3decades

MIRA INFORM REPORT

Report No. :	514315
Report Date :	22.06.2018

IDENTIFICATION DETAILS

Name :	P.T. PERTAMINA (PERSERO)

Formerly Known as:	P.T. PERUSAHAAN MINYAK NASIONAL (PERMINA)

Registered Office :	Perwira Building 4, Jalan Medan Merdeka Timur 1 A, 17 Floor, Kelurahan Gambir, Kecamatan Gambir, Jakarta Pusat, 10100

Country :	Indonesia

Date of Incorporation :	10.12.1957

Com. Reg. No.:	No. AHU-AH.01.03-0122561

Legal Form :	Limited Liability Company

Line of Business :	Upstream Activities Downstream Activities Downstream Business Products Other Business Investment Holding

No. of Employees :	14,563 persons

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name

Previous Rating

(31.12.2017)

Current Rating

(01.04.2018)

Indonesia

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

INDONESIA - ECONOMIC OVERVIEW

Indonesia, the largest economy in Southeast Asia, has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. Indonesia’s annual budget deficit is capped at 3% of GDP, and the Government of Indonesia lowered its debt-to-GDP ratio from a peak of 100% shortly after the Asian financial crisis in 1999 to 34% today. In May 2017 Standard & Poor’s became the last major ratings agency to upgrade Indonesia’s sovereign credit rating to investment grade.

Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among its regions. President Joko WIDODO - elected in July 2014 – seeks to develop Indonesia’s maritime resources and pursue other infrastructure development, including significantly increasing its electrical power generation capacity. Fuel subsidies were significantly reduced in early 2015, a move which has helped the government redirect its spending to development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration has not yet materialized.

Source : CIA

BASIC SEARCH

Name of Company :

P.T. PERTAMINA (PERSERO)

Address :

Head Office

Perwira Building 4

Jalan Medan Merdeka Timur 1 A, 17 Floor

Kelurahan Gambir, Kecamatan Gambir

Jakarta Pusat, 10100

Indonesia

Phones - (62-21) 3815111, 3816111 (86 lines)

Fax - (62-21) 3633585, 3843882

E-mail - hubmasptmz@cbn.net.id

pcc@pertamina.com

Website - http://www.pertamina.com

Building Area - 6 storey

Office Space - 2,500 sq. meters

Region - Commercial

Status - Owned

Refinery Unit II Dumai Sei Pakning

Jalan Raya Kilang Putri Tujuh

Dumai, 28815

Riau Province

Indonesia

Phones - (62-765) 31244 (Hunting)

Fax - (62-765) 36849

Refinery Unit III Plaju

Jalan Beringin 1

Plaju, Sungai Gerong

Palembang

South Sumatera

Indonesia

Phones - (62-711) 596000, 542220

Fax - (62-711) 542263

Refinery Unit IV, Cilacap

Jalan Letjend. M.T. Haryono 77

Lomanis. Cilacap, 53221

Central Java

Indonesia

Phones - (62-282) 531633, 535333 (Hunting)

Fax - (62-282) 531920, 531922

Refinery UnitV Balikpapan

Jalan Kom. L. Yos Sudarso

Balikpapan, East Kalimantan

Indonesia

Phones - (62-542) 733011 (Hunting)

Fax - (62-542) 732716, 733164

Refinery Unit VI Balongan

Jalan Raya Balongan Indramayu

Indramayu, West Java

Indonesia

Phones - (62-234) 428232, 428629, 428183

Fax - (62-234) 428097

Refinery Unit VII Sorong

Jalan Jend. A. Yani

Sorong, Papua

Indonesia

Phones - (62-951) 325204 Ext. Pertamina Pusat NSAT 7004, 7005 & 7006

Fax - (62-951) 312021

Date of Incorporation :

a. 10 December 1957 as P.T. PERUSAHAAN MINYAK NASIONAL (PERMINA)

b. 1 July 1961 as PN. PERMINA

c. 20 August 1968 as PN. PERTAMINA

d. 17 September 2003 as P.T. PERTAMINA (Persero)

Legal Form :

P.T. (Perseroan Terbatas) or Limited Liability Company

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-24025.HT.01.01.TH.2003

Dated 9 October 2003

- No. AHU-45429 AH.01.02.TH.2009

Dated 14 September 2009

- No. AHU-AH.01.10-08629

Dated 12 April 2010

- No. AHU-43594.AH.01.02.TH.2012

Dated 10 August 2012

- No. AHU-AH.01.10-26753

Dated 2 July 2013

- No. AHU-0000766.AH.01.02.TH.2016

Dated 15 January 2016

- No. AHU-AH.01.03-0110415

Dated 23 February 2017

- No. AHU-AH.01.03-0122561

Dated 30 March 2017

Company Status :

State Owned Company

Permit by the Government Department :

The Department of Finance

NPWP No. 01.001.664.0-051.000

The President Decree

- No. PP/B/1971

Dated 15 September 1971

- No. PP. 31/2003

The Department of Industry and Trade

TDP No. 090515147021

Related Company :

A Member Company of the PERTAMINA Group (see attachment)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 200,000,000,000,000.-

Issued Capital : Rp. 133,090,697,000,000.-

Paid up Capital : Rp. 133,090,697,000,000.-

Shareholders/Owners :

The Government of the Republic of Indonesia - 100%

BUSINESS ACTIVITIES

Lines of Business :

a. Upstream Activities

b. Downstream Activities

c. Downstream Business Products

d. Other Business

e. Investment Holding

Production Capacity :

a. Refined Oil (Avigas, Avtur, Premium, Kerosene,

Diesel Oil, Fuel Oil, etc) - 1,046,700 barrels per day

b. Non Fuel Oil (Cube Base, Asphalts and Wax) - 930,000 tons p.a.

c. LNG - 23.2 million tons p.a.

d. LPG - 2.8 million tons p.a.

e. Petrochemicals (Polytan, PTA, Methanol,

Paraxylene, Benzene) - 934,000 tons p.a.

Total Investment :

Owned Capital - Rp. 133,091.7 billion

Started Operation :

1957

Brand Name :

Pertamina

Technical Assistance :

None

Number of Employee :

14,563 persons

Marketing Area :

Local - 100%

Main Customer :

Industrial Manufacturing

Market Situation :

Very Competitive

Main Competitors :

a. P.T. BENAKAT PETROLEUM Tbk

b. P.T. ENERGI MEGA PERSADA Tbk

c. P.T. MEDCO ENERGI INTERNASIONAL Tbk

d. P.T. RATU PRABU Tbk

e. Etc.

Business Trend :

Declining

BANKER, AUDITOR & LITIGATION

Bankers :

a. P.T. Bank MANDIRI Tbk

Jalan Jend. Sudirman Kav. 36-38

Jakarta Selatan

Indonesia

b. P.T. Bank NEGARA INDONESIA Tbk

Jalan Jend. Sudirman Kav. 1

Jakarta Pusat

Indonesia

c. P.T. Bank RAKYAT INDONESIA Tbk

Jalan Jend. Sudirman Kav. 42-44

Jakarta Pusat

Indonesia

Auditor :

Purwantono, Sungkoro & Surja (EY)

Litigation :

The Subject Company and Subsidiaries are party to various legal actions in relation to compliance with contracts, agreements, Government regulations and the tax law. The Subject Company and Subsidiaries was involved in controversial dispute with P.T. LIRIK PETROLEUM (plaintiff) recorded on Arbitration Court No. 14387/JB/JEM dated 27 February 2009; No. 01/P/Pembatalan/2009/PN.JKT.PST and Jakarta High Court No. 44S/PDT.G/PN.JKT.PST.

FINANCIAL FIGURE

Annual Sales:

2015 – US$ 41,762.7 million

2016 – US$ 36,486.7 million

2017 – US$ 42,959.3 million

Net Profit:

2015 – US$ 1,143.6 million

2016 – US$ 3,098.8 million

2017 – US$ 2,407.0 million

Total Assets:

2015 – US$ 45,518.9 million

2016 – US$ 47,233.2 million

2017 – US$ 51,213.6 million

Payment Manner :

Average

Financial Comments :

Healthy

KEY EXECUTIVES

Board of Management :

President Director - Mrs. Nicke Widyawati

Directors - a. Mr. Syamsu Alam

b. Mr. Budi Santoso Syarif

c. Mr. Basuki Trikora Putra

d. Mr. Mas’ud Khamid

e. Mr. Arief Budiman

f. Mr. Gandhi Sriwidodo

g. Mr. Heru Setiawan

h. Mr. Gigih Prakoso

i. Mr. M. Haryo Yunianto

Board of Commissioners :

President Commissioner - Mr. Tanri Abeng, MBA

Vice President Commissioner - Mr. Arcandra Tahar

Commissioners - a. Mr. Ego Syahrial

b. Mr. Sahala Lumban Gaol

c. Mr. Suahasil Nazara

d. Mr. Alexander Lay

e. Mr. Ahmad Bambang

Signatories :

President Director (Mrs. Nicke Widyawati) or one of the Directors (Mr. Syamsu Alam, Mr. Budi Santoso Syarif, Mr. Basuki Trikora Putra, Mr. Mas’ud Khamid, Mr. Arief Budiman, Mr. Gandhi Sriwidodo, Mr. Heru Setiawan, Mr. Gigih Prakoso or Mr. M. Haryo Yunianto) which must be approved by Board of Commissioner.

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

OVERALL PERFORMANCE

PERTAMINA is a State Owned oil & gas company (National Oil Company), established on December 10, 1957 under the name P.T. PERMINA. On 1 July 1961 the company changed its name to PN PERMINA and after the merger with PN PERTAMIN in August 1968 it became PN PERTAMINA. With the enactment of Law 8 of 1971 the company became PERTAMINA. This name persisted until after PERTAMINA changed its legal status to P.T. PERTAMINA (PERSERO) based on notary deed of Mrs. Lenny Janis Ishak, SH., No. 20 dated 17 September 2003. At the same time the authorized capital was amounted to Rp. 200,000,000,000,000 issued capital to Rp. 100,000,000,000,000 entirely paid up. The founding and shareholder is the Government of the Republic of Indonesia. The company notary deed had been changed a couple of times. Later based on notary deed of Mrs. Lenny Janis Ishak, SH., No. 4 dated 14 July 2009 the issued capital was reduced to Rp. 82,569,779,000,000 was paid up. Then in July 2012 the company issued capital was raised to Rp. 83,090,697,000,000 entirely paid up.

After that, based on notary deed of Mrs. Lenny Janis Ishak, SH., no. 27 dated 19 December 2016 the company issued capital was increased to Rp. 133,090,697,000,000 entirely paid up by the Government of the Republic of Indonesia (100%).

Lastly based on notary deed Mrs. Lenny Janis Ishak, SH., no. 46 dated 30 March 2017 the company board of director and commissioner had been changed. The amendment was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.03-0122561 dated March 30, 2017.

P.T. PERTAMINA's scope of business incorporates the upstream and downstream sectors. The upstream sector covers oil, gas and geothermal energy exploration and production both domestically and overseas. The foregoing is pursued through own operations and through partnerships in the form of joint operations with JOBs (Joint Operating Bodies), TACs (Technical Assistance Contracts) and JOCs (Joint Operating Contracts), whereas the downstream sector includes processing, marketing, trading and shipping. Commodities produced range from Fuel (BBM) and Non Fuel (Non BBM), LPG, LNG, petrochemicals to Lube Base oil.

Consistent with its deed of establishment, the objective of the PERSERO is to engage in oil and gas exploitation, domestically and overseas, as well as in other exploitation associated with or supporting oil and gas operations. The objective of the Public Company is to: Exploit profits based on the principle of effective and efficient PERSERO management. Contribute toward improvement of economic conditions for the welfare and prosperity of the people. In order to achieve the above aims and purposes, the Public Company engages in the following: Oil and gas exploitation and the processed products and derivatives thereof. Geothermal energy exploitation existing at the time the PERSERO was established, including Geothermal Power Plants (PLTP) in the final stages of negotiations and which the Perseroan has managed to gain possession of. Liquified Natural Gas (LNG) exploitation and other products generated by LNG refineries. Other exploitation associated with or in support of the undertakings referred to in points above.

PERTAMINA in conducting business activities in the field of energy and petrochemicals, was divided into two sectors, namely upstream and downstream, and supported by the activities of it's Subsidiaries and Joint Ventures.

Upstream Activities

Upstream activities cover exploration and production of oil, gas, and geothermal. The aim of exploration activities is to discover new oil and gas reserves as a replacement of hydrocarbon that has been produced. This effort is intended to maintain the production continuity. The exploration and production activities are performed through its own operation and joint operation arrangements.

The business partnership forms are JOB-EOR (Joint Operating Body for Enhance Oil Recovery), JOB-PSC (Joint Operating Body for Production Sharing Contract), TAC (Technical Assistance Contract), Consortium Cooperation System, IP (Indonesian Participation), PPI (Pertamina Participating Interest) and project loan. While for the geothermal sector, the business partnership is JOC (Joint Operating Contract) arrangement.

The company has concession block operated as own operation arrangement covering 7 (seven) oil and gas Operation Area , i.e. Nangroe Aceh Darussalam (NAD) Northern Sumatra Operation Area with the main office in Rantau, Central Sumatra Operating Area with the main office in Jambi,

Southern Sumatra Operation Area with main office in Prabumulih, Western Java Operation Area with main office in Cirebon, Eastern Java Operation Area with main office in Cepu, Kalimantan Operation Area with main office in Balikpapan, and Papua Operation Area with main office in Sorong. There are 3 geothermal producing areas with the 162 MW installed capacity owned by Pertamina.

Those areas are: Sibayak (2 MW) located in North Sumatra, Kamojang (140 MW) located in West Java and Lahendong (20 MW) located in North Sulawesi. Pertamina markets its fuel products for fulfilling the demand from industry, bunker, land transportation and domestic consumption. Pertamina lubricant has Lube Oil Blending plant (LOBP) in Jakarta, Surabaya and Cilacap with total capacity of around 573,000 kilo liters per year (2 shift / day). Pertamina lubricant is consumed by industrial engine, automotive engine, marine engine etc. Pertamina has come to be the market leader of Indonesian lubricant. Pertamina Upstream has 64 oil and gas contracts of joint operation arrangements. They consist of 6 partnerships under JOB-EOR contract systems, 12 partnerships under JOB-TAC contract systems, 34 partnerships under TAC contract systems, 1 partnership under Consortium Cooperation System, 3 project loans, and 8 partnerships under IP/PPI contract systems. Meanwhile there are 8 Joint Operating Contracts for geothermal exertion.

Among 64 of oil and gas contracts within the joint operation arrangement, 30 contracts are in the commercial-producing stage and the other areas are still in the exploration stage. To develop its exploration and production business, Pertamina Upstream has made a step forward through strategic alliances with domestic and foreign partners. Pertamina Upstream has prospective business in oil and gas drilling services called Pertamina Drilling Service (PDS), which owns 28 drilling-rig units. In the gas transmission business, Pertamina Upstream has 3800 km total length of gas pipeline and 64 compressor stations.

Downstream Activities

Directorate engages in the activities of oil and gas refining, and managing the distribution and marketing of the refined products. The main objective of its activities is to meet the domestic market fuel demand, also non-fuel and petrochemical demand in the domestic and international markets.

Processing, Pertamina operates 7 fuel refineries, 2 LPG plants, and 2 LNG & LPG plants. Some fuel refineries also process non-fuel and petrochemical products. Shipping, Pertamina has sea transportation fleet to carry oil and gas, and to distribute fuel, non-fuel, and petrochemical products for domestic and export market. It is conducted using owned and chartered tankers. The other activities are brokerage, ship agency, crewing, etc. In 2002, the activities are conducted by 130 units of tankers which consist of 32 units owned by Pertamina, 96 units of chartered tankers, and 2 units of floating storage. The tanker fleet is capable to offer transportation with 48.9 million Long Ton capacities. Marketing and Trading, Main Marketing activities cover business activities in marketing fuel, lube oil, LPG, LNG, aviation, petrochemical, and other non-fuel products for domestic market. Export and import is conducted by Trading.

Fuel Business, Pertamina market fuel products for the needs of industry, land transportation, household (retail), and bunker. Lube Oil Business, Pertamina has Lube Oil Blending Plant (LOBP) in Jakarta, Surabaya, and Cilacap with 573,000 kilo liter annual total capacity (2 shifts / day). The product is used for industrial machinery, automotive machine, marine engine, etc. Pertamina is currently the market leader in Indonesia lube oil business. LPG Business, LPG business has good prospect in the future because the market growth and demand are relatively high.

It has not given profit contribution because the market price has not reached the economical level. LNG Business, Pertamina has long experience in LNG business and has an excellent reputation in international market. Aviation Business, The rapid development of air transportation will stimulate the aviation business growth. Pertamina has the resources and infrastructure for aviation business in all airports in Indonesia. The products have met the international standard requirements.

Petrochemical and Non-Fuels Business, Pertamina has refineries which produce various non-fuels and petrochemical products for domestic and international markets. This is a profitable business for Pertamina. Distribution and Marketing Network, in distributing fuel, non-fuel, gas, and petrochemical products for domestic market, Pertamina operates 8 Marketing Units located throughout Indonesia. Pertamina storage facilities comprise of 24 units of in-land depo, 97 units of sea-fed depo, 53 units of aviation depo with 1,308 units of tanks and 1,051 kilometers pipeline. Maximum storage capacity reaches 13.6 million kiloliters. The distribution channels include over-land, by sea and by air. To expand its distribution network for its products, Pertamina and partners have developed a range of supporting facilities for its distribution activities.

Downstream Business Products

In general, the downstream products consist of fuel, special fuel, non-fuel and petrochemical, gas, and other products. Fuel products, comprise of Premium, Kerosene, Autogas, Automotive Diesel Oil (ADO), and Industrial Fuel Oil (IFO). Special Fuel products, comprise of Aviation Gasoline (Avigas), Aviation Turbin Fuel (Avtur), Super TT, Premix 94, Pertamax, and Pertamax Plus. Non-Fuel and Petrochemical products comprise of Green Cokes, SBP/LAWS/SGO, Polytam, Pure Terephithalic Acid (PTA), Asphalt, Paraxylene, Benzene, Minarex, Lube Base Oil, Lube Oil, Minasol, Waxes, Pertasol, Propylene, Paraffinic 60 & 95, Raffinate, Toluena, and Heavy Aromat. Some well-known lube oil brands are Mesran, Mesrania, Meditran, Rored, Translik HD, Prima XP, Martron, Medripal, Salyx, Turalik, Grease Pertamina, etc. Gas products, comprise of Liquid Petroleum Gas (LPG) and Liquid Natural Gas (LNG). Other products comprise of Low Oil Mogas Component (LOMC), Naphta, Residue, LSWR, HVGO, Decant Oil, Sulfur, and Lean Gas.

Other Businesses

Pertamina has 13 Subsidiaries and 16 Joint Ventures operating in various industries such as hotel, Upstream & Downstream business support service, shipping, airlines, dockyard, marketing service, hospital, oil drilling service, management service, contractor, supplier, insurance, manufacturing, and others. Subsidiaries and Joint Ventures as Portfolio Investment are expected to increase company's value such in the form of either dividend or through their support to Pertamina activities.

Besides, the company is also engaged in investment holding representing the PERTAMINA Group in cooperation with many national private and foreign companies. The company invested its shares in more than 22 companies MITSUI and MITSUBISHI CORPORATION (both are trading houses of Japan) have guaranteed US$ 120.0 million which will be issued by Japan Bank of International Corporation (JBIC) to PERTAMINA in the development of plant which will produce pure gasoline (without timbel).

PERTAMINA with eight production sharing contractors have signed nine new oil-gas deep sea exploration areas at Makassar Straits and Sumatra with planned investment of US$ 5.0 billion. In 2005, P.T. PERTAMINA planned to develop biofuel in Balongan, West Java.

To realize its plant, P.T. PERTAMINA as a plant builder made a cooperation agreement with P.T. REKAYASA INDUSTRI as a company making design and engineering and planting castor trees and Bandung Institute of Technology (ITB) as the licensor on 18 August 2005. The plant has annual production capacity of 15 tons per day producing B-100 basic materials and then to be blended with pure diesel oil producing B-5 or B-10. Initially, the implementation of this project should be at the end of 2006. However, due to lack of castor seeds, the target has been extended in end 2007.

Today, P.T. PERTAMINA is in the preparation stage to realize the plan. Mr. Mohamad Afdal Bahaudin, a director of P.T. PERTAMINA said that MITSUI & CO LTD. of Japan planned to finance the modification of Cilacap Refinery worth US$ 1.3 billion and formed a joint venture subsidiary with P.T. PERTAMINA which would be the owner and management of this new refinery.

P.T. PERTAMINA Ownership

Name of Company	Lines of Business	Percentage of Ownership (%)
Direct Ownership
P.T. PERTAMINA HULU ENERGI	Oil and Gas Exploration and Production	100.00
P.T. PERTAMINA EP	Oil and Gas Exploration and Production	100.00
P.T. PERTAMINA EP CEPU	Oil and Gas Exploration and Production	100.00
PERTAMINA E&P LIBYA LTD., BVI	Oil and Gas Exploration and Production	100.00
P.T. PERTAMINA EAST NATUNA	Oil and Gas Exploration and Production	100.00
P.T. PERTAMINA EP CEPU ADK	Oil and Gas Exploration and Production	100.00
P.T. PERTAMINA INTERNASIONAL EKSPLORASI DAN PRODUKSI	Oil and Gas Exploration and Production	100.00
CONOCO PHILIPS ALGERIA LTD, Cayman Island	Oil and Gas Exploration and Production	100.00
P.T. PERTAMINA HULU INDONESIA	Oil and gas Exploration and Production	100.00
P.T. PERTAMINA GEOTHERMAL ENERGY	Geothermal Exploration and Production	100.00
P.T. PERTAMINA DRILLING SERVICES INDONESIA	Oil and Gas Drilling Services	100.00
P.T. ELNUSA Tbk	Processing and Sale of Oil and Gas Products, etc.	41.10
P.T. PERTAMINA GAS	Gas Trading, Transportation, Processing and Distribution	100.00
P.T. PERTAMINA POWER INDONESIA	Electricity Services	100.00
P.T. PERTAMINA PATRA NIAGA	Trading Services and Industrial Activities	100.00
PERTAMINA INTERNATIONAL TIMOR S.A.	Trading Services	95.00
P.T. PERTAMINA RETAIL	Public Fuel Filling Station Services	100.00
P.T. PERTAMINA LUBRICANTS	Lubricants Processing and Marketing	100.00
P.T. PERTAMINA TRANS KONTINENTAL	Shipping Services	100.00
P.T. PERTAMINA INTERNATIONAL SHIPPING	Shipping Services	100.00
P.T. PELITA AIR SERVICES	Air Transportation Services	100.00
P.T. PERTAMINA DANA VENTURA	Investment Management	100.00
P.T. PERTAMINA TRAINING & CONSULTING	Human Resources & Consulting	100.00
P.T. PATRA JASA	Offices, Houses Rental and Hotel Operations	100.00
P.T. PERTAMINA BINA MEDIKA	Health Services and Hospital Operations	100.00
P.T. TUGU PRATAMA INDONESIA	Insurance Services	65.00
P.T. KILANG PERTAMINA INTERNASIONAL	Refineries	100.00
PACIFIC PETROLEUM & TRADING CO. LTD., Japan	Trading	50.00
P.T. TRANS PACIFIC PETROCHEMICAL INDOTAMA	Petrochemical and Petroleum Products Industry	48.59
P.T. DONGGI SENORO LNG	Purification and Processing of LNG	29.00
P.T. ASURANSI SAMSUNG TUGU	Insurance Services	19.50
SEPLAT PETROLEUM DEVELOPMENT PLC., Nigeria	Oil and Gas Services	21.37
P.T. NUSANTARA REGAS	LNG Regasification and Distribution	60.00

Source: P.T. PERTAMINA (Persero)

During the period 2010-2017, oil and gas investment tended to fluctuate following the dynamics of the development of crude oil prices. The highest point of oil and gas investment during the period occurred in 2013. The realization of oil and gas investment achieved since 2014-2017 tends to decline significantly so that in 2017, the value of investment results submitted per January 5, 2018 reached 8.399.47 million USD, or 37.84% of the total value of oil and gas investment in 2013. It is undeniably influenced by oil prices that tend to be less supportive. Based on existing data, the amount of oil and gas investment is quite elastic against ICP. If in the previous year ICP reached high prices, then in the next year most likely value of oil and gas investment also increased. On the contrary, if in the previous year ICP reached low price, then the value of oil and gas investment in the next year will decrease.

Realization of oil and gas investment (Million USD), 2011 - 2017

Year	Downstream (Million USD)	Upstream (Million USD)	ICP (US$/Barrel)
2011	2,382,05	16,106,00	111,55
2012	1,608,36	17,872,00	112,73
2013	1,994,73	20,384,00	105,85
2014	1,346,51	20,380,79	96,51
2015	2,644,02	15,340,00	49,21
2016	1,150,04	11,586,01	40,13
2017	755,33	7,644,14	51,19

Source: Directorate General of Mines Energy and Mineral Resources

According to financial statement which audited by Purwanto, Sungkoro & Surja (Public Accountant) that sales turnover of the company in 2014 amounted US$ 70,648.4 million with a net profit of US$ 1,511.9 million decreased to US$ 41,762.7 million with a net profit of at least US$ 1,143.6 million in 2015 drop to US$ 36,486.7 million with a net profit of at least US$ 3,098.8 million in 2016 and rose to US$ 42,959.3 million with a net profit of at least US$ 2,407.0 million in 2017. It is projected the sales turnover will be rising by at least 6% in 2018. We observe that P.T. PERTAMINA is supported by financially fairly strong behind it. So far, we did not hear that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers. The condensed financial statement is shown.

(In US$ Thousands)

Descriptions	31 December
Descriptions	2017	2016	2015	2014
A. ASSETS
a. Current Assets	17,286,806	16,240,987	14,329,659	20,158,755
b. Non Current Assets	33,926,764	30,992,219	31,189,244	30,195,758
c. Other Assets	1,455,858	921,934	1,001,771	1,077,945
TOTAL ASSETS	51,213,570	47,233,206	45,518,903	50,354,513
B. LIABILITIES &STOCKHOLDERS EQUITY
a. Current Liabilities	9,416,989	8,107,156	8,546,589	13,406,488
b. Non Current Liabilities	17,970,227	17,051,483	17,497,076	18,133,254
c. Stockholder’s Equity : - Paid Up Capital - Advance for share issuance - Additional Paid Up Capital - Component contributed assets - Other equity component - Retained Earnings Total Stock holder’s Equity	13,417,047 - 2,736 1,361 487,699 9,411,296 23,826,354	13,417,047 - 2,736 1,361 664,617 7,778,484 22,074,567	9,864,901 3,552,146 2,736 1,361 730,119 5,130,890 19,475,238	9,864,901 - 3,791 1,361 943,719 10,445,724 18,814,771
C. INCOME STATEMENT
a. Total Sales and Other Revenues	42,959,325	36,486,744	41,762,680	70,648,377
b. Operating Profit	7,514,295	8,542,511	5,972,523	6,791,211
c. Net Profit (loss)	2,407,012	3,098,778	1,143,629	1,511,960

Notes: 31 December 2014, 2015, 2016 and 2017 by KAP Purwanto, Sungkoro & Surja (Ernst & Young)

The management of P.T. PERTAMINA (Persero) is led by Mrs. Nicke Widyawati (50) a professional manager with experience in oil and gas exploration and production, trading and distribution of fuel oil, etc. Nicke Widyawati serves as Acting Chief Executive Officer (President Director) of P.T. Pertamina (Persero) and Director of Human Resources of P.T. Pertamina (Persero) based on SOE Minister Decree No. SK-97/MBU/04/2018 issued April 20, 2018 on Dismissal and Appointment of Members. The company's management is handled by professional staff in the above business. They have wide relations with private businessmen within and outside the country. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. PERTAMINA (Persero) is sufficiently fairly good for business transaction.

Attachment:

List of the PERTAMINA Group Members

ASURANSI SAMSUNG TUNGU, P.T. (Insurance Services)

BADAK NATURAL GAS LIQUEFATION, P.T. (LNG Processing)

CONOCOPHILIPS ALGERIA LTD, Cayman Island (Oil and Gas Exploration and Production)

DONGGI SENORO LNG, P.T. (LNG Processing)

ELNUSA Tbk, P.T. (Oil and Gas Construction Services and Investment Holding)

GEODIPA ENERGI, P.T. (Electric Power Plant Development)

KILANG PERTAMINA INDONESIA, P.T. (Refinery)

NUSANTARA REGAS, P.T. (Floating Storage Regasification Terminal)

PACIFIC PETROLEUM & TRADING CO, LTD., Japan (Marketing Services)

PATRA DOK DUMAI, P.T. (Maintenance of Vessels)

PATRA JASA, P.T. (Hotel and Management Services)

PATRA NIAGA, P.T. (Trading and Industrial Services in the Field of Oil and Gas)

PATRA SK, P.T. (Lubricant Processing)

PATRA SUPPLIES SERVICES, P.T. (Catering Services)

PELITA AIR SERVICES, P.T. (Air Transportation and Aircraft Charter)

PERTAMINA, P.T. (Upstream, Downstream, Trading and Investment Holding)

PERTAMINA BINA MEDIKA, P.T. (Medical and Hospital Management)

PERTAMINA DANA VENTURA, P.T. (Investment Funds Management)

PERTAMINA DRILLING SERVICES INDONESIA, P.T. (Drilling Exploration Services)

PERTAMINA EAST NATUNAL, P.T. (Oil and Gas Exploration and Production)

PERTAMINA EP, P.T. (Oil and Gas Exploration and Production)

PERTAMINA E&P LIBYA LTD., British Virgin Island (Oil and Gas Exploration and Production)

PERTAMINA EP CEPU, P.T. (Oil and Gas Exploration)

PERTAMINA EP CEPU ADK, P.T. (Oil and Gas Exploration and Production)

PERTAMINA EP RANDUGUNTING, P.T. (Oil and Gas Exploration)

PERTAMINA GAS, P.T. (Gas Services)

PERTAMINA GEOTHERMAL ENERGY, P.T. (Geothermal Exploration and Power Plant Development)

PERTAMINA HULU ENERGI, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGY AUSTRALIA PTY LTD., (Oil and Gas Exploration)

PERTAMINA HULU ENERGI COASTAL PLAINS PEKANBARU, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI CORRIDOR, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI DONGGALA, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI GEBANG NUSANTARA, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI JABUNG, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI JAMBI MERANG, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI KAKAP, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI KERAMA, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI MAKASSAR STRAITS, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI METANA KALIMANTAN A, P.T. (Coal Bed Methane)

PERTAMINA HULU ENERGI METANA KALIMANTAN B, P.T. (Coal Bed Methane)

PERTAMINA HULU ENERGI METANA SUMATERA TANJUNG ENIM, P.T. (Coal bed Methane)

PERTAMINA HULU ENERGI METANA SUMATERA 2, P.T. (Coal Bed Methane)

PERTAMINA HULU ENERGI OFFSHORE NORTH WEST JAVA, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI OGAN KOMERING, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI PASIRAMAN, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI RAJA TEMPIRAI, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI ROKAN CPP, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI SALAWATI, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI SALAWATI BASIN, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI SEMAI II, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI SIMENGGARIS, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI SOUTH JAMBI B, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI TENGAH K, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI TOMORI SULAWESI, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI TUBAN, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI TUBAN EAST JAVA, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI W MADURA OFFSHORE, P.T. (Oil and Gas Exploration)

PERTAMINA HULU ENERGI WEST GLAGAH KAMBUNA, P.T. (Oil and Gas Exploration)

PERTAMINA HULU INDONESIA, P.T. (Oil and Gas Exploration and Production)

PERTAMINA INTERNASIONAL EKSPLORASI DAN PRODUKSI, P.T. (Oil and Gas Exploration and Production)

PERTAMINA INTERNASIONAL SHIPPING, P.T. (Shipping Services)

PERTAMINA INTERNATIONAL TIMOR S.A. (Trading Services)

PERTAMINA LUBRICANTS, P.T. (Lubricant Processing and Marketing)

PERTAMINA PATRA NIAGA, P.T. (Trading Services and Industrial Activities)

PERTAMINA POWER INDONESIA, P.T. (Electricity Services)

PERTAMINA RETAIL, P.T. (Public Fuel Filling Stations Services)

PERTAMINA TRANS KONTINENTAL, P.T. (Tanker and Shipping Services)

PERTAMINA TRAINING & CONSULTING, P.T. (Consulting Services)

PURNA BINA INDONESIA, P.T. (Construction Services)

TRANS PACIFIC PETROCHEMICAL INDOTAMA, P.T. (Petrochemical and Petroleum Industry)

TUGU PRATAMA INDONESIA, P.T. (Reinsurance Services and Investment Holding)

USAYANA, P.T. (Oil and Gas Drilling Services)

YEKAPEPE INTIGRAHA, P.T. (Building Management Services)

YEKAPEPE USAHA NUSA, P.T. (Contracting Services)

ZAMBESI INVESTMENT LIMITED, Hong Kong (Trading and Investments)

Etc.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 68.20
UK Pound	1	INR 89.58
Euro	1	INR 78.79
IDR	1	INR 0.0048

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIY

Report Prepared by :	SDA

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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