Selalu Hadir Melayani BAQ 2006 – Yogyakarta December 2006 PERTAMINA’S ROLE IN INDONESIA BLUE SKY PROGRAM

 Road to Unleaded Gasolines  Road to Low Sulfur & High Cetane ADO  Biofuel Development Topic

ROAD to Unleaded Gasoline & High Quality ADO

 Vehicles as one of main pollutant sources  PERTAMINA still produce some leaded Gasoline for mass transportation  PERTAMINA shall introduce better quality ADO (Automotive Diesel Oil) DRIVEN FACTORS : Need to improve better quality of energy for better life

 UL Premium-88, UL Premix-92 (later changed as Pertamax-91), UL Super TT-98 (later changed as Pertamax Plus-95) are supplied from Balongan Refinery since 2001 for Jakarta & surrounding cities.  In 2002, UL gasolines supply are extended for Depok, Bali, Batam and Cirebon. Balongan Blue Sky Project February 1996  In Aug 2005, a 52 MBSD Balongan Blue Sky Project was commissioned, and imported HOMC volume is significantly reduced. This project was proposed to the Government in February  Gradually from 2004 till June 2006, the TEL content in Premium-88 was reduced from 1.8 to 0.3 cc/USG.  Finally, in July-2006, PERTAMINA stopped producing Leaded Gasoline. Reducing lead content to develop clean energy Producing Pertadex for Automotive Diesel  Introducing more environmental friendly and higher quality ADO, Pertamina launched Pertadex with 53 Cetane Number and 300 ppm Sulfur since Aug for 6 Filling stations in Jakarta.

Pb Content in Premium-88 as produced by Pertamina Refineries (Jul-2006 survey) UP Lead content (as surveyed) g/liter Specification g/liter II III IV V *) *) Remain balance in storage & pipeline

Selalu Hadir Melayani CITIES, WHERE ARE AVAILABLE.UL PREMIUM, UL PERTAMAX AND UL PERTAMAX PLUS. CITIES, WHERE ARE AVAILABLE LEADED PREMIUM, UL PERTAMAX AND UL PERTAMAX PLUS. CITIES, WHERE IS ONLY AVAILABLE LEADED PREMIUM. JAKARTA BATAM BALI ACEH MEDAN PADANG BENGKULU LAMPUNG PEKANBARU BANDUNG YOGYAKARTA SEMARANG PONTIANAK LOMBOK UJUNGPANDANG BANJARMASIN MENADO AMBON SORONG KUPANG MERAUKE PALANGKARAYA JAMBI PALEMBANG SAMARINDA PALU KENDARI SURABAYA Environment BEFORE JULY-2006 Gasoline MAP SUPPLIED BY PTM REFINERIES – BEFORE JULY-2006

Selalu Hadir Melayani Environment SINCE JULY-2006 Gasoline MAP SUPPLIED BY PTM REFINERIES – SINCE JULY-2006 CITIES, WHERE ARE AVAILABLE UL PREMIUM, UL PERTAMAX AND UL PERTAMAX PLUS. CITIES, WHERE IS ONLY AVAILABLE UL PREMIUM. JAKARTA BATAM BALI ACEH MEDAN PADANG BENGKULU LAMPUNG PEKANBARU BANDUNG YOGYAKARTA SEMARANG PONTIANAK LOMBOK UJUNGPANDANG BANJARMASIN MENADO AMBON SORONG KUPANG MERAUKE PALANGKARAYA JAMBI PALEMBANG SAMARINDA PALU KENDARI SURABAYA

Biofuel Development

BACKGROUND  The President Rule No. 5/2006 re. National Energy Policy and The President Instruction No. 1/2006 re. Supply & Utilization of BIOFUEL as Alternative Fuel dated 25 January  SNI (Indonesian Standard)  SK Dirjen Migas 3675K/DM/2006 re. Specification & 3674K/DM/2006.  Commitment of PT. PERTAMINA to provide green fuel and energy diversification by utilizing renewable biofuel.

SAVING POTENTIAL OF FOSSIL FUEL Gasoline 88 RONKeroseneDiesel Requirement in ,000,000 10,000,000 26,000,000 5% Saving Potential 850, ,000 1,300, % Saving Potential 1,700,000 2,000,000 5,200,000 in KL Driven Factors : Security of Energy The National State balance of payments Reducing local & global pollutant emission (CO, particulate, etc. ) Long-term sustainable mobility solution effort Creating new market for agriculture industry

Next Step : November - December 2006 : to market Biosolar at all stations in Jakarta + several stations in Bekasi, Tangerang, Banten, Bogor (abt. 250 stations), Bandung dan Surabaya December 2006 : to launch BioPertamax E5 in Jakarta PRODUCT LOCATIO N LAUNCHING DATE STATION S NOS. VOLUME (KL/DAY) BiosolarJakarta20 May / BiosolarSurabaya12 August BiopremiumMalang13 August 2006 (Soft Launching) Biofuel Sales & Marketing

Biofuel Marketing Roll Out (scenario 1) Remarks Roll Out Plan (% to national Consumption)) 25%35%45%60%75%100% Fuel Consumption - Automotive Diesel 200 2,548 3,568 4,587 6,116 7,645 10,193 - Industrial Diesel - 1,702 2,382 3,063 4,084 5,105 6,807 - HSD- PT PLN - 1,619 2,267 2,915 3,887 4,858 6,478 - Automotive Gasoline 2 3,888 5,443 6,998 9,331 11,663 15,551 - Kerosene-Household - 2,393 3,351 4,308 5,744 7,180 9,574 Biofuel Requirement - FAME ,174 - Etanol Olein/FAME

Biofuel Marketing Roll Out (scenario 2) Optimistic Scenario Remarks Roll Out Plan (% to National Consumption) 25%35%45%60%75%100% Fuel Consumption (000 KL) - Automotive Diesel 200 2,548 3,568 4,587 6,116 7,645 10,193 - Industrial Diesel - 1,702 2,382 3,063 4,084 5,105 6,807 - HSD – PT PLN - 1,619 2,267 2,915 3,887 4,858 6,478 - Automotive Gasoline 2 3,888 5,443 6,998 9,331 11,663 15,551 - Kerosene – Household - 2,393 3,351 4,308 5,744 7,180 9,574 Biofuel Requirement (000 KL) - FAME10 1,251 1,752 2,252 3,003 3,753 5,005 - Ethanol ,166 1,555 - Olein/FAME

Selalu Hadir Melayani THANK YOU