GEOTHERMAL IN INDONESIA (OVER VIEW) Sigit Rahardjo Operation Director PT PERTAMINA GEOTHERMAL ENERGY Jogjakarta , Mei 2013

4. Environmentally friendly Characteristic of geothermal business Geothermal Business 1. Specific location 2. Non Quick Yielding 3. Sustainable energy 4. Environmentally friendly 5. On Site Utilization 6. Long Term Contract Single buyer (PLN)

Indonesia has the highest potential for geothermal energy in the world Conventional geothermal 2010 capacity and total potential capacity GW Resource Utilization % 4 Indonesia 27 28 In spite of its world’s largest potential of geothermal resource, the utilization only remains 4% Geothermal resource in Indonesia is also high temperature resource which enable more economical geothermal development project U.S. 20 23 13 Japan 1 19 20 3 Others1 18 20 10 4 6 33 Philippines 20 Mexico 5 6 Iceland 1 5 6 10 3 4 16 New Zealand 1 Total 102 113 10 Installed Potential 1 Includes mostly South/South-East Asia and Africa SOURCE: GEA; DOE; EER; World Geothermal Congress; Energy Information Administration (EIA); interviews

INDONESIA’S WORLD LEADING GEOTHERMAL PROSPECT MAGMA Semarang Medan Tanjung Karang Bandung Manado Speculative : 27.141 MW Probable : 10.253 MW Bali & NTT Speculative : 1.676 MWe Probable * : 871 MWe Java Speculative : 9.471 MWe Probable * : 3.086 MWe Sumatera Speculative : 13.258 MWe Probable * : 5.433 MWe Sulawesi Speculative : 1.907 MWe Probable * : 721 MWe Borneo Speculative : 45 MWe Probable * : - MWe Current Installed Capacity : 1,337 MW Maluku Speculative : 734 MWe Probable * : 142 MWe Papua Speculative : 50 MWe Probable * : - MWe Geothermal location

GEOTHERMAL ROAD MAP 1.337 MW 5171 MW 2006 852 MW (Production) 2008 (Based on President Decree No. 5/2006 on National Energy Policy; Modified by MEMR.REG. No. 15/2010) Current Condition 2006 852 MW (Production) 2008 2012 2016 2020 2000 MW 3442 MW 5171 MW 7788 MW 12332 MW (Target baru ) 1148 MW Existing WKP 1442 MW 3977 MW Existing WKP + New WKP 2617 MW New WKP 4544 MW 2025 1.337 MW 2014 Plus The second 10,000 MW fast track program 4600 MW * 9500 MW * 5171 MW Ministry decree MEMR No. 15/2010 Under the second 10,000 MW fast-track plan, 34% of energy development come from geothermal energy. (GSDM, 2010, Update Jan 2013) *) Road Map 2007

PERTAMINA AIMS TO BE A LEADER IN GEOTHERMAL DEVELOPMENT Geothermal development by operator type Capacity GW Share of SOE % SOE 1 Private 23 Indonesia 0.9 1.3 61 Philippines 0.8 2.0 100 Mexico 1.2 84 Iceland 0.1 0.6 New Zealand 0.7 54 0.3 State-owned Enterprise energy companies developed more than 50% of geothermal energy in respective markets 1 State Owned Enterprise SOURCE: company websites 5

PGE’s WORKING AREA TOTAL PGE’S INSTALLED CAPACITY: 402 MW 1 14 13 2 3 4 5 6 Ref. Ministerial Decree MEMR No 2067K/30/MEM/2012 7 9 8 10 11 12 Sibayak-Sinabung Sibual-buali Sungai Penuh Hululais Lumut Balai & Margabayur 6. Gunung Waypanas 7. Cibeureum Parabakti 8. Pangalengan 9. Kamojang/Drajat 10. Karaha Cakrabuana 11. Gn. Iyang Argopuro 12. Tabanan 13. Kotamobago 14. Lahendong

GEOTHERMAL DEVELOPMENT CONCEPT TO SUPPORT ACCELERATION OF GEOTHERMAL DEVELOPMENT IN LINE WITH 10,000 MW POLICY STAGE II – EBTKE’S VISION 25/25 (5 % ENERGY MIX / 12.332 MW - 2025) GGGR, OPERATIONAL, TECHNICAL ASPECT MAINTENANCE LAW, REGULATION, PERMIT LEGAL ASPECTS BUSINESS PORTFOLIO ECONOMIC APPROACH PROJECT MANAGEMENT, IMPLEMENTATION RISK ASSESSMENT, ENV MGT GEOTHERMAL ENERGY DEVELOPMENT POLICY (PRES DECREE No. 5 / 2006; GOV’T REGULATION No. 3/2005 – No. 70/2010 : PERMEN ESDM. No. 5 / 2009; No. 2/2011; PERPRES No. 4/2010 : PERPRES No. 10/2011) 1000 MW : 42.250 BOEPD 6.1 JT TON CER”S/YEAR

IDEAL GEOTHERMAL BUSINESS PROCESS IN INDONESIA COD US$ HEAD OF AGREEMENT PRICE AND CONTRACT NEGOTIATION Notice Of Resorces Confirmation Notice Of Intend to Develop AMDAL / UKL / UPL (EIA/Environment Management Effort/Environment Monitoring Effort) Location Permit Permit of Land usage for Exploration Activities – Forestry Minister SIPPA (Surface Water Usage Permit) IMB (Construction Permit) EPC FEED EXPLOITATION AMDAL (EIA) Location Permit Land Usage Permit SIPPA (Surface Water Usage Permit) IMB (Construction Permit) EXPLORATION 2 Years 3 Years INVENTORY WKP

Pertamina aspires to achieve by 2015 MW Steam Availability 2012 13 14 15 16 17 2018 K Boepd Oil equivalent 2012 2013 2014 2015 2016 2017 2018 9 9

KEY BARRIERS TO GEOTHERMAL DEVELOPMENT IN INDONESIA Description Uncertain economics High upfront capital requirement Uncertainty on pricing Higher capital expenditure compared with other power generation technologies Cost of USD 35-50 Mn for preliminary studies including exploration wells to prove the reserves without any external financing Development and exploration costs are solely borne by geothermal company and are not reimbursed by government unlike the practice in oil & gas industry All these together mean that under the current environment, geothermal development projects are potentially high risk, especially for smaller operators Implementation of MEMR Decree on Feed In Tariff requires further negotiation with PLN as a single buyer Uncertain environ-ment Regulatory uncertainty Other risks Most of the geothermal reserves are located in protected forests and geothermal activities are not allowed to carry out in forest conservation areas Overlapping jurisdictions increases lead time and complexity as local authorities often block the projects approved by the central government Tariff agreement with PLN often comes back for the renegotiation, hence no guarantee on the price PLN off take is not guaranteed by government

PGE PRODUCTION FIELD - OWN OPERATION 11 PGE PRODUCTION FIELD - OWN OPERATION POWER PLANT UNIT – 4 ( 60 MW ) POWER PLANT UNIT 1,2 & 3 (30; 2 x 55 MW) KAMOJANG GEOTHERMAL FIELDS SIBAYAK GEOTHERMAL FIELD POWER PLANT UNIT-1 PRODUCTION CLUSTER UNIT-2 POWER PLANT UNIT-4 LAHENDONG GEOTHERMAL FIELDS

PGE GEOTHERMAL FIELDS UNDER JOC SCHEME WAYANG-WINDU GEOTHERMAL FIELDS (JOC-STAR ENERGY) PLTP 1x110 MW & 1x117 MW DARAJAT GEOTHERMAL FIELD (JOC-CHEVRON) PLTP 1x55 MW, 1x95 MW & 1x121 MW SALAK GEOTHERMAL FIELD (JOC-CHEVRON) PLTP 3x60 MW & 3x65 MW

PGE’S GEOTHERMAL ONGOING PROJECTS No Project Name Location Capacity (MW) Project Type 1 Lumutbalai Unit 1&2, Sumatera Selatan 2 x 55 MW Total Project 2 Lumutbalai Unit 3&4, 3 Ulubelu Unit 3&4, Lampung 4 Kamojang Unit 5 Jawa Barat 30 MW 5 Lahendong Unit 5&6 Sulawesi Utara 2x20 MW 6 Kotamobagu Unit 1&2 2 x 20 MW Steam Supply 7 Hululais Unit 1&2 Bengkulu 8 Sungai Penuh Unit 1 Jambi 55 MW 9 Karaha

Key Indicators: UPCOMING GREENFIELDS DEVELOPMENT PLAN MAGMA Semarang Medan Tanjung Karang Bandung Manado Way Panas Kotamobagu Tambang Sawah Bukit Daun Margabayur Ciharus Iyang Argopuro Masigit-Guntur Sumurup Sinabung Name of Prospect Area Ins. Capacity (MW) Sumatera Island 1 WKP Sungai Penuh 1. Semurup 40 2 WKP Hululais – Tambang Sawah Tambang Sawah Bukit Daun 70 110 3 WKP Lumut Balai 1. Margabayur 75 4 WKP Ulubelu – Way Panas 1. Way Panas 120 Java Island 5 WKP Kamojang G. Masigit Guntur Ciharus 50 30 6 WKP Iyang Argopuro 1. Iyang Argopuro 55 Sulawesi Island 7 WKP Kotamobago 1. Kotamobago 60 Key Indicators: New Geothermal Power Generation Capacity : ± 610 MW Additional Power Generation (kWh per year) : ± 4800 million Avoided CO2 : ± 4,5 million tonnes per Year

THANK YOU Bekerja dan ibadah adalah energi kami Semoga semua upaya menghasilkan manfaat Insya Allah! 15