Kerosene to LPG Conversion Project :

The Story of 3kg LPG

February 7th 2017

New Delhi – India

R. Zulfikar

Kerosene to LPG Conversion Project Coordinator

Domestic Gas – Marketing Directorate

Indonesia

• Indonesia located in Lat 6°8‘N-11°15‘S Lon 94°45‘E-141°65‘E with total area

5,271 km E–W and 2,210 km N–S including 17,508 islands.

• It’s population around 255 millions with GDP USD 860 Bio and GDP growth rate

5% (2015).

• Jakarta is the capital of Indonesia located in Java Island.

PERTAMINA at A Glance

~79.000.000

Fortune 500 230th world rank year 2016

90++

Source: Data Pertamina, Realization 2014

…World Recognition…..

…Contribution for Indonesia

KiloLitre

products/yr

Product types ~255 millions

Indonesia population

22 LPG Depots

6 VLGC

9 LPG Semi-refrigerated

17 LPG Pressurized Vessels

673 LPG Filling Stations

1.364 LPG Skid Tanks

4.245 LPG Agents

Kero to LPG Conversion Program, the Trigger

Huge fuel subsidy

Kerosene subsidy increases although the

volume reduce significantly.

Conversion

Started

1.3

0.7

1.5 1.6

2.0

3.7 3.9

5.2

1.2

0.8 0.9

0.4 0.6 0.5

12.3

11.7 11.8 11.9 11.4

10.0 9.9

7.9

4.6

2.3

1.7 1.2 1.1 0.9

0

2

4

6

8

10

12

14

0

1

2

3

4

5

6

2001 02 03 04 05 06 07 08 09 10 11 12 13 2014

Subsidy Kero (bio USD)

Volume Kero (mio KL)

0

07

19 44

1,3

9,9

0,6

5,2

3,9

08

1,8

7,9

5,6

56

0,9 0,7

14

57

5,0

1,1

13

0,5 1,1

1,2

3,9 4,4

55

0,4

1,2

1,2

11

54

12

0,9

1,7

1,2

54

09

4,7

1,1

10

2,3

1,2

2,7

1,1

0,8

54

3,2

01

1,3

12,3

0,0 1,0 1,0 1,0

11,9

1,6

04

0,0

11,4

1,1 0,0

03

11,8

1,0

1,5

0,0 0,0

02

0,7

11,7

1,2 1,3

05

2,0

0,0

3,7

10,0

06

0,0 4

0,2

15

0,8

0,7

Switching Journey LPG as The Exceptional Energy

Kero Subsidy (bio USD) Kero Volume (mio KL)

Distributions (mio pcs) LPG PSO (mio MT) LPG NPSO (mio MT)

Kerosene to LPG Conversion 3 Kg Program

Has Covered the Archipelago of Indonesia 2007/2008 2013/2015

2009

2010/2012 Not yet converted

State’s Gross

Subsidy Saving

Up to 17,7 Bio

USD

Nett Saving

16,5 Bio USD

# of

New Investors

& Jobs

529 investors

& 38.000 Jobs Value of

Investment

1,9 Bio USD

Energy Cost

Saving

42%

(2.3 USD/Month)

% of program

Supporters *)

94,1 %

# of Trees

saved **)

90,1 Mio

# of Cars taken

Equivalent **)

5,5 Mio

Indonesian

Government

Business

Environment

End

Users

Environment

CO2 Reduction

Key Success Factors

Executor

Strong &

Effective

Implementation Object / Target

Real Benefit for

End Users

Regulator

Strong

Government

Policy

C

B

A

+ +

Impact to Cylinder, Stoves and Regulator Manufacture

13

31

50

70 70

37

16 23

31 34 26

18

4

7 14 21

17 11

2007 2008 2009 2010 2011 2012

Cylinder Stoves Regulator & hose

Infra

structure

Pre Conversion

(Before 2007)

Conversion Periode

(2007-2015)

Post Periode

(After 2015)

Storage •On shore tank 129,000 MT

•Thruput 4,000 MT/day

•On shore tank 180,000 MT

•Floating tank 180,000 MT

•Thruput 17,000 MT/day

•On shore tank 219,000 MT

•Thruput 21,500 MT/day

Vessel •6 LPG press. vessels @1,800 MT •4 VLGC

•8 LPG semiref vessels

•12 LPG press. Vessels

•6 VLGC

•10 LPG semiref vessels

•17 LPG press. Vessels

Filling Station •66 stations (12 kg)

•Capacity 6,000 MT

•395 stations operated

•Capacity ~ 16,000 MT/day

•600 stations operated

•Capacity ~ 19,500 MT/day

Skidtank •400 unit •1000 unit •1300 unit

1

2

3

4

Infrastructure Consequences

Regulation

LPG Supply Chain

SOURCE

of SUPPLY

DEPO/

TERMINAL

FILLING

STATION

CYLINDER

MAINTENANCE

DISTRIBUTOR

SUB RETAILER

USER

(HOUSEHOLD,

MICRO

BUSINESS) RETAILER

Formal Distribution Informal Distribution

PERTAMINA REGIONAL

GOVERNMENT

*) Subsidized LPG regulated by the Government

DISCLAIMER :

The information in this presentation is general in nature and it is not intended

to be relied upon for any specific purpose. All information provided by

Pertamina in connection to this material, whether oral or written, represents

the current view of Pertamina, and will be subject to change, completion or

amendment without notice. No part of it may be circulated, quoted, or

reproduced for distribution outside Pertamina without prior written approval

from Pertamina. None of Pertamina or any of its employees can be held

directly or indirectly liable for any consequences of reliance upon or use of

the information herein.

PT. Pertamina (Persero)

Jl. Medan Merdeka Timur 1A

Central Jakarta 10110

Indonesia

pcc@pertamina.com