INVOICING PROCEDURES AND REQUIREMENTS

1. Invoice/Billing Document

a. Invoice/billing document consistent with Purchase Order (PO)/Contract:

Name, address, and tax ID number must consistent with the data stated in PO/Contract.

Invoice number must be stated.

Invoice number should only be used once (if our system detects any duplication of invoice

number, then the invoice will be rejected).

Bank account detail should be stated in the invoice. If it is not stated, then a bank account

statement letter with stamp duty signed by the authorized person and stamped with the

vendor’s stamp is mandatory.

Stamp duty usage (only applicable for local vendor):

Rp. 0 – Rp. 250.000 (not required to use stamp duty)

Rp. 250.001 – Rp. 1.000.000 (required to use minimum Rp. 3.000 stamp duty)

Above Rp. 1.000.000 (required to use Rp. 6.000 stamp duty)

For the e-stamp duty usage, vendor should attach the request letter to the tax

authority for using it

Electronic signature or wet signature and vendor’s stamp are required in the invoice.

If you are using an e-invoice, then wet signature and vendor stamp are not required.

PO/Contract number should be stated in the invoice; one (1) invoice consists of (one) 1

PO/Contract number.

The invoice date should be consistent with the date of goods or service delivery.

For invoice submitted to bill several combined goods deliveries, the invoice date listed

must be the latest delivery date in the same month.

The invoice value should be detailed between the tax base and the value-added tax

amount.

For invoices related to goods and services, it is mandatory for the vendor to split the

respective tax base value of goods and services.

If there is a down payment in the respective invoice, then it is mandatory to insert

information on the total transaction value and the down payment submitted

(Attachment-1 Down Payment Invoice).

Invoice must be printed clearly and cannot be handwritten nor corrected by hand.

The details of the goods/services name, quantity unit of measure (UoM) stated in the

invoice should be the same with the details stated in PO. If the details are not the same,

then the vendor should attach a statement/letter explaining the discrepancy which should

be acknowledged by our Procurement.

b. Electronic Tax Invoice/Tax Invoice (only applicable for vendor as resident of the Republic of

Indonesia and taxable enterprise):

Send out two (2) copies of tax invoices (electronic tax invoices) which have QR

code/barcode and e-tax invoice series number (e-Nofa) as proof that they have been

validated.

If there is a substitute of tax invoice, then it is compulsory to provide the initial tax invoice

and latest substitute tax invoice during billing (2 copies).

The tax invoice date should be the same as the invoice date.

One (1) tax invoice for one (1) invoice.

For down payment transactions, the tax invoice date should be the date of goods being

delivered as stated in delivery order or payment received, whichever comes first.

Vendor’s name, address, and tax ID number must consistent with Taxable Entrepreneur

Confirmation Letter.

Name listed in the tax invoice must correspond with the given specimen.

Tax invoice issued date must not exceed the grace period determined by the applicable

tax regulation since the date of goods/service being delivered. If tax invoice issued date

is exceeding the grace period, then tax invoice is deemed as flawed and cannot be

creditable, hence VAT will not be paid. Vendor needs to submit a statement letter with

stamp duty that vendor is willing to be paid only for tax base value without VAT.

Tax invoice submission date must not exceed the grace period determined by the

applicable tax regulation. If tax invoice submission date is exceeding the grace period,

then tax invoice is deemed as flawed and cannot be creditable, hence VAT will not be

paid. Vendor needs to submit a statement letter with stamp duty that vendor is willing to

be paid only for tax base value without VAT.

c. Documents related to Tax Invoice Regulation (PER 24) (only applicable for vendor as resident

of Republic of Indonesia). Attach the following documents if there are any changes in the

documents submitted before:

Signature specimen

Proof or letter retrieval from tax office over the signature specimen

Taxable Entrepreneur Confirmation Letter

Tax ID number

Tax Registered Certificate

d. Certificate of Domicile of Non-Resident for Indonesia Withholding Tax (DGT Form page 1 & 2)

should be attached for all services’ invoice:

Page 1 and 2 of the DGT Form is valid for a year. Page 1 and page 2 of the DGT Form

attached for the first time should be the original one. For the next transaction, the form

could be submitted in the form of a copy. Form DGT must be filled in completely and

correctly.

DGT Form on part II of page 1 should be signed and stamped by the proficient tax authority

from the country of origin (exception made if there is an official certificate of resident from

the tax authority from the country of origin and should be valid for the maximum of a

year).

DGT Form on part VII of page 2 should be signed by vendor’s authorized and competent

representative.

Exception can be made for vendors who owned a valid e-SKD (electric domicile certificate).

e. Purchase Order (PO)/Contract

Copy of Purchase Order/Contract which has been signed by PT Sinar Mas Agro Resources

and Technology (PT SMART Tbk) should be attached (exception for all e-PO).

Contract which has been signed by both parties should be attached.

For PO manual of cooperative invoice, the original PO signed by PT SMART Tbk should be

attached.

f. Other supporting documents in accordance for below transaction type:

Purchase of Goods

Shipping via Land

Attach original delivery order signed by both sender and receiver, complete with

names and sender’s company stamp

Recap of delivery order (if delivery order is more than one (1)) in accordance with

the attached format (Attachment-2 Delivery Order Recapitulation) should be

attached

For the purchase of materials using weight bridge, the weight bridge ticket which has

been signed by both sender and receiver stated the complete names of both parties

and stamped, should be attached

Special document needed for fertilizer shipping: original weight bridge and delivery

recap which has been signed by unit should be attached

Shipping via Air or Sea

Attach copy of bill of lading/BL (sea freight) or airway bill/AWB (air freight) based on

the agreed incoterms

Attach packing list

Overseas vendors should attach certificate of domicile (CoD)

Service Completion

Certificate of Completion which has been signed by vendor and PT SMART Tbk should

be attached. The original document should state the clear names of both parties and

has been stamped by both parties

Land Transporter

Attach original Delivery Order from transporter Vendor, signed by sender and

receiver, complete with names and sender’s company stamp

Attach a copy of Delivery Order from transporter Vendor, signed by sender and

receiver, complete with names and sender’s company stamp, with copy of packing

list, copy of SPPB, copy of custom clearance approval certificate and import

declarations (if any)

Recap of delivery order (if delivery order is more than one (1)) in accordance with

the attached format (Attachment-2 Delivery Order Recapitulation) should be

attached, especially for shipment by land

VAT and Withholding tax rate charged for transportation service must consistent with

the applicable tax regulation and vendor must attach the related license documents

as proof and base of tax rate collection

Sea Transporter

Attach the fixture notes

Attach bill of lading and shipping manifesto

Attach time charter

g. Statement Letter for Bank Account Changes:

If there is any change for the previously registered bank account, then vendor is mandatory

to attach the statement letter of account changes with stamp duty signed by the authorized

person and stamped with the vendor’s stamp. (Attachment-3 Bank Account

Statement Letter).

Name listed in the bank account needs to be aligned with the name listed in PO.

h. Penalty Agreement Form

In regards to a penalty clause that exists in PO for late goods delivery, if the goods received

by PT SMART Tbk have passed the delivery date agreed, then vendor should attach penalty

agreement form signed by both parties.

i. Other supporting documents considered necessary by vendors (if any).

2. If there is any discrepancy(s) found between the vendor data listed in PO and legal/licensing

documents, or if there is any data change(s) related to taxation, then vendors must inform the

updated data (including its supporting documents) through the respective Procurement PIC.

3. Invoice Status Notification

System will automatically send invoice status notification (Accepted/In-progress/Rejected) to

vendors via email that is registered to our system. If vendor has no email address or the email

registered is not valid, then the automatic notification through email will not be sent. Therefore, it

is compulsory for vendors to own an email address and inform the email address to the respective

Procurement PIC, including its changes.

In the case of rejected vendor invoice, vendor must retrieve the submitted documents back in five

(5) working days at the latest post rejected status is informed to the respective vendor. We are

not responsible for the loss of document if it was not retrieved within the predetermined period of

time. The rejected document retrieval can be done at the address listed in point No. 5 below.

And revised document must re-submitted in 10 working days with regard to follow the procedure

of tax invoice submission date as explained in point No. 1.b. above.

4. Payment due date is calculated based on the date when all documents have been received and

completely and correctly based on the notification sent by the system.

5. Time and location of billing document delivery and rejected document retrieval:

Day: Monday to Friday (closed on National Holiday)

Time: 08.30 AM to 11.30 (Western Indonesia Time)

Address:

Sinar Mas Agribusiness and Food (PT Sinarmas Sentra Cipta)

To: ODS Counter A – Upstream or Counter B – Downstream

Sinarmas MSIG Tower Floor 26th

Jl. Jend. Sudirman Kav 21, Setiabudi, RT.10/RW.1, Karet, Jakarta Selatan,

DKI Jakarta, 12930

Telp : +62 (021) 50156000

Upstream Local Vendor can submit invoice to Representative Office

(Attachment-4 Upstream Representative Office).

6. Communication channel between PT SMART Tbk and vendors:

Vendors may inquire regarding the payment status that has not been received but has been

overdue via email below: finance.helpdesk@sinarmas-agri.com

We will response your email within three working days at the latest

To help and ease our internal document checking, we have attached a checklist as a guide to ensure

document completeness before the documents are sent to us (Attachment-5 Checklist).

Should there be any follow up inquiry regarding this letter, please contact the respective Procurement

PIC.

We are thankful for your cooperation and we will continue to improving our service.

Attachment-1 Down Payment Invoice

Example Invoice Non Project • Down Payment

Example Invoice Non Project – Settlement for Down Payment

Attachment-2 Delivery Order Recapitulation

Attachment-3 Bank Account Statement

BANK ACCOUNT STATEMENT LETTER

The name signed below:

Name :

Position 1) :

Address :

Telephone :

Fax :

Email :

Own the legal right and power required, and has obtained all rights, agreement, permit, qualification, warrant, and other

needed requirements to represent:

Company Name :

Company Address :

With this letter, state that all invoices for:

Name ________________________________, will be paid to the bank account _____________ ___________________________________

with details as follow:

Beneficiary Name :

Bank Name :

Currency 2) :

Bank Account Number :

This Statement Letter is written is made truthfully and binding for name ____________________

__________________________ to be used as appropriate.

……Place…, ….Date

Stamp

6000 ribu

Name

Position

1) Company Director

2) Only one currency for one bank account with the maximum of two bank accounts (two currencies)

Attachment-4 Upstream Representative Office

Representative Office Address

Medan Jl. Monginsidi No.14 Medan, Tlp. (061) 4556566

Pekanbaru Jl. Soekarno Hatta No.19 RT01 / RW08 Kel. Sidomulyo Barat, Kec. Tampan, Pekanbaru, Riau 28294

Jambi Jl. Soekarno Hatta No.183 Jambi, Tlp. (0741) 572729

Lubuk Linggau Jl. Garuda Dempo No.42 Lubuk Linggau, Tlp. (0733) 320992

Lahat Jl. Kolonel H. Burlian Blok A-3 Kav. Bandar Jaya Kabupaten Lahat

Palembang Jl. Cendrawasih No.26 Palembang, Tlp. (0711) 352819

Lampung Jl. Pangeran Tirtayasa No. 18A Kel. Sukabumi Indah, Kec. Sukabumi Bandar Lampung, Tlp. (0721) 701828

Bangka Jl. Depati Amir No.8 Pangkal Pinang, Bangka Tlp. (0714) 434404

Belitung Jl. Air Serkuk No. 2 RT02/RW01 Tanjung Pandan, Belitung, Babel 33415, Tlp. (0719) 23767

Sampit JL. HM. Arsyad No.88 Kec. MB. Ketapang Sampit, Tlp. (0531) 22329

Banjarmasin Jl. A. Yani KM 23.700 Landasan Ulin, Banjarmasin, Tlp. (0511) 4705508

Samarinda Jl. Ring Road III No.88 Samarinda, Tlp. (0541) 251281

Ketapang Jl. Brigjen Katamso No.88 RT026/RW006 Sukaharja Delta Pawan, Ketapang

Pontianak Jl. Ks. Tubun No. 56. RT03/ RW04 Kel. Akcaya Kec. Pontianak Selatan. Kota Pontianak, Kalbar 78121

Jayapura Perum Sky Line Indah Blok D No. 28 BTN Abepura Jayapura, Tlp. 0967-581234

Attachment-5 Checklist

No. Completeness

PO NPO

Accuracy Check Items/Details Material Invoices

Service/ Project Invoice

Invoice

1.

Original Invoice

Yes

Yes

Yes

1. Vendor Stamp & Signature

2. Stamp Duty: ≥ IDR 250K

2.

Receipt (applicable only for notary)

N/A

N/A

Yes

1. Vendor Stamp & Signature

2. Stamp Duty: ≥ IDR 250K

3. Tax Invoice Yes

Yes

Yes

Total amount matched with invoice amount 1. Tax invoice date must be same

with invoice date 3. Tax invoice

date must be within 3 months

from the delivery order date

2. Tax invoice expiry date:

<3months

3. If any tax Invoice replacement

(#011), the original tax invoice

(#010) should be provided.

4.

PAM (Payment Approval Memo) Including Supporting

documents if any

N/A N/A Yes

1. Complete signatures from

approval matrix

2. Complete Details :

a) Total amount matched with

invoice amount, if any

b) GL, Cost Center c) Beneficiary Name & Bank

Account

5. Delivery Notes Yes N/A Yes 1. Vendor Stamp & Signature 2. Recipient Signature

3. Quantity in delivery note/ summary of delivery order should be matched with quantity in invoice.

6. Packing List & Bill of Lading *only for imported

materials

Yes N/A N/A

The following details should be

matched in Invoice

a) Company Name

b) Material List c) Quantity

7. Certificate of Service Completion

(BAPP/BAST)

N/A Yes Yes 1. Vendor Stamp & Signature 2. Recipient Stamp & Signature 3. Job progress rate (%) should be

the same with the invoice

No. Completeness

PO NPO

Accuracy Check Items/Details Material Invoices

Service/ Project Invoice

Invoice

8. Contract (Surat Perjanjian Kerja (SPK))

Yes Yes Yes 1. Total amount should be matched with PO amount (for Downstream only)

2. Complete signatures both parties & stamp

3. For PO, contract/SPK should be provided only for the 1st Invoice (scanning of documents is not required)

9. Form DGT (Certificate of Domicile) * only for Overseas

Vendors – providing

services will be

subjected to

withholding tax

N/A Yes Yes 1. Validity/expiry date: within 1 year 2. Complete signature & stamp from

vendor & tax Authority

10. Purchase Order Yes Yes N/A 1. Complete signature for non e-PO