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Go green 2 nd Annual CNG/NGV Asia Pacific Forum 2 nd Annual CNG/NGV Asia Pacific Forum The re-emerging of Indonesias CNG/NGV industry Presented by : Robbi.

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Presentation on theme: "Go green 2 nd Annual CNG/NGV Asia Pacific Forum 2 nd Annual CNG/NGV Asia Pacific Forum The re-emerging of Indonesias CNG/NGV industry Presented by : Robbi."— Presentation transcript:

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

2 go green 2 nd Annual CNG/NGV Asia Pacific Forum CONTENTS : 1.The Past Story of Indonesias CNG-NGV industry 2.Current Developments 3.DKI Provincial Government Busway CNG Pilot Project 4.The Confronted Challenges and Success Factors for Indonesias Successful CNG/NGV industry future developments

3 go green 2 nd Annual CNG/NGV Asia Pacific Forum The Past Story of Indonesias CNG-NGV industry (1986 – 2005 )

4 go green 2 nd Annual CNG/NGV Asia Pacific Forum WHAT HAPPEN ? Slow development, in fact, can be said that not much had happen over the past 2 (two) decades for Indonesias NGV industry. YearMAJOR FACTS OCCURRENCE IN THE NGV INDUSTRY The Indonesias 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 Indonesias 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 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) Number of NGV had reach its highest number recorded with 6,600 vehicles nationwide in year 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 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.

5 go green 2 nd Annual CNG/NGV Asia Pacific Forum source data : angva NUMBER NGV IN ASIA YEAR 2002

6 go green 2 nd Annual CNG/NGV Asia Pacific Forum Current Developments ( 2005 – Today )

7 go green 2 nd Annual CNG/NGV Asia Pacific Forum The Indonesias Government responded to this situation through endorsing alternative energy like bio-fuel and also increase CNG fuel for the transportation sector 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 Indonesias Government reduced the subsidize budget for the nations petrol fuel (2005); Increase of pollutant level from vehicle emission particularly in DKI Jakarta (third most pollutant city in world); Worlds oil price had shown increase and by mid year of 2008 the worlds oil price reached its highest point ever; YEAR 2004 – YEAR 2005

8 go green 2 nd Annual CNG/NGV Asia Pacific Forum YEAR 2005 – Government Policy & Regulation Events affecting the CNG Industry Republic Indonesias Presidential Instruction (In. Pres.) Decree no. 10 year 2005 regarding national energy conservation and saving enactment. Indonesias 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 go green 2 nd Annual CNG/NGV Asia Pacific Forum 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 nations 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 plans 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 Pertaminas station in DKI Jakarta area. YEAR 2005 – Commercial Events affecting the CNG Industry

10 go green 2 nd Annual CNG/NGV Asia Pacific Forum Based on the Indonesias 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 nations 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 – Government Policy & Regulation Events affecting the CNG Industry YEAR 2006 – Commercial Events affecting the CNG Industry On February 1 st, Pertamina increased its CNG sale at all Pertaminas pump station from previously Rp /ple to to Rp /ple, in which said considered as their economical price. On March 2 nd, the Department of Transportation launched a public relation program to promote the usage of CNG fuel for transportation in Pertaminas CNG Station in Margonda, Depok. On May 20 th Indonesias President, Mr. Susilo Bambang Yudoyono, open a ceremony to promote and induce the use of NGV in Petross CNG fueling Station, which was DKIs 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. Pertaminas director issued a directive letter no. 023/C00000/2006-S3 dated 31 July 2006 directing that the new sale price of CNG at Pertaminas station to be Rp /ple.

11 go green 2 nd Annual CNG/NGV Asia Pacific Forum 20 MAY May 2006 – Jl. Perintis Kemerdekaan Petross & Transbatavia pool bus Indonesias 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 go green 2 nd Annual CNG/NGV Asia Pacific Forum DKI Provincial Government Decree no. 141 year 2007 regarding the mandate to use CNG for all public transportation and DKIs Provincial Government vehicles. Year 2007 to Present – Government Policy & Regulation Events affecting the CNG Industry 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 taxis within the DKI Jakarta area. On February 21 st, 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 taxis 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 go green 2 nd Annual CNG/NGV Asia Pacific Forum 13 Country# of NGV# of StationsDated 1Pakistan2,000,0002,700Dec 08 2IR of Iran1,215,593764Feb 09 3India821,872402Apr 08 4China400,0001,260July 08 5Bangladesh180,000296Nov 08 6Thailand141,335310Mar 09 7Uzbekistan47,00043Dec 07 8Malaysia42,000120Apr 09 9Japan36,345327Dec 08 10Myanmar25,80244Apr 09 11Republic of Korea17,123121June 08 12Tajikistan10,60053Dec 07 13Kyrgyzstan6,0006Dec 07 14Singapore3,4433Jan 09 15Indonesia3,0799Apr 08 16Australia2,453146Mar 07 17UAE3052Mar 07 18New Zealand28314Mar 07 19Philippines361Feb 06 20Vietnam21Jan 09 Current NGV Markets in Asia Pacific (Source: Asian NGV Communications & GVR magazines & Others) / PTT Presentation slides data report

14 go green 2 nd Annual CNG/NGV Asia Pacific Forum NoVEHICLES TYPETotal VehiclesNGVNON NGV% I.Large Capacity Buses 1. Bus (Non-Busway) 4, % 2. Busway (Cor. 1 – 8) % II.Middle Size Buses 4, % III.Vehicles 1. Angkot 6, ,5962% 2. KWK 6, % IV.Bemo (APB) 1, % V.Taxi 24,256 2,360 21,89610% VI.Bajaj 14, ,0243% VII.Others 23, % Jumlah 86,526 3,239 83,3894% YEAR END 2008 – DKI JAKARTA PUBLIC TRANSPORTATION (Source: DKI Jakarta Department of Transportation 2009 data report)

15 go green 2 nd Annual CNG/NGV Asia Pacific Forum (Source: Asian NGV Communications & GVR magazines Aug 08 & Others) and adopted from PTT presentation slides

16 go green 2 nd Annual CNG/NGV Asia Pacific Forum Master Planning Pilot Programme Regulatory Enactment Public Relations Commercialization Market Development NGV Developed Mature Market WHERE INDONESIA IN THE DEVELOPMENT STAGES current ??

17 go green 2 nd Annual CNG/NGV Asia Pacific Forum DKI Provincial Government Busway CNG Pilot Project

18 go green 2 nd Annual CNG/NGV Asia Pacific Forum DKIS 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 go green 2 nd Annual CNG/NGV Asia Pacific Forum DKI JAKARTA ENVIRONMENTAL FACTS: Considered as the Third Worlds 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 go green 2 nd Annual CNG/NGV Asia Pacific Forum OPERATORCORRIDOR# OF BUSESCNG STATION FILLING TRANSBATAVIA (TB)II60PETROSS PERINTIS KEMERDEKAAN TRANSBATAVIA (TB)III66 PETROSS RAWA BUAYA DAVALTI DAAN MOGOT JAKARTA TRANS METROPOLITAN (JTM)IV27 PETROSS PERINTIS KEMERDEKAAN PERTAMINA PEMUDA JAKARTA MEGA TRANSPOLITAN (JMT)V27PPD DAAN MOGOT JAKARTA TRANS METROPOLITAN (JTM)VI31PERTAMINA PEMUDA JAKARTA MEGA TRANSPOLITAN (JMT)VII52DAVALTI DAAN MOGOT LORENA EKA SARI (LRN) PRIMAJASA (PRJ) VIII66 PETROSS PERINTIS KEMERDEKAAN PERTAMINA PEMUDA PERTAMINA GANDARIA TOTAL BUSES329 CONSORTIUMIXN/A CONSORTIUMXN/A NUMBER OF TRANSJAKARTA CNG BUSES (2008)

21 go green 2 nd Annual CNG/NGV Asia Pacific Forum CNG STATION PETROSS RAWA BUAYA CNG STATION PETROSS JL. PERINTIS CNG STATION DAVALTI DAAN MOGOT CNG STATION PERTAMINA JL. PASAR MINGGU CNG STATION PERTAMINA JL. PEMUDA CNG STATION AKSARA KMP. RAMBUTAN CNG STATION AKSARA JL. HEK CNG STATION PERTAMINA GANDARIA 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.OPERATOR: TB 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.OPERATOR: JTM DISTANCE: 13.3 KM BUS STOP: 19 VII.OPERATOR: JMT DISTANCE: 12.8 KM BUS STOP: 14 VIII.OPERATOR: LRN & PJS DISTANCE: 8 KM BUS STOP: 23 / CURRENT 17 CNG STATION T ENERGY PINANG RANTI : Operational : Non Operational

22 go green 2 nd Annual CNG/NGV Asia Pacific Forum NODKI JAKARTA'S CNG STATIONSOWNERCAPACITYACCESIBILITYREMARKS 1Jl. Sumenep, Jakarta PusatPertamina< 1000 m3/hrSmall VehiclesSemi-Operational 2Jl. Pemuda, Jakarta Timur Pertamina> 1000 m3/hrLarge Vehicles & BuswayOperational 3Jl. Raya Gandaria, Jakarta TimurPertamina> 1000 m3/hrSmall VehiclesOperational 4Jl. Raya Bogor, Jakarta Timur Pertamina< 1000 m3/hrSmall VehiclesNon Operational 5Jl. Ahmad Yani, Jakarta TimurSwasta< 1000 m3/hrSmall VehiclesNon Operational 6Jl. Boulevard Timur, Jakarta TimurPertamina< 1000 m3/hrSmall VehiclesNon Operational 7Jl. Pluit, Jakarta UtaraPertamina< 1000 m3/hrSmall VehiclesSemi-Operational 8Jl. Danau Sunter, Jakarta UtaraSwasta< 1000 m3/hrSmall VehiclesNon Operational 9Jl. Kali Deres, Jakarta BaratPertamina< 1000 m3/hrSmall VehiclesNon Operational 10Jl. Daan Mogot, Jakarta BaratDavalti> 1000 m3/hrLarge Vehicles & BuswayOperational 11Jl. Warung Buncit, Jakarta SelatanPertamina< 1000 m3/hrSmall VehiclesNon Operational 12JL.Pasar Minggu, Jakarta SelatanPertamina< 1000 m3/hrSmall VehiclesOperational 13Jl. TebetTimur, Jakarta SelatanPertamina< 1000 m3/hrSmall VehiclesNon Operational 14Jl. Perintis KemerdekaanPetross> 1000 m3/hrLarge Vehicles & BuswayOperational 15Rawa BuayaPetross> 1000 m3/hrLarge Vehicles & BuswayOperational 16Kampung RambutanAksara> 1000 m3/hrLarge Vehicles & BuswayAwaiting Operational 17Hek Kramat JatiAksara> 1000 m3/hrLarge Vehicles & BuswayAwaiting Operational 18Tanah MerdekaAksara> 1000 m3/hrLarge Vehicles & BuswayAwaiting Operational 19Pinang RantiT Energy> 1000 m3/hrLarge Vehicles & BuswayAwaiting Operational

23 go green 2 nd Annual CNG/NGV Asia Pacific Forum TRANSJAKARTAs AVERAGE MINIMUM CNG CONSUMPTION 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 busways 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 busways 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. CORRIDORSKMUNIT BUSMIN. AVG. DAILYAVG.TRIP/DAYPLE/DAYPLE/MONTH II , ,120 III , ,815 IV , ,468 V , ,700 VI , ,292 VII , ,942 VIII , ,769 PLE 53,670 1,610,107 MMSCF

24 go green 2 nd Annual CNG/NGV Asia Pacific Forum TRANSJAKARTA BUSWAY – DKI PAYMENT SCHEME BUSWAY USERS TICKETING SALE FROM BUSWAY 3,500.-) SUBSIDY PT. JET (KORIDOR I) PT. TB (KORIDOR II & III) PT. JTM (KORIDOR IV & VI) PT. JMT (KORIDOR V & VII) BUSWAY OPERATORS ARE PAID BY JAKARTAS BLU TRANSJAKARTA BASED ON KILOMETER RATE ACHIEVED PER MONTH BADAN LAYANAN UMUM (BLU) TICKETS REVENUE PT. LRN (KORIDOR VIII) PT. PRJ (KORIDOR VIII) Pertamina Diesel Rp. 4,300/ltr Pertaminas and Private CNG Rp. 2,562/ple

25 go green 2 nd Annual CNG/NGV Asia Pacific Forum The Confronted Challenges and Success Factors for Indonesias CNG/NGV Industry Future Developments

26 go green 2 nd Annual CNG/NGV Asia Pacific Forum SUCCES FACTORS 1.Availability of abundant natural gas reserves 2.Infrastructure 3.Pricing Policy 4.Availability of funds 5.Market Awareness & Acceptance 6.Industry & Regulator Body Support + CHALLENGES What are Indonesias NGV Success Factor & Challenges?

27 go green 2 nd Annual CNG/NGV Asia Pacific Forum Availability of abundant natural gas reserves Source: BP Migas and Indonesia Petroleum Report and Department Mines & Energy Indonesia Energy Blue Print Report & 2009 Data Report AVAILABLE 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. Energy fuel Total Reserve Proven 2004 Production Year Dimished Oil Coal

28 go green 2 nd Annual CNG/NGV Asia Pacific Forum Infrastructure Infrastructure BLUEPRINT PENGELOLAAN ENERGI NASIONAL 2005 – 2025 Dept. ESDM NOT ENOUGH & NOT WIDELY SPREAD

29 go green 2 nd Annual CNG/NGV Asia Pacific Forum PRICING POLICY oRegulatory Basis: UU Migas 2001 vs Pertamina Pricing Policy? The deregulation of the Oil & Gas industry in 2001 had open up Indonesias market to local & foreign enterprise to conduct business under the basis of market economics principles

30 go green 2 nd Annual CNG/NGV Asia Pacific Forum EXPLORATION & PRODUCTION (NATURAL GAS PRODUCER) ECONOMIC / PRICE FACTORS Countrys natural gas availability Worlds oil & natural gas price Market demand size TRANSPORT & DISTRIBUTION (PIPELINE OWNER) Onshore vs. Offshore Economies of scale size of the well Natural gas composition Capacity & size of refinery facility Tender process priced obtain COMPRESSION (STATION OWNER) Economics of scale size transported Distance to targeted area Difficultness to transport area Tender/Contract price obtain NATURAL GAS AT WELL (INDONESIAN GOVERNMENT) Volume of pressure obtain Compression ability (fast vs. slow fill) Location of the station Power supply availability Gas composition Supply gas purchase CNG VALUE PROCESS LINE

31 go green 2 nd Annual CNG/NGV Asia Pacific Forum PRICING POLICY oRegulatory Basis: UU Migas 2001 vs Pertamina Pricing Policy? The Deregulation of the Oil & Gas industry had open up Indonesias market to local & foreign enterprise to conduct business under the basis of market economics principles oNatural 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 go green 2 nd Annual CNG/NGV Asia Pacific Forum EXPLORATION & PRODUCTION (NATURAL GAS PRODUCER) ECONOMIC / PRICE FACTORSPOLICY HOLDER Countrys natural gas availability Worlds natural gas price Market demand size TRANSPORT (PIPELINE OWNER) Onshore vs. Off shore Economics of scale size of the well Natural gas composition Capacity & size of refinery facility Tender process priced obtain COMPRESSION (STATION OWNER) Economics of scale size transported Distance to targeted area Difficultness to transport area Tender/contract price obtain NATURAL GAS AT WELL (INDONESIAN GOVERNMENT) Volume of pressure obtain Compression ability (fast vs. slow fill) Location of the station Power supply availability Gas composition Supply gas purchase Parliament/Legislator Approval Central Government (President) Local Government Department of Mines & Energy BP Hulu (Upstream) Migas Companys Shareholder & BOD Department of Mine & Energy BP Hilir (Downstream) Migas Companys shareholder & BOD

33 go green 2 nd Annual CNG/NGV Asia Pacific Forum

34 go green 2 nd Annual CNG/NGV Asia Pacific Forum PRICING POLICY UNCLEAR oRegulatory Basis: UU Migas 2001 vs Pertamina Pricing Policy? The Deregulation of the Oil & Gas industry had open up Indonesias market to local & foreign enterprise to conduct business under the basis of market economic structure oNatural 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 oCNG selling price at filling station is at a set price for the Transjakartas 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 go green 2 nd Annual CNG/NGV Asia Pacific Forum 1 MMBTU = 27 CNG SELLING PRICE STRUCTURE USD 1 = Rp ,- RUPIAH / PLE US$ / MMBTU IGAS PRODUCER & PIPELINE OWNER Interfunction Charge 1, $3.24 Toll Fee (PGN/Gas Negara) $0.16 Marketing Cost $0.05 Overhead Cost $0.23 Pertamina Margin $0.26 (1) SUB TOTAL 1, $3.94 IICNG STATION OWNER Maintainance Cost $0.54 CNG Equipment Investment Fee $0.81 CNG Station Margin $0.97 Station Owner Fee $0.16 Land Rent $0.16 (2) SUB TOTAL $2.65 CNG SELLING PRICE ( ) 2, $6.59 CITY FUEL TAX FOR VEHICLE ( 5% ) $0.33 CNG SELLING PRICE AT FILLING STATION 2, $6.92

36 go green 2 nd Annual CNG/NGV Asia Pacific Forum AVAILABILITY OF FUNDS WITH CONDITIONS Macro Economy & Political Stability: Worlds financial crisis occurred in had not affect much of the countrys 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 NoVEHICLES TYPENON NGV MKT SHARE % 20% SHARE CNG/PLE DAY CNG CONSUME DAILY I.Large Capacity Buses 1. Bus (Non-Busway) % Busway (Cor. 1 – 8) 9178% II.Middle Size Buses 50% III.Vehicles 1. Angkot % KWK % IV.Bemo (APB) % V.Taxi % VI.Bajaj % VII.Others % total % ple mmscfd 15 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 go green 2 nd Annual CNG/NGV Asia Pacific Forum AVAILABILITY OF FUNDS WITH CONDITIONS Macro Economy & Political Stability Factor: Worlds financial crisis occurred in had not affect much of the countrys 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 Factor: CNG Filling Station and the NGV market still has a lot of potential growth market Government regulation to support and to promote the use of NGV exist. Gas supply from PGN is available. o Return on Investment Factor: EQUIPMENT INVESTMENT LAND & CIVIL DEVELOPMENT 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 Location Owned or Rent Land Size large vehicles or small vehicles Certification Approval - Migas or Depnaker Local Government Approval CERTIFICATION & APPROVAL GAS SUPPLY PGN or Pertamina or other Contract terms Rupiah or USD base OPEATIONAL COST PROFIT MARGIN Power supply electric or gas bill Cost of money high or low leverage Return on Investment IRR and Payback period Taxes ROI factors to be considered …

38 go green 2 nd Annual CNG/NGV Asia Pacific Forum MARKET AWARESS & ACCEPTANCE 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 Jakartas city main road during every weekend morning. LOW ACCEPTANCE 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. However, Although, Most of people in Jakarta understood CNG only as the fuel for the Transjakarta- Busway and some taxis 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 go green 2 nd Annual CNG/NGV Asia Pacific Forum INDUSTRY & REGULATORY BODY SUPPORT GROWING 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 Transjakartas 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 go green 2 nd Annual CNG/NGV Asia Pacific Forum As an Conclusion, if Indonesia shall able to manage the : SUCCES FACTORS 1.Availability of abundant natural gas reserves 2.Infrastructure 3.Pricing Policy 4.Availability of funds 5.Market Awareness & Acceptance 6.Industry & Regulator Body Support A PRICING POLICY STRUCTURE THAT WILL BENEFIT ALL STAKEHOLDERS INCREASE MARKET AWARENESS THROUGH INTENSIVE PUBIC RELATION & MEDIA PROGRAM then …

41 go green 2 nd Annual CNG/NGV Asia Pacific Forum Master Planning Pilot Programme Regulatory Enactment Public Relations Commercialization Market Development NGV Developed Mature Market Then Indonesias NGV market will succesfully re-emerge and go forward to the next stage of development current ??

42 go green 2 nd Annual CNG/NGV Asia Pacific Forum THANK YOU PT. PETROSS GAS (subsidiary of PETROSS Group) Gedung ProMotor 3B Floor. Jl. Teuku Nyak Arif No. 14 Simpruk Jakarta 1222 Telp: ; Fax :


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