 9 (1) The certificate as mentioned in article 8 section (4), point a, shall be signed by the Minister and shall come into force in 3 (three) years period. (2) The type of certificate and flag of award as mentioned in section (1) as attached in enclosure IV of this Minister Regulation. CHAPTER VIII GUIDANCE AND SUPERVISION Article 10 The guidance and supervision to the implementation of Management System of HSE shall be conducted by the Minister of appointed official. CHAPTER IX FINANCING Article 11 The audit of management system of HSE cost shall be borne by the company which is audited. CHAPTER X CLOSING PROVISION Article 12 This Minister Regulation shall come into force on the day of its determination. Determined in Jakarta On 12 December 1996 The Minister of Manpower of the Republic of Indonesia Signed Drs. ABDUL LATIEF
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ENCLOSURE I Number Date

: REGULATION OF THE MINISTER OF MANPOWER : PER/05/MEN/1996 : 12 December 1996

GUIDE FOR THE IMPLEMENTATION OF MANAGEMENT SYSTEM OF HEALTH AND SAFETY ENVIRONMENT I. COMMITMENT AND POLICY The management is obliged to show leadership and commitment to the Health and Safety Environment by providing sufficient resources. The employer and management of company is obliged to show commitment to the Health and Safety Environment which is manifested in: a. Placing health and safety scheme such position that plays vital role in company decision. b. Providing budget, and qualified worker or other facility which is necessary in the field of health and safety environment. c. Determining personnel which has clear responsibility, authority and duty in management of health and safety environment. d. Planning a coordinated health and safety environment. e. Performing performance assessment and the follow-ups of the implementation of health and safety environment. The commitment and policy as in point a to e shall be conducted of review periodically. Every level of leader in the company is obliged to show commitment to health and safety environment so that the implementation of Management System of HSE shall be successfully applied and developed. Every worker and person which is in workplace is obliged to participate in maintaining and controlling the implementation of health and safety environment. 1.2 Initial Review of Health and Safety Environment The initial review of health and safety environment condition in current times, shall be conducted by : a. Identifying actual condition in compare with the conditions in this guide. b. Identifying hazardous sources relating to the company activity. c. Assessing the level of knowledge, fulfillment of act of regulation and standard of health and safety environment. d. Comparing the implementation of health and safety environment with other company or sector which perform better.
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1.1. Leadership and Commitment

e. Reviewing cause and effect factor because of hazardous incident, compensation and obstacle as well as previously result of assessment in relating with the health and safety environment. f. Assessing the efficiency and effectively of available resources. From this initial review of health and safety environment, it is becoming an input to the planning and development of Management System of HSE. 1.3 The Health and Safety Environment Policy The policy of health and safety environments a written statement which is signed by the employer and management which, contains all of vision and aim and purpose, as well as commitment and determination to implement health and safety environment, and also framework and working program that comprise whole company activity in either in general and operational term. The policy of health and safety environment shall be made through consultation process between the management and worker representative that is obliged to be explained and distributed to all of the workers, vendors and users. The policy of health and safety environment is dynamic in nature and always be reviewed in order to enhance the performance of health and safety environment. 2. PLANNING The company is obliged to make effective planning in order to achieve the success in the implementation of Management System of HSE with obvious and measured objectives. The planning shall contain target, objective and performance indicators that are planned to be implemented by considering hazardous sources identification, assessment and controlling risks in accordance with applicable act of conditions as well as result of implementation of initial review to health and safety environment. 2.1. The Planning of Risk Identification, Assessment and Risk Control. Hazardous identification and risk control shall begin with activity, goods and service production shall be considered when formulating the plan to fulfill the policy of health and safety environment. Therefore, it necessary to determine and maintain its procedures. 2.2. Regulation of Act and Other Conditions The company is obliged to determine and maintain its procedures to identification inventory and comprehension about regulation of act and other conditions which is relating with health and safety environment in accordance with respective company activity. The management is obliged to explain the regulation of act and other conditions to every worker.

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2.3. Aim and Purpose Aim and Purpose of the health and safety environment policy which is determined by the company, at least, shall require to fulfill the following qualification: a. b. c. d. Able to be measured. Unit/ Indicator of Measurement. Target of Objective. Term of the Achievement.

The determination of aim and purpose of the health and safety environment policy shall be consulted with worker representative, HSE expert, HSE Committee and other related parties. The aim and purpose which has been set up shall be reviewed periodically adjusted to latest development. 2.4 Performance Indicator In determining the aim and purpose of health and safety environment policy, the company shall utilize performance indicator that is able to be measured as the benchmark of health and safety environment assessment and information on the success of Management System of HSE achievement as well. 2.5 Initial Review and Activity Planning of Ongoing-Process The successful initial implementation of Management System of HSE needs a plan that can be developed in sustainable scheme, and obviously determine the aim and purpose of Management System of HSE that can be achieved through: a. b. Determining responsibility system in achieving the aim and purpose in accordance with the function and the company management level. Determining facility and term of achieving the aim and purpose.

3. IMPLEMENTATION In achieving the health and safety environment, the company is obliged to appoint qualified personnel who suits to the will-be applied system. 3.1. Assurance of Ability 3.1.1 Human Resources, Facility and Fund The company is obliged to provide qualified personnel, and sufficient facility and fund in accordance with will-be applied Management System of HSE. In allocating the resources, the company is obliged to make procedures able to monitor the obtained benefit or expenses. In implementing the effective Management System of HSE, it is necessary to consider the following items:

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a. Allocating the sufficient resources in accordance with the necessary measurement. b. Performing identification of work competency in every level of company management and implementing every need. c. Making conditions to communicate information on effective health and safety environment. d. Making regulation to raise suggestion from the expert. e. Making regulation for the implementation of consultancy and active involvement of worker. 3.1.2 Integration The company shall integrate Management System of HSE into the existing management system of the company. In the term of this integration, there is Confrontation with aim and priority of the company, which is then: a. The aim and priority of Management System of HSE shall be prioritized. b. The statement of Management System of HSE with the companys management system shall be performed in balance and harmonious way. 3.1.3 Responsibility and Sue Responsibility The improvement of health and safety environment shall be effective when all of the parties in the company are encouraged to take part in implementing and developing of Management System of HSE, as well as having supporting company culture and sharing contribution for the Management System of HSE. The company is obliged to: a. Determine, appoint, document and communicate responsibility and sure responsibility of health and safety environment and authority to act and explain the distribution relation for all level of management, worker, contractor and subcontractor as well as the visitor. b. Having procedures to monitor and communicate every changing of responsibility and sue responsibility that affect to health and safety environment system and program. c. Be able to giving swift and accurate response to the deviated condition or other incidents. The management responsibilities to health and safety environment are : a. The appointed leader to be responsible is obliged to make sure that the Management System of HSE has been applied and the result is in accordance with expectation by every location and type of activity in company.
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b. The management is obliged to recognize the worker ability as valuable resources that can be appointed to accept authority for delegation and responsibility to implement and develop Management System of HSE. 3.1.4 Consultancy, Motivation and Awareness The management is obliged to show its commitment regarding to health and safety environment through consultancy and involving worker or other parties which are involved in the implementation, development and maintenance of Management System of HSE, so that all parties have sense of belonging and benefit the result. The worker is obliged to comprehend as well as support the aim and purpose of Management System of HSE, and it is necessary to be founded on the basis of physical danger, chemical, ergonomic, radiation, biology and psychology that is possible to injure and hurt the worker when working and to comprehend the hazardous sources so that able to recognize and prevent action leading to incident. 3.1.5 Training and Work Competency The implementation and development of effective Management System of HSE shall be determined by working competency and training from every worker in the company. The training is an important tool in assuring necessary work competency in order to achieve the aim of health and safety environment. The procedures to identify work competency standard and its implementation are through training program which is obliged to be available. The standard of work competency for health and safety environment shall be developed by : a. Using available standard of work competency. b. Checking job description and position. c. Analyzing work assignment. d. Analyzing inspection and audit result. e. Reviewing incident report. After the ability assessment on work competency which is necessary has been done, the training program shall be developed in accordance with the assessment result. The procedures of documenting the training that has been performed and effectively evaluation need to be set up. The work competency shall be integrated in to series of activity of the company from the hiring, selection of performance assessment of the worker to the training.

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3.2 Supporting Activity 3.2.1 Communication The effective two-way communication and routine report are main sources in the implementation of Management System of HSE. The appropriate information availability for the worker and all of related parties could be used in order to motivate and encourage the acceptation as well as general comprehension that the company able to improve health and safety environment performance. The company is obliged to have procedures that assures that the updated information on health and safety environment is communicated to all of parties in the company. The provisions in the procedures shall assure the fulfillment of: a. Communicating result of management system, monitoring, audit and management review to all parties in the company which are responsible and having participation in companys work performance. b. Identifying and receiving information on related health and safety environment from the outside of company. c. Assuring that the related information is distributed to other people from outside the company that need it. 3.2.2 Reporting The procedures of information reporting which is related and in-time shall be deter mind to insure that the Management System of HSE observable and the performance shall be improved. The procedures of internal reporting need to be determined in order to handle a. Incident Report b. Mismatch Report c. Health and Safety Environment Performance Report d. Identification Report on Hazardous Sources. The procedures of external reporting need to be determined in order to handle: a. Report that required by the regulation of act. b. Report to the stockholders. 3.2.3 Documentation The documentation is a main element in every management system and need to be made according to the company need.

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Process and procedure of company activity need to be determined and documented and also updated when necessary. The company should be clear to select the document and effective control of it. The documentation of Management System of HSE supports the worker awareness in order to achieve health and safety environment goal and evaluation to work health system and performance. Mass and quality of the documentation determined by companys complexity activity. When the element of Management System of HSE is integrated with management system of company as unity, then the documentation of Management System of HSE need to be integrated in the whole existing documentation. The company needs to arrange and maintain the collection of documentation summary in order to: a. Compose policy, goal and objective of health and safety environment systematically. b. Describe facility, goal and objective achieving of health and safety environment. c. Document role, responsibility, and procedures. d. Give directives on related document and describe other elements from management system of company. e. Show that the elements of appropriate Management System of HSE for the company has been implemented. 3.2.4 Document Control The company shall insure that: a. Document can be identified according to the job description and responsibility in the company. b. Document is reviewed periodically and, if necessary, can be revised. c. Document before publishing need first to be approved by authorized personnel. d. The new version of document needs to be available at the workplace if necessary. e. All of old documents need to be removed. f. Document can easily found, useful and understandable. 3.2.5 Recording and Information Management The recording is a tool for company to show the appropriateness of the implementation of Management System of HSE and needs to comprise: a. External requirement/ regulation of act and internal/indicator of health and safety environment performance. b. Work permit.
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c. Risk and hazardous sources which comprise machinery condition, tools and equipments, work tools, and others, materials and so on, work environment, nature of work, work procedure and production process. d. The activity of health and safety environment training. e. Inspection activity, calibration and maintenance. f. Data monitoring. g. Details of incident, complaints and follow-ups. h. Product identification including its composition. i. Information on the vendor and contractor. j. Audit and Management System of HSE review. 3.3 Identification of Hazardous Sources, Assessment and Risk Control The hazardous sources which are identified need to be assessed to determine the risk level that can be a benchmark for possible accident and disease caused by work activity. Further, the control is done to. 3.3.1 Hazardous Sources Identification Identification of hazardous sources is done by considering a. Condition and event that cause risk potential. b. Type of accident and disease caused by work activity which possible to happen. 3.3.2 Risk Control Risk Control is a process to determine control priority to the level of accident risk or disease caused by work activity. 3.3.3 Control Action The company needs to plan management and control of activities, goods and service products that are potential to cause high level of accident risk. This can be achieved by documenting and implementing standard of policy at the workplaces, plants design and procedure materials and work instruction to arrange and control the activity of goods and services. The risk of accident and disease caused by work activity is done through following methods: a. b. c. Technical/Engineered control that comprise elimination, substitution, isolation, ventilation, hygiene and sanitary. Education and training. Awareness building and motivation that comprise bonus, incentive, award and self-motivation system.
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d. e.

Evaluation through internal audit, incident and etiology investigation. Law enforcement.

3.3.4 Design and Engineering Risk control on accident and disease caused by working activity in its engineering phase needs to start since the design and planning phase. Every phase of design cycle comprises development, review verification, validation and adjustment which are related to hazardous sources identification, assessment procedures and risk control of accident and disease caused by working activity. Personnel who has competency should be determined and given obvious authority and responsibility to verify the management system of HSE verification. 3.3.5 Administrative Control Procedures and work instruction which are documented when it is being made need to consider health and safety environment aspects in every phases. The design and procedure review only made by personnel who has work competency by involving the executive. Personnel needs to be trained so that having competency in using the procedures. The procedures need to be reviewed periodically mainly when tool change, and used process or raw material happen. 3.3.6 Contract Review The availability of goods and services through contract should be reviewed to insure separation ability in fulfilling the requirements of health and safety environment which is determined. 3.3.7 Purchasing The purchasing system for goods and services including the procedures of goods and services maintenance needs to be integrated in handling strategy of risk prevention and diseases caused by working activity. The purchasing system needs to assure that the goods and services product as well as companys partner fulfills the requirement of health and safety environment. When the goods and services received at the workplace, the company needs to explain to all parties that shall use the goods and services on identification, assessment and control of accident risk as well as disease caused by working activity.

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3.3.8 Procedures to Handle Emergency or Disaster Condition The company needs to have procedures to handle emergency situation or disaster, which are examined periodically to recognize its ability when the true incident happens. The procedures examination which is conducted periodically is done by personnel with work competency, and for installation that potential for big danger needs to be coordinated with authorized and related institution. 3.3.9 Procedures to Handle the Incidents To lessen the potential effect caused by incident, the company needs to have procedures which comprise: a. The availability of First Aid facility in sufficient amount and appropriate until medical assistance come. b. Continuous treatment process. 3.3.10 Procedures of Emergency Situation Recovery Plan The company needs to make procedures of emergency situation recovery plan for quick recovery to normal condition and assisting the traumatic worker in recovery. 4. EVALUATION MEASUREMENT The company needs to have system in order to measure, monitor and evaluate the performance of management system of HSE and the result needs to analyze to classify the success or to identify the recovery action. 4.1 Inspection and Examination The company needs to set and maintain inspection procedure, examination and monitoring which are related to aim and purpose of health and safety environment. Inspection and examination frequency need appropriateness with the object. Generally, the inspection procedures, examination and monitoring comprise: a. Involved personnel needs to have sufficient experience and skill. b. Inspection, examination, and monitoring report in ongoing process needs to maintain and available for the management, worker and related work contractor. c. Sufficient tools and method of examination need to use for insuring the fulfillment of health and safety environment standard. d. The improvement action needs to do immediately when mismatch found to health and safety environment requirement from the result of inspection, examination and monitoring.
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e. The sufficient investigation needs to do to find the core of the problem form an incident. f. The finding needs to analyze and review. 4.2 Audit of Management System of HSE Audit of Management System of HSE needs to do periodically to recognize the effectively of the implementation of Management System of HSE. The audit needs to implement systematically and independently by personnel who has work competency by using set-up methodology. The frequency of audit needs to determine based on review of previous audit result and evidence of the hazardous sources which are founded at workplace. The audit result shall be used by the management in management review process. 4.3 The Improvement and Prevention Action All of the finding from the monitoring implementation, audit and review of Management System of HSE needs to document and use for identification of improvement action and prevention as well as the management insures the implementation systematically and periodically. 5 REVIEW AND IMPROVEMENT BY THE MANAGEMENT The appointed leader is obliged to implement the review of Management System of HSE periodically to insure the sustainable appropriateness and effectively in achieving the policy and goal of health and safety environment. The scope of Management System of HSE review shall use to overcome the implication of health and safety environment to all of activity, goods and services products including its effect to companys performance. The review of Management System of HSE needs to comprise: a. Evaluation to the implementation of health and safety environment policy. b. Goal, objective and health and safety environment performance. c. Result of finding to audit of Management System of HSE. d. Evaluation of effectively of the implementation of Management System of HSE and its need to change the Management System of HSE which are according to: 1) The regulation of act change. 2) Demand from related parties and market. 3) Change of product and companys activity. 4) Change of structure of companys organization. 5) Development of science of technology, including epidemiological

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6) Experience gained from health and safety environment incident. 7) Report 8) Feedback particularly from the worker. Determined in Jakarta On 12 December 1996 Minister of Manpower of the Republic of Indonesia Signed Drs. Abdul Latief

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ENCLOSURE II Number Date

: THE REGULATION OF THE MINISTER OF MANPOWER : PER.05/MEN/1996 : 12 December 1996

TECHNICAL GUIDE OF AUDIT OF MANAGEMENT SYSTEM OF HEALTH AND SAFETY ENVIRONMENT 1. DEVELOPMENT AND COMMITMENT MAINTENANCE 1.1. Policy on Health and Safety Environment 1.1.1 The existence of the written policy on health and safety environment, dated and obviously state the health and safety environment objectives and company commitment in improving health and safety environment performance. 1.1.2 The policy which is signed by the employer and or the management. 1.1.3 The policy which is composed by the employer and or the management after passing the consultancy process with the worker representative. 1.1.4 The company communicate the policy on health and safety environment to all of worker, guest, contractor, customer and vendor with appropriate procedures. 1.1.5 When necessary, the special policy is made for special health and safety environment problem. 1.1.6 The policy on health and safety environment and other special policies are selected periodically to insure that the policies reflect the actual changing condition in the regulation of act. 1.2 Responsibility and Authority to Act 1.2.1 Responsibility and authority to take action and report to all related personnel in the company which has been set up and needs to distribute and document. 1.2.2 The appointment of responsibility of health and safety environment shall be according to the applicable regulation of act. 1.2.3 The business unit leader of the company shall be responsible for the health and safety environment performance at his/her business unit. 1.2.4 The company receives suggestion from the expert of health and safety environment which comes from outside the company. 1.2.5 The officer who is responsible for handling emergency situation shall gain training.

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1.2.6 The health and safety environment performance is included in yearly report of the company or other reports which is equal. 1.2.7 The business unit leader is given information about their responsibility to the contractor worker and other people who enter the work premises. 1.2.8 The responsibility to maintain and distribute newly updated information on the regulation of act health and safety environment has been determined. 1.2.9 The management is fully responsible to insure that the management system of health and safety environment being applied. 1.3 Review and Evaluation 1.3.1 The result of review is recorded and documented. 1.3.2 When possible, the result of review is included into the management action planning. 1.3.3 The management shall review the implementation of Management System of HSE periodically in order to asses the appropriateness and effectively of Management System of HSE. 1.4 The Involvement and Consultancy of Worker 1.4.1 The worker involvement and consultancy schedule with the appointed company representative is documented 1.4.2 The procedures are being made to ease the consultancy on the changing that have implication to health and safety environment. 1.4.3 According to regulation of act, the company has established HSE Committee. 1.4.4 The chief of HSE Committee is the management and top executive. 1.4.5 The secretary of HSE Committee is The HSE expert pursuant to the existing regulation of act. 1.4.6 HSE Committee shall highlight the activity on the policy and procedure development to control the risk. 1.4.7 HSE Committee shall hold the meeting regularly and the result shall be distributed at the workplace. 1.4.8 HSE Committee shall report its activity regularly pursuant to existing regulation of act. 1.4.9 When necessary, the task forces shall be formed and selected from worker representatives who are appointed as the responsible people on health and safety environment in their respective workplace and to them the training shall be conducted pursuant to the existing regulation of act. 1.4.10 If the task forces have been formed, then the worker is given information on the scheme of work of the task forces.

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2. DOCUMENTATION STRATEGY 2.1. The Planning of Health and Safety Environment Strategy Plan 2.1.1 The competent officer has identified and assessed the danger potential and health and safety environment risk which have relation with operation. 2.1.2 The planning of health and safety environment strategy of the company remain established and implemented to control danger potential and risk of health and safety environment which has been identified, and related with operation. 2.1.3 The special plan which has relationship with product, process, project or particular workplace has been made. 2.1.4 The plan is based on the risk and incident potential, as well as the previous health and safety environment record. 2.1.5 The plan shall determine the health and safety environment goal of the company that is able to measure, determine the priority and provide the resources. 2.2. Manual of Management System of HSE 2.2.1. The Manual of Management System of HSE comprises policy, goal, plan and procedure of health and safety environment for all of action in the company. 2.2.2. When necessary, the special manual which related to particular product, process, or workplace has also been made. 2.2.3. Manual of Management System of HSE easily reached by all personnel, in the company. 2.3. The Distribution of Information on Health and Safety Environment 2.3.1 Information on activity and health and safety environment matter is distributed systematically to all of the worker of the company 2.3.2 The information records on health and safety environment is maintained and provided for all of worker and other people who come to workplace. 3. THE REVIEW OF DESIGN AND CONTRACT 3.1 Design Control 3.1.1 3.1.2 The documented procedures consider the hazards identification and risk assessment which conducted on the phase of design and redesign. The procedures and work instruction to utilize the product, safe operation of production facility and process is composed during the design phase.

44

3.1.3

The competent officer who has been appointed to conduct verification that the design has fulfilled the requirement of health and safety environment which has been determined. All of modification or change of the design that has impact to health and safety environment is identified, documented, reviewed and approved by the officer who has authority before the implementation. The documented procedures need to able to identify and assess the risk of danger on health and safety environment, surrounding and society, where the procedures are being utilized when supplying goods and services in a contract. The hazard identification and risk assessment is done on review of contract phase by competent personnel. The contracts shall be reviewed to insure that the supplier is able to fulfill the requirement on health and safety environment for the customer. The records of review of contract are maintained and documented.

3.1.4

3.2

Review of Contract

3.2.1

3.2.2 3.2.3

3.2.4

4. Document Control 4.1 Document Approval and Issuance 4.1.1 4.1.2 4.1.3 4.1.4 The health and safety environment documents have status, authority, date of issued and date of modified status. The receiver of distributed document is attached on the documents. The new edition of health and safety environment documents is being stored systematically at the particular place. The obsolete documents shall be removed from the user while the obsolete documents that are stored for special purposes are marked with special sign. There is a system to make and approve the change on the health and safety environment documents. When possible, the reason shall be given about the change and attached on the documents or enclosure. There are procedures of document control or list of all documents which attach the status of every single document, in order to prevent the obsolete use of documents.

4.2

Change and Modification of Document 4.2.1 4.2.2 4.2.3

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5. Purchasing 5.1 Specification from goods and services purchasing 5.1.1 There are documented procedures that insure that the technical specification and other information relevant with health and safety environment have been inspected before deciding to buy. 5.1.2 The purchase specification for every production facility, chemical compound or services shall attach specification which is appropriate with regulation of act conditions and standard of applicable health and safety environment. 5.1.3 Consultancy with potential and influential worker when the time to decide for buying is done when the requirement of health and safety environment is attached in the purchasing specification. 5.1.4 The need for training, self-protector supply and change to work procedures need to consider before the buying, as well as reviewed before the buying and utilization of production facility and chemical compounds. 5.2 System of Verification for Purchased Goods and Services 5.2.1 Goods and Services which have been bought the appropriateness shall be checked with the purchase specification. 5.3 Control and Services Supplied by Customer 5.3.1 Goods and services supplied by customer, before the usage shall be first identified of the hazardous potential and the risk is evaluated. The record is maintained to check this procedures. 5.3.2 Product that is provided by customer can be identified clearly. 6. WORK SECURITY BASED ON MANAGEMENT SYSTEM OF HSE 6.1 Work System 6.1.1 6.1.2 6.1.3 6.1.4 6.1.5 The competent officer has identified the potential danger and has measured the emerging risk from the work process. When the effort to control risk is necessary then the effort shall be determined through control level. There is work procedure which is documented and if necessary, the work permit system shall be applied for risky task. The procedures or work directive to manage all of identified risk securely is documented. The obedience to regulation, standard and provision on the implementation is observed when the time for developing or doing modification of procedures or work directives.

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6.1.6

The work procedures and work instructions are made by competent officer by receiving suggestion from worker who required to perform task and procedure made available by the appointed official. The self-protector tool is made available when required and utilized properly as well as maintained for feasible use. The self-protector shall be announced and made sure that it is feasible for use pursuant to applicable standard and regulation of act. The effort to control risk is reviewed when there happens the change in work process. Supervision is being conducted in order to insure that every single work is performed safely and follow every single procedures and directives of work which have been determined. Every person is monitored pursuant to their level of ability and level of task risk. The supervisor shall participate in identifying danger and make effort to control it. The supervisor is being taken into part of reporting and investigating disease caused by working activity and accident, and is obliged to submit the report and suggestion to the management. The supervisor shall participate in the process of consultancy. The particular task requirement, including health requirement, is identified and used to select and allocate the worker. The work assignment shall be based on the ability and level of skill in the respective worker. The company shall perform work environment assessment to recognize regions which need limitation on passing permit. There is control for the places with limitation on passing permit. The available facilities and services at the workplace pursuant to the standard in the technical guide. The signs on safety and emergency exit mark shall be installed pursuant to standard and technical guide. Schedule of checking and maintaining the production facility as well as its equipments include the verification of protection tools and drawn-up

6.1.7 6.1.8 6.1.9 6.2

Supervision 6.2.1

6.2.2 6.2.3 6.2.4

6.2.5 6.3 6.3.1 6.3.2 6.4

Selection and Allocating Personnel

Work Environment 6.4.1 6.4.2 6.4.3 6.4.4

6.5

Maintenance, Improvement and Change of Production Facility 6.5.1

47

requirement by the existing regulation of act, standard and technical guide. 6.5.2 All of records which contain detailed data on checking, maintenance, improvement and change to production facility shall be stored and maintained. The production facility shall be listed to having prevailed certificate. The maintenance, improvement and every single change shall be conducted by competent personnel. When possible, the production facility which intended to be changed shall be pursuant to the conditions in prevailed regulation of act. There is requesting procedure which comprises condition on equipments with not good safety condition and needs to repair. There is a marking system for no longer safe tool if it is being used or no longer use at all. When necessary, the lock out system is applied to prevent the production facility in off mode before proper usage. The approval procedure is intended to insure that the production facility in safe condition to operate. When the company is being contracted to provide services subject to standard and act of health and safety environment, thus it is necessary to formulate procedures to assure that the services given fulfill the requirements. When the company is given services by contract, and the services are subject to standard and act of health and safety environment, thus it is necessary to formulate procedures to assure that the services given fulfill the requirements. The potential emergency situation (inside and outside the workplace) has been identified and procedure on the emergency situation has been documented. The procedures for emergency situation has been routinely examined and reviewed by the competent officer. The worker shall get instruction and training on emergency situation procedure according to risk level. The officer for handling the emergency situation is given the special training.

6.5.3 6.5.4 6.5.5 6.5.6 6.5.7 6.5.8 6.5.9 6.6

The Service 6.6.1

6.6.2

6.7

The Preparedness to Handle Emergency Situation 6.7.1

6.7.2 6.7.3 6.7.4

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6.7.5

The instruction on emergency situation and emergency situation relationship is shown obviously/prominently and known by all of the companys worker. Tools and system of emergency situation are checked, examined, and maintained periodically. The appropriateness, placing and easiness to obtain the emergency tool has been measured by the competent officer. The company has evaluated the First Aid Tools and insured that the existing First Aid system has fulfilled applicable standard and technical guide. The First Aid officer has been trained and appointed according to applicable regulation of act.

6.7.6 6.7.7 6.8

First Aid in case of Accident 6.8.1

6.8.2

7. STANDARD OF SUPERVISION 7.1 Danger Checking 7.1.1 Inspection in the workplace and work procedures is implemented regularly. 7.1.2 Inspection is being conducted together by management representative and worker representative who has gained training on danger potential identification. 7.1.3 Inspection to find suggestion from officer who performing task at the workplace has been checked. 7.1.4 The checklist of workplace has been composed to use when the time of inspection. 7.1.5 The inspection report shall be submitted to the management and HSE Committee according to the need. 7.1.6 The corrective action is made supervision to determine its effectively. 7.2 The Supervision of Work Environment 7.2.1 The supervision of work environment is made regularly and the result is recorded and maintained. 7.2.2 The supervision of work environment comprises physical, chemical, biology radiation and psychological factors. 7.3 Inspection, Measurement and Examination Tools 7.3.1 There is documented system on identification, calibration, maintenance and storage for inspection tool of measurement and examination on the health and safety.

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7.3.2 The tools are maintained and calibrated by competent officer. 7.4 Health Monitoring 7.4.1 Pursuant to regulation of act, the healthiness of worker that work at the location where contains danger, shall to be monitored. 7.4.2 The company has identified condition where the health checking needs to do and has implemented system to assist this checking. 7.4.3 The medical check-up shall be done by a physician which is appointed pursuant to existing regulation of act. 7.4.4 The company shall provide medical service pursuant to existing act. 7.4.5 Records on health monitoring shall be made pursuant to the existing regulation of act. 8. REPORTING AND IMPROVEMENT 8.1 Emergency Situation Reporting 8.1.1 There is procedure for the process of hazardous sources report and the personnel needs to tell about the process of reporting the hazardous sources to the health and safety environment. 8.2 Incident Reporting 8.2.1 There is documented procedure that assures that all of accident and disease caused by work activity as well incident at the workplace to be reported. 8.2.2 The accident and disease caused by work activity shall be reported as determined by the existing regulation of act. 8.3 The Investigation of Work Accident 8.3.1 The company has investigation procedure of accident and disease caused by work activity which is reported. 8.3.2 The investigation and prevention of work accident shall be done by officer or HSE expert which has been trained. 8.3.3 The investigation report contains suggestion and time schedule of improvement execution. 8.3.4 The responsibility shall be given to appointed officer to conduct improvement action in connection with investigation report. 8.3.5 The improvement action shall be discussed with worker where the accident takes place. 8.3.6 Effectively of improvement action shall remain to be monitored.

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8.4 Problem Handling 8.4.1 There is procedure to handle health and safety environment matter which emerges and pursuant to the existing regulation of act. 8.4.2 The worker shall be given information on the procedures of handling problem of health and safety environment and received information on the updated settlement process. 9. MATERIAL MANAGEMENT AND ITS REMOVAL 9.1 Manual and Technical Handling Management 9.1.1 There is procedure to identify hazards potential and to asses risk which is related with the handling management either manually and mechanically. 9.1.2 The identification and assessment shall be performed by competent officer. 9.1.3 The company shall implement and review procedure of risk control which is related to manual and mechanical handling management. 9.1.4 The procedures to handle material comprises prevention method against damage, spill, and leakage. 9.2 System of Transportation, Storage and Disposal 9.2.1 There is procedure that assures that the material is being stored and transported by safe method according to the existing regulation of act. 9.2.2 There is procedure that explains the control requirement on breakable and expired goods. 9.2.3 There is procedure that assures that the material is being disposed by safe method according to the existing regulation of law. 9.3 Dangerous Material 9.3.1 The company has documented procedures on storage, handling and removal of dangerous material which is according to the existing requirement of regulation of act and standard as well as technical guide. 9.3.2 The comprehensive Material Data Sheet for dangerous material shall be easy to reach. 9.3.3 There is system of identifying and giving label to the dangerous material. 9.3.4 The signboard of alert warning shall be hang on according to the existing requirement of regulation of law and standard. 9.3.5 There is procedure which is documented on safe handling of dangerous material.

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9.3.6 The officer who shall collect dangerous material is being given training on safe handling procedure. 10. THE DATA COLLECTION AND USAGE 10.1 The Record of Health and Safety Environment 10.1.1 The company has procedure in order to identify, collect, archive, maintain and store records of health and safety environment. 10.1.2 The relevant act, regulation, standard and technical guide are stored in reachable location. 10.1.3 There is procedure that determine conditions to keep up the documentation off the records. 10.1.4 The records on review and checking shall be maintained. 10.1.5 The records on work accident compensation and rehabilitation records of health shall be maintained. 10.2 Data and Report on Health and Safety Environment 10.2.1 Data on updated Health and Safety Environment shall be collected and analyzed. 10.2.2 Routine report on health and safety environment performance shall be made and distributed within the company. 11. AUDIT OF MANAGEMENT SYSTEM OF HSE 11.1 Internal Audit of Management System of HSE 11.1.1 Scheduled Audit of Management System of HSE shall be implemented in order to check appropriateness of planning activity and to determine whether the activity is effective. 11.1.2 Internal Audit of Management System of HSE shall be done by competent and independent officer in the company. 11.1.3 Audit report shall be distributed to the management and other interested parties. 11.1.4 The lack ness which is found when audit in process, shall be prioritized and monitored in order to insure the corrective action done. 12. SKILL AND ABILITY DEVELOPMENT 12.1 Training Strategy 12.1.1 The need analyzes of training, which shall comprise the requirement on health and safety environment, has been done.

52

12.1.2 Training planning of health and safety environment has been composed for all levels in the companies. 12.1.3 The training shall consider the difference level of ability and skill. 12.1.4 The training shall be performed by individual or institution that has sufficient ability and experience as well as accredited according to the existing regulation of act. 12.1.5 There is sufficient facility and resources to the effective implementation of training. 12.1.6 The company shall document and store all of training records. 12.1.7 Evaluation shall be performed in every session of training in order to insure the sustainable improvement. 12.1.8 The training program is reviewed regularly in order to insure the relevance and effectively. 12.2 Training for Management and Supervisor 12.2.1 The member of executive management and the management shall play role in the training which comprises the explanation on legal duty and principles as well as the implementation of health and safety environment. 12.2.2 Manager and Supervisor shall receive appropriate training adjusted to their role and responsibility. 12.3 Training for Worker

12.3.1 Training shall be given to all of new coming workers and those who are going to be transferred so that they could perform their job securely. 12.3.2 The training shall be held to the worker when in its workplace there occurs change on production or process facility. 12.3.3 When necessary, the refreshing training shall be given to all of the worker. 12.4 Introduction Training for Visitor and Contractor 12.4.1 The company has introductory program for all of the worker by including policy and procedure material of health and safety environment. 12.4.2 There is procedure which shall determine requirement to provide briefing for all of visitors and business partners in order to insure the health and safety environment. 12.5 Special Skill Training

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12.5.1 The company has system to insure the obedience to license or qualification requirement according to regulation of act to implement special task, conduct task or operate tools. Determined in Jakarta On 12 December 1996 THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA Signed Drs. ABDUL LATIEF

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ENCLOSURE III : THE REGULATION OF MINISTER OF MANPOWER Number Date : PER.051 MEN/1996 : 12 December 1996 AUDIT REPORT FORM REPORT OF AUDIT OF MANAGEMENT SYSTEM OF HEALTH AND SAFETY ENVIRONMENT LEVEL OF ACHIVEMENT Number : <INITIAL/TRANSITION/CONTINUATION> : <No. Report> <NAME OF COMPANY WHICH IS BEING AUDITED> <LOCATION> <NAME OF AUDITORY BODY> REPORT DISTRIBUTION: 1. <NAME OF COMPANY WHICH IS BEING AUDITED> 2. <DEPARTMENT OF MANPOWER> 3. <NAME OF AUDITORY BODY>

Report No. Report Date

<Report No> <Report Date>

REPORT OF AUDIT OF MANAGEMENT SYSTEM OF HEALTH AND SAFETY ENVIRONMENT <NAME OF COMPANY>

Page

<Page No> <Audit No.> <Distribution No.>

Task No.

<Task No.>

SUMMARY

Auditor Coordinator

1. COMPANY WHICH IS BEING AUDITED 2. AUDIT IMPLEMENTATION Date Place : :

3. PURPOSE OF AUDIT 4. SCOPE OF AUDIT 5. AUDITOR TEAM Auditor Team (NAME OF AUDITORY BODY) consist of: 1. <NAME>, Chief 2. <NAME>, Member 6. REPRESENTATIVE OF COMPANY WHICH IS BEING AUDITED 1. <NAME>, <POSITION> Report No. Report Date <Report No> <Report Date> REPORT OF AUDIT OF MANAGEMENT SYSTEM OF HEALTH AND SAFETY ENVIRONMENT <NAME OF COMPANY> Task No. <Task No.> SUMMARY Auditor Coordinator Page <Page No> <Audit No.> <Distribution No.>

7. LIST OF MISMATCH FINDING. Criteria No. Criteria Objective Evidence Category

56

8. GENERAL CONCLUSION 9. FOLLOW-UP 10. AUDIT RESULT Report No. Report Date <Report No> <Report Date> REPORT OF AUDIT OF MANAGEMENT SYSTEM OF HEALTH AND SAFETY ENVIRONMENT <NAME OF COMPANY> Task No. <Task No.> MAIN REPORT Auditor Coordinator Page <Page No> <Audit No.> <Distribution No.>

1. GENERAL DESCRIPTION OF THE WORKPLACE 2. ORGANIZATIONAL STRUCTURE OF ENVIRONMENT AT THE WORKPLACE 3. SCHEDULE OF AUDIT NO 1 2 3 ACTIVITY INITIAL MEETING AUDIT IMPLEMENTATION FINAL MEETING TIME REMARKS CONNECTION HEALTH AND SAFETY

4. REPORT OF INITIAL MEETING

57

Report No. Report Date

<Report No> <Report Date>

REPORT OF AUDIT OF MANAGEMENT SYSTEM OF HEALTH AND SAFETY ENVIRONMENT <NAME OF COMPANY>

Page

<Page No> <Audit No.> <Distribution No.>

Task No.

<Task No.>

MAIN REPORT

Auditor

Coordinator

5. LIST OF AUDIT CRITERIA AND FULFILLMENT NO CRITERIA NO CRITERIA MATCH FULFILLMENT MISMATCH MAJOR MINOR

6. DESCRIPTION OF THE MISMATCH

7. REPORT OF FINAL MEETING Determined in Jakarta On 12 December 1996 THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA Signed Drs. ABDUL LATIEF

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ENCLOSURE IV Number Date

: THE REGULATION OF MINISTER OF MANPOWER : PER. 05/MEN/199 : 12 December 1996.

THE PROVISIONS OF ASSESMENT ON AUDIT RESULT OF MANAGEMENT SYSTEM OF HEALTH AND SAFETY ENVIRONMENT The level of implementation of Management System of HSE is divided into three levels: a. Small size company or company that has low risk level is obliged to implement up to 64 (sixty four) criteria. b. Medium size company or company that has medium risk level is obliged to implement up to 122 (one hundred twenty two) criteria.

c. Large company or company that has high risk level is obliged to implement up to 166 (one hundred sixty six) criteria. The success of the implementation of Management System of HSE at the workplace is measured as follows: a. For the achievement level of implementation 0-59% and violation of regulation of act shall be punishable. b. For the achievement level of implementation 60-84% shall be given certificate and silver flag award. c. For the achievement level of implementation 85-100% shall be given certificate and golden flag award.

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Table 1 Small 64 criteria 0-59% 60-84% 85-100% Punishable by law Certificate of silver flag award Certificate of golden flag award Medium 122 criteria Punishable by law Certificate of silver flag award Certificate of golden flag award Table II CRITERIA DIVISION FOR EVERY STAGE OF IMPLEMENTATION ACHIEVEMENT OF MANAGEMENT SYSTEM OF HSE No. ELEMENT INITIAL STAGE TRANSITION STAGE (All of Initial Stage and Transition) ADVANCED STAGE (All of initial, transition and advanced stages) 1.1.2, 1.1.4, 1.1.6, 1.2.3, 1.2.6, 1.3.1, 1.3.2 2.1.3, 2.1.4, 2.1.5, 2.2.2, 2.2.3, 2.3.2 3.1.3, 3.2.3, 3.2.4 4.1.3, 4.1.4, 4.2.2, 4.2.3 5.1.4, 5.3.1, 5.3.2 6.19, 6.7.4 Large 166 criteria Punishable by law Certificate of silver flag award Certificate of golden flag award

Development and commitment maintenance Strategy of documentation Review of design and contract Document control Purchasing

1.1.1, 1.2.3, 1.2.4, 1.2.5, 1.3.3, 1.4.1, 1.4.3, 1.4.4, 1.4.5, 1.4.6, 1.4.7, 1.4.8 2.3.1

1.1.3, 1.1.5, 1.2.1, 1.2.7, 1.2.8, 1.2.9, 1.4.2, 1.4.9, 1.4.10 2.1.1, 2.1.2, 2.2.1 3.1.1, 3.1.2, 3.1.3, 3.2.1, 3.2.2 4.1.1, 4.1.2, 4.2.1

2 3 4 5 6

5.1.1, 5.2.1

5.1.2, 5.1.3 6.1.4, 6.1.6, 6.2.2, 6.2.3, 6.2.4, 6.2.5, 6.3.1, 6.5.1, 6.5.5, 6.5.9, 6.6.1, 6.6.2, 6.7.2, 6.7.6, 6.7.7 7.1.2, 7.4.1 7.1.3,

Work security based 6.1.1, 6.1.3, 6.1.3, 6.1.5, on management 6.1.7, 6.1.8, 6.2.1, 6.3.2, system of HSE 6.4.1, 6.4.2, 6.4.3, 6.4.4, 6.5.2, 6.5.3, 6.5.4, 6.5.6, 6.5.7, 6.5.8, 6.7.1, 6.7.3, 6.7.5, 6.8.1, 6.8.2 Monitoring standard 7.1.1, 7.2.1, 7.2.2, 7.4.3 Report and Improvement

7 8

7.1.4, 7.1.5, 7.1.6, 7.3.1, 7.3.2 8.3.3, 8.3.4, 8.3.6

8.1.1, 8.2.2, 8.3.1, 8.4.1, 8.2.1, 8.3.2, 8.3.5 8.4.2

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Material management and removal Data gathering and usage Audit of Management System of HSE Skill and ability development

9.1.1, 9.1.2, 9.2.1, 9.2.3, 9.1.3, 9.3.5, 9.3.6 9.3.1, 9.3.2, 9.3.3, 9.3.4 10.1.1, 10.1.2, 10.1.3, 10.1.5, 10.2.1

9.1.4, 9.2.2

10 11

10.1.4, 10.2.2 11.1.1, 11.1.2, 11.1.3, 11, 1.4

12

12.2.1, 12.2.2, 12.3.1, 12.1.2, 12.1.3, 12.1.4, 12.1.1, 12.1.7, 12.4.1, 12.5.1, 12.1.5, 112.16, 12.3.2, 12.1.8, 12.3.3, 12.4.2 Determined in Jakarta On 12 December 1996

THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA Signed Drs. ABDUL LATIEF

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THE MINISTER OF MANPOWER OF THE REPUBLIC OF INDONESIA DECISION OF THE MINISTER OF MANPOWEER NO. : KEP. 155/MEN/84 ON THE COMPLETENESS OF MINISTER OF MANPOWER AND TRANSMIGRATION DECISION NUMBER KEP. 125/MEN/82, ON THE ESTABLISHMENT, FORMATION AND PROCEDURES OF NATIONAL HEALTH AND SAFETY ENVIRONMENT BOARD, REGIONAL HEALTH AND SAFETY ENVIRONMENT BOARD AND HEALTH AND SAFETY ENVIRONMENT COMMITTEE MINISTER OF MANPOWER To consider : a. That in order to lay foundation for the activity enhancement of National Health and Safety Environment Board, Regional Health and Safety Environment Board and Health and Safety Environment Committee, it deemed necessary to complete the Decision of the Minister of Manpower and Transmigration No. Kep. 125/Mn/82, dated on 16 July 1982; b. That the completeness is deemed necessary to be determined with Ministerial Decision. Whereas : 1. Act No. 14 of 1969, on main conditions on Manpower; 2. Act No. 1 of 1970 on Health Safety; 3. Presidential Decree of the Republic of Indonesia No. 45/M/ of 1983 on the Formation of Development Cabinet IV; 4. Presidential Decree of the Republic of Indonesia No. 15 of 1984 on the Formation of Departmental Organization; 5. Decision of the Minister of Manpower No. Kep.- 199/Men/1983 on Organization and Work Procedure of Department of Manpower.

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RESOLVES: To determine : The completeness of Decision of the Minister of Manpower and Transmigration No. Kep. 125/Men/82, dated on 16 July 1982. So that being as follows: Article 1 Name and Location (1) National Health and Safety Environment Board, abbreviated with National HSE Board, located in the capital city of the Republic of Indonesia. (2) Regional Health and Safety Environment Board, abbreviated with Regional HSE Board located in respective capital city of province. (3) Health and Safety Environment Board at workplace, abbreviated with HSE Committee, located at respective workplace. Article 2 Main task and Operational Support (1) Main Task. a. The main task of National HSE Board functions as supporting body in national level, that is, to give suggestion and consideration whether asked or not, to the Government cq. Minister of Manpower, and further in this Decision called as the Minister, on problems in the field of Health and Safety Environment, and also to assist health and safety environment counseling in national level. b. The main task of Regional HSE Board functions as supporting body in provincial level, that is, to give suggestion and consideration, whether asked or not, to provincial Government cq. Chief of Regional Office of Department of Manpower, further in this Decision called Regional Chief, on problems in the field of Health and Safety Environment, and also to assist health and safety environment counseling in the province. c. The main task of HSE Committee functions as supporting body at the workplace, that is, to give suggestion and consideration, whether asked or not to the employer / management at the respective workplace on the problems of health and safety environment. (2) Function In order to conduct the main task as referred in section (1), of this article: a. National HSE Board functions to collect and process all of data and or problems on health and safety environment in national level and respective provinces and also to assist the Minister in: guiding National HSE Board, conducting research, education, training, development and socializing health and safety environment.

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b. Regional HSE Board functions to collect and process all of data and or problems on health and safety environment in the respective provinces and also to assist Regional Chief in guiding HSE Committee. c. HSE Committee functions to collect and process all of data and or problems on respective health and safety environment, and also to assist employer/management of workplace to conduct and enhance guidance, monitoring, training and research on health and safety environment at the respective workplace. (3) Operational Support a. In order that the main task and function can be implemented as effectively as possible, then National HSE Board may form and or appoint nonprofit business unit that involving in guidance, research, education, training, consultancy activity and others in the field of health and safety environment. b. National HSE Board and Regional HSE Board can form a special committee to implement task determined by itself. Article 3 Establishment, Formation, and Procedure (1) The Establishment and Formation a. National HSE Board established by the Minister and consist of a chief, some deputy chiefs; a secretary, a deputy secretary, and respectively also as members. b. Regional HSE Board established by Director General Manpower ship Relation and Work Norms Supervision, and further in this Ministerial Decision is called Director General, and consist of a chief, two deputy chiefs, a secretary, a deputy secretary, and respectively also as members. (2) Work Procedures a. Work relation between National HSE Board with the Minister, Regional HSE Board with Regional Chief and HSE Committee with the employer/management at the workplace is supporting. b. Work relation between National HSE Board with Regional HSE Board and Regional HSE Board with HSE Committee is coordinative. c. Either National HSE Board or Regional HSE Board, may conduct cooperation with government or non government bodies.

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Article 4 Membership (1) a. National HSE Board consist of Governmental elements, labor/employee organization, employer organization, professional organization in the field of health and safety environment and other bodies which are deemed necessary. b. National HSE Board members are appointed and terminated by the Minister based on written suggestion of institution/agency/organization which is represented. (2) a. Regional HSE Board consist of Governmental elements, labor/employee organizations, employer organizations, other bodies which are deemed necessary. b. Regional HSE Board members are appointed and terminated by Director General, based on written suggestion of institution/agency/organization which is represented and submitted to Regional Chief. (3) a. HSE Committee consist of employer/management at the workplace. labor/employee organizations and

Article 5 Duty and Rights of Chief, Deputy Chief, secretary, Deputy Secretary and Member (1) The task of Chief and Deputy Chief a. The task of National HSE Board, Regional HSE Board and HSE Committee is to lead and coordinate the activity of respective Board/Committee. b. In implementing the task, Chief is assisted by Deputy Chief or Deputies of Chief. c. If Chief cannot attend, then its task is replaced by one of deputy chiefs. (2) The task of Secretary and Deputy Secretary a. The secretary of National HSE Board, Regional HSE Board and HSE Committee is to lead and coordinate the implementation of secretarial works and applying the decision of Board/Committee, which are among others: To prepare all of things related to the activity of Board/Committee; To submit meeting invitation and meeting material to the members; To implement documentation; To do all of administration tasks; To manage the household of Board/Committee.

b. Beside the task as mentioned in point a, the Secretary of National HSE Board also acts as the executive official which is submitted to National HSE Board. c. In implementing the task, the secretary is assisted by Deputy Secretary. d. When the Secretary cannot attend, the task is replaced by Deputy Secretary.

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(3) Task of Members are: a. To attend the meetings and discuss on problems raised in the meetings. b. To perform tasks Board/Committee. which have been determined by the respective

(4) Every members have rights to propose the implementation of discussion and necessary follow-ups on problems of health and safety environment which is deemed necessary. Article 6 Meetings (1) National HSE Board meeting shall be held at least 1 (once) every 3 (three) months and headed by the Chief of National HSE Board. When the Chief cannot attend to lead the meeting, then the meeting shall be headed by one of Deputy Chiefs. When there is no one of Deputy Chiefs attend the meeting then the meeting shall be headed by Secretary of National HSE Board. (2) Regional HSE Board meeting shall be held at least 1 (once) time in 3 (three) months and headed by chief of National HSE Board. When the Chief of National HSE Board cannot attend the meeting, then the meeting shall be headed by one of Deputy Chiefs. When no one of Deputy Chiefs attend the meeting, then the meeting shall be headed by Secretary of National HSE Board. (3) The meeting of HSE Committee, at least, shall be held 1 (once) time in 1 (one) month and headed by Chief of HSE Committee. (4) National HSE Board can hold consultancy meeting with Regional HSE Board 1 (one) time in 1 (one) year. (5) The meeting which shall be held by National HSE Board, Regional HSE Board, and HSE Committee is valid when attended by at least half plus 1 (one) from the amount of its members. (6) The decision shall be taken by cooperation way to achieve the decision. Article 7 Financing The fund which is necessary to finance the implementation of National HSE Board, Regional HSE Board, and HSE Committee tasks are arranged as follows: a. For National HSE Board shall be gained from Department of Manpower, and with possible support from Department of Technical and also other legal sources. b. For Regional SE Board shall be gained from Department of Manpower, and with possible support from respective provincial Government and other legal sources. c. For HSE Committee shall be gained from company/institution at the respective workplace.

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Article 8 Responsibility (1) National HSE Board shall report the activity regarding to article 2 section (3) and fund sources as well as the responsibility of the fund usage as mentioned in article 7 point a, in every 6 (six)months to the Minister. (2) Regional HSE Board shall report the fund sources and to be responsible for the fund usage as mentioned in article 7 point b in every 6 (six) months to the Minister. Article 9 Closing (1) Things that have not been arranged yet in this Ministerial Decision shall be determined further by Directorate General. (2) Provisions which have been issued before this and not appropriate with this Ministerial Decision is no longer valid. (3) This Decision shall come into force on the day of its determination. Determined in Jakarta On 28 June 1984 MINISTER OF MANPOWER Signed (SUDOMO) Copied according to the original one. Deputy Secretary of National HSE Board Signed ()

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