20240321_KRYA_Perubahan Profesi Penunjang_31608254_lamp4.pdf

HADORI SUGIARTO
HLB ADI & REKAN

e In making our risk assessments, we consider internal control relevant to the Entity's and its
subsidiary”s preparation of the consolidated financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Entity”s and its subsidiary”s internal control. However, We will communicate
to you in writing concerning any significant deficiencies in internal control relevant to the audit of
the consolidated financial statements that We have identified during the audit.

e Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

@  Conclude on the appropriateness of management's use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Entity”s and its subsidiary's ability to continue as
a going concern. If we conclude that a material uncertainty exists, we are reguired to draw attention
in our auditor”s report to the related disclosures in the consolidated financial statements or, if such
disclosures are inadeguate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor”s report. However, future events or conditions may cause the
Entity and subsidiary to cease to continue as a going concern.

e  Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.

Accordingly, Our opinion on such consolidated financial statements depends on the results of the
audit procedures which We will conduct, therefore We cannot guarantee that We can render an
ungualified opinion on the consolidated financial statements referred to above.

Because of the inherent limitations of an audit, together with the inherent limitations of internal control,
there is an unavoidable risk that some material misstatements may not be detected, even though the audit is
properly planned and performed in accordance with the auditing standards established by IAPI. However,
We will inform you of the errors and irregularities which are noted during our audit, except if those are not
significant.

In case of anticipated condition that will present us from finishing audit and publishing a report as
mentioned in the above paragraph, a notification will be addressed to you soon and We will take
necessary action.

Management Letter

In addition to audit report on the consolidated financial statements, We will submit a separate letter
regarding the significant weaknesses in the internal control structure which are noted by us in the conduct
of Our audit.

Staff Assistance and Cooperation's Entity and Subsidiary

We will perform audit as expeditiously as possible and therefore We need your Entity's and subsidiary's
accounting personnel's assistance and cooperation in the timely preparation of trial balances, schedules and
account analyses, and provide clerical assistance as needed. We wish to emphasize that Our ability to
complete this work on time will depend largely on the availability and guality of the reguired information
and documents. If the information is not prepared as in the agreement, We will take necessary steps to
reschedule the time and the period of audit settlement. There is not access limited to any notes, document
and other information asked by Us regarding the audit process.

Letter No. 051/PROP-SBY2/A/V/2023 Surabaya, May 22, 2023
PT Bangun Karya Perkasa Jaya Tbk Page 2 of 6 pages

HADORI SUGIARTO
HLB ADI & REKAN

Management's and Those Charged With Governance Responsibilities and Representation

Consolidated Financial Statements x

The Entity's and subsidiary's management is responsible for the preparation of the consolidated financial
statements in accordance with PSAK and for adjusting those statements to correct material misstatements.
Management is also responsible for (1) maintaining effective internal control over financial reporting and
informing Us of any changes in the Entity”s and subsidiary's internal control over financial reporting that
occurred during the year that have materially affected, or are reasonably likely to materially affect, the
Entity's and subsidiary's internal control over financial reporting, (2) responsible for safeguarding the
Entity”s and subsidiary's assets and for the prevention and detection of fraud, error and also have
responsibility to advise us of, or ensure that we are advised of, any known or suspected fraud within the
Entity and subsidiary, (3) identifying and ensuring the Entity comply with the laws and regulations
applicable to its activities and informing Us of any known material violations of such laws and regulations,
(4) making available to Us all financial records and related information and personnel with information of
relevance to Our engagement, and (5) for evaluating the overall presentation, structure and content of the
consolidated financial statements, including the disclosures, and whether the consolidated financial
statements represent the underlying transactions and events in a manner that achieves a fair presentation.

In preparing those consolidated financial statements, the Entity's and subsidiary's management should:

(H) select suitable accounting policies and then apply them consistently

(ii) make judgements and accounting estimates that are reasonable and prudent, and

(iii) prepare the financial report on the going concern basis unless it is inappropriate to presume that the
Entity and subsidiary will continue in business.

Those charged with governance are responsible for overseeing the Entity's and subsidiary's financial
reporting process.

Representation Letter

In accordance with the reguirements of the auditing standards issued by the IAPI, We will make specific
inguiries of management and others about the representations embodied in the consolidated financial
statements and effectiveness of internal control.

We will also reguire written confirmation (representation letter) from certain members of management
regarding the completeness of the consolidated financial statements and information provided to Us in
relation with Our conduct of the audit. This representation letter includes, amongst other things, as follows:
(a) acknowledgment of management's responsibility for the preparation of the consolidated financial
statements and for establishing and maintaining effective internal control over consolidated financial
reporting, and (b) affirmation of management's belief that the effects of any uncorrected consolidated
financial statement misstatements aggregated by Us during the current audit engagement and pertaining to
the latest period presented are immaterial, both individually and in the aggregate, to the consolidated
financial statements taken as a whole.

The results of Our audit tests, the responses to Our inguiries and the written representations constitute the
evidential matter We intend to rely upon in forming an opinion on the consolidated financial statements.
Because of the importance of management's representations to an effective audit, the Entity and subsidiary
agree to release and indemnify, defend and hold harmless Hadori and its personnel from any liabilities,
claims, costs and expenses relating to Our services under this letter attributable to any misrepresentations
by management, whether made orally or in writing.

Letter No. 051/PROP-SBY2/A/V/2023 Surabaya, May 22, 2023
PT Bangun Karya Perkasa Jaya Tbk Page 3 of 6 pages

HADORI SUGIARTO
HLB ADI & REKAN

Independence Matters Relating to Financial Interests and Providing Certain Services

In connection with our engagement, Hadori and the management will assume certain roles and
responsibilities in maintaining independence and ensuring compliance with the Indonesian regulations
rules. Management of the Entity will ensure that the Entity and its subsidiary has policies and procedures in
place for the purpose of ensuring that the Entity and its subsidiary will engage or accept any service from
Hadori under independence rules and regulations or other applicable rules.

Independence Matters Relating to Hiring

Management will coordinate with Hadori to ensure that Hadori's independence is not impaired by hiring a
former or current Hadori partners or professional employees for certain positions. Management of the
Entity will ensure that the Entity and its subsidiary, has policies and procedures in place for purposes of
ensuring that Hadori's independence will not be impaired by hiring a former or current Hadori partner,
principal, or professional employee in an accounting role or financial reporting oversight role that would
cause a violation of the applicable independence rules. Any employment opportunities with the Entity and
subsidiary for a former or current Hadori partner, principal, or professional employee should be discussed
with partner and approved by the management before entering into substantive employment conversations
with the former or current Hadori partner, principal, or professional employee, if such opportunity relates to
serving: (1) as chief executive officer, controller, chief financial officer, chief accounting officer, or any
eguivalent position for the Entity and subsidiary, (2) on the Entity's board of directors and/or
commissioners, (3) as a member of the Audit Committee, or (4) in any other position that would cause a
violation of the applicable independence rules.

Other Communications

In connection with the planning and implementation of Our audit, auditing standards reguire certain things
to be discussed to the egual level of the Entity's and subsidiary's management. We will report directly to
senior management and Audit Committee (collectively referred to as those charged with governance)
against any fraud of Our concern involving lower-level management, and any kind of cheating (whether
done by lower-level management or other employees) that become Our concern to material misstatement of
the consolidated financial statements. We will report to senior management of any fraud done by lower-
level employees that are not caused by material misstatement of the consolidated financial statements,
however, we will not report directly to Audit Committee, unless otherwise directed by Audit Committee.

We will notify to egual level of management and determine that senior management and Audit Committee
informed in connection with the illegal activities that have been detected or otherwise be Our concern in
audit process, unless the illegal activities are not important.

We will report directly, in writing, to senior management and Audit Committee for all significant
deficiencies and material weaknesses identified during the audit. Significant deficiency is the lack of
control, which negatively affects the Entity”s and its subsidiary ability to initiate, authorize, record, process
or report external financial data in accordance with generally accepted accounting principles, thus there is
more than a slight possibility that misstatement of the Entity's and its subsidiary on consolidated financial
statements is more than not important will not be prevented or detected. Material weakness is a significant
deficiency, which produce more than a little likely that the misstatement of the consolidated financial
statements will not be prevented or detected.

We also provide those charged with governance with a statement that We have complied relevant ethical
reguirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear Our independence, and where applicable, related safeguards.

Letter No. 051/PROP-SBY2/A/V/2023 Surabaya, May 22, 2023
PT Bangun Karya Perkasa Jaya Tbk Page 4 of 6 pages

HADORI SUGIARTO
HLB ADI & REKAN

From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the consolildated financial statements of the current period and are
therefore the key audit matters. We describe these matters in Our auditor's report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, We determine that a
matter should not be communicated in Our report because of the adverse conseguences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.

Form of Reports

We will submit 3 (three) copies of audit report based on auditing standards established by IAPI on the
consolidated financial statements as of December 31, 2023 and for the year then ending.

Professional Fees

Our estimated professional fees for the above-mentioned engagement amounted to Rp 90,000,000
(Ninety million rupiah).

The foregoing professional fees will be billed by us as follows:

Total
Descriptioi Yo
Jaan Rp)
First billing, upon approval of the audit proposal 5046 45,000,000
Second billing, upon submission of the final draft of audit reports 5046 45,000,000
Total 1002 90,000,000

The total fees above exclude traveling costs, accomodation, report printing costs, and out of pocket
expenses which are incurred in connection with the audit.

Value-added tax (“Pajak Pertambahan Nila?” or “PPN”) amounting to 1176 will be for the account of the
Entity. In accordance with the existing tax regulations, you are obliged to withholding tax Article 23
amounting to 26 of Our audit fees (excluding value-added tax) and remit the amount to the State Treasury
as a prepayment of our corporate income tax.

Our tax identification number (NPWP) is 02.393.412.8-615.001 (HLB Hadori Sugiarto Adi & Rekan).

Inclusion of Hadori Reports or References to Hadori in Other Documents or Electronic Sites

If you intend to publish or otherwise reproduce the consolidated financial statements together with our
report or otherwise make reference to our Firm in a document that containts other information, you agree to
provide us with a draft of the printed document for our review and approval before the documented is
printed and distributed, futhermore, you agree that the terms of this engagement do not encompass and
undertaking by us (1) to consent, by means of a separate letter or otherwise, to inclusion of auditor”s report
on the consolidated financial statements referred to above in a filling with a regulatory agency or otherwise
reissue our report for purposes of a securities offering or other financing transaction, or (2) to acknowlege
reliance on our report by others.

Other Terms and Conditions
Limitation of Liability and Indemnification

Hadori Sugiarto Adi & Rekan's Registered Public Accountant maximum liability to
PT Bangun Karya Perkasa Jaya Tbk and other parties for any reason, including Hadori Sugiarto Adi &
Rekan's negligence, relating to the services rendered under this proposal shall be limited to the fees paid to
Hadori Sugiarto Adi & Rekan for the services or work product giving rise to the liability, except to the
extent finally determined to have resulted from the gross negligence or willful misconduct of Hadori
Sugiarto Adi & Rekan.

Letter No. 051/PROP-SBY2/A/V/2023 Surabaya, May 22, 2023
PT Bangun Karya Perkasa Jaya Tbk Page 5 of 6 pages

HADORI SUGIARTO
HLB ADI & REKAN

Hadori is entitled to amend the fees and scope of work stated in this proposal letter if you do not sign and
return to us such letter within 30 (thirty) days from the date of the proposal letter.

Approval for Submission of Independent Auditors” Report to the Financial Professional Development
Center (“Pusat Pembinaan Profesi Keuangan” or “PPPK”)

In accordance with the Regulation of the Minister of Finance of the Republic of Indonesia
No. 186/PMK.01/2021 concerning the Guidance and Supervision of Public Accountants, article 39 (5),
which states that "Public Accountant Office (“Kantor Akuntan Publik” or “KAP”) must upload an
independent auditor's report document that has been signed and included a OR code when the independent
auditors' report is published into the Pelita application".

The Pelita application is an online-based application that can be accessed through the address
https://pelita.kemenkeu.go.id/ used for reporting the business activities of the KAP.

By signing this proposal as a sign of approval, the Entity also declares to give APPROVAL/REFUSAL
(“cross out unnecessary) to Hadori to upload the independent auditors' report document that has been
published into the Pelita application.

If the Entity states that it DOES NOT AGREE, then the Entity is reguired to submit a Refusal Statement
Letter to Hadori along with the approval of this proposal.

Termination of Agreement

In the event of termination of the agreement and agreed by both parties, Hadori shall invoice and the Entity
shall pay all of Hadori Sugiarto Adi & Rekan costs incurred up until the termination of the assignment.

Applicable Law an: isdiction

The provisions herein shall be governed by and, construed in accordance with, the laws of Indonesia and
any legal disputes shall be settled within the exclusive jurisdiction of the Indonesian District Court.

If the above terms are acceptable to Entity and the services outlined are in accordance with your
understanding, please sign the copy of this engagement letter in the space provided and return it to us.

We are pleased to have this opportunity to serve you and assure you that this engagement will be given Our
closest attention.

Lv

PT. BANGUN

KARYA PERKASA JAVA, Tts
, Centrectop SH

| Gong

Yours truly,

Approved by
Position
e
Date . 31 Mef 2023
Letter No. 051/PROP-SBY2/A/V/2023 Surabaya, May 22, 2023

PT Bangun Karya Perkasa Jaya Tbk Page 6 of 6 pages