REPUBLIC OF INDONESIA STATE NEWS

No. 1032, 2016 BPH Migas. Earth Gas Transport. The fare. Assignment. Change.

REGULATION OF THE PETROLEUM AND GAS DOWNSTREAM REGULATORY BODY

NUMBER 14 YEAR 2016

ABOUT

CHANGES TO THE REGULATIONS OF THE OIL DOWNSTREAM REGULATORY BODY AND

THE EARTH ' S GAS NUMBER 8 YEARS 2013 ABOUT THE PRICING OF THE TARIFFS

EARTH GAS TRANSPORT VIA PIPELINE

WITH THE GRACE OF THE ALMIGHTY GOD,

THE HEAD OF THE PETROLEUM AND GAS DOWNSTREAM AGENCY

DRAWS: a. that in order to carry out the provisions in

Indonesia Bank Regulation No. 17 /3/PBI/2015

about the Rupiah Usage Oblicity in the Country Region

Unity of the Republic of Indonesia, needs to be done

changes to the provisions regarding the pricing of the tariffs

earth gas transport through the pipeline;

b. that has been implemented

The Lower Board of Petroleum and Earth Gas on Wednesday

8 June 2016, as stated in the News

Event Session Number 08 /BA-SID/BPH MIGAS/BPH MIGAS/2016

date 8 June 2016;

c. that based on consideration as

referred to in letter a and letter b, needs to establish

Regulation of the Earth's Oil and Gas Lower Governing Body

on the Changes to the Lower Governing Body regulations

Oil and Earth Gas Number 8 Year 2013 on

The designation of Petroleum Transport Tariffs through Pipe;

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2016, No. 1032 -2-

Given: 1. Law No. 22 Year 2001 on Oil

and Earth Gas (State Sheet Of The Republic Of Indonesia

In 2001 Number 136, Additional Sheet Of State

Republic Indonesia Number 4152)

2. Government Regulation No. 67 of 2002 on

Board of Supply and Distribution Materials

Fuel Oil and Gas Transport Effort

Earth via Pipe (State Sheet of the Republic of Indonesia

Year 2002 Number 141, Additional State Sheets

Republic of Indonesia Number 4253) as it has been

amended with the Government of the Republic of Indonesia

Number 49 of 2012 on Change of Regulation

Government Number 67 Year 2002 about the Agency

The Provisioning Organizer and the Fuel distribution

Oil and Gas Transport Effort

via Pipe (State Sheet Of The Republic Of Indonesia

In 2012 Number 95, Additional Sheet Of State

Republic Indonesia Number 5308)

3. Government Regulation No. 36 of 2004 on

The Activities of Lower Oil and Earth Gas (Sheet

State of the Republic of Indonesia in 2004 No. 124,

Extra sheet of the Republic of Indonesia Number

4436), as has been amended by Regulation

Government Number 30 Year 2009 on Change

over Government Regulation No. 36 Year 2004

on the Activities of the Low Oil and Gas Earth

(State Sheet of the Republic of Indonesia Year 2009

Number 59, Additional Republican Sheet Republic

Indonesia Number 4996)

4. Decision of the President of the Republic of Indonesia No. 86 Year

2002 on the Establishment of the Governing Body and the distribution of Oil Fuel and Activities

Earth Gas Transport's efforts through Pipe

as it has been Amended by Presidential Regulation

Republic of Indonesia Number 45 of 2012 on

Changes to the Decision of the President of the Republic of Indonesia

No. 86 of 2002 on Establishment of the Agency

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Provisioning Organizer and Fuel distributions

Oil and Gas Transport Effort Earth

via Pipe (State Sheet of the Republic of Indonesia

Year 2012 Number 103)

5. Decision of the President of the Republic of Indonesia No. 145 /P

In 2015 on the Chairman of the Term of Chairman

and Member of the Provisioning Governing Body and

Distributions of Oil Fuel and Activities

The Earth Gas Transport Business through the Pipeline

Title of the Year 2011-2015

6. Regulation of the Minister of Energy and Mineral Resources

No. 19 of 2009 on Earth Gas Effort

via Pipe (Republic of Indonesia State News

2009 Number 274)

7. Indonesia Bank Regulation No. 17 /3/PBI/2015

about the Rupiah Use Liability in the Country Region

Unity of the Republic of Indonesia (Republican Gazette

Indonesia of 2015 No. 70, Extra Sheet

Republic of the Republic of Indonesia Indonesia Number 5683);

DECIDES:

SPECIFIES: THE REGULATION OF THE OIL AND GAS DOWNSTREAM REGULATORY AGENCY

THE EARTH ABOUT THE CHANGE IN BODY REGULATION

THE 8-YEAR-OLD PETROLEUM AND GAS REGULATOR

2013 ABOUT GAS TRANSPORT TARIFF DESIGNATION

EARTH THROUGH PIPES.

Article I

Some provisions in the Regulation of the Lower Governing Body

Oil and Earth Gas Number 8 Year 2013 on

The designation of Earth Gas Transport tariffs via Pipe (News

State of the Republic of Indonesia) 2013 No. 1037), changed

as follows:

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1. The provisions of Article 1 of the Figure 11 are changed, so that Article 1

reads as follows:

Article 1

In this Body Regulation is referred to:

1. Gas Earth is the result of a natural process in which

hydrocarbons are under pressure and

atmospheric temperatures of the gas phase are obtained

from the Earth's Oil and Gas mining process.

2. Earth Gas Transport via Pipe is

the activities of channeling Earth Gas through the pipeline

covering the transmission activities, and/or transmission and

distribution through the flow of flows and equipment that

operated and/or Ushered in as an

integrated system entity.

3. Transmission pipeline is a pipe to transport the Gas

Earth from the Earth's Gas or Field supply source

Earth Gas to one or more distribution centers

and/or to one or more Earth Gas consumers

or connecting supply sources

Earth Gas.

4. Transmission fields are certain fields of the network

Earth Gas transmission that is part of

The Master Plan of Transmission Network and Distribution

National Earth Gas.

5. The Transmission Pipe Network is a combination of

multiple Transmission pipelines that are interconnected,

ushered in or operated by one and/or

some Transporter.

6. A Distribution Pipeline is a pipe that transports the Gas

Earth from a Transmission Pipe or from Pipe

Distribution to the Earth Gas consumer or to the Pipe

Other distribution is network-shaped.

7. Distribution Network Territory is a specific region

of the Earth Gas distribution network that is

part of the Transmission Network Parent Plan and

National Earth Gas Distribution.

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8. Facilities are Transmission Pipe and/or Network

The Distribution Pipe along with the facilities

its supporters used in activities

the attempt to transport the Earth Gas through the Pipe.

9. Earth Gas Transport Company's license

is the permission granted to the Enterprise

to carry out the transport activities

Earth Gas through the Pipe with the aim to

obtain profit and/or profit.

10. Special Rights is the right to be granted the Agency

Replacement to the Agency for

operating the Earth Gas Transport via

Pipe on the Transmission Ruas and/or on the Region

Earth Gas Distribution Network based on auctions.

11. Rates of Earth Gas Transport via Pipe, which

subsequently called Tarif is a fee that

levied Transporter from Shipper for services

The Earth Gas Transport via Pipe.

12. The contract is Gas Transportation Agreement (GTA)

or the Earth Gas Transport agreement through

Pipe between Transporter and Shipper.

13. Internal Rate of Return (IRR) is a disconto level

where the value is now net of the cost (cash flow

negative) of the investment equals the current value net

of (positive cash flow) investment advantage.

14. Weighted Average Cost of Capital (WACC) is

an average weighted average of its own capital costs (equity) and

loan capital (debt) invested in

a venture activity.

15. Cost of Service is the amount of revenue that

is the right Transporter obtained from Tarif

which is paid by Shipper for the revenue

it may return all costs that

issued by Transporter in the running

of Earth Gas Transport's activities through Pipe,

as well as a reasonable advantage of the Facility's

investment.

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16. Salvage Value is an estimated asset remaining value

Facility at the end of its lifetime benefit.

17. Point of receipt is the Earth Gas surrender point at the

Facility from Shipper to Transporter.

18. Submission point is the drop point of Earth Gas in

The facility from Transporter to Shipper and/or

Offtaker.

19. Transporter is the Entity ID

The Earth Gas Transport Company via Pipe and

has Special Rights.

20. Shipper is an Effort utilizing

Transporter's Facility to transport Earth Gas

at its disposal.

21. An Entity is a body-shaped company

the law that runs the type of effort is fixed,

continuous and established in accordance with

applicable laws and

works and resides within Country Territory

Unity of the Republic of Indonesia.

22. The oil and gas downstream regulatory agency that

subsequently called the Board of Reguunders is the Agency

which is set up to perform the arrangement and

oversight of the provision and

distribution of the Oil and Gas Fuel Earth

as well as the Earth Gas Transport via Pipe on

Lower Business Activity.

23. Consumer of Earth Gas (end user) is the user

Earth Gas via a gas-using pipe

Earth for its own sake and not for

diniagakan.

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2. Between Section 7 and Section 8 of the following section,

Article 7A which reads as follows:

Section 7A

(1) Tarif is set to use the Dollar currency

United States per one MSCF (thousand feet standard

cubic) Earth Gas transported Transporter.

(2) Against the Contract and/or amendment of the contract

signed after July 1, 2015,

payment of the Earth Gas Transport Tarif through

The Pipe as referred to in paragraph (1) is performed

with using the Rupiah currency with

reference kurs Jakarta Interbank Spot Dollar Rate

(JISDOR) at the time of payment.

Article II

The Regulation of the Agency is beginning to apply at the promulgates

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For everyone to know, ordered

An invitee of the Regulation of the Agency with its placement

in the Republic of Indonesia News.

Specified in Jakarta

on June 8, 2016

DOWNSTREAM GOVERNING BODY HEAD

PETROLEUM AND GAS,

ttd

ANDY NOORSAMAN SOMMENG

Reundrased in Jakarta

on July 15, 2016

DIRECTOR GENERAL

REGULATION OF NEGOTIATIONS

MINISTRY OF LAW AND RIGHTS MAN

REPUBLIC OF INDONESIA,

ttd

WIDODO EKATJAHJANA

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