Integrated Insurance Program | PT Sapta Borneo Utama

Lender Protection

Program Objective

The insurance program is structured to protect lenders, investors, contractors and PT Sapta Borneo Utama against material project risks during development, construction, commissioning and operations.

Construction Phase

Construction & Commissioning

Construction All Risk (CAR)
Erection All Risk (EAR)
Third Party Liability (TPL)
Advance Loss of Profit (ALOP)
Delay in Start-Up (DSU)
Contractor plant, equipment and site material coverage

Operations Phase

Operational Coverage

Industrial All Risk (IAR)
Property Damage
Machinery Breakdown
Business Interruption
Stock, inventory and warehouse protection
Operational third-party liability

ESG Risk

Environmental & ESG Liability

Environmental impairment liability
Pollution and contamination response
Waste handling and emission-related liability
Community and third-party impact coverage
Carbon credit program liability review

Project Coverage Scope

Project Asset / Risk Area	Coverage Position	Purpose
10,000 TCD Sugar Factory	Covered	Physical asset, machinery, production and business interruption protection
60 KLPD Ethanol Plant	Covered	Downstream processing, plant operations and liability protection
30 MW Biomass Power Plant	Covered	Power generation asset, equipment breakdown and operational continuity
Core Plantation Area	Covered / Structured	Land development, site access and agricultural operational risk
Plasma 10,000–20,000 Ha Program	Structured	Farmer partnership, supply continuity, ESG and community risk framework
Carbon Credit Program	Structured	Validation, verification, environmental performance and contract risk support

Lender Protection Endorsements

Additional insured endorsement
Loss payee clause
Non-vitiation clause
Waiver of subrogation
Notice of cancellation, minimum 30 days
Assignment of insurance proceeds to Security Agent

Required Insurance Deliverables

Insurance broker appointment letter
Indicative insurance term sheet
Policy schedule and coverage matrix
Lender endorsement confirmation
Premium payment evidence
Annual renewal and compliance certificate

Claims & Proceeds Control

Insurance proceeds for material loss events should be controlled through lender-approved accounts, security agent instructions and project account waterfall arrangements, ensuring restoration, debt service protection and continuity of operations.

Insurance Placement Strategy

Layer	Coverage Structure
Primary Layer	Indonesian Insurance Market
Excess Layer 1	Regional Reinsurance Market
Excess Layer 2	International Reinsurance Market
Catastrophe Layer	Global Reinsurance Capacity

Indicative Insurance Limits

Illustrative insurance limits for lender review purposes. Final limits shall be determined by insurers, brokers, lenders and independent risk advisors.

Coverage	Indicative Limit	Purpose
Construction All Risk (CAR)	USD 442.5 Million	EPC Contract Value Protection
Erection All Risk (EAR)	USD 442.5 Million	Mechanical & Electrical Installation
Delay in Start-Up (DSU)	12 Months Gross Profit	Revenue Protection
Advance Loss of Profit (ALOP)	12 Months Gross Profit	Construction Delay Coverage
Third Party Liability	USD 50 Million	External Liability Protection
Industrial All Risk (IAR)	Full Replacement Value	Operational Asset Protection
Machinery Breakdown	Full Replacement Value	Critical Equipment Coverage
Business Interruption	12–24 Months	Cash Flow & Debt Service Protection
Environmental Liability	USD 25 Million	Pollution & Environmental Risk
Directors & Officers Liability	USD 10 Million	Management Liability Protection
Crime & Fidelity Insurance	USD 5 Million	Fraud & Employee Dishonesty

Coverage	Indicative Requirement
Construction All Risk (CAR)	Up to Full Project Replacement Value
Erection All Risk (EAR)	Up to Full Installed Equipment Value
Third Party Liability	USD 50 Million+
Delay in Start-Up (DSU)	12–24 Months Gross Profit
Property Damage	Full Replacement Cost
Business Interruption	24 Months Indemnity Period
Environmental Liability	Risk-Based Assessment

Lender Insurance Compliance Matrix

✓ Additional Insured

✓ Loss Payee Clause

✓ Non-Vitiation Clause

✓ Waiver of Subrogation

✓ Assignment of Insurance Proceeds

✓ Security Agent Rights

✓ Notice of Cancellation

✓ Reinstatement of Cover

✓ Reinsurance Disclosure

✓ Annual Insurance Review

Insurance Program Dashboard

Metric	Status
Program Status	Final / Published
Insurance Readiness	90%
Lender Compliance	Structured
Coverage Scope	Construction + Operations
Broker Strategy	Defined
Reinsurance Strategy	Defined

Recommended Insurance Market Participants

Role	Recommended Participant
Lead Insurer	Allianz Commercial Indonesia
Construction Insurance	MSIG Indonesia
Engineering Insurance	Sompo Insurance Indonesia
Industrial Asset Coverage	Great Eastern General Insurance Indonesia
Insurance Broker	Marsh Indonesia / Aon Indonesia / WTW Indonesia
Reinsurance Support	International Reinsurance Market

Project Coverage Summary

Project Asset	Coverage Status
10,000 TCD Sugar Factory	Covered
60 KLPD Ethanol Plant	Covered
30 MW Biomass Power Plant	Covered
500 Ha Core Plantation	Covered
10,000–20,000 Ha Plasma Program	Structured
Carbon Credit Program	Structured
Business Interruption	Covered

Lender Security Structure

Insurance policies are assigned in favor of the Security Agent acting on behalf of lenders. Insurance proceeds are directed through controlled accounts and project waterfall mechanisms to protect asset restoration, debt service obligations and project continuity.

Additional Insured Loss Payee Non-Vitiation Waiver of Subrogation Insurance Assignment Security Agent Project Finance

Document Control Information

Document Number	SBU-RISK-001
Document Title	Integrated Insurance Program
Version	Final v1.0
Status	Published
Classification	Institutional Use
Owner	PT Sapta Borneo Utama
Date	June 2026