Gas Development Master Plan Steering Committee Meeting – 28 March 2013 GDMP Overview

2 Objectives Developing a long-term strategy for the future development of Indonesia’s gas market (for up to 50 years) Identifying key transportation infrastructure required for the gas market in the medium to long-term (20-25 years) Defining policy measures required to implement the strategy Building the capacity for continual development and improvement of the long-term strategy while recognising the huge uncertainties around future Indonesian and international energy markets

3 Three inter-linked tasks TASK A GDMP Model TASK A GDMP Model TASK B Policy issues TASK B Policy issues TASK C Capacity-building TASK C Capacity-building Optimal uses of gas in the long to very long-term Medium-term infrastructure development plan Barriers to increasing gas production Promoting the domestic gas market Using the GDMP Model for planning Revising the regulatory framework

4 Task A components Task A1 Benchmarking - completed Task A2 Market Conditions – in progress Task A3 Demand Scenarios – in progress Task A4 Supply Situation – completed Task A5 Supply and Demand – in progress Task A6 Gas Infrastructure – data availability issues Task A7 Load Management - data availability issues Task A8 Gas Economic Benefits - later Task A9 Development of Uneconomic Fields – in progress Task A10 Economic Ranking - later Task A11 Investment and Financing - later Task A12 Manpower Requirements - later

5 Task A activities Scenarios Task A5 GDMP Model Demand Task A3 Market Issues Tasks A1 / A2 Supply Task A4 Infrastructure Options Tasks A6 / A7 Economic Ranking Task A10 Infrastructure Plan Tasks A11 / A12 Gas Economic Benefits Task A8 Optimal Uses of Gas

6 Task B policy notes B1 – Overview of gas resources and development potential B2 – Impediments to developing resources B7 – Review of PSC provisions B4 – Policy support for developing domestic gas markets B5 – Framework for gas infrastructure development B6 – Permitting and approvals processes B8 – Regulation of consumer gas prices B9 – Private investment in gas infrastructure B3 – Identification of policy gaps and recommendations for policy action B10 – Gas export scenarios Increasing gas production Developing the domestic gas market Improving the policy framework As inputs to GDMP Model Using outputs from GDMP Model

7 Deliverables Consensus-Building Workshop – June 2012 Inception Report – August 2012 – issues and scope of work Interim Report – March 2013 – progress update on Task A / drafts of B1 to B6 Draft Final Report – to be determined – draft strategy and infrastructure plan / drafts of B7 to B9 Final Report – to be determined – revised strategy and infrastructure plan / draft of B10 Final Policy Notes – to be determined – revised B1 to B10 Training Programme – two-day GDMP Model Scenarios workshop proposed for May 2013 – other model training workshops to be arranged at a later date