1. PT. Yokogawa Indonesia PT. Sistemindra Kontrolindo ＜ commats> Copyright © 2005, Channel - Yokogawa Indonesia Internal PSM Training : “Commercial Matters that Sales People Must Know” June 27, 2005

2. <COMMATS. Copyright © 2005, Channel Dept- Yokogawa Indonesia YIN / SIK - SALES SUPPORT & CHANNEL DEPARTMENT TOPICS 1.Taxation for Sales Transaction : Import Duty / Income Tax/VAT 2.Term of Sales / Delivery 3.YIN / SIK Order Route 1.Term of Payment : Method of Payment Credit Term Billing Schedule 2.Some Clauses inside Project Contract : Bank Guarantee : Bid Bond / Performance Bond Insurances Liquidity Damage Penalty Waranty Cancelation Disputes Patent / Copy Right Force Majeur Etc

3. <COMMATS. Copyright © 2005, Channel Dept- Yokogawa Indonesia YIN / SIK - SALES SUPPORT & CHANNEL DEPARTMENT I. Taxation For Sales Transaction CUSTOMER (Buyer ) YHQ/YEA (Manufacturer) YIN/SIK (Seller) 3. Payment, will be deducted PPh 22 Jasa ( 6 %) if any service rendered. Note : 1.Cost for YIN/SIK : Bea Masuk / Import Duty + Freight + Insurance 2. VAT In/out & PPh 22 Import/Jasa are not recorded as Cost 2. Invoice+ VAT Out ( 10 % ) from Price 1. Import Clearance by YIN / SIK Indonesia Region / Custom Authority Singapore Region / Custom Authority Import Clearance : 1.Bea Masuk/Import Duty ( % based on HS No.) 2.PPh 22 Impor ( 2.5 % from CIF Value) 3.VAT In / PPN Impor ( 10 % from CIF Value)

4. <COMMATS. Copyright © 2005, Channel Dept- Yokogawa Indonesia YIN / SIK - SALES SUPPORT & CHANNEL DEPARTMENT II. Term Of Delivery : 1. FOB Singapore CUSTOMER (Buyer ) YHQ/YEA (Manufacturer) YIN/SIK (Seller) Note : Since the Delivery is done oustside of Indonesia Region, this transaction is not subject to VAT for YIN/SIK as the Seller Indonesia Region / Custom Authority Singapore Region / Custom Authority Customer’s Forwarder/Rep Delivery Custom Clearance by Customer

5. <COMMATS. Copyright © 2005, Channel Dept- Yokogawa Indonesia YIN / SIK - SALES SUPPORT & CHANNEL DEPARTMENT II. Term Of Delivery : 2. Cost, Insurance & Freight CUSTOMER (Buyer ) YHQ/YEA (Manufacturer) YIN/SIK (Seller) Note : Custom Clearance : Bea Masuk, PPh 22 Impor & PPN Indonesia Region / Custom Authority Singapore Region / Custom Authority Airport / Harbour Delivery Custom Clearance paid by Customer

6. <COMMATS. Copyright © 2005, Channel Dept- Yokogawa Indonesia YIN / SIK - SALES SUPPORT & CHANNEL DEPARTMENT II. Term Of Delivery : 3. Delivery Duty Paid ( DDP ) CUSTOMER (Buyer ) YHQ/YEA (Manufacturer) YIN/SIK (Seller) Note : Custom Clearance : Bea Masuk, PPh 22 Impor & PPN Indonesia Region / Custom Authority Singapore Region / Custom Authority Airport / Harbour Delivery Custom Clearance Paid by YIN /SIK Delivery

7. <COMMATS. Copyright © 2005, Channel Dept- Yokogawa Indonesia YIN / SIK - SALES SUPPORT & CHANNEL DEPARTMENT II. Term Of Delivery : 4. Delivery Duty Unpaid (DDU) CUSTOMER (Buyer ) YHQ/YEA (Manufacturer) YIN/SIK (Seller) Note : Custom Clearance : Bea Masuk, PPh 22 Impor & PPN Indonesia Region / Custom Authority Singapore Region / Custom Authority Airport / Harbour Delivery Custom Clearance Paid by Customer Delivery

8. <COMMATS. Copyright © 2005, Channel Dept- Yokogawa Indonesia YIN / SIK - SALES SUPPORT & CHANNEL DEPARTMENT III. YIN / SIK Order Route : 1. Gross Order CUSTOMER ( Buyer) YEA ( Seller ) YIN/SIK (Mediator) 1. Purchase Order 2. Invoice & Delivery : FOB Singapore or CIF 3. Payment 4. SAF/Commission Payment Note : 1.Accounting Sales Record of Turnover : YEA 2.Accounting Sales record of SAF / Commission : YIN / SIK 3.Custom Clearance : Customer

9. <COMMATS. Copyright © 2005, Channel Dept- Yokogawa Indonesia YIN / SIK - SALES SUPPORT & CHANNEL DEPARTMENT III. YIN / SIK Order Route : 2. Net Order CUSTOMER ( Buyer ) YEA YIN/SIK ( Seller) 1. Purchase Order ( DDP ) 3. Delivery & Invoice ( FOB or CIF) 5. Payment Note : 1.Accounting Sales Record of Turnover : YIN / SIK 2.Custom Clearence : YIN / SIK 4. Delivery & Invoice + VAT 2. Purchase Order 6. Payment

10. <COMMATS. Copyright © 2005, Channel Dept- Yokogawa Indonesia YIN / SIK - SALES SUPPORT & CHANNEL DEPARTMENT III. YIN / ISK Order Route : 3. Net Order FOB Singapore CUSTOMER (Buyer ) YHQ/YEA (Manufacturer) YIN/SIK (Seller) 1. Purchase Order 4. Invoice + DN 6. Payment Note : 1.Accounting Sales Record of Turnover : YIN / SIK 2.Import Clearance : Customer 5. Invoice+ DN no VAT 2. Purchase Order 7. Payment Indonesia Region / Custom Authority Singapore Region / Custom Authority Customer’s Forwarder/Rep 3. Delivery Import Clearance

11. <COMMATS. Copyright © 2005, Channel Dept- Yokogawa Indonesia YIN / SIK - SALES SUPPORT & CHANNEL DEPARTMENT