COMPANY PROFILE 33 MANAGEMENT ANALYSIS AND DISCUSSION 91

CONTENTS

3. COMPANY PROFILE 33

Company’s Name and Address 35 PGN’s Group Structure 36 Company History in Brief 38 Lines of Business 38 Business Activities 38 Product or Services Produce 39 Business Unit 44 Organization Structure 46 Vision and Mission 47 Corporate Culture 50 Proiles of The Board of Commissioners 52 Proiles of The Board of Directors 54 Human Resources 54 Proile and Number of Employees 54 Number of Employees Based on Employment Status 54 Number of Employees By Organizational Level 55 Number of PGN and Subsidiary Employees by Education Level in 2015 56 Competency Development 60 Expenses 61 Composition of Shareholders 62 5 or More Shares Ownership as per December 31, 2015 62 Information of Majority Shareholders 62 Shares Ownership by The Members of Board of Commissioners and The Board of Directors as per December 31, 2015 63 Information of Subsidiary and Afiliated Companies 65 PT Saka Energi Indonesia 66 PT Gagas Energi Indonesia 67 PT PGN LNG Indonesia 68 PT PGAS Telekomunikasi Nusantara 69 PT Transportasi Gas Indonesia 70 PT PGAS Solution 70 PT Permata Graha Nusantara 71 PT Kalimantan Jawa Gas 71 PT Nusantara Regas 72 Stock Listing Chronology 74 Chronology of Other Securities Listing and Securities Rating 76 Name and Address of Institution and Capital Market Supporting Professionals 76 Securities Administration Bureau 76 Public Accountant Firm 76 PT Pemeringkat Efek Indonesia PEFINDO 76 Standard Poor’s Rating Services 76 Moody’s Investors Services Singapore Pte. Ltd. Sdf 76 Fitch Ratings Singapore Pte. Ltd. 76 Indonesia Stock Exchange 76 PT Kustodian Sentral Efek Indonesia KSEI 78 Awards and Certiications 82 Name and Address of Area Sales, Subsidiaries and Afiliates Ofices 84 Signiicant Events 2015

4. MANAGEMENT ANALYSIS AND DISCUSSION 91

Review of The Operations per Business Segment 91 Proitability per Business Segment 93 TransmissionTransportation Business Segment 94 TransmissionTransportation Business Segment Operating Performance 95 TransmissionTransport Business Segment Revenue 95 DistributionTrading Business Segment 96 Category of Gas Commercial or Distribution Customer 97 DistributionTrading Business Segment Operating Performance 99 Customer Proile 99 Number of Customer 100 Gas Price Adjustment 101 DistributionTrading Business Segment Revenue 101 Oil and Gas Business Segment Operating Performance 101 Oil and Gas Business Segment Operating Performance 102 Oil and Gas Business Segment Revenue 103 Other Business Segment 103 Other Business Segment Operating Performace 106 Description of The Financial Performance 106 Net Revenue 107 Cost of Revenue 109 Gross Proit 109 Distribution and Transmission Expenses 109 General and Administrative Expenses 109 Other Income 109 Other Expenses 110 Impairment of Oil and Gas Properties 110 Operating Proit 111 Finance Income 111 Finance Cost 111 Impairment on Goodwill 111 Loss on Foreign Exchange - net 111 Loss on Change in Fair Value of Derivative - net 112 Share in Proit of the Joint Venture 112 Proit Before Income Tax Beneit Expense 112 Tax Expense - Net 112 Other Comprehensive Income After Tax 113 Proit for Year Attributable to The Owners of The Parent Entity 113 Proit for The Year Attributable to Non- controlling interests 113 Total Comprehensive Income for The Year Attributable to Owners of The Parent Entity 113 Total Comprehensive Income for The Year Attributable to Non-controlling Interest 114 Asset 114 Current Assets 116 Short Term Investments 117 Trade Receivables 117 Other Receivables 1-11 Intro Page

1. PERFORMANCE OVERVIEW 12