FORENSIC SERVICES BDO Indonesia

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FORENSIC SERVICE Summary of Services

BDO Indonesia provides the following forensic services:

• Anti-Bribery & Corruption Reviews and Investigations

• Corporate Investigations

• Data Analytics

• Digital Forensics / Cybercrime

• Dispute and Litigation Support

• Due Diligence (Business Partners, Vendors, Pre-Employment)

• Forensic Audits / Forensic Accounting

• Fraud Risk Reviews

• Insurance Claim Support (Business Interruption & Damages Claims)

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• Indonesia is still ranked as one of the more corrupt countries and continues to attract attention locally and internationally

• Globally the O&G Industry is seen as one of the most corrupt industries (see Transparency International)

• BDO has many years of experience investigating ABC in the APAC region and specifically in Indonesia. Our Forensic leader has 40 years of experience as a fraud and corruption investigator with more than 10 years experience in Indonesia and is considered a leader in the field

• Clients have included both state owned oil companies and international oil companies operating here and in other Asian locations

• BDO understands the complexities of the FCPA, UKBA and other local and international ABC statutes, rules and regulations and can assist clients in understanding what their current level of exposure is and recommend ways to mitigate these risks and deal with existing issues

• BDO will apply globally recognised standards to test the levels of compliance and vulnerability within the organisation and prepare an ABC risk mitigation plan

FORENSIC SERVICE Anti-Bribery & Corruption (ABC)

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• BDO assists clients in evaluating allegations of fraud or other wrongdoing involving management, employees, or third parties

• We combine accounting, investigative, financial, technology, and industry expertise to respond rapidly and thoroughly to a variety of allegations

• Our Forensic leader has 40 years experience in the field across the APAC region with extensive experience in Indonesia over the past 10 years and is considered a leader in the field

• We work in a collaborative manner with clients to ensure that the client is involved in the process of the investigation to ensure the outcomes meet expectations and to facilitate a transfer of knowledge from our team to yours

• We deploy the relevant resources and tools to achieve the required outcomes seeking guidance from the client and legal counsel where relevant

• We understand the law of criminal procedure in Indonesia and other jurisdictions to ensure that the results of the investigations can stand legal challenges

• Our team is fluent in Bahasa Indonesia, several regional Indonesian languages, English, Mandarin and competent in several other languages. We can of course call on our BDO network firms to support where other languages are required

FORENSIC SERVICE Corporate Investigations

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• Business today is driven by and relies heavily on data, whether that data is internal to the organisation or external from the public domain and other sources, no business can make good business decisions without reference to good data

• In recent times the phrase “Big Data” has come to symbolise the large volumes of data captured by business in aspects of operations whether that be Accounts Payable, Receivables, HR/Payroll, Production, Logistics, Inventory, Procurement, and client data

• BDO utilizes the skills and experiences of its Forensic professionals using world’s best practice Data Analytics tools and techniques to address data related issues for clients.

• BDO can quickly and accurately analyse client data with a focus on the issues at hand as well as the capacity to add value through the identification of unexpected findings from the data

FORENSIC SERVICE Data Analytics

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• Our forensic team are trained in a variety of analytic tools across a range of data sources

• Our analysis regularly finds “hidden” or “lost” transactions many of which are found to be suspicious

• Other common findings of Data Analytics also regularly includes things such as double payments to vendors or staff, overpayments and conflicts of interest between staff or management and vendors

FORENSIC SERVICE Data Analytics (cont’d)

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• BDO Forensic has state of the art technology and a highly experienced team in the areas of computer forensics, eDiscovery and CyberCrime

• Our team of experts uses internationally recognised tools and processes to forensically collect, store and analyse data from personal computers, laptops, tablets, handphones, digital storage devices and other electronic systems

• The BDO Digital Forensic team has the capacity to forensically image multiple devices simultaneously to minimise the impact on the business operations and to allow discreet collection where required

• Our team works for an advises a wide range of Indonesian and international clients as well as other law enforcement and regulatory bodies on these issues

FORENSIC SERVICE Digital Forensics / Cybercrime

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• We can also advise clients on how to deal with unintended discoveries though the forensic process such as materials on corporate hard drives that are sensitive or inappropriate

• Our advice to clients on all investigations or reviews is to collect the data first, collecting the data forensically is intrinsically important to the later success of the matter. Data can easily be lost or destroyed if it is not collected at the first opportunity

FORENSIC SERVICE Digital Forensics / Cybercrime (cont’d)

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• Drawing upon experience from a diverse set of disciplines and backgrounds, BDO’s professionals combine the highest standards of technical skill and knowledge to gather, analyse and evaluate evidence

• From litigation support, to dispute resolution, to testifying services, BDO supports clients through every phase of litigation

• Backed by one of the largest international accounting and consulting networks, our accessible, partner-led teams are uniquely poised to help clients navigate disputes efficiently – wherever they may be

• Our Litigation, Arbitration and Dispute Advisory services include:

• Damages Analysis

• Post-acquisition Disputes

• Shareholder and Partner Disputes

• Construction Claims Litigation

• Intellectual Property Litigation

• International Arbitration

FORENSIC SERVICE Dispute & Litigation Support

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• Business Partners / Vendors

• Knowing who you are doing business with is essential to avoid risks associated with fraud, corruption and conflicts of interest

• BDO Forensic has years of experience across APAC and particularly in Indonesia in performing due diligence searches and investigations into business partners and vendors

• Our process includes performing a forensic analysis of the documentation provided by the third party as well as performing searches of relevant government records and publicly available sources such as courts, bankruptcy and media / social media sites for information relevant to the third party and its principals and management

• In some cases we may even recommend field inquiries to gain a deeper knowledge of the reputation of the third party

• BDO uses a proven process and methodology to ensure that the client has as clear an understanding of the third party as possible to assist in making decisions as to whether the client wants to engage or continue to engage with the third party

• BDO also has the capacity to perform due diligence investigations and reviews off-shore either using our own resources or through the BDO network

FORENSIC SERVICE Due Diligence

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• Pre-Employment

• It is generally accepted that at least 80% of job candidates manipulate their CV in some manner when applying for a role

• Sometimes the manipulation can be deliberately dishonest, incorrect or missing key aspects of the candidates career. In others the candidate merely embellish their career achievements

• We strongly recommend clients perform pre-employment screening of all new candidates but particularly of those for senior or sensitive positions.

• The depth of the research will depend on the role being applied for and the seniority of the candidate. The cost of hiring the wrong person can be significant and damaging to the reputation of the company

FORENSIC SERVICE Due Diligence (cont’d)

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• Companies are often concerned to establish if their financial and other internal reporting is accurate or may have concern about one area of operations which may require deeper analysis

• BDO will deploy a process commonly known as a Forensic Audit to assess the issues identified by the client, we do this using a combination of skilled and experienced Forensic Accountants and technology

• A forensic audit looks at 100% of the available data using the experience of the forensic accountants and investigators to identify areas of concern (Red Flags). Typically a normal audit using a sampling method and looks at between 10% and 20% of the data only

FORENSIC SERVICE Forensic Audits / Forensic Accounting

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• Fraud presents a significant risk to business

• Fraudulent acts can take many forms and includes theft of tangible assets such as machinery or equipment, misappropriation of cash, embezzlement of funds, fraudulent financial statements, conflicts of interest leading to procurement or vendor fraud, theft of confidential information, and misuse of intangible assets such as intellectual property

• The impact of fraud can have far more serious consequences than a “hit” to the bottom line, or fines and penalties from regulators

• Fraud can also have a catastrophic impact on a companies reputation, its brand, its ability to hire and retain good people, and its market share and shareholder value

FORENSIC SERVICE Fraud Risk Reviews

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We assist our clients by:

• working closely with boards, management and business units to undertake a thorough review and analysis of the current state of the fraud risk management framework to produce a Capability Maturity Model for fraud risk

• reviewing existing policies and procedures and developing fraud risk management frameworks (policies and procedures)

• undertake detailed fraud risk assessments across all areas of the business producing a fraud risk profile of risk concerns requiring remediation

• where relevant, support fraud risk assessments with a data analytics approach (e.g. procurement or payroll)

• assisting clients to develop fraud mitigation plans, advising on control improvements and ethical conduct approach

• preparing and delivering fraud risk training programs targeted at different levels

FORENSIC SERVICE Fraud Risk Reviews (cont’d)

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• Companies affected by major setbacks face many obstacles – receiving appropriate and timely insurance payments shouldn’t be one of them

• BDO’s Forensic Insurance & Recovery professionals focus in the quantification and compilation of complex insurance claims in several areas:

• Property and business interruption

• Fidelity / employee dishonesty

• Product recall

• Directors & officers

• Cyber security breaches

• BDO works on behalf of policyholders, providing an independent and objective perspective. Our long history of preparing fair and timely claims is respected by underwriters, adjusters, and their accountants, and has allowed us to recover more than $5 billion for our clients

FORENSIC SERVICE Insurance Claim Support

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• Our fees are reimbursable under the standard Professional Fees / Loss Adjustment Expenses provision of commercial insurance policies. (The Professional Fees / Loss Adjustment Expenses provision is not provided in every commercial property policy. Each policy would need to be reviewed independently to understand if this coverage is present.)

• As one of the world’s largest accounting and consulting networks, BDO has substantiated and prepared some of the most complex property and business interruption insurance claims in both the United States and abroad. Events we have worked on include the terrorist attacks of September 11, Hurricanes Katrina and Sandy, the Thailand floods and the Japan earthquake / tsunami

FORENSIC SERVICE Insurance Claim Support (cont’d)

For more information please contact: PT BDO KONSULTAN INDONESIA

Peter Coleman (pcoleman@bdo.co.id) Aprilino Adilaksono (Nino), (aadilaksono@bdo.co.id)

BDO Indonesia Prudential Tower 16th-18th Floor Jl. Jenderal Sudirman, Kav. 79 Jakarta 12910, INDONESIA Tel : +62-21 5795 7300 Fax : +62-21 5795 7301 www.bdo.co.id

About BDO

BDO is the one of the largest global network of public accounting, tax and advisory firms which perform professional services. These firms have representation in 154 territories, with 64,300 people working out of over 1,400 offices worldwide.

BDO member firm in Indonesia dated back to 1992 when Drs Richard B Tanubrata was the Managing Partner of KAP Drs RB Tanubrata, a public accountant firm that was founded in 1979.