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Page 1
                                                                                                      Connecting Indonesia:
                                                                                                      One Purpose - One Planet
                                                                                                      Sustainability Report

                                                                                                      2025
                                                                                                      PT XLSMART Telecom Sejahtera Tbk




                                          2025
                                           Sustainability Report | PT XLSMART Telecom Sejahtera Tbk




Sustainability Report

2025
PT XLSMART Telecom Sejahtera Tbk
XLSMART Tower
Jl. HR Rasuna Said X5. Kav.11–12,
East Kuningan, Setiabudi, South Jakarta
Jakarta 12950, Indonesia
Tel. (62-21) 576 1881
Fax. (62-21) 576 1880
e-mail. corpsec@xlsmart.co.id
www.xlsmart.co.id
Page 2
PT XLSMART Telecom Sejahtera Tbk and/or in this report
referred to as “XLSMART” or “the Company”, engages in the
telecommunication services, discloses its achievements in
economic, social, environmental, governance performance
as well as sustainability management and strategies
in this 2025 Sustainability Report. The Sustainability
Report is part of the Annual Report which is published in a
separate document. This report contains material data and
information for stakeholders, including forward-looking
statements containing future projections and conditons,
except for the historical matters. The Company understands
that risks and uncertainties from various factors can affect
operational performance and future business conditions.
The Company therefore cannot ensure that the data and
information regarding future projections stated in this Report
are correct, accurate, and can be entirely fulfilled.




B        PT XLSMART Telecom Sejahtera Tbk
Page 3
                                                       Connecting Indonesia:
                                                     One Purpose - One Planet




Connecting Indonesia:
One Purpose - One Planet

The merger between XL Axiata and Smartfren is more than a strategic
move. It combines complementary strengths, unites infrastructure, and
aligns a shared vision to create a stronger, more inclusive connectivity
landscape. This is a transformation that connects millions of Indonesians
to opportunities while advancing a future built on sustainability.

We manifest this shared aspiration through impactful initiatives that
strengthen our presence across the nation. Through integrated distribution
and stronger infrastructure, we keep our trusted brands alive while
accelerating innovation to expand access for all.

Our initiatives emphasize the transition to renewable energy, the
implementation of eco-friendly operations, and the empowerment of
communities through programs that advance digital literacy, foster
entrepreneurship, and build local capacity. These efforts are anchored in
strong governance that ensures every initiative is carried out with integrity
and accountability. Together, these endeavours enable technology to
create tangible impact where it matters most.

We believe connectivity is a bridge to opportunity and a foundation for
a better future. It enables people to grow, communities to prosper, and
the planet to be protected for generations to come. With this purpose
guiding us, XLSMART is shaping a digital future where every connection
contributes to a more inclusive and sustainable Indonesia, one where
people and the planet thrive together.




                                                      2025 Sustainability Report   1
Page 4
Table
of Contents
                                           39 Sustainability Commitment of
                                              XLSMART

                                           40 XLSMART’S ESG Roadmap

        Sustainability                     41 Net Zero Carbon by 2050                  Sustainability
        Performance                        41 Our Journey Towards Net Zero
                                                                                       Governance
        Highlights                         42 Initiatives for Sustainable Future
                                                                                   72 Committed to the Effective
                                                                                      Implementation of GCG Practices
     6 Go Beyond Together                  43 Strengthening the Culture of
                                                                                   75 Structure and Composition of
                                              Sustainability
     8 Sustainability Performance                                                     Sustainability Governance
                                           45 Contributions to the Sustainable
    16 2025 Awards and Certifications                                              78 The Roles of XLSMART’s
                                              Development Goals (SDGs)
                                                                                      Governance Body in Impact
    18 2025 Sustainability Event                                                      Management
       Highlights
                                                                                   79 Performance Assessments of
                                                                                      Governance Body

                                                                                   81 Nomination and Selection of
                                                                                      Governance Body

                                                                                   82 Remuneration Policy and Process
                                               About XLSMART                       83 Sustainability Training and
        Message from the                   48 Corporate Information                   Competency Development
                                                                                      Program
        Board of Directors                 49 Significant Changes in the
                                              Company                              85 Risk Assessment of Sustainability
    25 Message from the Board of                                                      Implementation
       Directors
                                           50 Purpose, Vission, and Core Values
                                                                                   86 Constraints, Challenges and
    32 Statement of Accountability                                                    Opportunities in Sustainability
                                           52 XLSMART at A Glance
                                                                                      Implementation
                                           54 Our Transformation
                                                                                   87 Management of Conflict of
                                           60 Organization Structure                  Interest

                                           62 Group’s Structure                    88 Anti-Bribery and Anti-Corruption
                                                                                      Policy
                                           63 Subsidiaries, Associates, and
        Framework for                         Joint Ventures                       89 Stakeholder Relations
        Accelerating the                   64 Business Scale                       90 Communication of Key Issues
        Sustainability                     64 Shareholder Composition              91 Whistleblowing System
        Journey                            65 Association Membership               92 The Implementation of Customer
    36 Our Sustainability Strategy                                                    Privacy Policy
                                           66 Operational Area
    36 Materiality Assessment                                                      92 Code of Conduct
                                           68 Business Activities
    37 List of Material Topics                                                     93 Legal and Regulatory Compliance




2           PT XLSMART Telecom Sejahtera Tbk
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                                                                              Connecting Indonesia:
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     Environmental
     Stewardship                           Stronger                              Ensuring
                                           Performance                           Responsible and
 96 Integrating Environmental
    Stewardship into Our Operations        from People                           Ethical Business
 98 Energy Consumption                     Empowerment                      152 Post-Merger Improvements to
                                                                                Customer Experience
100 Reducing GHG Emission             121 Our Workforce
                                                                            152 Customer Protection,
101 Waste Management                  126 Employment Practices
                                                                                Engagement and Satisfaction
103 Resources Use & Efficiency        128 Employee Wellbeing within an
                                                                            156 Labelling and Marketing
                                          Equal and Inclusive Entity
105 Technology to Preserve                                                  157 Digital Responsibilities, Inclusion
    Biodiversity                      132 Occupational Health and Safety
                                                                                and Rights
106 Future Environmental Priorities   137 Defined Benefits Program and
                                                                            158 Integrating Sustainability into
                                          Other Pension Plan Obligations
                                                                                Innovations
107 Environmental Compliance
                                      137 People Development Strategies
                                          Going Forward




     Solid Performance                                                           About This Report
     to Empower the                                                         162 About This Report
                                           Shaping Inclusive
     Nation                                                                 162 Reporting Principles
                                           and Sustainable                  163 Reporting Scope and Boundaries
110 Economic Performance
                                           Digital Future                   163 External Assurance
114 Market Presence Expansion and
    Indirect Economic Impact          140 Delivering Impact on Society
                                                                            163 Feedback from Stakeholders
114 Sustainable Supply Chain          147 Measuring Our Social Impact and
                                                                            164 Feedback From
                                          Value Creation
115 Financial Assistance from the
                                                                            165 GRI Universal Standard Index -
    Government
                                                                                2021
116 Taxation Policy
                                                                            171 POJK 51/2017 Index




                                                                            2025 Sustainability Report            3
Page 6

          
Page 7
        Sustainability
Performance Highlights
Page 8
     Sustainability
     Performance Highlights
                    Highlight




Go Beyond Together

At XLSMART, value creation is measured not only
by performance, but by the legacy we build for the
future. As a digitally driven company committed
to accelerating sustainable innovation and carbon
neutrality, we believe that responsible growth creates
enduring value for people, communities, and the planet.


In 2025, XLSMART moves forward as a unified force
with a strengthened vision and renewed purpose.
Through it all, sustainability defines how we lead.
It shapes how we invest, how we innovate, and
how we perform. From strengthening governance
to accelerating digital inclusion and advancing
environmental responsibility, every step we take
reflects our commitment to long-term value creation.


We believe growth must go beyond numbers. It must
expand opportunities, protect the environment, and
earn trust through responsible leadership. This is how
our ambition manifests in measurable
progress throughout 2025.




6     PT XLSMART Telecom Sejahtera Tbk
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                                                                   Connecting Indonesia:
                                                                 One Purpose - One Planet




              Sustainable Fitch has
               assigned XLSMART

          Entity Rating                                               Entity Score


          2                                                           67
               Designated XLSMART as a

     "Social Pure Player"
      in recognition of its overall social contribution.




This rating reflects a good sustainability profile, driven by the
 environmentally and socially positive nature of fibre and 4G
                       network provision.

Sustainable Fitch noted that XLSMART’s business activities as
 environmentally and socially positive due to energy-efficient
networks and wide connectivity that supports digital inclusion,
               including under-served regions.




                       As published on Sustainable Fitch Website https://www.sustainablefitch.com/corporate-
                                  finance/sustainable-fitch-assigns-xlsmart-entity-rating-of-2-03-03-2026

                                                                  2025 Sustainability Report              7
Page 10
           Sustainability
           Sustainability
           Performance Highlights




Sustainability Performance

All 2025 figures presented in this Sustainability Performance Highlights represent the performance of XLSMART
following the merger. Data from Smartfren are primarily consolidated from April to December 2025 after the
completion of the merger process, with limited data availability for the period prior to the merger.

Meanwhile, figures for 2024 and 2023 represent the performance of XL Axiata Legacy prior to the merger. Given the
change in reporting scope and consolidation period, certain figures may not be directly comparable with those of
previous years.



Economic Performance [B.1]


     Production

                                                                            Data Traffic
                  BTS Tower
                                                                            (Data Production)
                  (Unit)
                                                                            (Petabyte)



225,649                                                   14,566
    2024   165,864          2023   160,124                  2024   10,547           2023    9,638



     Sales


                  Total Revenue
                  (Rp Billion)
                                                          42,485
                                                            2024   34,392           2023    32,323




                  Net Profit/Loss                                           Number of Customers
                  (Rp Billion)                                              (Million)



(4,415)                                                    73.00
    2024   1,847,631        2023   1,284,448                2024    58.80           2023    57.52




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                                                     Connecting Indonesia:
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 Eco-Friendly Products

                                                Number of Local
             Solar Panel
                                                Workers
             (Total)
                                                (Person)


259                              3,214
2024   252          2023   250   2024   1,648          2023     1,480




             Number of                          Local Suppliers
             Local Suppliers                    Contract Value
             (Entity)                           (Rp Billion)


602                              36,730.4
2024   484          2023   431   2024   15,068.4        2023     13,554.4




                                                   2025 Sustainability Report   9
Page 12
        Sustainability
        Performance Highlights




Environmental Performance [B.2]

 Total Water Consumption



                PDAM
                (m3)
                                                27,198.99
                                                 2024   7,497.46       2023      7,382.32




 Non Renewable Energy Consumption


                Fuel (Pertalite)                Fuel (Pertalite)
                (Liter)                         (Gigajoule)




312,322.00                                      10,376.00
 2024     275,593.70      2023   228,001.34      2024   9,156.60       2023      7,797.65




Diesel                                          Renewable Energy
(Liter)                                         (kWh)

1,030,365.97                                    3,334,087.00
 2024     1,189,149.24    2023   1,393,829.51    2024   1,000,000.00      2023      -




Diesel                                          Renewable Energy
(Gigajoule)                                     (Gigajoule)


37,216.82                                       12,002.71
 2024     42,952.07       2023   47,668.97       2024   3,600.00          2023      -



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                                                                                Connecting Indonesia:
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          Electricity from PLN                           Electricity from PLN
          (kWh)                                          (Gigajoule)


1,282,346,871.00                                         4,616,448.74
2024   956,319,188.00    2023     902,853,187.65           2024   3,442,749.08       2023     3,250,271.48




             Total Energy                                                   Energy Intensity
             Consumption                                                    (Gigajoule/Petabyte)
             (Gigajoule)



4,664,042.47                                             3,642.92
2024   3,498,457.75     2023     3,305,738. 74             2024      332          2023      290




              Energy Intensity
              (Gigajoule/Revenue
              Rp Billion)
                                                         0.10
                                                           2024      0.10          2023     0.10



Emissions


             Scope 1                             Scope 2                                  Scope 3
             (TonCO2eq)                          (TonCO2eq)                               (TonCO2eq)

             3,476.89                            988,304.73                               477.17
              2024    4,082.53                    2024   744,398.86                         2024   4,252.47
              2023    4,255.54                    2023   695,828.95                         2023   5,743.82


             Scope 1                             Scope 2                                  Scope 3
             (TonCO2eq/                          (TonCO2eq/                               (TonCO2eq/
             Rp Billion)                         Rp Billion)                              Rp Billion)

             0.86                                23.28                                    0.01
              2024    118.71                      2024   21,644.54                          2024   123.65
              2023    131.66                      2023   21,527.36                          2023   177.70

                                                                              2025 Sustainability Report      11
Page 14
          Sustainability
          Performance Highlights




                  Total Emissions
                  (TonCO2e)
                                                       992,258.79
                                                       2024     752,733.86       2023     705,828.32




                  Emission Intensity                                         Environmental Cost
                  TonCO2eq/Petabyte                                          (Rp Million)



4,217.68                                                  560.36
 2024     71.37           2023   61.90                        2024   86.20                2023       20




                  Emission Intensity
                  (TonCO2eq/Rp Billion)
                                                      0.09
                                                       2024     0.00            2023     0.00



       Waste


               Disposable                                              Recycled/Reused
               (Ton)                                                   (Ton)



24.48                                                     73.29
 2024     20.01           2023   -                            2024   86.20             2023      -



     Digital Innovation for Sustainable Environment

PowerSense (Smart Energy)
IoT-enabled air conditioning control system for BTS shelter towers to improve energy efficiency.

Xinergis (Smart Building and Energy Monitoring)
IoT-enabled monitoring system for electricity, generator, and water consumption.

HydroponiX (Smart Agriculture)
IoT-enabled hydroponic systems that support sustainable urban farming.

X-Maggot (Smart Waste Management)
IoT-enabled organic waste processing using Black Soldier Fly larvae.

12         PT XLSMART Telecom Sejahtera Tbk
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                                                             Connecting Indonesia:
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Social Performance [B.3]

                Number of Employees
                (Person)
                                         3,239
                                         2024   1,663           2023     1,495




                Number of Male                          Number of Female
                Employees                               Employees
                (Person)                                (Person)


2,307                                    932
2024   1,168          2023   1,047       2024   495            2023     448



                Number of Female as                     Number of Local People
                President Director and                  Occupying Senior Manager
                Director                                Positions
                (Person)                                (Person)


1                                        13
2024   2              2023   2           2024   8              2023     6



                Number of Training
                                                        Number of Employees
                Hours
                                                        Receiving Training
                (Hours)
                                                        (Person)


145,893                                  3,222
2024   53,587         2023   59,156      2024   1,655          2023     1,502




                Average Number of
                                                        Training Fees
                Training Hours
                                                        (Rp Million)
                (Hours/Person)


45                                       16,195,525.11
2024   36.63          2023   39.38       2024   7,449          2023     8,314


                                                           2025 Sustainability Report   13
Page 16
        Sustainability
        Performance Highlights




               Employee                                     Number of Work
               Turnover Rate                                Accidents
               (%)                                          (Times)



0.65                                        5
 2024   6.0             2023   11.1         2024   0              2023   3




               Occupational death                           Total CSR Funds
               (Times)                                      (Rp Billion)




0                                           28.10
                                            13
 2024   0               2023   0            2024   35.62          2023   20.73




               Number of Women                              Number of Beneficiaries
               Empowered                                    from Gerakan Donasi Kuota
               (Person)                                     (Person)



1,231,134                                   111,875
 2024   1,059,479       2023   949,261      2024   66,397         2023   41,900




               Router/Modem                                  Quota Donation
               Donation Amount                               Amount
               (Unit)                                        (Terabyte)



216                                         180,576
 2024   214             2023   71           2024   251,520        2023   689,397



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                                                           Connecting Indonesia:
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Governance Performance [B.3]

1 Committed to the implementation of OJK’s Sustainable Finance framework in
  accordance with POJK No. 51/POJK.03/2017 and SEOJK No. 16/SEOJK.04/2021,
  ensuring structured sustainability reporting and alignment with Indonesia’s
  sustainable finance roadmap.
2 Conducting Anti-Bribery and Anti-Corruption (ABAC) training programmes to
  strengthen employee awareness, reinforce ethical standards, and mitigate
  corruption risks across the organisation.
3 Requiring employees to sign ABAC and Gift Donation Sponsorship (GDS)
  Declarations as a formal commitment to integrity, transparency, and responsible
  business conduct.
4 Encouraging employees to participate in sustainability capacity-building
  programmes through the United Nations Global Compact Academy to strengthen
  understanding of global responsible business principles, including anti-
  corruption, human rights, labour standards, climate action, and sustainability
  governance.
5 Supporting the Sustainable Development Goals (SDGs) through the integration of
  sustainability principles into governance practices and operational decision-
  making processes.
6 Assigning a Sustainability Team under the Corporate Communications and
  Sustainability Department.
7 Reinforcing strong governance practices, with no fraud incidents recorded and
  no complaints submitted through the Whistleblowing System (WBS) throughout
  the year.




        Employees Joined in Anti-                    Employees Signed ABAC and
        Bribery and Anti-Corruption                  GDS Declaration
        Training



        3,239                                        100%
         2024    1,655                                2024     100%




                                                         2025 Sustainability Report   15
Page 18
          Sustainability
          Performance Highlights




2025 Awards and Certifications

AWARDS

Throughout 2025, the Company and its legacy entities received several national recognitions, reflecting the strength
of its public relations strategy, ESG commitment, and community empowerment programmes, with selected awards
highlighted as follows:




    Bina UMKM Award 2025                Electricity and     Anugerah Ekonomi Hijau 2025      Tjipta UMKM Awards 2025
            14 May 2025             Telecommunications      Category: Emissions Reduction          3 October 2025
        CFCD Foundation             Infrastructure Sector       through Digitalization          Eka Tjipta Foundation
Gold Award in the MSME Mentor              July 2025                August 2025                 PT XLSMART Telecom
Category through a community-            IDX Channel            Eka Tjipta Foundation                 Sejahtera
 based CSR programme, under          Anugerah ESG 2025                Detikcom                     Fostered MSME
   one of the Company’s CSR                                                                   Food Category for MSME
 pillars in the education sector,                                                                      Cavatoz
     Teman Pintar Indonesia.
                                                                                                  Fostered MSME
  Silver Award in the Fostered                                                              MSME Digitalisation Category
 MSME Category, awarded to                                                                  for MSME Dapur Kriyakriyuk
     Ducrija, led by Ms. Anik
Purwanti from the Teman MSME
       Sragen community




 Sustainable Solution Award         Women In Tech Award          Top Leader Warrior         The Most Caring & Creative
        October 2025                    October 2025                October 2025             Company in Telco & Utility
    Sinar Mas Digital Day              Change Maker             Sustainability Warrior               Industry
                                    Sinar Mas Digital Day          MIX Marcomm                    October 2025
                                                                                                 MIX Marcomm




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                                                                                Connecting Indonesia:
                                                                              One Purpose - One Planet




CERTIFICATIONS

                                 Certificates                          Validity                   Issuers


          ISO 9001:2015 Quality Management System
                                                                  5 January 2027       British Standards Institute
          (Recertification)




          ISO 20000-1:2018 IT Service Management System
                                                                  14 January 2027      British Standards Institute
          (Recertification)




                                                                  1 Year (April
          Sustainalytics (Medium Risk score at 27.8)                                   Morningstar Sustainalytics
                                                                  2024-April 2025)




          ISO 14001:2015 Environmental Management System
                                                                  1 September 2025     British Standards Institute
          (Surveillance)




          ISO 45001:2018 Occupational Health and Safety
                                                                  1 September 2025     British Standards Institute
          Management System (Surveillance)




          ISO 27001:2013 Information Security Management System
                                                                  25 November 2026     British Standards Institute
          (Recertification)



                                                                  December 2026        Ministry of Manpower
          Occupational Health and Safety Management System


                                                                  September 2025       Eni Muara Bakau
          Contractor Safety Management System High Risk Project


                                                                  30 August 2025       National Professional
          Business Continuity Management Professional
                                                                                       Certification Agency


                                                                  30 August 2025       National Professional
          Certified Risk Management Practices
                                                                                       Certification Agency



                                                                  1 Year (April
          Sustainalytics (Medium Risk score at 28.3)                                   Morningstar Sustainalytics
                                                                  2024-April 2025)




          ISO 27001:2022 Information Security Management System 31 December 2025       TUV Rheinland




                                                                               2025 Sustainability Report            17
Page 20
         Sustainability
         Performance Highlights




2025 Sustainability Event Highlights

     Environment
                                              August & October 2025
                                              Sustainability Week

                                              XLSMART organised the EcoFusion Sustainability Week to promote sustainable
                                              lifestyle practices among employees. The programme featured various activities
                                              including upcycling workshops, sustainability talks, eco-friendly product bazaars,
                                              and digital engagement challenges focused on sustainable fashion and responsible
                                              textile waste management.

                                              Through the initiative, more than 400 pieces of clothing weighing approximately 120
                                              kg were diverted from potential textile waste through upcycling and reuse activities.
                                              Around 300 employees participated in the programme, helping raise awareness of
                                              sustainable lifestyle practices and environmental responsibility within the
                                              organisation.

                                              11 October 2025
                                              Zero Waste to Landfill-Axis Nation Cup 2025

                                              XLSMART implemented a Zero Waste to Landfill approach during the AXIS Nation
                                              Cup 2025 event. During the event, approximately 4,200 kilograms of waste were
                                              collected and managed through sustainable waste processing schemes. Around
                                              34.8% of the waste was recycled, 7.32% was composted, and 57.87% was converted
                                              into Refuse-Derived Fuel (RDF) as an alternative energy source. Through this initiative,
                                              the programme successfully prevented approximately 3,839 kg CO₂e emissions while
                                              also promoting environmental awareness among participants and spectators of the
                                              event.



                                              Monthly
                                              Waste Management Race

                                              The Waste Management Race program is a competition that encourages active
                                              participation in the proper and responsible sorting of organic, inorganic, and plastic
                                              waste. This initiative aims to raise awareness and foster good habits among
                                              employees in managing waste at the source, while creating a positive impact on the
                                              environment through measurable and sustainable collective action.




     Social
XLSMART PESANTREN DIGITAL
Throughout 2025, XLSMART has strengthened its commitment to promoting digital
literacy through the Digital Pesantren CSR program. This program aims to enhance
the ability of students and teachers to utilize technology and expand access to digital
learning within the pesantren environment. Through training and mentoring, this
program has reached 1,340 beneficiaries in Lombok, Aceh, Padang, Pasuruan,
Demak, and Denpasar (Bali). This initiative has had a significant impact on improving
digital skills, creating more adaptive learning environments, and opening up
opportunities for personal development in the digital age. Through Digital Pesantren,
XLSMART continues to contribute to building a generation that is better prepared and
empowered for the future.
12 November 2025                              18 November 2025                              26 November 2025
Pesantren Digital                             Pesantren Digital                             Pesantren Digital
Lombok                                        Aceh City                                     Padang City
3 December 2025                               10 December 2025                              18 December 2025
Pesantren Digital                             Pesantren Digital                             Pesantren Digital
Pasuruan City                                 Demak                                         Denpasar

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                                                                                           Connecting Indonesia:
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Sisternet
Throughout 2025, Sisternet continues to strengthen its commitment to empowering
Indonesian women through various strategic initiatives, including SheInspire, the
Sisternet Festival, the W20 Summit, Smart Webinars, the Smart Capital Competition,
and the national #1JutaSisterDigital campaign. Through the Sisternet app and a
series of offline and online educational classes, these programs have reached more
than 1.3 million beneficiaries in 21 cities across Indonesia, with support from 41
strategic partners, including the Indonesian Ministry of Women’s Empowerment and
Child Protection (PPPA) and the Ministry of Communication and Digital (Komdigi).
This cross-sector collaboration is key to expanding access to digital literacy, skills
development, and economic opportunities for women, while fostering a more
inclusive and sustainable ecosystem.
25 July 2025                                 17-18 October 2025                          25 October 2025
Sisternet SheInspire,                        Sisternet Festival 2025                     Webinar Pintar Sisternet
Class III Women’s Prison                     XLSMART Tower, Jakarta                      Online, Via Zoom
Mataram, Lombok
13 November 2025                             27 November 2025                            11 December 2025
Webinar Pintar Sisternet #1                  Webinar Pintar Sisternet #2                 Webinar Pintar Sisternet
Online, Via Zoom                             Online, Via Zoom                            Online, Via Zoom
14 December 2025                             18-19 December 2025
Sisternet’s Padel Day 2025                   Sisternet SheInspire
Centercourt Club Permata          Hijau,     Bapas Kelas I Denpasar, Bali
Jakarta


XLSMART PEDULI DISABILITAS
In 2025, XLSMART launched the “Peduli Disabilitas Berdaya” CSR program to
promote independence and skill development among people with disabilities,
enabling them to actively participate in social and economic life. This program is
conducted both offline and online and has reached 443 beneficiaries in Batam,
Semarang, Bengkulu, and Kediri. Through training and mentoring, participants are
equipped with practical skills to develop their potential. This initiative has had a
positive impact on boosting self-confidence, creating economic opportunities, and
fostering a more inclusive environment.


10 September 2025                            18 September 2025                           26 September 2025
XLSMART Peduli Disabilitas                   XLSMART Peduli Disabilitas                  XLSMART Peduli Disabilitas
Online, Nationwide                           Online, Nationwide                          Semarang
7 October 2025                               22 October 2025                             29 October 2025
XLSMART Peduli Disabilitas                   XLSMART Peduli Disabilitas                  XLSMART Peduli Disabilitas
Bengkulu                                     Kediri                                      Online, Nationwide

XLSMART PEDULI BENCANA
Throughout 2025, the XLSMART Disaster Relief Program has provided assistance to a
total of 4,436 beneficiaries across various flood-affected regions in Indonesia,
including Bali, West Lampung, Sukabumi, Tapanuli, West Sumatra, Aceh, and
surrounding areas. This initiative reflects the company’s commitment to responding
to emergencies quickly and effectively, while supporting community recovery through
coordinated assistance across various affected locations.




January 2025                                 January 2025                                January 2025
XLSMART Peduli Bencana Banjir                XLSMART Peduli Bencana Erupsi               XLSMART Peduli Bencana Longsor
Lampung                                      Mount Halmahera                             Pekalongan
March 2025                                   September 2025                              September 2025
XLSMART Peduli Bencana Banjir                XLSMART Peduli Bencana Banjir               XLSMART Peduli Bencana Banjir
Bekasi                                       Denpasar                                    Lampung
September 2025                               October 2025                                December 2025
XLSMART Peduli Bencana Banjir                XLSMART Peduli Bencana Banjir               XLSMART Peduli Bencana Banjir
South Tapanuli                               Cisolok Sukabumi                            Mandailing Natal
December 2025
XLSMART Peduli Bencana Banjir
Padang Pariaman




                                                                                          2025 Sustainability Report      19
Page 22
         Sustainability
         Performance Highlights



                                             KELAS CERDAS DIGITAL
                                             Total Beneficiaries: 6,645

                                             This program focuses on improving the digital literacy and skills of the community,
                                             particularly students, as part of an effort to support inclusive and sustainable digital
                                             transformation across various regions.

                                             23 September 2025                             25 September 2025
                                             Kelas Cerdas Digital                          Kelas Cerdas Digital Ungaran
                                             Jakarta, SMK Strada 1 Jakarta                 SMK Kanisius Ungaran
30 September 2025                            28 October 2025                               12 December 2025
Kelas Cerdas Digital Bekasi                  Kelas Cerdas Digital Indramayu                Kelas Cerdas Digital Blitar
SMA Ananda Bekasi                            SMK Endang Ayu Darmaayu,                      SMK PGRI 2 Blitar
                                             Indramayu


BUNDA PINTAR
Total Beneficiaries: 2,035

Throughout 2025, the Bunda Pintar Program has benefited a total of 2,035
participants, focusing on empowering women by improving their literacy, skills, and
capacity to support family well-being. This initiative is part of a commitment to
promoting women’s active roles in the community and creating sustainable social
impact.



28 January 2025                              25 April 2025                                 26 April 2025
Bunda Pintar                                 Bunda Pintar, KB Mi’rojul Muta’alimin         Bunda Pintar
Miss Desi’s House, Tegal                     Tegalwangi, Tegal                             RM Limas Kembar, Boyolali
27 April 2025                                27 April 2025                                 28 April 2025
Bunda Pintar                                 Bunda Pintar                                  Bunda Pintar
Berjaya Café, Pontianak                      Balai Kelurahan Pajagalan, Sumenep            Betewe Café, Denpasar
28 April 2025                                30 April 2025
Bunda Pintar, Taman           Widawati       Bunda Pintar, Aula Kantor Kelurahan
Gondang, Tulungagung                         Sukamulya, Bandung

TEMAN PINTAR
Total Beneficiaries: 16,013

Throughout 2025, the Bunda Pintar Program has benefited a total of
16,013beneficiaries, with a focus on empowering women through the enhancement of
literacy, skills, and capacity to support family welfare. During the year, the program
also conducted a total of 95 activities/events across various regions. This initiative
forms part of the commitment to promoting the active role of women in communities
and creating sustainable social impact.


15 January 2025                              25 January 2025                               26 January 2025
Teman Pintar                                 Teman Pintar                                  Teman Pintar
Budi Luhur University                        Batik Laweyan Village                         Gallery Smartfren Jember

TEMAN UMKM
Total Beneficiaries: 6,645

Throughout 2025, the Teman Pintar Program has benefited a total of 16,013
beneficiaries. As a large-scale digital literacy outreach programme implemented
across schools, universities, and community spaces, the initiative promotes
responsible internet use, strengthens digital awareness, and encourages students
and young communities to develop productive digital competencies.

7 March 2025
Teman UMKM
PLUT KUMKM




20         PT XLSMART Telecom Sejahtera Tbk
Page 23
                                                                                                Connecting Indonesia:
                                                                                              One Purpose - One Planet



TEMAN KREASI
Total Beneficiaries: 10,297

The Content Creator Academy program is designed to develop the digital skills of the
younger generation in the field of creative content creation. With a total of 10,297
beneficiaries, the program provides training and mentoring to enhance participants’
storytelling, content production, and digital platform utilization skills, enabling them to
adapt and remain competitive in the creative economy era.



15 March 2025                                   18 March 2025                                 19 March 2025
Teman Kreasi                                    Teman Kreasi                                  Teman Kreasi
Celebes Kearifan Madani                         Ponpes Al-Mu’awanah                           Ponpes Al Hikmah Cilacap


21 March 2025
Teman Kreasi
Kampus STAI Muhammadiah

SPECIAL EVENTS
Special Events consist of strategic engagements and flagship activities that
complement the Company’s community initiatives. These events include participation
in global forums and collaborative programmes that broaden outreach, strengthen
partnerships, and support wider social and sustainability dialogues.



17 November 2025                                6 December 2025
W20 Summit, Johannesburg,                       BersalingSilang, NuArt Space,
South Africa                                    Bandung




  Governance




25 July 2025                                    25 October 2025

Training Data Privacy for Customer              XLSMART successfully maintained its
Relationship Representative (CRR) of            ISO     27701     Privacy     Information
XL Center and Smartfren Gallery.                Management           System        (PIMS)
                                                certification from the British Standards
                                                Institution (BSI), demonstrating the
                                                Company’s continued commitment to
                                                strengthening data privacy governance
                                                and protecting customer information.




                                                                                               2025 Sustainability Report   21
Page 24

          
Page 25
       Message from
the Board of Directors
Page 26
          Message from
          the Board of Directors




"The Company kept its
focus firmly on improving
the offer to our customers:
delivering a more
personalized, competitively
priced, and better value
offer while driving cost
efficiency and enhanced
network performance."




                                          RAJEEV SETHI
                                          President Director

24   PTPT
        XLSMART
          XLSMART
                Telecom
                  Telecom
                        Sejahtera
                          Sejahtera
                                  Tbk
                                    Tbk
Page 27
                                                                                  Connecting Indonesia:
                                                                                One Purpose - One Planet




Message from
the Board of Directors
Dear esteemed stakeholders,                                STRATEGIES TO ADDRESS                 SUSTAINABILITY
                                                           CHALLENGES [D.1.A]
The 2025 reporting year represents a pivotal chapter
in the journey of XLSMART, marked by transformation,       Through the strategic formation of XLSMART, the
purpose-led direction, and a strengthened commitment       telecommunications industry shifted from 4 (four) main
to sustainable value creation. As global environmental     operators to 3 (three), a change that is expected to
and social challenges continue to intensify,               drive the industry towards a healthier market. In recent
sustainability is no longer viewed as a supplementary      years, the mobile industry has been facing a decline
initiative; it has become central to how the Company       due to price wars and aggressive customer acquisition
defines strategic success, manages risk, and delivers      strategies, which have diluted value and dampened
meaningful outcomes for society. XLSMART embraces          growth.
this imperative not as an obligation, but as an integral
part of its identity and approach to long-term value       The integration of two very different entities introduced
creation for all stakeholders.                             a complex set of sustainability-related challenges.
                                                           Timely integration of networks, cultures, brands,
This transformation was anchored by a significant          systems, and processes is critical to managing
milestone. On 17 April 2025, XLSMART officially            customer experience disruption and subscriber churn.
commenced operations, bringing together the                These extended beyond operational integration to
networks, resources, brands, and organisational            include the harmonisation of governance standards,
cultures of XL Axiata, PT Smartfren Telecom Tbk, and       alignment of environmental and social commitments,
PT Smart Telecom into a single, unified organization.      responsible management of cultural transition, and the
The merger combined complementary strengths in             maintenance of business continuity amid heightened
scale, spectrum, talent, and technological capability,     stakeholder expectations.
establishing a stronger and future-ready platform
to support Indonesia’s digital and sustainable             In addition to establishing very close monitoring and
development.                                               evaluation with dedicated war rooms to manage key
                                                           tracks of the integration processes, regular reviews
XLSMART’s approach to sustainability is grounded in        were held with key business partners pivotal to
the consistent application of Environmental, Social,       XLSMART’s National Roaming (NR) and Multi-Operator
and Governance (ESG) principles across strategy,           Core Network (MOCN) Implementation plans. This
operations, and corporate culture. Sustainability          has delivered synergy realizations ahead of plan. The
considerations inform how the Company allocates            Company recognises that the manner in which these
capital, deploys technology, governs risk, and engages     challenges are addressed will materially influence
with stakeholders. This integration reflects the           XLSMART’s long-term resilience and credibility.
Company’s conviction that long-term value creation
is inseparable from responsible governance, social         Following the merger, XLSMART undertook a
inclusion, and sound environmental stewardship.            reassessment of its sustainability priorities by
                                                           integrating the Double Materiality Assessment
                                                           outcomes of the legacy entities with emerging risks
                                                           and opportunities arising from the expanded business
                                                           model. This process enabled the Company to sharpen
                                                           its focus on sustainability topics most relevant to
                                                           long-term value creation, including Community
                                                           Development, Best Place to Work, Customer
                                                           Engagement, GHG Emissions, as well as Data Privacy
                                                           and Security.




                                                                                 2025 Sustainability Report      25
Page 28
                Message from
                the Board of Directors




These priority areas guide how XLSMART identifies           KEY SUSTAINABILITY ACHIEVEMENTS [D.1.B]
sustainability-related   risks,    captures strategic
opportunities, and allocates resources within               Throughout the reporting period, XLSMART continued
an environment shaped by rapid technological                to integrate sustainability considerations into its
advancement, climate transition pressures, and              strategic and operational activities amid a dynamic
evolving regulatory and societal expectations.              macroeconomic and industry environment. Despite the
Sustainability considerations are embedded into             complexity of the integration process, the Company
strategic planning and decision-making processes,           remained focused on maintaining service quality,
ensuring that near-term business objectives remain          strengthening financial discipline, and preserving
aligned with long-term resilience.                          customer trust, while laying a solid foundation for
                                                            sustainable growth.
To translate these priorities into action, XLSMART
organises its sustainability initiatives around strategic   During the first year following the merger, XLSMART
pillars that guide value creation, human capital            prioritised operational stabilisation while embedding
development, operational excellence, as well as             sustainability considerations into business execution.
environmental and social responsibility. This framework     This period was characterised by disciplined
supports responsible growth by aligning business            integration, prudent financial management, and
performance with national development objectives            targeted investments aimed at strengthening long-
and global sustainability aspirations, while remaining      term resilience amid macroeconomic volatility and
responsive to stakeholder expectations. It also enables     an increasingly competitive telecommunications
the Company to balance short-term performance               landscape.
with long-term resilience in a disciplined and forward-
looking manner.                                             Financial Resilience and Economic Sustainability
                                                            Despite the complexity of the integration, XLSMART
To strengthen the Company’s response to increasingly        has passed most of its Year-1 merger milestones. Cost
complex sustainability challenges, in 2025 the              optimization and asset utilization are on track, the
Company encouraged employees across key functions           customer base stabilized faster than expected, and
to participate in structured learning through the United    we are now beginning to see revenue synergies as a
Nations Global Compact Academy. The Academy offers          result of the market reparation and enhanced customer
comprehensive courses covering among others anti-           experience yielded by improvements in network quality
corruption, business integrity, human rights, climate       and coverage.
and environmental stewardship, SDG integration
and financing, sustainability regulations, and              Post XLSMART merger, ARPU recovery was the primary
transformational governance. Through this initiative,       growth driver. Q4 2025 sees ARPU hikes along with
we are enhancing internal capability to anticipate          traffic growth which has been driving Industry Revenue
regulatory developments, manage sustainability              uplift. This signal early indicator of price repair taking
risks, and embed responsible business practices into        hold, which should support margin recovery and
strategic and operational decision-making. The number       improved monetization of rising data volumes for the
of employees who joined and completed courses under         remainder of the year.
this programme in 2025 were 51 employees.
                                                            Our merger strategy has been validated convincingly
The Company also regularly collaborates with                by our results. By the end of 2025, we had achieved
regulators, authorities, and key stakeholders, including    our synergy target of US$250 million, achieving early
industry peers, to shape policies and regulations aimed     savings from site rationalisation optimising capex, and
at protecting consumer rights while ensuring a fair and     maintaining a healthy balance sheet. All of which were
sustainable industry. Such collaboration is essential for   supported by robust governance. We are now on track
enabling industry players to deliver the best possible      to deliver total synergies of US$250-300 million upon
services to customers.                                      completion of the integration.




26        PT XLSMART Telecom Sejahtera Tbk
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                                                                                 Connecting Indonesia:
                                                                               One Purpose - One Planet




Throughout 2025, the Company delivered solid               The merger also positions XLSMART as the only
operational performance as a unified post-merger           operator running three distinct brands; XL, AXIS, and
entity. Revenue reached Rp42,485 billion, reflecting       Smartfren. Each brand targets a specific segment with
expanded scale, stronger data monetisation, and            its own strengths and value proposition, strengthening
improved service portfolio integration. Normalized         our ability to reach and penetrate a broader customer
EBITDA amounted to Rp20.1 trillion, demonstrating          base. Particularly in Smartfren, expanded coverage
resilient operating fundamentals and disciplined cost      has enabled customers to be more connected across
management during the integration phase.                   Indonesia.

The strengthened financial foundation translated into      Network rationalisation was executed with structured
broader economic contribution. Total direct economic       environmental controls. Site dismantling activities
value generated reached Rp41,432,011 million. This         were accompanied by responsible decommissioning
value was channelled back into the economy through         practices and strengthened waste handling procedures
strategic reinvestment in infrastructure expansion,        to minimise environmental impact and ensure
workforce remuneration, operational ecosystem              regulatory compliance. These measures supported both
support, financial obligations, and shareholder returns.   operational efficiency and environmental stewardship.

Economic value distribution totalled Rp42,924,235          The launch of XL Ultra 5G+ in Bali in December
million during the year. Capital was prioritised toward    represented an early milestone in the Company’s next-
network modernisation and nationwide expansion             generation connectivity roadmap. Beyond enhancing
to enhance long-term competitiveness and service           consumer experience, 5G capability is expected to
reliability. The Company also ensured sustained            support advanced use cases across entertainment,
investment in human capital through salaries and           enterprise solutions, Internet of Things, and digital
employee benefits, while maintaining operational           innovation, contributing to long-term economic and
excellence through interconnection and core operating      social value.
expenditures. Financial discipline was reflected in
responsible capital servicing and fulfilment of tax        Digital Transformation, IT Integration, and
obligations to the Government.                             Governance
                                                           Post-merger, XLSMART advanced a unified IT
As part of its commitment to delivering shareholder        transformation agenda anchored in an AI-ready
value, the Company distributed cash dividends              architecture. The rationalisation of legacy systems and
amounting to Rp4.01 trillion during 2025. This             optimisation of cloud usage reduced duplication and
distribution underscores management’s confidence in        lowered maintenance intensity, contributing to improved
the Company’s long-term fundamentals and capital           cost efficiency and strengthened governance. These
allocation discipline during the post-merger integration   initiatives enhanced data integration across finance,
period.                                                    sales, marketing, and analytics functions, supporting
                                                           faster and more informed decision-making.
Network Transformation          and    Infrastructure
Efficiency                                                 As digital engagement expanded, governance
Network integration and optimisation remained              frameworks were reinforced to address cybersecurity,
central to sustainability performance. During the year,    data protection, and responsible technology
the Company consolidated more than 50,000 sites,           deployment. The Company achieved ISO 27701:2019
enabling significant improvements in network efficiency    Privacy Information Management System certification,
and coverage. The combination of spectrum assets           reflecting strengthened data privacy governance,
from the legacy entities increased overall network         alongside continued implementation of enterprise risk
capacity by approximately three times, strengthening       management and business continuity controls.
nationwide service reliability across mobile, home, and
enterprise segments. With this, we are well-positioned
to deliver leadership in network through larger coverage
and better customer experience for our customers.




                                                                                2025 Sustainability Report     27
Page 30
                Message from
                the Board of Directors




Customer Experience and Market Sustainability                cloud-based systems to minimize printing requirements
Customer sustainability outcomes were reflected in           and the physical distribution of documents, further
improvements across service quality, engagement,             reducing its environmental footprint. Also, the Company
and trust. The mobile subscriber base grew 36% YoY           has advanced its energy transition through the purchase
across XL, Axis, and Smartfren brand, or reached             of 3,000 Renewable Energy Certificates (RECs) from
73 million, supported by an improved Average Revenue         PLN as part of its commitment to supporting the use
Per User of approximately Rp45,000, representing             of clean energy, in line with its long-term target of
a 26% year-on-year increase. In parallel, sustained          achieving net-zero emissions by 2050.
focus on customer experience contributed to a notable
improvement in Net Promoter Score (NPS), which was           Waste management initiatives were reinforced
recorded at an increase of 21% in 2025.                      through structured programs aimed at reducing landfill
                                                             dependency, supported by internal engagement
The Company’s digital acceleration strategy also             campaigns to promote responsible behaviour across
delivered measurable results. Increased engagement           operations. In 2025, a significant contributor to waste
with digital platforms, including MyXL, AXISNet, and         volumes was the large-scale dismantling of redundant
mySmartfren, drove strong user growth. By the end            BTS sites following network integration. To mitigate
of the year, MyXL recorded over 41.4 million active          associated risks, the Company implemented controlled
users, representing a 28.6% year-on-year increased           dismantling protocol supported by internationally
compared to 32.2 million users reported last year.           certified vendors specialising in telecommunications
Higher digital engagement provides deeper insights           equipment decommissioning and e-waste recovery.
into customer preferences and behaviour, enabling            These vendors operate under ISO 14001 and ISO
enhanced monetisation opportunities through cross-           45001 standards and provide full traceability for both
selling and upselling.                                       hazardous and non-hazardous waste streams, from site
                                                             removal through transport and final processing. High-
Environmental Stewardship and Climate Action                 value components that remain reusable are extracted
XLSMART is committed to accelerating carbon neutrality       for refurbishment, while non-recoverable materials
through environmentally responsible, sustainable digital     are channelled to licensed recycling facilities to prevent
innovation, and integrates environmental stewardship,        improper disposal and environmental leakage.
social progress, and strong governance into every
step of its journey. The Company has implemented             Overall, the consolidated environmental expenditure
emissions reduction initiatives through the digitalization   for 2025 increased significantly to Rp560,362,896
of network infrastructure, including the replacement         compared with Rp86,203,200 in 2024. While
of conventional shelters with outdoor cabinets that          expenditure data from legacy entities provide useful
eliminate the need for air conditioning. This initiative     historical reference, XLSMART will establish a
has resulted in total carbon emissions of 992,258.79         consolidated baseline for environmental expenditure
TonCO2e across Scope 1, Scope 2, and Scope 3. During         commencing in 2025 to more accurately reflect
the year, the Company established a consolidated             the scale, integration status, and operational
carbon emissions baseline, including relevant Scope 3        characteristics of the merged entity going forward.
categories, providing a foundation for consistent post-
merger measurement and decision-making.                      Social Impact and Human Capital Development
                                                             Social sustainability remained a core element of
XLSMART has also adopted drone technology for                XLSMART’s commitment to inclusive growth and
aerial surveys and safety inspections, reducing reliance     shared value creation. Throughout the reporting year,
on conventional operational vehicles that generate           the Company continued to expand access to digital
fuel-related emissions. In parallel, the Company is          opportunities and economic empowerment through
progressively digitalizing services and integrating          a range of community-based initiatives, reaching
                                                             approximately 1.4 million beneficiaries across various
                                                             regions of Indonesia.




28        PT XLSMART Telecom Sejahtera Tbk
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                                                                                   Connecting Indonesia:
                                                                                 One Purpose - One Planet




In 2025, XLSMART introduced a flagship corporate             Clear communication and transparency were critical
social responsibility initiative, XLSMART CSR Tri Karsa,     components of the integration process. From the
designed as an integrated framework encompassing             outset, the Company adopted a “preserve and
three strategic priorities: Philanthropy, Women              grow” approach to its people across both legacy
Empowerment, and Education. This framework reflects          organisations, fostering collaboration and cross-
the Company’s long-term approach to social impact,           learning as the new operating model evolved. Building
focusing on addressing immediate community needs             trust and supporting employees well-being remained
while strengthening capabilities that support economic       a priority, supported through structured two-way
participation and social resilience. Total CSR funds         communication platforms such as the iCARE Employee
disbursed during the year amounted to Rp28.10 billion.       Helpdesk, the FriYay program, Leader Forums, and
As a result, the calculated Social Return on Investment      iCARE4U, alongside regular direct dialogue between
(SROI) ratio reached 1 : 2.54, indicating that each Rupiah   management and employees across directorate and
invested generated Rp2.54 Rupiah in social value.            regions.

In parallel, culture and collaboration were central to       Governance and External Recognition
the Company’s efforts to unify people, behaviors, and        The Company prioritized transparency and regulatory
mindsets under a single purpose following the merger.        compliance throughout the integration process,
To support this transition, XLSMART defined its North        supported by continuous engagement with internal and
Star as becoming Indonesia’s most engaged and high-          external auditors and, where necessary, the regulator.
performing telecom workforce, one in which every             Key post-merger focus areas included strengthening
individual drives impact, learns continuously, and           governance around the adoption, implementation
thrives within a culture of ownership, feedback, and         and testing of our Company’s AI architecture, as well
continuous improvement.                                      as enhancing cybersecurity and data governance
                                                             frameworks to safeguard customer information amid
XLSMART is also fostering a new culture, i-CARE,             increasing digital engagement.
embedding Integrity and Customer-centricity as the
core to achieving the Company’s vision. This culture         In line with the integration of our Double Materiality
fosters a collaborative, growth-minded environment           Assessment results into our strategic priorities, ESG
and has supported the seamless blending of the 2             is firmly embedded within the Company’s integration
(two) legacy organizations, accelerating employee            strategy. During the first year following the merger,
productivity post-merger period.                             XLSMART focused on ESG data integration, policy
                                                             harmonisation, and reinforcing ESG accountability
Engagement and ownership were key enablers in                across procurement, technology, and operational
advancing this objective. The Company gathered input         functions. These efforts support compliance with
from employees across both legacy entities on the            applicable global standards and contribute to the
cultures and practices they valued most and integrated       Company’s ambition to establish itself as a benchmark
these insights into a collective vision of becoming          for digital sustainability in Indonesia.
Indonesia’s best place to work by 2027. This vision
empowers employees to act with an ownership mindset          In terms of external recognition, XL Axiata achieved a
and full accountability for outcomes, while enabling the     CDP Climate Change score of “B”, placing the company
embedding of an agile, performance-driven culture,           above many regional peers. In 2024 and 2025, the
supported by harmonised performance management               newly merged XLSMART focused on harmonizing
system with clear KPIs across all levels. Complementing      methodologies and preparing a robust, unified dataset
these efforts, the Gear Up Program represents a              and internal ESG disclosures aligned with GRI and POJK
significant investment in reskilling and upskilling across   51.
a range of 5G, artificial intelligence, data analytics,
cyber security, and other digital competencies,
strengthening the Company’s competitiveness, agility,
and leadership within the digital ecosystem.




                                                                                 2025 Sustainability Report     29
Page 32
                Message from
                the Board of Directors




During this integration period, we continued our            To support these priorities, XLSMART is recalibrating
participation in global rating assessments, beginning       its investment portfolio toward areas with strong
with the S&P Global Corporate Sustainability                growth potential and clear sustainability relevance. Key
Assessment. In 2025, we achieved an improved S&P            focus areas include the expansion of fixed broadband,
Global CSA score of 43, an increase of 6 points from        the development of enterprise digital solutions, and
37, previously recorded under XL Axiata Legacy. This        readiness for next-generation connectivity. The
improvement reflects strengthened ESG performance,          advancement of 5G capabilities is viewed as a critical
enhanced policy alignment, and more integrated              enabler, supporting not only future revenue growth
governance and reporting practices under the new            but also productivity gains, innovation, and broader
XLSMART structure.                                          digital inclusion. With more than 26,000 active 5G
                                                            sites, complemented by strategic partnerships and
We also maintained participation in Sustainable             new product initiatives, the Company is well positioned
Fitch Ratings, while temporarily limiting submissions       to deliver a differentiated 5G experience for both
to selected agencies to safeguard data accuracy             consumer and enterprise customers.
and consistency throughout the transition. In 2025,
XLSMART obtained a rating of 2 from Sustainable Fitch       Across all business segments, XLSMART will continue
Ratings, where 1 represents the highest rating and 5 the    to leverage data and AI-driven analytics to deepen
lowest. This result underscores the robustness of our       customer engagement, enhance service relevance,
sustainability governance framework and the progress        and improve operational efficiency. At the same time,
made in embedding ESG management across the                 the Company recognises that the increased adoption
merged entity.                                              of advanced technologies requires heightened
                                                            responsibility.  Accordingly,   robust    governance
Starting next year, we plan to re-enter CDP with            frameworks for data protection, cybersecurity, and
complete XLSMART data and gradually expand                  the responsible deployment of artificial intelligence
participation in broader sustainability ratings to          are embedded as integral elements of the Company’s
benchmark performance at a global level. Collectively,      growth strategy.
these milestones demonstrate progress that extends
beyond metrics. They reflect the successful integration     Over the next three years, XLSMART will transition
of governance structures, systems, and a strengthened       from integration to acceleration, with a clear focus
data foundation required to support a scalable and          on initiatives that strengthen compliance, reduce
long-term Decarbonisation pathway under the new             environmental impact, and deepen our contribution to
entity.                                                     Indonesia’s digital inclusion agenda. In support of this
                                                            direction, the Company has defined three key targets.
STRATEGIES TO ACHIEVE THE TARGETS [D.1.C]
                                                            •   First, our Net Zero Roadmap baseline will be
Looking ahead, XLSMART remains committed to                     developed starting 2026 and aligned with
pursuing growth that is both profitable and sustainable         international best practices such as SBTi. This
as the foundation for long-term value creation.                 roadmap will define Decarbonisation pathways for
The Company’s strategic direction is guided by the              our network, data centers, supply chain (Scope 3),
imperative to translate post-merger scale into enhanced         and operations. It will include near-term science-
efficiency, operational resilience, and responsible             based targets, energy-efficiency commitments,
expansion. In this context, the Company has defined             renewable energy strategies, and supplier
three strategic initiatives: completing the integration         engagement programs.
and unlocking efficiency, accelerating revenue through
digital and enterprise-led opportunities, and reinforcing
financial resilience.




30        PT XLSMART Telecom Sejahtera Tbk
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                                                                                      Connecting Indonesia:
                                                                                    One Purpose - One Planet




•   Second, we will scale our Circular Economy and              CLOSING REMARKS
    e-Waste Management program across the merged
    network footprint. In connection with the rollout of        On behalf of the Board of Directors, we extend our
    approximately 30% of tower infrastructure over              sincere appreciation to all stakeholders for the trust
    the coming years, XLSMART is formalizing a unified          and partnership shown to XLSMART throughout this
    policy for e-waste disposal that fulfils Indonesia’s        transformative year. The establishment of XLSMART
    environmental and HSE regulations (including                has been made possible through the collective efforts
    B3 waste requirements). This includes vendor                of our customers, employees, partners, regulators,
    compliance (ISO 14001/45001), due-diligence                 and the communities we serve, providing a strong
    checks, and transparent end-to-end tracking of              foundation for the Company to move forward with
    waste, from collection to final recycling.                  clarity, resilience, and purpose.

•   Third, we are strengthening our community impact            Looking ahead, the Board remains confident in
    programs, including digital literacy for women and          XLSMART’s ability to navigate change with discipline
    youth, and initiatives under Sisternet and other            and integrity. Guided by sound governance and a
    flagship CSR platforms. These programs support              continued focus on responsible growth, the Company
    national priorities for digital inclusion and responsible   will further strengthen its foundations, enhance
    technology usage, while fostering employee                  customer experience, and contribute meaningfully
    involvement in sustainability and community                 to a more inclusive and resilient digital ecosystem in
    activities.                                                 Indonesia.

Finally, our priorities also include ESG data integration,      Sustainable value creation is built patiently through
policy alignment across the merged entity, advancing            trust, enduring partnerships, open dialogue, and a
Double Materiality Assessment results into Board-               shared commitment to outcomes that extend beyond
approved priorities, and embedding ESG accountability           short-term results. XLSMART welcomes continued
across procurement, technology, and operations. This            engagement with all stakeholders as we work together
ensures that XLSMART not only complies with POJK                to create value that is meaningful, responsible, and
51 and emerging global standards but also positions             enduring for society today and for future generations.
itself as a leading digital sustainability benchmark in
Indonesia.




                                                   With sincere regards,




                                                        Rajeev Sethi
                                                     President Director




                                                                                    2025 Sustainability Report      31
Page 34
                Message from
                the Board of Directors




Statement of Accountability
Statement of Accountability of 2025 Sustainability Report by
the Board of Commissioners and Board of Directors


We, the signatories, hereby stated that all information contained in the 2025 Sustainability Report of PT XLSMART
Telecom Sejahtera Tbk has been comprehensively presented and that we are fully accountable for the accuracy of
the content of PT XLSMART Telecom Sejahtera Tbk Sustainability Report.

This statement is made thruthfully.

                                                 Jakarta, 14 April 2026


                                         Board of Commissioners




                                                  M. Arsjad Rasjid P. M.
                                                 President Commissioner




            Vivek Sood                               Nik Rizal Kamil                            L. Krisnan Cahya
           Commissioner                              Commissioner                                Commissioner




                                David R. Dean                                 Sean Quek
                                Commissioner                                 Commissioner




     Willem Lucas Timmermans                      Retno Lestari P. Marsudi                      Robert Pakpahan
     Independent Commissioner                   Independent Commissioner                    Independent Commissioner




32        PT XLSMART Telecom Sejahtera Tbk
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                     Board of Directors




                          Rajeev Sethi
                        President Director




  Antony Susilo         Yessie D. Yosetya           Andrijanto Muljono
    Director                Director                     Director




  Feiruz Ikhwan          Merza Fachys             Shurish Subbramaniam
     Director              Director                       Director




David Arcelus Oses      Jeremiah Ratadhi             Sanjay Vaghasia
     Director               Director                     Director




                                             2025 Sustainability Report   33
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          Message from
          the Board of Directors




34   PT XLSMART Telecom Sejahtera Tbk
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              Framework
         for Accelerating
the Sustainability Journey




                    2025 Sustainability Report   35
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                      Framework for Accelerating
                      the Sustainability Journey




At XLSMART, sustainability is a core business discipline. It underpins how we build trust, manage risk, and deliver
reliable connectivity at scale. Our purpose – to connect every Indonesian for a better life - sets the strategic
direction, while our strategy ensures this purpose is translated into clear directions, robust systems, and measurable
performance.

Following the merger, our sustainability journey is designed to achieve three objectives. First, to protect business
continuity in a sector where network resilience, cybersecurity, and regulatory compliance are fundamental. Second,
to accelerate inclusive digital growth by improving access, affordability, and digital literacy. Third, to establish
credible climate and resource pathways that respond to investor expectations and evolving reporting standards.

Sustainability is not treated as a standalone agenda. It is embedded into how we prioritise network investments,
manage digital and operational risks, develop talent, and engage communities. Through this approach, sustainability
becomes a driver of long-term value creation for customers, employees, and the broader ecosystem.




Our Sustainability Strategy
[OJK A.1] [GRI 2-22] [GRI 2-23]


Our purpose goes beyond connectivity. By prioritising sustainable environments through green innovation and ESG
leadership, XLSMART empowers customers to enjoy a better, more responsible quality of life.

Our sustainability strategy is anchored in the principle of double materiality, reflecting two complementary
perspectives. The first considers how sustainability-related topics may give rise to the financial risks and opportunities
for XLSMART. The second assesses how our operations and value chain may generate impacts on people and the
environment.

This strategy has been developed to support a post-merger organisation. It integrates the legacy strengths of
XL Axiata and Smartfren, while establishing a unified sustainability direction for XLSMART. It also enhances the
Company’s preparedness for evolving sustainability disclosure expectations, including ISSB IFRS S1 and S2, and IAI
PSPK 1 and 2, which increasingly emphasise decision-useful, financially relevant sustainability information.

In practice, the strategy focuses on the sustainability topics that are most material to the business and stakeholders.
These priorities are translated into governance structures, targets, programmes, and performance tracking. This
ensures sustainability is managed with the same discipline as other strategic priorities.




Materiality Assessment [GRI 3-1]
In 2025, XLSMART refreshed its Double Materiality Assessment to reflect the post-merger structure and evolving
stakeholder expectations. The assessment was designed to ensure that sustainability priorities remain aligned with
the Company’s expanded operational footprint, regulatory developments, and investor expectations.

The review considered both impact materiality and financial materiality perspectives. It evaluated how XLSMART’s
activities affect society and the environment, as well as how sustainability-related risks and opportunities may
influence the Company’s financial performance, long-term resilience, and enterprise value.




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The process incorporated stakeholder engagement, peer benchmarking within the telecommunications sector, and
regulatory horizon scanning to ensure alignment with emerging disclosure standards, including ISSB IFRS S1 and S2
and relevant Indonesian sustainability frameworks. An independent external party supported the review to enhance
objectivity and methodological robustness.

Engagement involved representatives from investors, employees, customers, suppliers, business partners, and
relevant institutions. Internal validation was conducted with senior management and the Board of Directors to ensure
alignment with strategic priorities and governance oversight. The final material topics were reviewed and approved
by the Board of Directors in accordance with established governance procedures [GRI 2-14].




List of Material Topics [GRI 3-2]
The assessment confirmed that stakeholders place the highest priority on operational reliability and digital trust.
Network quality, availability, and reliability ranked as the most critical material topic. Cybersecurity, customer
engagement, and data security and privacy were also identified as high-priority areas.

People-related topics remain central in a post-merger organisation. Employment practices, employee wellbeing,
and talent development are critical to effective integration and sustained performance. Supply chain conduct also
emerged as a material priority, reflecting the operational complexity of the telecommunication sector. Environmental
topics are increasingly important from both impact and financial perspectives. Stakeholders highlighted greenhouse
gas (GHG) emissions, energy, as well as waste management and end-of-life management treatment as key areas
of focus.

The following list summarises the material topics identified through the stakeholder survey and internal assessment
process. The sequence of topics presented below does not represent a ranking of priority. Instead, it reflects the
consolidated list of material issues considered relevant to XLSMART’s business activities and sustainability impacts.

                                                  Prioritised Topics from Survey
Network quality, availability and reliability                    Supplier conduct and engagement
Cybersecurity                                                    Greenhouse gas (GHG) emissions, energy, decarbonisation
Customer engagement                                              Products and services that benefit society and the environment,
                                                                 innovation
Data security and privacy                                        Competitive behavior and an open internet
Employment practices, compensation and benefits                  Climate impacts and adaptation
Regulatory compliance                                            Responsible product design, labeling, and marketing
Digital inclusion, product accessibility and affordability       Community development
Health, safety and wellbeing                                     Diversity, inclusion, and equal opportunity
Talent development                                               Resource use and efficiency
Waste, product and end-of-life management, circular              Water usage
economy



MATERIAL TOPICS REFINEMENT AND BUSINESS-AS-USUAL (BAU) IDENTIFICATION

To enhance clarity, strengthen accountability, and avoid fragmented management, certain material topics were
refined and consolidated. Cybersecurity is managed as an embedded component of data security and privacy,
reflecting its role as a key control mechanism within the broader data protection framework. Community development
is addressed with diversity, inclusion, and equal opportunity embedded as core outcomes of the Company’s social
impact approach. Industry business-as-usual (BAU) topics remain disclosed as part of ongoing reporting, ensuring
continued transparency while enabling management focus on priority material issues.




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                          Framework for Accelerating
                          the Sustainability Journey




No.     Original Sub-topics                     Rationale for CombiningSub-topics                      Updated Topics
     1 Cybersecurity          • XLSMART has implemented digital data management system for • Data security &
       Data    security     &   customer and corporate information.                                    privacy
       privacy                • Cybersecurity programs directly support and enable data security • Cybersecurity
                                and privacy outcomes.                                                  embedded as a
                              • Data security and privacy governance covers digital and non-digital    sub-topic
                                data, information protection, data retention, behavioral controls, and
                                regulatory compliance (including social media governance).
     2 Community             Community development initiatives promote diversity, inclusion, and • Diversity, inclusion
       development           equal opportunity through:                                             and equal
       Diversity, inclusion, • Programs    targeting diverse and underserved communities, including opportunity
       and            equal    local communities, women, persons with disabilities, and other       embedded as
       opportunity             minority groups.                                                     outcomes
                             • Access-based initiatives supporting education, healthcare, and • Community
                               digital inclusion.                                                   development
                             • Inclusive program design involving stakeholders through community
                               needs assessment.
                             • Employment access initiatives promoting diversity, inclusion, and
                               equal opportunity in workforce practices
     3 Business-as-usual       Business-as-usual ESG topics for the telecommunications industry are • Business-as-usual
       ESG topics              identified, monitored, and disclosed as part of ongoing reporting to   (BAU)
                               ensure continuity and regulatory compliance.                         • Disclosed as ongoing
                                                                                                      topics


Aligning Prioritised Topics with XLSMART’s Value Creation Framework

        Creating Value for                                                                    Creating Value for
          Stakeholders                                    Purpose & Vision                      Stakeholders

                                                                                                   Shareholder
             Regulatory
                                                                                                   Commitment
             Mandate                                                                               Axiata
                                            XLSMART’s Guiding principles
 ESG-related Regulations and                                                             Net Zero Target (SBTi Approved)
                                                                        Vision            • Scope 1 and 2 reduction of 42%
 Priorities                                     Purpose
                                                                     Most Loved                by 2030 and 90% by 2050
                                            We connect every
                                                                 Indonesia Company        • Scope 3 emissions reduction of
 Komdigi                                    Indonesian for a
                                                                    by Customer in              25% by 2030 and 90% by
 Cybersecurity, data privacy and               better life
                                                                        2027                                         2050
 security, women empowerment,
 digital talent, customer
 services, product quality,
 e-waste

 Indonesia Net Zero by 2060
                                                          Tri Karsa
 Decarbonisation and GHG
 reporting mandate for
 publicly listed companies                 Operationalisation of Purpose & Vision
 (upcoming)                                       - Ongoing commitment

 POJK 51/2017
                                                                                 Education
 Sustainability reporting
                                                            Women             Gerakan Donasi
                                  Philanthropy          Empowerment           Kuota, Content
 Laws on Publicly
                                 Peduli Bencana,       Sisternet, Female     Creator Academy,
 Listed Companies
                                Peduli Kesehatan,       Future Leader,       Pesantren Digital,
 Ethics and
                                Peduli Disabilitas     SheInspire, Bunda       Kelas Cerdas
 compliance, CSR
                                                             Pintar            Digital, Teman
                                                                                   UMKM


                                     Refocusing Prioritised Topics from DMA




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STRATEGIC FOCUS AREAS

As a result of the assessment process, XLSMART consolidated its priorities into 5 (five) strategic focus areas. These
focus areas translate material topics into clear management intent and execution priorities. The focus areas presented
below are interconnected and carry equal strategic importance in guiding the Company’s sustainability approach.

            Focus Area                                                    Strategic Intent
Community Development              Strengthen local ecosystems through digital inclusion and access to education.
Best Place to Work                 Build a unified culture, enhance skills, and improve employee experience.
Customer Engagement                Elevate accessibility, affordability, and digital literacy to strengthen trust.
GHG Emissions                      Establish decarbonisation and energy-efficiency pathways.
Data Privacy & Security            Strengthen cybersecurity maturity and regulatory compliance readiness.




Sustainability Commitment of XLSMART
 [GRI 2-22] [GRI 2-24]


Sustainability at XLSMART is embedded into how                   Waste to Landfill practices at selected large-scale
we create value, manage risk, and sustain long-                  events demonstrates that sustainable operations must
term competitive advantage, while advancing our                  be measurable, operationally feasible, and extend
purpose to connect every Indonesian for a better life.           beyond office environments into broader ecosystem
Our approach integrates environmental stewardship,               engagement.
social empowerment, and strong governance as
interconnected pillars that reinforce operational                In the social dimension, XLSMART translates
resilience and enable inclusive growth. This integrated          digital connectivity into meaningful inclusion and
framework reflects our commitment to accelerating                empowerment. We invest in digital literacy and
the transition toward carbon neutrality in parallel with         capability-building programs designed to expand
responsible digital innovation.                                  access and opportunity across diverse communities.
                                                                 Through initiatives such as digital literacy workshops
In the environmental dimension, we recognise                     and partnerships that support students, micro, small,
the scale and reach of our telecommunications                    and medium enterprises (MSMEs), and underserved
operations and the climate challenges associated                 populations, we promoted more equitable participation
with energy-intensive infrastructure. XLSMART is                 in Indonesia’s digital economy.
committed to progressing toward net-zero emissions
by embedding environmentally responsible innovation              Our inclusion efforts extend to targeted programs that
into our business model. We strengthen operational               empower women, support people with disabilities,
efficiency across network and facility assets,                   and expand affordable digital access in frontier and
implement targeted energy-saving initiatives, and                rural areas. These initiatives contribute to narrowing
pursue scalable renewable energy solutions where                 the digital divide and fostering broader societal
feasible. Carbon emissions and energy consumption                participation in economic and social development,
are monitored systematically to inform investment                reinforcing our commitment to an inclusive and future-
decisions, operational priorities, and performance               ready digital ecosystem.
management. This disciplined approach aligns
environmental management with our broader net-                   In the governance dimension, XLSMART upholds
zero ambitions, supporting continuous improvement,               high standards of integrity, transparency, and
enhanced accountability, and responsible value chain             ethical conduct across all operations and business
engagement.                                                      relationships. We apply a zero-tolerance approach
                                                                 to bribery and corruption, ensure compliance with
Climate action is further reinforced through practical           applicable laws and regulations, and set clear
initiatives that integrate sustainability into day-to-day        expectations for third parties and suppliers regarding
operations. For example, the implementation of Zero              ethical conduct, labour standards, and responsible




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                      Framework for Accelerating
                      the Sustainability Journey




business practices. These expectations encompass               Collectively, these commitments support our strategic
respect for human and labour rights, including non-            priorities and respond to stakeholder expectations,
discriminatory practices and the prohibition of child and      while reinforcing how sustainability contributes to
forced labour throughout our supply chain. Governance          XLSMART’s long-term value creation. By integrating
effectiveness is reinforced through structured oversight,      environmental responsibility, social inclusion, and
continuous communication, capability development,              strong governance into everyday decision-making,
and accountability mechanisms to ensure sustainability         we enhance operational resilience, enable inclusive
principles are consistently understood, implemented,           growth, and contribute meaningfully to national
and monitored across the organisation.                         development objectives through credible and
                                                               measurable sustainability performance.




XLSMART’S ESG Roadmap
As a post-merger organisation, XLSMART is integrating          In 2026, XLSMART will undertake a baseline and
the ESG foundations of both legacy entities into a single,     re-baseline process for key ESG metrics, including
unified direction. The roadmap is being refined to ensure      climate-related indicators. While XL Axiata previously
that sustainability governance, programmes, and                established a baseline in 2022, the merger requires the
performance management remain consistent during                development of a refreshed, consolidated baseline that
the transition, while strengthening alignment with the         reflects the full operational footprint of XLSMART. This
Company’s updated Double Materiality Assessment                re-baseline will serve as the reference point for future
(DMA) and evolving disclosure expectations.                    target setting.

The five DMA focus areas provide a structured lens for         In 2027, the Company plans to finalise its roadmap
prioritisation and management oversight. In 2025, the          towards Net Zero Carbon by 2050, alongside the
Company focused on integrating ESG data, policies,             development of ESG KPIs and performance targets
and reporting practices from both legacy organisations         aligned with the consolidated baseline and DMA
to establish a consolidated foundation. As this is the         outcomes. This phased approach ensures that long-
first year of post-merger consolidation, emphasis is           term ambitions are supported by credible data,
placed on integration and comparability rather than            structured governance, and measurable performance
performance variance.                                          indicators.

                                                               During this transition phase, sustainability execution
                                                               is guided by three integration enablers that ensure
                                                               consistency across the merged organisation:




                                                                                            Good Corporate
          Environmental Care                      Social Responsibility                      Governance

      Digital innovation to support            Commitment to responsible                 Commitment to strong and
      XLSMART’s net-zero carbon                 digitalisation that creates           effective corporate governance
                 mission                          positive social impact




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These enablers support consistent execution and governance while the consolidated ESG roadmap and KPI
architecture are being formalised.

WHAT WE HAVE DONE FOR OUR HOMELAND

                              Received a Sustainable Fitch ESG Entity Rating of “2” with an ESG score of 67 for the 2025
  Sustainable Fitch ESG
                              performance. The rating reflects a good sustainability profile, supported by the
         Rating
                              environmentally and socially positive impact of fibre and 4G network services.


   Sustainability Week        Successfully diverted 120 kg of employee fashion waste into upcycled products in 2025,
        Program               transforming unused materials into meaningful solutions.


   Waste Management           A total of 31,219 tonnes of waste were diverted from landfill across XLSMART offices in
       Program                Kuningan, Sabang, and BSD, supporting more responsible daily operations


  Zero Waste to Landfill      Achieved 3,839 kg CO2e emission avoidance during the AXIS Nation Cup 2025, engaging
         Event                11,000 spectators in a collective zero-waste initiative.




Net Zero Carbon by 2050
XLSMART has set a long-term ambition to achieve Net Zero Carbon by 2050, in line with global climate objectives
and the decarbonisation pathway of the telecommunications sector. This commitment reflects our recognition that
climate change presents both physical and transition risks for a capital-intensive and energy-dependent business
such as ours, while also creating opportunities to improve operational efficiency, strengthen resilience, and align with
evolving investor and regulatory expectations.

The progress we have made toward achieving this ambition is supported by a structured approach to carbon
management, transparency, and external validation. In 2025, XLSMART received a “B” score from the Carbon
Disclosure Project (CDP) for the third consecutive year, demonstrating consistent performance in disclosure
and climate management practices.

As a merged entity, XLSMART will conduct a baseline and re-baseline process in 2026, taking into account the
legacy baseline established in 2022 and the expanded operational footprint following the merger. This consolidated
baseline will provide the foundation for finalising the roadmap towards Net Zero Carbon by 2050 and defining
supporting ESG targets and KPIs, which are planned to be completed in 2027.



Our Journey Towards Net Zero
Our decarbonisation journey has evolved progressively, marked by continuous emissions measurement, governance,
and strategic alignment with national and global climate initiatives.




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                Initiated the calculation of greenhouse gas emissions, covering direct operational activities and electricity
     2019
                consumption, as the first step toward establishing a comprehensive emissions baseline.
                Adopted ESG principles with reference to GSMA climate commitments, aligning the Company’s long-term
     2021
                direction with the sector’s ambition to achieve net zero emissions by 2050.
                Received recognition at the 2022 Corporate Emission Reduction and Calculation Transparency event, securing
     2022
                awards in both the Gold and Green categories.
                Advanced our climate management framework through several key milestones:
                · Joined the Kadin Net Zero Hub, as a platform for knowledge exchange, collaboration, and resource sharing to
                  support the development of a low-emissions ecosystem in Indonesia and the national Net Zero 2050 ambition.
                · Strengthened the Green Smart City ecosystem by deploying solutions based on Artificial Intelligence (AI),
                  Internet of Things (IoT), and Connectivity.
     2023       · Calculated Scope 3 carbon emissions for the first time, as an initial step toward defining emissions reduction
                  pathways beyond direct operations.
                · Submitted climate disclosures to CDP for the first time and achieved a “B” score, signalling a solid foundation
                  in climate governance and transparency.
                · Undertook external assurance of Scope 1 and Scope 2 greenhouse gas emissions and total energy consumption
                  for the 2023 and 2024 reporting years.
                Maintained a “B” score in CDP, demonstrating consistency in climate disclosure quality and management
     2024
                practices, supported by continued external assurance of Scope 1, Scope 2, and total energy consumption data.
                Received a Sustainable Fitch ESG Entity Rating of “2” with an entity score of 67 for the 2025 performance. The
     2025       assessment also acknowledged the Company’s climate-related disclosures, including greenhouse gas emissions
                and energy management practices, supporting continued progress in strengthening climate governance.




Initiatives For Sustainable Future
XLSMART’s decarbonisation commitment is translated into concrete actions, with a primary focus on reducing
emissions from electricity consumption, which represents the largest share of the Company’s carbon footprint.
Our transition strategy is anchored in three levers: improving energy efficiency across network and facility assets,
increasing the use of renewable energy, and engaging the value chain to support the development of a lower-carbon
ecosystem.

In the short to medium term, priority is given to Scope 2 emissions reduction through operational efficiency and
clean energy deployment. One of the key initiatives is the installation of solar photovoltaic systems at selected Base
Transceiver Station (BTS) sites, which directly reduces reliance on grid electricity and lowers operational emissions
intensity. By 2025, solar panels had been installed at 259 BTS locations across Indonesia, contributing to the
achievement of an emission intensity reduction target of 80 kg CO₂ per terabyte of data traffic.




     2025                                Target

                              Reduce emissions intensity to
                                                                                           Initiatives

                                                                                  Installation of solar panels at

                               80kg CO2/TB                                                 259
                                                                            locations Base Transceiver Station (BTS)
                                                                                       across Indonesia.
                               Status : Achieved above target


Beyond operational measures, XLSMART recognises that long-term decarbonisation cannot be achieved without
value-chain engagement. Towards 2030, the Company is strengthening collaboration with strategic suppliers
and partners, particularly high-spend vendors, to align emission reduction efforts, improve data transparency,
and encourage the adoption of low-carbon practices across the supply chain. This approach supports the gradual
extension of climate action from direct operations to upstream and downstream activities, in line with the Company’s
preparation for Scope 3 target setting.




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    2030                               Target

                             Reduce emissions intensity to
                                                                                    Initiatives

                                                                         Engage 100% of top
                                      45%                                    spenders
                                                                     including suppliers and partners to support
                                                                           the net zero emission ambition
                                  Status : Ongoing



These initiatives form part of a broader transition pathway that aligns with global climate goals and Indonesia’s
Net Zero 2060 agenda, while also responding to increasing investor and regulatory expectations for credible,
measurable, and verifiable climate action.




Strengthening the Culture of
Sustainability [OJK F.1] [GRI 2-24]
Sustainability     transformation      is  shaped       by    5. Accelerating the digitalisation of business processes
organisational culture, leadership commitment,                   to reduce resource intensity, improve operational
and active employee participation. Embedding                     efficiency, and support more sustainable ways of
sustainability into daily behaviour is essential to ensure       working.
that policies, targets, and operational standards are         6. Providing      structured       sustainability-related
consistently translated into measurable practices                training and learning programs to strengthen
across the Company.                                              employees’ understanding of ESG principles,
                                                                 climate responsibility, ethical conduct, and their
To enable this, XLSMART integrates sustainability                roles in supporting the Company’s sustainability
principles into day-to-day business activities and               commitments.
builds awareness among employees through multiple
channels, including:                                          XLSMART SUSTAINABILITY ACTIVITIES
1. Leveraging       internal   and    external      digital
    communication        channels     to    disseminate       XLSMART’s sustainability activities demonstrate the
    sustainability-related content, covering ESG topics,      Company’s commitment to embedding environmental
    climate action, and social impact, supported by           and social responsibility into daily operations and
    regular sustainability newsletters and thematic           organisational culture. Throughout 2025, these
    campaigns.                                                activities served as practical platforms to build
2. Organising Sustainability Talks through in-person          awareness, encourage behavioral change, and
    and hybrid forums featuring internal leaders and          reinforce employee ownership of the ESG agenda. Key
    external experts to discuss key sustainability issues,    initiatives during the year included:
    best practices, and emerging trends relevant to the       1. Waste Management Race, a monthly program
    telecommunications industry.                                   conducted across office to encourage improved
3. Implementing behavioural activation initiatives in              waste segregation and responsible disposal
    the workplace, such as recycling drop boxes on                 practices.
    office floors, sustainability education content on        2. Upcycling Workshop, creative sessions where
    internal platforms, periodic audio announcements               employees transform unused materials into
    on energy efficiency and emissions reduction, and              functional products while learning about waste
    visual ESG messaging through digital backgrounds               reduction and sustainable consumption.
    and office communication media.                           3. Employee Sustainability Engagement programs,
4. Launching internal sustainability campaigns that                collaborative activities that involve employees
    promote responsible resource use and low-impact                directly in sustainability initiatives and reinforce
    work practices, including digitalisation to reduce             shared ownership of the company’s ESG agenda.
    paper consumption, water-saving initiatives, and
    other environmental awareness programs.


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                     Framework for Accelerating
                     the Sustainability Journey




4. Sustainability Week Talk show, an interactive series     The same standards are applied beyond internal
   featuring internal and external speakers discussing      operations. The implementation of a Zero Waste to
   sustainability challenges, green innovation, and the     Landfill approach at the AXIS Nation Cup 2025, in
   role of employees in driving positive change.            collaboration with Waste4Change, demonstrates how
5. Sustainability     Week     Exhibition,    showcasing    internal sustainability discipline extends to large-scale
   environmental initiatives, eco-friendly innovations,     public events. Through systematic waste segregation,
   and the Company’s commitment to building more            recycling, composting, and conversion into Refuse-
   sustainable operations.                                  Derived Fuel, around 4,200 kilograms of waste were
6. Zero Waste to Landfill Implementation, applied           diverted from landfill, resulting in an estimated 3,839
   at selected large-scale events to strengthen             kg CO₂e in avoided emissions. This underscores that
   responsible waste management practices and               sustainability is treated as an operational requirement,
   minimise landfill impact.                                not merely an internal campaign.
7. Post-Merger E-Waste Management Programme,
   initiated to ensure responsible handling, segregation,   In addition, 2025 marked the initiation of a post-merger
   and environmentally sound disposal of electronic         electronic waste (e-waste) management programme,
   equipment and network-related assets across the          designed to ensure responsible handling, segregation,
   consolidated organisation.                               and disposal of electronic equipment and network-
                                                            related assets across the consolidated organisation.
These activities form a coherent pathway for                This programme strengthens lifecycle management
embedding sustainability into the way employees             practices and supports compliance with environmental
work and make decisions. They begin with awareness-         standards in line with the Company’s expanded
building, progress toward behavioral change, and are        operational footprint.
ultimately reflected in operational practices and event
executions.                                                 Creative platforms such as EcoFusion Sustainability
                                                            Week further strengthen this connection by linking
At the employee level, initiatives such as Sustainability   environmental issues to everyday contexts, including
Week, the Waste Management Race, and upcycling              fashion, lifestyle, and consumption. The diversion of
workshops function as learning and activation               approximately 120 kilograms of textile waste through
platforms. In 2025, Sustainability Week engaged             upcycling activities and the strong level of participation
hundreds of employees through talk shows, exhibitions,      reflect a shift from awareness to consistent practice.
and interactive sessions that combined knowledge-
sharing with practical action. Programs like the Waste      Through this progression, from awareness to culture,
Management Race and creative workshops encourage            XLSMART reinforces a shared understanding that
everyday practices such as waste segregation, resource      sustainability is integral to how employees take
efficiency, and responsible consumption, helping to         responsibility in their respective roles. What begins
transform sustainability from policy into habit.            as communication and engagement evolves into
                                                            daily habits and is reflected in operational execution.
As these behaviours become embedded, sustainability         This cultural foundation is critical to ensuring
principles are increasingly integrated into workplace       that XLSMART’s sustainability commitments are
systems and operational processes. This is reflected        consistently implemented and sustained over the long
in ongoing efforts to optimise energy use in data           term.
centres and network facilities, strengthen electronic
and operational waste management, and promote
environmentally responsible practices across offices
and business units.




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Contributions to the Sustainable
Development Goals (SDGs) [OJK F.25]
XLSMART aligns its sustainability programs with the United Nations Sustainable Development Goals (SDGs) as a
globally recognised reference framework. This alignment ensures that the Company’s digital expansion, social
investment, and community engagement initiatives contribute to inclusive growth, social resilience, and Indonesia’s
long-term national development priorities. Through this alignment, the SDGs provide an overarching structure that
connects XLSMART’s material sustainability priorities with global development objectives, reinforcing the relevance,
coherence, and impact of the Company’s sustainability strategy.

      Material Focus Area                           Strategic Relevance                               Aligned SDGs
Network quality, availability and Enabling inclusive digital infrastructure, economic
reliability                       participation, and service continuity across regions


Data security,   privacy    and Protecting digital rights, customer trust, and institutional
cybersecurity                   integrity in the digital economy


Digital inclusion, accessibility Expanding equitable access to education, information, and
and affordability                economic opportunity


Employment practices, talent Building future-ready human capital and inclusive, resilient
development,  health    and workplaces that support performance, engagement, and
wellbeing                    long-term organisational sustainability
GHG       emissions,      energy Supporting the transition to low-carbon operations and
efficiency and climate resilience climate-resilient infrastructure


Waste      management       and Reducing environmental footprint while strengthening
circular economy                resource efficiency across operations and the value chain


Community development and Strengthening social resilience through and inclusive
stakeholder engagement    collaboration and long-term development partnerships




                                                                                         2025 Sustainability Report   45
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          Message from
          the Board of Directors




46   PT XLSMART Telecom Sejahtera Tbk
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     Connecting Indonesia:
   One Purpose - One Planet




   About
XLSMART




   2025 Sustainability Report   47
Page 50
                                About
                                XLSMART




Corporate Information [GRI 2-1]

                  PT XLSMART Telecom                                   Deed of establishment No. 55 dated 6 October 1989, as
                  Sejahtera Tbk (formerly                              amended by Deed No. 79 dated 17 January 1991, both of
                  PT XL Axiata Tbk)                                    which were drawn up before Rachmat Santoso, S.H.,
     COMPANY                                               LEGAL       Notary in Jakarta, and have been ratified by the Minister of
      NAME        The name change                          STATUS      Justice of the Republic of Indonesia by virtue of his Decree
                  became effective as of 21                            No. C2-515. HT.01.01.TH.91 dated 19 February 1991, and
                  April 2025 following the                             registered in Company Register maintained by the Registry
                  completion of PT XL                                  Office of South Jakarta District court under No. 670/
                  Axiata Tbk’s merger with                             Not/1991/PN. JKT.SEL and No. 671/Not/1991/PN.JKT.SEL,
                  PT Smartfren Telecom                                 both dated 21 August 1991, and published in the State
                  Tbk and PT Smart                                     Gazette of the Republic of Indonesia No. 90 dated 8
                  Telecom on 17 April 2025.                            November 1991, Supplement No.4070.



                  Axiata Investment (Indonesia) Sdn. Bhd. is a subsidiary of the Axiata Group Berhad, the largest
                  telecommunications company in Asia, which also owns Celcom (Malaysia), Dialog (Sri Lanka),
                  Robi (Bangladesh), Smart (Cambodia), Ncell (Nepal), Idea (India), and M1 (Singapore).
       SHARE
     OWNERSHIP XLSMART’s Shareholding Percentage:
                                                                     33.19%                      34.691%
                      Axiata Investments (Indonesia) Sdn. Bhd
                      PT Bali Media Telekomunikasi
                      PT Wahana Inti Nusantara
                      PT Global Nusa Data
                      Public                                     4.663%
                                                                                                24.568%
                                                                      2.847%




                  EXCL
       TICKER                   SEGMENT
        CODE                     BRAND



                 XLSMART works closely with a diverse network                           XLSMART Tower
                 of vendors to ensure that the goods and                                Jl. H.R. Rasuna Said X5 Kavling 11-12
                 services supporting its operations are delivered                       East Kuningan, Setiabudi, South/Selatan
      SUPPLY     reliably and efficiently. The Company requires            ADDRESS      Jakarta, 12950 Indonesia
      CHAIN      all suppliers to uphold sustainability principles           [C.2]
     [GRI 2-6]   and responsible sourcing as outlined in its
                 procurement policy. Below is XLSMART’s top
                 three supply chains/vendors based on
                 purchase order value in 2025:
                                                                                        +622157959817
                 1. PT Huawei Tech Investment
                                                                              PHONE     +62215761880
                 2. PT Lintas Teknologi Indonesia
                 3. PT Nokia Solutions and Networks Indonesia                 NUMBER




                  corpsec@xlsmart.co.id                                                      @xlsmart              @xlsmart

       EMAIL
                                                                           MEDIA             @xlsmart              @xlsmart
                                                                           SOCIAL

                                                                                             @xlsmart
                  https://www.xlsmart.co.id/
      WEBSITE
                                                                                              PT XLSMART Telecom Sejahtera Tbk



48           PT XLSMART Telecom Sejahtera Tbk
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                                                                                 Connecting Indonesia:
                                                                               One Purpose - One Planet




Significant Changes in the Company
[C.6]


On 15 April 2025, PT XL Axiata Tbk (XL), PT Smartfren Telecom Tbk (SF), and PT Smart Telecom (ST) signed the
Merger Deed No. 33 dated 15 April 2025, where SF and ST agreed to merge with XL as the surviving company, and
therefore, SF and ST status cease to exist by operation of law (Merger).

As part of the Merger, there are several amendments in XL’s Articles of Association, including the change of name
of XL to PT XLSMART Telecom Sejahtera Tbk. These changes in the Articles of Association have become effective
with the obtainment of approval and/or notification receipt from the Minister of Law of the Republic of Indonesia
(MOL) as follows: (i) Decision of MOL on Approval of Amendments to the Articles of Association of the Company
No. AHU-0026805.AH.01.10.TAHUN 2025 dated 16 April 2025, (ii) Receipt of Notification of Amendments to the
Articles of Association of the Company by MOL No. AHU-AH.01.03-0102806 dated 16 April 2025, and (iii) Receipt
of Notification of Amendments to the Articles of Association of the Company by MOL No. AHU-AH.01.03-0104486
dated 17 April 2025.




                                                                               2025 Sustainability Report     49
Page 52
                         About
                         XLSMART




Purpose, Vission, and Core
Values [C.1]
As a newly unified entity, XLSMART is charting a path toward a more connected and sustainable
Indonesia. Drawing on the shared aspirations of its founding companies, the Company seeks to
enrich digital experiences while creating long-term value for customers, employees, society, and
the environment. Every step of XLSMART’s transformation is guided by excellence, inclusivity, and
innovation, thus ensuring that growth goes hand in hand with social and environmental responsibility.




PURPOSE
We connect every Indonesian for a better life

   The reason XLSMART exists is to be fully                       Vision and Purpose Review
   committed for Indonesians to live beyond                 The Board of Directors regularly reviews the
     through connectivity. With excellence                   Company’s Vision and Purpose to ensure
commitment, excellence innovation to products               their continued alignment with XLSMART’s
and services, we believe we are able to improve               current business conditions, strategic
 and empower the quality of life of individuals,              direction, and long-term sustainability
      communities, and social well-being.                                   objectives.




VISION
By 2027, to be Indonesia's Most Loved Company for our customers, the best place to
work for our people, and the most efficient service provider.



            01                                   02                                03
To be Indonesia’s most loved            Best place to work for our         At the same time, to be
company for our customers.            people where our employees          the most efficient service
 Being innovative and going               can thrive, grow, and         provider by being resourceful
above and beyond to deliver            perform in a supportive and        and driving for maximum
 the best experience for our          nurturing culture. By doing so,     growth and profitability to
customers, so that they love           attracting and retaining the     ensure business sustainability
us, trust us, choose for us, be                best talent.                     in the long run.
loyal to us, and recommend
    us to their loved ones.



50       PT XLSMART Telecom Sejahtera Tbk
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                                                                          One Purpose - One Planet




                  CORE VALUES

                                             Integrity
             Integrity is a non-negotiable foundational value. It’s a licence to play for
                                    participation in XLSMART.

           Strive to deeply
     understand customer
     needs through active
 listening and continuous
improvement, in order to                                                          Embrace diverse
  deliver the best possible                                                       perspectives, opinions,
        experience for our                                                        and feedback are
                customers.                                                        welcomed and valued,
                                                                                  enabling effective
                                                                e   r             collaboration to grow
                                                            o m
                                                          st t
                                                                                  and win together.
                                                       CuHear
                                                       at




                                        L ike                                    e    as
                                      t
                                    Ac ners                                   Rise
                                    Ow                                        On



      Responsibilities are
 carried out end-to-end
     to achieve excellent
 results, wholeheartedly
                                                                 very           A joyful work environment
                                                               E
                                                         joy
and efficiently to achieve                                                      is created by simplifying
   the best outcomes for                               n
                                                      E p                       complexities and building

                                                      Ste
               XLSMART.                                                         positive energy, while
                                                                                victories are consistently
                                                                                celebrating wins and
                                                                                learn from mistakes
                                                                                together.




                                                                           2025 Sustainability Report   51
Page 54
                            About
                            XLSMART




XLSMART at A Glance [C.1]

From Legacy to Leadership: The Journey to XLSMART
Our journey began more than three decades ago with          on the 1,800 MHz spectrum. The Company further
the establishment of PT Graha Metropolitan Lestari          strengthened its convergence leadership through
on 6 October 1989, marking our first commercial             certifications as Content Provider, Internet Service
venture as a trading and general services company.          Provider (ISP), Internet Interconnection Services,
In 1996, the Company made a strategic leap into the         VoIP, and Leased Line License, while also securing an
telecommunications sector after obtaining a GSM 900         Operational Eligibility Certificate (SKLO) that enabled
operating license, becoming Indonesia’s first private       the commercial deployment of 5G in August 2018.
cellular mobile operator to launch GSM services and
provide cellular mobile telephony services.                 As digital connectivity becomes the foundation of
                                                            progress, we continue to serve a pivotal role in enabling
An agreement between the Rajawali Group and three           people and businesses to thrive in the digital era. The
international investors (NyNEX, AIF, and Mitsui) brought    Company expands access to high-speed and reliable
new momentum to the Company’s growth, leading to            networks across the archipelago through continuous
a rebranding as PT Excelcomindo Pratama. Driving            investment in advanced technologies, including
further expansion, the Company reached a significant        4.9G (Massive MIMO), ensuring that communities
milestone in September 2005 by becoming a publicly          beyond Java have access to the same quality of digital
listed company through an Initial Public Offering (IPO)     experience as those in major cities.
on the Jakarta Stock Exchange (now the Indonesia
Stock Exchange/IDX).                                        Innovation remains at the heart of our growth. The
                                                            Company continues to strengthen its digital capabilities
At the time of the IPO, the Company was a subsidiary        through the integration of Artificial Intelligence (AI) and
of Indocel Holding Sdn. Bhd., now known as Axiata           data analytics to deepen customer understanding,
Investments (Indonesia) Sdn. Bhd., a fully-owned            enhance network performance, and deliver more
entity of TM International Sdn. Bhd. (TMI) through TM       personalized solutions that meet diverse needs. These
International (L) Limited. The synergy with our Malaysia-   endeavours not only drive engagement but also
based holding brought strategic alignment and regional      reinforce XLSMART’s position as a leading convergence
strength. In 2009, following TMI’s transformation into      operator in Indonesia.
Axiata Group Berhad, the Company changed its name
to PT XL Axiata Tbk.                                        To safeguard this expanding digital ecosystem,
                                                            XLSMART leverages cloud technology to build a
In Indonesia, the Company built a strong presence           more secure and resilient operational framework. Our
across both retail and corporate segments, providing        cybersecurity and fraud management systems are
Data, Voice, SMS, and a wide array of digital solutions     continuously enhanced to ensure the integrity, reliability,
with nationwide coverage. Operating on GSM 900/             and trustworthiness of every digital interaction thus
DCS 1800 and IMT-2000/3G, the Company became a              reflecting our commitment to safe, efficient, and
pioneer by commercially launching 4.5G Ready services       inclusive connectivity for all.




52        PT XLSMART Telecom Sejahtera Tbk
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XLSMART: A New Force in Indonesia’s Digital Future

Building upon a strong foundation of innovation and         possibilities that reflect XLSMART’s commitment to
connectivity, 2025 marked a historic transformation         expanding horizons across Indonesia and beyond.
as PT XL Axiata Tbk, PT Smartfren Telecom Tbk, and          Carrying the tagline “Bersama, Melaju Tanpa Batas”
PT Smart Telecom officially united under the name: PT       (“Go Beyond, Together”), XLSMART embraces the
XLSMART Telecom Sejahtera Tbk. The merger signifies         spirit of collaboration while also inviting customers,
not only a consolidation of resources and expertise but     communities, and partners to journey forward as one
also the realization of a unified vision to accelerate      in creating meaningful connections and empowering
Indonesia’s digital future. Through this integration,       every Indonesian for a better life.
XLSMART is all set to deliver inclusive, intelligent, and
sustainable digital experiences for customers across        XLSMART brings together the complementary
the nation.                                                 strengths of XL Axiata and Smartfren under a unified
                                                            leadership and shared aspirations. The Company
As part of this transformation, XLSMART unveiled            continues to operate the well-established XL, AXIS, and
a new corporate identity that redefines its vision          Smartfren brands for mobile cellular and broadband
and purpose for the digital era. The Infinity World         services, while serving SMEs and corporate clients
logogram represents limitless connectivity and endless      through XLSMART for Business. With over 94.5
opportunities, symbolizing a dynamic gateway to new         million customers, each connection matters, and we
                                                            are committed to delivering transformative digital
                                                            experiences.




                                                                                 2025 Sustainability Report     53
Page 56
                             About
                             XLSMART




Our Transformation

     1989                      1991                           1996                      1998
     Established on 6          Changed its name               Received a GSM 900        Introduced the proXL
     October 1989 under        to PT Graha                    Cellular System           brand as the Company’s
     the name PT Graha         Metropolitan                   license and               first prepaid product.
     Metropolitan              Lestari.                       commenced
     Lestari, the                                             commercial
     Company initially                                        operations, initially            2000
     operated as a                  1995                      targeting Jakarta,
                                                                                               Successfully expanded
     trading and general                                      Bandung, and
                                    Changed its                                                operations to Sumatra
     services enterprise.                                     Surabaya.
                                    name to PT                                                 and Batam.
     This foundation later
                                    Excelcomindo
     became the
                                    Pratama through
     stepping stone for
     its future
                                    a partnership                  1997                               2001
                                    with the Rajawali
     transformation into                                           Constructed                        • Secured DCS 1800
                                    Group and
     a major                                                       an integrated                        spectrum allocation.
                                    foreign
     telecommunications                                            microcell                          • Completed
                                    investors—
     operator in                                                   network                              construction of the
                                    NyNEX, AIF, and
     Indonesia.                                                    within                               primary fiber-optic
                                    Mitsui.
                                                                   Jakarta’s                            network.
                                                                   Golden                             • Launched M-Banking
                                                                   Triangle area.                       and M-Fun services.




            2010                                        2013                                2015
                                                                                            • Launched LTE services on the
            Axiata Investments                          • Entered into a
                                                                                              1,800 MHz band, extending
            (Indonesia) Sdn. Bhd., the                    Conditional Sale and
                                                                                              coverage to 35 cities.
            Company’s principal                           Purchase Agreement
                                                                                            • Became the first
            shareholder, divested a 20%                   (CSPA) with Saudi
                                                                                              telecommunications operator
            stake via Private Placement to                Telecom Company
                                                                                              in Indonesia to commercially
            increase public shareholding.                 (STC) and Teleglobal
                                                                                              introduce 4.5G-ready
                                                          Investment B.V. (a
                                                                                              technology on this spectrum,
                                                          subsidiary of STC) to
                                                                                              strengthening its leadership in
      2009                                                acquire PT Axis
                                                                                              mobile broadband.
                                                          Telekom Indonesia
      • Initiated the first Limited                       (AXIS).
        Public Offering through a                       • Successfully tested
        Rights Issue for
        1,418,000,000 new shares.
                                                          4G technology during        2014
                                                          the APEC Summit.
      • TM International Sdn. Bhd.                                                    • Completed acquisition of AXIS in
        officially rebranded as Axiata                                                  March and effected a merger in April.
        Group Berhad (“Axiata”), and                                                  • Conducted live 4G-LTE trials with
        PT Excelcomindo Pratama
        Tbk adopted the new name PT
                                                2012                                    Huawei and Ericsson.
                                                                                      • Implemented corporate rebranding,
        XL Axiata Tbk to reflect a              • ETISALAT divested 9.1%                including an updated logo to reflect a
        unified identity and synergy              of its shares through an              new strategic direction.
        within the Group. The majority            offering to institutional           • By this time, XL Axiata had evolved
        of shares were subsequently               investors, increasing                 into a major nationwide operator
        owned by Axiata through                   public ownership from                 providing data, voice, SMS, and
        Axiata Investments                        20.2% to 33.5%.                       various value-added services across
        (Indonesia) Sdn. Bhd.                   • Deployed more than                    Indonesia through its GSM 900/DCS
                                                  11,000 new BTS to                     1800 and IMT-2000/3G networks.
                                                  strengthen network
                                                  coverage.


54       PT XLSMART Telecom Sejahtera Tbk
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                                      2005                              2007
                                      Became a subsidiary of TM         • Introduced an Rp1 per second tariff.
                                      Group and successfully            • ETISALAT, the Middle East’s second-
                                      conducted an Initial Public         largest telecommunications company,
 2002                                 Offering of 1,427,500,000           acquired a stake in XL Axiata.
 • Obtained network allocation        shares on the Indonesian          • Began consolidating brands under the
   for Kalimantan and Sulawesi.       Stock Exchange (formerly            XL Prepaid and XL Postpaid banners.
 • Launched leased-circuit and        Jakarta Stock Exchange)
   Internet Protocol (IP) services.   under the ticker EXCL. The
                                      listing marked the Company’s            2008
                                      transition to a public entity
                                                                              • Following TM Group’s demerger, two
                                      and demonstrated market
                                                                                entities were formed: Telekom Malaysia
      2004                            confidence in its long-term
                                                                                Berhad and Axiata Group (formerly TM
                                      growth potential.
      Rebranded the corporate                                                   International Berhad), with Axiata
      identity and expanded the                                                 Group becoming parent to Indocel
      proXL product family,                                                     Holding Sdn. Bhd. via TM International
      introducing Jempol                                                        (L) Limited.
      (prepaid), Bebas
                                           2006                               • Axiata Group, through Indocel Holding
      (prepaid), and Xplor                 Launched 3G network                  Sdn. Bhd., acquired the Company’s
      (postpaid).                          services.                            shares from Khazanah Nasional
                                                                                Berhad, resulting in an 83.8%
                                                                                ownership interest by year-end.




     2017                                             2018                               2019
     • Expanded the network to 101,000 BTS,           • Commenced operation of           • Completed the Australia–
       with 63% of new deployments supporting           Universal Service                  Indonesia–Singapore
       3G and 4G technologies.                          Obligation (USO) network           submarine cable system
     • Extended 4G LTE coverage to 360 cities/          services in 40 locations           in collaboration with
       regencies, supported by over 17,000 4G           across four provinces.             Vocus Group and Alcatel
       BTS and 45,000 3G BTS.                         • Launched Laut                      Submarine Networks.
     • Executed a Conditional Sales and Purchase        Nusantara, an application        • Expanded the network
       Agreement to divest the Company’s shares         developed in collaboration         footprint to 130,000 BTS,
       in PT XL Planet (Elevenia) and SK Planet         with government                    including over 40,000
       Global Holdings Pte. Ltd.                        ministries and                     4G-enabled sites.
     • Collaborated with the Ministry of                organizations to enhance         • Princeton Digital Group
       Communication and Information on the             fishermen’s productivity           (PDG) agreed to acquire a
       Fishermen Go Online program via the              and safety.                        70% stake in the
       Nelayan Pintar (Smart Fishermen)               • Inaugurated the IoT Lab            Company’s data center
       application.                                     XCAMP in partnership with          portfolio.
     • Participated in the construction of the          the Ministry of                  • Commercially launched
       Australia–Indonesia–Singapore                    Communication and                  Narrowband IoT (NB-IoT)
       submarine cable communication system,            Information and the                across 31 cities/
       connecting Australia and Singapore via           Ministry of Industry.              regencies.
       Indonesia.                                     • Earned the Certificate of        • Extended USO coverage
                                                        Operational Eligibility            to 298 locations across
                                                        (SKLO) for 5G network              multiple provinces.
2016                                                    deployment, marking an
                                                        important step toward
                                                                                         • Deployed additional BTS
                                                                                           in remote areas including
• Expanded to 84,000 BTS, including                     commercial readiness for           Natuna (Riau Islands),
  approximately 8,200 4G BTS, providing                 next-generation                    Musi Rawas (South
  coverage to nearly 100 cities.                        connectivity.                      Sumatra) and the west
• Completed a fully subscribed public                                                      coast of Lampung.
  offering raising USD500 million.


                                                                                     2025 Sustainability Report        55
Page 58
                           About
                           XLSMART




     2020
     • Announced a share buyback program of Rp500 billion, executed from 7 April to 6 July 2020.
     • Partnered with Google Cloud to migrate workloads and implement Anthos for a secure hybrid multi-cloud
       application management platform.
     • Adopted SAP S/4HANA Cloud, becoming the first telecommunications company in Southeast Asia to implement this
       cloud ERP solution.
     • Supported government ministries and agencies with donations and programs to assist communities adapting to the
       COVID-19 pandemic.
     • Supported a government initiative to extend 4G services to 861 non-3T villages for the 2021–2022 period.



     2021
     • Attained ISO/IEC 20000-1:2018 and ISO 9001:2015 certifications.
     • Entered a partnership with Helios Data (California) to implement Secure Data Sharing technology.
     • Began USO BTS operations in collaboration with the Telecommunication and Information Accessibility Agency
       (BAKTI) in locations including Musi Rawas and North Musi Rawas (South Sumatra).
     • Partnered with FiberStar to expand the XL HOME fiber network.
     • Collaborated with NTT Ltd. to deploy private cloud infrastructure in preparation for the 5G ecosystem.
     • Launched XL SATU, Indonesia’s first convergence service integrating XL HOME and XL Prepaid.
     • Extended 4G coverage to 2,431 remote villages in Lampung province and expanded 4G services in Aceh to 193
       districts and 5,102 villages.
     • Attained the MEF-CE 3.0 International Certification through XL Business Solutions (Busol).
     • Received Ministry of Communication and Informatics approval for operation feasibility testing of 5G network
       services.
     • Implemented the Zero-Touch Operation platform, including enhancements to Network Operation Centre (NOC)
       capabilities.
     • Supported national vaccination efforts by establishing the Indonesia Bangkit Vaccination Centre (drive-thru) in
       Depok and continued vaccination initiatives at RSUP H Adam Malik in Medan; the Depok center was inspected by
       President Joko Widodo, accompanied by Minister of Health, Budi Gunadi Sadikin, the Governor of West Java, Ridwan
       Kamil, the Rector of Universitas Indonesia, Prof. Ari Kuncoro, S.E., M.A., Ph.D, and the Hospital Director, Dr. Astuti
       Giantini.
     • Advanced ESG commitments aligned with GSMA targets, including long-term commitments toward net-zero
       emissions by 2050.
     • Launched Desa Digital Nusantara (DDN) to facilitate digital technology adoption and empower villages.
     • Dian Siswarini, President Director & CEO of the XL Axiata, and Yessie D. Yosetya, Chief Strategic Transformation & IT
       Officer, attended the inauguration of the Indonesian G20 presidency in their capacity as chair of G20 Empower.
     • Expanded VoLTE coverage to 403 cities and regencies.



     2022
     • Acquired 2,805 shares representing a 51% stake in PT Hipernet Indodata (telecommunications and IT managed
       services), for approximately Rp358.438 billion.
     • Completed the construction of Sea Cable Communication System (SKKL), linking Batam, Indonesia, to Sarawak,
       Malaysia, also known as the Batam Sarawak International Cable System (BaSIC) in partnership with PP
       Telecommunication Sdn. Bhd., strengthening international connectivity.
     • Axiata Group Berhad and XL Axiata jointly acquired 66.03% of PT Link Net Tbk’s shares for approximately RM2.63
       billion; XL Axiata subsequently held a 20% stake in Link Net.
     • The Echo submarine cable system (“Golden Buoy”) was docked in Tanjung Pakis, Karawang, scheduled for
       integration into XL Axiata’s network to enhance fiber backbone connectivity.
     • Announced intention to issue XL Axiata Shelf Offering Bonds II Phase I of 2022 and Shelf Offering Sukuk Ijarah III
       Phase I of 2022 for Rp1.5 trillion each.
     • Convened an Extraordinary General Meeting of Shareholders (EGMS) to seek approval for a capital increase via a
       Limited Public Offering III (LPO III) by pre-emptive rights.
     • Collaborated with Link Net to introduce internet convergence services, integrating products from First Media and XL.
       This collaboration encompasses high-speed internet services devoid of quota restrictions, streaming content, cable
       TV, and online storage from First Media, coupled with the XL Joint Quota Package offering extensive internet data
       services.
     • Participated actively in Women20 and G20 Empower initiatives; resulting in the election of XL Axiata’s President
       Director & CEO, Dian Siswarini, as Co-Chair of Women20 Indonesia, and the election of Director & Chief of Digital
       Transformation & Enterprise Business Officer, Yessie D. Yosetya, as Chair of G20 Empower.




56     PT XLSMART Telecom Sejahtera Tbk
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                                                                                   Connecting Indonesia:
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2023
• Successfully completed the Capital Increase through Pre-emptive Rights III (“PMHMETD III”), generating proceeds
  of Rp5 trillion to strengthen the Company’s financial position and support future growth initiatives.
• Advanced the implementation of ESG principles by deploying Green BTS on a large scale. This initiative included the
  use of Intelligent Ventilation Cooling Systems (IVS), DC fans, and air conditioning systems that collectively reduced
  energy consumption by up to 50%. The modernization program has encompassed more than 90% of XL Axiata’s
  BTS network since its inception in 2014.
• Partnered with Cisco to enhance 5G and Cloud network readiness for the Internet of Things (IoT) through end-to-
  end automation and optical network advancements, thereby strengthening IoT connectivity services across
  Indonesia.
• Officially launched the e-SIM service, enabling customers to activate mobile connections without a physical SIM
  card. The service offers a seamless registration process via QR code, providing convenience and flexibility for users
  anywhere and anytime.
• Reinforced the strategic synergy between Axiata Group, XL Axiata, and Link Net to expand convergence services
  nationwide. The initiative aims to reach 8 million home passes within five years and strengthen XL Axiata’s position
  as Indonesia’s leading convergence operator by capitalizing on the low penetration of fixed broadband and the
  rising demand for integrated digital solutions.
• Continued the development of SD-WAN+ solutions tailored for corporate clients, offering simplified deployment,
  centralized management, and improved cost efficiency—ensuring sustainable value creation for businesses in an
  increasingly digitalized global market.
• Introduced “XL SATU BIZ,” a high-speed internet service for small and medium-sized enterprises (SMEs), providing
  robust Wi-Fi connectivity, generous data quotas, and a complimentary Majoo subscription that integrates ERP
  software to enhance business efficiency and productivity.
• Strengthened internet infrastructure at the new capital city (IKN) by installing four units of Mobile 4G BTS in key
  project areas, including the Presidential, Vice-Presidential Palaces, and around the workers’ mess. The IKN network
  is connected to Kalimantan’s main infrastructure and the international link via the Batam–Sarawak–Entikong
  submarine cable system.
• Collaborated with Link Net to develop one million new home-passed networks across more than ten cities and
  regencies, including regions outside Java, marking a significant expansion of broadband connectivity in
  underserved areas.
• Facilitated public mobility by ensuring 4G signal coverage across all Light Rail Transit (LRT) routes and stations in
  Cibubur and Bekasi, supported by more than 2,300 4G BTS units.
• Consolidated the Company’s leadership in convergence services through the XL SATU product line. The upcoming
  integration of Fiber To The Room (FTTR) technology will further enhance user experience, while service coverage
  expanded to 63 cities and regencies, with Batam as the latest addition.
• Partnered with Nokia Indonesia to strengthen ESG initiatives in line with Indonesia’s national target of reducing
  carbon emissions by 43.2% by 2030. Within its operational framework, the Company aims for a 45% carbon
  emission reduction from the 2020 baseline by 2030.
• Successfully expanded 4G LTE coverage throughout the Jakarta MRT network, including all underground lines and
  stations, ensuring seamless connectivity for passengers and enabling continuous monitoring to maintain service
  excellence.
• Introduced green mining solutions through private networks that enable environmentally responsible mining
  operations. By leveraging IoT-based fleet management and automation, the solution enhances efficiency, reduces
  operational costs, and improves employee safety in hazardous areas.
• Partnered with Hipernet to launch Open Wi-Fi and Managed Wi-Fi services under XL SATU BIZ, empowering SMEs
  with advanced digital infrastructure to support business growth.
• Extended 4G services to 861 outermost, underdeveloped, and frontier regions across Indonesia, fulfilling
  government-mandated connectivity obligations.
• Received the Gold Flag certification for the Occupational Safety and Health Management System (SMK3) from
  Indonesia’s Ministry of Manpower, recognizing the Company’s excellence in workplace safety management.
• Supported Axiata Group Berhad’s structural transformation initiative to accelerate the evolution of its Indonesian
  subsidiaries, XL Axiata and Link Net, into a “ServeCo” and “FibreCo” framework to enhance strategic focus and
  operational efficiency.
• Collaborated with Indosat Ooredoo Hutchison, Axiata Digital Labs, and Amazon Web Services (AWS) to launch the
  SinergiAPI Portal—Indonesia’s first GSMA Open Gateway-based API platform—empowering developers with
  standardized network API access through the Linux Foundation’s CAMARA project.




                                                                                  2025 Sustainability Report          57
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                           About
                           XLSMART




     2024
     • As part of the global GSMA Open Gateway initiative, XL Axiata, Telkomsel, Indosat Ooredoo Hutchison, and
       Smartfren jointly launched three API services—Number Verify, SIM Swap, and Device Location—enhancing digital
       security and customer experience across Indonesia’s telecommunications ecosystem.
     • Achieved CDP certification following a rigorous five-month evaluation process by the global non-profit CDP
       organization, underscoring XL Axiata’s steadfast commitment to ESG excellence and transparent environmental
       disclosure.
     • Signed a Memorandum of Understanding (MoU) with Huawei to establish a strategic collaboration focused on
       Artificial Intelligence (AI) integration in digital business operations.
     • Partnered with Cisco to introduce a cloud-delivered IoT connectivity management platform under the “IoT
       Connectivity+” product, enabling customers to scale their IoT businesses securely and efficiently.
     • In collaboration with Nokia, successfully concluded a five-year network modernization program encompassing
       approximately 4,400 sites, involving comprehensive infrastructure replacement and network expansion.
     • Through XL Axiata Business Solutions (XLABS), launched smart manufacturing solutions that utilize IoT technology
       to support the digital transformation of Indonesia’s manufacturing sector by improving operational efficiency and
       product quality.
     • Entered a new phase of strategic development as Axiata Group and Sinar Mas signed a non-binding MoU to explore
       a potential merger between XL Axiata and Smartfren, paving the way for the formation of “MergeCo”.
     • Partnered with PT Mobil Anak Bangsa (MAB) through XLABS to deliver essential ICT services—including IoT and fixed
       connectivity—supporting Indonesia’s growing electric bus industry and contributing to sustainable mobility.
     • Strengthened cybersecurity capabilities by becoming the exclusive partner of ITSEC Asia in supporting DEFEND
       IT360’s cybersecurity solutions tailored for SMEs, further expanding XLABS’ B2B service portfolio.
     • Enhanced the XL Center Online platform with improved design, functionality, and service range under the
       #JadiLebihBaik initiative, offering features equivalent to physical outlets such as eSIM registration, lost card
       replacement, premium number selection, smartphone bundling, and streamlined ticket tracking.
     • Expanded Fixed Mobile Convergence (FMC) network coverage to Sulawesi with the launch of XL SATU Fiber in
       Morowali Regency, ensuring broader access to high-quality broadband services.
     • Formed a partnership with PT Ide Inovatif Bangsa (Quest Motors) to integrate XLABS’ digital solutions into its electric
       motorcycle platforms, supporting innovation in Indonesia’s green mobility ecosystem.
     • Introduced “HYFE” by XL PRIORITAS, a new internet service package offering flexible options and enhanced user
       experience to meet the evolving digital needs of customers.
     • Opened a new office and XL Center in Balikpapan to reinforce service quality and network presence in East
       Kalimantan, coinciding with XL Axiata’s 28th anniversary celebration.
     • Reaffirmed the Company’s sustainability commitment during its anniversary celebration by achieving a Zero Waste
       to Landfill event, in collaboration with Waste4Change for responsible waste management.
     • Through XLABS, launched “XL Axiata HydroponiX,” an IoT-based smart farming solution designed to improve the
       productivity and quality of hydroponic agriculture.
     • Officially integrated First Media’s home internet services into XL Axiata effective 27 September 2024, following the
       merger of Link Net and XL Axiata under a B2C business transfer agreement signed on 22 May 2024.
     • On 11 December 2024, XL Axiata and Smartfren announced a strategic merger valued at approximately IDR104
       trillion (US$6.5 billion), establishing PT XLSMART Telecom Sejahtera Tbk (“XLSMART”). This landmark merger
       creates a leading telecommunications entity poised to drive innovation, elevate service quality, and accelerate
       Indonesia’s digital transformation.




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2025
• On 25 March 2025, the EGMS approved the business merger between the Company, PT Smartfren Telecom Tbk
  (“SF”), and PT Smart Telecom as outlined in the Merger Plan summary published on 11 December 2024 (as
  supplemented and/or amended in accordance with applicable laws and regulations).
• On 16 April 2025, PT XLSMART Telecom Sejahtera Tbk (“XLSMART” or “IDX: EXCL”) marked its official establishment
  as a unified telecommunications entity, born from the legal consolidation of PT XL Axiata Tbk, PT Smartfren Telecom
  Tbk, and PT Smart Telecom. This landmark moment signifies the beginning of a bold new chapter in Indonesia’s
  digital era, with XLSMART poised to redefine connectivity, drive innovation, and elevate customer experience across
  the archipelago.
• XLSMART unveiled its new corporate identity featuring the Infinity World logogram, symbolizing limitless
  connectivity and boundless innovation, alongside its inspiring new tagline, “Bersama, Melaju Tanpa Batas” (“Go
  Beyond, Together”).
• Signed a strategic partnership agreement with two global technology companies, PT Huawei Tech Investment and
  PT ZTE Indonesia, to support the management of national network operations as well as the development of
  employee knowledge, competencies, and technological expertise in the fields of technology and digital innovation.
• For Smartfren brand, XLSMART officially expanded 4G LTE and VoLTE coverage to new regions, including the
  Province of Aceh, the Bali Regencies of Gianyar, Klungkung, and Karangasem, as well as Kupang City in East Nusa
  Tenggara, providing customers with faster and more reliable data access.
• Introduced “Sarah,” a virtual assistant powered by Generative AI (GenAI), as part of Smartfren Care’s digital
  transformation. Sarah delivers faster, more personalized, and solution-oriented customer service experiences across
  digital platforms.
• XLSMART through its business arm XLSMART for Business, held the BRAVO 500 SUMMIT, an international strategic
  forum that brought together industry players, regulators, and global technology partners on a collaborative stage.
  The event drew around 500 companies, 1,500 top-level executives from diverse industries, and over 30 expert
  speakers from the public and private sectors. XLSMART also introduced Enterprise Smart Technology & Automation
  (ESTA), which is XLSMART’s unified digital platform to assist industrial sectors function more efficiently, securely, and
  measurably.
• To enhance customer protection and satisfaction, XLSMART launched “Credit Control,” an innovative feature that
  allows customers to lock their prepaid credit, preventing unauthorized use for paid SMS, subscription content, or
  out-of-plan internet access—offering greater transparency and control over service usage.
• Signed a strategic agreement at the Bali Annual Telkom International Conference (BATIC) 2025, committing to
  expanded collaboration in network development, service quality improvement, and the creation of new business
  opportunities within the telecommunications ecosystem.
• Through XLSMART for Business, XLSMART partnered with ASTRAtech to develop a 5G-based Autonomous Drone for
  Goods Delivery, designed to accelerate logistics distribution and support digital transformation in Indonesia’s
  manufacturing sector.
• XLSMART has now implemented SIM card registration utilising face recognition technology. This service is still
  optional for customers, in line with current regulations. To assure data accuracy, a biometric system connected to the
  national population database. This initiative represents XLSMART’s support for the government’s program to
  expedite national digital transformation while enhancing customer data security.
• Integrated the unified operational and service quality monitoring center (Customer Experience & Service Operation
  Centre-CE & SOC) into a single location, the XLSMART Building in Bumi Serpong Damai (BSD) City, South Tangerang.
  The CE & SOC integrates two formerly distinct Network Operation Centres (NOC), one owned by XL Axiata at the XL
  Axiata Tower in Kuningan, Jakarta, and the other by Smartfren in BSD, South Tangerang. The CE & SOC have been
  operationally integrated since July 2025, representing an important point in XLSMART’s post-merger phase, which
  prioritises network stability as well as operational efficiency and effectiveness.
• XLSMART through Smartfren has earned a national record for “Telecommunications Service Provider Organizing the
  Most Running Events in a Single Year” with its flagship program, Smartfren Fun Run 2025. Over the past year,
  Smartfren has successfully hosted a series of fun run events in 22 cities across Indonesia, engaging over 15 thousand
  participants of various ages and backgrounds.
• XLSMART through its XL service brand, has reaffirmed its commitment to providing a superior experience for
  customers and the general public. XL services with XLSMART network support has officially presented XL Ultra 5G+
  which was ready to fully cover Denpasar City and Badung Regency, Bali, as well as 11 other cities/regencies spread
  across various regions in Indonesia, as of 17 December 2025.




                                                                                    2025 Sustainability Report           59
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                                   About
                                   XLSMART




Organization Structure



                                                                                              Director &
                                    Director
                                                                                            Chief Strategy
                                     & Chief
                                                                                              and Home
                                   Commercial
                                                                                               Business
                                     Officer
                                                                                                Officer




                      Go To          Commercial      Commercial                   Home              Home
     Marketing
                      Market           Sales          Marketing                  Business           Sales




                                                                                                     Home
                                                                                    Home
       Mass          Commercial                        Product &   Commercial                        Sales        Strategic
                                       Tradi Sales                                Product &
      Segment           GTM                           ARPU Mgmt.    Planning                      Convergence    Partnership
                                                                                  Marketing
                                                                                                       1




                                       Omni and                     Customer                      Home Sales
      Youth                                            Customer                    Home                            Digital
                     Region West        Beyond                       Contact                      Convergence
     Segment                                            Success                  Operations                      Partnership
                                         Telco                       Center                            2




                                        Product                                     Home
                                                                                                      Sales
      Premium                          Portfolio        Brand         CVM        Convergence
                     Region Jabo                                                                    Vertical &
      Segment                          & Trading        Comm.      Management     Channel &
                                                                                                    Telesales
                                         Policy                                     GTM




      Portfolio        Region         Commercial                    Channel                         Migration
                                                         CLM
       Mgmt.           Central          PDCA                       Management                        Mgmt.




                                                       Marketing     Direct
                     Region East
                                                       Strategy     Channel




                                                                     Digital
                       Region
                                                                    Channel
                     Kalimantan
                                                                   Touch Point




                       Region
                      Sulawesi




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                                                                  President Director & CEO



               Director & Chief
                                                                            Director                                                                                                     Director & Chief                                  Director
                  Enterprise                                                                                                  Director &                      Director & Chief                                       Director & Chief
                                                                             & Chief                                                                                                       Information                                     & Chief
                and Strategic                                                                                                Chief People                       Technology                                             Regulatory
                                                                            Financial                                                                                                      Technology                                    Integration
                Relationship                                                                                                   Officer                            Officer                                                Officer
                                                                             Officer                                                                                                          Officer                                      Officer
                   Officer




                                                                                                                                               Industrial
 Enterprise       Enterprise
                                    Enterprise                                                                 Human           Human           Relations,                                                                                                  Strategy &      Risk &
  Business         Business                                                               Procurement                                                                            Deputy CITO
                                  Synergy Office                                                               Capital        Resources      GA & Building                                                                                                 Analytics     Compliance
Technology        Solutions
                                                                                                                                             Facility Mgmt.




                                                                                  SCM System
                                                    Investor                                                                                                       Tech.          IT Corporate
  Business         Enterprise        Enterprise                      Revenue         Proc,                                                                                                           IT Strategy                                                            Risk &
                                                    Relations                                     Category        People       HR Strategy      Employee        Strategy &          Platforms                                             Transformation    Corporate                  Internal   Corporate   Business
  Analyst &        Product &          Synergy                      Assurance &    Automation                                                                                                         & Business            Legal                                          Compliance
                                                   & Financial                                   Management      Journey         & PMO          Relations       Alignment          & Analytics                                            & IMO Office      Strategy                    Audit     Secretary   Control
    Dev.           Marketing           Mgmt.                       Interconnect    & Vendor                                                                                                            Partner
                                                     Project                                                                                                                         Delivery
                                                                                    Mgmt.




                   National &                                                       Network                                                                                            IT
                                     Enterprise                     Finance                                                    OD & Talent                         RAN                                                  Regulatory          Synergy          Business
  Enterprise       Strategic                                                      Electronics,   Technology      People                          General                          Commercial           Digital
                                        Buss         Finance        Business                                                   Acquisition                       Planning                                                 & Gov.          Realization &     Analysis &
 Technology        Enterprise                                                       Tower &      Procurement   Development                       Affairs                           Platforms         Touchpoint
                                    Performance                     Control                                                                                                                                              Relations         Accounting         Insight
                                                                                  Fiber Optics                                                                                      Delivery




                                                                                      IT &                       People                                          Network
  Enterprise                         Enterprise    Treasury &                                                                                    Building        Planning                                               Regulatory                           Applied
                  Wholesale &                                        Contract       Network        General      Services         People                                                                IT Core                            NR, MOCN &
 Marketing &                        Partnership    Finance BP                                                                                    Facility        & Design -                                             Relations &                         Analytics
                   Reseller                                           Mgmt.         Services     Procurement    & Facility       Mgmt.                                                                Platform                             New Site
 Sales NSMG                           Mgmt. 1      Enterprise                                                                                    Mgmt. 1         Transport                                              Compliance                            & AI
                                                                                  Procurement                    Mgmt.




                                                                                                                  People                                                                                                                    Network           Data
                                      Enterprise                                    Logistics                                    Talent &        Building        Network                                Tech.              Corp.
  Enterprise        Regional                        Financial         Legal                        Tower        Strategy                                                                                                                   Assurance       Engineering
                                     Partnership                                   & Indirect                                     People         Facility       Planning &                            Security &          Comm. &
  Sales SMG        Enterprise                      Accounting       Operations                    Operation    Alignment &                                                                                                                 & Service            &
                                       Mgmt. 2                                    Procurement                                  Development       Mgmt. 2        Dev. - Core                          Risk Control       Sustainability
                                                                                                                Analytics                                                                                                                   Quality        Development




                    Solution         Enterprise    Collection &                                                                                                                                                                                               Data
                                                                                   Material         Fiber &                      Reward,
                     & Tech           Pricing &    Finance BP                                                                                                    Network                              IT Digital                             Site          Government
                                                                                   Mgmt. &        InBuilding                      HRIS &
                    Account           Program      Product and                                                                                                     Ops                                   Ops                              Dismantling      & Architect
                                                                                  Warehousing    Management                       Policy
                     Mgmt.             Mgmt.       Commercial




                                                                                                  System &                        HR                            Service Ops                                 IT
                                                                                                   Enabler                     Operations                         Mgmt.                             Transformation




                                                                                                   Vendor                                                                                               Data
                                                                                                 Management                                                                                            Privacy




                                                                                                                                                                                                                                                                              2025 Sustainability Report           61
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                            About
                            XLSMART




Group’s Structure



                                                                                                              PT Gerbangmas
     Axiata Group                                             PT Prima Mas          PT Infinity
                                                                                                                  Tunggal
        Berhad                                                    Abadi            Investama
                                                                                                                 Sejahtera

           100%


     Axiata                                                            99.99%             99.99%                  99.99%
  Investments
(Labuan) Limited

           100%


      Axiata
   Investments          Public         Treasury                PT Global          PT Bali Media      PT Wahana Inti
 (Indonesia) Sdn     Shareholders       Shares                 Nusa Data         Telekomunikasi        Nusantara
       Bhd


           34.69%          24.60%              6.01%           4.66%             24.57%               2.85%        2.61%




                                                   PT XLSMART Telecom
                                                       Sejahtera Tbk




           18.32%          51%             20%                50%                100%              100%               10.71%


                                                                          XL Axiata
                                                                          Singapore
    PT Mora                                               PT One                                               PT Princeton
                    PT Hipernet     PT Link Net                          Pte. Ltd. (d/h     PT Distribusi
   Telematika                                           Indonesia                                              Digital Group
                     Indodata           Tbk                              Axiata Global      Sentra Jaya
 Indonesia Tbk                                           Synergy                                               Data Centres
                                                                         Services Pte.
                                                                             Ltd.)

                          50.95%



                      PT Data
                      Enkripsi
                     Informasi
                     Teknologi




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Subsidiaries, Associates, and
Joint Ventures

Direct Ownership

PT Hipernet Indodata
Address                                            Graha Hyper Jl. Makaliwe Raya No. 24-24A West Jakarta, DKI Jakarta
Shareholding Percentage                            51%
Business Line                                      Managed Service Provider and Information Technology Service
Total Assets as of 31 December 2025 (Rp million)   455,605
Operational Status                                 Active




PT Link Net Tbk
Address                                            Centennial Tower 26th Floor Unit D
                                                   Jl. Jenderal Gatot Subroto Kav. 24-25 South Jakarta, DKI Jakarta
Shareholding Percentage                            20%
Business Line                                      Internet Services Provider and Cable TV
Total Assets as of 31 December 2025 (Rp million)   15,448,528
Operational Status                                 Active




PT One Indonesia Synergy
Address                                            Indosat Building, 9th Floor
                                                   Jl. Medan Merdeka Barat No. 21 Gambir, Central Jakarta, DKI Jakarta
Shareholding Percentage                            50%
Business Line                                      Computer consultancy and facility management
Total Assets as of 31 December 2025 (Rp million)   -
Operational Status                                 Active




PT Princeton Digital Group Data Centres
Address                                            Astra Tower, 37/F Jl. Jend. Sudirman Kav 5-6 Central Jakarta 10220,
                                                   DKI Jakarta
Shareholding Percentage                            10.71%
Business Line                                      Activities relating to hosting and managing data centres
Total Assets as of 31 December 2025 (Rp million)   3,703,542
Operational Status                                 Active




XL Axiata Singapore Pte. Ltd. (formerly Axiata Global Services Pte. Ltd)
Address                                            9 Raffles Place, #26- 01 Republic Plaza, Singapore 048619
Shareholding Percentage                            100%
Business Line                                      International operator services and partnership and alliance management
Total Assets as of 31 December 2025 (Rp million)   26,122
Operational Status                                 Active




                                                                                         2025 Sustainability Report          63
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                                        About
                                        XLSMART




PT Distribusi Sentral Jaya
Address                                                             CBD Lot, Jl. Pahlawan Seribu No.45 12A, Lengkong Gudang, Serpong District,
                                                                    South Tangerang, Banten 15321
Shareholding Percentage                                             100%
Business Line                                                       Wholesale Services
Total Assets as of 31 December 2025 (Rp million)                    250,398
Operational Status                                                  Active




Indirect Ownership
PT Data Enkripsi Informasi Teknologi*
Address                                                             Graha Hyper Jl. Makaliwe Raya No. 24-24A West Jakarta, DKI Jakarta
Shareholding Percentage                                             50.95%
Business Line                                                       Cybersecurity services
Total Assets as of 31 December 2025 (Rp million)                    14,148
Operational Status                                                  Active
* PT Hipernet Indodata owns 99.9% direct ownership in PT Data Enkripsi Informasi Teknologi.




Business Scale
                        Description                                         Unit              2025             2024              2023

 Total Employees                                                           People              3,239            1,663              1,495
 Total Revenues                                                          Rp-Billion           42,446           34,392            32,323
 Total Assets                                                            Rp-Billion           115,318          86,179            87,688
 Total Liabilities                                                       Rp-Billion           85,310           59,956             61,183
 Total Equity                                                            Rp-Billion           30,009           26,222            26,505
 Number of Products/Services Provided                                    Petabyte             14,566           10,547             9,638
 Number of Customers                                                  Million-people           73.00            58.80              57.52




Shareholder Composition
Axiata Investment Indonesia is a subsidiary of the Axiata Group Berhad, the largest telecommunications company in
Asia which also owns Celcom (Malaysia), Dialog (Sri Lanka), Robi (Bangladesh), Smart (Cambodia), Ncell (Nepal),
Idea (India), and M1 (Singapore).


                       Shareholder                                          Unit              2025             2024              2023

 Axiata Investments (Indonesia) Sdn. Bhd.*                                                    34.69            66.25             66.25
 PT Bali Media Telekomunikasi*                                                                24.56                -                  -
                                                                              %
 Treasury Shares                                                                                  0             0.43              0.43
 Public with Less than 5% Ownership                                                           33.23            33.32             33.32
*Axiata Investments (Indonesia) Sdn. Bhd and PT Bali Media Telekomunikasi are the Company’s controlling shareholders along with PT Global Nusa
Data (4.663%) and PT Wahana Inti Nusantara (2.847%).




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Association Membership [C.5] [GRI 2-28]

Throughout 2025, XLSMART actively participated and contributed to the following industry associations:



 No                           Organization Name                                  XLSMART’s Role and Contribution

   1 Global Mobile Suppliers Association (GSA)                           Member

   2 Submarine Cable Association (ASKALSI)                               Supervisory Board; Inter-Institutional Relationship,
                                                                         Training; Event & Certification; Legal & Regulatory;
                                                                         Restoration & Facility Management; Member

   3 Indonesia Service Dialogue (ISD Council)                            Member

   4 Association of Indonesian Telecommunications Operator (ATSI)        Supervisory Board; Secretary General; Member

   5 Indonesian Telematics Society (MASTEL)                              Member and Manager

   6 Telecommunications Interconnection Clearing Association (ASKITEL)   Supervisory Board; Member

   7 Indonesian Chamber of Commerce and Industry (KADIN)                 Member

   8 Indonesian Chamber of Commerce and Industry (KADIN DKI Jakarta)     Member

   9 Asosiasi Penyelenggara Jasa Internet Indonesia (APJII)              Member

  10 Metro Ethernet Forum (MEF)                                          Member

   11 Indonesian Corporate Secretary Association (ICSA)                  Member

  12 Dewan TIK Nasional (Wantiknas)                                      Advisory Team Member

  13 KADIN NET ZERO Hub                                                  Member




                                                                                      2025 Sustainability Report           65
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                         About
                         XLSMART




Operational Area [C.3]

Operational Area and BTS Network




                        2




                                                                 1
                                                                         3                      4

     Head Office
 1
     XLSMART TOWER
     Jl. H.R Rasuna Said X5 Kav.11-12, East Kuningan,
     Setiabudi, South Jakarta 12950


     Region-West
 2
     DIPONEGORO MEDAN
     Jl. Diponegoro No.5, Medan,
     North Sumatra


     CENTRAL                                                EAST
 3                                                      4
     MARTADINATA                                            PEMUDA
     Jl. R.E Martadinata No 7, Bandung                      Jl. Pemuda No 94-98 Embong Kaliasin
     West Java                                              Subdistrict, Genteng District, Surabaya,
                                                            East Java




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165,530
 4G BTS

4,864
 5G BTS




    2025 Sustainability Report   67
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                           About
                           XLSMART




Business Activities [C.4] [GRI 2-6]

Pursuant to Article 3 of the latest Articles of Association, XLSMART’s objectives and scope of business encompass
activities in telecommunications, large-scale trade, programming, computer consulting and related services,
information services, telecommunications construction and installation, employment activities, as well as
professional, scientific, and technical activities. The Company also engages in rental and leasing activities
without option rights, real estate, financial services, office administration and support services, advertising, land
preparation, and other supporting business activities.

To achieve the aforementioned aims and objectives, the Company may engage in the following business activities:



  1. Telecommunications Business                             2. Large Scale Trade:
     Activities:                                                 •   Large Scale Trade in Computers and
     a. Operation of telecommunications networks,                    Computer Equipment;
        including but not limited to:                            •   Large Scale Trade of Software;
        • Cable Telecommunication Activities;                    •   Large Scale Trade in Telecommunication
        • Wireless Telecommunications Activities;                    Equipment;
        • Satellite Telecommunication Activities;                •   Large Scale Trade in Electronic Spare Parts;
        • Special Telecommunication Activities for               •   Large Scale Trade in Machinery, Equipment,
            Own Use;                                                 and Other Supplies;
        • Special Telecommunication Activities for               •   Wholesale Trade Based on Service Fees or
            Defense and Security Purposes;                           Contracts.
        • Other Telecommunication Activities;
        • Special Broadcasting
            Telecommunications Activities;
                                                             3. Computer Programming and
        • The Development of Internet-Based
                                                                Consultancy Services and other
            Trading Applications (e-Commerce)
                                                                Activities Related thereto:
            Activities.
                                                                 •   Other Computer Programming Activities;
                                                                 •   Artificial Intelligence Programming Activities;
     b. Provision of telecommunications services
                                                                 •   Immersive Media Content Programming and
        including but not limited to:
                                                                     Production Activities;
        • Internet Service Provider;
                                                                 •   Digital Identity Provision Activities;
        • Data Communication System Services;
                                                                 •   Activities for Providing Electronic Certificates
        • Internet Telephony Services for Public
                                                                     and Services Using Electronic Certificates;
            Purposes (ITKP);
                                                                 •   Blockchain Technology Development
        • Internet Interconnection Services (NAP);
                                                                     Activities;
        • Content Provider Services through Cellular
                                                                 •   Information Security Consultancy Activities;
            Mobile Networks or Wireless Local Area
                                                                 •   Computer Consulting and Other Computer
            Networks with Limited Mobility;
                                                                     Facility Management Activities;
        • Other Multimedia Services;
                                                                 •   Internet of Things (IoT) Consulting and
        • Telecommunication Resale Services;
                                                                     Design Activities;
        • Internet Protocol Television (IPTV)
                                                                 •   Information Technology Activities and Other
            Services;
                                                                     Computer Services.
        • Other Telephony Value-Added Services.




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  4. Information Services Activities:
     •   Data Processing Activities;
     •   Hosting and Related Activities;
     •   Web Portals and/or Digital Platform without Commercial Purposes;
     •   Web Portals and/or Digital Platforms with Commercial Purposes;
     •   Other Information Services Activities-Not Included in Others.


  5. Construction:                                              7. Professional, Scientific, and Technical
     •   Telecommunication Central Construction;                   Activities:
     •   Telecommunication Installation;                           •   Management Consultancy Activities;
     •   Railway Signal and Telecommunication                      •   Advertising.
         Installation;
     •   Land Preparation.
                                                                8. Rental and Leasing Activities without
                                                                    Option Rights for Technological Aids.
  6. Employment Activities:                                     9. Owned or Leased Real Estate.
     •   Provision of Human Resources and                       10. Other Monetary Intermediaries.
         Management of Human Resources Function;                11. Call Center Activities.
     •   Specific Time Labor Provision Activities.              12. Software Publishing.
                                                                13. Other Publishing Activities.
                                                                14. Telecommunication Equipment
                                                                    Repair.



For the purpose of realizing the aforementioned aims and objectives, the Company may engage in the following
business activities:
a. Plan, engineer, build, provide, develop and operate, lease, maintain and procure telecommunication facilities/
   facilities including procurement of resources to support the Company’s business in providing telecommunication
   services and/or networks;
b. Increase as much as possible the business of providing telecommunication services and networks, so as to
   achieve the capacity desired and needed by the community in order to improve services to the community;
c. Run business and operational activities (which also includes marketing and sales of telecommunication
   networks and/or services provided by the Company), carrying out maintenance, research, development, means
   and/or facilities of the telecommunication, organizing non-formal education and training in telecommunication
   sector both domestic and overseas;
d. Provide other telecommunication services and networks including information technology services and/or
   networks; and
e. Carry out the other activities deemed necessary to support and/or be related to telecommunication operations,
   large scale trade trading activities, programming activities, computer consulting activities and related activities,
   information services activities, telecommunication construction and installation, employment activities,
   professional, scientific and technical, rental and leasing activities without option rights for digital technology
   tools, real estate, financial services activities, management consulting activities, office administration activities,
   office support activities, advertising and land provision.

Throughout 2025, the Company carried out all of the aforementioned business activities, except for Internet Protocol
Television (IPTV) Services, Digital Identity Provision Activities, Activities for Providing Electronic Certificates and
Services Using Electronic Certificates, Telecommunications Installation, Other Telephony Value-Added Services,
Special Telecommunication Activities for Defense Security Purposes, Telecommunication Central Construction,
Railway Signal and Telecommunication Installation Specific, Telecommunication Activity for Own Use, Immersive
Media Content Programming, Production Activities, Satellite Telecommunication Activities, and Land Preparation.


                                                                                     2025 Sustainability Report       69
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                          Sustainability
                          Governance




70   PT XLSMART Telecom Sejahtera Tbk
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Sustainability
 Governance




        2025 Sustainability Report   71
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                                Sustainability
                                Governance




Committed to the Effective
Implementation of GCG Practices
At XLSMART, strong governance is more than a               and SEOJK No. 16/SEOJK.04/2021 on the Formats
framework, it reflects how the Company stays true to       and Contents of the Annual Report of Issuers or Public
its values in every decision, and how integrity guides     Companies. The Company also adopts additional
each part of the business. Good Corporate Governance       reference and frameworks, such as Roadmap of
(GCG) has long been the foundation for responsible         Indonesian Corporate Governance Guidelines issued
operations, resource optimization, and building            by OJK, the ASEAN Corporate Governance Scorecard
lasting trust with stakeholders. Through the consistent    (ACGS) issued by the ASEAN Capital Market Forum
implementation of governance practices, the Company        (ACMF), and the Indonesian General Guidelines
ensures that accountability and ethical conduct are        for Corporate Governance issued by the National
deeply in its culture.                                     Governance Policy Committee (KNKG).

GCG also serves as the compass that links business         XLSMART’s GCG Principles
performance with long-term sustainability. It provides     XLSMART continues to uphold GCG principles in every
direction for how decisions are made, how risks            aspect of its operations. These values guide how the
are managed, and how opportunities are pursued             Company engages with stakeholders and bring to life
in a responsible and transparent manner. These             its sustainability pillars: Building Prosperity, Planet &
governance practices help the Company create value         Society, Nurturing People, and Process Excellence.
not only for shareholders, but also for customers,         The following table outlines how each GCG principle is
employees, partners, and communities. They reflect a       applied within the Company’s governance framework.
belief that growth built on strong ethics leads to long-
lasting impact.                                            Specifically, XLSMART’s GCG practices are guided
                                                           by the Indonesian Corporate Governance General
XLSMART’s commitment to the implementation of              Guidelines (Pedoman Umum GCG Indonesia/PUGKI)
sustainable governance is grounded in compliance with      2021, as revised by the National Committee on
the Law of the Republic of Indonesia No. 40 of 2007 on     Governance Policy (KNKG). In line with these guidelines,
Limited Liability Companies (“Company Law”) and            the Company consistently applies the fundamental
its implementing regulations, as well as the Law of the    principles of Ethical Conduct, Accountability,
Republic of Indonesia No. 8 of 1995 on Capital Markets,    Transparency, and Sustainability, which together form
OJK Regulation No. 51/POJK.03/2017 concerning the          the foundation of XLSMART’s governance framework.
Implementation of Sustainable Finance for Financial
Service Institutions, Issuers, and Public Companies,       The principles are as follows:




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XLSMART’s GCG Principles


                    The corporation places a premium on honesty in its operations, treats all stakeholders with respect,
                    fulfills its commitments, and consistently cultivates and maintains moral values and trust. It
                    considers the interests of shareholders and other stakeholders based on the principles of fairness
                    and equity. The corporation is managed independently, ensuring that no individual corporate entity
                    can dominate or intervene in the affairs of another.

                    Implementation at XLSMART
                    In practice, all decision-making processes at XLSMART are designed to prevent and manage
                    potential conflicts of interest. Should any corporate action involve a conflict, it will only be carried
                    out in strict compliance with prevailing laws and regulations. The Company guarantees that all
                    shareholders receive fair and equal treatment in accordance with applicable legal provisions.
     ETHICAL        Furthermore, XLSMART ensures that shareholders and stakeholders have the right to provide
    CONDUCT         input, express opinions, and obtain balanced and transparent information regarding the
                    Company’s performance and governance practices.

                    Through the consistent application of these principles, XLSMART strengthens its ethical foundation,
                    reinforces stakeholder confidence, and ensures that integrity remains at the heart of its corporate
                    governance culture.


                    The corporation is fully accountable for its performance, presenting information in a transparent
                    and equitable manner. It is essential that the corporation is managed correctly, with measurable
                    outcomes aligned with corporate interests while also considering the interests of shareholders and
                    stakeholders. Accountability is vital for achieving sustainable performance.

                    Implementation at XLSMART
                    The Company takes full responsibility for the accuracy, integrity, and timeliness of information
                    disclosed to shareholders and stakeholders. Each corporate organ, the General Meeting of
                    Shareholders (GMS), the Board of Commissioners, and the Board of Directors, carries out its duties
                    and responsibilities in accordance with applicable laws, the Articles of Association, and established
ACCOUNTABILITY      governance policies. Through effective oversight, internal control mechanisms, and performance
                    evaluation systems, XLSMART ensures that accountability is maintained at every organizational
                    level, thereby supporting sound decision-making and long-term corporate sustainability.



                    To maintain objectivity in its business operations, the corporation disseminates material and
                    relevant information in a manner that is accessible and comprehensible to stakeholders. The
                    corporation takes the initiative to disclose not only those matters required by laws and regulations
                    but also other significant issues that are vital for decision- making by shareholders, creditors, and
                    other stakeholders.

                    Implementation at XLSMART
                    The Company disseminates relevant and material information through multiple communication
                    channels to ensure broad and equitable access. These include the Annual Report, audited Financial
                    Statements published via the Indonesia Stock Exchange (IDX) platform, the Company’s official
 TRANSPARENCY       website, and other public information media such as newspapers or press releases. XLSMART also
                    complies with periodic and incidental disclosure obligations as required by the Financial Services
                    Authority (OJK) and the IDX. Through these measures, XLSMART reaffirms its commitment to
                    transparency as a means of strengthening stakeholder trust and promoting accountability
                    throughout the organization.




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                                        Governance




                                The corporation adheres to legal regulations and is committed to fulfilling its social and
                                environmental responsibilities, thereby contributing to sustainable development through
                                collaboration with relevant stakeholders to enhance their well-being in alignment with business
                                interests and the sustainable development agenda.

                                Implementation at XLSMART
                                In practice, XLSMART consistently applies the principles of Environmental, Social, and Corporate
                                Governance (ESG) across all operational and strategic activities. The Company is committed to
                                minimizing its environmental footprint, promoting responsible resource management, and
                                advancing social empowerment through inclusive and impactful programs. XLSMART also ensures
  SUSTAINABILITY                that its governance systems reflect transparency, ethics, and accountability, reinforcing its
                                dedication to responsible business conduct. By embedding sustainability into its core operations,
                                XLSMART creates long-term value for stakeholders and contributes to a more resilient and
                                sustainable future.




                                The Company asserts that digitalization will stimulate business growth, enhance the efficiency of
                                existing processes, and ensure consistency and quality. Additionally, it will empower the
                                organization and its Board Members to adapt to ongoing disruptions in business models by
                                implementing modifications to its internal governance techniques, Board leadership, structure,
                                and processes.
     DIGITIZATION



The Company continuously refines its governance mechanisms to anticipate emerging risks, strengthen stakeholder
trust, and uphold its responsibility to society and the environment. Through these ongoing efforts, XLSMART ensures
business continuity and reinforces its leadership in responsible and sustainable telecommunications.

ACGS 2024 Assessment Result
96.82 reflecting the Company’s strong commitment to upholding the highest standards of governance,
transparency, and ethical conduct in all aspects of its operations.


                                                                     Item(s) Not
           Scorecard Level 1                   Total item                                  Items Adopted         Adoption Rate
                                                                     Applicable

 Part A                                            30                      3                    22                81.48%

 Part B                                            22                      0                     18               81.82%

 Part C                                            34                      0                     31                91.18%

 Part D                                            63                      0                     31                91.18%

 Total Score (Level 1 & 2)                                                         96.82

Note: Cut Off Date as of 30 June 2024




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Structure and Composition of
Sustainability Governance [GRI 2-9] [GRI 2-11]
XLSMART’s sustainability governance structure is designed to ensure clear accountability, effective oversight, and
smooth coordination across all levels of the organization. The governance framework comprises Main Organs and
Supporting Organs. Within this structure, the Company has established a dedicated Sustainability Unit responsible
for integrating Environmental, Social, and Governance (ESG) considerations into business strategies. Each organ
carries a distinct yet complementary roles, ensuring that sustainability principles are embedded in every key business
decision.




                        General Meeting of Shareholders




          Board of                                                     Board of
          Directors                                                  Commissioners



          President
          Director
                                             Risk                                Nominating             Board
                                                                Audit
                                         & Compliance                          & Remuneration        Investment
                                                              Committee
                                          Committee                              Committee           Committee
          Company
          Directors
                                   Corporate
                                   Secretary
          Board of
          Directors
         Committees
                                 Internal Audit



                                    Risk &
                                  Compliance




General Meeting of Shareholders
The General Meeting of Shareholders (GMS) functions as the highest decision-making body within the Company’s
governance structure. As the ownership organ, the GMS holds exclusive authorities not granted to the Board of
Commissioners or the Board of Directors, in accordance with the Articles of Association and prevailing laws and
regulations. Through this forum, Shareholders are given the opportunity to exercise their rights, express opinions,
and request information that supports transparency and accountability in the Company’s decision-making process.

Each year, the Company may convene two types of GMS: the Annual GMS and the Extraordinary GMS. The
mechanisms governing both types of meetings are regulated under the Company Law, the Articles of Association,
and OJK regulations. In 2025, XLSMART held its Annual GMS on 5 March 2025 and Extraordinary GMS on 5 March
2025, 12 August 2025, and 21 November 2025, during which several important resolutions were approved. Further
details regarding the 2025 GMS implementation are available presented in XLSMART’s official website and in the
2025 Annual Report, published as a separate document from this Sustainability Report.




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Board of Commissioners
The Board of Commissioners serves as the supervisory body of the Company, entrusted with overseeing management
performance and the consistent application of GCG principles. The Board of Commissioners is responsible for
monitoring the implementation of the Company’s strategies, evaluating reports submitted by the Board of Directors,
reviewing audit outcomes, and providing constructive guidance to ensure effective risk management and business
sustainability. To maintain objective and independent oversight, the Company has established a clear separation
between the roles of the Chairman of the Board and the CEO.

The Board of Commissioners also provides recommendations to Shareholders on key matters concerning the
Company’s direction and performance. To support its supervisory duties, the Board is assisted by three committees
under its purview: the Audit Committee, the Nomination and Remuneration Committee, and the Risk and Compliance
Committee. The Board of Commissioners performs its duties with independence and objectivity to ensure that all
decisions remain in the best interest of the Company.

Pursuant to the resolution of the Extraordinary General Meeting of Shareholders convened on 25 March 2025, the
shareholders approved the cessation of tenure of all members of the Board of Commissioners effective as of the
Merger Effective Date, and appointed new members of the Board of Commissioners. Accordingly, the composition
of the Board of Commissioners as of December 31, 2025 was as follows:

      Name                Position               Period             Term of Office             Legal Basis of Appointment
M. Arsjad Rasjid   President Commissioner     First Period   21 April 2025 until the closing   Resolution      of     the
P.M.                                                         of the Annual General             Extraordinary      General
                                                             Meeting of Shareholders in        Meeting of Shareholders
                                                             2029.                             dated 25 March 2025.
Vivek Sood             Commissioner          Fourth Period   21 April 2025 until the closing Resolution      of     the
                                                             of Annual General Meeting of Extraordinary         General
                                                             Shareholders 2029.              Meeting of Shareholders
                                                                                             dated 25 March 2025.
L. Krisnan Cahya       Commissioner           First Period   21 April 2025 until the closing Resolution      of     the
                                                             of Annual General Meeting of Extraordinary         General
                                                             Shareholders 2029.              Meeting of Shareholders
                                                                                             dated 25 March 2025.
Nik Rizal Kamil        Commissioner          Second Period   21 April 2025 until the closing Resolution      of     the
                                                             of Annual General Meeting of Extraordinary         General
                                                             Shareholders 2029.              Meeting of Shareholders
                                                                                             dated 25 March 2025.
Sean Guek              Commissioner           First Period   21 April 2025 until the closing Resolution      of     the
                                                             of Annual General Meeting of Extraordinary         General
                                                             Shareholders 2029.              Meeting of Shareholders
                                                                                             dated 25 March 2025.
David R. Dean          Commissioner           First Period   21 April 2025 until the closing Resolution      of     the
                                                             of Annual General Meeting of Extraordinary         General
                                                             Shareholders 2029.              Meeting of Shareholders
                                                                                             dated 25 March 2025.
Retno Marsudi           Independent           First Period   21 April 2025 until the closing Resolution      of     the
                       Commissioner                          of Annual General Meeting of Extraordinary         General
                                                             Shareholders 2029.              Meeting of Shareholders
                                                                                             dated 25 March 2025.
Robert Pakpahan         Independent           First Period   21 April 2025 until the closing Resolution      of     the
                       Commissioner                          of Annual General Meeting of Extraordinary         General
                                                             Shareholders 2029.              Meeting of Shareholders
                                                                                             dated 25 March 2025.
Willem Lucas            Independent           First Period   21 April 2025 until the closing Resolution      of     the
Timmermans             Commissioner                          of Annual General Meeting of Extraordinary         General
                                                             Shareholders 2029.              Meeting of Shareholders
                                                                                             dated 25 March 2025.




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Board of Directors
The Board of Directors is responsible for leading the Company’s management and ensuring that all operational
activities are carried out in accordance with good governance principles, the Articles of Association, and applicable
laws and regulations. As the executive organ, the Board of Directors represents the Company both inside and outside
of legal proceedings and ensures the effective implementation of strategies that drive growth, innovation, and
sustainability.

The Board of Directors consists of six members, led by a President Director who coordinates and oversees the
execution of duties across all Directorates. In fulfilling its responsibilities, the Board determines the Company’s
direction and sustainability strategies, manages potential social, economic, and environmental impacts, and
oversees climate-related actions. The Board is supported by several key committees and key functions, including
the Information Technology Committee, Risk Management and Business Continuity Committee, People Committee,
Gifts, Donations and Sponsorships Committee, Ethics and Integrity Committee, Corporate Secretary, Internal Audit,
and Risk & Compliance functions.

Pursuant to the resolution of the Extraordinary General Meeting of Shareholders held on 12 August 2025, shareholders
approved the cessation of tenure of all members of the Board of Directors effective as of the Merger Effective Date,
and appointed the new members of the Board of Directors. Accordingly, the composition of the Board of Directors as
of 31 December 2025 was as follows:

      Name                  Position                  Period              Term of Office             Legal Basis of Appointment
Rajeev Sethi          President Director &          First Period   16 April 2025 until the closing   Resolution of the Annual
                     Chief Executive Officer                       of the Annual General             General     Meeting      of
                             (CEO)                                 Meeting of Shareholders           Shareholders dated 25 March
                                                                   2029.                             2025.
Antony Susilo       Director & Chief Financial      First Period   16 April 2025 until the closing   Resolution      of     the
                             Officer                               of the Annual General             Extraordinary      General
                                                                   Meeting of Shareholders           Meeting of Shareholders
                                                                   2029.                             dated 25 March 2025.
David Arcelus          Director & Chief           Second Period    16 April 2025 until the closing   Resolution      of     the
Oses                  Commercial Officer                           of the Annual General             Extraordinary      General
                                                                   Meeting of Shareholders           Meeting of Shareholders
                                                                   2029.                             dated 25 March 2025.
Andrijanto              Director & Chief            First Period   16 April 2025 until the closing   Resolution      of     the
Muljono              Enterprise & Strategic                        of the Annual General             Extraordinary      General
                      Relationship Officer                         Meeting of Shareholders           Meeting of Shareholders
                                                                   2029.                             dated 25 March 2025.
Feiruz Ikhwan         Director & Strategy &       Second Period    16 April 2025 until the closing   Resolution      of     the
                     Home Business Officer                         of the Annual General             Extraordinary      General
                                                                   Meeting of Shareholders           Meeting of Shareholders
                                                                   2029.                             dated 25 March 2025.
Shurish                 Director & Chief            First Period   16 April 2025 until the closing   Resolution      of     the
Subbramaniam           Technology Officer                          of the Annual General             Extraordinary      General
                                                                   Meeting of Shareholders           Meeting of Shareholders
                                                                   2029.                             dated 25 March 2025.
Yessie D. Yosetya       Director & Chief           Third Period    16 April 2025 until the closing   Resolution      of     the
                    Information Technology                         of the Annual General             Extraordinary      General
                            Officer                                Meeting of Shareholders           Meeting of Shareholders
                                                                   2029.                             dated 25 March 2025.
Merza Fachys            Director & Chief         First Period      16 April 2025 until the closing   Resolution      of     the
                       Regulatory Officer                          of the Annual General             Extraordinary      General
                                                                   Meeting of Shareholders           Meeting of Shareholders
                                                                   2029.                             dated 25 March 2025.
Jeremiah Ratadhi     Director & Chief People     First Period      16 April 2025 until the closing   Resolution      of     the
                             Officer                               of the Annual General             Extraordinary      General
                                                                   Meeting of Shareholders           Meeting of Shareholders
                                                                   2029.                             dated 25 March 2025.
Sanjay Vaghasia          Director & Chief        First Period      12 August 2025 until the          Resolution       of     the
                       Integration Officer                         closing of the Annual General     Extraordinary       General
                                                                   Meeting of Shareholders           Meeting of Shareholders
                                                                   2029.                             dated 12 August 2025.




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                                 Governance




The Roles of XLSMART’s Governance
Body in Impact Management [GRI 2-12] [GRI 2-13]
[GRI 2-14]


At XLSMART, sustainability governance is built on collective leadership and shared accountability. The governance
body ensures that sustainability impacts are systematically identified, managed, and embedded into corporate
decision-making. Through this structure, the Company aligns its strategies with long-term sustainability
commitments while creating value for all stakeholders.

The Board of Commissioners oversees the overall direction of sustainability impact management, ensuring that
policies and initiatives comply with regulatory requirements and reflect stakeholder priorities. The Board of Directors
translates this oversight into strategic actions through policy development, target setting, and resource allocation
that advance XLSMART’s key sustainable priorities including climate action, circular economy, and social impact.

To support effective execution, both Boards work closely with the Sustainability Unit and cross-functional teams to
assess the Company’s actual and potential impacts. These assessments inform the prioritization of material topics,
guide target setting, and ensure that identified impacts are addressed through measurable initiatives and continuous
performance monitoring.

In implementing sustainability governance, the Boards delegate day-to-day responsibility for managing
sustainability impacts to the Head of Sustainability, who reports to the Group Head of Corporate Communications
and Sustainability. The Head of Sustainability is responsible for:
1. Strengthening the monitoring of sustainability performance;
2. Designing strategic initiatives and evaluating their impacts;
3. Ensuring stakeholder engagement as a key component in assessing sustainability achievements.

The specific roles within XLSMART’s governance body in managing sustainability impacts are as follows:




                                                    Climate Change and Decarbonisation Strategist
                                                Ensures environmental performance across the Company by carrying out
                                                     data monitoring, reporting and verification, developing the net-zero
                                                           roadmap, and integrating corporate sustainability strategies.


                                                           Social Impact and Governance Coordinator
                                                        Oversees the collection and monitoring of social and governance
                                                                data, and coordinates sustainability-related events and
                                                                                            communication campaigns.




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Performance Assessments of
Governance Body [GRI 2-18] [G-04]
XLSMART conducts periodic evaluations of the              Meanwhile, the collective performance of the Board
performance of both the Board of Commissioners and        of Directors is reviewed by the GMS based on the
the Board of Directors. The assessments cover strategic   accountability report on the Company’s management,
leadership, compliance, risk management, and              which includes financial, operational, and sustainability
sustainability performance. The results form the basis    results. Based on this evaluation, the GMS grants
for strengthening governance practices and enhancing      acquit et de charge to the Board of Directors for its
accountability reflecting the Company’s commitment        management throughout the financial year.
to continuous improvement and transparent leadership.
                                                          In 2025, the Company carried out an independent self-
Performance Assessment Mechanism for the                  assessment of the Board of Directors. A quantitative
Board of Commissioners                                    approach was employed for the evaluation,
XLSMART applies two complementary mechanisms to           utilizing structured questionnaires completed by
assess the performance of the Board of Commissioners,     all Board members, as well as peer assessments
namely through the GMS and a self-assessment              conducted among them. The evaluation covered
process. The Company adopts a structured and              Board effectiveness, peer reviews, and cross-Board
quantitative approach to performance measurement,         assessments.
ensuring objectivity and transparency in the evaluation
process.                                                  The focus of the evaluation was to clarify roles, duties,
                                                          and responsibilities, while assessing compliance with the
The GMS evaluates the collective performance of           GCGprinciples. The results provide recommendations
the Board of Commissioners during the reporting           for strengthening GCG practices and are taken into
year based on the supervisory accountability report       consideration in the reappointment of individual Board
presented at the Annual GMS. The outcome of this          members.
assessment forms the basis for granting full release
and discharge of responsibility (acquit et de charge)     Assessments Results of the Governance Body
to the Board of Commissioners for the execution of its    In 2025, XLSMART conducted an independent
supervisory duties throughout the financial year.         assessment of the performance of both the Board
                                                          of Commissioners and the Board of Directors.
On the other hand, the self-assessment process was        The assessment evaluated both of the Boards’
coordinated and reviewed by the Nominating and            understanding of their roles, duties, and responsibilities,
Remuneration Committee, in accordance with its            as well as their implementation of GCG principles.
mandate to oversee the performance evaluation of
the Board of Commissioners. The assessment was            Based on the 2025 self-assessment, the Board of
conducted using a quantitative approach, with data        Commissioners effectively performed its supervisory
collected through structured questionnaires distributed   and advisory functions in accordance with prevailing
to each member of the Board of Commissioners, its         laws, regulations, and corporate governance
Committees, and the Board of Directors as part of the     standards. The Board demonstrated a high level of
cross-evaluation process.                                 integrity, competence, and commitment in overseeing
                                                          the Company’s management and ensuring alignment
Assessment Mechanism of Performance of the                with XLSMART’s strategic objectives and GCG
Board of Directors                                        principles.
The Board of Directors is evaluated on both individual
and collective bases through self-assessment and by the   The Board of Directors’ assessment also resulted in
Nomination and Remuneration Committee. Individual         positive results. Based on the evaluation, the Board
assessments refer to the agreed Key Performance           of Directors has satisfactorily fulfilled its duties
Indicators (KPI), which cover both financial and non-     and responsibilities in accordance with applicable
financial aspects, including sustainability targets,      regulations and relevant standards.
operational achievements, and risk management
effectiveness.




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                                 Governance




The Board of Commissioners and Directors were also          Attendance at Board Meetings
assessed on their implementation of sustainability          As part of its performance evaluation process,
aspects, in line with the established KPIs and strategic    XLSMART monitors the attendance and participation
objectives. Insights from this assessment provided          of the Board of Commissioners and the Board of
valuable input for the continuous improvement               Directors in meetings throughout the year. This serves
of sustainability governance practices and serve            as an indicator of their active engagement and their
as considerations in future appointments or                 commitment to providing effective governance
reappointments of the Board members.                        oversight.

Assessment of the Head of the Sustainability Unit           Meetings of the Board            of   Directors    and
In addition to evaluating the performance of the Boards,    Commissioners [G-02]
XLSMART also conducts a dedicated assessment of             Throughout 2025, the Board of Commissioners held 18
the Head of Sustainability to measure the effectiveness     meetings, including 4 Joint Meetings held together with
of sustainability strategy implementation across            the Board of Directors. Details regarding the frequency
the organization. The evaluation focuses on the             of meetings, attendance by the Board of Directors
achievement of sustainability goals, the quality of         and the Board of Commissioners, the agenda, and
stakeholder engagement, and the tangible impact of          other details concerning the meetings of the Board of
programs on beneficiaries.                                  Directors and the Board of Commissioners can be found
                                                            in the Company’s Company’s Annual Report.
Performance reviews are conducted through the Risk
Management and Business Continuity Committee                As part of the performance evaluation process,
(RBCC) and the Board Risk & Compliance Committee            XLSMART monitors the attendance and participation of
(BRCC), which act as the highest governing bodies           the Board of Commissioners and the Board of Directors
overseeing sustainability performance. Both committees      in meetings held throughout the year. This serves as an
conduct quarterly reviews of ESG performance reports        indicator of their active involvement and commitment
to ensure data accuracy, consistency, and reliability. At   to conducting effective governance oversight. Where
the end of each year, the consolidated ESG performance      appropriate, the scope of the evaluation is expanded
report is reviewed and evaluated to identify progress,      to include material topics, such as carbon emissions,
challenges, and opportunities for improvement. The          climate change, labor practices, waste management,
results of these reviews serve as an important reference    as well as data privacy and security, in accordance with
for enhancing sustainability governance, strengthening      the results of the Company’s Materiality Assessment.
data reliability, and refining the Company’s future
sustainability targets and initiatives.                     Throughout 2025, the Board of Commissioners held 18
                                                            (eighteen) meetings, along with 4 (four) Joint Meetings
When relevant, the scope of evaluation is expanded          held together with the Board of Directors.
to include material topics such as carbon emissions,
climate change, employment practices, waste
management, and data privacy and security,
as identified through the Company’s Materiality
Assessment.




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Nomination and Selection of
Governance Body [GRI 2-10] [G-06]
XLSMART is committed to appointing leaders who                 decision-making. The Company’s highest governing
embody integrity, professionalism, and accountability.         bodies also uphold independence and remain free from
The nomination and selection of members of the Board           conflicts of interest.
of Commissioners and Board of Directors are carried
out transparently, and in accordance with applicable           Meanwhile, the nomination of the Board of Directors
regulations and Company policies. XLSMART                      follows the Succession Policy, which aims to ensure
evaluates candidates based on expertise, experience,           leadership continuity and smooth business succession.
ethical conduct, and alignment with the Company’s              This policy encourages potential successors to
sustainability vision to ensure that each Board member         participate in self-development and professional
contributes meaningfully to responsible and effective          training programs, including team-based problem-
governance.                                                    solving initiatives. The Nomination and Remuneration
                                                               Committee plays a central role in the nomination
The nomination of the Company’s executive members              process, while the Board of Directors may also identify
is governed by the Senior Executive Nomination                 potential successors from within the organization,
Policy. In line with this policy, Shareholders and/or          including those in the Talent Pool.
Minority Shareholders may propose candidates for the
Board of Commissioners, after which the proposals              The appointment procedures for Director candidates
are submitted to the Nomination and Remuneration               are regulated under the Nomination Policy and
Committee through the Corporate Secretary for further          comply with the Company Law and other applicable
review.                                                        regulations. The Company periodically reviews Director
                                                               candidates through internal assessment panels or
The Nomination and Remuneration Committee                      by engaging independent third-party to assess their
evaluates the proposed candidates in its meetings to           competencies.
ensure that they meet all required criteria, qualifications,
and professional standards before being submitted              In appointing the Head of the Sustainability Unit, the
to the GMS for approval. The Company applies the               Company refers to the qualifications outlined in the
requirements stipulated in POJK No. 33/POJK.04/2014            Recruitment Policy to ensure that the selected candidate
regarding the appointment of members of the Board of           has the expertise required to lead the Company’s
Commissioners.                                                 sustainability initiatives effectively.

In determining nominations, the Company also                   To further strengthen the integrity of the nomination
considers the results of organizational needs                  and selection process, XLSMART ensures that diversity
assessments to ensure an optimal composition in terms          and independence remain core considerations when
of expertise and background. The Company values                forming the composition of its governing bodies. The
Board diversity, recognizing that a mix of different skills,   Company believes that balanced representation across
perspectives, and experiences contributes to stronger          gender, experience, and independent viewpoints
strategic direction, effective oversight, and high-quality     enhances governance quality and supports inclusive,
                                                               accountable decision-making.



Board Diversity and Independence [G-01]
          Management Level                       Male              Female           Number of Independent Personnel
Board of Commissioners                           88%                 12%                          33%
Board of Directors                               90%                10%                             -




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                                Governance




Remuneration Policy and Process
[GRI 2-19] [GRI 2-20]


XLSMART’s remuneration policy is designed to                  stipulated in the Company’s Remuneration Policy for
attract, motivate, and retain competent leaders               the applicable financial year.
who drive sustainable long-term sustainable value         •   The Board of Commissioners is authorized to
creation. The policy and process emphasize fairness,          determine the salary, bonuses, and other benefits
competitiveness, and accountability, while aligning           for members of the Board of Directors, based on
executive rewards with corporate performance,                 the same principles and within the framework of the
individual contribution, and the Company’s ethical and        Company’s Remuneration Policy for the relevant
sustainability commitments.                                   financial year.

Remuneration of the Board of Commissioners                In determining remuneration, the Company takes
and Board of Directors                                    into account several key considerations, including
XLSMART       recognizes   that  a     well-structured    corporate performance, individual performance
remuneration framework supports business continuity       targets, industry benchmarks, and non-monetary
and effective leadership. As part of its responsibility   benefits. The overall remuneration structure is reviewed
to internal stakeholders, the Company ensures that        regularly to ensure its competitiveness and alignment
remuneration encourages the Board to formulate            with market conditions.
and deliver strategies that advance sustainable
relationships between the Company, the environment,       The Board of Commissioners is responsible for
and the community.                                        overseeing the implementation of the Remuneration
                                                          Policy and periodically evaluating its effectiveness
                                                          to ensure that it continues to support the Company’s
                                                          strategic objectives and uphold principles of fairness,
                        GMS
                                                          transparency, and accountability.

                                                          Remuneration Structure of the Board                   of
   Authority to
                                       Authority to
                                                          Commissioners and Board of Directors
  Nominating &                                            The remuneration structure for the Board of
                                       the Board of
  Remuneration
   Committee
                                      Commissioners       Commissioners and Board of Directors is governed
                                                          by the Remuneration Policy for Senior Executives. It
                                                          comprises the following components:
                   Recommendations
                     of Nominating                        1. Basic Salary
                    & Remuneration                        2. Benefits
                      Committee                           3. Bonus (applicable solely to members of the Board of
                                                             Directors)
Determination of                       Determination
    Board of                            of Board of       Remuneration of the Sustainability Unit
Commissioners                            Directors
                                                          XLSMART maintains a competitive and equitable
    salaries                              salaries
                                                          remuneration system for all employees, including the
                                                          Head of Sustainability, who is responsible for leading
                                                          the implementation of the Company’s sustainability
The remuneration for members of the Board of              strategies. The remuneration scheme for this position
Commissioners and the Board of Directors is determined    follows the same structure applied to other employees
through the GMS, based on the recommendations and         at equivalent levels, ensuring fairness, consistency, and
authority granted to the relevant governance bodies.      recognition of the strategic importance of the role.

The procedure is outlined as follows:                     Annual Compensation Ratio [GRI 2-21]
• The Nomination and Remuneration Committee               XLSMART ensures fair and competitive remuneration
   is granted the authority to determine the salary,      across all employee levels through a structured and
   bonuses, and other benefits for members of the         transparent process. The Company upholds the
   Board of Commissioners, in accordance with the         principle of equal pay for equal work, with compensation
   structure, policy, and amount of remuneration          determined based on role, performance, and prevailing


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market benchmarks. Regular reviews are conducted to maintain alignment with industry standards, business
outcomes, and applicable labour regulations, reinforcing accountability, equity, and the Company’s commitment to
sustainable talent management.

Information regarding aggregate remuneration amounts for the Board of Commissioners, Board of Directors, and
Head of the Sustainability Unit is not disclosed due to confidentiality policies. While sustainability performance
indicators are incorporated qualitatively into managerial assessments, the linkage between ESG performance and
remuneration is currently being refined to ensure stronger alignment with the Company’s sustainability objectives.
Remuneration structures are periodically reviewed and benchmarked against industry practices to ensure
competitiveness and continued alignment with the Company’s performance and sustainability commitments.




Sustainability Training and Competency
Development Program [E.2] [GRI 2-17] [G-05]
XLSMART believes that strengthening sustainability governance begins with continuous learning and capacity
building. The Company ensures that members of the Board of Commissioners, Board of Directors, and sustainability-
related functions have access to development programs that enhance their knowledge, skills, and awareness of ESG
issues relevant to their responsibilities.

Each member of the Board of Commissioners and Board of Directors is encouraged to pursue ongoing professional
development through seminars, workshops, and industry events related to governance, sustainability, and
telecommunications. This commitment to continuous learning is reflected in the Company’s Board Manual, which
outlines the requirement for regular competency enhancement to support effective oversight and strategic decision-
making.

In parallel, XLSMART strengthens the competencies of its Sustainability Unit and cross-functional teams through
targeted training programs. These include courses, certifications, and learning sessions focused on sustainability
reporting, climate action, human rights, circular economy, and other emerging ESG topics. Throughout 2025, the
Company facilitated various sustainability-related trainings and professional development activities as follows:

  Name of
                                 Training Name                           Place/Date                   Organizer
 Participant
Ratu Maulia    Setting Science-Based Targets                        29 June 2025            UN Global Compact Academy
Ommaya         E-waste     Policy   and      Extended     Producer 16-17 September 2025     International
Firhah         Responsibility (EPR)                                                         Telecommunication Union
               1.0 Welcome to GHG Accounting: Scope 1, 2, and 3 29 October 2025             UN Global Compact Academy
               Emissions
               The Net-Zero Standard                                29 October 2025         UN Global Compact Academy
Asril Praboe   The Net-Zero Standard                                4 September 2025        UN Global Compact Academy
Anom           How to understand and take action on the Global 6 September 2025             UN Global Compact Academy
               Goals
               Developing an integrated health, environment and 9 September 2025            UN Global Compact Academy
               climate strategy for your company
               Gender Equality: How Business Can Accelerate The 24 September 2025           UN Global Compact Academy
               Pace of Change
               1.1 Accounting for your Scope 1, 2 and 3 Emissions   30 October 2025         UN Global Compact Academy
Adiba Putri    Setting Science-Based Targets                        29 June 2025            UN Global Compact Academy
Rahmahakim     1.0 Welcome to GHG Accounting: Scope 1, 2, and 3 24 October 2025             UN Global Compact Academy
               Emissions
               The Net-Zero Standard                                30 October 2025         UN Global Compact Academy




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                                  Governance




Sustainability Unit [E.1]
To ensure sustainability is embedded throughout the organization, XLSMART has established a dedicated
Sustainability Unit under the Corporate Communications and Sustainability Department. The Unit plays a
strategic role in coordinating sustainability initiatives across business lines and ensuring alignment between ESG
commitments.

The Sustainability Unit operates under the supervision of the Board of Commissioners and the Board of Directors,
with direct leadership from the President Director & CEO. This structure ensures that sustainability considerations are
integrated into the Company’s business strategy and decision-making processes while maintaining independence
and preventing conflicts of interest.



                             President Director & CEO




                                                               Director and Chief Regulatory Officer




               Group Head Corporate Communications & Sustainability




                                                                      Head of Sustainability




               People reporting to Head of Sustainability:
               • Climate Change and Decarbonisation Strategist
               • Social Impact and Governance Coordinator




The members of XLSMART’s Sustainability Unit as of 31 December 2025 were as follows:
           Name                       Position               Term of Office              Legal Basis of Appointment
Merza Fachys                 Director    and      Chief   16 April 2025-present   Resolution of the Extraordinary General
                             Regulatory Officer                                   Meeting of Shareholders dated 25 March
                                                                                  2025
Reza Zahid Mirza             Group Head Corporate           15 October 2023-      Employee Appointment Announcement No.
                             Communications                      present          37/2023
Ratu Maulia Ommaya Firhah Head of Sustainability          9 March 2024-present Employee Appointment Announcement No.
                                                                               11/2024
Asril Praboe Anom            Sustainability               16 April 2025-present   No. 0722A-RM-XLS-IV-2025
Adiba Putri Rahmahakim       Social    Impact      &      23 April 2025-present   No. 0013-RM-XLS-IV-2025
                             Governance Coordinator




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Risk Assessment of Sustainability
Implementation [E.3]
As a company operating in a fast-moving                     To strengthen accountability and clarity in how risks
telecommunications landscape, our ability to                are managed across the organization, XLSMART
anticipate, understand, and respond to emerging risks       adopts the Three Lines Model. This structure defines
is what keeps us resilient and future-focused. We see       clear responsibilities for managing, overseeing, and
sustainability risk management as a way to align our        independently reviewing risks. The first line manages
pursuit of growth with our responsibilities toward the      risks within its business operations, the second line
environment, society, and good governance, ensuring         provides oversight and guidance, while the third line,
that profitability and purpose advance together.            through internal audit, ensures independent assurance.
                                                            Together, these lines create a unified framework that
Our approach is built on a strong governance foundation     reduces overlaps, fills potential gaps, and enhances
through the Enterprise Risk Management (ERM)                overall consistency and transparency.
Framework, which integrates ISO 31000 principles.
Within this framework, sustainability considerations        Supporting this framework is the Risk and Control
are not treated as an afterthought, but embedded into       Self-Assessment (RCSA) process, which enables
strategic planning, investment decisions, and day-to-       each business unit to actively identify, evaluate, and
day operations. It enables us to map out climate-related    manage the risks most relevant to their activities. The
risks, both physical risks such as extreme weather          process encourages accountability at every level
affecting network infrastructure, and transition risks      and helps embed a culture where risk awareness and
such as policy shifts and market changes toward low-        sustainability are understood as shared responsibilities.
carbon technologies.
                                                            To ensure that risk decisions are data-driven and
Each risk is carefully assessed based on its likelihood     proportionate, XLSMART also applies a Risk Rating
and potential impact, followed by clear mitigation          Matrix, which helps categorize and prioritize risks,
measures that ensure business continuity. XLSMART’s         ensuring that each one is assessed accurately and
process begins by defining risk appetite and tolerance,     managed effectively. It serves as a practical tool for
which guides how we prioritize and respond to               setting risk tolerance levels and for ensuring that
potential disruptions. Among the risks that we              our mitigation strategies are aligned with corporate
consistently monitor and supervise are capital and debt     priorities. When a risk exceeds the defined threshold,
requirements as part of the sustainable financial action.   it is immediately escalated to senior management and
The Company has established a policy on capital             reviewed through the Risk-Based Control Committee
and debt structure to ensure the strategies regarding       (RBCC) to determine the most appropriate course of
those aspects are in line with the Company’s strategic      action.
objectives and risk appetite. Oversight from our Board
of Commissioners and Board of Directors ensures that        This integrated and forward-looking approach to risk
every major decision reflects both market realities and     management allows XLSMART to remain both resilient
our risk appetite, strengthening the Company’s ability      and adaptive in a rapidly changing environment. It not
to adapt and thrive responsibly.                            only safeguards the Company from uncertainty but
                                                            also positions us to anticipate opportunities arising
                                                            from technological advancement and sustainable
                                                            innovation.




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                                   Governance




Guided by this approach, XLSMART has identified several key sustainability risks in 2025 that require focused,
proactive, and continual management, namely:

      Risk                                                          Description
Strategic and       Risks that may significantly affect the Company’s strategic activities, decision-making processes, and
Investment Risk     achievement of business objectives. These risks are monitored by the Senior Leadership Team (SLT) as part
                    of the strategic planning and review process.
Financial Risk      Risks related to the Company’s financial management and stability. These include treasury-related exposures
                    such as liquidity risk, foreign exchange risk, interest rate risk, and credit risk.
Operational Risk    Risks arising from the Company’s core business operations, including telecommunications services, digital
                    businesses, and infrastructure management. These risks may result from inadequate or failed internal
                    processes, people, systems, or external events that disrupt daily operations, including business continuity
                    risks.
Legal and           Risks related to compliance with applicable laws and regulations that may expose the Company to legal
Regulatory Risk     penalties or non-compliance with established policies and best practices. The Company monitors regulatory
                    developments, maintains strong engagement with regulators and industry associations, and integrates
                    regulatory requirements into its internal policies and procedures.
Market Risk         Risks arising from market conditions and the competitive landscape in which the Company operates,
                    including industry developments and macroeconomic factors. To mitigate these risks, the Company has
                    shifted part of its floating-rate debt to fixed-rate debt through the issuance of sukuk and bonds.
Geopolitical Risk   Risks associated with political changes or instability, including changes in government policies, legislative
                    decisions, or geopolitical developments that may affect investment returns or operational performance.
Governance Risk     Risks related to the implementation of good corporate governance practices. These may include non-
                    compliance with internal policies, procedures, or control mechanisms that could affect operational
                    effectiveness and accountability.
Technology Risk     Risks related to information technology infrastructure, data systems, or applications that may disrupt
                    business operations. These risks may arise from system failures, infrastructure disruptions, or technological
                    vulnerabilities. The Company continuously strengthens its network infrastructure by modernising systems,
                    increasing capacity, and enhancing reliability.
Cyber Risk          Risks arising from cyber threats, including cyber-attacks or data breaches that may disrupt operations or
                    compromise sensitive information. The Company continues to invest in information security technologies and
                    maintains ISO 27001 certification to support the protection of customer data.
People Risk         Risks associated with human capital management, including shortages in specialised or skilled positions,
                    competency gaps, and employee health and safety. The Company addresses these risks through
                    continuous talent development, recruitment of professional and young talents, and initiatives to strengthen
                    organisational capabilities.




Constraints, Challenges and
Opportunities in Sustainability
Implementation [E.5]
As XLSMART continues to strengthen its sustainability foundation, we acknowledge that advancing sustainability
implementation is a journey that involves both challenges and opportunities. The transition toward a more responsible
business approach brings challenges that are both technical and cultural.

Some of the constraints may stem from post-merger integration complexity, harmonisation of ESG data and
governance frameworks, evolving regulatory and stakeholder expectations, and the need to balance short-term
financial performance with long-term sustainability commitments. Nonetheless, these challenges also create
opportunities for innovation, capacity building, and more efficient resource utilization which support XLSMART’s
transition toward sustainable business practices.

To provide a structured overview, the table below outlines key areas that may represent potential constraints,
challenges, and opportunities identified during the implementation process:


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                                        Approaches to Overcome Obstacles /     Opportunities for Further Development
        Obstacles /Challenges
                                                    Challenges                  and Sustainability Implementation
Integration of networks, systems, Establishment of a structured cross- Stronger operational integration and
governance standards, and ESG functional        integration  monitoring sustainability standardisation
commitments following the merger  mechanism, strengthened governance
                                  harmonisation, and unified ESG data
                                  consolidation
Alignment of sustainability priorities Reassessment of Double Materiality Sharper focus on high-impact topics such
across legacy entities and evolving Assessment and embedding ESG into as Climate Impact, Data Privacy, Network
double materiality outcomes            strategic planning and Board oversight Resilience, and Employee Wellbeing
Increased regulatory, cybersecurity, and Strengthening risk management, ISO Positioning XLSMART as a trusted digital
data privacy expectations amid digital 27701          certification, enhanced operator with robust governance and
acceleration                             cybersecurity governance, and AI responsible technology deployment
                                         oversight framework
Environmental impact from large-scale Implementation        of      controlled Acceleration of circular economy
network    rationalisation and    site decommissioning protocols, engagement practices and structured Decarbonisation
dismantling                            of certified vendors, strengthened roadmap toward Net Zero 2050
                                       e-waste traceability mechanisms, and
                                       renewable energy adoption
Cultural integration and    employee Implementation of new corporate culture Development of a high-performing,
alignment post-merger                (i-CARE), harmonised KPI systems, and digitally skilled workforce capable of
                                     structured   employee     engagement driving sustainable innovation
                                     platforms




Management of Conflict of Interest
[GRI 2-15] [G-09]


XLSMART has established clear policies and procedures to prevent and manage conflicts of interest at all levels of
the organization. These measures are integral to the Company’s sustainability governance framework, ensuring that
decisions related to ESG matters are made objectively and in the best interest of stakeholders. By upholding fairness
and transparency in every aspect of governance, XLSMART reinforces accountability and trust as the foundation of
sustainable business conduct.

The Company’s Conflict of Interest Policy outlines the mechanisms to identify, disclose, and manage potential
conflicts that may arise in decision-making processes involving the Board of Commissioners, Board of Directors,
or other governing bodies. Members with a conflict of interest in any agenda item are required to abstain
from discussions and decision-making, and to formally declare their position through a signed statement of
independence. The Corporate Secretary is responsible for overseeing the implementation of this policy and ensure
consistent adherence across the organization.

Conforming with applicable regulations, XLSMART also refers to OJK Regulation No. 42/POJK.04/2020 concerning
Affiliate Transactions and Conflicts of Interest. Any transaction involving affiliated parties or deemed to contain
a potential conflict must be transparently disclosed and, where required, submitted for approval by the General
Meeting of Shareholders and reported to the relevant authorities.

To strengthen awareness of conflict management, the Company continuously communicates the policy and related
procedures to internal units, emphasizing their importance in maintaining governance integrity and long-term
business continuity. Throughout 2025, there were no identified cases of conflicts of interest involving cross-board
memberships, share ownership, affiliated transactions, or engagements with suppliers and other stakeholders.




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                                  Governance




Anti-Bribery and Anti-Corruption Policy
[F.1] [GRI 205-3] [ACGS B.4.5] [G-07]


Integrity is non-negotiable at XLSMART. The Company believes that long-term success must be built on honesty,
fairness, and transparency in every aspect of our operations. Guided by this principle, XLSMART enforces an Anti-
Bribery and Anti-Corruption (ABAC) Policy that establishes clear standards and expectations for all employees,
management, and business partners. [GRI 3-3]

The policy reflects XLSMART’s strong commitment to uphold the highest ethical standards, ensure fair treatment
of shareholders, and maintain compliance with applicable laws and regulations. It prohibits all forms of bribery,
including offering, receiving, or participating in activities that could be construed as corrupt practices. This prohibition
extends to all stakeholders, including the Board of Commissioners, Board of Directors, employees, business partners,
vendors, consultants, agencies, and distributors.

The governance of ABAC-related activities is managed under XLSMART’s Risk & Compliance (RC) Division and is
supported by a comprehensive framework, policies, procedures, and the Code of Conduct. To foster an open and
transparent culture, XLSMART provides the Speak Up Channel, a whistleblowing mechanism aligned with the Axiata
Group-wide system. Any retaliation or discrimination against individuals who report potential violations in good faith
is strictly prohibited.

XLSMART ensures that its anti-corruption policies and procedures are communicated across all levels of the
organization through continuous awareness programs, internal audits, and compliance reviews. Regular training
is also provided to reinforce understanding and accountability, empowering every employee to act ethically in all
situations. New employees whose roles are directly affected by ABAC are required to complete relevant training
within a prescribed period after joining XLSMART. All personnel must participate in mandatory ABAC training
programs, which are monitored for completion by the RC Division.

In 2025, XLSMART continued to strengthen its anti-corruption governance as part of the post-merger integration
process, aligning policies, procedures, and training modules across all entities under one unified standard. The
following table provides an overview of the Company’s anti-bribery and anti-corruption trainings:

                                                                      Total Participating Employees in Anti-
                           Training Name                                                                           %
                                                                      Bribery and Anti Corruption Trainings
Awareness & Socialization ISO 37001: 2016 Anti Bribery Management                     3,239                       100
System (ABMS)
ABAC & GDS Operational and VITAL system Hands on                                      3,239                       100



Communication on Anti-Corruption Policy & Procedures [GRI 205-2]
In 2025, XLSMART continued to communicate its anti-corruption policies and procedures to all employees and
key business partners. The communication and training sessions were conducted through both online and onsite
channels, ensuring equal access across regions and management levels. All employees and selected business
partners participated in anti-corruption awareness programs, reinforcing the Company’s commitment to ethical
conduct and zero tolerance for corruption.

The Company regularly assesses all business operations and high-risk functions for potential exposure to bribery
and corruption. In 2025, no operations were identified as having significant risks related to corruption, and there were
no confirmed incidents of bribery or corruption across the Company’s business activities. Reports and indications of
misconduct are managed through the Company’s established communication and reporting channels. [GRI 205-1]




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Stakeholder Relations [E.4] [GRI 2-29]
XLSMART recognises that sustainable performance is built on constructive and transparent engagement with
stakeholders. As a unified entity following the merger, XLSMART continues to strengthen relationships with both
internal and external stakeholders to ensure that business decisions reflect stakeholder expectations, regulatory
requirements, and long-term value creation.

Internally, the Company fosters a collaborative and inclusive work environment that respects employees as strategic
partners in delivering service excellence and innovation. Externally, XLSMART actively engages customers,
shareholders, regulators, suppliers, communities, and other relevant institutions to ensure that its operations
generate shared value while managing risks responsibly.

To enhance the quality of engagement, XLSMART conducts structured stakeholder mapping to identify stakeholders
who are most affected by, or have significant influence over, the Company’s operations. The mapping refers to the
AA1000 Stakeholder Engagement Standard (AA1000SES) 2015 issued by Accountability, using the elements of
Dependency (D), Responsibility (R), Tension (T), Influence (I), Diverse Perspective (DP), and Proximity (P).

Below is an overview of XLSMART’s key stakeholder groups and engagement mechanisms:

                   Assignment
  Stakeholder                           Engagement Methods                 Frequency                  Topics/Issues Covered
                      Base
 Customers           D, R, T, I     • Website      and     frontline   • At any time when       • Achieving service satisfaction
                                      information                        necessary              • Information on the latest
                                    • In-person visits                 • Once a year              products and services of the
                                    • Call Center Services                                        Company
                                    • Customer         Satisfaction                             • Obtaining solutions if there are
                                      Survey                                                      questions or complaints on
                                                                                                  products and services
                                                                                                • Obtaining an idea of customer
                                                                                                  satisfaction and dissatisfaction
                                                                                                  numbers
 Shareholders         D, R, I       GMS                                Once a year              The Company is able to achieve
                                                                                                targets in accordance with the
                                                                                                targets set in the previous GMS
 Regulators        D, R, T, I, DP   Submission    of    compliance     4 (four) times a year    Submitting     information     on
                                    reports                                                     regulatory compliance
 Employees           D, R, T, I     • Internal Media (Magazine)        • Once every 3           • Socialiation of policies and
                                    • Employee         Satisfaction      (three) months           strategies       relating     to
                                      Survey                           • Once a year              employment
                                    • Townhall meeting (using                                   • Measuring               employee
                                      hybrid method)                                              satisfaction rate and capture
                                                                                                  their ideas and aspirations
 Trade Unions        D, R, T, I     Discussion    of    Bipartite      • Once in three          Creating      a     vibrant  work
                                    Collective Labour Agreement          years                  environment to pursue a harmonious
                                    (Bipartite       Cooperation       • When necessary         bipartite relationship
                                    Institution)
 Suppliers            D, R, T       • Employment contract              If needed                • Transparent      procurement
                                    • Investment partners                                         process
                                    • Seminars and workshops                                    • Obtaining a mutually beneficial
                                                                                                  cooperation
 Non-D, R, T, I,   D, R, T, I, DP   Strategic cooperation to carry     When necessary           Optimising the impacts of the
 DP                                 out programs of Corporate                                   Company’s      CSR    program
 governmental                       Responsibility for both social                              implementation
 organizations                      and environmental aspects




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                   Assignment
     Stakeholder                         Engagement Methods                Frequency            Topics/Issues Covered
                      Base
 Media                T, I, DP       Publication of press releases     When necessary      • Accurate and trustworthy source
                                                                                             of information
                                                                                           • Fulfilling public information
                                                                                             disclosure
 Community          D, R, T, I, DP   Meeting during social or CSR      When necessary      XLSMART Tri Karsa
                                     activity implementation



Following the completion of the merger, XLSMART conducted a refreshed Double Materiality Assessment in 2025 to
ensure that the sustainability priorities of the unified entity reflect the combined operational footprint, risk exposure,
stakeholder landscape, and strategic direction of the post-merger organisation. The updated assessment was
necessary to:
• Integrate stakeholder perspectives from both legacy entities;
• Re-evaluate ESG risks and opportunities arising from the expanded network scale and digital ecosystem;
• Align sustainability priorities with evolving regulatory expectations and investor scrutiny; and
• Establish a unified materiality baseline for XLSMART going forward.

To ensure objectivity and methodological integrity, XLSMART engaged an independent third party to support
the assessment process. The resulting prioritised material topics and strategic focus areas now underpin the
Company’s post-merger sustainability direction and are elaborated in the chapter “Our Framework to Accelerating
Sustainability Journey” of this Sustainability Report.




Communication of Key Issues [GRI 2-16] [GRI 2-25]
[GRI 2-26]



The Company communicates key sustainability issues                   and partners through official briefings and leadership
through internal meetings, management reviews,                       communications. This transparent approach helped
and digital communication platforms to ensure that                   maintain trust, reduce uncertainty, and ensure that the
important updates and emerging concerns are shared                   transition aligned with XLSMART’s long-term vision for
across all relevant levels of the organization. Material or          responsible and sustainable growth.
urgent matters identified during these discussions are
escalated to senior management for review and follow-                In line with its commitment to openness and
up actions.                                                          accountability, XLSMART provides channels for
                                                                     employees and stakeholders to raise concerns,
In 2025, XLSMART also placed a strong emphasis                       share feedback, or communicate sustainability-
on open and consistent communication throughout                      related issues. These include formal and informal
its merger process, recognizing it as a significant                  communication platforms, as well as the Whistleblowing
governance milestone that shaped the Company’s                       System, which serves as an avenue for reporting
structure, culture, and sustainability priorities. Regular           suspected misconduct or violations of ethics and
updates were provided to employees, regulators,                      compliance standards.




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Whistleblowing System [GRI 2-26] [B.7.1-2]
To strengthen accountability and integrity, XLSMART           •    Substance abuse;
maintains a confidential and accessible whistleblowing        •    Theft and misuse of assets;
system. This mechanism allows employees and                   •    Workplace and people;
stakeholders to report any suspected violations of the        •    Retaliation from Speaking up.
Code of Conduct or unethical behaviour without fear
of retaliation. All reports are investigated fairly and       XLSMART upholds a strict non-retaliation policy to
independently, ensuring that corrective actions are           protect whistleblowers who submit reports in good
taken promptly and transparently.                             faith. Every report received through the Speak Up
                                                              Channel is directed to the Group Head of Internal Audit
The Company provides the Speak Up Channel as a                of PT XLSMART Telecom Sejahtera Tbk and reviewed
confidential platform for employees, outsourced staffs,       by the Investigation Unit under the Internal Audit
suppliers, business partners, contractors, customers,         Division, which determines the appropriate course of
and other stakeholders to report any suspected illegal        action. Where further examination is necessary, an
acts, unethical behaviour, or other forms of misconduct.      investigator will be appointed, who may be an internal
                                                              resource or an independent external party, depending
Reports can be submitted conveniently through                 on the nature and complexity of the case.
XLSMART’s dedicated email investigation@XLSMART.
co.id or telephone lines 081937701234. The Speak Up           Whistleblowers can monitor the progress of their
Channel welcomes disclosures related to a wide range          submissions and respond to follow-up questions by
of issues, including but not limited to:                      accessing the Speak Up Channel using their unique
• Accounting, internal controls, auditing, or IT;             case number and password. Should no additional
• Anti-competitive behavior;                                  information or evidence be provided within 14 days
• Breach of the Company’s policies or national laws;          when requested, the investigation process will be closed
• Bribery and corruption;                                     due to insufficient data.
• Data confidentiality or privacy;
• Conflict of interest;                                       In 2025, a total of 16 (sixteen) complaints were received
• Fraud and breach of trust;                                  through the whistleblowing channels or reported
• Gifts, entertainment, and hospitality;                      directly to the Investigation Unit. The status of these
• Harassment and sexual misconduct;                           cases is as follows:
• Health, Safety, Security, and the Environment;              • 8 (eight) cases have been resolved;
• Malpractice;                                                • 3 (three) cases were unsubstantiated; and
• Abuse of power/authority;                                   • 5 (five) cases remain under ongoing investigation.
• Money laundering;
• Social media and business communications;                   All substantiated cases resulted in appropriate
                                                              corrective actions. No retaliation cases were recorded.



Whistleblowing System Socialization
The Whistleblowing System has been continuously socialized to relevant XLSMART stakeholders through the
following communication channels:

         Target Audience                                          Socialization Channels
All XLSMART Employees          Employee portal, Email Blast, and Direct Socialization during Company Townhall
All Vendors & Partners         Vendor Portal
Public                         XLSMART Official Website




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The Implementation of Customer
Privacy Policy [GRI 418-1]
Safeguarding customer data and ensuring information security are integral to XLSMART’s governance practices.
The Company continues to adopt internationally recognized standards to strengthen its data protection framework.
XLSMART applies the ISO 27001 Information Security Management System (ISMS) as the foundation for securing
information assets and managing potential cybersecurity risks across its operations. Building on this framework, the
Company has achieved certification for the ISO 27701 Privacy Information Management System (PIMS), an extension
of ISO 27001 that governs the management of personal data privacy. This certification positioned XLSMART as the
first telecommunications company in Indonesia to achieve such recognition, reflecting its commitment to privacy
excellence and regulatory compliance. [GRI 3-3]

Following the completion of the merger, XLSMART is focused on establishing an integrated cybersecurity and data
protection framework that unites the strengths of both legacy systems. The Company is undertaking a comprehensive
harmonization of data governance policies, security protocols, and digital infrastructures to ensure consistent privacy
practices across all operational entities. This includes aligning data management procedures with the Personal Data
Protection (PDP) Law, strengthening access controls, and enhancing monitoring mechanisms to detect and respond
to potential threats more swiftly. These ongoing efforts are intended not only to maintain compliance but also to
enhance the Company’s ability to manage operational risks, safeguard critical assets, and strengthen technological
readiness in addressing increasingly complex cybersecurity challenges.

Throughout 2025, XLSMART continued to ensure that all data handling and processing activities complied with the
PDP Law and ISO 27701 standards. The Company also provided support to stakeholders in exercising their data
subject rights, reaffirming its commitment to transparency and accountability. According to the Company’s review
of customer data privacy protection in 2025, there were no recorded incidents or violations of the customer privacy
policy.




Code of Conduct [GRI 2-23] [GRI 2-24] [G-07]
The Code of Conduct serves as our ethical compass, guiding every employee and leader in their daily activities and
decision-making. It embodies our values of integrity, respect, and accountability. To strengthen governance and
uphold ethical business practices, the Board of Directors established the Ethics and Integrity Committee on June 30,
2020, which supports the Board by preventing, detecting, and responding to any potential fraud or misconduct.

The Code of Conduct is formally endorsed by the Board of Directors and serves as a mandatory reference for all
employees, contractors, and business partners. It is also reviewed periodically and communicated across the
organization to ensure consistent understanding and adherence. The key points of the Code of Conduct are:




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                           Equality of Treatment                Healthy Partnership
                         Non-discriminatory treatment             Build healthy business
                           of employees in a healthy          partnerships with third parties
                           work environment with the          by complying with XLSMART’s
                         application of integrity without         policies and applicable
                                   exception.                           regulations.




                                                                   Commitment to
                         Anti-Corruption Culture
                           Avoid conflicts of interest, do           Customers
                          not accept gratuities and apply         Holding a commitment
                         the principles of anti-corruption,      to customers by building
                             collusion, and nepotism.            a “Trustworthy” attitude
                                                                and providing appropriate
                                                                         solutions.



The Code of Conduct applies to all leaders and employees of the Company. To ensure consistent implementation, it is
regularly reviewed and communicated to ensure consistent understanding and adherence across the organization.
The Company ensures that its Code of Ethics is easily accessible to all employees through XLSMART Apps, the
internal corporate platform. New employees receive the Code during onboarding, and it is also publicly available
on the Company’s official website (https://www.xlsmart.co.id). In addition, the Company regularly circulates the
Integrity Fulfillment Statement, highlighting key ethical commitments such as anti-corruption, anti-collusion, and
anti-nepotism. Each employee is required to sign this Statement, which is then archived and managed by People
Directorate. In December 2025, the Company completed the distribution of the Integrity Fulfillment Statement, with
all employees having signed and acknowledged it.

Throughout 2025, the Ethics and Integrity Committee conducted reviews of investigation results and ensured that
appropriate disciplinary actions were implemented in accordance with the Company’s internal regulations and Code
of Ethics. In 2025, XLSMART recorded no violations of the Code of Ethics, demonstrating the strong commitment of
all employees to comply with the Company’s ethical standards.




Legal and Regulatory Compliance
[GRI 2-27] [GRI 419-1]


XLSMART maintains strict adherence to all applicable laws, regulations, and industry standards. In 2025, the
Company did not record any significant fines, sanctions, or instances of non-compliance related to environmental,
social, or governance matters.




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Environmental
 Stewardship




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                                       Stewardship



The establishment of XLSMART marked a significant           internal controls to ensure consistency with national
shift in how the Company manages and governs its            and global frameworks. As part of this governance
environmental responsibilities. The merger not only         enhancement, environmental and ESG responsibilities
combined networks, systems, and operational scale,          were embedded across procurement, network
but also brought together two legacy organizations          operations, and technology functions, reinforcing
with different levels of ESG maturity and reporting         shared accountability throughout the organization.
practices. This integration created a unique opportunity
to rebuild the Company’s environmental governance on        In parallel, XLSMART continued its participation in
a stronger, more cohesive foundation.                       selected global ESG assessments, including the S&P
                                                            Global Corporate Sustainability Assessment and
Prior to the merger, the Company had demonstrated           Sustainable Fitch, while intentionally limiting external
steady progress in reducing greenhouse gas (GHG)            submissions during the integration period to safeguard
emissions through network modernization, the                data accuracy and reliability. With governance
deployment of energy-efficient technologies, and            structures and integrated datasets now in place, the
renewable energy procurement via Renewable Energy           Company plans to re-engage with CDP beginning next
Certificates. The Company had also begun expanding          year and to expand its participation in international
visibility into Scope 3 emission categories, particularly   sustainability ratings, including Sustainalytics and Fitch
those related to purchased goods, services, and capital     ESG, as a fully unified entity.
equipment. These historical achievements now serve
as important reference points as XLSMART establishes        Through this foundational phase, XLSMART has
consolidated environmental baselines for the merged         established the systems, governance mechanisms,
entity.                                                     and data integrity required to support long-term
                                                            environmental performance. These advancements
Throughout 2024 and 2025, XLSMART focused on                position the Company to transition from integration to
harmonizing methodologies and aligning environmental        acceleration, enabling more ambitious Decarbonisation
data across its combined operations. Key efforts            initiatives, deeper value-chain engagement, and the
included consolidating monitoring systems, unifying         scaling of renewable energy and circular-economy
emission-calculation methods, and strengthening             initiatives across the merged network footprint.




Integrating Environmental Stewardship
into Our Operations [GRI 2-24]
Environmental stewardship at XLSMART is anchored in the Company’s Environmental Management Policy,
which is aligned with ISO 14001:2015 and ISO 45001:2018. This policy provides the framework for identifying,
managing, and monitoring environmental aspects and impacts across the organization, while clearly defining the
roles and responsibilities of management, operational teams, and contractors in ensuring regulatory compliance
and preventing environmental harm. As part of its environmental management initiatives, the Company fulfils its
regulatory commitments through the application of the following procedures: [GRI 3-3]




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                                                      Environmental
                                                    Aspect and Impact
                                                   Identification (IADL)
                      4R (Reduce,
                     Replace, Reuse                                                   Hygiene
                     and Recovery)                                                  Management




          Greening and
             Plant                                                                                Waste
          Maintenance                                                                           Management




                                                  Environmental
                                                   Management




In 2025, XLSMART strengthened its environmental               ENVIRONMENTAL COSTS [F.4]
management approach by consolidating monitoring
mechanisms across the merged entity and harmonizing           As a newly merged entity, 2025 marks the first year
operational requirements across business units. As            in which XLSMART consolidates environmental
part of this roadmap, the Company plans to enhance            expenditures across three legacy operational systems.
supervisory controls for contractors and field operations     Environmental costs cover a range of activities, including
starting in 2026 to further reinforce compliance and          waste management, environmental monitoring,
oversight across implementation activities. These             environmental impact management, energy efficiency
improvements were embedded into the planning                  initiatives, and compliance with national health, safety,
and execution of network modernization initiatives,           and environmental (HSE) regulations. This also includes
site upgrades, and expansion activities, ensuring the         activities related to Environmental Management and
consistent application of environmental safeguards            Environmental Monitoring (UKL/UPL), which constitute
across all business units.                                    regulatory environmental management and monitoring
                                                              obligations      under    Indonesia’s     environmental
As a telecommunications company with a nationwide             framework.
operational footprint, XLSMART recognizes that
environmental performance is closely linked to the            Throughout the year, XLSMART consolidated
design, operation, and maintenance of its digital             environmental expenditure reporting across the
infrastructure. The merger presents an opportunity            legacy entities and strengthened its internal recording
to reduce environmental impacts through the                   framework to ensure that environmental costs are
consolidation of overlapping sites, modernization             captured consistently across operational regions. The
of legacy equipment, and deployment of higher-                Company also standardized reporting procedures and
efficiency technologies across a unified network.             supporting documentation to improve transparency
The effectiveness of these initiatives is evaluated           and traceability of environmental expenditures.
through periodic audits, inspections, and performance         This integration process forms an important step in
monitoring, supporting continuous improvement                 establishing a unified environmental expenditure
and ensuring alignment with internal policies and             baseline for the merged organization.
applicable regulations.




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The consolidated environmental expenditure for 2025 amounted to Rp560,362,896, compared to Rp86,203,200
in 2024, which primarily covered UKL/UPL obligations and domestic waste management. The significant increase
mainly reflects higher UKL/UPL reporting fees and expanded waste management coverage following the
merger. UKL/UPL report fees increased significantly from Rp18,000,000 in 2024 to Rp364,500,000 in 2025 as
environmental management and monitoring activities were implemented across all operational regions. Domestic
waste management expenses also increased from Rp68,203,200 to Rp195,862,896 due to the addition of head
office and regional offices, which expanded the scope of waste management services.

While expenditure data from the legacy entities provide useful historical context, XLSMART has established 2025
as the baseline year for consolidated environmental expenditure, reflecting the scale and operational scope of
the merged organization. Accordingly, prior year figures should be interpreted with consideration of differences in
operational coverage.


  UKL/UPL Report Fee (Environmental
                                                                              Domestic Waste Management
  Management/Environmental Monitoring)

       2025                                                                     2025



     Rp364,500,000                                                            Rp195,862,896
       2024      Rp18,000,000                                                   2024       Rp68,203,200


  Total
       2025                                                                     2024



     Rp560,362,896                                                            Rp  86,203,200
     Note: 2024 figures reflect XL Axiata Legacy (pre-merger), while 2025 figures reflect XLSMART (post-merger). Figures may not be directly
     comparable with previous years.




Energy Consumption [GRI 302-1] [GRI 302-3] [OJK F.6] [OJK F.7]
Energy remains the largest contributor to XLSMART’s                          Insights from these evaluations guide the deployment
environmental footprint and is therefore a material focus                    of more energy-efficient equipment, site consolidation
of the Company’s environmental management efforts.                           measures,     renewable-energy     integration,   and
Following the merger, the scale of energy consumption                        operational controls that strengthen overall energy
expanded significantly, requiring the consolidation                          performance across the network. [GRI 3-3]
of monitoring systems, the standardization of
measurement methodologies, and the integration of                            Network Energy Optimization
energy-efficiency requirements into network planning                         XLSMART implements a range of initiatives to improve
and modernization initiatives. XLSMART evaluates                             energy efficiency across its telecommunications
energy performance through technical inspections,                            infrastructure, including:
centralized monitoring dashboards, and comparative                           1. Upgrading BTS equipment to more efficient
assessments across legacy networks to identify                                   technologies, achieving electricity savings of up to
inefficiencies and determine improvement priorities.                             50% compared with previous systems.
                                                                             2. Migrating legacy indoor BTS sites to outdoor
                                                                                 configurations     to   reduce      air-conditioning
                                                                                 requirements.




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3. Utilizing Single RAN BTS technology to consolidate                     Prior to the merger, XL Axiata was among the early
   multiple BTS systems into a single platform,                           adopters of Green BTS solutions, installing solar panels
   combined with Green BTS modernization using the                        at 252 locations. Based on historical performance
   latest technological devices, resulting in energy                      assessments, the application of CDC systems at BTS
   savings up to 50%.                                                     sites in non-electrified areas enabled an average
4. Decommissioning generators by disabling generator                      diesel-use reduction of 54%. These results reflect
   usage and shifting backup power functions entirely                     legacy XL Axiata performance and are currently being
   to battery systems.                                                    consolidated into a unified baseline as XLSMART
5. Expanding the use of solar panels and lithium battery                  harmonizes methodologies for its 2025 environmental
   solutions across network sites.                                        inventory.

RENEWABLE ENERGY DEPLOYMENT [GRI 302-4]                                   In addition, the Company’s collaboration with PT PLN
[GRI 302-5]                                                               (Persero) to supply renewable electricity through
                                                                          Renewable Energy Certificates (REC) continued in 2025.
Solar-energy utilization remains a strategic priority for                 The REC program verifies that electricity allocated to
XLSMART. Across the legacy XL Axiata and Smartfren                        BTS operations originates from renewable sources and
networks, hundreds of BTS sites had transitioned to                       reinforces XLSMART’s transition toward cleaner energy
solar-assisted or hybrid power systems prior to the                       use across its network. In 2025, XLSMART purchased a
merger. These installations continue to operate under                     total of 3,000,000 kWh of REC, contributing directly to
XLSMART and form the foundation for a broader                             the Company’s renewable-energy portfolio for the year.
renewable-energy transition. Solar and hybrid systems
help reduce diesel consumption at off-grid sites and
support the Company’s shift toward a low-carbon
operational model.



Energy Consumption within the Company [E-03]
    Energy                                        2025                               2024                                 2023
                         Energy
  Consumption                           Energy            Energy          Energy              Energy           Energy             Energy
                         Source
   Activities                         Consumption        Intensity      Consumption          Intensity       Consumption         Intensity
Renewable Energy
Solar Panel                            334,087 kWh                                     -                 -                 -                 -
                                         1,202.71 GJ                             -                       -                 -                 -
                                                             9.10 GJ/
REC                        PLN          3,000,000           Petabyte 1,000,000 kWh              0.34 GJ/                   -                 -
                                              kWh                                               Petabyte
                                          10,800 GJ                           3,600 GJ                                     -                 -
Non-renewable Energy
Energy                     PLN        1,282,346.871    3,642,917 GJ/    956,319,188.94           332 GJ/ 902,853,187.65               290 GJ/
consumption                                    kWh         Petabyte               kWh           Petabyte           kWh               Petabyte
for building lighting
                                       4,616,448.74                       3,442,742.87                       3,250,271.48 GJ
and operations
                                                 GJ                                 GJ
Energy                   Gasoline       312,322.00                          275,593.70                           228,001.34
consumption             (Pertalite)           Liter                               Liter                                Liter
for Gasoline
                                       10,376.00 GJ                         9,156.60 GJ                          7,797.65 GJ
Energy                    Diesel       1,030,365.97                        1,189,149.24                         1,393,829.51
consumption                                    Liter                               Liter                                Liter
for Solar (Diesel)
                                       37,216.82 GJ                       42,952.07 GJ                         47,668.97 GJ
Total Energy Use                      4,664,042.47                        3,498,457.75                         3,305,738 GJ
                                                GJ                                  GJ
Note:
· 2023 figures reflect XL Axiata legacy operations (pre-merger), while 2025 figures reflect XLSMART (post-merger). Smartfren data are primarily
   consolidated from April to December 2025 following the completion of the merger, with limited data available prior to the merger period.
   Accordingly, figures may not be directly comparable with previous years.
· Fuel consumption from liters is converted to gigajoules (GJ) using conversion factors from The Greenhouse Gas Protocol Initiative, 2004.
· Electricity consumption from kWh is converted to gigajoules (GJ) using conversion factors from The Greenhouse Gas Protocol Initiative, 2004.




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Reducing GHG Emission [GRI 305-1] [GRI 305-2] [GRI 305-3]
[GRI 305-4] [GRI 305-5] [OJK F.11] [E-01] [E-02]


XLSMART manages its GHG emissions through a structured process that includes identifying emission sources,
assessing materiality, setting reduction priorities, and implementing targeted mitigation measures. This framework
covers Scope 1, Scope 2, and Scope 3 emissions and is integrated into network planning, energy procurement, and
operational decision-making. Emissions performance is monitored regularly using harmonized methodologies
across the merged entity and reviewed to support continuous improvement in line with regulatory requirements and
the Company’s long-term Decarbonisation objectives. [GRI 3-3]

Starting in April 2025, GHG emissions data from Smartfren were integrated into the Company’s reporting system
following the completion of the merger. Accordingly, 2025 represents the first year of consolidated emissions
reporting. Smartfren data are primarily consolidated from April to December 2025 following the completion of the
merger, with limited data available prior to the merger period. A new baseline has therefore been established in 2025
to reflect the full operational scope of the merged entity. While prior-year data are presented for transparency, year-
on-year comparisons should consider changes in reporting boundaries and category coverage.

Scope of GHG Emission
                                                   2025                               2024                                 2023
                                                         Emission                           Emission                            Emission
   Scope of GHG                                        Intensity Per                      Intensity Per                       Intensity Per
                           Unit          Total                              Total                                Total
     Emission                                            Revenue                            Revenue                             Revenue
                                        Emission                           Emission                             Emission
                                                         TonCo2e/                           TonCo2e/                            TonCo2q/
                                                         Billion Rp                         Billion Rp                          Billion Rp
 Scope 1 (Direct        TonCO2eq        36,476.89            0.0817         4,082.53              118.71         4,255.54            131.66
 Emission)
 Scope 2 (Indirect                    988,304.73             23.254      744,398.86          21,644.54         695,828.95         21,527.36
 Emission)
 Scope 3* (Indirect                         477.17            0.0112        4,252.47             123.65          5,743.82           177.70
 Emission)
Note (*):
· 2024 data covered Category 4, 5, 6, 7, 9, and 13 of XL Axiata Legacy (pre-merger).
· 2025 data cover only Category 6 (Business Trips) and Category 7 (Employee Travel) while 2025 figures reflect XLSMART (post-merger). Figures
   may not be directly comparable with previous years.



The significant decrease in Scope 3 emissions in 2025 compared to prior years primarily reflects limited category
coverage during the integration phase rather than a structural reduction across the full Scope 3 value chain.

Scope 3 Emissions Breakdown [GRI 302-2]
In 2023 and 2024, the Company disclosed multiple Scope 3 categories, including upstream and downstream
transportation, waste generated from operations, business travel, employee travel, and leased assets. During the
2025 integration period, the Company prioritized the calculation and disclosure of two Scope 3 categories, namely
Category 6 (Business Trips) and Category 7 (Employee Travel), based on data availability and system readiness
across the merged entity.


                           Category                                         2025                     2024                     2023
 Category 6: Business Trips                                                357.48                    371.12                  596.05
 Category 7: Employee Travel                                                119.69                   1,128.3                 702.45
Note:
· 2024 and 2023 figures reflect XL Axiata Legacy (pre-merger), while 2025 figures reflect XLSMART (post-merger), with Smartfren data included
   from April–December 2025. Figures may not be directly comparable with previous years.
· 2024 Employee Travel figure used the employee survey with more granular data obtained.




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The Company plans to progressively expand Scope 3             These initiatives demonstrate how digital technology
category coverage in 2026 following the harmonization         can accelerate the adoption of electric mobility and
of data systems and operational reporting processes           support the development of cleaner, more efficient
across the merged entity.                                     transportation systems in Indonesia. XLSMART
                                                              continues to build on these foundations as part of
Supporting Low-Emission Ecosystems Through                    its long-term commitment to enabling low-carbon
Technology and Industry Partnerships [OJK F.12]               ecosystems. Several operational measures introduced
Beyond reducing emissions within its own operations,          prior to the merger also continued in 2025, including:
XLSMART continues to advance initiatives established          1. Development of a multi-platform Energy Monitoring
prior to the merger to support Indonesia’s broader                System to track and analyze energy consumption;
transition toward a low-emission ecosystem. The               2. Development of a real-time Network Monitoring
Company’s collaboration with Kadin Net Zero Hub,                  System to oversee operational performance,
initiated in November 2023, remains an important                  including site monitoring;
platform for industry-wide climate action and aligns          3. Implementation of smart energy management
with the national Decarbonisation agenda.                         initiatives, including Xinergis by X-Camp for real-
                                                                  time monitoring of electricity, water, and generator
Prior to the merger, the Company began advancing                  fuel consumption, and Powersense, an IoT-based
technology-driven climate solutions through strategic             system to optimize air conditioner energy use;
partnerships, which now form part of XLSMART’s                4. Expansion of solar panel installations as part of the
ongoing approach. These initiatives include:                      Company’s renewable energy initiatives;
• A strategic collaboration with Xanh SM to deploy            5. Procurement of renewable electricity through
    Internet of Things solutions that enhance the                 Renewable Energy Certificates (REC);
    performance and energy efficiency of electric             6. Implementation of internal campaigns to promote
    vehicle fleets, helping reduce transportation-related         energy efficiency and electricity savings among
    emissions and improve operational efficiency.                 employees.
• A partnership with PT Ide Inovatif Bangsa (Quest
    Motors) to integrate digital connectivity into electric
    motorcycle fleets, enabling real-time monitoring,
    route optimization, and more efficient energy use
    compared with vehicles powered by fossil fuels.




Waste Management [GRI 306-1] [GRI 306-2] [OJK F.14]
Telecommunication activities generate a wide range            Employee engagement remains a key enabler of
of waste streams, including hazardous (B3) and                effective waste management. Prior to the merger,
non-hazardous materials from network equipment,               XL Axiata implemented internal initiatives such as
batteries, lamps, electronic components, cooling              Sustainability Week, Waste Management Race,
systems, office operations, and field maintenance. The        and World Environment Day activations to promote
establishment of XLSMART in 2025 resulted in a larger         responsible waste segregation and reduction. These
and more complex operational footprint, requiring             programs continue under XLSMART and have been
waste to be managed under a unified and strengthened          expanded to reach employees across the merged
environmental standard.                                       operational    footprint.   Messaging      emphasizes
                                                              practical actions, including reducing single-use
XLSMART identifies waste-related impacts across its           plastics, minimizing paper consumption, accurate
operations, assesses risks associated with improper           waste segregation, and participation in internal-
storage or disposal, and implements mitigation                waste tracking initiatives within office and technical
measures through standardized handling procedures,            environments.
contractor supervision, and regulatory compliance
checks. Hazardous waste is collected, transported, and
processed exclusively by licensed third-party service
providers, while non-hazardous waste is minimized
through recycling initiatives, material substitution, and
internal awareness programs. [GRI 3-3]

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In 2025, a significant contributor to the Company’s        Through this approach, XLSMART ensured that the
waste generation was the large-scale dismantling of        dismantling of decommissioned BTS sites did not result
redundant base transceiver station (BTS) sites following   in uncontrolled accumulation of electronic waste or
network integration. This dismantling was necessary to     unmanaged hazardous materials. The process also
eliminate overlapping infrastructure, enhance energy       supports the Company’s broader resource-efficiency
efficiency, and modernize network architecture. The        objectives by maximizing material recovery and
process generated substantial volumes of electronic        reducing landfill disposal.
components, metals, batteries, cabling, and mixed
materials, all of which required strict environmental      This dismantling initiative aligns with XLSMART’s
controls.                                                  circular economy commitment, under which materials
                                                           are recovered, repurposed, and returned to productive
To mitigate environmental risks, XLSMART implemented       use whenever feasible. By extending the useful life of
a controlled dismantling protocol supported by             components, reducing dependence on virgin resources,
internationally certified vendors specializing in          and ensuring that residual waste is processed through
telecommunications equipment decommissioning               certified recycling channels, the Company embeds
and e-waste recovery. These vendors operate in             circularity into its network modernization activities and
accordance with ISO 14001 and ISO 45001 standards          reinforces a regenerative approach to infrastructure
and provide full traceability for both hazardous and       lifecycle management.
non-hazardous waste streams, from site removal
through transportation and final treatment. Reusable
components are extracted for refurbishment, while
non-recoverable materials are directed to licensed
recycling facilities to prevent improper disposal and
environmental leakage.




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Total Waste Generated from Operations [OJK F.13] [GRI 306-3] [GRI 306-4] [GRI 306-5] [E-05]
                                  Descriptions                                        Unit             2025                2024
Disposable                                                                            Ton              24.48                20.01
Recycled/Reused                                                                       Ton               73.29                77.10
Hazardous Waste*                                                                      Ton                3.04                 8.67
Wet Waste                                                                             Ton                  2.1                1.05
Dry Waste                                                                             Ton               18.27                 1.34
Electronic Waste (Electronic Equipment, Passive Equipment, Iron and                   Ton               N/A*               186.22
Cable)
Note (*):
· Other than hazardous waste, 2024 figures reflect XL Axiata Legacy (pre-merger), while 2025 figures reflect XLSMART (post-merger), with
   Smartfren data included from April–December 2025. Figures may not be directly comparable with previous years.
· Figures of hazardous waste represent XL Axiata Legacy only.
· The appointment of a certified e-waste management vendor for e-waste generated from network dismantling activities was finalized in Q4
   2025. As measurement commenced in Q4, comprehensive data collection and reporting will begin in 2026.



DOMESTIC WASTE MANAGEMENT [OJK F.14]

Domestic waste from XLSMART’s daily operations primarily consists of organic waste from office activities and
inorganic materials such as plastic, paper, cardboard, metal scraps, broken glass, and packaging materials.
Although non-hazardous, this waste requires structured handling to maintain operational efficiency and prevent
unnecessary environmental burden.

Most domestic waste is recycled through licensed third-party waste management operators, while certain fractions
are repurposed into alternative fuel, compost, or animal feed, thereby reducing the amount of waste sent to landfills.
All waste-handling procedures comply with the requirements of ISO 14001:2015 and ISO 45001:2018, and are
routinely monitored to ensure proper segregation, recording, and disposal.




             No Plastic Zone at                         E-Waste Management                             Smart Digitalization
              Workplace Care

       by providing reusable cutlery                 by recycling IT and Network                  by introducing e-Business Card
           packs for employees                      waste through a licensed third                 Solution to reduce printing of
                                                                party                                      business cards




Resources Use & Efficiency [OJK F.14]
Resource efficiency is embedded into XLSMART’s operational philosophy through the adoption of digital processes,
environmentally responsible procurement, and the optimization of material use. The increased use of eSIM
technology, the deployment of fiber-optic infrastructure in place of copper, and the prioritization of certified raw
materials reflect the Company’s commitment to reducing material intensity and supporting circular practices.
XLSMART also promotes employee awareness by encouraging the use of reusable products, minimizing paper
printing, and transitioning operational materials to recycled or eco-certified alternatives. These efforts contribute to
lower resource consumption and a more sustainable operating environment.




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                                            Stewardship




                         ·   Utilizing COUPA as an integrated digital procurement system to reduce paper waste and support
                             the Go Green initiative.
                         ·   Providing environmentally certified raw materials, such as the use of FSC or PEFC certified paper,
                             to support our operational needs.
          Partner        ·   Agreeing to comply with XLSMART sustainability principles at the time of registration.


                         ·   Prioritize reusable materials or products to reduce single-use paper and plastics, including plastic
                             cups, plastic bottles, and plastic cutlery in office spaces, canteens, pantries, and meeting rooms.
                         ·   Prioritize e-mail in doing correspondence with partners and corporate customers instead of
                             printing documents, supporting cost efficiency and faster communication.
                         ·   Encourage responsible waste management practices by implementing waste segregation into
                             three categories: organic, non-organic, and plastic across office areas.
        Employees        ·   Conducted the Waste Management Race, a competition for each floors with the best waste
                             segregation practices. The winning team received a giant trophy (piala bergilir) and a shared
                             buffet snacks reward to reinforce positive behavioral change and collective accountability.




                         ·   Optimizing paper usage for physical vouchers, such as in 3in1 voucher.
                         ·   Replacing copper cables to fibre optics that are more environmentally friendly.
                         ·   Utilizing recycled materials for marketing kits. [GRI 301-2]
       Products and      ·   The launch of e-Sim card
      Service Delivery




WATER USE [OJK F.8] [GRI 303-3] [GRI 303-5] [E-04]

Beyond energy optimization, the Company manages water use to minimize environmental impact while supporting
operational excellence. Although telecommunications operations are not water-intensive, XLSMART maintains
oversight of its water consumption to ensure responsible use of shared natural resources. Water is primarily used in
office facilities, data centers, and employee activity areas, supplied through Public Water Supply Company (PDAM)
which are managed by third parties or building management.


                             Water Consumption
                             PDAM
                             (m3)
                               2025                                                   2024     7,497.46


                             27,198.99                                                2023     7,497.46

                             Note:
                             · 2024 and 2023 figures reflect XL Axiata legacy (pre-merger).
                             · 2025 figures reflect the combined full-year data of XL Axiata and Smartfren under XLSMART.
                             · Figures may not be directly comparable with previous years.




The significant increase in water consumption in 2025 was primarily driven by the expansion of the Company’s
operational footprint following the merger, including the addition of office buildings, regional facilities, and data
center infrastructure. Renovation activities at the Sabang Head Office during the year also contributed to higher
water usage. As operational activities expanded across these facilities, overall water consumption increased
compared to the previous year.




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Effluent Control and Pollution Prevention [OJK F.13]          Environmental monitoring covers ambient air quality,
[OJK F.14] [OJK F.15][GRI 303-4] [E-04]                       including dust and noise levels, mobile and stationary
XLSMART’s operations do not generate industrial               emission sources, and water quality around operational
effluents, wastewater is limited to domestic sanitation       sites. These procedures enable the Company to identify
from office facilities and data centers and is managed        environmental risks at an early stage and implement
through Wastewater Treatment Plants (WWTP) owned              corrective actions promptly to prevent pollution.
and operated by building management or licensed               Regular supervision also ensures that hazardous
third-party operators. These systems ensure that              waste, wastewater, and operational by-products are
effluent meets regulatory quality standards before            managed safely and responsibly.
discharge into water bodies or municipal channels.
Throughout 2025, no spills, leakages, or effluent-            In addition, XLSMART contributes indirectly to pollution
related environmental incidents were reported.                reduction through its digital and broadband services. By
                                                              enabling remote work, digital transactions, and online
XLSMART also ensures full compliance with                     learning, the Company helps reduce transportation
environmental     regulations   through     systematic        needs, thereby lowering associated emissions for
monitoring of air emissions, noise levels, wastewater,        customers and the broader community.
effluents, and hazardous waste handling. These controls
are implemented in alignment with ISO 14001:2015, ISO
45001:2018, and applicable government regulations,
including Government Regulation No. 20/2012 on
environmental management and pollution prevention.




Technology to Preserve Biodiversity [OJK F.9]
[OJK F.10] [GRI 304-1]


XLSMART ensures that all network infrastructure, including BTS towers, fiber-optic routes, and supporting facilities, is
located outside protected areas and biodiversity-sensitive zones. In line with regulatory requirements, all operational
sites are screened against spatial planning regulations and environmental criteria to ensure that they do not interfere
with ecologically significant areas. [GRI 3-3]

The Company maintains close coordination with local authorities to ensure that any maintenance, upgrade, or site
improvement activities remain compliant with environmental guidelines and do not disrupt surrounding natural
ecosystems. Based on these assessments, XLSMART did not operate in conservation areas, protected forests, or
other high-biodiversity zones during 2025.

In addition to regulatory compliance, XLSMART supports ecosystem sustainability through technology-enabled
initiatives, namely:




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                                        Environmental
                                        Stewardship



      Initiative           Focus Area                   Environmental Contribution             Implementation Status
HydroponiX (Smart Sustainable      urban • Promotes sustainable agriculture practices         Managed       by    CSR
Agriculture)      farming through IoT- • Reduces water and nutrient waste through             beneficiaries as part of
                  enabled     hydroponic   precise monitoring                                 community
                  systems                • Supports food production in limited urban          empowerment programs
                                           spaces
                                         • Provides real-time cultivation data for better
                                           decision-making
X-Maggot   (Smart Organic           waste • Supports sustainable organic waste reduction Managed       by         CSR
Waste Management) processing using Black • Diverts waste from landfills                  beneficiaries
                  Soldier Fly larvae with • Encourages circular waste management
                  IoT monitoring            practices
PowerSense (Smart IoT-based AC control in • Optimizes energy consumption                  Ongoing implementation
Energy)           BTS shelter towers      • Prevents electricity overuse                  at BTS shelter towers in
                                          • Supports potential energy savings and reduced the JABODETABEK region
                                            environmental impact
Xinergis     (Smart IoT-based monitoring of • Enables responsible and efficient resource Active across several
Building/Energy     electricity, generator,   management                                       XLSMART regional offices
Monitoring)         and water usage         • Provides data-driven insights for sustainability
                                              performance




Future Environmental Priorities
As XLSMART transitions from integration to                   Energy-transition initiatives will remain a strategic
acceleration, the Company is preparing a set of              priority. XLSMART is expanding its Green BTS program
forward-looking environmental priorities that will guide     and initiating preparations for Green Data Center
its sustainability agenda over the next three years.         development, with a focus on low-PUE, efficient
                                                             cooling technologies, and scalable renewable-
A key focus is the development of the Net Zero               energy solutions. These initiatives will accelerate the
Roadmap, scheduled to commence in 2026 and aligned           Company’s shift toward a more energy-efficient and
with international frameworks such as the Science            climate-resilient network.
Based Targets initiative (SBTi). This roadmap will define
Decarbonisation pathways across network operations,          In addition, several operational components will
data centers, supply chains, and office facilities,          be refined beginning in 2026, including baseline
supported by near-term science-based targets,                measurements for business travel emissions, employee
renewable-energy strategies, and energy-efficiency           commuting, and product life-cycle impacts. These
commitments across both existing and new sites. With         enhancements will support a more comprehensive
the merged entity projected to operate between 47,000        Scope 3 emissions assessment and inform supplier-
and 49,000 sites by the end of 2026, the deployment          engagement programs aimed at reducing value-chain
of low-power and energy-efficient equipment will be          emissions.
critical to reducing operational emissions. [OJK F.12]

The Company will also scale its circular economy and
e-waste management framework. XLSMART is finalizing
a unified policy for hazardous and electronic waste that
complies with Indonesia’s environmental regulations,
including B3 waste standards. This framework
incorporates vendor compliance requirements, end-
to-end traceability, and partnerships with certified
recyclers capable of managing large-scale electronic
waste nationwide. Given that the merger resulted in the
largest consolidated waste stream in the Company’s
history, this initiative represents a core pillar of
XLSMART’s environmental responsibility.




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Environmental Compliance [OJK F.15] [OJK F.16]
XLSMART maintains strict oversight of environmental risks across its operational footprint to ensure that activities
such as network maintenance, equipment mobilization, and site operations do not cause disturbance or adverse
impacts to surrounding communities. The Company’s practices in energy efficiency, emission reduction, and
responsible waste management contribute to minimizing potential environmental externalities.

Throughout 2025, no complaints were received from local communities regarding environmental impacts arising
from XLSMART’s operations. This outcome reflects the effectiveness of preventive controls and the Company’s
commitment to responsible operations during the post-merger integration period.

To support transparency and continuous improvement, XLSMART provides dedicated communication channels
through which stakeholders may submit reports, suggestions, or complaints related to environmental matters.
These channels ensure that any environmental concerns are promptly reviewed and addressed in accordance with
established internal procedures.




              e-mail: corpcomm@xlsmart.co.id                          @xlsmart                   @xlsmart



              Phone: (021) 579 59817/576 1880                         @xlsmart                   @xlsmart




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Solid Performance to
Empower the Nation




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Economic Performance [GRI 201-1]
With the establishment of XLSMART as a unified entity        Total data traffic reached 14,566 Petabytes in 2025,
following the merger, 2025 marks a transformative            increasing from 10,547 Petabytes in 2024. The
milestone in strengthening Indonesia’s digital economy.      growth reflects the continued acceleration of digital
The integration has significantly expanded network scale,    consumption, increasing reliance on mobile data
customer reach, infrastructure assets, and operational       services, and the structural shift toward digital-first
capability, positioning XLSMART as one of the largest        economic activity in Indonesia. The enlarged customer
digital connectivity providers in the country. This year’s   base of 73.0 million subscribers in 2025, compared to
performance showed that the integration is progressing       58.8 million in 2024, demonstrates the multiplier effect
as planned and is expected to be completed within eight      of post-merger integration in expanding market access
quarters from Legal Day 1 (16 April 2025).                   and service delivery.

Economic sustainability remains a core priority. The         Economic Value Generated and Distributed [GRI
Company recognises the importance of maintaining             201-1]
long-term economic growth and development without            Following the merger, XLSMART’s expanded operational
compromising the ability of future generations to meet       scale strengthens its capacity to generate and distribute
their own needs. XLSMART’s economic sustainability           economic value across Indonesia’s digital ecosystem.
goal is to balance business expansion with responsible       The Company manages its economic performance
resource utilisation, ensuring that financial resilience     through disciplined financial oversight, responsible
is aligned with environmental stewardship and                capital allocation, and continuous infrastructure
social progress. Together, these three pillars operate       investment to support national connectivity expansion.
in harmony to create a sustainable framework                 Post-merger integration included harmonisation of
that enables the Company to anticipate structural            financial systems, optimisation of procurement and
challenges such as climate change, resource scarcity,        capital planning processes, and alignment of investment
digital inequality, and evolving regulatory expectations.    priorities to ensure sustainable growth and operational
                                                             efficiency. Economic performance is evaluated through
As the Company advances toward its economic                  key indicators including revenue growth, profitability,
sustainability goals, XLSMART continues to drive             retained earnings, infrastructure expansion, and
innovation and adaptation across its economic activities     customer base development. Performance reviews are
while ensuring responsible practices remain embedded         conducted regularly at executive and Board levels to
throughout operations. Continuous investments in             ensure alignment with strategic objectives and long-
infrastructure enhancement and nationwide network            term value creation. [GRI 3-3]
expansion remain central to this strategy. The Company
is also at the forefront of implementing new technologies    Through this structured approach, the Company ensures
that generate broader economic benefits, thereby             that economic growth supports shareholder returns
reinforcing its contribution to Indonesia’s sustainable      while simultaneously strengthening employment,
development agenda. [GRI 3-3]                                domestic supply chain circulation, and broader digital
                                                             inclusion across Indonesia.
Following the merger, XLSMART operates at
significantly greater scale, managing 225,649 BTS            Financially, the Company demonstrated a solid
in 2025 compared to 156,864 in 2024 and 160,124 in           performance throughout the year. Following the
2023. This expanded infrastructure directly supports         merger, the combined entity continued to deliver
digital inclusion, strengthens national connectivity         positive performance, supported by significant revenue
resilience, and enhances productivity across sectors         growth and improved contribution from data and
including MSMEs, education, financial services, digital
entrepreneurship, and government services.




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digital services. XLSMART recorded revenue of Rp42.5        Rp33,166,342 million in 2024. The Company distributed
trillion, up 23% from Rp34.4 trillion in 2024, supported    economic value through:
by improved contribution from data and digital              • Infrastructure development and network expansion
services. While profitability declined due to merger-       • Employee salaries and benefits
related expenses, the Company maintained normalized         • Interconnection and other direct operating expenses
EBITDA growth of 13% to Rp20.1 trillion, in line with the   • Sales and marketing activities
post-merger target.                                         • Finance costs and capital servicing
                                                            • Tax payments to the Government
Net profit/(loss) in 2025 amounted to Rp(4,414,102)         • Dividend payments to shareholders
million, compared to Rp1,847,631 million in 2024. The       • Community investment programmes
2025 position reflects the financial impact of merger
integration, including harmonisation of accounting          Retained economic value in 2025 amounted to
treatments,      consolidation   adjustments,     and       Rp(1,492,224) million, compared to Rp1,176,707
integration-related expenditures, while maintaining         million in 2024. This reflects the Company’s continued
operational continuity and revenue stability.               reinvestment to strengthen network modernisation,
                                                            support integration optimisation, and sustain long-
Total direct economic acquisition in 2025 reached           term strategic development.
Rp41,432,011 million, compared to Rp34,343,049
million in 2024. The total economic value distributed in    Below is the table of the XLSMART’s total economic
2025 amounted to Rp42,924,235 million, compared to          value acquisition and distribution:


(In Rp Million)

                  ECONOMIC PERFORMANCE                       2025                2024                  2023
 ECONOMIC VALUE ACQUISITION
 Net Revenue                                                  42,445,960           34,391,597            32,322,651
 Profit (loss) exchange difference - net                             8,699            (16,326)                  12,977
 Gain from the sale and leaseback of tower                          141,227           415,641                 424,062
 Others                                                        (1,055,559)          (230,290)                (80,900)
 Finance income                                                     97,860              80,256                100,096
 Share of profit/(loss) from Associate Entity                    (206,176)          (297,829)                (191,493)
 Total Direct Economic Acquisition                              41,432,011        34,343,049            32,587,393
 ECONOMIC VALUE DISTRIBUTION
 Depreciation expenses                                        (17,585,538)        (12,074,335)           11,347,758
 Infrastructure expenses                                      (12,327,392)        (8,942,323)            8,995,646
 Sales and marketing expenses                                  (2,299,737)         (2,094,192)               2,454,775
 Interconnection and other direct expenses                    (4,909,568)          (3,284,180)               3,172,220
 Salaries and employee benefits expenses                      (4,286,366)          (1,736,074)               1,402,242
 General and administrative expenses                            (841,999)           (454,990)                 413,040
 Amortisation expenses                                           (428,521)           (216,928)                 157,216
 Finance cost                                                  (4,015,661)         (3,112,802)               2,939,979
 Income tax expense/(benefit)                                    848,669            (579,594)                 420,069
 Cash dividends paid                                            2,893,778           (635,296)                 549,023
 Community expenditure                                              28,100              35,628                 20,735
 Total Economic Value Distribution                             42,924,235          33,166,342            31,872,703
 Retained Economic Value                                       (1,492,224)           1,176,707                714,690




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Comparison of Target and Production Performance, Portfolio, Financing Target, or Investment, Income
and Profit and Loss [F.2]
The Company monitors the achievement of operational and financial targets through measurable production and
performance indicators. In 2025, the first full year following the merger, operational scale expanded significantly
compared to the prior year.

The number of BTS reached 225,649 units in 2025, compared to 156,864 units in 2024. The substantial increase
reflects network consolidation, infrastructure integration, and optimisation of combined assets following the merger.
The expanded infrastructure strengthens service reliability and nationwide coverage.

Based on the financial indicators presented in the table below, the Company recorded revenue growth of 23% in
2025, in line with its target of maintaining growth at market level. EBITDA margin reached 42%, remaining within the
targeted range of low to mid 40%.

Capital expenditure in 2025 amounted to Rp11.19 trillion, slightly above the planned investment target of approximately
Rp10 trillion. The higher capital allocation reflects continued investment in network integration, infrastructure
expansion, and technology upgrades following the merger.

Net profit/(loss) in 2025 amounted to Rp(4,414,102) million compared to Rp1,847,631 million in 2024. The loss is
primarily attributable to integration-related adjustments, consolidation costs, and other non-recurring impacts
associated with the merger process.

        Financial Indicators                      2025 Actual                      2025 Targets                2024 Actual
Revenue Growth                                         23%                    In line with the market               6%
EBITDA Margin                                          42%                       Low to mid 40%                     52%
Capital Expenditure                               Rp11.19 trillion         Approximately Rp10 trillion         Rp7.38 trillion


Comparison of Targets and Investment Realization in Environmental Preservation Projects [F.3]
In 2025, the Company allocated capital expenditure toward renewable energy integration as part of its operational
infrastructure planning. This investment aligns with XLSMART’s commitment to accelerating carbon neutrality
through environmentally responsible and sustainable digital innovation, ensuring that network expansion is
progressively supported by cleaner energy sources.

For the reporting year, the Company set a target to increase renewable energy attributes and expand solar panel
installations across its network infrastructure. The realisation in 2025 included:
• Installation of 9 new solar panel sites, with 2 sites decommissioned, resulting in a net increase of 7 sites and
    bringing the cumulative total to 259 solar panel sites.
• Acquisition of 3,000 RECs, equivalent to 3,000 MWh of renewable energy attributes.

      Year                       Target                                                     Realisation
      2025       Additional    renewable energy            · Acquisition of 3,000 RECs equivalent to 3,000 MWh.
                 attributes and solar panel site           · Installation of 9 new solar panel sites at Smartfren legacy locations,
                 installations                               with 2 sites decommissioned, resulting in a net increase of 7 sites and
                                                             bringing the total to 259 solar panel sites, compared to 252 in the
                                                             previous year.
      2024       Additional    renewable  energy           ·   Acquisition of 1,000 RECs equivalent to 1,000 MWh.
                 attributes and 4 solar panel site         ·   Installation of 4 solar panel sites.
                 installations
      2023       Addition of      solar   panel     site   Installation of 46 solar panel sites.
                 installations




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The increase in RECs procurement reflects an                            In 2025, XLSMART employed a total of 3,239
intentional shift toward renewable energy sourcing                      employees, reflecting the expanded organisational
within the Company’s operational energy mix. RECs                       structure following the merger. The enlarged entity
are internationally recognised instruments that enable                  creates broader employment opportunities while
a corporate user to claim the environmental benefits                    reinforcing the Company’s commitment to inclusive
of electricity generated from renewable sources,                        workforce development. Recruitment processes remain
even when the physical electricity consumed remains                     competency-based, ensuring that candidates from
sourced from conventional electricity sources. This                     local communities who meet the required qualifications
approach is consistent with prevailing industry                         are provided equal opportunity to grow within the
practices and broader energy transition collaborations.                 organisation.

Solar panel installations contribute directly to                        Meanwhile, in 2025, the Company had 23 individuals
reducing reliance on conventional electricity sources                   serving in senior leadership positions. Of this number,
at selected operational sites, particularly within                      13 were Indonesian nationals, representing 56.5% of
network infrastructure where energy reliability and                     total senior leadership positions. Senior management
efficiency are critical. The combined approach of on-                   positions occupied by employees recruited from local
site solar deployment and REC acquisition strengthens                   communities increased compared to the previous
the Company’s renewable energy footprint while                          year, reflecting continued efforts to strengthen local
maintaining operational stability.                                      leadership representation. This reflects the Company’s
                                                                        continued effort to ensure that leadership representation
Environmental capital allocation is incorporated into                   incorporates local insight, operational familiarity, and
annual infrastructure and energy planning processes                     contextual understanding of the markets in which it
to ensure alignment between network expansion,                          operates.
energy efficiency improvements, and long-term
decarbonisation objectives.                                             Workforce distribution across regions further
                                                                        demonstrates the Company’s operational footprint.
PROPORTION OF SENIOR MANAGEMENT FROM                                    While a significant proportion of employees are based
LOCAL COMMUNITIES [202-2]                                               in Jabodetabek, consistent with the concentration of
                                                                        corporate headquarters and network management
XLSMART recognises that sustainable economic                            functions, the Company also maintains workforce
growth must be supported by meaningful participation                    presence in other regions to support nationwide
of local communities in its workforce and leadership                    operations. Through structured career pathways,
structure. As part of its commitment to strengthening                   competency       development      programmes,     and
domestic economic contribution, the Company                             succession planning initiatives, XLSMART aims to
prioritises the development and advancement of local                    build sustainable leadership pipelines from within
talent across operational and managerial levels. For                    local communities. This approach ensures continuity,
the purpose of this disclosure, senior management                       strengthens institutional knowledge, and supports
refers to top leadership positions within the Company’s                 long-term organisational resilience.
organisational structure. [GRI 3-3]
                                                                        The    Company’s    workforce    composition and
                                                                        representation of local communities within senior
                                                                        management are presented in the table below:


                                Descriptions                                         2025              2024               2023
Total Employees                                                                      3,239              1,663             1,495
Local Employees*                                                                      3,214             1,648             1,480
Senior Leadership Positions (Total)                                                         23             14                   13
Senior Leadership from Local Communities                                                    13              8                    3
Local Representation in Senior Leadership (%)                                        56.5%             57.1%              23.1%
Female Employees                                                                           932           495                   448
Female Representation in Senior Leadership                                                   1              3                    3
By Region
Jabodetabek                                                                           2,414             1,381                 1,267
Outside Jabodetabek                                                                        825           282                   228
*Local Employees refer to Indonesian nationals employed by the Company (non-expatriates)



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Market Presence Expansion and Indirect
Economic Impact [GRI 203-2]
Beyond direct economic value generated, XLSMART            The enlarged network footprint enables faster
contributes to broader economic development through        deployment of advanced technologies, including
significant indirect impacts arising from its network      5G rollout, while improving customer experience
expansion and digital connectivity services. Following     through more consistent service performance. As
the merger, XLSMART expanded its operational scale         digital connectivity becomes increasingly central to
nationwide and strengthened its capacity to accelerate     commerce, financial inclusion, and service delivery,
network investments, improve service quality, and          strengthened infrastructure directly supports broader
extend coverage reach across both urban centres and        participation in Indonesia’s digital economy.
underserved areas.
                                                           The downstream economic impacts include:
The integration of network assets and operational          • Improved productivity for SMEs, supported by
systems enhances resilience, optimises capacity               stronger and more consistent connectivity for
utilisation, and improves overall service quality. By         daily operations, digital marketing, and online
consolidating infrastructure and operating under a            transactions.
unified network framework, XLSMART strengthens             • Increased digital financial transactions, enabled
Indonesia’s digital backbone and improves economic            by more reliable mobile data access and platform
accessibility for millions of users who rely on stable        stability.
connectivity for daily economic activity.                  • Expansion of the digital services ecosystem,
                                                              including e-commerce, digital content, and cloud-
                                                              based solutions.
                                                           • Greater employment multiplier effects across the
                                                              digital value chain as network expansion stimulates
                                                              demand for supporting services and local partners.




Sustainable Supply Chain [204-1]
XLSMART’s success is built upon strong and                 Supplier selection is conducted through transparent
collaborative relationships with its stakeholders,         and structured procurement mechanisms to ensure
including business partners who share a common             fairness, regulatory compliance, and alignment with
commitment to sustainable value creation. The              ethical standards. All suppliers are provided equal
Company recognises that supply chain management            opportunity to participate in procurement activities
plays a critical role in maintaining operational           under clearly defined evaluation criteria. Performance
continuity, service quality, and long-term value           and compliance are monitored throughout the
creation. Therefore, supplier governance is embedded       contractual relationship to manage operational, legal,
within the Company’s procurement framework and risk        and reputational risks. [GRI 3-3]
management processes.
                                                           In 2025, XLSMART collaborated with 659 vendors,
The Company has established a supply chain consisting      an increase from 537 vendors in 2024. Of this total,
of selected and verified suppliers who contribute to       602 vendors were local suppliers, representing
the delivery of its products and services. In navigating   approximately 91% of the total supplier base, compared
dynamic global economic conditions, local engagement       to 484 local vendors in 2024. This demonstrates a
remains a strategic priority to support supply chain       consistent prioritisation of domestic suppliers within the
resilience, competitive pricing, quality assurance, and    Company’s procurement structure.
timely delivery of goods and services.




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From a contract value perspective, total procurement spending reached Rp37,513.0 billion in 2025, significantly
higher than Rp15,528.8 billion in 2024, reflecting expanded operational scale following the merger. Of this amount,
Rp36,730.6 billion, or more than 97% of total procurement value, was allocated to local suppliers. In comparison,
Rp15,068.4 billion was distributed to local suppliers in 2024.

This substantial allocation to domestic vendors illustrates the Company’s direct contribution to Indonesia’s economic
ecosystem, supporting local enterprises, supply chain capacity building, and regional economic participation.

The detailed composition is presented below:

                                                   Total Vendors                     Contract Value (Rp Billion)
           Descriptions
                                       2025           2024         2023          2025           2024             2023
Local (Indonesia)                           602            484            431    36,730.6       15,068.4         13,554.4
Foreign (Overseas)                            57              53          48         782.2         460.4           377.4
Total                                       659              537        479      37,513.0       15,528.8         13,931.8


In interacting with business partners, XLSMART upholds the highest ethical standards across all procurement
activities. As stipulated in the Axiata Supplier Code of Conduct (“Code”), the Company clearly communicates its
expectations regarding responsible business conduct. Compliance with these standards is monitored throughout the
engagement lifecycle.

Vendor selection and onboarding require suppliers to comply with applicable legal standards, fair business practices,
labour protection principles, and anti-corruption requirements. All suppliers are required to confirm that:
• Child labour and forced labour are strictly prohibited.
• Workers operate in safe and lawful conditions.
• Operational permits and legal documentation are valid.
• Bribery and corruption are not tolerated.

Vendor assessments are conducted prior to engagement, and corrective actions are implemented where non-
compliance or potential risks are identified. Where feasible, XLSMART prioritises regional suppliers to support local
economic ecosystems and community-based participation within its supply chain network.




Financial Assistance from the
Government [GRI 201-4]
Throughout 2025, XLSMART did not receive any financial assistance from the Government in any form. The Company
operates independently without reliance on direct government grants, subsidies, tax relief, or other forms of financial
incentives.




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Taxation Policy [GRI 207-1] [GRI 207-2] [GRI 207-3] [GRI 207-4]
XLSMART recognises taxation as a fundamental                To ensure compliance, the Company adheres to all
component of its economic contribution to Indonesia.        applicable laws and maintains open communication
Through responsible tax payments, the Company               with relevant tax authorities. The tax strategy is
supports national fiscal capacity, macroeconomic            reviewed annually and in consideration of outcomes
stability, and public development priorities aligned with   from tax audits conducted by the Directorate General
the SDGs.                                                   of Taxes (DGT). Compliance is further verified through
                                                            internal and external audit processes, including
The Company manages taxation as an integral part of         financial statement audits and tax examinations.
its financial governance framework. Tax compliance,
risk management, and regulatory monitoring are              The Company maintains zero tolerance toward tax
embedded within corporate oversight structures to           non-compliance. Stakeholders are encouraged to
ensure alignment with prevailing laws and long-term         utilise established whistleblowing mechanisms to
business sustainability. The management of taxation         report any suspected violations. The Company’s
matters is conducted through structured governance,         consolidated tax position is disclosed within the audited
internal control systems, and periodic evaluation           financial statements prepared by an independent
mechanisms. [GRI 3-3]                                       Public Accounting Firm.

XLSMART fulfils its tax obligations in accordance with      THE EFFECTS OF CLIMATE CHANGE                        ON
prevailing Indonesian taxation laws and regulations.        ECONOMIC SUSTAINABILITY [GRI 201-2]
Where applicable, international tax provisions are
utilised in compliance with regulatory frameworks. In       Climate change presents multidimensional risks
2025, the Company met its statutory tax obligations,        affecting environmental systems, economic stability,
including Value Added Tax (VAT), Income Tax Article         infrastructure resilience, and community welfare. As a
21, Income Tax Article 23, and other applicable tax         digital infrastructure provider operating an extensive
requirements.                                               network footprint across Indonesia, XLSMART
                                                            recognises that climate-related risks may have direct
Tax governance is overseen by the Head of Tax Division      and indirect implications on operational continuity,
under the supervision of the Finance Director (CFO),        capital expenditure, and long-term asset performance.
ensuring effective monitoring of taxation and non-
tax state revenue obligations, including PNBP where         The Company has identified both physical and
relevant. The Company continuously strengthens              transition-related climate risks within its operational
internal tax competency through structured trainings        landscape. Physical risks include exposure of network
and workshops to enhance employees’ understanding           infrastructure, including BTS sites and supporting
of taxation matters. Guidance is also provided to           facilities, to extreme weather events, flooding, heat
business partners, employees, and related stakeholders      stress, and other climate-related disruptions that may
regarding regulatory updates that may have tax              affect service reliability or increase maintenance costs.
implications for business cooperation and employment        Transition risks may arise from evolving regulatory
arrangements.                                               requirements, carbon-related policies, shifts in energy
                                                            pricing, and changing stakeholder expectations
XLSMART adopts a conservative taxation approach,            regarding decarbonisation.
taking into account regulatory risk, business substance,
and long-term sustainability considerations. For            In 2025, the Company did not record material climate-
new business schemes or material transactions,              related impacts that significantly disrupted business
cross-functional reviews are conducted, including           operations. However, climate risk considerations are
consultation with the taxation team, to assess and          embedded within infrastructure planning, energy
analyse tax implications prior to execution.                management strategies, and capital allocation
                                                            decisions to enhance long-term resilience. The
                                                            assessment of climate-related risks and opportunities
                                                            continues to be strengthened in line with evolving global
                                                            sustainability disclosure practices.




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To mitigate potential impacts, XLSMART remains              As the regulatory landscape evolves, XLSMART
committed to reducing greenhouse gas emissions              continues to enhance transparency and integrate
across its operations and increasing the use of             climate-related considerations into strategic planning
renewable energy. The expansion of solar panel              and financial decision-making processes. The
installations and procurement of Renewable Energy           Company recognises the growing importance of
Certificates form part of the Company’s operational         structured climate-related financial disclosures within
energy transition strategy. These initiatives reduce        global capital markets. Thus, XLSMART is progressively
exposure to conventional electricity sources while          strengthening governance oversight, refining risk
supporting national decarbonisation objectives.             identification methodologies, and enhancing data
                                                            integration capabilities to prepare for future alignment
Beyond risk mitigation, the Company also recognises         with internationally recognised sustainability reporting
climate-related opportunities. Increasing public            frameworks, including IFRS Sustainability Disclosure
awareness of energy efficiency and sustainable              Standards.
consumption drives demand for digital solutions
that enable remote working, digital transactions,
smart infrastructure, and reduced physical mobility.
Strengthened digital connectivity supports lower-
carbon economic activity by facilitating virtual services
and dematerialised transactions.




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    Stronger Performance
from People Empowerment




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EcoFusion Sustainability Week


The 2025 merger created a unified talent ecosystem            The Human Capital Committee oversees key aspects of
that brings together diverse skills, perspectives,            workforce governance and organizational development.
and professional experiences across the combined              Established on 12 July 2019, the committee carries out
organization. This integration enables XLSMART to             responsibilities aligned with national labor regulations,
strengthen operational capacity, expand service               including those amended under the Job Creation Law.
excellence, and accelerate digital transformation. Our        It provides direction on workforce planning, capability
people play a central role in ensuring that the Company       strengthening, and employee relations while guiding the
remains agile, innovative, and ready to meet the              ongoing harmonization of post-merger Human Capital
evolving needs of customers across Indonesia.                 policies.

As the Company harmonizes systems and aligns post-            To support the Company’s transformation agenda, the
merger structures, workforce management becomes a             committee has introduced a digitalized Human Capital
strategic enabler of long-term performance. XLSMART           management system that streamlines employee
focuses on building a resilient and future-ready              processes and services. Integrated through the Human
talent base through standardized job architecture,            Capital Super App (XLSMART App), the system enables
strengthened capability development, and continuous           access to administrative services, learning modules,
learning initiatives that equip employees to navigate         and performance information through a single
the increasingly dynamic digital landscape. These             platform, strengthening data-driven decision-making
pathways ensure that every individual is positioned           and improving overall employee experience.
to contribute meaningfully to the Company’s goals,
whether through frontline service, network operations,        In 2025, XLSMART was recognized as Indonesia Best
or enterprise solutions. Collectively, these efforts foster   CX-EX Strategy 2025 by SWA Magazine (14th edition)
a strong and integrated workforce that supports the           with a “Very Good” rating. This award marked as the
Company’s operational excellence and sustained                Company’s recognition in its human capital initiatives
growth trajectory.                                            and the Company’s commitment in the employee’s
                                                              development. With customer experience (CX) and
Following the 2025 integration, the Company aligned           employee experience (EX) strategy implementation to
policies, decision-making structures, and workforce           enhance customer loyalty and employee productivity.
practices to ensure that employees operate under              The award itself validates the Company’s strategy
a consistent and equitable framework. This reflects           of balancing customer satisfaction and employee
the Company’s commitment to equality and equal                engagement. This is in line with the Company’s
opportunity, ensuring that every individual has fair          integration strategy, to focus on empowering and
access to recruitment, development pathways,                  collaborative employees to deliver an exceptional
and career progression in line with applicable labor          customer experience.
regulations. [F.18]


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Our Workforce

XLSMART’s workforce now represents the combined                1. Recruitment process with merit based selection,
talent pool of the three operators that merged in 2025.           inclusivity and equal opportunity helped by digital
This integration creates a broader mix of competencies,           recruitment tools and platforms utilized to improve
digital capabilities, and operational experience that             efficiency, broaden talent reach, and enhance
supports the Company’s transformation across mobile,              candidate experience.
home broadband, and enterprise services.                       2. Bringing in specialized skills particularly in digital
                                                                  technology, data analytics, network optimization,
Workforce planning during the first year of integration           cybersecurity, and enterprise solutions.
focuses on ensuring that talent availability aligns with       3. Bringing in a deep pool of talents that enables the
network consolidation, digitalization priorities, and             internal employees to explore cross-functional roles
strengthened customer experience initiatives. The                 through a comprehensive and transparent selection
merged workforce enables greater operational scale                process.
and provides flexibility for future business needs.            4. Prioritizing the harmonization of recruitment and
                                                                  talent management systems to align process,
Recruitment Approach and New Hires [GRI 401-1]                    standards and experiences while also supporting
In 2025, the recruitment process aligned with the                 sustainable career development for all employees.
Company’s post-merger strategic priorities. XLSMART            5. Ensuring the people roles to achieve high
focused on filling roles that were newly created or               performance, adaptive, and aligned with the
refined as part of the new organizational structure. The          Company’s business needs.
recruitment approach is outlined as follows:
                                                               Throughout the year, 137 new employees joined
                                                               XLSMART. A comparison of new hires over the last two
                                                               years is presented below:



Employee Recruitment by Age and Region [S-02]
                                              2025                          2024                          2023
           Description
                                      Male           Female         Male           Female         Male           Female
Employees by Age
<25 years old                             1             3              5              3              2              5
25-30 years old                         20              12             17             11            34             23
30-35 years old                         38              19             41            10             39              17
35-40 years old                          18             6             28              9             20              4
40-45 years old                           9                1           19              2             9              5
45-50 years old                           6                1            2              2             7              -
>50 years old                             3             0               2              1              1             -
Total                                   95             42             114            38             112            54
Based on Regions
Head Office                             46              31            74             33             73             46
Region-West                              10                1           18              1             4              -
Region-Jabo                              10                1           0              0              7              3
Region-Central                            9             4              13              2            10               1
Region-East                              12             3               5              1             8              -
Kalimantan Area                           3                1            2             0              6              3
Sulawesi Area                             5                1            2              1             4               1
Region-North                              -                -            -              -              -             -
Total                                   95             42             114            38             112            54




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Employee Turnover [F.21] [GRI 401-1] [S-03]
The first year of integration also brought natural employee movement as structures, roles, and responsibilities
were refined. Redeployment, role adjustments, and voluntary departures formed part of the transition phase as the
organization consolidated functions and aligned operating models.

In 2025, a total of 233 employees left the Company. The turnover rate reached 7.2%, reflecting early-stage
adjustments that typically occur after a large-scale merger. As role clarity improved and teams operated under
more consistent processes, workforce stability also strengthened. The comparison of turnover between 2025 and
2024 is presented below:

                                       2025                        2024                             2023
   Employee Turnover
                             Male     Female      Total     Male   Female      Total        Male    Female       Total
Incoming employees            95        42         137       114     38          152         112      54          166
(recruitment)


Outgoing Employees
                                       2025                        2024                             2023
  Outgoing Employees
                             Male     Female      Total     Male   Female      Total        Male    Female       Total
Natural retirement              4            0       4         2       4           6          49       14          63
Passed Away                     0            0       0         3       0           3           2        0           2
Resigned**                    115        76         191       47      17          64          45       29          74
Dismissed For                   11           4      15         6       3           9           6        0           6
Misconduct
Expired Contract               17            6      23         9       4          13           17       6          23
Total                         147        86        233        67     28           95           17       6          23
Head Office                   114        77        191        67     28           95          119     49          168
Percentage                  48.9%     33.0%      82.0%      6.0%   5.8%        6.0%         11.4%   10.9%        11.2%
**Reasons for Resignation




                                       2025                        2024                             2023
  Outgoing Employees
                             Male     Female      Total     Male   Female      Total        Male    Female       Total
At Own Request                119       76        195        42      17          59           45      29           74
Not at Own Request            28        10         38        22       11         33           74      20          94


Total Employee Turnover Rate [S-03]
                              Descriptions                                  Total in 2025             % in 2025
Total resigned/terminated employees                                             233                        7.2
Total new/replacement employees                                                 137                        4.2


Total Permanent Employees [S-04]
                              Descriptions                                  Total in 2025             % in 2025
Total employees managed by Contractors and/or Consultants                       717                     22.14


Employee Demographics [C.3] [GRI 2-7] [GRI 405-1]
Employee diversity remains an important foundation for building an inclusive and collaborative organization. As
XLSMART brings together employees from different backgrounds and legacy entities, the Company ensures equal
opportunities and a consistent employee experience across all groups. [GRI 3-3]




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The workforce composition in 2025 highlights the expansion of key directorates, particularly Commercial-Consumer,
Technology, Finance, and Enterprise & Strategic Relationship, alongside the establishment of new functions such as
Regulatory and the Integration Office. This distribution demonstrates the Company’s post-integration organizational
scaling and its deliberate effort to align workforce capacity with evolving business priorities.

Employee Demographics by Directorate
                               Description                                   2025                     2024
CEO’S Office                                                                   144                       98
People                                                                          99                       98
Finance                                                                       308                        173
Strategy & Home Business                                                       210                      164
Commercial-Consumer                                                          1,242                      540
Technology                                                                     415                      207
 Information Technology                                                       354                       308
Enterprise & Strategic Relationship                                            285                       173
Regulatory                                                                      61
Integration Office                                                             121
Grand Total                                                                  3,239                    1,663


The diversity profile is further detailed in the following tables:

Employee Composition by Age and Gender
                       Proportions                                   2025           2024                2023
Board of Commissioners and Board of Directors
By Age
<25 years old                                                            -              -                      -
25-30 years old                                                          -              -                      -
30-35 years old                                                          -              -                      -
35-40 years old                                                          -              -                      -
40-45 years old                                                         3               -                      -
45-50 years old                                                         3               2                      4
>50 years old                                                           17             12                      9
By Gender
Male                                                                   22               11                    10
Female                                                                   1              3                      3



                       Proportions                                   2025           2024                2023
Employees
By Age
<25 years old                                                          69              20                      8
25-30 years old                                                       297             138                 156
30-35 years old                                                       568             359                 353
35-40 years old                                                       682             363                 343
40-45 years old                                                       724             377                 351
45-50 years old                                                       594             282                 231
>50 years old                                                         305             124                 109
By Gender
Male                                                                 2,307           1,168              1,047
Female                                                                932            495                 448




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Employee Composition by Operational Area and Gender
                                         2025                                   2024                                     2023
      Operational Area
                              Male      Female      Total         Male       Female         Total         Male          Female         Total
Head Office                   1,529           714   2,243           871          446         1,317          812            408         1,220
Region-West                       166         43     209             63            9           72            45                 8         53
Region-Jabo                       124         34      158            49           15           64            36              11           47
Region-Central                    218          71     289            73           13           86            53                 9         62
Region-East                       182         48     230             72            8           80            62                 6         68
Kalimantan Area                    37           5      42            33            3           25            21                 4          25
Sulawesi Area                      51          17      68               18         1           19            18                 2         20
Region-North                        -           -           -           -          -                -         -                 -              -
Total                         2,307           932   3,239         1,168          495        1,663         1,047            448         1,495


Employee Composition by Operational Area and Employment Status
                                         2025                                   2024                                     2023
      Operational Area
                           Permanent    Contract    Total       Permanent    Contract       Total       Permanent       Contract       Total
Head Office                    1,918          325   2,243          1,197         120         1,317         1,113           107         1,220
Region-West                       131          78    209             39           33           72            33             20            53
Region-Jabo                       100          58     158            38           26           64            18             29            47
Region-Central                    169         120     289            41           45           86            28             34            62
Region-East                       142          88    230             48           32           80            36             32            68
Kalimantan Area                   20           22      42               6         19           25             5             20             25
Sulawesi Area                     42           26      68               8          11          19             9              11           20
Region-North                        -           -           -           -          -                -         -                 -              -
Total                         2,522           717   3,239         1,377          286        1,663         1,242            253         1,495



Employee Composition by Employment Status and Gender
                                         2025                                   2024                                     2023
        Description
                              Male      Female      Total         Male       Female         Total         Male          Female         Total
Permanent                     1,778           744   2,522           931          446        1,377          843             399         1,242
Contract                          529         188     717           237           49          286          204              49            253
Temporary                     2,199       3,108     5,307           319          600          919             -                 -              -
Honorary                            -           -           -           -          -                -         -                 -              -
Total                        4,506       4,040      8,546         1,186          495        1,663         1,047            448         1,495


Gender Equality [S-01]
                                                                         Male                                          Female
                      Job Level
                                                     Total Employees               (%)              Total Employees                 (%)
Entry Level (Staff /Individual Contributor)                     1,973             85.52%                     828                    88.88%
Mid-Level (Head + Group Head)                                     312              13.53%                    103                    11.05%
Senior Level (Chief + Director)                                    21              0.91%                           1                 0.11%
Executive Level (President Director)                                1              0.04%                           0                0.00%
Total Employees                                                 2,307               100%                     932                     100%




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Number of Employees by Job Level, Age Group, and Gender [S-02]
                          Entry Level                  Mid-Level                   Senior Level                Executive Level                Total
 Age Group (Years)
                         Male          Female        Male          Female         Male          Female         Male          Female         Employees

         18-24              0              0            17             19            3              5              0             0                44
         25-34              0              0           318            221           191           107              0             0               837
         35-44              0              0          475            156           565            188              3             0              1,387
         45-55              0              0          194             87           502            140             12              1              936
        Above 55            0              0            0               1           20              7              7             0                35
         Total              0              0         1,004           484          1,281           447             22             1             3,239



Number of Temporary Employees [S-04]
                                Descriptions                                                    Total in 2025                    % in 2025
Total employees managed by Contractors and/or Consultants                                          5,307                               62.1


Employee Composition by Job Title and Gender
                                          2025                                      2024                                        2023
         Job Level
                            Male         Female         Total          Male        Female          Total          Male         Female          Total
President Director                 1             -             1              -             1              1             -              1           1
Director                          8              1            9              5              1             6
Chief                            13              -            13             8             -              8             4               1          5
Group Head                       59             18            77            33            16             49              7             0           7
Head                            253             85          338             132           47             179           34             15          49
Lead                              -              -             -             14            7              21           126            47          173
Staff/Individual            1,973           828         2,801           976              423        1,399             876         384           1,260
Contributor
Total                      2,307            932         3,239          1,168             495        1,663         1,047           448           1,495



Composition of Employees by Age and Gender
                                          2025                                      2024                                        2023
        Age Group
                            Male         Female         Total          Male        Female          Total          Male         Female          Total
<25 years old                    36             33           69               7           13             20             3              6           9
25-30 years old                 159            138           297             81           57            138             87            59         146
30-35 years old                 372            196          568         244               115         359              232            112        344
35-40 years old                 494            188          682         262               101         363             235             94         329
40-45 years old                 568            156          724             279           98            377           256             87         343
45-50 years old                 454            140          594         207               75          282              172            58         230
>50 years old                   224             81          305             88            36            124            62             32          94
Total                      2,307            932         3,239          1,168             495        1,663         1,047           448           1,495



Composition of Employees by Education and Gender
                                          2025                                      2024                                        2023
     Education Level
                            Male         Female         Total          Male        Female          Total          Male         Female          Total

S2/S3                           201             72           273            143           57         200               59             29          88
S1                          1,878              772      2,650           959              409        1,368             855         367           1,222
Diploma                         216             76          292             66            29             95            133            52         185
High School Equivalent           12             12           24              0             0              0             0              0           0
Total                      2,307            932         3,239          1,168             495        1,663         1,047           448           1,495




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Interns [2-8]
                                             2025                        2024                        2023
              Information
                                      Male          Female        Male          Female        Male          Female
Intern Count                            63            79           60             52          167            179
Based on Internship Location
Head Office                             58            69            52            42          159            160
Region-West                              1             2             7             4            3              2
Region-Jabo                              -             2             -             3            2              1
Region-Central                           1             -             -             -            -              4
Region-East                              3             5             -             -            3             12
Kalimantan Area                          -             1             1             3            -              -
Sulawesi Area                            -             -             -             -            -              -
Region-North                             -             -             -             -            -              -




Employment Practices

Non-Discrimination                                           and 40 working hours per week under a five-day work
XLSMART upholds a non-discrimination principle               arrangement. Employees who work additional hours
across all stages of employment. This commitment             receive overtime compensation in accordance with
applies to recruitment, job placement, development           internal provisions and applicable regulations.
opportunities, performance assessment, promotion,
remuneration, and termination. All employment                This policy extends to subsidiaries, business partners,
decisions are based on competence, performance,              and vendors, all of whom are required to comply with
and organizational requirements, without reference to        indonesian labour laws and internationally recognized
gender, age, ethnicity, religion, physical condition, or     human rights principles. XLSMART’s commitment
political views. During the 2025 reporting period, the       aligns with:
Company recorded no incidents of discrimination. [F.18]      • Law no. 20 Of 1999-ratification of ILO convention
[GRI 3-3][GRI 406-1]                                             no. 138 Concerning minimum age for admission to
                                                                 employment.
Child Labour and Forced Labour [F.19] [GRI 408-1]            • Law no. 1 Of 2000-ratification of ILO convention no.
[GRI 409-1]                                                      182 Concerning the elimination of the worst forms of
XLSMART acknowledges that risks related to human                 child labour.
rights violations, including child labour and forced         • Law no. 19 Of 1999-ratification of ILO convention no.
labour, may arise in any work environment if not                 105 Concerning the abolition of forced labour.
managed effectively. To mitigate these risks, the
company maintains a comprehensive human capital              These references guide the company in ensuring that
management framework governing fair treatment,               work arrangements, job assignments, and contractual
safe working conditions, and compliance with labour          terms do not create conditions that may constitute
regulations across all operational areas. [GRI 3-3]          forced labour.

The company strictly prohibits child labour and forced       Throughout the 2025 reporting period, the company
labour in all forms. Recruitment policies require all        recorded no incidents of child labour or forced labour,
candidates to meet the minimum legal working age             and human-rights violations related to these issues
and to submit verifiable educational documents to            were identified across its operations. This reflects the
confirm eligibility. Working-hour arrangements follow        effective implementation of company policies and its
article 77 of law no. 13 Of 2003 concerning manpower,        ongoing commitment to protecting employee rights.
which stipulates a maximum of 8 working hours per day


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Collective Bargaining Agreements [GRI 2-30]                          Following the 2025 merger, the company initiated the
XLSMART maintains a constructive relationship with                   process of harmonizing employment provisions from
employee representatives and ensures that labour                     the legacy entities into a single unified cla framework.
rights remain protected throughout the post-merger                   During this transition, the existing cla remains fully
transition. All employees are covered by a collective                in effect and continues to apply to 100 percent of
labour agreement (CLA) developed jointly with the                    employees. Any policy updates or workforce changes
labour union, which serves as a binding reference for                are discussed with the labour union in accordance
managing employment matters, including working                       with labour regulations and established consultation
conditions, grievance mechanisms, remuneration,                      mechanisms.
benefits, and dispute resolution.
                                                                     This approach ensures that employees retain clear
                                                                     protection of their rights and that all employment-
                                                                     related decisions remain aligned with mutually agreed
                                                                     principles between the company and the labour union.



                Description                                                          2025
 Total employees covered by CLA              100% employees
 Legacy source of CLA                        XL Axiata CLA (effective and applicable during transition period)
 Coverage for Smartfren employees Covered under unified employment policies during the harmonization period
 post-merger
 Key areas governed by CLA                   Working conditions, benefits, grievance procedures, dispute resolution, and
                                             termination provisions
 Consultation mechanism                      Regular meetings between Company and the Labour Union; reviews aligned with
                                             national labour regulations
 Harmonization progress                      In progress; unified CLA framework planned for phased implementation




Base Transceiver Station - BTS, Jawa Timur




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Employee Wellbeing within an Equal and
Inclusive Entity
Remuneration and Employee Welfare [GRI 202-1] [GRI 405-2] [GRI 401-2]
XLSMART ensures that all employees receive fair and competitive remuneration that reflects their role, performance,
and contribution to the organization. The Company’s remuneration framework complies with the Manpower Law,
the Job Creation Law, and Government Regulation No. 36 of 2021 on Wage Policy. Harmonization of remuneration
structures across the merged entities is carried out gradually to ensure consistency, internal equity, and alignment
with industry benchmarks. In determining wages, XLSMART considers living cost, inflation trends, business locations,
and the Company’s financial capacity. The wage structure does not differentiate based on gender. This approach
reflects the Company’s commitment to equal remuneration in accordance with ILO Convention No. 100 on Equal Pay
for Work of Equal Value. [GRI 3-3]

Regional Minimum Wage [F.20]
The Company maintains full compliance with applicable minimum wage regulations across all operational areas. In
2025, the Company’s wage structure reached an average of 101 percent of the regional minimum wage standard.
                                                                 The Lowest Salary at
                Region                    Minimum Wage                                    Ratio Comparison to UMP
                                                                      XLSMART
Region-West                                 Rp4,014,072             Rp5,700,000                     1.42
Region-Jabo                                 Rp5,396,760             Rp5,700,000                     1.06
Region-Central                              Rp3,454,827             Rp5,700,000                     1.65
Region-East                                 Rp4,961,753             Rp5,700,000                     1.15
Kalimantan Area                             Rp3,599,181             Rp5,700,000                     1.58
Sulawesi Area                               Rp3,880,137             Rp5,700,000                     1.47


In addition to base salary, employees receive a comprehensive range of benefits tailored to their employment status
and job level. The benefits include allowances, leave entitlements, insurance coverage, and other welfare programs
designed to support employee wellbeing, as follows: [GRI 401-2]
                                                                                        2025
                    Remuneration/Facility Type
                                                                Permanent Employees      Non-Permanent Employees
Basic Salary                                                             √                          √
Long-term incentives in the form of cash or stocks                       √                          √
Allowances
  Holiday Allowance                                                      √                          √
  Income Tax Allowance                                                   √                          √
  Leave allowance                                                        √                          √
  Transportation allowance                                               √                          √
  Communication allowance                                                √                          √
  Education allowance                                                    √                          √
Leave
  Annual Leave                                                           √                          √
  Maternity Leave                                                        √                          √
  Menstrual Leave                                                        √                          √
  Leave for the Purpose of Worship                                       √                          √
  Progressive Leave                                                      √                          √
Others
  Healthcare                                                             √                          √
  Life insurance                                                         √                          √




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To boost employee productivity, XLSMART also formulates a range of rewards delivered in the form of:
• My Flexpro, a flexible non-cash employee development program (covering Medical Plan Benefits, the Let’s Learn
   Program, and Annual Leave) that supports health benefits, education, wellness, additional leave purchases, and
   pension programs;
• Tuition Fee support;
• Opportunities to participate in Individual Development programs;
• Employee travel programs as recognition for performance and target achievement; and
• Token Appreciation, a non-cash reward granted to employees who have demonstrated strong engagement and
   significant contributions to the company’s strategic initiatives.

With a spirit to become “Best Place to Work” the Company implemented work environment that supported by health
screening programs, mental health support and collaborative platforms and activities that engaged in the XLSMART
Employee Club. The Company also support Uncommon Day Program where the leaders are encouraged to engage
with their teams during working hours through positive activities that strengthen togetherness and engagement,
such as environmental care initiatives, group movie sessions, collective CSR activities, and other team-building
initiatives. We also conduct Pulse Check Surveys to monitor employee conditions and perceptions, enabling timely
corrective actions when necessary. In addition, we provide various supporting facilities such as EV charging stations,
inter-office shuttle bus services, and a prayer facility.

Maternity Leave [401-3]
The Company grants maternity leave in accordance with national labour regulations and ensures that employees
who take maternity leave have the right to return to their roles without penalty. The following table presents maternity
leave data for 2025 compared to the previous two years:

                                                                      2025                  2024                2023
                       Description
                                                               Male      Female      Male      Female    Male        Female
Number of employees eligible for maternity leave                1,989          536    1,019        324       917        296
Number of employees taking maternity leave                        40            23      10          15        59         25
Number of employees returning to work                              37           19      10          15        53         24
Total number of employees returning to work after maternity        37           19      10          15        53         24
leave ends, who are still employed 12 months after returning
to work
The rate of employees taking maternity leave who return to     92.50%        82.61% 100,00% 100,00%      89,83%      96,00%
work and can be maintained


In 2025, 63 employees took maternity leave and 56 returned to work, representing a return to work rate of 88.89 %.
After twelve months, 56 of them continued their careers with XLSMART, demonstrating a retention rate of 100.00%
and reflecting a workplace environment that enables employees to return and continue their careers confidently.

Employee Training and Development [F.22] [GRI 404-1, 404-2] [ACGS C.6.2]
Capability development plays a central role in preparing employees for the Company’s digital transformation
and expanded operational scale. Training programs are designed to strengthen technical, leadership, and digital
competencies, ensuring that employees can adapt to evolving business needs. [GRI 3-3]

In 2025, XLSMART’s learning framework focuses on key strategic capabilities as follows:
1. Digital and system operational excellence;
2. Collaborative and adaptive leadership;
3. Governance and anti-bribery compliance;
4. Customer-centric transformation;
5. 5G and connectivity-driven business enablement;
6. AI and data literacy;
7. Digital trend foresight;
8. Continuous learning culture through digital platforms.




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Based on the aforementioned key capabilities, the Company has carried out the following training and development
programs:

                                  Training Title                                               Date           Participants
Socialization: ABAC & GDS Operational and VITAL System Hands-on (Batch 7)         5 May 2025                      320
Socialization ABAC & GDS Operational and VITAL System Hands-on (Batch 8)          5 May 2025                      293
Working as One: Leading Teams & Collaboration for Success                         17 June 2025                    248
Awareness & Socialization ISO 370001:2016 Anti Bribery Management System          18 June 2025                    180
From Customer Perspective to Leadership Action in Times of Change                 15 September 2025               259
5G to Business: Transforming Industries and Revolutionizing Connectivity          22 September 2025               515
AI for Everyone Seminar: Exploring of AI                                          24 September 2025               576
Podcast: Future Digital Trend                                                     30 September 2025               616
Online Learning though XLEARN & LinkedIn Learning                                 1 January - 21 December         991
                                                                                  2025


[S-05]
 Average Training Hours per Employee           Total Employees Participating in      Percentage of Employees Participating
               in 2025                            Training and Development                in Training and Development
                  45.2                                      3,222                                     99%



XLSMART also encourages employees to elevate their               easy access to information on HR-related policies and
skills. With a program called “Gear Up”, the Company             practices. In addition, employee data management
allocates adequate resources to covering the leadership          based on analytics has been implemented, enabling
development, technical skills training, soft skills training     faster and more accurate decision making. Meanwhile,
and internalization of work culture. The Company also            the Company also provides a digital application
encourages employees to become self-driven learners              called XLSMART Super App to facilitate employees
by providing eLearning platforms to strengthen a                 and continue to expand the implementation of digital
learning environment for all levels of organization. The         solutions to build an end-to-end digital HR ecosystem in
Gear Up program itself delivered through a combination           support of the Company’s organizational performance
of in class training, live online sessions, and self-paced       and long-term growth.
learning. In 2025, the program has reached more than
20,000 training participants, with 40 programs across            To ensure that training and development programs
192 training batched and achieving satisfaction score            remain effective and aligned with business priorities,
of 4.6 out of 5. Another initiative that successfully            XLSMART allocates a dedicated budget for employee
encourages the employees were the sharing program                development each year. The allocation is determined
from one chief to other division that help the employees         based on capability needs, strategic focus areas, and
to recognise the Company process as a whole entity.              the Company’s financial capacity.

In terms of digital transformation, employees were               In 2025, total training and development expenses
equipped with relevant competencies in areas such as             reached      Rp16,195,525,115,      compared        to
data analytics, artificial intelligence, digital platforms,      Rp7,449,117,233 in 2024. These investments reflect the
network technology, and agile ways of working, ensuring          Company’s continued commitment to strengthening
alignment with the Company’s evolving business and               employee     competencies,       supporting    digital
operational needs. Various work processes helped                 transformation, and preparing the workforce for post-
with the utilization of AI through a chatbot, to give an         merger operational needs.




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                               Training Fee
                                2025



                               Rp  16,195,525,115
                                2024   Rp7,449,117,233          2023       Rp8,314,806,611




Employee Performance Assessment [404-3]                    Performance assessments are conducted twice a
XLSMART evaluates employee performance to                  year, covering mid-year and year-end reviews. This
measure individual contributions to business objectives    approach allows the Company to monitor progress,
and ensure alignment with the Company’s strategic          identify development needs, and address performance
priorities. The assessment process is conducted            gaps before they affect year-end results.
objectively and transparently, based on Key
Performance Indicators (KPIs) that are agreed upon at      n 2025, all of the Company’s employees participated
the beginning of each year.                                in various training programs throughout the reporting
                                                           period, as part of the Company’s commitment to
The Company’s KPI framework is cascaded from               enhancing their competencies and supporting the
the CEO to each Directorate and then translated            achievement of the Company’s objectives. The detailed
into individual KPIs. This cascading process ensures       results of the 2025 performance assessments are
consistency across levels and strengthens the link         presented in the following table:
between employee goals and organizational targets.



                                                                       Number of Employees Assessed
                     Employee Level
                                                              Male                Female                 Total
2025
Chief                                                                 11                   0                      11
Group Head                                                           59                    18                     77
Head                                                                 255                   85                    340
Staff/Individual Contributor                                     1,978                  831                    2,809
Total                                                           2,303                   934                    3,237



In 2025, the performance assessment process also entered a transition phase as XLSMART harmonized KPI
structures, scoring mechanisms, and evaluation cycles across the merged organization. This integration ensures that
employees from different legacy entities are assessed under a consistent, transparent, and equitable framework.




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Occupational Health and Safety
[F.21] [GRI 403-1]


XLSMART remains committed to maintaining a safe,           5. Presidential Decree No. 22 of 1993 concerning
healthy, and sustainable working environment for all          Diseases Arising from Employment Relations.
employees across its integrated operations. As the         6. Occupational Health, Safety and Environment
Company enters its first year as a merged organization,       Policy (HSE) of XL Axiata.
the harmonization of Occupational Health and Safety        7. HSEMS Policy Manual of XL Axiata.
(OHS) practices forms a critical foundation for ensuring
operational continuity, employee wellbeing, and a          HSE Management Structure [GRI 403-8]
culture of shared responsibility throughout the new        XLSMART continues to adopt the HSE policy that was
organizational structure.                                  signed by XL Axiata’s CEO, Dian Siswarini, on 11 February
                                                           2022. The policy reflects the Company’s commitment to
The Company implements a comprehensive Health,             ensuring an efficient, healthy, secure, and eco-friendly
Safety, and Environment Management System (HSEMS)          workplace for employees, partners, and customers.
that adheres to Government Regulation No. 50 of 2012       Although the organization has transitioned into an
on Occupational Safety and Health Management               integrated entity following the 2025 merger, the principles
System, ISO 45001:2018 on Occupational Health and          outlined in this policy remain relevant and continue to
Safety Management System, and ISO 14001:2015 on            guide the XLSMART’s HSE practices. The Company also
Environmental Management System. These standards           implements ongoing enhancements to ensure alignment
guide XLSMART in strengthening OHS governance and          with evolving business needs, regulatory developments,
ensuring that all employees, regardless of their legacy    and industry standards.
entity, operate under consistent and reliable safety
protocols. [GRI 3-3]                                       The Company’s commitment to implementing HSE
                                                           across all operations is supported collectively by
The implementation of HSEMS aims to:                       employees from both legacy organizations. To ensure
1. Improve the effictiveness of planned, measurable,       effective and consistent implementation, XLSMART
   and integrated occupational health and safety           has designated the Facility Compliance and HSE
   programs.                                               Assurance Unit, under the Facility Operations and HSE
2. Engage management, workers, and/or trade unions/        Department, to lead, coordinate, and supervise the
   trade in preventing and reducing occupational           execution of the HSE Management System. This unit
   accidents and illnesses.                                plays a central role in ensuring regulatory compliance,
3. Establish a safe, comfortable, environmentally          monitoring operational risks, and maintaining robust
   responsible, and productive workplace that              internal controls across the integrated business.
   supports improved performance.
                                                           The Facility Compliance and HSE Assurance Unit is
Legal References                                           responsible for:
To ensure accuracy and regulatory alignment,               • Serving as Enterprise Business Partner
XLSMART refers to the following laws and regulations       • Conducting Hazard Identification and Risk Control
when implementing its Occupational Health and Safety          (IBPR)
Management System:                                         • Identifying Environmental Aspects and Impacts
1. Law No. 1 of 1970 on Occupational Safety.                  (IADL)
2. Law No. 13 of 2003 concerning Manpower.                 • Conducting compliance assessments for HSE-
3. Law No. 11 of 2020 on Job Creation has been                related laws and regulations
   updated with Law No. 6 of 2023 on the Ratification      • Setting goals, objectives and programs for
   of Government Regulation in Lieu of Law No. 2 of           Occupational Health, Safety, and Environment
   2022 on Job Creation into Law.                             (HSE)
4. Government Regulation of the Republic of                • Preparing and maintaining HSE documentation
   Indonesia No. 50 of 2012 on the Implementation             (policies, procedures, work instructions, standards,
   of Occupational Health and Safety Management               and forms)
   System (HSEMS).                                         • Implementing the Contractor Safety Management
                                                              System (CSMS)




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•   Organizing monthly HSE Meetings                        Occupational Health and Safety Advisory
•   Conducting HSE competency training                     Committee (P2K3) [GRI 403-4] [GRI 403-8]
•   Monitoring and Measuring HSE Performance               To strengthen the implementation of Occupational
•   Conducting HSE Inspections                             Health and Safety across the Company, XLSMART
•   Conducting HSE Audits; internal audits (at least       has established the Occupational Health and Safety
    once a year), second-party audits (vendors and         Advisory Committee (P2K3). The Committee functions
    partners, at least once a year), and external audits   as a joint forum for management and employees
    (third-party, at least once every three years)         to oversee HSE aspects, maintain consistent
•   Holding HSE Management Review Meetings at least        communication, and ensure active participation in the
    once a year                                            Company’s HSE programs. In 2025, P2K3 officially held
•   Implementing corrective and improvement actions.       a Kick-Off Meeting marking the commencement of
                                                           its new management term for the 2025–2028 period,
The organizational structure of the Facility Operation     reinforcing the Company’s collective commitment to
& HSE-Facility Compliance and HSE Assurance                fostering a stronger and more sustainable XLSMART
Department is illustrated in the following chart:          HSE Culture. Chaired by the Director & Chief Regulatory
                                                           Officer, P2K3 serves as a key communication forum
                                                           between management and employees.

                President Director & CEO                   The establishment of P2K3 is formally regulated under
                                                           the Decree of the DKI Jakarta Provincial Manpower,
                                                           Transmigration and Energy Office No. 2866 of 2022
               Chief Human Capital Officer                 dated 20 December 2022, and reinforced through the
                                                           Directors’ Decree dated 15 November 2023 regarding
                                                           the Formation of the P2K3 Team. P2K3 represents
                                                           employees across the organization and ensures that
    Group Head - People Service & Facility Management
                                                           HSE governance aligns with applicable regulations and
                                                           companywide standards.

             Head Facility Operation and HSE               To support its duties, the Company has appointed the
                                                           following leaders and members to the P2K3 structure:
                                                           • Chairman of P2K3: Merza Fachys (Director & Chief
    Department is illustrated
           Compliance         in the
                         and HSE     following chart:
                                  Assurance                    Regulatory Officer)
                                                           • Vice Chairman 1 P2K3: Marco Sumampouw (Chief
                                                               IR, GA, BFM Officer)
In addition to its HSE policy, XLSMART enforces internal   • Secretary of P2K3: Mery Pangloli (Facility Planning
regulations that specifically address sexual harassment        & Development)
and other prohibited conduct. As outlined in Article
51, the regulation defines actions that may result in      Members:
termination of employment, including:                      • Group Head
• Engaging in immoral acts or unlawful activities such     • Head
    as gambling within Company premises.                   • Employees
• Attacking, molesting, threatening, or intimidating       • XLSMART Workers’ Union
    co-workers or other individuals within the
    Company’s work environment (point g).




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                                       P2K3 ORGANIZATIONAL STRUCTURE


                                                       Chairman of
                                                     P2K3 (Director &
                                                     Chief Technology
                                                         Officer)
                 Vice Chairman 1                                                              Deputy Head 2
                      P2K3                                                                         P2K3
                  (Chief Human                                                               (Chief Enterprise
                 Capital Officer)                                                            Business Officer)



                                                                                                               Secretary of
                                                                                                              P2K3 (General
                                                                                                            Occupational Safety
                                                                                                             and Health Expert
                                                                                                               Certification)




                                                       Region-
 Head Office     Region-Jabo        Region-West                           East Region          Kalimantan             Sulawesi
                                                       Central
  (Member)        (Member)           (Member)                             (Members)            (Members)             (Members)
                                                      (Member)

1. Group Head    1. Group Head      1. Group Head    1. Group Head      1. Group Head        1. Group Head        1. Group Head
2. Head          2. Head            2. Head          2. Head               Representative       Representative       Representative
3. Employees     3. Employees       3. Employees     3. Employees       2. Head              2. Head              2. Head
4. XL Workers’   4. XL Workers’     4. XL Workers’   4. XL Workers’        Representative       Representative       Representative
   Union            Union              Union            Union           3. Employee          3. Employee          3. Employee
                                                                           Representatives      Representatives      Representatives




P2K3 is tasked with the following duties:                             3. Compliance with applicable laws and regulations as
1. Building an HSE-conscious culture;                                    well as other requirements related to Occupational
2. Providing safety performance reports every quarter                    Health, Safety, and Environment (HSE).
   to the Manpower Office;                                            4. Improvement of the effectiveness of the
3. Socializing HSE to employees through the Chairman                     HSE management system by strengthening
   of P2K3 (Director & Chief Technology Officer) and                     communication network systems, developing
   members representing Region-Jabo, Head Office,                        strong relationships with interested parties, and
   Region-West, and Region-Central;                                      implementing digital system applications.
4. Implementing various HSE-related trainings;                        5. Development of human resources with high
5. Ensuring HSE programs are effectively implemented                     awareness      while   encouraging     consultation
   and their performance;                                                processes and active participation of all workers
6. Develop risk-control measures against HSE hazards                     related to occupational health, safety, and
   in the work environment;                                              environmental practices.
7. Organizing management reviews held once a year.                    6. Implementation of the HSE management system and
                                                                         the execution of continual improvement to achieve
P2K3’s Duty Implementation in 2025                                       the occupational health, safety, and environmental
As part of its duties and responsibilities, P2K3 carried                 targets that have been established.
out a number of activities in 2025, including:
1. Provision of a safe, healthy, and environmentally
   friendly workplace to prevent work accidents,
   occupational diseases, and environmental issues.
2. Risk assessment as the basis for decision-making,
   planning, and implementation of the Occupational
   Health and Safety (OHS) management system.




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HSE Targets                                                       11. Management Walk Through programs.
XLSMART aligns its HSE targets with the Company’s                 12. HSE audit programs.
sustainability strategy to strengthen awareness among             13. Follow-up actions on inspection and audit findings.
internal and external stakeholders of the importance              14. Infrastructure improvement programs related to
of achieving zero work-accident fatalities as part of its             workplace safety and operational facilities.
operational performance and long-term organizational              15. Procurement of safety tools, personal protective
resilience.                                                           equipment (PPE), and work uniforms.
                                                                  16. Workplace environmental measurement and
HSE Work Programs in 2025                                             monitoring.
Further details of the 2025 HSE work programs are                 17. HSE coordination meetings.
presented below:                                                  18. Updating HSE documentation, including policies
1. HSE communication program implementation.                          and standard operating procedures (SOP).
2. Contractor HSE Plan implementation for 2025.
3. HSE Management Review implementation.                          Hazard Identification, Risk Assessment, and
4. Basic Safety e-Learning program for employees.                 Incident Investigation [GRI 403-2]
5. HSE Award program implementation.                              XLSMART       implements     a    comprehensive      HSE
6. HSE operational and competency training                        management system that includes hazard identification,
    programs.                                                     risk assessment, and incident investigation for both
7. Development of HSE e-learning modules and                      employees and contractors. This process covers field
    learning materials.                                           technicians, tower climbers, and fiber optic maintenance
8. Emergency preparedness programs.                               personnel who face high-risk working conditions. All
9. Regulatory compliance testing and monitoring.                  incidents are investigated to identify root causes and
10. HSE inspection programs across operational                    preventive measures. [GRI 403-2].
    facilities.




       Identified Risk              Potential Impact          Affected Workers             Control Measures/Mitigation
Working at height (tower      Falls from height, serious     Tower climbers, field Mandatory harness and fall protection,
climbing)                     injury, fatality               engineers,            work-at-height certification, double
                                                             contractors           lanyard use, daily equipment inspection,
                                                                                   supervision approval before ascent
Electrical hazards in fiber   Electric shock, burns,         Fiber optic            Lockout tagout procedures, insulated tools,
optic work                    equipment damage               technicians,           electrical safety training, pre-work voltage
                                                             contractors            testing
Weather and environmental     Slips, heat stress, exposure   Tower workers, fiber   Weather monitoring, work postponement
risks during outdoor work     to lightning or strong winds   teams, site            protocol, hydration breaks, PPE
                                                             surveyors              requirements
Working near active roads     Traffic accidents, collision   Field technicians,     Traffic cones, signage, reflective vests,
and public areas              risk                           contractors,           coordination with local authorities
                                                             installation teams
Manual handling and lifting   Muscle strain, back injury     Tower riggers, fiber   Manual handling training, lifting aids,
of heavy equipment                                           optic teams,           two-person lift rules
                                                             logistics handlers
Exposure to dust, fiber       Respiratory issues, eye        Fiber optic splicing   Masks, safety goggles, controlled work
particles, and chemicals      irritation                     teams                  areas, proper waste disposal




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       Identified Risk               Potential Impact         Affected Workers             Control Measures/Mitigation
Use of power tools and         Cuts, lacerations,            Technicians,           Tool inspection, PPE gloves, safety briefings
cutting equipment              equipment-related injury      contractors            before use
Working in remote or           Delayed emergency             Tower teams in rural   Lone worker protocol, GPS-based
isolated sites                 response, communication       areas, field           monitoring, routine check-in procedures
                               issues                        engineers
Vehicle and transportation     Road accidents during site    All field teams        Defensive driving training, vehicle
risks                          mobilization                                         maintenance schedule, journey
                                                                                    management planning
Psychosocial risks (fatigue,   Reduced focus, higher         Field workers,         Shift rotation, workload review, rest
long shifts, pressure)         incident likelihood           shift-based staff      requirements



To prevent and mitigate occupational health and                   Workplace Accidents and Occupational Diseases
safety risks throughout its value chain, XLSMART                  [F.21] [GRI 403-1] [GRI 403-9] [GRI 403-10] [ACGS C.6.1]
applies strict safety requirements for contractors,               XLSMART is committed to maintaining operational
especially those involved in tower construction and               excellence across all its business activities, including
fiber optic maintenance. All partners must comply with            by ensuring zero workplace accidents and preventing
the Company’s HSE standards, participate in safety                work-related illnesses. For three consecutive years, the
briefings, and undergo regular monitoring to ensure               Company has consistently recorded a zero accident
safe practices are implemented at all times [GRI 403-7].          rate per 200,000 or 1,000,000 man-hours and zero
                                                                  fatalities.
Work Accidents and Occupational Diseases [GRI
403-9] [GRI 403-10]                                               HSE Trainings [GRI 403-5] [S-05]
XLSMART always strives to maintain operational                    To enhance the capabilities of members of the Facility
excellence across all its activities, including ensuring          Operations and HSE Department and the Facility
zero workplace accidents and preventing any                       Compliance and HSE Assurance unit, XLSMART
occupational diseases. Over the past three years, the             provides continuous opportunities to participate in
Company has consistently recorded a very low level of             various HSE training programs. These trainings aim to
workplace incidents. In 2025, XLSMART again reported              strengthen awareness of the importance of effectice
a zero accident rate per 200,000 or 1,000,000 man-                HSE implementation and support the creation of
hours, reaffirming the Company’s commitment to                    a sustainable, safe workplace. Below are the HSE
maintaining a safe working environment with zero                  trainings conducted in in 2025:
fatalities.


                                  Training Title                                              Date                Participants
Emergency Response & HT Usage for XLST Floor Warden                                 3 February 2025                       35
Basic Life Support & First Aid for XLST Floor Warden                                13 February 2025                      40
Internal Audit for HSE & Enterprise team                                            20 June 2025                          10
Workshop & Awareness ISO 45001:2018, ISO 14001:2015, & ISO 22301:2018               4 July 2025                           8
HSE Inspection for FO team                                                          26 July 2025                          59
HSE Awareness for FO Sabang team                                                    2 August 2025                         25
Accident Investigation for FO team                                                  26 September 2025                     52
Emergency Response & Basic Life Support for BSD & Sabang Floor Warden               6 November 2025                       121
Hazard Identification & Risk Assessment for Partner                                 25 December 2025                      10
E-Learning Basic HSE for all employee                                               April-December 2025              1,995


Improving the Quality of Health at Work [GRI 403-3] [GRI 403-6]
Employee wellbeing remains a key priority for XLSMART. As part of the Company’s commitment to maintaining a
safe, healthy, and supportive workplace, employees are provided access to a wide range of health and wellness
facilities. These include fitness centers, daycare services, and lactation rooms for breastfeeding employees, as well
as several employee-led sports and wellness communities such as cycling, running, basketball, futsal, football,
religious study groups, and music communities. These initiatives aim to promote physical and mental wellbeing,
strengthen social connection, and enhance overall productivity.




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To further reinforce its health support programs, XLSMART also operates an internal health clinic staffed by certified
medical professionals. Employees may access occupational health services during office hours at no cost. The clinic
provides preventive care, early detection services, and routine health consultations, helping employees maintain
optimal health while fulfilling their responsibilities.

Through these facilities and initiatives, XLSMART strives to create a work environment that encourages healthy
habits, minimizes health-related risks, and supports sustained employee performance as the organization continues
its post-merger transformation.




Defined Benefits Program and Other
Pension Plan Obligations [GRI 201-3]
A company’s economic sustainability is supported in part by its ability to meet defined benefit and pension obligations
for retiring employees. XLSMART has structured its employee benefits and pension policies in accordance with the
Manpower Law. As stipulated in the Company Regulations and Collective Labour Agreement (CLA), the Company’s
statutory retirement age is 56 years old.

The Company provides employees with a comprehensive pension program consisting of:
1. DPLK (Financial Institution Pension Fund), which is a defined-contribution plan in which the Company contributes
   of 7% of wages and employees contribute 3%.
2. JP (Pension Guarantee) from BPJAMSOSTEK in the form of a defined-contribution scheme amounting to 3% of
   wages, of which the Company contributes 2% and employees contribute 1%.

The Company adjusts the maximum wage limit periodically in accordance with Government Regulation (PP) No.
45 of 2015. XLSMART calculated the estimated actuarial liabilities as of 31 December 2025 and 2024 based on
independent actuarial assessments issued in reports dated 5 February 2025, respectively.

As of 31 December 2025, the Company allocated Rp490,365 million to fund post-employment benefits, an increase
from Rp252,541 million allocated in 2024. XLSMART recorded 4 (four) employees retiring during the reporting period
and has fulfilled its defined contribution obligations for all retirees.




People Development Strategies
Going Forward
Entering the next phase of integration, XLSMART human capital has become one of a critical enabler of sustainable
growth, operational excellence, and long-term value creation. Building on the foundation established during the
post-merger integration period, the Company’s human capital strategy going forward is focused on strengthening
organizational capability, accelerating digital readiness, and fostering a high-performance, inclusive, and future-
ready workforce. With the new work culture, the Company initiate to continue the contribution to broader ESG
objectives by promoting equal opportunity, ethical labor practices, and long-term employability.




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   Shaping Inclusive and
Sustainable Digital Future




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Delivering Impact on Society [F.23] [F.25]
[GRI 413-1]




Gerakan Donasi Kuota at SMK Negeri 1 Cimahi, Jawa Barat




In 2025, XLSMART entered its first full year as one united company. The merger did more than combine networks
and capabilities, it opened a greater mission to serve, empower, and uplift communities across Indonesia with wider
reach and improved access to technology.

With broader reach comes greater responsibility, and XLSMART remains committed to ensuring that digital
transformation is accessible, meaningful, and beneficial for all segments of society, including underserved
populations, vulnerable groups, and communities outside major cities. Digital progress must translate into tangible
benefits for those who rely on technology for education, income, services, and daily communication.

Our social performance is managed through a structured approach covering planning, implementation, monitoring,
and evaluation to ensure measurable and sustainable outcomes. Focus areas are defined based on community
needs, stakeholder expectations, and historical learning. XLSMART works with ministries, regional governments,
NGOs, schools, libraries, and employee volunteers to expand reach and strengthen impact. Progress is monitored
through participation data, assessments, and community feedback to support continuous improvement. [GRI 3-3]




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Across Indonesia, our efforts are built on three priorities, based on the XLSMART CSR Tri Karsa:




                                                 Untuk Indonesia


                                              TRI KARSA
                                               XLSMART CSR


                                                Women
         Philantrophy                                                                      Education
                                              Empowerment




    • Peduli Bencana                      • Sisternet                           • Gerakan Donasi Kuota
    • Peduli Kesehatan                    • Female Future Leader                • Content Creator Academy
    • Peduli Disabilitas                  • SheInspire                          • Pesantren Digital
                                          • Bunda Pintar                        • Kelas Cerdas Digital
                                                                                • Teman UMKM

           Related SDGs:                         Related SDGs:                          Related SDGs:




                 Community development and empowerment from and for all
                                XLSMART CSR programs



                           Total CSR Funds Disbursed
                            2025



                           Rp   28.10 billion
                            2024   Rp35.63 billion               2023    Rp20.73 billion




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XLSMART PEDULI                                                  A similar initiative was implemented in Cianjur, West
                                                                Java, where employee donations were used to build a
Disaster Response and Emergency Aid                             small mosque equipped with a clean water facility that
Under the XL Axiata Peduli program, XLSMART provided            serves both religious activities and community access.
emergency relief aid to communities affected by natural         The infrastructure allows residents to obtain water
disasters in West Halmahera, Bandar Lampung, and                without relying on distant sources, reducing household
Pekalongan. The assistance was distributed directly to          burdens and improving hygiene for families in the area.
residents through XLSMART representatives and local
partners, ensuring fast and targeted delivery on the            Both projects were funded through employee zakat
ground.                                                         and infaq collected and managed by MTXLSMART. By
                                                                building permanent infrastructure rather than short-
In West Halmahera, assistance was provided to                   term assistance, XLSMART ensures that support
communities impacted by the eruption of Mount Ibu,              remains beneficial for years to come. These efforts
including residents of Sangaji Nyeku Village in Tabaru          reflect the Company’s commitment to strengthening
District. Emergency relief packages included masks,             community welfare, expanding access to basic needs,
blankets, drinking water, and basic necessities. In             and uplifting vulnerable groups beyond gender-
Bandar Lampung, XLSMART supported families                      focused programs.
affected by severe flooding in Way Lunik, Panjang
District, providing essential food supplies, baby               Digital Inclusion for People with Disabilities
formula, and children’s meals. Distribution was carried         XLSMART strengthened digital accessibility through
out by XLSMART’s regional sales team to ensure direct           Inklusi Disabilitas Berdaya 2025, a tailored digital-
delivery to evacuation areas. A similar initiative was          empowerment program for users with visual, hearing,
carried out in Petungkriyono, Pekalongan Regency,               and mobility impairments. Delivery combined online
where residents affected by flash floods received               learning and onsite sessions supported by accessible
drinking water, bread, and daily necessities through the        materials, sign-language interpretation, and hands-
Company’s local partners.                                       on digital practice to help participants gain confidence
                                                                and familiarity with technology.
In parallel with aid distribution, technical teams were
deployed to ensure that telecommunication services              Throughout the program, participants received
in all three locations remained operational. Most 4G            practical digital-skills education, covering safe internet
services continued running during the disaster, enabling        usage, content creation, social media promotion,
residents, first responders, and local authorities to stay      and basic skills in online business development.
connected in emergency conditions.                              Motivational sessions and peer discussions were
                                                                included to strengthen self-confidence and encourage
Clean Water Infrastructure by MTXLSMART                         communication skills, particularly for participants
MTXLSMART also provides long-term infrastructure                preparing to enter the workforce or build small
support to help underserved communities gain access             businesses from home.
to basic public facilities. One of the flagship initiatives
in 2025 was the clean water infrastructure project              Over 100 beneficiaries participated. Caregivers
in Nagakeo, East Nusa Tenggara (NTT). In this area,             reported improved motivation and independence, with
residents and students at Pondok Pesantren Al-Ummah             several participants beginning to promote products
Al-Islamiyah had limited access to clean water and              and services through social platforms with guidance
were required to walk long distances to collect water for       from mentors. The program shows how inclusive digital
daily needs.                                                    tools expand opportunity.

To address this, MTXLSMART funded and built a                   Mass Circumcision for Children with Disabilities
complete clean-water system consisting of a water               Through the Majelis Taklim XLSMART (MTXLSMART),
tower, distribution pipelines and filtration systems.           employees organized a series of mass circumcision
The project was carried out over four months and now            programs for children with disabilities. The first was
supplies clean water for daily consumption, sanitation,         held in Medan at Rumah Difabel Khadijah Sharaswaty
and religious activities for approximately 550 students         Indonesia, involving social partners and medical
and surrounding residents. The facility is operated             professionals. Sixty children with visual, hearing,
directly by local community managers, ensuring                  physical, and intellectual disabilities received free
sustainability and continuous benefit to the village.           circumcision, medical care, and gift packages.




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The program is fully funded through employee zakat contributions managed by MTXLSMART, demonstrating
employee-driven community solidarity. Similar activities were repeated in Banyumas and Tegal, benefited an
additional 128 children with events designed to be child-friendly, safe, and inclusive. Beyond the medical process,
XLSMART installed activity booths, distributed worship kits, and supported family connectivity through SIM
registration services at the venue.




Sistenet Festival



SISTERNET                                                  Advancing Women’s Digital Participation through
                                                           #1JutaSisterDigital
Women’s empowerment has been one of XLSMART’s              Through        Sisternet,       XLSMART       launched
longest-running social priorities. Through Sisternet,      #1JutaSisterDigital, a national gender-inclusive digital
XLSMART provides digital learning, entrepreneurship        acceleration program developed with the Ministry
development, financial literacy, and mentoring to          of Communication and Digital Affairs (Komdigi). The
strengthen women’s access to future skills and economic    initiative was formalized during the BRAVO-500
independence. As of 2025, Sisternet had reached            Summit 2025 in Jakarta, marking one of Indonesia’s
more than 1.3 million beneficiaries, including students,   largest public-private efforts to increase female
young professionals, micro entrepreneurs, and women        participation in the digital economy.
in rural areas. The approach is built on nationwide
access, hybrid learning models, and partnerships with      The initiative integrates Sisternet’s application with
ministries, universities, TBM communities, and women-      Komdigi’s Learning Management System, enabling
led organizations.                                         nationwide access to curated digital-literacy modules
                                                           and technology modules directly on the Sisternet app.
                                                           These modules cover cybersecurity, fintech, digital
                                                           content creation, and responsible digital behavior.




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A core component is the expansion of the Female Future     The program focuses on economic empowerment
Leader AI Bootcamp (FFL). Previously reaching 70,000       and psychosocial recovery for women preparing for
beneficiaries, the program will train over 100,000         reintegrate into society. Training consists of:
Indonesian women in AI fundamentals through hybrid
learning, combining digital bootcamps, campus-             Soft-skill Training (online)
based workshops, and online mentoring. Around 20           • Public speaking;
universities and women-focused communities are             • Entrepreneurship and financial literacy;
involved, helping extend coverage to rural and remote      • Mental-wellness and confidence development.
areas.
                                                           Hard-skill Training (onsite)
To secure long-term impact, XLSMART positioned             • Bread and pastry production;
BRAVO-500 Summit as a platform to mobilize support         • Tufting and textile-based craftwork; and
from Indonesia’s top 500 corporations, regulators,         • Product marketing.
technology leaders, startups, and the media. The
initiative encourages private-sector adoption of           Each Lapas is supported by a local mentor providing
gender-inclusive technology ecosystems and safer           post-training guidance, business incubation, and
digital spaces for women.                                  psychosocial support post-release. The program aims
                                                           to reduce social stigma, strengthen self-esteem, and
Currently, Sisternet has 1.3 million beneficiaries         help former inmates re-enter the workforce with a
consisting of MSME women, students, professionals,         marketable skill set.
and women in correctional facilities. With
#1JutaSisterDigital running from September 2025 to         Key results from the first implementation phase:
December 2026, XLSMART targets to grow it to 2.4           • 500 women trained across 10 cities;
million empowered women, one of the largest digital-       • 98% reported improved emotional management;
empowerment movements in the nation.                       • 100%       reported     increased  confidence  in
                                                             communication; and
This program directly supports national priorities,        • Inmate-run micro-businesses saw a 5% sales
including Indonesia Emas 2045, SDG 5 (Gender                 increase during the program period.
Equality), SDG 4 (Quality Education), SDG 8 (Decent
Work and Economic Growth), and SDG 9 (Industry,            In July 2025, the closing ceremony for the 2024–2025
Innovation and Infrastructure).                            cycle was held at Lapas Perempuan Kelas III Mataram,
                                                           NTB, attended by KemenPPPA and senior leadership
                                                           from XLSMART. Following a positive evaluation,
Empowering Women in Correctional Institutions              XLSMART and KemenPPPA announced an expansion
through SheInspire                                         plan through 2026, including:
XLSMART also delivers empowerment for women                • Extended post-release mentoring;
with limited access to formal education and economic       • Digital marketing support;
opportunities: female inmates in correctional              • Product photography training;
institutions.                                              • Access to e-commerce channels; and
                                                           • Collaboration with Balai Pemasyarakatan for
Through Sisternet and the Ministry of Women                    reintegration support.
Empowerment and Child Protection (KemenPPPA),
XLSMART implemented SheInspire Sinergi Berdaya:            Through SheInspire, XLSMART goes beyond one-
Bersinar Bangkit Bersama across 10 female correctional     time training, building an ecosystem for long-term
institutions (Lapas Perempuan) in Indonesia, including     independence and second chances. Support continues
Yogyakarta, Tangerang, Bandung, Lampung, Lombok,           after release through mentoring and access to online
Kerobokan, Medan, Makassar, Denpasar and NTB.              marketplaces, helping women earn independent
                                                           income and reduce vulnerability during reintegration
                                                           into society.




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Strengthening Community                Resilience      and     To ensure comfort and safety, participants received
Supporting Local Livelihoods                                   souvenirs, allowances, and travel insurance throughout
                                                               the trip. Premium travel services were provided for 40
Ramadan Social Programs: Semarak Ramadhan                      top-performing retailers, who won the Sales Racing
1446H                                                          Competition, earning a trip home using Innova and
During the holy month of Ramadan, MTXL Axiata                  Alphard units. Winners represented 10 retail outlets
carried out the Semarak Ramadhan 1446H program                 across Depok, Bogor, East Jakarta, South Jakarta,
through “Berbagi Kebaikan”, an employee-led initiative         North Jakarta, Kabupaten Bekasi, Kota Bekasi, and
that distributes essential food packages to communities        Kabupaten Tangerang.
in need across Sumatra. The assistance reached
orphans, the elderly, Islamic teachers, converts, bilal,       In addition to retailer support, XLSMART also organized
and mosque caretakers, and economically vulnerable             a separate Mudik Bareng program for employees and
families in Palembang, Medan, and Pekanbaru.                   their families, covering destinations in West Java,
                                                               Central Java, Yogyakarta, East Java, and Sumatra.
In Palembang, MTXL Axiata collaborated with Taman              Approximately 135 employees and family members
Pendidikan Al-Qur’an Griya Mutiara to distribute 33            joined the departure from the Company’s Head Office
packages at the XL Axiata Palembang office. In Medan,          in Jakarta using 3 dedicated buses.
more than 300 packages were delivered at Masjid
Taqwa Kampung Dadap through a collaboration                    The program is part of XLSMART’s effort to support safe
with Lazismu, Bank Indonesia, Pimpinan Cabang                  and affordable homecoming trips while strengthening
Muhammadiyah Kampung Dadap, and Pimpinan                       traditional distribution channels and partner
Cabang ‘Aisyiyah. In Pekanbaru, 33 packages were               motivation. This initiative also expresses the Company’s
distributed directly at the XL Axiata Pekanbaru office.        appreciation for its partners and contributes to national
                                                               traffic management efforts by providing safe and
The program was fully funded by monthly zakat                  organized travel alternatives during the peak holiday
and infaq contributions voluntarily collected from             season.
employees and management, managed transparently
by MTXL Axiata. Beyond seasonal charity, these funds           Gebyar Muharram 1447H: Nationwide Employee-Led
also support long-term community initiatives. Over             Philanthropy
the years, MTXL Axiata has helped build bridges,               Beyond Ramadan, XLSMART employees also
clean water facilities, village electricity access, houses     continued their social contribution through the annual
of worship, local roads, home renovations, and the             Gebyar Muharram 1447H, implementing the theme
construction of community water depots to ensure               #GebyarBerbagi and #BersamaDiMuharram. The
clean water availability. The initiative also includes         program distributed food packages, school supplies,
blood donation drives, mass circumcision programs              financial assistance and access-to-education support
for both general and disabled children, and other social       in more than ten cities across Indonesia, including
support activities carried out regularly in multiple cities.   Jakarta, Pekanbaru, Bandung, Palembang, Pontianak,
                                                               Banjarmasin, Surabaya, Makassar, and Banten.
Mudik Bareng: Safe Travel Access for Retailers and
Employees                                                      A key component of the program was a mass
XLSMART held the annual Mudik Bareng Gratis program            circumcision held simultaneously at:
for retail partners and employees in the Jabodetabek           • XLSMART Tower, South Jakarta;
area. A total of 600 participants traveled to destinations     • XLSMART Sabang, Central Jakarta; and
across West Java, Central Java, Yogyakarta, and East           • Cirebon, supported by trained medical professionals
Java. The Company prepared 12 large buses, 5 Innova,               from Lembaga Inisiatif Zakat Indonesia and DT
and 5 Alphard units to support the trip.                           Peduli Cirebon.




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More than 100 children benefited from this event, which      Strengthening Digital Inclusion and National
included hygiene facilities, medical support, and post-      Connectivity
procedure recovery. Additional community activities
included:                                                    Participation in UN CSW69: Global Advocacy on
• Movie day for orphaned children;                           Gender and Digital Inclusion
• MuharRUN (charity run);                                    To elevate Indonesia’s position in the global gender
• Charity rally;                                             equality movement, XL Axiata participated in the 69th
• Archery for children;                                      Commission on the Status of Women (CSW69) at the
• “Belanja Bareng” (Shopping with orphans); and              United Nations Headquarters in New York.
• Installation of clean water and community bridges.
                                                             Through a side event titled “Shaping an Inclusive Digital
The program was entirely funded by monthly                   Economy: Indonesia & India’s Leadership and ASEAN’s
employee zakat and sedekah contributions managed             Collaborative Vision”, XL Axiata presented Indonesia’s
by Majelis Ta’lim XLSMART (MTXLSMART). Over the              initiatives to create safe, equitable digital access for
years, MTXLSMART has gradually expanded its role             women, especially MSME owners and vulnerable
from short-term charity to tangible infrastructure           groups. The engagement strengthened XLSMART’s role
development, which includes building:                        as a regional advocate for digital equality in Southeast
                                                             Asia. [GRI 413-1]

            Bridges                                          Key highlights included:
                                                             • 1+ million women trained through Sisternet since
                                                                2015;
                                                             • Improved access to digital education and financial
            Clean water installations
                                                                literacy for women; and
                                                             • Internal Diversity & Inclusion policy with 33%
                                                                of managerial positions held by women, above
            Community electricity access infrastructure         industry average.

                                                             Participation in CSW69 aligned with Indonesia’s
                                                                commitment to:
            Public roads
                                                             • Reduce gender-based online harassment and
                                                                cyber-violence;
                                                             • Expand access to digital skills development for
            Houses of worship                                   women;
                                                             • Advance inclusion for rural and low-income women;
                                                                and
                                                             • Accelerate progress toward SDG 5 and Indonesia
Community Donations to Orphanages                               Emas 2045.
Separately, XLSMART also provided operational and
living support to Panti Asuhan Putri Tunas Harapan           Support for National Events: 2025 Pacu Jalur Festival
Aisyiyah in Pontianak. Senior leadership conducted           Ahead of the internationally-recognized Festival
a direct visit, distributing staple goods, educational       Pacu Jalur in Riau, XLSMART upgraded over 41 BTS
supplies, and support to foster children and caregivers.     and added 2 new sites specifically to support event
The donation was part of the wider XLSMART Berbagi           traffic. Across Riau province, more than 700 BTS were
initiative.                                                  upgraded to improve network reliability and throughput.
                                                             Enhanced network reliability supports tourism activity,
Another donation initiative was implemented in Karo,         digital content sharing, MSME transactions, and media
North Sumatera, where XLSMART distributed school             coverage, boosting cultural visibility and strengthening
supplies, Qur’an, Mukena, and Iqro learning books for        economic potential for Kuansing and surrounding
children at the foothills of Mount Sinabung. The event       regions.
included coordination with local community leaders,
religious educators, and academic representatives.




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Measuring Our Social Impact and
Value Creation
Each of our programs is designed to leave a sustainable    We have calculated the investment deployed through
impact. A woman who once felt limited now has the          several community empowerment programs. Based on
confidence to build her own income. A student in a small   the Social Return on Investment analysis, the program
town can study with reliable internet access. A family     recorded a ratio of 1:2.54. This means that for every
affected by a disaster can call for help because the       Rp1 invested by the Company, the program generated
network remains active. These are the real changes we      Rp2.54 in social value for stakeholders. This outcome
are committed to creating.                                 affirms the Company’s commitment to delivering social
                                                           investments that are effective, well-targeted, and
To evaluate impact meaningfully, XLSMART uses the          capable of generating a positive multiplier effect on
Social Return on Investment (SROI) method, which           community welfare.
measures intangible outcomes such as confidence,
emotional well-being, employability, and community         XLSMART also identifies, monitors, and minimize
preparedness. SROI helps quantify how the Company          potential adverse impacts during program execution.
resources translate into tangible benefits for society.    All activities are implemented in line with national and
                                                           international standards to ensure that beneficiaries are
In 2025, XLSMART reached thousands of beneficiaries        treated with respect, safety, and dignity. Continuous
across Indonesia through the XLSMART CSR Trikarsa          feedback from communities and program partners
programs. Total beneficiaries reached 232,696              informs our approach, ensuring each cycle becomes
people across multiple regions in Indonesia. To deliver    more impactful and inclusive. Monitoring results,
these efforts, the Company allocated Rp28.10 billion,      including coordination with local authorities, safety
including non-financial contributions monetized into       protocols, and post- activity evaluations indicated
Rupiah for reporting purposes.                             no significant negative impacts were recorded
                                                           throughout the execution of XLSMART’s programs, and
SROI assessments were applied to flagship programs         no public complaints were recorded related to their
including Sisternet, XLSMART Peduli, Pesantren Digital,    implementation. [GRI 413-2] [F.24]
Gerakan Donasi Kuota, Kelas Cerdas Digital, Bunda
Pintar and Teman Pintar.                                   XLSMART is committed to ensuring that its operational
                                                           activities respect and support the interests of
                                                           surrounding communities. We strive to maintain safe,
                                                           orderly, and considerate operations, especially in areas
                                                           located close to residential neighborhoods or public
                                                           facilities.




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XLSMART wants communities to feel heard and supported at all times. To ensure that communities can reach us
easily whenever needed, XLSMART provides dedicated communication channels that can be used for inquiries,
feedback, or operational concerns. The following contacts are available for public communication and coordination.



   Corporate Governance                      Corporate Communication &                   Investor Related
                                             Sustainability Program
            corpsec@xlsmart.co.id                                                              ir@xlsmart.co.id
                                                    corpcomm@xlsmart.co.id



                                    Product Inquiries, Complaints or Network-Related


   XL                                        AXIS                                        SMARTFREN

            customerservice@xlsmart.co.id           cs@axis.co.id                              customercare@smartfren.com




Contribution to Sustainable Development Goals (SDGs)
        Program               Coverage                                Impact                               Contribution to SDGs
Sisternet                    Nationwide     Empowering women everywhere in Indonesia to develop
                                            and increase their welfare through use of internet and
                                            technologies, thus preparing them for 4.0 industry.




Bunda Pintar                 Nationwide     The Bunda Pintar Program empowers women by improving
                                            digital access and literacy through free internet and hybrid
                                            digital literacy training, enabling them to use the internet
                                            productively, safely, and sustainably while strengthening
                                            their role as digital change agents in families and
                                            communities.
Gerakan Donasi Kuota         Nationwide     Improving the quality of education nationwide through the
(GDK)                                       increasing participation of XLSMART’s service users and
                                            the public at large to voluntarily donate their quota to be
                                            further distributed to schools across the country.
Content Creator              Nationwide     Nurtures students’ creativity and introduces opportunities
Academy                                     in the digital and creative economy, equipping them with
                                            mentorship and hands-on experience to explore future
                                            careers in the digital industry.



Teman UMKM                   Nationwide     The program strengthened sustainable business literacy,
                                            expanded networks among MSMEs and youth communities,
                                            and fostered a community-based growth ecosystem. Its
                                            impact goes beyond improving skills and digital exposure,
                                            contributing to local economic empowerment and
                                            promoting    an  inclusive,   sustainable     community
                                            development model aligned with the company’s ESG social
                                            commitments.




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       Program         Coverage                               Impact                                Contribution to SDGs
Kelas Cerdas Digital   Nationwide   Strengthens youth digital literacy by equipping students
                                    with essential digital skills and safety awareness,
                                    empowering them to use technology responsibly while
                                    fostering a positive and inclusive digital environment in
                                    schools.
Pesantren Digital      Nationwide   Enhancing knowledge of Santri/Santriwati through AI
                                    Digital Workshop for education, business and philanthropy.

XLSMART Peduli         Nationwide   Providing social supports to the victims of natural disasters
Bencana                             through distribution of emergency assistance programs.




XLSMART Peduli         Nationwide   Upscaling Digital Capacity of Disabilities through AI Digital
Disabilitas                         Workshop for education, business and philanthropy.




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Ensuring Responsible and
         Ethical Business




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Post-Merger Improvements to
Customer Experience
The 2025 merger not only integrated governance and          •   Introduction of Credit Control, a feature that allows
operations, but also delivered significant improvements         prepaid customers to lock their balance and prevent
to the customer experience across networks, services,           unauthorized deductions for paid SMS, subscription
and digital channels. XLSMART now brings together               content, or out-of-plan data usage, providing
the well-established XL, AXIS, and Smartfren brands             greater transparency and control.
under one ecosystem, supported by shared resources,         •   Implementation of SIM card registration using facial
integrated infrastructure, and unified service standards.       recognition, integrated with the national population
Key initiatives introduced during the first year of the         database to enhance accuracy, prevent identity
merger include:                                                 misuse, and support the government’s digital-
• Integration of the Customer Experience & Service              transformation agenda.
    Operation Center (CE & SOC) into a single national      •   Strategic partnerships with Huawei and ZTE,
    command center in BSD. The facility consolidates            strengthening nationwide network operations
    two previously separate Network Operation Centers           and enhancing employee capabilities in digital
    (NOCs) and enables real-time monitoring, faster             innovation and technology.
    escalation, and coordinated issue resolution across     •   For enterprise clients, XLSMART for Business
    business units.                                             expanded digital and connectivity through platforms
• Expansion of 4G LTE and VoLTE coverage through                such as ESTA and partnerships with technology
    the For Smartfren brand, reaching new areas                 providers, supporting digital transformation and
    including Aceh, Gianyar, Klungkung, Karangasem,             operational efficiency across multiple industries.
    and Kupang City-strengthening network reliability
    and ensuring faster, more stable data access in both    Collectively, these initiatives demonstrate how the
    urban and regional areas.                               merger is translating into tangible service improvements
• Launch of “Sarah,” a Generative AI–powered virtual        for customers, supported by a stronger brand
    assistant, enabling faster, more personalized, and      ecosystem, enhanced network reliability, improved
    solution-oriented customer interactions across          protection features, and more modern digital care.
    Smartfren Care digital platforms.




Customer Protection, Engagement
and Satisfaction
XLSMART serves millions of customers from across            Customer Data Privacy and Security [GRI 418-1]
diverse regions, demographics, digital-literacy levels,     Digital trust begins with privacy. XLSMART manages
and purchasing power segments. In such a varied             personal information responsibly and strictly within
landscape, customer relationships must be built on three    boundaries of the law. The Company’s Privacy
foundations: protection, engagement, and satisfaction.      Information Management System is anchored in ISO
XLSMART ensures that customers receive safe,                27701 and ISO 27001 certifications and has been
transparent, equitable, and responsive service through      consolidated into a single framework following the
a structured approach that integrates governance,           merger.
analytics, and intelligent service operations. [F.17]




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XLSMART also applies a Privacy by Design and Default        Protection from Spam and Fraud Calls
principle, ensuring that every new digital feature          Beyond customer education, XLSMART prevents
undergoes privacy risk assessments, encryption              spam calls, spoofed caller identities, and fraudulent
validation, and cybersecurity reviews prior to. Key         messages. The Company uses automated detection
initiatives in 2025 include:                                and blocking systems capable of monitoring unusual
• Strengthened biometric SIM registration supported         call and messaging patterns and restricting numbers
     by secure integration with the national population     that show high-risk activity in accordance with
     database;                                              Komdigi’s guidelines. Suspicious numbers may be
• Multi-factor authentication and AI-based anomaly          limited, blocked, or escalated to regulators for further
     detection to prevent unauthorized access;              action, helping prevent identity misuse and financial
• Annual independent privacy audits;                        fraud.
• Mandatory employee certification on personal data
     ethics;                                                The urgency of these efforts is underscroed by national
• Launch of the Data Transparency Portal, enabling          data. A public study covered in Tempo reported that
     customers to manage their data permissions in real     Indonesians receive an average of 16 spam calls per
     time.                                                  month, and around 89 percent of calls from unknown
                                                            numbers identified as spam. Indonesia ranks second
Customer Protection and Fair Treatment                      in the Asia-Pacific region, behind Hong Kong. ANTARA
The Company complies with the Consumer Protection           News, referencing the Global Call Threat Q4 2024
Law and adopts clear terms of service, transparent          report, also noted that Indonesia remains among the
pricing, and secure data-handling practices. Customer       countries with the highest spam exposure in Asia-
protection is reinforced through:                           Pacific, averaging 14 spam calls per person per month
• Standard Operating Procedures for inquiry and             and approximately 86 percent of unknown incoming
    complaint handling;                                     numbers categorized as spam. Regulator enforcement
• Secure verification for all customer interactions;        is increasing. According to a statement covered by
• Data privacy safeguards aligned with national             Selular.id, the Ministry of Communication and Digital
    regulations;                                            Affairs (Komdigi) blocked approximately 1.3 million
• Real-time service monitoring to minimize service          phone numbers in 2024 due to suspected fraudulent or
    disruptions;                                            spam activities.
• Accessible service channels through call centers,
    chat, and digital platforms;                            Building on XL Axiata’s previous fraud-prevention
                                                            systems–which limited SMS misuse and enabled
These measures ensure that customers receive                reporting of scam messages, XLSMART continues
transparent, reliable, and safe services throughout their   to strengthen its detection and filtering capabilities.
digital journey.                                            While spam remains an industry wide challenge, the
                                                            Company actively collaborates with regulators and
To protect users from fraud, XLSMART continuously           employs data-based monitoring to limit high-risk
educates customers not to share personal information        numbers and enhance user protection. Customers may
with unknown parties and to verify suspicious               report suspicious calls via call centers, WhatsApp, or
communications through the 24-hour Customer                 the MyXL application for immediate handling.
Service Center. As of 2025, there were no confirmed
data breaches or violations of privacy policies. This       Customer Engagement
outcome reaffirms the effectiveness of XLSMART’s            Customer engagement at XLSMART is driven by data,
responsible data governance practices.                      research, and continuous feedback from millions of
                                                            users to ensure services remain relevant, reliable, and
                                                            accessible. The Company assesses customer behavior,
                                                            product performance, and service interactions to
                                                            identify priorities, monitor satisfaction, and optimize
                                                            digital journeys. Engagement activities include:




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•     Product, pricing, and digital journey benchmarking against peer operators
•     Market insight studies to understand perception, purchasing power, and emerging user trends
•     Digital sentiment monitoring through social media and applications
•     Regular satisfaction surveys supported by TNPS analytics

To facilitate direct communication, XLSMART provides a 24/7 Integrated Customer Service managed by the Service
Management Directorate. Customers can access support anytime through:


                  Call Centers
                  • 817 via XL Number (Customer Regular)
                  • (021) 57959817 via non-XL Number
                  • 818 via XL Number (Customer Priorities)
                  • 820 via Nomor XL (Customer Home)
                  • 08170123442 via non-XL Number (Customer Home)



                  Digital Channels
                  • Live chat via MyXL App                         • Live chat via Axis web axis.co.id
                  • Live chat Priorities via MyXL Prioritas apps   • Live chat via MyXL Home App
                  • Live chat via web xl.co.id                     • Social media via Facebook @XLhomeid (XL Satu)
                  • Social media via Facebook (@myxlcare)          • Correspondence via email to xlhomecs@ xl.co.id
                  • Correspondence via email                         (XL Satu)
                     customerservice@xl.co.id                      • Messenger via Whatsapp 08170010820 (XL Satu)
                  • Live chat via Axisnet App                      • Live chat via web xlaxiata.co.id



                  Physical Service Points
                  • 93 XL Centers, including XLC Online nationwide
                  • 51 Smartfren Galleries
                  • 7 Smartfren Mini Gallery Corporate




Customer Satisfaction                                              Through real-time dashboards, machine-powered
Satisfaction is assessed through service quality,                  alarms, and predictive analytics, the CE & SOC enables
responsiveness, and issue resolution. The establishment            earlier detection of network anomalies, faster escalation
of Customer Experience & Service Operation Center                  processes, and coordinated cross-unit resolution.
(CE & SOC) marks a major post-merger milestone. The                This integrated system also provides a single national
center consolidates two previously separate Network                view of customer-service performance, significantly
Operation Centers (NOCs), formerly located at the XL               strengthening XLSMART’s ability to maintain service
Axiata Tower in Kuningan and the Smartfren facility                reliability and enhance customer satisfaction.
in BSD, into a single integrated hub at the XLSMART
Building in Bumi Serpong Damai (BSD) City, South                   The CE & SOC functions not only as a command center,
Tangerang. Fully operational integrated since July 2025            but also as a strategic hub that supports predictive and
the CE & SOC prioritizes nationwide network stability,             preventive operations. Its key functions and advantages
operational efficiency, and service effectiveness.                 are outlined below:


                           Function                                                       Advantage
Serve as an integrated center for monitoring service quality. To Built with network elements consisting of hundreds of thousands
support this function, the Company developed has developed a of alarms powered by machines, rather than manually, thus
unified monitoring room that consolidates 4 NOCs (Network successfully increasing the speed and accuracy of services.
Operation Centers): Telco Network, IT Infrastructure, IT apps,
and Billing.
Facilitate coordinated handling of potential issues related to Can anticipate future needs, especially regarding network
network performance and service quality.                       development plans and the adoption of the latest technology.
Monitor service dynamics comprehensively, the utilization of
customer service channels and facilities.




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Service Performance and Complaint Resolution
To always improve the quality of Integrated Customer Service, XLSMART conducts regular evaluations based on the
categories established in the Total Complaints criteria, following the Complaint Topic Standards set by Komdigi. The
criteria are as follows:

Report on Service Performance
                                                                                Komdigi
      Service Performance                          Parameter                                      2025            2024                2023
                                                                               Standards
Customer Complaint Handling Percentage     of                    customer       ≥ 95%             99.59%          97.86%             98.99%
Standards                   complaints resolved
Standard Service                       Number of service interruption            ≤ 2%                  0.3              0.5                0.6
                                       reports per 1,000 customers


The evaluation results indicate that reports on service interruptions improved from 0.5% in 2024 to 0.3% in 2025,
reflecting the Company’s commitment to enhancing customer experience and strengthening post-merger network
integration.

XLSMART also manages multiple communication channels to monitor public complaints and reports. The Company
uses this public feedback to improve the quality of its products and services. [F.24]

Report on Public Complaints based on Report Status
                                                          2025                             2024                               2023
             Report Status
                                                 Total            %              Total             %              Total                %
Resolved                                      1,343,312             99.99       1,635,365            99.99        1,181,139              99.93
In Process                                            1,498           0.01               233            0.01              882              0.07
Unresolved                                                0                0               0                  0               0                  0
Total                                        1,344,810            100.00        1,635,598          100.00         1,182,021            100.00


Public Complaint Reports based on Complaint Mechanism
                                                          2025                             2024                               2023
         Report Mechanism
                                                 Total            %              Total             %              Total                %
WBS                                                      N/A             N/A             N/A              N/A             N/A                 N/A
Email                                            452,728            33.70          109,091             12.78        274,835                23.25
By phone (hotline), digital, or walk in          892,082            66.30       1,426,507              87.22        907,186                76.75
Total                                        1,344,810            100.00        1,635,598          100.00         1,182,021            100.00


Total Complaints based on Topics
                                      Resolved                        In Process                       Unresolved
  Complaint Topic                                                                                                                     Total
                              Total               %              Total             %              Total             %
Mobile Internet              167,096              12.44               70            4.67                  0               0          167,166
Charging                     212,679              15.83             254            16.96                  0               0          212,933
Registration                 253,820              18.90             248            16.56                  0               0          254,068
Others                       709,717              52.83             926            61.82                  0               0          710,643
Total                     1,343,312           100.00              1,498          100.00                   0               0       1,344,810




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Customer Satisfaction Surveys [F.30]
XLSMART strives to strengthen customer satisfaction to ensure that service quality and overall experience remain
consistent throughout the integration process. Customer feedback continues to be collected, primarily through the
daily Net Promoter Survey (NPS). This survey aims to capture information on customer perceptions of XLSMART’s
brand and service quality, identify factors that affect customer satisfaction and improve the customer experience.
Insights from these surveys are used to identify key drivers of satisfaction and inform improvement initiatives across
the merged platforms, enabling the Company to refine digital journeys, enhance response times, and elevate the
end-to-end customer experience. In 2025, TNPS results showed an increase from 2024 to 2025 by 21%.




Labelling and Marketing [GRI 417-1]

XLSMART ensures that every product label and marketing material provides accurate, complete, and truthful
information regarding product features, usage terms, pricing, and benefits. Transparent communication is essential
for building customer trust, particularly in a diverse market with varying levels of digital literacy.

To ensure compliance, all promotional materials-across digital, print, broadcast, and influencer-based channels-
undergo a multi-layered internal approval process. This review includes verification on tariff clarity, service
limitations, auto-renewal mechanisms, and potential risks associated with third-party content or subscription
services. Marketing teams are required to follow ethical guidelines and ensure that visuals, taglines, and calls-to-
action do not mislead or create false expectations.

XLSMART adheres to the Consumer Protection Law, Komdigi's marketing and advertising standards, and internal
communication policies. The Company also applies clear disclosures on internet speed limits, fair usage policies,
subscription terms, and any potential additional fees to ensure transparency for customers. For services with auto-
renewal features, reminder notifications are provided, and customers have full control to activate or deactivate
the service through accessible digital channels. Customer feedback obtained from call centers, social media, and
complaint channels is continuously used to refine communication materials and prevent recurring misunderstandings,
particularly for value-added services and promotional offerings. [GRI 3-3]

In 2025, XLSMART recorded no incidents of non-compliance related to product labeling, misleading promotions, or
marketing activities. This outcome reflects the effectiveness of the Company’s preventive controls, ethical marketing
practices, and commitment to responsible communication. [GRI 417-2] [GRI 417-3]




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Digital Responsibilities, Inclusion
and Rights [F.28]
XLSMART envisions a digital ecosystem where                  To uphold product and service quality, XLSMART
technological progress is inclusive, responsible, and        applies a security framework known as Governance-
protective of users from online harm. To support this        Protection-Operations (GPO). This framework helps the
vision, the Company continues to implement initiatives       Company identify gaps, prioritize improvements, and
that expand access for underserved communities,              strengthen overall security readiness. Improvements
enhance digital literacy, and promote responsible online     include the completion of IT security policies,
behaviour, through programs such as:                         deployment of enhanced protection systems, and
• Smart Connectivity for All, supporting affordable          continuous monitoring to detect and mitigate attempted
    internet access in remote and rural areas;               breaches or vulnerabilities.
• Digital literacy and cyber-awareness programs for
    youth, women, and MSMEs;                                 Aligned with the Company’s commitment to ensuring
• Credit Control, a feature to prevent unintended data       the benefits and safety of its service solutions,
    deductions for prepaid users;                            XLSMART conducts periodic reviews to assess product
• “Sarah”, a Generative AI-powered virtual assistant,        impact and quality both before and after public release.
    enabling customers-including those in remote             A dedicated team ensures that:
    regions or with limited access to physical centers- to   1. Each product design meets aligns with actual
    receive personalized, real-time support;                     market needs.
• Facial recognition-based SIM registration, securely        2. All products and features pass rigorous quality
    integrated with the national population database;            assurance testing before launch.
    and                                                      3. Customer journeys are supported by procedures,
• ESTA (Enterprise Smart Technology & Automation)                policies and systems that safeguard customer data
    enabling business clients to optimize digital                from registration and activation through purchase,
    operations safely and efficiently.                           payment, and deactivation.

XLSMART’s policies are aligned with international            As part of this assessment process, XLSMART adopts
standards, including GSMA Principles for Responsible         three key approaches: rationalization, simplification
Mobile Connectivity and OECD Digital Ethics, which           and automation. These include establishing an
emphasize fairness, accountability, and respect for          Enterprise Product Catalog with standardized
user rights in the digital ecosystem. [GRI 3-3]              structures across product lines to support seamless
                                                             integration with the Order Management System. The
Product and Service Quality, Safety and Impact               Company also develops artificial intelligence and digital
[GRI 416-1] [GRI 416-2] [F.27] [F.29]                        automation to support decision-making, convergence
Through network convergence, XLSMART is enhancing            and personalization, enabling more accurate and
its agility and adaptability to support mobile, home         customer-centric product offerings.
internet and enterprise services. By integrating the
network assets of XL Axiata and Smartfren into a unified     XLSMART further optimizes parameter settings to
infrastructure of 225,649 BTS stations, the Company          support future product development and lifecycle
optimizes spectrum allocation, expands VoLTE                 maintenance. The internal IT team conducts quality
coverage and improves service stability in high-traffic      control for every product-both pre-launch and for those
areas. This strengthened network foundation positions,       already in the market. Product assessment are carried
the Company to meet evolving customers needs with            out with the following objectives:
broader coverage and superior reliability.




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                                                                  and Ethical Business



                                             Enterprise Product Catalog
                  Rationalization                      Simplification                    Automation
• Reduce product variants from 17,000 to 12,000        Reduce unnecessary • Reduce turnaround time by 50% from 7 days
• Structure the product portfolio into a maximum of 13 API Interaction      to 3 days
  product family templates                                                • Implement automated testing


Meanwhile, to anticipate any negative impact resulting      In 2025, XLSMART’s products and services were
from its operations, XLSMART has established a              evaluated for safety and impact. Based on this review,
dedicated complaint center. As part of its response to      the Company recorded:
customer reports, the Company applies the following         • No incidents of non-compliance related to health
measures:                                                      and safety impacts;
1. Providing prompt responses, for first-level complaint    • No violations of customer data privacy policies;
   handling and implementing an internal escalation         • No product recalls;
   system;                                                  • No health or safety incidents related to XLSMART’s
2. Conducting regular evaluations;                             services.
3. Maintaining openness to feedback;
4. Facilitating dialogue and providing compensation         These results reflect the Company’s commitment to
   when service issues cause inconvenience to               delivering safe, secure and high-quality products and
   customers.                                               services for customers across Indonesia.




Integrating Sustainability Into
Innovations [F.26] [F.27] [GRI 416-1] [GRI 416-2]
Innovation at XLSMART is designed to create solutions       XCamp Labs IoT functions as the Company’s innovation
that are safe, efficient and meaningful for customers       hub for prototyping Internet of Things solutions,
and society. Every idea is evaluated not only for its       automation tools, and smart connectivity use cases.
technical performance, but also for its environmental,      The lab provides a collaborative environment for
social and governance impact.                               product developers, engineers, and data specialists to
                                                            test, refine, and validate ideas before scaling.
Following the 2025 merger, XLSMART continues to
build a stronger innovation ecosystem grounded in           At the enterprise level, XLSMART has ESTA (Enterprise
responsibility and purpose. Ideas developed through         Smart Technology & Automation) serves as a unified
XCamp Labs IoT and the ESTA platform are assessed           digital platform that supports business clients in
for customer value, accessibility, safety and long-         improving operational efficiency and cyber resilience.
term environmental impact as part of the Company’s          ESTA was formally introduced during the BRAVO 500
sustainability-led approach to innovation. This ensures     SUMMIT in July 2025, an industry forum hosted by
each solution from concept to commercialization. In         XLSMART that brought around 500 companies, 1,500
this way, innovation becomes more than technology. It       executives and more than 30 expert speakers to discuss
becomes a pathway to inclusive, secure, and future-         the role of Artificial Intelligence and Cybersecurity
ready progress for Indonesia.                               across key sectors. These initiatives reflect that
                                                            innovation at XLSMART is not only technology-driven,
                                                            but also aligned with responsible and secure digital
                                                            development.




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As XLSMART strengthens its post-merger innovation            3. Credit Control Feature
pipeline, sustainability principles guide product planning      XLSMART introduced Credit Control feature to
and solution development. These principles help ensure          help prepaid customers protect their balance
that new solutions remain efficient, safe and relevant for      from unintended deductions for SMS, subscription
customers. XLSMART is still harmonizing the innovation          content, or out-of-plan data usage. This feature
processes of XL Axiata and Smartfren. During this               enhances transparency, prevents accidental
transition, sustainability considerations are integrated        charges, and supports responsible digital
into planning, testing, and refinement to ensure new            consumption.
solutions deliver customer value with responsible
resource use and ethical technology practices.               4. Facial Recognition for SIM Registration
                                                                To strengthen customer protection and reduce
Our Innovations in 2025                                         identity misuse, XLSMART implemented facial
Two    flagship   innovations demonstrate  how                  recognition for SIM registration, integrated with the
sustainability and innovation move together at                  national population database. The system enhances
XLSMART:                                                        data accuracy while supporting the government’s
                                                                digital transformation agenda.
1. Autonomous Drone for Goods Delivery
   Developed in collaboration with ASTRAtech, this           5. ESTA-Enterprise Smart Technology & Automation
   innovation supports more efficient and safer                 Through XLSMART for Business, the Company
   logistics by reducing dependence on conventional             launched ESTA, a unified digital platform that
   transport and shortening delivery time, particularly         enables secure and efficient enterprise operations.
   in remote areas. It aligns with national digital             ESTA enhances automation, digital processes
   transformation goals and contributes to smarter              management, and cybersecurity readiness. The
   supply chain operations.                                     platform was introduced during the BRAVO 500
                                                                SUMMIT to industry stakeholders representing 500
2. Generative AI-powered “Sarah”                                companies, 1,500 senior executives, and more than
   “Sarah” provides fast, personalized assistance               30 expert speakers.
   through digital platforms, helping customers resolve
   issues without waiting for manual intervention. The
   solution improves accessibility for customers in
   remote areas, supports users with limited mobility,
   and reduces dependence on physical service
   centers.




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                                         This Report




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      About
This Report




     2025 Sustainability Report   161
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                                                                      This Report




About This Report [GRI 2-2] [GRI 2-3]

PT XLSMART Telecom Sejahtera Tbk prepares and                The Sustainability Report is released as an integrated
publishes a Sustainability Report on a consistent basis      component of XLSMART’s Annual Report, which is
as a key communication medium for stakeholders,              published as a separate document. The sustainability
presenting the Company’s sustainability performance,         reporting period is aligned with the Company’s
commitments, and progress. This report represents the        financial reporting period. The report was released in
first full-year sustainability disclosure of XLSMART as      14 April 2026 or within the timeframe stipulated by the
a unified entity following the merger and reflects the       Financial Services Authority (OJK) for the submission
integration of sustainability performance, governance,       of Sustainability Report. The previous Report was
and data across the combined organisation. The report        published in March 3, 2025.
discloses XLSMART’s economic, environmental, social,
and governance (ESG) performance for the period              The preparation of this report refers to the following
from 1 January to 31 December 2025, unless otherwise         regulatory frameworks and standards:
stated.                                                      • OJK Regulation No. 51/POJK.03/2017 on the
                                                                Implementation of Sustainable Finance;
The financial information presented in this Sustainability   • SEOJK No. 16/SEOJK.04/2021 on the Form and
Report forms part of the consolidated data of the               Content of Annual Reports;
Company and its subsidiaries and has been audited by         • Global Reporting Initiative (GRI) Standards 2021
an independent Public Accounting Firm in accordance             with the “with reference” option.
with applicable auditing standards. Non-financial
information, including policies, programmes, and             The content indexes for each applicable framework
environmental and social performance, is presented           are presented at the end of this report to enhance
based on clearly defined reporting boundaries, whether       traceability, credibility, and transparency of the
covering all entities or specific operational units, as      disclosed information.
relevant.




Reporting Principles

To ensure the quality, consistency, and credibility of the disclosed information, this Sustainability Report has been
prepared in accordance with the following principles:


       Accuracy                      Clarity                     Completeness                  Timeliness

                                     Comparability               Sustainability                Verifiability
       Balance
                                                                 Context



These principles guide the determination of report content, scope, measurement methodologies, and presentation,
ensuring that the information fairly, transparently, and comprehensively reflects the Company’s sustainability
performance.




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Reporting Scope and Boundaries
The scope of this report covers the sustainability performance of PT XLSMART Telecom Sejahtera Tbk and its
subsidiaries, encompassing economic, environmental, social, and governance aspects. The reporting boundaries
follow the Company’s consolidated structure following the merger, reflecting the integration of entities and operations
within the XLSMART Group, and are aligned with the consolidation applied in the Company’s financial statements,
unless otherwise specified for certain disclosures.

The scope of topics and disclosures is determined based on the results of the Double Materiality Assessment, which
identifies priority sustainability issues according to their financial significance to the Company as well as their
impacts on society and the environment. The assessment serves as the basis for determining the focus area and
depth of reporting in this Sustainability Report. There were no restatements of information in this report. [GRI 2-4]




External Assurance [G.1] [GRI 2-5] [GRI 2-14]
For the current reporting year, the Company did not engage an external assurance provider to independently verify
this Sustainability Report. Nevertheless, internal verification and control processes were implemented to ensure the
accuracy, consistency, and reliability of the disclosed information.

The highest governance body, comprising the Board of Commissioners, the Board of Directors, and the Sustainability
Unit, is responsible for overseeing the accuracy and transparency of sustainability information, including the
validation of material topics and key disclosures. Sustainability data and reporting progress are reviewed on a
quarterly basis through the BRCC and RBCC, with final approval granted in 14 April 2026.




Feedback from Stakeholders [G.3] [GRI 2-26]
XLSMART welcomes feedback and input from stakeholders as part of its commitment to continuous improvement in
sustainability performance and reporting quality. As of the submission of this Sustainability Report, the Company did
not receive any feedback related to the previous year’s report.

For further information or inquiries regarding this Sustainability Report, please contact:



PT XLSMART Telecom Sejahtera Tbk                                      Phone: +622157959817, +62215761880

XLSMART Tower
Jl. H.R Rasuna Said X-5 Kav. 11-12 East Kuningan,
                                                                      e-mail: corpsec@xlsmart.co.id
Setiabudi, South Jakarta 12950




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Feedback From [G.2]
Thank you to you for reading the 2025 Sustainability Report of PT XLSMART Telecom Sejahtera Tbk. To improve the
content of the Sustainability Report in the coming years, we hope that you will be willing to fill out this Feedback Form
by circling one of the answers and filling in the available points.


 1. The Sustainability Report is interesting and easy to understand:
      a. Agree                       b. Disagree                          c. Don’t Know


2. This report already describes the Company’s performance in supporting the realization of sustainable development:
      a. Agree                       b. Disagree                          c. Don’t Know


3. This report increases your confidence in the sustainability of the Company.
      a. Agree                       b. Disagree                          c. Don’t Know


4. The materials and data in this Sustainability Report are quite complete.
      a. Agree                       b. Disagree                          c. Don’t Know


5. Are the designs, layouts, graphics and photographs in this Sustainability Report good?
      a. Agree                       b. Disagree                          c. Don’t Know


6. What material topics are most important to you?




7. What material topics are least important to you?




8. What information is considered to be lacking from this Sustainability Report and needs to be added to future Sustainability
   Reports?




Identity of Sender:                                                    Identify by stakeholder category:
                                                                       a. Shareholder
Name :                                                                 b. Government/Regulator
                                                                       c. Community
E-mail :                                                               d. Customer
                                                                       e. Employee
                                                                       f. Business Partners
                                                                       g. Mass Media
                                                                       h. NGO
                                                                       i. Others, please state .............




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GRI Universal Standard Index - 2021
                               Disclosure                                        Omission                  GRI Sector
 GRI Standard                                              PAGE    Requirement                             Standard
                             Index No. Titles                                     Reason    Explanation     Ref. No.
                                                                     Omitted
GENERAL DISCLOSURES
Organization and Reporting Practices
GRI 2: General     2-1 Organizational details               48
Disclosures 2021   2-2 Entities included in the             162
                   organization’s sustainability
                   reporting
                   2-3 Reporting period, frequency          162
                   and contact point
                   2-4 Restatements of information          163
                   2-5 External assurance                   163
                   Activities and Employees
                   2-6 Activities, value chain and          48
                   other business relationships
                   2-7 Employees                        122-126
                   2-8 Workers who are not                  126
                   employees
                   Sustainable Governance
                   2-9 Governance structure and             75
                   composition
                   2-10 Nomination and selection of         81
                   the highest governance body
                   2-11 Chair of the highest                75
                   governance body
                   2-12 Role of the highest                 78
                   governance body in overseeing
                   the management of impacts
                   2-13 Delegation of responsibility        78
                   for managing impacts
                   2-14 Role of the highest                 78
                   governance body in sustainability
                   reporting
                   2-15 Conflicts of interest               87
                   2-16 Communication of critical           90
                   concerns
                   2-17 Collective knowledge of the         83
                   highest governance body
                   2-18 Evaluation of the                   79
                   performance of the highest
                   governance body
                   2-19 Remuneration policies               82
                   2-20 Process to determine                82
                   remuneration
                   2-21 Annual total compensation          82-83
                   ratio
                   Policy Strategies and Implementations
                   2-22 Statement on sustainable       36, 39-40
                   development strategy
                   2-23 Policy commitments                  36
                   2-24 Embedding policy                   43-44
                   commitments




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                               Disclosure                                      Omission                 GRI Sector
  GRI Standard                                         PAGE      Requirement                            Standard
                            Index No. Titles                                    Reason    Explanation    Ref. No.
                                                                   Omitted
                   2-25 Processes to remediate           90
                   negative impacts
                   2-26 Mechanisms for seeking           91
                   advice and raising concerns
                   2-27 Compliance with laws and         93
                   regulations
                   2-28 Membership associations          65
                   Stakeholders Engagement
                   2-29 Approach to stakeholder        89-90
                   engagement
                   2-30 Collective bargaining           127
                   agreements
Material Topics
GRI 3: Material    3-1 Process to determine material   36-37
Topics 2021        topics
                   3-2 List of material topics         37-38
DISCLOSURE OF SPECIFIC TOPICS
Economic Impacts
                   Economic performance 201
GRI 3:             3-3 Management of material           110
Management         topics
Approach 2021
GRI 201:           201-1 Direct economic value           111
Economic           generated and distributed
Performance        201-2 Financial implications and    116-117
2016               other risks and opportunities due
                   to climate change
                   201-3 Defined benefit plan           137
                   obligations and other retirement
                   plans
                   201-4 Financial assistance            115
                   received from government
                   Market presence 202
GRI 3:             3-3 Management of material           128
Management         topics
Approach 2021
GRI 202: Market    202-1 Ratios of standard entry       128
Presence 2016      level wage by gender compared to
                   local minimum wage
                   202-2 Proportion of senior            113
                   management hired from the local
                   community
                   Procurement practices 204
GRI 3:             3-3 Management of material           114
Management         topics
Approach 2021
GRI 204:           204-1 Proportion of spending on       115
Procurement        local suppliers
Practices 2016




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                                 Disclosure                                    Omission                  GRI Sector
  GRI Standard                                          PAGE     Requirement                             Standard
                             Index No. Titles                                   Reason    Explanation     Ref. No.
                                                                   Omitted
                    Anti-corruptions 205
GRI 3:              3-3 Management of material           88
Management          topics
Approach 2021
GRI 205:            205-1 Operations assessed for        88
Anti-corruption     risks related to corruption
2016                205-2 Communication and              88
                    training about anti-corruption
                    policies and procedures
                    205-3 Confirmed incidents of         88
                    corruption and actions taken
Environmental Impacts
                    302 Energy
GRI 3:              3-3 Management of material           98
Management          topics
Approach 2021
GRI 302: Energy     302-1 Energy consumption within      99
2016                the organization
                    302-2 Energy consumption            100
                    outside of the organization
                    302-3 Energy intensity               99
                    302-4 Reduction of energy            99
                    consumption
                    302-5 Reductions in energy           99
                    requirements of products and
                    services
                    303 Water and Effluents
GRI 3:              3-3 Management of material          104
Management          topics
Approach 2021
GRI 303: Water      303-3: Water Withdrawal             104
and Effluents       303-4: Water Discharge              104
2018
                    303-3: Water Consumption            104
                    304 Biodiversity
GRI 3:              3-3 Management of material          105
Management          topics
Approach 2021
GRI 304:            304-1: Operational sites owned,     105
Biodiversity 2016   leased, managed in, or adjacent
                    to, protected areas and areas of
                    high biodiversity value outside
                    protected areas
                    305 Emissions
GRI 3:              3-3 Management of material          100
Management          topics
Approach 2021
GRI 305:            305-1 Direct (Scope 1) GHG          100
Emissions 2016      emissions
                    305-2 Energy indirect (Scope 2)     100
                    GHG emissions
                    305-3 Other indirect (Scope 3)      100
                    GHG emissions
                    305-4 GHG emissions intensity       100
                    305-5 Reduction of GHG             100-101
                    emissions




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                             Disclosure                                        Omission                 GRI Sector
  GRI Standard                                          PAGE     Requirement                            Standard
                          Index No. Titles                                      Reason    Explanation    Ref. No.
                                                                   Omitted
                 GRI 306: Waste
GRI 3:           3-3 Management of material              101
Management       topics
Approach 2021
GRI 306: Waste   306-1: Waste generation and            102
2020             significant waste-related impacts
                 306-2: Management of significant      101-102
                 waste-related impacts
                 306-3: Waste generated                 103
                 306-4: Waste diverted from             103
                 disposal
                 306-5: Waste directed to disposal      103
                 401 Employment
GRI 3:           3-3 Management of material              121
Management       topics
Approach 2021
GRI 401:         401-1 New employee hires and          121-122
Employment       employee turnover
2016             401-2 Benefits provided to              128
                 full-time employees that are not
                 provided to temporary or
                 part-time employees
                 401-3 Parental leave                    129
                 403 Occupational health and safety
GRI 3:           3-3 Management of material              132
Management       topics
Approach 2021
GRI 403:         403-1 Occupational health and           132
Occupational     safety management system
Health and       403-2 Hazard identification, risk     135-136
Safety 2018      assessment, and incident
                 investigation
                 403-3 Occupational health             136-137
                 services
                 403-4 Worker participation,           133-134
                 consultation, and communication
                 on occupational health and safety
                 403-5 Worker training on                136
                 occupational health and safety
                 403-6 Promotion of worker health        136
                 403-7 Prevention and mitigation         136
                 of occupational health and safety
                 impacts directly linked by business
                 relationships
                 403-8 Workers covered by an             132
                 occupational health and safety
                 management system
                 403-9 Work-related injuries             136
                 403-10 Work-related ill health          136




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                                Disclosure                                        Omission                  GRI Sector
  GRI Standard                                             PAGE     Requirement                             Standard
                             Index No. Titles                                      Reason    Explanation     Ref. No.
                                                                      Omitted
                    404 Training and education
GRI 3:              3-3 Management of material              129
Management          topics
Approach 2021
GRI 404: Training   404-1 Average annual training           130
and Education       hours per employee
2016                404-2 Programs for upgrading          129-130
                    employee skills and transition
                    assistance programs
                    404-3 Percentage of employees           131
                    receiving regular performance
                    and career development reviews
                    405 Diversity and Equal Opportunity
GRI 3:              3-3 Management of material              122
Management          topics
Approach 2021
GRI 405: Diversity 405-1 Diversity of governance          122-123
and Equal          bodies and employees
Opportunity 2016 405-2 Ratio of basic salary and            128
                   remuneration of women to men
                    406 Non Discrimination
GRI 3:              3-3 Management of material              126
Management          topics
Approach 2021
GRI 406: Non        406-1: Incidents of discrimination      126
Discrimination      and corrective actions taken
2026
                    408 Child labor
GRI 3:              3-3 Management of material              126
Management          topics
Approach 2021
GRI 408: Child      408-1 Operations and suppliers at       126
Labor 2016          significant risk for incidents of
                    child labor
                    409 Forced or compulsory labor
GRI 3:              3-3 Management of material              126
Management          topics
Approach 2021
GRI 409: Forced     409-1 Operations and suppliers at       126
or Compulsory       significant risk for incidents of
Labor 2016          forced or compulsory labor
                    413 Local communities
GRI 3:              3-3 Management of material             140
Management          topics
Approach 2021
GRI 413: Local      413-1 Operations with local           140-149
Communities         community engagement, impact
2016                assessments, and development
                    programs
                    413-2 Operations with significant       147
                    actual and potential negative
                    impacts on local communities




                                                                                    2025 Sustainability Report      169
Page 172
                                                                    About
                                                                    This Report



                             Disclosure                                       Omission                 GRI Sector
  GRI Standard                                        PAGE      Requirement                            Standard
                           Index No. Titles                                    Reason    Explanation    Ref. No.
                                                                  Omitted
                  416 Customer health and safety
GRI 3:            3-3 Management of material            157
Management        topics
Approach 2021
GRI 416:          416-1 Assessment of the health      157-158
Customer Health   and safety impacts of product and
and Safety 2016   service categories
                  416-2 Incidents of non-              158
                  compliance concerning the health
                  and safety impacts of products
                  and services
                  417: Marketing and Labeling
GRI 3:            3-3 Management of material           156
Management        topics
Approach 2021
GRI 417:          417-1: Requirements for product      156
Marketing and     and service information and
Labeling 2016     labeling
                  417-2: Incidents of non              156
                  compliance concerning product
                  and service information and
                  labeling
                  417-3: Incidents of non              156
                  compliance concerning marketing
                  communications
                  418 Customer Privacy
GRI 3:            3-3 Management of material          92, 152
Management        topics
Approach 2021
GRI 418:         418-1: Substantiated complaints        92
Customer Privacy concerning breaches of customer
2016             privacy and losses of customer
                 data




170      PT XLSMART Telecom Sejahtera Tbk
Page 173
                                                                                            Connecting Indonesia:
                                                                                          One Purpose - One Planet




POJK 51/2017 Index [OJK G.4]

INDEX NO.                                              INDEX NAME                                                   PAGE
SUSTAINABILITY STRATEGY
A.1          Explanation of Sustainability Strategy                                                                     36
SUSTAINABILITY PERFORMANCE HIGHLIGHTS
B.1          Economic Performance Highlights                                                                            8-9
B.2          Environmental Performance Highlights                                                                   10-12
B.3          Social Performance Highlights                                                                          13-15
COMPANY PROFILE
C.1          Vision, mission, and value of Sustainability                                                          50-51
C.2          Company’s Address                                                                                          48
C.3          Scale Enterprises                                                                                     66-67
C.4          Products, services, and business activities                                                           68-69
C.5          Member of Association                                                                                      64
C.6          Change of Significant Organization                                                                         49
DIRECTORS STATEMENT
D.1          Directors Statement                                                                                    25-31
SUSTAINABILITY GOVERNANCE
E.1          Management of Sustainable Finance Implementation                                                           84
E.2          Competency Development related to Sustainable Finance                                                      83
E.3          Risk Assessment for Sustainable Finance Implementation                                                85-86
E.4          Stakeholders Engagement                                                                               89-90
E.5          Challenges of Sustainable Financial Implementation                                                    86-87
SUSTAINABILITY PERFORMANCE
F.1          Building A Culture of Sustainability                                                                  43-44
ECONOMIC PERFORMANCE
F.2          Comparison of performance Target and Production, Portfolios, Financial Target, or Investment,              112
             revenue and Profit and Loss
F.3          Comparison of performance Target and Production, Portfolios, Financial Target, or Investment               112
             on Financial Instruments or Projects in line with Sustainable Finance Implementation
ENVIRONMENTAL PERFORMANCE
General
F.4          Environmental Costs                                                                                   97-98
Material Aspects
F.5          The Use of Environmentally Friendly Materials                                                        103-104
Energy Aspects
F.6          The number and the intensity of energy use                                                                 99
F.7          The efforts and achievements made energy efficiency including the use of renewable energy             98-99
             sources
Water Aspects
F.8          Water Consumption                                                                                      104
Biodiversity Aspects
F.9          The impact of operational areas near or in the area of conservation or biodiversity                  105-106
F.10         Biodiversity Conservation Efforts                                                                          106
Emission Aspects
F.11         The number and intensity of Emissions Produced Base by Type                                            100
F.12         The efforts and achievement of emission Reduction undertaken                                      41-43, 100-101




                                                                                           2025 Sustainability Report         171
Page 174
                                                                          About
                                                                          This Report



 INDEX NO.                                            INDEX NAME                                        PAGE
Aspect of Waste and Effluents
F.13         The Amount of Waste and Effluent Generated by Type                                          103
F.14         Waste and Effluent Management Mechanism                                                     103
F.15         Spill that Occurred (if any)                                                                105
Aspect of Environmental Complaints
F.16         The number and material environmental complaints received and resolved                      107
SOCIAL PERFORMANCE
F.17         The Company’s commitment to deliver products and/or services equivalent to the consumer     152
Employment Aspects
F.18         Equality of Employment Opportunities                                                        120
F.19         Child Labor and Forced Labor                                                                126
F.20         The Minimum Wage                                                                            128
F.21         Environmental work decent and safe                                                          122
F.22         Training and Competency Development for Employees                                         129-131
Community Aspects
F.23         Operational Impacts to Local Communities                                                  140-149
F.24         Public Complaints                                                                           147
F.25         Environmental Social Responsibility Activity                                              140-146
Responsibility on the Development of Sustainable Finance Products and/or Services:
F.26         Innovation and Development of Sustainable Finance products and/or services                158-159
F.27         Customer Safety                                                                           157-158
F.28         Impact of Products/Services                                                                 157
F.29         The number of products recalled                                                             158
F.30         Survey of customer satisfaction                                                             156
OTHERS
G.1          Written Verification from an Independent Parties (if any)                                   163
G.2          Feedback Sheet                                                                              164
G.3          Response to Previous Year's Report Feedback                                                 163
G.4          POJK 51/2017 Index                                                                        171-172




172       PT XLSMART Telecom Sejahtera Tbk
Page 175
Sustainability Report

2025
PT XLSMART Telecom Sejahtera Tbk
XLSMART Tower
Jl. HR Rasuna Said X5. Kav.11–12,
East Kuningan, Setiabudi, South Jakarta
Jakarta 12950-Indonesia
Tel. (62-21) 576 1881
Fax. (62-21) 576 1880
e-mail. corpsec@xlsmart.co.id
www.xlsmart.co.id

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Pages175
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Names mentioned 108 people and organisations named in the text · linked when the evidence is strong

linked org XLSMART Telecom Sejahtera Tbk p.1 ×214
linked org XL Axiata p.3 ×55
linked org XLSMART Telecom p.18 ×3
linked org Sinar Mas p.18 ×3
linked person RAJEEV SETHI · President Director & p.26 ×4
linked org Smartfren Telecom Tbk p.27 ×16
linked org PT Smart Telecom p.27 ×8
linked person M. Arsjad Rasjid P. M. p.34 ×2
linked person Vivek Sood p.34 ×2
linked person Nik Rizal Kamil p.34 ×2
linked person L. Krisnan Cahya p.34 ×2
linked person David R. Dean p.34 ×2
linked person Sean Quek p.34
linked person Willem Lucas Timmermans p.34
linked person Robert Pakpahan p.34 ×2
linked person Antony Susilo p.35 ×2
linked person Yessie D. Yosetya p.35 ×4
linked person Andrijanto Muljono p.35
linked person Feiruz Ikhwan p.35 ×2
linked person Merza Fachys p.35 ×3
linked person Shurish Subbramaniam p.35
linked person David Arcelus Oses p.35
linked person Jeremiah Ratadhi p.35 ×2
linked org Axiata Group Berhad p.50 ×4
linked org Axiata Investments p.50 ×6
linked org PT Bali Media Telekomunikasi p.50 ×5
linked org Huawei Tech p.50 ×2
linked person Dian Siswarini p.58 ×2
linked org Link Net Tbk p.58 ×3
linked — Ooredoo Hutchison p.59 ×2
linked org ITSEC Asia p.60
linked org Bumi Serpong Damai p.61
linked org Axiata Investment Indonesia p.66
possible org PT Wahana Inti Nusantara p.50 ×3
possible org Global Nusa Data p.50 ×2
possible org PT Mora p.64
possible person Gatot Subroto p.65
unresolved person Positions · Director p.15
unresolved org PT XLSMART Telecom Category p.18
unresolved person Anik Purwanti p.18
unresolved org Ministry of Manpower Occupational Health and Safety Management System p.19
unresolved org Ministry of Women’s Empowerment p.21
unresolved org Ministry of Communication and Digital p.21
unresolved org PTPT XLSMART XLSMART Telecom Telecom Sejahtera Sejahtera Tbk p.26
unresolved org Sejahtera Tbk p.50
unresolved person Rachmat Santoso p.50
unresolved org Minister of NAME p.50
unresolved org PT XL p.50
unresolved org Axiata Tbk p.50
unresolved org State Tbk p.50
unresolved org Axiata Investment (Indonesia p.50
unresolved org PT Global Nusa Data Public p.50
unresolved org PT Huawei Tech Investment p.50 ×2
unresolved org PT Lintas Teknologi Indonesia p.50
unresolved org PT Nokia Solutions p.50
unresolved org Minister of Law p.51
unresolved org PT Graha Metropolitan Lestari p.54
unresolved org PT Excelcomindo Pratama. Driving p.54
unresolved org Indonesia Stock Exchange p.54 ×2
unresolved org Indocel Holding Sdn. Bhd. p.54
unresolved org TM International Sdn. Bhd. p.54 ×2
unresolved org PT Graha p.56 ×2
unresolved org PT Axis p.56
unresolved org Excelcomindo Pratama Tbk p.56 ×2
unresolved org PT XL Planet p.57
unresolved org Global Holdings Pte. Ltd. p.57
unresolved org Ministry of Industry. p.57
unresolved org NTT Ltd. p.58
unresolved org Ministry of Communication and Informatics p.58
unresolved org Minister of Health p.58
unresolved person Prof. Ari Kuncoro p.58 ×2
unresolved person Dr. Astuti Giantini. p.58
unresolved org PT Hipernet Indodata p.58 ×3
unresolved org PP Telecommunication Sdn. Bhd. p.58
unresolved org PT Link Net Tbk’s p.58
unresolved org Ministry of Manpower p.59
unresolved org PT Mobil Anak Bangsa p.60
unresolved org PT Ide Inovatif Bangsa p.60 ×2
unresolved org PT Smart Telecom. This p.61
unresolved org PT ZTE Indonesia p.61
unresolved org PT Gerbangmas Axiata Group p.64
unresolved org PT Prima Mas p.64
unresolved org PT Infinity Tunggal Berhad p.64
unresolved org PT Bali Media p.64
unresolved org PT Wahana Inti p.64
unresolved org PT Princeton p.64
unresolved org PT Hipernet p.64
unresolved org Pte. Ltd. p.64
unresolved org PT Distribusi Telematika p.64
unresolved org Sentra Jaya Indonesia Tbk p.64
unresolved org Data Centres Services Pte. Ltd. p.64
unresolved org PT Data Enkripsi Informasi Teknologi p.64 ×2
unresolved org PT Princeton Digital Group Data Centres p.65
unresolved org Active XL Axiata Singapore Pte. Ltd. p.65
unresolved org Axiata Global Services Pte. Ltd p.65
unresolved org PT Distribusi Sentral Jaya p.66
unresolved org PT Data Enkripsi Informasi Teknologi. Business Scale Description p.66
unresolved org Financial Services Authority p.75
unresolved — Executive · of the Annual General p.79
unresolved — Oses · Commercial Officer p.79
unresolved — Muljono · Enterprise & Strategic p.79
unresolved — Subbramaniam · Technology Officer p.79
unresolved — Reza Zahid Mirza · Group Head Corporate p.86
unresolved — Asril Praboe Anom · Sustainability p.86
unresolved person Non-D, R, T, I, p.91
unresolved org Townhall All Vendors & Partners p.93
unresolved org PT PLN p.101
unresolved — CFO · Director p.118

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