Hold a Townhall Meeting 2022, PRPP Commits to Continue Preparation for GRR Tuban Project

Jakarta, December 30, 2022 – Closing 2022, PRPP held a Town Hall Meeting 2022 on Friday (30/12/2022) with Refining a Better Future as its theme. PRPP's first Town Hall event since its establishment was attended by the Board of Directors and all PRPP workers, both those who participated directly at the company's Jakarta office and online.

"This year we have achieved a lot (from the targets set) and recorded significant progress on the project, thanks to the entire team for all their contributions to the company", opened PRPP President Director Reizaldi Gustino at the beginning of his speech.

Reizadi also assert the importance of this Town Hall Meeting activity as an effort to reflect all elements of the company on the things that have been achieved and also prepare for the next target.

In this 2022 as information, company has recorded several important milestones, including completion of the General Engineering Design (GED) or GRR Tuban facility design. The GED function itself consists of 2 (two) stages, including Basic Engineering Design (BED) which has been going since November 2019 until March 2021 then continued with the Front End Engineering Design (FEED) work which ended on May 31, 2022.

Simultaneously, cooperation with strategic partners continues to be maintained, which this year the company initiated Pertamina Group synergy, namely with PT Pertamina Gas Negara, Tbk related to the supply of natural gas and gas infrastructure; and PT Pertamina International Shipping regarding the provision of sea transportation services, port facilities, and port services; PT Pertamina Power Indonesia regarding the provision of electricity, steam, and water. That was realized by signing Head of Agreement (HoA) or Principals of Agreement between fellow Pertamina Group companies with the company on April 18, 2022. The collaboration, which is expected to have a positive impact in terms of Capex and Opex optimization, environmental impact, and maintained reliability of the GRR Tuban refinery, is projected to produce a total potential synergy of USD 3.56 billion.

Then in preparation for the implementation of the Engineering, Procurement, & Construction (EPC) work of GRR Tuban Project, the company has also released a prequalification announcement to recruit potential contractors who will support the company in the EPC phase later.

Reizaldi reminded that PRPP's task of realizing national energy independence through the construction of GRR Tuban refinery would enter crucial stage and be even more challenging s.

"Our biggest target right now is the Final Investment Decision (FID) approval at the shareholder level. Without there being a FID then there is no project. This FID will affect the implementation of other company targets such as EPC tenders and of course aspects of project financing," Reizaldi continued.

Reizaldi closed his presentation by inviting the entire PRPP family to remain enthusiastic, optimistic, and continue to contribute optimally in order to ensure the continuity of the fuel refinery construction project integrated with the petrochemical industry as one of the efforts to realize energy independence and the national petrochemical industry.

Meanwhile, at the same moment, the Director of Finance and Business Support, Pavel Vagero, assert that as a joint venture of entities originating from 2 (two) different countries, in addition to achievements of the business aspect, it is very important to establish a corporate culture as part of the corporate identity. "The management of corporate culture in the long term must be an enabler for the sustainability of the company's operations. In the future, we must diagnose, talk to each other and discuss, to create an ideal corporate culture because corporate culture has a big impact on the company's business," concluded Pavel.

PRPP is a joint venture company as well as part of the Pertamina Group which was given a mandate by the government to build and manage one of the National Strategic Project named Grass Root Refinery Tuban. GRR Tuban itself is projected to stand on an area of approximately 840 hectares in Jenu, Tuban with a crude oil processing capacity of approximately 300 thousand barrels per day and produce fuel products as well as petrochemicals and high-quality derivative products.*