For companies / organizations To All Related Companies / Organizations Subject : Collecting Donations to Establish Cikarang Japanese School Dear Sirs and Madams, First, we would like to express our sincere gratitude for your warm understanding and support for the administration of Jakarta Japanese School. On this occasion, we, the Jakarta Japanese School Committee, with regard to the establishment of Cikarang Japanese School, would like to ask for your support in the form of funds to cover the cost of construction of the school building, and also its operation. Therefore, please allow us to inform you about the collect donations which are described as follows: I. Background & Reason for the establishment of Cikarang Japanese School One of the biggest challenges of the Japanese community living in the eastern part of the Jakarta metropolitan area is the long commute and drive due to "chronic traffic jam". This has brought a heavy impact not only to expatriates but also to their families, as some have no other choice than to come alone, being made apart from their families who should be living together with them in the first place, and even if some are able to live under the same roof, parents could not afford their precious time to get together with their children, etc. Furthermore, in addition to the mental and physical burden, there are concerns about safety risk due to long drive. In such an environment where Japanese residents are saying "this is truly a grave concern for us right now”, in order to support the Japanese community in Indonesia, the Jakarta Japanese School Committee is working diligently towards opening the new school in April 2019, in order to enable us to operate both the current Jakarta Japanese School and the Cikarang Japanese School together, for the purpose of providing equal educational opportunities for Japanese people living in this country. II. About the donation request Towards the establishment of the Cikarang Japanese School, we have obtained permission from the Indonesian government for the school expansion. We also have made application on behalf of Jakarta Japanese School Committee for partial subsidy from the Japanese government in the construction of the school building. However, Japanese schools outside Japan have the characteristics of private schools based on the beneficiary payment principle including construction and maintenance funds. Therefore, establishment and operation of the school cannot be established without the understanding and cooperation of resident Japanese companies, organizations and individuals in the capital region of Jakarta. As the opening of a Japanese school in this area will greatly contribute to further advancement of Japanese companies, we humbly ask for your cooperation to the donation in consideration to the reasoning as mentioned in the above. III. Use of donations Donations will be used to establish the Cikarang Japanese School and its operation. We need to secure donations of approximately IDR 45 billion, which is based on the assumption that Cikarang Japanese School will achieve surplus balance in the sixth year after the establishment of the school. IV. Basis for donation request [Based on Capital and Based on Number of Expats] We request that the amount of donation to be the sum of the amount "Based on Capital” of the parent company / organization in Japan and the amount "Based on Number of Expats” of the company / organization. <Table of Donation Cost (JPY)> Based on Capital Based on Number of Expats Capital of Parent Company in Japan Number of Expats 100,000,000,000 yen or higher 5,000,000 yen 50 or more 5,000,000 yen 50,000,000,000 yen - 4,000,000 yen 40 or more 4,000,000 yen 99,999,999,999 yen 30,000,000,000 yen - 3,000,000 yen 25 - 39 3,000,000 yen 49,999,999,999 yen 20,000,000,000 yen - 2,000,000 yen 10 - 24 1,500,000 yen 29,999,999,999 yen 10,000,000,000 yen - 1,500,000 yen 7 - 9 1,000,000 yen 19,999,999,999 yen 5,000,000,000 yen - 9,999,999,999 1,000,000 yen 4 - 6 500,000 yen yen 1,000,000,000 yen - 4,999,999,999 800,000 yen 3 or less 200,000 yen yen Up to 999,999,999 yen 600,000 yen Up to 499,999,999 yen 400,000 yen Up to 99,999,999 yen 200,000 yen <Table of Donation Cost (IDR)> Based on Capital Based on Number of Expats Capital of Parent Company in Japan Number of Expats 100,000,000,000 yen or higher 645,000,000 IDR 50 or more 645,000,000 IDR 50,000,000,000 yen - 516,000,000 IDR 40 or more 516,000,000 IDR 99,999,999,999 yen 30,000,000,000 yen - 387,000,000 IDR 25 - 39 387,000,000 IDR 49,999,999,999 yen 20,000,000,000 yen - 258,000,000 IDR 10 - 24 193,500,000 IDR 29,999,999,999 yen 10,000,000,000 yen - 193,500,000 IDR 7 - 9 129,000,000 IDR 19,999,999,999 yen 5,000,000,000 yen - 9,999,999,999 129,000,000 IDR 4 - 6 64,500,000 IDR yen 1,000,000,000 yen - 4,999,999,999 103,200,000 IDR 3 or less 25,800,000 IDR yen Up to 999,999,999 yen 77,400,000 IDR Up to 499,999,999 yen 51,600,000 IDR Up to 99,999,999 yen 25,800,000 IDR *Based on the exchange rate at the end of July: IDR 129 / JPY [Based on Capital] This is the amount based on the capital of the parent company / organization in Japan. If there are multiple group companies in Indonesia belonging to the same parent company / organization (for example, a trading company), this “Based on Capital” amount will be applicable to only one of the local / group companies. * Overlapping donation from multiple companies will not be necessary. [Based on Number of Expats] This is the amount based on the number of Japanese expatriates at each respective company of the group in Indonesia. * Definition of “Expat” All Japanese nationals working in Indonesia (includes expatriates, local recruits) Includes trainees and long-term business trips of at least 1 year of residency. The maximum amount of donation will be 10 million yen per group / company. Example: The total amount of donation in case the capital of the parent company / organization is 60 billion yen, with group companies in Indonesia: company A (40 expats), company B (10 expats), and company C (7 expats) Company A: 8,000,000 yen (Based on Capital: 4,000,000 yen + Based on Number of Expats: 4,000,000 yen) Company B: 1,500,000 yen (Based on Capital: None + Based on Number of Expats: 1,500,000 yen) Company C: 1,000,000 yen (Based on Capital: None + Based on Number of Expats: 1,000,000 yen) Although the amount of donation according to the basis above should have been 10.5 million yen, we made the maximum donation to be capped at 10 million yen. Overpayment can be adjusted within group companies. * In principle, the basis mentioned in the above will be applicable to all donations. However, if it is difficult to donate under the above basis due to reasons such as location of the company, conditions for the child of the employee, etc., we will accept case-by-case consultation. V. Regarding qualifications for enrollment at Cikarang Japanese School Companies and organizations that contributed during the donation period can obtain qualification to enroll students to Cikarang Japanese School (Corporate Donor Qualification). (Children of employees of companies that had donated in accordance with the table of cost will be allowed to be enrolled to Cikarang Japanese School.) In addition, for companies and organizations which has joined Jakarta Japanese School Committee after April 2016, the following discount rates will be applicable to the amount of donation. <Discount rate> Fiscal Year 2016 (from April 2016 to March 2017) : 25% Fiscal Year 2017, First half (from April 2017 to September 2017) : 50% Fiscal Year 2017, Second half (from October 2017 to March 2018) : 75% Fiscal Year 2018 (from April 2018 to March 2019) : 100% VI. Regarding transfer of donation １． Transfer period Donation transfer period: From August 13th, 2018 (Monday) To February 28th, 2019 (Friday) ２． Transfer method There are two ways to transfer your donation. 1) JPY denominated transfer from Japan If the donation is sent from Japan, it will be treated as a donation to a "Specified Public- Service Promotion Corporation” designated by the Japan Overseas Educational Services (JOES). Therefore, in case of individual donor, it can be included as personal income deduction, and in case of corporate donor, it can be included in deductions separate from general donation (accounted as expenditure), in accordance with the Corporation Tax Act of Japan. 2) IDR denominated transfer within Indonesia Deduction is not possible under the Indonesian taxation law. ３． Regarding detailed procedures 1) Request to all companies and organizations In order to donate, please fill out the necessary items on the attached ① "Donation Report”, and send it by e-mail to the secretariat at the following address. <Addressee> Cikarang Japanese School Preparation Committee, Donation Subcommittee Email: [email protected] 2) Request to companies and organizations preferring to transfer in JPY denomination from Japan Submission of "Application Form for Donations in relation to Specified Donation Drive" Please fill out the necessary items on the attached ② "Application Form for Donations in relation to Specified Donation Drive", and submit it by e-mail, fax or post to the following address.