1. CNG/NGV Asia Pacific Forum
2nd Annual
CNG/NGV Asia Pacific Forum
The re-emerging of Indonesia’s CNG/NGV industry
Presented by:
Robbi R Sukardi APCNGI member and PT. Petross Gas director

2. CONTENTS :
The Past Story of Indonesia’s CNG-NGV industry
Current Developments
DKI Provincial Government Busway CNG Pilot Project
The Confronted Challenges and Success Factors for Indonesia’s Successful CNG/NGV industry future developments

3. The Past Story of Indonesia’s CNG-NGV industry
(1986 – 2005 )

4. MAJOR FACTS OCCURRENCE IN THE NGV INDUSTRY
Year
MAJOR FACTS OCCURRENCE IN THE NGV INDUSTRY
The Indonesia’s Government started the Energy Diversification and Conservation Program with promoting CNG as an alternative fuel and to endorse the Blue Sky Program
CNG as an alternative fuel for the transportation sector started to be commercialized by Indonesia’s state owned government company, Pertamina.
PERTAMINA, under the Indonesia's Government Regulation (UU no. 8/1971), is the state own company obligated to provide and distribute the supply of the national oil and gas consumption.
During the first start of this pilot project, about 300 taxi were converted to NGV.
Under the Ministry of Transportation decree no. 84 year 1993 elaborates on the use of CNG for public transportation particularly for taxis within the DKI Jakarta areas.
During this early stage, market growth and acceptance of NGV for CNG as an alternative fuel was slow due to the minimum deviation between CNG fuel price and the subsidized petrol fuel price.
CNG sale only represent less than 1% from the total consumption of oil fuel during this period.
Due to low volume of sales, many of the CNG station experience financial problems and even some had to close out their CNG pump station.
1998
On 18 May 1998, under the President Director of Pertamina decree letter No. 038/C0000/98-S3 set their new CNG retail price at Rp. 450/ple (petrol litre equivalent)
2000
2001
Number of NGV had reach its highest number recorded with 6,600 vehicles nationwide in year 2000.
Number of NGV dropped to estimated 4,700 vehicles in 2001 partly due to the high cost of the converter kits parts as well as the limiited number of CNG stations remain operational.
The number of CNG Station remain maximum operational in Jakarta was less than 10 stations.
The deregulation of the Oil & Gas industry with the new UU Migas 2001 was established.
2002
2004
22 November 2004, Pertamina set the new CNG sale price at their pump station at Rp. 1,550 /ple
The number of NGV dropped to the lowest to a low 600 vehicles in 2006.
WHAT HAPPEN ?
Slow development, in fact, can be said that not much had happen over the past 2 (two) decades for Indonesia’s NGV industry.

5. NUMBER NGV IN ASIA YEAR 2002
source data : angva

6. Current Developments
( 2005 – Today )

7. YEAR 2004 – YEAR 2005
The domestic oil production had shown a decline over the years (est. 1 million barrel per day)
Indonesia barely becoming a net oil importer country rather than an oil exporter country (national consumption at estimated 1,1 million barrel per day)
Continuous increase in the number of vehicles (on average 7% - 8% yearly);
The Indonesia’s Government reduced the subsidize budget for the nation’s petrol fuel (2005);
Increase of pollutant level from vehicle emission particularly in DKI Jakarta (third most pollutant city in world);
World’s oil price had shown increase and by mid year of 2008 the world’s oil price reached its highest point ever;
The Indonesia’s Government responded to this situation through endorsing alternative energy like bio-fuel and also increase CNG fuel for the transportation sector

8. YEAR 2005 – Government Policy & Regulation Events affecting the CNG Industry
Republic Indonesia’s Presidential Instruction (In. Pres.) Decree no. 10 year 2005 regarding national energy conservation and saving enactment.
Indonesia’s Ministry Mines & Energy Policy (Kep. Men.) no Year 2005 regarding the implementation procedural in national energy saving, in which in point 5 clause 2 of the decree specifically states on the endorsing CNG for the public transportation sector.
DKI Provincial Governor Instruction (Kep. Gub.) decree no. 77 year 2005 pertaining to the energy saving program in the DKI Jakarta Provincial area.
DKI Provincial Government (Per.Da) decree no. 2 year 2005 regarding the monitoring of air pollution in which article 20 mandates on the use of CNG on all public transportation and Government use transportation.

9. YEAR 2005 – Commercial Events affecting the CNG Industry
The upstream gas producer increased natural gas price from previously average at $2.2/MMBTU to around $5.00/MMBTU.
High cost of maintenance and limited NGV vehicles (estimated less than units in Jakarta remain operational) had cause many of the existing CNG station to incurred significant operational loss.
In June, subsidy for the nation’s petrol fuel was reduced significantly causing more than 100% increase in premium fuel and diesel fuel sale price in the market.
DKI provincial government mandate that all new buses for the plan’s 15 corridors of the Mass Rapid Transportation-Busway system to use dedicated gas engine fuel system.
Pertamina announce to allocate next year budget to revitalized the existing Pertamina’s station in DKI Jakarta area.

10. YEAR 2006 – Government Policy & Regulation Events affecting the CNG Industry
Based on the Indonesia’s President (In. Pres.) decree no. 5 year 2006 and through the Department of Mines & Energy, the National Energy Blue Print for was established in which partly signifies government enforcement to use alternative fuel other than petrol fuel for the nation’s fuel consumption.
The DKI government mandates that all 3 (three) wheel Bajaj vehicles will be replaced with the new environmental friendly CNG Bajaj.
YEAR 2006 – Commercial Events affecting the CNG Industry
On February 1st, Pertamina increased its CNG sale at all Pertamina’s pump station from previously Rp /ple to to Rp /ple, in which said considered as their economical price.
On March 2nd, the Department of Transportation launched a public relation program to promote the usage of CNG fuel for transportation in Pertamina’s CNG Station in Margonda, Depok.
On May 20th Indonesia’s President, Mr. Susilo Bambang Yudoyono, open a ceremony to promote and induce the use of NGV in Petross CNG fueling Station, which was DKI’s first dedicated CNG station for the busway program.
The Department of Transportation announced that they had allocated a budget to provide up to 4,000 converter kits to be distributed for the public transportation.
Pertamina’s director issued a directive letter no. 023/C00000/2006-S3 dated 31 July 2006 directing that the new sale price of CNG at Pertamina’s station to be Rp /ple.

11. 20 MAY 2006
20 May 2006 – Jl. Perintis Kemerdekaan Petross & Transbatavia pool bus
Indonesia’s President, Mr. Susilo Bambang Yudoyono, open the “Initiation Ceremony to Promote and Support the use of CNG Fuel for Vehicles”
”Let us together, with full support from the Governor, to accelerate the development of new CNG station infrastructure. This is needed to minimize the filling time then previously done before..... the government supports this CNG program and shall encourage natural gas price reduction, distribute free conversion kit, and reduction in electrical cost from PLN by ways of changing the tariff category for CNG pump station. In addition, we shall push for lower import tariffs and taxes for CNG applications, and reduction in toll fee of natural gas from PGN.” (Presidential speach script)

12. Year 2007 to Present – Government Policy & Regulation Events affecting the CNG Industry
DKI Provincial Government Decree no. 141 year 2007 regarding the mandate to use CNG for all public transportation and DKI’s Provincial Government vehicles.
Year 2007 to Present – Commercial Events affecting the CNG Industry
In 2007, the Department of Transportation conducted the first batch of Converter Kit tender to distribute and installed 1,755 units of converter kits for taxi’s within the DKI Jakarta area.
On February 21st, the re-launching program of NGV usage was held by the Department of Transportation and opened by the Vice President, Mr. Yusuf Kalla.
In 2008 and 2009, the Department of Transportation continue to promote CNG as an alternate fuel with distributing the another 1,200 units of converter kits for taxi’s in DKI Jakarta area, and plan an additional 1,000 units for small public transportation vehicles (Angkots) for the city of Bogor and another 500 for the city of Palembang.
The Mass Rapid Transportation Busway System in Jakarta now has around 329 CNG busses supporting the 7 operational corridors.

13. Current NGV Markets in Asia Pacific
Country
# of NGV
# of Stations
Dated 1
Pakistan
2,000,000
2,700
Dec 08 2
IR of Iran
1,215,593
764
Feb ‘09 3
India
821,872
402
Apr ‘08 4
China
400,000
1,260
July ‘08 5
Bangladesh
180,000
296
Nov ‘08 6
Thailand
141,335
310
Mar 09 7
Uzbekistan
47,000 43
Dec ‘07 8
Malaysia
42,000
120
Apr ‘09 9
Japan
36,345
327
Dec ‘08 10
Myanmar
25,802 44
Apr 09 11
Republic of Korea
17,123
121
June ‘08 12
Tajikistan
10,600 53 13
Kyrgyzstan
6,000 14
Singapore
3,443
Jan ‘09 15
Indonesia
3,079 16
Australia
2,453
146
Mar ‘07 17
UAE
305 18
New Zealand
283 19
Philippines 36
Feb ‘06 20
Vietnam
(Source: Asian NGV Communications & GVR magazines & Others) / PTT Presentation slides data report 13 13

14. YEAR END 2008 – DKI JAKARTA PUBLIC TRANSPORTATIONNo
VEHICLES TYPE
Total Vehicles
NGV
NON NGV % I.
Large Capacity Buses
1. Bus (Non-Busway)
4,540 - 0%
2. Busway (Cor. 1 – 8)
420
329 91
78%
II.
Middle Size Buses
4,979
III.
Vehicles
1. Angkot
6,746
150
6,596 2%
2. KWK
6,238
IV.
Bemo (APB)
1,096 V.
Taxi
24,256
2,360
21,896
10%
VI.
Bajaj
14,424
400
14,024 3%
VII.
Others
23,827
Jumlah
86,526
3,239
83,389 4%
(Source: DKI Jakarta Department of Transportation 2009 data report)

15. (Source: Asian NGV Communications & GVR magazines Aug ‘08 & Others) and adopted from PTT presentation slides

16. WHERE INDONESIA IN THE DEVELOPMENT STAGES
Master Planning
Commercialization
current ??
Pilot Programme
Market Development
Regulatory Enactment
NGV Developed
Public Relations
Mature Market

17. DKI Provincial Government Busway CNG Pilot Project

18. Mass Rapid Transportation Busway System as Solution
DKI’S JAKARTA TRANSPORTATION SECTOR CONDITION:
A continuous increase in the number of vehicle by 7-10% yearly.
An estimated 6 million vehicles in DKI Jakarta, which of the vehicles (1,2 mil people) enters from the outside Jakarta daily.
Around 669 of new car registration application are requested daily.
New road developments is very low (around 1% annum) compare to new vehicles.
The daily mobilization of vehicles in Jakarta reached 4,95 mil (motorcycles 53%, private vehicles 30%, buses 7%, and trucks 10%).
The ratio between Public Transportation and Private Vehicles is 98% to 2%.
85% of the usage of the road from vehicles are used by private vehicles.
Degradation and diminishing number of the public transportation.
(Source: DKI Jakarta Department of Transportation Report)
Mass Rapid Transportation Busway System as Solution

19. Bus TransJakarta using an environmental friendly fuel :
DKI JAKARTA ENVIRONMENTAL FACTS:
Considered as the Third World’s Most Polluted City in the World after Mexico City and Bangkok (Badan Lingkungan Hidup Dunia/UNEP)
67% of the pollution in Jakarta was due to the emission from vehicles. (UNEP)
A yearly estimated economic lost of Rp 12 trillion is lost due to high traffic jam, production time, and fuel evaporation (Yayasan Pelangi, 2003)
Bus TransJakarta using an environmental friendly fuel :
Compressed Natural Gas Fuel

20. PETROSS PERINTIS KEMERDEKAAN
NUMBER OF TRANSJAKARTA CNG BUSES (2008)
OPERATOR
CORRIDOR
# OF BUSES
CNG STATION FILLING
TRANSBATAVIA (TB) II 60
PETROSS PERINTIS KEMERDEKAAN
III 66
PETROSS RAWA BUAYA
DAVALTI DAAN MOGOT
JAKARTA TRANS METROPOLITAN (JTM) IV 27
PERTAMINA PEMUDA
JAKARTA MEGA TRANSPOLITAN (JMT) V
PPD DAAN MOGOT VI 31
VII 52
LORENA EKA SARI (LRN)
PRIMAJASA (PRJ)
VIII
PERTAMINA GANDARIA
TOTAL BUSES
329
CONSORTIUM IX
N/A X

21. : Operational : Non Operational CNG STATION PERTAMINA JL. PLUIT COR.
REMARKS I.
OPERATOR: JET
DISTANCE: 12,9 KM
BUS STOP: 20
II.
OPERATOR: TB
DISTANCE: 14.3 KM BUS STOP: 23
III.
DISTANCE: 14 KM BUS STOP: 14
IV.
OPERATOR: JTM
DISTANCE: 11.9 KM BUS STOP: 15 V.
OPERATOR: JMT
DISTANCE: 13.5 KM BUS STOP: 15
VI.
DISTANCE: 13.3 KM BUS STOP: 19
VII.
DISTANCE: 12.8 KM BUS STOP: 14
VIII.
OPERATOR: LRN & PJS
DISTANCE: 8 KM BUS STOP: 23 / CURRENT 17
CNG STATION PETROSS
RAWA BUAYA
CNG STATION PETROSS
JL. PERINTIS
CNG STATION DAVALTI
DAAN MOGOT
CNG STATION PERTAMINA
JL. PEMUDA
CNG STATION T ENERGY
PINANG RANTI
CNG STATION PERTAMINA
JL. PASAR MINGGU
CNG STATION PERTAMINA
GANDARIA
CNG STATION AKSARA
JL. HEK
: Operational
CNG STATION AKSARA
KMP. RAMBUTAN
: Non Operational

22. DKI JAKARTA'S CNG STATIONSNO
DKI JAKARTA'S CNG STATIONS
OWNER
CAPACITY
ACCESIBILITY
REMARKS 1
Jl. Sumenep, Jakarta Pusat
Pertamina
< 1000 m3/hr
Small Vehicles
Semi-Operational 2
Jl. Pemuda, Jakarta Timur 
> 1000 m3/hr
Large Vehicles & Busway
Operational 3
Jl. Raya Gandaria, Jakarta Timur 4
Jl. Raya Bogor, Jakarta Timur 
Non Operational 5
Jl. Ahmad Yani, Jakarta Timur
Swasta 6
Jl. Boulevard Timur, Jakarta Timur 7
Jl. Pluit, Jakarta Utara 8
Jl. Danau Sunter, Jakarta Utara 9
Jl. Kali Deres, Jakarta Barat 10
Jl. Daan Mogot, Jakarta Barat
Davalti 11
Jl. Warung Buncit, Jakarta Selatan 12
JL.Pasar Minggu, Jakarta Selatan 13
Jl. TebetTimur, Jakarta Selatan 14
Jl. Perintis Kemerdekaan
Petross 15
Rawa Buaya 16
Kampung Rambutan
Aksara
Awaiting Operational 17
Hek Kramat Jati 18
Tanah Merdeka 19
Pinang Ranti
T Energy

23. TRANSJAKARTA’s AVERAGE MINIMUM CNG CONSUMPTION
CORRIDORS KM
UNIT BUS
MIN. AVG. DAILY
AVG.TRIP/DAY
PLE/DAY
PLE/MONTH II
14.3 60 48 9
9,504
285,120
III
14.0 66
12,794
383,815 IV
11.9 27 29 11
5,816
174,468 V
13.5 39
7,290
218,700 VI
13.3 31 10
6,343
190,292
VII
12.8 52 38
8,231
246,942
VIII 8 30
3,692
110,769
 PLE
53,670
1,610,107
MMSCF
1.92
57.50
On average each bus consumed 1 ple of CNG for every 1.3 km – 1.5 km distance.
Estimated 50,000 – 60,000 ple consumed daily to support the busway’s operational.
Filling time is a constraint during the afternoon filling time as the buses usually filled at a certain similar given time so the buses can be in operational again during the busway’s peak hours ( and – 19.00)
Filling space is also a concern as each busses is 6 meters long and enters the station numbering on average 5 buses per batches.

24. TICKETING SALE FROM BUSWAY (@Rp. 3,500.-)
TRANSJAKARTA BUSWAY – DKI PAYMENT SCHEME
BUSWAY USERS
TICKETING SALE FROM BUSWAY 3,500.-)
SUBSIDY
BADAN LAYANAN UMUM (BLU)
TICKETS
REVENUE
BUSWAY OPERATORS ARE PAID BY JAKARTA’S BLU TRANSJAKARTA BASED ON KILOMETER RATE ACHIEVED PER MONTH
PT. JET
(KORIDOR I)
PT. TB
(KORIDOR II & III)
PT. JTM
(KORIDOR IV & VI)
PT. JMT
(KORIDOR V & VII)
PT. LRN
(KORIDOR VIII)
PT. PRJ
(KORIDOR VIII)
Pertamina Diesel Fuel
@ Rp. 4,300/ltr
Pertamina’s and Private CNG Stations
@ Rp. 2,562/ple

25. The Confronted Challenges and Success Factors for Indonesia’s CNG/NGV Industry Future Developments

26. What are Indonesia’s NGV Success Factor & Challenges?
SUCCES FACTORS
CHALLENGES
Availability of abundant natural gas reserves
Infrastructure
Pricing Policy
Availability of funds
Market Awareness & Acceptance
Industry & Regulator Body Support + + + + + +

27. Availability of abundant natural gas reserves
AVAILABLE
Energy fuel
2004 Production
Year Dimished
Total Reserve
Proven
Oil
Coal
Indonesia has the largest supply of natural gas among its South East Asia neighbor countries
In 2006 gas production was recorded at 8,280 MMSCFD.
In 2007, gas production increase to 8,901 MMSCFD of which 37% for domestic and 63% for export.
In 2009 is estimated that over 10,000 MMSCFD will be produce.
Source: BP Migas and Indonesia Petroleum Report and Department Mines & Energy Indonesia Energy Blue Print Report & 2009 Data Report

28. Infrastructure Infrastructure NOT ENOUGH & NOT WIDELY SPREAD
BLUEPRINT PENGELOLAAN ENERGI NASIONAL 2005 – 2025 Dept. ESDM

29. PRICING POLICY
Regulatory Basis: UU Migas 2001 vs Pertamina Pricing Policy?
The deregulation of the Oil & Gas industry in 2001 had open up Indonesia’s market to local & foreign enterprise to conduct business under the basis of market economics principles

30. ECONOMIC / PRICE FACTORS
CNG VALUE PROCESS LINE
ECONOMIC / PRICE FACTORS
NATURAL GAS AT WELL
(INDONESIAN GOVERNMENT)
Country’s natural gas availability
World’s oil & natural gas price
Market demand size
Onshore vs. Offshore
Economies of scale size of the well
Natural gas composition
Capacity & size of refinery facility
Tender process priced obtain
EXPLORATION & PRODUCTION
(NATURAL GAS PRODUCER)
TRANSPORT & DISTRIBUTION
(PIPELINE OWNER)
Economics of scale size transported
Distance to targeted area
Difficultness to transport area
Tender/Contract price obtain
Volume of pressure obtain
Compression ability (fast vs. slow fill)
Location of the station
Power supply availability
Gas composition
Supply gas purchase
COMPRESSION
(STATION OWNER)

31. PRICING POLICY
Regulatory Basis: UU Migas 2001 vs Pertamina Pricing Policy?
The Deregulation of the Oil & Gas industry had open up Indonesia’s market to local & foreign enterprise to conduct business under the basis of market economics principles
Natural gas base price and pipeline toll fee is monitored and semi-regulated by BPH Migas, but who regulate and monitor the CNG selling price at filling station?
The pricing policy is based on the Minister of Mines & Energy Decree (Keputusan Menteri ESDM), which in the decree pipeline pricing policy for the transportation sector has not yet been clearly stipulated and categorized.

32. ECONOMIC / PRICE FACTORS POLICY HOLDER
NATURAL GAS AT WELL
(INDONESIAN GOVERNMENT)
Country’s natural gas availability
World’s natural gas price
Market demand size
Parliament/Legislator Approval
Central Government (President)
Local Government
Onshore vs. Off shore
Economics of scale size of the well
Natural gas composition
Capacity & size of refinery facility
Tender process priced obtain
EXPLORATION & PRODUCTION
(NATURAL GAS PRODUCER)
Department of Mines & Energy
BP Hulu (Upstream) Migas
Company’s Shareholder & BOD
TRANSPORT
(PIPELINE OWNER)
Economics of scale size transported
Distance to targeted area
Difficultness to transport area
Tender/contract price obtain
Department of Mine & Energy
BP Hilir (Downstream) Migas
Company’s shareholder & BOD
Volume of pressure obtain
Compression ability (fast vs. slow fill)
Location of the station
Power supply availability
Gas composition
Supply gas purchase
COMPRESSION
(STATION OWNER)
Company’s shareholder & BOD

34. PRICING POLICY
UNCLEAR
Regulatory Basis: UU Migas 2001 vs Pertamina Pricing Policy?
The Deregulation of the Oil & Gas industry had open up Indonesia’s market to local & foreign enterprise to conduct business under the basis of market economic structure
Natural gas base price and pipeline toll fee is monitored and semi-regulated by BPH Migas, but who regulate and monitor the CNG selling pricing at filling station?
The pricing policy is based on the Minister of Mines & Energy Decree (Keputusan Menteri ESDM), in which pipeline pricing policy for the transportation sector has not yet been classified in a decree
CNG selling price at filling station is at a set price for the Transjakarta’s busway, but how about CNG selling price for other vehicles vs CNG selling price in cities other than DKI Jakarta?
At what price should private enterprise sell CNG at their station for the transportation sector?

35. CNG SELLING PRICE STRUCTURE
1 MMBTU = 27
CNG SELLING PRICE STRUCTURE
USD 1 = Rp ,-
RUPIAH / PLE 
US$ / MMBTU  I
GAS PRODUCER & PIPELINE OWNER
Interfunction Charge
1,198.62
$3.24
Toll Fee (PGN/Gas Negara)
60.00
$0.16
Marketing Cost
20.00
$0.05
Overhead Cost
86.67
$0.23
Pertamina Margin
94.71
$0.26
(1) SUB TOTAL
1,460.00
$3.94 II
CNG STATION OWNER
Maintainance Cost
200.00
$0.54
CNG Equipment Investment Fee
300.00
$0.81
CNG Station Margin
360.00
$0.97
Station Owner Fee
Land Rent
(2) SUB TOTAL
980.00
$2.65
CNG SELLING PRICE ( )
2,440.00
$6.59
CITY FUEL TAX FOR VEHICLE ( 5% )
122.00
$0.33
CNG SELLING PRICE AT FILLING STATION
2,562.00
$6.92

36. WITH CONDITIONS AVAILABILITY OF FUNDSNo
VEHICLES TYPE
NON NGV MKT SHARE %
20% SHARE
CNG/PLE DAY
CNG CONSUME DAILY I.
Large Capacity Buses
1. Bus (Non-Busway)
4.540 0%
908
200
2. Busway (Cor. 1 – 8) 91
78% 18
220
3.960
II.
Middle Size Buses 5 1
100
III.
Vehicles
1. Angkot
6.596 2%
1.319 30
39.576
2. KWK
6.238
1.248
37.428
IV.
Bemo (APB)
1.096
219 10
2.192 V.
Taxi
21.896
10%
4.379 20
87.584
VI.
Bajaj
14.024 3%
2.805
VII.
Others
23.827
4.765
47.654
total
78.313 4%
15.663
ple
mmscfd 15
Macro Economy & Political Stability:
World’s financial crisis occurred in had not affect much of the country’s economy.
Past 2 years, the Indonesia’ federal reserve bank (Bank Indonesia) has continued to lower its treasury interest rate (SBI).
Local banks are currently liquid.
Rupiah currency has indicate stable and strong positioning this past weeks.
Presidential election proceeded swiftly and safely with minor disruption
Industry and Market Demand condition
CNG Filling Station and the NGV market still has a lot of potential growth market
8 Existing Stations + 4 New Stations have an estimated capacity compression of ple / hour
Or an estimated daily (18 hours) compression capacity of ple / day or 11 MMSCFD

37. WITH CONDITIONS AVAILABILITY OF FUNDS ROI factors to be considered …
EQUIPMENT INVESTMENT
Volume Pressure Obtain  compressing stages
Compression ability  fast or slow fill / # of dispenser
Availability of power supply  gas or electric driven
Gas composition  with or without gas dryer
Macro Economy & Political Stability Factor:
World’s financial crisis occurred in had not affect much of the country’s economy.
Past 2 years, the Indonesia’ federal reserve bank (Bank Indonesia) has continued to lower its treasury interest rate (SBI).
Local banks are currently liquid.
Rupiah currency has indicate stable and strong positioning this past weeks.
Presidential election proceeded swiftly and safely with minor disruption.
Location  Owned or Rent
Land Size  large vehicles or small vehicles
LAND & CIVIL DEVELOPMENT
Certification Approval - Migas or Depnaker
Local Government Approval
CERTIFICATION & APPROVAL
PGN or Pertamina or other
Contract terms  Rupiah or USD base
GAS SUPPLY
Industry and Market Demand Factor:
CNG Filling Station and the NGV market still has a lot of potential growth market
Power supply  electric or gas bill
Cost of money  high or low leverage
OPEATIONAL COST
Government regulation to support and to promote the use of NGV exist.
Gas supply from PGN is available.
Return on Investment  IRR and Payback period
Taxes
PROFIT MARGIN
Return on Investment Factor:

38. LOW ACCEPTANCE MARKET AWARESS & ACCEPTANCE Although, However,
Indonesian society are becoming more concern for a cleaner and friendly environment as well are more aware of global warming threat whereby petrol fuel emission contributes the most pollutant for the city air.
Bike to Work Group.
Closing of Jakarta’s city main road during every weekend morning.
However,
In terms of their choices of fuel, majority will choose cheapest price and practical.
Vehicle owner will be willing to fill CNG fuel but are hesitant to buy the converter kits.
Not only vehicle owner will be willing to convert their vehicles if converter kits are cheap or free but also if it is practical to fill CNG fuel in every 5 km radius.
Most of people in Jakarta understood CNG only as the fuel for the Transjakarta-Busway and some taxi’s owner.
In other cities outside Jakarta in fact do not realize CNG can be an alternative fuel for vehicles and that mostly understood natural gas are pipeline gas for industrial usage and misunderstood between CNG and LPG are different commodities.

39. GROWING SUPPORT INDUSTRY & REGULATORY BODY SUPPORT
The NGV industry is gaining a lot of support from DKI Provincial Government commitment in using CNG as their choice of fuel for its Transjakarta’s busses.
The NGV industry is receiving real action implementation from the Department of Transportation through the distribution of converter kits for public transportation in cities like Jakarta, Surabaya, Bogor, Palembang, and other cities to come.
Provincial governments and county governments regulatory support on CNG.
NGV groups like ANGVA and APCNGI establishment and presence have and will continue strengthen the NGV market growth in Indonesia also increase public awareness on new CNG technologies and CNG safety issues.

40. A PRICING POLICY STRUCTURE THAT WILL BENEFIT ALL STAKEHOLDERS
As an Conclusion, if Indonesia shall able to manage the :
SUCCES FACTORS
A PRICING POLICY STRUCTURE THAT WILL BENEFIT ALL STAKEHOLDERS
Availability of abundant natural gas reserves
Infrastructure
Pricing Policy
Availability of funds
Market Awareness & Acceptance
Industry & Regulator Body Support
INCREASE MARKET AWARENESS THROUGH INTENSIVE PUBIC RELATION & MEDIA PROGRAM
then …

41. Then Indonesia’s NGV market will succesfully re-emerge and go forward to the next stage of development
Master Planning
Commercialization
current ??
Pilot Programme
Market Development
Regulatory Enactment
NGV Developed
Public Relations
Mature Market

42. (subsidiary of PETROSS Group)
THANK YOU
PT. PETROSS GAS
(subsidiary of PETROSS Group)
Gedung ProMotor 3B Floor. Jl. Teuku Nyak Arif No. 14 Simpruk Jakarta 1222
Telp: ; Fax :