1. PERTAMINA GEOTHERMAL ACTIVITIES, CURRENT STATE, AND DEVELOPMENT PLAN (PRESENTED AT ENERGY BUSSINESS FORUM APEC EWG 38 BALI INDONESIA, NOV 17, 2009)

2. HISTORY OF GEOTHERMAL ENERGY DEVELOPMENT IN INDONESIA LAW No. 8/1971 Pres. Decree No. 22/1981 And No 45/1991 LAW No. 22/2001 Gov’t Regulation No.31/2003 LAW No. 27/2003 Minister Decree No. 76/2003 PERTAMINA was given the authorization to explore and develop geothermal in Indonesia PERTAMINA already conduct geothermal survey in abaout 50 geothermal areas with a total resource of 9,076 MW PERTAMINA has been given the authorization to develop 33 Working Areas PERTAMINA was renamed to PT PERTAMINA (PERSERO) The foundation of PT Pertamina Geothermal Energy (PGE) on 12 December 2007 through Decision of the Minister of Justice and Human Rights No.017.00089 HT 01.01 dated 3 January 2007, as a Geothermal Business Unit The Gov’t has revoked Pertamina’s monopoly on geothermal development PERTAMINA has to return working areas that are not yet to be develop until 2010 PERTAMINA returned 18 Working Areas from 33 Areas authorized. PERTAMINA has 15 Working Areas :  6 Working Areas are jointly exploited through JOC and Joint Venture  9 Working Areas are Own Operation. LAW No. 22/2001 PP No. 31/2003 PT PGE

3. File:hen/srt/master Grafik-2.ppt INDONESIA’S GEOTHERMAL ENERGY POTENTIAL MAGMA Semarang Medan Tanjung Karang Bandung Manado Reserves : 13.060 MWe Resources : 14.080 MWeOthers Reserves : 801 MWe Resources : 1,019 MWe Others Reserves : 801 MWe Resources : 1,019 MWe Jawa – Bali Reserves : 5,526 MWe Resources : 4,037 MWe Jawa – Bali Reserves : 5,526 MWe Resources : 4,037 MWe Sumatera Reserves : 5,847 MWe Resources : 4,681 MWe Sumatera Reserves : 5,847 MWe Resources : 4,681 MWe Sulawesi Reserves : 896 MWe Resources : 1,050 MWe Sulawesi Reserves : 896 MWe Resources : 1,050 MWe Geothermal location

4. File:hen/srt/master Grafik-2.ppt Wayang Windu (West Java) 120 MW Power Plant Expansion Patuha (West Java) 3x60 MW Power Plant Development Sarulla (North Sumatra) 220 MW Power Plant Development Lahendong (North Sulawesi) 1x20 MW Steam Field Tompaso (North Sulawesi) 2x20 MW Total Project Ulubelu (Lampung) 2x55 MW Steam Field Development Lumutbalai (S. Sumatra) 2x55 MW Total Project Kamojang (West Java) 60 MW Power Plant Expansion Dieng (Central Java) 2x60 MW Power Plant Expansion SHORT TERM POTENTIALLY OF GEOTHERMAL DEVELOPMENT Sungai Penuh (Jambi) 1x55 MW Steam Field Hululais (Bengkulu) 2x55 MW Steam Field Karaha (West Java ) 1x30W Total Project

5. File:hen/srt/master Grafik-2.ppt About Pertamina Geothermal Energy  PGE is part of Pertamina, which was the first developer of geothermal energy in Indonesia  Based on Law 22/2001 & PP 31/2003, PGE is established in December 2006 as a subsidiary specializing in geothermal activities  PGE currently controls 15 working areas and is committed towards developing all these areas inline with the government energy policy

6. File:hen/srt/master Grafik-2.ppt 9. Kamojang - PETA WKP GEOTHERMAL - PERTAMINA 1 2 3 5 4 6 7 8 910 11 1313 13 14 15 1. Sibayak-Sinabung (12 MW) 2. Sibualbuali 3. Sungaipenuh 4. Tbg. Sawah-Hululais 5. Lumutbalai 6. Waypanas Ulubelu 7. Cibereum-P-bakti (375 MW) 8. Pengalengan 10. Karaha-Cakrabuana 11. Dieng (60 MW) 12. Iyang-Argopuro 13. Tabanan Patuha W. Windu (220 MW) Kamojang (200 MW) Darajat (255 MW) Darajat Dasar : Dasar : Keppres RI No. 22 / 1981Keppres RI No. 22 / 1981Keppres RI No. 22 / 1981Keppres RI No. 22 / 1981 Keppres RI No. 45 / 1991Keppres RI No. 45 / 1991Keppres RI No. 45 / 1991Keppres RI No. 45 / 1991 Keppres RI No. 49 / 1991Keppres RI No. 49 / 1991Keppres RI No. 49 / 1991Keppres RI No. 49 / 1991 Keppres RI No. 76 / 2000Keppres RI No. 76 / 2000Keppres RI No. 76 / 2000Keppres RI No. 76 / 2000 UU Panasbumi No 27/2003UU Panasbumi No 27/2003UU Panasbumi No 27/2003UU Panasbumi No 27/2003 15 WKP : 2349,59 hektar 14. Lahendong (60 MW) 15. Kotamobagu Pertamina KOB Joint Venture Total kapasitas PLTP terpasang (2008) : 1172 MW 12

7. File:hen/srt/master Grafik-2.ppt 20122020 2008201220162020 3442 MW4600 MW 6000 MW (target) 1442 MW Existing WKP 1158 MW Existing WKP + New WKP 1400 MW New WKP Geothermal Road - map (GSDM, 2008) Geothermal Road-map by 2025 1000 Mwe for 30 years 465 Juta Barrel oil 9000 MW (target) 2025 20082016 2025 2007 1052 MW Existing WKP 1193 MW EXIST.WKP 2010 3500 MW New WKP 1189 MW 4733MW 3381.5 MW (Existing WKP) 2000 MW 807 MW (2004)

8. File:hen/srt/master Grafik-2.ppt THE NATIONAL ENERGY POLICY DIVERSIFICATION, EFFICIENCY ENERGY, PRICING POLICY  To secure the national energy supply  To reduce the oil import  To create job for people  To generate / to boost the local economic  To add the value of social life and the environment

9. File:hen/srt/master Grafik-2.ppt RESOURCES OPTIMATION  ENVIRONMENTAL VIEW SUSTAINABLE & RENEWABLE RESOURCES SHOULD BE DEVELOPED IN ACCORDANCE TO THE KYOTO PROTOCOL RATIFICATION  TECHNOLOGY HIGHLY COMMERCIAL OIL AND GAS AND INLINE THE TECHNOLGYIN ORDER TO INCREASE THE COMMERCIAL VALUE OF LIQUIDIZED COAL  MINDSET EMPOWERMENT THE LOCAL GOVERNMENT POTENTIAL FOR RESOURCE OPTIMATAION Keywords : ECONOMIC, ENVIRONENTAL RELATIONSHIP, EMPOWERMENT THE LOCAL RESOURCES

10. File:hen/srt/master Grafik-2.ppt Comparison the generating cost and selling price of the electricity of the electricity  Synchronized of the RUKN and RUPTL –Energy priring policy  Legal centainty –Consistency of the commitment to imply to energy policy Transparant Applicable Acceptable  Overlapping of the landuse –Clean and clear Retail to consumen (PLN : 2008) Fuel Cost 2088 Generation cost, PLN 2008 Retail (consumen) PLN 2008 Economic geothermal pricing EFISIENSI

11. File:hen/srt/master Grafik-2.ppt 2014 2013 2012 2011 2010 2009 20082007 GEOTHERMAL DEVELOPMENT PLAN OF PT PGE PT PGE OWN OPS CADANGAN PLTP59016210202521220272152027215603471560752197091719701342 KAMOJANG 300140300200300200300200300200300260300260300260 LAHENDONG 802010040200602006020080200127,5200127,5200127.5 SIBAYAK 401240124012401240124019,54019,54019.5 ULUBELU 140-350- -300- 55300110300165300220 LUMUTBALAI 200-300- - - 55300110300220 HULULAIS --150- - 55250110250110 KOTAMOBAGU 100- - 401504015080 SUNGAI PENUH 100- - 5515055150110 KARAHA 30- - - -70- 3018030180140 IYANG ARGOPURO*) 100- 55

12. File:hen/srt/master Grafik-2.ppt Wayang Windu (West Java) 120 MW Power Plant Expansion Patuha (West Java) 3x60 MW Power Plant Development Sarulla (North Sumatra) 220 MW Power Plant Development Lahendong (North Sulawesi) 1x20 MW Steam Field Tompaso (North Sulawesi) 2x20 MW Total Project Ulubelu (Lampung) 2x55 MW Steam Field Development Lumutbalai (S. Sumatra) 2x55 MW Total Project Kamojang (West Java) 60 MW Power Plant Expansion Dieng (Central Java) 2x60 MW Power Plant Expansion SHORT TERM POTENTIALLY OF GEOTHERMAL DEVELOPMENT Sungai Penuh (Jambi) 1x55 MW Steam Field Hululais (Bengkulu) 2x55 MW Steam Field Karaha (West Java ) 1x30W Total Project

13. File:hen/srt/master Grafik-2.ppt GEOTHERMAL DEVELOPMENT PROGRAM OF PT PGE UP TO 2014 GEOTHERMAL PROGRAM AND PROJECTED CER’S (MM TONNE CER (e), CUMM.) IN PROGRESS KAMOJANG UNIT – 4 (60 MW) ECOSECURITAS AN ADDITION CAPACITY OF ABOUT 1100 MW (2014), CONSERVE OF ABOUT 42,000 BOEPD. AND POTENTIAL GETTING CARBON CREDIT OF ABOUT USD 55 MM/YEAR ( ?)

14. File:hen/srt/master Grafik-2.ppt  THE EMPOWERMENT OF GEOTHERMAL ENERGY TO REPLACE FOSSIL FUEL IN ACHIEVING ENERGY SECURITY HAS BECOME A NATIONAL COMMITMENT  ENERGY RESOURCES EMPOWERMENT WITH FOCUS ON OPTIMIZING THE ECONOMIC VALUES WOULD GIVE AN OPPORTUNITY FOR GEOTHERMAL DEVELOPMENT, WHICH CAN NOT BE STORED OR TRANSPORTED (ONSITE UTILIZATION) AND HAS LIMITED MARKET SHARE IN A SINGLE BUYER UTILIZATION  WITH THE INCREASING TREND IN PRICE OF OIL AND GAS, NATURALLY FOLLOWED BY OTHER FOSSIL BASED ENERGY, THERE IS A STRONGER BUSINESS RATIONAL FOR ACCELERATING GEOTHERMAL DEVELOPMENT  IN 2014, THE NATIONAL TARGET OF GEOTHERMAL UTILIZATION IS 4733 MW, WHICH CAN BE CONVERTED TO OIL AT ABOUT 180,000 BARREL OIL EQUIVALENT PER DAY (BOEPD). PERTAMINA’S OWN OPERATION CONTRIBUTES ABOUT 1342 MW, ( ~ 51,000 BOEPD) CONCLUSION

15. File:hen/srt/master Grafik-2.ppt