Ensuring Land Purchase in Accordance with Provisions, Pertamina continues the National Strategic Project of the Tuban

Jakarta, 18^th February 2021 - Land acquisition for a new refinery or Grass Root Refinery Tuban (GRR Tuban) building purposes has been completed, Pertamina through Subholding Refining & Petrochemical, PT Kilang Pertamina Internasional ensures that land acquisition is in accordance with applicable regulations.

Corporate Secretary of Subholding Refining & Petrochemical, PT Kilang Pertamina Internasional which manages the Tuban GRR project, Ifki Sukarya, said that the project with an investment value of around 15 billion dollars, is in the early work stage, namely land clearing, around 328 hectares and the restoration of abrasion land covering an area of 20 hectares has been completed. The land acquisition process has been completed, where the majority of affected residents have received reimbursement from Pertamina. The land acquired has reached 99% of the target area of 377 ha of community land. Ifki explained that the land acquisition for the Tuban GRR project has gone through all mechanisms established through Law Number 2 of 2012 concerning Land Acquisition for Development for the Public Interest.

The law has regulated the procedures for land acquisition for the construction of refineries, namely (i) planning, (ii) preparation, (iii) sedition; (iv) the release of agency land.

In the preparatory stage, based on the results of the inventory and identification of land tenure, Pertamina has followed the compensation assessment procedure in accordance with the provisions by appointing the Office of Public Appraisal Service (KJPP), then determined through the local National Land Agency.

"This KJPP is the one who conducts the assessment of the land to be expropriated", said Ifki. Ifki added that Pertamina could not intervene in the land assessment process carried out by KJPP and other parties. Pertamina is also principled so that this land acquisition process does not harm society whose land is affected. In fact, Pertamina also provides education to society so that they can manage the money from land replacement as well as possible.

"The average resident has a large area of land. The larger land, the greater reimbursement money received", explained Ifki.

The GRR Tuban Project is one of National Strategic Projects mandated by Government to Pertamina. The purpose of building NGRR Tuban is to increase oil processing capacity by 300,000 barrels per day which will produce Euro V standard fuel in the form of gasoline around 80,000 barrels per day, gasoil around 100,000 barrels per day and Avtur around 30,000 barrels per day.

GRR Tuban is integrated with a petrochemical refinery that produces 3,750 KTPA. With the presence of a refinery in Tuban, future fuel needs can be met from domestic refineries, thereby reducing imports.

The construction of the refinery will also absorb 35 percent of the domestic component level, absorption of 20 thousand workers during construction and 2,500 during operation. In addition, while in the initial stage of construction, Pertamina has absorbed 271 local Tuban workers.

"Pertamina appreciates all parties who have provided their support from central government, regional governments, communities and other stakeholders, so that Tuban GRR Project has progressed well even in the midst of a pandemic that full of challenges", concluded Ifki.