Pertamina clarifies

In connection with the report entitled "Pertamina to sell three subsidiaries this year" published in The Jakarta Post, June 9, we deem it necessary to clarify the matter as follows: * In line with the long-term plan of PT Pertamina (Persero), 2004-2008, and the outcome of its executive meeting on March 18- 19, 2004, the management of Pertamina will conduct a comprehensive evaluation of all subsidiaries and joint ventures to determine their future direction. A team for the restructuring of subsidiaries and joint ventures in charge of the evaluation will report its findings to the executive board in July 2004, before submitting them to the board of directors for approval. * At present Pertamina has 14 subsidiaries, which are being restructured and regrouped by considering whether or not they support Pertamina's core business for the purpose of increasing the efficiency and effectiveness of the company's business portfolio in the effort to enhance the value of Pertamina in incorporated terms. Basically three measures/options will be adopted: Retention (by merger), divestment and liquidation. * As for the statement of Pertamina Finance Director Alfred Rohimone in the report that "Pertamina will sell Patra Jasa Hotel, insurance company PT Tugu Pratama and Pelita Air Service", we would like to clarify that our finance director has never mentioned the sale of PT Tugu Pratama.

HANUNG BUDYA Y., Pertamina Public Relations Manager, Jakarta

Note: Thank you for your clarification

--Editor