Investor Presentaiton

2018 Clean Energy Development Highlights . Delay in PLTS Cirata project. Previously, PLN directly appointed Masdar from UAE to develop floating solar PV project in Cirata, West Java, which will add 200 MW into the network with project value at USD 300 million. The PPA, however, was canceled to hinder lawsuit in the future (because the appointment process was not transparent and inconsistent with MEMR Reg. No. 50 which requires solar projects to be procured through direct selection based on capacity quota) as well as to get the most competitive tariffs the IPPs can offer. Currently there are three potential investors from Korea, China, and UEA (Masdar) which compete to develop the Cirata project. Delays in operation of three geothermal projects: Lumut Balai, Sorik Marapi and Sokoria, with total capacity of 90 MW. These three projects were expected to start delivering power into the grid in August and December 2018 but delayed to 2019. The postponement was caused by delays in transmission construction undertaken by PLN. PT Pertamina Geothermal Energy (PGE) revised its geothermal development target from 2100 MW to 1120 MW in 2025. PGE will also not reach its $277 million investment target in 2018 due to delays in drilling of some geothermal wells such as in Lahendong and Tompaso and delays in construction of Lumut Balai Unit I. In general, investments in geothermal energy experienced a slowdown in 2018. IESR (Institute for Essential Services Reform) | www.iesr.or.id 5

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