“Greener, Faster, Together”

Driving Indonesia’s Energy Transition

through Green Investment
Primanitya Swastyastu | VP of Business Development – Gas Power
September 2022

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 Indonesia has developed a robust strategy to embrace energy transition and
sustain energy security “Greener, Faster, Together”

National Grand Energy Strategy – Global & National Commitment –

Current mix (2019) & Targets (2050) Current mix (2019) & Targets (2050)

Coal Oil Gas NRE RPJMN

2020-2024
COP 26 UNFCCC
9%

32-43%
“Membangun lingkungan hidup,
meningkatkan ketahanan bencana dan
31%
perubhan iklim”
20%
37% National Carbon Emission
Real Projected Reduction Target by 2030 Main Agenda of RPJMN
2019 2050

34% 24%
20%
1240
Million Ton
75-78
Indeks Kualitas Lingkungan Hidup
CO2e Reduction Target IKLH Achievement Target by 2024
Energy Consumption: 0.8 TOEcap. Energy Consumption: 3.2 TOEcap.

446 27%
Electricity Consumption: 1084 Kwhcap. Electricity Consumption: 7000 Kwhcap.

Million Ton National Carbon Emission

Energy Sector CO2e Reduction Target Reduction Target by 2024

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Source: National Energy Committee (DEN), UNFCCC, RPJMN 2022-2024
PNRE leads the energy transition and decarbonization of Pertamina – while driving
green investment through strategic cooperation

Building up a broad
100% portfolio of Clean
Energy businesses
is a key focus for PNRE moving forward,
in order to support the energy transition
goals of Pertamina, Indonesia and beyond

Strengthening
decarbonization and
presence of renewable
and future energy
PNRE plays a key role in decarbonizing
hard-to-abate sectors through
electrification, batteries, hydrogen and
carbon reduction projects

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 To support Net-Zero aspirations and decarbonization agenda, Pertamina has
developed a holistic energy transition pillar and investment strategy “Greener, Faster, Together”

Pertamina Investment Strategy

Est. Pertamina Capex 2022-2026

Carbon Clean Upstream

Economy Hydrogen 45%
$34 Billion
H2
EV & Battery Geothermal Downstream
37%
8 Pillars of $28 Billion
Pertamina
Energy ~10% higher
Transition Energy Transition1 than average IOC
Renewable 14% investment in
BioEnergy Energy1
$11 Billion NRE

Gasification Green Other Portfolio

Refinery 4%
$2 Billion

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1. Gas & New Renewable Energies
 PNRE optimize 2nd largest tropical forest in the
world for low cost NBS through strategic
cooperation; accelerating climate investment for
Building Nation’s decarbonization and creating tangible impact
Carbon Economy for biodiversity and community development…

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 NBS can be the backbone of Indonesia’s carbon economy with our 2nd largest global
low cost NBS potential

% Share of NBS potential

#1
of world fauna species
>95
Mn Ha of forest area

1% Canada
Finland

1% 3%
Russia
#2
largest mangrove cover with
>500
Forest concessions
Sweden 1%
4mn Ha

3% United States

China 2%
17% 15%
largest tropical rainforest Contribute to supply of
2%
Mexico
India 2%
and peatland cover global NBS potential
1% Cuba 1% Laos
Central African 1%
Nigeria Republic Myanmar Philippines
Venezuela (Burma) 1% 1%
Guinea

~300 3X
1%
2% Guyana 1% 1% 1%
Colombia 3% Vietnam
1% 1%
1% Thailand
Suriname Cameroon
1% Democratic Republic of the
Cambodia 3%
2%
Republic of the Congo 5% Congo 15%
Malaysia 3% Papua New Guinea

Peru
4%
3%
15% Brazil
Angola
1%
1%
Zambia

Indonesia Bn tons CO2 carbon Growth rate compared to

Bolivia 1% 1% Madagascar
1% Australia stored in Indonesian land, trees planted in non-
Mozambique
up to 40x annual GHG tropical area, will increase
Argentina
1%
While the bulk of low-cost1 emission from fossil fuels effectivity of CO2 storage.
supply is in the Global South,
this does not devalue action in
the Global North

Represented on the map:

Lower-cost1 potential (high- medium feasibility NBS)
Countries with a share of NBS potential that is 1% or greater

1. Low cost refers to the "practical potential of NBS (see "About the research" box). "Practical" potential is apportion of the total NBS abatement potential in recognition of the fact that it becomes
progressively more difficult to secure carbon credits as the total potential of each source is approached. It uses an economic filer (agricultural rent) to identify and remove "low-feasibility" lands. We refer
to it primarily as "practical" instead of "low cost" to reflect that it is just one of a number of barriers to mobilizing NBS (e.g., social, political, etc.). However, it is most appropriate in the context of a map to
highlight that is also a reflection of the low costs that help to explain the bulk of volume in the global South as represented here
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 PNRE has started to drive green investment through NBS cooperation with one of
the largest forestry concession holder in Indonesia

Jan-Mar
2022 67 ~3,6
Concessions evaluated Mn Ha areas covered in
high-level FS

Mar-May
2022
9 ~0,7
Potential concessions Mn Ha areas evaluated for
identified Pre-FS

May-Jun
2022
~11 ~7
Mn Tons/year CO2e Mn Tons/year potential
potential GHG reduction carbon credit generated

20 June Signed Binding Agreement &

2022 Started Project Design Development
=
HoA signed for cooperation to develop 9 concessions as Q1 2023 Project Registration
NBS projects

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 Develop at-scale green hydrogen production for
national industries; drive decarbonization of the
hard-to-abate sectors (e.g. power, steel, chemical,
Unlock National transportation, etc) and bridge renewable energy
Clean Hydrogen Potential supply in remote areas…..

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 Hydrogen is one of the new energy to replace declining
fossil fuel production in Indonesia

GREEN TRANSITION SCENARIO1

Indonesia final consumption mix (green transition scenario), mnTJ

H2 Electricity Bioenergy Natural Gas Oil Coal

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11 As a result of energy
10 ~15% transition, mix of
9 H2 share in conventional energy is
Larger share of new and energy mix
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renewable energy
expected to decline post
7 2025
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5 H2 is expected to be
4 Smaller share of ~5% of energy mix by
3 conventional energy 2040 and ~15% by 2050
2
1
0
2019 25 30 40 2050

1. TCO of hydrogen use as an alternative fuel and feedstock becomes competitive coupled with regulatory push on clean fuel uptake leads to growing hydrogen uptake 9
 “Greener,
“Greener, Faster, Faster, Together.”
Together”

Beyond 2030
2027 - 2030
Pertamina
2022 - 2026 Leading H2 exporter
aspiration International and champion of
Pertamina aims to be a First mover in SE market priority Indonesia H2
economy
leading H2 exporter and Asia, capture export and cultivate
market early domestic demand
champion of Indonesia
H2 economy Scale,
50-200 ktpa 400-1,000 ktpa >2,000 ktpa
H2e

• Launch pilot H2 and • Scale up export • Develop at-scale

Focus NH3 projects for export volume for both H2 production
• Establish partnerships and NH3 • Build Indonesia H2
• Cultivate domestic economy
market

Main
use-cases
Power (co-firing) Transportation Chemicals, steel & Marine
refining

RAHASIA DAN TERBATAS | CONFIDENTIAL 10

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 “Greener, Faster, Together”

“towards cleaner and more sustainable energy for Indonesia”

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