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Investor Presentaiton

Green Economy Has Become One Of Indonesia's Economic Transformation Strategies The energy transition is inevitable, and we have to face it. As a country that still relies on fossil energy, Indonesia views the energy transition to reduce the share of fossil energy in the energy mix. This decline in share shortly will not necessarily reduce the amount of fossil energy used. For doing so, Indonesia has several policies on compensation and incentives, i.e., clean energy acquisition, energy transition mechanism (coal-fired PP early retirement), conversion of dirty energy sources, carbon trading, carbon tax. The Carbon Tax will be enforced from April 1, 2022, based on Law Number 7 of 2021 concerning the Harmonization of Tax Regulations. • Corporate that still use non-renewable energy • Fossil fuel share will be decrese, but the magnitude not recessarily reduced Renewable energy share will increase and dominate the energy mix. a) Upgrading technology to clean technology b) Use of CCS (Carbon Capture Storage); Early retirement Coal power plant; d) Carbon trading; and e) Clean energy R&D investment • New corporation a) Clean energi utilization b) Carbon trading Clean Energy R&D Investment Policy - Compensation & Incentives Clean Energy Acquisition Incentives to companies that will conduct R&D and invest in clean/renewable energy (hydrogen, hydro, PLTS, etc.) 1 2 Energy Transition Mechanism (Coal-fired PP Early Retirement) Compensation for early retirement of dirty/non- renewable energy plants (PLTU) Source: Coordinating Ministry for Economic Affairs 3 Conversion of Dirty Energy Sources Incentives to convert dirty energy sources into clean energy sources (Coal to DME) 4 Carbon Trading The mechanism for buying and selling carbon, and emission certificates as securities that can be traded on the carbon exchange Carbon tax Dis-incentive on the use of dirty/non-renewable energy, and the use of funds from carbon tax to encourage the development and utilization of 5 ean/renewable energy 123
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