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ARTICLE 1 |
DEFINITIONS |
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ARTICLE 2 |
REQUIREMENTS TO JOIN AS IR |
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ARTICLE 3 |
PROVISIONS RELATED TO IR |
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ARTICLE 4 |
PROVISIONS RELATED TO SPONSOR |
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ARTICLE 5 |
PROVISIONS RELATED TO PURCHASE |
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ARTICLE 6 |
PROVISIONS RELATED TO CANCELLATION (COOLING OFF PERIOD) |
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ARTICLE 7 |
PROVISIONS RELATED TO BONUS |
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ARTICLE 8 |
RIGHT AND OBLIGATION OF THE COMPANY |
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ARTICLE 9 |
RIGHT AND OBLIGATION OF IR |
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ARTICLE 10 |
PROHIBITED ACTIVITIES |
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ARTICLE 11 |
PENALTY FOR VIOLATION |
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ARTICLE 12 |
TERMINATION OF MEMBERSHIP |
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ARTICLE 13 |
PROVISIONS RELATED TO RIGHT TRANSFER |
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ARTICLE 14 |
SATISFACTION GUARANTEE |
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ARTICLE 15 |
BUY BACK GUARANTEE |
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ARTICLE 16 |
PROVISIONS RELATED TO TAX |
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ARTICLE 17 |
WEBSITE |
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ARTICLE 18 |
PROVISIONS RELATED TO THE OTHER DIRECT SELLING COMPANIES |
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ARTICLE 19 |
CLOSING |
ARTICLE 1
DEFINITIONS
1. COMPANY means the limited liability company organized and existing under the laws of the Republic of Indonesia under the name of PT. QN INTERNATIONAL INDONESIA (hereinafter referred to as QNII), having its registered address at Sona Topas Tower, 15th Floor, Jl. Jend Sudirman Kav. 26.
2. PRODUCT means all Products distributed by the Company under the "QNET” trademark.
3. INDEPENDENT REPRESENTATIVE (abbreviated as IR) means a person joining as a marketing member of QNII network through a sponsor registered with the Company. IR is not an employee of Company and has no employment relations with the Company.
4. SPONSOR means a person registered as IR and may enroll another person as the new IR in his team.
5. MARKETING PLAN (Marketing Plan) means the Compensation System developed by the Company as a form of compensation to be received by IR in consideration for forming the Multi Level Marketing network.
6. Code of Ethics means this regulation, a set of rules binding and guiding the IR in the QNII business after the said IR is officially registered as a QNII IR.
7. BONUS means prescribed amount of fund paid by the Company to IR, in consideration for his/her work, subject to the provisions established by the Company in the Marketing Plan.
8. Referral Bonus means the bonus calculated from the Rupiah in your direct downline purchase to accumulated purchase.
9. Binary Bonus means the married couple bonus given if the married couple reaches the accumulated omset on your right and left line.
10. BANK means the bank selected by the Company as an IR managing the payment process of IR Bonus.
11. ‘IR’ NUMBER (IR number) means the QNII account number held by IR when joining the Company.
12. RANK means the name given to indicate the performance level achieved by IR.
13. INHERITOR means the IR inheriting his/her membership including the rights at the time of his/her death.
14. HEIR means the IR receiving the inheritance right of membership and the rights from the Heir.
15. Inheritance means QNII membership of deceased QNII IR which is inherited to the heir.
16. Prospective QNII IR means the person joining and filling out the Registration form but not officially registered as a QNII IR.
17. Guarantee Period means the term fixed by the Company where prospective IR will obtain his/her right to participate as the member of the Company which may include Product, Commission or Facility from the company on the following terms and conditions.
18. Membership Network means all IRs conducting QNII business and in the related IR group.
19. Consumer means the IR of Product user and end buyer of QNII Product for own use.
20. Up line means IR “upline” or his/her upline and so forth to the top.
21. Down line means IR below the Up Line, his/her downline and so forth.
22. Bank Account means IR account number with the bank stated in the IR Registration form and shall be used as a means of Commission payment.
23. IR application Form means the filling form made available by the Company at the Website of the Company to be completely and correctly filled out by the prospective IR prior to being admitted as an IR.
24. Sponsor Line means the upline sequence consisting of IR, sponsor or up line of the IR, sponsor or his/her upline and so forth.
25. Commission means prescribed amount in rupiah currency given by the Company to IR achieving certain conditions subject to the terms and conditions set by the Company.
26. Starter kit means guidance package supplied by the Company to the prospective IR or New IR outlining the provisions of QNII direct selling.
27. Governing law means the laws of the Republic of Indonesia.
ARTICLE 2
REQUIREMENTS and PROCEDURE TO JOIN AS IR
1. Requirements to join as IR:
a. Indonesian citizen at minimum age of 18 years old.
b. Have valid RIC as a proof of identity.
c. Legally competent.
d. Agree to comply with Code of Ethics.
e. Filling out the Registration form.
f. Pay registration fee in the amount of IDR,150,000.00 (one hundred fifty thousand rupiah), and receives Merchandise which includes shirt, stamp and STARTER KIT as a guideline prepared by the Company to IR which contains Registration form, Code of Ethics, Marketing Plan, Product Catalog, price list, Company Profile and other starter kit.
2. Each prospective IR shall fill out the Registration form and referenced by a Sponsor. Registration form other than in the form of filling out the identity of the prospective IR, on the following conditions:
a. Name of IR must be the same as that stated in the Bank to be submitted for fund transfer of Commission;
b. If the name of IR in the Registration form is different from that stated in the receiving Bank, the IR must enclose the statement letter over a duly stamped paper;
c. If the data of Bank, Address or Sponsor are incomplete, the Company shall have the right to refuse the IR membership.
ARTICLE 3
PROVISIONS RELATED TO IR
1. The Company shall have the full authority to evaluate, accept or refuse membership of a person with or without any reason provided.
2. If the Company accepts the application for membership of a person, the IR shall abide by the Code of Ethics.
3. Each person is only permitted to have one IR Number. Company has the right to revoke the IR membership, if the Company discovers that IR has multiple IR Number. In such case, the Company shall only keep the first IR Number entered in the database of the Company.
4. If a married couple wishes to join as IR, they must be registered as a unity and shall only be entitled to have one IR Number.
5. A person may join as IR if there is a sponsoring IR. In the case the prospective IR is not known to the sponsoring person, the Company shall have the right to determine who will sponsor the said prospective IR tersebut.
6. The term of membership shall be 12 months and must be renewed annually, unless voluntarily terminated by IR or forcefully terminated by the Company or other party claiming to have such right. Renewal of membership may be given free of charge if IR has purchased a minimum of 50 BV prior to the expiration of his/her term of membership.
7. Company has the right to terminate the membership of a person if IR is engaged in any act which may bring the company into disrepute and harm the interest of the company, especially soliciting or inducing IR from other network to run other marketing network business.
8. Loss of membership shall automatically cause loss of right of a person of Bonus from the existing network.
9. IR who is resigning or whose membership is terminated may re-join as the new IR in different network position and Sponsor Line from the previous one with a waiting period at minimum of 6 (six) months as of resignation or removal date.
ARTICLE 4
PROVISIONS RELATED TO SPONSOR
1. Each IR has the right to become the Sponsor of another person interested in joining as IR of the Company.
2. If an IR becomes a Sponsor of another person and approved by the Company, the Sponsoring IR shall receive Bonus.
3. Prior to becoming a Sponsor IR, he/she must provide complete and correct explanation to the prospective IR. IR interested in becoming Sponsor shall not provide incorrect or misleading information related to the Product or Marketing Plan.
4. If there is more than one IR claiming as the Sponsor of a new IR, the Company has the right to determine among them IR entitled to become a Sponsor.
5. After an IR becomes a Sponsor, he/she shall have the obligation to provide guidance IR. Guidance includes general explanation about the Product, Marketing Plan, Bonus and matters related to the success in building Multi-level marketing. If the sponsoring IR is not fully informed of the content to guidance, the Company will provide training facility free of charge.
ARTICLE 5
PROVISIONS RELATED TO PURCHASE TRANSACTION
1. A purchase transaction by IR shall be considered as effective if the payment has been received by the Company.
2. If a purchase transaction is considered as effective, the Company shall deliver the Product purchased, delivery of Product shall be made on the same day, if the order and payment is received by the Company no later than 16:00 WIB. The Order received after such hours shall be delivered on the following business day.
3. If for any reason whatsoever, a person makes payment through IR known to it, the Company shall not be responsible for such payment tersebut before the fund is received by the Company.
4. An IR shall not purchase or solicit other persons to purchase the Product excessively beyond the need for own use and his/her customers.
ARTICLE 6
PROVISIONS RELATED TO CANCELLATION
(COOLING OF PERIOD)
1. Company shall provide grace period for 10 (ten) business days as of registration date to each IR to continue or cancel his/her membership as an IR by returning the starter kit sale of (starter kit) received in initial condition.
2. If the IR canceling his/her membership fails to return the starter kit received in its original condition, the Company has the authority to fix the amount for refund.
3. IR canceling his/her membership within 10 (ten) days after the Registration shall submit written application via email [email protected] by giving information on name, IR Number and registration date and reason for Cancellation.
ARTICLE 7
PROVISIONS RELATED TO BONUS
1. Subject to the MARKETING PLAN, the Company shall pay Bonus to IR based on the achievement demonstrated.
2. Bonus payment shall be made by the company on every Thursday each week.
3. All bonus payment shall be managed by Bank who is the Company IR and paid on banking day.
4. If the day for bonus payment falls on public holiday, the Company shall pay the bonus on the following business day.
5. To ensure to smooth bonus payment, IR must have account with the bank who is the IR of the Company. All consequences arising as a result of non-fulfillment of the obligation to open the account with the Company IR Bank shall be for the account of IR.
6. In the case of Divorce of the married couple who is an IR, such married couple shall notify the Company that they wish to share the Bonus by a Mutual Agreement and/or Court Decision of their joint assets. The Company shall be indemnified and released from and against any and all claim, whether material or immaterial, upon request for sharing of bonus and Company has the right to defer the bonus in the case of dispute until Mutual Agreement and/or Court Decision on sharing of bonus is received by the Company.
ARTICLE 8
RIGHT AND OBLIGATION OF THE COMPANY
I. RIGHTS OF THE COMPANY
1. Company shall have the right to deduct the invoice due for each compensation payment, bonus or other benefits to be paid to IR.
2. Return of product, refund or reimbursement may retroactively affect the compensation.
3. Correction and/or adjustment shall be based on the re-calculation of discount, bonuses and level status.
4. Company shall have the right to change the price list and the product and place official announcement upon such change. Company shall not provide compensation, bonus or other benefits for each loss sustained as a result of change in price, Products and non-availability of Product.
II. OBLIGATION OF COMPANY
1. Company shall provide guidance and training to IR. The Company shall provide guidance, training, and motivation for the IR aligned with the Marketing Plan (Marketing Plan) and Code of Ethics in the manner not in conflict with the practices established by the Company and applicable legislations as follows:
a. Guidance for New IR (on Product, Marketing Plan and Code of Ethics) daily and during working hours at the office PT. QN International Indonesia.
b. Training Motivation & Guidance Network on every Saturday.
2. Provide clear and correct information in connection with the Product to be marketed by IR, as to the content, benefit, use directions and storage method of Product and other related information.
3. Pay compensation, reward, recognition, bonus and other benefits available to and achieved by IR.
4. Provide satisfaction guarantee of the Product and return and replacement of Product due to non-conformity of Product as presented.
5. Plan and perform IDR Development program.
6. Provide Starter kit (Starter Kit) to IR after receiving payment and correct information on application for Registration.
7. Submit Product Registration to the relevant governmental institutions.
ARTICLE 9
RIGHT AND OBLIGATION OF IR
I. RIGHTS OF IR
a. IR shall have the right to receive quality product from the Company.
b. IR shall have the right to receive financial commission in the form of Bonus from the Company in consideration for the sale and network guided aligned with the Marketing Plan established by the Company.
c. IR shall have the right to receive adequate training, explanation and information from the Company on Product and Marketing Plan.
d. IR shall have the right to receive equal treatment to other IR in accordance with performance level demonstrated.
e. IR shall have the right to request tax withholding slip for the bonus received from the Company.
II. IR OBLIGATION
a. IR shall carry out guidance, training, and motivation for other IRs sponsored in the manner cara aligned with the rules set by the Company.
b. IR shall fully read, understand and comply with all Code of Ethics and other rules issued by the Company.
c. IR shall behave politely, sympathetically, honestly in the course of direct selling.
ARTICLE 10
PROHIBITED ACTIVITIES
1. IR shall not engage in any direct selling which deviates from the rules set by the Company which include:
a. act for and on behalf of the Company, represent the Company to enter into legal commitment with other party or act as if it were the representative of the Company.
b. claim to have control of sale territory sale on a monopoly.
c. produce any starter kit which includes image, visual, demonstration aid in the course of direct selling without the prior written permission from the Company.
d. carry out sale of the Product below the price set by the Company.
e. induce or solicit IR from other network to enter one network of direct selling and or engage in abusive, offensive act or threaten other IRs.
f. provide information on a personal assumption of the Product and/or Marketing Plan established by the Company to public, which information is conflicting with the policy and official publications of the Company.
g. carry out cross sale among the Sponsor Line. IR must purchase all Products and aid tools from IR in one Sponsor or direct line of the Company.
h. carry out export/import of Product to certain country or from certain country without the permission from the Company.
i. carry out sale other than through direct selling, such as sale through market place, retail store, pharmacy and the like.
2. All consequences as a result of breach of the prohibition above shall be for the personal account of IR, and the Company shall have the authority to impose penalty in accordance with policy of the Company.
ARTICLE 11
PENALTY FOR VIOLATION
Penalty for violation by IR will include:
a. Issuance of 1st Warning Letter up to 2nd Warning Letter.
b. Suspension in the form of ban from direct selling within the period determined by the Company.
c. Deferment of Bonus within the prescribed period and the Company shall be under no obligation to give compensation of any kind.
d. Removal or cancellation of IR membership without any compensation.
ARTICLE 12
TERMINATION OF MEMBERSHIP
1. IR or Company may terminate IR membership unilaterally at any time and without any reason necessary by prior written notice no later than 10 (ten) business days to the other party. IR shall not sell the product owned Company after IR receives or delivers notice of termination of IR from or to the Company.
2. IR membership expires upon written notice from the Company the following conditions shall apply:
a. Court Decision against IR to be enforceable within 30 days pending the settlement or payment or appeal decision; or
b. Receiver/ curator or administrator or other official appointed by Court or relevant authority or seizure or confiscation of substantial amount of assets or property of IR or control of affairs and obligations to be fulfilled; or
c. IR engages in fraud or dishonest act which causes IR to be accused and declared as guilty for crime or if IR is involved in any act which, in the reasonable opinion of the Company, prejudicial to the interest of the Company; or
d. IR acts in violation of the terms and conditions of this Code of Ethics, or fails to comply with or follow the instructions, rules or regulations of the Company (whether oral or written); or
e. IR fails to participate in the training, production, persistence or other requirements related to the appointment of IR of this Code of Ethics established by the Company or required by law, statute legislations, regulations, codes and guidelines of governmental institutions from time to time.
f. Company shall consider IR as not complying with the obligations set forth in this Article in particular and other obligations as applicable or set forth in this Code of Ethics in general.
g. IR is known to be committed fraud.
ARTICLE 13
PROVISIONS RELATED TO RIGHT TRANSFER
1. Membership a person at the Company is inheritable.
2. In the case of death of IR, the membership and Bonus may be inherited to the heirs if he/she served upon the Company, legal documents evidencing that he/she is the legal heir of the IR concerned.
3. Heir replacing the position of the deceased IR, he/she must comply with requirements set by the Company among others:
i. Heir is not registered as an IR
ii. Fill out the form made available by the Company
iii. Enclose the certificate of death IR validated by the relevant authority
iv. Enclose the statement of heir issued by the relevant authority
v. Enclose the statement from other heirs if any, stating the consent of the transfer of business.
4. If the IR wishes to transfer his/her membership not caused by death, but elect to transfer the right in the business, the IR shall prepare a statement of release to the Company from all possible consequences and Statement letter of non-rejoining.
ARTICLE 14
SATISFACTION GUARANTEE
1. Company shall provide satisfaction guarantee to IR by delivering the Product at least 3 (three) months prior to the term of expiration.
2. Within 7 (seven) days after the purchase, Company also shall receive and replace the IR with replacement product, if the Product received by IR contains manufacture defect.
3. Return Procedure of Satisfaction Guarantee:
Company shall provide grace period up to maximum of 7 (seven) days to IR to return the Product in the case of non-conformity of the Product with different packaging, non-conforming nutrition content, quantity of unit in the following procedure:
a. The return period of 7 (seven) days upon date of purchase and/or notice in writing to the Company.
b. Company shall carry out verification on the Product and proof of purchase.
c. Return of the Product not from manipulation or intentional damage or counterfeiting.
d. Enclose the original product purchase form.
e. Enclose the product exchange and return form completed.
f. Replacement of product or refund (if the Product desired is not available) will be made on the same day on condition that IR or his/her assigns is directly present at the office of the Company. As for delivery of return product, the Company shall deliver same at minimum of 2 (two) business days after the verification.
4. Provide compensation and/or replacement for loss as a result of use and consumption of product and/or services traded as a result of fault of the Company per agreement.
5. This guarantee shall not apply to the Product intentionally damaged, misused or stored at incorrect place (not in accordance with the applicable provisions such as storage of Product at placed directly exposed to sunlight).
ARTICLE 15
BUY BACK GUARANTEE
1. Company guarantees the buyback of product, promotional materials (brochure, catalog, or leaflet), and starter kit in merchantable condition at price equal to the initial purchase price by IR to the Company less administrative charge at maximum of 10% (ten percent) and the amount of each benefit received by IR related to the purchase of product, if the Seller resigns or is removed by the Company.
2. Company shall buyback the product described in the above clause as purchased from the Company on the following conditions:
a. The Product having expiration minimum remaining 6 (six) months prior to the expiration, not opened yet, in merchantable condition and intact packaging.
b. The submission period is 7 (seven) days upon notice date of removal of membership or resignation from membership.
c. Return of Product not from manipulation or intentional damage or counterfeiting.
d. Enclose the original product purchase form.
e. Enclose the product exchange and return form completed.
f. Company shall deduct the bonus and administrative charge and delivery cost at 10% of the price stated in the invoice.
3. Payment shall be made within 30 (thirty) days as of submission by IR to enable the Company to verify the product received.
ARTICLE 16
TAX
Company shall withhold value added tax (PPn) and income tax (PPh) on all transactions in the Company in accordance with applicable legislations in Indonesia.
ARTICLE 17
TRAINING AND GUIDANCE
1. Training provided by the Company includes:
a. Open Plan, event facilitated by the Company to introduce on QNII business opportunity to the public while assisting IRs unable to deliver individual presentation. This event is organized regularly every month on the first week each monthly, free of charge at the Head Office. This event is open for all lines.
b. Business Orientation, training for QNII IRs newly joining for improved product knowledge, marketing plan, selling method, and business method of QNII. This event is organized once a week on a monthly basis, free of charge at the Head Office. This event is open for all lines.
2. Guidance to be delivered by the Company includes:
a. New IR Meeting, guidance program for the starters in the QNII business. One full day guidance organized by the Company to prepare the starters to have entrepreneurship mindset and basic skills in selling the Product or sponsoring. This event is organized once in two months and free of charge. No requirements for rank qualification to participate in this guidance.
b. Entrepreneurship Mindset, a guidance program for all QNII to provide better services to all IRs in the network, while providing reward to achieving IRs. This event is organized three times in a year at the Head Office and free of charge.
ARTICLE 18
WEBSITE, SOCIAL MEDIA AND
INTELLECTUAL PROPERTY RIGHT
1. Each IR is responsible for maintaining the confidentiality of login IR namely Username and password.
2. Website, Social media linked to the Company prepared by IR shall not:
a. post exaggerating and incorrect claim on the product, Marketing Plan and bonus/Commission.
b. act in such way which may represent the website and social media is owned and or managed by the Company.
c. use Company name and product.
d. use Company logo.
e. an IR shall not post link of any web site without the prior consent.
f. Not to post offer selling or outsourcing product or services in contravention with the governing law of Indonesia (narcotics, firearms and drugs) and matters related to Ethnicity Religion, Race and inter-group relations.
g. Not post image/foto infringing the legal copyright, patent, trademark or intellectual copyright of the other party.
h. Website developed by IR must be registered with the Company and all contents related to the promotion (outside official promotion made by the Company) at the website IR shall be for the account of IR.
3. Website prepared by IR must comply with the following conditions:
a. Not post content or link which contains: Online business, Reseller Program, Affiliate Program or other Multi Level Program.
b. Include Disclaimer (warning) that the website is not the property of the Company, managed by IR so that the Company is indemnified from and against any lawsuit.
c. Not carry out sale outside the direct selling system.
d. Not use online payment.
4. It is strongly prohibited to post words less pain more gain, just sit and get money or similar expressions appealing but with expressions that success can only be achieved through hard work, success needs time, capital, honesty and integrity.
5. It is strongly prohibited to post content using use words, image or text which are abusive or offensive, disruptive to individuals or groups, containing ethnicity, religion, race or inter-relations, or which contain pornography or site porn and gambling web link.
6. IR shall not counterfeit and manipulate profile identity or offer content which may lead to fraud or others which are prejudicial to the other party.
7. IR shall not misuse the facilities made available Company for any activities which may adversely affect other IR, visitors or web site manager of the Company.
8. Use of company facilities by IR is the full responsibility and risk of IR. Misuse of facility, stealing of data or any attempt to penetrate network system of Company constitutes an illegal act.
9. Copyright is protected by law. It is prohibited from excerpting, copying any part or all contents on the web site of the Company in any form whatsoever and for any interest without the permission of the web site manager.
ARTICLE 19
PROVISIONS RELATED TO THE
OTHER DIRECT SELLING COMPANY
1. Company shall not dispute any IR/ leader /group leader to have business with other direct selling/MLM companies. However, it is prohibited from recruiting IR/ leader/ group leader of the Company, to join the such other direct selling/ MLM company.
2. IR leader/ group leader having network more than 100 persons is not permitted to join other direct selling or MLM Company, whatever the product, regardless as a IR, presenter, motivator, shareholders, commissioner or manufacturer of the products, to avoid negative view or defamation to him/herself or network. For those already registered as IR, presenter, motivator, shareholders, commissioner or manufacturer active at the Company above, the Company shall deliver letter through email, whether to continue career in the Company or elect to join another Company. If choosing to have career in the Company, he/she must prepare a statement letter and the Company shall have the right to upload the letter to the official website of the Company as a form of accountability of information to all networks.
3. Company is not competing in negative way with other Company, the Company is fully supporting the existence of other companies as one of the form of private responsibility in creating job opportunity and improving the living standard of the Indonesian people.
ARTICLE 20
CLOSING
1. This Code of Ethics applies to the direct selling company within the territory of the Republic of Indonesia.
2. All IRs entering into transaction in Indonesia shall comply with this Code of Ethics.
3. All disputes between IR and Company shall be resolved amicably, failing such amicable resolution, the dispute shall be referred to the Central Jakarta District Court.
4. In the case of modification/revision/renewal of this Code of Ethics, the Code of Ethics last issued by the Company shall prevail.
5. In the case of modification to the Marketing Plan, Code of Ethics, the Company must obtain approval from the Ministry of Trade.
6. In the case of modification to the Marketing Plan, the Company shall communicate same to IRs no later than 30 (thirty) days prior to the effective date of change.
