Strong Commitment to Deliver A Good Energy Solution

www.pgn.co.idPT Perusahaan Gas Negara (Persero) Tbk

Strong Commitment to Deliver a Good Energy Solution

Sustainable growth and development relies on a secure, sufficient and

reliable supply of clean, affordable energy.

Indonesia is fortunate to have significant reserves of natural gas, the largest

in the Asia Pacific region, even though it is not always located close to

where it is most needed. PGN has been transporting and distributing gas in

Indonesia for more than a century and half, bringing vital energy for power

generation, and industrial, commercial, and household use.

Today, PGN is building on the foundations so firmly established over many

decades and evolving from a gas transmission and distribution company

into an integrated energy solution provider, maximizing the utilization of

natural gas to meet the ever increasing and ever more challenging demands

of modern industry and society.

PGN is the leader, the specialist and the dominant player in an

underdeveloped market that has huge potential for growth into the future.

Natural gas is the clean energy source that will encourage Indonesias

development and that influences the lives of people everywhere, everyday.

PGN is the company that provides that energy, now and into the future.

PGN contiunes to encourage the amplification of the natural gas

industry chain as sustainable Good Energy Solution.

PGN Culture

Our corporate culture represents the values and

philosophies that everyone in the Company has

agreed, forms the foundation we must build on, and the

direction we must follow, if PGN is to achieve its goals.

Our corporate culture is defined in terms of five values,

abbreviated as ProCISE, which incorporate 10 key

behaviors.

ProfessionalismHaving the right degree of competence to deliver great

results and being responsible for all decisions and

actions.

Continuous ImprovementAlways seeking to do better through innovation, and

being adaptable to change.

IntegrityBeing honest with oneself and others, and ethical and

consistent in mind, word and deed.

SafetyMaximizing occupational health and safety through

discipline and consistency, and caring for the social and

natural environment.

Excellent ServiceAchieving maximum satisfaction for internal and

external customers by responding quickly, being

proactive, and providing excellent service.

Who We Are

Vision

To be a world-class energy company in natural gas utilization

Mission

To enhance the value of the organization for stakeholders by:

Strengtheningthecorebusinessinnatural gas transportation and trading

Developinggasmanufacturingbusinesses

Developingoperational,maintenanceand engineering businesses associated with oil and gas industries

ProfitingfromtheCompanysresourcesand assets by developing other businesses

About PGN

TIMELINE

1965

1994

1996 2003

2006

1859 1998PT Perusahaan Gas Negara (Persero) Tbk, more

usually referred to as PGN, or by its stock code

at the Indonesia Stock Exchange of PGAS,

is a state-owned company that has been

leading the way in Indonesias gas industry

since 1859, when it went by the name of Firma

L.I. Enthoven & Co.

In 1998 PGN successfully

finished Transmission Pipe-

line Grissik - Dorsal followed

by the establishment of a

subsidiary in the transmission

line, PT Transportasi Gas

Indonesia.

On 13 May 1965, pursuant to

Government Regulation No.

19/1965 the Company was

designated a state company

known as Perusahaan Gas

Negara (PGN). The subse-

quent issuance of Government

Regulation No. 2 year 1984

changed the Companys legal

status from State Company

(PN) to Public Corporation

(Perum).

Companys change of sta-

tus was accompanied by a

broadening of the scope of

its business to

incorporate not just natural

gas distribution but

transmission as well, for

which PGN functioned

as a transporter.

Becomes a limited liability

company with exclusive

license to develop and

distribute gas in Indonesia.

The Companys shares

were listed on the Jakarta

Stock Exchange and the

Surabaya Stock Exchange

on 15 December 2003,

with the stock code

PGAS.

South Sumatera -

West Java (SSWJ)

pipeline inaugurated by

President of Indonesia

and Prime Minister of

Japan.

approaching five decadesof serving the country

PGN has more than a century and a halfs experience in

the gas industry and are expert in the safe handling and

distribution of gas.

PGN started life in 1859 as a privately owned Dutch

company called Firma L.I. Enthoven, later coming under

Government control and eventually emerging as a state

company, named Perusahaan Negara Gas, in 1965. Further

transformation saw its status change to a limited liability

company owned by the state, and then to a public company

with its shares listed on the Indonesia Stock Exchanges.

Today PGN is part state-owned, financially strong and

professionally managed, with good corporate governance.

Focusing on transportation and distribution of natural gas,

PGN connects Indonesias natural gas sources with users,

bringing previously underutilized energy to major markets, as

well as having the expertise, the ability and the motivation to

look beyond transportation and distribution to integrate up

or down the supply chain, securing new sources of energy

to meet customers long-term needs.

2011In 2011 PGN established two subsidiaries that each

engaged in the upstream and downstream natural gas

business. The subsidiary in the upstream is PT Saka

Energy Indonesia (SAKA) while the subsidiary in the

downstream is PT Gagas Energi Indonesia (GAGAS).

PGNs Ownership in both subsidiary is 99% with 1%

ownership by PT PGAS Solution.

1984PN-GAS converted into

public service enterprise,

Perusahaan Umum Gas

Negara.

2007On 11 March 2007, the Com-

pany succesfully conducted a

Gas-In (first gas chanelling),

which was followed by the

commercialization of gas from

Pertaminas Pagardewa gas

field through the South Sumat-

era-West Java pipeline to the

Companys cusomer in Cilegon

(PT Krakatau Daya Listrik).

2008Pursuant to the provi-

sions of Law No. 40

year 2007 regarding

Limited LiabilityCompa-

nies, and in connection

with a stock

split, the Companys

Articles of Association

underwent their most

recent amendment

by Deed No. 50 dated

13 June 2008 jo. Deed

No. 8 dated 2 Jully

2008.

2009To optimize the Companys

accumulated strengths and

competencies by taking

advantage of oppurtunities

to develop the business

and realize PGNs vision,

the Company established

another subsidiary,

PT PGAS Solution.

2012PGN established subsidiar-

ies PT PGN LNG Indonesia

(PGN LNG). The scope of

PGN LNG business includes

procuring LNG supply, LNG

and natural gas transporta-

tion activity, inventory activi-

ties includes regasification to

the buyer, as well as perform-

ing other business activities.

Addressing critical needs by looking beyond the traditional

to find solutions that revolutionize natural gas transportation,

delivery and utilization.Company In Brief

With a stable economic growth rate, and a steadily

rising population, Indonesia needs more energy for

domestic use. Natural gas - abundant, affordable and

clean burning provides the perfect antidote, however

securing sufficient supply remains a challenge in a

country as geographically diverse as Indonesia.

Indonesias gas sources are mostly located on islands

such as Sumatera, Kalimantan, Sulawesi and Irian,

while the main demand is in Java. To optimise growth

within Indonesia, the Government wants to balance

development among all the main islands, and PGNs

goals are aligned with that policy. PGN has extended

its core activities from gas distribution, serving nearby

customers from local sources, to trans-island and inter-

island transportation, moving natural gas through its

purpose built infrastructure of gas pipelines bringing

large volumes of natural gas to be distributed to major

markets in the Archipelago and in the region.

In tandem with this, PGN has continued to expand gas

utilization in the vicinity of marginal fields, especially in

regions outside Java.

Even so, demand continues to outstrip supply. Electricity

generation companies are converting an increasing

number of power plants to natural gas in a move

away from expensive oil based fuels, and the growing

realization of the benefits of using natural gas, both

economic and environmental, is driving demand ever

higher.

PGN is committed to securing guaranteed supplies

of natural gas to meet its customers needs, and is

pursuing a growth strategy that goes beyond pipelines

complementing its traditional strengths with innovative

solutions.

Moving beyond pipelines

The strategy is to extend PGNs reach beyond its

transmission pipelines by:

establishingfloatingLNGstorageandre-gasification

terminals that can receive and process LNG from

distant sources, whether domestic or international

exploringthepotentialforjointventuresincoalbed

methane or shale gas from deposits close to PGNs

transmission lines

developingnewnon-pipelinetransportmechanisms

such as inland CNG and LNG to reach markets or

industrial zones not served by natural gas pipelines

It is simply a matter of PGN applying its vast experience

and industry leading expertise to find new answers to

long-established needs.

Rising demand, demands innovative solutions

The vital link for PGN is always that between the point of

supply and the customer. The challenge always is to optimize

both supply and delivery.

Natural gas distribution

PGN operates a natural gas distribution pipeline network

stretching more than 3,750 km, supplying natural gas to

power plants, industry, commercial businesses, including

restaurants, hotels and hospitals, and households, in

some the countrys most densely populated areas. PGN

derives a profit from the sale of the gas to its customers.

Natural gas transmission

The natural gas transmission pipeline operated by PGN

comprises a high-pressure pipeline network, some

2,160 km in length, which transports natural gas from the

producers gas fields to the buyers receiving stations.

PGN receives a Toll Fee for the transportation of the gas

as specified in Gas Transportation Agreements (GTA)

operable over 10-20 years.

Our Business

Strategic Business Units

To oversee the transmission and distribution operations,

PGN has divided its business area into four geographically

focused Strategic Business Units:

SBUDistributionRegionI,coveringtheareafrom

Western Java to South Sumatra

(including Jakarta Bogor)

SBUDistributionRegionII,coveringEastJava

SBUDistributionRegionIII,coveringNorthSumatra,

Pekanbaru and the Batam Islands

SBUTransmissionSumatra-Java,coveringthe

transmission network in South Sumatra and Java

In addition, PT Transportasi Gas Indonesia, a subsidiary

of PGN, manages the natural gas transmission business

between Grissik-Duri and Grissik-Singapore.

Subsidiaries and Affiliated Companies

PT Saka Energi Indonesia

- upstream business

PT Gagas Energi Indonesia

- downstream business

PGN LNG Indonesia

- LNG business

PT PGAS Solution

- construction

PT PGAS Telekomunikasi Nusantara

- telecommunication

PT Transportasi Gas Indonesia

- natural gas transmission

PT Nusantara Regas

- floating storage and regasification terminal

South Sumatera - West JavaTransmission Pipeline[SSWJ]

Grissik - Duri Transmission Pipeline

Grissik - Singapore Transmission Pipeline

PIPELINE

I N D O N E S I A

KALIMANTAN

SINGAPURA

JAWA

SUMATERA

Batam - SBU IIIMedan - SBU III

Pekanbaru - SBU III

Palembang - SBU I

Banten - SBU I

Jakarta/ Bogor - SBU I

Cirebon - SBU I

Bekasi/ Karawang - SBU I

Surabaya, Sidoarjo, MojokertoPasuruan, Probolinggo - SBU II

PGNs transmission pipeline network links the major natural gas producing

areas with the major industrial zones and residential areas that rely on natural

gas as a key source of energy.

The GrissikDuri transmission pipeline carries gas from the ConocoPhillips field,

to Duri (Chevron Pacific Indonesia). It is operated by Transgasindo, a subsidiary

of PGN.

The GrissikBatam-Singapore transmission pipeline crosses the sea, carrying

gas from the ConocoPhillips & PetroChina field to Batam (PGN Batam) and

Singapore (Gas Supply Pte.Ltd.). It is operated by Transgasindo, a subsidiary of

PGN. The South SumateraWest Java transmission pipeline serves the needs

of West Java and Jakarta.

Our Operations

Crossing land and sea, spanning a nation,

connecting supply with demand.

West Java FSRU

Lampung FSRU

PGN has so far distributed gas volumes in excess of

more than 800 MMScfd, and transmitted volumes up to

840 MMScfd, through its 6000 km long transmission and

distribution pipeline network.

Generating power, more cleanly, more cheaply.

PLN

Independent Power Producers

Power Sector Continuing growth, both of the economy and of the nations population, has fuelled an ever-rising demand for electricity in Indonesia to power domestic

industry and to meet the everyday needs of consumers.

Power generation companies know that they can no longer rely solely on

expensive oil-based fuels such as diesel to supply electricity and are turning

increasingly to natural gas, which has a distinct price advantage, especially

now that Government subsidies for diesel have been removed.

PGN supplies natural gas to fuel the Gas Fired Power Plants of PLN and

other independent power projects, generating essential energy while saving

many trillions of Rupiah and releasing fewer emissions into the atmosphere.

Power Sector Customers

Our Customers

Keeping the wheels of industry turning.

Industry PGN provides natural gas to large and medium industries and utilities in Indonesia. They use it for heating and drying, and to fuel steam boilers,

furnace dryers, ovens and a multitude of other industrial applications. Some

industries now are even using natural gas to generate their own electricity as

an alternative to buying it from the state electricity company PLN.

PGN provides its customers with a professional, reliable service, unequalled

in the industry, advising on all aspects of gas planning and utilization.

The best natural gas solutions come naturally to PGN.

Delivering more than 820 MMScf of natural gas per day to industrial,

commercial and residential customers.

Industry Gas Customer

business segments:

Food

Textiles

Wood

Paper

Chemical

Ceramics

Glass

Cement

Basic metal

Fabricated metal

Others

Our Customers

Commercial Commercial customers relying on natural gas from PGN include restaurants, hotels, hospitals, as well as small to medium sized enterprises involved in

industrial processing.

PGN supplies more than just gas, backing it with full technical support for

customers who can rely on PGNs unrivalled experience and expertise in the

safe and efficient utilization of natural gas.

The power to serve people better.

Commercial Customers

Hotels

Shopping Malls

Hospitals

Office Buildings

Commercial Buildings

High Rise Blocks

Restaurants

Our Customers

The blue flame that enhances everyday life.

Residential The residential business has not yet proved attractive to private investors because of the regulated tariffs. This then is an important task for PGN,

serving the people of Indonesia by providing the natural gas that heats their

water, cooks their food, and powers their domestic appliances... contributing

to their better living.

Alone among gas suppliers, PGN looks after the interests of residential users

in Indonesia, building and maintaining distribution pipeline networks to reach

more centers of population across the country and ever-greater numbers of

home dwellers.

Natural gas is for life.

Our Customers

Landed Housing

Apartments

Residential Customers

Fulfilling future demand.

Business Expansion

With demand for natural gas continuing to rise and existing sources unable to

keep up, PGN is seeking strategic solutions to ensure security of supply for its

customers, and to prevent gas shortages in a number of regions.

PGN is currently looking for new gas supplies, primarily from locations close to

existing infrastructure, as well as trying to obtain more allocation from the gas

earmarked for domestic market usage.

Other options include the potential utilization of non-conventional sources

such as Coal Bed Methane, and infrastructure development to expand existing

distribution and transmission capacity, as well as to accommodate possible

inter-mode gas transportation such as CNG and LNG.

Already underway is the construction of LNG Receiving Terminals using LNG

Floating Storage and Re-gasification Terminal technology, in partnership with

PT Pertamina (Persero), in West Java, and in Medan.

The LNG received through these terminals, will be regasified and distributed to

power companies and industrial customers in fast growing areas. In the future,

additional receiving terminals, spread farther afield, might play a role in

bridging the gap between natural gas supplies and customers keen to develop

their business or industrial area.

The challenge is clear, and PGN will meet it.

Safety & Environment

Protecting our people

Natural gas is highly flammable, which puts occupational health and safety

right at the top of PGNs priorities when it comes to planning and day-to-day

operations.

The companys goal is to maintain zero accidents through the implementation

of strict safety standards in all aspects of the business, and the establishment

of safety as an ingrained part of PGN culture.

PGN EnvironmentalPrograms

Environmental monitoring

Land rehabilitation

Re-greening

Public tree planting

Reducing energy use

Freon replacement

Complementing the environmental benefits of natural gas with action that preserves and protects people and the planet.

protecting our planet

Just as important is the protection and preservation of the natural

environment.

Natural gas already makes a contribution, as it is cleaner and greener and

more environmentally friendly than oil based fuels and coal, burning more

cleanly and releasing fewer potentially harmful emissions into the atmosphere.

PGN complements this natural advantage with an Environmental Program

that provides seeds and plant material for re-greening activities and for the

replanting of dry land, peat land and mangroves that have been affected by

commercial activity.

The Program also supports the city forest and city park programs, which aim

to promote nature conservation and help combat global climate change.

Community

Education & Training

Providing scholarships and assistance to procure school

infrastructure and facilities, providing assistance to

support training and coaching activities.

Public Facilities

Assistance to develop or rehabilitate facilities and

infrastructure including roads, bridges, irrigation canals,

parks, village halls, sports facilities.

Community Health

Improving community health facilities, providing free

treatment for communities and assistance in procuring

medicines, and supporting other public health-related

activities.

Caring for our communities

PGN works closely with the local communities with which we are involved, aiming

wherever possible to assist community empowerment and contribute to a better

quality of life.

Our corporate social responsibility programs promote health, education, and

sustainable environmental management, and support local income generation

initiatives through training and micro-finance schemes. We also support religious

activities, help improve public facilities, and contribute to disaster relief.

Recognizing the role we play in the life of the

communities around us, and working to make a

difference.

Religious Activities

Supporting the celebration of religious events, across all

major faiths, as well as improving community religious

facilities.

Disaster Relief

Providing assistance to the victims of natural

disasters, including the provision of clean water and

sanitation facilities, medicines and medical personnel,

procurement of tents and shelter, and provision of funds

to hire transport for displaced persons.

Partnership Program

Supports economic activities by providing assistance in

the form of training, financial and marketing support for

small and medium enterprises.

Our People Valuing the irreplaceable asset on which all

success is based.Our competitive advantage

The PGN story is one of making the most of natural resources, and no resource

plays a more crucial role in PGNs success than its human resource our

people.

Already the people of PGN have more experience and expertise in the

transportation and distribution of natural gas than any others in the industry,

and this vast reservoir of skill is being complemented by new expertise and

specialist skills as the company looks beyond pipeline towards optimizing

natural gas utilization and being a true energy solution provider for customers

over the long term.

PGN will continue to seek and retain the best people, to equip them with the

skills and knowledge that will keep them ahead of the competition, and to

provide the opportunities that will inspire and enable them to achieve their full

potential.

PGN providing energy for today and tomorrow

natural energy for life.

Upstream Assets

PT Perusahaan Gas Negara (Persero) Tbk

Jl. K.H. Zainul Arifin No. 20

Jakarta 11140 Indonesia

T +6221 633 4838

F +6221 633 3080

E contact.center@pgn.co.id

www.pgn.co.id

Contact Center

500 645

T +6221 633 3000

E contact.center@pgn.co.id

Strategic Business Unit

Region I Western Java Office

Wisma Nusantara 3rd Floor

Jl. M.H. Thamrin No.59

Jakarta 10350 Indonesia

T +6221 3902 755, 3916 818

F +6221 3162 430

Strategic Business Unit

Region II Eastern Java Office

Jl. Pemuda No. 56-58

Surabaya 60271 Indonesia

T +6231 549 0555 (hunting)

F +6231 549 0333

Subsidiaries

Strategic Business Unit

Region III Northern Sumatera Office

Jl. Imam Bonjol No. 15

Medan 20112 Indonesia

T +6261 453 8655

F +6261 415 2396

Strategic Business Unit

Sumatera-Java Transmission Office

Graha PGAS 10th11th Floor

Jl. K.H.Zainul Arifin No. 20

Jakarta 11140 Indonesia

T +6221 638 66667/ 66669

F +6221 638 66770/ 66760

PT PGAS Solution

C Building, 4th Floor

Jl. K.H. Zainul Arifin No. 20

Jakarta 11140 Indonesia

T +6221 6385 4557/ 4572/ 4506

F +6221 6385 4534

PT GAGAS Energi Indonesia

Equity Tower Building 16th Floor

SCBD Lot 9 Suites S-G-H

Jl. Jendral Sudirman Kav. 52-53

Jakarta 12190 Indonesia

T +6221 2903 5835

F +6221 2903 5838

E contact.information@gagas.co.id

PT SAKA Energi Indonesia

The Energy

12th Floor SCBD Lot 11A

Jl. Jend. Sudirman Kav. 52-53

Jakarta 12190 Indonesia

T +6221-29951000

F +6221-29951001

E information.contact@sakaenergi.co.id

www.sakaenergi.com

PT Transportasi Gas Indonesia

Jl. Kebon Sirih Raya No. 1

Jakarta 10340 Indonesia

T +6221 315 8929, 8939

F +6221 310 3757, 3545

www.nusantararegas.com

PT Nusantara Regas

Wisma Nusantara 19th Floor

Jl. M.H. Thamrin No. 59

Jakarta 10350 Indonesia

T +6221 315 9543 / 9544

F +6221 315 9525

E public.relations@tgi.co.id

www.tgi.co.id

PT PGN LNG INDONESIA

Equity Tower Building 16th Floor

SCBD Lot 9 Suites A-B-E

Jl. Jendral Sudirman Kav. 52-53

Jakarta 12190 Indonesia

T +6221 2903 7505, 2903 7606

F +6221 2903 7444

E contact.center@pgnlng.com

www.pgnlng.com

PT PGAS Telekomunikasi Nusantara

Wisma 77 19th Floor

Jl. Letjen. S. Parman Kav. 77

Jakarta 11410 Indonesia

T +6221 5366 0444/ 0445

F +6221 5367 0080

www.pgn.co.id