LATHAM & WATKINS PRESS RELEASE

Latham & Watkins represented the trustee borrower, JP Morgan Chase, in connection with the US$200 million financing, described below in Pertamina's press release.

Singapore partner Jake Redway lead the Latham team, which included Singapore associates Clarinda Tjia-Dharmardi and Matthew Richards, and New York tax partner Jiyeon Lee-Lim.

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PERTAMINA ACCOMPLISHED THE FUNDING OF THE BLUE SKY PROJECT DEVELOPMENT

Pertamina has successfully accomplished the funding of the Blue Sky Project development by executing the Loan Agreement, Purchase and Sales Agreement, Trustee Paying Agreement and Operator Agreement.

This success shows that Pertamina has maintained a confidence among the international business community. The execution of these agreements gives a certainty in the funding of the facilities of the Blue Sky Project development in Balongan and Cilacap refineries.

The total amount of the budget required to develop the said project is US$275 million with the following details: Balongan refinery with a total amount of budget of US$191 million and Cilacap refinery with a total amount of budget of US$84 million. The funding of this project derives from Pertamina's equity in the amount of US$75 million (30%) and the balance amounting to US$200 million (70%) is in the form of loan extended by Japanese Bank for International Corporation (JBIC) and other commercial banks such as UFJ Bank, Credit Lyonnais Bank, ING Bank and Bank of Tokyo Mitsubishi. Mitsui Corporation acted as the offtaker and financial lead arranger. The execution of these agreements serves as a milestone in commencing the Blue Sky Project development and it is estimated that the project development starts operating in mid 2005.  In addition, the project would become a benchmark for Pertamina in attracting other investments for the next development of other big projects.

Blue Sky Project itself has a strategic value for Pertamina as it not only increases the competitive ability of Pertamina's products, but it can also reduces the import of high octane mogas component (HOMC) which has become scarce in the international market.

The development of the facility to facilitate the Blue Sky Project is done in two major refineries of Pertamina, i.e., Balongan and Cilacap refineries. With the completion of Blue Sky Project in Balongan and Cilacap, it is hoped that all premium products used in Indonesia is environmentally friendly in mid 2006.

In an effort to maintain a clean air, Pertamina has distributed unleaded gasoline as of July 2001 in the Jabotabek (Jakarta, Bogor, Tangerang and Bekasi) areas. Further in the beginning of November 2001, the distribution of unleaded gasoline was performed in Cirebon and the Northern Sea of West Java. Specifically for Bali, the distribution of the unleaded gasoline was performed in November 2002; however, the official distribution was performed by the Minister of Energy and Natural Resources, Purnomo Yusgiantoro, President Director of Pertamina, Baihaki Hakim and Governor of Bali which was represented by Head of Bapedal of Bali, I Wayan Suji on February 1, 2003.