Source file signed link, expires in 15 minutes
Extracted text 176
Page 1
2024 SUSTAINABILITY R E P O R T Energy for Growth PT Medco Energi Internasional Tbk The Energy Building 53rd Floor SCBD Lot 11A Jl. Jend. Sudirman, Jakarta 12190 Indonesia P. +62-21 2995 3000 F. +62-21 2995 3001 Website : www.medcoenergi.com
Page 2
2024
ISSN 2962-4606 • Volume 13 No. 1 • May 2025
SUSTAINABILITY
R E P O R T
Energy
for Growth
PT Medco Energi Internasional Tbk
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
3
Page 3
ISSN 2962-4606 • Volume 13 No. 1 • May 2025
MedcoEnergi employees participating in 2024-2025 Campaign
‘Less Wastes More Trees’ Muara Baru Village, Karawang, West Java.
Author: Address:
MedcoEnergi 2024 Sustainability PT Medco Energi Internasional Tbk
Report Team The Energy Building 53rd Floor
SCBD Lot 11A
ISSN: Jl. Jend. Sudirman, Kav. 52-53
ISSN 2962-4606 Jakarta 12190, Indonesia
Tel. : (62-21) 2995 3000
Editor: Fax. : (62-21) 2995 3001
For further information, MedcoEnergi Corporate Sustainability www.medcoenergi.com
please visit & Risk Management Division
www.medcoenergi.com
Cover & Layout Design: First printing, May 2025
PT Axioma Grafis Indonesia
All Rights Reserved.
Publisher:
PT Medco Energi Internasional Tbk
Page 4
Energy
for Growth
In 2024, MedcoEnergi reinforced its position as a leading energy and natural resources company through a diversified
portfolio in Oil & Gas, Clean Power and Copper & Gold Mining1 across Southeast Asia and the Middle East.
Our dedication to environmental, social and governance initiatives and commitment to sustainability are well recognised
by international ESG rating agencies. To maintain this trajectory we continue to set ourselves challenging targets to
improve operational excellence, safety and financial performance and our community contribution, in order to position
MedcoEnergi as a leading sustainable energy company and one of Southeast Asia’s largest independent energy
companies.
We support the Sustainable Development Goals
MedcoEnergi is a co-founder of the Indonesia
Business Council for Sustainable Development, the
Indonesian chapter of the World Business Council
for Sustainability Development (WBCSD)
In May 2024, PT Medco Energi Internasional, Tbk. was ranked
22 company in Oil & Gas Producers out of 294 by Morningstar
Sustainalytics in terms of risk of experiencing material financial
impacts from ESG factors. In no event the 2024 Sustainability
Report shall be construed as investment advice or expert opinion as
defined by the applicable legislation. The information contained or
reflected herein is not directed to or intended for use or distribution
to India-based clients or users and its distribution to Indian
resident individuals or entities is not permitted, and Morningstar/
Sustainalytics accepts no responsibility or liability whatsoever for As of 2024, PT Medco Energi Internasional, Tbk. received an
the actions of third parties in this respect. MSCI ESG Rating of AA.
Copyright ©2024 Morningstar Sustainalytics. All rights reserved. The information, data, analyses and opinions contained Disclaimer Statement
herein: (1) includes the proprietary information of Sustainalytics and/or its content providers; (2) may not be copied The use by PT Medco Energi Internasional Tbk of any MSCI
or redistributed except as specifically authorized; (3) do not constitute investment advice nor an endorsement of any ESG Research LLC or its affiliates (“MSCI”) data, and the use
product, project, investment strategy or consideration of any particular environmental, social or governance related of MSCI logos, trademarks, service marks or index names
issues as part of any investment strategy; (4) are provided solely for informational purposes; and (5) are not warranted herein, do not constitute a sponsorship, endorsement,
to be complete, accurate or timely. The ESG-related information, methodologies, tool, ratings, data, and opinions recommendation, or promotion of PT
contained or reflected herein are not directed to or intended for use or distribution to India-based clients or users and Medco Energi Internasional Tbk by
their distribution to Indian resident individuals or entities is not permitted. Neither Morningstar Inc., Sustainalytics, nor MSCI. MSCI services and data are the
their content providers accept any liability for the use of the information, for actions of third parties in respect to the property of MSCI or its information
information, nor are responsible for any trading decisions, damages or other losses related to the information or its use. providers, and are provided ‘as-is’ and
The use of the data is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers. without warranty. MSCI names and
logos are trademarks or service marks
of MSCI.
1 Considering the non-controlling nature of our interest, we do not include AMMN Environmental, Social and Governance (ESG) activities in this Sustainability Report.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
1
Page 5
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
This picture is the 2nd winner under the ‘Environment & Climate Change’ category
of the MedcoEnergi 2024 Photography Competition.
2 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 6
About
This Report
MedcoEnergi publishes an annual Sustainability Report KAP PSS - EY Limited Assurance Statement
to communicate the Company’s policies and approach
to sustainable development and to disclose its economic, Scope and Limited Assurance on the Sustainability
social, environmental and governance performance. Report
This report covers MedcoEnergi’s activities and The scope of KAP PSS - EY’s limited assurance on the
performance per material topic between the period of 2024 sustainability report was limited to a selection of 101
1 January and 31 December 2024 and provides progress subject matter information contained in the sustainability
updates on the action plans established to achieve our report and GRI Performance Data (https://www.
short, medium and long term sustainability objectives. A medcoenergi.com/en/publication/sustainability-reports/).
summary of the achievements and challenges for 2024
can be found on page 23-24. KAP PSS - EY’s Conclusion Statement
This report was prepared in accordance with the 2021 KAP PSS - EY undertook a limited assurance as defined
Global Reporting Initiative (GRI) Standards and its by Standards on Assurance Engagement (SAE) 30001
subsequent updates and demonstrates the linkage (Revised 2022) (Assurance Engagements Other than
between MedcoEnergi’s sustainability performance Audits or Reviews of Historical Financial Information)
and the United Nations’ Sustainable Development and SAE 3410 (Assurance Engagements on Greenhouse
Goals. Unless otherwise stated we use definitions as Gas Statements) established by the Indonesian
set out in the GRI Standards. The GRI Performance Institute of Certified Public Accountants (IICPA) over
Data and GRI Index are accessible through this selected sustainability disclosures in the sustainability
link: https://www.medcoenergi.com/en/publication/ report as disclosed in the Appendix 1 of KAP PSS - EY’s
sustainability-reports/ or through MedcoEnergi’s website: independent limited assurance report. Based on KAP PSS
www.medcoenergi.com. - EY’s procedures and the evidence obtained, nothing
has come to KAP PSS - EY’s attention that causes KAP
Please contact investor.relations@medcoenergi.com for
PSS - EY to believe that the accompanying Subject Matter
queries related to the report.
Information is not prepared and presented, in all material
Reporting Assurance respects, in accordance with the Criteria.
MedcoEnergi engaged KAP Purwantono, Sungkoro & KAP PSS - EY’s independent limited assurance report
Surja (A member firm of Ernst & Young Global Limited, to the Management of MedcoEnergi is available in the
or ‘KAP PSS - EY’) to undertake limited assurance over company’s website (https://www.medcoenergi.com/en/
selected disclosures in the sustainability report. publication/sustainability-reports/).
The number of data indicators disclosed and assured
by KAP PSS - EY has increased from 96 in 2023 to 101 in
this 2024 report. The Company will continue to enhance
disclosure and increase the number of assured indicators
once reliable and consistent data collection can be
maintained across reporting units.
1 SAE 3000 is the Indonesian adopted version of International Standards on Assurance Engagement (ISAE) 3000.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
3
Page 7
Table of Contents
ISSN 2962-4606 • Volume 13 No. 1 • May 2025
01 05
Messages from Management Pursuing Excellence in
Our Governance
8 Messages from the Chairwoman
10 Letter from the Board 50 Approaches, Commitments and Goals
52 Corporate Governance Structure
02 53 Risk Management
53 Corporate Governance Assurance Framework,
Our Year in Summary Programmes and Policies
62 Anti-Corruption Collective Actions
16 Improving Our Economic Performance 64 Alignment of Sustainability Initiatives
17 Enhancing Our Environmental Safeguards with the UN SDGs
18 Supporting Our Local Communities 64 Action Plans
03 06
About MedcoEnergi Realising Our Climate
Aspirations
22 MedcoEnergi in Brief
23 2024 Sustainability Performance at a Glance 70 Approaches, Commitments and Goals
25 Vision, Mission, and Corporate Values 72 Our Roadmap in Climate Business
Integration
26 MedcoEnergi Map
73 Assessing Our Climate-Related Risks and
28 Business at a Glance Opportunities
29 Supply Chain Management 76 Our Environmental Footprint at a Glance
31 Action Plans 78 Emission Reductions
31 Economic Performance 85 Transition to Low Carbon Energy
87 Alignment of Sustainability Initiatives
04 with the UN SDGs
87 Action Plans
Our Approach to Sustainability
07
34 Sustainability Framework
37 Driving Sustainability Performance and
Strategic Growth Enhancing Our Environmental
40 Sustainability Governance and Commitment and Social Safeguards
to Human Rights
43 Managing Sustainability Risks and 92 Approaches, Commitments and Goals
Opportunities
92 Sustainability Assessment
43 Climate-Related Risk Management
95 Health, Safety, and Environment
44 Stakeholder Engagement and Collaboration Management System (HSEMS) Certification
46 MedcoEnergi Memberships
4 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 8
10
96 Performance Rating Programme in
Environmental Management (PROPER)
96 Environmental Management and Monitoring
Programmes Empowering
102 Biodiversity Conservation
Our People and Digital
Transformation
104 Social Management System (SMS)
106 Alignment of Sustainability Initiatives 150 Approaches, Commitments and Goals
with the UN SDGs
150 Our Employees
107 Action Plans
152 Our Initiatives to Empower Our People
155 Building A Strong Digital IT Foundation to
Drive Transformation
08 156 Alignment of Sustainability Initiatives
with the UN SDGs
Advancing Our Health and 157 Action Plans
Safety Culture
112 Approaches, Commitments and Goals
112 Operational Excellence
Attachments
114 Our Health, Safety, and Environmental
160 2024 Awards
Management System (HSEMS)
163 OJK Sustainability Reporting Standards and
117 Health and Safety Performance
Requirements (SEOJK No. 16/2021)
118 Key Programmes and Initiatives
165 Singapore Exchange (SGX) Index
122 Alignment of Sustainability Initiatives
167 Acronym and Abbreviations
with the UN SDGs
173 Feedback Form
123 Action Plans
09
Creating Opportunities
For Communities
128 Approaches, Commitments and Goals
130 Supporting Community Livelihoods
139 Measuring and Evaluating Our Impacts
143 Alignment of Sustainability Initiatives
with the UN SDGs
145 Action Plans
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
5
Page 9
Messages from the Management 8 Messages from the Chairwoman 10 Letter from the Board
Page 10
01 Forel Platform and Marlin Natuna FPSO, South Natuna Sea Block B, Riau Islands, Indonesia
Page 11
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Messages from
the Chairwoman
Yani Y. Panigoro
President Commissioner
8 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 12
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
“ MedcoEnergi is committed
to supplying affordable,
reliable and sustainable
These collective efforts have enabled us to progress
our climate actions, strengthen our human rights
commitment, and deliver world-class
performance. For example, in 2024, we disclosed our
Scope 3 greenhouse gas (GHG) emissions to better
understand the impacts across our value chain. We
safety
energy whilst maintaining are also developing our Just Transition Plan, which
ESG leadership, is based on our standalone Human Rights Policy.
We are also building more programmes throughout
implementing prudent
operations and managing
risks to create long
term value.
“ the organisation to broaden our understanding of
sustainability and climate-related issues. As a result,
our dedication to sustainability has been recognised
through our improved MSCI ESG rating1 from “A” to
“AA”, placing us in the “Leader” category of oil and gas
exploration and production.
Looking ahead, we remain focused on keeping pace with
emerging global expectations related to sustainability
disclosures. Understanding that the adoption of the
sustainability and climate-related financial disclosure
IFRS S1 and S22 by our host governments is forthcoming,
Our company’s 45-year journey has been driven by our we are advancing our quantitative assessments of
people’s strength, dedication and consistent delivery climate risks and opportunities and strengthening our
of excellence. We have built a strong foundation understanding of the financial impacts on our assets. In
of sustainability principles and made continued parallel, we have also been taking actions to mitigate
efforts to integrate them into our business. This is these impacts. Furthermore, we are anticipating the
fundamental as we face global and regional challenges recommendations of TNFD3 as the nature-related
and opportunities in climate change, geopolitical financial disclosures framework and identifying the
complexities, human rights, digital transformation and steps needed to align with them.
market volatility. Our 45-year journey testifies to our commitment to
Whilst driving our business growth, we strive to address the energy trilemma4 by supplying affordable,
maintain ESG leadership by involving our stakeholders. reliable, and sustainable energy to meet the demands
We value their inputs through inclusive consultations for development and growth in the countries we are
to understand their views on sustainability and present. I would like to express my sincerest gratitude
continuously improve our initiatives towards achieving to our dedicated employees, valued stakeholders, and
our goals. For these reasons, we have intensified our esteemed business partners, whose contributions have
efforts to develop partnerships and collaborations been instrumental to our achievements: they have
with various stakeholders to advance growth in stood by us through thick and thin. Please continue
sustainability. this journey with us in our concerted efforts and
collaboration to overcome the evolving challenges
of sustainability and create lasting value for the
communities we serve.
Yani Y. Panigoro
President Commissioner
1 MSCI ESG Ratings measure a company’s management of long-term, financially relevant ESG risks and opportuni-ties. Companies are rated on a scale of AAA (leader) to CCC
(laggard). The information can be accessed at http://www.msci.com.
2 International Financial Reporting Standards (IFRS) S1 and S2 are global sustainability reporting standards issued by the International Sustainability Standards Board (ISSB).
https://www.ifrs.org
3 The Taskforce on Nature-related Financial Disclosures (TNFD) is a framework that guides entities to identify, as-sess, and disclose nature-related risks and opportunities.
4 The World Energy Council definition of the energy trilemma is available at https://www.worldenergy.org/transition-toolkit/world-energy-trilemma-framework.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
9
Page 13
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Letter from
the Board
Roberto Lorato Anthony R. Mathias Hilmi Panigoro Amri Siahaan Ronald Gunawan
Director & Chief Director & Chief President Director Director & Chief Director & Chief
Executive Officer Financial Officer Administrative Officer Operating Officer
10 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 14
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Shaping the Future of Energy through In our supply chain, we have expanded opportunities
Strategic Growth, Leadership, and for local vendors and embedded stronger sustainability
measures through a standardised contract template
Sustainability incorporating both sustainability and human rights
From our beginnings as a local energy venture in 1980, policies. Moreover, our Conflict-of-Interest Declarations
we have evolved into a pioneering force across Southeast now reinforce our ethical expectations for all service
Asia and beyond. Over 45 years, our capabilities have contractors throughout our operations in Indonesia.
grown across the energy value chain through a diversified
Our community approaches now incorporate stakeholder
portfolio spanning Oil & Gas, clean & renewable power,
perspectives into our materiality assessments and Human
and copper & gold mining. This growth has been
Rights Policy. We have also quantified our social impacts
fuelled by our people and a deep-rooted commitment
through a “Social Return on Investment” methodology
to sustainability that have shaped our leadership
to provide clearer views of how our programmes benefit
development, succession planning, and global exposure.
local communities.
We have advanced this commitment through the Medco
Leadership Behavior (MLB) programme, which develops Partnerships remain central to our sustainable growth
leadership and prepares future leaders. strategies, allowing us to better navigate the energy
transition. As part of the Government of Indonesia’s
Now, in the second year of our Sustainability Roadmap 2023
delegation at COP29, we shared our approaches to reduce
– 2027, we remain committed to achieving all targets and
emissions, transit to low-carbon energy, and manage
sustainability-related key performance indicators. As part
physical climate risks whilst strengthening our global
of the roadmap, we have been delivering comprehensive
network. Our new UN Global Compact membership
sustainability and climate training programmes across
reinforces integrity practices and our network with UN
all levels of our organisation since 2023, with more than
agencies. We have also proactively participated in regional
3,000 employees participating. In 2024, we successfully
sustainability and energy forums to work alongside
consolidated various human rights related policies and
industry leaders to advance shared goals.
procedures into a corporate-level standalone Human
Rights Policy, which has laid the foundation for our Just
Transition Plan. We have also strengthened our digital
Sustaining Operational Excellence
infrastructures, creating an agile IT system, that increases Our focus on operational excellence is evident in our
resilience and improves our ability to manage crises. We health, safety, and environmental (HSE) and reliability
are also on track to achieve our climate interim targets; performance. In 2024, we maintained zero fatalities
these are critical milestones on our path towards net and a consistently low Total Recordable Incident Rate
zero aligned with our climate change strategies. Further (TRIR). Our Oil & Gas business achieved a TRIR of 0.10.
reinforcing our plans, we have begun disclosing our Scope This outperforms industry benchmarks, such as the 2023
3 GHG emissions. IOGP overall rate of 0.84, the IOGP Asia/Australasia rate of
0.66, and the national rate of 0.22, proving our adherence
Our Company continues to support Indonesia’s Enhanced
to world-class safety standards. Our performance in
Nationally Determined Contribution (NDCs) and regional
managing financially relevant ESG risks and opportunities
energy demand as we respond to growing global and
is recognised by external stakeholders through our
regional challenges and opportunities. In our Power
improved MSCI rating: from “A” to “AA”, which places us
business, we are expanding our footprint in renewable
in the leader category. We have also maintained our CDP
energy. In line with our commitment to decarbonise,
rating of “B” and a “medium risk” rating from Sustainalytics.
we reached mechanical completion in Ijen Geothermal
Phase 1, with commercial operations starting in early To sustain this performance and support our broader
2025. We also secured a new geothermal exploration ESG goals, we continue to strengthen our internal
award in Samosir, North Sumatra. Our consortium was capabilities. This includes global certifications for senior
awarded a conditional import license for the Bulan Solar leaders; e-learning modules covering the fundamentals
Project, a landmark collaboration between Indonesia and of sustainability and climate change topics for all staff
Singapore that fosters regional cooperation and private levels (including renewables, low-carbon technologies);
sector engagements. This aligns with COP29’s call to and Carbon Capture, Utilization, and Storage (CCUS).
strengthen the role of Regional Collaboration Centres to To further reinforce governance, we have enhanced our
advance the Paris Agreement. business ethics oversight by establishing the Corporate
Ethics and Compliance Committee, chaired by the Chief
People, Partnership and Progress Administrative Officer (CAO) and reporting to the wider
BOD.
Our sustainability commitments include our people,
supply chain, governance, community engagements
and partnerships. This is why we have strengthened our
workplace culture by initiating the Respectful Workplace
Program, which promotes inclusivity, mutual respect, and
a professional work environment, reinforcing a culture
where every employee is valued and supported.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
11
Page 15
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Our Journey to Enhance Disclosures and Fostering Energy for Growth
Manage Risks MedcoEnergi is committed to delivering value by
We continue to improve our sustainability disclosure enhancing transparency, disclosures, and ESG leadership.
practices and manage risks to align with evolving global For this reason, we continue to implement our climate
standards and respond to more stringent requirements, actions to support the transition to a lower-carbon energy
including those set out in International Financial mix to drive sustainable energy for growth.
Reporting Standards (IFRS) S1 and S2. As part of this We are proud of our achievements and recognise our
commitment, not only are we expanding the scope of people’s contributions as the driving force behind
our Climate Change Risk Assessments (CCRAs) to include our success. We therefore extend our gratitude to
a broader range of assets, but we are also conducting our shareholders as well as host governments and
comprehensive quantitative analyses of both physical communities around our operational areas for their
and transition risks. In addition, we have developed CCRA support and confidence in our vision. We remain
guidelines to ensure that future assessments, aligned committed to providing benefits for all stakeholders
with global standards, are carried out consistently. This and invite you to join us in building a sustainable future
reflects our commitment to continuously improve in together.
these areas. These efforts will ensure that we understand
the financial implications of climate change more deeply
and formulate effective strategies to mitigate its impact.
The way we manage our risks extends beyond climate-
related issues to encompass broader sustainability
aspects integrated throughout our business processes.
As we prepare to align our practices with the TNFD
recommendations, we have begun assessing internal gaps
and benchmarking exercises. These efforts underscore
our commitment to global sustainability standards and
stakeholder expectations.
Hilmi Panigoro Roberto Lorato
Direktur Utama Direktur & Chief Executive Officer
12 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 16
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Soehanah Rig, Western Hub Belida Field, South Natuna Sea Block B, Indonesia
This picture is one of the entries in the ‘Business & Assets’ category
of the MedcoEnergi 2024 Photography Competition
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
13
Page 17
Our Year in Summary 16 Improving Our Economic Performance 17 Enhancing Our Environmental Safeguards 18 Supporting Our Local Communities
Page 18
02
Night Operations in Block A, Aceh, Indonesia
This picture is the 1 winner under the ‘Business & Assets’ category
st
of the MedcoEnergi 2024 Photography Competition
Page 19
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Improving Our
Economic Performance
As a leading Southeast Asian energy natural resources company, we strive to build long-term values for our stakeholders
by conducting our business with the utmost integrity and transparency.
Description 2022 2023 2024
Production1 163 mbopd 160 mbopd 152 mbopd
Oil & Gas Oil & Gas Oil & Gas
3,993 GWh 4,155 GWh 4,108 GWh
Total IPP Sold Total IPP Sold Total IPP Sold
Revenue1 2,312,227,602 2,249,337,578 2,339,190,555
(USD)
Net Profit/(Loss)2 530,882,676 330,675,261 367,358,268
(USD)
Third Party Supplier 157,045,120 (83%) 198,269,182 (80%) 272,393,462 (89%)
Breakdown3 Indonesia Indonesia Indonesia
(USD)
33,105,393 (17%) 49,873,090 (20%) 33,434,661 (11%)
International International International
New and Renewable Sumbawa Solar PV Project Bulan Solar PV Project
Energy Products 26 MWp, solar PV facility 2,000 MWp, solar PV facility
East Bali Solar PV Project
25 MWp, solar PV facility
Cibalapulang and Pusaka Parahiangan Mini Hydropower
Two 9 MW mini-hydropower plants in West Java
Sarulla Geothermal Project
330 MW geothermal power plant located in North Sumatra
Description 2022 2023 2024
Oil & Gas Production (mbopd) Target 160 160 145-150
Realisation 163 160 152
Oil & Gas Capital Expenditure (million USD) Target 250 250 350
Realisation 269 261 365
Power Sales (in GWh) Target 4,000 4,000 4,100
Realisation 3,993 4,155 4,108
Power Capital Expenditure (million USD) Target 80 80 80
Realisation 33 72 71
1 Production figures are net working interest and aligned with the MedcoEnergi 2024 Annual Report.
2 Based on Indonesia Statement of Financial Accounting Standards.
3 Based on third-parties Trade Payable data
16 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 20
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Enhancing Our
Environmental Safeguards
Our environmental safeguards include managing our greenhouse gas emissions, energy usage, and resource consumption
to minimize environmental impact and protect the surrounding biodiversity. Further details regarding our efforts can be
read in Chapter 6 and 7.
Description 2022 2023 2024
Emissions (Scope 1 and 4.4 4.2 (-3%) 3.8 (-11%)1
Scope 2) Oil & Gas Oil & Gas Oil & Gas
(million tCO2e)
1.4 1.4 (+4%) 1.4 (-3%)
Power Power Power
Energy Consumption 37.0 38.7 (+5%) 36.0 (-7%)
(million GJ) Oil & Gas Oil & Gas Oil & Gas
14.4 15.1 (+5%) 14.6 (-4%)
Power Power Power
Water Withdrawal 47,702 46,951 (-2%) 49,533 (+6%)
(thousand m3) Oil & Gas2 Oil & Gas2 Oil & Gas2
259,810 195,645 (-25%) 255,105 (+30%)
Power3 Power3 Power3
Non-hazardous Waste 1,242 1,174 (-5%) 1,259 (+7%)
Generation Oil & Gas Oil & Gas Oil & Gas
(tonnes)
67 74 (+10%) 78 (+5%)
Power Power Power
Hazardous Waste 4,324 6,161 (+43%) 5,125 (-17%)
Generation Oil & Gas Oil & Gas Oil & Gas
(tonnes)
45 101 (+124%) 50 (-51%)
Power Power Power
Biodiversity and Conservation 236 hectares 205 hectares 249 hectares
Initiatives Total planted area for regulatory Total planted area for regulatory Total planted area for
requirements4 requirements4 regulatory requirements4
17 hectares 17 hectares 10 hectares
Total planted area beyond Total planted area beyond Total planted area beyond
regulatory requirements regulatory requirements5 regulatory requirements
For the information on year-on-year changes and restatement of Water, Waste and Biodiversity
Data, please refer to Chapter 7: Enhancing Our Environmental and Social Safeguards page 96.
1 The total values of Scope 1 and Scope 2 GHG emissions have been assured, and we performed internal calculations on the performance of the Scope 1 and Scope 2 GHG
emission reductions. Different methods are used to calculate Scope 2 GHG emissions in 2023 and 2024. We disclose percentage reduction using Location Based Method for
2023 and Market Based Method for 2024 to incorporate Renewable Energy Certificate (REC) purchase in 2024.
2 In-scope water withdrawals for Oil & Gas include fresh surface water, groundwater, third-party water use, seawater, and produced water
3 In-scope water withdrawals for power include fresh surface water, groundwater, third-party water use, and seawater
4 Regulatory requirements include revegetation according to the Forest Area Usage Approval (PPKH) for domestic Oil & Gas assets and environmental permits (SKKL) specific
to Corridor
5 We conducted a major planting activity beyond the regulatory requirement in 2023 under the Medco & I - Two Trees programme, but the planted area is excluded from this
total.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
17
Page 21
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Supporting Our
Local Communities
We implement community development programmes aimed at fostering self-reliance and resilience, with a focus
on sustainable livelihoods and infrastructure development. Further details regarding our programmes can be read in
Chapter 9. The following table summarise MedcoEnergi’s support over the past three years:
Description 2022 2023 2024
Total Funding for Community
2,304,408 1,812,866 (↓21%) 2,531,162 (↑40%)
Development Programme (USD)
MedcoEnergi has implemented programmes and initiatives to address various local needs, including:
Promoting Women’s Economic Empowerment and Community Resilience
• Empowered female farmers in East Aceh, Indonesia through sustainable food yard programmes
across Alue Siwah Serdang Village (Nurussalam District) and Panton Rayeuk T Village (Banda Alam
District), forming two women farmer groups to strengthen food security and household income.
• Trained 30 women in Mamburungan and Mamburungan Timur villages, Tarakan, North Kalimantan,
Indonesia in Amplang (traditional fish crackers) production, transforming low-value fish into
marketable products and creating new income streams.
Expanding Literacy and Skills Development
• Established in 2019 and 2022, the two RPIA centres in Aceh, Indonesia, run in collaboration with the
Medco Foundation, remain active through 2024, welcoming 942 direct beneficiaries while continuing
to support women and children in the surrounding communities and engaging local residents as
facilitators and literacy instructors.
• Implemented the Learning Space Development Project at Banhadsairi School, Chumphon, Thailand
to create a safe and engaging learning environment that emphasises hands-on experiences and
agricultural career skills.
Strengthening Community Health and Wellbeing
• Combated stunting and malnutrition through our Nutrition Shelter (Pos Gizi) programme, reaching
over 5,000 beneficiaries across five South Sumatra, Indonesia villages.
• Improved living conditions in Tangerang, Indonesia through the Decent Housing Programme,
renovating 39 homes with support from 460 Medco employee volunteers.
Infrastructure Development for Community Resilience
• Enhanced clean water access and community resilience in Bangkanai and Palembang, Indonesia by
constructing clean water facilities.
• Improved transportation infrastructure in Waringinsari Village, Cianjur Regency, West Java, Indonesia
through material donations for road restoration, addressing deteriorated conditions that hindered
both operational activities and community mobility.
18 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 22
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Encouraging teachers and students to conduct mangrove cultivation at Adiwiyata Schools Anambas, Indonesia
This picture is one of the entries in the ‘Environment & Climate Change’ category
of the MedcoEnergi 2024 Photography Competition
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
19
Page 23
About MedcoEnergi 22 MedcoEnergi in Brief 23 2024 Sustainability Performance at a Glance 25 Vision, Mission, and Corporate Values 26 MedcoEnergi Map 28 Business at a Glance 29 Supply Chain Management 31 Action Plans 31 Economic Performance
Page 24
03
Ijen Geothermal IPP, East Java, Indonesia
This picture is the 3 winner under the ‘Business & Assets’ category
rd
of the MedcoEnergi 2024 Photography Competition
Page 25
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
MedcoEnergi
in Brief
MedcoEnergi is a leading Southeast Asian energy and
natural resources company listed on the Indonesia Stock
Exchange (MEDC-IDX), focused on three key business
sectors – Oil & Gas, Clean Power and Copper and Gold
Mining. MedcoEnergi produces oil and gas primarily
in Indonesia as well as in Oman, Thailand and Yemen.
The Group owns and operates gas, solar photovoltaic
(PV), geothermal and mini hydro power plants in
Indonesia through Medco Power Indonesia. It also owns
a 20.9% non-consolidated interest in Amman Mineral
Internasional (AMMN-IDX), a publicly listed Indonesian North Belut Platform,
copper and gold company. However, considering the South Natuna Sea Block B, Riau Islands, Indonesia
non-controlling nature of our interest, we do not include
AMMN Environmental, Social and Governance (ESG)
activities in this Sustainability Report. will also lead to increased Indonesian capacity for PV
manufacturing and deployment, as well as energy storage
MedcoEnergi has interests in 16 oil and gas properties in systems.
Indonesia, 12 of which are producing. Internationally the
Company has interests in 10 oil and gas properties, with 4 Amman Mineral Internasional (“AMMN”), a world-class
currently in production, along with an exploration asset Indonesian copper and gold company, debuted on the
in Oman and a development asset in Tanzania. In 2024, Indonesia Stock Exchange in July 2023. In September
MedcoEnergi’s average oil and gas production was 152 2024, AMMN’s subsidiary PT Amman Mineral Nusa
mboepd, comprising 73% gas and 27% liquids. Tenggara inaugurated a new copper concentrate smelter.
The smelter has an annual processing capacity of 900,000
Key projects contributing to the success in 2024 included tonnes of copper concentrate sourced from the Batu
the completion of the West Belut Project in South Hijau mine and the future Elang mine. It is designed to
Natuna Sea Block B, drilling, well intervention and produce up to 222 kilotonnes per year of Grade A LME
debottlenecking programs in Corridor, Senoro, Madura copper cathodes and 830 kilotonnes per year of sulfuric
Offshore, Bualuang, as well as the full-year contribution acid.
from the successful acquisition in Oman. Unit costs were
US$ 8.2 per boe, within the Company’s long-term sub Additionally, its precious metals refinery will yield 18
US$10 per boe commitment. tonnes of gold bars, 55 tonnes of silver bars, and other
by-products. The smelter’s primary equipment was
In 2024, MedcoEnergi divested two assets: the Company successfully commissioned in December 2024, production
sold its holding in Contract Area 47, Libya to the National Oil of first cathode copper expected Q1 2025. Amman also
Corporation of Libya (NOC), and its stake in Ophir Vietnam owns Elang, one of the world’s largest undeveloped
Block 12W to Bitexco Energy Company Ltd. Additionally, copper–gold porphyry deposits.
MedcoEnergi also continued the relinquishment process
of two deepwater exploration licenses in Mexico, Blocks 10 MedcoEnergi prioritizes the health and safety of its
and 12, expected to be completed in 2025. workers, implements a clear sustainability strategy,
maintains a strong record in Environmental, Social and
MedcoEnergi is a leading operator of clean and renewable Governance (ESG) performance.
energy in Indonesia through its subsidiary Medco Power
Indonesia (Medco Power). Medco Power owns and MedcoEnergi ranks in the top quartile among its oil
operates 14 gas, solar PV, geothermal and mini hydro and gas sector peers. In 2024, the Company held a 29.6
power Independent Power Producers (IPPs), and provides (medium risk) rating from Sustainalytics, B from CDP and
Operational and Maintenance services to its own and AA from MSCI. MedcoEnergi remains on track to achieve
third-party power plants on the Indonesian islands of Bali, its goals of reaching net zero greenhouse gas (GHG)
Batam, Java, Sumatra and Sumbawa. emissions for Scope 1 and Scope 2 by 2050 and Scope 3 by
2060. The Company is also investing in energy transition
In 2024, Power sales were 4,108 GWh in 2024, with 20% capabilities through development of its diverse workforce.
from renewable sources and 80% from gas-fired facilities.
Medco Power’s Ijen Geothermal project has reached MedcoEnergi is delivering strong financial performance.
mechanical completion in December 2024 and began The Company’s healthy shareholder returns reflect its
commercial operations in February 2025. The 25 MW financial discipline and profitability improvements. In
East Bali Solar PV and the 39 MW Energi Listrik Batam 2024, Fitch and S&P Global upgraded the Company’s
(ELB) combined cycle power projects are also on track for credit rating to BB- from B+, Moody’s improved the
commercial operation in 2025. Company’s outlook from stable to positive, while Pefindo
reaffirmed its idAA- stance.
In 2024, Medco Power and its partners were awarded a
conditional import license by the Energy Market Authority In 2024, MedcoEnergi paid a final dividend of US$45
of Singapore for 600 MW of solar power to Singapore via million and an interim 2024 dividend of US$25 million.
the Bulan Solar PV project. The Bulan project will be one The Company will finalize a second 2024 dividend at the
of the largest solar power projects in Southeast Asia and Annual General Meeting of Shareholders (AGMS) in 2025.
22 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 26
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
2024 Sustainability
Performance at a Glance
Highlights
• Disclosed and externally assured Scope 3 GHG emissions.
• Achieved the 2025 interim targets from base year 2019 for our Oil & Gas Scope 1 and 2 GHG and
methane emissions reduction. On track to achieve our 2030 interim targets to further reduce
both Scope 1 and 2 GHG and methane emissions and on our trajectory to achieve net zero.
• Implemented 43 GHG Emission Reduction initiatives in 2024, resulting in emission reductions
of up to 181,727 tCO2e/year1 and achieving a one-time reduction of 53,713 tCO2e. Of this, methane
emissions were reduced by up to 10,092 tCO2e/year1 with a one-time reduction of 4,422 tCO2e
from well clean-up and testing activities.
• Piloted direct methane measurement in Belanak and Lematang; advanced flare purge gas
optimisation in Dayung, Suban, Sumpal, and Grissik; and evaluated alignment with the OGMP
2.0 framework.
• Expanded Climate Change Risk Assessments (CCRAs) to 25 additional assets (qualitative) and
completed quantitative assessments for Corridor and MRPR.
• Assessed CO2 storage capacities across all domestic Oil & Gas assets; progressed CCS integration
plans for high-CO2 gas fields; and progressed CCS studies for transborder industrial emissions.
Environmental, • Produced Renewable Energy Certificates (RECs) by Medco Power Indonesia through its
Climate Change renewable energy assets, certified under the international I-REC Standard, and sold to internal
and Energy (our Oil & Gas assets) and external customers.
Transition
• Continued developing renewable energy, including East Bali Solar PV, Ijen Geothermal, and
Pulau Bulan Solar PV projects.
• Delivered climate capability-building sessions across all levels of the organisation and supply
chain, involving internal and external experts to support company-wide climate actions.
• Updated Sustainability Assessment guidelines to strengthen climate-related criteria by
integrating physical climate risks into project designs and requiring methane management for
high-emission projects.
• Completed ISO 14001:2015 Environmental Management System certification for our Oman
asset and maintained certifications for all other certified assets.
• Strengthened our Social Management System (SMS) through cross-functional capacity-
building, social risk mitigations and grievance evaluation tool aligned with UNGP effectiveness
criteria.
• Enhanced integrated platform for social and security monitoring.
• Continued empowering local communities including youth, women, SMEs, and
journalists through capacity building, education, health, and environmental initiatives
to strengthen resilience and support sustainable livelihoods.
Social
Management • Fostered resilient communities through targeted programs that delivered quantifiable
and Community economic benefits, as validated by Social Return on Investment (SROI) measurements.
Empowerment
• Initiated the development of a Just Transition Plan.
• Launched targeted improvements based on insights from the 2023 Employee Engagement
Survey, including focus group discussions on company culture and career development with
148 employees, and a dedicated session with 43 female employees to strengthen inclusive
engagements.
• Enhanced workforce capabilities through various learning and development initiatives,
including leadership training, Medco Leadership Behavior (MLB) campaigns, Sustainability
and Climate Change e-learning, human rights training, mentoring, the MedcoEnergi Business
Apprentice Program, Individual Development Plans, and the newly launched Data Science
People
Academy to build AI and machine learning skills.
Engagement
and Digital • Strengthened digital foundations by establishing a new digital operating model, driving digital
Transformation transformations across the business and strengthening our cybersecurity which is one of the
ESG risks.
1 The numbers indicate the peak annual emission reductions.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
23
Page 27
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Highlights
• Maintained zero fatalities in 2024, marking the fourth consecutive year without fatal incidents.
• Reduced Tier-3 Process Safety Events (PSE) by 30% by continuously improving
process safety.
• Maintained a consistently low consolidated Total Recordable Injury Rate (TRIR) for Medco Oil &
Gas and Medco Power at 0.16, reflecting our strong commitment to safety excellence.
Health and • Completed ISO 45001:2018 Occupational Health and Safety Management System certification
Safety for our Oman asset and maintained certifications for all other certified assets.
• Improved our MSCI ESG rating from ‘A’ to ‘AA,’ positioning us in the ‘Leader’ category for oil and
gas exploration and production.
• Established our Anti Money Laundering Policy.
• Strengthened anti-corruption efforts through collaborations with international and local
organisations, including the UN Global Compact, and collaborations with Aceh’s Anti-Corruption
Movement (Gerakan Antikorupsi/GeRAK), Aceh’s Anti-Corruption School (Sekolah Antikorupsi
Aceh/SAKA), and Transparency International Indonesia.
• Established the Corporate Ethics and Compliance Committee (CECC) under the Board of
Directors to ensure fair and independent handling of whistleblowing reports.
Governance
• Completed the ISO 37001:2016 Anti-Bribery Management System (ABMS) certification for our
Oman and Riau IPP assets and maintained certifications for all other certified assets.
• Adopted the ISO 37002:2021 Whistleblowing Management System to reinforce accountability
and reporting mechanisms.
Lowlights
In 2024, a non-governmental organization focused on monitoring, preventing and combating
corruption, raised concerns regarding the environmental and safety risks associated with our
product’s buyer trucking practices, which use the main access from the jetty to the Kerendan
Gas Processing Facility (KGPF). While these activities fall outside Medco Energi Bangkanai Ltd’s
operational scope, we recognise the importance of addressing these issues responsibly.
Our operations are strictly governed by environmental and safety standards and regulations.
The Company is responsible for producing and delivering condensate up to the custody transfer
point at KGPF. Beyond this point, all handling, including trucking and storage, is managed by
our buyer.
Environmental
& Safety Although we are not directly involved in these activities, we have been regularly maintaining
the access road, as it is the primary route to KGPF. We remain committed to transparency,
regulatory compliance, and supporting the industry’s best practices to ensure responsible
energy production.
PT Medco Cahaya Geothermal (MCG), a subsidiary of Medco Power Indonesia, upholds its
commitment to sustainability and social responsibility by addressing community concerns
promptly and responsibly.
In 2024, concerns were raised regarding an alleged decline in water quality in Kalianyar
Village, approximately four kilometres from MCG’s Ijen Geothermal power plant project site. To
address this, MCG conducted water quality tests through the Bondowoso Regional Technical
Implementation Unit (UPTD), a certified local government-owned laboratory. The results
Community
showed that all water quality parameters complied with regulatory standards and remained
Grievance safe for consumption.
However, to support the community’s demand for and access to clean water, MCG has also
provided clean water supply assistance, upgraded the infrastructure and explored potential
new water reservoirs in the area.
24 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 28
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
To be the Energy Company of Choice
for investors, shareholders, partners,
employees, and communities where
we operate.
VISION
MISSION
To build long-term value with a
portfolio of sustainable energy and
natural resources businesses.
CORPORATE VALUES
Professional Ethical Open Innovative
All employees must All employees must All employees must All employees must
conduct themselves in a conduct themselves in make efforts to promote cultivate a spirit of
professional manner by: an ethical manner by: transparency by: innovation by:
• Being competent in • Conducting business • Encouraging • Building a culture of
their area of expertise. fairly with high moral informality and trailblazers.
• Having a “champion integrity. openness in • Continuously
spirit”. • Applying the highest communication at all searching for
• Always seeking self- ethical standards at all levels. innovative solutions to
improvement. times. • Building an achieve better, safer
• Having professional • Understanding environment of trust and cost-effective
capabilities and and following the among employees outcomes.
knowing their own Company’s ethics and management. • Having intellectual
limits. and Good Corporate • Being open-minded and emotional
Governance policies. in thought, behavior, maturity.
and work.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
25
Page 29
Messages from Management
Our Year About
Business Our Approach Pursuing Excellence Realising Our Climate
Management Discussion and Analysis
in Summary Activities
MedcoEnergi to Sustainability in Our Governance Aspirations
Thailand
13
21
12
10
1 9
8
7
22
23
Su
m
at
20
ra
24
2
26 Kalimantan
25 11
27
3
4
HQ
5
6
34
Java
28
29
30
33
31
32
Pipeline HQ
West Natuna Transportation System The Energy Building, Jakarta
Grissik-Batam-Singapore
Grissik-Duri
Production Installed Production
Development Development Development
Exploration Exploration Exploration
Oil & Gas Power Copper & Gold Mining
26 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 30
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
16 Mexico 18 Yemen
17 Tanzania 19 Oman
15
Sulawesi
Papua
14
Oil & Gas
1 Block A 8 South Natuna Sea Block B O&G International
14 Senoro-Toili
2 Corridor Block 10 & 12, Mexico
9 North Sokang 15 Donggi Senoro LNG 16
3 South Sumatra Region 17 Block 1 & 4, Tanzania
10 West Bangkanai
4 Amanah 18 Block 9 Malik, Yemen
11 Bangkanai
5 Sampang 19 Block 60, 48, 56 &
12 Simenggaris
6 Madura Offshore Karim Small Fields, Oman
13 Tarakan
7 Beluga 20 Onshore Receiving Facility, Singapore
21 Bualuang, Thailand
Power IPPs Copper & Gold Mining
22 Sarulla Geothermal 26 DEB, MEB & ELB Gas-fired 30 Ijen Geothermal 33 Batu Hijau
23 Samosir Geothermal 27 EPE & MPE Gas-fired 31 East & West Bali Solar PVs 34 Elang
24 Riau Gas-fired 28 Cibalapulang Mini-hydro 32 Sumbawa Solar PV
25 Bonjol Geothermal 29 Pusaka Mini-hydro
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
27
Page 31
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Business
at a Glance
12 4
Onshore Offshore Oil & Gas Production
Oil & Gas Production Production (mboepd) 163 160 152
Assets Assets
100 94
60 60 129 128 111
10 7
Exploration & Gas
Presence in
Development 40 34 34 32 41
Countries Oil
Assets
2020 2021 2022 2023 2024
2P Reserves and Contingent
84% 16%
Resources (mmboe)
Onshore Offshore
Production Production 1,041 896
1,040
1,125 996
27% 73%
Contingent Resources
Oil Gas 2P Reserves
310 389 481 539 493
Production Production
2020 2021 2022 2023 2024
Power 7 Operated
Gas-fired
IPPs
2 Operated
Mini Hydro
IPPs
1 Operated
Geothermal
IPP
1 Operated
Solar PV
926 IPP
Power
MW Capacity
4,108 Total
GWh Sales
Power Sales, Gas-Fired &
Renewables (GWh)
3,993 4,155 4,108
801 831
855
2,639 2,718
817 870
20% 1,975 O&M
Power
MW Capacity
Renewables
Gas-Fired
1,822 1,848 3,138 3,353 3,277
Renewables 2020 2021 2022 2023 2024
Environmental,
Social &
Governance
ZERO
FATA L I T Y
Disclosed and
externally assured our
Scope 3
Improved our MSCI
Rating to ‘AA’,
placed us in the ‘Leader’
Internal Sustainability
and Climate Change
e-learning, reaching out
Employees & Contractors GHG emissions category 2,800 employees
for fourth consecutive years
Oil & Gas Oil & Gas
ON TRACK Scope 1 & 2 GHG Methane (CH4)
TO ACHIEVE OUR CLIMATE CHANGE Emissions Reduction1 Emissions Reduction1
2030 INTERIM TARGETS
30% 20% CH4
46% 25%
2024 2025 2024 2025
1
Reduction from 2019 base year.
28 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 32
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Supply Chain Management
MedcoEnergi upholds integrity as a core principle in business conduct, demonstrated through ethical practices and
transparent procurement processes. Our vendors are expected to comply with regulations and adopt best ESG practices
while maintaining the same high ethical in compliance with health, safety and environmental (HSE) standards and
procedure, respect for human rights, protection of the company’s assets, confidentiality (including intellectual property
rights), fair competition, and anti-corruption measures. We strictly prohibit child and forced labour in our operations and
require the same commitment from our vendors.
These principles are embedded in our selection process and contractual agreements, with our contract terms and
conditions mandating compliance with both the Code of Conduct and Code of Suppliers1. To further strengthen our
commitments, we have introduced key updates to our terms and conditions. In July 2024, we included our Human Rights
Policy and Sustainability Policy, which strengthened mutual commitments with our vendors to promote sustainable and
human rights practices.
Strengthening Sustainable Procurement
Practices
In 2024, MedcoEnergi enhanced its sustainable Indonesia, Thailand and Oman. In 2024, we extended our
procurement practices and vendor management standardized vendor registration process to Thailand.
key initiatives to further support responsible business We empowered our vendors with self-registrations
practices. These include: and used “Vendorsite” as a portal for transactions and
communication.
• Updated Terms & Conditions in contracts,
incorporating both Human Rights and Sustainability
• Strengthened vendor assessments through the
Policies - This reflects our sustainable procurement
Service Quality Review (SQR) process - Over the past
philosophy, which aligns with the core values and
year, we have focused on standardising:
behaviours expected from MedcoEnergi personnel
• performance evaluations in HSE
in daily operations and reinforces our Policies’
• contract executions
commitments.
• management practices
• Improved vendor data management and promoted
Following its successful implementation in Indonesia
best practices – We have strengthened our vendor
(2022–2023), SQR was expanded to include our Thailand
data management and operational practices by
asset in 2024.
implementing a unified vendor database that spans
Engaging with Our Vendors &
Vendor Capability Building
We continue to strengthen our partnerships with vendors • Contractor Forums: these were held by our power
through various engagement activities. The key initiatives subsidiaries and engaged over 80 vendors. The
in 2024 were: sessions provided an open platform to discuss key
topics, such as Contractor Safety Management System
• Vendor Day Programme: we successfully conducted
(CSMS), the newly issued HSEQ-MS Policy, human
this for over 500 vendors across our Oil & Gas operations
rights, procurement processes, and sustainability
in Indonesia, Thailand and Oman. During these sessions,
commitments. This enabled us to ensure that all
we:
participants were aligned on shared values while we
• shared our business ethics practices,
disseminated our latest policies and guidelines.
• highlighted the importance of sustainability and
climate change through our roadmap and materiality
assessments,
• reinforced our expectations for ethical and sustainable
business conduct.
1 This policy is assured and covered in the GRI 2-23 (Policy Commitment) and GRI 2-24 (Embedding Policy Commitment)
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
29
Page 33
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
• Supply Chain & National Capacity Summit: this
brought together Medco Oil & Gas, other Production
Sharing Contract (PSC) partners, and SKK Migas to
conduct joint event in Jakarta. Our senior executives
presented strategies for sustainable energy
development, including the low-carbon solutions, SCM
global synergy strategies and CCS potential. This event
also featured coaching sessions about our Contractor
HSE Management System and its integration with SKK
Migas’ Centralised Integrated Vendor Database (CIVD). Director & Chief Administrative Officer, Mr. Amri
Siahaan, received The Best Local Content Achievement
• ESG Day: we served as the main speaker for one of from SKK Migas, Jakarta, Indonesia
our key contractor’s ESG Day event on Sustainable
Procurement. Beyond sharing knowledge, this event To enhance communication and transparency, we
marked a strategic move to collaborate with vendors regularly publish quarterly SCM e-Newsletters. These
who have disclosed their GHG emissions in alignment newsletters provide key updates on procurement
with MedcoEnergi’s Climate Change Strategy. processes, tender document submissions, and
local content requirements; they also reinforce our
commitments to the Code of Conduct, human rights,
and sustainability. Additionally, they cover compliance
with applicable regulations and laws, along with insights
into Service Quality Review elements, which ensure that
vendors and stakeholders stay informed and aligned with
Medco’s supply chain standards.
Our ongoing commitment to empowering local
enterprises and promoting sustainability was recognised
in 2024 with awards, such as The Best Local Content
Achievement from SKK Migas, and the 1st rank KPI SCM
Award from the Aceh Oil and Gas Management Agency
(Badan Pengelola Migas Aceh/BPMA). These accolades
Director & Chief Operating Officer, Mr. Ronald Gunawan, reflect not only our prudent business practices, but
participating in the COO Forum, Supply Chain & also our dedication to supporting local economies and
National Capacity Summit, Jakarta, August 2024. fostering sustainable growth.
Strategic Partnerships
In September 2024, Medco Power, which partnered with
the Indonesian Solar Panel Industry and Renewable
Alliance (INSPIRA), collaborated with the Government
of Indonesia (GoI) during the Indonesia International
Sustainability Forum (ISF). It is expected that solar PV
manufacturer ecosystem will be further developed in
Indonesia along with an enhanced national capacity for
the renewable energy sector.
Medco Power has also signed master agreements with
several Solar PV manufacturers listed in Bloomberg’s New
Energy Finance (BNEF). These partnerships have already
A Medco Power signing ceremony featuring the partnership
provided successful results in the East Bali PV Project,
between the Indonesian Solar Panel Industry and Renewable where local where local suppliers and were involved in
Alliance (INSPIRA), 5 September 2024. the majority of goods and services.
To further prioritise local engagement, in 2024 Medco
Power through its subsidiaries Medco Cahaya Geothermal,
MedcoEnergi is reinforcing our commitment to the constructed the power plant and transmission lines in
energy transition by advancing sustainable solutions, Ijen-1 Project by partnering with local EPC (Engineering,
driving innovation in renewable energy projects, and Procurement, and Construction) companies.
integrating sustainability and climate considerations
across its operations.
30 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 34
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Action Plans
Category Short Term Actions Medium-Long Term Actions Status
Responsible Develop 3rd party Partnership programme to Oil & Gas:
Procurement Capacity Building promote data transparency • By having a stand-alone MedcoEnergi human
Practices (Human Rights). and implement best rights policy in our contract terms, it drives 3rd party
practices in the value chain. capacity building in term of compliance on Human
Rights aspect.
• Conducted internal capacity building on sustainability
and climate topics for SCM division as an initial step
prior to engagement.
• Delivered two internal knowledge-sharing sessions on
Sustainability and Climate Change to SCM members,
with a total of 100 participants.
• Continued engagement with selected supply chain
partner on sustainability and climate change related
disclosures.
Conduct 3rd party engagement through Vendor Days Oil & Gas:
on regular basis. • Conducted Contractor Health, Safety and
Environment Management System coaching for
vendors for tender process
• Conducted Vendor Day for over 500 vendors across
our Oil & Gas assets in Indonesia, Thailand and Oman.
• Published SCM e-Newsletter, highlighting key
materials on sustainability, adherence to the Supplier
Code of Conduct, regulatory compliance, and Service
Quality Review elements.
Power:
• Hosted Contractor Forum for over 80 vendors covering
key topics on Contractor Safety Management System
(CSMS), the newly issued HSEQ-MS Policy, human
rights, procurement processes, and sustainability
commitments.
• Published SCM e-Newsletter highlighting key
materials on procurement processes, sustainability,
adherence to the Supplier Code of Conduct, and
regulatory compliance.
Economic Performance
Direct Economic Value Generated and Distributed (USD)
Description 2022 2023 2024
Direct Economic Value Generated 2,351,843,555 2,298,832,099 2,485,059,002
Revenues 2,351,843,555 2,298,832,099 2,485,059,002
2022 2023 2024
Economic Value Distributed 1,486,127,196 1,609,809,122 1,770,712,102
Operating costs 602,901,808 858,973,110 993,096,018
Employee wages and benefits 113,973,552 130,549,749 131,188,382
Payments to providers of capital 259,424,691 276,002,381 307,332,759
Payments to host countries governments 507,971,978 339,666,380 336,022,192
Community investments 1,855,167 4,617,501 3,072,750
Economic Value Retained 865,716,359 689,022,977 714,346,901
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
31
Page 35
Our Approach to Sustainability 34 Sustainability Framework 37 Driving Sustainability Performance and Strategic Growth 40 Sustainability Governance and Commitment to Human Rights 43 Managing Sustainability Risks and Opportunities 44 Stakeholder Engagement and Collaboration
Page 36
04
Medco Geothermal Sarulla, North Sumatra, Indonesia
This picture is the 2nd winner under the ‘Business & Assets’ category
of the MedcoEnergi 2024 Photography Competition
Page 37
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Sustainability Framework
Three Pillars of Sustainability
MedcoEnergi strives to create values for our enterprise, the society, and the environment. For these reasons, the three
pillars of Sustainability Policy reflect our corporate values and good corporate governance principles. Guided by these
pillars, we operate our business with integrity and transparency to safeguard our social license to operate.
MedcoEnergi’s Sustainability Policy
Leadership of and by Our Employees
Our people are our most valuable asset. They are the keystone of
our operations and our future success. Therefore, we must recruit
diverse talent from all backgrounds who possess the right skillsets
and ethical values. We are committed to maintaining a healthy,
safe workplace built upon a culture of mutual respect. To be
successful we will develop the capacity of all of our employees
while recognising and rewarding individual performance and
expecting personal accountability. All levels of our management
are expected to set clear directions towards our expectations.
Environmental and Social Development
As a responsible corporate citizen, we are committed to comply
with all applicable laws and regulations, and aligning our health,
safety and environmental management with industry best practice
and relevant international standards. We regularly set and monitor
our goals and performance to achieve zero injuries, illnesses,
environmental incidents, and the reduction of waste and emissions.
We seek to continually strengthen our operational excellence through
enhancing our safety culture, stakeholder engagement, environmental
stewardship, and the ongoing adoption and development of best
practices. We are committed to complying with all applicable laws
and regulations, to respecting human rights in line with the UN
Guiding Principles for Business and Human Rights and the Voluntary
Principles on Security and Human Rights, and to learning from and
applying industry best practice and relevant international standards.
Local Community Empowerment
MedcoEnergi endeavours to be a leading company on social
practices and responsibility wherever we operate. We engage
regularly, openly and honestly with stakeholders to share, hear
and understand each party’s views and concerns. We respond by
making community investment decisions in a strategic, fair and
transparent manner as we seek to empower and support the
creation of self-reliant communities aligned with the UN SDGs.
Governance as the Foundation of Sustainability
As the foundation that interconnects and strengthens all pillars, MedcoEnergi’s governance framework ensures that our initiatives are implemented
effectively. This comprehensive framework encompasses Anti-Bribery & Corruption (ABC), Human Rights, Public Policy, Socio-economic Compliance,
Supply Chain Management, and Enterprise Risk Management, enabling ethical and responsible business practices across our operations.
34 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 38
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Material Topics
Based on our double materiality assessment in 2022, most of the identified material topics in 2018 remain valid and our
Sustainability Policy is still relevant. This process identified 28 material topics, categorised into tiers by their significance,
likelihood, and the impact on enterprise value (outside-in) and to the society and environment (inside-out). These
material topics form the foundation of our strategic priorities since they are informed through an extensive stakeholder
engagement, board consultations, and guidance from Business for Social Responsibility (BSR).
Material Topics based on 2022 Double Materiality Assessment
Environmental
Leadership of and Local Community
and Social
by Our Employees Empowerment
Development
• Workplace health, safety, and • Climate Risk and Resilience • Local Community Development
wellbeing • Climate Mitigation Programmes:
• Security Practices • Climate Adaptation • Health
• Talent Attraction, Retention, and • Water • Environment
Development • Air Quality • Education
• Effluents and Waste • Local Infrastructure
• Asset Integrity and Security • Supporting Livelihood
Key Points Key Points Key Points
People/Organisation as a critical enabler The three Climate aspects (Risk and Despite the risks of negatively impacting
of success in moving forward, and the Resilience, Mitigation, and Adaption) both livelihoods and the environment,
ability to attract and maintain a lean, as clear and urgent/significant issues. MedcoEnergi has the chance to share
efficient, and diverse pool of top fit-for- significant benefits with the local
purpose talent. communities.
• Anti-corruption and • Human Rights • Stakeholders
Business Ethics • Responsible Engagement
• Policy and Regulatory Procurement
Governance Environment Practices
Key Points
Corruption is a major threat to both social development and the market economy.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
35
Page 39
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
The Tier 1 material topics are defined as follows:
Workplace Health, Talent Attraction,
Safety, and Security Practices Retention, and
Wellbeing Development
Ensuring a safe, healthy, and conducive work Measures and protocols to protect our assets, Strategies that attract, maintain, and
environment that promotes the physical and personnel, and information systems from enhance the skills and engagement of
mental wellbeing of employees. threats and unauthorised access. employees to ensure a competent and
motivated workforce.
Climate Risk and
Climate Mitigation Climate Adaptation
Resilience
Risks posed by climate change are assessed Actions and policies are aimed at reducing or Systems, strategies and assets are adjusted
and managed. Strategies are developed to mitigating greenhouse gas (GHG) emissions to minimise potential damage or take
mitigate, withstand and adapt to climate- to tackle climate change. advantage of opportunities associated with
related impacts. climate change.
Water Air Quality Effluents and Waste
Managing, conserving, and controlling Controlling and improving the atmospheric Managing waste products and effluents
the quality of water resources in business quality around business operations, with the (liquid waste and sewage discharged into
operations to emphasise its sustainable focus on reducing emissions and pollutants. a water body) to minimise environmental
usage and impact reduction. impacts and ensure sustainable disposal or
recycling.
Asset Integrity &
Local Communities Human Rights
Security
Ensuring the operational reliability and Engaging with the communities surrounding Being committed to upholding and
safety of physical assets while protecting our areas of operation and minimising protecting fundamental human rights in
them from risks like malfunctions, accidents, our social, economic, and environmental all aspects of our business operations and
and external threats. impacts on them. supply chains.
Policy & Regulatory Stakeholder Anti-Corruption &
Environment Engagements Business Ethics
Navigating and complying with all applicable Interacting with and involving stakeholders, Upholding ethical practices and combating
legal and policy frameworks governing including employees, customers, investors, corruption to ensure the integrity and
business operations. and communities, to inform them and transparency of our business.
enhance business strategies and decision-
making.
Responsible
Procurement
Practices
Implementing procurement methods that
prioritise ethical, environmental, and social
considerations.
Our Tier-1 and Tier-2 material topics have been translated into 102 goals and key performance indicators (KPIs) for 2024 as
part of our 2023-2027 Sustainability Roadmap. This roadmap reflects MedcoEnergi’s sustainability objectives and climate
aspirations, shaped through internal stakeholders consultations with various functions, subsidiaries and the Board of
Directors. These KPIs serve as the basis for our action plans, which are detailed at the conclusion of each chapter in
this Sustainability Report. By the year’s end, 95% of the 2024 goals and KPIs were achieved, with the remaining targets
scheduled for completion in 2025.
Our sustainability practices are integrated into all our activities and business relationships through our policy commitments.
A comprehensive disclosure of the GRI 2-23 Policy Commitments and GRI 2-24 Embedding Policy Commitments can be
found in the 2024 GRI Performance Data.
36 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 40
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Driving Sustainability
Performance and
Strategic Growth
Our Pathway to MedcoEnergi
Sustainability Sustainability Roadmap
The second year of our Sustainability Roadmap 2023-20271
2023-2027 continued to focus on key initiatives
that drive our long-term commitments. One of
these efforts includes developing a “Just Transition
Plan ”Incorporating insights from both internal • Further integrate sustainability into business to
and external stakeholders through focused group 2027 enhance value creation
discussions. Another key area is embedding climate • Reach Top Quartile ESG performer in the Oil & Gas
change considerations into corporate strategies Exploration and Production Sector in Southeast Asia
and financial plans and incorporating sustainability • Maintain or improve MSCI score of an A,
assessments into the Investment Appraisal Sustainalytics score of 36.7 and CDP Climate Change
Guidelines. score of a B
Strengthening organisational capability is also the • Materiality assessment update for the next five-year
key focus outlined in our roadmap. In 2024, we roadmap
implemented comprehensive training programs
covering broad sustainability and climate topics, • Internal carbon pricing and carbon trading: credit
2026
such as climate science, climate risk assessment, and offset
carbon accounting and financing, GHG management • Partnership programmes to promote data
technologies, biodiversity, and human rights. Our transparency and for implementation of best
e-learning programs and knowledge-sharing have practices along value chain
reached 2,800 employees since the programme was
launched.
• Reduce 20% of Oil & Gas2 Scope 1 & 2 GHG Emissions
Looking ahead, we will continue to refine our
2025
• Reduce 25% of methane emissions for our Oil & Gas2
approach, particularly to improve our disclosures
business
that meet the emerging standards.
• Increase renewable energy installed capacity to 26%
• Disclose Scope 3 GHG emissions
• Commit to upstream Carbon Capture and Storage
(CCS) pilot project
• Develop a Just Transition Plan
2024
• Embed Climate Change Strategy in Corporate
Business and Financial Plan
• Enhance governance, systems, capability building for
Human Rights
Sustainalytics’
ESG Risk Rating B AA
29.1 Climate Change ESG Rating
• Update goals and KPIs based on the 2022 materiality
2023
assessment
• Enhance sustainability & climate change capability
• Establish Human Rights Policy
• Conduct a Quantitative Climate-related Risk
GAIA (Green Assessment
Ambassadors
for Inclusive Sustainalytics’
Climate Action)
ESG Risk Rating B A
29.6 Climate Change ESG Rating
1 We conducted double materiality assessment in 2022 to establish our 2023-2027 Sustainability Roadmap.
2 Reduction from 2019 base year.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
37
Page 41
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Climate Change Strategy
MedcoEnergi’s climate change strategies demonstrate our commitment to increase energy supply by addressing climate-
related risks and further developing sustainable energy. These strategies prioritise reducing emissions and transitioning
to low-carbon energy; they also build resilience to address physical climate risks while focusing on working towards
net-zero emissions. These strategies are supported by clear initiatives and enablers to foster this long-term vision for
sustainable growth.
MedcoEnergi’s Climate Change Strategy
Vision Mission
To be the Energy Company of Choice for our To build long-term value with a portfolio
investors, shareholders, partners, employees of sustainable energy and natural resource
and the communities where we operate business
Climate Aspiration
Achieve Net Zero for Scope 1 and Scope 2 GHG Emissions by 2050 and
Net Zero for Scope 3 GHG Emissions by 2060
Strategy Focus Area Key Initiatives
• Reduce flaring, venting and fugitive emissions
Technologies & • Reduce energy use & intensity, adopt renewable energy sources
Best Practice • Collaborate along Supply and Value Chains to improve efficiency
and emissions disclosure
Managing Transition Risks
Emissions Carbon Removal • Carbon sequestration through nature-based solutions
Reduction & Offset • Explore CCUS* and CCS* opportunities
Growing Gas
• Expand natural gas production portfolio
as a Transition
• Evaluate opportunities to invest in LNG to Power
Energy Source
Transition to Growing
• Expand renewable power portfolio
Low Carbon Renewables • Assess feasibility to adopt emerging renewable technologies
Energy • Support initiatives for adoption of green solutions
Portfolio
Physical Climate Risks
Climate • Assess quantitative financial impact of climate-related physical risks
• Implement systems for regular monitoring of climate hazards and
Adaptation their impacts
Managing
Emerging
Physical
• Continue physical risk and biodiversity assessments on new
Climate Risk Climate Design investments
Management • Integrate climate risk assessment into future engineering designs
Enablers
Governance Data Management Transparency and Collaboration and
• Board commitment and • Improve Emission Data Compliance Engagement
oversight Management System
• Continue third party verification • Engage with regulators and
• Integration into business • Improve Scope 3 GHG
of emission disclosures investors to monitor emerging
plans and performance emissions collection and
• Strengthen TCFD* disclosures regulations and trends
management calculation in alignment
and improve CDP* and ESG • Collaborate with stakeholders
• Staff engagement with protocols and
scoring to drive the low carbon
and capacity building standards
economy
* Notes
CCUS : Carbon Capture Utilisation & Storage; CCS: Carbon Capture & Storage; TCFD: Task Force on Climate Related Financial Disclosure; CDP: Carbon Disclosure Project
38 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 42
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
ESG Performance by Rating and Index
Our ongoing commitment to sustainability and ESG improvements is been reflected in the recognition we have received
received. In 2024, our efforts to manage significant ESG risks and opportunities placed us in the ‘Leader’ category
according to MSCI, with an improved rating from A to AA. We maintained our CDP rating of B and sustained a medium
risk rating from Sustainalytics from 2023. MedcoEnergi is included in the IDX LQ45 as a low carbon leader. It has also been
recently listed among the stocks in ESG Sector Leaders of IDX KEHATI1.
MSCI ESG Ratings measures
a company’s management of AAA
long-term, financially relevant AA AA
ESG risks and opportunities.
Companies are rated on a scale A A A
of AAA (leader) to CCC (laggard). BBB BBB
BB BB
• As of 2024, PT Medco Energi Internasional Tbk received an
MSCI ESG Rating of AA
2020 2021 2022 2023 2024
Sustainalytics ESG Risk Rating
Sustainalytics’ ESG Risk Ratings assesses a company’s exposure
Risk Categories to industry-specific ESG risks and management approaches.
NEGL LOW MED HIGH SEVERE The ratings are categorised across five risk levels: negligible (0–
0-10 10-20 20-10 30-40 40+ 10), low (10–20), medium (20–30), high (30–40), and severe (40+).
Ranking 22 out of 294
46.9 In April 2025, we received an updated ESG risk rating of 38.5,
Severe Risk Oil & Gas Producers
42.2
23 May 2024 placing us back in the ‘High’ risk category from the previous
Severe Risk ‘Medium’ category. We believe the change in rating is primarily
36.7
40 High Risk due to an update in Sustainalytics’ methodology. Although
29.6 29.1 the Oil & Gas industry and country exposures to ESG risks
30
Medium Risk Medium Risk are high, our overall management of material ESG issues
continues to be rated strong by Sustainalytics. We are currently
requesting clarification and a re-assessment from Sustainalytics.
2020 2021 2022 2023 2024 Sustainalytics Disclaimer Statement refers to page 1.
CDP Score Report - Climate Change
2021 2022 2023 2024
MedcoEnergi’s
CDP Score
C2 B B B
CDP Climate Change evaluates how companies
and cities identify and manage climate-related
risks and opportunities, with scores ranging from Oil & Gas
Average Performance
Extraction & C C B
A (Leadership) to D- (Disclosure). Production
• We maintained our B score for CDP Climate
Change, which placed us in the Management- Asia B- C C
level band.
Global
Average
B- C C
Our selected sustainability data are assured by KAP PSS - EY, year-on-year we have gradually increased the number of assured
GRI Performance Indicators:
Number of GRI Indicators Assured
101
96
86 93
75
63
55
31
2017 2018 2019 2020 2021 2022 2023 2024
1 The ESG Sector Leaders Index IDX KEHATI is an index containing stocks with ESG performance assessment results above the industry average. (https://kehati.or.id/indeks-esg-
sector-leaders-idx-kehati/).
2 MedcoEnergi’s 2021 CDP Score was not disclosed publicly as first time reporter.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
39
Page 43
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Sustainability Governance and
Commitment to Human Rights
Sustainability Governance
At MedcoEnergi, sustainability is managed at the highest These working groups collaborate closely with functions
level of the organisation. Our Company integrates across the organization, ensuring that MedcoEnergi’s
sustainability within our existing governance structure, sustainability and climate objectives are aligned. These
with the Sustainability and Risk Management Committee two working groups report directly to the BoD.
(SRMC) as the highest governance body that supports the
The Board of Directors (BoD) is responsible for integrating
Board of Commissioners (BoC) in overseeing sustainability
climate-related risks and opportunities into business
(including climate change and energy transition) and risk
strategies, and is supported by key functions across the
management. The SRMC, comprising Commissioners
organization (see chart below). The BoD consistently
and Directors, issues directives, ensures effectiveness, and
addresses climate issues and monitors the progress of
provides recommendations on group-level sustainability
climate goals through weekly meetings, monthly and
and enterprise risk management for the company and its
quarterly performance reviews, project gate reviews, and
subsidiaries.
SRMC meetings. Each BoD member holds the following
The Board of Directors (BoD) as the executive governance specific responsibilities:
body, manages the overall sustainability agendas with
• President Director: Leads climate-related stakeholder
the support of the Corporate Sustainability and Risk
engagement.
Management (CSRM) division. The CSRM Head of Division
• Chief Executive Officer: Oversees the development,
reports directly to the CEO, supports all C-level executives,
review, and implementation of the Climate
and collaborates with key functions such as Corporate
Change Strategies and corporate-wide climate risk
Health Safety and Environment (HSE), Human Resources
management.
(HR), Relations & Security (R&S), and Audit & Integrity
• Chief Financial Officer: Manages financial planning,
Compliance (A&IC) to implement sustainability initiatives
business strategies, and investor relations to implement
across asset levels and business sectors. Progress is
Climate Change Strategies.
reviewed during Quarterly Performance Reviews (QPR),
• Chief Operations Officer: Ensures climate-related
when functional teams report their sustainability
operational integration into the Oil & Gas business and
performance and risk registers to the BoD. The BoD then
that progress is made to reduce GHG.
provides updates to the BoC at SRMC meetings.
• Chief Administrative Officer: Supervises corporate-
To strengthen the focus of our Climate Change Strategy level coordination and implementation of the Climate
implementation, we established the Climate Change Change Strategy.
Working Group (CCWG) and the Energy Transition Working • Medco Power Indonesia Chief Executive Officer:
Group (ETWG) as part of the sustainability and climate Oversees the development, review, and implementation
change governance. The CCWG focuses on reducing GHG of the Climate Change Strategy and Power’s subsidiary
emissions and managing physical climate risks, while the climate risk management.
ETWG leads efforts to transition to low-carbon energy by
expanding the natural gas and renewable energy portfolio.
40 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 44
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
The governance structure below ensures accountability at all levels, from board oversight to operational implementation,
enabling effective management of climate-related risks and opportunities.
Organisational Structure of MedcoEnergi Sustainability/ESG Governance
Board of Commissioners
Sustainability & Risk Management
Committee (SRMC)
Board of Directors
Climate Change Energy Transition
Working Group Working Group
GHG Emissions Reduction Physical Risks Management Low Carbon-Energy Transition
Sub-Working Group Sub-Working Group Sub-Working Group
Chief Financial Chief Operating Chief Administrative Chief Executive
Officer (CFO) Officer (COO) Officer (CAO) Officer (CEO)
CF, CPIA, & IR CHSE, TA, & PDEE HR, R&S, DIT, & SCM CSRM & A&IC
Oil & Gas Power
Pre-dev/Projects, Drilling, Explorations, Assets Pre-dev/Projects, Operations, Assets
Human Relations & Health Safety Human Health Safety & Environment,
Resources Security & Environment Resources Social & Security
Supply Chain Sustainability Business Development Supply Chain
Management Development Division & Sustainability Management
Reporting Line Notes:
CF : Corporate Finance
Coordination Line
CPIA : Corporate Planning & Investment Appraisal
Corporate IR : Investor Relations
CHSE : Corporate Health, Safety & Environment
Committee and Working Groups TA : Technical Assurance
as part of sustainability and PDEE : Project Development and Engineering Excellence
climate change governance HR : Human Resources
R&S : Relations & Security
DIT : Digital Information Technology
SCM : Supply Chain Management
CSRM : Corporate Sustainability & Risk Management
A&IC : Audit & Integrity Compliance
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
41
Page 45
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Our Commitment to Human Rights
Our commitment to respect human rights has always
been integrated into various aspects of our business and functions, we integrated human rights awareness into our
reflected in our policies such as the Sustainability Policy, organisational learning by incorporating a human rights
Code of Conduct, Community Development and Security briefing into the sustainability training materials.
policies, as well as our Corporate Recruitment Guidelines. Our standalone Human Rights Policy outlines the
Additionally, we have a comprehensive grievance and following key commitments:
whistleblowing system to effectively address any concerns
• Respect for Human Rights: Upholding principles from
related to human rights.
the Universal Declaration of Human Rights (UDHR),
Following the corporate-level human rights assessment International Labour Organisation (ILO) Declaration,
in 2022, we issued a standalone MedcoEnergi’s Human and other global standards.
Rights Policy in early 2024. This policy builds upon • Guidance Frameworks: Aligning with the UN Guiding
existing human rights-related policies and best practices Principles on Business and Human Rights (UNGPs),
at MedcoEnergi into a standalone corporate policy. Voluntary Principles on Security and Human Rights
We partnered with BSR to conduct internal familiarisation (VPSHR), and IFC Performance Standards.
and training sessions across all assets from March to July • Legal Compliance: Adhering to the laws of the countries
2024 to support policy implementation. This was followed in which we operate.
by implementing Human Rights Terms & Conditions in • Risk Management: Enforcing policies related to our
vendor contracts in July 2024 and organising Human Code of Conduct, Supplier Code, Sustainability, Health,
Rights policy familiarisation to the senior leadership. Safety & Environment, Community Development, and
Security.
We completed the Human Rights Impact Assessment • Human Rights Protection: Ensuring fair working
(HRIA) in 2024 for Block A and for our non-operated asset conditions, recognising union rights, and maintaining
JOB Tomori, fulfilling the requirements of the Equator zero tolerance for child labour, modern slavery,
Principles 4 (EP4) . The HRIA underscores our commitment harassment, and discrimination.
to responsible business practices which are guided by • Vulnerable Groups: Identifying and addressing risks
the United Nations Guiding Principles on Business and faced by minorities, women, children, and migrant
Human Rights (UNGPs). This systematic process identified, workers.
analysed, evaluated, and mitigated potential human • Partner Accountability: Requiring business partners to
rights impacts, and provided a clear understanding of all comply with our Code of Conduct and Supplier Code to
risks based on their severity and likelihood. We therefore ensure legal and ethical standards.
manage human rights issues in Block A and JOB Tomori • Grievance Mechanisms: Providing channels for
by integrating assessment outcomes into our enhanced addressing concerns, with clear procedures for
Environmental Social Action Plans (ESAP), prioritising the investigation and resolution.
health and safety of communities, addressing security • Governance and Oversight: Involving the Board of
risks in Block A, and labour rights in JOB Tomori, with Commissioners, Sustainability and Risk Management
progress monitored monthly by asset management. Committee, Board of Directors, Corporate Sustainability
We continue to strengthen our human rights expertise and Risk Management Division, and functional teams
through various training programmes. For example, we to ensure accountability.
participated in UNDP’s Human Rights Due Diligence • Due Diligence: Implementing human rights due
Training and the Indonesian National Human Rights diligence at the asset level and across all business units.
Commission (Komnas HAM) training on Business Standards
Our Human Rights Policy is available here.
and Human Rights. To further extend our principles in all
The timeline below highlights our milestones in developing this policy:
MedcoEnergi’s Human Rights Milestones
• Identified Human Rights as priority
through materiality assessment • Developed Human Rights Policy
• Initiated study on Human Rights- • Conducted VPSHR training for
related regulatory requirements selected participants from
• Conducted Voluntary Principles on MedcoEnergi and its subsidiaries
Security and Human Rights (VPSHR) • Conducted Human Rights Impact
training for Relations and Security • Partnered with BSR to conduct Assessment (HRIA) for Block A and
division corporate Human Rights Assessment Senoro (JOB Tomori)
2018 Foundation 2021 Assessment Initiative 2023 Policy & Training
2020 Policy Integration 2022 Implementation 2024 Expansion & Integration
• Integrated Human Rights into • Completed the corporate Human • Launched standalone Human
Community Development Policy Rights Assessment with BSR Rights Policy
and Security Policy • Identified human rights risk • Began communicating the policy to
• Updated Code of Conduct with exposures, in-place mitigations and the assets and business partners
international best practices for systems, and rooms for improvements • Implemented new contract template
Human Rights • Provided the basis to develop a incorporating standalone Human
standalone Human Rights policy. Rights Policy and Sustainability Policy
42 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 46
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Managing Sustainability
Risks and Opportunities
Sustainability Assessment
MedcoEnergi manages internal challenges and In 2024, we updated our Sustainability Assessment
stakeholder expectations through our Sustainability for Projects guidelines to strengthen climate change
Assessments, evaluating environmental and social indicators. We have now required all projects to identify
related risks across project and operational stages. GHG reduction opportunities. For projects forecasting
These assessments exceed compliance requirements to over 100,000 tons of CO2 equivalent emissions annually,
prevent, mitigate and manage risks in alignment with IFC we require climate change action plans. The 2024 revision
Performance Standards. also adds another requirement to expands this by
integrating physical climate change risk assessments into
Our project-focused guidelines, known as the
project designs and mandating methane management.
Sustainability Assessment Guidelines©, have been
We have also incorporated the government’s commitment
in effect since January 2021 and received copyright
to zero routine flaring to reduce our GHG emmissions .
protection from Indonesia’s Ministry of Law and Human
Rights in March 2024.
Climate-Related Risk Management
Climate-related risks are embedded across key areas of our Enterprise Risk Management; these include operations, HSE
and security, and strategic considerations. This ensures comprehensive assessment, adaptation and mitigation strategies
are integrated into all aspects of our business activities. Climate considerations are further embedded into our Corporate
Business, Financial Plan as well as Asset Management, ensuring these risks and opportunities are addressed throughout
our decision-making processes.
Risk Universe of MedcoEnergi
Physical Risks
Acute Physical Risk
Financial People &
Organisation
Inland Extreme
Cyclone Wildfires
Climate Related Risks
Flood Rainfall
Strategic Operation Chronic Physical Risks
Rising Sea Extreme Water
Droughts Scarcity
Levels Heat
IT & Business Social &
Support Community
Transition Risks & Opportunities
Regulatory HSE &
Security
& Legal Policy & Energy
Technology Market Reputation
Legal Source
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
43
Page 47
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
A cornerstone of our efforts is the Climate Change Risk Beyond climate risk assessments, we gain understanding
Assessment (CCRA) process, which we initiated in 2021 and about the Taskforce on Nature-related Financial
have since expanded and refined. In 2024, we developed Disclosures (TNFD) framework as our operations depend
comprehensive guidelines to standardise the process and on natural resources and ecosystems. TNFD provides
provide a structured methodology to assess and manage valuable guidance to identify and manage dependencies
climate-related risks and opportunities, including both on nature, environmental impacts, associated risks and
physical and transition risks. These guidelines align with opportunities.
MedcoEnergi’s Enterprise Risk Management (ERM)
We are anticipating the recommendations of TNFD
framework and other widely recognized international
framework by conducting an initial internal gap
climate-related frameworks, ensuring consistency across
assessment and benchmarking against the set of
organisational practices. They provide a foundation for
disclosure recommendations in 2024. We will be building
risk identification, analyses, evaluations, and treatments
our ability to understand the guidance on how businesses
to plan, implement, monitor, and adapt strategies.
assess, report, and act on the nature-related dependencies,
Additionally, we are developing the CCRA platform, a
impacts, risks, and opportunities. These actions reflect our
tool designed to assess physical climate risks across
commitment to align with global sustainability standards
asset portfolios. This platform enables comprehensive
and meet evolving stakeholder expectations.
screening of asset to identify the risk scores for physical
climate hazards and supporting informed decision-
making for mitigation and adaptation strategies.
Stakeholder Engagement
and Collaboration
Engaging Our Stakeholders
We conduct various engagements with our stakeholders We demonstrated our climate action commitment by
to gather their input and strengthen our sustainability presenting our Climate Change Strategies as part of
programmes. By actively listening to their priorities, we the delegation from Government of Indonesia at the
gain insights that enhance our sustainability initiatives Indonesia Pavilion during COP29 in Baku, Azerbaijan.
and maintain our social license to operate. Through There, we highlighted our approach to reducing emissions,
transparent engagement, we build relationships that transitioning to low-carbon energy, and managing
deliver value for stakeholders and support the nation’s physical climate risks. We also participated in the US Trade
sustainable progress. and Development Agency’s Advanced Technologies for
Methane Abatement Reverse Trade Mission in December
In July 2024, MedcoEnergi joined the UN Global
2024, along with other Indonesian delegation from the
Compact (UNGC), the world’s largest voluntary corporate
Ministry of Energy and Mineral Resources and the national
sustainability initiative. UNGC is based on ten universal
Oil & Gas Company, Pertamina. This enabled us to engage
principles that cover human rights, labour standards,
not only with the US government, but also multilateral
environmental stewardship, and anti-corruption –
development agencies, NGOs, and industries to enhance
principles that are aligned with our core values. Our
our understanding of regulatory compliance, reporting
membership provides MedcoEnergi with access to
requirements, and innovative methane reduction
valuable global resources, tools, and guidance, enabling
technologies.
us to further advance our sustainability agenda.
In 2024, we were invited to provide input as shareholder
During the 2024 MedcoEnergi Capital Market Day, we
to OQEP1’s sustainability materiality assessment and
engaged with our stakeholders, outlining our strategic
provided our views on social and environmental impacts
opportunities for the future of Oil & Gas operations
of OQEP and how these create values to OQEP’s
and investing in clean and renewable power. We also
stakeholders.
participated in the Singapore International Energy Week
(SIEW), where we exchanged ideas and solutions to
address the energy challenges of the future.
1 OQ Exploration and Production (OQEP) is Oman’s fully government-owned hydrocarbon exploration and production company and a subsidiary of the OQ Group.
44 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 48
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
The following table lists MedcoEnergi’s stakeholder groups and the engagement and support we provide:
Our Employees Government & Regulators
Why engagement matters Why engagement matters
Workforce engagement is crucial for operational It ensures regulatory compliance and contributes
excellence and maintaining strong company culture. to policy development.
Key areas of mutual interest How we engage Key areas of mutual interest How we engage
• Employment terms and • Regular, quarterly engagements with union • Environmental compliance • Regular consultations on environmental and social impacts
benefits representatives • Climate change • Participation in government initiatives and dialogues
• Workers’ rights & • Continuous forums to resolve matters related to adaptations • Engagement in SDG forums and other sustainability forums.
representation employee relations and employment benefits, • Industry regulations • Input provisions for climate change and environmental
• Professional development terms, and conditions • Community development regulations
Workplace safety and wellbein
Shareholders Banks and Investors
Why engagement matters Why engagement matters
It maintains transparency and trust with It secures financial support for sustainable
shareholders who support company growth. operations and growth.
Key areas of mutual interest How we engage Key areas of mutual interest How we engage
• ESG performance • Sustainability Report
• Corporate performance • General meetings to present annual results
• Project financing • Submission of lenders’ regular monitoring reports
• Material decisions • Regular meetings between management and
• Risk management • Publications of quarterly investor updates on our website
• Corporate governance investors
• Sustainability initiatives • Roadshows on sustainability/ESG themes
• Risk management • Corporate updates and disclosures
• Equator Principals (EP4) compliance, collaboration and
lenders’ monitoring
Vendors and Business Partners Consumers
Why engagement matters Why engagement matters
It builds sustainable and responsible supply chain It delivers value and promotes sustainable practices.
relationships.
Key areas of mutual interest How we engage Key areas of mutual interest How we engage
• Corporate governance • Regular familiarisation of our Corporate Governance • Service reliability • Support government’s objectives for natural gas use for
• Sustainability initiatives Manual, corporate values, Code of Conduct, Code of • Oil and natural gas use Indonesia and Singapore,
• Code of conduct compliance Suppliers and sustainability initiatives • Product accessibility • Development of supply chain with local enterprises
and MedcoEnergi’s Code • Regular quarterly/monthly meetings for business up- • Environmental impacts • Collaboration with the state-owned electricity company
dates from MedcoEnergi to our partners as well as during
of Suppliers
the annual Vendor Day and Contractor Forum, held for
• Operational efficiency
our partners in oil and gas and power subsidiaries.
NGO Local Communities
Why engagement matters Why engagement matters
It ensures environmental, social and governance It maintains social license to operate and creates
responsibility. shared value.
Key areas of mutual interest How we engage
Key areas of mutual interest How we engage
• Community development • Facilitate and implement stakeholder engagements and
• Community empowerment • Collaborate on government initiatives to empower • Environmental protection community development
• Environmental protection local communities, support our workforce and • Youth engagement • Familiarise all stakeholders with our grievance
• Social development mitigate adverse environmental and social impacts • Grievance resolutions mechanism in our Social Management System (SMS)
• Stakeholder feedback • Maintain communication to gather their feedback • Engage youth through programmes that focus on
cultivating a culture of integrity and awareness about
anti-corruption measures
Academia Media
Why engagement matters Why engagement matters
It advances research and industry knowledge. It maintains transparent communication with
the public
Key areas of mutual interest How we engage Key areas of mutual interest How we engage
• Research collaboration • Collaborate with universities to provide access to • Corporate updates • Engage the media and hold press conferences at
• Knowledge sharing cutting edge research and expertise • Industry developments the local and regional levels
• Capacity building • Conduct capacity building programmes • Public awareness • Conduct awareness and competency training for
• Industry expertise • Set up sessions to share knowledge • Accurate reporting journalists in the oil and gas industry
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
45
Page 49
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
MedcoEnergi Memberships
Engaging with various associations empowers us to collaborate and broaden our influence in the energy sector. These
associations provide platforms for MedcoEnergi to contribute not only as members, but also as leaders and initiators to
secure sustainable energy and natural resources.
Category Name of Association Position
Indonesia Association of Indonesian Oil and Gas Industry Remuneration Practitioners (APRIMI) Member
Auditors Forum of SKK Migas - KKKS (FAMI) Steering Committee
Indonesia Carbon Capture and Storage Centre (ICCSC) Member
Indonesia Corporate Secretary Association (ICSA) Member
Indonesia Public Relations Association (PERHUMAS) Member
Hydropower Plant Developers Association (APPLTA) Member
Indonesian Business Council for Sustainable Development (IBCSD) Member
Indonesian Employers Association (APINDO) Member
Indonesian Chamber of Commerce and Industry (KADIN) Member
Indonesian Electrical Power Society (MKI) Member
Indonesian Environmental Impact Assessment Forum (FAI) Chairman
Indonesian Geothermal Association (INAGA) Member
Indonesian Petroleum Association (IPA) Board of Directors
IPA – Ethics and Compliance Committee Advisor
IPA – Environmental and Safety Committee Member
IPA – Energy Transition Committee Member
IPA – Supply Chain Committee Leader
Indonesian Independent Power Producers Association (APLSI) Member
Indonesian Renewable Energy Society (METI) Board of Supervisors
International Society of Sustainability Professionals (ISSP) Member
National Centre for Sustainability Reporting - Energy Sector (NCSRE) Chairman
Public Relations Forum of SKK Migas - KKKS Steering Committee
The Climate Reality Project Indonesia Leader
United Nations Global Compact Member
Thailand Oil Industry Environmental Safety Group Association (IESG) Member
Petroleum Institute of Thailand (PITI) Member
Society of Petroleum Engineers (SPE) Member
Oman Oman Chamber of Commerce and Industry (OCCI) Member
Oman Society for Petroleum Services (OPAL) Member
46 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 50
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
MedcoEnergi’s employees and families participated in the Decent Housing Programme
in Mauk, Indonesia. More details on page 138
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
47
Page 51
Pursuing Excellence in Our Governance 50 Approaches, Commitments and Goals 52 Corporate Governance Structure 53 Risk Management 53 Corporate Governance Assurance Framework, Programmes and Policies 62 Anti-Corruption Collective Actions 64 Alignment of Sustainability Initiatives with the UN SDGs 64 Action Plans
Page 52
05
Page 53
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
MedcoEnergi embraces ethical governance, fostering compliance and transparency to strengthen resilience and advance
sustainable operations. We are committed to creating lasting value for our stakeholders that is aligned with our vision
and mission.
Approaches, Commitments
and Goals
Our approaches are rooted in ethics-driven strategies that foster a culture of integrity and long-term stakeholder
engagement. We apply Good Corporate Governance (GCG) principles and Code of Conduct (Our Code) across all
subsidiaries and business divisions. As shown in the figure below, GCG governs organisational business practices, while
Our Code guides employee conduct, which both reinforces business and work ethics to uphold integrity and compliance.
This framework ensures strict adherence to laws, regulations, and global industry best practices and standards.
Medco Energi has reinforced its commitment to both transparency and ethics by strengthening corporate governance
in its supply chain through vendor day events, which are referred to in the SCM section.
Relationship Between GCG and Our Code
Vision, Mission
and Corporate Values
Good Corporate Code of Conduct
Governance (GCG) (Our Code)
Manage Organisation Manage Employee
Business Conduct Business Conduct
Business Ethics
and Work Ethics
Find more Good Corporate Governance information here.
Good Corporate 01
Governance Principles Transparency
02
Accountability
The Company must
We integrate Transparency, provide material and
The Company must be
managed in accordance
Accountability, Responsibility, relevant information by
with the interests of the
Independence, and Fairness into ways that are easy for
company, shareholders,
stakeholders to
our Good Corporate Governance access and to
and stakeholders.
(GCG) Principles, ensuring a solid understand.
foundation for ethical business
practices. These principles
guide the MedcoEnergi Board
MedcoEnergi’s
of Commissioners (BoC) and Good Corporate
Board of Directors (BoD) to lead 05 Governance 03
responsibly and make sound Fairness Principles Responsibility
decisions. The MedcoEnergi GCG The Company must be
The Company must
Implementation Guideline is managed in accordance
comply with all relevant
with the principles of
available here. fairness and equality. laws and regulations, and
perform responsibly with
regards to community
and environment.
04
Independence
The company must be
managed independently.
It must avoid domination by
any one function over any
of the others or
interventions from
other parties.
50 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 54
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
MedcoEnergi Code of Conduct
At MedcoEnergi, we are committed to upholding the highest ethical standards in everything we do. Our tagline, “Know
the Code, Know the Commitment,” embodies this commitment by emphasising the importance of our Code of Conduct.
This Code outlines the expected standards, duties, and responsibilities for all personnel, ensuring that our activities are
carried out with integrity. Our Code addresses critical areas such as human rights, anti-corruption, data privacy, and anti-
money laundering, which, aligned with global best practices, guide us towards ethical excellence.
We expect all stakeholders to consistently adhere to Our Code regardless of their locations. Our Code is accessible here
and illustrated in the figure below.
Our Code
Our Commitments & Protecting Our Respecting Our
Responsibilities Employees & Workplaces Stakeholders
• Our Corporate Values and Code • Equal Opportunity and • Our Business Partners
of Conduct Discrimination • Our Communities
• Our Expectations of Everyone • Workplace Harassment • Our Government
• Our Expectations of Supervisors • Personal Data Privacy
• Raising Our Concerns • Safe Workplace
• Disciplinary Actions • Human Rights
Protecting Our Company’s Interests & Assets Obeying the Law
• Conflicts of Interest • Corruption and Bribery
• Accuracy of Financial Reporting • Preventing Money Laundering
• Protection of Company Assets • Involvement in Politics
• Intellectual Property Rights
• Information Technology and Communication System
• Insider Trading
Code of Supplier
We recognise our suppliers as essential partners in our success and commitment to strong corporate governance. In
2022, we launched our Code of Supplier to establish clear expectations and standards for our business partners. This code
addresses legal and compliance risks while providing a framework for proactive business impact management. Through
this initiative, we encourage our partners to embrace ethical, responsible, and forward-thinking business practices as we
drive sustainable growth together. This Code of Supplier is available for reference here.
In 2024, we strengthened our engagements with domestic and international oil and gas vendors, including those in
Bualuang (Thailand) and MLLC (Oman), through newsletters, and Vendor Day events. These initiatives, detailed in Chapter
3, reinforce transparency, uphold ethical practices, and foster collaborative partnerships to enhance operational efficiency
and compliance.
Public Policy
MedcoEnergi does not support any political party and does not make contributions or donations to any political party or
affiliated organisation in any location we operate. However, we fully respect our employees’ right to engage in political
processes and support their preferred parties or candidates. Nevertheless, employees involved in political activities, such as
joining a political party or campaigning for an election, must do so in accordance with our policies and regulations. Before
each election, all employees receive internal communications outlining our position on donations and contributions.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
51
Page 55
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Corporate Governance
Structure
Our GCG framework outlines the responsibilities of MedcoEnergi’s Board of Commissioners (BoC) and Board of Directors
(BoD) as they govern and oversee all operations. Our GCG structure ensures a clear segregation of duties between the
BoC, which provides oversight and strategic direction, and the BoD, which executes operations and makes decisions. Both
Boards play a crucial role in ensuring accountability, which includes integrating sustainability and climate considerations
into our responsible business practices. Furthermore, the Sustainability and Risk Management Committee (SRMC) and
Corporate Sustainability and Risk Management (CSRM) contribute significantly to these efforts, as detailed in Chapter 4.
In 2024, we strengthened our commitment to ethical business conduct by establishing the Corporate Ethics and
Compliance Committee (CECC) under BoD, which ensures an objective and fair process in addressing whistleblowing
reports.
Corporate Governance Structure
Shareholders
Board of Commissioners
Accountability
Delegation
Sustainability & Risk Audit Committee
Management Committee
Nomination & GCG Committee
Remuneration Committee
Board of Directors
Board of Commissioners (BoC) The CECC consists of the:
The BoC oversees the BoD, ensuring that GCG principles • Chief Administrative Officer (CAO),
are applied throughout the organisation. The duties • Chief Operating Officer (COO),
and responsibilities for BoC members are outlined in • Chief Financial Officer (CFO),
our Annual Report. The BoC is supported by the Audit • Head of Corporate A&IC,
Committee, Nomination and Remuneration Committee, • VP Human Resources and General Services,
Sustainability and Risk Management Committee (SRMC), • VP Corporate Legal Counsel & Corporate Secretary,
and GCG Committee in executing its duties. More details • other relevant functions as needed.
on these committees are described in our Annual Report. This committee not only ensures that all reports are
addressed with trust, impartiality, and protection, but
Board of Directors (BoD) that disciplinary actions are also applied consistently and
MedcoEnergi’s Board of Directors (BoD) ensures that appropriately in accordance with legal requirements,
shareholders interests and strategic goals are aligned. industry standards, and international best practices. The
Each BoD member has distinct responsibilities, which are CECC conducts regular meetings at least once per quarter
detailed in our Annual Report. or as required.
Corporate Ethics and Compliance Committee Sustainability-linked Remunerations
(CECC) MedcoEnergi’s sustainability performance is one of the
key factors in determining BoD remunerations. The
The Corporate Ethics and Compliance Committee (CECC),
Nomination & Remuneration Committee evaluates
established in October 2024, plays a vital role in ensuring
annual sustainability performance, responsibilities,
fair, objective, and transparent processes for handling
and industry best practices. It prepares remuneration
allegations reported through whistleblowing channels.
proposals, which the BoC presents at the Annual General
Meeting of Shareholders (AGMS) for shareholder approval.
52 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 56
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Risk Management
At MedcoEnergi, we employ an Enterprise Risk Management (ERM) framework to identify, assess, and mitigate both
existing and potential risks that may impact the company’s operations and long-term sustainability.
Our ERM framework refers to ISO 31000:2018 standards and serves as a key governance component of our Sustainability
Framework. It ensures a structured and proactive approach to risk management by integrating risk identifications,
assessments, monitoring, and reporting across all business functions.
This framework covers a broad spectrum of risks, including those related to our business partners, and spans strategic,
operational, financial, regulatory, social, and community categories. By embedding ERM into our corporate governance,
we enhance resilience, transparency, and accountability in decision-making processes.
Risk Governance Structure
l
ve
• Issues directives to align risk management to
le
the overall company strategy,
icg
SRMC1 • Review key risks escalated by the BoD.
te
ra
St
l
ve
• Ensure and oversee implementation and
Board of Directors
le
al
effectiveness of RM processes.
tic
(BoD) • Review all key risks at a periodic interval
c
Ta
el
ev
Head - ERM Function
ll
na
• Implement risk management processes
io
Functional & Asset Head | Subsidiary Directors Function | • Update the BoD on risks through reports
t
ra
Subsidiary Risk Champions | Risk Owners • Track risk indicators
pe
O
Corporate Governance
Assurance Framework,
Programmes and Policies
The Board is strongly committed to good
corporate governance and Our Code through
m ent
the Governance Assurance Framework. This
ve
ro
Corporate
comprehensive structure encompasses six key Values and
components: our corporate values and Code
p
Our Code
s Im
of Conduct, prevention, detection, responses,
monitoring & evaluation, and continuous
uou
improvement. These components create a
robust system that ensures accountability,
Contin
transparency, and compliance across our Prevention
operations, as illustrated below: Monitoring &
Evaluation
Response Detection
1 Sustainability and Risk Management Committee (SRMC)
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
53
Page 57
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Corporate Values and Our Code
Our corporate values and Our Code define the standards that govern how our people conduct their work, carry out
responsibilities and behave according to ethical values.
International Compliance Programme
The table below outlines our international compliance programmes in sanctions compliance, anti-money laundering,
and due diligence:
International Compliance Programmes
Corporate Sanctions Compliance Anti-Money Laundering (AML)
MedcoEnergi has continued strengthening its Corporate Sanctions MedcoEnergi formalised its Anti-Money Laundering (AML) Policy
Compliance Policy and Programme since its initial launch in 2021. in March 2024, reinforcing its commitment to manage money
The company issued the Corporate Sanction Compliance Policy laundering risks with business partners. This initiative builds on the
and introduced the Sanction Compliance Programme, which revised Our Code, which was introduced in May 2020, and is aimed
included Sanctions Awareness and Risk Assessment sessions at strengthening compliance and prevention measures.
across divisions. This ongoing commitment reflects MedcoEnergi's
dedication to maintaining robust compliance standards.
2024 2024
On December 30-31, 2024, we conducted due diligence on • Following the issuance of the Corporate Anti-Money Laundering
sanction-related aspects of the jack-up rig contract and material Policy in March 2024, we disseminated the policy to our
management process, providing recommendations to the employees to ensure they were aware of our commitment to
relevant functions. comply with Anti-Money Laundering laws. We also equipped
our ELO with awareness materials on Anti-Money Laundering
to be cascaded to relevant employees in the organisation.
Additionally, we reinforced this commitment with our suppliers
and vendors by issuing an Anti-Money Laundering newsletter.
• We held an AML workshop for leaders in Corporate Finance &
Treasury, Business Development, and MPI Finance & Treasury in
December to strengthen understanding of the AML Policy and
related regulations. The session included risk assessment and
due diligence exercises to help mitigate AML compliance risks.
2023 2023
• We focused on sanction compliance in the marine sector to • Started a project to develop and benchmark AML Corporate
prevent smuggling, criminal activities, and terrorism, with an Policy mapping.
emphasis on Iran, North Korea, and Syria. • Trained employees on AML awareness & understanding with a
• A&IC and CSRM held a 2023 Marine Sanction Risk Assessment reputable provider.
workshop in June for 10 key marine personnel, followed by a • Attended the Southeast Asia Financial Crime Symposium by
similar session in August for 13 personnel at JOB Tomori. Deloitte.
• Consulted with an external law firm on the AML Corporate
Policy.
2022 2022
MedcoEnergi held the first Compliance Awareness session for • Communicated AML commitments and expectations to vendors
Medco Power, with attendees from Finance, Supply Chain, through the 4th Edition of the Compliance e-Newsletter.
Business Development, Legal, and Corporate Communications. • Launched the Code of Suppliers, which incorporated AML
expectations.
• A&IC representatives joined the “AML Trends & Challenges”
webinar, organised with UNODC and Hogan Lovells DFNP.
• Conducted a self-assessment of the AML compliance
programme based on reputable standards.
This aligns with our risk-based Due Diligence Roadmap for 2023-2027, which was determined by risk escalations.
Due Diligence
Assets 2022 2023 2024
We continued our due diligence on third-party risks in 2024 by
focusing on high-risk areas, specifically involving licenses and permits.
This aligns with our 2023–2027 due diligence focus areas, which are Oil & Gas - Domestic 20 8 151
guided by risk escalations.
Oil & Gas - International 27 15 16
2023 2024 2025 2026 2027 Power 9 3 3
Marine License & Logistic & Manpower Security JOB Tomori 3 3 4
Permit Inspection Services Services
Total Number of Vendor Due 59 29 38
Diligence Conducted
1 Comprehensive due diligence assessments for Forel Project in 2024
54 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 58
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Prevention
Our commitment to ethical business practices is reinforced through comprehensive governance initiatives and robust
anti-bribery and corruption measures.
Ethics Ambassador Programme: A Commitment to Integrity and Sustainability
We uphold integrity and sustainability through the Ethics Liaison Officer (ELO) Programme, engaging line management
to strengthen ethics compliance. ELOs promote MedcoEnergi’s values to ensure compliance with ethics at all levels.
For this reason, the Ethics Ambassador Program empowers employees to understand and embrace ethical standards,
which reinforces our zero-tolerance on corruption and bribery. As a result, the trainings, workshops and coaching enable
ambassadors to support employees to make ethical decisions and facilitate open dialogue. Senior management selects
and approves ELOs, emphasising our commitment to a strong ethical culture.
Items Oil & Gas Power
Programme Title Ethics Liaison Officers (ELO) Programme Compliance Champion Programme
No. of Personnel in 2024 84 (including international assets) 24
Roles and Responsibilities of Personnel • Lead discussions and deliver • Communicate and discuss issues
presentations on ethics to the groups related to ethics and compliance from
• Provide awareness and support subsidiaries to Medco Power’s head
the groups that use ELO materials office
(presentations, case studies, posters and • Monitor the designs and
infographics) implementation of the Anti-Bribery
• Participate in corporate campaigns Management Systems (ABMS) and other
(including Ethics & Compliance Weeks bribery-related matters
and Anti-Corruption Day) and distribute • Monitor compliance of ABMS with ISO
campaign tools coordinated by the A&IC 37001:2016 requirements
divisions) • Report on ABMS performance to top
management and other compliance-
related functions as required.
The numbers of people participating in our Ethics Ambassador Program are summarised in the table below1
Asset 2022 2023 2024
Corporate and Domestic Oil & Gas 2,530 2,036 1,763
International Oil & Gas 74 38 41
Corridor2 1,311 - -
Power 13 359 1,329
Number of Participants 3,928 2,433 3,133
Communication and Education Initiatives
We emphasise ethics and compliance education to foster
integrity. Proactive engagement strengthens employees’
commitment to ethical practices, and thus, reduces
compliance risks.
In 2024, key initiatives included compliance sessions to
our employees. The sessions covered data protection,
ethics, and workplace harassment, while cybersecurity
awareness was promoted with Corporate Communication Cybersecurity awareness session with
and Digital IT. HR collaborations ensured political risk Corporate Communication and Digital IT
guidance, an ethics quiz on harassment, and ongoing
business ethics training for new hires and leaders.
Additionally, we also participated in anti-corruption
sharing sessions at JOB Tomori and integrity sharing
session at Harbour Energy.
Anti-corruption sharing sessions at JOB Tomori
1 The number of participants in the ELO Programme includes both employees and contractors. The 2022 figure has been restated to include Medco Power. Outreach for 2022
was calculated using both offline and online attendance records, whereas in 2023 and 2024, it was based solely on online records.
2 In 2022, Corridor was reported separately as it had only recently merged with Medco Energi. From 2023 onwards, it has been consolidated under Corporate and Domestic
Oil & Gas.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
55
Page 59
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Annual Statement of Adherence (SOA) and Conflict of Interest (COI)
Declarations
MedcoEnergi requires employees to submit Statement of Adherence (SoA) and Conflict of Interest (CoI) declarations to
ensure accountability and transparency. These are reviewed annually to strengthen compliance across the organisation.
Key 2024 Enhancements: 2024 Submission1:
• Strengthened compliance tests, which reinforced • SoA2: 2,491 (Medco Oil & Gas employees) and 1,012
commitment to anti-bribery, harassment-free (Medco Power employees). A total of 6,545 employees &
workplaces and intellectual property protection; also contract service workers were recorded.
adhered to AML policies, and Personal Data Protection • CSEC: 329 submissions from Medco Oil & Gas vendors,
(PDP) laws. 71 from Medco Power vendors.
• Extended SoA to vendors’ top management by requiring • CoI: 5,305 (Medco Oil & Gas employees) and 811 (Medco
active vendors to submit Contractor’s Statement of Power employees). A total of 3,391 contract service
Ethical Compliance (CSEC) declarations. workers across domestic assets.
• Expanded CoI declarations to contract service workers
in Corridor, Onshore, and Offshore assets. These initiatives strengthen ethical awareness, mitigate
risks, and reinforce compliance across all levels of the
organisation.
Detection
MedcoEnergi has a fraud detection programme to flag unusual patterns in financial transactions, employee behaviour,
and other assets that might indicate fraud. The procedures include data analyses, transaction monitoring, and oversight
of employees and third parties. We also employ systems to detect and report misconduct against our Code of Conduct,
ensuring timely and appropriate action. In November 2024, we implemented the Audit Management System to
streamline and oversee the entire audit process: from planning and scheduling audits to conducting them, tracking
findings, and generating reports.
MedcoEnergi Internal Ethics Hotline
In 2024, most inquiries on our internal hotline involved guidance on Gifts and Entertainment, Conflict of Interest
declarations, Government Hosting, Know Your Customer (KYC) support, Workplace Conflicts, Personal Data Privacy, and
Anti-Corruption and Bribery
Internal Ethics Hotline
Office Visit: The Energy Bulding - Audit & Integrity
Compliance Division,50th Floor, SCBD Lot 11A,
Jl. Jendral Sudirman Kav 52-53, Jakarta 12190
Hotline Email: EthicsHotline@medcoenergi.com
Ethics Hotline : 021-29954443
MedcoEnergi Internal Ethics Hotline
Total Received Inquiries
We observed a decline in inquiries in 2023 and 300
2024, which indicated success due to increased
communication and training efforts. Classroom
sessions, including Field Compliance, due diligence, 200 244
workshops, and Fraud Risk Assessments, allowed us
to address inquiries directly, reducing the need for
hotline queries.
100
118
69
0
2022 2023 2024
1 The total count of SoA and CoI submissions includes permanent employees, direct contract employees, and third-party contractors.
2 The assured numbers are only applied to the number of SoA submission (GRI 205-2) for permanent employees.
56 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 60
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Fraud Risk Assessment (FRA) Workshops
The Fraud Risk Assessments (FRA) is a critical tool to MedcoEnergi Fraud Risk Assessment
identify fraud risks. It requires specialised expertise to
implement effectively. To enhance our anti-fraud efforts, Workshop Participants
we conduct FRA Workshops to equip staff with the 100
necessary skills to recognise and mitigate fraud within 95
their areas of responsibility. 85
80
In 2024, we held four FRA Workshops for the leadership
teams of Finance Oil & Gas, Human Resources & General
Services (HR&GS), and MLLC at Muscat, Nimr, and JOB 60
Tomori, with 47, 17, 25, and 21 participants respectively. 55
47
Topics included our Anti-Bribery Management Systems 40
(ABMS), fraud risk management, procurement fraud,
human resources fraud, Anti-Corruption Law in Oman 20 25
(based on an external legal counsel letter for MLLC), 20
relevant case studies, and FRA tools to document and 0 0 0
manage fraud risks at MedcoEnergi. 0
2022 2023 2024
Corporate Oil & Gas Power
FRA Workshop with the Medco Oman Team FRA Workshop with the Finance Oil & Gas Team
Operational Technology Audits
Our operations rely heavily on automation, with industrial
control systems for monitoring and control. Given the
increasing cybersecurity risks due to growth and diverse
Operational Technology (OT) implementation, it is crucial
to ensure adequate cybersecurity measures.
In 2024, we conducted OT audits across six production
fields in our Corridor Assets, i.e., Suban, Rawa, Grissik,
Dayung, Sumpal, and Gelam. The audit aimed to identify
and address potential cyberattacks, ensuring business
continuity in line with the National Institute of Standards
& Technology (NIST) US Department of Commerce
cybersecurity frameworks.
Operational Technology Audit for Corridor
Internal Audits
We conduct risk-based internal audits across all operations at least once within two to three years, providing independent,
objective assurance and advice to the MedcoEnergi Board of Directors, corporate divisions, and business units. These
audits help assess the efficiency and effectiveness of our operations.
We conduct annual internal audits of the Anti-Bribery Management System (ABMS) to ensure compliance with ISO
37001:2016 requirements and prepare for regular surveillance audits by an independent certification body.
We also continue to carry out International Ship and Port Facility Security (ISPS)1 audits for our marine assets in Corridor,
South Natuna Sea Block B, and JOB Tomori, ensuring full compliance with the ISPS Code at our terminals and ports.
1 The ISPS is a set of measures to enhance the security of ships and port facilities.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
57
Page 61
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Description Location Internal Audits 2022 2023 2024
Internal Audits: Corporate Within 2 -3 years Mexico Block 10, Mexico Block 12, PT -
Oil & Gas Tanzania Block 1 & 4 Transportasi Gas
Indonesia
Division/ Operation ISPS Code Audit for ISPS Code Audit for
Department Technology Corridor, Natuna Corridor, Natuna
Sampang, Well and JOB Tomori and JOB Tomori
Operation, Security
and Marine Corridor
Oil & Gas (Domestic South Natuna Sea Medco Oman Medco Thailand
and International) Block B, Bangkanai (MLCC), Rimau & (MTBL), PT Medco
Lematang, Block A E & P Grissik
(Corridor), South
Sumatra Block
(SSB) (in progress)
Partnership with JOB Simenggaris DSLNG, JOB Tomori -
JOB
Internal Control COVID-19 handling, - -
Evaluations CHSEMS, marine,
social programmes
Internal Audits: Headquarters Within 2-3 years - - PT Tanjung Jati
Power B Power Services
(TJBPS), PT Bio
Jatropha Indonesia
(BJI), Sarulla
Operations Ltd
(SOL), Medco Ratch
Power Riau (MRPR)
Subsidiaries PT Energi Prima PT Mitra Energi -
Elektrika (EPE), PT Batam (MEB), PT
Multidaya Prima Dalle Energy Batam
Elektrindo (MPE), (DEB), Sarulla
Sarulla Operations Operations LTD
LTD (SOL), PT (SOL), PT Medco
Medco Ratch Power Hidro Indonesia
Services (MRPR), PT (MHI), PT Medco
Medco Power Servis Power Solar
Indonesia (MPSI), Sumbawa (MPSOS),
PT Mitra Energi PT Tanjung Jati
Batam (MEB), PT B Power Services
Dalle Energy Batam (TJBPS)
(DEB)
Internal Audits Oil & Gas Annual basis International: MTBL International: MTBL International: MTBL
on Anti Bribery Domestic: P2P E&P Domestic: Corridor, and MLLC
Management Domestic, South P2P E&P Domestic, Domestic: Corridor,
System (ABMS) Natuna Sea Block B, South Natuna Sea P2P E&P Gas
JOB Tomori Block B, JOB Tomori Domestic, South
Natuna Sea Block B,
JOB Tomori
Medco Power Head Medco Power Head Medco Power Head
Office, MEB/DEB, Office, MEB/DEB, Office, MEB/DEB,
Energi Listrik Batam ELB, TJBPS ELB, TJBPS
(ELB), TJBPS
58 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 62
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Third Party Risk Management Programme
Engaging Third Parties
MedcoEnergi actively engages with business partners to manage third-party risks and compliance. We reviewed our
programme and adopted risk-based approaches to strengthen Corporate Third-Party Compliance from 2023 to 2027.
In 2024, we introduced the Anti-Money Laundering policy to domestic and international Oil & Gas vendors and sent
newsletters to all vendors across domestic assets, Thailand, and Oman to raise their awareness.
2023-2024 MedcoEnergi Third Party Compliance Programme Framework
• Updated 2020 Our Code
• Enterprise Risk Management (ERM) • Susatainability Reports
• Quaterly Performance Reviews • ISO37001 Anti-Bribery Management System (AMBS)
• Programme Evaluation Analyses • Company’s Policies related to anti-corruption & third parties
• Programme SharePoint & Database
6 1
• SKK Migas Pedoman Tata Kerja (PTK)
and other relevant laws & regulations
• Vendor Audit Guidelines (2016) • Governance Roadmap
• Vendor Audit (Contract • Code of Supplier (Established 2022)
Compliance and Anti-Bribery & • Implement Contractor’s Statement if
Corruption*) Evaluate Commit Ethical Compliance on annual basis
• Updated 2023-2024 Online
Vendor Survey (all suppliers &
high-risk suppliers) • Due Diligence Guidelines
5 2
• Vendor Surveillance Check* (Medco E&P Natuna Ltd.
• Professional Network Check (MEPN), Medco E&P Thailand
• Whistleblowing Handling Bauluang Ltd. (MTBL), Medco
• High-risk Third-Party Screening MedcoEnergi Power Indonesia (MPI))
• Due Diligence* for high-risk
• Expansion of Conflict-of-
Third Party Compliance suppliers (Corporate-EP
Interest Statement to Service Detect Source &
Contractor Workers in Oil & Programme Framework Procure
Domestic, MTBL, MPI, JOB
Gas Domestic Tomori Pertamina)
• Corporate Sanction
Compliance Policy (Established
• Ethics Liaison Officer (ELO) 2021): Selected Sanctoin
Programme Screening
• Business Ethics Refresher for • Anti-Money Laundering Policy
(Established in March 2024)
Contractor Employees Communicate
• Business Ethics Awareness for Contract
4 3
Suppliers on Vendor Day (Corporate & Educate
Domestic, MTBL & Medco Oman LLC) • Integrated General Terms & Conditions in
• Compliance e-Newsletter to Suppliers contract agreements (Business, Ethics, Right
(incl. International Compliance to Audit, Anti-Corruption Laws) for Oil & Gas
Programme) Domestic & International
• International Anti-Corruption Day • Support International Compliance Programmes, through:
• Corporate Sanctions Compliance Policies (2021)
• Initiative in Personal Data Privacy Protection
• Initiative in Know-Your-costumers (KYC) of Business Ethics/Anti-
Remarks: Corruption programmes to Business Partners Requirements
Blue Font: indicate the programme is new or updated or currently • Collaborative effort in Maintain Export Control commitment (EP
being updated Domestic)
(*): indicate that the programme is supported by third party consultant • Updated general Terms and Conditions to include
the clause of Human Rights and Sustainability
Our Third-Party Compliance Programmes
Meeting the Know-Your-Customers (KYC) Anti-Bribery and Corruption (ABC), Contract
Requirements from Our Partners Compliance, and Internal Control Vendor Audits
At MedcoEnergi we prepare KYC to assess the bribery and MedcoEnergi conducts ABC, Contract Compliance, and
corruption risks, money laundering risks, and sanction Internal Control Vendor audits. In 2024, we completed
risks. 22 ABC audits, including in MTBL and MLLC. Our
Internal Control audits enhanced compliance, contract
Third-Party Risk Detection Initiatives adherence, and business controls, with plans to expand
Our initiatives maintain business transparency and internationally.
stakeholders trust in our governance with third parties.
No Categories Assets 2022 2023 2024
Strengthening Our Third-Party Compliance
Programme 1 Oil & Gas Domestic 13 13 11
In 2024, we enhanced third-party compliance by International 4 2 5
expanding ethical declarations, requiring contractors’
top management to submit a Contractor’s Statement 2 Power 4 3 2
of Ethical Compliance (CSEC), thereby strengthening 3 JOB Tomori 1 4 4
compliance across both domestic and international
assets. Additionally, we extended Conflict of Interest (CoI) Number of ABC, Contract
Declarations, covering 3,391 contract services workers Compliance, and Internal 22 22 22
Control Vendor Audits
across Onshore, Corridor, and Offshore domestic assets.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
59
Page 63
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Responses
We are committed to upholding our Code of Conduct, with a Zero Tolerance policy for bribery, corruption, fraud, and
other ethical violations. Validated claims lead to immediate corrective actions.
Raising Concerns: Whistleblowing Channels
MedcoEnergi encourages employees to speak up about concerns or suspected violations of Our Code, thus reinforcing
our Zero Tolerance Policy and regulatory compliance.
MedcoEnergi Whistleblowing Channels
MedcoEnergi provides secure channels to report violations To support this, we developed comprehensive umbrella
regarding fraud, corruption, bribery, conflicts of interest, policies, including the Corporate Whistleblowing Policy,
breaches of our Code, and unethical behaviour. These Whistleblowing Management System Manual, and
channels are available through websites, phone, SMS, and Investigative Examination Procedure, aiming to:
WhatsApp in multiple languages. Reports are anonymous,
overseen by the Corporate Ethics and Compliance • Encourage and facilitate reporting of wrongdoing
Committee (CECC), with retaliations addressed through • Support and protect whistleblowers and involved
disciplinary actions, including terminations. parties
• Ensure timely and proper handling of reports
In 2024, we fully adopted ISO 37002:2021 standards to • Enhance organisational culture and governance
strengthen trust, transparency, impartiality, and protection • Reduce the risks of wrongdoing
in our whistleblowing system. These international
standards provide guidance to establish, implement,
and improve a whistleblowing management system.
To ensure independency, we External Ethics Hotline
have employed PT Deloitte Advis (managed by appointed indenpendent party)
Indonesia (Deloitte) to manage our INDONESIA THAILAND OMAN MANDARIN
external whistleblowing channels.
Deloitte screens and categorises Phone Phone Phone Phone
reports, which are then submitted
0800-150-3020 1800-010-316 8007-4565 0800-150-3020
to the President Director and Head
Text Messages (SMS) Text Messages (SMS) Text Messages (SMS) Text Messages (SMS)
of Corporate Audit & Integrity
& WhatsApp Messenger & WhatsApp Messenger
Compliance for investigation and (+66) 65986 1887 (+27) 72 014 4445
follow-up actions. Reports can be (+62) 8138 870 3300 WhatsApp Messenger (+62) 8138 870 3300
WhatsApp Messenger
filed through the channels on the (+62) 8138 870 3300 (+62) 8138 870 3300
MedcoEnergi website here or Deloitte
website here. Direct website: https://idn.deloitte-halo.com/lapor-medcoenergi/ | Email: lapor-medcoenergi@tipoffs.com.sg
Incident Disclosures
In 2024, we reviewed 76 alleged violations, identifying Compared to last year, fraud incidents increased by eight
37 fraud incidents, with 15 substantiated. Substantiated cases, while confirmed fraud incidents increased by three
fraud incidents in 2024 include the inappropriate use cases. Disciplinary actions decreased by five persons.
of company assets, theft, solicitation, illegal gratuities,
counterfeiting, conflict of interest and procurement fraud.
As a result, 28 individuals (employees, contractors, and
Fraud Incidents
suppliers) faced sanctions. Of these, 17 were related to 45
fraud and 11 to business ethics violations. Sanctions ranged 37
from verbal warnings to terminations. 33
30 29
We also continued implementing the Person Checking
System to prevent hiring individuals with poor integrity
records, ensuring it remains a critical component of our
recruitment process. 15
0
2022 2023 2024
60 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 64
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Monitoring and Evaluation
We continuously monitor and evaluate our responses to claims and reports to assess the effectiveness of our actions.
This strengthens transparency, accountability, and corporate governance.
Anti-Bribery Management System (ABMS)
Our ABMS is designed to detect, prevent, and respond ISO 37001:2016 – Anti-Bribery Management System:
to bribery and corruption. Since its inception in 2018, we Successfully covered and completed across eight existing
have continuously enhanced its effectiveness. assets and functions, with MRPR obtaining it in November
2024 and MLLC in December 2024.
The details of our ISO 37001:2016 ABMS journey can be accessed at the MedcoEnergi website.
2019 2020 2021 2022 2023 2024
South Natuna Procure-to-Pay (P2P) MPI subsidiaries Medco Bualuang Corridor Medco Oman and
Sea Block B, 1st in Oil & Gas Domestic (MEB/DEB, ELB, Riau IPP/Medco
certified PSC in and Medco Power Head TJBPS) and JOB Ratch Power Riau
Indonesia Office, 1st awarded to Tomori (MRPR)
power companies in
Indonesia
Anti-Bribery Management System (ABMS) – MLLC and MRPR
This milestone strengthens our governance framework, Besides certification in oil and gas, we also obtained
enhancing our ability to prevent, detect, and respond to a new certificate for our Power asset, MRPR.
bribery, corruption, and fraud risks. Notably, MLLC was the
first oil and gas asset in Oman to achieve ISO 37001:2016
ABMS certification.
Continuous Improvements
We continuously enhance our standards, policies, and initiatives to ensure they align with MedcoEnergi’s expanding
portfolio. This guarantees that ongoing improvements are implemented through organisational feedback mechanisms.
SKK Migas Award Ceremony
At the 2024 SKK Migas Award Ceremony in September,
PT Medco E&P Indonesia received the Assurance and
Consulting Excellence (ACE) Award for the second
consecutive year. This recognition highlights our internal
audit function’s role to provide independent assurance,
advisory services, and innovation-driven solutions
while maintaining the highest professional standards.
The award reaffirms our commitment to governance
excellence and continuous improvements to audit
Assurance and Consulting Excellence (ACE) Award practices, strengthening our best practices in the industry.
Transparency Initiative Indonesia (TII) ESG Rating Recognition
On December 10, 2024, Transparency International
Indonesia (TII) and Tempo Data Science recognised PT
Medco Energi Internasional Tbk in the Indeks Integritas
Bisnis Lestari 2024, which evaluated Indonesia’s top 100
companies based on ESG principles.
MedcoEnergi received the prestigious Ruby Award,
achieving an average score of 84.21, with top ratings in
Human Rights, Environmental Sustainability and Business
Integrity/Anti-Corruption.
This recognition highlights our commitment to ethical, MedcoEnergi received the prestigious Ruby Award
in the Indeks Integritas Bisnis Lestari 2024
sustainable, and responsible business practices.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
61
Page 65
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Respectful Workplace Policy
To foster respectful and inclusive workplaces while We are dedicated to maintaining harassment-free
ensuring compliance with the Ministry of Manpower workplaces. To enhance awareness and reporting
Decree No. 88/2023, we are developing a dedicated mechanisms, we have launched a Respectful Workplace
Respectful Workplace Policy, set to take effect by March Quiz, conducted field compliance sessions, and
2025. This initiative reinforces our commitment already provided assistance on maintaining workplaces that are
outlined in Our Code. harassment-free. Beyond legal compliance, we strive
to build a culture where everyone feels valued and
empowered to thrive.
Personal Data Protection (PDP)
To prepare for the Indonesia Personal Data Protection To strengthen its implementation, we plan to benchmark
(PDP) Law No. 27/2022, enacted in October 2024, we have it at our Thailand business unit in 2025. We intend to
started developing our Personal Data Protection Policy in leverage their experience since Thailand adopted similar
Q4 2024. regulations in 2022.
Transparency in Payment to Government
We believe that transparency in payment to government Medco Oil & Gas also contributes to Indonesia’s effort
is essential to not only maintain trust and accountability in setting best practice standards for good governance.
but also promote fair competition and mitigate ethical Indonesia is part of the Extractive Industries Transparency
risks. Our approach includes comprehensive system Initiative (EITI) since 2019 that sets the global standard
reporting and documentation, strict compliance with for transparency reporting in the extractive industries.
laws, and employee education and awareness. As a company who is committed to good corporate
governance and transparency, we contribute to the EITI
In 2024, Medco Oil & Gas in Indonesia advanced its
report by submitting our annual report to the Government
commitment to transparency by standardizing the
of Indonesia’s Coordinating Ministry for Economic Affairs
Government Hosting (GH) guidelines, transitioning from
(CMEA), who consolidates the disclosures with other
cash-based to transfer-based payments for government
numerous extractive companies operating in Indonesia.
officials. This project aimed to enhance transparency
Dependent on the timing of fiscal year report submission
and reduce bribery risks. Key milestones included the
by CMEA to EITI and the country report validation, the
approval of system modifications, the development
consolidated report is then published at the EITI website.
and integration of the payment systems, and extensive
Our company data in Indonesia country report can be
familiarisation sessions of new guidelines for employees.
found in the following link: https://eiti.org/eiti-country-
reports?field_countries=indonesia.
Anti-Corruption Collective Actions
MedcoEnergi’s anti-corruption efforts involve partnerships with stakeholders to promote industry-wide integrity,
recognising that collective action is crucial to fostering an anti-corruption culture. Our initiatives include contributions to
local anti-corruption initiatives and joint efforts with international organisations.
Contributions to Local Anti-Corruption Initiatives
MedcoEnergi actively engages in anti-corruption initiatives to promote integrity and ethical business practices within
communities.
Community-Based Anti-Corruption School
In collaboration with Anti-Corruption Movement (Gerakan
Anti Korupsi/GeRAK) Aceh and Aceh Anti-Corruption
School (Sekolah Anti Korupsi Aceh/SAKA), we delivered a
session on Environmental, Social, and Governance (ESG)
principles for university students and graduates in January
2024. The session underscored the role of anti-corruption
measures in sustainable businesses, particularly in the oil
and gas sector.
Collaboration with Anti-Corruption Movement (GeRAK) Aceh
and Aceh Anti-Corruption School (SAKA)
62 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 66
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Local Business Integrity Workshop
Partnering with Transparency International Indonesia (TII), we hosted the “Joint Integrity Action: Payo Kitek Same-Same
Belajar” workshop in March 2024, empowering local businesses in our operational areas. The event reinforced ethical
business practices and highlighted integrity as a foundation for sustainable development.
Joint Integrity Action: Payo Kitek Same-Same Belajar (Let’s Learn Together)
Youth Integrity Workshop
We held a workshop titled “Building Character for Outstanding Students with Integrity: Steps Towards a Bright Future”,
which encouraged high school students to champion ethical leadership and become agents of change in the fight
against corruption. This workshop took place at Senior High School 3 Sampang and Senior High School 1 Sumenep in
Madura, East Java in April 2024.
Youth Integrity in East Java
Anti-Corruption collaborations with International Organisations
In September 2024, the
Corporate A&IC leaders
participated in the Business
Ethics and Governance
Working Group (BEGWG) and
the Business and Human
Rights Working Group
(BWGHR), organised by the
Indonesia Global Compact
Network (IGCN), the local
chapter of the United Nations
Global Compact (UNGC).
This strengthened our anti-
corruption efforts and
amplified their global impact,
reinforcing our commitment
to ethical business practices
and human rights in line with Joint Anti-Corruption and International Organisations
international standards.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
63
Page 67
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Alignment of Sustainability Initiatives
with the UN SDGs
The following table maps MedcoEnergi’s sustainability initiatives to pursue excellence in our governance compared with
the UN SDG targets. These initiatives only highlight MedcoEnergi’s efforts – they do not reflect the targets or achievements
of the host countries themselves.
UN SDGs Relevant UN SDGs Targets1 Key Initiatives
• Policies and initiatives on ethics and compliance, fraud risks, human rights,
anti-bribery and corruption;
4.7
• Ethics Ambassador Programme;
• Anti-Corruption Collective Actions
12.6 • Publication of sustainability reporting
• Policies and initiatives on ethics and compliance, fraud risks, human rights,
anti-bribery, anti money laundering, and corruption;
• Annual SoA and CoI declarations;
16.3, 16.5, 16.6, 16.7
• Regular risk-based internal audits of all our operations
• Third party risk management programme;
• Whistleblowing Channel
• External collaborations in promoting business transparency, integrity and
17.17
anti-corruption measures.
Action Plans
The following action plans will enable us to meet our objectives and continue pursuing excellence in our governance.
We regularly measure, monitor and report on our progress and performance and match them against these actions.
The progress report of these action plans refers to the 2023 - 2027 Sustainability Road Map.
Category Short Term Actions Medium-Long Term Actions Status
Anti-Corruption Require all employees to sign an annual anti-corruption Employees have signed annual anti-corruption
declarations after online evaluations have been completed. declarations (May - June).
Conduct communication and education training on anti- The ELO Opening Workshop for domestic and
corruption. international assets included field compliance
sessions in Corridor, Soka, and Palembang.
Other activities included the ELO Mid-Year
Workshop, ABMS Awareness at JOB Tomori,
field compliance at Rimau – SSR, International
Anti-Corruption Day at JOB Tomori, an AML
Workshop and Due Diligence Field Relations in
Corridor.
Total participation: 809 people.
1 The targets can be found in UN SGDs website (https://sdgs.un.org/goals)
64 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 68
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Category Short Term Actions Medium-Long Term Actions Status
Anti-Corruption Conduct the following training: Completed FRA Workshops for Finance E&P in
• Hosting government officials, May and June 2024, with two refresher sessions
• Advanced Fraud Risk for HR & GS Leadership in July 2024, Leadership
Assessments (FRAs) for new MLLC in August 2024, and FRA and BRA
assets (post-merger and workshops in JOB Tomori.
acquisition) to support growth
strategies, Total participants: 110 people.
• A refresher session for
organisations in high-risk areas,
and
• Anti-corruption programmes in
oil & gas forums.
• Align the Integrity Continue ELO programmes Continued to implement the ELO program in
Champion ex Corridor in domestic and international Medco Oil & Gas.
Programme with the business units.
Ethics Liaison Officer Total ELO: 84 personnel.
(ELO) programme,
• Continue the
programme for
international business W
units. a
d
Continue the Compliance Champion Programme for Medco Continued implementing the Compliance I
Power. Champion in Medco Power.
H
Total Compliance Champions: 24 personnel. a
t
e
Obtain and implement the ISO 37001:2016 Anti-Bribery The MRPR was certified on 26 February 2025.
Management System (ABMS) certification in Medco Oil & Gas
and Power high risk assets.
Obtain and implement the ISO 37001:2016 Anti-Bribery The recertification was obtained on 6
Management System (ABMS) certification in South Natuna Sea September 2022. The first and second
Block B. surveillance ISO 37001: 2016 in 2023 and 2024
were passed.
Obtain and implement ISO 37001:2016 Anti-Bribery The P2P E&P Domestics was recertified in 26
Management System (ABMS) certification for Procure to Pay April 2023 and passed first surveillance ISO
(P2P) process in Oil & Gas domestic assets such as Rimau, South 37001: 2016 in 2024.
Sumatra Block, Lematang, Block A, Tarakan, South Natuna Sea
Block B, Corridor, Sampang, Madura Offshore, West Bangkanai,
and Bangkanai.
Obtain and implement ISO 37001: 2016 ABMS Certification for The Medco Power headquarters was recertified
Medco Power assets. in August 2023 and passed first surveillance
ISO 37001: 2016 in 2024. The Medco Power
subsidiaries: MEB/ ELB, DEB and TJBPS were
recertified in June 2024.
Obtain and implement ISO 37001: 2016 ABMS Certification for JOB Tomori was recertified on 17 August 2024.
JOB Tomori.
Obtain and implement ISO 37001: 2016 ABMS Certification for The certification was obtained in November
Bualuang, Thailand. 2022 and passed first and second surveillance
of ISO 37001: 2016 in 2023 and 2024.
Plan to obtain and Obtain and implement ISO The certification was obtained in 7 December
implement ISO 37001: 37001: 2016 ABMS Certification for 2023 and passed the first surveillance ISO
2016 ABMS Certification Corridor. 37001: 2016 in 2024.
for Corridor Asset.
Plan to develop ISO 37001: Obtain and implement ISO 37001: The certification was obtained on 9 December
2016 for Oman. 2016 ABMS Certification for Oman 2024 for MLLC.
and MRPR.
Conduct Anti-Bribery and Corruption Vendor audits (minimum Conducted 22 vendor audits in 2024.
of 22 vendor audits per year).
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
65
Page 69
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Category Short Term Actions Medium-Long Term Actions Status
Anti-Corruption • Establish standards for vendors’ • Conduct due diligence on high- Conducted desktop reviews of due
due diligence process. risk criteria based on current diligence of Corridor Contract -
• Complete selected vendor compliance risks. prequalification stage for licenses:
compliance surveys in Oman. • Complete vendor compliance 14 due diligences
surveys in Indonesia and
Thailand. Conducted 3 desktop reviews of
due diligence and sanctioned due
diligence at MPI.
Conducted 1 advanced due
diligence for vessel conversion
contract.
Conducted ethical due diligence
at MTBL: 16 due diligences.
Conducted 4 desktop reviews of
due diligence JOB Tomori
Total: 38 due diligences
Completed 26 vendor compliance
surveys in Oman in Jan 2024.
Completed 137 vendor compliance
surveys at E&P Domestic in Feb
2024.
Business Ethics Carry out Code of Conduct (COC) assurances: Statements of Adherence In 2023, the SOA was expanded to
(SoA) self- tests include statements on personal
data privacy protection, human
rights, political involvement, and
anti-money laundering awareness
in assurance test questionnaires
to align the declarations with the
5-years Sustainability Governance
roadmap.
Our Oil and Gas and Power
employees submitted their SOAs;
passing the SOA Assurance Test
was required (Please refer to the
2024 GRI Performance Data for
GRI-205). The results show that
employees thoroughly understand
our Code and Conflict of Interest
Policy & Procedures.
• Automate Conflict of Interest (CoI) deterrence that is included in the This does not apply since no new
system assets were acquired.
• Train new personnel (if we have any new assets)
Standardise CoC practices related to the SoA declarations, Conflict of In 2024, we received 99.95% (i.e.
Interest (CoI) declarations, Governance & Ethics policy, and both the 6,116) Conflict of Interest (CoI)
government hosting and gift entertainment guidelines. submissions from permanent
employees and third-party
contractors in Medco Oil & Gas
and Medco Power.
In 2024, we expanded the CoI
declaration process to include
targeted service contractor
workers in Corridor, Onshore,
and Offshore, using the Microsoft
platform. We received 3,391
submissions, achieving a 100%
completion rate.
The Standardised Government
Hosting Guidelines was
implemented on 1 February 2025.
Finalise and implement a standardised, rigorous compliance Implemented Our Code standard
programme (covering prevention, detection, responses) across across MedcoEnergi.
MedcoEnergi. • Implemented ABMS in key
overseas assets.
• Standardised third-party risk
managements.
66 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 70
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Category Short Term Actions Medium-Long Term Actions Status
Internal Audits Ensure the 2024 audit plan is effective (>90% audit plan completion), Completed audits for Oil and Gas
and that it covers key business risks and controls within assets, at DSNLG, JOB Pertamina - Medco
partnerships and functional areas. Oil and Gas Tomori Sulawesi,
Block A (continuing from 2023) ,
Corridor, South Natuna Sea Block
B, SSB
International ship and port
security audits: Corridor, Natuna,
and JOB Tomori.
Sanction Compliance Conduct Sanction Workshops in high-risk areas. Conducted due diligence sanction
Programme compliance on December 2024
related to the tender process
for the jack-up rig contracts and
material management areas.
Anti Money Established AML Policy in year • Review AML controls in relevant The AML Policy was launched
Laundering (AML) 2023. functions. on March 2024: available on the
Programme • Develop working procedures to MedcoEnergi website.
detect money laundering risks.
An AML Workshop was conducted
on 10 December 2024. It was
attended by 15 key personnel
from Corporate Treasury, Business
Development, MPI Finance &
Treasury.
Personal Data Increase awareness of PDPAs Regularly conduct PDPA training The Personal Data Protection
Protection (PDPA) related to HR, IT, HSE, SCM. and workshops. Policy will be launched in Q1-2025.
Programme
Whistleblower Implement whistleblowers in WBS had been implemented in
Management System partnerships. DSLNG and JOB Tomori since
(WMS) Programme 2022.
Assess conformity of ISO Fully adopt and conform to ISO In 2024 we adopted ISO
37002:2021. 37002:2021. 37002:2021 Whistleblowing
Management System (ISO
37002:2021). This comprehensive
framework creates a robust
whistleblowing management
system based on trust, impartiality,
and protection.
GRI 205-3 disclosures (without Implement GRI 205-3 disclosures Data related to GRI 205-3 had
assurance). in 2024 (without assurance) been disclosed in Sustainability
and GRI 205-3 disclosure with Report year 2021 and continued in
assurance from 2025 onwards. Sustainability Report 2022 - 2024.
Human Rights Establish human rights policies Conduct human rights training for Conducted human rights training
and framework. all employees and vendors. for senior leadership, MTBL
leadership, and all manager levels,
with 300 participants in total.
Conduct human rights assessments for major assets. In 2023, we conducted internal
human rights assessments in
Block A and JOB Tomori; the
report was issued in 2024.
Establish harassment-free workplace. Established the Respectful
Workplace Policy in Q1-2025.
Public Policies Develop accountability procedures to monitor MedcoEnergi's Completed the accountability
public policy statements versus execution, as well as agenda versus procedures and reported them to
implementation the BOD in 2024.
Socioeconomic Ensure the IPA Ethics & Compliance Committee supports industry Relevant authorities are currently
Compliance efforts to simplify and make transparent all social and environmental being engaged under the National
permits for Medco Oil & Gas assets. Anti- Corruption Strategy Forum.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
67
Page 71
Realising Our Climate Aspirations 70 Approaches, Commitments and Goals 72 Our Roadmap in Climate Business Integration 73 Assessing Our Climate-Related Risks and Opportunities 76 Our Environmental Footprint at a Glance 78 Emission Reductions 85 Transition to Low Carbon Energy 87 Alignment of Sustainability Initiatives with the UN SDGs 87 Action Plans
Page 72
06
Offshore Platform in Bualuang, Thailand
This picture is the 1 winner under the ‘Environment & Climate Change’ category
st
of the MedcoEnergi 2024 Photography Competition
Page 73
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
We recognise the need to strengthen our efforts to achieved a 30% reduction in Scope 1 and 2 GHG emissions
address climate risks and support the energy transition from our 2019 baseline, surpassing our 2025 target of 20%.
in light of the growing climate change challenges. Our Following the significant methane emissions reductions
Climate Change Strategy and Net Zero target, established in 2023, we maintained this momentum by reducing
in 2021, set the foundation for our decarbonisation methane emissions from oil and gas by 46% from 2019
journey. The interim targets introduced in 2022 reflect our levels, exceeding our 2025 target of 25%.
commitment to take meaningful climate actions while
These achievements reflect the steady progress we
continuing to provide reliable, affordable, sustainable
have made in integrating climate considerations into
energy and natural resources.
our operations. While we are proud of these results, we
In 2024, we made progress in reducing greenhouse gas remain mindful of the evolving challenges ahead and
(GHG) emissions through operational improvements and continue to build on this momentum for a low carbon
low carbon electrification in our Oil & Gas operations. We energy transition.
Approaches, Commitments
and Goals
Besides our interim climate targets, MedcoEnergi is We have been reducing our GHG emissions by adopting
committed to achieving net-zero emissions by 2050 new technologies, best practices, alongside efforts in
for Scope 1 and 2, extending to Scope 3 by 2060. Our carbon removal. Our transition strategies towards low-
Climate Change Strategy is embedded in our core vision, carbon and sustainable energy include expanding
mission, and sustainability framework, aligned with our natural gas portfolio as a transitional fuel even
the Paris Agreement and the Nationally Determined as we develop renewable energy sources to support
Contributions (NDCs) of our operating countries. This Indonesia’s and other host countries’ development
approach is informed by comprehensive climate scenario goals. To strengthen climate resilience, we updated
analyses that identify critical climate-related risks and our Sustainability Assessment guidelines in 2024 by
opportunities affecting our mid-term and long-term integrating physical climate change risk assessments into
business operations. More details on our Climate Change project designs and enhancing methane management
Strategy, including focus areas and key initiatives, can be efforts. More details can be found in Chapter 4 and
found in Chapter 4 under the Climate Change Strategy Chapter 7 under the Sustainability Assessment section.
section.
Establishing Our Climate Interim Targets
MedcoEnergi’s climate interim targets form the We chose 2019 as our base year as it represents our
foundation of our climate initiatives, allowing us to typical oil and gas operations before the pandemic and
monitor and report measurable progress. These targets the most relevant reference point for measuring long-
were shaped through a structured process that included term progress. Aside from GHG and methane reductions,
reviewing the NDCs of our host governments, analysing we have targeted 26% of our power business’s installed
internal long-term planning data, and benchmarking capacity to come from renewable energy by 2025,
against industry peers. We also factored in climate-related increasing to 30% by 20301. The target-setting process was
risks and opportunities, past and ongoing emissions a collaborative effort that combined both top-down and
reduction efforts, energy efficiency programs, and evolving bottom-up approaches and involved input from various
regulatory trends in the countries where we operate. functions across the organisation.
Interim Targets Climate Aspirations
GHG Emissions
Scope 1 & 2***
NET ZERO NET ZERO
Reduce Scope Reduce Reduce Scope Reduce
1 & 2 GHG Methane 1 & 2 GHG Methane
Emissions* Emissions* Emissions* Emissions*
GHG Emissions
Scope 3***
20% 25% 30% 37% Scope 1 & 2
GHG emissions
Scope 3
GHG emissions
Carbon Removal
& Offset***
Increase Disclose Increase
Renewable Scope 3 GHG Renewable
emissions
Energy Mix** data
Energy Mix**
26% 30%
2025 2030 2050 2060
* Medco Oil & Gas emissions based on the operational control approach and reduction from the 2019 base year.
** Equity shared installed capacity. The Government of Indonesia’s renewable energy mix target is 23% by 2025 and 25% by 2030.
*** This graph illustrates GHG emissions and offset trajectories to achieve net zero and does not describe MedcoEnergi’s projected GHG emissions and carbon offsets.
1 Indonesia aims to have at least 23% of its installed capacity from new and renewable energy sources by 2025 and at least 31% by 2050, as outlined in the country’s Enhanced
Nationally Determined Contribution (ENDC) issued in September 2022.
70 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 74
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Enhancing Our Employees’ Capability for Climate Action
Throughout 2024, we organised several climate change
capability-building sessions. While these sessions targeted
different segments of our workforce and discussed
different aspects of climate change, they shared the
common goal of preparing our employees, management,
executives and suppliers for climate action. Our capability-
building sessions employed multiple experts from both
within and outside of MedcoEnergi and were integrated
with climate-related initiatives from different divisions.
In 2024, we also launched the Green Ambassadors for
Inclusive Climate Action (GAIA) Champions across our
assets. This initiative aims to advance sustainability and
drive impactful climate actions. There are currently 38 Green Ambassadors for Inclusive Climate Action (GAIA)
Champion Sharing Sessions
GAIA Champions (39% female, 61% male) who have
successfully shared their knowledge through multiple
sessions, engaging over 2,000 employees through various and climate change. Details can be found in Chapter 10
formats—including in person, online, and hybrid sessions. under the Building Organisational Capabilities to Support
Between July and September 2024, we held a climate the Energy Transition Agenda section.
change capability-building programme for senior In addition to internal programmes, other activities
leaders to strengthen understanding of climate-related included leadership training to obtain global certifications
issues and align our strategic priorities. This leaders on sustainability, climate change and biodiversity, focused
programme enhanced strategic decision-making at sessions on CCS/CCUS and low-carbon technologies. A
the senior management level and above. The sessions Climate Change and Energy Transition Working Group
covered climate risks and disclosure frameworks (physical member was also selected to participate in international
and transition risks), GHG management, carbon removal scholarships focused on climate change and energy
and offsets, Nature-based Solutions (NbS), Carbon transition. These included the Australia Awards Indonesia
Capture and Storage/Carbon Capture, Utilisation and Short Course on Renewable Energy for Remote
Storage (CCS/CCUS), carbon pricing, and sustainable Communities and the U.S. Department of State’ Secure
finance. This structured approach helps embed climate and Sustainable Infrastructure Program for Clean Energy.
knowledge across MedcoEnergi, which enhances our These programmes have further strengthened our
climate readiness. We also deployed company-wide three internal capabilities and brought valuable global insights
e-learning modules on the fundamentals of sustainability to support MedcoEnergi’s climate agenda.
Participating in Global and Regional Climate Events and Conferences
Throughout 2024, we participated in various climate-focused events and conferences. At these forums, we showcased
our Sustainability Framework and Climate Change Strategy while emphasizing the energy sector’s vital role in addressing
climate challenges. These engagements provided us with essential feedback and insights on our strategic approaches,
implementation progress, and overall performance. They also represent a key component of the Collaboration and
Engagement pillar within our Climate Change Strategy.
Events we participated in 2024:
• UN Framework Convention on Climate Change • Indonesian Petroleum Association (IPA) Conference
(UNFCCC) 29th Conference of the Parties (COP-29) as and Exhibition 2024
part of the Government of Indonesia’s delegation • Indonesia’s International Geothermal Conference and
• Indonesia’s International Sustainability Forum 2024 Exhibition (IIGCE) 2024
• The US Trade and Development Agency’s Advanced • Indonesia’s International Hydrogen Summit 2024
Technologies for Methane Abatement Reverse Trade • 2024 Renewable Energy Investment Forum - Investing
Mission in Indonesia’s Renewable Energy Export Opportunities
• Singapore’s International Energy Week (SIEW) 2024
Establishing Climate-related Incentives
Our performance-based compensation programs are tied to sustainability and climate initiatives, specifically focused on
reducing greenhouse gas and methane emissions while expanding renewable energy capacity. The “Team Performance
Contracts” are established annually across all organisational levels, from executive leadership to individual team members.
These contracts incorporate dedicated sustainability and climate-related Key Performance Indicators that undergo
quarterly assessments. Year-end evaluations measure achievement against these established targets, with results directly
influencing performance incentives and potential salary adjustments.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
71
Page 75
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Our Roadmap in
Climate Business Integration
We integrate climate change considerations throughout Throughout 2024, we have strengthened the transparency
our corporate business and operations and remain of our climate change efforts by aligning with the new
committed to transparently reporting our progress. In the IFRS S2 Climate-related Disclosure Standards, which
2024 CDP Climate Change assessment, we maintained our builds upon the TCFD framework. We also held an in-house
B rating, consistent with our scores from 2022 and 2023. capability building session on the IFRS S1 & S2 in November
Following our inaugural Task Force on Climate-related for various related divisions. This reflects our commitment
Financial Disclosures (TCFD) report in 2022, we have to continuously improve the quality and consistency of our
continually enhanced our climate disclosure practices in disclosures in line with international best practices.
the Sustainability Report. The complete TCFD report is
available on the MedcoEnergi website.
Below is our updated climate action progress, structured according to the disclosure requirements of IFRS S2:
IFRS S2 Core
Recommended Disclosure Summary of Progress by 2024 Link
Element
Governance a. The governing body or individuals • Initiated the Climate Change Risk Assessment 2024 Sustainability
responsible for overseeing climate- Guidelines outlining the governance structure for Report:
related risks and opportunities. physical and transition risk assessments, including • Chapter 4 page 40-
b. Management's role in the governance, clear roles and responsibilities for BoD, executives, 41, 43, 44
controls, and procedures used to key teams, and supporting functions. • Chapter 6 page 71
monitor and manage climate-related • Conducted climate change capability-building, • TCFD Report 2022,
risks and opportunities. including sessions for executives and senior leaders. page 4 – 5
• Embedded climate change mitigations and
adaptations in the Sustainability Assessment
Guidelines.
Strategy The climate-related risks and • Completed quantitative transition risk assessment 2024 Sustainability
opportunities on: using standard science-based scenarios analysis Report:
a. Climate-related risks and opportunities from the IEA (APS and STEPS) for Oil & Gas and • Chapter 4, page 44,
that could reasonably be expected to Power assets to determine the downside risks from • Chapter 6, page
affect the company's prospects. increased pricing of GHG emissions. 73-75
b. Business model and value chain: • Conducted the third year of the climate change
The current and anticipated effects risk assessment (CCRA) using scenario analysis
of those climate-related risks and that covered 25 assets for qualitative physical risk
opportunities on the company's assessments and 2 assets (Corridor Block and Riau
business model and value chain. IPP) for quantitative risk assessments.
c. Strategy and decision-making, • Enhanced the depth of the climate change risk
including climate-related transition assessment by analysing the impact of climate
plans. hazards at the equipment level, enabling us to
d. Financial position, financial identify financial impacts at the asset level.
performance, and cash flows and their • Developed the CCRA Platform to support qualitative
anticipated effects over the short, physical climate risk assessments, providing a
medium and long term. centralised tool to expand the scope of assets in the
e. Climate resilience of the company’s coming years.
strategy and its business model to
climate-related changes
Risk a. The process and policies used to • Initiated CCRA Guidelines to standardise the 2024 Sustainability
Management identify, assess, prioritise and monitor assessment and management of physical and Report:
climate-related risks and opportunities, transition risks, including asset prioritisation, • Chapter 4, page
including if, and how the company periodical risk assessment, risk treatment, adaptation 43-44
uses climate-related scenario. and mitigation measures or strategy, and site-level
b. To which extent the company monitoring and reporting. Key outcomes include
integrates and utilises its processes on integrating identified risks and treatment measures
managing climate-related risks and into the quarterly risk register.
opportunities within its overall risk
management system.
Metrics and a. Climate-Related Metrics: Scope 1,2, • Maintained our commitment to achieve net zero for 2024 Sustainability
Targets and 3 GHG emissions; transition and Scope 1 and Scope 2 GHG emissions by 2050 and Report:
physical risks; opportunities. Scope 3 GHG emissions by 2060. • Chapter 6, page 70,
b. Climate-Related Targets: Quantitative • Continued progress toward interim targets for Scope 76-80, 85-86
and qualitative targets to monitor 1 and 2 GHG emissions and methane emissions
progress. reductions, with reduced emissions exceeding the
c. Climate-Related Targets: Approach 2025 target ahead of schedule.
to setting and reviewing each target, • Monitored the establishment and operation of
and monitoring progress against each renewable power plants to support progress toward
target the 2025 and 2030 interim targets.
• Improved data quality and disclosure consistency to
align with the IFRS S2 requirements, ensuring greater
transparency in tracking and reporting progress.
• Strengthened GHG monitoring and internal carbon
pricing by integrating them into one of the factors
for investment decision-making, business models
and project planning, and operational planning to
determine business impacts or downside risks.
72 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 76
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Assessing Our Climate-related
Risks and Opportunities
In 2024, we continued to assess our climate change assessing changes across different periods. Our timeframes
risks. Building on the Year-2 transition risk assessments, are based on factors such as emerging regulatory policies,
we finished assessing the quantitative transition risks market trends, strategic shifts related to the low-carbon
for domestic Oil & Gas and Power assets. In Year-3, we transition, and other relevant factors. Further details on
assessed the qualitative physical risks of an additional our timeframes are available in our TCFD Report. These
25 assets and enhanced the details of the quantitative scenario analyses included two contrasting scenarios:
business impact assessments for Corridor Block and Riau a low-carbon future aligned with the Paris Agreement’s
IPP. mitigation goals and a high-carbon future reflecting
current trends and continued fossil fuel dependence.
Our scenario analyses evaluated physical and transition
impacts over short, medium, and long-term timeframes,
Physical Risk Assessments
Qualitative Physical Risk Assessments
Building on the Year-2 approach, we began assessing the Year-3 physical risks at the screening-level using the Climate
Impact Platform (CIP) tool2. We analysed climate data and projections from its built-in Global Climate Models that
covered key aspects such as assets, scenarios, timeframes, and climate risk drivers, as summarised in the figure below.
4 25 2
• Oil & Gas: Onshore & Offshore Shared Socioeconomic Pathways (SSP)
• Indonesia
• Office, Warehouse, Jetty, Airport refer to Intergovernmental Panel on
• Thailand Climate Change:
• Power: Natural Gas, Thermal &
• Oman • 1-2.6 Low Emission (1.7°C in 2041-2060)
Fossil Fuels, Hydropower,
Countries • Singapore Assets Geothermal, Solar Photovoltaic Scenarios • 5-8.5 High Emission (2.4°C in 2041-2060)
2 8
Extreme Heat, River Flooding, Extreme
Rainfall Flooding, Coastal Floods,
• Mid-term (2030)
Extreme Winds & Storms, Rainfall-
• Long-term (2050)
Induced Landslides, Wildfires, Water
Timeframes Climate Risk Drivers Scarcity
Key Findings
• The following heatmap shows the average risk level for each climate hazard across the 25 assessed assets, covering
different time horizons and climate scenarios.
2030 2050
Climate Hazards Baseline Low Emission High Emission Low Emission High Emission
Scenario Scenario Scenario Scenario
Extreme Heat
River Flooding
Extreme Rainfall Flooding
Coastal Floods
Extreme Winds & Storms
Rainfall-Induced Landslides
Wildfires
Water Scarcity
Risk Level Index: Minimal Low Moderate High Very High
• The following heatmap shows the results of the physical climate risk assessments across different asset types covering
the 25 assessed assets, various time horizons and climate scenarios, aggregated for all climate hazards.
1 The CIP Tool is an industry-leading global climate database to assess physical screening-level risks. It relies on a database of detailed knowledge on the vulnerabilities of
different asset types and a range of climate projections to rapidly assess exposures of assets to physical climate risks that arise from different climate hazards.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
73
Page 77
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
2030 2050
Asset Type Baseline Low Emission High Emission Low Emission High Emission
Scenario Scenario Scenario Scenario
Oil & Gas: Offshore
Power: Geothermal
Power: Solar PV
Power: Thermal & Fossil
Fuels
Oil & Gas: Onshore
Real Estate: Office
Transport: Air
Jetty
Risk Level Index: Minimal Low Moderate High Very High
• Extreme heat has the highest projected risk score across • Across all scenarios and timeframes, solar PVs appear
both future timeframes and climate scenarios, with to be the most vulnerable asset to physical climate
the most significant increase from the baseline. Water hazards.
stress and drought ranks second, posing “moderate”
climate risks to MedcoEnergi.
Following the screening-level assessments, two material climate hazards were identified for Corridor Block and Riau IPP
based on asset-specific risk levels and confirmation from the operations team regarding their significance to operations.
Quantitative Physical Risks Assessments
Corridor Asset
We identified two material climate hazards:
Climate Hazards Risk Exposure Risk Item Financial Materiality
Extreme Heat High level of risk in screening Revenue loss due to Based on the site-specific assessments,
assessment, revalidated during increments in fuel additional fuel was consumed during high
site-specific assessments. consumption. temperatures, particularly on gas turbine
compressors.
Floods Low score in the screening Revenue losses due to Potential future losses are possible for Letang
assessment, but risks are business interruptions gas wells and Gelam (intended for future
observed in Letang and Gelam. (e.g. well shut-ins). carbon capture and storage).
Based on our assessment, Corridor asset is anticipated To manage and adapt the risks from extreme heat, we
to be exposed to two material climate hazards, which are operating the equipment efficiently and reliably. We
are extreme heat and flood. The potential financial are continuing a preventive and predictive maintenance
impacts due to extreme heat on Corridor asset across all programme to enhance reliability and exploring
timeframes and scenarios range between approximately opportunities to reduce fuel consumption by improving
USD 95,000 to USD 132,000 in 2030 and between USD targeted efficiencies.
68,000 to USD 190,000 in 2040. The potential financial
For flood risks, we are implementing efficient drainage
impact of flood is estimated to be approximately USD
systems, flood barriers, and land reinforcements to
210,000. These values represent financial losses compared
minimise potential impacts. We are also considering
to baseline conditions.
adjusting the facilities’ design elevations and protecting
water-sensitive equipment to enhance resilience against
flooding.
Riau IPP
Gas and steam turbines, critical equipment in a combined-cycle power plant, are sensitive to high ambient temperatures,
referred to as extreme heat in this report. We focused on assessing this impact and identified one key risk items in Riau
IPP, which were then assessed for quantitative risk, as shown in the following table.
74 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 78
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Climate Hazards Risk Exposure Risk Item Financial Materiality
Extreme Heat High risk levels in the Reduced revenues Based on the site-specific assessments, derating
screening assessment, due to derating. periodically occurs due to high ambient temperatures
revalidated during site- during full load operations (275 MW). This reduces power
specific assessments. generation, which in turn lowers revenues.
Riau IPP is anticipated to be exposed to the material To mitigate these risks, we are improving operational
climate hazard of extreme heat. The highest potential and maintenance targets. We are carrying out regular
financial impacts due to extreme heat risk on Riau IPP maintenance such as removing bore plugs, washing
across all timeframes and scenarios are approximately offline water, and replacing filters. Additionally, we are
USD 5,500 in 2030 and USD 6,600 in 2042. optimising maintenance scheduling and enhancing
operator training to ensure consistent and reliable plant
The financial impact of Riau IPP is considered negligible,
performance. We are also working with the Original
as derating due to the high ambient temperature
Equipment Manufacturers (OEM) to identify and improve
periodically occurred only during full load operations (275
certain targets to enhance efficiency and operational
MW) linked to power demand. It represents just 2% of the
effectiveness.
total operating hours in a year (226 hours of 8,760 hours).
Quantitative Transition Risk Assessments
We have completed quantitative assessments of business impacts from transition risks in 2024 using standard science-
based scenario analyses from IEA (APS and STEPS). These initiatives enable us to better understand the potential financial
and operational impacts (i.e. downside risks) of the energy transition on our business and address our transition-related
risks within short-term, mid-term, and long-term timeframes. The information about our assessments is shown in the
figure below.
1 1 2
Climate Scenarios from International
Energy Agency (IEA):
• Carbon • Stated Policies Scenario (STEPS) as high
• Indonesia Pricing emission scenario
Country Transition Scenarios • Announced Pledges Scenario (APS) as
driver low emission scenario
2
Business
• Oil and Gas
• Power 2
Timeframes
• Short term (2025-2030)
• Mid term (2030-2040)
• Long term (2040-2050)
Units
In Indonesia, the Presidential Regulation 98/2021 on the If this pricing approach shows significant deviations
Implementation of Carbon Pricing lays the groundwork from market conditions or regulatory benchmarks, we
for a domestic carbon market through carbon trading and will propose a revised approach to align with the new
results-based payments. Law 7/2021 established a carbon regulations or market standards.
tax of USD 2.07/tCO2e, initially applied to coal power
Given the regulatory uncertainty, we have adopted
plants in 2022, with plans to expand to other sectors in
a conservative approach to assess potential financial
2025. However, implementing guidelines for the oil and
impacts by applying our gross operational control
gas sector have yet to be issued.
approaches. If the carbon tax currently applied to the coal
Carbon pricing is expected to increase operational costs power sector (USD 2.07/tCO2e) is extended to the oil & gas
and reduce both cashflow and profitability across our sector, the potential financial impact on net cash flow
assets. In 2023, we established internal carbon pricing could reach up to USD 2 million for potential short-term
to respond to climate transition risks. We also used exposures in 2025. If the government follows the STEPS
internal carbon pricing as a business model to determine policy scenario (USD 33/tCO2e) or APS (USD 61/tCO2e),
business impacts and stress‑test potential investments the highest potential costs could reach USD 9 million for
by assuming a cost for carbon emissions, which helps us potential medium-term exposures in 2033.
better understand the potential effects of carbon pricing
on a project’s profitability. The internal carbon pricing
is monitored over time in line with developments in
Indonesian regulations and changes in benchmark values.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
75
Page 79
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Our Environmental
Footprint at a Glance
Key Oil & Gas Total Scope 1 & 2 GHG Emissions Reduction Performance
between 2023 and 20241
Thailand
26% Bangkanai
77%
Corridor
15%
Lematang
33%
Rimau
5%
Oil & Gas Assets Percentage Reductions Amount Reductions (tCO2e)
Bangkanai 77% 11,497
Lematang 33% 89,094
Thailand 26% 21,922
Corridor 15% 349,306
Rimau 5% 6,684
The detailed information on GHG emissions reduction initiatives in our Oil & Gas assets can be found in the section
‘Strategic Initiatives’ later in this chapter.
1 The total values of Scope 1 and Scope 2 GHG emissions have been assured, and we performed internal calculations on the performance of the Scope 1 and Scope 2 GHG
emission reductions. Different methods are used to calculate Scope 2 GHG emissions in 2023 and 2024. We disclose percentage reduction using Location Based Method for
2023 and Market Based Method for 2024 to incorporate Renewable Energy Certificate (REC) purchase in 2024.
76 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 80
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Highlights of Our Scope 1 & 2 GHG1 and Methane Emission Reductions in 2024
11% 30%
The reductions in 2024 were
driven by:
• Operational improvements
Reduced Oil & Gas Reduced Oil & Gas • GHG emission reduction projects
• Natural production declines
Scope 1 & 2 GHG emissions Scope 1 & 2 GHG emissions
from several assets
in 2024 from 2023 in 2024 from 2019
The reductions in 2024 were
driven by:
10% 46%
• Efforts to implement methane
emission reductions
• Fewer non-routine flarings in
Bangkanai and Block A
Reduced methane (CH4) Reduced methane (CH4) • Natural production declines
emissions in 2024 emissions in 2024 from several assets
from 2023 from 2019 • Lower number of well
completion days for drilling
activities in Thailand
Our Scope 1 & 2 GHG and Methane Emissions Reductions in 2024
Against Our Interim Targets
Achieved
Strategies for further reductions, among
others:
• Fuel optimisations
We achieved the 2025 interim targets from base • Electrification
year 2019 for our Oil & Gas Scope 1 and 2 GHG and • Flare reductions
• Renewable energy
methane emissions reductions.
On Track
Strategies for further reductions, among
others:
• Flare reductions
We are on track to achieve our 2030 interim targets to • Storage tank blanketings using
further reduce both Scope 1 and 2 GHG and methane nitrogen
• Facility footprint optimisations
emissions. We are on our trajectory to achieve net zero.
Scope 1 and Scope 22 GHG Emissions Oil & Gas Scope 1 GHG Emissions from
from Oil & Gas (tCO2e) Methane (CH4)(tCO2e)
6,000,000 180,000 163,595
5,420,173
4,772,380
160,000
5,000,000 4,623,180
140,000 137,973
4,369,537 4,249,555 132,406 134,408
4,000,000 3,798,579 120,000
98,520
100,000 88,939
3,000,000
80,000
2,000,000 60,000
40,000
1,000,000
20,000
0 0
2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024
1 The total values of Scope 1 and Scope 2 GHG emissions have been assured, and we performed internal calculations on the performance of the Scope 1 and Scope 2 GHG
emission reductions. Different methods are used to calculate Scope 2 GHG emissions in 2019-2023 and 2024. We disclose percentage reduction using Location Based
Method for 2019 and 2023 and Market Based Method for 2024 to incorporate Renewable Energy Certificate (REC) purchase in 2024.
2 We disclose absolute Scope 2 GHG emissions using Location Based Method for Oil & Gas assets (2019-2023) and Market Based Method for Oil & Gas assets (2024) to
incorporate REC purchase in 2024.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
77
Page 81
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Emissions Reduction
The Emissions Reduction pillar of our Climate Change Strategy includes programmes and initiatives to lower emissions
from our operations and supply chains while improving energy and resource efficiency. We also consider opportunities to
use nature-based solutions for carbon sequestrations as solutions to reduce our carbon footprint.
GHG Emissions Performance
We have maintained consistent tracking, management, and reporting of Scope 1 and Scope 2 GHG emissions. We
disclosed assured Scope 3 emissions for the first time in 2024. Our standardised Air and GHG Emissions Calculation Tools
comply with the latest laws and regulations and are aligned with relevant standards and frameworks1.
Direct GHG Emissions (Scope 1)
We include direct emissions from our Oil & Gas and Power assets in our Scope 1 GHG emissions, where the primary
sources are from natural gas combustion and flaring during operations.
Oil & Gas Power
In 2024, our absolute Scope 1 GHG emissions from Oil 2
In 2024, our absolute Scope 1 GHG emissions4 from our
& Gas assets amounted to 3,738,220 tCO2e, reflecting a power business reached 1,379,610 tCO2e, compared to
11.5% decrease from the previous year. The decline was 1,416,625 tCO2e in 2023. This decrease was largely driven
primarily due to operational improvements, GHG emission by a reduction in electricity production and operational
reduction projects, and natural production declines from hours in 2024 compared to 2023, followed by the decrease
several assets. in fuel consumption from natural gas.
This table below details the sources of our Scope 1 GHG
emissions in tCO2e3: Absolute Scope 1 GHG Emissions
in Oil & Gas and Power
Types of GHG
2022 2023 2024 8,000,000 6,338,173
emission sources 5,710,288 5,639,825
5,540,347 5,463,278
5,117,830
Combustion 3,902,451 3,835,109 3,360,378 6,000,000 5,419,586 4,760,975 4,605,470
4,345,147
4,223,200
Flaring 340,562 317,247 312,829
tCO2e
4,000,000 3,738,220
Venting 31,309 28,093 23,000
Processes (feedstock) 1,439 2,155 864 2,000,000 918,588 857,808 1,365,141 1,416,625
1,379,610
779,373
Fugitives 69,386 40,597 41,148 0
TOTAL 4,345,147 4,223,200 3,738,220
2019 2020 2021 2022 2023 2024
Oil & Gas Power Total Oil & Gas and Power
In 2024, our CH4 emissions decreased by 9.7% compared
to 2023, mainly driven by efforts to reduce CH4 emissions,
less non-routine flaring in Bangkanai and Block A, Scope 1 GHG Emissions Intensity
and lower well completion days for drilling activities in in Oil & Gas and Power
Thailand. The following table presents the detailed CH4
emission values as part of our Scope 1 GHG emissions: 400 1.0
GHG Emission Intensity for Oil & Gas
0.9
GHG Emission Intensity for Power
324
(tCO2e/1,000 TOE HC Product)
311 314
0.8
300 298
0.7
Description 2022 2023 2024 0.56
291
0.54
289
0.53
(tCO2e/MWh)
0.49 0.50 0.50 0.6
Scope 1 GHG emissions 200 0.5
134,408 98,520 88,939 0.4
from CH4 in tCO2e
0.3
Percentage of Scope 1 100
0.2
3.1% 2.3% 2.4%
GHG emissions from CH4 0.1
0 0.0
2019 2020 2021 2022 2023 2024
Oil & Gas Power
1 For further information on the details of GHG emissions calculation methodology, please refer to the 2024 GRI Performance Data in GRI 305 – Emissions.
2 The list of assets that calculate Scope 1 GHG Emissions in 2024 — International: Oman and Thailand; Domestic: Rimau, South Sumatra Block, Lematang, Bangkanai, Tarakan,
Block A, Palembang Office, Banda Aceh Office, South Natuna Sea Block B, Sampang, Madura Offshore, Corridor and Jakarta Office.
3 For further information on the trends and statistics of this Scope 1 GHG emission data, please refer to the 2024 GRI Performance Data in GRI 305 – Emissions for Oil & Gas.
4 The list of assets in 2022 - 2024 — ELB, EPE, MPE, MEB, DEB, MRPR, BJI, PPP and MPI Head Office.
78 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 82
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Indirect GHG Emissions (Scope 2)1
Our Scope 2 GHG emissions represent indirect emissions from purchased electricity and steam.
Oil & Gas
In 2024, we began reporting Scope 2 emissions using Absolute Scope 2 GHG Emissions
market-based methods. Total Scope 2 emissions from our
Oil & Gas assets reached 60,359 tCO2e2,3. This represents a 70,000 3.500
Scoop 2 GHG Emission for Oil & Gas
significant increase from the 2023 figure of 26,354 tCO2e4.
Scoop 2 GHG Emission for Power
60,359
60,000 3.000
This increase is attributed to the inclusion of emissions
50,000 2.500
from purchased steam used in the steam flood pilot in
(tCO2e)
40,000
(tCO2e)
Oman, as well as implementing power conversions to the 1,760
1,566
1,726 2.000
national grid in Onshore assets. 30,000 24,390 26,354 1.500
20,000 17,710 819 1.000
Power 10,000
11,405
500
588
Scope 2 GHG emissions from our power assets reached 0
50 57
-
1,726 tCO2e in 2024, reflecting a 10.3% increase from 1,566 2019 2020 2021 2022 2023 2024
tCO2e in 20235. This increase is primarily due to a rise in
unplanned outages at operational assets. Oil & Gas Power
Indirect GHG Emissions (Scope 3)
Our Scope 3 GHG emissions refer to indirect emissions energy-related activities), Category 10 (Processing of
generated throughout our value chain, beyond our sold products), and Category 11 (Use of sold products)6,7.
Scope 1 and Scope 2 GHG emissions. We conducted pre- Our calculations follow the GHG Protocol and other
assurance process of Scope 3 GHG emissions for 2023. industry standards, including guidelines from the
We have adopted the operational control approach for Ipieca and API as well as emission factors from the UK
Scope 3 GHG emissions and have disclosed our assured Government, IPCC, IEA and emission intensity data from
2024 Scope 3 GHG emissions inventory for the first downstream value chain companies8.
time in this report, focusing on Category 3 (Fuel- and
Absolute Scope 3 GHG Emissions for Oil Absolute Scope 3 GHG Emissions for
& Gas (tCO2e) Power (tCO2e)
1,841,562; 7.4%
50,447; 0.2%
235,683 ; 100%
23,079,591; 92.4%
Category 3: Category 10: Category 11:
Fuel- and energy-related activities Processing of sold product Use of sold product
(not included in Scope 1 or Scope 2)
1 We disclose absolute Scope 2 GHG emissions using Location Based Method for Oil & Gas assets (2019-2023) and Power (2019-2024) and Market Based Method for Oil & Gas
assets (2024) to incorporate REC purchase in 2024.
2 In 2024, the assets consuming energy from purchased electricity include Rimau, South Sumatra Block, Lematang, Tarakan, Block A, Bangkanai, Palembang Office, Banda
Aceh Office, South Natuna Sea Block B, Sampang, Thailand, Oman, Singapore Office, Corridor, and Jakarta Office. Meanwhile, the asset consuming energy from purchased
steam is Oman.
3 For further information on the details of Scope 2 GHG emission data, please refer to the 2024 GRI Performance Data in GRI 305 – Emissions for Oil & Gas.
4 The list of assets in 2023 that consume energy from purchased electricity consist of Palembang Office, Bangkanai, South Sumatra Block, Tarakan, South Natuna Sea Block B,
Sampang, Thailand, Oman, Singapore Office, Corridor and Jakarta Office.
5 The list of assets in 2022 - 2024 — ELB, EPE, MPE, MEB, DEB, MRPR, BJI, PPP and MPI Head Office.
6 For Oil & Gas, the list of assets that calculate GHG Scope 3 Emissions in 2024 — International: Oman, Thailand and Singapore Office; Domestic: Rimau, South Sumatra Block,
Lematang, Bangkanai, Tarakan, Block A, Palembang Office, Banda Aceh Office, South Natuna Sea Block B, Sampang, Madura Offshore, Corridor and Jakarta Office. Oman is
not included in Category 10 & 11 calculation due to the production belonging to Oman’s National Oil Company.
7 For Power, the list of assets in 2024 included ELB, EPE, MPE, MEB, DEB, MRPR, BJI, PPP and MPI Head Office.
8 For Oil & Gas, Scope 3 Category 3 GHG emissions include well-to-tank emissions from purchased fuel, electricity, steam, and the transmission and distribution losses of
purchased electricity. Scope 3 Category 3 emissions from purchased electricity, including transmission and distribution losses, are calculated using the location-based
method. Scope 3 Category 3 emissions from purchased steam are also calculated using the location-based method; however, the calculation excludes transmission and
distribution losses as the steam is generated on-site by a third-party company. For Power, Scope 3 Category 3 includes well-to-tank emissions from purchased fuel, electricity,
and the transmission and distribution losses of purchased electricity.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
79
Page 83
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Energy Performance
We remain focused on improving energy efficiency to minimise our environmental footprint. Regular energy audits are
conducted to assess consumption and identify opportunities for better performance. More information about energy
consumption and intensity calculations can be found in our GRI Performance Data.
Oil & Gas
In 2024, the total energy consumption for our Oil & Gas assets was 35,967,423 GJ, compared to 38,738,652 GJ in the
previous year, reflecting a 7.2% decrease. Energy consumption from renewable sources increased by 25.9% compared to
the previous year.
Oil & Gas Business Energy Consumption by Source1
2022 2023 2024
Description
(GJ) (GJ) (GJ)
Electricity consumption 162,802 177,400 246,9822
Renewable energy sources (e.g., biodiesel (B35), gasohol (E5) and 107,655 264,407 332,8173
solar energy)
Non-renewable energy sources (e.g., gasoline, natural gas, diesel, 36,755,763 38,296,845 34,899,6534
and crude oil)
Steam Consumption - - 487,9725
Total Energy Consumption 37,026,220 38,738,652 35,967,4232,3,4,5
Energy Intensity (GJ/TOE HC Product) 2.47 2.88 2.862,3,4,5,6
Power
The total energy consumption for our power assets was 14,568,183 GJ in 2024, compared to 15,100,104 GJ in the previous
year, reflecting a 3.5% decrease. This reduction is primarily due to lower electricity production and decreased natural gas
consumption.
Power Business Energy Consumption by Source7
2022 2023 2024
Description
(GJ) (GJ) (GJ)
Electricity consumption 6,806 6,070 6,675
Renewable energy sources (e.g., biodiesel (B35) and solar energy) 322 570 4348
Non-renewable energy sources (e.g., gasoline, diesel, and natural 24,309,197 25,226,144 24,567,0049
gas)
Electricity sold 9,925,642 10,132,680 10,005,93010
Total Energy Consumption11 14,390,683 15,100,104 14,568,18312
Energy Intensity (GJ/MWh) 5.21 5.36 5.23
1 The list of assets refers to 2024 GRI Performance Data GRI 302 – Energy for Oil & Gas.
2 The increase in purchased electricity consumption is due to the implementation of power conversion to the national grid in Onshore assets.
3 The increase in energy consumption from renewables is due to higher biodiesel fuel consumption from drilling activities in Madura Offshore, South Natuna Sea Block B and
Corridor; Implementation of Biodiesel (B7) for supply vessels in Thailand; and solar PV installations in Offshore assets.
4 The decrease in energy consumption from non-renewable sources is due to lower compressor fuel gas consumption in Suban (Corridor).
5 The increase in purchased steam consumption is due to the steam flood pilot in Oman.
6 The decrease in energy intensity is due to lower compressor fuel gas consumption in Suban (Corridor).
7 The list of assets refers to 2024 GRI Performance Data GRI 302 – Energy for Power.
8 The significant decrease in renewable energy consumption within the organization in 2024 is mainly due to reductions in biofuel and solar panel usage.
9 The significant decrease in non-renewable energy consumption is mainly due to decreases in the amounts of electricity production and natural gas consumption.
10 The actual production in ELB, MEB, DEB, and MRPR reflects the total amount of electricity produced by the engines and sold to third parties (Perusahaan Listrik Negara/PLN).
Meanwhile, in MPE, EPE, BJI, and PPP, the actual production includes both electricity sold to third parties and internal consumption.
11 Total energy in power is calculated as the sum of electricity consumption, renewable energy sources, and non-renewable energy sources, minus electricity sold.
12 The significant decreases in energy consumption is mainly due to decreases in the amounts of electricity production and natural gas consumption.
80 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 84
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Strategic Initiatives
We have made significant progress in reducing our GHG emissions across our Oil & Gas assets.
We implemented 43 initiatives in 2024, resulting in an estimated peak annual reduction1 of
181,727 tCO2e
Additionally, a one-time reduction of 53,713 tCO2e was achieved through flare avoidance from
well cleanup & testing in various well programmes in Corridor.
Total investments in GHG reduction programmes and initiatives in 2024 amounted to:
USD 3,6 million
Of this, CH4 emissions were reduced by 10,092 tCO2e/year peak1, with a one-time
reduction of 4,422 tCO2e from well clean-up and testing activities.
Methane reduction becomes major concern in gas Our overall progress reflects the impact of improved
operations as its Global Warming Potential (GWP) is operational efficiencies and enhancements across
significantly higher than carbon dioxide2. Recognising our assets. These reductions have been driven by
methane as a key priority within our Climate Change technological upgrades, process optimisation, and the
Strategy and Interim Targets, we have strengthened transition to cleaner energy sources, which have led to
our methane management efforts across operations heightened operational efficiency. We remain focused
by reducing emissions from flaring, fugitive, and on reducing our emissions through a range of strategic
venting activities. In line with this, we have planned initiatives, guided by our commitment to achieving net-
and are executing our compliance with Government of zero emissions for Scope 1 and Scope 2 by 2050.
Indonesia’s regulation and in alignment with the World
Bank initiatives on Zero Routine Flaring by 2030. As a
result, we reduced flaring in Tarakan and Matra, and a
study to eliminate routine flaring is currently underway for
Onshore (Lica, Soka, Jene), Offshore (Forel), and Corridor
(Suban Baru).
We assessed the requirements and potential implications
of committing to the Oil and Gas Methane Partnership
(OGMP) 2.0 framework to further strengthen our
transparency and performance. In 2024, we completed
a pilot project for direct methane measurements using
the Quantitative Optical Gas Imaging (QOGI) Forward-
Looking Infrared (FLIR technology) in Belanak and
Lematang while optimising flare purge gas in Dayung,
Suban, Sumpal, and Grissik.
In parallel, we are advancing opportunities to support
long-term decarbonisation through Carbon Capture and
Storage (CCS), which is a key pillar of our Climate Change
Strategy. CO2 storage volumes have been assessed across
all domestic exploration and production assets and
ongoing engineering work is developing high-CO2 gas
fields with integrated CCS solutions. We are also exploring
the development of a potential CCS regional hub project
to serve industrial emitters, including transboundary
sources, supported by Indonesia’s newly issued CCS
regulations, which aim to accelerate the deployment of Solar PV in South Natuna Sea Block B Platform, Indonesia
CCS technologies at scale. This picture is one of the entries in the ‘Environment & Climate Change’ category
of the MedcoEnergi 2024 Photography Competition
1 The peak annual emission reductions refer to the maximum amounts or the highest possible amounts of decreases in emissions achieved in a particular year compared to
a previous reference period.
2 One of the key messages from COP28 is to perform fast action on methane to keep 1.5oC within reach. The fossil energy sector must deliver over half of methane emissions
reductions by 2030 to achieve the Global Methane Pledge (https://www.globalmethanepledge.org/).
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
81
Page 85
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Onshore1
Our Onshore assets have increased their decarbonisation efforts through various energy efficiency and emissions
reduction initiatives. In 2024, these included transitioning to PLN’s electricity from internal power generation, upgrading
infrastructure to enhance gas processing and maximise gas capture and utilisation, and implementing a flare reduction
programme and process optimisation measures. The list of initiatives undertaken and estimated future annual emission
reductions is shown in the graphic below.
Bangkanai Lematang
Estimated annual emission Estimated annual emission Estimated annual emission
reduction of reduction of reduction of
2,708 tCO2e 14,658 tCO2e 3,970 tCO2e
This is achieved by switching from Gas Engine Lematang shifted from Gas Turbine Optimising system pressure and enhancing
Generators to PLN Electricity. Generators (GTG) to PLN electricity. TOX fuel gas saved 0.2 MMSCFD in fuel gas and
generated USD 438,000 in annual savings.
Tarakan Rimau
Estimated annual emission Estimated annual emission Estimated annual emission
reduction of reduction of reduction of
9,138 tCO2e (GHG) and 1,233 tCO2e (GHG) and 5,955 tCO2e
1,210 tCO2e (methane) 1,069 tCO2e (methane) Rimau improved its operational through
optimising fuel gas consumption
The installation of VLPCs (Very Low Pressure Tarakan implemented a Footprint Reduction
Compressors) units at M5 Station enhances gas initiative from Bypass M5 Station to M12
recovery and reduces flaring, supporting Station,
progress toward Zero Routine Flaring deactivating 7 storage tanks and reducing
equipment footprint.
Block A
Estimated annual emission Estimated annual emission Estimated annual emission
reduction of reduction of reduction of
4,397 tCO2e (GHG) and 2,150 tCO2e 33.5 tCO2e
975 tCO2e (methane) The Fuel Reduction Acid Gas Enrichment Unit/
AGEU Optimization program reduced the lean
Adjustments to the Chiller Temperature
Setting reduced the refrigerant compressor
Block A launched a Flare Reduction amine circulation, lowering steam and power load by 5 kW
program, redirecting gas to the AGE consumption.
Absorber instead of flaring.
South Sumatra Block
Estimated annual emission Estimated annual emission Estimated annual emission
reduction of reduction of reduction of
2,841 tCO2e 1,588 tCO2e 49,383 tCO2e (GHG) and
At Keramasan facility, bypass line was
installed to redirect gas releases to sales gas
At Koneng Station, a bypass system was
installed to convert fuel gas into sales gas,
3,527 tCO2e (methane)
after identifying the need for major repairs reducing fuel gas use by 0.08 MMSCFD At Matra Station, increased H2S content
to the Enclosed Ground Flare (EGF) prompted the use of H2S scavenger
injection and gas blending with Jata to
optimise supply to Rimau.
Power Supply Conversions to PLN at Bangkanai and Lematang
In February 2024, Bangkanai transitioned the Kerendan In May 2024, Lematang also shifted its primary power
Gas Processing Facility (KGPF) power supply from gas source from gas turbine generators to PLN electricity,
engine generators to PLN electricity, reducing fuel gas reducing fuel gas consumption by 0.75 MMSCFD and
consumption by 0.15 MMSCFD and cutting GHG emissions cutting emissions by 14,658 tCO2e/year. This change
by 2,708 tCO2e/year. This initiative generated USD 154,494 resulted in approximately USD 153,000 in annual
in annual cost savings. operational expenditure savings.
1 The numbers indicate the peak annual emission reductions.
82 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 86
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Lematang Fuel Gas TOX Optimisation
In May 2024, the operating mode of CPP Singa was The optimisation programme focused on fine-tuning the
adjusted from 900 psig to 700 psig following a flowline fuel gas control valves and air supplies to improve fuel gas
leak. This subsequently led to reduced absorption in the efficiency, conducted in collaboration with Operations
Amine System, which was followed by lower methane Engineering Onshore and Operations. This initiative
losses to the Thermal Oxidizer (TOX) and increased fuel resulted in a GHG reduction of 3,970 tCO2e/year, a fuel gas
gas consumption at 1,168 MMSCFD. The TOX performance reduction of 0,2 MMSCFD (potentially up to 0,4 MMSCFD
improved after the burner chamber was cleaned during a by lowering fuel gas consumption from 1,168 MMSCFD to
May 2024 shutdown. 0,724 MMSCFD), and cost savings of USD 438,000.
Advancing Renewable Energy and Offsetting Initiatives
We strengthened our commitment to climate action In addition to acquiring RECs, we also installed solar PV
through the acquisition of Renewable Energy Certificates panels at our Lematang operations, contributing 4,175
(RECs) in Bangkanai, South Sumatra Block and kWh/month to overall energy consumption.
Lematang from hydroelectric sources using Run of River
methodology.
Corridor1
We are committed to evaluating and implementing projects that reduce GHG emissions. In 2024, we proved this by
continuing to optimise processes, reduce flares, and electrify relevant facilities, which reinforced our ongoing strategic
approaches.
Estimated reduction of Estimated reduction of
75,483 tCO2e/year 53,713 tCO2e
from various process optimisation avoiding flares from well clean-ups and testing
initiatives in 2024 various wells, as one time reductions in 2024
Suban
Estimated annual emission Estimated annual emission Estimated annual emission
reduction of reduction of reduction of
42,427 tCO2e (GHG) and 2,184 tCO2e (GHG) and 7,068 tCO2e (GHG) and
9.57 tCO2e (methane) 1 tCO2e (methane) 922 tCO2e (methane)
We optimised the amine circulation rate to We optimised the air cooler running mode by We enhanced the efficiency of purge gas
reduce acid gas production, improving process reducing the operation of 14 fan motors. usage, reducing excess consumption and
efficiency and lowering emissions. improving operational performance.
Grissik Dayung
Estimated annual emission Estimated annual emission Estimated annual emission
reduction of reduction of reduction of
7,742 tCO2e (GHG) and 9,260 tCO2e (GHG) and 3,007 tCO2e (GHG) and
3.44 tCO2e (methane) 913 tCO2e (methane) 315 tCO2e (methane)
The amine regeneration unit was Purge gas usage was optimised, reducing Purge gas usage was optimised, reducing
optimised to reduce steam consumption consumption by 0.4 MMSCFD consumption by 0.14 MMSCFD
Sumpal Well Clean-up and Testing
Estimated annual emission Estimated annual emission Estimated annual emission
reduction of reduction of reduction of
843 tCO2e (GHG) and 2,952 tCO2e (GHG) and 53,713 tCO2e (GHG) and
85 tCO2e (methane) 297 tCO2e (methane) 4,422 tCO2e (methane)
Purge gas usage at Sumpal was further Purge gas usage at Sumpal was Well clean-up and testing were directed to
optimised, reducing consumption optimised, reducing consumption the plant (sales) instead of flaring, reducing
by 0.04 MMSCFD by 0.14 MMSCFD GHG emissions. A total of 7 flare avoidance
initiatives were completed, including
Suban Intelligent Pigging Optimisation
through Suban Flowline derating.
1 The numbers indicate the peak annual emission reductions.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
83
Page 87
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Suban Amine System Optimisation Circulation Rate
Suban’s Amine System plays a critical role in lowering also reduced the fuel gas used for amine regeneration.
the CO2 content to meet the sales gas specifications. A performance test conducted in January 2024 showed
In 2024, an initiative to optimise amine circulation a reduction of 1.656 MMSCFD in acid gas and 0.505
was implemented, reducing acid gas generation and MMSCFD in fuel gas consumption, with a potential GHG
improving efficiency. This involved lowering the amine emissions reduction of 42,427 tCO2e/year and methane
circulation rate from 1,500 USGPM to 1,200 USGPM, which emissions reduction of 9.57 tCO2e/year.
Corridor Flare Purge Gas Optimisations
An initiative to reduce flare purge gas at Corridor’s Suban, These efforts reduced Corridor’s flare purge gas from ~3.0
Grissik, Sumpal, and Dayung plants was implemented in MMSCFD to ~2.0 MMSCFD, cutting GHG emissions by
2024. This involved cleaning and checking the Ultrasonic 23,130 tCO2e/year and methane emissions by 2,532 tCO2e/
Meter (USM) flowmeter and gradually closing the regulator year. Corridor will continue to monitor and optimise flare
valve while lowering the downstream pressure setting to purge gas flowrates to sustain these improvements.
0.2–0.3 psig to stabilise the flames. A campaign to inspect
and isolate valves was also carried out to prevent leaks.
Offshore1
Advancing Offshore Decarbonisation Through Solar PVs
We have significantly progressed in decarbonising our fuel gas entirely and cutting emissions by 238 tCO2e/
Offshore operations by installing solar PV systems on year. At South Natuna Sea Block B, we completed the
platforms at Oyong, Wortel, and West Belut to reduce West Belut gas project and achieved first gas in under
emissions and enhance operational efficiency. three years. The unmanned platform is fully powered by
solar PV, reinforcing our commitment to efficiency and
At the Oyong Wellhead Platform (WHP), solar PVs
sustainability. Solar PVs supports the potential production
now power the instrument air phase, reducing GHG
of 14,795 MMSCF of gas annually, preventing 238 tCO2e in
emissions by 167 tCO2e annually. At Wortel WHP, solar
emissions each year.
PVs have become the main power source, replacing
Wortel Solar PV in Sampang, East Java, Indonesia West Belut Solar PV in South Natuna Sea Block B, Indonesia
International
Reducing Our GHG Footprint in Thailand Offshore
We successfully transitioned our supply vessel operations
in Thailand from diesel (B0) to biodiesel (B7), which
contains 7% renewable bio-based components. This shift
reduces GHG emissions while maintaining our operational
efficiency and supporting the local biodiesel industry, thus
generating both environmental and economic benefits.
Key steps in this transition included conducting an
economic feasibility study, assessing compatibility and
performance across all supply vessels, coordinating with
suppliers to secure high-quality B7 fuel, and training crews
and operations teams to manage the new fuel safely and
effectively. As a result, we reduced our GHG emissions
by approximately 365.80 tCO2e/year, reinforcing our
Vessel Operations using Biodiesel in Bualuang, Thailand
commitment to sustainability and operational excellence.
Furthering our Decarbonisation Aspirations in Oman
Building on the success of electrifying the Salwa Field
in 2023, we continue to honour our emissions reduction
commitments by expanding electrification in Oman. In
2024, diesel generators were replaced with grid electricity
to power artificial lifts at the Hajal Northeast and Hajal
Fields, cutting annual emissions by 758 tCO2e.
Artificial Lift Powered by Electricity Grid in Oman
1 The numbers indicate the peak annual reductions.
84 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 88
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Transition to Low Carbon Energy
Our Transition to Low Carbon Energy pillar of our Climate In 2024, our power sales reached 4,108 GWh, meeting our
Change Strategy guides us to align our operations and target of 4,100 GWh and made excellent progress on our
value chain with the global energy transitions by shifting key projects. The share of renewable energy in our energy
away from fossil fuels to renewable energy sources. mix reached 23% in 20241. We remain on track to achieve
Natural gas remains a key transitional fuel to reduce our renewable energy mix target of 26% by 2025 and 30%
emissions and meet growing energy demands, for which by 2030.
we continue to increase production while expanding our
renewable energy portfolio.
Our Energy Transition with Gas
We remain focused on increasing our electricity supplies through natural gas. The following highlights our progress to
develop gas-fired power plants in 2024:
70 MW (Existing) + 39 MW 85 MW (Existing) + Potential
(Combined Cycle Expansion) Expansion
Gas-fired Powerplant Gas-fired Powerplant
Tanjung Ucang, Batam Panaran, Batam
• Owned and operated by PT Energi Listrik Batam (ELB) • Owned and operated by Dalle Energy Batam (DEB)
• The existing Simple Cycle Power Plant (SCP) has been in • Current capacity of 85 MW with plan to expand
operation since 2017 its capacity as required by Batam grid system
• Currently installing a 39 MW Combined Cycle Expansion
• The expansion is considered an energy conservation project,
using exhaust energy to produce additional electricity
• Planned to reach COD in Q3 2025
We continued to expand our role in the domestic gas market by signing new agreements and updating existing ones. In
2024, two new Gas Sales Agreements (GSAs) were signed. The first was between Medco E&P Tarakan and PT Perusahaan
Gas Negara Tbk. The second involved gas sales from Madura Offshore Block to PT Sarana Cepu Energi. In addition to the
new GSAs, we also recorded amendments to existing agreements.
Advancing Our Renewable Energy Growth
As part of our shift towards low-carbon energy, we are growing our renewable power portfolio, with focus on solar PVs
and geothermal energy through our Power business. The following table shows our renewable revenues and their share
of total revenues in Medco Power.
Description 2022 2023 2024
Total MPI revenues2 from renewables in USD 120,490,736 286,761,356 210,578,328
Description 2022 2023 2024
Renewables 4% 60% 46%
Non Renewables 96% 40% 54%
Solar Photovoltaic (PV)
We have continued to expand our solar PV portfolio, with the following highlights for our projects as of 2024.
Project Progress in 2024
East Bali Solar PV • Developed by Medco Power and Solar Philippines
Project • Estimated to reduce emissions by approximately 45,000 tCO2e/ year
(25 MWp) • Accomplished the technical completion in December 2024, with expected COD in Q2 2025
Bulan Solar PV Project • Developed by Medco Power, Pacific Power Pte Ltd, and Gallant Venture Ltd
(over 2,000 MWp) • The consortium, Pacific Medco Solar Energi, has been granted a conditional approval import
license for 600 MW
• Obtained conditional license of Pulau Bulan Solar PV project in September 2024
• Estimated to reduce emissions by approximately 830,000 tCO2e/ year
• Expected COD in 2028
1 Power renewable equity share installed capacity. Government of Indonesia targets 2025: 23% and 2030: 25%
2 Including revenues from construction progress and excluding intercompany eliminations.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
85
Page 89
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Geothermal Projects
MedcoEnergi through its subsidiary, Medco Power, is actively expanding its geothermal capacity in Indonesia based on its
commitment to deliver clean and reliable energy. Below are the highlights of our key geothermal projects:
110 MW 60 MW 40 MW
Ijen Geothermal (Phase 1) Bonjol Geothermal Samosir Geothermal
East Java West Sumatra North Sumatra
• Owned & operated by Medco Cahaya • Drilling preparation was completed in • Appointed as the Preliminary Survey &
Geothermal Q4 2024, with drilling set to begin in Exploration (PSPE) license holder
• O&M services by Medco Power Geothermal Q3 2025
Services
• Potentially reduces 235,000 tCO2e/year
• Technical commissioning of Phase-1 (35
MW) achieved in December 2024, and
target COD in Q1 2025
• New O&M contract for Phase-1 until 2030
Wind Energy Project
To support future wind development, Medco Power is studying potential wind opportunities in West Sumbawa for
captive market and PLN.
EV Ecosystem
We are expanding our electric vehicle (EV) ecosystem, which includes EVs and charging infrastructure in Jakarta,
Pekanbaru, and Batam. In 2024, we developed a fast-charging Electric Vehicle Charging Unit (EVCU) at The Energy
Building.
Renewable Energy Certificates
RECs were produced by Medco Power Indonesia through its renewable energy assets, particularly hydroelectric facilities.
In 2024, Medco Power sold RECs to internal and external customers; the RECs have been certified under the international
I-REC Standard. Medco Power registered with the Indonesian carbon exchange system, IDXCarbon, as a seller of carbon
credits. This demonstrates strong demand and the growing role of RECs in decarbonisation strategies.
Enhancing Transparency and Assurance in Sustainability Reporting
At MedcoEnergi, we remain committed to transparency in our ESG performance reporting, with a strong focus
on climate change initiatives. We uphold the highest standards of integrity by engaging KAP PSS - EY as an
independent party to conduct a limited assurance for selected GRI indicators in our Sustainability Report. In
2024, the limited assurance covered 101 GRI indicators, a rise from 96 indicators in 2023 and a significant increase
from the 31 indicators assured in 2017. The additions reflect indicators on Scope 3 GHG emissions as part of our
continuous efforts to comprehensively report and address stakeholder feedback.
As part of the limited assurance process, site visits are conducted annually to gather assurance evidence and
documentation on selected GRI indicators. Each year, our limited assurance provider visits one Oil & Gas site and
one Power site. In 2024, Block A and Riau IPP were selected. Since 2018, sites visited have included Rimau, South
Sumatra Block, Corridor, South Natuna Sea Block B, MEB-DEB, ELB, and Riau IPP which were selected due to
their relatively high GHG emissions.
The site assessments focus on emissions, energy use, occupational health and safety (OHS), local community,
and indirect economic impacts.
The conclusion of this limited assurance process can be found on page 3 of this Sustainability Report. The
emissions and energy performance figures assured by KAP PSS - EY can be found on the GRI Performance Data
2024 at MedcoEnergi Website.
For more information on OHS, refer to Chapter 8; insights into local community engagements and indirect
economic impacts are available in Chapter 9.
86 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 90
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Alignment of Sustainability
Initiatives with the UN SDGs
The following table maps MedcoEnergi’s sustainability initiatives to realise our climate aspirations compared with the UN
SDG targets. These initiatives only highlight MedcoEnergi’s efforts – they do not reflect the targets or achievements of the
host countries themselves.
UN SDGs Relevant UN SDGs Targets1 Key Initiatives
• Renewable energy development: solar and geothermal energy.
7.2, 7.3, 7.A, 7.B • Climate capability building training sessions, focusing on renewable energy
development, deployment and community engagements.
12.2, 12.6 • Key initiatives within the Climate Change Strategy
• Key initiatives within the Climate Change Strategy
• Renewable energy development: solar and geothermal energy.
• Climate capability building training sessions.
13.1, 13.2, 13.3 • Participation in climate-related events and conferences.
• Climate change risk assessments to identify and manage climate risks,
supporting long-term operational resilience.
Action Plans
The following action plans will enable us to meet our objectives and continue realising our climate aspirations. We
regularly measure, monitor and report on our progress and performance and match them against these actions. The
progress report of these action plans refers to the 2023 - 2027 Sustainability Road Map.
Category Short Term Actions Medium-Long Term Actions Status
Climate Risks and Assess and identify low, Update the physical Completed the quantitative
Resilience medium, and high-priority risk assessments and site-specific assessments for
physical hazards for quantifications as well as the Corridor and Riau IPP. High
MedcoEnergi’s business financial impacts of climate priority hazards identified
operations and assets through related physical risks. include extreme heat, flooding
quantitative physical risk and water scarcity.
assessments.
Undertake asset-level risk Continuously improve Conducted qualitative
assessments for all assets across MedcoEnergi’s physical risk assessments for an additional
MedcoEnergi’s portfolio to assessments across our assets 25 MedcoEnergi assets and
evaluate the physical impacts and business operations. quantitative assessments for
of the identified hazards. Corridor Block and Riau IPP.
In total, 45 assets have been
qualitatively assessed.
Carry out a quantitative Continuously update scenario Completed the quantitative
financial impact analysis of data when quantifying the site-specific assessments for
the hazards on MedcoEnergi’s financial impacts of climate Corridor and Riau IPP using
assets and overall business related physical risks for our two timeframes (Mid-Term
operations. assets. and Long-Term) and two IPCC
scenarios (Low Carbon and
High Carbon). Four assets are
now covered by quantifications.
Develop climate hazard - Completed the development
mitigations and adaptation of mitigation and adaptation
plans linked to the risk plans at asset levels based on
management plans and the findings from the climate
performance of adaptation and risk assessments.
resiliency measures.
1 The targets can be found in UN SGDs website (https://sdgs.un.org/)
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
87
Page 91
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Category Short Term Actions Medium-Long Term Actions Status
Climate Mitigation Plan and execute compliance Scale up MedcoEnergi’s efforts Completed the execution of
with Government of Indonesia’s towards Zero Routine Flaring routine flaring reductions in
regulations on Zero Routine by 2030. Onshore assets . A study to
Flaring by 2030. eliminate routine flaring is in
progress for Oil & Gas assets.
Explore and implement flare Develop plans to use or Ongoing studies and
gas utilisation /optimisation conserve all the field’s implementation efforts focus
opportunities in methane associated gas without routine on flare gas utilisation and
management in existing fields flaring for new fields. optimisation.
and future development.
Evaluate The Oil & Gas Methane Establish OGMP 2.0 • Assessed gaps to identify
Partnership 2.0 (OGMP 2.0) commitments. areas to improve in aligning
commitments and associated with the standards.
requirements. • Completed a pilot project to
directly measure methane
using QOGI FLIR at Belanak
and Lematang.
Strengthen sustained, Continuously evaluate best Evaluated and executed
consistent organic processes available GHG emissions opportunities as part of the
to promote, evaluate, approve, abatement technologies in the asset plans and integrated
and execute GHG reduction market to identify potential them into operational
opportunities. mitigation measures at the processes, with oversight from
operational level. the Climate Change Working
Group. Results were reviewed
internally by the respective
assets and reported to
Corporate HSE monthly.
Seek and act on opportunities Continuously improve energy Implemented 43 initiatives in
to reduce GHG emissions and efficiencies at operations by 2024 with potential reductions
energy intensity. ensuring best technologies and of up to 181,727 tCO2e/year peak
practices are adopted. and a one-time reduction of
53,713 tCO2e.
Establish industry and Conduct studies and Continuously assess and select
regulatory collaborations and collaborate with partners to new technologies to reduce
track best technologies to promote digitalisation and emissions.
promote high performance in renewable energy technologies.
operations.
Promote partnerships and • Establish partnerships with Hosted Vendor Day for over 500
knowledge sharing with our experienced organisations vendors across our Oil & Gas
value chain stakeholders to (e.g. universities, research assets in Indonesia, Thailand,
accelerate MedcoEnergi’s Net institutes) to promote and Oman. Partnered with
Zero commitments and low- technological innovations. the Indonesian Solar Panel
carbon energy transition. • Create partnership Industry and Renewable
programmes to promote Alliance (INSPIRA) and signed
data transparency and master agreements with several
implement the best solar PV manufacturers listed
practices along the value in Bloomberg’s New Energy
chain. Finance (BNEF).
Define Scope 3 GHG emmisions Disclose Scope 3 GHG Completed pre-assurance for
for MedcoEnergi. emissions commitments. GHG Scope 3 reporting year
2023. Disclosed and assured
GHG Scope-3 Category 3, 10 &
11 for reporting year 2024 in SR
2024.
Evaluate Scope 3 GHG Explore opportunities to Held discussions with one
emmisions related to key develop a digital platform and potential supplier, but no
suppliers and consider calculation tools for climate data collection commitments
integrating GHG performance data management to be established yet.
into contract screening criteria. shared with MedcoEnergi’s
partners.
88 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 92
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Category Short Term Actions Medium-Long Term Actions Status
Climate Adaptations Establish a process to conduct Continuously improve Completed the development
climate vulnerability studies for MedcoEnergi’s physical risks of Climate Change Risk
material climate-related risks. and biodiversity assessment Assessment Guidelines.
methods.
Develop and establish Consider using scenario Conducted a biodiversity
assessment approaches to analyses when assessing impact assessment during
evaluate risks and impacts on physical risks and biodiversity. the preliminary study for
surrounding biodiversity. environmental permits.
Findings are periodically
reported to the government
through the Environmental
Management and Monitoring
Report as part of compliance.
Updated the Sustainability
Assessment Guidelines in Q4
2024.
Screen future investments to • Updated the Medco Project
evaluate their financial and Excellence Process (MPEP)
operational viability. Assurance Guidelines and
familiarised our people
with the guidelines through
regular discussions during
Monthly Performance
Reviews (MPRs), Quarterly
Performance Reviews (QPRs),
and Long-Term Plans (LTP).
• Developed the Carbon
Internal Pricing Guidelines
to support future investment
screenings and decision-
making.
Develop and establish Continue to integrate climate Updated the MPEP Assurance
approaches to assess climate risk assessments into future Guidelines and familiarised our
risks based on results of climate engineering designs and people with these guidelines
vulnerability studies and ensure account for material risks for through regular discussions in
coverage of key material risks. future projects. MPR, QPR, and LTP. Updated
the Sustainability Assessment
(SA) Guidelines.
Integrate climate risk Continuously improve Completed the development
assessments into the design MedcoEnergi’s approaches to of Climate Change Risk
processes of future engineering climate designs and climate- Assessment Guidelines.
projects. proofing future assets.
Conduct climate vulnerability Consider integrating scenario Considered climate change-
studies for material risks for analyses and plans into related risk assessment
future engineering projects. MedcoEnergi’s climate risk results in the plans of future
assessments to further climate- engineering projects.
proof assets.
Medco Geothermal Sarulla, North Sumatra, Indonesia
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
89
Page 93
Enhancing Our
Environmental
and Social
Safeguards
92 Approaches, Commitments and Goals
92 Sustainability Assessment
95 Health, Safety, and Environment
Management System (HSEMS)
Certification
96 Performance Rating Programme in
Environmental Management (PROPER)
96 Environmental Management and
Monitoring Programmes
102 Biodiversity Conservation
104 Social Management System (SMS)
106 Alignment of Sustainability Initiatives
with the UN SDGs
107 Action Plans
Page 94
07
Rimau Fracturing Well, South Sumatra, Indonesia
This picture is one of the entries in the ‘Business & Assets’ category
of the MedcoEnergi 2024 Photography Competition
Page 95
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
We aim to achieve zero environmental incidents and become a leader in environmental and social responsibility. We
protect our employees, stakeholders, and local communities and continue to improve our safety and environmental
stewardship using our Operational Excellence (OE) framework as the foundation, along with our Health, Safety, and
Environment Management Systems (HSEMS), Social Management System (SMS), and our Medco Project Excellence
Process (MPEP).
Approaches, Commitments,
and Goals
Our OE framework ensures safe, reliable and efficient and stakeholder consultations. The findings inform our
operations through systematic and collaborative environmental, social and health management and
approaches. These guide our efforts to minimise monitoring plans to minimise negative effects whilst
environmental impacts and protect local ecosystems, enhancing positive outcomes for communities and
supported by regular progress tracking. Our OE framework ecosystems.
is further explained in Chapter 8.
We are dedicated to adhering to all applicable laws and
We constantly assess environmental, social, health regulations governing our environmental and social
and biodiversity impacts before starting projects performance. In 2024, none of our operational sites
and operations. These assessments comply with host experienced non-compliance incidents that could have
governments regulations throughout the permit approval resulted in significant monetary fines, non-monetary
processes. Our evaluations encompass desktop research, sanctions or dispute resolutions.
field investigations, focus group discussions (FGDs)
Sustainability Assessment
MedcoEnergi manages internal challenges and In 2024, we updated our Sustainability Assessment
stakeholder expectations through our Sustainability Guidelines to strengthen climate change indicators. These
Assessment, which evaluates environmental and social updates integrate risk assessments of physical climate
indicators across all projects and operational stages. This change into project designs and mandate methane
assessment extends beyond compliance requirements to management for all developing projects. We have also
prevent, mitigate and manage environmental and social incorporated the government’s commitment to eliminate
risks, aligning with the International Finance Corporation’s routine flaring into our GHG reduction efforts.
performance standards.
Sustainability Assessment for Projects
Since 2021, we have conducted Sustainability Assessment Our Sustainability Assessment Guidelines© for Projects
for Oil & Gas’ projects within our MPEP framework. We also received legal protection from Indonesia’s Ministry of
regularly perform surveillance audits at the 10%, 50%, and Law and Human Rights on 4 March 2024 after it was
90% stages of execution to monitor how sustainability implemented in January 2021. This protection enables
indicators are being managed while these projects are MedcoEnergi to share the guidelines externally with
being implemented. appropriate attributions.
East Bali Solar PV, Indonesia
92 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 96
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Medco Project Excellence Process (MPEP) and Sustainability Assessment
Sustainability Assessment
Gate Gate Gate
Appraise Review
Select Review
Define Review
Execute Surveillance
G1 G2 G3
Audit
• All sustainability • SEP updated • SEP updated • SEP updated
indicators are assessed • Document arrangements for • Document arrangements • Monitoring and reporting
together during the risk Security Management Plans for Security Management of SMP, labour and
register development, (SMP), labour & working Plan (SMP), labour & working conditions,
including HSE risk conditions, grievance working conditions, grievance mechanism
identifications. mechanism and community grievance mechanism and and community
• Initial identification involvement. community involvement. involvement.
for Stakeholders • Initial engagement • Emergency Response • ERP and LRP approved,
Engagement Plan (SEP), • Energy/water efficiency & Plan (ERP) and Land including monitoring and
security issues, land Climate Change Mitigation Resettlement Plan (LRP) reporting.
acquisitions, and climate Plan calculated & forecasted. development. • Pollution prevention
change. • Pollution prevention • Energy/water efficiency, approved.
& mitigation plans Climate Change Action • Permit monitoring and
included in the submitted Benchmark and Plan, and reporting.
Environmental, Social, and biodiversity programme • LARAP monitoring and
Health Impact Assessments developed based reporting.
(ESHIA/AMDAL) on ESHIA/AMDAL or
• Environmental management calculation.
permit list. • Pollution prevention
• Land acquisition and permits submitted.
resettlement action plan • LARAP approved and
(LARAP) development. executed.
• Project charter and • POD submitted. • POD approved. • Contracts awarded and
mandate. • ESHIA/AMDAL submitted. • ESHIA/AMDAL executions begun.
• Preliminary Plan of • Risk register updated. approved. • Permits approved.
Development (POD). • Project Execution Plan • Risk register updated. • Risk register updated.
• Risk register defined. • Project Execution Plan
executed.
• Commissioning and
Start Up Plan.
Medco’s Project Excellence Processes (MPEP)
Below is the progress of major projects that underwent the Sustainability Assessment gate reviews and project
surveillances in 2024.
Mapping of Sustainability Assessment
South Natuna Sea Block B
West Belut 50% Surveillance JOB Tomori
Terubuk 2 3 & 10% Surveillance
Senoro Phase 2A 10% Surveillance
Thailand
Bualuang Phase 5 3
Debottlenecking
Medco Project Excellence
Process (MPEP) Oman
1 Gate 1 Review
Ilham Steam 2
2 Gate 2 Review Corridor Flood
3 Gate 3 Review Letang Tengah Rawa P
(LTR) Expansion
P Peer Review
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
93
Page 97
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Sustainability Assessment for
Operations
Sustainability Assessment continues once a project begins operating, focusing on managing environmental and social
indicators based on operational risks. These assessments measure and monitor sustainable development indicators
throughout operations, ensuring that Operational Excellence (OE) is aligned with the HSE Pillars.
These assessments below cover the 22 key indicators that reflect sustainable operations across nine dimensions:
Human Rights,
Environmental
Community Pollution
Health and
Impact
Assessment Prevention
Safety Security
• Community Health & Safety • License to Operate • Air emissions and noise
Risk Identification • Environmental and social management
• Community Emergency risks and impacts • Wastewater or effluent
Response Plan Identification and discharges management
• Stakeholder Engagement assessment • Waste and hazardous
• Indigenous Communities waste management
• Security Management Plan
Climate
Labour and Sustainable
Change
Working Resource
Mitigation and
Condition and Use
Adaptation
• Working conditions and • Climate change action • Water efficiency
Management of Worker plan (calculation, forecast, • Energy efficiency
Relationship mitigation)
• Retrenchment Plan
• Grievance mechanisms
related to labour
Media Protecting the
Local Environment and
Communication
and
Community Biodiversity and
Empowerment Restoring Natural
Engagement Habitat
• Media communication plan • Land Acquisition and • Biodiversity management plan
Involuntary Resettlement
• Grievance mechanisms for
communities
• Livelihood restoration plan
• Community Involvement
The Sustainability Assessment for Operations Guidelines, established in 2022, enables us to achieve our sustainability
maturity targets and strategies to sustain our operations. These guidelines were applied across all Oil & Gas assets and
were aligned with OE expectations.
94 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 98
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Health, Safety, and
Environment Management
System (HSEMS) Certification
Our integrated HSEMS enables us to reduce operational By 2024, 68% of our assets were ISO 14001:2015 certified,
environmental impacts and build stakeholder trust for and 37% were certified in accordance with ISO 45001:2018
long-term value. This system ensures that we comply Occupational Health and Safety Management System.
with environmental laws and are aligned with the best This year, we successfully completed ISO 14001:2015 and
international practices, particularly ISO 14001:2015 ISO 45001:2018 certifications for our Oman asset.
Environmental Management System. As a result, we are
able to effectively identify, assess, control and monitor all
environmental risks and performances across operations.
MedcoEnergi’s Certified Assets
1 Block A - Aceh
2 Riau IPP/MRPR1
3 Rimau
4 South Sumatra Block (SSB)
5 Lematang
6 Corridor
7 Sumatra IPP
8 Cibalapulang Mini Hydro
9 Medco Power Head Office
15
Oman
10 Pusaka Mini Hydro
16
11 Sampang
12 Madura Offshore
13 South Natuna Sea Block B
1
14 Tarakan
13
15 Thailand
14 16 Oman
2
17 Bangkanai
18
19 18 MEB/DEB
Kalimantan 19 ELB
Sumatra 17
6
3
4
5
7
9
8 11
Java 12
10
ISO 14001:2015 Environmental Management System (EMS) Certified International Finance Corporation (IFC) Standard
ISO 45001:2018 Occupational Health and Safety (OHS) Certified Equator Principle (EP)
ISO 14001 EMS Aligned Asian Development Bank (ADB) Safeguards
1 Medcopower Servis Indonesia (MPSI) that provides Operation and Maintenance (O&M) services to Riau IPP/MRPR, is ISO 14001:2015, ISO 45001:2018, and ISO 9001:2015
certified.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
95
Page 99
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Performance Rating
Programme in Environmental
Management (PROPER)
PROPER is an annual assessment of companies operating assets1, selected to undergo PROPER assessments,
in Indonesia; it evaluates compliance with national received the Blue PROPER, demonstrating regulatory
environmental regulations and beyond. Managed by the compliance in environmental management, with Mitra
Ministry of Environment and Forestry (MoEF), it assesses Energi Batam (MEB) and Multidaya Prima Elektrindo
emissions, wastewater pollution, and waste management. (MPE) participating for the first time.
In addition to environmental regulatory adherence, the
Our non-operated assets were also recognised, with JOB
programme evaluates aspects beyond compliance by
Tomori securing Gold PROPER four times in the last five
implementing environmental management systems,
years, while Tanjung Jati B Power Services (TJBPS), where
natural resource efficiencies, biodiversity initiatives, and
Medco Power provides an Operation & Maintenance
Corporate Social Responsibility (CSR) programmes to
(O&M) services contract, earned Gold PROPER for the
promote sustainable business practices.
sixth consecutive year. The Gold PROPER represents
In 2024, The South Natuna Sea Block B and Sampang the highest recognition for outstanding environmental
received the Green PROPER, which acknowledged our performance and social responsibility that exceed
efforts to go beyond compliance with innovations, energy compliance standards. These achievements reflect our
efficiencies, and positive environmental contributions. ongoing commitment to responsible operations and
This was the fourth consecutive year that South Natuna continuous improvements across all our facilities.
Sea Block B received the Green PROPER. Other domestic
Environmental Management
and Monitoring Programmes
We implement environmental management and monitoring programmes in our operating assets to strengthen
sustainability performance, ensure compliance with regulations and standards and enhance our overall impact
management.
Our initiatives to protect the environment that have broader impacts on local communities are detailed in Chapter 9.
Restatements of Water, Waste and Biodiversity Data
• Restatements to include water withdrawals by source, water • Restatements of oil spill disclosures that align with
discharges by destination, and freshwater intensity to improve international standards and regulatory reporting criteria as well
disclosures. as standardise records: all spills are recordable, but only spills ≥1
• Restatements of water, waste, and revegetation (beyond bbl are reportable.
compliance) resulting from enhanced data collection and • Restatements of revegetation beyond compliance to include
recording methods. Offshore’s revegetation initiatives.
Waste Management
We employ integrated waste management strategies that include segregation, disposal, and treatment processes
that employ Best Available Technologies (BAT). Several assets undergo waste management audits conducted by host
governments as part of their ISO 14001:2015 certification requirements (see page 95). This year, we have expanded our
monitoring efforts to include our Jakarta office.
1 Block A, Rimau, SSB, Lematang, Tarakan, Madura Offshore, Corridor PSC Oil, Corridor PSC Gas, DEB, MEB, and MPE
96 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 100
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Waste Management at MedcoEnergi
Waste Management
Segregation
Hazardous Waste Non-Hazardous
Waste
Temporary Storage Facility Organic Inorganic
Composting Disposal Recycle
Licensed Hazardous Waste
Management Facility (e.g., Incinerator, Community
Licensed Third Party) Organisation Centres
Non-Hazardous Waste
At MedcoEnergi, we apply the Reduce, Reuse, Recycle Throughout the year, we have been improving our waste
(3Rs) principles when managing operational waste. Our management programmes across our Oil & Gas assets. We
process involves separating non-hazardous waste into successfully diverted 95 tonnes of waste from disposal in
organic and inorganic categories, with organic materials 2024: an increase from 80 tonnes in the previous year. Of
sent to composting facilities and inorganic materials the total, Corridor contributed 85 tonnes to the diversions
directed to recycling centres. We monitor both our Oil & from disposals by implementing the 3Rs and composting
Gas and Power assets as well as our Jakarta Office’s waste activities.
generation and management.
Our Power assets recorded 78 tonnes of waste in 2024, a
In 2024, our Oil & Gas assets generated 1,259 tonnes of slight increase from 2023 driven by the higher number of
non-hazardous waste. This showed an increase from 2023 personnel on board during project activities.
due to increased project and drilling activities in Oman.
Oil & Gas and Power
Power Non-Hazardous Waste
Non-Hazardous Waste1,2
1,300 140 80 78 78
74 74
1,259
Tonnes
67 67
1,250 120 70
1,242
1,200 100 60
1,182 95
1,174 80 1,164
Tonnes
Tonnes
1,150 80 0
1,100 1,093 60 2022 2023 2024
60
1,050 40
Waste Generated
1,000 20 Waste directed to disposal
0 Waste diverted from disposal3
0
2022 2023 2024
Preventing Food Waste at MedcoEnergi’s Lematang Asset
At our Lematang asset, we launched a mobile application
to enhance the canteen’s ordering process by allowing Welcome to Lematang
employees to place meal orders a day in advance. This Honesty Canteen Singa is committed to reduce waste and food leftover.
initiative has reduced our non-hazardous waste by
Food order should be place through web application according to the available option one day in advance.
Honesty Canteen supports environmental program by reducing plastic wastes and food leftover should be disposed
approximately 6.13 tons from 2023 to 2024, resulting in
according to the types of the trash bins.
a cost savings of 1.22 million IDR in waste disposal fees.
This investment has not only streamlined operations,
but also underscored MedcoEnergi’s commitment to ”Kantin Jujur Singa” Mobile Application in Lematang
sustainability.
1 Non-Hazardous and Hazardous Waste in Oil & Gas (2022-2024): International: Thailand and Oman; Domestic: Block A, South Natuna Sea Block B, Corridor, South Sumatra
Block, Rimau, Lematang, Madura Offshore, Sampang, Bangkanai, Tarakan
Non-Hazardous and Hazardous Waste in Power (2022-2024): Riau IPP/Medco Ratch Power Riau (MRPR), Mitra Energi Batam (MEB), Dalle Energi Batam (DEB), Energi Listrik
Batam (ELB), Multidaya Prima Elektrindo (MPE), Energi Prima Elektrika (EPE), Bio Jatropha Indonesia (BJI), Pembangkitan Pusaka Parahiangan (PPP)
2 The 2022 and 2023 non-hazardous waste data have been restated to improve data collection and recording methods.
3 Waste diverted from disposal” = The total weight of waste prevented (tons), including preparation for reuse, recycling, and other recovery operations.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
97
Page 101
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Launching the “Bring Your Own Tumbler” Campaign in the Corridor Asset
In 2024, we launched an inspiring campaign called “Bring
Your Own Tumbler” (BYOT) to reduce single-use plastic
bottled water. Announced on 21 February and coinciding
with National Waste Awareness Day in Indonesia, this
campaign promoted collective efforts among personnel
and visitors to switch to reusable tumblers. To boost the
campaign, we organised a photo competition that invited
everyone to showcase their commitment to using their
own tumblers. By the end of 2024, the Corridor asset
achieved zero usage of single-use plastic bottled water
through the campaign and by providing water dispensers.
Photo competition winner for the BYOT campaign
Hazardous Waste
We manage our hazardous waste by engaging licensed Our Power assets generated 50 tonnes of hazardous waste
third-party management companies.1,2 In 2024, our Oil & in 2024, a decrease from 2023 due to lower maintenance
Gas assets generated 5,125 tonnes of hazardous waste – activities in Energi Listrik Batam (ELB), Dalle Energi Batam
a decrease from the previous year. This decline is due to (DEB), and Mitra Energi Batam (MEB).
lower drilling trajectories in the South Natuna Sea Block B
and back-to-normal operations in Block A.
Oil & Gas and Power Hazardous Waste Power Hazardous Waste
7,000 120
6,161 101
6,000
6,000 100 94
5,125 5,237
5,000 4,599 80
Tonnes
Tonnes
4,324
4,000 60
45 44 50 50
3,000 40
2,000 20
1,000 0
2022 2023 2024
0
2022 2023 2024
Waste Generated Waste managed by third party
Committed to Managing Hazardous Materials
We have enhanced our management of hazardous filter waste by 2.08 tons yearly and generated IDR 280
materials across our global operations. Locally, our million in cost savings (2020-2024). In our Oman asset, we
Improvement Inventory of Hazardous Material for Material have prioritised substituting hazardous chemicals with
Management (IH3M) programme has strengthened environmentally friendly alternatives, such as replacing
monitoring of expired chemicals at the Matak Warehouse, hydrocarbon degreasers to water-based degreasers. These
reducing volumes from 50 to 20 tons annually and saving efforts reflect our commitment to sustainable practices
IDR 499 million in transportation costs. At Lematang, and responsible management of hazardous materials
we shifted from time-based to performance-based across our operations.
amine filtration maintenance, which decreased used
1 Hazardous waste is waste containing substance, energy and/or components which, due to their properties, concentration and/or amount, may directly or indirectly pollute
and/or damage the environment and/or harm the health of humans or other living creatures’ life in the area or waste designated ‘hazardous’ or some similar term under the
applicable regulatory requirements of the country where MedcoEnergi operates.
2 The waste managed in any given year may include carry-overs from the previous year. In other words, waste generated in one year might be stored temporarily and then
delivered to a third party in the following reporting year. These approaches account for the discrepancies between the amounts of waste generated and the waste directed
for disposal in any given year.
98 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 102
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Oil Spill Incidents
We are continuously improving our efforts to minimise oil and equipment failures. However, prompt actions by
spills across our operations. We also aligned our reporting our emergency response teams enabled us to recover
with international standards and regulatory reporting a significant portion of the spilled oil, ensuring that oil
criteria where only spills equal to or greater than 1 from these incidents was efficiently retrieved. Moreover,
barrel (bbl) are classified as reportable incidents in our no personal injuries or community grievances resulted
sustainability disclosures, while all spills continue to be from these incidents. We have integrated regular training
recorded internally to further improve operations. and drills into our preparedness strategies, ensuring that
our teams are well-equipped to handle spills. Additional
In 2023, there were no oil spills greater than 1 bbl. In 2024,
details on our emergency preparedness initiatives
we recorded a total volume of 14.20 barrels spilled due
can be found in Chapter 10, Section 10.5.5 Emergency
to operational challenges, including unforeseen oversight
Preparedness.
Volume of Oil Spills1 ≥1 bbl Number of Incidents
16.00 8
14.20
Number of events
13.20
12.00 6
4
8.00 4
6.63 3
BBLS
4.00
4.00 2
0
0 0
0.00 2022 2023 2024
2022 2023 2024
Volume of Oil Spill (BBLS) Total Recovery
Our oil-producing assets have oil spill management in place that cover the following programmes:
Oil Spill Preventive Preparedness
Prevention and Corrective and Response
System Maintenance Plans
Our domestic Offshore assets are part of the Oil Spill Combat Team (OSCT) Indonesia, a private oil spill response
organisation with bases nationwide. Membership in OSCT enhances our spill preparedness and response capabilities by
providing access to essential equipment, expertise, and training. Our Bualuang asset in Thailand is also a longstanding
member of Oil Spill Response Limited (OSRL) and the Thailand Oil Industry Environmental Safety Group (IESG). In
collaboration with OSCT Thailand, Bualuang has implemented a preventive maintenance programme to effectively
manage the risk of oil spills.
Water Management
At MedcoEnergi, our water management strategies withdrawn water is used to generate power in our mini-
are designed to optimise water use while minimising hydro power plant, where the water directed to turbines
environmental impacts in accordance with our Health, is used only once before being immediately returned to
Safety, and Environmental (HSE Policy). Water is primarily the environment without substantial changes in quality.
used in production activities, drilling, office consumption,
In 2024, our Oil & Gas assets recorded a water withdrawal
and for domestic needs.
of 49,533 megalitres. This figure reflects an increase in non-
This report details our total water withdrawals from produced water withdrawals due to additional activities
surface water, groundwater, seawater, third-party sources, in Oman, including the Basma Steam Flood pilot project
and produced water in our operations2. In Medco Power, and the waterflood programme planned for 2024.
1 The oil spills include those caused by internal factors within MedcoEnergi. They exclude major spills resulting from third-party actions, e.g., vandalism, collisions by third
parties, etc.
2 The detail of water withdrawal by source and water discharge by destination is reported in the GRI Performance Report. This data has not been independently assured.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
99
Page 103
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Oil & Gas Water Withdrawals1 Power Water Withdrawals2
60,000 300,000
47,703 46,950 49,533
50,000 250,000
Mega Litre
Mega Litre
40,000 200,000
30,000 33,075 32,453 34,390 150,000
20,000 100,000
10,000 50,000
14,628 14,497 15,143
0 0
2022 2023 2024 2022 2023 2024
Excluding
Non-produced water hydropower 1,613 1,373 1,464
Produced water
Total water
Total withdrawal
259,810 195,645 255,105
Our Power assets withdrew a total of 255,105 megalitres Our Oil & Gas operations have seen a steady increase in
in 2024, reflecting an increase from the previous year. freshwater withdrawal intensity over the years due to
This rise in water withdrawal aligns with an increase in growing drilling activities. Meanwhile, Medco Power’s
production for our Power operations, indicating a trend freshwater withdrawal intensity fluctuated due to
towards higher operational output. variations in power generation output.
Freshwater Withdrawal Intensity
Asset Unit
2022 2023 2024
Medco Oil & Gas m /1000 TOE HC
3
50.33 59.99 67.75
Medco Power m /MWH
3
94.06 69.38 91.72
Management of Produced Water
We adhere to a three-fold strategy when managing our In Lematang, we have been operating an on-site Produced
produced water: discharging the treated water into a Water Treatment (PWT) facility since 2011. We ensure the
water body, reinjecting it into injection wells, or having it quality of treated produced water meets the applicable
managed by other entities. standards for safe discharge into a water body. Periodic
manual monitoring and monitoring tools are also used to
Our produced water is treated at our Produced Water
comply with the applicable standards.
Treatment (PWT) facilities to lower the concentration
of hydrocarbons, chemicals and hazardous substances The amounts of produced water reinjected into reservoirs
to levels in accordance with relevant regulations and are listed to the right of this. These amounts are generally
standards. stable over the years.
Corridor, Bualuang, South Natuna Sea Block B East
Hub Operation (EHO), and other Onshore operations Reinjected Produced Water3
implement a reinjection strategy. Meanwhile, for our
operations in Oman Karim Small Fields (KSF), we send our
25,000 24,019
gross liquid to our client, Petroleum Development Oman 23,258 22,808
(PDO). Therefore, we exclude Oman’s KSF produced water 20,000
Mega Litre
in our produced water data as it is managed by the PDO.
For domestic Offshore assets, we discharge produced 15,000
water into the sea after carefully assessing it to ensure it
meets the required parameters. 10,000
5,000
0
2022 2023 2024
1 Water withdrawals in Oil & Gas in 2022-2024: International: Thailand and Oman; Domestic: Block A, South Natuna Sea Block B, Corridor, South Sumatra Block, Rimau,
Lematang, Madura Offshore, Sampang, Bangkanai, Tarakan. We exclude water produced in Oman as it is managed by our client (Petroleum Development Oman/PDO).
2 Water withdrawals in Power in 2022-2024: Riau IPP/Medco Ratch Power Riau (MRPR), Mitra Energi Batam (MEB), Dalle Energi Batam (DEB), Energi Listrik Batam (ELB),
Multidaya Prima Elektindo (MPE), Energi Prima Elektrika (EPE), Bio Jatropha Indonesia (BJI), Pembangkitan Pusaka Parahiangan (PPP)
3 Reinjected produced water include: International: Thailand; Domestic: Block A, Corridor, South Natuna Sea Block B East Hub Operation (EHO), South Sumatra Block, Rimau,
Bangkanai, Tarakan.
100 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 104
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Managing Our Wastewater
At most of our assets, domestic wastewater is treated at our Our Oil & Gas assets discharged 21,963 megalitres of
wastewater treatment plants (WWTPs). We consistently wastewater in 2024, a slight decrease from the previous
monitor effluents to ensure adherence to regulations set year. This reduction aligns with the lower cooling
by the Ministry of Environment and Forestry (MoEF) and water discharges in South Natuna Sea Block B, which
maintain levels below the Threshold Limit Value (TLV) correspond to decreased production levels.
prior to discharge.
Oil & Gas Water Discharges1 Power Water Discharges2
22,800 300,000
22,659 258,506 253,976
22,600 250,000
Mega Litre
Mega Litre
22,400 200,000 194,650
22,200 150,000
21,971 21,963
22,000 100,000
21,800 50,000
21,600 0
2022 2023 2024 2022 2023 2024
Our Power assets discharged a total of 253,976 megalitres in 2024, reflecting an increase from the previous year. This
increase in discharge volume directly corresponds with the higher water withdrawal required to support our increased
power generation activities during this period. Water withdrawal and discharge rates fluctuate in proportion to our power
generation output.
Campaign to Save Water by Using Condensed Water
We have bolstered water conservation efforts across our Jakarta office, South Natuna Sea Block B, and Lematang assets.
This initiative cultivates a culture of responsible water use while implementing innovative strategies to optimise our
resources.
In our Jakarta office, we launched the “Every Drop Count” campaign, during which we actively promoted awareness of
water usage in restrooms and repurposed condensed water from our heating, ventilation, and air conditioning (HVAC)
systems to irrigate plants. This campaign was also carried out in South Natuna Sea Block B, where the collected water
was used to wash decks. At Lematang, we focused on optimising the temperatures of the condensers within the amine
system. By reducing temperatures, we enhanced operational efficiency while simultaneously consuming less water.
Water Risk Management
We qualitatively assessed risks that involved managing water resources in most of our assets in 2021. Our aim was to
prevent issues concerning water scarcity, coastal floods and inland floods in neighbouring communities. We then did
another assessment in 2023 to update our findings. The results indicated that the company is not currently at risk of
facing significant impacts in any relevant scenario across all assessed operations. While we note that Oman KSF is located
in a water-stressed area, we have minimised our freshwater usage by resorting to non-freshwater sources to support our
operations.
Air Emissions
Our Oil & Gas operations emit air pollutants, including Indonesian MoEF Regulation No. 11 of 2021 for emissions
nitrogen oxides (NOx), sulphur oxides (SOx), volatile from internal combustion engines; and MoE Regulation
organic compounds (VOCs), and particulate matter (PM). No. 13 of 2009 for non-engine sources such as boilers.
For our thermal power plants, these emissions include In Thailand, we comply with the 2017 Notification from
NOx, SOx, and PM. A detailed overview of air emissions the Department of Labour Protection and Welfare on
performance from 2022 to 2024 can be found in the 2024 hazardous chemical concentration limits. Additionally,
GRI Performance Data. our Power assets follow MoEF Regulation No. 15 of 2019,
We manage and monitor air emissions through our which establishes air emission thresholds for thermal
Environmental Management and Monitoring Plans, power plants.
ensuring compliance with various regulations, including
1 Water discharge in Oil & Gas in 2022-2024: International: Thailand and Oman; Domestic: Block A, South Natuna Sea Block B, Corridor, South Sumatra Block, Rimau, Lematang,
Madura Offshore, Sampang, Tarakan.
2 Water discharge in Power in 2022-2024: Riau IPP/Medco Ratch Power Riau (MRPR), Mitra Energi Batam (MEB), Dalle Energi Batam (DEB), Energi Listrik Batam (ELB),
Multidaya Prima Elektindo (MPE), Energi Prima Elektrika (EPE), Bio Jatropha Indonesia (BJI), Pembangkitan Pusaka Parahiangan (PPP)
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
101
Page 105
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Biodiversity Conservation
Biodiversity Management
MedcoEnergi is dedicated to protecting the environment favour the avoidance of impacts over minimisation, and,
through biodiversity conservation efforts. Our Oil & Gas where residual impacts remain, compensation/offset,
and Power assets engage in compliance and beyond- wherever technically and financially feasible.
compliance revegetation efforts as well as protection of
One example of our commitment to protect biodiversity
endangered species.
is the way we work in sensitive areas. In 2024 we started
Preserving biodiversity and ecosystems is integral to our the 3D seismic survey in Corridor to assess gas discoveries
HSE Policy, which protects both natural species and by the previous operator, which is partially located inside
designated protected areas. We carry out Environmental the Dangku Wildlife Reserve, South Sumatra province,
Impact Assessments (Analisis Mengenai Dampak Indonesia. These activities were conducted in accordance
Lingkungan Hidup/AMDAL) to comply with Indonesian with the permits from the Government of Indonesia. We
regulations that assess surrounding biodiversities and have been working closely with the authorities to ensure
ensure measures are implemented to prevent land safe and environmentally prudent operations. The seismic
degradation when opening new operational sites. programme deployed advanced and environmentally
friendly technologies, in adherence to all relevant
As part of the Environmental Impact Assessments,
regulations and international best practice.
we implement best-practice mitigation hierarchy. The
mitigation hierarchy to address risks and impacts will
Biodiversity Conservation Programmes
We aim to address the challenges facing biodiversity by collaborating with local and global partners. Our initiatives focus
on replanting as well as engaging local communities, which ensure that our conservation efforts are both impactful and
sustainable. Below is an overview of our efforts to replant as part of our biodiversity conservation programmes:
Planted areas Planted areas in 2022-2024 according
44
hectares
in 2022-2024
beyond regulatory
690
hectares
to Forest Area Usage Approvals
(Persetujuan Penggunaan Kawasan
requirements1 Hutan/PPKH) and Environmental
Permits (SKKL)2
Our investments, in USD, in replanting activities for both programmes are listed below:
Investments in Replanting 2022 2023 2024
Revegetation beyond regulatory requirements3 80,740 75,605 108,787
Revegetation as per Forest Area Usage Approvals (PPKH) 595,799 450,518 554,633
Revegetation as per commitments in Environmental Permits (SKKL) - 30,977 -
Tree and Mangrove Planting Initiatives
We replanted trees and mangroves across our assets in 2024. These initiatives were deployed to promote biodiversities in
land and coastal areas, aligning with SKK Migas’s national tree-planting campaign.
Beyond regulatory requirements PPKH
46,375 187,454
trees planted4 trees planted as new plantings
Sustaining Resources and Empowering Communities in Natuna
In our Natuna asset, we successfully protected 37 Rafflesia the quality of hatcheries and improve fish processing
sp. plants in 2023, a species classified as “Vulnerable” on techniques. These initiatives not only strengthened the
the International Union for Conservation of Nature (IUCN) local economy but also promoted the management of
Red List. We also empowered local communities through sustainable fisheries. In 2024, we continued studies to
programmes such as Pembinaan Kampung Nelayan Ikan identify methods to further conserve the Rafflesia species.
Bilis and Kampung Nelayan Kerisi Kasutri, which enhance
1 The total planted areas from 2022 to 2024 exclude the areas planted through the Medco & I Two Trees programme.
2 The Surat Keputusan Kelayakan Lingkungan Hidup (SKKL), or Environmental Permit/Feasibility Letter, is a permit document that outlines the environmental commitments
that the company must fulfill, as regulated by Government Regulation Number 22 of 2021.
3 This figure is re-stated to include Offshore’s beyond regulatory planting.
4 Trees planted include mangroves in Sungsang village, Banyuasin (SSB), Lematang, Corridor and Matak, and trees in Sumenep and Sampang.
102 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 106
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
2024 Upstream Oil & Gas Green Initiatives
The Upstream Oil & Gas Greening Programme, initiated Additionally, the Medco SSB Asset has demonstrated its
by SKK Migas-KKKS to align with the government’s commitment to revegetation by planting 171,326 trees
million-tree initiative, piloted a mangrove planting project across 248 hectares as part of the DAS SSB Block III
in Sungsang IV village. As a result, SKK Migas-Medco Meranti Sungai Merah rehabilitation programme. It also
E&P Grissik Ltd. (MEPG), collaborating with the Village replanted trees at Meranti Sungai Merah Protected Forest
Forest Management Institution (LDPHD) Sungsang (Hutan Lindung/HL) Block I (8,699 trees) and Pedamaran
IV and local stakeholders, successfully planted 12,000 Limited Production Forest (Hutan Produksi Terbatas/HPT)
mangrove trees across 1.2 hectares of village forest area. (6,246 trees). Revegetation also took place at Lematang
This contributed to SKK Migas’s larger target of planting and Rimau Assets, with 7,120 trees planted over 0.50
200,000 trees in southern Sumatra. These environmental hectares at Lematang and 1,185 trees replanted at Rimau.
conservation efforts have yielded multiple benefits that
Through these initiatives, MedcoEnergi actively
include reducing carbon emissions, preventing erosion,
contributes to national sustainability efforts, ensuring
protecting marine ecosystems, and empowering local
long-term forest and coastal ecosystem restorations, and
community economies through tourism development, all
community economic empowerments by developing
of which are continually being monitored and expanded.
both tourism and sustainable land use.
Banggai Agricultural Pioneers: Sustainable Farming Initiatives
Through our PANUTAN BANGGAI programme in Batui Selatan and Moilong, we address agricultural and environmental
challenges using nature-based solutions, including Sulawesi owls to control pests, wind-powered irrigation, and organic
composting. For example, introducing 89 Sulawesi barn owls (Tyto rosenbergii) has eliminated over 61,000 rats, which in
turn has reduced pesticide use and enhanced on-farm biodiversity. Furthermore, the use of wind-powered water pumps
supports sustainable irrigation, while organic fertilizer produced from cattle manure has improved soil fertility and
strengthened climate resilience since it contains key nutrients such as C-organic, nitrogen, phosphorus, and potassium.
Through such collaborative efforts with local stakeholders, including Village-owned Enterprises (e.g. Badan Usaha Milik
Desa/BUMDes) and the Tourism Awareness Group (Kelompok Sadar Wisata/Pokdarwis) Sumberharjo, we have successfully
created a sustainable agricultural ecosystem that not only addresses immediate farming challenges but also promotes
environmental conservation, community empowerment, and economic growth through eco-tourism initiatives.
JOB Tomori Kilo 5 Luwuk Coral Adoption Programme: The RAPTOR Method for
Sustainable Ecotourism
The Kilo 5 Luwuk Coral Adoption Program successfully transplanted 4,539 coral fragments across 850 square meters
in both the Tiaka Field and Kilo 5 Luwuk beach areas, which created positive socio-economic impacts for the local
community. This programme empowered diving communities and Karang Taruna youth organizations through training
to monitor coral reefs and diving education as well as fostering environmental awareness and building capacity for long-
term programme sustainability.
In addition, we expanded our conservation efforts by
releasing 27 Maleo birds into the Bangkiriang Wildlife
Sanctuary in collaboration with the Natural Resources
Conservation Agency (Balai Konservasi Sumber Daya
Alam/BKSDA), Tadulako University, and Indonesian Maleo
experts. This initiative included planting 100 candlenut
trees to provide natural feed for the endangered Maleo
population. Moreover, it created economic opportunities
from increased tourism activity, demonstrating how
environmental conservation can support local businesses.
Releasing Maleo birds Planting coral at Kilo 5 Luwuk Beach
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
103
Page 107
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Social Management System
(SMS)
We recognise that managing social risks is dynamic, progress and maturity. This is primarily done by identifying
influenced by both internal and external changes. risks, developing management programmes, enhancing
Our commitment to managing social aspects is organisational competencies, engaging stakeholders,
thus articulated through our SMS, which aligns with enacting grievance mechanisms, and continually
MedcoEnergi Sustainability Policy. monitoring and reviewing.
Our SMS, implemented alongside our HSEMS, manages We align all functions to improve social performance, and
these social risks and consequences. This approach both secure and maintain our social license to operate
reinforces our leadership in social management while through our SMS. The elements of our SMS are outlined in
providing comprehensive HSE and social safeguards. the infographics below. The details of each element can
be found in MedcoEnergi’s website.
Our SMS undergo continuous reviews and improvements
through our Plan-Do-Check-Action (PDCA) cycle to assess
MedcoEnergi’s SMS Elements
SMS Implementation
Implementing SMS requires strengthening internal • Identified key social risks at each asset and developed
cross-functional coordination, maintaining sustainable mitigation plans to prevent operational disruptions.
relationships with stakeholders, updating key guidance • Updated guidance documents related to managing
documents, and building capacity to effectively manage social risks and impacts.
social practices across operations. Key milestones in 2024 • Conducted capacity building through bi-monthly
include awareness campaigns, guidance document knowledge-sharing sessions; held training on Social
updates, and ongoing capacity building. Our initiatives License to Operate; and enhanced auditing compliance.
thus far are as follows: • Developed grievance evaluation tools to assess whether
the grievance mechanisms were aligned with the
• Promoted cross-functional awareness of SMS and
United Nations Guiding Principles (UNGP) effectiveness
how the social elements are managed. This was
criteria.
done through sessions with other functions as well as
• Updated the systems to record and monitor stakeholder
employees’ inductions, leaders forums, and lessons
databases, routine engagements, and social grievances.
learned sessions.
104 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 108
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
As part of SMS implementation, we recorded community grievances through our Grievance Mechanism in the assets.
Grievances were submitted by community members via dedicated employees acting as Persons-in-Charge (PIC) and
through various channels, including hotlines and WhatsApp. These reporting channels were communicated through
multiple media platforms, such as e-bulletins. All grievances received were processed in accordance with our Grievance
Mechanism. By the end of 2024, Medco Oil & Gas and Medco Power had resolved 91% of the grievances received that year
through consultations with the communities. We continued to verify and resolve the remaining grievances until closure.
SMS sharing session at the Bangkanai Asset
SMS Monitoring
Implementing SMS and the overall social performance Asset Management reviews the SMS evaluation process
in the assets involves regularly monitoring, analysing, at least once a quarter. This in turn guides decisions to
and evaluating it. This requires management support to improve the SMS and ensure it remains relevant and
ensure the SMS programmes are sustainable. For these effective over time. Key findings from these evaluations
reasons, the SMS monitoring programme emphasises are summarised in a report submitted to the Board of
continuous oversight and evaluations to ensure that Directors (BoD).
the social aspects are well managed and aligned with
established standards. This includes routine reviews,
discussions, and the use of evaluation tools to assess how
effective the grievance mechanisms are and how well
SMS is implemented.
Quarterly SMS Monitoring & Review – Offshore Assets
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
105
Page 109
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Alignment of Sustainability Initiatives
with the UN SDGs
The following table maps MedcoEnergi’s sustainability initiatives to pursue excellence in our governance compared with
the UN SDG targets. These initiatives only highlight MedcoEnergi’s efforts – they do not reflect the targets or achievements
of the host countries themselves.
UN SDGs Relevant UN SDGs Targets1 Key Initiatives
• HSEMS
3.9 • Sustainability Assessments
• Environmental compliance
• Wastewater monitoring and management
6.3, 6.4, 6.6 • Water conservation and efficiency
• Watershed rehabilitation
• Air emissions management
11.3, 11.6, 11.7
• SMS
• Hazardous and non-hazardous waste and effluent management
12.2, 12.4, 12.5, 12.6
• Environmental data reporting
14.1, 14.2, 14.5, 14.b • Oil spill reduction efforts
• Revegetation and mangrove rehabilitation programmes
15.1, 15.2, 15.4, 15.5 • Conservation of endangered species
• Biodiversity conservation and education initiatives
1 The targets can be found in UN SGDs website (https://sdgs.un.org/)
106 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 110
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Action Plans
The following action plans will enable us to meet our objectives and continue enhancing our environmental and social
safeguards. We regularly measure, monitor and report on our progress and performance and match them against these
actions. The progress report of these action plans refers to the 2023 - 2027 Sustainability Road Map.
Category Short Term Actions Medium-Long Term Actions Status
Water Determine water usage Determine water usage reduction Completed water usage forecast and
(consumption) target based programmes for normal operations data benchmarking
on benchmarking data and drilling programmes; continue
expanding them at Onshore, Corridor,
Offshore and Marine Operations
Determine water usage Establish Water Scarcity and Flood Implemented water reduction
reduction programme in Monitoring System; implement the programmes, including seawater
normal operations and programmes at Corridor, Block A, lift pump optimisation (Belanak),
drilling programmes Bangkanai, South Sumatra Block, automatic taps and awareness
Medco Power and other assets campaigns (Offshore), and treated
wastewater reuse (SSB, Rimau,
Corridor, Lematang).
Air Quality Develop strategies to align Implement the strategies for Medco Oil & Gas:
and adapt to updated Oil & Gas and Medco Power assets • Continued monitoring E&P
regulations and monitor their performance domestic air emissions per Permen
LHK 11/2021; as of 2024, all engines
comply.
• Continued monitoring E&P
domestic flaring reports per
Permen ESDM 17/2021; as of 2024,
all assets have categorised flaring
as regulated.
Establish Environmental Implement the protocols for Medco Conducted environmental audits in
Audit Protocol including air Oil & Gas and Medco Power assets compliance with the MoEF’s PROPER
emissions rating programme.
Effluents and Waste Determine waste and Develop waste and effluent load Oil & Gas:
effluents load targets based reduction programme, implement • Completed waste forecast and data
on benchmarking data the programme at Corridor as pilot benchmarking
project and expand to Onshore and • Implemented waste reduction
Medco Power assets programmes, including 3R
initiatives (Natuna, Corridor,
Sampang, Lematang), refillable
bottle campaigns (SSB, Lematang,
Bangkanai, Rimau, Sampang),
and composting (Block A, Rimau,
Corridor).
• Hazardous waste reductions
include MGB catalyst optimisation
(Belanak), quality-based lube oil
replacements (South Natuna Sea
Block B), LED light replacements
(SSB, Corridor, Sampang), and
rechargeable battery adoptions
(SSB, Lematang, Sampang).
Biodiversity Conduct biodiversity Implement biodiversity monitoring Conducted biodiversity impact
assessments (asset level) assessments for environmental
permit development and reported it
periodically in the RKL-RPL Report.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
107
Page 111
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Category Short Term Actions Medium-Long Term Actions Status
Local Community Develop the year’s SMS plans Develop SMS plans for all assets based Oil & Gas:
(SMS) for all assets based on the on identified improvement areas and • Developed asset-specific SMS
previous year’s monitoring management reviews implementation plans .
results and management
reviews
Update assets’ social Key social risks are identified and Oil & Gas:
risks identifications and mitigated • Developed specific social risk and
mitigations mitigation documents.
• Conducted Risk Management
Workshop for Corridor SMS Team.
Power:
• Updated social risk identifications
for land compensations for Ijen
Geothermal ROW Transmission,
East Bali Solar PV Project and
MPES Sulut-1.
Use the Integrated Track and analyse the grievances Oil & Gas:
Dashboard to monitor and through the Integrated Dashboard • Analysed social grievance trends
analyse grievances • Continued to monitor and record
grievances on the Integrated
Dashboard.
Conduct gap analysis on Assess the grievance mechanisms’ Oil & Gas:
the existing grievance effectiveness with the UNGP’s • Evaluated each asset’s grievance
mechanisms against effectiveness criteria mechanism implementation.
the UNGP’s grievance • Developed an evaluation
effectiveness criteria questionnaire to assess the stages
of the grievance process.
Develop an evaluation
tool to assess grievance
mechanisms’ effectiveness
in alignment with the UNGP
effectiveness criteria. Power:
• Developed community grievance
redress mechanisms in alignment
with UNGP’s criteria.
Complete assets’ SMS Maintain SMS maturity level targets Oil & Gas:
Monitoring process to assess and identify improvements (i.e. • Completed SMS monitoring for
their respective maturity continuous improvements) nine assets. Conducted quarterly
levels SMS monitoring and review.
Monitor performance progress of
Evaluate SMS maturity each asset’s SMS implementation and
level targets and identify identify improvements (i.e. continuous
improvements improvements)
Power:
• Continue to monitor Annual
Stakeholder Engagement
Programme implementation.
• Continue to monitor annual SMS
implementation.
Develop guidelines on social Determine social incident rate targets Preparing for the approval process
incident rates and achieve socially responsible for the drafted guidelines on social
management performance excellence incident rates.
108 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 112
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
This picture is the 3rd winner under the ‘Environment Climate Change’ category
of the MedcoEnergi 2024 Photography Competition
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
109
Page 113
Advancing
Our Health
and Safety
Culture
112 Approaches, Commitments, and Goals
112 Operational Excellence
114 Our Health, Safety, and Environmental
Management System (HSEMS)
117 Health and Safety Performance
118 Key Programmes and Initiatives
122 Alignment of Sustainability Initiatives
with the UN SDGs
123 Action Plans
Page 114
08
Wearing appropriate personal protective equipment when working at elevated heights.
This picture is the 1st winner under the ‘Health & Safety’ category
of the MedcoEnergi 2024 Photography Competition
Page 115
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
MedcoEnergi is committed to safeguarding the wellbeing of our employees, business partners, and the environment.
This commitment is reinforced through our Health, Safety, and Environment Management System (HSEMS) and our
Operational Excellence (OE) Framework.
Approaches, Commitments,
and Goals
Protecting the wellbeing of our employees and For these reasons, we updated the MedcoEnergi HSE
stakeholders is a fundamental part of our sustainability Policy in 2024 as part of our management review to
commitments. We believe work-related incidents, include inputs from all stakeholders on environmental
injuries, process safety events, and occupational illnesses issues, and references to global environmental treaties
are preventable. This conviction drives our adherence and policy goals.
to host government laws, industry best practices, and
Through robust HSE governance, we assign clear
international standards across our operations.
responsibilities to ensure procedures are effectively
Our Health, Safety & Environment Policy outlines our managed, reviewed, and improved. To address risks such
dedication to safeguarding employees and promoting as fires, equipment failures, and fatigue, we follow the
strong safety leadership. We aim for zero incidents by International Organization for Standardization (ISO) to
setting measurable goals, monitoring performance, align hazard identification and risk assessment processes
and offering extensive training to employees and for our Oil & Gas, and Power assets, ensuring a safe and
contractors. We also engage neighbouring communities sustainable working environment.
by raising safety awareness and enhancing emergency
preparedness.
Operational Excellence (OE)
We employ a structured and collaborative OE Framework to promote the safety, reliability, and efficiency of operations
across all our assets.
Advancing Operational Excellence
at Medco Oil & Gas
We aim to continuously improve
our HSE performance, Asset Asset
and Operating Integrity (A&OI), a nd
Operating Efficiency, and Cost Op
Management through our OE e
E
ra
Framework. Strategic improvement
HS
tin
plans are being implemented
g
following the latest assessments
Operational
In t e
to address performance gaps and
sustain OE maturity via the Plan-
grity
Do-Check-Adjust cycle.
Excellence
Enabling safe, reliable and
efficient operations
cy
Cos
ien
fic
t
Ef
Ma
ag n g
n
em
ent erati
Op
112 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 116
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
In 2024, we continued to embed the OE Framework and enhance workforce competencies to ensure safe, efficient, and
reliable operations.
Leadership Collaboration &
Development Knowledge Sharing
Medco Oil & Gas continuously grows its leadership The OE Leaders Forum, launched in 2024, fosters
capabilities through initiatives like the Leadership cross-asset collaborations, innovations, and best
Clinic, which fosters critical thinking and practice sharing. The OE Operation Site Leaders Forum
technical leadership skills. With over 150 sessions provides site leaders with a platform to exchange
conducted, these efforts have improved operational insights on OE’s leading practices and leadership
efficiencies and risk assessments, with field values. The OE coaches’ roles and OE talks drive
coaching further reinforcing safe work practices. cultural integration and daily knowledge exchanges.
Operations Competency Workforce Multiskilling
& Learning & Certification
Medco Oil & Gas strengthens workforce competencies This multiskilling programme equips Offshore
through its Competency and Learning Management employees with diverse skills to competently
System (CLMS), launched in Q2 2024. Regular fill various roles. In addition, the Competency
assessments for supervisors, superintendents, Test Locations (Tempat Uji Kompetensi/
and technicians verify their alignment with both TUK) were reactivated in September-October
the company’s and regulatory requirements. 2024 to streamline government certifications,
optimise costs, and improve compliance rates.
2024 OE Operation Site Leaders Forum –
Batch 1 and 2 Jakarta, Indonesia
Ensuring Operational Excellence
at Medco Power
In 2024, Medco Power integrated its Operational and Environment (HSE), cost management, maintenance
Excellence (OE) Framework into its strategies to enhance reliability, and operational efficiency. These assessments
competitiveness by optimising safety, reliability, efficiency, led to plans to strategically enhance safety, optimise costs,
and profitability across all assets, including gas-to-power, and improve asset reliability. Additionally, the company
renewable technologies (solar, wind, geothermal), and aligned Operability Assurance (OA) with OE standards in
Operations and Maintenance (O&M) services. key projects such as Ijen Geothermal Independent Power
Producer (IPP), Bali East IPP, and ELB Expansion, ensuring
Medco Power also conducted OE assessments for Mitra
operational readiness and seamless transitions.
Energi Batam (MEB) - Dalle Energy Batam (DEB), Energi
Listrik Batam (ELB), and Tanjung Jati B Power Services Furthermore, Medco Power prioritised the following two
(TJBPS), which focused on key areas such as Health, Safety, key areas to enhance its operational performance in 2024:
Process Safety Critical System Reliability
Medco Power implemented Safety Critical Element Abnormal Medco Power conducted a Single Point of Failure (SPOF)
Risk Assessment (SCEARA) to strengthen risk management analysis to identify a nd mitigate risks to critical components,
and operational discipline. This included reinforcing enhancing system reliability and minimising operational
management of change and standardising safety processes disruptions.
across all assets. In parallel, Medco Power is committed to
developing a strong process safety culture through continuous
awareness campaigns that emphasise the importance of
reinforcing process safety principles at every level of the
organisation.
Insights from these analyses were shared through the Basic Operation Hazards Bulletin Series, which promoted hazard
recognition, encouraged discussions, and cultivated a proactive safety mindset among employees. This initiative reflects
Medco Power’s unwavering commitment to embed safety into every aspect of daily operations.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
113
Page 117
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Our Health, Safety,
and Environmental
Management System (HSEMS)
Our HSEMS, a key part of our OE Framework, provides a structured approach to managing HSE risks, helping to safeguard
our business, people, and the environment. It mandates that each asset and business unit to plan and oversee HSE
implementation, with contractors and suppliers also required to comply. The HSEMS Manual outlines managerial
responsibilities, promoting its effective application and communication across the organisation .
Quarterly
Corporate Board Committee (CBC) • Approve corporate HSE vision/mission, policies, management
system, standards, goals, KPIs.
Chair Person: Director & Chief Operating Officer • Approve corporate audit plans.
Co-chair: Director & Chief Administrative Officer • Review corporate HSE performance and provide strategic direction.
Members: Senior Vice Presidents (SVPs), MPI Chief • Approve incident investigations’ terms of reference and incident
Executive Officer, VP Project Development & Engineering investigation reports of high potential near misses & injuries and
Excellence, VP HSE, VP Technical Assurance high risk incidents.
• Approve Corporate HSE Programmes.
Monthly
Asset Leadership Team (ALT) • Approve assets’ timelines of corporate HSE procedures and tools
implementation.
Chair Person: VP Operations, General Manager • Participate in corporate audit.
Members: Senior Managers, Managers • Approve and implement asset’s goals, KPIs, HSE programmes.
• Review asset’s HSE Performan ce.
• Communicate and discuss incidents’ lessons learned.
Monthly
Functional Leadership Team (FLT) • Approve and implement HSE site specific procedures.
• Participate in corporate audits.
Chair Person: Operations Managers, Field Managers/ • Implement assets’ goals, KPIs, HSE programmes.
General Manager, Offshore Installation Managers • Review sites’ HSE performance.
Members: Lead/Superintendent, HSE Managers • Report any incidents and near misses.
Our HSEMS at operational assets is aligned with global and national standards. We adhere to ISO 45001:2018 for
Occupational Health and Safety (OHS) and ISO 14001:2015 for Environmental Management Systems (EMS), maintaining
certifications for both.1
For details, a comprehensive list of certified Oil & Gas and Power assets can be found on page 95 (Chapter 7)
of this report.
1 While we ensure that HSEMS aligns with relevant ISO standards in our operated assets, we also influence our non-operated assets to implement HSEMS and/or align with
relevant ISO standards.
114 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 118
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Health, Safety, and Environmental Management System (HSEMS)
Element 1: Leadership, Policy and Responsibility
Element 2: Planning, Goals & Programs
PLAN
Element 3: Risk and Opportunity
PLAN
Element 4: Legal Requirements and Operating Standards
DO
Element 5: Documented Information
CONTINUAL
Element 6: Training, Competence and Awareness
IMPROVEMENT
Element 7: Communication, Participation, Consultation and Campaigns
ACT DO Element 8: Operational Control
Element 9: Asset Management and Operating Integrity
CHECK
Element 10: Contractor Management
Element 11: Emergency Preparedness and Business Continuity
Element 12: Non-conformities, Investigation, Learning from Events and
Corrective Actions
Our Oil & Gas HSEMS complies with
Indonesia’s stringent regulations, which CHECK Element 13: Monitoring and Measurement
include Government Regulation No. 50/2012
Element 14: Audit
on OHS Management and the Ministry
of Energy and Mineral Resources’ Safety
Management System (Sistem Manajemen ACT Element 15: System Review
Keselamatan Migas/SMKM).
Hazard Identifications, Risk Assessments,
and Implementation of Associated Controls
The following table highlights our ongoing efforts in 2024 to implement hazard identification and associated control
programmes:
Category Asset 2024 Activities
Oil & Gas domestic – Corridor asset • Hazard and operability revalidations at Gelam fields to enhance process safety
Onshore and health risk assessments across all fields.
South Sumatra Region • Hazard identification workshop for drilling activities in West Kalabau & Lica,
including risk evaluations, equipment inspections, and emergency drills.
• Hazard and operability revalidations at South Sumatra Block (SSB) (Station Jata,
Pengabuan, Gn. Kembang, Lagan) to improve process safety.
Kalimantan Region • Leadership assurance process for risk control and readiness at Tarakan M12 station
during surge tank and skimmer tank repairs.
Block A • Hazard identification workshop for shutdown maintenance at Block A to evaluate
risks and identify hazards.
Oil & Gas domestic - South Natuna Sea • Hazard identification workshop for the Belida shutdown and topside
Offshore Block B modifications, focusing on working at heights (WAH) and lifting operations.
East Java • Hazard workshop and job safety analysis (JSA) simulations for condensate tank
cleaning in Sampang (confined space and toxic gas risks) and maintenance deck
replacement in Madura (working at heights and hot work risks).
Oil & Gas Thailand • Hazard and operability revalidations for Bualuang Wellhead Platform A & C to
International enhance process safety measures
Oman • Comprehensive process hazard analysis for Glass Reinforced Epoxy (GRE) pipeline
operations, including Hazard Identifications (HAZID), Hazard and Operability
Study (HAZOPS), Major Accident Hazard Assessments using Bowtie Analysis, and
As Low As Reasonably Practicable (ALARP) workshop.
Power Ijen Geothermal IPP • HAZOP and HAZID workshops for geothermal power plant operations, with a
dispersion study for fires, explosions, and gas dispersion specifications.
Energi Listrik Batam • Construction Risk Assessments, HAZID & HAZOP studies, Safety Critical Elements
(ELB) (SCE), and Reliability, Availability, and Maintainability (RAM) assessments
conducted for the ELB Expansion project.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
115
Page 119
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Asset Integrity
In 2024, we assessed our assets’ integrity across our Oil & Gas facilities and Power plants to ensure our ongoing operations
remain reliable and safe. These activities are outlined as follows:
Category Asset 2024 Activities
Oil & Gas - Corridor • Enhanced asset integrity with inspections for weld corrosion, pipe support
Onshore corrosion, dissimilar joints, and smallbore pipes.
South Sumatra Region • Conducted intelligent pigging in Rimau & SSB pipelines to detect defects
and ensure safe operations.
Kalimantan Region • Ensured tank integrity using Non-Intrusive Acoustic Emission Testing (AET)
on Bangkanai produced water tanks.
Block A • Inspected Heat Exchanger (HE) tubes with Internal Rotary Inspection
System (IRIS).
Oil & Gas - South Natuna Sea Block B • Conducted sludge removal in COT 2S at Belanak Floating Production
Offshore Storage and Offloading (FPSO) for American Bureau of Shipping (ABS) class
certification.
• Repaired MOPU Hang Tuah risers and FPSO Belanak boom crane coating.
• Used Remotely Operated Vehicle (ROV) for subsea pipeline and platform
integrity inspections.
East Java • Cleaned and inspected condensate tanks T-250 & T-260 in Sampang.
Oil & Gas - Thailand • Conducted 24 subsurface integrity tests to ensure well integrity and prevent
International process safety events.
Oman • Completed internal repairs on separators and produced water vessels to
improve reliability and longevity.
Power Riau IPP/Medco Ratch • Conducted In-Line Inspections (ILI), Risk-Based Inspections (RBI), and
Power Riau (MRPR) Quantitative Risk Assessments (QRA) for the 38.5-km, 12-inch Riau IPP
Onshore gas distribution pipeline.
The Karim Small Fields (KSF), our asset in Oman, have
demonstrated our commitment to environmental
responsibility by reducing oil leaks since 2018 and achieving
zero leak in 2023. This achievement earned them the HSE
Contractor Award from Petroleum Development Oman
(PDO), which recognised MedcoEnergi’s dedication to the
highest safety, health, and environmental standards. It
highlights how MedcoEnergi’s asset integrity programme
effectively manages environmental risks, meets safety
targets, and drives continuous improvements in line with
industry-leading practices.
Karim Small Fields (KSF) received The Health, Safety, and Environment
Contractor Award from Petroleum Development Oman (PDO)
Contractor HSEMS
Managing contractors is crucial at MedcoEnergi as they In 2024, we continued reinforcing our contractors’
make up most of our workforce. Our Contractor HSE commitment to CHSEMS by evaluating their performance
Management System (CHSEMS) is integrated into our and gathering feedback to ensure consistent
Operational Excellence (OE) Framework and Health, implementations across all assets. Our Oil & Gas assets in
Safety, and Environmental Management System Indonesia further supported contractors’ commitments
(HSEMS), ensuring contractors meet our HSE standards. through the HSE Contractor Forum, while Medco Oman
We also pre-screen contractors for safety performance in strengthened safety leadership through site visits and
compliance with SKK Migas regulations. crew interactions. See the HSE Engagement with
Contractors section for more details.
116 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 120
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Health and Safety
Performance
We closely monitor our OHS performance by using KPIs to identify areas to improve and implement programmes
effectively. In 2024 our focus remained on reducing the Total Recordable Injuries Rate (TRIR) for both Medco Oil & Gas
and Medco Power, with a goal to maintain rates below the International Association of Oil & Gas Producers (IOGP) TRIR.
Our consolidated TRIR remained low, increased slightly from 0.15 in 2023 to 0.16 in 2024, despite a 15% increase in work
activities. This reflects our continued commitment to safety and effective risk management despite managing a higher
volume of work1. Notably, we achieved zero fatalities for the fourth consecutive year, reaffirming our commitment to
safety. We remain focused on maintaining this record and reducing TRIR, aiming for zero incidents. The following graph
presents our TRIR performance alongside the latest benchmarking data:2
TRIR at Medco Oil & Gas and Power in 2017-2024
1.40
1.20
0.96 0.99
1.00 0.92 0.90
0.84
0.77
0.80 0.75 0.72 0.70
0.69
0.70 0.60 0.77
0.58 0.59 0.69
0.60 0.56 0.48 0.66
0.58
0.44 0.46
0.40 0.39
0.35 0.33 0.33 0.33
0.31 0.29
0.24
0.21
0.20 0.15 0.18 0.16
0.10
0.00 0.00 0.00
0.00
2017 2018 2019 2020 2021 2022 2023 2024
Medco Consolidated Oil & Gas Power IOGP Asia/Australasia Keseluruhan IOGP
Our HSE performance is displayed in the tables below.
Employees Contractors
Oil & Gas
2022 2023 2024 2022 2023 2024
Numbers of Fatalities 0 0 0 0 0 0
Fatality Rates 0.00 0.00 0.00 0.00 0.00 0.00
Lost Time Incident Rates 3,4
0.00 0.00 0.00 0.00 0.00 0.04
Total Recordable Incident Rates 4
0.00 0.20 0.00 0.28 0.17 0.11
Occupational Disease Rates 0.00 0.00 0.00 0.00 0.00 0.00
Employees Contractors
Oil & Gas
2022 2023 2024 2022 2023 2024
Numbers of Fatalities 0 0 0.00 0 0 0.00
Fatality Rates 0.00 0.00 0.00 0.00 0.00 0.00
Lost Time Incident Rates 3,4
0.00 0.00 0.00 0.00 0.00 0.00
Total Recordable Incident Rates4 0.00 0.00 0.00 0.00 0.00 0.57
Occupational Disease Rates 0.00 0.00 0.00 0.00 0.00 0.00
1 The percentage of work activities is calculated based on the number of manhours.
2 The number of recordable injuries (fatalities + lost workday cases + restricted workday cases + medical treatment cases) per million hours worked. Source for benchmarking:
Data Series International Association of Oil & Gas Producers (IOGP) Safety performance indicators - 2023 data, issued in June 2024. Workforce includes employees and
contractors.
3 Lost time incidents include fatalities, permanent disabilities, and lost workdays.
4 Incidents include both injuries and illnesses.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
117
Page 121
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Process Safety Performance
Our process safety encompasses identifying, assessing, and mitigating risks through the key specifications listed below:
Standards and Equipment Testing These parameters are key
to evaluate our assets’
Procedures and Certification operating integrity, aiming
to reduce Process Safety
Staff Contractor Events (PSEs). In 2024, we
improved asset integrity
Competencies Requirements
for aging facilities, and
assessed process safety
Safety Two-Barrier effectiveness in our Oil &
Cases Policy Gas assets in Indonesia,
and expanded these
measures to our Power
Incident Response and and International Oil & Gas
Recovery Mitigation Plans assets.
Process Safety Events (PSE) 2022 2023 2024 We observed the increase
of Tier 1 & 2 PSE in 2024.
Tier 1 PSE1 1 0 1 Key improvement actions
to reduce the PSE included
Tier 1 PSE Rate per 1,000,000 Work Hours 0.04 0.00 0.03 upskilling process safety
Tier 2 PSE1 1 3 6 capabilities, enhancing
asset integrity & inspection
Tier 2 PSE Rate per 1,000,000 Work Hours 0.04 0.11 0.19 programme, and enhancing
Safety Critical Equipment
(SCE) assurance.
Key Programmes
and Initiatives
We demonstrate our commitments through a range of HSE programmes and initiatives designed for our employees,
business partners, and communities.
Incident Prevention Initatives
In 2024, we advanced a variety of OHS programmes focused on protecting our people and optimising processes to
prevent accidents. Some of our highlights include:
2024 SIAP SELAMAT Audit2
We participated in SKK Migas’ Audit K3 SIAP SELAMAT, an HSE audit using
the PTK-005 Guidelines3, to strengthen HSE performance and compliance.
This audit provided key insights that reinforced our commitment to safety, risk
management, and continuous improvements.
Lifting Assessment Programme
We engaged a world-class consultant to assess our personnel, equipment, and
procedures. This assessment benchmarked our practices against the industry’s
best standards, identifying risks and improvement areas. Based on the findings,
we are enhancing training, equipment maintenance, and procedures to
strengthen safety and OE.
1 The definition of Tier 1 and Tier 2 PSEs refers to the American Petroleum Institute’s Recommended Practice Process Safety Performance Indicators for the Refining and
Petrochemical Industries; Second Edition.
2 SIAP SELAMAT is an audit programme conducted by SKK Migas. It stands for Safety Integrity Audit Programme and includes System, Equipment, Labour, Asset, Management,
ALARP, and TRM (Technology Risk Management).
3 PTK-005 or SKK Migas’s Work Procedure Guidelines No. 005 Year 2018 was established for PSCs and business partners to develop, implement, and enhance HSE Management.
118 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 122
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Journey Management Improvement:
Ensuring Consistent Driving Safety
We enhanced the safety of our people’s journeys through monitoring, AI
technology, and stakeholder engagement. Passengers reported conditions while
leaders verified compliance. AI detected unsafe driving, and vehicles underwent
strict inspections. Drivers underwent training and testing while regular audits
continuously improved safety.
Training of Trainers Programme for Upskilling Operation
Personnel in Process Safety
HSE Corporate launched a Training of Trainers (ToT) programme to select and
train safety vanguards from Medco Oil & Gas Domestic, International, Well, and
Project teams. These vanguards will train field personnel, raise awareness, and
integrate process safety values to minimise risks and strengthen our safety
culture.
HSE Communication & Campaigns
We enhanced HSE awareness through multi-channel communication,
including print, digital media, and seminars, to ensure employees and
contractors stay informed and equipped for safer workplaces and healthier
lifestyles.
Training Dangerous Goods & Process Safety
for the Marine & Logistics Team
Training on Dangerous Goods (DG) and Process Safety (PS) was conducted at
Kalijapat and Matak for personnel handling hazardous materials. This training
focused on safe management and adherence to safety protocols to ensure all
teams were equipped with the knowledge for a safer, more secure operational
environment.
Medco LLC Oman Celebrates First KSF Process Safety Day 2024
Medco LLC Oman hosted its first KSF Process Safety Day on 10 December at
KSF, Nimr, with the theme “Comply, Mitigate & Verify.” Over 200 employees and
contractors participated in sessions on process safety fundamentals.
Employees’ Health
Medco’s Active Movement 2024, the fourth instalment
of our Wellness Programme, promoted physical activity,
nutrition, and mental health among employees. To
celebrate MedcoEnergi’s 44th anniversary, this programme
included a 39-day online competition (1 July – 8 August
2024), offline activities like strength training and aerobics,
and wellness education. Winners were announced during
the 79th Indonesia Independence Day celebration.
We also enhanced our Wellness Programme by focusing
on preventive health, particularly for employees with
cardiovascular risks. Actions included offering the Chronic
Disease Control (Kontrol Penyakit Kronis/KPK) programme
to Onshore employees, expanding fitness initiatives for
Offshore employees, facilitating the BAKPAOO (Bakar
Kalori Pas On & Off duty or burn calories on & off duty)
programme, and running mental health campaigns and
training across operations. Additionally, the Jakarta office
monitored employee health risks through the NALURI
app to support overall wellbeing.
BAKPAOO programme in Corridor, Indonesia
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
119
Page 123
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
The Safety Leadership Programme
We implemented the Safety Leadership Programme to reduce workplace incidents and ensure compliance with safety
protocols.
Leadership Visibility Programme
MedcoEnergi’s Leadership Visibility Programme
strengthened HSE culture by engaging leaders on-site
to verify safety measures and provide real-time feedback.
Key initiatives included Permit to Work verifications, Life-
Saving Rules compliance, and Supervisory Checklists,
which foster trust, accountability, and continuous safety
improvements.
Leadership Visibility Programme
HSE Leadership Forum
Our HSE Onshore Asset Department hosted a half-day
HSE Leadership Forum with asset leaders to enhance
the effectiveness of incident lesson-sharing and prevent
recurrences. At this forum, senior leaders emphasised
clear, adaptable communication and urged leaders to
engage with workers and tailor safety messages. The
discussions also highlighted areas to be improved and
best practices from different operation areas, fostering
knowledge exchanges that reflected our employees’
ongoing efforts to improve safety communication. HSE Leadership Forum
HSE Engagement With Contractors
Sustaining our safety culture requires strong engagement with contractors. We develop dedicated programmes each
year to continuously promote accountability and transparency.
HSE Contractor Forum & Workshops
Medco Oil & Gas Indonesia hosted the HSE Contractor As part of the Petroleum Development Oman (PDO),
Forum 2024 in Jakarta, themed “Improving Worker MedcoEnergi, and the Contractor Management Site
Readiness and Productivity through Fit to Work HSE Engagement programme, Medco Oman focused
Programme, Travel Management, and Safe Lifting on strengthening leadership engagement with frontline
Operations.” Leaders explored best practices and risk employees. Top management members participated in
mitigation strategies related to workforce health, the initiative by forming groups that visited various areas
transport safety, and certified lifting procedures and conducted activities across the sites. During these
through a talkshow format. These discussions reinforced visits, employees shared their feedback, which was later
contractors’ commitments to employees’ wellbeing, analysed and discussed to identify key learnings and
vehicle management, and competency assurance, which focus on areas to continuously improve workplace safety.
thus enhanced overall workplace safety.
To align and maintain our engagement with contractors,
Medco Thailand hosted its third Vendor Day in 2024.
This hybrid event helped aligned contractors with
MedcoEnergi’s strategic direction, KPIs, and HSE focus,
while also addressing critical issues like sustainability,
climate change, and future growth. For details, please
refer to Chapter 3.
2024 HSE Contactor Forum in Jakarta, Indonesia
120 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 124
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Emergency Preparedness
Emergency preparedness is integrated into our OE through the following three-tier response system:
A tactical response led by the Incident Management Team (IMT) at the sites, using
Tier-1
local resources.
Tier-2 A support response requiring additional resources involving both the sites’ IMT and the assets’
Emergency Management Team (EMT).
Tier-3 A strategic response to crises beyond Tier-2 capabilities, managed by the Crisis Management
Team (CMT) with senior management.
Business Continuity Management System
Our Offshore assets prioritise
business continuity to ensure
uninterrupted Oil & Gas operations
and effective service delivery. Its
Business Continuity Management
System (BCMS), aligned with ISO
22301:2019, identifies potential
disruptions, develops contingency
plans, and ensures readiness
through drills and defined roles. This
system underwent comprehensive
external audits in 2024 to assess
compliance with ISO standards,
system effectiveness, and recovery
capabilities. This approach
safeguards operational continuity
during disruptions and strengthens
our recovery processes. ISO 22301:2019 Certificate
Emergency Training & Tabletop Exercises
Oil Spill Responses and Management
Medco Asset Corridor conducted a successful tabletop exercise to manage oil spills and water safety in the Corridor
Storage Tank (CST) Operation Area, engaging both the Corridor and Corporate Emergency Management Teams and
the CST Site Incident Management Team. This exercise, in line with government regulations and Medco’s Emergency
Preparedness and Response Standards, emphasised safety, coordination, and resource allocations. Collaborating with
government agencies, it reinforced Medco’s commitment to protect the environment, maintain readiness, and comply
with regulations.
Medco Corridor Asset Tabletop Exercise and Oil Spill
Response and Marine Security Exercise
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
121
Page 125
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Jawa Bali Nusa Tenggara (Jabanusa) Exercise
In compliance with the Minister of Transportation
Regulation No. PM 58 of 2013, SKK Migas and Jabanusa
Production Sharing Contracts (PSCs) conducted a
“Joint Oil Spill Response Exercise” on July 10-11, 2024, in
Surabaya and Gresik. This event included a Tabletop
Exercise (TTX) to refine response strategies and a wet
drill at sea to simulate an oil spill. This exercise improved
our preparedness, coordination, and responses while
also identifying resource-sharing capabilities among
participating agencies. Jabanusa Exercise with SKK Migas and PSCs
in Surabaya dan Gresik, Indonesia
Natuna Exercise
The West Natuna Consortium (WNC) Partners
(MedcoEnergi, Harbour Energy, and Star Energy)
conducted a “Joint Oil Spill Response Exercise” on
August 24-25, 2024, in Matak to comply with Minister of
Transportation Regulation No. PM 58 of 2013. This event
included a dry drill to test Oil Spill Response Equipment
(OSRE) readiness; a tabletop exercise focusing on oil spill
and mass casualty scenarios; and a wet drill simulating
an oil spill and rescue operations. This exercise also
contributed to improving our coordination and response
strategies. It was observed by SKK Migas, Port Operator
Unit Office (Kantor Unit Penyelenggara Pelabuhan/KUPP)
Tarempa, and WNC Partners.
Joint Oil Spill Response Exercise in Matak Base, Indonesia
Alignment of Sustainability Initiatives
with the UN SDGs
The following table maps MedcoEnergi’s sustainability initiatives to advance our health & safety culture compared with
the UN SDG targets. These initiatives only highlight MedcoEnergi’s efforts – they do not reflect the targets or achievements
of the host countries themselves.
UN SDGs Relevant UN SDGs Targets1 Key Initiatives
• Health, Safety and Environment Management System (HSEMS)
• Hazard Identifications, Risk Assessments, and Implementation of Associated
Controls
• Asset Integrity
3.4, 3.6, 3.8, 3.9 • Contractor HSE Management System
• Emergency Preparedness and Tabletop Exercises
• Health Programmes (e.g. medical check-up, 39-day Medco Active Movement)
• Wellness Programmes
• Process Safety Performance Measurements
• HSE Campaigns, Programmes, and Initiatives
• HSE Contractor Forum & Workshops
• Contractor Management Initiatives
8.8 • Contractor Safety Ambassadors
• Emergency Preparedness and Tabletop Exercises
• EMT Training & Tabletop Exercises
• Business Continuity Management System
1 The targets can be found in UN SGDs website (https://sdgs.un.org/)
122 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 126
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Action Plans
The following action plans will enable us to meet our objectives and continue advancing our health & safety culture.
We regularly measure, monitor and report our progress and performance, and match them against these actions. The
progress report of these action plans refers to the 2023 - 2027 Sustainability Roadmap.
Category Short Term Actions Medium-Long Term Actions Status
Workplace Health Fit To Work for All Workers & Health Case Management
and Safety
Achieve 100% Medical Check-Up Implement pilot project for MCU completion rate at 100%,
(MCU) for the Jakarta Office, predictive analysis to determine with exceptions for 10 individuals
Oman, and Medco Power. individual fit-to-work status in Oil with medical notes.
& Gas assets.
Improve Wellness Campaign Improve Wellness Campaign Completed the kick-off meeting
programme for the remaining programme for all assets. on 18 July 2024.
Onshore fields.
Review and assess the Fit-to-Work Further implement integrated Personnel Transportation
monitoring system in 2023 and Fit-to-Work monitoring systems at Solutions (PTS) have already
make a decision to expand to Onshore, Offshore, Corridor, and been implemented in Offshore
other assets. Thailand. and Corridor. Phase 1 of PTS for
Onshore (South Sumatra Region)
has been completed, with plans to
expand to the Kalimantan region
in 2025.
Implement audits for Fit-to-Work Implement audits for Fit-to-Work Completed Occupational Health
and OH standards at Onshore and OHS standards at all Oil & Gas and Industrial Hygiene (OHIH)
assets and Oman. assets. audit in Onshore assets as a
priority, except for Tarakan, which
is scheduled for 2025. Although
the OH standards in Oman have
been completed, the audit will be
conducted in 2025, aligned with
the corporate audit schedule.
Improve Medical Emergency Improve MERP in East Java Completed MERP in Offshore East
Response Plans (MERP) in East and MPI (West Java and South Java and MPI.
Java and MPI (West Java and Sumatra), followed by other assets
South Sumatra). by 2025.
Maintain a safe and healthy working environment
Conduct Corporate OE Assessment (Onshore and Offshore) and self- Corporate OE assessments were
assessments (International). replaced with SIAP SELAMAT
in 2024. All gaps from OE
assessments have been closed,
and efforts were concentrated on
SIAP SELAMAT Audit.
Implement pilot safety culture Implement safety culture self- Completed safety culture self-
self-assessments at Onshore and assessments at all Oil & Gas assets assessments in all logistics and
Corridor. and Power locations. material management areas, with
priority adjustments based on the
latest incident recommendations.
An assessment in Well Ops is
planned for 2025.
Conduct corporate HSE audits at Conduct corporate HSE audits at SKK Migas audit SIAP SELAMAT
all Oil & Gas and Power assets. assigned Oil & Gas assets. was conducted for East Java,
Matak/Belida logistics, and SSB
Well Ops. The results showed
beyond compliance performance,
achieving over 90% for all three
assets, with scores exceeding 96%.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
123
Page 127
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Category Short Term Actions Medium-Long Term Actions Status
Workplace Health Implement improved learning Implement improved learning Completed Phase 1 development
and Safety organisation at all Oil & Gas and organisations at all Oil & Gas assets of the BPM Lessons Learned tools,
Power assets. and Power locations. with Phase 2 targeted for February
2025. A manual Lessons Learned
Tracking (in Excel) has been
implemented.
Implement Life-Saving Rules (LSR) Implement LSR FV at all Oil & Gas Improved LSR by integrating
Field Verification (FV) at all Oil & assets and Power locations. Start Work Check (SWC) as
Gas and Power assets. recommended by IOGP, with
pilot projects conducted in
Belanak, Corridor, and Rimau. The
BPM tools for LSR FV have been
completed.
Evaluate how to effectively Implement pilot project of Standards and guidelines were
implement SKK Migas CHSEMS predictive safety performance in issued in August, but further
procedures and develop action all Oil & Gas and Power assets. revisions are needed due to
plans. changes in PTK 005 (final draft
completed, pending approval
in January 2025). The Q3–Q4
evaluated implementations
have been completed, with full
cycle implementations covering
Pre-Qualification Score, Pre-Work
Assessment, Work in Progress
Score, and Final Evaluation Score.
East Bali Solar PV, Indoneisa
124 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 128
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Category Short Term Actions Medium-Long Term Actions Status
Asset Integrity Ensuring the Security and Integrity of the Asset
(Storage &
Transportation) Finalise HSEMS Manual for Oil & HSEMS Manual for Oil & Gas was
Gas assets. approved in Q4-2024.
Review strategies to effectively Implement strategies to minimize The Task Force Revitalization
minimize vandalism in Onshore vandalism in Onshore assets cover Pipeline Programme covers
assets (focus on Rimau pipeline). security, operations, integrity, security, operations, integrity,
social aspects, and stakeholder social aspects, and stakeholder
engagements. engagements, with regular
programme updates provided
to SSR Management, including
about the Rimau pipeline.
Conduct asset integrity and Conduct asset integrity and SKK Migas audit SIAP SELAMAT
process safety through corporate process safety through corporate was conducted for East Java,
HSE audits at Corridor and HSE audits at all Oil & Gas and Matak/Belida logistics, and SSB
Offshore assets. Power assets. Well Ops.
A programme to replace Onshore A programme to replace Onshore Completed as planned, with
flowlines at SSR West. aging flowlines at South Sumatra priority given to addressing several
areas. major pipeline leaks caused by
vandalism.
Improve asset integrity and safety Improve asset integrity and safety The 2024 AI Inspection
systems in Rimau systems in the South Sumatra programme is ongoing, with
regions. Q4 status showing completion
for pressure vessels (19 of 19),
trunklines (5 of 5), and piping (176
of 176). The Flare Improvement
Project is in progress, with
completion targets set for Ibul
(Jan 2025), Teras & Rambutan (Mar
2025), and Kaji (Sept 2025).
Improve Business Continuity (BC) Evaluate effectiveness of BC BC Standards (BCS) have been
processes in Offshore, Thailand, governance through audits in all approved. The BC Process (BCP)
and Oman. Oil & Gas and Power assets. pilot in Offshore and DIT have
been completed, with priority
adjustments due to an Offshore
and IT-related incident. BCP
expansion to other assets is
planned for 2025, focusing on
Corridor, Block A, Thailand, and
Oman.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
125
Page 129
Creating
Opportunities
For
Communities
128 Approaches, Commitments and Goals
130 Supporting Community Livelihoods
139 Measuring and Evaluating Our Impacts
143 Alignment of Sustainability Initiatives
with the UN SDGs
145 Action Plans
Page 130
09
Basic first aid skills training for elementary school students in Ban Pak Nam School, Chumphon, Thailand
This picture is the 1st winner under the ‘Social & Culture’ category
of the MedcoEnergi 2024 Photography Competition
Page 131
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
MedcoEnergi collaborates with multiple stakeholders to empower local communities in our operational areas
to be resilient and self-sufficient. Our Community Development Policy focuses on enhancing local potential,
improving wellbeing, fostering community resilience and integrating local wisdom into our programmes,
all of which are aligned with both national development priorities and the UN SDGs.
The Medco Oil & Gas Community Development Policy is available on our website. The three key focus areas are shown
below:
Key Focus Areas of the Medco Oil & Gas Community Development Policy
Natural
Stakeholder
Resources and Empowerment
Engagement
Local Wisdom
Community development Our community Stakeholder engagements
programmes are developed empowerment process is are carried out to develop
based on natural resources aimed at improving the community programmes and
and local wisdom within ability of communities company operations.
local communities to foster to become self-reliant
sustainable growth. according to self- and
environmental-potentials.
Approaches, Commitments,
and Goals
MedcoEnergi is dedicated to creating positive impacts that none of our projects border on indigenous
in the areas and communities where we operate. We communities nor were there community resettlements.
develop plans to minimise potential risks, amplify benefits, We adhere to international best practices, including
and ensure inclusivity through the Environmental, Social, Free, Prior, and Informed Consent (FPIC) for any future
and Health Impact Assessments (ESHIA). This enables us developments near such areas.2
to incorporate vulnerable groups as part of our broader
We also prioritise empowering local communities by
community development efforts.1
hiring local talent and encouraging contractors to do
In addition to the ESHIA, we conduct sustainability the same. This commitment led to 59% of employees in
assessments to evaluate environmental and social risks, Riau IPP and 46% in Block A being local hires in 2024,
which guide us to plan projects and address potential supported by training programmes to enhance their
challenges more effectively (details on pages 92-94). capabilities.3
In 2024, assessments of our operational assets confirmed
1 The national goals in operating countries mean any national-level objective or priorities set by the Central Government. For example, Indonesia has National Medium Term
Development Plans (RPJMN); our national SDG goals are directed by The Ministry of National Development Planning (Bappenas), Thailand has 4.0 Strategy to transform the
Thai economy into a value-based economy, and Oman has the 10th Five Year Development Plan for its 2040 vision.
2 FPIC (Free, Prior and Informed Consent) is a principle that recognises the rights of Indigenous peoples to give or withhold their consent on decisions that may affect their
lands, territories, resources, and cultures, based on accurate and relevant information, and without coercion or manipulation.
3 The employees include permanent employees, direct contractors, and third-party contractors as of 31 December 2024.
128 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 132
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Meaningful Engagements with
Our Stakeholders
As part of our Social Management System (SMS), we conduct stakeholder and social mappings to identify local
stakeholders and communities of interest. These activities are essential for us to address community needs and implement
programmes effectively.
STAKEHOLDER MAPPING SOCIAL MAPPING
This process involves mapping stakeholders This process involves identifying the social
based on their influence and interest. With structures, relationships and dynamics
this, a Stakeholder Engagement Plan (SEP) of a community, including analysing the
on a specific issue can be formulated based social context, demographics, stakeholder
on risks. The SEP is also a factor in evaluating relationships, culture and security.
community development programs
implementation.
We build trust and collaboration with communities and stakeholders through proactive SEP-based engagements to
mitigate risks. Below are the key roles overseeing community relations:
Community Assets’ Leaders
Field Relations
Enhancement (Sr. Manager Field
Teams
Team (HQ) Relations & Security,
GM/SVP)
Plan and implement community Provides direction to the community Review and approve the community
development programmes, including development programme’s work plans development programmes and report
social mapping, planning, execution and budgets at the corporate level. at the asset level.
and reporting.
We actively engage in multi-stakeholder platforms, including:
• Village Head Forums (Forum Kepala Desa).
• Sub-district Leadership Coordination Forums (Forum Koordinasi Pimpinan Kecamatan/FORKOPIMCAM).
• District Leadership Coordination Forums (Forum Komunikasi Pimpinan Daerah/FORKOPIMDA).
• Local Youth Organisations (Karang Taruna).
• NGOs and other community-based organisations.
Human Rights and Security
Our Security Policy adheres to legal compliance and We implement the Medco Security Management System
human rights in the countries where we operate aligning (MSMS) across all Oil & Gas assets, driving continuous
with the UN Guiding Principles on Business and Human security improvements. In 2024, 99.86% of Medco Oil
Rights and the Voluntary Principles on Security and & Gas and 100% of Medco Power security personnel
Human Rights (VPSHR). It outlines strategies to identify, completed human rights training through programmes
report, and respond to security threats and enables Medco like VPSHR, Gada Pratama1, Gada Madya, and Gada
Oil & Gas and Medco Power to address human rights Utama. The MSMS also helps us map critical asset risks,
concerns highlighted in our Human Rights Assessments supported by monthly monitoring and evaluations of
(HRA) (page 42). security management plans.
1 The Gada Pratama training programme is designed for new security guards or candidates, while Gada Madya is follow-up training for those who have completed Gada
Pratama and targets security personnel with supervisory roles. On the other hand, Gada Utama is exclusively intended for security managers at the chief security officer or
managerial levels.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
129
Page 133
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Supporting Community
Livelihoods
Our community development initiatives focus on fostering self-sufficiency through multi-year programmes that are
tailored to local needs aligned with our Community Development Policy. We also regularly donate funds during religious
holidays and sponsor Independence Day activities to support the surrounding communities close to our operations.
Community Development Programmes
The table below highlights key community development programmes from 2024. For a complete list, refer to the 2024
GRI Performance Data, GRI 203 on pages 35-39 and GRI 413 on pages 39-48.1
Asset Project Description Programme type
Block A Launched the Sustainable Yard Use for Food programme Sustainable livelihoods
Aceh, Indonesia (Pemanfaatan Pekarangan untuk Pangan Lestari/P3L) for two (economy)
women’s farmer groups.
Developed a horticulture programme to meet high demand Sustainable livelihoods
for fruit seedlings by using unproductive land, providing (economy)
training, and supporting new agribusiness opportunities for
local youth.
Implemented the Women and Children Empowerment Centre Sustainable livelihoods
programme (Rumah Pemberdayaan Ibu dan Anak/RPIA) to (education, health & economy)
empower women and children.
South Natuna Sea Block B Focused on land-based farmers while supporting those who Sustainable livelihoods
Riau Islands, Indonesia farm on their homesteads to enhance their knowledge and (economy)
skills in agricultural practices.
Launched the Scaling Up Anambas Rural-Smallholder Sustainable livelihoods
(SUAR) programme, which focused on empowering coastal (economy)
communities through mangrove crab farming and stingless
beekeeping.
Corridor Supported 28 farmers and the Community Rubber Feedstock Sustainable livelihoods (economy
South Sumatra, Indonesia Treatment and Marketing Unit (Unit Pengolahan dan & environment)
Pemasaran Bahan Olah Karet Rakyat/UPPB) in low-emission
farming to boost productivity.
Implemented stunting prevention programmes through Sustainable livelihoods (health)
nutrition support and education in 14 villages.
Planted 12,000 mangroves in Sungsang IV, in collaboration Sustainable livelihoods
with SKK Migas, as part of a 200,000-tree greening effort that (environment)
supports conservation, erosion prevention, and local economies.
Strengthened village education through mentoring, training, Sustainable livelihoods
and support for school infrastructure, teachers, students, and (education)
community-based educators.
Provided financial assistance for higher education to support Sustainable livelihoods
375 students pursuing Diploma-2 (D-2) and Bachelor's (S-1) (education)
degrees.
Developed and supported the Integrated Health Services Sustainable livelihoods (health)
Centre (Posyandu).
1 GRI Performance Data provides breakdowns for indirect economic impacts and local communities through infrastructure, sustainable livelihoods & community development
and others (donations). MedcoEnergi considers that it is important to identify the specific activities for community empowerment through education, health, economy and
environmental stewardship initiatives.
130 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 134
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Asset Project Description Programme type
South Sumatra Block In collaboration with SKK Migas, we planted mangroves in Sustainable livelihoods
South Sumatra, Indonesia Banyuasin, South Sumatra, to protect biodiversity and safeguard (environment)
coastal and land ecosystems from climate change impacts.
Rimau
South Sumatra, Indonesia South Sumatra Block: 10,800 mangroves
Rimau: 3,600 mangroves
Lematang
Lematang: 3,600 mangroves
South Sumatra, Indonesia
Supported the government’s stunting prevention efforts by Sustainable livelihoods (health)
educating local communities, including students and pregnant/
breastfeeding mothers, on nutrition.
Helped enhance food security in rural areas by promoting Sustainable livelihoods
organic vegetable farming and providing training, seeds, and (economy)
materials to local communities.
Sampang Provided high-quality and well-suited fishing nets and training Sustainable livelihoods
East Java, Indonesia on sustainable fishing techniques to improve local fishermen’s (economy)
catches.
Madura Offshore Provided entrepreneurship training for local Micro, Small and Sustainable livelihoods (economy
East Java, Indonesia Medium Enterprise (MSME). & education)
Bangkanai Provided affordable clean water and boosted the local Sustainable livelihoods
Central Kalimantan, Indonesia economy. (infrastructure development)
Tarakan Organised an Amplang (fish crackers) Training for women’s Sustainable livelihoods
North Kalimantan, Indonesia farmer groups. (economy)
Bualuang Conducted a quarterly campaign on renewable energy and Sustainable livelihoods
Thailand conservation for students in Chumphon. (environment)
Organised a one-day training for 91 students that focused on Sustainable livelihoods
building values of honesty and learning basic first aid. (education)
Provided a water tank to ensure that 129 students and 12 Sustainable livelihoods (health)
teachers have access to water year-round.
Provided physical therapy equipment for children with special Sustainable livelihoods (health)
needs through the Sensory Room Project.
Provided the necessary resources for an oyster mushroom Sustainable livelihoods
cultivation project to support the school lunch programme, (education)
teach vocational skills, and promote household income
generation.
Karim Small Fields Provided educational support for higher certification, assisting Sustainable livelihoods
Oman college students with tuition fees and living expenses. (education)
Provided financial support for a seaweed farming pilot project. Others
Riau IPP/MRPR Provided clean water facilities and nutritional support for Sustainable livelihoods (health)
Riau, Indonesia children affected by stunting in the Kulim District, Pekanbaru, and Infrastructure development
Riau.
Mitra Energi Batam (MEB) Supported community educational development through Sustainable livelihoods
Riau Islands, Indonesia interactive simulations and hands-on demonstrations (practical (education)
sessions on fire safety).
Bio Jatropha Indonesia (BJI) Provided support to improve roads in Waringinsari Village, Infrastructure development
West Java, Indonesia Takokak District, Cianjur Regency.
Medco Cahaya Geothermal Partnered with Nuri Indah Lestari, a micro, small, and medium- Sustainable livelihoods
(MCG) sized enterprise (MSME), to develop the local economy by (economy)
East Java, Indonesia enhancing the marketing of their high-quality coffee products
in Ijen-Wurung.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
131
Page 135
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Community Development Support
We are dedicated to empowering communities in our operational areas through sustainable development initiatives.
Our community development programmes focus on enhancing local potential, wellbeing, and long-term self-sufficiency,
all of which are aligned with the national priorities and UN SDGs. Consistent with our commitment, our expenditure in
sustainable livelihoods & community development programmes has increased annually.
The table below summarises the financial support provided by Medco Oil & Gas and Medco Power over the past three
years:
Programme (USD) 2022 2023 2024
Sustainable livelihoods & community 1,132,176 1,235,705 1,598,787
development
Infrastructure development 905,129 406,286 698,228
Others 267,103 170,874 234,147
Total 2,304,408 1,812,866 2,531,162
MedcoEnergi drives positive impact through robust community development programmes across five pillars: education,
health, economy, environment, and infrastructure. Through collaboration with local stakeholders, we empower individuals,
strengthen communities and help create a sustainable future for all.
Education
The Women and Children Empowerment Centre in Aceh
Block A runs the Women and Children Empowerment
Centre (Rumah Pemberdayaan Ibu dan Anak/RPIA)
to address low literacy rates and develop job skills in
communities around our operations area. Two RPIAs
have been established in Aceh, the first in Blang Nisam
Village in 2019, and the second in Ladang Baro Village in
2022. In 2024, we recorded 478 visits as the beneficiaries
from this programme that we collaborate with the Medco
Foundation, targeting women and children in surrounding
communities, engage residents as facilitators and literacy
Women and Children Empowerment Centre, Aceh, Indonesia instructors to improve education and skills development.
Enhancing Education Through Values and Skills Development in Chumphon
Honesty and basic first aid skills training in The Oyster Mushroom Cultivation House in
Ban Pak Nam School, Chumphon, Thailand Banhadsairi School, Chumphon, Thailand
To support ongoing education and community development efforts, two key initiatives were implemented to foster
character building and vocational skills. A one-day training was organised for 91 fifth-grade students at the Ban Pak Nam
School that focused on honesty as a core value and basic first aid skills. This initiative aimed to promote personal growth,
good citizenship, and essential life-saving knowledge.
132 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 136
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Additionally, we implemented the Learning Space Development Project at Banhadsairi School, Chumphon Province
to create a safe and engaging learning environment that emphasises hands-on experiences and agricultural career
skills. This initiative enhanced teaching conditions, supported student extracurricular activities, and provided the school
director with additional income to sustain the lunch programme.
Local Community Educational Development through
Fire Safety Interactive Simulations in Batam
Medco Power, through its subsidiary Mitra Energi
Batam (MEB), conducted a four-day Employee Teaching
programme in July. This initiative aligns with MEB’s
commitment to social and environmental responsibility,
fostering educational development in communities near
the operations.
MEB employees engaged with students through
interactive simulations and hands-on demonstrations
that covered essential safety skills, such as using a light
fire extinguisher and providing first aid for burns. These
practical sessions enhanced learning effectiveness and Medco Power’s employee teaching programme for local schools.
promoted community safety awareness.
Health
Development and Support for the Integrated
Health Services Centre (Posyandu)
A mobile health service programme in South Sumatra was
launched in partnership with the Musi Banyuasin District
Health Service to improve healthcare access in remote
areas. This programme provides general health checkups,
medical consultations, medication, health education,
and specialised services such as polio immunisations
and consultations with dentists, dermatologists, and
nutritionists. It was well-received by residents for its
Beneficiaries receiving polio immunisations in Posyandu
convenience, especially for those who have trouble visiting
hospitals and health centres.
Stunting Health Education and Familiarisation
Activities in South Sumatra
The Stunting Health Education and Familiarisation
Programme supports government efforts to combat
stunting and malnutrition in the company’s operational
areas. More than 5,000 beneficiaries have utilised the
Nutrition Shelter (Pos Gizi), which strengthens community
health services by:
• training village health cadres and midwives.
• providing nutritional interventions.
• educating parents on proper nutrition and hygiene.
Student participated in a Stunting Prevention Education Program This programme was conducted in villages in South
Sumatra, including Lubuk Bintialo, Pangkalan Bulian,
Sako Suban, Simpang Tungkal, and Muara Merang.
Additionally, a two-day stunting education initiative in Muara Enim, South Sumatra, engaged 86 students and 40
pregnant/breastfeeding women, to promote awareness and prevent early pregnancies. These efforts promote long-term
health improvements and reduce stunting, supported by the local government and community stakeholders.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
133
Page 137
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Economy
Empowering Women Farmer Groups to Sustain Food Security in East Aceh
We introduced a sustainable food yard use programme in
East Aceh to strengthen food security with a strong focus
on empowering women. This programme engages female
farmers from the Alue Siwah Serdang Village, Nurussalam
District, and Panton Rayeuk T Village, Banda Alam
District, through two women farmer groups. We provided
training and support to optimise available land for family
food production. This programme enhances both food
availability and household income by equipping women
with the skills and resources to cultivate vegetables
and secondary crops. It includes the provision of seeds,
Female farmers participate in essential equipment, and ongoing assistance.
the Sustainable Food Yard Use programme
Enhancing Women’s Economic Skills Through Fish Cracker Production in Tarakan
We organised an Amplang (traditional local fish
crackers) training for women farmer groups to benefit
local communities and foster economic growth in
Mamburungan and Mamburungan Timur villages,
Tarakan, North Kalimantan, attended by 30 participants
and hosted in Salak village. This training addressed
challences in fish farming that generates limited income.
It focused on transforming unsold pond produce into
processed products, such as fish crackers, to increase
economic value and improve household incomes.
Participants appreciated the opportunity to turn low-
value fish into marketable products, creating new income
Fish Crackers Production Training, Tarakan, Indonesia
opportunities for their families.
Empowering Farmers for Sustainable and Climate-Resilient Agriculture
We have been collaborating with local farmer groups
to enhance their productivity and support sustainable
agriculture and climate-resilient farming. As part of this
ongoing initiative, the Mapan Sejahtera Farmers Group
was established in Tarakan, North Kalimantan, as a
learning centre for knowledge-sharing on sustainable
agriculture, livestock, and biogas production. This has
successfully reduced local farmers’ reliance on chemical
fertilisers and upskilled a group member to provide
training and education to other farmers.
Participants of the Community Training and
Assistance for Farming Program.
To promote organic farming and climate adaptation, we assisted the Hutan Slipi Mandiri Farmer Group in Tarakan to
improve soil management, composting, and sustainable cultivation techniques. This initiative helped reduce dependency
on chemical fertilisers, conserve biodiversity, and strengthen food security. We also empowered 28 rubber farmers and
UPPB in the Musi Banyuasin Regency, South Sumatra to adopt low-emissions farming practices by implementing Good
Agricultural Practices (GAP) and transition to sustainable rubber cultivation methods.
Most of these multiyear programmes have now reached the sustainability phase of the S-Curve approach in community
development (refer to S-Curve on page 142). As such many of the programmes are now led by the communities
themselves in sustaining the projects. MedcoEnergi only provided monitoring and there were no further investment in
2024 in some of the areas.
134 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 138
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Infrastructure
Enhancing Clean Water Access for Sustainable Communities in Bangkanai
We are committed to improving clean water access and
community resilience. A key initiative is The Refillable
Drinking Water Programme in Rahaden Village,
Bangkanai, Central Kalimantan. It addresses limited
access to safe drinking water, a key health and economic
challenge. We constructed water treatment facilities,
provided training, and supported the development of
a community-managed water business, thus ensuring
affordable and sustainable water distribution. This
programme has improved public health and created new
economic opportunities for local businesses.
Drinking water refill depot in Rahaden Village,
Bangkanai, Indonesia.
Building Clean Water Facilities and Providing Nutritional Support in Pekanbaru
Riau IPP/MRPR built clean water facilities and provided nutritional support for the Kulim communities.
Our subsidiary, Riau IPP/Medco Ratch Power Riau (MRPR), provided clean water facilities and nutritional support for
children affected by stunting in Kulim District, Pekanbaru, Riau. An official handover ceremony was held at the Tenayan
Raya Health Centre, reinforcing MRPR’s commitment to community health and wellbeing.
Improving Roads to Support Infrastructure Development in Cianjur
Medco Power, through its subsdiary Bio
Jatropha Indonesia (BJI), donated materials
to improve road conditions in Waringinsari
Village, Cianjur Regency, West Java. The
deteriorated roads had originally hindered
both BJI’s operations and local mobility.
This initiative reflects BJI’s commitment to
infrastructure development, operational
efficiency, and strong partnerships with local
authorities for a lasting positive impact.
Road improvements in Waringinsari Village, Cianjur Regency,
West Java, Indonesia.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
135
Page 139
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Environment
Mangrove Conservation for a Sustainable Future in South Sumatra
In 2024, Corridor asset contributed to plant 12,000
mangrove trees across 1.2 hectares in Sungsang IV
village as part of the Upstream Oil & Gas Greening
Programme and Indonesia’s one million trees initiative.
This collaboration with SKK Migas and the Village
Institution for Village Forest Management (Lembaga Desa
Pengelola Hutan Desa/LDPHD) Sungsang IV, aimed to
reduce carbon emissions, prevent erosion, and promote
mangrove ecotourism while supporting local economic
growth.
A total of 10,800 mangroves were also planted in the
South Sumatra Block, and 3,600 each in Rimau and
Lematang, which protect coastal and land ecosystems
Mangrove Conservation area in Sungsang IV village,
from climate change impacts. South Sumatra, Indonesia
Campaign to Support Renewable Energy and Conservation in Chumphon
In 2024, we provided approximately USD 1,100 to the
Chumphon Provincial Energy Office, a key stakeholder in
Chumphon, for a quarterly campaign held at Chumphon
Ban Nacha-ang School in Mueang District. This campaign
aimed to provide valuable knowledge on renewable
energy and energy conservation to both students and
teachers, and will run for a year.
Student feedback was highly positive, with many
expressing a greater understanding of energy conservation
practices, which they can apply at home. We will continue
to engage with teachers and students to gather insights
Supporting the Renewable Energy and Conservation and assess the long-term impacts of this campaign.
Campaign in Chumphon, Thailand.
Community Development at JOB Tomori
At our non-operated asset, the Joint Operating Body
(JOB) Tomori implemented the Panutan Banggai Social
Innovation Programme (Pertanian Berkelanjutan Petani
Banggai) to address critical challenges in the agricultural
sector, including:
• Declining rice productivity due to rodent infestations in
Banggai Regency, Central Sulawesi.
• Uneven irrigation water distribution caused by land
elevation differences.
• Limited availability of organic fertilisers as production is
currently managed at individual levels.
• Low awareness of organic farming practices.
• Climate change threats affecting agricultural
sustainability.
In 2024, the Panutan Banggai Programme introduced
integrated and innovative solutions through the sub-
programmes, which provide sustainable, community- Panutan Banggai Social Innovation Programme,
Central Sulawesi, Indonesia
driven approaches to tackle these challenges effectively.
They are described on the next page.
136 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 140
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Sersan Cemani (Serak Sulawesi Pahlawan Cegah Kematian Petani)
This sub-programme has been implemented in two
districts in Central Sulawesi, Batui Selatan and Moilong,
covering 12 villages and involving 191 farmers organized
under local farming groups. It promoted organic rice
farming using eco-friendly pest control through barn
owl-based rodent management, using Serak Sulawesi
(Tyto rosenbergii), replacing hazardous electric traps that
previously led to farmer fatalities. The Serak Sulawesi owl
naturally controls rodent populations, helping protect
crops and improve farming safety.
The initiative also reduced CO2 emissions from genset use
and increased organic rice market value, thus boosting
farmer income. To support this, JOB Tomori developed
owl nesting sites using recycled industrial materials for
Serak Sulawesi owl cage in Sersan Cemani programme,
long-term durability. Central Sulawesi, Indonesia
Wind-Powered Irrigation Pumps
We deployed wind-powered pumps in Paisubuloli village,
Batui Selatan district, Banggai regency, Central Sulawesi
to irrigate highland farming areas. These pumps use
renewable energy to supply water, with each unit capable
of irrigating up to five hectares of farmland, ensuring year-
round farming activity and improving access to clean and
sustainable water for the local community. The pumps are
managed by the village government in collaboration with
the local community, benefiting 10 people.
Wind-powered irrigation pump periodic monitoring,
Central Sulawesi, Indonesia
Composting Programme Pos Bidik (Kompos Bikin Hidup Lebih Baik, or Compost Makes Life Better)
To address the limited availability of organic fertilisers,
we established a community-led composting centre
in Cendanapura Village, Toili District, Banggai Regency,
Central Sulawesi to produce fertiliser collectively. This
facility now produces 70 tonnes of organic fertiliser
monthly, supporting both small-scale farmers and
commercial agricultural operations while reducing
methane emissions from livestock waste. The centre is
managed by the Posbidik Group, which consists of 10
members.
Farmers use compost fertilizer,
Central Sulawesi, Indonesia
Eco-Eduwisata for Organic Farming and Owl Conservation
Sumberharjo Village, Moilong District, Banggai Regency,
Central Sulawesi has been transformed into an eco-
education and tourism hub that promotes organic
farming, agroecology, and barn owl conservation. The
site now serves as a learning centre for sustainable
agriculture, hosting farmer discussions, youth activities,
and educational programmes. Developing local SMEs
around the tourism site has also created new economic
opportunities for the community. The site is managed by
the Sumberharjo Tourism Awareness Group (Kelompok
Sadar Wisata/Pokdarwis Sumberharjo), consisting of 37
Monument at Pokdarwis Sumberharjo,
members. Central Sulawesi, Indonesia
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
137
Page 141
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Strengthening Our Impact Through The Medco Foundation
The Medco Foundation, established in 2003 by Arifin Panigoro, is dedicated to improving community wellbeing through
sustainable initiatives in education, health, socio-economic empowerment, and environmental conservation, aligned
with the UN SDGs. We continue to strengthen our collaboration with the Medco Foundation through the following
initiatives:
Elimination of Tuberculosis (TB)
In 2024, Medco Foundation focused on several impactful
initiatives, including the commitment to eliminate
tuberculosis (TB) in Indonesia. The organisation
collaborated with Stop TB Partnership Indonesia (STPI)1
and Indonesian Association Against Tuberculosis (PPTI)2
to identify cases and treat patients across 12 provinces and
62 districts. Supported by MedcoEnergi, PPTI mobilised
hundreds of community health workers, who helped
identify 147,870 TB cases in 2023. The Medco Foundation
also supported the Jakarta Respiratory Centre (JRC),
which treats approximately 203 confirmed TB patients
per year. Community receiving familiarisation of Tuberculosis (TB)
Building Decent Housing in Mauk
Medco Foundation, in collaboration with MedcoEnergi
and Habitat for Humanity Indonesia, launched the Decent
Housing Programme to renovate uninhabitable homes
in Marga Mulya, Mauk, Tangerang, Banten. Over the past
two years, 39 homes have been renovated, which have
subsequently improved living conditions for residents.
Many struggle to afford home repairs due to Mauk’s
community reliance on informal jobs at low income. This
programme helps provide safe and healthy housing and
enhances community wellbeing. Medco Group employees
MedcoEnergi employee participated in building decent housing in were involved through the Medco Volunteering Day, with
Mauk, Banten, Indonesia
460 volunteers contributing during different phases.
This picture is the 3rd winner under the ‘Social & Culture’ category
of the MedcoEnergi 2024 Photography Competition.
Literacy Empowerment for Mothers and Children
The Medco Foundation supported literacy programmes,
including the Reading Corner Mulyoharjo (Pojok Baca
Mulyoharjo) in South Sumatra and RPIA3 in Aceh, which
gained over 11,600 visits by 2,700 people in 2024. In
addition, it continued its post-tsunami literacy efforts in
Donggala, Central Sulawesi, to increase local educational
resources and provide training opportunities, such as
workshops on fish and mushroom processing.
Children read books at the Mulyoharjo Reading Corner,
Aceh, Indonesia
1 Stop TB Partnership Indonesia (STPI) is a non-governmental, non-profit organisation dedicated to the holistic and systematic eradication of tuberculosis. It facilitates cross-
sectoral collaboration at both local and global levels. STPI was first proposed at the Asia Stop TB Partnership Forum in South Korea and was later chaired by the late Ir. Arifin
Panigoro.
2 The Indonesian Association Against Tuberculosis (Pusat Pemberantasan Tuberkulosis Indonesia/PPTI) is a civil society organisation (CSO) that supports the government
in combating tuberculosis (TB), established on 20 May 1968. PPTI is committed to TB control by raising public awareness, identifying and supporting patients through
treatment until recovery, and providing assistance to underprivileged patients within the organisation’s capacity. PPTI offers general healthcare services, with a focus on
pulmonary and respiratory care, through its flagship Jakarta Respiratory Centre (JRC-PPTI) clinic in Jakarta and a primary clinic in Jambi.
3 The RPIA programme was established in collaboration with PT Medco E & P Malaka and PT Medco E & P Indonesia. Please refer to page 132 and page 140.
138 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 142
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Measuring and Evaluating
Our Impacts
We recognise the importance of measuring the impacts of our community development programmes. Quantifying our
efforts helps assess their effectiveness and identify potential improvements to each programme, in accordance with
Community Development Guidelines.
Social Returns On Investment (SROI)
We implement a Social Returns on Investment (SROI) framework to quantify the social, environmental, and economic
value of our community development programmes. These results guide decisions on designing, developing, and scaling
future programmes. By assigning a monetary value to our programme outcomes, the framework provides comprehensive
assessments of our programmes’ impacts from multiple standpoints. There are two types of SROI implementations:
Evaluative Forecast
Retrospective evaluation of Prediction of the prospective value of
the actual results the planned programmes
Scope Mapping Outcome-related Analysis
Outcome Impact SROI
and Stakeholder Events Collection and
Mapping Calculation Calculation
Identification and Value Delivery Reporting
Measuring Our Programmes’ Impacts In East Aceh
Empowering Farmers Through Sustainable Horticulture in Block A
In 2024, the Sustainable Agriculture Programme for through the sale of superior fruit seeds. The programme’s
Horticultural Commodities (PSRLB) in Block A enhanced SROI was calculated at 1.61 from its implementation in
local livelihoods by training farmers on plant propagation 2021-2024. This initiative aims to strengthen economic
and distributing supporting tools. The programme resilience and promote sustainable agriculture, aligning
benefitted nine farmer groups in Indra Makmu, East with UN SDGs 2, 8, and 12.
Aceh, with monthly incomes increasing by IDR 1-2 million
Farmers receiving training on plant propagation
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
139
Page 143
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Strengthening Communities Through the Women and Children Empowerment Centres
In 2024, the RPIA programme enhanced education,
economic resilience, and healthcare in Indra Makmu and
Julok sub-districts. East Aceh. We empowered locals by
training them in literacy, business skills, language, and
computer use, alongside commodity cultivation. We also
addressed health issues such as tuberculosis, stunting,
and maternal health through counselling and medical
equipment support. With 942 direct beneficiaries,
including fostered groups, facilitators, and healthcare
workers, the programme’s SROI in 2021-2024 was 2.32.
This initiative supports sustainable development, aligning
with UN SDGs 3, 4, and 8.
Women and Child Empowerment House, Aceh, Indonesia
Measuring Our Programmes’ Impacts In Corridor
Awardee of Scholarship from Higher Education Fund Assistance Programme,
South Sumatra, Indonesia
Enhancing Education Access Through the Village Education Strengthening Programme
The Village Education Strengthening Programme supported clean water facilities and guided the transition
improved education quality across nine villages in of 21 honorary teachers to permanent government
four sub-districts of Musi Banyuasin Regency, South employment (pegawai pemerintah dengan perjanjian
Sumatra. We provided training for 1,660 teachers in line kerja/PPPK). With a SROI score of 1.68 based on its impact
with national standards, distributed 145 infrastructure and investment in 2021–2024, this programme increases
support packages to 56 schools, and supplied 931 accessibility to quality education, aligning with UN SDGs
teaching kits and 565 student learning packages. We also 4, 8, and 10.
Strengthening Community Health Through Posyandu Development
The Posyandu Development and Strenghtening
Programme aims to enhance maternal and child health by
providing nutritional support and supplementary feeding
for pregnant women and toddlers. We also enhanced the
healthcare infrastructure by supplying essential medical
equipment to 27 Posyandu and fostering health centres
in South Sumatra. With a SROI score of 1.26 for 2021-2024,
this programme contributes to better community health
and wellbeing, aligning with UN SDGs 2, 3, 6, and 8.
Participants of Posyandu health training,
South Sumatra, Indonesia
140 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 144
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Enhancing Rubber Farming Sustainability and Livelihoods
Despite Indonesia being the world’s second-largest
natural rubber producer, many farmers struggle with
economic instability due to fluctuating commodity
prices. The Rubber Cultivation and Down Streaming
Programme was therefore launched to support farmers
in Musi Banyuasin Regency, South Sumatra. As a result,
the following were provided: financial assistance for
farming tools, technical assistance on planting patterns
and disease control, revitalised farming equipment, and
emission reduction studies. By improving productivity
and sustainability, this programme reached a SROI of 3.71
in 2021-2024, which aligns with UN SDGs 1, 3, 8, 10, 13, and
Offering technical guidance to a rubber farmer, 15.
South Sumatra, Indonesia
Developing Local Businesses in Musi Banyuasin to Make Communities more Resilient
Our Local Business Development programme addressed
challenges faced by MSMEs across seven villages in the
Musi Banyuasin Regency, South Sumatra. We therefore
partnered with Plantari to deliver tailored support to
fishing cooperatives, farming collectives, food processors,
and village-owned enterprises (Badan Usaha Milik
Desa/BUMDes) in the communities near our Suban,
Rawa, and Grissik operations. This programme tackled
key issues, including limited human resources, digital
marketing constraints, inadequate market information,
and insufficient capital. As a result, our comprehensive
Keripik Anggun, a village-owned enterprises (BUMDes)
approach ensured that production was enhanced, in South Sumatra, Indonesia
business skills were developed, products were certified,
packaging was improved, and expanded market access was expanded through digital platforms and exhibitions. In fact,
from July 2021 through December 2024, these initiatives achieved a Social Return on Investment (SROI) score of 1.22,
which generated 1.22 rupiah in community benefits for every rupiah invested while supporting UN SDGs 3, 4, 8, 10, 11, and
12.
Measuring Our Programmes’ Impacts in East Java
Expanding Clean Water Access Through Well Drilling
The Clean Water Wells Programme improves access to
safe water for over 25 families and supports irrigation
for more than 149 farmers in two hamlets in East Java.
By reducing health risks linked to contaminated water
and enhancing agricultural productivity, the programme
strengthens community wellbeing and food security.
Based on its impact and investment in 2020–2024, the
SROI is 6.73. This initiative promotes sustainable water
management and rural development, aligning with UN
SDGs 2, 3, 6, 8, 12 and 14.
Clean Water Well Drilling Programme,
East Java, Indonesia
Enhancing Local Fishing with Quality Nets and Training
Over the past five years, we have implemented several
community development programmes to improve
the quality of life and productivity of local fishermen
and surrounding communities in East Java. One such
programme included distributing high-quality and well-
suited fishing nets to increase catch, combined with skills
training to enhance eco-friendly fishing techniques. The
Fishing Tools Support Programme demonstrated tangible
benefits, with a SROI of 2.15 in 2021-2024. This initiative
promotes decent work and economic growth, aligning
with UN SDGs 2, 3, 6, 8, 12, and 14. A fisherman receiving high-quality and well-suited fishing nets,
East Java, Indonesia
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
141
Page 145
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Measuring Our Programmes’ Impacts In Thailand
Enhancing Learning for Children with Disabilities Through the Sensory Room Project
The Sensory Room Project at Chumphon Panyanukul
School supports students with intellectual disabilities,
multiple disabilities, and autism by improving
their concentration, physical readiness, and mental
preparedness for learning. The school also aims to alleviate
parents’ financial burden and allow them to focus on
their personal careers. With a SROI score of 2.82 in 2022-
2024, this initiative fosters inclusive education and social
wellbeing, which align with UN SDGs 1, 4, 10, 11 and 12.
Sensory room at Chumphon Panyanukul School, Thailand.
Learning Space Development Project at Banhadsairi School
Banhadsairi School, Chumphon, Thailand provided
students with a safe and engaging learning environment
focused on hands-on experiences and agricultural career
skills. Teachers can benefit from an improved teaching
environment while the school director gains an additional
income source to support the lunch programme and
extracurricular activities. This project not only promotes
self-reliance, adaptability, and career development, but
also contributes to economic stability as well as improved
quality of life. The project achieved a SROI ratio of 1.26
in 2021-2024, meaning every THB invested returns 1.26
Learning space development project
times its value to society. This initiative promotes quality at Banhadsairi Schol, Thailand.
education, aligning with UN SDGs 4 and 12.
Adopting The S-Curve
We have integrated S-Curve1 principles into community engagement, strengthening ties through mutual cooperation.
The S-Curve is also intended to measure maturity level of the programmes. Our long-term projects aim to create shared
value and empower communities to develop their economies sustainably, even after the projects end. The graph below
shows how Medco Oil & Gas uses the S-Curve approach to support local MSME development:
Community Sustainability Organic Farming, Cassava Chips, From ‘Contact’ to ‘Sustainability’,
Horticulture, Honeybee Cultivation, Goat each level represents defined
Development Farming, Rubber Cultivation, Herbs targets and milestones. For
Programs continue with no further
Maturity Level support from the company. example, at both the ‘Inclusive’
and ‘Organized’ levels, we set
clear goals for skills training and
Influential Household Waste Management, Organic MSME development, which then
Fertilizer Production, Organic Farming, progress to active community
Biogas, Adiwiyata Schools participation and strengthened
Has an impact on creating a sustainable life.
local economies in ‘Cooperation’
and ‘Influential’.
Cooperation Mangrove Planting, Vegetable Cultivation,
Freshwater Fish, Clean Water Management, At the ‘Sustainability’ level,
Grouper Fish Seed Center programmes such as organic
Provides opportunities for various parties to
participate. farming, rubber cultivation,
and honeybee cultivation are
MSMEs, BUMDES Management
designed to continue without
Organized company support. These
Forms a common consensus between groups and
fosters solidarity to create a sustainable life together. initiatives empower communities
to be independent in sustaining
Inclusive Skills Training (Sewing, Automotive, Welding, etc. economic growth and managing
Provides minority and vulnerable groups with opportunities their environments. This
to participate and involve stakeholders.
structured model reflects how
we design our programmes:
Change Cultivation Training (Organic SRI, Vegetable), Capacity Building
promoting clear goals and self-
for Youth, Village Head
Increases knowledge, skills, & confidence to create change. sufficiency that address both
community development targets
Contact Social Mapping, Program Familiarisation and economic sustainability.
Identifies community and company needs.
1 Reference: http://ijsr.internationaljournallabs.com/index.php/ijsr
142 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 146
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Alignment of Sustainability Initiatives
with the UN SDGs
The following table maps MedcoEnergi’s sustainability initiatives to empower local communities compared with the UN
SDG targets. These initiatives only highlight MedcoEnergi’s efforts – they do not reflect the targets or achievements of the
host countries themselves.
UN SDGs Relevant UN SDGs Targets1 Key Initiatives
• Provided funding to launch an oyster mushroom cultivation project for school
and vocational training.
1.4
• Developed a horticulture programme for fruit seedlings and agribusiness
training for youth.
• Supported agricultural training for land-based and homestead farmers.
2.4, 2. A
• Promoted organic vegetable farming for food security.
• Trained students on honesty and first aid.
• Provided funding to support the Sensory Room Project for children with special
3.3
needs.
• Provided nutrition education to prevent stunting.
• Provided education support: mentoring, training, infrastructure.
• Provided financial aid for higher education (D-2 & S-1 degrees).
4.1,4.2, 4.3, 4.4, 4.7 • Supported fire safety education via simulations and demonstrations.
• Provided nutrition education to prevent stunting for students and pregnant/
breastfeeding mothers.
5.5, 5. A • Implemented RPIA programme to empower women and children.
• Provided clean water facilities and stunting prevention support for children.
6.1, 6. B • Constructed clean water wells for local communities.
• Purchased and installed a water tank for school access to water year-round.
• Supported Mapan Sejahtera Farmers Group: sustainable farming, livestock, and
7.1, 7. B
biogas.
• Provided clean water access and economic improvements.
8.3 • Enhanced business skills, market access, and UMKM Anggun promotion.
• Provided sustainable fishing training and equipment.
1 The targets can be found in UN SGDs website (https://sdgs.un.org/)
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
143
Page 147
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
UN SDGs Relevant UN SDGs Targets1 Key Initiatives
9.1 • Provided materials to improve roads in Waringinsari Village.
• Developed the local rubber commodity market through training and direct
assistance to the market players.
10.2
• Provided physical therapy equipment for children with special needs through
the Sensory Room Project.
12.1 • Supported MSME partnership to enhance local coffee marketing.
• Supported low-emission farming for farmers and UPPB.
13.1, 13.3 • Planted 12,000 mangrove trees as part of 200,000-tree greening efforts.
• Conducted renewable energy and conservation campaigns for students.
• Supported the Hutan Slipi Mandiri Farmer Group to promote organic farming
15.1
and adapt to climate change.
• Engaged multi stakeholders such as local governments, communities, NGOs,
17.17
and educational institutions.
Stakeholder engagement with fisherman in East Java, Indonesia
This picture is the 2nd winner under the ‘Social & Culture’ category
of the MedcoEnergi 2024 Photography Competition
1 The targets can be found in UN SGDs website (https://sdgs.un.org/)
144 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 148
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Action Plans
The following action plans will enable us to meet our objectives and continue creating opportunities for communities.
We regularly measure, monitor and report on our progress and performance and match them against these actions. The
progress report of these action plans refers to the 2023 - 2027 Sustainability Road Map.
Category Short Term Actions Medium-Long Term Actions Status
Local Communities Conduct social mapping in Oil & Gas:
selected assets. Completed field survey and social
mapping reports in Block A, South
Sumatra Block (Cikal), and Rimau
Block (West Kalabau) areas.
Power:
Preparations for the ESIA survey,
including social mapping, are
underway; the survey will be
conducted at Medco Cahaya
Geothermal (MCG).
Enhance 2024 Community Enhance annual community Oil & Gas:
Development Programme. development programmes Created community development
to strengthen MedcoEnergi’s programme roadmaps for Local
contributions to the SDGs. Business Development (SDG 1&2),
Health (SDG 3), Education (SDG 4).
• Completed for Block A,
Bangkanai, Tarakan, SSR,
Corridor, Block B, and East Java
Assets.
• Coordinated with CSRM to
develop climate change
strategies for the community.
Power:
• Built a library in North Sumatra
by Medco Geothermal Sarulla
and empowered women’s local
economic communities in Riau
by Medco Ratch Power Riau
• Installed electricity in Riau by
MEB, DEB, ELB.
Conduct SROI study in Block A, Oil & Gas:
Corridor, East Java (Q2-Q3). Completed SROI field survey
studies in Block A, Corridor Assets,
East Java and Thailand assets.
Stakeholder Conduct stakeholder mapping & Oil & Gas:
Engagement perception survey/SLOI in Block A • Completed field survey and final
(Q2-Q3). report for Block A.
Update the Stakeholder Evaluate the implementation Oil & Gas:
Engagement Guidelines. of the 2022-2026 Strategic • Developed and familiarised
Stakeholder Engagement plans in personnel with Stakeholder
2026 and update the guidelines Engagement Guidelines for all
in 2027. domestic assets.
Power:
• Developed 2024 SEP
documents and maintained
implementation through
community and stakeholder
engagements.
• Enhanced SEP projects for East
Bali PV and Ijen geothermal
projects.
Enhance R&S Integrated Oil & Gas:
Dashboard system and • Continue improving the BPM
implementation (Q1-Q4). Dashboard System.
• Conducted monthly monitoring
and provided support for
technical issues.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
145
Page 149
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Category Short Term Actions Medium-Long Term Actions Status
Security Practices Conduct Security Management Oil & Gas:
Plans (SMP) External Audit for • Conducted the Upstream Oil
Selected Asset (Q2-Q4). and Gas Security Management
(Manajemen Pengamanan Hulu
Migas/MPHM) familiarisation
and risk assessments for all
domestic assets.
• Following government
recommendations, conducted
SMP external audits for several
assets, including Block B,
Bangkanai, Corridor, SSB,
Lematang, East Java, and Block
A. Will continue in 2025.
Power:
• Conducted security contractor
performance evaluation in Q4-
2024.
Develop Security Incident The Security Incident Dashboard
Dashboard for EP Domestic Guidelines were completed in
(guidelines and protocol) (Q1). March 2024.
Establish Security Incident Oil & Gas:
Dashboard (integrated system) – • Enhanced the security incident
EP Domestic (Q1-Q4) dashboard, to be implemented
in 2025.
• Completed Q4 monitoring
and evaluation of assets in
December 2024. .
Power:
• Designated Subsidiary PIC.
Develop VPSHR training Conduct VPSHR training for all Oil & Gas:
guidelines. guards in all assets. • Conducted VPSHR refresher
training for South Sumatra
Region as part of the security
asset protection strategy.
• Completed rules of
engagement session for security
operations in Corridor, South
Sumatra and Kalimantan
regions.
Power:
• Conducted regular human
rights refreshment training
for all security personnel in
Q4-2024 at Medco Power
Solar Sumbawa (MPSoS) and
Riau IPP/MRPR. 100% target
achieved in 2024.
146 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 150
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Category Short Term Actions Medium-Long Term Actions Status
Security Practices Update routine security Oil & Gas:
stakeholder mapping at all assets. • Completed the update of
security stakeholder databases
for all assets.
• Participated in focus group
discussions on the permit
process for explosives and vital
national security management
as part of stakeholder
engagement.
• Supported the signing of an
MoU between South Sumatra
Region and South Sumatra
regional police.
Power:
• Conducted courtesy visits to
local police and army officials.
• Updated the stakeholder
database for Q4-2024.
Update security risk assessments Oil & Gas:
at selected assets (as needed). • Developed the Zero Security
Incident guidelines. The
programme is set to be
launched in January 2025.
• Organised Security Intelligence
Level II training (risk
assessments) to strengthen
security personnel’s intelligence
skills.
Power:
• Maintained weekly assessments
of security threats and risks.
Reading Corner Mulyoharjo, supported by Medco Foundation, in Aceh, Indonesia
This picture is the 3rd winner under the ‘Social & Culture’ category
of the MedcoEnergi 2024 Photography Competition
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
147
Page 151
Empowering
Our People
and Digital
Transformation
150 Approaches, Commitments and Goals
150 Our Employees
152 Initiatives to Empower Our People
155 Building A Strong Digital IT Foundation
to Drive Transformation
156 Alignment of Sustainability Initiatives
with the UN SDGs
157 Action Plans
Page 152
10
Page 153
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
MedcoEnergi drives growth by investing in its people. We believe that a passionate, respectful, and inclusive workforce
flourishes in a conducive environment, fostering sustainable progress. Strengthened by a culture of diversity, fairness, and
equal opportunity, we cultivate talent and leadership through company aligned Human Resources (HR) policies.
Approaches, Commitments
and Goals
Our Core Values, Professional, Ethical, Open, and Innovative, We continuously review our HR policies, which include the
serve as the foundation of our success, shaping our Career Management Guidelines, Recruitment Guidelines,
culture and behaviour. These principles guide individual and Labour Management Plans, to ensure they remain
performance and reinforce our broader commitment to relevant to evolving employee development needs and
foster an inclusive and respectful workplace. align with global benchmarks such as the International
Labour Organisation’s (ILO) Declaration on Fundamental
We recognise that diversity drives innovation and
Principles and Rights at Work. Furthermore, we
strengthens our industry leadership. We are therefore
leverage the central HR information system through the
committed to maintaining a discrimination-free and
MyHRCorner application and the HR Dashboard portal
equitable workplace where all employees are treated with
to implement these effectively and improve employee
fairness and respect, regardless of ethnicity, race, gender,
experience, accessibility and efficiency in managing HR
skin colour, religion, age, marital status, nationality, or
processes and decisions.
background. Our company upholds fairness in all aspects
of employment, ensuring that hiring, development, As an organisation that values human rights, we protect
evaluations, and rewards are based solely on skills and workers’ rights and comply with applicable laws in the
performance. Our approach includes performance-based countries where we operate, aligning with the Universal
pay and comprehensive benefits beyond the provincial Declaration of Human Rights (UDHR). Child and forced
minimum wage (Upah Minimum Provinsi/UMP) in labour are strictly prohibited, and we require our suppliers
Indonesia. In 2024, the minimum salary for our full-time, and business partners to adhere to the same standards.
permanent employees in Jakarta was 14% higher than Additionally, we respect our employees’ rights to form or
the UMP stipulated by the Jakarta Special Provincial join trade unions, further reinforcing our commitment to
Government (Daerah Khusus Jakarta). ethical and responsible business practices.
Our Employees
As of 2024, MedcoEnergi employs 3,539 individuals, with women making up 17% of our workforce. Two women currently
serve on our boards and committees, representing about 15% of the total members. Additionally, women hold 21% of
leadership positions1, which reflects our commitment to gender diversity leadership.
The Number of Employees The Percentage of Employees
in Oil & Gas2 and Power in Oil & Gas2 and Power
based on Employment Contracts based on Gender
3,317 3,259 2022 2023 2024
3,255
82% 82% 83%
154 181
280
18% 18% 17%
2022 2023 2024
Permanent Temporary
1 This includes lead/superintendent levels and above in domestic Medco Corporate and Oil & Gas
2 This includes Medco Corporate employees.
150 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 154
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Percentage of Employees in Oil & Gas1 Percentage of Employees in Power
based on Age Group based on Age Group
2024 2024
5% 69% 26% 25% 65% 10%
2023 2023
5% 71% 24% 24% 66% 10%
2022 2022
4% 73% 23% 22% 68% 10%
<30 years old 30–50 years old >50 years old <30 years old 30–50 years old >50 years old
The Number of Employees in Oil & Gas1 The Number of Employees in Oil & Gas1
and Power based on Geographical and Power based on Educational Levels
Locations in 2024
3,205 3,235 Oil & Gas Power
3,126
1,920 609
76% Bachelor & above 60% Bachelor & above
406 175
16% Diploma 17% Diploma
283 293 304
2022 2023 2024
200 229
8% High School & non-degree 23% High School & non-degree
Indonesia International
The Number of Employees in Oil & Gas1 and Power based on Positions in 2024
Senior Vice Presidents Senior Superintendents &
Assets
(SVP) & VPs Managers
Managers
Supervisors
Staffs Total
Oil & Gas 16 72 377 636 1,425 2,526
Power 7 20 105 223 658 1,013
Total 23 92 482 859 2,083 3,539
Notes: The percentage of new employees hired in the Oil & Gas and Power sectors, categorised by age, gender, and region, as well as employee turnover data for the same
categories, are disclosed separately in our 2024 GRI Performance Data.
1 This includes corporate employees.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
151
Page 155
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Initiatives to Empower
Our People
At MedcoEnergi, we invest in people who lead, innovate, and build a sustainable future. We prioritise employee well-
being while driving business sustainability. We provide comprehensive support to nurture talent, empower individuals,
and ensure long-term retention through guidance from the Integrated Talent Management Framework.
MedcoEnergi’s Integrated Talent Management
Engagement
Workforce Planning
and Retention
MedcoEnergi
Succession Integrated Talent Acquisition
Management
Talent
Management
Learning and Development Performance Management
In 2024, the Human Resources team achieved several We also continued conducting the MedcoEnergi
key milestones. Operational excellence was strengthened Business Apprentice Program (MBAP) to prepare
by centralising key functions, particularly in marine young professionals in Finance and Digital Information
operations, exploration, wells, and engineering, which Technology. We enhanced HR systems with the rollout
subsequently improved efficiency and collaboration. of MyHRCorner, a centralised platform that improves
A Sustainable Performance Improvement Program employee access to career development, performance
was implemented across Offshore and Onshore assets management, and training. Additionally, data-driven
to further optimise performance, ensuring long-term decision-making was strengthened by implementing the
operational resilience. HR Dashboard portal, which improves data analyses and
workforce planning, thus enabling leaders to make more
Twelve employees from Indonesia were seconded to our
effective decisions, further optimise talent management,
Oman Joint Venture, and 33 staff undertook international
and align workforce strategies more closely with business
assignments across Oman, Thailand, Singapore, and
objectives.
Indonesia, gaining invaluable exposure to diverse cultures
of operations.
We advanced through these five key Human Resources programs in 2024:
Securing talent Strengthening Advancing Enhancing Building organisational
for critical company leadership and industrial and capabilities to support
projects and values & Medco technical skill employee relations the energy transition
initiatives Leadership development to maintain agenda
Behaviors (MLB) industrial harmony
152 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 156
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Securing Talent for Critical Project and Initiatives
Continuous learning and professional development are women now hold 20% of structural positions, significantly
essential to nurture talent and sustain growth. In 2024, contributing to the company’s achievements.
the Company launched its Development Campaign,
To further support talent retention and motivation, our
engaging over 700 employees to support their career
Total Rewards strategies are designed to retain high-
growth and encourage knowledge transfers through
performing talent and align with the company’s business
the already established Individual Development Plans,
objectives. This involves market research and continuously
Mentoring and Leadership programs. As a result of these
improving of performance incentive mechanisms. These
efforts, 19 employees received formal education assistance
strategies also include the Performance Management
through the Employee Education Assistance Program.
System, in which all employees regularly participate. More
Our Succession Planning and Talent Development
details about performance evaluations can be found in
program ensures that key functions are regenerated; these
2024 GRI Disclosure 404-3 within the GRI Performance
include operations, engineering, and subsurface roles.
Data.
With 36% of structural positions held by young leaders,
we are building a strong talent pipeline. Additionally,
Strengthening Company Values &
Medco Leadership Behaviors (MLB)
An engaged and inclusive workforce is essential to drive 2. The Women at Work Community – A platform
business success while upholding company values. that fosters peer support, mentorship, and career
By actively following up on employee engagement development opportunities for female employees,
survey results, we reinforce a culture of continuous providing structured support for professional
improvement, ensuring that employees’ voices shape growth.
workplace strategies. For these reasons, we launched
several initiatives to address key areas of improvement To cultivate a culture of integrity, collaboration, and
building based on insights gleaned from the 2023 continuous improvement, we continued to reinforce
Employee Engagement Survey. Focus Group Discussions Medco Leadership Behaviors (MLB), a model that
(FGDs) were held regarding company culture and career encourages employees to embrace and exemplify
opportunities, with 148 employees participating and key leadership values in their roles. To ensure
contributing valuable input for our targeted improvement MLB is effectively communicated and embraced
programs. To enhance female employee engagement, by employees across all organisational levels, an
we held an FGD with 43 women from diverse roles, internal campaign was launched using multimedia
exploring career development and work-life balance and communication platforms. This initiative
challenges. Insights from these conversations spurred the featured a management message video and an
introduction of two initiatives: MLB sharing experience, during which over 100
employees discussed best practices. Additionally, a
1. The Respectful Workplace Program – Designed to Leaders’ Forum was held to facilitate idea-sharing
promote inclusivity, mutual respect, and a professional and collaboration among leaders, which ultimately
work environment, reinforcing a culture where every promoted the effective application of MLB within
employee is valued and supported. teams.
Medco Leadership Behaviors (MLB)
Passionate in developing self and
people competencies; Empowering
people to achieve goals, leading by
example, and promoting learning
from experience.
Foster innovation Committed to creating long-term
continuosly adaptive, value and to be accountable to
agile, and open to do the right thing to achieve
new ideas. business results.
Connect and engage
Think strategically and pay attention stakeholders through
to detail to deliver quality outcomes; effective communication
take tough decisions aligned with and bring a positive
business priorities. influence to others.
This approach helps solidify an internal culture dedicated to supporting energy growth, ensuring that leadership
behaviors are deeply embedded in the way we work. The Performance Management System also incorporates MLB as a
key assessment component, thus further integrating MLB and corporate values into daily operations alongside evaluating
employees’ work achievements.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
153
Page 157
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Advancing Leadership and
Technical Skill Development
We enhance leadership and employee growth through tailored training programs that refine skills, strengthen expertise,
and support career progression. In 2024, we invested USD 3.8 million in both leadership and technical development.
Training Investment
Year Programme Man-course1 Training Hours
(USD)
2024 1,085 8,210 136,380 3,882,000
2023 1,058 9,380 77,900 3,976,000
2022 1,131 8,226 78,841 3,782,500
In 2024, we strengthened our leadership and talent The MedcoEnergi Business Apprentice Program (MBAP)
development efforts through various initiatives. The is another initiative aimed at preparing future talent. This
Medco Senior Leadership Development Program (MSLDP) program recruits fresh graduates specialising in Digital
entered its third batch alongside other leadership Information Technology (DIT) and Finance. The company
programs such as Leadership Coaching, Critical Thinking, also actively participates in career events, such as those
Leaders Forum, and Conversational Capacities. Collectively, sponsored by the Institut Teknologi Bandung (ITB) and
more than 12,000 training hours were spent delivering Solo Techno Day and continues to develop Management
these programs. Beyond leadership development, over Competency Models for Digital Information Technology
120,000 training hours were devoted to employees across and Relations & Security Division.
more than 550 subjects in technical, business support,
Programs and assistance to upgrade employee skills and
and operations areas, including Subsurface Academy
transition assistance programs are available in the 2024
Cadres 2 and 3.
GRI Disclosure 404-2 in our GRI Performance Data.
Enhancing Industrial and Employee Relations
to Maintain Harmony
Maintaining industrial harmony is essential to foster a concerns and provide updates on new internal policies
productive and engaged workforce. We acknowledge and regulations. Additionally, we organised activities to
11 labour unions supported by seven collective labour enhance labour unions’ knowledge in industrial relations
agreements (CLAs), which showcases our dedication to support Grow People Capabilities under Medco
to fostering strong industrial relations. In 2024, we Leadership Behaviors. A knowledge sharing session
successfully renewed five CLAs and extended two others, covering collective labour agreement negotiations and
ensuring they remained relevant to both employees’ remunerations in the oil and gas industry was held in
and the company’s needs. These efforts were further March 2024. The Industrial Relations Forum (IRF) in
supported by continuous alignment initiatives, developed November 2024, entitled “Together Building the Future,”
in collaboration with government stakeholders. gathered 75 union representatives together. In July 2024,
we supported union board members’ participation in the
We maintain open communication and collaboration
SKK Migas Industrial Relations Workshop, alongside PSC
by arranging quarterly meetings with each labour
labour unions and HR practitioners.
union. These meetings address management and union
Building Organisational Capabilities to
Support The Energy Transition Agenda
Building organisational capabilities is key to translating In late 2024, Medco Power and the Deutsche Gesellschaft
our climate goals into action. We equip employees with für Internationale Zusammenarbeit (GIZ) GmbH started
technical skills to drive a sustainable future and support to plan a collaborative project within the framework of the
our Energy Transition Agenda. In 2024, 11 training programs develoPPP funding programme of the German Federal
and knowledge-sharing sessions covered renewables, Ministry for Economic Cooperation and Development
low-carbon technologies, CCS-CCUS, and climate (BMZ). The project is aimed at advancing skill development
change, engaging 457 employees with 1,536 training in Indonesia’s renewable energy sector by equipping
hours dedicated to competency-building. Additionally, energy companies with strategic workforce development
2,800 employees completed three e-learning modules initiatives. Medco Power and GIZ are moving forward
on Sustainability and Climate Change, while 19 senior towards the implementation of the project in 2025.
leaders earned global certifications in Sustainability, ESG,
and Climate Change.
1 Number of subject trainings attended by one person. Whenever one person attends two training sessions, this is counted as two man-courses. Reference: MedcoEnergi
Training Policy.
154 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 158
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Building a Strong Digital
IT Foundation to Drive
Transformation
MedcoEnergi has developed its five-year Digital IT strategies, launched in 2022, to build a strong foundation for agility
and resilience, driving greater integration, efficiency, and intelligence across our business operations. Its Digital IT Vision
and strategies are clearly stated under the four main pillars. 2023 was the year these strategies were implemented. They
focus on building a robust digital foundation that empowers our people to navigate future challenges with agility and
resilience.
Digital IT Deliver value to our business by exploiting digital technologies to make our operations
Vision and processes more efficient, effective, intelligent and automated.
STRENGTHEN ESTABLISH DIGITAL DRIVE DIGITAL
THE DIGITAL OPERATING MODEL TRANSFORMATION
ACROSS OUR
FOUNDATION BUSINESS
Improve and deploy application Align structure, processes and Adopt and deploy digital
and infrastructure platform through governance for the IT Operating technologies to deliver operations
the right investment to enable model to enable strategic & agile and business value aligned to
operation excellence and digital business decisions. business priorities and company
transformation. strategy.
IT as a strategic partner of business.
Empower our people with
Align IT employee skills with new integrated data and analytics by
digital technology capabilities and building our data foundation to
competencies. deliver data insight and predictions
in supporting portfolio decisions.
CYBERSECURITY
Our progress in 2024 was anchored on the four key pillars • We successfully launched the first batch of the Data
of the Digital IT, each playing a critical role in shaping a Science Academy, equipping domain engineers
more resilient, agile, and future-ready IT landscape: with Artificial Intelligence (AI) and Machine Learning
(ML) capabilities and transforming them into AI/ML
a. Strengthening our digital foundation: champions.
• We successfully upgraded our data centre and • We expanded automation and efficiency through AI/
disaster recovery infrastructure, enhancing system ML-driven solutions, robotic process automation, and
resilience and operational continuity. mobile applications, streamlining operations and
• We optimised the end-user computing environment, decision-making.
ensuring a seamless and efficient digital workplace.
• We launched an Application Rationalization Initiative d. Strengthening our cybersecurity:
to streamline and modernise IT systems, reducing • We enhanced the Security Operations Centre (SOC),
complexity and improving performance. integrating advanced monitoring and response
capabilities to proactively detect, manage, and
b. Establishing a new digital operating model: neutralise cyber threats.
• We implemented a Demand and Portfolio • We established a Computer Security Incident
Management Process to enhance governance, Response Team (CSIRT) in collaboration with
prioritise IT investments, and maximise business Indonesia’s National Cyber and Crypto Agency (BSSN),
value. reinforcing national cybersecurity partnerships.
• We achieved ISO 27001:2022 Information Security • We strengthened security protocols for legacy
Management System & ISO 20000-1:2018 Information Industrial Control Systems (ICS), ensuring robust
Technology – Service Management certifications for protection against cyber risks in critical infrastructure
critical IT services, reinforcing our commitment to
industry-leading standards in information security
and IT service management. These achievements mark a significant milestone in our
digital transformation journey that strengthen operational
c. Driving digital transformation across the business: efficiency, cybersecurity, and technological innovations
• We developed and implemented Integrated throughout the organisation.
Business Planning (IBP) solutions with best-practice
data governance, optimising upstream planning
processes.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
155
Page 159
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Alignment of Sustainability Initiatives
with the UN SDGs
The following table maps MedcoEnergi’s sustainability initiatives to empower our people compared with the UN SDG
targets. These initiatives only highlight MedcoEnergi’s efforts – they do not reflect the targets or achievements of the host
countries themselves.
UN SDGs Relevant UN SDGs Targets1 Key Initiatives
4.3
• Educational scholarships
• Employee Engagement Surveys (EES)
• Leadership and technical capability development programmes
• Medco Leadership Behaviours (MLB)
• Medco Subsurface Academy (MSA)
• Medco Senior Leadership Development Programme (MSDLP)
5.1, 5.5
• Collective Labour Agreements (CLAs)
• HR policies and guidelines
8.2, 8.5, 8.6, 8.8 • Leadership and technical capability development programmes
• Talent mobilisation
• Contractor Compliance and Performance Monitoring
• Benefit alignments
10.2, 10.3 • Salary grade entitlements
13.3 • Climate-related capability building programmes and initiatives
• CLAs
16.b
• Industrial relations engagements with labour unions
1 The targets can be found in UN SGDs website (https://sdgs.un.org/)
156 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 160
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Action Plans
The following action plans will enable us to meet our objectives and continue empowering our people. We regularly
measure, monitor and report on our progress and performance and match them against these actions. The progress
report of these action plans refers to the 2023 - 2027 Sustainability Road Map.
Category Short Term Actions Medium-Long Term Actions Status
Talent Attraction, Medco Senior Leadership Development Programme (MSLDP)
Development and
Retention Complete the MSLDP Batch 2– Continuing the rollout of MSLDP Completed MSLDP program with
Learning through Creating Other Batch 2 INSEAD; conducted individual
Leaders coaching programs for Selected
Start implementing MSLDP Batch MSLDP participants (2 batches
Assess MSLDP Batch 3. for senior levels and 2 batches for
mid-levels).
Completed 360o survey with
MSLDP participants and project
sponsors (BOD).
Completed Module 1 in November
2024 in INSEAD Campus,
Singapore. Attended by 25 Senior
Leaders.
Medco Leadership Behaviors (MLB)
Expand awareness and Maintain and reinforce MLB Completed eighteen leadership
understanding of MLB in Medco awareness by continuously trainings as part of the MLB
Oil & Gas International and other embedding it into leadership campaign.
subsidiaries. assessments, development
programs, and organisational Released a management message
culture. video and monthly MLB sharing
experience (15 contents covering
MLB elements) on desktop
wallpaper, newsletters, and digital
signage.
Familiarised international and
other subsidiaries with MLB.
Updated MLB review process in
Performance Evaluations.
Incorporate MLB aspects in MLB has been included in
leadership assessments. leadership assessments.
Talent Development Framework (Talent Mapping & Succession Planning)
Continue Talent Monitoring Completed analyses of
for High Potential (HiPot) & consolidated talent development
successors. data for HiPot monitoring.
Implement comprehensive talent Senior levels Batch 3 and 4:
development programmes. Completed 360o feedback and
reports in August 2024. Completed
1st program evaluation in Q1.
Completed evaluations with Chief
Administrative Officer in October
2024. Completed post coaching
evaluations for Batch 3 and 4 in
November 2024.
Middle Level: Completed program
briefs and individual & group
coaching with Prasetiya Mulya.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
157
Page 161
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Category Short Term Actions Medium-Long Term Actions Status
Talent Attraction, Technical and Operational Competency Management
Development and
Retention Identify, assess, and address Oil & Gas:
current gaps with core matrices Completed a training needs
to support energy transition analysis based on the results
initiatives in: of technical competency
• Oil & Gas assessments.
• Power
Medco Subsurface Academy
(MSA) :
• Completed Subsurface
Academy Cadre-3
Power:
Completed the climate change
online training for MPE, EPE, MPSI
Riau, MRPR and MGS
Published the Podcast GAIA
(Green Ambassador for Inclusive
Climate Action)
Set up development plans for Oil & Gas:
critical roles at technical functions Completed knowledge sharing
to support energy transition forums facilitated by experts in
initiatives and implement the waste heat to power generation
programmes in: using Organic Rankine Cycle
• Oil & Gas (ORC) technology.
• Power
Sent 4 representatives to the
Indonesia International Hydrogen
Summit 2024
Power:
The human development plans
for critical roles in the technical
function will be part of a
collaboration with GIZ, which
announced the project to MPI
with approval from the German
Federal Ministry for Economic
Cooperation and Development
(BMZ)
Implement development plans to Continue implementing technical Oil & Gas:
fill the gaps in: training1 as outlined in the Completed several sessions
• Oil & Gas development plans to address skill of knowledge sharing forums
• Power gaps. facilitated by experts in both
internal and external subjects.
Completed several technical
trainings.
Completed certification
process and obtained Engineer
Registration Letter issued by The
Institution of Engineers Indonesia
for up to 75 prioritised engineers.
Power:
Awarded scholarships to 3
employees for an ITB Geothermal
Master’s Degree.
Evaluate deliverables of technical Monitored participants’ leadership
capability programs. acts through daily interactions,
meetings and behaviours to
ensure alignment with Medco
Leadership Behaviors (MLB)
1 This training covers various topics, including the Thermoelectric Generator System and Battery Energy Storage System (BESS). Sessions are facilitated by both internal and
external providers, with participants from TCMS as well as domestic and international assets.
158 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 162
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Category Short Term Actions Medium-Long Term Actions Status
Talent Attraction, Operational Competency & Learning Management System
Development and
Retention Oil & Gas: Oil & Gas:
Successfully deliver operations Assessed approximately 149
competency assessments in E&P technicians at Onshore Asset and
Indonesia. East Java and 160 supervisors
across all assets.
Deliver 100% government
certifications for operations Certified 5,472 man-trained
personnel in E&P Indonesia. personnel.
Deliver Offshore Operations up- Defined elective disciplines
skilling programs. for operators, mechanical,
instruments, and electrical.
Develop Job Performance Profiles
(JPP) for all operations field Completed Phase #1 with 10
personnel. positions filled.
Power: Power:
Continue evaluating all operational Sarulla Geothermal:
competencies. Established final directory
competencies for PLTP and shared
with the asset’s HR Team.
TJBPS:
Completed the summary of
assessment results for operators &
technicians.
Employee Engagement Survey (EES)
Implement action plans to Progress is being made with the Conducted focused group
translate feedback into concrete corporate-wide action plans. discussions on culture and career
actions and strategic initiatives. development to ensure the action
plans are validated and aligned.
Completed six female employee
engagement sessions, attended
by 43 participants from various
entities, assets, functions, and
levels (senior managers, managers,
and professionals).
Mapped and uploaded the TDC
Code for Business Support to the
HR System.
Completed both the Leaders’ and
Learning & Development Forums.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
159
Page 163
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Appendix
2024 Awards
Award Awarder Description
Medco Energi Internasional (MEI)
MEI received the Most Acclaimed
Company Award 2024 with an
Most Acclaimed Companies Award 2024 Warta Ekonomi
Outstanding Exploration Initiative to
Enhance Production.
MEI was honoured with the Deal of the
Year 2024 award in recognition of the
Deal of the Year 2024 Award Asia Pacific Energy Capital Assembly strategic acquisition of participation rights
in Oman Block 48 and Block 60 from
Oman Oil (OQ) Company.
MEI received the 2024 Best Corporate
Transparency and Emissions Reduction
2024 Best Corporate Transparency and Investortrust, in collaboration with Bumi Award, earning a Green Elite title for
Emissions Reduction Award Global Karbon Foundation (BGKF) emissions reduction transparency and a
Gold Plus title for disclosure of emission
calculations.
MEI’s Sustainability Report received an A
rating in the 2022 Sustainability Reports
A rating on 2022 Sustainability Reports
FIHRRST and Moores Rowland Indonesia Study of all Indonesian public companies,
Study
conducted by FIHRRST and Moores
Rowland Indonesia.
MEI received the “Outstanding
Outstanding Achievement to Clean Energy CNBC Indonesia & National Young Achievement in Clean Energy Transition”
Transition Entrepreneur Volunteers (REPNAS) award at the 2024 REPNAS National
Conference & Awarding Night.
MEI received the Wealth Creator award in
the Large Market Capitalisation category
SWA Media Group and Stern Value
Wealth Added Index (WAI) 2024 Award at Indonesia's Best Public Companies,
Management
recognising its contribution in generating
positive added value for shareholders.
MEI received the following recognitions:
'Ruby' (Index Score 75–84) in Integrity/
Anti-Corruption, 'Diamond' (85–100) in
both Business and Human Rights and
Indeks Integritas Bisnis Lestari 2024 / 2024 Transparency International Indonesia in Environmental Aspects, and 'Ruby' in
Sustainable Business Integrity Index collaboration with TEMPO Data Science the Total Index. These awards reflect
MedcoEnergi’s integration of anti-
corruption principles, respect for human
rights, and commitment to ecosystem
sustainability.
Medco Oil & Gas
Medco E&P Indonesia received four
awards: Best Local Content Achievement,
Best Compliance in Data Management,
Assurance and Consulting Excellence,
and Best Achievement in Revenue
Optimization & Cost Behaviour.
2024 SKK Migas Award SKK Migas
Medco E&P Grissik was recognised with
two awards: Best Performance in Financial
Management and Best Onshore Project
Performance.
Medco E&P Natuna received the award for
Best Offshore Project Performance.
160 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 164
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Award Awarder Description
Medco E&P Malaka received the Serambi
Award 2024 in the “Awaken the Spirit
Serambi Awards 2024 Serambi Indonesia of Achieving Opportunities” category,
recognising its active role in fostering
human resources in the mining area.
Medco E&P Tomori Sulawesi Joint
Operating Body (JOB Tomori) was awarded
for its achievement in operating the
Senoro Central Processing Plant (CPP) in
Banggai Regency without work accidents,
The Ministry of Manpower of the Republic under SKK Migas supervision.
Zero Accident Award 2024
of Indonesia (KEMNAKER RI)
Medco E&P Malaka received the Zero
Accident Award for achieving 4,405,206
accident-free working hours since
November 1, 2020.
Ricko Adlyana Putra, an employee of JOB
Patra Prakasa Ministry of Energy and Mineral Resources
Tomori, received the Patra Prakasa award.
Patra Nirbhaya Karya Utama Adinugraha
I was awarded for JOB Tomori's
Patra Nirbhaya Karya Utama Adinugraha I Ministry of Energy and Mineral Resources
achievement of 46 million safe working
hours since the last LTI in 2014.
Medco E&P Malaka received a Blue rating
in the 2023 Corporate Performance Rating
Blue PROPER Award Ministry of Environment and Forestry Program in Environmental Management
(PROPER), recognising its commitment to
environmental management practices.
Medco E&P Sampang Pty received a
"Very Good" rating in the Oil & Gas Safety
Gas Safety Management System (SMKM) Management System (SMKM) assessment,
Ministry of Energy and Mineral Resources
Assessment which aims to enhance safety, reliability,
and efficiency in upstream oil and gas
installations and equipment.
Medco E&P proudly secured eight awards
across various categories, highlighting
Patra Nirbhaya Karya Ministry of Energy and Mineral Resources
its ongoing commitment to safety and
innovation.
Medco E&P Thailand (Bualuang) received
the Sustainability Disclosure Recognition
Sustainability Disclosure Award Thaipat Institute 2024 for the third consecutive year,
recognising its comprehensive, credible,
and transparent sustainability disclosures.
Medco E&P Tomori Sulawesi JOB won
an award from Indonesia's Ministry of
Energy and Mineral Resources for Energy
Malam Apresiasi Kinerja Stakeholder
Ministry of Energy and Mineral Resources Efficiency, ranking in the top five for Best
EBTKE
Energy Management and receiving a
special innovation award for its Hot Oil
Heater reliability project in Senoro Field.
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
161
Page 165
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Award Awarder Description
Medco E&P Block A received the
Supply Chain Management (SCM)
2024 KPI 1st rank for excellence in
Key Performance Indicator Supply Chain
SKK Migas procurement, customs management,
Management (KPI SCM) Award
asset management, and national capacity
& Domestic Component Level (Tingkat
Kandungan Dalam Negeri/TKDN).
Medco Power
Medco Ratch Power Riau (MRPR)
received a prestigious star-4 rating for its
Top CSR Award 2024 Top Business Magazine
implementation of CSR initiatives in the
area surrounding its operational plant.
Medco Power Indonesia was recognised
for consistently developing a clean
and renewable energy portfolio as an
Tribun Digital Award 2024 Tribun Pekanbaru Independent Power Producer. Energi
Listrik Batam also received the Excellent
Service Award in the Energy Supply Chain
Company category.
Medco Cahaya Geothermal (MCG) received
the Environmental Social Safeguard Award
Environmental Social Safeguard Award PT Sarana Multi Infrastruktur (Persero) (PT for its effective implementation of the
2024 SMI) environment and social management
Corrective Action Plan for the Ijen
Geothermal Power Plant project.
Medco Power Indonesia, through
its subsidiary PT. TJB Power Services
(TJBPS), won the ASEAN Arrow Award
ASEAN Red Ribbon for Outstanding ASEAN Business Coalition on HIV and AIDS for Outstanding Workplace, recognising
Workplace (ARROW) Award 2024 (ASEAN BCA) its strong commitment to implementing
policies and programs for the prevention
and control of HIV and AIDS in the
workplace.
Mitra Energi Batam and Medco
The Ministry of Manpower of the Republic
Zero Accident Award 2024 Geothermal Sarulla were recognised for
of Indonesia (KEMNAKER RI)
achieving zero accidents.
MCG was recognised for excellence
in Occupational Safety, Health, and
EBTKE Award Ministry of Energy and Mineral Resources Geothermal Engineering in the non-
operating company category for renewable
energy and conservation.
162 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 166
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
OJK Sustainability Reporting Standards and
Requirements (SEOJK No. 16/2021)
No. Topic No. Disclosure Page
A Corporate sustainability strategy A.1 Explanation of the sustainability strategy 34-45
B.1 Economic aspect 16
B Summary of sustainability performance B.2 Environmental aspect 17
B.3 Social aspect 18
C.1 Vision, mission, and sustainability values 25
C.2 Company’s address Back Cover
C.3 “Scale of business” 22, 28, 150-151
C Summary of company profile C.4 Products, services, and business activities conducted 22
C.5 Association memberships 46
Not
C.6 Significant changes to the company
Applicable
D Letter from Board/Director(s) D.1 Letter from the Board/Director(s) 8-12
Responsibility for the implementation of sustainable
E.1 40-41, 52
finance/operations
Competency development pertaining to sustainable 55, 57, 62-63,
E.2
finance/operations 71, 152-155
E Sustainability governance Risk assessment on the implementation of sustainable
E.3 43-44
finance/operations
E.4 Stakeholder relations 44-45
Issues on implementation of sustainable finance/ Not
E.5
operations Applicable
34, 40-41,
43-44, 50-53,
59,70, 92-95,
F.1 Initiatives in building a culture of sustainability
104-105, 112-
113, 128, 142-
144, 150, 152
Economic Performance
Economic comparison of production targets and
F.2 performance portfolio, financing target, or investment, 16, 31
income and profit/loss
Economic comparison of target and portfolio
performance, financing target, or investments in Not
F.3
financial instruments or projects relating to sustainable Applicable
F Sustainability performance operations
Environmental Performance
F4 Environmental cost 102, 132
Material Aspect
F.5 Use of environmentally-friendly materials 96-98
Energy aspect
F.6 Amount and intensity of energy usage 80
Efforts and initiatives for energy efficiency and
F.7 81-86
renewable energy
Water aspect
F.8 Water usage 99-101
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
163
Page 167
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
No. Topic No. Disclosure Page
Biodiversity aspect
Impacts of operations near or within a conservation
F.9 101-103
area/areas rich in biodiversity
F.10 Initiatives for biodiversity conservation 101-103
Emission aspect
F.11 Amount and intensity of emissions produced by type 78-79
F.12 Initiatives and achievements for emission reduction 76-77
Waste and effluent aspect
F.13 Amount of waste and effluent produced by type 97-98
F.14 Waste and effluent management mechanism 96-98
F.15 Spills that occurred (if any) 98-99
Complaints regarding the environment aspect
Number and material of environmental complaints
F.16 92
received and resolve
Social performance
Commitment in providing services on products and/or Not
F.17
equivalent services to consumers Applicable
Employment aspect
F Sustainability performance F.18 Equal employee opportunity 150
F.19 Child labour and forced labour 29, 150
F.20 Regional minimum wage 150
F.21 Decent and safe working environment 150
F.22 Employee capabilities training 153-155
Community aspect
F.23 Impact of operations on surrounding communities 128-147
F.24 Public complaints 60
Corporate environmental and social responsibility
F.25 128-147
initiatives (related to UN SDGs)
Responsibility for the development of sustainable products and services
Innovation and development of sustainable products Not
F.26
and services Applicable
Products and services that have been evaluated for Not
F.27
customer safety Applicable
F.28 Impacts of products and services 92-94
Not
F.29 Number of products recalled
Applicable
Customer satisfaction survey on sustainable products Not
F.30
and services Applicable
Written verification from an independent
G G.1 Written verification from an independent party (if any) 3
party
Feedback
H Feedback form H.1 Feedback form
form
Not
I.1 Responses to the previous year's report feedback
Applicable
Responses to the previous year's report
I List of disclosures according to Circular Letter of
feedback
I.2 Financial Service Authority Regulations (OJK) Number 163-164
51/POJK.03/2017
164 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 168
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Singapore Exchange (SGX) Index
SGX Primary Component Index
No. Primary Component Page Reference
1 Material ESG factors 35-36
2 Climate-related disclosures consistent with the TCFD recommendations 70-89, 2024 GRI Performance Data pages 13-25
34-46, 50-63, 70-86, 92-105, 112-122, 128-142, 150-155,
3 Policies, practices and performance
2024 GRI Performance Data pages 2-60
4 Targets 31, 64-67, 70, 87-89, 107-108, 123-125, 145-147, 157-159
5 Sustainability reporting framework 3, 39, 64, 72, 87, 106, 122, 143-144, 156, 163-164
Board statement and associated governance structure for sustainability
6 8-12, 40-41, 52
practices
SGX Core ESG Metrics Index
Core ESG Metrics set in SGX Disclosure Location Reason of non-disclosure
Environmental
Absolute emissions by:
a) Total 77-79 -
78-79, 2024 GRI Performance
b) Scope 1, Scope 2 Data pages 16-19, 21-22, 23-24, -
25
79, 2024 GRI Performance
c) Scope 3, if appropriate -
Data pages 19-20, 22, 24, 25
Greenhouse gas emissions Emissions intensities by:
78, 2024 GRI Performance
a) Total -
Data pages 20, 22, 25
2024 GRI Performance Data
b) Scope 1, Scope 2 -
pages 20, 22, 25
Disclosed only for Scope 1 and
c) Scope 3, if appropriate - Scope 1 & 2 GHG Emissions
Intensity
80, 2024 GRI Performance
Total energy consumption -
Data pages 13-16
Energy consumption
80, 2024 GRI Performance
Energy consumption intensity -
Data pages 14, 15
Total water consumption 99 -
Water consumption
Water consumption intensity 100 -
Waste generation Total waste generated 97-98 -
Social
150, 2024 GRI Performance
Current employees by gender -
Data pages 49, 50
Gender diversity
2024 GRI Performance Data
New hires and turnover by gender -
pages 52-55
151, 2024 GRI Performance
Current employees by age groups -
Data page 60
Age-based Diversity
New hires and turnover by age 2024 GRI Performance Data
-
groups pages 52, 54
2024 GRI Performance Data
Total turnover -
pages 64-65
Employment
150, 151, 2024 GRI Performance
Total number of employees -
Data pages 49-50
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
165
Page 169
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
Core ESG Metrics set in SGX Disclosure Location Reason of non-disclosure
Average training hours per
154 -
employee
Development & Training
Average training hours per
154 -
employee by gender
117, 2024 GRI Performance
Fatalities -
Data pages 27, 28
2024 GRI Performance Data
High-consequence injuries -
pages 27, 28
Occupational Health & Safety
117, 2024 GRI Performance
Recordable injuries -
Data pages 27, 28
Recordable work-related ill health 117, 2024 GRI Performance
-
cases Data pages 27, 28
Governance
2024 Annual Report
Board independence -
Board Composition pages 94, 98
Women on the Board 150 -
Management Diversity Women in the management team 150 -
50-67, 2024 GRI Performance
Anti-corruption disclosures -
Data pages 10-11
Ethical Behaviour 54-55, 57, 62-63,
Anti-corruption training for
2024 GRI Performance Data -
employees
pages 10-11
Certifications List of relevant certifications 61, 95, 121, 155 -
Alignment with frameworks and 3, 39, 64, 72, 87, 106, 122, 143-
Alignment with Frameworks -
disclosure practices 144, 156, 163-164
Assurance Assurance of Sustainability Report 3 -
166 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 170
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
Acronym and Abbreviations
3R Reduce, Reuse, and Recycle CAPEX Capital Expenditures
A&IC Audit and Integrity Compliance CCRA Climate Change Risk Assessment
A&OI Asset and Operating Integrity CCS Carbon Capture and Storage
ABC Anti-Bribery and Corruption CCUS Carbon Capture, Utilization and Storage
ABMS Anti-Bribery Management System CCWG Climate Change Working Group
ACE Assurance and Consulting Excellence Formerly the Carbon Disclosure Project, an
international non-profit organisation that
AET Acoustic Emission Testing CDP
helps companies and cities disclose their
environmental impact
AGMS Annual General Meeting of Shareholders
Corporate Ethics and Compliance
AI Artificial Intelligence CECC
Committee
AI Asset Integrity
CEO Chief Executive Officer
ALARP As Low As Reasonably Practicable
CFO Chief Financial Officer
Environmental Impact Assessment (Analisis
AMDAL CH4 Methane
Mengenai Dampak Lingkungan Hidup)
CHSEMS Contractor HSE Management System
AML Anti-Money Laundering
CIP Climate Impact Platform
AMMN PT Amman Mineral Internasional Tbk
CIVD Central Integrated Vendor Database
API American Petroleum Institute
CLA Collective Labour Agreement
Indonesian Employers Association (Asosiasi
APINDO
Pengusaha Indonesia) CMT Crisis Management Team
Hydropower Plant Developers Association CO2e Carbon dioxide equivalent
APPLTA (Asosiasi Pengembang Pembangkit Listrik
Tenaga Air) CoC Code of Conduct
APS Announced Pledges Scenario COD Commercial Operation Date
Hazardous and toxic materials (Bahan CoI Conflict of Interest
B3
Berbahaya dan Beracun)
COO Chief Operating Officer
BAT Best Available Technologies
29th Conference of the Parties to the United
COP29
bbls Barrels Nations Climate Change Conference 2024
BCMS Business Continuity Management System CPP Central Processing Plant
BCP Business Continuation Plans Contractor’s Statement of Ethical
CSEC
Compliance
BCS Business Continuity Standard
CSIRT Computer Security Incident Response Team
BJI PT Bio Jatropha Indonesia
CST Corridor Storage Tanker
Natural Resources Conservation Agency
BKSDA
(Balai Konservasi Sumber Daya Alam) CSR Corporate Social Responsibility
German Federal Ministry for Economic Corporate Sustainability and Risk
BMZ CSRM
Cooperation and Development Management
BNEF Bloomberg New Energy F CSMS Contractor Safety Management System
BOC Board of Commissioners D-2 Diploma-2 Degree
BOD Board of Directors DAS Watershed area (Daerah Aliran Sungai)
BOE Barrel of Oil Equivalent DD Due Diligence
BPM Business Process Management DEB PT Dalle Energy Batam
BSP Bulan Solar Project German Development Cooperation Public-
develoPPP.de
Private Partnership programme
BSR Business for Social Responsibility
DIT Digital Information Technology
Indonesia’s National Cyber and Crypto
BSSN
Agency (Badan Siber dan Sandi Negara) E&P Exploration and Production
Village-Owned Enterprises (Badan Usaha ECC Ethics & Compliance Committee
BUMDes
Milik Desa)
EES Employee Engagement Survey
BYOT Bring Your Own Tumbler
EHO East Hub Operation
CAO Chief Administrative Officer
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
167
Page 171
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
ELB PT Energi Listrik Batam HRIA Human Rights Impact Assessment
ELO Ethics Liaison Officer HRDD Human Rights Due Diligence
EMS Environmental Management System HRGS Human Resources & General Services
EMT Emergency Management Team HRP Human Rights Policy
EP Equator Principles HSE Health, Safety, and Environment
EPC Engineering, Procurement and Construction Health Safety and Environment
HSEMS
Management System
ERM Enterprise Risk Management
Indonesian Business Council for Sustainable
ERT Emergency Response Team IBCSD
Development
Ministry of Energy and Mineral Resources IBP Integrated Business Planning
ESDM
(Energi dan Sumber Daya Mineral)
Indonesia Carbon Capture and Storage
ESG Environmental, Social, and Governance ICCSC
Center
Environmental, Social, and Health Impact ICS Industrial Control System
ESHIA
Assessment
ICSA Indonesia Corporate Secretary Association
ETWG Energy Transition Working Group
IDR Indonesian Rupiah
EV Electric Vehicle
IDX Indonesia Stock Exchange
EVCU Electric Vehicle Charging Unit
IESG Industry Environmental Safety Group
Indonesian Environmental Impact
FAI
Assessment Forum IFC International Finance Corporation
FGD Focus Group Discussions IFRS International Financial Reporting Standards
FID Final Investment Decision International Financial Reporting Standards
IFRS S2
– Climate-related Disclosures Standard (S2)
FLIR Forward-Looking Infrared
Improvement Inventory of Hazardous
Sub-district Leadership Coordination IH3M
Material for Material Management
FORKOPIMCAM Forums (Forum Koordinasi Pimpinan
Kecamatan) Indonesia International Geothermal
IIGCE
Conference and Exhibition
District leadership coordination forums
FORKOPMIDA
(Forum Komunikasi Pimpinan Daerah) ILI In-Line Inspection
FPIC Free, Prior and Informed Consent ILO International Labour Organisation
FPSO Floating Production Storage and Offloading IMT Incident Management Team
FV Field Verification INAGA Indonesian Geothermal Association
GAIA Growth and Innovation Academy European Institute of Business
INSEAD Administration (Institut Européen
GCG Good Corporate Governance d'Administration des Affaires)
Anti-Corruption Movement (Gerakan Anti Indonesian Solar Panel Industry and
GeRAK INSPIRA
Korupsi) Renewable Alliance
GHG Greenhouse Gas International Association of Oil & Gas
IOGP
Producers
Deutsche Gesellschaft für Internationale
GIZ
Zusammenarbeit IPA Indonesia Petroleum Association
GJ Gigajoules Indonesian Petroleum Association Ethics
IPA ECC
and Compliance Committee
GOI Government of Indonesia
IPP Independent Power Producer
GRI Global Reporting Initiative
IRF Industrial Relations Forum
GS General Services
IRIS Internal Rotary Inspection System
GWh Gigawatt hour
ISF Indonesia International Sustainability Forum
HAZID Hazard Identification
International Organisation for
HAZOP(S) Hazard and Operability (Study) ISO
Standardisation
HE Heat Exchanger
IT Information Technology
HL Protected Forest (Hutan Lindung)
ITB Institut Teknologi Bandung
HOA Head of Agreement
International Union for Conservation of
IUCN
Limited Production Forest (Hutan Produksi Nature
HPT
Terbatas)
Jabanusa Jawa Bali Nusa Tenggara
HR Human Resources
JOB Joint Operating Body
HRA Human Rights Assessment
JPP Job Performance Profile
168 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 172
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
JPT Just Transition Plans MPI Medco Power Indonesia
JRC Jakarta Respiratory Centre MPMA Medco Project Management Academy
JSA Job Safety Analysis MPSI PT Medco Power Servis Indonesia
Indonesian Chamber of Commerce and MRPR PT Medco Ratch Power Riau
KADIN
Industry (Kamar Dagang dan Industri)
MSA Medco Subsurface Academy
Contractor Partnership (Kontraktor Kontrak
KKKS MSCI Morgan Stanley Capital International
Kerja Sama)
Ministry of Environment and Forestry, Medco Senior Leadership Development
MSLDP
KLHK Indonesia (Kementerian Lingkungan Hidup Program
dan Kehutanan)
MSME Micro, Small, and Medium-sized Enterprise
Indonesia’s National Human Rights
MSMS Medco Security Management System
Komnas HAM Commission (Komisi Nasional Hak Asasi
Manusia) MTBL Medco Tanah Bumbu Listrik
KPI Key Performance Indicator MTBL Medco Thailand (Bualuang) Ltd
KSF Karim Small Fields MW Megawatt
Port Operator Unit Office (Kantor Unit MWh Megawatt-hour
KUPP
Penyelenggara Pelabuhan)
NbS Nature-based Solutions
KWp Kilowatt peak
NDC Nationally Determined Contribution
Women Farmer Group (Kelompok Wanita
KWT
Tani) NGO Non-governmental organisation
KYC Know-Your-Customer O&M Operation & Maintenance
LCT Low-Carbon Transition OA Operability Assurance
Village Forest Management Institution OE Operational Excellence
LDPHD
(Lembaga Desa Pengelola Hutan Desa)
Operations Excellence and Optimisation
OEON
LED Light Emitting Diode Network
LSR Life-Saving Rules OEM Original Equipment Manufacturer
LTI Lost Time Incident OGMP Oil and Gas Methane Partnership
LTIR Lost Time Incident Rate OHIH Occupational Health Industrial Hygiene
LTP Long-Term Plan OHS Occupational Health and Safety
m3 Cubic metre Occupational Health and Safety Assessment
OHSAS
Series
MedcoEnergi Business Apprentice
MBAP
Programme Financial Services Authority (Otoritas Jasa
OJK
Keuangan)
MBOEPD Million Barrels of Oil Equivalent Per Day
OPEX Operating Expenditure
MCG PT Medco Cahaya Geothermal
ORC Organic Rankine Cycle
MCU Managed Compliance Unit
OSCT Oil Spill Combat Team
MEB PT Mitra Energi Batam
OSRE Oil Spill Response Equipment
MEI Medco Energi Indonesia
OSRL Oil Spill Response Limited
MEMR Ministry of Energy and Mineral Resources
OT Operational Technology
MEPI PT Medco E&P Indonesia
Our Code MedcoEnergi’s Code of Conduct
MERP Medical Emergency Response Plan
P2P Procure-to-Pay
MKI Indonesian Electrical Power Society
Sustainable Yard Use for Food (Pemanfaatan
ML Machine Learning P3L
Pekarangan untuk Pangan Lestari)
MLB Medco Leadership Behaviors PDCA Plan-Do-Check-Adjust
MLLC Medco Limited Liability Company PDO Petroleum Development Oman
MMSCFD Million Standard Cubic Feet per Day PDP Personal Data Protection
MoEF Ministry of Environment and Forestry Indonesia Public Relations Association
PERHUMAS (Perhimpunan Hubungan Masyarakat
MOU Memorandum of Understanding
Indonesia)
MPE PT Multidaya Prima Elektrindo
Geothermal Power Plant (Pembangkit
PLTP
MPEP Medco Project Excellence Process Listrik Tenaga Panas Bumi)
MPES Medco Power Energi Services Solar Power Plant (Pembangkit Listrik
PLTS
Tenaga Surya)
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
169
Page 173
Messages from Our Year About Our Approach Pursuing Excellence Realising Our Climate
Management in Summary MedcoEnergi to Sustainability in Our Governance Aspirations
PMS Performance Management System Safety Critical Element Abnormal Risk
SCEARA
Assessment
POD Plan of Development
SCM Supply Chain Management
Tourism Awareness Group (Kelompok Sadar
Pokdarwis
Wisata) SDGs Sustainable Development Goals
Integrated Health Services Centre (Pos SEP Stakeholder Engagement Plan
Posyandu
Pelayanan Terpadu)
SIEW Singapore International Energy Week
Pos Gizi Nutrition Shelter
Environmental Feasibility Decree (Surat
SKKL
Forest Area Usage Approval (Persetujuan Keputusan Kelayakan Lingkungan)
PPKH
Penggunaan Kawasan Hutan)
Special Task Force for Upstream Oil & Gas
PPP PT Pembangkitan Pusaka Parahiangan Business Activities (Satuan Kerja Khusus
SKK Migas
Pelaksana Kegiatan Usaha Hulu Minyak dan
Government Employee with Work Gas Bumi)
PPPK Agreement (Pegawai Pemerintah dengan
Perjanjian Kerja) SME Small and Medium Enterprise
Indonesian Tuberculosis Eradication Safety Management System for the
PPTI Association (Perkumpulan Pemberantasan SMKM Oil & Gas Industry (Sistem Manajemen
Tuberkulosis Indonesia) Keselamatan Migas)
Performance Rating Program in SMP Security Management Plan
PROPER
Environmental Management
SMS Social Management System
PSC Production Sharing Contract
SoA Statement of Adherence
PSE Process Safety Events
SOC Security Operations Centre
psig Pounds per Square Inch Gauge
Continuous Wastewater Quality Online
Limited Liability Company (Perseroan Monitoring (Sistem Pemantauan Kualitas Air
PT SPARING
Terbatas) Limbah secara Terus Menerus dan Dalam
Jaringan)
PTS Personnel Transportation Solutions
SPOF Single Point of Failure
PV Photovoltaic
SQR Service Quality Review
PWT Produced Water Treatment
SRM Sustainability Roadmap Medco
QOGI Quantitative Optical Gas Imaging
Sustainability and Risk Management
QPR Quarterly Performance Review SRMC
Committee
QRA Quantitative Risk Assessment SROI Social Return on Investment
RAM Reliability, Availability, and Maintainability SSB South Sumatra Block
Risk Assessment Process Tool for SSR South Sumatra Region
RAPTOR
Operational Risk
STEPS Stated Policies Scenario
RBI Risk-Based Inspection
STP Sewage Treatment Plant
R&S Relations and Security
STPI Stop TB Partnership Indonesia
RCC Regional Collaboration Centres
Women and Children Empowerment
REC Renewable Energy Certificate SUAR Centre (Rumah Pemberdayaan Ibu dan
Anak)
Environmental Management and
Monitoring Plan (Rencana Pengelolaan SWC Start Work Check
RKL-RPL
Lingkungan Hidup – Rencana Pemantauan
Lingkungan Hidup) TB Tuberculosis
ROV Remotely Operated Vehicle Task Force on Climate-related Financial
TCFD
Disclosures
ROW Right of Way
Technical Competency Management
Women and Children Empowerment House TCMS
RPIA System
(Rumah Permberdayaan Ibu dan Anak)
tCO2e Metric tons of carbon dioxide equivalent
RWP Respectful Workplace Program
TDC Talent Development Code
S$ Singapore Dollar
TDC Technical Development Committee
S-1 Bachelor’s Degree (Strata-1)
TII Transparency International Indonesia
IFRS Sustainability Disclosure Standards 1
S1 & S2
and 2 TJBPS PT Tanjung Jati B Power Services
Aceh Anti-Corruption School (Sekolah Anti Local Content Requirement in Indonesia
SAKA TKDN
Korupsi Aceh) (Tingkat Komponen Dalam Negeri)
SCE Safety Critical Elements TLV Threshold Limit Value
TOE Ton of Oil Equivalent
170 PT Medco Energi Internasional Tbk • 2024 Sustainability Report
Page 174
Enhancing our Environmental Advancing our Health Creating Opportunities Empowering our People
& Social Safeguards and Safety Culture for Communities and Digital Transformation
TOX Thermal Oxidiser
Taskforce on Nature-related Financial
TNFD
Disclosures
TRIR Total Recordable Injury Rate
TTX Tabletop Exercise
UDHR Universal Declaration of Human Rights
Provincial minimum wage (Upah Minimum
UMP
Provinsi)
UN United Nations
United Nations Sustainable Development
UN SDGs
Goals
United Nations Framework Convention on
UNFCCC
Climate Change
UNGC United Nations Global Compact
UNGP United Nations Guiding Principles
Community Rubber Feedstock Treatment
UPPB and Marketing Unit (Unit Pengolahan dan
Pemasaran Bahan Olah Karet Rakyat)
United States Trade and Development
US TDA
Agency
USD US Dollar
USGPM US Gallons Per Minute
USM Ultrasonic Meter
VP Vice President
Voluntary Principles on Security and Human
VPSHR
Rights
World Business Council for Sustainable
WBCSD
Development
WBS Whistleblowing System
WHP Wellhead Platform
WNC West Natuna Consortium
WRI World Resources Institute
WWTP Wastewater Treatment Plants
PT Medco Energi Internasional Tbk • 2024 Sustainability Report
171
Page 175
This page is intentionally left blank
Page 176
Feedback Form This Sustainability Report provides an overview of MedcoEnergi’s 2024 sustainability performance. We look forward to receiving suggestions for improvement from our stakeholders. Please share your feedback and/or comments about this Sustainability Report by completing this feedback form and returning to us by e-mail, fax, or mail. Stakeholder Group Shareholders Employee Partners Government & Regulator Bank & Investor Community Customer Media Others, please specify __________________ Please choose the most appropriate answer(s) to the questions below: Yes No This report is useful to you This report describes the Company’s performance in sustainability development Please rate the following material aspects based on the level of importance according to your view of MedcoEnergi’s sustainability performance (score 1 = most important to 17 = least important). • Workplace health, safety, and wellbeing ( ) • Climate Risk and Resilience ( ) • Water ( ) • Asset Integrity & Security ( ) • Human Rights ( ) • Responsible Procurement Practices ( ) • Security Practices ( ) • Climate Mitigation ( ) • Air Quality ( ) • Local Communities ( ) • Stakeholder Engagements ( ) • Talent Attraction, Retention, and Development ( ) • Climate Adaptation ( ) • Effluents and Waste ( ) • Anti-Corruption & Business Ethics ( ) • Policy & Regulatory Environment ( ) • Others, please specify ______________________________________________ ( ) Please provide suggestions/comments for this report: _________________________________________________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Thank you for your participation. Kindly send this feedback form to the following address: PT Medco Energi Internasional Tbk Attn: Investor Relations The Energy Building 53rd Floor SCBD Lot 11A Jl. Jend. Sudirman, Jakarta 12190 Indonesia P. +62-21 2995 3000 F. +62-21 2995 3001 Email: investor.relations@medcoenergi.com
Names mentioned 50 people and organisations named in the text · linked when the evidence is strong
unresolved
org
PT Axioma Grafis Indonesia All Rights Reserved. Publisher
p.3
unresolved
org
ESG Research LLC
p.4
unresolved
org
Neither Morningstar Inc.
p.4
unresolved
org
PSS
p.6 ×11
unresolved
org
EY Limited
p.6
unresolved
org
Purwantono
p.6
unresolved
org
Young Global Limited
p.6
unresolved
org
Indonesia Stock Exchange
p.25 ×2
unresolved
org
PT Amman Mineral Nusa
p.25
unresolved
org
Bitexco Energy Company Ltd.
p.25
unresolved
org
Medco Energi Bangkanai Ltd
p.27
unresolved
org
PT Medco Cahaya Geothermal
p.27
unresolved
org
Pengelola Migas Aceh
p.33
unresolved
person
Leads
· President Director
p.43 ×2
unresolved
org
Ministry of Law and Human Rights
p.46
unresolved
org
Ministry of Energy and Mineral Resources
p.47
unresolved
—
Why engagement matters
p.48 ×4
unresolved
org
It maintains transparency and trust with
p.48
unresolved
org
Vendors and Business Partners
p.48
unresolved
—
It builds sustainable and responsible supply chain
p.48
unresolved
—
NGO
p.48
unresolved
—
It ensures environmental, social and governance
p.48
unresolved
—
Key areas of mutual interest
p.48 ×2
unresolved
—
Academia
p.48
unresolved
org
It advances research and industry knowledge.
p.48
unresolved
org
PT Medco Lematang
p.61
unresolved
org
PT Tanjung Jati Power
p.61
unresolved
org
PT Bio Jatropha Indonesia
p.61
unresolved
org
Sarulla Operations Ltd
p.61
unresolved
org
PT Energi Prima
p.61
unresolved
org
PT Multidaya Prima
p.61
unresolved
org
PT Medco Medco Ratch Power
p.61
unresolved
org
PT Medco Medco Power Servis
p.61
unresolved
org
PT Tanjung Jati Batam
p.61
unresolved
org
P Natuna Ltd.
p.62
unresolved
org
Bauluang Ltd.
p.62
unresolved
org
Medco Oman LLC
p.62
unresolved
org
PT Deloitte Advis
p.63
unresolved
org
PT Medco E
p.64
unresolved
org
Ministry of Manpower
p.65
Extraction attempts how the parser did, and what it refused
Nothing structured was extracted from this document — the attempts below say why.
No extraction attempted yet.
Other files in this announcement 14
ESG2024-MEDC.pdf
done