#1SAFETY SAPP 70014 1871 PERTAMINA October 2015 PT Pertamina (Persero) Pertamina Highlight 1H 2015 Investor Presentation for Non-Deal Roadshow PERTAMINA PERTAMINA#2Disclaimer By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by representatives of PT Pertamina (Persero) (together with its subsidiaries, the "Company") for use in presentations by the Company at investor meetings and does not constitute a recommendation regarding the securities of the Company or any of its affiliates. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. 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PERTAMINA#3Table of Contents 1 3 2 PERTAMINA Company Overview Key Credit Highlights Financial Highlights Page 2 12 18#4Section 1 Company Overview 2 PERTAMINA Pertamina Head Office, Jakarta PERTAMINA#5Overview of Pertamina Pertamina is wholly-owned by the Government of Indonesia and is a strategic national asset and key contributor to the Government's revenues via taxes and dividends Government of Indonesia ("GOI") PERTAMINA Dwi Soetjipto President Director & CEO Syamsu Yenni Ahmad Alam Andayani Bambang Rachmad Hardadi Arief Budiman Gas, New & Upstream Director Marketing Refinery Finance Renewable Director Director Director Energy Director Dwi Wahyu Daryoto Human Resources & Director General Affairs Source: Pertamina PERTAMINA 4#6Pertamina at a Glance Pertamina has a critical role in Indonesia's energy sector Summary of Pertamina Operations Upstream Oil and Gas Estimated 2P reserves of 5,182mmboe - 76% proven - 50% oil 84% domestic operations International presence with six working areas in three countries Malaysia, Iraq and Algeria ■ Oil production of 274mboe/d, gas production of 1,481mmcf/d (277mboe/d) Geothermal ■ 14 geothermal working areas ■ Total installed capacity of 437MW (own operation) from 4 operating areas ■ Estimated 2P reserves of 1,550MW Others ■ Oil field and drilling services Downstream Refining and Marketing ■ Dominant Indonesia refiner with 6 refineries and total capacity of 1,031mbbls/d Average Nelson Complexity Index of 5.4 Refined products slate cater to 66% of domestic demand (2014) ■ Leading provider in subsidized and non- subsidized fuel, industrial fuel, LPG and lubricants ■ Unmatched distribution network in Indonesia including - 5,246 retail fuel stations - 576 LPG filling plants ■ Other infrastructure including - 203 vessels 196 fuel terminals, aviation fuel units, LPG terminals & depots and lubricant oil blending plants Gas, New & Renewable Energy Extensive gas transmission and distribution pipelines totaling 1,624km ■ Six LNG/regas plants across Indonesia " Evaluating opportunities to expand into renewables and green fuels Note: List of assets is not exhaustive. All figures as of 1H15 unless stated otherwise Source: Pertamina PERTAMINA Key Highlights ■ 28,362 employees ■ 2014 financial performance - Revenue: USD70.64bn EBITDA: USD5.84bn Net income: USD1.53bn ■ 1H2015 financial performance Revenue: USD21.79bn EBITDA: USD2.34bn Net income: USD0.58bn ■ 1H2015 cash balance of USD3.33bn 1H2015 undrawn credit lines of USD5.77bn Downstream and others 22% 0 Upstream 78% 1H2015 EBITDA: USD2.34bn LO 5#7Pertamina's Operations Across the Value Chain Pertamina is the only energy company in Indonesia that operates across the entire energy value chain with operations that are continually enhanced with development of reserves and refinery capacity expansions and upgrades Upstream Crude oil and refined product imports Downstream Refining Refined products Crude oil Drilling services Trading/export Refineries Crude oil Petrochemical products Exploration, development and production domestically and overseas Geothermal Marketing & Trading Distribution through fuel depots and stations: Kerosene, Gasoline, Diesel, HSD, LPG Transmission lines Petrochemical facilities Marketing and trading LPG Process Gas trading transmission Natural gas LPG plants LNG LNG trading Production facilities LNG shipping Steam LNG plants Exports to other countries Production facilities Electricity Power plants Gas, New and Renewable Energy ■ PT Pertamina Gas ■ PT Nusantara Regas Electricity distributor Downstream ■ PT Pertamina Trans Kontinental ■ PT Pertamina Retail ■ PT Pertamina Lubricants ■ PT Pertamina Patra Niaga Key operating companies PT Pertamina EP ("PEP") ■ PT Pertamina EP Cepu ("PEPC) ■ PT Pertamina Drilling Services Indonesia Upstream ■ PT Pertamina Hulu Energi (PHE) ■ PT Pertamina Geothermal Energy ("PGE") ■ PT Pertamina Internasional Eksplorasi & Produksi ■ PT Elnusa Tbk Note: Illustration of activities not comprehensive and does not reflect Pertamina's organizational structure Source: Pertamina PERTAMINA 6#8Pertamina Stands to Benefit From the Growing Indonesian Energy Sector With its integrated position, Pertamina is well-positioned to benefit from energy demand growth across oil, gas and refined products Favorable Indonesian Oil and Gas Demand Outlook mboe/d Oil Demand '15-'25E CAGR: 2.5% 2,008 1,729 1,563 1,563 1,327 1,172 mmcf/d Gas Demand '15-'25E CAGR: 2.9% 4,883 5,455 3,848 4,100 2,900 2,546 iiiiiiiil 2000 2005 Source: Wood Mackenzie 2014 2015E 2020E 2025E 2000 2005 2014 2015E 2020E 2025E Source: Wood Mackenzie Growing Demand for Refined Oil Products 2015E 2025E CAGR (%) Favorable Macroeconomic Dynamics Largest economy and population in South East Asia ■ Visible Indonesian oil and gas demand growth outlook to 2025 Equally, favorable expected refined products demand growth Robust energy demand supports price increase to end users Indonesia has the Highest GDP and Population, but one of the Lowest per Capita Primary Energy Consumptions in the Region mbbls/d 1.9% -> 2.3% -2.3% - 722 699 599 559 2.4% (1.1%) -2.7%-> -10.9% -> 235 180 185 97 123 46 41 66 Gasoline Diesel / Avtur/Kero Gasoil Fuel Oil LPG Naphtha -2015E ■ 2025E PERTAMINA USDbn 1,364 GDP and Total Population (2014) 1,267 Primary Energy Consumption Per Capita (2014)(1) mtoe 13.9 10,360 253 67 30 91 5 2,0671 889 1374 327 308 186 ■ GDP Population mn pax 3.0 2.2 1.8 0.7 1 0.7 0.5 I Source: Wood Mackenzie Source: World Bank Source: World Bank, BP Statistical Review 2015 (1) Primary energy comprises oil, natural gas, coal, hydro-electricity and renewables. Primary energy consumption per capita calculated as total energy consumption (BP) divided by total population (World Bank)#9mmboe Upstream Overview Pertamina is the largest oil and gas producer in Indonesia. It also has a growing international presence with six blocks in three countries Diversified Reserves and Production (1H2015) Indonesia: Overseas 419 8% East Indonesia 774 15% Java 1,853 36% Sumatra 2,136 41% Total 2P Estimated Reserves: 5,182mm boe ■ 76% of 2P reserves are proven ☐ Oil accounts for 50% of 2P reserves Largest Reserves in Indonesia Overseas 90 16% Domestic 461 84% Total Production: 551mboe/d Pertamina's domestic upstream activities are managed by a number of subsidiaries, including: PEP (24 blocks) PHE (43 blocks) PEPC PGE (4 geothermal operating areas) International: Operations in Malaysia, Iraq and Algeria Dominant Oil and Gas Producer in Indonesia Growing Oil and Gas Production 5,182 551 ■Gas ■ Oil ■Gas ■ Oil ■Gas ■ Oil 508 520 551 454 456 274 239 254 197 202 2,591 274 1,955 1,737 167, mboe/d 306 220 1,470 1,426 48 161 143 76 272 2,591 1,788 71 277 31 1,661 696 21 1,355 173 774 130 122 34 INPEX JOGMEC Chevron Chevron INPEX TOTAL ConocoPhillips January 1, 2015 PERTAMINA mboe/d 257 255 269 266 277 2012 2013 2014 1H14 1H15 Source: Estimated Pertamina 2P reserves per Pertamina 1H2015 Source: Pertamina production as per Pertamina 1H2015 reported. Other companies based on Wood Mackenzie working interest commercial and technical reserves as of reported. Other companies' production figures are for 2014 per Wood Mackenzie Note: Total production figures are not adjusted historically for pro forma impact of acquisitions Source: Pertamina unless stated otherwise 8#10Refining and Marketing Overview Pertamina remains the dominant oil refiner and marketer in Indonesia with an unmatched production and distribution network across the archipelago Business Highlights Dominant refiner in Indonesia with 6 strategically located refineries with total capacity of 1,031mbbls/d ■ Refined products slate caters to 66% of domestic demand (2014) Downstream margins optimized by integrated supply chain, with over 60% coming from Pertamina's own domestic upstream production OExpansion projects and new-builds to enhance competitive position Dominant Downstream Position Distribution Channels Gas stations LPG filling plant Vessels Fuel terminals Aviation fuelling units LPG terminals & depots Lubricant oil blending plants 5,246 stations 576 units 203 units 112 units 62 units 19 units 3 units Refinery and Distribution Network RU II Dumai/Sei Pakning 170 mbbls/d NCI: 7.5 Sumatra Jakarta Import RU VI Balongan RU III Plaju 118 mbbls/d NCI: 3.1 RU V Balikpapan 260 m bbls/d NCI: 3.3 Malaysia Singapore Kalimantan Java RU VII Kasim / Sorong 10 m bbls/d NCI: 2.4 Total 1,031 mbbls/d NCI: 5.4 125 mbbls/d NCI: 11.9 RU IV Cilacap 348 mbbls/d Import NCI: 4.0 Domestic Oil Refinery- Distribution Routes Transit Terminal : Fuel Depot Back Loading Terminal Source: Pertamina. Data as of June 30, 2015 PERTAMINA West Papua Floating Storage 9#11Gas, New & Renewable Energy Overview Pertamina has a comprehensive presence across the gas value chain (production, sourcing domestically and internationally, infrastructure development and commercialization) and is developing new & renewable energy Gas Business Transmission Sourcing and trading and distribution Processing LNG Infrastructure Marketing Gas, New & Renewable Energy Pertamina Gas Trading, storage and transportation of natural gas through pipeline network 1,624km of gas pipelines PT Badak (Bontang) (17mmtpa) LNG provider Kalimantan Donggi Senoro (DS) LNG (2mmtpa) ■ LNG provider Sulawesi PT Perta Daya Gas ■ LNG provider Indonesia Timur ■ Mini LNG storage and regas PT Nusantara Regas (3mmtpa) Operation and development of storage facilities and regas terminals PT Perta Arun Gas ■LNG receiving terminal and regas PT Perta Samtan Gas ■ LPG plant Future plans Evaluating opportunities to expand into gas-fired and renewable power generation as well as implementing green fuel diesel technology Source: Pertamina PERTAMINA 10#12Important Achievements in 2014 and 2015 To Date Pertamina made significant progress in 2014 and 2015 to date in its strategy of becoming one of Asia's leading integrated energy companies Stake acquisitions carried out during the year - - - Key Achievements in 2014 First stage closing (20%) in Murphy Oil's Malaysia assets (consideration for 30% was USD 1,879mn) 7.48% in Block Southeast Sumatra (USD52.62mn), bringing total stake to 20.55% Participating interest in Block Siak, Central Sumatra for a period of 20 years until 25 May 2034 (USD20.00mn) 15% in Block East Sepinggan (USD10.52mn) 15% in Block Babar Selaru with Inpex Corporation (USD5.64mn) Participating interest in Block Kampar ■ Execution of Refinery Development Master Plan ("RDMP”) aimed at revitalising existing refinery units that were built in 1930 - 1990 Expanded gas retail station network Took delivery of the world's largest two Very Large Gas Carriers ("VLGC") Stake acquisitions carried out during the year Performed depot facility and infrastructure upgrade as well as restoration of Fuel Terminal, LPG Terminal, Aviation Fueling Unit and pipelines Executed Fuel Monitoring and Controlling System Program aimed at monitoring and controlling subsidised fuel distribution Execution of Fuel Development Program to strengthen distribution network Approximately nine infrastructure projects entering planning, construction or development phases Completion of Arun-Belawan gas pipeline, seven Mechanical Refrigeration Units ("MRU”) and nine Natural Gas Fuelling Stations ■ Established a cooperation with Indonesian state-owned plantation, PT Perkebunan Nusantara IV (Persero) to develop the future of biofuel Cooperation agreement to provide fuel storage infrastructure, retail and industry fuel business development in Timor Leste - Key Achievements in 2015 To Date Second stage closing (10%) in Murphy Oil's Malaysia assets 15% in Eni East Sepinggan (USD17.36mn) ■ Construction of a Residual Fluid Catalytic Cranking ("RFCC") refinery in RU IV Cilacap On-stream products production targeted by the end of 2015 Development of Donggi Senoro LNG plant Targeted to come on-stream in 2015 ■ 114% increase in PEPC oil and gas production from 13.64mboe/d (1H2014: Oil 12.8mbopd; Gas 4.97mmscfd) to 29.20mboe/d (1H 2015: Oil 28.2mbopd; Gas 5.81mmscfd). Preparation for Jambaran Tiung Biru Field with expected production 11.8mboe/d and targeted to come on-stream in 2019 Conversion of Arun LNG receiving and regasification terminal Targeted to come on-stream by end of 2015 Source: Pertamina PERTAMINA 11#13Section 2 Refinery Unit VI Balongan Key Credit Highlights PERTAMINA#14Key Credit Highlights Pertamina's operating environment and Management's new strategy have changed significantly over previous years, leading to a shift in the positioning and outlook for the Company Uniquely positioned to replace and grow upstream oil and Pertamina's Strengths Key national asset with strong Government support 2 gas reserves Responsive to lower oil price environment The only integrated oil and gas company in Indonesia 3 Disciplined capital expenditure program Strategically positioned in Indonesia's fast growing energy market 4 Sustained growth from 5 significant reserves and proven track record Geared to growing domestic gas market Downstream strategy centred around maintaining and optimising refining assets 6 Stands to benefit from ongoing deregulation Robust financial profile PERTAMINA 7 Focused on strong corporate governance and transparency 13#15Responsive to Lower Oil Price Environment Pertamina has the flexibility to adjust its spending to changes in the oil price environment. The Company is pursuing its 5-pronged strategy to grow in the current environment ■ • Several measures by Pertamina in response to the decline in oil prices - Revised internal oil price assumptions – 2015 capital expenditure revised down by c.60% from original budget (15% excluding M&A) – 2015 operating expenditure revised down by c.35% (>USD700mn) from original budget ■ Material working capital improvement in 1H2015 due to decrease in oil import payments and change in trust receipt drawdown policy Relatively low cash operating costs help shield upstream operations from price decline 1 2 Expand upstream 5-pronged strategy Acquire and develop potential domestic blocks (Mahakam, Cepu, ONWJ) ■ International expansion ■ Acceleration of Geothermal and New Energy development Operations Excellence Exploration Source: Pertamina PERTAMINA 3 4 5 Increase refinery capacity and competitiveness Upgrades through Refinery Development Master Plan ■ Grass root refineries ■ Revitalization and integration of private refineries ☐ Develop marketing and distribution infrastructure Increase storage and terminals capacity Develop world class gas stations and marketing networking Marketing Operation Excellence ■ International expansion B Pursue operational efficiencies Efficiency in supply chain management ■ Reduce losses ■ Streamline corporate functions ■ Centralize procurement and marketing Maintain financial prudence ■ Settlement of Government receivables Alignment of short and long term loans Management of investment planning and evaluation 14#16Disciplined Capital Expenditure Program Pertamina has realigned its 2015 capital expenditure budget and remains focused on high return projects in upstream as well as targeted investments in downstream Capital Expenditure Breakdown USD bn 7.85 6.78 0.27 44% 0.41 2.09 1.19 2015E Capital Expenditure by Segment: USD4.42bn Gas, New & Renewable Others 5% Energy 4.42 11% 0.20 1.02 Marketing & Trading 5.50 5.18 8% 3.20 2013 2014 2015E ■ Upstream Downstream Others PERTAMINA Refinery 4% Upstream 72% Disciplined spending program focused on high return projects ■ Maintain low finding and development costs and robust breakeven prices Note: Actual capital expenditure may differ materially from budgeted and expected capital expenditure Source: Pertamina 15#17Stands to Benefit from Ongoing Deregulation In January 2015 the Government implemented the New Fuel Price Policy has improved Pertamina's working capital position Before Implementation of New Fuel Price Policy Post Implementation of New Fuel Price Policy Principle Aims of New Fuel Price Policy Ease financial burden on State Budget ■ Redirect gasoline subsidy funds to public investment ■ Introduce market prices (and encourage more efficient use of fuel by public) Encourage competition and level playing field Fuel subsidy required allocation of >10% of annual Government budget ■ Pertamina's 2015 original expected fuel and LPG subsidy receivable from the Government of c.IDR238tn (USD20bn) (1) ■ Exceeded both infrastructure and social welfare spend combined ■ Pertamina Public Service Obligation mandate GOI Benefits to all parties while Pertamina retains strong Government support Pertamina's 2015 expected fuel and LPG subsidy receivable from the Government revised down to c.IDR56 tn (USD 4.5bn) (2) ■ Gasoline subsidy removed Diesel subsidy limited to IDR1,000/liter ☐ More manageable cash flows Pertamina Requirement to fund fuel subsidies (typically in advance) ■ Improved working capital position by c.USD600mn as of 1H2015, versus YE2014 PERTAMINA (1) USD IDR foreign exchange of USD1: IDR 11,900 used for original 2015 budget (2) USDIDR foreign exchange of USD 1:IDR 12,500 used for revised 2015 budget Source: Pertamina 16#18Focused On Strong Corporate Governance and Transparency Pertamina applies the principle of Good Corporate Governance ("GCG") throughout its functions, such as Board of Commissioners, Board of Directors, Internal Audit, Legal Counsel and Compliance and other relevant functions Implementation of GCG as Part of Pertamina's Transformation Transparency 1,706 LHKPN (Wealth Report of State Official) Fairness Accountability Pertamina's GCG Principles Independency Responsibility Independently Managed Whistle Blowing System ("WBS") Under Investigation 23 59 Reports Received (2014) Follow Up Completed 36 Compulsory report related to the Board of Directors, Board of Commissioners and managerial level 95.2% of the 1,792 total compulsory reports target in 2014 (63.2% in 2013) Implementation of a Gratification Control Program under Compliance Sent to KPK(1) Authority 75 216 Reports 71.62 ASEAN SCORE CARD 2014 Assessment by the Indonesian Institute for Corporate Directorship, comparing GCG implementation in Pertamina with public companies in ASEAN, based on instruction from Board of Commissioners Awarded Best SOE in Controlling Gratification, Reflective of Healthy GCG Assessment Score (2) % 86.79 94.27 94.43 93.51 91.85 Oill Received (2014) Resolved by Company 141 83.56 (1) Corruption Eradication Commission (2) Awarded by the Corruption Eradication Commission Source: Pertamina PERTAMINA 2009 2010 2011 2012 2013 2014 17#19Section 3 Financial Highlights OWAN GORELLAS Bunyu Offshore Rig, East Kalimantan PERTAMINA#20USDbn Revenue and Other Financial Highlights Pertamina has maintained healthy EBITDA and Net Income margins despite volatility and decline in global oil prices, demonstrating the quality of its asset base Despite the decline in oil prices, Pertamina recorded healthy 1H2015 EBITDA and Net Income margins compared to the full year 2014 Injection of quality assets such as 30% in Murphy Oil's Malaysia assets, along with greater downstream optimisation have provided a platform improved earnings quality Positive impact on refining operations from oil price environment notwithstanding some inventory write downs EBITDA and EBITDA margin 10.76% 9.37% 8.59% 8.57% 8.27% 6.66 6.09 5.84 1.11 0.91 0.60 3.11 2.34 5.18 5.55 5.24 0.26 0.50 2.85 1.84 2012 2013 Upstream 2014 1H2014 1H2015 EBITDA margin PERTAMINA USDbn USD bn Revenue 0.3% (0.6%) 70.92 71.10 70.65 36.28 (39.9%) 67.26 67.45 66.41 21.79 34.25 20.05 3.67 3.65 4.24 2.02 1.74 I 2012 2013 2014 1H2014 1H2015 ■Upstream Downstream and others Net Income and Net Income Margin 4.31% 3.90% 3.13% 3.07 2.77 2.66% 2.17% 1.53 1.13 0.58 Downstream and others Note: 1H2014 and 1H2015 figures are unaudited. EBITDA calculated as income for the year - interest income + interest expense + income tax expense + DD&A Source: Pertamina. 2012 2013 2014 1H2014 1H2015 Net income Net income margin 19#21THANK YOU O PHE ONWJ Offshore Flow Stations PERTAMINA