PGN and IAE Intensively Coordinate to Follow Up on BPK's Recommendations

Jakarta, December 6, 2023 – PT PGN Tbk continues to maintain natural gas business services continuity to customers and the national natural gas management, including ensuring the certainty of cooperation with various partners.

Adhering to this principle, PGN continues to coordinate in following up on the BPK examination’s results, one of which concerns the Advance Payment given to PT Inti Alasindo Energi (IAE) amounting to USD 15,000,000. As information, PGN and IAE planned to collaborate for gas distribution from the BD-HCML Field by IAE to PGN. During the collaboration, this is carried out to ensure gas supply and distribution services security to customers.

Rosa Permata Sari, Director of Strategy and Business Development of PGN, explained that PGN consistently coordinates with IAE regarding the return of the advance payment paid by PGN. This coordination is crucial to secure the advance payment's return from IAE's business. Until now, various efforts have been made by both parties, leaving an Advance Payment of USD 14,194,333.

"We propose that the remaining advance payment can be returned through a portion of IAE's revenue and hope that IAE can internally coordinate with lenders regarding the proportion," said Rosa on 5/12/23.

Furthermore, in connection with the existing oversupply condition, PGN has not been able to continue Interruptible PJBG and suggests that IAE can sell gas to other customers in hope that this action can boost IAE's sales, thereby expediting the Advance Payment repayment process.

"At the recommendation of BPK RI, PGN has also coordinated with PT Pertamina and the Ministry of SOEs regarding the plan for the repayment of the Down Payment to PT IAE," said Rosa.

Rosa disclosed that, IAE can accept PGN's proposal. IAE will internally coordinate with shareholders and lenders regarding the portion of revenue that can be provided to PGN. After reaching internal agreements with stakeholders and lenders, IAE hopes this option can be executed promptly so that the Advance Payment can be repaid soon.

"For now, PGN and IAE will prepare further details of the Advance Payment repayment scheme. Simultaneously, we have also requested IAE to fulfill contractual obligations. Moreover, we have followed up on BPK's recommendations to the APH," concluded Rosa.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**