Strengthening Internal Capabilities, PRPP Ready to Enter Project Financing Phase for GRR Tuban

Jakarta, September 10, 2025 – As a mega project for developing an integrated refinery and petrochemical industry with a grass root status—developed from the ground up—the Grass Root Refinery (GRR) Tuban Project faces a number of critical targets to be achieved. Among the most crucial in this development phase is ensuring the strategy and initiatives related to project financing. This aspect will serve as a benchmark to assess the project’s economic feasibility while also ensuring the company secures funding from lenders to finance its execution.

According to Pavel Vagero, Finance and General Support Director of PRPP, the urgency of project financing should not be regarded merely as an add-on or complement in developing a mega project like GRR Tuban, but rather as a gatekeeper or determinant for the approval of the Final Investment Decision (FID) of a project or initiative.

He delivered this message in his remarks during the Legal Preventive Program (LPP) titled “Financing Pertamina’s Refinery & Petrochemical Projects”, held on Tuesday (9/9/2025) at Sopo Del Building, South Jakarta.

“Another important point related to the criticality of project financing is the fact that this project (GRR Tuban) is massive in scale. In addition, we must navigate diverse stakeholders, as well as the dynamics of the global economic and political landscape. This requires creative thinking, as well as specific solutions and decisions, to ensure the sustainability of the GRR Tuban Project,” Pavel continued.

When asked about PRPP’s readiness for the project financing phase, he emphasized that the entire organization had prepared itself thoroughly to face it.

“Furthermore, the project financing stage requires contributions from all elements of the company. All aspects—whether technical, safety and environmental, market condition analysis, or other technical and non-technical factors we have prepared—will be decisive in making this project attractive to lenders. Therefore, at this stage, project execution plans, risk management, and the strengthening of the company’s internal capacity become highly important,” he concluded.

Also present as a keynote speaker at the LPP event was Clarinda Tjia-Dharmadi, partner at the leading Singapore-based law firm Watson Farley & Williams, who presented insights on project financing strategies for energy projects, particularly from a legal perspective.

Clarinda further stated that PRPP’s unique position as part of Pertamina, a state-owned enterprise (SOE), and at the same time a joint venture with a Russian energy company, requires a well-tailored strategy, particularly in project financing. Nevertheless, the lawyer—specializing in mega energy project development and project financing—affirmed her optimism for the sustainability of the project, both during its construction phase and future operations, provided that detailed assessments are carried out.

The 2025 LPP event was attended by the Board of Directors, management, and employees involved in PRPP’s project financing activities. LPP serves as an educational and outreach initiative addressing legal issues in the Company’s business activities, designed to prevent potential legal problems in the future. This aligns with PRPP’s commitment to implementing good corporate governance, which is an integral part of the Company’s business operations.