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NAVIGATING THE TRANSITION,
STRENGTHENING FOUNDATIONS
SUSTAINABILITY REPORT 2024
IMPACT (Indika Energy Mangrove Program in Action)
Bai Jaya Village, Paser, East Kalimantan
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NAVIGATING THE TRANSITION,
COVER STORY
STRENGTHENING FOUNDATIONS
SUSTAINABILITY REPORT 2024
Our cover highlights one of Indika Energy’s flagship initiatives, IMPACT (Indika Energy
Mangrove Program in Action), which demonstrates our commitment to sustainability.
This program aims to plant over 275,000 mangrove trees across 250 hectares, contributing
to climate resilience, coastal protection, and ecosystem restoration. Beyond promoting
environmental and forest conservation, IMPACT also safeguards local biodiversity by
IMPACT (Indika Energy Mangrove Program in Action)
Bai Jaya Village, Paser, East Kalimantan
providing vital habitats for various species, including the Bekantan (proboscis monkey,
Nasalis larvatus), an endangered species listed on the IUCN Red List, in Bai Jaya Village.
At Indika Energy, we are committed to navigating the Indika Energy is moving beyond pledges and promises,
transition toward a sustainable future while strengthening transitioning into action with initiatives that are reshaping
the foundations that drive long-term progress. Our the energy landscape. From scaling up our renewable energy
transformative approach is designed not only to enhance projects to implementing carbon reduction technologies,
industries but also to create lasting, positive impacts on we are committed to minimizing our environmental
communities. By integrating sustainability into every aspect footprint. Throughout it all, we are investing in empowering
of our operations, we are making measurable contributions local communities, ensuring that our progress toward
to environmental, social, and economic development. sustainability also benefits those who need it most.
As we chart our path toward net-zero emissions, we are focused Our focus on innovation, along with our drive to integrate
on creating tangible results that reflect our responsibility sustainability into every facet of our operations, positions Indika
to both the planet and future generations. Through Energy as a leader in the transition to a sustainable future. By
innovative and impactful strategies, we are accelerating our combining renewable energy, carbon reduction, and community
journey toward climate-positive outcomes, ensuring that empowerment, we are not just aiming for net zero, but building
every step we take has a meaningful, long-term effect. a future where people and the planet thrive together.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
NAVIGATING THE TRANSITION,
STRENGTHENING FOUNDATIONS
SUSTAINABILITY REPORT 2024
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SUSTAI NABI LI TY REP O RT 2 0 2 4
LETTER FROM
OUR PRESIDENT DIRECTOR
O U R A C H I E V E M E N T S T H I S Y E A R A R E A T E S TA M E N T TO O U R
FOC U S E D E F FO RT S . T H E S E I N C LU D E I N V E S T M E N T S I N G R E E N
T E C H N O LOG I E S , I N I T I AT I V E S TO R E D U C E E M I S S I O N S , A N D
P R OG R A M S T H AT E N H A N C E E N V I R O N M E N TA L R E S I L I E N C E W H I L E
CO N T R I B U T I N G TO S OC I A L W E L L - B E I N G .
As we reflect on 2024, we are proud to share the progress that market conditions. Following our March 2024 bond issuance and
Indika Energy has made in advancing our mission to create a persistently favorable market prices for coal, we recognized the
more sustainable, innovative, and inclusive future for all. This year need for a recalibration of our mid-term goal and moved quickly
has been marked by significant milestones and challenges that to adapt. That means that our commitment to reducing reliance
have tested our resolve, proved our adaptability, and reaffirmed on coal remains as firm as ever, while we have adjusted our target
our commitment to long-term value creation for Indonesia and timeline for transitioning to non-coal sectors from 2025 to 2028.
beyond. This recalibration ensures we have the financial stability necessary
as we continue to scale new business initiatives.
COMMITMENT TO SUSTAINABILITY Other challenges we have had to navigate include the growth
Sustainability is a cornerstone of Indika Energy’s strategy, and we trajectory of the electric vehicle (EV) ecosystem in Indonesia.
remain aligned with Indonesia’s national targets to achieve net- ALVA, our electric motorcycle subsidiary, is playing a key role in
zero greenhouse gas emissions by 2060. In 2024, we demonstrated Indonesia’s transition to electric mobility by focusing on factors
leadership in balancing energy security with the clean energy that influence EV adoption, including pricing strategies, and
transition — a delicate yet critical equilibrium in a rapidly evolving working towards expanding the charging ecosystem. KALISTA,
global energy landscape. our subsidiary providing comprehensive support for businesses
transitioning to EV solutions, has shown remarkable progress,
Our achievements this year are a testament to our focused efforts. deploying 60 buses for Medan and 26 buses for Jakarta’s Bus Rapid
These include investments in green technologies, initiatives to Transit system to bolster urban public transportation. KALISTA’s
reduce emissions, and programs that enhance environmental commitment extends beyond public transportation, with logistics
resilience while contributing to social well-being. Through these and mining commercial EV fleets. These buses, along with
actions, we aim to drive meaningful progress toward a cleaner and KALISTA’s commercial EV fleets, are crucial steps toward reducing
more sustainable future for Indonesia and the world. carbon emissions and aligning with Indonesia’s sustainable
mobility goals.
A YEAR OF INFLECTIONS …
Another initiative where we continued to pursue progress is the
Our mid- and long-term goals have always been clear: to achieve at
Masmindo gold mine. Although landslides caused delays in the
least 50% of revenue from our non-coal streams as we transition to
Masmindo project, we remain committed to ensuring safety and
a low-carbon business model, and to achieve net-zero emissions by
efficiency as we work toward overcoming these challenges.
2050. This year, our business strategy evolved to adapt to dynamic
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I N 2024, W E R E D U C E D S CO P E 1 A N D 2 E M I S S I O N S BY
24%, TO 914,519 TO N S O F CO 2 E Q CO M PA R E D TO T H E
2020 B A S E L I N E K E E P I N G U S O N T R AC K O F O U R 2025
TA R G E T. O U R R E A S S E S S M E N T M A D E T H E S E GOA L S
E V E N M O R E A M B I T I O U S , E X PA N D I N G B O U N DA R I E S TO
I N C LU D E N E W B U S I N E S S E S A N D S T R E N GT H E N I N G
O U R E S G CO M M I T M E N T S FO R G R E AT E R I M PACT.
As we continue to scale our non-coal initiatives, they are Our IMPACT initiative (Indika Energy Mangrove Program in Action)
proving instrumental in advancing sustainability-focused goals, is dedicated to environmental conservation, focusing on the
demonstrating our capability to deliver both environmental and restoration of mangrove ecosystems across 7 villages in Paser, East
social impacts. Kalimantan. This initiative addresses climate change, supports
biodiversity, and provides protection for coastal communities.
Until 2024, we successfully planted more than 186,700 mangroves
… AND OF PROGRESS
across over 155 hectares. The program not only sequesters carbon
While diversification and divestment reduce carbon intensity, — approximately 2,533.8 tons of CO2eq annually once mature —
transitioning is not always straightforward when energizing a but also supports local biodiversity, including migratory birds and
nation. That is why decarbonization remains key. At Indika Energy, marine life. Beyond environmental benefits, the initiative actively
we continuously refine and innovate decarbonization efforts. We engages communities, creating opportunities for sustainable
have expanded solar power usage across our operational sites, livelihoods through ecotourism and mangrove-related activities.
including Interport Business Park, with a capacity of 635.47 GJ, Our long-term commitment to expanding this program aims to
and consume B35 biofuel, which contains a 35% blend of palm oil further bolster coastal ecosystem resilience and contribute to
derivative, marking an improvement from the B30 biofuel used achieving net-zero emissions by 2050.
previously, steadily reducing emissions across operations.
In the same spirit of responsible ecosystem stewardship, 2024 saw
We made substantial advances in addressing our largest emission the continued growth of Indika Nature, our dedicated subsidiary
sources and pushing forward initiatives that positively impact that advances nature-based solutions such as agroforestry,
communities and ecosystems. Mobile combustion from Kideco’s forest restoration, carbon offsetting, and biomass production
fleet accounts for 72% of its total emissions. To address this, we commissioning. These initiatives not only contribute to carbon
initiated trials with electric dump trucks to reduce operational sequestration but also empower local communities by building
emissions, expecting to lower operational emissions by more alternative livelihoods through the sustainable use of non-timber
than 20% compared to current levels. A shift to the cleaner- forest products. On biomass production, in particular, Indika
burning B35 biodiesel across our heavy equipment fleet yielded Nature is leveraging genome sequencing and traceability systems
even more progress on reducing emissions. Elsewhere across the to enhance wood pellet output for export, supporting renewable
Group, efforts to support EV adoption were strengthened through energy solutions around the world and sustainable forestry
ALVA and KALISTA, with both of these EV subsidiaries expanding practices at home.
their operations through partnerships, fleet enhancements, and
innovative solutions. Childhood stunting was an issue that gained prominence during
the 2024 presidential election and later served as the driving force
In 2024, we reduced Scope 1 and 2 emissions by 24%, to 914,519 behind the new government’s school meals program. At Indika
tons of CO2eq compared to the 2020 baseline keeping us on track Energy Group, tackling stunting is a mission we have waged for
of our 2025 target. Our reassessment made these goals even more years, particularly in Paser Regency, East Kalimantan, in an effort
ambitious, expanding boundaries to include new businesses to support the government’s campaign of bringing the childhood
and strengthening our ESG commitments for greater impact. stunting rate to under 14% by the end of 2024. Through our
Beyond decarbonization, we are also integrating our social CANTING (Cegah dan Tangani Stunting) program, we targeted
programs to drive holistic, long-term sustainability, ensuring 14 villages with a series of initiatives, including awareness
that our environmental progress goes hand in hand with positive programs, upskill training for more than 300 local health cadres,
community outcomes. and nutritional support for affected children. These interventions
led to a reduction in stunting prevalence from 18.29% to 8.82%
aligning with Indonesia’s goal to reduce stunting to 14% by 2024.
P T I N D I K A E N E R GY T B K .
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DELIVERING VALUE WE ARE NOT DONE YET
At the core of our achievements is the dedication of our workforce. Sustainability is not merely a goal but an ongoing journey that
Our 3,864 employees of Indika Energy Group exemplify our values requires collaboration, innovation, and unwavering commitment.
of unity, integrity, excellence, agility, and social responsibility. Together, we are building a future that balances economic growth
These values guide every decision, ensuring that we not only with environmental stewardship and social equity.
deliver operational excellence but also contribute meaningfully to
the communities and environments we serve. As we look ahead, we remain optimistic and resolute in our
determination to drive meaningful change for Indonesia and
Safety, our non-negotiable priority, has been a focal point this year. the world. Indika Energy is committed to leaving a legacy of
We are deeply saddened to report the loss of one of our employees sustainability and progress for generations to come.
in a work-related accident at our operations during 2024 — a
somber reminder of the importance of safety in all aspects To our employees, partners, and stakeholders: thank you for your
of our work. In response, we have launched comprehensive invaluable contributions and trust in Indika Energy’s mission. It is
investigations, reinforced safety protocols, and enhanced training through your tireless dedication that we have come so far in such
programs to build a zero-harm culture across our operations. a short time. And as we eye the journey still to come, I know and I
trust that together we can rededicate ourselves to this most noble
To ensure we remain agile and effective, we conducted a of missions.
comprehensive review of our Standard Operating Procedures
(SOPs) in 2024, aligning them with evolving business needs and
the highest industry standards. This proactive approach reflects
our commitment to excellence and ensures we consistently meet M. Arsjad Rasjid P. M.
the demands of a changing world. President Director
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TABLE OF CONTENTS
Letter from our President Director 5
Integrating ESG Excellence and Financial Strength 9
2024 Sustainability performance and key highlights 10
2024 Financial highlights and key highlights 14
Advancing economic growth and sustainable communities 14
Chapter 1: Our Sustainability Framework and Pathway to Net Zero 19
About this report and our data boundaries 21
Reporting timeline and standards 21
Our standards and policies 21
External assurance 22
Engaging stakeholders in our sustainability efforts 22
Materiality topics for sustainability reporting 22
Restatement of information 31
Chapter 2: Sustainability at Indika Energy 35
Living by our values 39
Sustainability at the core 39
Our portfolio 45
Building resilience by aligning our portfolio with robust risk management 49
Embedding sustainability into our activities 55
Aligning with SDGs and external commitments: A collective effort toward sustainable impact 61
Chapter 3: Driving the Transition to Net Zero with Innovation and Climate Action 67
Shifting from traditional energy sources to cleaner, more sustainable alternatives 69
Providing carbon-free power 75
Pathway to balancing environmental impact, economic growth, and community prosperity 77
Driving climate action at Indika Energy 81
Reducing greenhouse gas emissions 83
Innovation and resilience 87
Integrating sustainability across the Indika Energy Group 89
Chapter 4: Environmental Stewardship: Respecting and Preserving Nature 93
Our approach of respecting nature 95
Protecting biodiversity and ecosystems 97
Conserving water resources 103
Managing waste through circular economic practices 105
Improving air quality 107
P T I N D I K A E N E R GY T B K .
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Chapter 5: Social Impact: Empowering Communities and Powering Lives 113
Empowering our people for a sustainable future 115
Industrial Relations: Building a workforce for energy transition 117
Embedding diversity, equity, and inclusion in our culture 119
Talent acquisition and retention 123
Developing the right skills for a sustainable future 127
Ensuring safety 131
Sustainable supply chain 135
Human rights and grievance mechanism 137
Respecting indigenous heritage and sustainability 139
Energizing Indonesia 141
Chapter 6: Governance: Ensuring Integrity and Accountability 155
Corporate governance: Upholding integrity and transparency 157
Business ethics: Driving ethical practices in every action 163
Additional Information 168
BOC BOD statement 167
Assurance statement 168
Glossary 172
Global Reporting Initiative (GRI) Content Index 175
World Economic Forum Stakeholder Capitalism Metric (WEF SCM) Index 185
United Nations of Global Compact (UNGC) Index 186
Appendix 187
Contact us 200
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Indika Nature manages over 82,000 hectares of land, with the potential to absorb up to 8 million tons of CO2eq in the next 10 years —supporting long-term climate and ecosystem resilience.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
INTEGRATING ESG EXCELLENCE
AND FINANCIAL STRENGTH
In 2024, Indika Energy Group stayed true to its mission of making In 2024, Indika Energy Group continued its commitment to
sustainability a core part of everything we do. By taking meaningful embedding sustainability at the core of its business operations,
steps across our Environmental, Social and Governance (ESG) demonstrating measurable progress across Environmental, Social,
efforts, we made real progress that we are proud to share. Whether and Governance (ESG) pillars. Through strategic initiatives, robust
it was through forward-thinking initiatives, strong financial financial performance, and alignment with global standards,
performance, or aligning with global sustainability standards, we reinforced our role as a catalyst for sustainable growth in
we strengthened our role as a driving force for positive change in Indonesia and beyond. [GRI 2-6, 201-1, 2-27]
Indonesia and beyond. [GRI 3-3, 2-27]
This aligns with our carbon footprint mapping across the
value chain and business processes, ensuring we have a clear
understanding of where to direct our efforts, which will guide our
pathway to net zero. [GRI 305-1]
SCOPE 1&2 GHG EMISSIONS PROJECTIONS
in kt CO2eq Historical scope 1&2 emissions
1,203 1,201 Projection of scope 1&2 emissions
1,161 Carbon offsets (Illustrative)
1,030 915 2025 Target 2030 Target
Path to net-zero emissions by 2050
INDIKA ENERGY
903 ktCO2eq
806 ktCO2eq
NET-ZERO By 2025,
ROADMAP
we will reduce
our emissions By 2030,
by 25% we will 2050 Ambition
reduce Net-Zero Emissions
our emissions
by 33%
2020 2021 2022 2023 2024 2025 2030
2050
Emissions in 2024
BUILDING FOUNDATION STRENGTHENING PRACTICES ACCELERATING GROWTH
Scope 1&2 GHG Emissions
(kt CO2eq) Supporting energy Reducing carbon footprint of We cater the nation’s strategic
915 transition our operations necessities to enable
2020 (baseline) 1,203 Investing in low-carbon Implementing digital sustainable development while
economy technology in mining taking care for the environment
operations and making positive di�ference
Divesting coal-related to the society
Scope 1&2 GHG Emissions
Intensity assets Investing in EVs and
(ton CO2eq / ton coal electrification of equipment BY 2050, WE EXPECT TO BE
NET ZERO
production) Partnering to reduce the
0.029 carbon footprint across
our value chains
Installing solar PV and
battery storage system
2020 (baseline) 0.033
Measuring scope 3
emissions Adopting the use of B40
diesel
Developing carbon
reduction program with Conducting reclamation
contractors
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2024 ESG PERFORMANCE
We hit important milestones in 2024 in reducing carbon On the social front, we invested IDR 71.99 billion in community
emissions, growing our renewable energy adoption, and development programs that improved access to education,
protecting biodiversity. From expanding electric vehicle use in healthcare, and economic opportunities. Our efforts to create
our operations, advancing electric mobility solutions through jobs, provide skills training, and prioritize local hiring emphasized
KALISTA, and boosting biomass production with Indika Nature, diversity and long-term empowerment for the communities we
we are making solid progress toward a greener energy future. [GRI serve. [GRI 413-1, 203-2, 404-2]
305-5, 302-1, 302-4,304-2]
We also kept transparency and accountability at the heart of our
governance, and strengthening our systems to meet ESG best
practices and stakeholder expectations. [GRI 201-1, 2-23, 2-27].
ENVIRONMENTAL
SCOPE 1 SCOPE 1
AND 2 EMISSIONS AND 2 EMISSIONS INTENSITY
24.00% relative to 2020 baseline 52.84% relative to 2020 baseline 13.58% relative to 2020 baseline
Target: Reduce scope 1 and 2 Target: Reduce scope 1 and 2 Target: Reduce scope 1 and 2
emissions by 25% in 2025 and by 33% emissions intensity per revenue by 50% emissions intensity per ton coal
in 2030 in 2025 and by 55% in 2030 production by 10% in 2025 and by 25%
in 2030
SCOPE 1 AND 2 EMISSIONS SCOPE 1 AND 2 EMISSIONS INTENSITY SCOPE 1 AND 2 EMISSIONS INTENSITY
(TONCO2EQ) PER REVENUE PER TON COAL PRODUCTION
(TONCO2EQ/USD MILLION REVENUE) (TONCO2EQ/TON COAL PRODUCTION)
11.21% 10.58% 8.00%
Graphic of 3 years performance: Graphic of 3 years performance: Graphic of 3 years performance:
2024 2023 2022
2024 2023 2022
2024 2023 2022
914,519 11.21% 374 10.58% 0.029 8.00%
1,030,009 11.26% 338 23.36% 0.031 6.90%
1,863,524
1,160,762 274 0.029
ENERGY WASTE
MANAGEMENT MANAGEMENT
34.02% 58.74%
Target: Increase % renewable energy Target: Divert 40% of waste from
share in the energy consumption mix to landfill by 2025 and 45% by 2030
30% by 2025 and to 35% by 2030
ENERGY CONSUMPTION RENEWABLE ENERGY SHARE WASTE DIVERTED
(GIGAJOULE) (%) (%)
7.28% 1.93% 26.88%
Graphic of 3 years performance: Graphic of 3 years performance: Graphic of 3 years performance:
2024 2023 2022
2024 2023 2022
2024 2023 2022
13,717,269 7.28% 34.02 1.93% 58.74 26.88%
14,794,645 4.01% 33.37 15.45% 46.30 6.12%
15,413,456 27.75 43.62
P T I N D I K A E N E R GY T B K .
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WATER LAND AND
MANAGEMENT BIODIVERSITY
61.78% relative to 2020 baseline 15.49%
Target: Reduce water withdrawal Target: Increase land reclamation area
intensity per revenue by 30% by 2025 by 20% by 2025
and by 32% by 2030
relative to 2020 baseline
WATER WITHDRAWAL WATER WITHDRAWAL INTENSITY LAND RECLAMATION
(ML) (ML/USD MILLION REVENUE) (HECTARE)
28.27% 10.80% 5,234.48
Graphic of 3 years performance: Graphic of 3 years performance: Graphic of 3 years performance:
2024 2023 2022
2024 2023 2022
2024 2023 2022
2,029.77 28.27% 0.830 10.80% 5,234.48
2,829.71 42.20% 0.930 18.42% 5,879.42
4,896.11 1.140 5,655.42
SOCIAL
LOCAL
COMMUNITIES
2.97%
Target: 1% EBIT spent on community
development every year
COMMUNITY INVESTMENT SPENDING COMMUNITY DEVELOPMENT
(% OF EBIT) (LIVES IMPACTED)
2.97% 394,165
Graphic of 3 years performance: Graphic of 3 years performance:
2024 2023 2022
2024 2023 2022
2.97 394,165
1.45 400,533
0.38 265,318
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HEALTH
AND SAFETY
One employee fatality
zero contractor fatality
Target: Zero fatalities every year for
employees and contractors
EMPLOYEE FATALITIES AT MANAGED CONTRACTOR FATALITIES AT MANAGED
OPERATIONS OPERATIONS
(LIVES) (LIVES)
1 fatality 0 fatality
Graphic of 3 years performance: Graphic of 3 years performance:
2024 2023 2022
2024 2023 2022
1 0
0 2
0 1
DIVERSITY
AND INCLUSION
20.19% 11.19%
Target: 20% women in workforce Target: 15% women in senior
by 2025 and 25% by 2030 management by 2025 and 20% by 2030
WOMEN IN WORKFORCE WOMEN IN SENIOR MANAGEMENT
(%) (%)
7.66% 4.21%
Graphic of 3 years performance: Graphic of 3 years performance:
2024 2023 2022
2024 2023 2022
20.19 7.66% 11.19 4.21%
18.75 1.73% 11.68 16.39%
19.08 13.97
P T I N D I K A E N E R GY T B K .
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GOVERNANCE
CORPORATE
BUSINESS ETHICS GOVERNANCE
Currently in progress to be
100% 96.70% communicated across
all business units.
Target: 80% of employees attend the Target: 100% of board members attend
code of business conduct (COBC) code of business conduct (COBC) Target: 30% (by weight) of board &
training by 2025 and 100% by 2030 training by 2025 and 2030 senior management evaluation KPIs
tied to ESG topics by 2025
NUMBER OF EMPLOYEES ATTEND NUMBER OF BOARD MEMBERS ATTEND
COBC TRAINING COBC TRAINING
(%) (%)
100% 96.70%
Graphic of 3 years performance: Graphic of 3 years performance:
2024 2023
2024 2023
3,864 100% 88 96.70%
2,070 57.83% 86 100%
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2024 FINANCIAL PERFORMANCE ECONOMIC VALUE GENERATED AND DISTRIBUTED
Amid evolving market challenges, Indika Energy Group achieved In 2024, Indika Energy Group delivered a net profit of USD 10.1
a net profit of USD 10.1 million in 2024, highlighting the resilience million, reflecting the resilience of our operations. The economic
of our diversified portfolio. This performance allowed us to value generated was responsibly shared across stakeholders, with
reinvest in sustainability programs and innovation, driving long- a focus on employment, procurement, and tax contributions, all
term value for all stakeholders. Through these efforts, Indika of which align with Indonesia’s national development goals. [GRI
Energy continues to demonstrate that sustainability and financial 201-1]
performance go hand in hand, proving that we can deliver results
while building a better future. [GRI 201-1] We contributed USD 607.1 million in taxes and royalties,
supporting state financing and infrastructure development.
REVENUE OPERATING COST (GENERAL GROSS PROFIT
(USD MILLION) AND ADMIN EXPENSE) (USD MILLION)
(USD MILLION)
19.17% 27.18% 39.73%
Graphic of 3 years performance: Graphic of 3 years performance: Graphic of 3 years performance:
2024 2023 2022
2024 2023 2022
2024 2023 2022
2,446.68 19.17% 174.60 27.18% 332.69 39.73%
3,026.84 30.18% 239.78 0.39% 551.98 61.95%
4,334.91 240.73 1,450.81
CORE PROFIT ADJUSTED EBITDA NET PROFIT
(USD MILLION) (USD MILLION) (USD MILLION)
86.11% 34.64% 91.58%
Graphic of 3 years performance: Graphic of 3 years performance: Graphic of 3 years performance:
2024 2023 2022
2024 2023 2022
2024 2023 2022
20.26 86.11% 258.27 34.64% 10.08 91.58%
145.83 72.02% 395.13 69.59% 119.68 73.56%
521.20 1,299.19 452.68
*) Core profit is defined as the current year's
profit attributable to the owners of the
company, excluding (1) amortization of
intangible assets arising from the acquisition
of subsidiaries, (2) gains and losses on
investment and divestment of subsidiaries,
and (3) unrealized gains or losses on
investments made by Indika Energy Group.
ADVANCING ECONOMIC GROWTH AND This includes payments such as employee income tax, corporate
SUSTAINABLE COMMUNITIES income tax, value-added tax, royalties, and land & building tax,
as well as accurate and timely regulatory submissions [GRI 207-1].
At Indika Energy Group, the energy we produce fuels Indonesia’s
economic growth and improves the lives of its people. By powering Notably, while the government offers subsidies to encourage the
industries and communities, our work contributes meaningfully adoption of electric vehicles (EVs), including ALVA motorcycles,
to economic and social well-being, both nationally and locally. Indika Energy does not receive direct financial assistance under
Whether through job creation, procurement, taxes, or community this scheme [GRI 201-4].
initiatives, we strive to generate lasting value across our operations
and along our value chain. Our approach emphasizes building
self-reliant, resilient and diversified local economies ensuring that INDIRECT ECONOMIC IMPACTS
communities can continue to thrive even as market conditions
EMPLOYMENT
change and evolve.
Job creation is central to our economic impact. In 2024, we directly
and indirectly employed 3,864 individuals, with 26.89% of our
workforce hired locally. We partnered with local governments,
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
education authorities, and community representatives to INDIKA ENERGY’S GLOBAL COMMITMENT TO
offer skill development programs, apprenticeships, and other SUSTAINABILITY: ADVANCING CLIMATE ACTION
education initiatives. These efforts not only address skills gaps but THROUGH COLLABORATION
also empower individuals, generate tax revenues, and promote Indika Energy continues to play a leading role in domestic,
social and economic mobility. [202-2, 404-2] regional, and international forums, driving the conversation on
sustainability and energy transition. In 2024, we actively engaged
LOCAL PROCUREMENT in key global summits, reinforcing our commitment to achieving
We prioritize working with local suppliers to bolster local net-zero emissions by 2050 while fostering partnerships for
economies, reduce costs, and create job opportunities. In areas sustainable solutions.
where local businesses face challenges, we provide business
At COP29 held in Baku, Azerbaijan, from 11th to 22nd November
training and mentorship to help them grow, meet ESG standards,
2024, Indika Energy and Indika Nature underscored their
and become competitive. This approach not only strengthens
dedication to tackling climate change by promoting nature-
local businesses and economies but also aligns with government
based solutions and renewable energy investments. This global
developmental objectives. [204-1]
platform provided an opportunity to exchange insights on climate
initiatives, expand networks with international stakeholders, and
COMMUNITY DEVELOPMENT explore potential collaborations in the sustainable energy sector.
Our community development programs are designed to build
As part of the Indonesian Delegation, Indika Energy and Indika
self-reliant and prosperous communities. In 2024, we invested
Nature contributed to the Indonesia Pavilion, leading discussions
over IDR 71.99 billion in initiatives that promote improved access
and showcasing initiatives aligned with national sustainability
to education, healthcare, and environmental conservation.
goals. A key highlight was the CEO Climate Talks, led by Indonesia’s
Additionally, we helped enhance financial independence by
Ministry of Environment and Forestry, where Retina Rosabai,
offering skills training and creating new business opportunities
Director and Group Chief Financial Officer of Indika Energy, spoke
for local communities [GRI 203-2].
on “Enhancing Ambition on Renewable Energy.” In her session,
“Navigating the Uncharted Path Towards Sustainability,” Retina
INFRASTRUCTURE DEVELOPMENT outlined Indika Energy’s strategic framework, “We embrace a 3D
Operating in remote regions allows us to leave a lasting approach—Diversification, Divestment, and Decarbonization—
positive impact by improving local infrastructure. In 2024, we to shape Indika Energy’s future. This involves divesting from
upgraded access to clean water, roads, bridges, and electricity, coal-related assets, expanding into renewable energy through
benefiting local communities. These investments in physical ventures like Indika Nature, and committing to decarbonization
and social infrastructure directly enhance the quality of life and to achieve net-zero by 2050.”
create pathways to long-term growth and poverty eradication.
Recognizing the importance of sustainable transportation, we are
also actively supporting Indonesia’s electric vehicle transition. Our
contributions to developing the EV ecosystem include establishing
charging stations [GRI 203-2].
MARKET CONTRIBUTION
Through our subsidiary, Kideco Jaya Agung, we contributed to
Indonesia’s energy security by producing 30.73 million metric
tons of coal in 2024. We surpassed the 25% Domestic Market
Obligation (DMO), allocating 35.74% of our production for the Indika Nature also took center stage in the “Harmonizing the
domestic market. Additionally, our exports to countries such as Power of Nature and Tech: Forest Management Meets BECCS
China, South Korea and Japan reinforced our role as a trusted and in Climate Action” session. Leonardus Herwindo, CEO of Indika
reliable energy supplier, helping maintain energy stability in the Nature, presented “Innovating Beyond Biomass: Indika Nature’s
region [GRI 2-6, 201-2]. Role in Indonesia’s Renewable Future.” He highlighted the
company’s sustainable wood pellet production through its Energy
LOOKING AHEAD Plantation business. “By producing wood pellets sustainably, we
At Indika Energy Group, we are committed to creating shared strive to support decarbonization and reduce emissions. We aspire
value for all stakeholders by balancing economic performance to foster collaboration among all stakeholders to drive the growth
with sustainability. As we continue to focus on renewable energy, of the green business sector in Indonesia, laying the foundation
innovative solutions like electric vehicles, and building community for a brighter future for future generations.” [GRI2-17]
resilience, we aim to lead Indonesia’s transition to a sustainable Indika Energy Group participation in COP29 not only reaffirmed
future. By empowering people and investing in local economies, their commitment to sustainability but also opened doors for
we are shaping a better tomorrow for the communities we serve innovation and cross-sector collaboration. Through concrete
and the world at large. [3-3] actions and a shared vision, Indika Energy Group remains at the
forefront of global climate solutions, working towards a greener,
more sustainable, and inclusive future.
15
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EMITS and Interport installed a 635.47 GJ solar PV system at Interport Business Park, reinforcing our commitment to clean energy and sustainability.
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CHAPTER 1 OUR SUSTAINABILITY FRAMEWORK AND PATHWAY TO NET ZERO
Page 22
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SUSTAI NABI LI TY REP O RT 2 0 2 4
ABOUT THIS REPORT
AND OUR DATA BOUNDARIES
AT I N D I K A E N E R GY G R O U P, W E U N D E R S TA N D T H AT LO N G -T E R M
BUSINESS SUCCESS IS ABOUT MORE THAN JUST FINANCIAL
R E S U LT S — I T I S A B O U T T H E P O S I T I V E A N D L A S T I N G I M PACT W E
C R E AT E FO R T H E E N V I R O N M E N T, S OC I E T Y, A N D GOV E R N A N C E .
T H E S E E N V I R O N M E N TA L , S OC I A L , A N D G OV E R N A N C E ( E S G )
P R I O R I T I E S FO R M T H E FO U N DAT I O N O F O U R S U S TA I N A B I L I T Y
J O U R N E Y. T H AT I S W H Y W E A R E D E D I CAT E D TO P R OV I D I N G
A T R A N S PA R E N T A N D D E TA I L E D AC CO U N T O F O U R E S G
CO M M I T M E N T S A N D P R OG R E S S I N T H I S A N N U A L S U S TA I N A B I L I T Y
R E P O RT. [ G R I 2-3]
Through this report, we focus on the ESG topics most relevant REPORTING TIMELINE AND STANDARDS
to Indika Energy Group, carefully identified through extensive Unless otherwise stated, the ESG disclosures contained in this
consultations with our internal teams and external stakeholders. report pertain to the period from 1 January to 31 December 2024.
By doing so, we aim to align our efforts with the expectations of Where relevant, we have supplemented the data and information
those we serve while contributing to a more sustainable future. for 2023 to provide more context. We are committed to publishing
[GRI 3-1, 3-2] our Sustainability Report on an annual basis. [GRI 2-3]
Unless otherwise stated, the financial and non-financial data
presented in this report—covering environmental, social, OUR STANDARDS AND POLICIES
and governance aspects—are sourced from Indika Energy This Sustainability Report was prepared in accordance with
subsidiaries in which we hold more than 50% ownership and have POJK No. 51/POJK.03/2017, the Global Reporting Initiative (GRI)
management control. [GRI 2-2] These subsidiaries include: 2021 [GRI 1] and Core Metrics of the WEF Stakeholder Capitalism
Metrics. The content of this Report is also aligned with the United
⚫ PT Kideco Jaya Agung (Kideco)
Nations’ Sustainable Development Goals (SDGs) and the Ten
⚫ PT Indika Indonesia Resources (IIR) Principles of the United Nations Global Compact (UNGC).
⚫ PT Tripatra Engineering and PT Tripatra Engineers and
Constructors (Tripatra) Indika Energy is a signatory to the principles of the United Nations
Global Compact (UNGC), and this Sustainability Report outlines
⚫ PT Interport Mandiri Utama (Interport)
our support for its development objectives and our work on
⚫ PT Masmindo Dwi Area (Masmindo) implementing the UNGC’s 10 principles. [GRI 102-12]
⚫ PT Mekko Metal Mining (Mekko)
At the start of 2022, we committed to incorporating the World
⚫ PT Indika Multi Properti (Indika Nature)
Economic Forum (WEF) Stakeholder Capitalism Metrics (SCM)
⚫ PT Ilectra Motor Group (ALVA) into our ESG reporting, demonstrating our endeavors to increase
⚫ PT Kalista Nusa Armada (KALISTA) transparency and accountability. [GRI 102-13]
⚫ PT Energi Makmur Buana (INVI)
⚫ PT Xapiens Teknologi Indonesia (Xapiens)
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22
EXTERNAL ASSURANCE ⚫ Dependency: Individuals or groups that depend on our
We have engaged SGS Indonesia which has independently activities, either directly or indirectly.
assured this Sustainability Report’s GRI compliance. The details ⚫ Responsibility: Individuals or groups to whom we have
of assurance engagement can be found in the Independent legal, commercial, or ethical obligations.
Assurance Report on page 168. [GRI 2-5] ⚫ Tension: Stakeholders who need immediate attention
related to social, economic, or environmental matters.
ENGAGING STAKEHOLDERS IN OUR ⚫ Influence: Individuals or groups that shape our strategies,
SUSTAINABILITY EFFORTS policies, or influence other stakeholders.
As a global company, we work closely with a diverse range of ⚫ Diverse perspectives: Groups or individuals with differing
partners and stakeholders. Our methods and frequency of views that can lead to new actions or influence outcomes.
engagement vary to suit different needs and contexts, using The following table provides an overview of our partner and
both formal and informal channels to understand diverse views stakeholder groups, their range of interests and how we engage
and gather valuable insights. We engage at all levels—local, with them.
national, regional, and international—through various activities,
including multi-stakeholder discussions. Stakeholder feedback We value your input and encourage you to share your comments
is an important part of our decision-making, helping us improve or questions about this report and our sustainability efforts.
how we operate and the results that we deliver. By fostering Please feel free to contact us at sustainability@indikaenergy.co.id.
transparent and constructive relationships, we aim to strengthen [GRI 2-3]
our performance and create a positive impact both locally and
globally. [GRI 2-26]
MATERIALITY TOPICS FOR SUSTAINABILITY
In line with the 2015 AA1000 Stakeholder Engagement Standard, REPORTING
we categorize our stakeholders into five groups: [GRI 2-29]
ANNUAL SUSTAINABILITY MATERIALITY ASSESSMENT
COMMUNICATIONS
STAKEHOLDER INTEREST HOW WE ENGAGE
FREQUENCY
Customers
A broad customer Sales agreements, product Regular engagement Ad hoc meetings
base, geographically quality, performance according to commodity, Quarterly company updates
dispersed across multiple and price, environmental sector and geography to Annual reports.
commodities. laws and regulations, understand our customers’
sustainability metrics and needs and determine the
Customers are crucial for our performance, alignment optimal product placement;
business success, driving with regional regulations. participation in relevant
revenue, and shaping industry associations
our product offering and and conferences and
sustainability performance. establishing partnerships
and collaboration in areas
of mutual interest, such as
supply chain innovation
and sustainability.
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
COMMUNICATIONS
STAKEHOLDER INTEREST HOW WE ENGAGE
FREQUENCY
Employees
Our global workforce has Group financial and Regular communication Quarterly townhall meetings
more than 3.800 employees sustainability performance, through tailored internal Biweekly magazine
and contractors. health and safety, our work channels, which include Quarterly IEG CEO lunch
with communities, working our intranet, email and Biannual leaders’ insight
Employees are the conditions, mental health newsletters, town hall Annual leadership summit
backbone of our and wellbeing, inclusion meetings, safety talks, field Annual reports
operations, contributing to and diversity, development leadership activities, ongoing Ad hoc meetings and
productivity, innovation, and opportunities, proposed dialogue between leaders and socialization.
organizational culture. Their changes to our operated teams, as well engagement
well-being, development, and assets or practices. and perception surveys.
engagement are essential
for long-term success.
Governments where
we operate
National, regional or state Fiscal and tax arrangements, Direct Group engagement Ad hoc meetings
level and local governments global trade systems, labour at all levels of government, Regular meetings
in the countries where relations and employment as well as participation in Quarterly company updates
we have a presence. practices, supplier payment industry associations where Corporate disclosure
arrangements, environmental relevant to national (or Annual reports.
Governments shape laws, regulations and project international), regional/
regulatory frameworks approvals, mineral royalties, state or local issues.
that directly impact local infrastructure and
our operations, tax community wellbeing.
obligations, compliance,
and community relations.
Indigenous peoples
A broad spectrum of Environmental, social and Consultation, negotiation Ad hoc meetings
Indigenous representatives cultural impacts associated and agreement making Regular discussion forum .
including, community with our operated assets, processes, community
leaders and members, cultural heritage, human engagement, work and local
traditional owners and rights, opportunities for supply opportunities, social
representative bodies. social investment, local investment, preserving
employment, local suppliers cultural heritage, targeted
Indigenous people are and business creation, communications, community
key stakeholders in the improved community perception surveys.
communities where we engagement mechanisms and
operate. Respecting their environmental performance.
rights and cultures ensures
positive community
relationships and supports
sustainable development.
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COMMUNICATIONS
STAKEHOLDER INTEREST HOW WE ENGAGE
FREQUENCY
Industry peers and
associations
Commodity-specific Diverse range of issues Representation on specific Ad hoc meetings
associations, as well as associated with the committees and engagement Quarterly company updates
sector-specific associations resources sector or specific on specific projects with Annual reports.
at regional, national and commodities; issues including industry associations,
international levels. the environment, health and to develop guidelines,
safety, communities, skills standards and programs,
Industry peers and and training for employees, agree advocacy priorities
associations help Indika economic policy and and share best practice.
Energy stay aligned with sustainability management
industry standards, regulatory and performance.
changes, and best practices.
Collaboration within the
sector strengthens collective
sustainability efforts.
Investment community
Debt and equity analysts, Alignment of our performance Regular communication Ad hoc meetings
ESG analysts and corporate with shareholder interests, through analyst briefings Regular meetings and
governance analysts. including good financial on key issues, exchange discussion forum
returns, strong governance releases, sharing Group Quarterly company updates
The investment community’s and expectations of publications, such as Annual Corporate disclosure
confidence in our financial strong performance and Reports and company Annual reports.
performance and ESG efforts management of financial presentation updates,
is critical for accessing and non-financial risk. participation in external
capital and ensuring benchmarking activities.
shareholder value.
Labor unions
Labor unions represented Workers’ rights and Direct communication as Ad hoc meetings
many of our operated assets. interests, freedom of required, respecting the right Regular discussion forum .
association and collective to freedom of association.
Labor unions are important for bargaining, health and safety,
ensuring that our workforce’s remuneration, working
rights and interests are hours, roster arrangements
protected, which contributes and risk management.
to positive industrial relations
and workplace safety.
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
COMMUNICATIONS
STAKEHOLDER INTEREST HOW WE ENGAGE
FREQUENCY
Local communities
A broad spectrum of Environmental, economic Community consultation, Ad hoc meetings
local communities with and social impacts engagement and Regular meetings and
interests and concerns. associated with our operated participation in Indika Energy discussion forum.
assets, opportunities Group activities, work and
Local communities are vital for social investment, local supply opportunities,
stakeholders as their well- local employment, local social investment, targeted
being and support ensure supplier and business communications, community
the success of our projects. creation, support for social perception surveys.
We aim to make positive infrastructure and programs,
contributions to their social improved community
and environmental needs. engagement mechanisms and
environmental performance.
Media
Representatives from Broad range of issues Media releases, briefings, Annual public expose
print, online, broadcast reflecting diverse presentations and interviews, Quarterly company updates
and social media. stakeholder interests. publicly available information Corporate disclosure
(Annual Report and other Annual reports
The media plays an topic-specific reports, Press release.
essential role in shaping our website, LinkedIn,
public perception and YouTube, Instagram).
communicating our
sustainability initiatives
and corporate values
to the wider public.
Non-governmental
organizations (NGOs)
and civil society
Environmental, social and Ethical, social and Local engagement through Ad hoc meetings and
human rights organizations environmental performance each operated asset’s discussion forum
at local, national and of our operated assets stakeholder engagement Annual reports.
international levels. proposed operated assets plan, regular engagement at
or closed operated assets, the Group level with relevant
NGOs and civil society governance mechanisms, national and international
organizations help ensure risk management, complaint organizations, various multi-
that we are meeting our social and grievance mechanisms stakeholder initiatives and
responsibility commitments and remedy, transparency, partnerships, and through
and environmental standards, practices to respect human the Indika Energy Group
offering valuable feedback rights, social investment, non- forum for sustainability.
on our sustainability efforts. operated joint ventures, social
and environmental impacts.
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26
COMMUNICATIONS
STAKEHOLDER INTEREST HOW WE ENGAGE
FREQUENCY
Shareholders
A diverse group that has Creation of long-term Annual General Meetings, Annual meetings
invested in our business with shareholder value publicly available information Quarterly company updates
significant representation through consistent (Annual Report, other topic- Corporate disclosure
in our company. financial returns and good specific reports, our website), Annual reports.
governance. Ensuring regular meetings with
Shareholders are key to our high-quality governance institutional shareholders
long-term success, and their and maintaining focus on and investor representatives,
satisfaction with our financial continuous improvement ESG discussion and
performance and governance and understanding investment and community
is crucial for sustaining capital shareholder concerns, presentations.
investment and market trust. including ESG performance.
Society partners
Public or private organizations Ethical, social and Boards and committees, Ad hoc meetings
we partner with on specific environmental performance publicly available information Regular discussion forum
projects to benefit society, of our operated assets (Annual Report and other Annual reports.
the communities where we proposed operated assets topic-specific reports, our
operate or the environment. or closed operated assets, website), regular engagement
governance mechanisms, at both the Group and
These partnerships allow risk management. local/regional levels.
us to maximize our social
impact, leverage expertise,
and collaborate on projects
that benefit society and
the environment.
Suppliers
Businesses local to our Procurement, inbound Regular engagement through Ad hoc meetings and
operated assets (including marketing procurement and the supplier life cycle is discussion forum.
local Indigenous suppliers) charter party agreements, determined according to
as well as national and payments and minimum supplier segmentation
multinational suppliers, supplier requirements, and risk, including
including maritime safety standards. with respect to health,
vessel charterers. safety, environment and
community, modern slavery,
Suppliers are critical to our transparency, inclusion
operational success and and diversity, and business
the quality of our products conduct more broadly.
and services. Building
strong, transparent, and
ethical relationships
benefits both parties.
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
Each year, we identify the sustainability topics with the The Sustainability Committee reviews our material sustainability
greatest material impact to our business, partners, and topics annually. We continue to engage with both internal and
stakeholders, through a materiality assessment aligned with external stakeholders to evaluate the importance of ESG topics,
GRI recommendations. [GRI 102-46] These topics, known as our integrating these findings into our strategic approach and
material sustainability topics, guide our sustainability reporting. sustainability disclosures. In 2024, we validated the relevance
The findings help us understand the information stakeholders of our current material topics and identified emerging issues
seek and determine the key topics for disclosure. In 2024, we through these assessments. [GRI 102-48]
consolidated these material topics.
Our materiality assessment considers both positive and negative
impacts, incorporating a wide range of inputs, including our
internal risk profile, social value framework, discussions at our
Annual General Meeting of Shareholders (AGMS), and industry
standards. [GRI 102-47] We also include feedback from external
stakeholders, investor input, sustainability regulations, and
media coverage of our impacts. This process accounts for both
direct operational activities and those within our value chain, such
as supplier relationships.
ASSESSMENT PROCESS
DESK RESEARCH STAKEHOLDERS’ ENGAGEMENT FINAL SCORING
We considered our original material We engaged with our external and The Sustainability team and the
topics and assessed the inclusion internal stakeholders including committee reviewed the findings.
of new topics and/ or sub-topics government, investors, banks, insurance Where interest was expressed, shared
through looking at stakeholders’ companies, media, customers, the final list of topics with participating
areas of interest and the materiality industry associations, and NGOs as stakeholders. Work is underway to
assessments undertaken by our peers. well as our internal stakeholders which align our strategy and communications
cover employee representatives. with the updated identified topics.
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28
OUR KEY ESG TOPICS THAT ARE MOST MATERIAL TO
OUR BUSINESS AND STAKEHOLDERS
HIGH
• Rights of Indigenous People • Energy Consumption
• Diversity, Inclusion, and • GHG Emissions
Equal Opportunity • Local Communities
• Occupational Health & Safety
• Land Use & Biodiversity
IMPORTANCE TO STAKEHOLDERS
• Innovation and Technological • Procurement Practices • Corporate Governance
• Advancement • Water and E��luents • Employment
• Market Presence • Economic Performance • Waste Management
• Anti-competitive Behavior • Tax Governance • Labor and Management
• Freedom of Association Relations
and Collective Bargaining
LOW IMPACT ON THE BUSINESS HIGH
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
MATERIAL TOPICS AND IMPACTS FOR SUSTAINABILITY REPORTING
MATERIAL TOPIC AND POTENTIAL AND ACTUAL IMPACTS SDG INDEX READ MORE
DECARBONIZATION
GHG emissions and energy Driving the transition
to net zero with
Addresses the company’s energy consumption in various forms, innovation and
such as fuel, electricity, heating, cooling, or steam, as well the climate action
measurement and management of greenhouse gas emissions
(including fugitive emissions associated with coal mining), ozone-
depleting substances (ODS), nitrogen oxides (NOx), and sulfur oxides
(SOx), among other significant air emissions. [GRI 302, 305]
HEALTHY ENVIRONMENT
Water and effluents Environmental
stewardship:
Addresses impact the company has on the water resources Respecting and
from which it withdraws and consumes and to which preserving nature
it discharges for its own operations. [GRI 303]
Waste management Environmental
stewardship:
Addresses the impacts of the waste generated in the company’s operations Respecting and
and how the company manages risks related to the environment and preserving nature
human health from waste generation and disposal. [GRI 306]
Land use and biodiversity Environmental
stewardship:
Addresses the company’s strategy to minimize the impact Respecting and
of its business activities on land and to protect preserving nature
biological diversity to ensure the survival of plant and animal
species, genetic diversity, and natural ecosystems. [GRI 304]
SAFE, INCLUSIVE AND FUTURE-READY WORKFORCE
Employment Social impact:
Empowering
Includes the company’s approach to employment or job creation: hiring, communities and
recruitment, retention and related practices, and the working conditions powering lives
it provides. While training and education address the company’s
approach to training and upgrading employee skills, and performance
and career development reviews. [GRI 401, 402, 404, 406, 407]
Diversity, inclusion, and equal opportunity Social impact:
Empowering
Addresses the company’s approach to promoting diversity, communities and
eliminating gender bias, and supporting equal opportunity at powering lives
work. Includes the diversity of its governance bodies and its
employees as well as fairness in remuneration. [GRI 405]
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MATERIAL TOPIC AND POTENTIAL AND ACTUAL IMPACTS SDG INDEX READ MORE
Occupational health and safety Social impact:
Empowering
Addresses how the company provides healthy and safe work conditions communities and
for its workforce, which involve both prevention of physical and powering lives
mental harm, and promotion of workers’ health. [GRI 403]
THRIVING, EMPOWERED COMMUNITIES
Community Social impact:
Empowering
Addresses the economic, social, cultural, and/or environmental impacts that communities and
the company’s activities and infrastructure can have on local communities. powering lives
Human rights of community members who may potentially be impacted,
including rights related to freedom of expression and self-determination as
well as economic, social and cultural rights, such as health and wellbeing,
work, adequate housing and water and sanitation [GRI 413, 414]
Economic performance Advancing economic
growth and sustainable
Addresses the economic value generated and distributed by the company, communities
which include its defined benefit plan obligation, and the financial
implications of climate change. It also addresses indirect economic
impacts that have an influence on the local community’s well-being
and longer-term prospects for development. [GRI 201, 203, 207]
OTHER
Corporate governance (ethics and business conduct) Governance:
Ensuring integrity
Addresses the framework for attaining the company’s objectives, and accountability
encompassing practically every sphere of management, from action
plans and internal controls to performance measurement and corporate
disclosure. This also addresses the company’s approach to upholding
responsible business practices: business ethics, anti-corruption, human
rights and grievance mechanisms. [GRI 206, 408, 409, 410, 411, 415, 416]
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
RESPECTING HUMAN RIGHTS [GRI 2-23, 2-24, 2-25] RESTATEMENT OF INFORMATION [2-4]
In 2024, we carried out a thorough review of water withdrawal,
At Indika Energy Group, we recognize that our operations and consumption, and discharge across our subsidiaries to enhance
supply chain can influence human rights, particularly in areas such reporting accuracy. As part of this process, we refined our water
as workplace health and safety, labor rights, security activities, classification based on total dissolved solids (TDS) to ensure
land access and use, water and sanitation, community well-being, clearer and more precise categorization. These updates are
and the rights of Indigenous peoples, including their culture, reflected in our 2024 report, reinforcing transparency and
identity, traditions, and customs. alignment with reporting standards.
Our commitment to respecting human rights is guided by our To maintain data reliability, we have made several restatements,
Human Rights Policy Statement and supporting standards. including:
These define our approach to due diligence and emphasize a
rights-based framework across our operations and supply chain, ⚫ 2022 and 2023 water withdrawal data categorized by total
including addressing modern slavery risks. We strive to identify solids
and assess actual and potential human rights impacts, understand ⚫ 2022 and 2023 water consumption data categorized by
their effects on people, integrate solutions into our practices, total solids
monitor progress, and openly communicate how we address these
challenges.
In 2024, we renewed our Human Rights Policy, enhancing its
alignment with international standards and adding greater clarity
to our commitments. Additionally, we began implementing
a standardized methodology for assessing community and
human rights impacts, focusing on identifying potential risks to
local communities where we operate. This approach integrates
stakeholder perspectives and adheres to globally recognized
frameworks, including the ILO Declaration on Fundamental
Principles and Rights at Work, the U.N. Universal Declaration of
Human Rights; and the 10 U.N. Global Compact Principles.
Indika Energy received the High Recovery Rate Award
at the 4th Waste4Change Awards on International Zero Waste
Day 2024, recognizing our strong waste recovery efforts.
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Indika Energy and Indika Nature: IMPACT (Indika Energy Mangrove Program in Action) Our mangrove program is expected to sequester up to 2,533.8 tons of CO2eq annually at maturity while supporting local biodiversity, including migratory birds and marine life.
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Indika Nature cultivates red Calliandra at its Jaya Bumi Paser nursery to support sustainable biomass and land restoration. Harvested twice a year without land clearing, the plant also enriches soil through nitrogen-fixing Rhizobium bacteria.
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CHAPTER 2 SUSTAINABILITY AT INDIKA ENERGY
Page 38
Upholding our values through real action, we have demonstrated our commitment to community well-being by reducing stunting in Paser from 18.29% to 8.82%—surpassing the 2024 national target
Page 39
SUSTAIN ABIL IT Y R E PORT 2 0 2 4
LIVING BY OUR VALUES
Indika Energy’s journey toward a sustainable future is firmly rooted in our core values, which shape
every decision we make and every initiative we undertake. Unity in diversity, integrity, teamwork,
agility, achievement, and social responsibility form the foundation of our efforts to navigate the energy
transition and address global challenges. [GRI 102-16]
These values inspire us to act ethically, embrace forward-thinking solutions, and foster partnerships
that amplify positive outcomes for all stakeholders. By living our values, we aim to build trust, empower
communities, and contribute to Indonesia’s progress toward a more equitable and sustainable future.
[GRI 102-16, 413-1]
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SUSTAIN ABIL IT Y R E PORT 2 0 2 4
SUSTAINABILITY AT THE CORE
W E B R I N G O U R CO R P O R AT E VA LU E S TO L I F E BY R E S P O N S I B LY
M A N AG I N G A R E S I L I E N T, LO N G -T E R M P O RT FO L I O I N H I G H -
P OT E N T I A L CO M M O D I T I E S , E N S U R I N G O U R ACT I O N S S TAY
A L I G N E D W I T H I N D I K A E N E R GY ’ S P R I N C I P L E S . T H R O U G H
T H I S A P P R OAC H , W E R E M A I N CO M M I T T E D TO S U P P O RT I N G
A S U S TA I N A B L E , I N C LU S I V E , A N D R E S I L I E N T F U T U R E FO R
G E N E R AT I O N S TO CO M E
PURPOSE OUR CORE VALUES
Energizing Indonesia for a Sustainable Future These values underpin our commitment to sustainability, guide
our strategies, and shape our impact:
STRATEGIC COMMITMENT ⚫ Unity in Diversity: Recognizing diversity as a strength,
At least 50% of our revenue in 2028 will come from non-coal we foster collaboration and inclusivity, ensuring every
streams as we transition toward a diversified portfolio. We are also individual contributes to a unified vision.
committed to achieving net-zero emissions by 2050 or sooner. ⚫ Integrity: Acting with honesty and upholding ethical
standards in every decision, fostering trust across all
OUR STRATEGY interactions.
To navigate the energy transition, we adopted a three-pronged ⚫ Teamwork: Building partnerships rooted in trust and
strategy — Divestment, Diversification, and Decarbonization — shared goals, prioritizing collective success over individual
to reshape our business: gain.
⚫ Agility: Demonstrating resilience, adaptability, and an
⚫ Divestment: Reducing reliance on coal and reallocating
entrepreneurial mindset to seize opportunities and tackle
capital toward renewable energy and sustainable
challenges head-on.
ventures. [GRI 2-28]
⚫ Achievement: Focusing on measurable results and driving
⚫ Diversification: Expanding into non-coal revenue
meaningful progress for the company, stakeholders, and
streams, including renewable energy, electric vehicles,
society.
and green infrastructure. [GRI 2-6]
⚫ Social Responsibility: Prioritizing environmental care,
⚫ Decarbonization: Actively lowering emissions across our
community development, and generating social value
operations and value chain to meet our carbon neutrality
that transcends business boundaries.
goals. [GRI 305-5]
OUR BUSINESS MODEL By aligning our actions with these values, Indika Energy is
committed to a sustainable, just, and resilient future for
We deliver value by responsibly managing a resilient, long-term
generations to come.
portfolio of assets, in high-potential commodities. Growth is
driven through operational excellence, resource discover and
development, acquiring the right assets, and strategic capital
allocation. With a unique approach to social value, we aim to
become a trusted partner that delivers benefits to all stakeholders
while creating sustainable, inclusive growth.
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PT INDIKA ENERGY TBK.
30
54
26
13 5
15 1
7
14 10
25
29 8
18 11 6
17 9
2 27 20 24
19
21
16
28
22
1 Kideco Jaya Agung, East Kalimantan
2 Tripatra, West Java
3 Tripatra, West Papua
4 Tripatra, Riau
5 Tripatra, Bontang, East Kalimantan 13 Mekko Metal Mining, West Kalimantan
6 Tripatra, Indramayu, West Java 14 Indika Nature Jaya Bumi Paser, East Kalimantan
7 Tripatra, Balikpapan, East Kalimantan 15 Indika Nature Telaga Mas Kalimantan, East Kalimantan
8 Tripatra, Marunda, Bekasi 16 Indika Nature Natura Aromatik Nusantara, Central Java
9 Cirebon Electric Power and Cirebon Energi Prasarana, West Java 17 ALVA Manufacturing Facilities, West Java
10 Interport Fuel Tank Terminal, East Kalimantan 18 ALVA Experience Centre, Jakarta
11 Interport, West Java 19 ALVA Experience Centre Bandung, West Java
12 Masmindo Dwi Area, South Sulawesi 20 ALVA Experience Centre Semarang, Central Java
PT INDIK A ENERGY TBK.
Page 43
SUSTAIN ABIL IT Y R E PORT 2 0 2 4
WHERE WE OPERATE
Indika Energy is headquartered in Jakarta at Graha Mitra on Jl. Jendral Gatot Subroto Kav. 21 and has additional
offices at INDY Bintaro Office Park, Tangerang. Our operations are spread across Sumatra, Java, Bali, Kalimantan,
Sulawesi, and Papua, with no activities outside Indonesia as of the end of 2024. [GRI 2-1, 2-6]
23
12 3
21 ALVA Experience Centre Surabaya, East Java 29 KALISTA, Jakarta
22 ALVA Experience Centre Denpasar, Bali 30 KALISTA, Medan
23 EMITS, North Maluku
24 EMITS, East Java
25 EMITS, East Kalimantan
26 EMITS, Riau
27 EMITS, West Java
28 EMITS, Bali
41
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42
OUR CORPORATE STRUCTURE
PT INDIKA ENERGY TBK.
100% 100% 100%
50%
PT Indika Energy
PT Indika Inti Corpindo PT Tripatra Multi Energi
Infrastructure
(Indonesia) (Indonesia)
(Indonesia)
» Investasi and Perdagangan 50%
PT Indika Tenaga Baru » Perdagangan, Pembangunan
» Perdagangan Umum
Umum (Indonesia) and Jasa
» Investment and General » General Trading » Trading, Development and
Trading Services
» Manajemen Konsultasi
51% » Consultation Management 100%
PT Kideco Jaya Agung 40% 2% PT Tripatra Engineering 98% 51% PT Interport
(Indonesia) (Indonesia) Mandiri Utama
PT Empat Mitra
» Jasa Konsultasi untuk Bidang- » Jasa Manajemen dan
» Eksplorasi, Pengembangan,
bidang Konstruksi, Industri & Indika Tenaga Surya
Pertambangan dan Pemasaran Perdagangan
Batubara
Infrastruktur (Indonesia) » Management Services and
» Consultation Services for Trading
» Exploration, Development,
Construction, Industry and
Mining and Marketing of Coal » Jasa Konsultasi
Infrastructure
» Consultation Service
100%
6%
49% 100% PT Interport
PT Indika 94% 49% PT Tripatra Engineers 51% Reksabumi Indonesia
Indonesia Resources and Constructors PT Sumber Multi PT Empat Mitra (Indonesia)
(Indonesia) (Indonesia) Energi Penajam Indika Cahaya » Pengelolaan Limbah
» Jasa Konsultasi, Konstruksi,
(Indonesia) (Indonesia) Berbahaya
» Pertambangan dan » Hazardous Waste
Perdagangan Bisnis, Perdagangan dan
Management
» Mining and Trading Industri » Perdagangan Umum » Perdagangan Umum
» Provision of Consultancy » General Trading » General Trading
Services, Construction
Business and Trading 100%
100%
100% 100% PT Interport Multi
Indika Capital 46% Niaga
Investments Pte.Ltd. PT Indika Empat PT Empat Mitra (Indonesia)
(Singapore) PT Sea Bridge Shipping Mitra Surya Indika Mentari
» Jasa pengurusan Transportasi,
» Perdagangan Batubara dan
(Indonesia) (Indonesia) (Indonesia) Perdagangan dan Jasa Lainnya
Mineral Serta Perdagangan » Transportation Management
Umum » Pengangkutan Barang » Perdagangan Umum » Perdagangan Umum Services, Trading and Other
» Coal and Mineral Trading and Domestik » General Trading » General Trading Services
General Trading Activities » Domestic Goods Shipment
60% 100%
100% 100% 100% PT Mitra
Indika Energy Tripatra Baruna Nusantara
Trading Pte.Ltd. (Singapore) Pte.Ltd. PT Indika Multi PT Indika Infrastruktur Indika Power (Indonesia)
(Singapore) (Singapore) Energi Internasional Investindo Investments Pte.Ltd
» Stevedoring
(Indonesia) (Indonesia) (Singapore) » Stevedoring
» Perdagangan » Investasi
» Trading » Investment » Perdagangan Umum » Investasi » Investasi
» General Trading » Investment » Investment
90% 100%
100% 25% PT Interport
10% PT Indika Tripatra Mandiri Abadi
Energy Trading PT Prasarana 5% PT Cirebon 15% (Indonesia)
Investments Limited
(Indonesia) Energi Indonesia Electric Power
(B.V.I) » Jasa Manajemen Transportasi
(Indonesia) (Indonesia)
» Transportation Management
» Perdagangan
» Investasi » Pembangkit Listrik Tenaga Services
» Trading » Perdagangan Umum
» Investment Uap (PLTU)
» General Trading » Coal-fired Power Plant
99,99% 100%
100%
5%
Indika Capital PT Kariangau Gapura
5% PT Kuala PT Prasarana PT Cirebon 15% Terminal Energi
Pte. Ltd.
Pelabuhan Indonesia Energi Cirebon Power Services (Indonesia)
(Singapore)
(Indonesia) (Indonesia) (Indonesia) » Pengelolaan Pelabuhan Khusus
» Pemasaran & Investasi » Pengoperasian dan » Specific Port Management
» Pengelolaan Pelabuhan » Perdagangan Umum
» Marketing & Investment Pemeliharaan Fasilitas dan
» Port Operations » General Trading Alat-alat Listrik
» Operations and Maintenance
100% 25%
of Electrical Equipment and 100%
Facilities
PT Jatim Gapura
Indika Capital PT Cirebon Terminal Energi
Resources Limited Energi Prasarana (Indonesia)
(B.V.I) (Indonesia)
» Pengelolaan Pelabuhan Khusus
» Pembiayaan » Pembangkit Listrik Tenaga » Specific Port Management
Uap (PLTU)
» Financing
» Coal-fired Power Plant
99.92% 100%
PT Pahala
PT Citra Indah Prima Globalindo Energi
(Indonesia) (Indonesia)
» Perdagangan Bahan Bakar
» Investasi » Fuel Trading
» Investment
Catatan: *100% saham perseroan terbatas (PT) Indonesia yang dimiliki oleh 2 pemegang saham yang keduanya adalah PT Indika Energy Tbk. dan atau anak perusahaannya.
Notes: *100% share of Indonesian limited liability company (PT) held by 2 shareholders both of which are PT Indika Energy Tbk. and or its subsidiaries
Sumber Daya Energi | Energy Resources Jasa Energi | Energy Services
PT INDIK A ENERGY TBK.
Page 45
SUSTAIN ABIL IT Y R E PORT 2 0 2 4
PT Indika Energy Tbk.
(Indonesia)
100.0% 100% 100% 100% 100%
PT Indika PT Indika Multi Properti PT Solusi PT Indika Medika PT Indy Properti
Mineral Investindo (Indonesia) Mobilitas Indonesia Nusantara Indonesia
(Indonesia) (Indonesia) (Indonesia) (Indonesia)
» Konstruksi, Real Estate dan » Industri motor, perdagangan » Industri Alat Kesehatan dan » Pembangunan, Jasa dan
Perdagangan dan jasa Obat Farmasi Perdagangan
» Investasi
» Construction, Real Estate » Motor Industry, General » Medical and Pharmaceutical » Development, Service and
» Investment and Trading Trading and Services Industry Trading
100% 99% 100%
68,61% 100%
Nusantara PT Mitra Motor Group PT Genomik Solidaritas Indika Energy
PT Jaya Bumi Paser Indonesia
Resources Ltd. (Indonesia) Capital Pte. Ltd.
(Indonesia) (Indonesia)
(Australia) (Singapore)
» Industri Kendaraan Bermotor,
» Tes Sekuensing Genom,
Perdagangan dan Jasa
» Investasi » Pengusahaan Hutan Laboratorium dan Jasa Klinis » Pembiayaan
» Vehicle Industry, General
» Investment » Forest concessionaries Umum » Financing
Trading and Services
» Genomic Sequencing Tests,
Laboratory Activities and
100%
100% General Clinical Services
75% 60% Indika Energy
50%
PT Interport PT Diva Perdana PT Foxconn Capital III Pte.Ltd.
100% PT Bioneer
Salu Siwa Pty. Ltd. Indika Motor (Singapore)
Sarana Baruna Pesona Indika Group
(Australia) (Indonesia)
(Indonesia) (Indonesia) (Indonesia) » Pembiayaan
» Manufaktur Kendaraan Roda 4 » Distributor Alat Kesehatan dan » Financing
» Pengelolaan Pelabuhan » Investasi » Pengusahaan Hutan
» 4 Wheels Vehicle Manufacturing Obat Farmasi
» Specific Port Management » Investment » Forest Concessionaries » Medical and Pharmaceutical 100%
Distributor
75%
Indika Energy
100%
96% 100% Capital IV Pte.Ltd.
PT Bioneer (Singapore)
100% 25% PT Masmindo PT Telaga Mas PT Energi Indika Diagnostik
PT Elang Mas Andalan
Dwi Area Kalimantan Makmur Buana (Indonesia) » Pembiayaan
(Indonesia)
(Indonesia) (Indonesia) (Indonesia) » Distributor Aalat Kesehatan
» Financing
dan Obat Farmasi
» Jasa Bongkar Muat » Pertambangan Emas » Pengusahaan Hutan » Distributor Kendaraan Roda 4 » Medical and Pharmaceutical 100%
» Loading/Unloading Services » Gold Mining » Forest Concessionaries » 4 Wheels Vehicle Distribution Distributor
PT Indika Digital
Teknologi
100% (Indonesia)
100% 100% 100%
30% PT Mitra PT Rockgeo PT Laras PT Industri PT Kalista Nusa » Jasa Teknologi Digital
Samudra Indonesia Energi Nusantara Ekosistem Organik Baterai Nusantara Armada » Digital Technology Services
(Indonesia) (Indonesia) (Indonesia) (Indonesia) (Indonesia)
» Sewa, Perdagangan EV dan 100%
» Konsultasi Manajemen dan
» Investasi » Perdagangan Bijih Mineral » Manufaktur Baterai EV Stasiun Penukaran Baterai
Perdagangan Besar
» Investment » Mineral Ore Trading » Management Consultation and » EV Battery Manufacture
» EV Rental, Trading and Battery PT Zebra Cross
Swapping Station
Wholesale Trading Teknologi
(Indonesia)
0,65%
100% 100% 100%
» Jasa Teknologi Digital
100% PT Indika Logistic & PT Perkasa 99,35% PT Manufaktur PT Kalista » Digital Technology Services
Support Services Investama Mineral PT Natura Teknologi Baterai Rotom Orbita
(Indonesia) 100%
(Indonesia) (Indonesia) Aromatik Nusantara (Indonesia)
(Indonesia) » Sewa dan Perdagangan PT Xapiens Teknologi
» Pengelolaan Pelabuhan Khusus » Perdagangan Bijih Mineral » Manufaktur Baterai EV Sepeda Motor Listrik Indonesia
» Port Operation » Mineral Ore Trading » Industri Minyak Atsiri » EV Battery Manufacture » EV Business Rental and Trading (Indonesia)
» Essential Oil Industry
100% » Jasa Teknologi Digital
100% 100% 100% PT Kalista Nayara
» Digital Technology Services
Dayautama
PT Interport Sarana PT Mekko Metal Mining PT Ilectra Motor Group 100%
(Indonesia)
Infrastruktur Indonesia (Indonesia) (Indonesia)
(Indonesia)
» Sewa dan Perdagangan Indika
Kendaraan Listrik Roda 4
» Industri Sepeda Motor,
» EV Electricity Sales and Electric
Ventures Pte.Ltd.
Perdagangan dan Jasa
» Pengelolaan Pelabuhan Khusus
» Tambang Bauksit
» Motor Industry, General Supply Installations (Singapore)
» Bauxite Mining Trading and Services
» Specific Port Management
100% » Jasa Teknologi Digital
» Digital Technology Services
100% 30% PT Kalista Soter
65% 100% Hastia 22,5%
(Indonesia)
PT Batu Ampar PT Perkasa PT Electra PT Narada Sahara
Container Terminal Alumina Indonesia Mobilitas Indonesia » Sewa dan Perdagangan
Kencana
Kendaraan Listrik
(Indonesia) (Indonesia) (Indonesia) » EV Business Rental and Trading (Indonesia)
» Pengelolaan Pelabuhan » Smelter » Pabrik Sepeda Motor
» Port Operation 100% » Jasa Teknologi Digital
» Smelter » Motorcycle Manufacturing
» Digital Technology Services
PT Kalista Biru
Nusantara
100% (Indonesia)
PT Interport PT Electra » Sewa dan Perdagangan
51%
Patimban Agung Distribusi Indonesia Kendaraan Listrik
» EV business rental
(Indonesia) (Indonesia)
» Perdagangan Besar Sepeda
» Pengelolaan Pelabuhan Motor
» Port Operation » Wholesales Trade Motorcycles
100%
54,8% PT Electra
PT Cotrans Asia
(Indonesia) Auto Indonesia
(Indonesia)
» Jasa Pengangkutan dan
Pengiriman Batubara » Perdagangan Eceran Sepeda
» Coal Transportation and Motor
Transhipment Service » Dealership Motorcycles
Infrastruktur Energi | Energy Infrastucture Minerals Bisnis Hijau | Green Business Portofolio Lain | Other Portfolio
43
Page 46
KALISTA partnered with INVI to grow Indonesia’s EV ecosystem, promoting wider adoption and advancing the shift to clean energy—positioning KALISTA as a key player in the country’s sustainability movement.
Page 47
SUSTAIN ABIL IT Y R E PORT 2 0 2 4
OUR PORTFOLIO
I N D I K A E N E R GY G R O U P L E V E R AG E S I T S I N T E G R AT E D B U S I N E S S
O P E R AT I O N S TO C R E AT E S U S TA I N A B L E VA LU E A N D D E L I V E R
M E A N I N G F U L , L A S T I N G I M PACT. O U R S U B S I D I A R I E S A R E
C E N T R A L TO AC H I E V I N G O U R V I S I O N FO R S U S TA I N A B L E
G R OW T H , I N N OVAT I O N , A N D O P E R AT I O N A L E XC E L L E N C E
AC R O S S D I V E R S E S E CTO R S . T H R O U G H CO L L A B O R AT I O N A N D
S T R AT E G I C E X E C U T I O N , W E R E M A I N FOC U S E D O N AC H I E V I N G
O U R S T R AT E G I C GOA L O F A B A L A N C E D 50:50 R E V E N U E S P L I T
B E T W E E N O U R COA L A N D N O N - COA L S T R E A M S BY 2028,
U N D E R S CO R I N G O U R CO M M I T M E N T TO B U I L D I N G A M O R E
D I V E R S I F I E D , R E S I L I E N T, A N D S U S TA I N A B L E P O RT FO L I O FO R
THE FUTURE.
PT KIDECO JAYA AGUNG PT INDIKA INDONESIA RESOURCES (IIR)
K I D E CO I S T R A N S I T I O N I N G TO G R E E N E R M I N I N G D R I V I N G R E S P O N S I B L E R E S O U R C E D E V E LO P M E N T TO
BY A D O P T I N G A N E V M I N I N G F L E E T, E N H A N C I N G M E E T G R OW I N G E N E R GY N E E D S W I T H A FOC U S O N
S U S TA I N A B I L I T Y W H I L E P R O D U C I N G 3 0 . 7 M I L L I O N TO N S Q U A L I T Y, S U S TA I N A B I L I T Y, A N D G LO B A L I M PA CT..
OF COAL IN 2024.
IIR harnesses Indonesia’s abundant natural resources by tapping
Established in 1982, PT Kideco Jaya Agung is a leading player into opportunities from rising energy demand, both domestically
in Indonesia’s coal industry, known for its high-quality coal and globally. With a current focus on coal trading, biomass, and
production from the Paser mine in East Kalimantan. Serving mineral products, IIR strives to strengthen its competitiveness
both domestic and international markets, Kideco continues and product quality while maintaining a strong commitment to
to strengthen its position through innovation, sustainability long-term sustainability. Guided by environmental responsibility,
initiatives, and strong community engagement. The company is we ensure our products meet high standards of quality and
committed to environmental responsibility, actively rehabilitating certification to serve evolving customer and market needs.
mined land and implementing measures to reduce its operational
footprint. As part of its transition to greener mining practices,
Kideco has begun adopting an electric vehicle (EV) mining fleet
to lower emissions and enhance operational efficiency. In 2024,
Kideco produced 30.7 million tons of coal, reinforcing its role as
a key contributor to Indonesia’s energy sector while advancing
responsible mining practices.
45
Page 48
46
PT TRIPATRA ENGINEERING AND PT TRIPATRA PT MEKKO METAL MINING
ENGINEERS AND CONSTRUCTORS M E K KO M E TA L M I N I N G S P E C I A L I Z E S I N T H E E X T R A CT I O N
W I T H M O R E T H A N 50 Y E A R S O F E X P E RT I S E , T R I PAT R A O F B A U X I T E , A K E Y R A W M AT E R I A L FO R A LU M I N U M
L E A D S I N D O N E S I A’ S E P C S E CTO R W H I L E T R A N S I T I O N I N G P R O D U CT I O N , A N D FOC U S E S O N S U S TA I N A B L E M I N I N G
TO G R E E N B U S I N E S S TO T R A N S FO R M E N E R GY A N D P R A CT I C E S .
AC C E L E R AT E D O W N S T R E A M .
PT Mekko Metal Mining is engaged in the extraction and processing
PT Tripatra Engineering and PT Tripatra Engineers and Constructors of bauxite in Indonesia, supplying raw materials essential for
are well-established companies in the EPC sector, delivering aluminum production. The company is committed to minimizing
complex, large-scale projects across the energy, petrochemical, the environmental impact of its operations, with a focus on water
and infrastructure industries. Known for excellence in end-to- conservation, land rehabilitation, and community engagement.
end solutions—from design and procurement to construction Mekko adheres to stringent environmental standards, ensuring
and maintenance, Tripatra upholds high standards in quality, its mining practices support the local ecosystem and contribute
innovation, and safety. As a trusted partner for major national and to the sustainable development of Indonesia’s resource sector.
international clients, the company plays a vital role in Indonesia’s Mekko manages a 5,050 Ha bauxite concession with 30 MT
infrastructure development and energy security. Tripatra is also potential resources and 5.7 MT potential reserves.
transitioning towards green business, focusing on sustainable
engineering solutions that transform energy and accelerate
PT EMPAT MITRA INDIKA TENAGA SURYA
downstream, reinforcing its commitment to a more sustainable
E M I T S I S L E A D I N G T H E A D O P T I O N O F S O L A R E N E R GY I N
future.
I N D O N E S I A , W I T H A FOC U S O N S O L A R P OW E R P R OJ E CT S
FO R I N D U S T R I A L A N D CO M M E R C I A L S E CTO R S .
PT INTERPORT MANDIRI UTAMA
I N T E R P O RT E N H A N C E S LOG I S T I C S W I T H T E C H N O LOGY A N D PT Empat Mitra Indika Tenaga Surya (EMITS) is at the forefront of
S U S TA I N A B I L I T Y, E X PA N D I N G G R E E N E N E R GY A D O P T I O N renewable energy development in Indonesia, specializing in solar
W H I L E A D VA N C I N G K E Y P R OJ E CT S . energy solutions. The company provides integrated solar power
systems for industries and commercial applications, driving the
PT Interport Mandiri Utama operates an extensive logistics and transition to clean energy. EMITS offers innovative solutions
port management network supporting the mining, energy, and that not only reduce energy costs but also support Indonesia’s
industrial sectors. Its services include bulk handling, logistics commitment to a low-carbon future. By expanding its portfolio
management, and facilitating regional goods transportation. of solar projects, EMITS plays a vital role in Indonesia’s efforts to
Committed to efficiency and cost reduction, Interport leverages meet its renewable energy targets. Until now, EMITS is progressing
advanced technology and operational optimization to strengthen to install 60 MW across Java, Bali, Sumatra, Kalimantan, and
the supply chain and ensure seamless resource transportation Sulawesi. The company signed an MOU with PLN to develop 350
to global markets. In 2024, Interport signed a CSPA with POSCO MWP of solar and BESS in East Indonesia.
International to build and operate a CPO refinery in Balikpapan
and extended the ILSS Port concession from 31 to 54 years. As part
of its sustainability efforts, Interport continues to expand green
energy adoption, including the use of solar power. “THROUGH THE DIVERSITY OF OUR
B U S I N E S S P O RT FO L I O , W E A R E
N OT O N LY B U I L D I N G R E S I L I E N C E —
PT MASMINDO DWI AREA B U T A L S O PAV I N G T H E WAY
M A S M I N D O I S P R O G R E S S I N G TOWA R D S U S TA I N A B L E GO L D TOWA R D A G R E E N E R , M O R E
M I N I N G , W I T H C O M M E R C I A L O P E R AT I O N S AT T H E A WA K S U S TA I N A B L E F U T U R E . E V E R Y
M A S S I T E I N S O U T H S U L A W E S I TA R G E T E D FO R 2 0 2 6 . S T E P W E TA K E I N I N N OVAT I O N
A N D D I V E R S I F I CAT I O N I S A S T E P
Focused on exploration and development, Masmindo’s Awak Mas C LO S E R TO A J U S T A N D I N C LU S I V E
gold project holds strong potential to contribute to Indonesia’s E N E R GY T R A N S I T I O N .”
gold production. The company remains committed to responsible
mining practices, environmental stewardship, and community
engagement. Geology validation and infill drilling are ongoing.
While some delays have occurred, construction activities are
gradually resuming in preparation for future operations.
PT INDIK A ENERGY TBK.
Page 49
SUSTAIN ABIL IT Y R E PORT 2 0 2 4
PT INDIKA MULTI PROPERTI (INDIKA NATURE) PT KALISTA NUSA ARMADA
I N D I K A N AT U R E I S FOC U S E D O N P R O M OT I N G A K A L I S TA D R I V E S I N D O N E S I A’ S T R A N S I T I O N TO
R E G E N E R AT I V E A P P R OA C H A N D H A S B E G U N B I O M A S S S U S TA I N A B L E M O B I L I T Y W I T H I N N OVAT I V E E L E CT R I C B U S
F U E L P R O D U CT I O N C O M M I S S I O N I N G , A DVA N C I N G A N D CO M M E R C I A L F L E E T S O LU T I O N S .
S U S TA I N A B L E E N E R GY S O LU T I O N S T H R O U G H N AT U R E -
BASED METHODS. PT Kalista Nusa Armada (KALISTA) is a sustainability-driven
electric mobility solutions provider, delivering innovative and
Indika Nature is dedicated to advancing nature-based solutions efficient electric vehicle (EV) transportation for Indonesia. As
that promote environmental conservation and sustainable a subsidiary of Indika Energy, KALISTA focuses on advancing
development in collaboration with local communities. Managing clean energy adoption through its electric bus and commercial
over 135,000 hectares with a regenerative approach, the company fleet solutions, supporting businesses and public transportation
focuses on restoring ecosystems, enhancing biodiversity, and systems in reducing emissions. Committed to accelerating
improving soil health, ensuring long-term productivity while Indonesia’s transition to greener mobility, KALISTA integrates
maintaining environmental balance. Indika Nature operates cutting-edge technology, robust infrastructure, and a customer-
through three key business pillars. The Energy Plantation centric approach to ensure reliable and cost-effective EV adoption.
segment, managed by PT Jaya Bumi Paser, focuses on biomass By promoting sustainable transportation, KALISTA plays a key role
fuel production from Calliandra trees, with trial production in driving the country toward a low-carbon future.
of FSC-certified wood pellets. This initiative reinforces the
company’s commitment to renewable energy solutions and
PT ENERGI MAKMUR BUANA
sustainable resource utilization. The Environmental Services
I N V I P I O N E E R S I N D O N E S I A’ S E L E CT R I C V E H I C L E
pillar, led by PT Telaga Mas Kalimantan, is responsible for forest
E CO SY S T E M , P R OV I D I N G I N N OVAT I V E A N D S U S TA I N A B L E
and biodiversity management, developing ecosystem-supporting
M O B I L I T Y S O LU T I O N S FO R A G R E E N E R F U T U R E .
commodities, and enhancing carbon value in partnership with
local communities. Meanwhile, the Agroforestry & Non-Timber PT Energi Makmur Buana (INVI) is a leading electric vehicle (EV)
Forest Products segment, through PT Natura Aromatik Nusantara, solutions provider dedicated to accelerating Indonesia’s transition
supports the production of aromatic chemicals, essential oils, to sustainable mobility. As part of Indika Energy’s clean energy
and natural extracts. Additionally, PT Laras Ekosistem Organik, initiatives, INVI focuses on developing and deploying innovative
in collaboration with Slow Forest Coffee and Krakakoa, promotes EV technologies, including electric motorcycles and commercial
traditional coffee and cocoa farming, integrating sustainable fleets, to reduce carbon emissions and enhance energy efficiency.
agroforestry practices. Through its regenerative approach, Indika With a strong commitment to sustainability, INVI integrates
Nature is pioneering sustainable energy solutions while fostering advanced technology, reliable infrastructure, and customer-
a harmonious balance between industry and nature, ensuring centric solutions to support widespread EV adoption. By fostering
environmental preservation and long-term economic benefits for a greener transportation ecosystem, INVI plays a vital role in
local communities. shaping Indonesia’s low-carbon future.
PT ILECTRA MOTOR GROUP
I M G D R I V E S I N D O N E S I A’ S E N E R GY R E VO LU T I O N BY PT XAPIENS TEKNOLOGI INDONESIA
A C C E L E R AT I N G T H E G R OW T H O F E L E CT R I C T WO -
X A P I E N S D R I V E S D I G I TA L T R A N S FO R M AT I O N W I T H
W H E E L E R S , P R O M OT I N G M O R E S U S TA I N A B L E M O B I L I T Y
C U T T I N G - E D G E I CT S O LU T I O N S , S E C U R I N G A N A I R A D I O
S O LU T I O N S A C R O S S T H E C O U N T R Y.
P R OJ E CT A N D A DVA N C I N G A I , I OT I N N OVAT I O N S .
PT Ilectra Motor Group (IMG) specializes in electric vehicle (EV)
Xapiens Teknologi Indonesia is a leading ICT company offering
solutions. The company is dedicated to promoting sustainable
innovative solutions in artificial intelligence, digital platforms,
mobility by providing innovative EV technologies and services,
cybersecurity, cloud services, ERP, and data analytics. With over
especially for two-wheelers. To support the acceleration of EV in
a decade of experience, Xapiens helps businesses optimize
Indonesia, ALVA has built experience centers in various locations
operations and drive digital transformation through cutting-edge
such as in Jakarta, Bali, Bandung, Surabaya, and Semarang to
technologies and expert consulting. Xapiens has secured an AI
boost customers’ experience with ALVA EV. ALVA’s EV motorcycle
radio technology project, set for completion by 2025. Additionally,
models adhere to the government’s local content requirements,
it is collaborating on various initiatives, including fleet
demonstrating the company’s commitment to advancing clean
management for ALVA and KALISTA, X-Plant for Indika Nature,
transportation while also contributing to the national economy.
RFID coal chain for Kideco, and an IoT dashboard for EMITS.
ALVA has secured ISO 9001 and 14001 certifications and launched
Experience Centers in major cities. At the GIIAS event in mid-2024,
the company unveiled new models and expanded Boost Charge
Stations across the country. ALVA has now partnered with KALISTA
and Voltron to install charging stations at popular locations.
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In Medan, KALISTA’s EV fleets use AI from Xapiens for real-time monitoring of emissions, fleet status, and driver conditions—enabling centralized, smart management across Indonesia.
Page 51
SUSTAIN ABIL IT Y R E PORT 2 0 2 4
MANAGING RISKS:
OUR STRATEGIES,
ACTIONS, AND IMPACTS
R I S K M A N AG E M E N T I S T H E B AC K B O N E O F O U R LO N G -T E R M
VA LU E C R E AT I O N . BY E M B E D D I N G A R O B U S T R I S K M A N AG E M E N T
F R A M E WO R K AC R O S S O U R P O RT FO L I O , W E S A F E G U A R D O U R
B U S I N E S S W H I L E A L I G N I N G G R OW T H S T R AT E G I E S W I T H G LO B A L
S U S TA I N A B I L I T Y S TA N DA R D S . T H I S P R OACT I V E A P P R OAC H
A L LOW S U S TO M I T I GAT E U N C E RTA I N T I E S , CA P I TA L I Z E O N
O P P O RT U N I T I E S , A N D R E I N FO R C E O U R L E A D E R S H I P I N
I N D O N E S I A’ S T R A N S I T I O N TO A S U S TA I N A B L E , LOW - CA R B O N
FUTURE.
At Indika Energy Group, we embrace a diversified portfolio to ⚫ ESG risk assessments: Enhancing identification,
balance growth with resilience, ensuring we can adapt and thrive disclosure, and mitigation of climate-related risks. [GRI
in a rapidly changing global environment. By investing in emerging 3-3]
sectors such as renewable energy, nature-based solutions, electric ⚫ Leadership accountability: Strengthening board and
vehicles, logistics, and digital technology, we proactively address executive oversight on ESG performance. [GRI 2-9, 2-12]
the unique challenges and opportunities of each field.
⚫ Integration into business strategy: Embedding ESG risk
Risk management is the backbone of our long-term value insights into operational and investment decisions. [GRI
creation. By embedding a robust risk management framework 2-23]
across our portfolio, we safeguard our business while aligning ⚫ Climate adaptation & mitigation: Implementing low-
growth strategies with global sustainability standards. This carbon solutions and resilience-building initiatives. [GRI
proactive approach allows us to mitigate uncertainties, capitalize 201-2]
on opportunities, and reinforce our leadership in Indonesia’s To strengthen climate risk management, we follow a structured
transition to a sustainable, low-carbon future. five-step process:
Sustainability is central to our strategy as we transition toward 1. Risk identification: Engaging cross-functional
a low-carbon future while maintaining business resilience. Our teams to map climate-related risks. [GRI 3-3]
commitment to achieving net-zero emissions by 2050 is backed
by a structured approach to managing climate-related risks and 2. Risk assessment: Utilizing quantitative risk assessments
opportunities, balancing energy security with decarbonization to evaluate financial and operational impacts. [GRI 201-2]
efforts.
3. Mitigation planning: Developing targeted strategies to
Recognizing the urgency of climate action, we conducted an minimize exposure and enhance resilience. [GRI 305-5]
initial qualitative climate scenario analysis in 2024 to assess
both physical and transition risks impacting our business. In line 4. Monitoring and reporting: Continuously updating
with Indonesia’s carbon pricing policies and global sustainability risk metrics and aligning with GRI, UNGC,
trends, we continuously refine our risk management framework. WEF SCM parameters, and with Indonesia’s
Additionally, we have incorporated feedback from Sustainalytics, regulatory framework. [GRI 2-12, 2-27]
identifying key areas for improvement in ESG risk management: 5. Review adaptation: Refining risk strategies
in response to evolving market, policy,
and climate conditions. [GRI 2-22]
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50
We are strengthening our approach by quantifying climate- risks — including floods, heatwaves, and landslides—present
related risks and opportunities while integrating renewable operational and financial challenges. These hazards can disrupt
investments and transition pathways into our business model production, increase operational costs, and affect worker safety.
[GRI 201-2]. These efforts enhance the long-term resilience of our
operations, creating sustainable value while contributing actively Potential key drivers:
to Indonesia’s net-zero transition [GRI 305-5].
⚫ Climate change-induced extreme weather: Rising
To complement our comprehensive risk management system, temperatures increase the likelihood of heatwaves, while
we have established a dedicated department responsible for changes in rainfall patterns elevate risks of flooding and
identifying, monitoring and assessing potential risks across landslides, particularly in open-pit mining areas. [GRI 201,
the organization [GRI 2-22]. This department reports directly 302, 305, 403, 413]
to the Director responsible for Internal Audit and Risk, ensuring ⚫ Regulatory pressures on climate adaptation: Governments
clear oversight and accountability [GRI 2-23]. To further enhance and regulatory bodies are imposing stricter climate
governance, our Internal Audit and Risk department holds resilience requirements for businesses operating in high-
quarterly meetings with the Board of Commissioners (BOC) risk areas. [GRI 201, 307, 305, 413]
and the Board of Directors (BOD) under the Audit, Risk, and ⚫ Operational vulnerability of mining sites: Mining
Compliance Committee [GRI 2-21]. These sessions provide in- operations are often geographically exposed to
depth risk performance reviews, discuss emerging risks and environmental risks, requiring proactive risk management
trends, and outline mitigation strategies. to maintain continuity. [GRI 201, 302, 305, 306]
Our commitment to ISO 31000 guidance for risk assessment and Potential impacts:
management further supports this process, ensuring that our
⚫ Operational risks: Severe floods or landslides could
risk management approach is aligned with international best
disrupt mining operations, leading to production halts
practices, remains proactive, and is fully integrated with our
and increased downtime. GRI 201, 302, 305, 403, 413]
business operations and broader sustainability goals [GRI 2-9].
⚫ Financial risks: Damage to infrastructure could result
in high maintenance costs, while non-compliance with
ASSESSING OUR CLIMATE-RELATED RISKS AND climate adaptation regulations may lead to financial
OPPORTUNITIES penalties. [GRI 201, 207, 305]
Quantifying the impact of climate-related risks and opportunities ⚫ Health and safety risks: Heat and unpredictable weather
is essential to managing, mitigating, and adapting to climate conditions could pose significant risks to worker safety,
change. This approach provides deeper insight into how climate leading to potential productivity losses and reputational
factors may impact our operations, financial performance, and damage. GRI 403, 413]
long-term sustainability. [GRI 201-2]
⚫ Financial: Increased operational costs due to innovation
Building on our initial 2024 qualitative assessment, we have and technology, carbon taxes, emission reduction
expanded our assessment to incorporate a more quantitative requirements, and the need to purchase carbon credits.
approach. This enhanced analysis evaluates operations sites, [GRI 305-1]
asset vulnerabilities, and financial exposure, offering a more ⚫ Reputational: Failure to meet clean energy targets could
comprehensive understanding of both transition and physical damage Indika Energy’s public image, especially in
risks. [GRI 305-2] markets with strong climate-conscious consumer bases.
[GRI 102-22]
As part of this process, we conducted a screening-level physical
⚫ Operational: Transitioning too slowly from fossil fuels to
risk assessment of our material assets, evaluating their exposure
renewables could lead to stranded assets, where fossil
under climate scenarios for both 2030 and 2050. Regular updates
fuel-based plants and infrastructure lose value as global
ensure that our risk management framework remains proactive in
carbon regulations become stricter. [GRI 305-1]
addressing emerging threats. These assessments provide a clearer
picture of potential climate-related impacts [GRI 305-1], enabling Mitigation actions:
us to strengthen resilience across our operations and align with
⚫ Flood and landslide prevention: Upgrading drainage
long-term sustainability goals [GRI 305-2]. This assessment-based
systems and reforesting vulnerable areas to reduce
analysis focused on the following:
soil erosion and minimize flood impact. Conducting
geotechnical assessments to identify high-risk zones
ENERGY BUSINESS FOCUS for landslides and reinforcing slopes with appropriate
The Energy Pillar, which includes companies like Kideco, Tripatra, engineering measures. [GRI 201, 302, 303, 305, 306]
and Indika Indonesia Resources, plays a key role in the sector. With ⚫ Heat adaptation strategies: Adjusting working hours
the global transition to renewable energy accelerating, these during peak heat periods to protect workers from heat
businesses face increasing risks from regulatory shifts, carbon stress. Enhancing on-site cooling facilities and ensuring
pricing mechanisms, and the transition from fossil fuels to cleaner hydration protocols for employees. [GRI 403, 413]
energy sources. In addition to transition risks, climate physical
PT INDIK A ENERGY TBK.
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SUSTAIN ABIL IT Y R E PORT 2 0 2 4
⚫ Climate resilience: Strengthening early warning systems ⚫ Reputational: Negative public perception of infrastructure
for extreme weather events to allow for proactive or logistics operations are seen as unsustainable or
response planning. Incorporating climate risk mapping vulnerable to climate risks. [GRI 102-22]
in operational strategies to anticipate and mitigate risks Mitigation actions:
more effectively. [GRI 201, 305, 413]
⚫ Expanding investments in renewable energy technologies ⚫ Building more resilient infrastructure, such as climate-
like solar to reduce reliance on fossil fuels. [GRI 305-2] proofing facilities and transportation networks. [GRI 305-
1]
⚫ Divesting from coal-related assets and increasing focus
on low-carbon technologies, such as energy storage and ⚫ Transitioning to cleaner transportation options (electric
smart grid systems. [GRI 305-1] trucks) to reduce carbon emissions and align with
sustainability goals. [GRI 305-2]
Expected targets:
⚫ Collaborating with stakeholders (government, private
⚫ Emission reduction: Achieve a 33% reduction in scope 1 sector, NGOs) to develop climate-resilient supply chains.
and 2 GHG emissions by 2030 (relative to 2020 baseline), [GRI 305-1]
with a commitment to reaching net-zero emissions by Expected targets:
2050. [GRI 305-1]
⚫ Renewable energy share: Target 35% of total energy ⚫ Sustainable infrastructure: Ensure that new logistics
production to come from renewable sources by 2030. [GRI infrastructure aligns with low-carbon principles. [GRI 305-
305-2] 2]
⚫ Climate resilience: Ensure that Kideco’s high-risk ⚫ Emission reduction: Decrease in transportation-related
operational sites implement flood and landslide emissions by 2030 through electrification and other green
mitigation measures by 2030, alongside enhanced safety logistics solutions. [GRI 305-1]
protocols and adaptation strategies.
MINERALS BUSINESS FOCUS
⚫ Operational continuity: Minimize production downtime
due to extreme weather events by implementing adaptive The Minerals Pillar, which includes companies such as Masmindo
mining schedules and protective engineering solutions. and Mekko, operates in an industry that faces significant
[GRI 201, 305, 413] environmental and sustainability challenges. Water usage,
emissions, biodiversity loss, and broader sustainability concerns
LOGISTICS AND INFRASTRUCTURE BUSINESS FOCUS are key concerns. Additionally, mining operations are increasingly
exposed to physical climate risks such as floods, heatwaves, and
The Logistics and Infrastructure Pillar, which includes companies
landslides, which can disrupt operations and pose safety hazards.
like Interport, plays a critical role in managing supply chains and
[GRI 303-1, GRI 305-2]
logistics. With the increasing frequency of extreme weather
events linked to climate change, this sector faces heightened risks, Potential key drivers:
including operational disruptions, increased costs, and evolving
environmental compliance requirements. [GRI 201-2] ⚫ Growing demand for minerals is essential for renewable
energy (e.g. lithium for batteries, copper for wiring),
Potential key drivers: increasing the pressure to mine more efficiently and
sustainably. [GRI 305-1]
⚫ Increasing frequency and intensity of natural disasters
such as floods, hurricanes, and droughts, which are linked ⚫ Stricter environmental regulations on deforestation,
to climate change. [GRI 305-1] water usage, and pollution in mining activities. [GRI 303-1]
⚫ Rising demand for low-carbon transportation solutions, ⚫ Rising concerns over the physical risks of climate change,
with governments imposing stricter regulations on including extreme weather events, water scarcity, and
emissions in the logistics and transportation sector. [GRI natural disasters affecting mining sites. [GRI 201-2]
305-2] ⚫ Public scrutiny on mining’s environmental footprint,
⚫ Growing focus on sustainable infrastructure that especially regarding biodiversity loss, land degradation,
minimizes environmental impacts and meets regulatory and rehabilitation efforts. [GRI 304-2]
standards. [GRI 301-2] Potential impacts:
Potential impacts:
⚫ Operational: Disruptions due to extreme weather events
⚫ Operational: Disruptions in supply chains caused by such as floods and landslides, impacting site safety and
extreme weather or natural disasters, leading to delays, production continuity. Compliance failures may lead to
shortages, and increased operational costs. [GRI 305-1] shutdowns or resource access restrictions. [GRI 305-2]
⚫ Financial: Increased capital expenditure required to ⚫ Financial: Increased costs for climate adaptation
upgrade infrastructure to be more climate-resilient, measures, innovation and technology, environmental
as well as costs related to compliance with new compliance, and investment in sustainable mining
environmental regulations. [GRI 305-2] technologies. [GRI 305-1]
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⚫ Reputational: Heightened scrutiny from regulators, ⚫ Key areas requiring further clarity include pricing
investors, and communities, with potential loss of market mechanisms for renewable energy, carbon pricing
confidence if linked to environmental damage or unsafe policies, and permit processes for clean energy projects.
operations. [GRI 304-2] Potential impacts:
Mitigation actions:
⚫ Financial: Potential loss of market share or investors if
⚫ Enhancing climate resilience by implementing flood green products underperform or fail to meet sustainability
control, heat adaptation strategies, and slope stabilization claims. [GRI 302-1]
measures to prevent landslides. [GRI 201-2] ⚫ Reputational: Harm to brand image if found guilty of
⚫ Implementing water waste management, and making false or exaggerated environmental claims. [GRI
biodiversity strategies to reduce environmental impact 419-1]
and improve resource efficiency. [GRI 303-1] ⚫ Market position: Falling behind competitors if new
⚫ Investing in cleaner extraction technologies, recycling green technologies or services are not developed or
initiatives, and waste minimization solutions to align with implemented quickly enough. [GRI 305-2]
sustainable practices. [GRI 305-2] Mitigation actions:
⚫ Strengthening stakeholder engagement through
transparent environmental disclosures and proactive ⚫ Developing clear, evidence-backed green product
sustainability initiatives. [GRI 304-2] offerings, supported by sustainability certifications and
transparency in reporting. [GRI 302-1]
Expected targets:
⚫ Strengthening product life-cycle analyses to ensure that
⚫ Water usage: Reduce water withdrawal intensity in all claims are verifiable and aligned with environmental
mining operations by 32% by 2030 through advanced benefits. [GRI 305-2]
water recycling and conservation practices. [GRI 303-1] ⚫ Investing in research and development for innovative
⚫ Reclamation: Achieve a 20% increase in land reclamation sustainable technologies and business models. [GRI 305-
efforts by 2025 and implement biodiversity-positive 1]
mining practices. [GRI 304-2] Expected targets:
⚫ Physical risk adaptation: Ensure that 100% of high-
risk mining sites have flood, heatwave, and landslide ⚫ Revenue growth: Increase revenue from green business
mitigation measures in place by 2030. [GRI 201-2] ventures by 50% by 2028. [GRI 302-1]
⚫ Market share: Enhance market share in renewable energy
GREEN BUSINESS FOCUS solutions. [GRI 305-1]
The Green Business Pillar, which includes companies like
ELECTRIC VEHICLE (EV) BUSINESS FOCUS
EMITS and Indika Nature, is dedicated to sustainability and
renewable energy solutions. While these businesses are well- The EV Pillar, which includes companies like ALVA, INVI, and
positioned to support Indonesia’s transition to a low-carbon KALISTA, is at the forefront of driving electric vehicle adoption
economy, they also face unique challenges related to the in Indonesia. As the global automotive industry accelerates its
competitive pressures in the fast-evolving green sector. [GRI 419-1] transition toward cleaner alternatives, these companies face key
Potential key drivers: challenges, including rapid technological advancements, evolving
consumer preferences, and increasing market competition, making
⚫ Rapid expansion in green technologies, creating the pressure to innovate and scale EV production critical. [GRI 302-1]
competitive pressures in the market for renewable energy Potential key drivers:
solutions, eco-friendly products, and services. [GRI 305-2]
⚫ Government policies and regulations: Incentives such as
⚫ Heightened scrutiny from regulators and consumers on
subsidies for electric vehicle purchases, tax breaks for EV
corporate environmental claims, making the companies
manufacturers, and stringent emissions standards are key
need to meet their sustainability promises. [GRI 305-2]
drivers of growth in the EV sector. [GRI 302-1]
⚫ Increasing investor interest in sustainability and
⚫ Technological advancements: Continuous innovation
environmental, social, and governance (ESG) criteria,
in battery technology, electric drivetrains, and charging
driving the need for credible, sustainable, and impactful
infrastructure is critical to the sector’s success. Reductions
green business strategies. [GRI 102-22]
in battery costs and improvements in energy efficiency
⚫ Resilient and sustainable supply chain for long-term could drive wider adoption. [GRI 302-1]
business continuity.
⚫ Consumer awareness and demand: Growing
⚫ Evolving policies, adjustments in incentives, and ongoing environmental consciousness among consumers and
refinements in implementation guidelines present their willingness to switch to electric vehicles can boost
considerations for long-term planning and investment the EV market, particularly as fuel prices rise and climate
stability. change concerns mount. [GRI 305-2]
PT INDIK A ENERGY TBK.
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SUSTAIN ABIL IT Y R E PORT 2 0 2 4
⚫ Charging infrastructure development: Expansion of ⚫ Charging infrastructure: Expand charging stations across
charging stations and investments in fast-charging major cities in Indonesia, aiming for an increase in
technologies are essential for increasing EV adoption available public charging stations to support widespread
rates. Inadequate charging networks can hinder growth. EV adoption [GRI 302-1].
[GRI 302-1] ⚫ Sustainability commitment: Ensure EV components
Potential impacts: (including batteries) are recyclable and implement a
closed-loop system for battery life cycle management.
⚫ Operational: Slow market uptake of electric vehicles due [GRI 302-1]
to limited consumer adoption, high production costs, and
infrastructure limitations can delay anticipated growth DIGITAL VENTURES BUSINESS FOCUS
and revenue generation. [GRI 302-1] The Digital Venture Pillar encompasses Xapiens, a company at
⚫ Financial: Increased research and development, and the forefront of developing innovative digital solutions, including
capital expenditures in developing new technologies and artificial intelligence (AI), the Internet of Things (IoT), and big data
scaling up production may strain short-term financial analytics. As digitalization accelerates across industries, Xapiens
performance, especially if demand does not meet is helping Indika Energy Group leverage new technologies
expectations. [GRI 302-1] to enhance operations, optimize efficiency, and promote
⚫ Reputational: Companies that fail to stay competitive sustainability. However, digital transformation brings risks related
with emerging EV technologies, or those that overstate to data privacy, cybersecurity, and the need to stay ahead of rapid
environmental benefits without sufficient evidence, risk technological changes [GRI 418-1].
facing reputational damage from both consumers and
Potential key drivers:
environmental groups. [GRI 419-1]
⚫ Market position: Failure to rapidly innovate or meet ⚫ The rapid growth of digital platforms, including IoT, AI,
consumer demand for sustainable mobility options could and data-driven solutions, enhance operational efficiency
result in a loss of market share to more agile competitors, and sustainability. [GRI 418-1]
affecting long-term growth. [GRI 305-2] ⚫ Increasing regulatory pressure around data privacy and
Mitigation actions: cybersecurity, particularly as companies handle more
sensitive data. [GRI 418-1]
⚫ Investment in research and development: Allocate more
⚫ The risk of technological disruptions in the form of cyber-
resources to advancing battery technology, vehicle range,
attacks, system failures, or data breaches that could
and charging speed, and develop affordable electric
compromise operations. [GRI 418-1]
vehicles that meet diverse consumer needs. [GRI 302-1]
Potential impacts:
⚫ Partnerships and collaboration: Work closely with
governments, tech companies, and other manufacturers ⚫ Operational: Potential downtime or disruption in services
to improve EV infrastructure, from charging networks to if a cyberattack or data breach occurs. [GRI 418-1]
battery recycling programs. [GRI 302-1]
⚫ Financial: Legal liabilities, penalties, or fines for non-
⚫ Consumer engagement: Implement educational compliance with data protection laws or for damage
campaigns to raise consumer awareness about the caused by data breaches. [GRI 418-1]
benefits of EVs, including environmental impact and
⚫ Reputational: Loss of trust from customers and partners if
cost savings over the vehicle’s life cycle, helping to drive
data is compromised or services are disrupted. [GRI 418-1]
demand. [GRI 305-2]
Mitigation actions:
⚫ Cost reduction: Focus on optimizing production processes
to reduce vehicle and battery costs, ensuring that EVs ⚫ Strengthening data protection protocols and
become price-competitive with internal combustion implementing cybersecurity best practices [GRI 418-1].
engine vehicles, especially for the mass market. [GRI 302-
⚫ Investing in blockchain and encryption technologies to
1]
secure digital transactions and ensure data privacy. [GRI
⚫ Sustainability reporting and disclosure: Ensure 418-1]
transparency in sustainability efforts by providing
⚫ Conducting regular cybersecurity audits and compliance
clear, verified data on emissions reductions, vehicle
checks to ensure robust systems. [GRI 418-1]
recyclability, and overall environmental performance to
avoid accusations of greenwashing. [GRI 419-1] Expected target:
Expected targets: ⚫ Compliance: Achieve 100% compliance with data privacy
regulations. [GRI 418-1]
⚫ Market share: Expand the electric vehicle market in
Indonesia by 2030, with a focus on expanding the ⚫ Cybersecurity resilience: Maintain zero significant
consumer base beyond urban centers. [GRI 302-1] cybersecurity incidents or data breaches. [GRI 418-1]
⚫ Revenue growth: Achieve year-over-year growth in electric
vehicle sales as infrastructure and market readiness
expand. [GRI 302-1]
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FROM RISK TO RESILIENCE: TRANSITION RISK
ASSESSMENTS FOR INDIKA ENERGY’S LOW-
CARBON FUTURE
Governments of the jurisdictions where Indika Energy Group FUTURE CONSIDERATIONS
operates are implementing carbon pricing mechanisms to drive While we continue assessing our transition risks, we have
emissions reductions and incentivize low-carbon investments conducted a preliminary financial impact analysis based on our
[GRI 201-2, GRI 305-1, GRI 305-2]. In Indonesia, Presidential verified 2024 GHG emissions data [GRI 305-2]. Given ongoing
Regulation 98/2021 lays the foundation for a domestic carbon regulatory uncertainties, we have adopted a conservative worst-
market, introducing carbon trading and results-based payments. case scenario approach, applying a gross operational control
This regulation is key to shaping Indonesia’s energy transition and methodology across our coal assets [GRI 305-1]. Based on this
has directly implications for Indika Energy Group’s businesses, assessment, the potential financial impact of carbon pricing on
including Indika Nature’s carbon projects and renewable energy Indika Energy’s business could increase, emphasizing the urgency
initiatives [GRI 305-2]. of accelerating decarbonization efforts.
The Ministry of Environment and Forestry Regulation 21/2022 Indika Energy Group remains committed to proactively managing
further details carbon trading and taxation mechanisms, though climate-related financial risks while leveraging opportunities in
sector-specific guidelines for oil, gas, and other industries are still the carbon market. Through innovation, strategic diversification,
pending. The latest regulatory development, Financial Services and policy engagement, we aim to drive Indonesia’s transition to a
Authority Regulation 14/2023, formally establishes carbon trading low-carbon economy while ensuring long-term business resilience
via the Indonesia Stock Exchange (IDX) Carbon Exchange. As a [GRI 201-2, GRI 305-2].
company actively involved in nature-based solutions, biomass
production, and carbon credit generation, Indika Nature is well-
positioned to play a key role in Indonesia’s evolving carbon market.
IMPLICATIONS FOR INDIKA ENERGY
As Indika Energy Group advances its transition from fossil fuels to
renewable energy, the carbon pricing mechanism introduces both
risks and opportunities [GRI 201-2, GRI 305-1]:
⚫ Financial risk exposure: Given Indika Energy’s remaining
coal assets, an expansion of carbon taxation and emissions
regulations could increase operating costs and impact
long-term competitiveness [GRI 201-2].
⚫ Market differentiation through low-carbon solutions:
Indika Nature’s work in biomass, sustainable forestry, and
carbon sequestration presents opportunities to generate
carbon credits and establish new revenue streams in
Indonesia’s regulated carbon market [GRI 305-2].
⚫ Strategic investment in renewable energy: Indika Energy
Group’s investments in solar, electric vehicles, and biofuels
align with Indonesia’s decarbonization goals, positioning
the company as a key contributor to the country’s net-zero
ambitions [GRI 305-1].
PT INDIK A ENERGY TBK.
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SUSTAIN ABIL IT Y R E PORT 2 0 2 4
EMBEDDING SUSTAINABILITY
INTO OUR ACTIVITIES
BY A L I G N I N G W I T H G LO B A L F R A M E WO R K S A N D S U S TA I N A B I L I T Y
I N I T I AT I V E S , S U C H A S T H E I N T E R N AT I O N A L CO U N C I L O N M I N I N G
A N D M E TA L S ( I C M M ) P E R FO R M A N C E E X P E CTAT I O N S , TOWA R D S
S U S TA I N A B L E M I N I N G , A N D T H E G LO B A L R E P O RT I N G I N I T I AT I V E
( G R I ) S TA N DA R D S , A M O N G OT H E R S . T H E S E F R A M E WO R K S
I N VO LV E R I GO R O U S S E L F - A S S E S S M E N T A N D T H I R D -
PA RT Y V E R I F I CAT I O N O F O U R M A N AG E M E N T SY S T E M S A N D
P E R FO R M A N C E AC R O S S D I V E R S E S U S TA I N A B I L I T Y A R E A S .
OUR SUSTAINABILITY APPROACH
Sustainability is not just a priority; it is integral to how we operate. At Indika Energy Group, we recognize
that responsibly managing resources and mitigating environmental and social impacts are vital to our
long-term success. As stakeholders increasingly gauge our credibility by our sustainability performance,
we strive to meet and exceed their expectations.
Our sustainability efforts are built on a foundation of purpose, values, and adherence to global
standards. These benchmarks ensure accountability and consistency across our operations. By aligning
with global frameworks and sustainability initiatives, such as the International Council on Mining and
Metals (ICMM) Performance Expectations, Towards Sustainable Mining, and the Global Reporting
Initiative (GRI) Standards, among others. These frameworks involve rigorous self-assessment and third-
party verification of our management systems and performance across diverse sustainability areas. In
adhering to them, we actively demonstrate our commitment to ethical practices, accountability, and
transparency.
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OUR PURPOSE
Energizing Indonesia for a sustainable future
OUR VISION OUR MISSION
Highly trusted, innovative and enduring business partner — To develop Indonesia in a sustainable way
for sustainable value creation — To be a robust diversified investment company
— To empower our people and actively develop next generation leaders
— To be socially responsible, embracing diversity and acting with integrity
— To create exceptional value for all our stakeholders
UNITY IN DIVERSITY INTEGRITY TEAMWORK OUR VALUES AGILITY ACHIEVEMENT SOCIAL RESPONSIBILITY
CORPORATE STRATEGY
Investment in the non-coal sector Decarbonization in the company’s operational activities Divestment of high carbon portfolio
MATERIAL TOPICS
Internal and external materiality assessment process to identify material topics
Material topics are the focus of our sustainability strategy review and reporting
2025 & 2030 ESG TARGETS
ENVIRONMENT SOCIAL GOVERNANCE
SCOPE 1 AND 2 EMISSIONS LOCAL COMMUNITIES BUSINESS ETHICS
(Relative to 2020 baseline)
25% 33% 1% 80% 100%
Reduce scope 1 and 2 Reduce scope 1 and 2 1% EBIT spent on community development 80% of employees attend 100% of employees to
emissions by 25% in 2025 emissions by 33% in 2030 every year code of business conduct attend code of business
training by 2025 conduct training by 2030
50% 55% HEALTH AND SAFETY
Reduce scope 1 and 2 Reduce scope 1 and 2 100% 100%
emissions intensity per emissions intensity per 100% of board members 100% of board members
revenue by 50% in 2025 revenue by 55% in 2030 Zero to attend code of business to attend code of business
Zero fatalities every year for employees and conduct training by 2025 conduct training by 2030
10% 25% contractors
Reduce scope 1 and 2 Reduce scope 1 and 2
emissions intensity per emissions intensity per DIVERSITY AND INCLUSION CORPORATE GOVERNANCE
ton coal production by ton coal production by
10% in 2025 25% in 2030
20% 25% 30%
20% women in workforce 25% women in workforce 30% (by weight) of board
ENERGY MANAGEMENT by 2025 by 2030 & senior management
(Relative to 2020 baseline)
evaluation KPIs tied to
30% 35% 15% 20% ESG topics by 2025
Increase % RE share in the Increase % RE share in the 15% women in senior 20% women in senior
energy consumption mix energy consumption mix management by 2025 management by 2030
to 30% by 2025 to 35% by 2030
WATER MANAGEMENT
(Relative to 2020 baseline)
30% 32%
Reduce water withdrawal Reduce water withdrawal
intensity per revenue by intensity per revenue by
30% by 2025 32% by 2030
WASTE MANAGEMENT
(Relative to 2020 baseline)
40% 45%
Divert 40% of waste from Divert 45% of waste from
landfill by 2025 landfill by 2030
LAND AND BIODIVERSITY
(Relative to 2020 baseline)
20%
Increase land reclamation
area by 20% by 2025
COMPLIANCE SUSTAINABILITY COMMITTEE
Policies, Standards, Procedures, Guidelines Has oversight and ultimate responsibility.
Metrics, Reporting and Assurance It receives regular updates of how our business is performing
across all our operations, sustainability related material risk areas.
PT INDIK A ENERGY TBK.
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SUSTAIN ABIL IT Y R E PORT 2 0 2 4
SUSTAINABILITY GOVERNANCE POLICY COMMITMENTS
Good corporate governance (GCG) extends beyond regulatory As we advance our low-carbon transition, Indika Energy Group
compliance. At Indika Energy Group, it encompasses identifying remains committed to enhancing our governance framework and
and managing risks, fostering stakeholder engagement, and operational standards. We have updated key policies, particularly
ensuring fairness and accountability in all operations. Through in human rights, to align with global best practice and evolving
collaboration and transparency, we create positive societal stakeholder expectations.
impacts while maintaining our purpose of energizing Indonesia
for a sustainable future. [GRI 2-22] As part of these efforts, we are also renewing our Standard
Operating Procedures (SOPs) across all business units to integrate
Our Sustainability Committee plays a vital role in this journey. sustainability principles, improve efficiency, and uphold ethical
By overseeing key initiatives in health, safety, environment, conduct. These updates ensure our operations are prepared
community, and human rights, the committee ensures our to adapt to future challenges while contributing to a just and
policies and Code of Conduct reflect our values and performance equitable transition toward a low-carbon economy.
expectations. Regular evaluations and gap analyses conducted at
the working level keep us on track toward achieving our targets for
TRACKING PROGRESS
2028 and 2050.
We monitor sustainability progress quarterly through
Sustainability Committee meetings and detailed gap analyses
across all ESG dimensions, ensuring steady advancement toward
our 2028 and 2050 goals. In addition, we regularly engage with our
business units, supporting them in building their sustainability
strategies and journey while ensuring alignment with Indika
Energy’s net zero target. These efforts help us stay accountable
and on track toward our long-term sustainability objectives.
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OUR ORGANIZATIONAL STRUCTURE
Internal Audit
Einstein Erlangga
Corporate Secretary
Adi Pramono
Director & Group Chief
Financial Officer
Retina Rosabai
Chief of Corporate Services
and External Relations
Johanes Ispurnawan
Head of Human Head of Finance & Head of Corporate Head of Investor
Head of Legal
Capital & Services Accounting Finance Relations
Beni Pandu Nicky Mario Muthia A. H.
Lista Kusnadi Ricardo Silaen
Gautama Kurniawan Soebagjo
External Relations
Nurhidayat
Firmansyah
PT INDIK A ENERGY TBK.
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SUSTAIN ABIL IT Y R E PORT 2 0 2 4
President Director
M. Arsjad Rasjid P.M.
Vice President Director
& Group CEO
Azis Armand
Head of Corporate
Communications,
Sustainability & CEO Office
Ricky Fernando Gouwadi
Director & Group Chief Director & Group Chief
Investment Officer Portfolio Officer
Purbaja Pantja Kamen K. Palatov
Head of Corporate Chief Chief Chief
Head of Business
Planning & Portfolio Risk & Compliance Group Strategy & Information CEO Anak
Development
Management Officer New Venture Officer Perusahaan
CEO of
Dyah Paramita Sreecharan Prabaharan Subsidiaries
Alif Sasetyo Lucas Djunaidi
Sulistyaningsih Nagarkal V. Gopalan
Direct report
Communication line
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In collaboration with Solar Chapter, the initiator of the Water for Boen program, Indika Energy assisted units of solar photovoltaic for Boen Village. Desa Boen, East Nusa Tenggara
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SUSTAIN ABIL IT Y R E PORT 2 0 2 4
ALIGNING WITH SDGS AND EXTERNAL
COMMITMENTS: A COLLECTIVE
EFFORT TOWARD SUSTAINABLE
IMPACT
ADVANCING THE SUSTAINABLE DEVELOPMENT to bridging global and local frameworks, ensuring accountability
GOALS (SDGS) while supporting Indonesia’s sustainability agenda and our
Indika Energy Group is dedicated to advancing the United journey toward net-zero emissions by 2050. [GRI 102-10]
Nations’ Sustainable Development Goals (SDGs) as a framework
for addressing global challenges. By mapping our material ESG SIGNATORIES AND MEMBERSHIPS
issues against the relevant SDGs, we ensure our contributions are
Indika Energy is proud to be a signatory to the United Nations
measurable and impactful. Transparent reporting using standards
Global Compact (UNGC), reinforcing our commitment to its
such as the GRI reinforces our accountability and demonstrates
Ten Principles in the areas of human rights, labor, environment,
our progress in fostering sustainable development. [GRI 102-13]
and anti-corruption. As part of this global initiative, we actively
integrate these principles into our business strategy, culture, and
DISCLOSURE STANDARDS AND FRAMEWORKS operations, contributing to the achievement of the Sustainable
Indika Energy is committed to transparency and accountability Development Goals (SDGs). Through Kideco, we are also members
in its sustainability reporting, aligning with globally recognized of the International Council on Mining and Metals (ICMM),
disclosure standards and frameworks. Our reporting adheres to demonstrating our dedication to sustainable and responsible
the Global Reporting Initiative (GRI) Standards 2021, ensuring mining practices. [GRI 102-13]
comprehensive disclosures that address material environmental,
Further strengthening our commitment to sustainability, Indika
social, and governance (ESG) impacts. We also integrate the World
Energy is an active participant in the Powering Past Coal Alliance
Economic Forum’s Stakeholder Capitalism Metrics, reflecting
(PPCA), supporting the transition to clean energy by phasing out
our alignment with universal ESG indicators that promote long-
unabated coal power. Additionally, as a member of the Indonesia
term value creation. Additionally, we uphold the United Nations
Business Council for Sustainable Development (IBCSD), we
Global Compact’s 10 Principles, embedding human rights, labor,
collaborate with leading businesses to promote sustainable
environment, and anti-corruption principles into our operations
development in Indonesia. These memberships and partnerships
and disclosures. [GRI 102-12]
underscore our dedication to global and local sustainability goals,
On a national level, we comply with Indonesia’s Financial Services fostering impactful contributions toward a more sustainable
Authority Regulation (POJK 51/2017), providing transparent future. [GRI 102-12]
sustainability-related information in line with regulatory
expectations. These alignments demonstrate our commitment
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REGULATORS AND POLICYMAKERS RESPONSIBLE PRODUCTION AND SOURCING
Indika Energy actively collaborates with regulators and STANDARDS
policymakers to ensure compliance with sustainability-related Indika Energy upholds the highest standards of responsible
regulations while contributing to the development of frameworks production and sourcing, ensuring that our operations prioritize
that promote responsible business practices. We adhere to POJK environmental protection, social responsibility, and ethical
51/2017, Indonesia’s Financial Services Authority regulation that practices. As a member of the International Council on Mining
mandates sustainability reporting for publicly listed companies. and Metals (ICMM) through our subsidiary, we adhere to its
This compliance reflects our commitment to transparency and Mining Principles, which establish a framework for sustainable
alignment with national sustainability objectives. development in the mining and metals industry. This includes
commitments to ethical business conduct, respect for human
Additionally, we incorporate globally recognized standards, rights, robust environmental management, and engagement
such as the Forest Stewardship Council (FSC) principles, to guide with local communities. [GRI 102-16]
our sustainable forestry practices, ensuring environmental
stewardship and ethical resource management. These
engagements with regulators and standard-setting bodies By integrating these principles into our practices, we promote
underscore our dedication to maintaining the highest levels transparency, accountability, and sustainability across our
of compliance while advancing sustainability in Indonesia and value chain, reinforcing our dedication to responsible resource
beyond. [GRI 103-2] management and contributing to a positive impact for
stakeholders and the environment. [GRI 308-1]
ESG RATINGS AGENCIES AND BENCHMARKS
Indika Energy remains committed to excellence in environmental, OTHER
social, and governance (ESG) performance, continuously engaging Apart from our global commitments, together with our
with leading ESG rating agencies to assess and enhance our subsidiaries, we also support various local and industry-specific
sustainability efforts. organizations that align with our mission to drive sustainable
growth and contribute to Indonesia’s energy transition. These
In 2024, Sustainalytics rated Indika Energy at 39.9, placing us in the include:
high-risk category while recognizing our strong ESG management.
This underscores our ongoing commitment to mitigating risks and ⚫ Masyarakat Energi Terbarukan Indonesia (METI)
expanding our green initiatives. ⚫ Kamar Dagang dan Industri (KADIN)
Through our participation in the Carbon Disclosure Project (CDP), ⚫ Asosiasi Emiten Indonesia (AEI)
we transparently report climate-related data, demonstrating our ⚫ Asosiasi Pengusaha Indonesia (APINDO)
progress in emissions reduction and climate risk management. In ⚫ Asosiasi Pertambangan Batubara Indonesia (APBI-ICMA)
2024, we maintained a C score for both Climate Change and Water
⚫ Indonesian Mining Association (API-IMA)
Security, while voluntarily disclosing biodiversity-related data for
the first time, with an updated score on progress. ⚫ Indonesian Contractors Association (AKI)
⚫ Masyarakat Ketenagalistrikan Indonesia (MKI)
Additionally, MSCI ESG Ratings provide insights into our resilience
against long-term ESG risks, benchmarking our practices against
Through these collaborations, we actively engage in advancing
global sustainability standards. In 2024, Indika Energy received a
industry standards, promoting renewable energy initiatives, and
BBB rating, reflecting our continued efforts to align with investor
contributing to the development of a more sustainable future for
and stakeholder expectations while driving sustainable value
Indonesia. [GRI 2-28, 102-13]
creation. [GRI 102-6]
PT INDIK A ENERGY TBK.
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Our CANTING (Cegah dan Tangani Stunting) Berkelanjutan program includes the Doctor Specialist Goes to Community initiative, which provides local communities with the opportunity to consult with and receive medical check-ups from specialist doctors.
Page 66
Currently, EMITS is progressing with the installation of 60 MW of solar PV across Java, Bali, Sumatra, Kalimantan, and Sulawesi.
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KALISTA partners with Bluebird to accelerate EV fleet adoption in Medan by deploying 60 electric buses, promoting sustainable and eco-friendly urban transportation.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
CHAPTER 3
DRIVING THE TRANSITION
TO NET ZERO WITH
INNOVATION AND CLIMATE
ACTION
SDG
302-1, 302-2, 302-3, 302-4, 302-5, 3-3, 303-1, 303-2, 303-3, 303-4 , 3 0 3 -
GRI 5, 304-1, 304-2, 304-3, 304-4, 305-1, 305-2, 305-3, 305-4, 305-5, 3 0 5 - 7 ,
306-1, 306-2, 306-3, 306-4, 306-5
P OJ K F.4, F.6, F.7, F.12
G LO B A L C O M PA CT P R I N C I P L E 7, P R I N C I P L E 8, P R I N C I P L E 9
WEF SCM PLANET PILLAR
Indika Energy Group is committed to driving a low-carbon future while supporting Indonesia’s energy needs.
We are actively decarbonizing our operations, advancing carbon-free power solutions, and developing a clear
roadmap toward achieving net-zero emissions by 2050. When we first embarked on this sustainability journey,
we set our ambitions high because we understood that was the only way to effect meaningful change. Today,
our ambitions are no less high, but a recalibration that accounts for various internal and external factors that
emerged over the course of the past year shows we can still achieve our goals with some modification to our
timeline.
In light of these evolving market dynamics and energy demands, we have strategically adjusted our timeline
to 2028 to achieve at least 50% revenue from our non-coal business. This decision positions us to deliver on our
sustainability commitments without compromising our operational and financial resilience. In doing so, we are
able to amplify investments in renewable energy projects and develop more impactful programs to upskill our
workforce and support communities impacted by the transition.
By tightening our emissions targets and embracing innovative strategies, we aim to strike a balance between
Indonesia’s energy security and ensuring a just clean-energy transition. Our efforts include investments in
renewable energy, electric mobility, and nature-based solutions, alongside technologies to improve efficiency
and reduce emissions. Through strategic partnerships and a focus on equity, we are ensuring that our energy
transition benefits both the environment and the communities we serve.
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ALVA’s electric vehicle manufacturing facility in Cikarang, West Java — a key milestone in Indonesia’s transition toward sustainable mobility and local innovation.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
SHIFTING FROM TRADITIONAL ENERGY
SOURCES TO CLEANER, MORE
SUSTAINABLE ALTERNATIVES
AT I N D I K A E N E R GY G R O U P, W E A R E CO M M I T T E D TO
T R A N S I T I O N I N G F R O M T R A D I T I O N A L FO S S I L F U E L S TO
C L E A N E R , M O R E S U S TA I N A B L E A LT E R N AT I V E S A S PA RT O F
O U R LOW - CA R B O N F U T U R E S T R AT E GY. T H I S I S C E N T R A L TO
O U R S T R AT E GY TO R E D U C E O U R R E L I A N C E O N COA L A N D O I L
W H I L E I N T E G R AT I N G R E N E WA B L E E N E R GY S O LU T I O N S I N TO O U R
O P E R AT I O N S . T H I S I N C LU D E S T H E A D O P T I O N O F B 35 B I O F U E L S
I N O U R F L E E T, A N D T H E D E V E LO P M E N T O F B I O M A S S E N E R GY
S O LU T I O N S , H A R N E S S I N G I N D O N E S I A’ S A B U N DA N T N AT U R A L
RESOURCES.
We are also investing in clean technologies such as solar energy and expanding the use of electric
vehicle fleets in our mining operations. These initiatives align with our ESG targets to cut greenhouse
gas emissions and increase the share of renewable energy in our energy mix. Through these innovative,
forward-thinking measures, Indika Energy Group is supporting the global transition toward sustainable
energy while paving the way for a cleaner, greener, and more resilient future for Indonesia.
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Accelerating Sustainable Mobility: Indika Energy
Group’s Commitment to EV Infrastructure and
Ecosystem Development
Indika Energy Group is leading Indonesia’s transition toward Beyond infrastructure expansion, ALVA is pioneering cutting-
sustainable mobility, transforming the country’s EV landscape edge charging solutions, including the ALVA Intelligent Charging
through strategic investments, innovation, and ecosystem System (AICS). This advanced system optimizes charging efficiency
development. With ALVA, KALISTA, and INVI leading the charge, by allowing users to customize charging speed to balance
the Group has rapidly expanded its footprint in the EV industry, convenience and battery longevity, schedule automatic charging
reinforcing its commitment to reducing emissions and driving a during off-peak hours to reduce electricity costs; and enhance
cleaner, more efficient transportation future. overall user experience with smart, energy-efficient solutions.
By integrating smart technology into sustainable transportation,
ALVA is redefining the future of mobility in Indonesia.
TWO WHEELS GOOD AND CHARGED UP WITH
ALVA
Since launching its EV venture in 2022 with Ilectra Motor Group SCALING ELECTRIC MOBILITY WITH KALISTA
(IMG), Indika Energy has introduced locally manufactured electric AND INVI
motorcycles — ALVA One, Cervo, and One XP — designed to Indika Energy Group’s commitment to electrification extends
accelerate Indonesia’s shift to sustainable mobility. With 87% beyond personal mobility to public transportation and commercial
of Indonesia’s vehicles being two-wheelers, prioritizing electric fleets:
motorcycles is a key strategy to reduce emissions at scale.
⚫ KALISTA’s urban transit electrification: KALISTA
To support EV adoption, ALVA has rapidly expanded it Boost has deployed 60 electric buses in Medan and 26 in
Charge Station network, now covering 17 strategic locations across Jakarta’s Bus Rapid Transit (BRT) system, contributing
ALVA experience centers, commercial hubs, cafés and restaurants, to Indonesia’s low-carbon public transport initiatives.
corporate offices, and retail spaces. By integrating smart charging ⚫ Commercial EV fleets for logistics and mining:
infrastructure into daily urban life, Indika Energy Group is making KALISTA is expanding into logistics and mining
EV mobility more accessible and convenient. with commercial EV fleets, helping high-emission
industries transition toward cleaner energy solutions.
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
⚫ Electric dump truck trials at Kideco: Given
that mobile combustion from Kideco’s fleet
accounts for 72% of total emissions, Indika Energy
Group has initiated electric dump truck trials,
targeting emissions reduction of over 20%.
A HOLISTIC APPROACH TO SUSTAINABLE
TRANSPORTATION
Through strategic infrastructure expansion, technological
innovation, and large-scale fleet deployment, Indika Energy
Group is building a future-ready EV ecosystem that aligns with
national and global decarbonization goals. By integrating green
technology with smart solutions and nationwide collaboration,
we are not just supporting the transition to electric mobility — we
are actively shaping it.
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Eco-Innovation in
Mining: EV Dump Truck
Trials at Kideco
As part of our commitment to sustainable mining practices, task force comprising Kideco and INVI teams, responsible for
Indika Energy is leading the transition toward cleaner mining product commercialization, electrical infrastructure development,
operations by introducing Electric Vehicle (EV) Dump Trucks at and operational equipment utilization.
our Kideco mine site. In collaboration with our subsidiary INVI, a
pioneer in Indonesia’s EV ecosystem, we are taking a significant The results from Phase 1 lead to the next steps for Phase 2, which
step toward reducing carbon emissions, noise pollution, and will focus on productivity trials with an upgraded-capacity dump
operational costs—three critical challenges in traditional mining. truck to match our current internal combustion engine (ICE) fleet
The Sany EV 342 dump truck, with a 25-ton capacity, marks a major capacity of 34 tons. Additionally, we will explore more efficient
advancement in our efforts to decarbonize mining operations. and mining-friendly EV infrastructure to evaluate fleet reliability,
energy consumption, charging cycles, and potential cost savings.
Kideco’s mobile combustion fleet accounts for 72% of its total The findings from this phase will pave the way for the large-scale
emissions, making it the largest source of its carbon footprint. adoption of EV dump trucks within Kideco’s operations.
To address this, we initiated EV Dump Truck trials to explore
alternative solutions that lower emissions while maintaining The adoption of EV Dump Trucks offers several benefits, including
efficiency. The transition to an electric fleet is expected to reduce an estimated reduction of over 20% in carbon emissions
operational emissions by more than 20%, directly contributing to compared to diesel trucks. They also produce much lower noise
Indika Energy’s carbon reduction targets. levels, helping to create a more comfortable work environment
and minimizing disruption to nearby communities..
Commence in September 2024, our Phase 1 trials focused on
reliability and productivity by conducting a one-month pilot with a
single EV dump truck in a real mining environment. The objective
was to evaluate vehicle reliability, assess performance under
mining conditions, and compare the results with existing
EV implementations in other mining
operations. The benchmarking
process provided valuable insights
into operational effectiveness.
To support this initiative, we
established a dedicated
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
Furthermore, EV trucks also require less maintenance due to
fewer moving parts, leading to reduced downtime and lower
maintenance costs. The integration of regenerative braking
technology further improves energy efficiency, extends battery
life, and enhances overall productivity.
The deployment of EV Dump Trucks aligns with Indika Energy’s
broader decarbonization strategy, supporting Indonesia’s
sustainable energy transition and compliance with carbon
emission regulations. While diversification and divestment play a
role in reducing carbon intensity, transitioning mining operations
to cleaner energy sources remains an ongoing challenge. Our
commitment to expanding EV fleets in mining is a critical step in
accelerating the industry’s shift toward a low-carbon, eco-efficient
future. By innovating and implementing sustainable solutions,
Indika Energy is paving the way for a cleaner, greener, and more
responsible mining sector in Indonesia.
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Indika Nature is at the forefront of nature-based solutions (NBS), integrating ecosystem restoration, renewable biomass, and sustainable, community- driven agroforestry into a comprehensive environmental strategy.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
PROVIDING CARBON-FREE POWER
O U R CO M M I T M E N T E X T E N D S B E YO N D O U R I N T E R N A L
O P E R AT I O N S . BY I N V E S T I N G I N S O L A R FA R M P R OJ E CT S , W E
A R E ACT I V E LY S U P P O RT I N G I N D O N E S I A’ S R E N E WA B L E E N E R GY
I N F R A S T R U CT U R E A N D I N C R E A S I N G T H E AVA I L A B I L I T Y O F LOW -
A N D Z E R O - E M I S S I O N S E L E CT R I C I T Y N AT I O N W I D E .
As part of Indika Energy Group’s decarbonization drive, we are committed to delivering carbon-free
power by integrating renewable energy solutions across our operations. A cornerstone of this effort
is the adoption of solar energy to power our base camp on-site operations, providing clean electricity
for daily activities. We have also implemented solar-powered street lighting at various sites, further
demonstrating our dedication to energy efficiency and sustainability.
Our commitment extends beyond our internal operations. By investing in solar farm projects, we are
actively supporting Indonesia’s renewable energy infrastructure and increasing the availability of low-
and zero-emissions electricity nationwide.
To further enhance the reliability and availability of this carbon-free power, we are exploring cutting-
edge technologies such as energy storage systems and microgrids. These innovations enable us to
store surplus energy generated by solar installations and distribute it efficiently, ensuring a stable
and sustainable power supply. Through these initiatives, Indika Energy Group is not only reducing its
carbon footprint but also playing a pivotal role in accelerating Indonesia’s transition toward a cleaner,
renewable energy future.
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Powered by the Sun
As Indonesia accelerates its transition to a low-carbon economy,
Indika Energy Group is playing a pivotal role in advancing
renewable energy solutions, with a strong focus on solar power.
In 2021, we launched Empat Mitra Indika Tenaga Surya (EMITS)
in partnership with India’s Fourth Partner Energy Ltd., marking
a major step in the Group’s commitment to driving Indonesia’s
clean energy transformation through solutions for commercial,
industrial, and utility-scale customers.
EXPANDING SOLAR PV ACROSS INDONESIA
EMITS began its journey with a solar PV installation at the Kideco
mine site in Paser, East Kalimantan, setting the foundation for
renewable energy adoption in key industrial sectors. From this
milestone, EMITS has rapidly expanded its solar PV capacity to
60 MW, spanning the islands of Java, Bali, Sumatra, Kalimantan,
Sulawesi, and Maluku. Its growing portfolio serves diverse
industries, commercial enterprises, and local utilities.
Looking ahead, EMITS is scaling up its impact, targeting 350 MW
of contracted and installed solar capacity by 2025. This ambitious
goal underscores Indika Energy Group’s commitment to
strengthening Indonesia’s renewable energy mix and reducing
reliance on fossil fuels.
COMPREHENSIVE RENEWABLE ENERGY
SOLUTIONS
EMITS is more than just a solar developer — it provides end-to- Beyond environmental benefits, EMITS is making clean energy
end clean energy solutions, including: more economically viable, offering businesses electricity at lower
rates than conventional grid tariffs. By helping industries reduce
⚫ Project financing to support businesses
emissions while cutting costs, EMITS is demonstrating that
in transitioning to renewables;
sustainability and profitability can go hand in hand.
⚫ Engineering, procurement, and construction
(EPC) services for efficient solar deployment; For Indika Energy Group, the growth of EMITS aligns with its
⚫ Operations and maintenance to ensure strategic diversification goal: increasing the non-coal share of its
long-term grid stability; and revenue to 50% by 2028. This transition reflects the company’s
commitment to long-term business resilience and an equitable
⚫ Round-the-clock (RTC) energy supply.
energy future.
This integrated approach enables industries to adopt clean
energy seamlessly while maintaining operational efficiency.
POWERING A CLEANER, GREENER FUTURE
With Indonesia’s vast solar potential, rising demand for renewable
DRIVING INDONESIA’S ENERGY TRANSITION energy, and strong government support, EMITS is well-positioned
Indonesia has set a target of 23% renewables in its energy mix to lead the country’s solar revolution. By expanding clean energy
by 2025, requiring substantial private-sector investment and access for businesses and communities, Indika Energy Group is
innovation. EMITS is actively contributing to this national goal paving the way for a more sustainable Indonesia — one powered
by channeling investments into solar energy and creating green by the sun.
jobs in the renewable sector.
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
PATHWAY TO BALANCING
ENVIRONMENTAL IMPACT, ECONOMIC
GROWTH, AND COMMUNITY
PROSPERITY
Indika Energy group recognizes that achieving a net-zero Indika Energy Group’s commitment to net-zero by 2050 reflects
economy requires bold, innovative solutions that address both this forward-thinking approach. Our investments in renewable
environmental and social challenges. Through our dedicated energy, electrification, and nature-based solutions through Indika
subsidiary, Indika Nature, we are advancing nature-based Nature underscore our determination to address emissions at
solutions such as agroforestry, forest restoration, carbon offsetting, multiple levels. These efforts not only reduce our environmental
and biomass production. These initiatives not only contribute to footprint but also foster economic growth, innovation, and
carbon sequestration but also empower local communities by community resilience.
building alternative livelihoods through the sustainable use of
non-timber forest products. Our approach includes setting clear intermediate milestones,
such as reducing emissions by a certain percentage by 2030. By
We firmly believe that pursuing net-zero is not just an integrating sustainability into every facet of our operations, we
environmental necessity but an opportunity to unlock value in the aim to mitigate climate risks, seize new growth opportunities in
green economy. It calls for the transformation of energy systems, the green economy, and enhance the well-being of communities
investments in cutting-edge technologies, and a firm commitment where we operate.
to addressing the environmental impact of operations. By doing
so, we contribute meaningfully to combatting climate change and Through this holistic approach — leveraging technological
driving long-term stability. advancements, renewable energy, and nature-based solutions
— Indika Energy Group is contributing to a sustainable, net-zero
future that benefits the planet, the people, and the prosperity of
all.
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Indika Nature: Leading the Charge in Scalable
Nature-Based Solutions
As part of Indika Energy Group’s commitment to sustainability, SCALING ENVIRONMENTAL SERVICES AND
Indika Nature is at the forefront of nature-based solutions (NBS), FOREST CONSERVATION
integrating ecosystem restoration, renewable biomass, and Indika Nature is expanding its ecosystem restoration and
sustainable, community-driven agroforestry into a comprehensive biodiversity conservation efforts by forging strategic partnerships
environmental strategy. Through its three core business pillars — that amplify environmental impact. Currently, the company
Energy Plantations, Environmental Services, and Agroforestry & manages over 82,000 hectares of land, with a long-term goal of
Non-Timber Forest Products — Indika Nature is driving impact by reducing approximately 8 million tons of CO2eq over the next
balancing climate action, biodiversity conservation, and economic decade through regenerative conservation practices.
empowerment.
In 2024, Indika Nature strengthened its commitment to
sustainability by signing a Memorandum of Understanding
PIONEERING SUSTAINABLE BIOMASS FOR A
(MoU) with ParagonCorp to advance several key initiatives. This
LOW-CARBON FUTURE
collaboration focuses on forest conservation and biodiversity
Indika Nature is scaling up sustainable biomass production preservation, sustainable ecosystem restoration and resource
through its wood pellet operations in Paser, East Kalimantan. management, and a carbon emission reduction target of up to
Since its inception, the company has: 10,000 tons of CO2eq across 1,000 hectares in East Kalimantan.
Through these initiatives, Indika Nature continues to drive
⚫ Planted more than 4,600 hectares of Calliandra,
meaningful environmental progress while supporting Indonesia’s
ensuring a stable and renewable feedstock supply;
broader sustainability goals.
⚫ Harvesting has commenced, and initial production
trials suggest strong biomass yields over a full-year By integrating climate resilience with community-driven
cycle—progressing as part of the commissioning phase conservation, Indika Nature is helping Indonesia meet its
and setting the stage for large-scale production; sustainability targets while promoting nature-positive
⚫ Established a 2,500-ton warehouse, enhancing development.
logistics and supply chain efficiency for
biomass distribution at scale; and
⚫ Conducted advanced genome sequencing research
in collaboration with GSI Lab to optimize plantation
yields and improve biomass production efficiency.
P T I N D I K A E N E R GY T B K .
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STRENGTHENING AGROFORESTRY AND ETHICAL ADVANCING INDONESIA’S CLIMATE AND
SUPPLY CHAINS SUSTAINABILITY GOALS
Recognizing the importance of sustainable agriculture in Indika Nature’s nature-based solutions align with Indonesia’s
climate resilience, Indika Nature has made significant strides in sustainability targets, proving that climate action, environmental
agroforestry and ethical supply chains: conservation and business innovation can go hand in hand.
Through biomass energy, carbon sequestration, reforestation,
⚫ Acquired full ownership of PT Natura and sustainable agriculture, Indika Nature is actively shaping
Aromatik Nusantara (Natura), Indonesia’s Indonesia’s journey to net zero.
fourth-largest essential oil exporter, ensuring
responsible sourcing and production; A sustainable future is not just an aspiration — it is an action-
⚫ Partnered with Krakakoa, a pioneer in driven journey. Indika Nature is leading the way, proving that
sustainable bean-to-bar chocolate, to promote restoring ecosystems and empowering communities can drive
large-scale agroforestry initiatives; and real, lasting change.
⚫ Supported Krakakoa’s recent merger with Slow
Forest Coffee, integrating ethical cocoa and coffee
production into agroforestry landscapes that enhance
biodiversity and support local farmer livelihoods.
By investing in the ethical production of commodities and
regenerative land use, Indika Nature is bridging economic growth
with environmental stewardship, ensuring that communities
thrive alongside nature.
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To support greener operations, Kideco has begun integrating electric buses (EVs) at mining sites, reducing emissions from mobile combustion.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
DRIVING CLIMATE ACTION
AT INDIKA ENERGY
Indika Energy Group recognizes the urgency of climate action ENGAGING STAKEHOLDERS
and is committed to driving transformative change through a We understand that successful climate action requires the
robust climate action plan. This comprehensive strategy not involvement of all stakeholders. Through engagement
only mitigates environmental impacts but also strengthens the campaigns, awareness programs, and partnerships, we aspire
company’s operational resilience in the face of climate change. It to empower employees, suppliers, and local communities to
is a full-spectrum strategy that encompasses comprehensive risk drive environmental solutions. Initiatives like community-based
assessments, scenario planning, and adaptation approaches to mangrove restoration and renewable energy initiatives foster
address both current and future climate challenges. [GRI 3-3, GRI sustainability while building resilient partnerships. [GRI 413-1,
302-1, GRI 305-5] 308-1]
CLIMATE RISK ASSESSMENTS AND TRANSITION TANGIBLE MILESTONES AND METRICS
PLAN ACTIONABLE STEPS
To ensure accountability and track progress, Indika Energy Group
We regularly conduct climate risk assessments to identify has established clear and measurable milestones and metrics:
vulnerabilities in our operations. These assessments evaluate both
physical risks, such as extreme weather events, and transitional ⚫ Renewable energy penetration: Achieve 35% renewable
risks, including shifts in regulatory frameworks and market energy in the company’s energy mix by 2030. [GRI 302-1]
dynamics. By leveraging scenario planning, we develop adaptive ⚫ Emissions reduction: Reduce operational emissions
strategies to ensure sustainable growth under diverse climate and to 902.5 kilotons of CO2eq by 2025, progressing
regulatory scenarios. [GRI 201-2, 305-4] toward net-zero by 2050. [GRI 305-5]
Indika Energy Group’s transition plan focuses on actionable steps ⚫ Financial commitments: Allocate significant investments
to achieve our sustainability goals: to renewable energy infrastructure, energy efficiency,
and sustainable technologies. [GRI 201-1, 302-5]
⚫ Energy efficiency upgrades: We are adopting state- These metrics are closely monitored to track progress, and we
of-the-art technologies and optimizing processes to regularly update stakeholders through reports and dedicated
enhance energy efficiency across all operational sites. climate action communications.
Initiatives include equipment upgrades, investment
in smart grid solutions, and ensuring facilities are
operating at peak efficiency. [GRI 302-4, 302-5] GOVERNANCE AND OVERSIGHT
⚫ Scaling renewable energy adoption: As a key pillar of Indika Energy Group’s commitment to climate action is embedded
our low-carbon trajectory, we are expanding renewable at the highest levels of the organization. The company’s Board
energy investments, including in solar, biomass, and of Directors and senior leadership play an integral role in
other sustainable solutions. By 2030, we aim to source overseeing the implementation of climate strategies. Regular
24% of our energy mix from renewables, significantly reviews, performance evaluations, and alignment with business
reducing our reliance on fossil fuels. [GRI 302-1, 302-3] objectives ensure that climate action remains a central priority.
By embedding sustainability into our business strategy, Indika
⚫ Reducing emissions intensity: Efforts to lower
Energy Group is transitioning effectively to a low-carbon economy
emissions intensity across our operations include
while positioning itself as a leader in climate action. [GRI 2-12,
cleaner production processes, fuel optimization, and
2-13, 2-14]
collaboration with suppliers to adopt lower-emission
alternatives. Indika Energy Group is targeting a reduction
in operational emissions to 902.5 kilotons of CO2eq
by 2025, contributing to our broader goal of achieving
net-zero emissions by 2050. [GRI 305-1, 305-2, 305-5]
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Demonstrating our commitment to sustainable mining, Kideco enhances operational efficiency while actively preserving biodiversity through comprehensive land reclamation and conservation initiatives.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
REDUCING GREENHOUSE
GAS EMISSIONS
Indika Energy is committed to actively reducing greenhouse gas REDUCING OPERATIONAL EMISSIONS
emissions across our operations as a key pillar of our sustainability Indika Energy Group is committed to reducing emissions across
and climate action strategy. Through targeted initiatives and our operations by focusing on three core areas: energy efficiency,
innovative approaches, we seek to minimize our environmental cleaner production processes, and renewable energy integration.
footprint while upholding operational excellence and contributing These initiatives are central to the company’s sustainability
to Indonesia’s net-zero ambitions. strategy and our efforts to contribute meaningfully to global
emissions reduction goals. [GRI 302-1, 302-4, 305-4, 305-5]
By integrating GHG emissions reduction measures into core
business operations, Indika Energy Group underscores its Key focus areas for emissions reduction:
commitment to sustainability and climate action, aligning
with global best practices and stakeholder expectations. This ⚫ Energy efficiency: Indika Energy Group is upgrading
commitment reinforces the company’s role as a responsible equipment, optimizing operational processes,
energy leader. and adopting energy-saving technologies to
reduce overall energy consumption. These efforts
ensure that facilities operate at peak efficiency
MANAGING GHG EMISSIONS
while minimizing environmental impact.
Indika Energy Group employs a comprehensive approach to
⚫ Cleaner production processes: We are
managing GHG emissions, leveraging robust measurement
transitioning to lower-emission technologies and
frameworks to track Scope 1 and Scope 2 emissions while
implementing best practices to effectively reduce
improving data quality to address Scope 3 emissions in the
emissions intensity during daily operations.
future. Guided by the Greenhouse Gas Protocol and aligned with
international standards, the company ensures transparency and ⚫ Renewable energy integration: Expanding the use of
accuracy in its emissions reporting. [GRI 305-1, 305-2, 305-3, 201-2] renewable energy sources such as solar is a top priority.
By scaling up renewable solutions across our assets,
Key strategies include: we are significantly lowering our reliance on fossil
fuels and accelerating the clean energy transition.
⚫ Comprehensive monitoring: Regular assessments
identify emissions sources, including fugitive DIVERSIFYING INTO LOW-CARBON BUSINESSES
emissions from coal mining, refrigerants, and process
Since 2018, Indika Energy Group has been expanding beyond the
emissions. Revised emissions factors and inventory
mining and energy sectors, focusing on low emission businesses.
methods ensure alignment with global standards.
The goal is to generate at least 50% of revenue from non-coal
We currently produce no biogenic or biomass
businesses by 2028, marking a critical step in the company’s
emissions, hence do not report on these. [GRI 305-1]
diversification journey [GRI 201-2, GRI 302-1, GRI 305-5].
⚫ Risk management: Indika Energy Group evaluates Highlights from 2024 include:
both physical risks (e.g. climate change-related
weather events) and transitional risks (e.g. regulatory ⚫ Electric vehicles
changes), addressing these through proactive ALVA, our electric motorcycle subsidiary, continues to expand its
adaptation and renewable energy integration. charging ecosystem while launching the Cervo and N3 models,
⚫ Commitment to carbon neutrality: Guided by our supported by investments in a new manufacturing facility near
Environmental Policy (established in 2022), we are Jakarta. Meanwhile, KALISTA is strengthening urban transit by
committed to reducing our annual GHG inventory to deploying 60 electric buses in Medan and 26 buses for Jakarta’s
achieve net-zero emissions by 2050 or sooner. [GRI 3-3] Bus Rapid Transit system, while also expanding into logistics
and mining with commercial EV fleets. To enhance our mining
operations, where mobile combustion from Kideco’s fleet
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accounts for 72% of total emissions, we have initiated trials with ⚫ Energy efficiency in mining: We introduced operational
electric dump trucks. This initiative aims to reduce operational efficiency measures to reduce energy consumption
emissions by over 20%. and emissions. These include optimizing road grades
for fuel-efficient transportation, adopting noise
⚫ Renewable energy projects reduction technologies for heavy-duty equipment,
Expanding solar power adoption across our operations, including upgrading lighting to energy-saving LEDs, and installing
a 60 MW solar photovoltaic installation through our joint venture slurry pumps to enhance excavator efficiency.
EMITS across Java, Bali, Sumatra, Kalimantan, Sulawesi, and
Maluku. Additionally, we have integrated solar power systems at Indika Energy Group’s efforts to reduce emissions are not
Interport Business Park, generating 635.47 GJ of renewable energy. just about compliance — they are about driving meaningful,
long-term change. By investing in cutting-edge technologies,
⚫ Nature-based solutions
sustainable business ventures, and renewable energy projects, we
Indika Nature strengthened its commitment to sustainable
are advancing our commitment to sustainability while building a
biomass production through key advancements in its wood pellet
robust foundation for a low-carbon future.
operations in Paser, East Kalimantan. The company planted 4,667
hectares of Calliandra to secure a sustainable feedstock supply. To
support scalability, a 2,500-ton warehouse was established at the CARBON OFFSETTING INITIATIVES
mill for finished wood pellets. Innovation remained a priority, with While Indika Energy Group strives to minimize emissions across
ongoing research in genome sequencing in collaboration with our operations, we recognize that some emissions are unavoidable.
GSI Lab to maximize yield, more disease resistance, and improve To address these residual emissions, we actively invest in carbon
plantation efficiency. Additionally, Indika Nature expanded its offsetting projects aimed at neutralizing this remaining carbon
conservation efforts by signing an MoU with Paragon to support footprint. [GRI 305-5, 304-3]
forest conservation initiatives, reinforcing its dedication to
environmental stewardship. ⚫ Verified carbon credits: Indika Nature, through the
Telaga Mas Kalimantan (TMK) project, supports
⚫ Sustainable mining verified carbon credit programs that compensate
Indika Energy advances sustainable mining through Mekko for emissions that cannot be eliminated,
Mining’s bauxite operations and Masmindo’s gold extraction. ensuring credible and impactful offsetting.
Mekko Mining integrates environmental safeguards, focusing on ⚫ Nature-based solutions: We prioritize reforestation,
land rehabilitation, water management, and responsible resource mangrove restoration, and land reclamation projects,
use. Masmindo adopts low impact mining techniques, minimizing which not only enhance carbon sequestration but
land disturbance and water consumption while ensuring ethical also promote biodiversity and provide meaningful
and sustainable gold production. Both subsidiaries uphold ESG benefits to local communities. We also leverage
principles, supporting responsible sourcing and local economic biochar production through Indika Nature’s
growth. biomass projects, offering a sustainable and
innovative way to further offset emissions while
⚫ Decarbonization achievements contributing to environmental restoration efforts.
In 2024, Indika Energy Group made significant strides in ⚫ In 2022, Indika Energy voluntarily purchased carbon
decarbonizing our operations. We accelerated our decarbonization credits from the Delta Blue Carbon project, the world’s
efforts through strategic initiatives aimed at reducing emissions largest blue carbon initiative, supporting efforts to offset
and enhancing energy efficiency across operations: 52,800 tons of CO2eq emissions. This project contributes
to the protection and restoration of 350,000 hectares in
⚫ Increased biofuel usage: We expanded the adoption
Sindh province, Pakistan. While these CIX carbon credits
of cleaner fuel alternatives, including the B35
have been acquired, they have not yet been retired or
biodiesel blend, with plans underway to transition
applied toward Indika Energy’s carbon offset initiatives.
to B40. This shift helps lower carbon emissions
while supporting Indonesia’s biofuel program.
GHG EMISSIONS GOALS
⚫ Solar power expansion: Additional solar panels
Indika Energy has set ambitious greenhouse gas reduction targets
were installed at key sites, such as INDY Bintaro
to align with our commitment to sustainability and climate
Office Park, Interport Business Park, and the Kideco
actions. [GRI 305-1, 305-2, 305-4, 305-5]
site, increasing our renewable energy capacity
and reducing dependence on fossil fuels. ⚫ Short-term goals by 2025
⚫ EV fleet growth: More electric vehicles were deployed We aim to reduce operational emissions to 902.5 kilotons
at the Kideco mining site, along with an expanded of CO2eq (a 25% reduction relative to the 2020 baseline) by
fleet of electric buses for employee transport and the implementing energy efficiency improvements, enhanced
mining fleet. These efforts help reduce emissions emissions management, and operational optimizations, ensuring
by replacing diesel-powered transportation. a more sustainable and low-carbon footprint.
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
⚫ Medium-term goals by 2030 Indika Energy Group’s sustainability transformation began in 2021
Our 2030 target is to reduce operational emissions to 806.2 kilotons with clear ESG targets for 2025 and 2030, using 2020 as the baseline
of CO2eq (a 33% reduction relative to the 2020 baseline). Building year. As of 2024, we remain on track to meet our commitments,
upon our short-term progress, we will begin decarbonizing key achieving a 24% reduction in Scope 1 and 2 emissions relative to
segments of our value chain. This will involve exploring and the 2020 baseline. Additionally, we have reduced revenue-based
piloting nature-based solutions and strategically investing in emissions intensity by 52.84% and production-based emissions
emerging low-carbon technologies relevant to our operations. intensity by 13.58%.
⚫ Long-term goals by 2050 These milestones demonstrate our strong commitment to
decarbonization while maintaining business growth. By
By 2050, we will achieve net-zero emissions across all our
integrating sustainability into our operations, we continue to
operations. This ambitious goal will be realized through the full
align with global best practices, drive innovation, and advance
decarbonization of our value chain, scaling up the implementation
environmental stewardship. [GRI 305-1, 305-2, 305-4]
of nature-based solutions, and widespread adoption of innovative,
commercially viable low-carbon technologies. This transformative
goal underscores Indika Energy Group’s commitment to
SCOPE 1 AND GHG EMISSIONS
addressing global climate change while balancing operational
(TONS OF CO2EQ)
needs with environmental responsibilities.
GHG EMISSIONS PROGRESS SINCE THE 2021
SUSTAINABILITY PIVOT
1,160,762
1,030,009
In 2024, Indika Energy Group made significant strides in our
914,519
11.26%
emissions reduction efforts:
11.21%
⚫ Emissions reduction achievements
We achieved a 11.21% reduction in total direct (Scope
1) and indirect (Scope 2) emissions, equivalent to
914.52 kilotons of CO2eq, compared to the previous 2022 2023 2024
year. This progress reflects our ongoing commitment Note:
to operational efficiency and decarbonization. ⚫ Gases included in the calculation: CO2, CH4, N2O.
⚫ Emissions intensity measurement GWP rates used for calculating Scope 1 and 2 emissions
We track our environmental impact through absolute are based on the Intergovernmental Panel on Climate
Change (IPCC) Fifth Assessment Report (AR5): CO2
emissions and intensity metrics. In 2024, production- = 1, CH4 = 28, N2O = 265. [GRI 305-1, 305-2]
based emissions intensity improved by 8%, decreasing
⚫ 2024 figures of scope 1 and 2 GHG emissions data
from 0.031 to 0.029 tons of CO2eq per ton of coal. include Kideco, Indika Indonesia Resources, Tripatra,
However, revenue-based intensity rose by 10.58% to Interport, Masmindo, Mekko, Indika Nature, Ilectra
374 tons of CO2eq per USD million revenue, mainly Motor Group, Xapiens, and Indika Energy Holding.
due to a temporary revenue decline. Despite this, our ⚫ Indika Energy uses operational control to consolidate
absolute GHG emissions continue to improve, reflecting emissions data. Indika Energy consolidates the data
ongoing energy efficiency advancements, ensuring from these subsidiaries quarterly through the use
of an internal ESG Dashboard [GRI 305-1].
progress in our emissions reduction efforts. Despite
this, our absolute GHG emissions continue to improve, ⚫ The following Scope 1 emission factors were
reflecting ongoing energy efficiency advancements, derived from DEFRA Greenhouse gas reporting:
Conversion factors 2024 document [GRI 305-1]:
ensuring progress in our emissions reduction efforts.
⚫ 100% mineral diesel: 0.00256 tCO2e per liter
⚫ B30: 0.00191 tCO2e per liter
⚫ B35: 0.00179 tCO2e per liter
⚫ Refrigerant R-410A: 1.924 tCO2e per kg
⚫ Refrigerant R-134A: 1.3 tCO2e per kg
⚫ Refrigerant R-32: 0.677 tCO2e per kg
⚫ Scope 2 emission factors are derived from the Indonesian
Ministry of Energy and Mineral Resources: https://jdih.esdm.
go.id/index.php/web/result/2183/detail. Emission factors
were selected based on the grid each operational site is
connected to (e.g., Jamali, Mahakam, Barito, etc.) [GRI 305-2]
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SCOPE 1 AND 2 GHG EMISSIONS INTENSITY [GRI ENERGY PERFORMANCE PROGRESS [GRI 302-1]
305-4] In 2024, we achieved a 7.28% reduction in overall energy
374 TO N S consumption, lowering total usage to 13,717,269 GJ compared
OF CO2EQ/USD MILLION REVENUE to the previous year. This progress was driven by an increased
reliance on renewable energy and a reduced dependence on non-
0.029 TO N S renewable sources, enhancing our renewable energy balance. As a
O F C O 2 E Q / TO N C OA L P R O D U CT I O N result, the share of renewables in our energy mix rose to 34.02%.
Additionally, various energy efficiency initiatives contributed to a
GHG EMISSIONS BY SOURCE further decline in total energy consumption.
[GRI 303-3]
While these achievements mark significant progress, we
continue to seek improvements in reducing both production-
Fugitive based and revenue-based energy consumption intensities. These
emissions efforts reflect a key milestone in our ongoing commitment to
and others environmental stewardship and sustainability. [GRI 302-1, 302-3]
23%
However, energy intensity relative to revenue increased to 5,604
Mobile GJ/USD million, up from 4,852 GJ/USD million in the previous
combustion year. While this indicates a rise in intensity, it does not represent
73% a setback in our emissions reduction efforts. Our absolute
Stationary GHG emissions have continued to decline, reflecting ongoing
combustion advancements in energy efficiency. The increase in intensity is
3%
primarily attributed to a temporary decline in revenue, which
Electricity
comsumption naturally affects the intensity calculation. We remain committed
1% to advancing our sustainability initiatives and ensuring long-
term progress in both absolute emissions reduction and energy
Note: optimization.
⚫ Figures include Kideco, Indika Indonesia Resources,
Tripatra, Interport, Masmindo, Mekko, Indika Nature, Ilectra
Motor Group, Xapiens, and Indika Energy Holding.
ENERGY SOURCE UNIT 2022 % 2023 % 2024
Renewable energy consumption
Solar Photovoltaic GJ 5,694 -84.07% 907 303.57% 3,660
Biofuel GJ 4,270,819 15.58% 4,936,382 -5.55% 4,662,586
Total renewable energy consumption GJ 4,276,513 15.45% 4,937,289 -5.49% 4,666,246
Non-renewable energy consumption
Diesel fuel and petrol GJ 11,114,064 -11.52% 9,833,354 -8.26% 9,020,707
Electricity on-grid GJ 22,879 4.90% 24,001 26.31% 30,315
Total non-renewable energy consumption GJ 11,136,943 -11.49% 9,857,355 -8.18% 9,051,022
Total energy consumption GJ 15,413,456 -4.01% 14,794,644 -7.28% 13,717,269
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
INNOVATION AND RESILIENCE
T H E S E I N N OVAT I V E E F FO RT S N OT O N LY P L AY A V I TA L R O L E I N
R E D U C I N G E M I S S I O N S , B U T A L S O PAV E T H E WAY FO R LO N G -
T E R M , S U S TA I N A B L E B U S I N E S S G R OW T H BY U N LOC K I N G N E W
O P P O RT U N I T I E S , S U P P O RT I N G T H E T R A N S I T I O N TO A LOW -
CA R B O N E CO N O M Y.
At Indika Energy Group, innovation and resilience are more than In a world increasingly shaped by the effects of climate change,
just principles — they are the driving forces behind our mission resilience is critical. Indika Energy Group proactively tackles the
to build a sustainable and prosperous future. Recognizing the risks posed by extreme weather events, such as floods or droughts,
dual imperatives of combating climate change and securing long- by embedding climate adaptation measures into our operational
term value, we harness cutting-edge technologies and forward- planning. This includes fortifying facilities and supply chains,
thinking solutions to transform challenges into opportunities. adopting nature-based solutions like mangrove restoration,
[GRI 201-2, 103-2] and diversifying energy sources to ensure continued growth and
stability even under challenging conditions. [GRI 201-2, 304-3,
Through strategic investments in research and development, 103-2]
we accelerate the adoption of cleaner energy and enhance
operational efficiency. Initiatives such as renewable energy Indika Energy Group’s focus on resilience reflects a forward-
integration, advanced biomass production under Indika Nature, looking vision: one where the company is prepared for both
and electrification projects like KALISTA’s electric vehicle immediate and long-term challenges, safeguarding our ability
solutions are clear examples of this commitment in action. These to deliver value while contributing to global sustainability goals.
innovative efforts not only reduce emissions but also open new [GRI 103-2, 103-3]
doors for sustainable business growth. Digital technologies
further strengthen this transformation, enabling smarter energy
management, optimized resource use, and improved resilience
across the company’s operations. [GRI 302-1, 302-3, 302-4, 302-5,
305-1, 305-2, 305-3, 305-5]
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ALVA electric motorcycles combine innovation, sustainability, and performance to redefine urban mobility and accelerate Indonesia’s transition to EVs.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
INTEGRATING SUSTAINABILITY
ACROSS THE INDIKA ENERGY GROUP
FO R I N D I K A E N E R GY G R O U P, S U S TA I N A B I L I T Y I S N OT A
S TA N DA LO N E I N I T I AT I V E — I T I S A CO R E P R I N C I P L E E M B E D D E D
I N O U R CO R P O R AT E C U LT U R E , D E C I S I O N - M A K I N G P R OC E S S E S ,
A N D LO N G -T E R M S T R AT E G I E S . E V E R Y A S P E CT O F O U R
O P E R AT I O N S I S G U I D E D BY O U R U N WAV E R I N G CO M M I T M E N T TO
C R E AT I N G A F U T U R E W H E R E B U S I N E S S S U C C E S S GO E S H A N D
I N H A N D W I T H E N V I R O N M E N TA L S T E WA R D S H I P A N D S OC I A L
R E S P O N S I B I L I T Y.
ALIGNING WITH CLIMATE AND NATURE SUSTAINABILITY SOP
Indika Energy Group integrates environmental care into our In 2024, we reaffirmed our commitment to sustainability by
business operations, prioritizing conservation and responsible updating our Sustainability Standard Operations Procedure (SOP),
management of natural resources. Whether it is through ensuring that all subsidiaries are aligned with the same goals
mangrove restoration, land reclamation, or renewable energy and principles. This updated framework serves as a blueprint for
projects led by Indika Nature, we actively contribute to climate current operations and provinces clear guidelines for integrating
action, biodiversity protection, and the reduction of our future businesses into the Indika Energy Group. By equipping
environmental footprint. [GRI 304-3, 305-5, 103-2] every subsidiary with the tools, targets, and strategies needed to
achieve sustainability objectives, Indika Energy Group guarantees
a unified approach to driving a meaningful impact across the
BUILDING A CULTURE OF SUSTAINABILITY
organization. [GRI 103-2, 103-3]
Sustainability is a shared responsibility that extends to every
employee, partner and stakeholder in the company.at Indika
Energy. Through employee engagement campaigns, sustainability Indika Energy Group’s innovative mindset and steadfast
training programs, and partnerships with communities, we foster commitment to resilience underscore our belief that sustainability
a collaborative culture where everyone is inspired to contribute and business value are inseparable. By integrating sustainability
to shared sustainability goals. This holistic approach ensures into every facet of our operations, we are paving the way for a
that Indika Energy Group’s vision is realized at every level of the future that benefits both people and the planet. This vision ensures
organization. [GRI 102-16, 103-2, 413-1] that our legacy is not only one of economic success but also of
meaningful impact — one that inspires industries, communities,
and future generations to dream bigger and act bolder. [GRI 103-2,
103-3, 102-16]
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Kideco actively conducts biodiversity monitoring to assess and protect local ecosystems, ensuring sustainable practices while preserving flora and fauna in their operational areas.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
CHAPTER 4
ENVIRONMENTAL
STEWARDSHIP:
RESPECTING AND
PRESERVING NATURE
SDG
302-1, 302-2, 302-3, 302-4, 302-5, 3-3, 303-1, 303-2, 303-3, 303-4 , 3 0 3 -
GRI 5, 304-1, 304-2, 304-3, 304-4, 305-1, 305-2, 305-3, 305-4, 305-5, 3 0 5 - 7 ,
306-1, 306-2, 306-3, 306-4, 306-5
P OJ K B .2, F. 8, F.9, F.10, F.13, F.14, F.15
G LO B A L C O M PA CT P R I N C I P L E 7, P R I N C I P L E 8, P R I N C I P L E 9
WEF SCM PLANET PILLAR
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SUSTAI NABI LI TY REP O RT 2 0 2 4
OUR APPROACH
OF RESPECTING NATURE
AT I N D I K A E N E R GY G R O U P, W E A R E R E I M AG I N I N G O U R
B U S I N E S S P R ACT I C E S TO R E D U C E E N V I R O N M E N TA L I M PACT
W H I L E S U P P O RT I N G I N D O N E S I A’ S E N E R GY S E C U R I T Y A N D
E N A B L I N G A FA I R , C L E A N - E N E R GY T R A N S I T I O N . G U I D E D BY O U R
CO M M I T M E N T TO AC H I E V I N G N E T- Z E R O E M I S S I O N S BY 2050, W E
H AV E S E T A M B I T I O U S E M I S S I O N S TA R G E T S A N D A R E A DVA N C I N G
O U R D I V E R S I F Y- D I V E S T- D E CA R B O N I Z E S T R AT E GY TO E N S U R E
S T E A DY P R OG R E S S . [ G R I 305]
We seek to protect the environment by reducing waste, optimizing Energy Sustainability Commitment and Policy. Accountability for
resource use, and integrating biodiversity conservation into these initiatives lies with our Executive Committee, and progress
initiatives like reforestation and mangrove restoration, fostering is regularly reviewed by our Board’s Sustainability Committee to
healthier ecosystems and communities. [GRI 304, 305] ensure we deliver on our commitments to respecting nature as a
core pillar of our sustainability strategy.
At Indika Energy Group, we are reimagining our business practices
to reduce environmental impact while supporting Indonesia’s For a large and diverse organization like Indika Energy Group,
energy security and enabling a fair, clean-energy transition. embedding a comprehensive approach to respecting nature is an
Guided by our commitment to achieving net-zero emissions by ongoing journey. We are continuously refining our environmental
2050, we have set ambitious emissions targets and are advancing practices and guidance, ensuring alignment across all projects and
our Diversify-Divest-Decarbonize strategy to ensure steady operations nationwide.
progress. [GRI 305]
We recognize the critical importance of protecting biodiversity
Our efforts go beyond energy transformation, focusing on and preserving ecosystems as part of our broader sustainability
minimizing waste and water footprints through industry best mission. We are committed to reducing our environmental
practices, increased reliance on renewable alternatives, and impact while supporting Indonesia’s energy security and leading
innovative, operation-specific solutions. Recognizing the urgent the transition to a clean-energy future. Guided by international
global need to protect and enhance biodiversity, conserve frameworks such as the CDP, and GRI 2021, we define nature as
freshwater, and optimize resource efficiency, we integrate encompassing four primary realms — land, freshwater, oceans,
landscape restoration and revitalization into our approach. These and the atmosphere — interconnected with human society and
efforts aim to maximize carbon storage, restore wildlife habitats, biodiversity.
and empower local communities, demonstrating our commitment
not only to minimizing harm but to making a positive contribution Biodiversity is central to maintaining resilient ecosystems that
to nature. [GRI 303, 304] provide essential services, such as clean water, fresh air, fertile
soils, pollination, and climate regulation, while mitigating
Aligned with international efforts like the Global Biodiversity physical risks from climate change. As part of our efforts, we
Framework and active participants in global discussions such as integrate sustainable practices and nature-based solutions to
COP29, we are committed to halting and reversing biodiversity protect critical habitats and ensure long-term ecosystem health.
loss. We acknowledge the impact of our operations on natural
resources — such as land, water, and materials — through To drive meaningful impact, we have consolidated our goals under
emissions, discharges, and land-use changes, and we strive to three key themes: creating a positive impact on biodiversity,
mitigate these impacts through proactive measures. [GRI 304] striving for zero waste, and optimizing the use of water, resources,
and materials. By integrating these priorities into our operations,
Respect for the environment and local communities has long we are advancing a more sustainable and resilient future for all.
been a cornerstone of our business, as outlined in the Indika
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IMPACT (Indika Energy Mangrove Program in Action) Bekantan (proboscis monkey, Nasalis larvatus), an endangered species listed on the IUCN Red List, in Bai Jaya Village.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
PROTECTING BIODIVERSITY AND
ECOSYSTEMS
AT I N D I K A E N E R GY G R O U P, W E A R E D E E P LY CO M M I T T E D TO
P R OT E CT I N G B I O D I V E R S I T Y A N D I M P L E M E N T I N G S U S TA I N A B L E
P R ACT I C E S , PA RT I C U L A R LY W H E N O P E R AT I N G I N O R N E A R
C R I T I CA L H A B I TAT S . TO M I T I GAT E B I O D I V E R S I T Y R I S K S , W E H AV E
E S TA B L I S H E D A R O B U S T F R A M E WO R K TO A S S E S S A N D M A N AG E
T H E P OT E N T I A L I M PACT S O F O U R P R OJ E CT S O N B I O D I V E R S I T Y.
[ G R I 304-1, 304-2]
SCREENING FOR CRITICAL HABITATS BEST PRACTICES IN BIODIVERSITY
Before initiating any new projects, we conduct thorough MANAGEMENT
assessments to determine their proximity to critical habitats— Indika Energy’s dedication to biodiversity is demonstrated through
areas vital for endangered species and ecosystem health. Our our initiatives across Kideco, Indika Nature, and Masmindo. By
approach follows the mitigation hierarchy: avoid, minimize, integrating a nature-positive approach, we actively conserve
restore, and, when unavoidable, offset, ensuring a net positive and restore biodiversity, ensuring that our operations contribute
impact on biodiversity over time. [GRI 304-1, 304-3] to both ecosystem health and the well-being of surrounding
communities. [GRI 304-2, 304-3]
Key principles of our nature-positive approach include:
⚫ Avoiding harm: Reducing environmental impact by KIDECO
preventing deforestation, habitat loss, and pollution. At Kideco, biodiversity management is deeply integrated
⚫ Restoring and regenerating: Rehabilitating degraded into our mining operations, ensuring that resource extraction
landscapes, restoring natural habitats, and enhancing is conducted responsibly while safeguarding and restoring
ecosystem resilience. ecosystems. Our mining area covers 33,887 hectares in Paser, East
⚫ Enhancing biodiversity: Protecting endangered species, Kalimantan, including the Roto Samurangau and Susubang Uko
preserving natural ecosystems, and embedding areas, designated as production and limited production forests,
biodiversity into operational decision-making. respectively.
⚫ Collaborating for impact: Partnering with governments, Additionally, part of Kideco’s transshipment port overlaps with the
communities, and conservation organizations to drive Adang Bay Nature Reserve, a protected forest with high biodiversity
meaningful environmental change. conservation value. Adjacent to our site is Mount Jondang, which
To achieve a net positive impact, projects in biodiversity-rich areas we internally recognize as a biodiversity conservation area in
must contribute more to conservation than their operational accordance with Indonesia’s Natural Resources Conservation Law
footprint. We are committed to replanting affected forests while No. 32/2024 and Peraturan Menteri LHK No. P.106/2018. Given
preserving biodiversity and ecological integrity. Recognizing the the ecological sensitivity of these habitats, we are committed
importance of collaboration, we also conduct environmental to minimizing our environmental footprint and implementing
studies in project regions, generating critical data to support local measures to offset our impact. [GRI 304-1, 304-2]
conservation efforts and improving understanding of regional
environmental conditions. [GRI 304-2, 304-3, 304-4]
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Our biodiversity management strategy is guided by key initiatives. INDIKA NATURE
Biodiversity impact assessments are conducted before mining Through Indika Nature, we advance biodiversity conservation with
activities begin to identify potential risks and implement our regenerative approach to biodiversity conservation, ensuring
mitigation measures that protect native flora and fauna. that our operations not only minimize harm but actively restore
Rehabilitation and reclamation efforts restore disturbed lands and enhance ecosystems.
with native vegetation, ensuring that impacted areas recover into
sustainable ecosystems. Invasive species control programs are Our strategy is founded on three key pillars. First, we implement
in place to prevent the spread of non-native species that could sustainable forest management, where biomass production is
disrupt local biodiversity. [GRI 304-2, 304-3] carefully designed to avoid deforestation and habitat loss. We
achieve this using high-quality seeds and advanced genome
We collaborate with local communities to cultivate native tree technologies, enhancing forest resilience, carbon sequestration,
species in nurseries, which are later planted to establish forest and long-term productivity. Second, we establish biodiversity
corridors that reconnect fragmented habitats and facilitate wildlife conservation areas, where human activities are restricted to
movement. Our biodiversity conservation efforts in reclaimed protect critical ecosystems and endangered species. Lastly,
areas have demonstrated successful ecosystem restoration, with our ecosystem restoration initiatives focus on large-scale
biodiversity levels comparable to surrounding natural forests and rehabilitation of degraded lands, including mangrove ecosystems,
habitats supporting endangered species. [GRI 304-3] which are crucial for coastal biodiversity, water regulation, and
carbon storage. These efforts go beyond conservation, they actively
Since 2011, annual biodiversity observations have been conducted
restore ecological balance and regenerate natural resources for
in Roto Samurangau and continue through 2024. The latest survey
long-term sustainability. [GRI 304-1, 304-2]
recorded two newly identified mammal species in the area: the
Asian palm civet (Paradoxurus hermaphroditus) and the Bornean Indika Nature protects and manages a 170,000-hectare site in
pygmy squirrel (Exilisciurus exilis), bringing the total number of East Kalimantan, home to critically endangered species such as
identified mammal species in Roto Samurangau to 46. the helmeted hornbill (Rhinoplax vigil), Sunda pangolin (Manis
javanica), and bangkirai (Hopea ferruginea), a prized timber tree. We
In 2024, biodiversity monitoring at the Tandarayan Arboretum,
operate within landscapes of significant ecological importance,
a 105-hectare multifunctional conservation area, also revealed
ensuring that our activities not only support conservation but
new mammal species, including the Bornean pygmy squirrel,
also regenerate ecosystem services. For example, 9,137 hectares
the Asian palm civet, and the Red spiny rat (Maxomys surifer).
of our Jaya Bumi Paser site are adjacent to high conservation
The monitoring covered both natural forests and post-mining
value (HCV) areas, and this site is dedicated to the cultivation of
reclamation areas, demonstrating the effectiveness of habitat
Calliandra for biomass production, a renewable and low-carbon
restoration in supporting wildlife. [GRI 304-1, GRI 304-3]
energy source. Additionally, our Telaga Mas Kalimantan site spans
To further support biodiversity, Kideco has established a 21,461 hectares, positioned next to an HCV area. These HCV areas
734-hectare wildlife corridor (Koridor Satwa) to maintain have been identified based on HCV Resources Network guidance,
ecological connectivity between habitats, enabling the safe ensuring that our approach aligns with globally recognized
movement of wildlife populations. This corridor plays a crucial role conservation and regenerative land management best practices.
in reducing habitat fragmentation, supporting genetic diversity, [GRI 304-3, 304-4]
and ensuring species survival.
As part of our commitment to responsible and sustainable forestry,
Flora identification and inventory efforts cover trees, herbs, Indika Nature subsidiary, Jaya Bumi Paser adheres to the rigorous
lianas, epiphytes, and palms, while fauna assessments include standards of the Forest Stewardship Council (FSC), a globally
mammals, avifauna, herpetofauna, and insects. These efforts are recognized certification for sustainable forest management.
carried out in collaboration with Ecology and Conservation for This certification ensures that our operations comply with strict
Tropical Studies (ECOSITROP), reinforcing Kideco’s commitment environmental, social, and economic sustainability criteria,
to scientific-based conservation practices. [GRI 304-1, 304-2] including biodiversity protection, ethical labor practices, and
community engagement. By obtaining FSC certification, Indika
To support long-term sustainability, Kideco has developed Mine Nature reinforces its dedication to forest conservation, responsible
Closure Plans, ensuring responsible management throughout the sourcing, and ecosystem restoration, ensuring that our biomass
mining lifecycle in Paser. These plans are openly communicated and forest products contribute to a nature-positive and climate-
to stakeholders to promote transparency and alignment with resilient future.
environmental regulations and community interests. Provincial
financial allocations, including environmental restoration Further strengthening our conservation efforts, in 2024,
funds recorded in our Financial Statements, reflect our ongoing Indika Nature partnered with Paragon to drive environmental
commitment to land reclamation and rehabilitation. By conservation initiatives in Kalimantan, focusing on biodiversity
integrating biodiversity conservation into every phase of our protection and carbon emissions reduction. This collaboration
operations, Kideco strives to create a nature-positive impact, aligns with our shared commitment to sustainable development
transforming mining-affected landscapes into healthy, thriving and ecosystem restoration, leveraging scientific research,
ecosystems for future generations. [GRI 304-2, 304-3] technology, and community engagement to achieve meaningful
environmental impact. By working together, we aim to enhance
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
biodiversity resilience, support carbon sequestration, and foster
long-term sustainability across our operational landscapes.
MASMINDO
Masmindo emphasizes biodiversity protection at its gold
concession, which is in a non-forest area, by integrating a holistic,
ecosystem-based management approach. This strategy ensures
a balance between biodiversity, ecosystem services, and mining
operations, minimizing environmental disturbances while
maintaining ecological integrity. To further safeguard biodiversity,
W E M I N I M I Z E I M PA C T,
Masmindo implements continuous monitoring programs,
R E S TO R E E C O S Y S T E M S ,
enabling the early detection of potential risks and the application
E N H A N C E B I O D I V E R S I T Y, A N D
of targeted mitigation strategies to minimize impacts on local
C O L L A B O R AT E FO R L A S T I N G
flora and fauna.
E N V I RO N M E N TA L C H A N G E .
Additionally, the company actively engages with local communities,
fostering partnerships that promote biodiversity conservation and
sustainable practices. By encouraging community participation in
environmental stewardship and wildlife protection, Masmindo
strengthens its commitment to preserving the region’s rich
biodiversity while ensuring responsible resource extraction.
AREA OF LAND RECLAMATION [GRI 304-3]
2022 2023 2024
DESCRIPTION UNIT
REALIZATION CUMULATIVE REALIZATION CUMULATIVE REALIZATION CUMULATIVE
Kideco Ha 440.69 5,050.06 79.97 5,130.03 174.00 5,222.84
Mekko Ha 0.00 0.00 6.00 6.00 5.64 11.64
MUTU
(divested in 2023) Ha 160.00 605.36 138.03 743.39 0.00 0.00
Total Ha 600.69 5,655.42 224.00 5,879.42 174.00 5,234.48
IUCN RED LIST SPECIES IN AREAS MANAGED BY
INDIKA ENERGY GROUP [304-2, 304-4]
LEVEL OF EXTINCTION RISK 2022 2023 2024
Critically endangered 1 17 17
Endangered 7 41 42
Vulnerable 14 93 101
Near threatened 26 91 98
Least concerned 209 242 637
Note:
⚫ The list above includes species found in Tanah Grogot, Paser Regency and Luwu, which are the areas surrounding the operational sites of Kideco,
Indika Nature, and Masmindo.
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100 FAUNA BIODIVERSITY PERFORMANCE BY SPECIES [GRI 304-2] DESCRIPTION 2022 2023 2024 Mammal 49 49 53 Avifauna 138 138 159 Herpetofauna 44 44 54 Insects 429 429 689 CONTINUOUS IMPROVEMENT AND INNOVATION We are dedicated to continuously improving our biodiversity management practices by enhancing our monitoring systems, investing in research and development of innovative conservation techniques, and fostering collaboration with local and international environmental organizations. [GRI 304-2, 304-3, 102-12, 102-13] Our biodiversity performance tracking, actively tracking and reporting of biodiversity performance ensure transparency and accountability. Annual evaluations assess progress and inform future targets for improving biodiversity outcomes. Partnering with environmental organizations, governmental bodies, and local stakeholders to improve biodiversity outcomes and address shared challenges through joint initiatives focused on habitat preservation and species protection. [GRI 102-13, 103-3, 304-3] Looking ahead, we remain steadfast in achieving a net positive impact on biodiversity, ensuring that our conservation efforts exceed the impacts of our operations. By embedding these principles into our practices, we are paving the way for a sustainable future where ecosystems thrive alongside economic growth. [GRI 304-2] P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
Revitalizing Mangroves, Empowering
Communities: The IMPACT Initiative
Indika Energy remains steadfast in its commitment to from tidal surges and extreme weather events, reducing the risk
environmental conservation through the IMPACT Initiative of climate-related disasters. Beyond their ecological benefits,
(Indika Energy Mangrove Program in Action), a flagship program mangroves offer sustainable resources such as timber and
dedicated to restoring and safeguarding mangrove ecosystems. medicinal plants and present opportunities for ecotourism,
Launched in March 2023, this initiative spans villages in Paser, driving local economic development.
East Kalimantan, contributing to climate change mitigation,
biodiversity protection, and coastal resilience. “Through the IMPACT program, Indika Energy actively participates
in sustainable mangrove rehabilitation, not only providing
Mangroves, often called the “rainforests of the sea,” store more solutions to environmental challenges but also integrating
carbon per hectare than any terrestrial forest, making them a these efforts into community development in mangrove areas”,
powerful ally in the fight against climate change. Recognizing Leonardus Herwindo, CEO of Indika Nature.
their immense value, Indika Energy has successfully planted
over 186,700 mangroves across over 155 hectares, significantly At the core of the initiative lies community empowerment.
enhancing carbon sequestration. Once fully mature, these Local residents are actively involved in planting and monitoring
mangroves are projected to absorb approximately 2,533.8 tons of activities, fostering environmental stewardship while creating
CO2 annually, reinforcing our broader commitment to achieving long-term economic opportunities. In collaboration with
net-zero emissions by 2050. government agencies, local communities, and our implementing
partner, Maroon, we are expanding our mangrove rehabilitation
“ M A N G R O V E S C A N E N H A N C E T H E LOC A L E CO N O M Y. T H E efforts. Our ambitious target includes restoring 250 hectares
A C T I V E PA RT I C I PAT I O N O F T H E F I S H I N G C O M M U N I T Y I S across Lori, Tajur, Seniung Jaya, Laburan, Bai Jaya, Riwang, Langgai
K E Y TO S U C C E S S , A S F I S H E R M E N I N T E R AC T D I R E C T LY villages, focusing on four key mangrove species best suited to the
W I T H M A N G R OV E S D A I LY I N C OA S TA L A R E A S ”, FA H M I region’s natural conditions.
FA D L I , R E G E N T O F PA S E R , E A S T K A L I M A N TA N .
By embedding mangrove restoration into our broader
Beyond carbon sequestration, the IMPACT Initiative plays a crucial sustainability strategy, the IMPACT Initiative reflects Indika
role in preserving marine and terrestrial biodiversity, providing Energy’s dedication to environmental responsibility and
essential habitats for migratory birds, fish, and other wildlife. community resilience. This program exemplifies our long-term
Mangroves also serve as natural nurseries for fish and shellfish, vision of protecting nature, reducing emissions, and strengthening
directly supporting the livelihoods of local fishing communities. coastal communities—ensuring a meaningful and lasting impact
Additionally, they act as coastal buffers, protecting shorelines for generations to come.
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Ensuring safety is the priority, with routine inspections and proper protocols in place to safeguard workers, protect the environment, and ensure smooth, sustainable operations.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
CONSERVING WATER RESOURCES
AT I N D I K A E N E R GY G R O U P, T H E R E S P O N S I B I L I T Y FO R WAT E R S T E WA R D S H I P I S A
C O R N E R S TO N E O F O U R S U S TA I N A B I L I T Y S T R AT E GY. W E A R E CO M M I T T E D TO E N S U R I N G
T H AT O U R O P E R AT I O N S D O N OT CO M P R O M I S E A C C E S S TO T H I S E S S E N T I A L R E S O U R C E FO R
S U R R O U N D I N G CO M M U N I T I E S , E CO SY S T E M S , O R A Q U AT I C L I F E . [ G R I 303-2]
At Indika Energy Group, the responsibility for water stewardship Indika Energy Group also employs innovative water efficiency
is a cornerstone of our sustainability strategy. We are committed measures tailored to specific operational needs [GRI 303-5]:
to ensuring that our operations do not compromise access to this
essential resource for surrounding communities, ecosystems, or ⚫ Closed-circuit systems: At Kideco and Mekko, vehicle
aquatic life. [GRI 303-2] washing and ore processing employ closed-loop systems
to maximize water recycling.
Recognizing the potential risks of water contamination — from ⚫ Rainwater harvesting and greywater reuse: These
chemical and heavy metal leaching to runoff, waste disposal, and measures reduce dependency on freshwater resources
processing activities — we prioritize safeguarding water quality while making the most use of every drop of this precious
while balancing environmental and community well-being. [GRI resource.
303-3, 303-5]
⚫ Fog cannons and big-gun sprinklers: Precision nozzles in
To efficiently manage water usage, we monitor extraction, coal stockpile areas optimize water distribution, reducing
treatment, and discharge processes across all operational sites waste without compromising performance.
using advanced technologies like flow meters. These processes are
reviewed quarterly, with progress reported to our Sustainability Effluent and wastewater management are integral to our
Committee to track progress toward our 2025 and 2030 water commitment. We maintain rigorous standards to ensure
withdrawal intensity targets. Semi-annual environmental compliance with local and national regulations, monitoring
assessments conducted by accredited personnel, in alignment discharge for parameters like pH and turbidity to meet acceptable
with Indonesian National Standards (SNI), ensure compliance quality standards and prevent contamination of local water
with water and seawater quality regulations, protecting natural bodies. [GRI 303-4]
water bodies and ecosystems. [GRI 103-2, 303-3, 303-4]
Water is vital to our operations and plays a critical role in our
At high-risk areas such as Interport’s Babelan site and ALVA’s broader sustainability vision. Guided by our Water Stewardship
Cikarang plant, we implement additional conservation measures. Position Statement and aligned with the United Nations
In 2024, our Interport’s Babelan site consumed 0.51 ML while Sustainable Development Goal 6, our approach incorporates
ALVA’s Cikarang plant consumed 2.76 ML. To anticipate this, we diverse considerations, including ecosystem health, human rights,
implemented various water conservation measures. These steps, cultural values, indigenous peoples, community well-being, and
combined with externally sourced water supplies, minimize economic growth.
environmental impacts while maintaining operational efficiency.
[GRI 303-2]
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104
This commitment is realized through our water strategy, which WATER WITHDRAWAL AND RECYCLING PERFORMANCE
(MEGALITERS)
focuses on [GRI 303-1] [GRI 303-3]
⚫ Identifying and mitigating water-related risks. Water withdrawal
2024 2023 2022
2,029.78 1.644.14
⚫ Promoting transparency in water usage. Water recycling
⚫ Addressing shared water challenges in collaboration with 2,829.71 1,951.00
stakeholders.
4,896.11 2,296.00
⚫ Valuing water as a precious, finite resource and sharing
innovations and lessons learned across operations.
WATER AND EFFLUENTS PERFORMANCE [GRI 303-3,
Our water accounting relies on modeling and direct measurement. 303-4, 303-5]
Acknowledging the inherent uncertainties in water balances and
assumptions, we are dedicated to refining our methodologies WATER WITHDRAWAL
and enhancing accuracy. Regular reviews of our assumptions (megaliters)
ensure reliability and reflect our commitment to continuous
improvement in water stewardship. [GRI 101-3, 303-1, 303-2, 303-3, 28.27% 2024: 2,030
303-5]
2023: 2,830
2022: 4,896
By embracing best practices, innovative technologies, and
rigorous monitoring, Indika Energy Group advances its role as a WATER CONSUMPTION
responsible steward of water resources. We remain focused on
(megaliters)
building a water-secure future for operations, communities, and
ecosystems alike, ensuring that water sustains life and livelihoods 27.85% 2024: 2,034
for generations to come.
2023: 2,819
WATER WITHDRAWAL BY SOURCE 2022: 4,881
[GRI 303-3]
WATER DISCHARGE
(megaliters)
3.20% 2024: 219,632
Surface water
76.74% 2023: 212,812
Third party water 2022: 317,812
1.35%
Ground water
20.99%
Seawater
0.92%
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
MANAGING WASTE THROUGH
CIRCULAR ECONOMIC PRACTICES
AT I N D I K A E N E R GY G R O U P, W E R E COG N I Z E T H AT O U R O P E R AT I O N A L A CT I V I T I E S ,
PA RT I C U L A R LY AT K I D E CO A N D I N T E R P O RT, G E N E R AT E B OT H H A Z A R D O U S A N D N O N -
H A Z A R D O U S WA S T E . T H I S I N C LU D E S M AT E R I A L S S U C H A S U S E D O I L , CO N TA M I N AT E D
E Q U I P M E N T, U S E D CO N V E YO R B E LT S , L I V E S TOC K M A N U R E , A N D M I N I N G BY P R O D U CT S
L I K E OV E R B U R D E N A N D TO P S O I L . H A Z A R D O U S WA S T E P R I M A R I LY S T E M S F R O M H E AV Y
M A C H I N E R Y O P E R AT I O N S A N D O N - S I T E H E A LT H FA C I L I T I E S , W H I L E N O N - H A Z A R D O U S
WA S T E O R I G I N AT E S F R O M D O M E S T I C A CT I V I T I E S A C R O S S O F F I C E S A N D O P E R AT I O N A L
S I T E S . [ G R I 3 0 6-1, 306-2]
We are acutely aware of the risks posed by improper waste Hazardous waste is handled with the utmost care. It is temporarily
management, including marine plastic pollution, soil stored at licensed facilities before being processed or transferred
contamination, and public health concerns. These risks drive to certified third parties for recycling, reuse, or disposal. Non-
our commitment to proactive waste reduction, recycling, and hazardous waste, including recyclable materials, is carefully
responsible disposal methods. By embedding circular economic managed to maximize its reuse potential, such as converting
principles into our waste management strategies, we aim to landfill-bound waste into energy. [GRI 306-2, 306-4]
minimize our environmental footprint while protecting the
ecosystems and communities in which we operate. [GRI 306-3, In 2024, Indika Energy successfully managed oil spill incidents at
306-4] Masmindo, demonstrating our commitment to environmental
stewardship. [GRI 3-3, 306-3] These incidents, caused by
minor equipment leaks in heavy machinery, involved small
PROACTIVE WASTE MANAGEMENT PRACTICES to moderate spill volume (3-100 liters) and were classified as
At a Group level, we track waste-related data quarterly through minor or insignificant under Masmindo’s Environmental Spill
our ESG Dashboard, with subsidiaries providing monthly reports. Impact Guidelines. Each case was promptly addressed with swift
Our Sustainability Committee then reviews the data to evaluate clean-up efforts, proactive equipment maintenance, and close
progress and refine waste management strategies. [GRI 103-3, collaboration with environmental and safety teams. Additionally,
306-3] we implemented preventive measures such as routine equipment
inspections, enhanced leak detection systems, improved operator
To minimize waste generation, we emphasize meticulous project training, and the use of more durable sealing materials, to
planning and innovative reuse. For instance: enhance operational resilience and further minimize future risks.
⚫ Extending lifespan of materials: At Kideco, used tires are
retreaded and regrooved to extend their usability. Once FOSTERING SUSTAINABILITY THROUGH
unfit for use, they are repurposed for road markings or CIRCULARITY
drop structures in reclamation areas. Circularity is at the heart of our waste management approach.
⚫ Repurposing waste oil: Waste lubricant oil is reused as a We continuously seek innovative ways to transform waste into
substitute for diesel in ammonium nitrate fuel oil (ANFO) valuable resources. Whether through recycling, repurposing,
explosives for blasting activities. or reusing waste as raw materials in other processes, we are
committed to reducing waste-related environmental impacts far
beyond regulatory compliance. [GRI 306-4, 306-5]
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These efforts go beyond mitigating environmental risks; they WASTE GENERATED IN 2023 (TONS)
reflect our broader goal of fostering a sustainable operational [GRI 306-3]
culture. By integrating waste management best practices
into our business processes, we contribute positively to local
communities and ecosystems while advancing our commitment
to sustainability.
Hazardous
Through these initiatives, Indika Energy Group is redefining waste 27%
Non-hazardous
as a resource, reinforcing our dedication to a circular economy, 73%
and realigning our mission to create a cleaner, more sustainable
future.
WATER REUSED AND RECYCLED WASTE GENERATED IN 2024 (TONS)
(TONS) [GRI 306-3]
[GRI 306-2, 306-4]
5,428
5,238
Hazardous
46%
4,099
Non-hazardous
54%
3.50%
21.74%
WASTE DIVERTED FROM DISPOSAL IN 2023 (TONS)
[GRI 306-4]
2022 2023 2024
Hazardous
41%
Non-hazardous
59%
WASTE DIVERTED FROM DISPOSAL IN 2024 (TONS)
[GRI 306-4]
Hazardous
56%
Non-hazardous
44%
P T I N D I K A E N E R GY T B K .
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IMPROVING AIR QUALITY
C L E A N A I R I S E S S E N T I A L FO R H E A LT H Y L I V E S A N D A
H E A LT H Y P L A N E T. I M P R OV I N G A I R Q U A L I T Y I S N OT O N LY A
S T E P TOW A R D P R OT E CT I N G P U B L I C H E A LT H , B U T A L S O A
C R I T I CA L I N V E S T M E N T I N E N V I R O N M E N TA L S U S TA I N A B I L I T Y,
C L I M AT E R E S I L I E N C E , A N D T H E Q U A L I T Y O F L I F E FO R F U T U R E
G E N E R AT I O N S .
At Indika Energy Group, air quality is a key component of To ensure compliance with air quality regulations, Kideco conducts
our environmental standards, reflecting our commitment to emissions testing on stationary sources through independent
protecting human health, ecosystems, and communities. We laboratories and continuously monitors air emissions to verify that
recognize that maintaining good air quality is essential not only levels remain within government-mandated limits. [GRI 305-5]
for environmental sustainability but also for enhancing well-
being and resilience across our operations. [GRI 3-3, 305-6]
ADDRESSING OZONE-DEPLETING SUBSTANCES
(ODS)
MANAGING NON-GHG EMISSIONS Ozone-depleting substances (ODS) pose environmental risks
To support the transition to cleaner energy systems, we are and are commonly found in refrigeration, air-conditioning
adopting innovative solutions to reduce air emissions, including: systems, and fire extinguishers. While the Montreal Protocol has
significantly reduced ODS production and use, small amounts are
⚫ Promoting cleaner energy alternatives: Developing still available.
EV charging infrastructure and exploring hydrogen
energy options to help industries shift to lower-emission Indika Energy does not produce, import, or export ODS, which
technologies. is why we do not measure ODS emissions. However, we have
⚫ Reducing diesel reliance: Increasing the use of biodiesel proactively adopted ozone-friendly refrigerants, such as R410a,
and integrating solar power into our energy mix, leading in most of our office air-conditioning systems to minimize our
to measurable reductions in carbon monoxide (CO), impact. [GRI 305-6]
nitrogen oxides (NOx), sulfur oxides (SOx), and particulate
In alignment with the Montreal Protocol, we remain proactive
matter from diesel-powered equipment.
in eliminating harmful substances and promoting sustainable
At Kideco, emissions from stationary sources are managed through alternatives. This shift reflects our commitment to reducing
regular testing by accredited external laboratories and continuous environmental harm and ensuring that our operations align with
monitoring, ensuring compliance with government standards global sustainability goals.
(Peraturan Menteri LHK No. 11/2021). While we observed a slight
increase in NOx, SOx, CO, and particulate matter emissions, all
levels remained well below permissible limits. Moving forward, OUR COMMITMENT TO CLEAN AIR AND
we remain committed to leveraging innovative technologies to SUSTAINABILITY
further reduce emissions and advance our net-zero goals. We integrate air quality management into our broader
sustainability strategy, prioritizing innovation, compliance, and
proactive emissions reduction. By advancing clean air technologies
and reducing our reliance on emissions-intensive fuels, we aim
to contribute to a healthier environment while maintaining
operational excellence. [GRI 305-5]
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SIGNIFICANT AIR EMISSIONS [GRI 305]
DESCRIPTION UNIT 2022 % 2023 % 2024
NOx tons 516.04 33.67% 689.79 1.11% 697.45
SOx tons 1.48 50.68% 2.23 127.72% 5.08
Persistent organic pollutants tons 0.00 0.00% 0.00 100.00% 0.11
Volatile organic compounds tons 0.00 0.00% 0.00 100.00% 0.28
Hazardous air pollutants (HAP) tons 0.00 0.00% 0.00 100.00% 0.03
Particular matter (PM) tons 3.56 265.17% 13.00 -34.04% 8.58
Other standard categories of air emissions tons 92.82 1.59% 94.30 -9.28% 85.55
identified in relevant regulations
Note:
⚫ The formula used to calculate exhaust gas emissions is concentration (mg/Nm3) x debit (m3/second) x no. of operational hours (hours/ year) x 0.0036
(seconds/hour). Calculations are done based on emissions testing conducted in the laboratory.
⚫ For 2022 data, the significant air emissions data includes numbers from Kideco and Petrosea (divested) Due to Petrosea divestment completion in
2022, the 2023 and 2024 data are from Kideco only.
⚫ Both the concentration and debit data are obtained from emissions test results done by the laboratory.
⚫ Other categories of air emissions, e.g. persistent organic pollutants (POP), volatile organic (VOC), etc., are not calculated yet, because they are not
included in the requirements of the aforementioned Ministerial Regulation.
P T I N D I K A E N E R GY T B K .
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Masmindo engages with local communities by supporting economic development, education, and environmental stewardship to create lasting positive impacts.
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CHAPTER 5
SOCIAL IMPACT:
EMPOWERING COMMUNITIES
AND POWERING LIVES
SDG
203-1, 203-2, 3-3, 401-1, 401-2, 403-1, 403-2, 403-3, G R I 403-4, 4 0 3 - 5 ,
GRI 403-6, 403-7, 403-8, 403-9, 403-10, 404-1, 404-2, 404-3, 405-1, 40 5 - 2 ,
406-1, 407-1, 408-1, 409-1, 413-1, 413-2
P OJ K C .3. B , F. 18, F.19, F.21, F.21, F.22, F.23, F.24, F.25
G LO B A L C O M PA CT P R I N C I P L E 3, P R I N C I P L E 4, P R I N C I P L E 5, P R I N C I P L E 6
WEF SCM PEOPLE AND PROSPERITY PILLARS
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SUSTAI NABI LI TY REP O RT 2 0 2 4
EMPOWERING OUR PEOPLE
FOR A SUSTAINABLE FUTURE
At Indika Energy Group, we recognize that our people are the As the energy sector embraces sustainability, effective human
driving force behind our success. As we transition toward a low- capital management plays a critical role in ensuring a fair and
carbon future, human capital development remains at the core inclusive transition. Companies must prioritize key principles that
of our sustainability strategy. Our commitment to fostering a empower employees, foster engagement, and drive long-term
skilled, engaged, and future-ready workforce ensures we are success. By investing in workforce resilience, businesses can create
well-positioned to navigate the challenges and opportunities of a just and sustainable energy transition while ensuring employee
an evolving energy landscape. In 2024, we intensified our focus trust, well-being, and productivity remain at the forefront.
on talent development, employee engagement, and leadership
cultivation, aligning our workforce capabilities with our long-term
net-zero ambitions. [GRI 3-3]
PRINCIPLES FOR BUILDING STRONG WORKING
RELATIONSHIPS IN THE ENERGY TRANSITION
Respect for human Open & transparent Skills development Rewarding Commitment to
rights & fair two-way & future-ready achievements workplace health,
employment communication workforce & recognizing safety & well-being
contributions
We uphold fair labor Engaging employees We invest in training A fair reward system We prioritize a safe
practices, ensuring through two-way and upskilling equips and performance- working environment,
equal opportunities communication fosters employees with based recognition continuously enhancing
and providing trust and inclusion. competencies. We motivate employees, safety standards,
reskilling programs Regular feedback also collaborate with fostering commitment while also providing
to support employees and stakeholder related stakeholders to sustainability mental health support
transitioning to collaboration ensure to build a sustainable goals and operational and implementing
clean energy roles. workers feel informed talent pipeline. excellence. ergonomic solutions
. and valued. to help employees.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
INDUSTRIAL RELATIONS:
BUILDING A WORKFORCE
FOR ENERGY TRANSITION
COMMITMENT TO EMPLOYEE WELFARE AND MATERNITY LEAVE
FAIR REMUNERATION Indika Energy upholds a supportive and inclusive workplace by
At Indika Energy, we are committed to continuously enhancing implementing a maternity and paternity leave policy in compliance
employee welfare across all aspects of employment. Our with applicable labor regulations. Maternity leave is granted
remuneration system is designed to ensure fairness, to all female employees, ensuring they have adequate time for
competitiveness, and inclusivity, aligning with industry standards recovery and childcare. Meanwhile, paternity leave is provided for
while supporting employee well-being and performance. [GRI male employees, allowing them to support their spouses during
401-2] childbirth and assist in early childcare responsibilities.
Beyond monthly salaries, we provide additional variable income,
including bonuses, incentives, third-party health insurance, BPJS RETIREMENT PREPARATION PROGRAM
Health, BPJS Employment, and other benefits aimed at fostering At Indika Energy Group, we are committed to ensuring that
a productive and motivated workforce. employees are supported not only throughout their careers
but also as they transition into retirement. Our comprehensive
As part of our commitment to work-life balance, permanent retirement planning initiatives provide financial security, skill
employees who have completed five years of service (and every development, and personal well-being support to help employees
subsequent five-year milestone) are entitled to one-month navigate this significant life stage with confidence.
long leave. Our remuneration system undergoes an annual
review, considering internal fairness and external market To safeguard post-employment stability, we offer the Pension
competitiveness. We ensure that salary determinations are made Protection Program, which ensures that employees and their
equitably, without discrimination based on background, gender, next of kin maintain a decent standard of living in retirement or
race, religion, ethnicity, or physical conditions. in cases of permanent total disability or death. In addition, we
provide retirement training programs that focus on psychological
preparedness, health management, and financial planning. These
ENHANCING EMPLOYEE WELL-BEING AND
sessions, delivered through classroom instruction, roleplay, and
ENGAGEMENT
business visits, equip employees with essential knowledge for a
At Indika Energy Group, we recognize that a safe, comfortable, smooth transition. [GRI 203-1, 404-2]
and supportive work environment is fundamental to employee
well-being and productivity. Through our commitment to Key programs include the Pre-Pension Briefing, conducted three
work-life balance, we provide a range of programs and facilities years before retirement to help employees plan for financial and
that promote both physical and mental health, ensuring that health-related expectations, and the Pension Debriefing, held
employees feel appreciated and motivated in their roles. [GRI 403- two years before retirement, which introduces career transition
6, GRI 401-2] options such as entrepreneurship, professional certification, and
spiritual guidance.
We believe that a highly engaged and well-supported workforce
fosters a positive and dynamic workplace culture. By prioritizing Recognizing the potential for employees to pursue business
employee well-being, professional growth, and meaningful opportunities post-retirement, Kideco launched the Kideco
engagement, Indika Energy Group remains dedicated to Pensionpreneur Program in 2023. This initiative enables
cultivating an empowering work environment, where employees employees to explore entrepreneurship, with a training curriculum
feel valued, supported, and inspired to succeed. that focuses on small business opportunities in sectors such as
food and beverage, plantations, fisheries, and livestock, ensuring
As part of this commitment, Indika Energy also provides life that retirees have the tools to build sustainable livelihoods beyond
insurance benefits to all employees, including coverage beyond their careers at Indika Energy Group.
regular working hours. In the event of unforeseen circumstances
such as passing or disability, this benefit offers financial protection
to ensure employees’ families are supported and secure. [GRI 401-
2]
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Creating a supportive
and engaging work culture
at Indika Energy
At Indika Energy, we believe that a thriving business is built on the prevention, and ergonomics, providing employees with relevant
well-being, connection, and empowerment of its people. As part tools to manage their overall well-being and maintain a balanced
of our ongoing commitment to fostering a positive and inclusive lifestyle. [GRI 403-6, 403-3]
work environment, we continue to develop initiatives that
support both personal and professional growth, while promoting In promoting a culture of openness and collaboration, we have also
transparency, health, and open communication across all levels of introduced Breakfast and Dialogue sessions—informal forums
the organization. where employees engage directly with the Board of Directors and
the Human Capital team. These conversations provide a valuable
One of our programs, INDY Club, serves as a dynamic platform for opportunity for employees to ask questions, voice concerns, and
employees to connect, collaborate, and express themselves. The offer feedback, strengthening trust and aligning leadership with
club regularly organizes a wide variety of activities—including employee aspirations. [GRI 402-1, 401-2]
sports events, wellness programs, artistic workshops, and
religious gatherings—that encourage team bonding and create a Additionally, Indika Energy provides access to medical and
sense of community in the workplace. These inclusive initiatives psychological support through in-house or partner healthcare
help cultivate a supportive, respectful, and engaged work culture. professionals. From regular health check-ups to mental health
[GRI 403-6, 401-2] consultations, we ensure that our employees have the support they
need to stay healthy, motivated, and productive. These services
To reinforce our commitment to employee health, reinforce our belief that employee wellness is a foundation for
we host regular Health Talk sessions long-term success. [GRI 401-2, 403-6]
led by experienced medical and
wellness professionals. These Together, these initiatives reflect Indika Energy’s holistic
sessions cover practical topics approach to employee engagement and well-being, helping
like stress management, healthy us build a workplace where everyone feels valued, heard, and
eating, mental resilience, disease empowered to grow.
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
EMBEDDING DIVERSITY, EQUITY,
AND INCLUSION IN OUR CULTURE
Diversity, equity, and inclusion (DEI) are not merely guiding work policy ensures that compensation is based solely on industry
principles for us — they are fundamental drivers of our sustainable benchmarks and market insights, without any differentiation
growth, innovation, and long-term success. These values are deeply based on gender, age, ethnicity, or other demographics. We also
embedded in our culture and operational strategies, influencing enforce a zero-tolerance policy against discrimination, including
everything from talent acquisition and leadership development toward pregnant employees or those with family responsibilities,
to stakeholder engagement. We are dedicated to fostering an ensuring fair treatment in hiring, work assignments, training, and
environment where every voice is heard, every contribution is career advancement.
valued, and every individual has equal opportunities to excel. [GRI
3-3, 405-1, 406-1]. In addition, we actively promote gender diversity across all levels
of the organization, with a strong emphasis on increasing female
Our DEI efforts extend beyond internal policies to include representation in middle and senior management. In 2024,
inclusive workplace practices, fair representation across all levels, women made up 20.19% of our total workforce, while female
and proactive measures to address systemic barriers. We offer representation in senior management stood at 11.19%. These
regular training and capacity-building programs to build cultural figures reflect our ongoing commitment to gender equality, as
sensitivity, unconscious bias awareness, and inclusive leadership. we continue to implement initiatives that empower individuals
Additionally, we prioritize open communication channels to to grow professionally while maintaining a healthy work-life
encourage feedback, address concerns, and promote a culture of balance. [GRI 405-1, 405-2]
transparency and accountability.
ZERO TOLERANCE FOR HARASSMENT
FOSTERING REPRESENTATION AND INCLUSION Indika Energy Group upholds a zero-tolerance policy for
Indika Energy Group is committed to advancing diversity and harassment, ensuring a safe and respectful environment for all
inclusion, particularly in traditionally male-dominated industries. employees, partners, and stakeholders. This commitment extends
We actively strive to increase women’s representation across across all our operations, with protective measures in place to
all levels, especially in leadership and technical roles—while safeguard employees regardless of location. To reinforce this
expanding into sectors that offer more inclusive opportunities. stance, we conduct awareness that educate employees on various
As part of our business diversification strategy, we focus on forms of harassment and the mechanisms available to report
empowering women by ensuring access to meaningful career and address such issues. Our efforts are further strengthened by
paths, mentorship, and leadership development, in line with GRI the integration of these principles into our group-wide Code of
405-1. Conduct, which serves as a guiding framework to uphold dignity,
fairness, and respect throughout our ecosystem. Through these
We also emphasize local hiring to enhance economic inclusion initiatives, we foster a workplace culture where everyone feels
in the areas where we operate. This approach supports regional secure, valued, and empowered to perform at their best. [GRI 406-
development, incorporates local insights into our operations, and 1]
offers community members opportunities for skill development
and career growth. In 2024, 26.89% of our workforce was
recruited locally, reflecting our ongoing commitment to building FAIR PAY AND BENEFITS
a workforce that is inclusive, equitable, and representative of our Indika Energy Group is committed to upholding fair compensation
operational regions. [GRI 202-2] practices and ensuring employee well-being through equitable
wages and comprehensive benefits. Our lowest compensation
exceeds local minimum wage standards, guaranteeing that all
EQUAL OPPORTUNITY, EMPOWERED WOMEN
employees receive a fair living wage that supports their financial
We uphold our commitment to fostering an inclusive and security. We prioritize equality in pay and benefits, ensuring that
equitable workplace where all employees are fairly compensated compensation is determined based on merit, performance, and
and given equal opportunities for growth. Our equal pay for equal
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Tripatra Srikandi Day
2024: Breaking barriers,
Advancing Equity
In 2024, Tripatra, in collaboration with the Indika Foundation,
held Srikandi Day—a week-long initiative dedicated to promoting
gender equality and inclusivity in the workplace. The program’s
highlight was a talk show titled “Making Allies: Breaking Gender
Barrier, Advancing Equity”, which brought together more than 260
employees, both online and onsite at Tripatra’s Bintaro office.
The talk show featured insightful discussions with speakers Dini
Andriani, Wawan Suwandi, and Jessica Carla, who explored gender
misconceptions, the power of allyship, and strategies for building
more inclusive work environments. Feedback from the event was
overwhelmingly positive, with 85% of participants expressing
satisfaction and many gaining new perspectives—particularly
from male voices addressing gender bias. This program marked
a significant step in normalizing gender equity in the workplace,
honoring Kartini’s legacy, and inspiring all employees to contribute
to a culture of fairness and inclusion.
Complementing this initiative, Tripatra has long been committed
to women’s empowerment through ongoing programs that
focus on capacity building, skills development, and confidence
building for its female employees. One key initiative is the Women
Indika Energy Women’s
Health Initiative:
Mentoring Women program, which applies a 70:30 development
framework—with 70% on-the-job learning and 30% mentoring
and structured training—to support women’s professional growth
Promoting Long-Term
Well-Being
within the organization.
As part of its ongoing commitment to employee health and well-
being, Indika Energy launched a women’s health initiative focused
on preventive care. In 2024, the company facilitated HPV (Human
Papillomavirus) vaccinations for female employees at Graha
Mitra, Jakarta.
This initiative aims to help prevent cervical cancer, one of the most
common and preventable cancers among women, by providing
early protection through vaccination. Beyond addressing physical
health, the program also reflects Indika Energy’s dedication to
creating a supportive and informed workplace, where women are
empowered to take charge of their long-term well-being.
By offering access to such preventive healthcare services, Indika
Energy reinforces its role in fostering a safe, inclusive, and health-
conscious work environment.
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
role-specific responsibilities, without bias toward gender, age,
GENDER [GRI NUMBER OF EMPLOYEES
ethnicity, or other demographic factors. [GRI 202-1]
405-1] 2022 2023 2024
Beyond fair wages, we offer a benefits package designed to
enhance employees’ quality of life and well-being. These benefits Male 3,169 2,908 3,084
include social security, health insurance, meal and transportation Female 747 671 780
allowances, communication allowances, annual leave allowances,
holiday allowances (THR), paid leave, and parental leave.
Importantly, these benefits are extended to all employees, GENDER [GRI NUMBER OF EMPLOYEES
whether full-time, permanent, part-time, or temporary [GRI 401- 405-1] 2022 2023 2024
2].
Overall woman 19.08% 18.75% 20.19%
representation in
DISABILITY INCLUSION IN THE WORKPLACE
total workforce
At Indika Energy Group, we are committed to building an inclusive
and equitable work environment, where individuals of all abilities Women representation 7.41% 6.98% 5.81%
are empowered to thrive, grow, and contribute meaningfully. We in the board
embrace and support employees with disabilities by ensuring
equal opportunities in recruitment, career development, and DESCRIPTION
workplace accommodation. 2022 2023 2024
[GRI 405-1]
Our commitment goes beyond compliance—we strive to foster a Male in senior 117 121 127
culture of belonging, where every team member feels respected, management
supported, and valued. At Kideco Jaya Agung, for example, we are
Female in senior 19 16 16
proud to have an employee with disabilities who plays an integral
management
role in our operations, exemplifying the strength and productivity
that comes from a diverse workforce built on collaboration and Women representation 13.97% 11.68% 11.19%
mutual respect. in senior management
To further advance disability inclusion, we are implementing a
range of initiatives, including accessible infrastructure, assistive AGE GROUP NUMBER OF EMPLOYEES
technologies, and customized training programs. We also [GRI 405-1] 2022 2023 2024
promote greater awareness through disability sensitivity training,
helping to build an inclusive mindset across the organization. <30 years old 835 1,083 1,184
By embedding disability inclusion into our corporate values 30-50 years old 2,434 2,084 2,256
and sustainability agenda, Indika Energy Group reaffirms its >50 years old 647 412 424
commitment to social equity and empowerment, ensuring that all
employees—regardless of ability—can reach their full potential
and play an active role in shaping a more inclusive, sustainable
future. [GRI 405-1]
EMPLOYEE DEMOGRAPHY
As of December 31, 2024, Indika Energy Group employed 3,864
individuals, with a diverse workforce spanning gender, age,
nationality, and educational backgrounds. [GRI 405-1] In addition,
we engage over 1,800 outsourced staff, including part-time
employees, temporary workers, interns, contractors, and experts,
further strengthening our operational capabilities. [GRI 2-8] Our
commitment to employee transitions reflects our broader mission
to support long-term well-being, professional growth, and
financial security, reinforcing our dedication to a sustainable and
people-centered organization.
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Indika Energy Group continues to promote active participation of women across various sectors—from leadership roles to grassroots communities—through a range of empowerment initiatives. These efforts reflect the company’s ongoing commitment to diversity, equity, and inclusion.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
TALENT ACQUISITION
AND RETENTION
O U R D OO R S A R E O P E N TO I N T E R N A L TA L E N T S S E E K I N G N E W
C H A L L E N G E S , A S W E L L A S E X T E R N A L CA N D I DAT E S , I N C LU D I N G
ACA D E M I C S , I N D U S T R Y E X P E RT S , A N D P R O F E S S I O N A L S F R O M
D I V E R S E B AC KG R O U N D S .
At Indika Energy, our recruitment process is designed to create NEW HIRES AND EMPLOYEE TURNOVER IN 2024
mutual opportunities—connecting talented individuals with In 2024, we recruited over 910 new employees across various
meaningful career paths while supporting the company’s long- subsidiaries and business units. These new hires reflect our
term growth. We implement a decentralized recruitment continued efforts to attract fresh talent and strengthen our
approach, empowering each subsidiary to identify and attract workforce in alignment with our evolving business needs. At
the talent that best fits their operational needs. Our doors are the same time, our employee turnover stood at 847 employees,
open to internal talents seeking new challenges, as well as resulting in a relatively balanced workforce movement.
external candidates, including academics, industry experts, and
professionals from diverse backgrounds. This inclusive approach This data highlights not only our capacity to effectively
ensures that we continue to build a dynamic, future-ready attract onboard talent, but also our ongoing efforts to retain
workforce that reflects our commitment to innovation, diversity, skilled employees through meaningful career development
and sustainable growth. [GRI 401-1, 405-1] opportunities, a supportive work culture, and competitive
benefits. By viewing employees as key drivers of sustainable
growth, we remain committed to building a resilient and engaged
workforce that supports our long-term success. [GRI 401-1]
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Voices of the Future:
What Our Young Talent Says About Indika Energy
Moyra Rahmadanty, Indika Energy
Working as a sustainability specialist at Indika Energy has been an exciting journey. Exploring our diverse
businesses gives me a deeper, more holistic understanding of sustainability. The constant learning and
growth inspire me every day, and I am proud to be part of the mission to reach net-zero by 2050.
Muhammad Qola Ariansyah Damanik, Kideco
Sustainability is about meeting today’s needs while preserving the future—and I am
inspired by Indika Energy’s vision that drives Kideco toward more efficient and sustainable
operations. Our shared commitment reflects a responsible, forward-looking mindset.
It’s a meaningful step toward a better future, and I am proud to be part of it.
Amalia Putri Nirwandhani, Tripatra
I am most excited about what and where the energy transition will lead us. We have already taken the
first step in Tripatra’s Green Energy Development by planning a Sustainable Aviation Fuel Plant in
Indonesia. It is truly fascinating to see how this will transform the energy industry in the future.
Gilbert, Indika Nature
Indika Energy Group is guided by a forward-looking vision and a strong commitment to
creating positive change in Indonesia. Through Indika Nature, which focuses on nature-
based solutions as part of the Group’s green portfolio, I feel grateful and proud to contribute
to efforts that support nature, the climate, and the well-being of communities.
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
Christoforus Steven Dwinovandi, Interport
Indika Energy offers valuable learning opportunities in a supportive environment that encourages
personal growth, where age and background are never obstacles to making a meaningful impact.
As the energy landscape evolves, Indika Energy—through Interport and other subsidiaries—helps
us stay agile and future-ready by providing engaging employee development programs.
Putri Ayu Salsabila, Indika Energy
I started my career at Kideco, an Indika Energy subsidiary, before transitioning to the holding company.
This shift brought exciting challenges and new learning experiences in a different industry and role. I
am grateful for Indika Energy’s supportive leadership and commitment to employee growth. Proud to
be part of INDY Fellas.
Syoma Sakon Ari, ALVA
I maintain a healthy work-life balance by setting clear boundaries, prioritizing tasks, and
making time for activities that recharge me, like exercise and personal downtime. ALVA
supports this with two weekly sports days, offering activities such as tennis, badminton, and
yoga—an initiative that greatly contributes to my well-being and keeps me energized.
Maura Aniasa Rinjani, KALISTA
As part of the Indika Energy Group, KALISTA offers exciting learning opportunities within the rapidly
growing EV industry. It is rewarding to be involved in meaningful projects that shape the future of
mobility while exploring the latest EV technologies. Knowing my work contributes to lasting change in
Indonesia makes the experience even more fulfilling.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
DEVELOPING THE RIGHT SKILLS
FOR A SUSTAINABLE FUTURE
W E S U P P O RT O U R E M P LOY E E S W I T H T H E R I G H T S K I L L S A N D
M I N D S E T TO AC H I E V E O U R S U S TA I N A B I L I T Y V I S I O N . I N 2024,
W E I M P L E M E N T E D S T R U CT U R E D P R OG R A M S TO A L I G N E M P LOY E E
CA PA B I L I T I E S W I T H T H E CO M PA N Y ’ S T R A N S FO R M AT I O N GOA L S .
CORE LEARNING AND DEVELOPMENT conducted by thought leaders in sustainability
PROGRAMS and business transformation. [GRI 404-2]
We are committed to continuous learning and skill enhancement, ⚫ Learning Management System (LMS) – Indika Energy
ensuring that our employees remain agile and well-equipped to empowers employee development through the LMS
contribute to our net-zero goals. Our learning and development powered by LinkedIn Learning. The platform offers
programs focus on both technical expertise and leadership access to both soft and technical skills training,
capabilities. supporting growth aligned with the company’s
transformation. It is also available to subsidiaries and can
⚫ Mandatory training – Our core training programs be tailored to their specific needs. [GRI 404-1, 404-2]
cover essential topics such as Code of Conduct and
⚫ TERBAIK Centre (Training and Education for Better
Business Ethics, Anti-Bribery and Anti-Corruption
Achievement in Kideco) – In 2024, Kideco expanded the
Policies, Health, Safety, and Environmental
purpose of its Terbaik Centre—a training facility that
(HSE) Best Practices. [GRI 404-2, 205-2]
initially focused on technical roles such as operators and
⚫ Executive training program – In 2024, we provided mechanics—into a comprehensive learning hub that now
a specialized training series on corporate action, also supports leadership and soft skills development. The
corporate law and trade practices, monetizing center is equipped with simulators, hands-on practice
business opportunities, subsidiary governance, and zones, machine replicas, and classrooms, with training
corporate investment strategies for value creation. facilitated by both internal and external instructors.
This program was tailored for all Indika Energy
⚫ Kideco Academy – Kideco also introduced the
Group executives and newly appointed Board of
Kideco Academy, which features a library, computer
Directors members at our subsidiaries. [GRI 404-2]
stations, presentation tools, and dedicated spaces for
⚫ Sustainability workshops – We organized targeted internal sharing sessions. By involving past training
ESG (Environmental, Social, and Governance) participants as peer facilitators, the Academy fosters
discussion forum to standardize and enhance a culture of continuous learning, collaboration,
sustainability knowledge across all business and shared growth across the organization.
units. These sessions ensure that our employees
understand the company’s sustainability goals and PERFORMANCE AND CAREER DEVELOPMENT
their role in achieving them. [GRI 2-17. 404-2]
We believe that career growth and personal development should
⚫ External learning opportunities – We actively be accessible to all employees. Our talent management approach
encourage employees to participate in external ensures equal opportunities for professional advancement
learning engagements, including industry conferences, through structured career progression frameworks, mentorship,
expert-led webinars, and specialized training sessions and performance recognition.
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⚫ Comprehensive performance reviews ⚫ Enhancing employee engagement
We implement standardized evaluation tools to ensure We foster a culture of transparent communication and
fair and objective assessments of employee performance. inclusive decision-making to empower employees and
These reviews not only recognize achievements but strengthen their connection to the company’s mission.
also provide employees with constructive feedback, Through engagement initiatives, employee forums,
enabling them to enhance their skills and advance and leadership dialogues, we ensure that employees’
in their careers. Our approach fosters a culture of voices are heard and valued, driving motivation and
continuous learning and professional growth. [GRI 404-3] commitment toward shared success. [GRI 2-30, 405-1]
⚫ Coaching support network
Our leadership teams are equipped with coaching PREPARING FUTURE LEADERS AND
techniques to mentor employees effectively. By providing STRENGTHENING CULTURE
guidance, support, and career development insights, To build a future-ready workforce, we invest in strategic leadership
leaders play a crucial role in fostering a collaborative and and behavioral development initiatives:
growth-oriented work environment. This initiative helps
employees build confidence, improve competencies, ⚫ UnITAAS: Building key behaviors
and achieve long-term success. [GRI 404-2] In 2024, we implemented the UnITAAS framework
to define and reinforce key behaviors that align
⚫ Collaborative policy development
with our company values and sustainability goals.
We actively involve employees in shaping company
This initiative fosters a culture of accountability,
policies through town hall discussions, feedback
collaboration, and innovation, ensuring that
sessions, and coordination meetings. By incorporating
employees embody the principles necessary for a
diverse perspectives, we create policies that align
successful transition to net zero. [GRI 2-23, 2-24]
with both employee needs and business objectives.
This inclusive approach enhances transparency, ⚫ Indika Energy Future Leaders Gathering (FLG) and
strengthens trust, and ensures policies support Future Leaders Development Program (FLDP)
long-term organizational growth. [GRI 2-29] Our Future Leaders Gathering (FLG) and Future
Leaders Development Program (FLDP) are designed
to nurture high-potential employees, equipping
WORKPLACE WELL-BEING AND INCLUSION them with the skills and leadership qualities needed
to take on key roles in our sustainability journey.
We foster a healthy, inclusive, and safe work environment where
Through structured mentorship, training modules,
all employees feel valued, supported, and empowered to grow.
and exposure to strategic projects, we are cultivating
Through strong safety practices, inclusive policies, and access
the next generation of leaders who will drive Indika
to well-being programs, we ensure everyone can thrive and
Energy Group’s transformation. [GRI 404-2]
contribute meaningfully to our shared goals.
⚫ Performance management system revamp and
refreshment
⚫ Prioritizing worker welfare and inclusiveness To drive continuous improvement, we have
A thriving organization begins with a workforce updated our performance management system,
that feels valued, respected, and empowered. integrating advanced methodologies to assess
We are committed to fostering a supportive and and enhance employee contributions effectively.
inclusive workplace where employees can perform The revamped system ensures that performance
at their best. Our initiatives focus on well-being, evaluations are aligned with our sustainability
inclusivity, and providing equal opportunities for all targets and corporate objectives. [GRI 404-3]
employees, ensuring that personal and professional ⚫ Human Capital Indika Energy Group synergy
development go hand in hand. [GRI 401-2, 403-6] Recognizing the importance of a cohesive and
⚫ Fair treatment and safety collaborative human capital strategy across our business
We uphold the highest safety standards by units, we have launched the HC IEG Synergy Initiative.
implementing strict health and safety protocols, This program fosters knowledge-sharing and best
conducting regular training, and promoting a practices across our subsidiaries, ensuring alignment
proactive safety culture. [GRI 403-1, 403-2, 403-5] in talent management, workforce planning, and
⚫ Protecting worker rights sustainability-driven skill development. [GRI 2-30]
We strictly adhere to fair labor practices and
international human rights standards, ensuring ethical
employment policies across all our operations. Our
commitment to protecting worker rights includes
prohibiting forced labor, child labor, and discrimination
while promoting fair wages, ethical recruitment,
and workplace diversity. [GRI 2-23, 408-1, 409-1]
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
Empowering Employees to Drive
Impact: Leonardus Aditya’s Journey
for Clean Water
S U S TA I N A B I L I T Y I S N OT J U S T A B O U T E M I S S I O N S A N D E F F I C I E N CY – I T I S A L S O
A B O U T E M PAT H Y, E M P OW E R M E N T, A N D LO N G -T E R M CO M M I T M E N T TO P E O P L E .
At Indika Energy, we believe sustainability is not just a corporate This initiative was made possible with the full support of Indika
goal, it is a shared mission that lives through our people. We are Energy and ALVA, who not only encouraged Leo’s efforts but
committed to supporting employees who take the initiative to stood behind his mission. Their backing provided the resources,
make a difference, whether within the workplace or out in the visibility, and moral support needed to amplify the impact of his
communities we serve. Our human capital approach encourages cause.
individuals to bring purpose into action, aligning personal
passions with broader environmental and social impact. Leo’s story is a testament to the power of individual action backed
by collective support. His journey reminds us that sustainability is
One inspiring example is Leonardus Aditya, an ALVA employee and not just about emissions and efficiency – it is also about empathy,
ultra-marathon runner, who took on a 100-kilometer charity run to empowerment, and long-term commitment to people.
raise funds for clean water access in two remote villages in West
Nusa Tenggara: Bilelando and Wakan. Motivated by firsthand “This run was tough, but it is nothing compared to the daily
experience of rural challenges during his university years, Leo struggle for clean water that so many families face. I am truly
partnered with Jelajah Timur to carry out this humanitarian thankful to Indika Energy and ALVA for supporting this cause and
mission. Running an ultra-marathon is no small feat. Leo trained helping turn our efforts into something that can truly change
for months, running over 40 km per week and building both lives,” Leo shared after reaching the finish line.
physical and mental endurance. The race route tested every
By enabling initiatives like this, Indika Energy continues to
limit—thick fog, steep inclines, harsh weather, and dark roads
nurture a culture where employees are encouraged to lead with
made the journey grueling. Yet, Leo pushed through, fueled by his
purpose, contribute meaningfully to society, and become agents
passion to make clean water a reality for those in need.
of sustainable change—both in and beyond their roles.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
ENSURING SAFETY
I N D I K A E N E R GY G R O U P H A S A LWAY S T R E AT E D S A F E T Y
N OT J U S T A S A P R I O R I T Y, B U T A CO R E VA LU E . O P E R AT I N G
I N I N D U S T R I E S W I T H I N H E R E N T R I S K S , W E P L AC E T H E
H E A LT H , S A F E T Y, A N D W E L L - B E I N G O F O U R WO R K FO R C E A N D
S TA K E H O L D E R S AT T H E FO R E F R O N T O F O U R O P E R AT I O N S .
T H R O U G H A P R OACT I V E A P P R OAC H TO OC C U PAT I O N A L H E A LT H
A N D S A F E T Y ( O H S ), W E S T R I V E TO N U RT U R E A C U LT U R E O F
S A F E T Y T H AT A N T I C I PAT E S A N D M I T I GAT E S P OT E N T I A L R I S K S
W H I L E E M P OW E R I N G O U R E M P LOY E E S TO P E R FO R M AT T H E I R
B E S T.
COMPLIANCE WITH HEALTH AND SAFETY ⚫ Incident investigations to identify root causes
STANDARDS and implement corrective measures.
We are fully committed to adhering to internationally recognized ⚫ Continuous improvement initiatives to address
Occupational Health and Safety (OHS) standards, including ISO compliance gaps and adapt to emerging risks.
45001:2018 for Occupational Health and Safety Management ⚫ Hazard identification and risk assessment at the
Systems and Indonesia’s Occupational Health and Safety business unit level, with periodic reviews following
Management System (SMK3). These standards apply across all operational changes or incidents [GRI 403-2].
stakeholders—employees, contractors, and suppliers—and
encompass all business activities [GRI 403-1, 403-8]. LEVERAGING TECHNOLOGY FOR ENHANCED
SAFETY
In Kideco, OHS compliance extends beyond industry standards,
strictly following government regulations such as PP No. 26/2018, To strengthen workplace safety, we harness Industry 4.0
ensuring safety practices meet or exceed national benchmarks. technologies to enhance real-time risk management and
Indika Energy’s subsidiaries also uphold rigorous safety standards operational safety.
tailored to their operational environments:
At Kideco, we utilize the Nembayung platform, a digitalized
⚫ KALISTA integrates real-time digital monitoring, safety monitoring system designed to track and enhance overall
including fatigue detection for drivers, preventing workplace safety performance. This platform enables employees
potential incidents through AI-based alerts [GRI 403-2]. to proactively identify and report potential hazards, fostering
a culture of safety awareness and continuous improvement. By
⚫ EMITS ensures safe solar energy installations through
leveraging digital tools, Kideco ensures that safety measures are
strict engineering controls, workforce training, and
effectively monitored, managed, and optimized across operations.
adherence to environmental and safety regulations.
⚫ Indika Nature applies safe forestry and biomass Similarly, at Interport, the INSTINCT (Interport HSE Information
operations, prioritizing worker safety in plantation and Communication Technology) is used to monitor workplace
management and wood pellet production. safety performance in real time. This system provides instant
Our comprehensive approach to compliance includes: insights, allowing for quick response and proactive risk
management. By involving all elements of the company, INSTINCT
⚫ Regular internal and external audits to ensure enhances workplace safety through data-driven decision-making
safety standards are consistently met. and collaborative engagement, reinforcing a strong commitment
to a safe and secure working environment.
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132
KALISTA, Indika Energy’s electric mobility solutions provider, To support these initiatives, Indika Energy Group has established
is transforming EV fleet management with its KALISTA Digital essential safety and emergency response facilities to ensure a
Dashboard, a real-time monitoring system that enhances secure and well-prepared work environment. Our emergency
safety, efficiency, and sustainability. Leveraging Industry 4.0 response infrastructure includes rescue vehicles, specialized
technologies, the dashboard provides real-time tracking of vehicle equipment, and strategically placed first-aid stations to provide
location, battery performance, and charging status, ensuring immediate assistance during critical situations.
optimal route planning and energy efficiency. It also incorporates
predictive maintenance using AI-powered diagnostics to detect Additionally, we have on-site health clinics and first-aid rooms to
potential issues before they escalate, reducing downtime and address medical needs promptly. To enhance workplace safety
operational costs. and comfort, our facilities are equipped with compliant lighting,
temperature control, proper air circulation, noise mitigation,
Safety is a core focus, with features like driver behavior analysis, and dust control measures. Furthermore, we collaborate with
fatigue detection to prevent potential incidents [GRI 403-9], and local healthcare providers to ensure rapid medical assistance
collision prevention alerts enhancing road safety. Additionally, whenever necessary, reinforcing our commitment to employee
the dashboard tracks carbon emissions, supporting corporate well-being and workplace safety. In the event of an emergency,
sustainability commitments and regulatory compliance [GRI 305- our Crisis Management Team follows a well-defined response
5]. plan that assigns clear roles and responsibilities to ensure swift
and effective action. [GRI 403-3]
To further strengthen workplace safety, we also integrate real-
time safety applications such as HAZOB for immediate hazard
reporting, BBS for behavior-based safety monitoring, PTO for FOSTERING SAFETY AWARENESS AND SKILL
tracking safety certifications, and SHEPRO for operational risk DEVELOPMENT
management, ensuring compliance with safety standards [GRI Worker participation is essential in upholding our safety culture.
403-2]. By combining digital innovations, we reinforce our We actively engage senior managers and worker representatives
commitment to technology-driven sustainability and workplace in shaping Occupational Health and Safety (OHS) policies
safety across our operation. and procedures, ensuring they align with operational needs.
Each subsidiary has formal health and safety committees that
conduct regular inspections and gather worker feedback, driving
COMPREHENSIVE OCCUPATIONAL HEALTH AND
continuous improvements. [GRI 403-4]
SAFETY (OHS) PROGRAMS
Indika Energy Group’s Occupational Health and Safety (OHS) To strengthen workplace safety, we provide comprehensive
management system is designed to safeguard the well-being training for employees, contractors, and related parties operating
of our employees by proactively addressing workplace health within our sites, ensuring safety is effectively managed across
risks and ensuring comprehensive support at every stage of their all levels. At Kideco, for instance, a training needs assessment
professional journey. Recognizing that a strong safety culture is conducted annually to identify the required training for
extends beyond compliance, we have established a structured each employee, aligning with skill development and capacity
framework that prioritizes prevention, early intervention, and enhancement. Additionally, mandatory safety training and
recovery. Our OHS approach is built upon four essential pillars certifications are required to ensure compliance with industry
that collectively promote a healthier and safer work environment. regulations and safety standards.
[GRI 403-3]
Kideco safety training programs include activity-specific safety
1. Promotive program – Raising awareness about workplace training for tasks such as working at heights, confined space
health and general wellness through education, training, and entry, lifting and rigging, chemical handling, lock-out/tag-out
health campaigns, empowering employees to adopt safer procedures, and excavation safety. Kideco also provide general
work habits and healthier lifestyles. OHS training for all employees, contractors, and site visitors to
promote overall safety awareness. Specialized workshops, led
2. Preventive program – Conducting regular health check- by internal and external safety experts, address emerging safety
ups and screenings to identify potential health risks early, risks and challenges. To facilitate access to training, Kideco offers
reducing the likelihood of occupational illnesses and injuries. multiple formats, including public training, in-house training, and
“Ruang Kerja,” a platform where employees can access relevant
3. Curative program – Providing medical consultations,
training resources as needed.
treatments, and comprehensive injury management to
ensure employees receive prompt and effective care when Similarly, ALVA has outlined all skill and competency requirements
needed. for its employees, ensuring that safety training, including
mandatory certification programs and operational chain-specific
4. Rehabilitative program – Supporting employees in their
training, is available to meet the needs of every worker. This
recovery and reintegration into the workplace following
structured approach ensures that employees are well-equipped
accidents or illnesses, fostering a culture of long-term well-
with the necessary safety knowledge and technical skills relevant
being and resilience.
to their roles. These practices are also implemented at our other
operational sites.
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
To ensure continuous development, our training team closely HEALTH AND SAFETY PERFORMANCE IN 2024
monitors each employee’s competency progress and training Indika Energy Group remains dedicated to maintaining high
completion, ensuring that safety knowledge is updated and safety standards across its operations. In 2024, we recorded a Lost-
effectively applied in daily operations. Worker participation plays Time Injury Rate (LTIR) of 631.2 and a Total Recordable Incident
a key role in the development, implementation, and evaluation Rate (TRIR) of 0.25 for employees. For our contractors, the LTIR was
of the Occupational Health and Safety Management System 0.02, and the TRIR was 0.08. [GRI 403-9]
(OHSMS), helping to foster a safe and healthy work environment.
We actively encourage employees and their representatives to While we endeavored to ensure all systems and safeguards were
engage in consultation and communication processes related in place to keep employees safe on the job, unfortunately we did
to occupational health and safety. Employees contribute by experience the fatality of one employee at our operation at Mekko
providing input on safety policies and procedures, participating in in 2024. Mekko has taken measures to eliminate the risk of similar
incident investigations and safety audits, and supporting training incidents across its operations and ensured the family of the
and awareness initiatives to enhance workplace safety. Their deceased is taken care of. [GRI 403-9, 403-10]
involvement enhances the effectiveness of the OHSMS, helping
to identify potential hazards, reduce workplace accidents, and HEALTH
TOTAL
promote overall well-being. [GRI 403-4] AND SAFETY
PERFORMANCE
Additionally, we enforce strict internal policies to identify [GRI 403-9, 2022 2023 2024
and mitigate risks, including permit-to-work systems, safety 403-10]
targets and scorecards, OHS audits (internal and external), and
FOR EMPLOYEES
comprehensive safety investigations. These efforts reinforce
our commitment to workplace safety, ensuring continuous No. of fatality 0 0 1
improvement in risk management and hazard prevention. [GRI
403-7] No. of lost time 3 0 6,001
injuries
PROMOTING MENTAL HEALTH AND WELLNESS No. of recordable 14 2 12
[GRI 403-6] injuries
Our commitment to employee well-being extends beyond No. of high 7 0 0
workplace safety to encompass comprehensive mental and consequence injuries
physical health support. We regularly organize health and
safety talks focused on preventive care and wellness, open to No. of hours worked 58,643,037 30,603,127 9,507,340
all employees. These sessions cover a wide range of topics, from Lost Time Injury Rate 0.01 0.00 631.20
maintaining a healthy lifestyle to managing chronic illnesses,
fostering a culture of proactive health awareness. [GRI 403-6] Total Recordable 0.05 0.01 0.25
Injury Rate
To further enhance awareness, we distribute health education
materials and display informative posters across our sites. One FOR CONTRACTORS
of our flagship health programs, I Reborn, launched by Kideco, is No. of fatality 1 2 0
dedicated to combatting obesity-related diseases. This initiative
supports employees and contractors in achieving a healthy No. of lost time 6,096 12,188 1
weight and Body Mass Index (BMI) through tailored guidance and injuries
resources. [GRI 403-6]
No. of recordable 23 8 24
Similarly, at Indika Nature, regular sports competitions are injuries
organized across all operational sites. These events aim to promote No. of high 5 2 0
both physical and mental well-being, encouraging employees consequence injuries
to engage in healthy activities that not only enhance fitness but
also foster stronger mental resilience. Meanwhile, Indika Energy No. of hours worked 55,883,600 58,606,276 56,559,444
provides dedicated health support teams, offering assistance for Lost Time Injury Rate 21.82 41.59 0.02
mental health and psychological well-being when needed.
Total Recordable 0.08 0.03 0.08
Through these initiatives, we empower individuals to take Injury Rate
proactive steps toward their health while ensuring they have
access to essential medical services beyond occupational
requirements. [GRI 403-6]
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SUSTAI NABI LI TY REP O RT 2 0 2 4
SUSTAINABLE SUPPLY CHAIN
I N D I K A E N E R GY I S CO M M I T T E D TO FO S T E R I N G A S U S TA I N A B L E
S U P P LY C H A I N BY CO L L A B O R AT I N G C LO S E LY W I T H O U R
S U P P L I E R S TO P R O M OT E R E S P O N S I B L E S O U R C I N G P R ACT I C E S ,
E N S U R I N G T H AT O U R VA LU E C H A I N I S T R A N S PA R E N T A N D
A L I G N E D W I T H E N V I R O N M E N TA L , S OC I A L , A N D E T H I CA L
S TA N DA R D S . [ G R I 308-1, 308-2, 414-1, 414-2]
We actively work with suppliers to reduce environmental impact, enhance energy and resource efficiency,
and uphold fair and safe labor practices throughout all stages of procurement and operations. As part
of our broader sustainability strategy, we also support suppliers in adopting greener technologies and
low-carbon innovations. [GRI 308-1, 308-2]
Aligned with our human rights commitment, we uphold a zero-tolerance policy toward all forms of
modern slavery and labor exploitation. This includes conducting regular assessments and audits, and
requiring compliance with ethical labor standards and codes of conduct. [GRI 414-1, 414-2]
Through these integrated efforts, we aim to build a resilient, inclusive, and future-ready supply
chain that not only meets compliance requirements but also generates positive impact for people,
communities, and the planet.
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136
Strengthening Human Rights Practices: Our
Commitment to Safe and Inclusive Operations
At Indika Energy Group, we believe in creating a work environment ⚫ Kideco HRDD (Human Rights Due Diligence) training
where respect for human rights is fundamental to our success and for PIC HAM and partners: Employees in charge of
sustainability. As we continue to grow and evolve, we are updating human rights management at Kideco have been given
and enhancing our human rights practices across all subsidiaries. Human Rights Due Diligence (HRDD) training with the
This comprehensive approach ensures that our operations not aim of enhancing their understanding of human rights
only comply with international human rights standards but also risks and responsibilities. Our goal is to ensure that all
contribute to the wellbeing of our employees, communities, relevant parties are equipped with the knowledge and
and stakeholders. We are taking initiatives and programs to tools to prevent and address human rights violations,
strengthen our human rights policies and practices, these include: both within Kideco and in partnership operations.
⚫ Kideco human rights training for employees and
⚫ Indika Energy Human Rights Policy update: We are
partners with GRI: Employees and partners at Kideco
currently updating our Human Rights Policy to ensure
have undergone comprehensive human rights training
that it is aligned with international standards and best
in collaboration with the Global Reporting Initiative
practices. This update includes new commitments to
(GRI). This training covers the essential human rights
prevent human rights violations, address risks, and
principles and practices that ensure all stakeholders
ensure fairness in all aspects of the company’s operations.
are aligned with international standards and best
⚫ Kideco promotes Human Rights Policy to employees: practices, fostering a culture of respect for human rights
Kideco has rolled out efforts to raise awareness among throughout the organization and among partners.
employees about its Human Rights Policy. This aims
⚫ Kideco SOP for VPSHR (Voluntary Principles on Security
to ensure employees are well-informed about their
and Human Rights) for security management systems:
rights and responsibilities within the company and
Kideco is developing an SOP for VPSHR, which will
reinforces the company’s commitment to safeguarding
guide the company’s security management systems.
human rights across all operations, promoting an
This SOP ensures that all security-related practices
environment of awareness and accountability.
at Kideco are in line with human rights principles,
⚫ Kideco SOP for prevention and handling of sexual maintaining the protection of employees, contractors,
violence: Kideco is also in the process of developing a and local communities while mitigating potential
Standard Operating Procedure (SOP) for the prevention human rights risks associated with security operations.
and handling of sexual violence. This SOP will provide
⚫ Kideco VPSHR training materials for security guards
clear guidelines for reporting, investigating, and
and non-security personnel: Kideco is preparing
addressing incidents of sexual violence, ensuring
training materials on the Voluntary Principles on
the company has structured processes in place to
Security and Human Rights (VPSHR) for security
handle such cases effectively and sensitively.
guards, security officers (Pamobvitnas), and non-
security personnel. These training materials will
equip all personnel with a clear understanding of the
importance of human rights in security operations,
ensuring that respect for human rights is maintained in
every aspect of the company’s security management.
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
HUMAN RIGHTS
AND GRIEVANCE MECHANISM
Indika Energy is steadfast in upholding human rights across our employees can be submitted directly to the supervisor, who
operations and within our sphere of influence. We prioritize will then pursue a solution. If the complaint cannot be resolved
human dignity, fair labor practices, and safe working conditions. structurally, the employee has the right to submit it to the union
We strictly prohibit all forms of modern slavery, including to be resolved in a bipartite manner. If the complaint still cannot
child labor, forced labor, and any form of exploitative working be resolved this way, it will be resolved in a tripartite manner with
conditions. Within our operations, we adhere to international reference to the prevailing employment Laws and regulations [GRI
standards such as the ILO Declaration on Fundamental Principles 2-25, 2-26]. These processes also involve input from stakeholders,
and Rights at Work, the UN Universal Declaration of Human including employee representatives, in designing and proposing
Rights, and the 10 UN Global Compact Principles. We strive to improvements to these mechanisms. [GRI 2-25, 2-26, 411-1, 412-1]
create a positive and responsible impact in every aspect of our
business. [GRI 2-23, 2-24, 2-25]
COLLECTIVE BARGAINING AGREEMENTS
This commitment is outlined in our Human Rights Policy, Indika Energy is committed to upholding employees’ right to
which applies to all Indika Energy employees, Directors, and organize, fostering a workplace culture where diverse perspectives
management, as well as third parties under Indika Energy’s direct are valued and effectively communicated. Our employees have
supervision, working for Indika Energy and its subsidiaries. We the opportunity to form labor unions as formal communication
strive to create a positive and responsible impact in every aspect channels with management. At Kideco, several labor unions
of our business. actively represent employees’ interests, including Serikat Pekerja
Pertambangan Batubara – Serikat Pekerja Seluruh Indonesia
Beyond mere compliance, we aim to foster a culture of respect and (SPPB-FSPSI), Federasi Pertambangan dan Energi – Konfederasi
accountability at every level of our organization. Through training, Serikat Buruh Sejahtera Indonesia (FPE-KSBSI), Serikat Pekerja
awareness initiatives, and collaborating with our partners and Batubara (SPBARA) and Serikat Independent – Serikat Pekerja
suppliers, we ensure that human rights principles are consistently Paser (SI-SPP).These unions play a crucial role in voicing concerns,
upheld, contributing promoting sustainable and inclusive growth negotiating fair working conditions, and ensuring employees’
for all stakeholders. [GRI 412-2] rights and well-being are prioritized.
Our subsidiary Interport also has established LKS Bipartite, a
WHISTLEBLOWING SYSTEM
structured forum that facilitates communication and engagement
Our whistleblowing system offers a formal grievance mechanism between employees and management, to share their aspirations,
to address any concerns from all stakeholders, including address workplace issues, and contribute to the company’s
employees and external parties. It is accessible via mail, email, sustainable growth.
fax, telephone, and a dedicated website 24/7 in both Indonesian
and English to ensure greater accessibility. We also welcome In 2024, we reported the number of employees covered by
inputs from other channels and avenues outside the formal collective bargaining agreements, with approximately 46.77%
grievance mechanism, including legacy media, social media, and of Kideco employees included. For those not covered by
other platforms. We treat these inputs with the same high level collective bargaining agreements, we ensure that their working
of professionalism and make every effort to resolve issues that are conditions and employment terms are established through fair
brought to our attention. [GRI 2-25, 2-26] and transparent practices. This approach includes aligning with
industry standards and complying with relevant labor regulations
to promote equitable treatment across all subsidiaries, ensuring a
GRIEVANCES
consistent and just workplace environment. [GRI 2-30, 407-1]
Indika Energy has established a policy related to handling
employee complaints, stipulated in CLA Chapter VII Industrial
Relations Article 133 on Employee Complaints and Article 134
on the Settlement of Employee Complaints. Complaints from
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Melas Hutan” is more than just a tradition—it is a form of respect for ancestral heritage, a celebration of local culture, and a reflection of shared values and well-being. In line with this spirit, Indika Nature, a part of Indika Energy, collaborates with local communities to develop agroforestry initiatives.
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SUSTAI NABI LI TY REP O RT 2 0 2 4
RESPECTING INDIGENOUS HERITAGE
AND SUSTAINABILITY
I N D I K A E N E R GY I S CO M M I T T E D TO R E S P E CT I N G A N D
UPHOLDING THE RIGHTS OF INDIGENOUS PEOPLES IN
AC CO R D A N C E W I T H I N T E R N AT I O N A L S TA N DA R D S , I N C LU D I N G
T H E U N I T E D N AT I O N S D E C L A R AT I O N O N T H E R I G H T S O F
I N D I G E N O U S P E O P L E S ( U N D R I P ) A N D I LO CO N V E N T I O N 169. W E
R E COG N I Z E I N D I G E N O U S CO M M U N I T I E S A S K E Y S TA K E H O L D E R S
A N D S T R I V E TO B U I L D R E S P E CT F U L , T R A N S PA R E N T, A N D
M U T U A L LY B E N E F I C I A L R E L AT I O N S H I P S T H AT S A F E G U A R D
T H E I R C U LT U R A L H E R I TAG E A N D S OC I O - E CO N O M I C W E L L -
B E I N G . [ G R I 411-1]
We acknowledge the significance of free, prior, and informed In 2024, we are pleased to report that no violations of Indigenous
consent (FPIC) in business activities that may impact Indigenous rights were recorded within our operational areas. However,
communities. Our engagement strategy prioritizes early we recognize the ongoing challenges in achieving equitable
identification and inclusive dialogue, ensuring Indigenous voices participation and addressing historical disparities. Moving
are actively heard and considered in decision-making processes. forward, we aim to enhance our efforts by developing Indigenous
[GRI 413-1] resilience programs and strengthening ethical, inclusive, and
sustainable partnerships with Indigenous Peoples. Ensuring
As part of this commitment, our subsidiary Kideco conducted that their rights, culture, and aspirations remain central to our
a Screening Study on Indigenous Paser Communities within its sustainability journey remains a core priority for Indika Energy.
operational area to gain a deeper understanding of their presence, [GRI 411-1, GRI 413-1]
distribution, and cultural systems. This study, conducted in
collaboration with Mulawarman University’s ULS-PPID, covered 19 Last year, Kideco implemented 155 Corporate Social Responsibility
villages across seven sub-districts in Paser Regency. Aligning with (CSR) programs across the six Indigenous villages, benefiting a
Law No. 5 of 2017 on Cultural Advancement, the study examined total of 9,204 individuals. These initiatives focused on various areas
ten key cultural aspects, including oral traditions, customs, of community development, with 3,567 beneficiaries in education,
traditional knowledge, and arts. [GRI 411-1, GRI 413-1] 941 beneficiaries in health, and 109 beneficiaries in economic
empowerment. Additionally, 4,587 individuals benefited from
Through participant observation and qualitative interviews, the philanthropic programs, further supporting community well-
study engaged government officials, Indigenous leaders, cultural being and social resilience. [GRI 413-1]
figures, and local community members. It also applied the UN’s
seven criteria for Indigenous identification, such as historical Aligned with the Kideco Climate Strategy, all six Indigenous
continuity, strong territorial ties, distinct cultural identity, and Paser villages have now been designated ProKlim villages under
non-dominant status. The findings identified six villages with Indonesia’s national climate resilience program. This initiative
a significant Indigenous Paser presence (75% or more)—Muser, equips communities with the knowledge and skills to strengthen
Biu, Rantau Bintungan, Legai, Kasungai, and Samurangau— their resilience against climate change, fostering a more
while Muara Adang and Muara Telake had minimal Indigenous sustainable and adaptive future. [GRI 413-2]
representation (10%). [GRI 411-1]
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SUSTAI NABI LI TY REP O RT 2 0 2 4
ENERGIZING INDONESIA
AT I N D I K A E N E R GY G R O U P, W E B E L I E V E I N P OW E R I N G L I V E S
T H R O U G H S U S TA I N A B L E E N E R GY S O LU T I O N S T H AT D R I V E
G R OW T H A N D D E V E LO P M E N T. O U R F L AG S H I P P R OG R A M S
R E F L E CT O U R U N WAV E R I N G CO M M I T M E N T TO C R E AT I N G
M E A N I N G F U L , L A S T I N G C H A N G E . G U I D E D BY O U R CO R E
VA LU E S , W E I N T E G R AT E S U S TA I N A B I L I T Y I N TO O U R S T R AT E G I C
D E C I S I O N - M A K I N G P R OC E S S E S , A D D R E S S I N G K E Y C H A L L E N G E S ,
D E L I V E R I N G M E A S U R A B L E O U TCO M E S , A N D L AY I N G A S T R O N G
FO U N D AT I O N FO R LO N G -T E R M S U C C E S S .
Our engagement with communities goes beyond business Managing social impact is a core part of our commitment
operations — it is about making a tangible difference in the lives to sustainability and responsible business practices. We
of those we serve. We prioritize initiatives that enhance education, proactively assess the potential impacts of our operations on
health care, and community development in the regions where local communities, ensuring that both the positive and negative
we operate. By acting as a catalyst for positive transformation, we effects are carefully considered. Through ongoing stakeholder
strive to amplify the benefits that our initiatives bring, fostering engagement and social risk assessments, we develop strategies
sustainable growth at every level. [GRI 413-1] to mitigate adverse impacts while enhancing the benefits. [GRI
413-2]
Sustainable development for us is more than delivering energy;
it is about nurturing resilience, creating opportunities, and These efforts align with our broader sustainability goals, aiming
improving the overall well-being of the communities we touch. to improve livelihoods, support local development, and promote
By aligning our operations with the aspirations and needs of the long-term community prosperity. We also prioritize building
people we serve, we ensure that our growth is intertwined with partnerships that empower communities, ensuring that the
theirs, creating a ripple effect of shared prosperity and social benefits of our operations are shared and contribute to their
impact. [GRI 203-1, 413-1] overall well-being. [GRI 203-2, 413-1]
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Indika Energy and Kideco: CANTING (Cegah dan
Tangani Stunting) Berkelanjutan
Stunting remains a pressing public health issue in Indonesia, ⚫ Upskilling Posyandu Cadres: Local health
affecting children’s physical growth, cognitive development, and volunteers are equipped with enhanced skills to
overall health. Although the national stunting rate has declined, deliver accurate nutritional advice, monitor child
regions like Paser in East Kalimantan have seen troubling increases growth, and provide essential health services.
in cases, highlighting the need for targeted interventions. ⚫ Improved food and health infrastructure:
Nutritional supplements and fortified foods are
To address this challenge, the Indonesian government has set
distributed to vulnerable groups, such as pregnant
a bold target to reduce stunting prevalence to 14% by 2024, a
women, nursing mothers, and young children.
commitment echoed by Indika Energy and Kideco through the
Additionally, health facilities are upgraded with
CANTING Berkelanjutan program. This comprehensive initiative
medical equipment and trained professionals to
aligns with national priorities and tackles stunting at its roots by
better support maternal and child health.
combining expert-led strategies with community-driven efforts.
⚫ Community engagement through education:
“Realizing a sustainable Indonesia requires a healthy and The program empowers communities through
intelligent future generation. So that in addition to education initiatives like Kelas SIAGA, which educates
and welfare, health is very important. This health aspect is what families on nutrition, and pocket guides offering
we are trying to focus on through this program considering the practical advice to parents and caregivers.
prevalence of stunting which is still fluctuating,” Retina Rosabai, ⚫ Doctor goes to community
Director and Chief Financial Officer Indika Energy Group. Pediatricians and obstetricians visit communities to
offer critical healthcare services, ensuring pregnant
Through the multi-faceted approach to combat stunting, the
women and children receive specialized attention.
CANTING Berkelanjutan program deploys targeted initiatives to
address malnutrition and strengthen community health systems:
P T I N D I K A E N E R GY T B K .
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“Shaping a high-quality, stunting-free generation is a strategic Beyond Paser, Indika Energy’s subsidiaries, including Masmindo,
factor in ensuring future sustainability. Kideco, together with Interport, and Tripatra, have also implemented stunting
Indika Energy, supports the National Priority Program for stunting prevention initiatives tailored to their respective operational
prevention and treatment as a fundamental step in preparing areas. These efforts reflect the company’s broader commitment to
a healthy, resilient generation ready to become future leaders,” public health and community well-being across Indonesia.
Kurnia Ariawan, President Director of Kideco Jaya Agung.
By addressing the root causes of stunting, CANTING Berkelanjutan
The CANTING Berkelanjutan program is making significant not only improves health and nutrition but also fosters sustainable
strides in combating stunting in Paser, with a clear target of development and social equity. This initiative embodies Indika
reducing prevalence across 14 villages to 14% by 2024. As of Energy’s vision of creating lasting, meaningful change in the
now, stunting rates have already dropped to 8.82%, marking communities it serves, empowering every child to reach their full
a substantial improvement. The program has trained over 300 potential.
health volunteers, educated 600+ community members through
Kelas SIAGA, and provided direct support to 150+ young children,
ensuring a stronger foundation for their growth and development.
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Masmindo: Strengthening Food Security in Luwu
Regency
The Luwu Regency Food Security Program is a strategic policy To strengthen food security, Masmindo is actively addressing these
initiated by the local government to ensure the availability of challenges through sustainable agricultural and aquaculture
sufficient, high-quality, and affordable food for the community. initiatives that empower local farmers and communities. Key
Known as one of South Sulawesi Province’s food baskets, Luwu programs include:
contributes approximately 11% (528 kilo tons) of the region’s total
rice production, according to South Sulawesi Statistics Agency ⚫ Rice Demonstration Plots: Masmindo supports
data from 2023. rice production, strengthens farmer groups,
and provides agricultural input assistance in the
Luwu also stands out nationally for its food security, ranking 180th villages of Senga, Senga Selatan, Tampumia Rada,
among all regencies and cities in Indonesia with a Food Security Balo Balo, Kurusumanga, and Kadundung.
Index score of 82.23. According to the Indonesian Food Security ⚫ Horticulture Demonstration Plots: Masmindo has
Analysis Report by the Ministry of Agriculture, this score reflects introduced high-value crops in Boneposi and Ranteballa
strong resilience in food production and supply. villages, including red beans, taro, chilies, long beans,
tomatoes, sweet corn, pumpkins, melons, and spinach.
The regency’s diverse agroclimatic range, encompassing coastal
areas, lowlands, and high mountains, supports the cultivation ⚫ Pineapple Cultivation: Honey pineapples
of various food commodities, from staple crops to horticulture and Sunpride pineapples are cultivated
and aquaculture products. However, key challenges persist such in Sampeang and Saronda villages.
as most agricultural products are sold as raw materials, with ⚫ Aquaculture: Catfish farming has been
limited post-harvest processing or value-added activities, thereby introduced in Sampeang village, enhancing
restricting the income potential of farmers. Farmers often rely on food diversity and income opportunities.
ijon practices, where middlemen pay in advance for crops at prices ⚫ Coffee Demonstration Plots: In Boneposi and
below market value. Tolajuk, Masmindo is promoting high-quality
coffee varieties such as Komasti, Gayo 1 and 2, and
Luwu’s agriculture and fisheries sectors are rich in diverse
Sigarar Rutang (Arabica). Training programs on
commodities, contributing significantly to the region’s economy.
coffee pruning and cultivation techniques further
Plantation crops include durian, cocoa, coffee, pepper, cloves,
support farmers in improving yields and quality.
nutmeg, bananas, mangoes, and patchouli, while staple crops
such as corn, rice, sago, and root vegetables form the backbone Through these targeted initiatives, Masmindo is not only
of local food production. The horticulture sector thrives with a strengthening food security in Luwu Regency but also fostering
variety of vegetables like chili, spinach, cabbage, and tomatoes, sustainable livelihoods, empowering communities, and
alongside fruits such as melons and watermelons. Additionally, addressing systemic agricultural challenges. These efforts align
livestock farming supports the production of cattle, goats, and with our broader commitment to achieving social impact through
poultry, while fisheries along the Bone Bay coastline provide a innovative and community-driven approaches.
steady supply of fish, shrimp, and seaweed, reinforcing Luwu’s role
as a key agricultural and maritime hub.
P T I N D I K A E N E R GY T B K .
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Kideco: Integrated Farming System
Kideco has developed the Integrated Farming System (IFS), an innovative agricultural program that integrates livestock-based farming
activities as demonstration plots in the region. The IFS model utilizes eco-friendly production technologies and aims to combine various
agricultural elements to meet sectoral needs, creating a symbiotic relationship where all components work together harmoniously.
The IFS program has successfully implemented the “reduce, reuse, recycle” (3R) movement, achieving zero waste by utilizing both
liquid and solid waste from livestock. These by-products are used to produce bio-urine, biogas, and organic fertilizers, which are then
used for plant propagation in reclamation and hydroseeding on waste dump sites. The integrated IFS approach aims to improve the
competitiveness of local farmers in managing agricultural resources effectively.
Furthermore, the IFS program has been developed into a Green Edu Eco Agro Tourism area, offering visitors an educational and recreational
experience. Kideco remains committed to fostering sustainable self-reliance through creative economic programs, collaborating with
local small and medium enterprises (SMEs) in Paser Regency. In the second quarter of 2024, Kideco organized a branding workshop for
SMEs in collaboration with the Paser Regency Food Security Agency.
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Indika Nature: Sustainable Patchouli Farming for
Community and Environmental Prosperity
Indika Nature is adopting a sustainable approach to agriculture, we remained committed to regenerative agricultural practices—
balancing environmental responsibility with community separating healthy seedlings, adjusting plant spacing to reduce
development. Our patchouli farming initiative is not only helping humidity, and developing a natural bio fungicide to combat
to restore degraded lands through regenerative agriculture but bacterial and fungal infections. This organic approach not only
also impacting local livelihoods by supporting farmers in the protects soil health and water quality but also ensures long-term
production of high-quality patchouli oil—a prized commodity in productivity, helping farmers establish a sustainable income
the global fragrance and essential oils industry. source while preserving the environment.
Patchouli (Pogostemon cablin) is a key ingredient in perfume,
cosmetics, and aromatherapy, valued for its earthy, woody EXPANDING IMPACT: COMMUNITY
scent and long-lasting fragrance. Indonesia is one of the largest COLLABORATION IN PEMALANG, CENTRAL JAVA
producers of patchouli oil globally, supplying nearly 90% of the Beyond Kalimantan, Indika Nature has extended its community-
world’s demand. However, despite this dominance, Indonesian driven initiative to Pemalang, Central Java, collaborating with
patchouli farmers face challenges such as low productivity, local farmers to cultivate patchouli using best agricultural
inconsistent quality, and fluctuating prices, limiting their ability practices. Through field training and hands-on guidance, we equip
to compete in premium markets. This is where Indika Nature’s farmers with the skills needed to maximize yield, enhance oil
intervention plays a crucial role - empowering farmers with quality, and strengthen market competitiveness. By incorporating
knowledge, best practices, and access to sustainable markets to these sustainable practices into daily farming routines, farmers
enhance their competitiveness. can produce high-quality patchouli oil that meets global industry
standards, increasing both market access and earning potential.
One of the major challenges encountered in our patchouli farming
efforts was bacterial infections in seedlings, which were expected At Indika Nature, we believe economic growth and environmental
to come from superior mother plants but arrived infected with preservation can go hand in hand. Our patchouli farming
Ralstonia solanacearum and Erwinia caratovora. These infections program demonstrates how regenerative agriculture can restore
caused wilting, root rot, and leaf yellowing, putting the entire ecosystems, enhance biodiversity, and uplift communities. By
crop at risk. Additionally, the plants were affected by fungal embracing sustainable farming practices, we are cultivating
infections (Synchytrium pogostemonis), further threatening their not just crops, but a future where both people and nature thrive
growth. Instead of relying on chemical fungicides or pesticides, together.
P T I N D I K A E N E R GY T B K .
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Kideco’s DREAMS Program: Promoting Inclusivity
and Educational Opportunities for Children with
Disabilities in Paser
At Kideco, we believe in the power of inclusivity and the transformative impact of education. As part of our commitment to corporate social
responsibility and the national principle of Unity in Diversity, we launched the DREAMS program to ensure children with disabilities in
Paser Regency have equal access to education as their peers. By addressing systemic barriers and fostering understanding, the DREAMS
program aims to create a more equitable and inclusive educational environment.
In 2021, data from the Paser Central Statistics Agency (BPS) revealed that out of 102 children with disabilities in Paser Regency, 57 were
not enrolled in school. Of the remainder, about two-thirds were enrolled in special-needs schools (SLB) and the rest in regular schools,
demonstrating that challenges persist in ensuring equitable access to education.
Among the identified barriers to access are limited teacher training and societal misconceptions about the potential of children with
disabilities, preventing many from receiving the education that they deserve. The DREAMS program was designed to address these
challenges by equipping educators, transforming perceptions, and fostering inclusive learning environments that empower every child
to thrive.
Since its launch in June 2024, the DREAMS program has made measurable progress in supporting 50 children with disabilities,
including those with ADHD, cerebral palsy, autism, and hearing impairments. Key initiatives include sign language training for teachers,
distribution of sensory kits to enhance the learning experience for children with various disabilities, teacher capacity building, and
community engagement to shift societal perceptions.
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Tripatra: Engineering for
Teenagers
In an era of globalization and technological advancement, the
role of engineers has become increasingly important for national
development, particularly in the construction of infrastructure
and systems that support everyday life. However, the number of
engineers in Indonesia remains relatively low.
According to data from the Ministry of Education, Culture,
Research, and Technology, cited by Kompas.com, Indonesia has
only 2,671 engineers per 1 million people. This figure is significantly
behind neighbouring countries like Vietnam (9,000 engineers per
1 million people) and South Korea (25,000 engineers per 1 million Kideco: Education
people).
Programs
This shortage presents challenges for national development
across various sectors, including infrastructure, energy, and Kideco continues to run its flagship Kideco Gemilang Scholarship
manufacturing. To address this issue, it is crucial to raise Program, with a notable innovation in 2024: the program now
awareness and spark interest in engineering. One such initiative is selects scholarship recipients once a year, benefiting a total
the Engineering for Teenagers program. of 10 students. Kideco also carries out regular monitoring and
evaluation, directly visiting scholarship recipients to assess their
Supported by Tripatra’s expertise and in collaboration with the progress.
Indika Foundation, this program introduces teenagers to the field
of engineering and renewable energy. In addition, Kideco’s educational initiatives include the out-of-
school programs run by the Kideco Bina Bersama Foundation.
The program targets approximately 70 junior high school students These programs encompass the Jaya Taka Kindergarten,
(or the equivalent) from the Greater Jakarta area, offering them a Ibadurrahman TPA (Islamic Education Center), and Computer and
closer look at the world of engineering and renewable energy English language courses.
while providing inspiration from professional engineers.
Kideco also supports literacy programs, including the Mobile
The event features a talk show session with engineers from Library initiative, which serves 73 schools. Additionally, in June
Tripatra, including Femi Grecia (Electrical Engineer), Rafi M. Dzakir 2024, Kideco launched the DREAMS Program (Disability Program
(PPM Engineer), and Nadya Ayu (Geotechnical Engineer) from the – Kideco Cares for Difabled Communities) and the ISDP (Inclusive
Forum of Women Engineers – Indonesian Engineers Association School Development Program), which were inaugurated by
(FPI-PII). The speakers shared their experiences and insights Kideco’s Commissioner, Azis Armand, and President Director, M.
about various engineering disciplines, career opportunities in Kurnia Ariawan.
engineering, and the important role of engineers in creating
innovative solutions to face future challenges. In the third quarter of 2024, Kideco organized teacher training
in two districts: Kuaro and Batu Sopang. The Literacy Program in
As a grand finale, the participants were invited to take part in a the third quarter also partnered with PGRI Batu Sopang to hold a
simple experiment in renewable energy, specifically Solar Drip Literacy Week event across three districts.
Irrigation. This experiment aimed to serve as an introduction to
the renewable energy industry while nurturing the participants’ Furthermore, in August 2024, Kideco distributed educational
creativity. funds to vulnerable communities in the mining area and provided
class promotion rewards to 2,125 students in the company’s
operational regions.
P T I N D I K A E N E R GY T B K .
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Indika Foundation: SabangMerauke Student
Exchange Program 2024
The Indika Foundation, the philanthropic arm of Indika Energy The foundation also organizes leadership workshops and personal
Group, continues to reaffirm its commitment to fostering unity development training sessions for the participating students.
and inclusivity through education and cultural programs. One of These activities are designed to equip participants with the skills
its flagship initiatives is its partnership with the SabangMerauke and confidence needed to become future leaders who champion
Student Exchange Program, an innovative effort to celebrate and inclusivity and unity in their respective communities.
strengthen Indonesia’s diversity. In 2024, the program made an
even greater impact, bringing together students from different Several key objectives include:
corners of the archipelago to learn, connect, and grow.
⚫ Promoting cultural understanding: By immersing
The SabangMerauke Student Exchange Program is a unique students in new cultural environments, the program
platform that provides Indonesian youth with the opportunity helps them appreciate Indonesia’s diversity
to engage in cross-cultural exchanges. Inspired by the vast while fostering mutual respect and empathy.
geographical and cultural diversity of Indonesia, the program ⚫ Building tolerance and unity: The program
brings together students from Sabang at Indonesia’s westernmost emphasizes the importance of tolerance and harmony
tip to Merauke at the easternmost end — symbolizing the unity in a diverse society, encouraging participants to
of a nation that spans thousands of islands. Through cultural embrace differences and find common ground.
immersion, shared learning experiences, and community ⚫ Empowering future leaders: Through training and
involvement, the program fosters mutual respect, tolerance, and mentoring, the program prepares young Indonesians to
a deeper understanding of Indonesia’s rich heritage. become advocates for inclusivity and social harmony.
Indika Foundation plays a critical role in ensuring its success. The Since its inception, the program has created a ripple effect
foundation provides essential funding and logistical support, of positive change. Alumni of the SabangMerauke Program
enabling the program to reach more students and communities often return to their communities inspired and equipped to
each year. Beyond financial contributions, Indika Foundation promote initiatives that strengthen local social cohesion. The
actively collaborates with local governments, educational SabangMerauke Program aligns with the Indika Foundation’s
institutions, and community leaders to enhance the program’s mission to create a more inclusive and harmonious society. It also
effectiveness. contributes to Indonesia’s efforts to achieve the United Nations
Sustainable Development Goals (SDGs), by fostering social
harmony and reducing cultural divides.
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Interport: Karingau
Waste Bank
Waste management remains a significant challenge in
Balikpapan, East Kalimantan, where the city generates 420 tons
of waste daily, 70% of which comes from household sources.
In response, Interport has supported the local community in
Karingau by establishing the Salok Baru Sehat Waste Bank facility.
Through this Waste Bank initiative, Interport is not only helping
the community manage waste but also providing a new source
of income from the sale of organic waste. To date, the Salok Baru
Kideco: TPA Bestari Sehat Waste Bank has sold 2,159 kg of domestic organic waste.
Waste Site In addition to establishing the Waste Bank, Interport has provided
educational support to residents on how to manage household
waste through the separation of organic and non-organic waste
The TPA Bestari waste site is grounded in the 3R system (Reduce,
and converting them into compost.
Reuse, Recycle), ensuring that no waste is considered useless,
achieving a Zero Waste standard. The facility aligns perfectly Interport has partnered with PT Balikpapan Environmental
with Kideco’s broader sustainability framework, which focuses on Services (BES), PT Pembangkitan Jawa Bali (PJB) UBJOM Teluk
environmental stewardship, social responsibility, and long-term Kaltim, and APICAL GROUP to collaborate with the Salok Baru
community development. By addressing waste management Waste Bank in hosting training sessions on waste separation and
challenges, TPA Bestari supports several UN Sustainable compost production. The event, held at SMP Negeri 21 Balikpapan
Development Goals (SDGs). Barat, was attended by 30 community representatives from three
neighbourhoods in Karingau.
Beyond its environmental impact, TPA Bestari serves as a center
for community empowerment. The facility provides employment With this training, residents no longer have to worry about where
opportunities for local residents in activities such as waste sorting, to dispose of their household waste. Instead, they can utilize their
compost production, and recycling. Additionally, Kideco organizes waste by turning it into eco-enzyme or compost. Following the
regular training programs to educate the community on effective training, Interport, along with the three partnering companies,
waste management practices, emphasizing the importance of continued their collaboration by providing participants with tools
reducing, reusing, and recycling. to produce compost, including a 200-liter composting facility.
One key initiative at TPA Bestari is the development of organic
compost from biodegradable waste. This compost is distributed
to local farmers, boosting agricultural productivity and promoting
sustainable farming practices in Desa Songka. Not only does the
project help reduce waste, but it also creates economic value for
the local community.
Moreover, Kideco provides opportunities for local communities
to participate in sustainable environmental management around
the mining area, in accordance with local wisdom. This includes
involving farmer communities in the procurement of organic
compost, using livestock waste for agricultural purposes such as
compost, biogas, and more. Kideco has also built a Biodigester
facility to convert cattle waste into renewable energy in the form
of biogas, contributing to a reduction in emissions and benefiting
the environment.
Kideco further engages the community in environmental
initiatives by supporting the establishment of “Sekolah Adiwiyata
Satya Mandiri,” an environmental education program. Kideco’s
contribution to the Adiwiyata School initiative is demonstrated
by the success of Kideco’s partner schools, which have been
recognized as National Adiwiyata Schools.
P T I N D I K A E N E R GY T B K .
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Indika Nature operates a licensed plantation in East Kalimantan, with 10,000 hectares for Calliandra and the rest for wood pellet production.
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CHAPTER 6
GOVERNANCE:
ENSURING INTEGRITY
AND ACCOUNTABILITY
SDG
2-9, 2-10, 2-11, 2-12, 2-13, 2-14, 2-15, 2-16, 2-17, 2-18, 2-19, 2-2 0 , 2 - 2 2 ,
GRI
2-23, 2-24, 2-25, 2-26, 2-27, 2-28, 205-1, 205-2, 205-3, 3-3
P OJ K D .1. A
G LO B A L C O M PA CT P R I N C I P L E 1, P R I N C I P L E 2, P R I N C I P L E 10
WEF SCM GOV E R N A N C E A N D P R O S P E R I T Y P I L L A R S
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CORPORATE GOVERNANCE:
UPHOLDING INTEGRITY
AND TRANSPARENCY
I N D I K A E N E R GY G R O U P ’ S CO M M I T M E N T TO S T R O N G C O R P O R AT E
GOV E R N A N C E I S FO U N DAT I O N A L TO E N S U R I N G E T H I CA L
D E C I S I O N - M A K I N G , T R A N S PA R E N CY, A N D AC CO U N TA B I L I T Y
T H R O U G H O U T O U R O R GA N I Z AT I O N . T H I S I S R E F L E CT E D I N
O U R R O B U S T GOV E R N A N C E S T R U CT U R E S , R I S K M A N AG E M E N T
P R OC E S S E S , A N D A C U LT U R E R OOT E D I N I N T E G R I T Y, A L I G N E D
W I T H G LO B A L B E S T P R ACT I C E S A N D R E G U L ATO R Y S TA N DA R D S .
[ G R I 2-9]
We aim to create long-term value creation for all stakeholders guided by a strict set of policies, including the Board Charter, Audit,
through governance practices that prioritize sustainable practices. Risk and Compliance Committee Charter, Project and Investment
Our success is measured not only by our ESG management Charter, Nomination and Remuneration Committee Charter, and
effectiveness, but also by the positive impact we have on the Sustainability Committee Charter. [GRI 2-11]
broader community. [GRI 2-22]
GENERAL MEETING OF SHAREHOLDERS (GMS)
As a leading diversified investment company in Indonesia, we
play a critical role in addressing pressing national challenges The GMS is the highest decision-making body at Indika Energy
through collective progress, grounded in ethics, legal compliance, Group. It determines the company’s governance structure by
and transparency. With a portfolio spanning renewable energy, appointing members to the Board of Commissioners, Board of
nature-based solutions, electric vehicles, logistics, infrastructure, Directors, and various supporting committees. [GRI 2-10]
minerals, and digital technology, we are committed to supporting
In 2024, the Annual General Meeting of Shareholders was held on
a sustainable Indonesia. [GRI 2-1]
May 6, and served as a forum to pass resolutions and gain approval
Our senior leadership, including the Board of Directors and Board for matters related to the company’s business and operations. In
of Commissioners, is accountable for driving ESG performance, the structure of the corporate governance body consists of two
integrating it into every aspect of our operations. Our ESG strategy levels: the Board of Commissioners as the Supervisory Board, and
is updated quarterly and reviewed annually by the Board of the Board of Directors as the Executive Board. Both Boards also
Commissioners, ensuring transparent reporting and alignment hold responsibility for making decisions on sustainability topics
with the company’s objectives. Key governance policies, such as that cover economic, environmental, social, and governance, and
the Board Charter and Sustainability Committee Charter, form for reviewing and approving all sustainability reporting materials.
the foundation of our corporate operations, ensuring strong [GRI 2-14]
governance at all levels. [GRI 2-14]
BOARD OF COMMISSIONERS
ROLE AND RESPONSIBILITIES [GRI 2-12] The Board of Commissioners oversees the company’s policies and
Each governance body operates with clearly defined roles management, as carried out by the Board of Directors. It ensures
and responsibilities, exercising its authority independently that both the company and its business are managed properly
in accordance with the Company Law and other prevailing and provides advice to the Board of Directors in carrying out their
regulations. Indika Energy’s corporate governance framework is duties. The Board of Commissioners works independently to
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ensure good corporate governance and reports to the GMS on its DELEGATION OF ROLES [GRI 2-13]
oversight duties. [GRI 2-19] The Board of Commissioners assigns specific supervisory
responsibilities to its members based on their expertise and
As part of its commitment to effective oversight and governance
experience. Each member’s focus aligns with their role as chair
integrity, Indika Energy enforces strict eligibility and compliance
or vice chair of the various committees that support the board’s
criteria for its Board members. Both directors and commissioners
duties and oversight functions.
must meet requirements before being nominated and appointed.
For Independent Commissioners, these criterias include ⚫ Audit, Risk, and Compliance - Eko Putro Sandjojo
restriction on employment, share ownership, affiliations, and
⚫ Project and Investment - Farid Harianto and Eko Putro
business relationships with the company that could compromise
Sandjojo
their independence. Beyond formal requirements, all Board of
Commissioners are expected to demonstrate strong leadership, ⚫ Nomination and Remuneration - Agus Lasmono and Farid
industry expertise, and a commitment to upholding corporate Harianto
values and good governance principles. [GRI 2-10] ⚫ Sustainability - Indracahya Basuki, Eko Putro Sandjojo
and Farid Harianto
SUSTAINABILITY COMMITTEE
ESG-LINKED KEY PERFORMANCE INDICATORS
The company established a Sustainability Committee in 2021
[GRI 2-18]
to strengthen its commitment to business sustainability by
ESG-linked KPIs are established annually at the Group level
addressing environmental, social, and governance factors. We
as part of our strategic planning cycle. Progress is monitored
believe a strong Sustainability Committee will improve the
through quarterly business reviews, with updates reported
company’s ability to make decisions with transparency and
directly to our Group CEO. The Sustainability Function oversees
fairness, supporting long-term sustainability. Each year, the
ESG-related policies and strategy, setting all material topics,
President Directors and Directors-in-Charge of all companies
defining sustainability goals and targets, periodically reviewing
within the Indika Energy Group come together for a Sustainability
performance, and providing recommendations to continuously
Panel, where they discuss their companies’ achievements,
improve the operationalization of ESG-linked roadmaps.
progress, and future steps in their sustainability journey. [GRI 2-13]
Embedding ESG into our business strategy is a key tenet in
building and planning for our company’s longevity and resilience.
THE BOARD OF DIRECTORS The Indika Energy Group Risk Management Framework, aligned
The Board of Directors is responsible for managing the company with ISO 31000, integrates environmental and social risks into
in line with the stated goals and objectives. Board members our broader risk assessment processes. This ensures they are
represent the company both legally and in business matters, in evaluated with the same rigor as other key business risks. The
accordance with the Articles of Association. The Board of Directors respective business leaders are responsible for implementing risk
is accountable to the GMS, ensuring that the company is managed management strategies, policies, and processes to address these
with good corporate governance practices. [GRI 2-9] risks proactively. [GRI 2-25]
To uphold these governance principles, Indika Energy ensures that The Board of Commissioners evaluates the Board of Directors’
all members of the Board of Directors meet strict eligbility criteria performance based on ESG-linked KPIs and other key criteria, in
before and throughout their tenure. This includes compliance with line with the following [GRI 2-24]:
financial integrity, responsible leadership, legal obligations, and
regulatory adherence. Board members must not have a history ⚫ Achievement of targets set out in the Company’s work
of misconducts or non-compliance with regulatory requirements. plan budget
These measures reinforce the company’s commitment to ethical ⚫ Contributions to business activities
leadership, transparency, and accountability, ensuring that the ⚫ Involvement in key assignments
Board operates with the highest standards of professionalism and
⚫ Commitment to advancing the company’s interests
integrity. [GRI 2-10]
⚫ Compliance with laws, regulations, and internal policies
⚫ Active participation in Board of Directors and Board of
INDEPENDENCE [GRI 2-10]
Commissioners meetings
As of December 31, 2024, the Board of Commissioners consists
of a President Commissioner, a Vice President Commissioner, a
This structured approach ensures accountability and continuous
commissioner, and two Independent Commissioners. They hold
improvement in ESG performance across the organization.
tenures as Commissioners ranging from one to five years. The
two Independent Commissioners meet the requirements of not
being affiliated with Indika Energy, fellow members of the Board COMPETENCY DEVELOPMENT OF THE HIGHEST
of Commissioners or the Board of Directors, auditing parties, or GOVERNANCE BODY [GRI 2-17]
major shareholders. We recognize that strong governance is essential for sustainable
business practices. To ensure our leadership remains well-
equipped to drive sustainability initiatives, we provide ongoing
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
SHORT TERM BENEFIT OF SHORT TERM BENEFIT OF TOTAL
THE BOARD OF THE BOARD OF
COMMISSIONER DIRECTORS
(IN US$) (IN US$)
8,232,904
7,933,531
6,369,380
6,228,988
5,934,123
1,863,524
1,704,543
4,629,463
1,304,660
2022 2023 2024 2022 2023 2024 2022 2023 2024
development opportunities for the Board of Directors and Board CONFLICTS OF INTEREST [GRI 2-15]
of Commissioners. Indika Energy Group upholds strict standards to prevent conflicts
of interest, whether real or perceived, by ensuring that personal
Throughout 2024, all members of the Board of Commissioners
interests never interfere with company decisions. All members of
participated in the BOC and BOD Induction as part of their
the Board of Directors and Board of Commissioners are required
competency development. Additionally, several BOD members
to separate personal and corporate interests, avoiding situations
also participated in short courses on sustainability-related issues.
that could create or appear to create conflicts.
Beyond formal training, we actively engage our leadership in
sustainability-focused programs, discussions, and industry In 2024, there were no reported familial or financial relationships
conferences, fostering continuous learning and alignment with between members of the Board of Commissioners, Board of
global best practices. Directors, or Major and/or Controlling Shareholders that could
influence decision-making.
REMUNERATION POLICIES [GRI 2-19, 2-20]
The Group is managed professionally, free from any conflict
Indika Energy Group’s remuneration framework is designed to of interest or external influence, and in full compliance with
attract and retain top talent while ensuring alignment with our applicable laws, regulations, and ethical business principles.
business goals and industry standards. Pursuant to POJK 34, Our Code of Business Conduct explicitly addresses conflicts of
the Human Capital Committee is responsible for structuring, interest, reinforcing the responsibility of Shareholders, the Board
formulating policies, and determining remuneration for the of Commissioners and the Board of Directors to respect each
members of the Board of Directors. other’s roles and authority without interference. At all levels, from
leadership to employees, we emphasize independent decision-
The Board of Directors’ remuneration package may include
making and ethical governance.
salaries, honorariums, incentives, and/or allowances, both fixed
and/or variable. When determining remuneration, the following
factors are considered: COMMUNICATION OF CRITICAL CONCERNS [GRI
2-16]
⚫ Industry benchmarks and prevailing practices in similar
Indika Energy Group fosters a culture of open communication
sectors.
across all levels of the company. Regular meetings involving
⚫ The duties, responsibilities and authority of each the Board of Commissioners, Board of Directors, and various
member of the Board of Directors in relation to company committees ensure that critical issues are addressed and discussed
performance. in a timely manner.
⚫ Individual and collective target performance.
In times of crisis, we activate our cross-functional response
⚫ A balanced approach between fixed and variable
team led by senior leadership with high-level decision-making
components of benefits.
authority. This team develops a comprehensive strategy to
For the Board of Commissioners, remuneration structure, policy assess both primary and secondary risks, covering planning and
and amount are determined annually by the Nomination and intelligence gathering, stakeholder management, technical or
Remuneration Committee. Similarly, the remuneration for operational resolutions, recovery efforts, investigations, and
members of the Board of Commissioners is evaluated with governance.
consideration of industry standards, individual roles, and
contributions toward company goals. [GRI 2-20].
159
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160 Throughout 2024, we proactively addressed 12 reports received through our Whistleblowing System, related to ethical concerns and compliance matters. Each report was promptly reviewed, and appropriate actions were taken in line with the Company’s regulatory framework and ethical guidelines. By conducting thorough investigations and implementing necessary resolutions, we reinforce our commitment to transparency, accountability, and good governance. Our robust reporting system continues to play a vital role in upholding ethical standards and fostering a culture of integrity across our organization. POLICIES AND CODE OF BUSINESS CONDUCT [GRI 2-23, 2-24] In 2024, we developed new policies and renewed existing ones to better reflect our current sustainability commitments. The Board of Directors oversees their development and implementation, ensuring that all employees across the Indika Energy Group adhere to them. To reinforce awareness and understanding, we conduct training sessions, town hall meetings, leadership discussions such as the BOC-BOD Induction, and company-wide internal publications and discussion forums. [GRI 2-4] Our Code of Business Conduct serves as a framework for ethical and responsible operations. Compliance is mandatory for all employees, and violations may result in disciplinary action, including termination [GRI 2-24]. To extend these standards beyond our organization, we are also developing a Supplier Code of Conduct to ensure our partners and third-party organizations uphold the same principles. The Code of Business Conduct covers key areas such as employee responsibilities; health, safety, and environmental standards; integrity; information management; asset management and protection; and protocols for reporting of non-compliance, investigations, and disciplinary actions. For further details regarding Indika Energy’s policies please visit www.indikaenergy.co.id/governance/gcg-updates P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
BUSINESS ETHICS:
DRIVING ETHICAL PRACTICES
IN EVERY ACTION
I N D I K A E N E R GY G R O U P U P H O L D S T H E H I G H E S T E T H I CA L S TA N DA R D S A C R O S S A L L O F O U R
B U S I N E S S O P E R AT I O N S , E N S U R I N G FA I R N E S S , T R A N S PA R E N CY, A N D A C CO U N TA B I L I T Y.
H O N E S T Y, I N T E G R I T Y, A N D R E S P E CT FO R A L L A R E AT T H E CO R E O F O U R VA LU E S ,
S H A P I N G O U R R E L AT I O N S H I P S W I T H E M P LOY E E S , CO N S U M E R S , PA RT N E R S , A N D
OT H E R S TA K E H O L D E R S . T H E S E P R I N C I P L E S N OT O N LY D R I V E GOO D GOV E R N A N C E A N D
C O M P L I A N C E B U T A L S O R E I N FO R C E O U R LO N G -T E R M V I S I O N FO R S U S TA I N A B L E A N D
R E S P O N S I B L E G R OW T H . [ G R I 2-27]
To maintain ethical conduct throughout the organization and Each year, we conduct Bribery Risk Assessments (BRAs) across
business ecosystem of partners, we have established robust Indika Energy Group and its subsidiaries to proactively identify
policies and systems, guided by the Indika Energy Code of Conduct. and mitigate bribery risks. These assessments evaluate the
This framework integrates ethical practices into our organizational effectiveness of our anti-bribery controls and ensure our risk
culture and includes a strict zero-tolerance policy against bribery mitigation measures remain robust. [GRI 205-1] Findings from
while prohibiting participation in political activities such as these audits are presented to the Board of Directors and the Anti-
donations, endorsements, or lobbying. Bribery Compliance Function for further action.
Our commitment to ethics is further reinforced by a In 2024, we renewed our ISO 37001:2016 certification for the Anti-
comprehensive anti-bribery and anti-corruption management Bribery Management System, reinforcing our alignment with
system and the Indika Energy Ethics Committee, which plays a global anti-corruption best practices. This certification highlights
crucial role in overseeing compliance. The committee reviewing the strengths and effectiveness of our ABMS in fostering a culture
reports submitted through our whistleblowing system, ensures of integrity while supporting our corporate governance objectives.
ethical concerns are addressed, and advises the Board of Directors Notably, throughout 2024, no significant bribery-related risks or
on necessary actions. Additionally, it monitors business ethics, incidents of corruption were reported. [GRI 205-1]
provides guidance on the Code of Business Conduct, adapts
policies to evolving developments, and manages reports of ethical
WHISTLEBLOWING SYSTEM [GRI 2-26]
misconduct.
Since December 2013, Indika Energy Group has operated a
whistleblowing system to allow for the confidential reporting
ANTI-BRIBERY AND ANTI-CORRUPTION [GRI 205- of violations or non-compliance. This system is accessible to
1, 205-3, 2-27] employees, suppliers, customers, and other third parties, ensuring
At Indika Energy Group, we uphold a zero-tolerance policy on that all stakeholders have a clear and safe channel to report
bribery and corruption, reinforcing our commitment to ethical concerns. To accommodate a diverse range of users, the system
business practices. Our comprehensive Anti-Bribery Management is available through multiple platforms, including email, mail,
System (ABMS) ensures compliance with all applicable laws and telephone, fax, and a dedicated website. Since 2021, the system
regulations across the Group. To demonstrate our continued has been available in both Indonesian and English to further
commitment to business integrity, we successfully renewed our improve accessibility.
certification last year, reaffirming our dedication to high ethical
standards.
163
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164 The Ethics Committee is responsible for managing the reports submitted through this system. Upon receiving a report, the committee evaluates whether an investigation is needed, then prepares a report with findings and recommendations if necessary. The Corporate Secretary and Legal Department regularly update the Board of Directors, Board of Commissioners, and relevant committees on the number of reports submitted and their outcomes, providing transparency on the system’s effectiveness every three months. The whistleblowing system plays a key role in fostering a culture of accountability, ensuring that all concerns are addressed swiftly and appropriately. RAISING AWARENESS [GRI 205-2, 205-3] We are dedicated to fostering a corporate culture grounded in ethical conduct. As part of this commitment, all new employees undergo training in the Code of Business Conduct and are required to sign it to affirm their adherence to our ethical standards. We extend this commitment to our business partners, including vendors and subcontractors, by having them sign our Integrity Pact to help mitigate bribery and corruption risks. Throughout 2024, the Ethics Committee and the Anti-Bribery Compliance Function worked diligently to raise awareness of our Code of Business Conduct, Anti-Bribery Management System, and Whistleblowing Program. This was achieved through a variety of channels, such as regular emails, website updates, banners, desktop wallpapers, employee surveys, and refresher courses. As a result, 100% of our employees were made aware of our anti- corruption policies and procedures. Regular risk assessments are conducted within the Group to continuously evaluate and improve our anti-corruption efforts. [GRI 205-2, 205-3] Looking ahead, we plan to expand our reporting to provide a detailed breakdown of the number of employees and governance bodies receiving training or communication on anti-corruption policies, categorized by role and region, as our workforce is dispersed across multiple locations. [GRI 205-2] P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
STATEMENT OF MEMBERS OF THE BOARD OF
COMMISSIONERS AND BOARD OF DIRECTORS REGARDING
RESPONSIBILITY FOR THE 2024 SUSTAINABILITY REPORT
We, as the Board of Commissioners and Board of Directors of Indika Energy, have evaluated the contents of this Sustainability Report and
state that the report covers all sustainability aspects that are relevant to Indika Energy. We are responsible for the accuracy of the contents
of this Sustainability Report, including financial statements and other related information.
Jakarta, March 2025
Agus Lasmono M. Arsjad Rasjid P.M.
President Commissioner President Director
Richard Bruce Ness Azis Armand
Vice President Commissioner Vice President Director
Indracahya Basuki Retina Rosabai
Commissioner Director
Farid Harianto Purbaja Pantja
Independent Commissioner Director
Eko Putro Sandjojo Kamen Kamenov Palatov
Independent Commissioner Director
167
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168
ASSURANCE STATEMENT
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
ASSURANCE STATEMENT
SGS INDONESIA’S REPORT ON SUSTAINABILITY ACTIVITIES IN THE
PT INDIKA ENERGY Tbk SUSTAINABILITY REPORT FOR 2024
NATURE OF THE ASSURANCE/VERIFICATION
PT. SGS Indonesia was commissioned by PT Indika Energy Tbk to conduct an independent assurance of the
Sustainability Report 2024 period 1 January - 31 December 2024.
INTENDED USERS OF THIS ASSURANCE STATEMENT
This Assurance Statement is provided with the intention of informing all PT Indika Energy Tbk’s stakeholders.
RESPONSIBILITIES
The information in the Report and its presentation are the responsibility of the directors or governing body and
the management of PT Indika Energy Tbk. SGS has not been involved in the preparation of any of the material
included in the Report.
Our responsibility is to express an opinion on the text, data, graphs and statements within the scope of assurance
based upon sufficient and appropriate objective evidence.
ASSURANCE STANDARDS, TYPE AND LEVEL OF ASSURANCE
The assurance of this report has been conducted according to the AA1000 Assurance Standard (AA1000AS v3),
a standard used globally to provide assurance on sustainability-related information across organizations of all
types, including the evaluation of the nature and extent to which an organization adheres to the Accountability
Principles (AA1000AP, 2018).
Assurance has been conducted at a moderate level of scrutiny and type 2.
SCOPE OF ASSURANCE
The scope of the assurance included evaluation of quality, accuracy and reliability of specified performance
information as detailed below and evaluation of adherence to the following reporting criteria:
• AA1000 Accountability Principles (2018)
• Global Reporting Initiative Sustainability Reporting Standards 2021 (In Accordance with)
SPECIFIED PERFORMANCE INFORMATION AND DISCLOSURES INCLUDED IN SCOPE
• Energy
• Emission including GHG scope 1 and scope 2
• Water and Effluent
• Waste Management
• Occupational Health and Safety
ASSURANCE METHODOLOGY
The assurance comprised a combination of pre-assurance research and interviews with relevant accountable
managers and employees at the Head Office of PT Indika Energy Tbk’s in Jakarta via remote, sampling for
2 (two) subsidiaries, site PT Kideco Tbk in Kalimantan Timur via remote and PT Interport Mandiri Utama in Jakarta
and Kalimantan Timur via remote. PT Indika Energy Tbk’s Sustainability Report 2024 cover PT Indika Energy
Tbk’s, Subsidiaries, Joint Ventures, and Associated Companies.
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SAGP2003 Issue 1 Effective Date: 01/01/2025
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170
LIMITATIONS
Financial data drawn directly from independently audited financial accounts has not been checked back to source
as part of this assurance process.
INDEPENDENCE AND COMPETENCE
The SGS Group of companies is the world leader in inspection, testing and verification, operating in more than
140 countries and providing services including management systems and service certification; quality,
environmental, social and ethical auditing and training; environmental, social and sustainability report assurance.
SGS affirm our independence from PT Indika Energy Tbk, being free from bias and conflicts of interest with the
organisation, its subsidiaries and stakeholders.
The assurance team was assembled based on their knowledge, experience and qualifications for this assignment,
and comprised auditors registered with International Register of Certificated Auditors (IRCA), Environmental
Management System (EMS) Lead Auditor, Quality Management System (QMS) Lead Auditor, Occupational
Health and Safety Management System Lead Auditor, the IRCA Corporate Responsibility
FINDINGS AND CONCLUSIONS
ASSURANCE OPINION
On the basis of the methodology described and the assurance work performed, we are satisfied that the specified
performance information included in the scope of assurance is accurate, reliable, has been fairly stated and has
been prepared, in all material respects, in accordance with the AA1000 Accountability Principles (2018) and
Global Reporting Initiative Sustainability Reporting Standards 2021 (In Accordance with).
We believe that the organization has chosen an appropriate level of assurance for this stage in their reporting.
ADHERENCE TO AA1000 ACCOUNTABILITY PRINCIPLES (2018)
INCLUSIVITY
PT Indika Energy Tbk has demonstrated a good commitment to stakeholder inclusivity and stakeholder
engagement. A variety of engagement efforts such as survey and communication to employees, customers,
investors, suppliers, sustainability experts, and other stakeholders are implemented to underpin the organization's
understanding of stakeholder concerns. For future reporting, PT Indika Energy Tbk may proactively consider
having more direct two-ways involvement of stakeholders during future engagement.
MATERIALITY
PT Indika Energy Tbk has established effective processes for determining issues that are material to the business.
Formal review has identified stakeholders and those issues that are material to each group and the report
addresses these at an appropriate level to reflect their importance and priority to these stakeholders.
RESPONSIVENESS
PT Indika Energy Tbk’s has responded to stakeholders issues that affect to its sustainability performance and is
released through decisions, actions and performance, as well as communication with stakeholders.
IMPACT
PT Indika Energy Tbk has demonstrated a process on identify and fairly represented impacts that encompass a
range of environmental, social and governance topics from wide range of sources, such as activities, policies,
programs, decisions and products and services, as well as any related performance. Measurement and
evaluation of its impacts related to material topic were in place at target setting with combination of qualitative
and quantitative measurements.
QUALITY AND RELIABILITY OF SPECIFIED PERFORMANCE INFORMATION
• The company has established robust internal control of the data and information based on the
management systems they set up for environment and occupational health and safety.
P T I N D I K A E N E R GY T B K .
SAGP2003 Issue 1 Effective Date: 01/01/2025
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SUSTAI NABI LI TY REP O RT 2 0 2 4
ADHERENCE TO GLOBAL REPORTING INITIATIVE SUSTAINABILITY REPORTING STANDARDS (2021)
In our opinion, the PT Indika Energy Tbk’s Sustainability Report 2024 is presented in accordance with the Global
Reporting Initiative Sustainability Reporting Standards 2021 and fulfills all the required content and quality criteria.
Foundation
In our opinion, the content and quality of the report adheres to the GRI Reporting Principles of Accuracy, Balance,
Clarity, Comparability, Completeness, Sustainability context, Timeliness and Verifiability.
General Disclosures
All the General disclosures required for reporting in accordance with the Global Reporting Initiative Sustainability
Reporting Standards 2021.
Material Topics
PT Indika Energy Tbk disclose material topics that represent an organization’s most significant impacts on the
economy, environment, and people, in accordance with Global Reporting Initiative Sustainability Reporting
Standards 2021.
Signed:
For and on behalf of SGS Indonesia
Waras Putri Andrianti
Business Assurance Director
Jakarta, Indonesia
24 March 2025
WWW.SGS.COM
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172
GLOSSARY
A
Annual total compensation Collective bargaining
compensation provided over the course of a year for anti- all negotiations that take place between one or more employers
competitive behavior action of the organization or employees or employers’ organizations, on the one hand, and one or more
that can result in collusion with potential competitors, with the workers’ organizations (e.g., trade unions), on the other, for
purpose of limiting the effects of market competition. determining working conditions and terms of employment or for
regulating relations between employers and workers.
Anti-trust and monopoly practice
Community development program
action of the organization that can result in collusion to erect
barriers for entry to the sector, or another collusive action Plan that details actions to minimize, mitigate, or compensate
that prevents competition area of high biodiversity value area for adverse social and/or economic impacts, and/ or to identify
not subject to legal protection but recognized for important opportunities or actions to enhance positive impacts of a project
biodiversity features by a number of governmental and non- on the community.
governmental organizations.
Conflict of interest
Area protected
situation where an individual is confronted with choosing between
area that is protected from any harm during operational activities, the requirements of their function in the organization and their
and where the environment remains in its original state with other personal or professional interests or responsibilities.
a healthy and functioning ecosystem area restored area that
was used during or affected by operational activities, and where
remediation measures have either restored the environment to its E
original state, or to a state where it has a healthy and functioning Effluent
ecosystem.
Treated or untreated wastewater that is discharged.
B Employee
Baseline Individual who is in an employment relationship with the
starting point used for comparisons basic salary fixed, minimum organization according to national law or practice.
amount paid to an employee for performing his or her duties benefit ESG
direct benefit provided in the form of financial contributions, care
paid for by the organization, or the reimbursement of expenses Environmental, social and governance.
borne by the employee business partner entity with which the
organization has some form of direct and formal engagement for
the purpose of meeting its business objectives. F
Freedom of association
C Right of employers and workers to form, to join and to run their
Carbon Scope 1 and Scope 2 intensity own organizations without prior authorization or interference by
the state or any other entity.
The carbon Scope 1 and 2 intensity is calculated as a ratio of Scope
1 and 2 location-based emissions of Indika Energy-operated
industrial assets owned at the end of the reporting year, divided G
by their coal production (in Tons) and by revenue (in USD million). GHG (Greenhouse gas)
Further synonyms of these metrics used in this report include
‘emissions intensity’ and ‘greenhouse gas emissions intensity’. Greenhouse Gas Protocol Standards and guidance for corporate
accounting and reporting on GHG emissions, which help
CO2eq (Carbon dioxide equivalent) governments and business leaders to understand, quantify, and
manage GHG emissions (eg. CO2). The Greenhouse Gas Protocol
is the universal unit of measurement for the global warming separates GHG emissions into different scopes depending on
potential (GWP) of greenhouse gases (GHG), where one unit of source.
CO2eq is the GWP for one unit of carbon dioxide. This unit allows
us to discuss the equivalence of different GHGs in terms of their
GWP. More commonly measured in metric tons of CO2eq, or
tonCO2eq.
P T I N D I K A E N E R GY T B K .
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GRI O
The Global Reporting Initiative (GRI) is an international OECD
independent standards organisation that develops and
disseminates voluntary sustainability reporting frameworks. The Organisation for Economic Cooperation and Development
(OECD) is an international organization that provides a forum in
Grievance process which governments can work together to share experiences and
A formal grievance process/mechanism for local community seek solutions to tackle economic, social, environmental and
members or other stakeholders to use to register any concerns governance challenges.
about real or perceived actions by nearby operations, with the
objective of resolving problems before they escalate. Occupational disease
Any chronic ailment or illness that occurs because of work or
H occupational activity; these are typically identified as being
Hazardous more prevalent in a given body of workers than in the general
population, or in other worker populations. An occupational
Dangerous, as defined by national legislation.
disease is different from an occupational injury.
Hours worked
Total hours worked by employees and contractors at our P
industrial sites, including overtime but excluding any scheduled
Paris Agreement
or unscheduled absence (eg holidays or sickness) during the
reporting year. An agreement within the United Nations Framework Convention
on Climate Change, dealing with GHG emissions mitigation,
I adaptation, and finance, signed in 2016.
ILO
PPCA
The International Labour Organization (ILO) is a United Nations
agency for the promotion of social justice and internationally Powering Past Coal Alliance
recognised human and labor rights.
PV
ILO Declaration Photovoltaic
In 1988, the ILO adopted the Declaration on Fundamental
Principles and Rights at Work, with the core categories of collective S
bargaining, discrimination, forced labour and child labour. Scope 1 emissions
IPCC Greenhouse gas emissions from owned or controlled sources (i.e.
direct emissions), including emissions from combustion in owned
The United Nations Intergovernmental Panel on Climate or controlled boilers, furnaces and vehicles/vessels and coal seam
Change (IPCC) assesses scientific, technical and socioeconomic emissions. We measure our Scope 1 emissions in tonCO2eq.
information on the risk of human induced climate change.
The United Nations Environment Programme and the World Scope 2 emissions
Meteorological Organization established the IPCC. This approach applies GHG emissions from contractual
arrangements; we apply supplier-specific emission factors when
relevant and available, but where they are not, the country’s
L
residual or grid emission factor is applied. We measure our Scope
LTIs 2 emissions in tonCO2eq.
Lost time injuries (LTIs) are recorded when an employee or Scope 3 emissions
contractor is unable to work following an incident. We record Indirect greenhouse gas emissions (not included in Scope 2) that
lost days as beginning on the first rostered day that the worker occur in our value chain, including both upstream and downstream
is absent after the day of the injury. The day of the injury is not emissions. We are currently exploring ways to calculate scope 3
included. LTIs do not include restricted work injuries (RWIs) and emissions.
fatalities.
SDG
LTIR Sustainable Development Goals
The lost time injury rate (LTIR) is the total number of LTIs recorded
per 200,000 hours worked.
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174 U United Nations Global Compact (UNGC) The UNGC is a voluntary initiative based on CEO commitments to implement universal sustainability principles and to take steps to support the UN Sustainable Development Goals. United Nations Guiding Principles the United Nations Guiding Principles on Business and Human Rights are a set of guidelines for states and companies to prevent, address and remedy human rights abuses committed in business operations. Universal Declaration of Human Rights The Universal Declaration of Human Rights is a common standard for all peoples and all nations that sets out fundamental human rights to be universally protected. V Voluntary Principles The Voluntary Principles on Security and Human Rights (Voluntary Principles) Initiative is a multi-stakeholder initiative involving governments, companies and NGOs, which promotes a set of principles for oil, gas and mining companies to guide them in providing security for their operations in a manner that respects human rights. W Water discharge Total amount of effluents, used water, and unused water released to surface water, groundwater, seawater, or a third party, for which the organization has no further use, over the course of the reporting period. Water withdrawal Total amount of water drawn into the boundaries of the reporting organization from all sources for any use over the course of the reporting period. Includes surface water, groundwater, seawater, and water imported from third parties. Workforce References to our workforce include both employees and contractors. P T I N D I K A E N E R GY T B K .
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GLOBAL REPORTING INITIATIVE (GRI) CONTENT
INDEX
Statement of use PT Indika Energy Tbk. has reported the information in accordance with the GRI Standards
2021, as cited in this GRI content index for the period 1 January 2024 to 31 December 2024
GRI 1 used GRI 1: Foundation 2021
Requirement 9: Notify GRI
GRI STANDARD DISCLOSURE PAGE OMISSION
GRI 2: General Disclosures 2021 2-1 Organizational details 39
2-2 Entities included in the organization’s
21
sustainability reporting
2-3 Reporting period, frequency
21
and contact point
2-4 Restatements of information 31
2-5 External assurance 168
2-6 Activities, value chain and
9, 15, 39-43
other business relationships
2-7 Employees 121, Appendix
2-8 Workers who are not employees Appendix
2-9 Governance structure and composition 58-59
2-10 Nomination and selection of
157
the highest governance body
2-11 Chair of the highest governance body 157
2-12 Role of the highest governance body
157
in overseeing the management of impacts
2-13 Delegation of responsibility
158
for managing impacts
2-14 Role of the highest governance
157
body in sustainability reporting
2-15 Conflicts of interest 159
2-16 Communication of critical concerns 159
2-17 Collective knowledge of the
15
highest governance body
2-18 Evaluation of the performance
157
of the highest governance body
2-19 Remuneration policies 159
2-20 Process to determine remuneration 159
175
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176
GRI STANDARD DISCLOSURE PAGE OMISSION
We currently do not disclose
2-21 Annual total compensation ratio
data on compensation ratio
2-22 Statement on sustainable
49, 67
development strategy
2-23 Policy commitments 160
2-24 Embedding policy commitments 160
2-25 Processes to remediate
31, 137, 159
negative impacts
2-26 Mechanisms for seeking
31, 137, 163
advice and raising concerns
2-27 Compliance with laws and regulations 160
2-28 Membership associations 62
2-29 Approach to stakeholder engagement 22
2-30 Collective bargaining agreements 137
GRI 3: Material Topics 2021 3-1 Process to determine material topics 27
3-2 List of material topics 28
9, 49, 83,
3-3 Management of material topics
93, 113, 155
GRI 201: Economic 201-1 Direct economic value
14
Performance 2016 generated and distributed
201-2 Financial implications and other risks
49
and opportunities due to climate change
201-3 Defined benefit plan obligations
117
and other retirement plans
201-4 Financial assistance
14
received from government
202-1 Ratios of standard entry level wage by
GRI 202: Market Presence 2016 119
gender compared to local minimum wage
202-2 Proportion of senior management
119
hired from the local community
GRI 203: Indirect Economic 203-1 Infrastructure investments
141
Impacts 2016 and services supported
203-2 Significant indirect economic impacts 15, 141
GRI 204: Procurement 204-1 Proportion of spending
15
Practices 2016 on local suppliers
205-1 Operations assessed for
GRI 205: Anti-corruption 2016 163, Appendix
risks related to corruption
205-2 Communication and training about
127, 163
anti-corruption policies and procedures
205-3 Confirmed incidents of
163, Appendix
corruption and actions taken
P T I N D I K A E N E R GY T B K .
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GRI STANDARD DISCLOSURE PAGE OMISSION
GRI 206: Anti-competitive 206-1 Legal actions for anti-competitive This is currently not considered
Behavior 2016 behavior, anti-trust, and monopoly practices as a material topic.
This is currently not considered
GRI 207: Tax 2019 207-1 Approach to tax
as a material topic.
207-2 Tax governance, control, This is currently not considered
and risk management as a material topic.
207-3 Stakeholder engagement and
22-26
management of concerns related to tax
This is currently not considered
207-4 Country-by-country reporting
as a material topic.
This is currently not considered
GRI 301: Materials 2016 301-1 Materials used by weight or volume
as a material topic.
This is currently not considered
301-2 Recycled input materials used
as a material topic.
301-3 Reclaimed products and This is currently not considered
their packaging materials as a material topic.
302-1 Energy consumption
GRI 302: Energy 2016 86, Appendix
within the organization
302-2 Energy consumption
Appendix
outside of the organization
302-3 Energy intensity 86, Appendix
302-4 Reduction of energy consumption 86
302-5 Reductions in energy requirements
81, 87
of products and services
GRI 303: Water and 303-1 Interactions with water
103
Effluents 2018 as a shared resource
303-2 Management of water
103
discharge-related impacts
303-3 Water withdrawal 103, Appendix
303-4 Water discharge 103, Appendix
303-5 Water consumption Appendix
304-1 Operational sites owned, leased,
managed in, or adjacent to, protected
GRI 304: Biodiversity 2016 97
areas and areas of high biodiversity
value outside protected areas
304-2 Significant impacts of activities,
97
products and services on biodiversity
304-3 Habitats protected or restored 97
304-4 IUCN Red List species and national
conservation list species with habitats Appendix
in areas affected by operations
GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG emissions 85, Appendix
177
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178
GRI STANDARD DISCLOSURE PAGE OMISSION
305-2 Energy indirect (Scope
85, Appendix
2) GHG emissions
305-3 Other indirect (Scope
83
3) GHG emissions
10, 86,
305-4 GHG emissions intensity
Appendix
305-5 Reduction of GHG emissions 83
305-6 Emissions of ozone-
107
depleting substances (ODS)
305-7 Nitrogen oxides (NOx), sulfur oxides
108, Appendix
(SOx), and other significant air emissions
306-1 Waste generation and
GRI 306: Waste 2020 105
significant waste-related impacts
306-2 Management of significant
105
waste-related impacts
306-3 Waste generated 105, Appendix
306-4 Waste diverted from disposal 105, Appendix
306-5 Waste directed to disposal Appendix
GRI 308: Supplier
308-1 New suppliers that were screened This is currently not considered
Environmental
using environmental criteria as a material topic.
Assessment 2016
308-2 Negative environmental impacts This is currently not considered
in the supply chain and actions taken as a material topic.
401-1 New employee hires
GRI 401: Employment 2016 117, Appendix
and employee turnover
401-2 Benefits provided to full-time
employees that are not provided to 117
temporary or part-time employees
401-3 Parental leave 117, Appendix
GRI 402: Labor/Management 402-1 Minimum notice periods
118
Relations 2016 regarding operational changes
GRI 403: Occupational 403-1 Occupational health and
131
Health and Safety 2018 safety management system
403-2 Hazard identification, risk
131
assessment, and incident investigation
403-3 Occupational health services 132
403-4 Worker participation,
consultation, and communication on 132
occupational health and safety
403-5 Worker training on
128
occupational health and safety
403-6 Promotion of worker health 133
P T I N D I K A E N E R GY T B K .
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GRI STANDARD DISCLOSURE PAGE OMISSION
403-7 Prevention and mitigation of
occupational health and safety impacts 133
directly linked by business relationships
403-8 Workers covered by an occupational
131
health and safety management system
403-9 Work-related injuries 133, Appendix
403-10 Work-related ill health 133, Appendix
GRI 404: Training and 404-1 Average hours of training
Appendix
Education 2016 per year per employee
404-2 Programs for upgrading employee
10, 15, 127
skills and transition assistance programs
404-3 Percentage of employees
receiving regular performance and Appendix
career development reviews
GRI 405: Diversity and 405-1 Diversity of governance
121, Appendix
Equal Opportunity 2016 bodies and employees
405-2 Ratio of basic salary and
119
remuneration of women to men
GRI 406: Non- 406-1 Incidents of discrimination
119, Appendix
discrimination 2016 and corrective actions taken
GRI 407: Freedom of 407-1 Operations and suppliers in which
Association and Collective the right to freedom of association and 137
Bargaining 2016 collective bargaining may be at risk
408-1 Operations and suppliers at
GRI 408: Child Labor 2016 137
significant risk for incidents of child labor
409-1 Operations and suppliers
GRI 409: Forced or
at significant risk for incidents of 137
Compulsory Labor 2016
forced or compulsory labor
410-1 Security personnel trained in
GRI 410: Security Practices 2016 30
human rights policies or procedures
GRI 411: Rights of 411-1 Incidents of violations involving
139, Appendix
Indigenous Peoples 2016 rights of indigenous peoples
413-1 Operations with local community
GRI 413: Local 11, 37, 89,
engagement, impact assessments,
Communities 2016 139, 141
and development programs
413-2 Operations with significant
actual and potential negative 139, 141
impacts on local communities
GRI 414: Supplier Social 414-1 New suppliers that were This is currently not considered
Assessment 2016 screened using social criteria as a material topic.
414-2 Negative social impacts in the This is currently not considered
supply chain and actions taken as a material topic.
GRI 415: Public Policy 2016 415-1 Political contributions 163
179
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180
GRI STANDARD DISCLOSURE PAGE OMISSION
The requirement does not
GRI 416: Customer Health 416-1 Assessment of the health and safety apply to the organization
and Safety 2016 impacts of product and service categories based on the nature
of its business
The requirement does not
416-2 Incidents of non-compliance
apply to the organization
concerning the health and safety
based on the nature
impacts of products and services
of its business
The requirement does not
GRI 417: Marketing 417-1 Requirements for product and apply to the organization
and Labeling 2016 service information and labeling based on the nature
of its business
The requirement does not
417-2 Incidents of non-compliance
apply to the organization
concerning product and service
based on the nature
information and labeling
of its business
The requirement does not
417-3 Incidents of non-compliance apply to the organization
concerning marketing communications based on the nature
of its business
The requirement does not
418-1 Substantiated complaints
apply to the organization
GRI 418: Customer Privacy 2016 concerning breaches of customer
based on the nature
privacy and losses of customer data
of its business
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
POJK REFERENCE INDEX
INDEX NUMBER DISCLOSURE PAGE
SUSTAINABILITY STRATEGY
A.1 Sustainability strategy explanation 55 - 57
SUSTAINABILITY ASPECT PERFORMANCE OVERVIEW
B.1 Economic aspect
B.1.a The quantity of sold production or service Appendix
B.1.b Income or sales 14
B.1.c Net profit or loss 14
B.1.d Eco-friendly product 75
B.1.e Involving local parties related to the sustainable finance business process 15
B.2 Environmental aspect
B.2.a Energy usage 86, Appendix
B.2.b Result of the emission reduction 85
B.2.c Waste and effluent reduction 105
B.2.d Biodiversity conservation 97
B.3. Social performance overview which describes the positive 141-150
and negative impacts of implementing sustainable
finance for society and the environment
COMPANY PROFILE
C.1 Vision, mission, and values of sustainability 39
C.2 Company’s address 200
C.3 Company’s scale 39
C.3.a Total assets or asset capitalization and total liabilities Explain further in
Annual Report
C.3.b Number of employees by gender, position, age, education, and status 121, Appendix
C.3.c Percentage of share ownership 42
C.3.d Operational area 40-41
C.4 Products, service, and running business activities 45
C.5 Membership in the association 62
C.6 Significant changes in issues and public companies Explain further in
Annual Report
EXPLANATION OF THE BOARD OF DIRECTORS
D.1.a Policies to respond to challenges in fulfilling the sustainability strategy 160
D.1.b Sustainable finance implementation Explain further in
Annual Report
D.1.c Target achievement strategy 19
181
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182
INDEX NUMBER DISCLOSURE PAGE
SUSTAINABILITY GOVERNANCE
E.1 Responsible for implementing sustainable finance 157-158
E.2 Competency development related to sustainable finance 158
E.3 Risk assessment of the implementation of sustainable finance 49-54
E.4 Stakeholders’ relations 22-26
E.5 Problems with the implementation of sustainable finance 49-54
SUSTAINABILITY CULTURAL INITIATIVES
F.1 Sustainability culture activities 139
FINANCIAL PERFORMANCE
F.2 Comparison of targets and performance of production, 14
portfolio, financing, income and profit and loss
F.3 Comparison of portfolio targets and performance, financing targets, 83-84
or investments in projects in line with sustainable finance
GENERAL ASPECT
F.4 Environmental costs 81
MATERIAL ASPECT
F.5 Environmentally friendly materials used 78-79
ENERGY ASPECT
F.6 Amount and intensity of energy used 86, Appendix
F.7 Efforts and achievements of energy efficiency 81, 89
and use of renewable energy
WATER ASPECT
F.8 Water usage 103, Appendix
BIODIVERSITY ASPECT
F.9 Impacts of operational areas located near or within conservation area 97
F.10 Efforts to conserve biodiversity 97
EMISSION ASPECT
F.11 Amount and intensity of emissions generated by type Appendix
F.12 Efforts and achievements of emission reduction made 83
WASTE AND EFFLUENT ASPECT
F.13 Amount of waste and effluent generated by type Appendix
F.14 Waste and effluent management mechanism 105
F.15 Occurring spills (if any) 105, Appendix
COMPLAINT ASPECTS RELATED TO THE ENVIRONMENT
F.16 Number and material of environmental complaints received and resolved Appendix
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
INDEX NUMBER DISCLOSURE PAGE
SOCIAL PERFORMANCE
F.17 Commitment to provide services on equal 39
products and/or services to consumers
EMPLOYMENT ASPECT
F.18 Equal employment opportunity 119
F.19 Child labor and forced labor 137
F.20 Regional minimum wage 117
F.21 Decent and safe work environment 117
F.22 Employee capability training and development 127
EMPLOYEE CAPABILITY TRAINING AND DEVELOPMENT
F.23 Impact of operations on surrounding communities 141-150
F.24 Community complaints 137
F.25 Environmental Social Responsibility Activities (TJSL) 137-146
RESPONSIBILITY FOR SUSTAINABLE PRODUCT/SERVICE DEVELOPMENT
F.26 Innovation and development of sustainable financial products/services 78-79
F.27 Products/services evaluated for customer safety 131-132
F.28 Product/service impact 69-79
F.29 Number of product recalls Not applicable
F.30 Customer satisfaction survey on sustainable 27-28
financial products and/or services
OTHERS
G.1 Written verification from independent party (if any) 168
G.2 Feedback form 137, 200
G.3 Responses to feedback on the previous year’s sustainability report 200
G.4 List of disclosures according to Financial Services Authority regulation 181-183
number 51/POJK.03/2017 concerning Implementation of sustainable
finance for financial services institutions, issuers, and public companies
183
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184
SUSTAINABLE DEVELOPMENT GOALS (SDGS)
INDEX
BUSINESS
RELEVANT SDGS GRI STANDARDS PAGE
THEME
Economic growth SDG 8 – Decent work and GRI 201-1 Economic performance 14, 117, Appendix
& employment economic growth GRI 401 Employment
GRI 402 Labor/management relations
GRI 404 Training & education
Ethical business SDG 16 – Peace, justice, GRI 2-23 Governance & ethics 160, 163
conduct & and strong institutions GRI 205 Anti-corruption
governance
Occupational SDG 3 – Good health GRI 403 Occupational health & safety 131, Appendix
health & safety and well-being
Climate strategy & SDG 13 – Climate action GRI 305 Emissions 83, Appendix
emissions reduction
Air quality & SDG 11 – Sustainable cities GRI 305-6 Air emissions 107, Appendix
emission controls and communities GRI 305-7 Other emissions
Energy transition & SDG 7 – Affordable GRI 302 Energy 83, Appendix
renewable energy and clean energy
Water & wastewater SDG 6 – Cean water GRI 303 Water & Effluents 103, Appendix
management and sanitation
Waste & circular SDG 12 – Responsible GRI 306 Waste 105, Appendix
economy consumption and production
Biodiversity & land SDG 15 – Life on land GRI 304 Biodiversity 97, Appendix
use management
Community SDG 1 – No poverty GRI 203-1 Indirect economic impacts 141
development & SDG 4 – Quality education GRI 413-1 Local communities
social impact
Human rights & SDG 5 – Gender equality SDG GRI 2-30 Collective bargaining 128, 137
labor practices 10 – Reduced inequalities GRI 407-1 Freedom of association
GRI 408-1 Child labor
GRI 409-1 Forced labor
Indigenous & SDG 10 – Reduced inequalities GRI 411 Indigenous rights 139
local community SDG 15 – Life on land GRI 413 Community engagement
engagement
Supply chain SDG 12 – Responsible GRI 204 Procurement practices 15
sustainability consumption and production GRI 308-1 Supplier environmental
assessment
GRI 414-1 Supplier social assessment
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
WORLD ECONOMIC FORUM STAKEHOLDER
CAPITALISM METRIC (WEF SCM) INDEX
THEME CORE METRIC PAGE
GOVERNANCE
Governing Purpose Setting purpose 157 - 164
Quality of Governing Body Governance body composition 157 - 158
Stakeholder Engagement Material issues impacting stakeholders 22 - 26
Ethical Behavior Anti-corruption 163-164
Protected ethics advice and reporting mechanisms 157-160
Risk and Opportunity Oversight Integrating risk and opportunity into business process 159-160
PLANET
Climate Change Greenhouse Gas emissions 83 - 86
TCFD implementation 69 - 108
Nature Loss Land use and ecological sensitivity 97 - 100
Freshwater Availability Water consumption and withdrawal 103 - 104
in water-stressed areas
PEOPLE
Dignity and Equality Diversity and inclusion 119 - 121
Pay equality 119 -121
Wage level 119 -121
Risk for incidents of child, forced or compulsory labor 137
Health and Wellbeing Health and safety 131 - 133
Skills for the Future Training provided 127 - 129
PROSPERITY
Employment and wealth generation Absolute number and rate of employment 121
Economic contribution 14 - 15
Financial investment contribution 14 - 15
Innovation in better products and services Total R&D expenses Not yet disclosed
Community and social vitality Total tax paid 14
185
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186
UNITED NATIONS OF GLOBAL COMPACT (UNGC)
INDEX
THEME PRINCIPLE PAGE
Human Rights 1. Businesses should support and respect the protection 31
of internationally proclaimed human rights
2. Businesses should make sure that they are not complicit in human rights abuses. 31
Labor 3. Businesses should uphold the freedom of association and the 137
effective recognition of the right to collective bargaining
4. Businesses should uphold the elimination of all 137
forms of forced and compulsory labor
5. Businesses should uphold the effective abolition of child labor 137
6. Businesses should uphold the elimination of discrimination 137
in respect of employment and occupation
Environment 7. Businesses should support a precautionary approach to environmental challenges 69 - 110
8. Businesses should undertake initiatives to promote 69 - 110
greater environmental responsibility
9. Businesses should encourage the development and 69 - 110
diffusion of environmentally technologies
Anti-corruption 10. Businesses should work against corruption in all of 163 - 164
its forms, including extortion and bribery
P T I N D I K A E N E R GY T B K .
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APPENDIX A: ENVIRONMENT
EMISSIONS AND ENERGY
GHG EMISSIONS [GRI 305-1, 305-2, 305-5]
DESCRIPTION UNIT 2022 % 2023 % 2024
Scope 1 emissions tCO2e 1,155,280 -11.41% 1,023,433 -11.40% 906,800
Scope 2 emissions tCO2e 5,482 19.96% 6,576 17.40% 7,720
Total Scope 1 and 2 emissions tCO2e 1,160,762 -11.26% 1,030,009 -11.21% 914,519
Note:
⚫ Gases included in the calculation: CO2, CH4, N2O. GWP rates used for calculating Scope 1 and 2 emissions are based on the Intergovernmental Panel
on Climate Change (IPCC) Fifth Assessment Report (AR5): CO2 = 1, CH4 = 28, N2O = 265. [GRI 305-1, 305-2]
⚫ 2024 figures of scope 1 and 2 GHG emissions data include Kideco, Indika Indonesia Resources, Tripatra, Interport, Masmindo, Mekko, Indika Nature,
Ilectra Motor Group, Xapiens, and Indika Energy Holding.
⚫ Indika Energy uses operational control to consolidate emissions data. Indika Energy consolidates the data from these subsidiaries quarterly through
the use of an internal ESG Dashboard [GRI 305-1].
⚫ The following Scope 1 emission factors were derived from DEFRA Greenhouse gas reporting. Conversion factors 2024 document [GRI 305-1]:
⚫ 100% mineral diesel: 0.00256 tCO2e per liter
⚫ B30: 0.00191 tCO2e per liter
⚫ B35: 0.00179 tCO2e per liter
⚫ Refrigerant R-410A: 1.924 tCO2e per kg
⚫ Refrigerant R-134A: 1.3 tCO2e per kg
⚫ Refrigerant R-32: 0.677 tCO2e per kg
⚫ Scope 2 emission factors are derived from the Indonesian Ministry of Energy and Mineral Resources: https://jdih.esdm.go.id/index.php/web/
result/2183/detail. Emission factors were selected based on the grid each operational site is connected to (e.g., Jamali, Mahakam, Barito, etc.) [GRI
305-2]
GHG EMISSIONS INTENSITY [GRI 305-4]
DESCRIPTION UNIT 2022 % 2023 % 2024
Production-based intensity (coal tCO2e 1,060,419 -7.79% 977,853 -10.38% 876,376
mining companies only)
million 36.57 -13.55% 31.61 -2.79% 30.73
ton coal
production
tCO2e/ 0.029 6.90% 0.031 -8.00% 0.029
ton coal
production
Revenue-based intensity tCO2e 1,160,762 -11.26% 1,030,009 -11.25% 914,519
(all subsidiaries)
USD 4,232 -27.95% 3,049 -19.73% 2.447
million
revenue
tCO2e/USD 274 23.36% 338 10.58% 374
million
production
Note:
⚫ 2024 figures of scope 1 and 2 GHG emissions data include Kideco, Indika Indonesia Resources, Tripatra, Interport, Masmindo, Mekko, Indika Nature,
Ilectra Motor Group, Xapiens, and Indika Energy Holding.
⚫ The intensity calculation includes gases CO2, CH4, and N2O, and covers Scope 1 and 2 GHG emissions. [GRI 305-4]
⚫ 2022 and 2023 production-based intensity parameters are calculated based on Kideco and MUTU (divested) data, whereas 2024 is based on Kideco
only.
⚫ 2022 to 2024 revenue-based intensity parameters include Kideco, Tripatra, Interport, Indika Indonesia Resources, Ilectra Motor Group, Xapiens,
Masmindo, Mekko, Indika Nature, and Indika Energy Holding.
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188
SIGNIFICANT AIR EMISSIONS [GRI 305-7]
DESCRIPTION UNIT 2022 % 2023 % 2024
NOx tons 516.04 33.67% 689.79 1.11% 697.45
SOx tons 1.48 50.68% 2.23 127.72% 5.08
Persistent organic pollutants tons 0.00 0.00% 0.00 100.00% 0.11
Volatile organic compounds tons 0.00 0.00% 0.00 100.00% 0.28
Hazardous air pollutants (HAP) tons 0.00 0.00% 0.00 100.00% 0.03
Particular matter (PM) tons 3.56 265.17% 13.00 -34.04% 8.58
Other standard categories tons 92.82 1.59% 94.30 -9.28% 85.55
of air emissions identified
in relevant regulations
Note:
⚫ The formula used to calculate exhaust gas emissions is concentration (mg/Nm3) x debit (m3/second) x no. of operational hours (hours/ year) x 0.0036
(seconds/hour). Calculations are done based on emissions testing conducted in the laboratory.
⚫ For 2022 data, the significant air emissions data includes numbers from Kideco and Petrosea (divested). Due to Petrosea divestment completion in
2022, the 2023 and 2024 data are from Kideco only.
⚫ Both the concentration and debit data are obtained from emissions test results done by the laboratory.
⚫ Other categories of air emissions, e.g. persistent organic pollutants (POP), volatile organic (VOC), etc., are not calculated yet, because they are not
included in the requirements of the aforementioned Ministerial Regulation.
ENERGY CONSUMPTION [GRI 302-1, 302-3, 302-4]
DESCRIPTION UNIT 2022 % 2023 % 2024
Renewable energy consumption GJ 4,276,513 15.45% 4,937,289 -5.49% 4,666,246
Non-renewable energy consumption GJ 11,136,943 -11.49% 9,857,355 -8.18% 9,051,022
Total energy consumption GJ 15,413,456 -4.01% 14,794,644 -7.28% 13,717,269
Note:
⚫ 2024 figures of energy emissions data include Kideco, Indika Indonesia Resources, Tripatra, Interport, Masmindo, Mekko, Indika Nature, Ilectra Motor
Group, Xapiens, and Indika Energy Holding.
⚫ Indika Energy consolidates the data from these subsidiaries quarterly through the use of an internal ESG Dashboard [GRI 302-1].
⚫ The following conversion factors were derived from DEFRA Greenhouse gas reporting: Conversion factors 2024 document [GRI 302-1]:
⚫ Electricity consumption: 0.0036 GJ per kWh
⚫ Fuel consumption:
⚫ 100% mineral diesel: 0.0357 per liter
⚫ B30: 0.0353 GJ per liter
⚫ B35: 0.0352 GJ per liter
⚫ For 2022 to 2024 data, the biodiesel blend in the B30 or B35 is factored into the renewable energy consumption calculation. Types of energy included
in the energy intensity ratio are biodiesel fuel, diesel fuel, solar power, and grid electricity.
⚫ Indika Energy has not calculated energy usage outside the company or reductions in energy requirements of sold products and services because of the
complexity of data and lack of access to data that are not under the company’s control. [GRI 302-2, 302-5]
ENERGY CONSUMPTION BY ACTIVITY SOURCE [GRI 302-1]
DESCRIPTION UNIT 2022 % 2023 % 2024
Fuel consumption GJ 15,384,883 -4.00% 14,769,736 -7.36% 13,683,293
Electricity consumption GJ 28,573 -12.83% 24,908 29.93% 32,364
Cooling, heating, and steam consumption GJ 0.00 0.00% 0.00 0.00% 0.00
Total energy consumption GJ 15,413,456 -4.01% 14,794,644 -7.28% 13,717,269
Note:
⚫ 2024 figures include Kideco, Indika Indonesia Resources, Tripatra, Interport, Masmindo, Mekko, Indika Nature, Ilectra Motor Group, Xapiens, and
Indika Energy Holding.
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
⚫ Indika Energy consolidates the data from these subsidiaries quarterly through the use of an internal ESG Dashboard [GRI 302-1].
⚫ The following conversion factors were derived from DEFRA Greenhouse gas reporting: Conversion factors 2024 document [GRI 302-1]:
⚫ Electricity consumption: 0.0036 GJ per kWh
⚫ Fuel consumption:
⚫ 100% mineral diesel: 0.0357 GJ per liter
⚫ B30: 0.0353 GJ per liter
⚫ B35: 0.0352 GJ per liter
ENERGY INTENSITY [GRI 302-3]
DESCRIPTION UNIT 2022 % 2023 % 2024
Production-based intensity (coal GJ 13,959,032 -0.47% 13,892,929 -5.79% 13,088,001
mining companies only)
million 36.57 -13.55% 31.61 -2.79% 30.73
ton coal
production
GJ/ton coal 0.38 15.13% 0.44 -3.09% 0.43
production
Revenue-based intensity (all subsidiaries) GJ 15,413,456 -4.01% 14,794,645 -7.28% 13,717,269
USD 4,232 -27.95% 3,049 -19.73% 2,447
million
revenue
GJ/USD 3,642 33.22% 4,852 15.50% 5,604
million
revenue
Note:
⚫ Energy intensity ratios use energy consumption within the organization in the calculation, and cover fuel and electricity only, as Indika Energy does
not have consumption from heating, cooling, and steam. [GRI 302-3]
⚫ 2022 to 2023 production-based intensity parameters are calculated based on Kideco and Indika Indonesia Resources data, whereas 2024 is based on
Kideco only.
⚫ 2024 revenue-based intensity parameters include Kideco, Tripatra, Interport, Indika Indonesia Resources, Ilectra Motor Group, Xapiens, Masmindo,
Mekko, Indika Nature, and Indika Energy Holding.
WATER AND EFFLUENTS
WATER WITHDRAWAL PERFORMANCE [GRI 303-3]
WATER WITHDRAWAL BY SOURCE UNIT 2022 % 2023 % 2024
Surface water ML 4,122.72 -40.22% 2,464.44 -38.80% 1,557.58
Ground water ML 10.42 76.49% 18.39 2,216.51% 426.01
Seawater ML 751.21 -58.16% 314.28 -94.04% 18.72
Produced water ML 0.00 0.00% 0.00 0.00% 0.00
Third party water ML 11.76 177.21% 32.60 -15.74% 27.47
Total water withdrawal ML 4,896.11 -42.20% 2,829.71 -28.27% 2,029.77
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190
DESCRIPTION UNIT 2022 % 2023 % 2024
BY TOTAL DISSOLVED SOLIDS CATEGORY
Freshwater (<= 1,000 mg/L TDS) ML 4,144.90 -39.31% 2,515.43 -20.05% 2,011.05
Other water (> 1,000 mg/L TDS) ML 751.21 -58.16% 314.28 -94.04% 18.72
Total water withdrawal ML 4,896.11 -42.20% 2,829.71 -28.27% 2,029.77
Water withdrawal intensity million 36.60 -13.66% 31.60 -2.74% 30.73
ton coal
production
ML/kiloton 0.11 -31.25% 0.08 -40.32% 0.05
coal
production
USD 4,307.00 -29.21% 3,049.00 -19.73% 2,447.45
million
revenue
ML/USD 1.14 -18.42% 0.93 -10.82% 0.83
million
revenue
Note:
⚫ 2022 water-related data is compiled based on Kideco, Petrosea (divested), Tripatra, MUTU (divested), and Interport. 2023 and 2024 figures include
Kideco, Tripatra, Interport, Indika Indonesia Resources, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika Energy Holding
⚫ While two of our operational areas are considered areas with water stress according to the World Resources Institute’s Aqueduct Water Risk Atlas, we
have not broken down our water performance data for these areas only.
WATER CONSUMPTION PERFORMANCE [GRI 303-5]
DESCRIPTION UNIT 2022 % 2023 % 2024
BY SOURCE
Freshwater (<= 1,000 mg/L TDS) ML 4,144.90 -39.57% 2,504.76 -19.54% 2,015.25
Other water (> 1,000 mg/L TDS) ML 736.44 -57.32% 314.28 -94.04% 18.72
TOTAL WATER CONSUMPTION ML 4,881.34 -42.25% 2,819.04 -27.85% 2,033.97
Note:
⚫ 2022 water-related data is compiled based on Kideco, Petrosea (divested), Tripatra, MUTU (divested), and Interport. 2023 and 2024 figures include
Kideco, Tripatra, Interport, Indika Indonesia Resources, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika Energy Holding
⚫ While two of our operational areas are considered areas with water stress according to the World Resources Institute’s Aqueduct Water Risk Atlas, we
have not broken down our water performance data for these areas only.
WATER DISCHARGE PERFORMANCE [GRI 303-4]
DESCRIPTION UNIT 2022 % 2023 % 2024
BY SOURCE
Surface water ML 317,801.31 -33.13% 212,512.66 3.34% 219,602.41
Ground water ML 6.72 -55.06% 3.02 718.54% 24.72
Seawater ML 3.61 8,054.57% 294.38 -99.50% 1.46
Third party water ML 0.00 100.00% 1.63 69.02% 2.76
TOTAL WATER DISCHARGE ML 317,811.64 -33.04% 212,811.69 3.20% 219,631.34
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
DESCRIPTION UNIT 2022 % 2023 % 2024
BY TOTAL DISSOLVED SOLIDS CATEGORY
Freshwater (<= 1,000 mg/L TDS) ML 317,808.03 -33.13% 212,515.68 3.35% 219.627.12
Other water (> 1,000 mg/L TDS) ML 3.61 8,099.72% 296.01 -99.07% 4.22
TOTAL WATER CONSUMPTION ML 317,811.64 -33.04% 212,811.69 3.20% 219,631.34
Note:
⚫ 2022 water-related data is compiled based on Kideco, Petrosea (divested), Tripatra, MUTU (divested), and Interport. 2023 and 2024 figures include
Kideco, Tripatra, Interport, Indika Indonesia Resources, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika Energy Holding
⚫ While two of our operational areas are considered areas with water stress according to the World Resources Institute’s Aqueduct Water Risk Atlas, we
have not broken down our water performance data for these areas only.
WASTE
WASTE GENERATED [GRI 306-3]
DESCRIPTION UNIT 2022 % 2023 % 2024
Hazardous waste tons 6,871.46 -37.08% 4,323.56 7.08% 4,630.16
Non-hazardous waste tons 12,751.92 -6.25% 11,955.50 -53.76% 5,528.88
TOTAL WASTE GENERATED TONS 19,623.38 -17.04% 16,279.07 -37.59% 10,159.04
HAZARDOUS WASTE BY MANAGEMENT METHOD [GRI 306-4, 306-5]
DESCRIPTION UNIT 2022 % 2023 % 2024
Reused tons 124.79 -97.12% 3.60 -100.00% 0.00
Recycled tons 267.30 92.38% 514.23 306.11% 1,085.52
Composted tons 0.00 0.00% 0.00 0.00% 0.00
Brought to a third party tons 3,146.61 5.75% 3,327.39 -5.31% 2,979.65
licensed to reuse/recycle
TOTAL WASTE DIVERTED
TONS 3,538.70 8.66% 3,845.22 14.88% 4,065.17
FROM DISPOSAL
Incinerated (with energy recovery) tons 0.00 0.00% 0.00 0.00% 0.05
Incinerated (without energy recovery) tons 68.67 -1.08% 67.93 -11.05% 61.08
Landfilled tons 0.00 0.00% 0.00 100.00% 0.53
Brought to a third party tons 3,263.89 -87.43% 410.41 -84.58% 503.33
licensed to dispose waste
TOTAL WASTE BROUGHT
TONS 3,332.56 -85.65% 478.34 -83.05% 564.99
TO DISPOSAL
Note:
⚫ 2022 waste-related data is compiled based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU (divested in 2024), and Interport. 2023 and 2024
figures include Kideco, Tripatra, Interport, Indika Indonesia Resources, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika
Energy Holding
⚫ Waste that is brought to a third party (both licensed to reuse/recycle and licensed to dispose) indicates that it is diverted or directed to disposal offsite,
while waste that is included in other categories indicates that it is diverted or directed to disposal onsite.
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NON-HAZARDOUS WASTE BY MANAGEMENT METHOD [GRI 306-4, 306-5]
DESCRIPTION UNIT 2022 % 2023 % 2024
Reused tons 3,514.62 0.00% 0.00 0.00% 0.00
Recycled tons 1,843.96 155.98% 4,720.11 -36.15% 3,013.71
Composted tons 198.00 0.00% 741.53 0.00% 164.99
Brought to a third party tons 6.66 996.55% 73.03 -5.75% 68.83
licensed to reuse/recycle
TOTAL WASTE DIVERTED
TONS 5,563.24 -0.51% 5,534.67 -41.32% 3,247.53
FROM DISPOSAL
Incinerated (with energy recovery) tons 0.00 0.00% 0.00 0.00% 55.40
Incinerated (without energy recovery) tons 0.00 0.00% 0.00 0.00% 0.00
Landfilled tons 2,271.68 0.00% 5,296.53 0.00% 2,163.31
Brought to a third party tons 4,916.00 -77.13% 1,124.30 -94.45% 62.42
licensed to dispose waste
TOTAL WASTE BROUGHT
TONS 7,187.68 -10.67% 6,420.83 -64.47% 2,281.13
TO DISPOSAL
Note:
⚫ 2022 waste-related data is compiled based on Kideco, Petrosea (divested), Tripatra, MUTU (divested), and Interport. 2023 and 2024 figures include
Kideco, Tripatra, Interport, Indika Indonesia Resources, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika Energy Holding
⚫ Waste that is brought to a third party (both licensed to reuse/recycle and licensed to dispose) indicates that it is diverted or directed to disposal offsite,
while waste that is included in other categories indicates that it is diverted or directed to disposal onsite.
BIODIVERSITY
LIST OF PROTECTED FAUNA RECORDED AT KIDECO RECLAMATION AREA [GRI 304-4]
STATUS BASED ON
LOCAL NAME SCIENTIFIC NAME
P 106 IUCN 2022 2023 2024
Bekantan kahau Nasalis larvatus Protected Endangered √ √ √
Beruang madu Helarctos malayanus Protected Vulnerable √ √
Kijang muntjak Muntiacus muntjak Protected Least concerned √ √ √
Kucing kuwuk Prionailurus bengalensis Protected Least concerned √ √
Lutung kelabu Trachypithecus cristatus Protected Near threatened √
Lutung merah Presbytis rubicunda Protected Least concerned √ √ √
Owa kalawat Hylobates muelleri Protected Endangered √ √ √
Pelanduk napu Tragulus napu Protected Least concerned √ √ √
Rusa sambar Rusa unicolor Protected Vulnerable √ √
Trenggiling peusing Manis javanica Protected Critically endangered √
Accipitridae Aviceda jerdoni Protected Least concerned √ √
Accipitridae Spizaetus cirrhatus Protected Least concerned √ √ √
Accipitridae Haliastur Indus Protected Least concerned √ √ √
Accipitridae Ictinaetus malayensis Protected Least concerned √ √
P T I N D I K A E N E R GY T B K .
Page 195
SUSTAI NABI LI TY REP O RT 2 0 2 4
STATUS BASED ON
LOCAL NAME SCIENTIFIC NAME
P 106 IUCN 2022 2023 2024
Accipitridae Elanus caeruleus Protected Least concerned √ √ √
Accipitridae Accipiter trivirgatus Protected Least concerned √ √
Accipitridae Haliaeetus leucogaster Protected Least concerned √
Bucerotidae Anthracoceros malayanus Protected Vulnerable √ √
Bucerotidae Anthracoceros albirostris Protected Least concerned √ √
Bucerotidae Buceros rhinoceros Protected Vulnerable √ √ √
Capitonidae Psilopogon australis Protected Near threatened √
Capitonidae Megalaima henricii Protected Near threatened √ √ √
Capitonidae Megalaima rafflesii Protected Vulnerable
Caprimulgidae Caprimulgus affinis Protected Endangered √ √ √
Chloropseidae Chloropsis sonnerati Protected Near threatened √ √ √
Chloropseidae Chloropsis cyanopogon Protected Vulnerable √
Eurylaimidae Cymbirhynchus Protected Least concerned √
macrorhynchos
Hirundinidae Hirundo tahitica Protected Near threatened √
Laniidae Lanius schach Protected Least concerned √ √ √
Megalaimidae Psilopogon mystacophanos Protected Near threatened √
Nectariniidae Cinnyris jugularis Protected Least concerned √ √ √
Pittidae Pitta sordida Protected Least concerned √ √
Pittidae Pitta baudii Protected Vulnerable √
Rhipiduridae Rhipidura javanica Protected Least concerned √ √ √
Sturnidae Acridotheres javanicus Protected Least concerned √ √
Trogonidae Harpactes orrhophaeus Protected Vulnerable √
Crocodylidae Crocodylus porosus Protected Least concerned √
193
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194
APPENDIX B: SOCIAL
OUR PEOPLE
NUMBER OF EMPLOYEES
GENDER [GRI 405-1]
2022 2023 2024
Male 3,169 2,908 3,084
Female 747 671 780
NUMBER OF EMPLOYEES
GENDER [GRI 405-1]
2022 2023 2024
Overall 19.08% 18.75% 20.19%
On the board 7.41% 6.98% 5.81%
DESCRIPTION [GRI 405-1] 2022 2023 2024
Male in senior management 117 121 127
Female in senior management 19 16 16
Women representation in 13.97% 11.68% 11.19%
senior management
NUMBER OF EMPLOYEES
AGE GROUP [GRI 405-1]
2022 2023 2024
<30 years old 835 1,083 1,184
30-50 years old 2,434 2,084 2,256
>50 years old 647 412 424
NUMBER OF EMPLOYEES
NATIONALITY [GRI 405-1]
2022 2023 2024
Indonesia 3,882 3,555 3,845
Bulgarian 1 1 1
Filipino 1 1 1
Indian 8 5 4
South Korean 7 5 3
Trinidad and Tobago 1 1 1
American 2 2 2
Australian 4 3 3
Singaporean 5 4 4
New Zealander 1 1 0
Canadian 1 1 0
Japanese 3 0 0
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
EDUCATIONAL BACKGROUND NUMBER OF EMPLOYEES
[GRI 405-1] 2022 2023 2024
Doctorate 4 4 9
Master’s degree 238 257 287
Bachelor’s degree 1,798 2,012 2,270
Associate degree 342 314 375
Elementary to high school 1,534 992 923
DESCRIPTION [GRI 2-7] PERMANENT TEMPORARY / CONTRACT WORKERS
Male 1,138 1,946
Female 374 406
Note:
⚫ It is not possible to categorize employees by work region as they may be assigned to projects in several locations.
WORKERS WHO ARE NOT EMPLOYEES [GRI 2-8] 2023 2024
Outsourced staff 1,572 1,847
Note:
⚫ The data on workers who are not employees was compiled using the headcount methodology with the cutoff date of December 31, 2024.
DIVERSITY OF GOVERNANCE BODIES [GRI 405-1]
2024
DESCRIPTION
NUMBER %
BY GENDER
Male 81 94.19%
Female 5 5.81%
BY AGE GROUP
<30 years old 0 0.00%
30-50 years old 36 41.86%
>50 years old 50 58.14%
NUMBER OF NEW HIRES [GRI 401-1] 2024
BY GENDER
Male 702
Female 210
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196
NUMBER OF NEW HIRES [GRI 401-1] 2024
BY AGE GROUP
<30 years old 427
30-50 years old 430
>50 years old 55
Note: It is not possible to categorize new hires by work region as they may be assigned to projects in several locations.
NUMBER OF EMPLOYEE TURNOVER [GRI 401-1] 2024
BY GENDER
Male 637
Female 210
BY AGE GROUP
<30 years old 299
30-50 years old 404
>50 years old 144
BY CATEGORY
Voluntary 252
Involuntary 595
Total 847
Note: It is not possible to categorize employee turnover by work region as they may be assigned to projects in several locations.
DESCRIPTION [GRI 401-3] MALE FEMALE
Total number of employees entitled to parental leave 2,089 391
Total number of employees that took parental leave 120 31
Total number of employees that returned 120 31
to work after paternal leave ended
Return to work late 0 0
TRAINING PARAMETERS
BY GENDER BY LEVEL
DESCRIPTION [GRI 404-1. 404-3] UNIT TOTAL
BOC BOD MGR
MALE FEMALE
EXEC BELOW
Total hours of training Hours 76,042 18,478 1,946 92,574 94,520
Average hours of training per employee Hours 24.66 23.69 13.61 24.88 24.46
Percentage of employees % 100% 100% 100% 100% 100%
receiving performance and
career development reviews
P T I N D I K A E N E R GY T B K .
Page 199
SUSTAI NABI LI TY REP O RT 2 0 2 4
INCIDENTS RELATED TO DISCRIMINATION
STATUS OF DISCRIMINATION
2022 2023 2024
INCIDENTS [GRI 406-1]
Incidents reviewed by the organization 0 0 4
Remediation plans being implemented 0 0 4
Remediation plans have been 3 0 0
implemented and results reviewed
through routine internal
management review processes
Incident no longer subject to action 0 0 0
Total number of incidents 3 0 4
HEALTH AND SAFETY
HEALTH AND SAFETY TOTAL
PARAMETERS [GRI 403-9, 403-10]
2022 2023 2024
FOR EMPLOYEES:
No. of fatality 0 0 1
No. of lost time injuries 3 0 6,001
No. of recordable injuries 14 2 12
No. of high consequence injuries 7 0 0
No. of hours worked 58,643,037 30,603,127 9,507,340
Lost Time Injury Rate 0.01 0.00 631.20
Total Recordable Injury Rate 0.05 0.01 0.25
FOR CONTRACTORS:
No. of fatality 1 2 0
No. of lost time injuries 6,096 12,188 1
No. of recordable injuries 23 8 24
No. of high consequence injuries 5 2 0
No. of hours worked 55,883,600 58,606,276 56,559,444
Lost Time Injury Rate 21.82 41.59 0.02
Total Recordable Injury Rate 0.08 0.03 0.08
Note:
⚫ 2022 health and safety data are compiled based on Kideco, Petrosea (divested), Tripatra, MUTU (divested), and Interport. 2023 and 2024 figures
include Kideco, Tripatra, Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika
Energy Holding.
197
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198
HUMAN RIGHTS
UNIONIZED EMPLOYEES IN INDIKA ENERGY BY GENDER
NUMBER OF UNIONIZED EMPLOYEES
GENDER
2023 2024
Male 369 340
Female 31 30
Note:
⚫ Currently only employees from Kideco participate in labor unions
INCIDENTS RELATED TO RIGHTS OF INDIGENOUS PEOPLES [GRI 411-1]
STATUS OF INCIDENTS INVOLVING
2022 2023 2024
RIGHTS OF INDIGENOUS PEOPLES
Incidents reviewed by the organization 0 0 0
Remediation plans being implemented 0 0 0
Remediation plans have been implemented 0 0 0
and results reviewed through routine internal
management review processes
Incident no longer subject to action 0 0 0
Total number of incidents 0 0 0
P T I N D I K A E N E R GY T B K .
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SUSTAI NABI LI TY REP O RT 2 0 2 4
APPENDIX C: GOVERNANCE
BUSINESS ETHICS
RISK ASSESSMENT AND COMMUNICATIONS RELATED TO ANTI-CORRUPTION IN INDIKA ENERGY [GRI 205-1, 205-
2]
2024
DESCRIPTION
NUMBER %
Operations assessed for risks related to corruption 12 100%
Governance bodies that have been communicated to 88 96.7%
and trained on anti-corruption policies and procedures
Employees who have been communicated to 3,864 100%
on anti-corruption policies and procedures
Employees trained in anti-corruption 3,864 100%
Note:
⚫ Data on the number of employees and governance bodies receiving communication or training on anti-corruption policies and procedures is not
broken down by employee category and region due to unavailability of data and the inability to categorize some employees by region as they work in
different locations.
INCIDENTS RELATED TO CORRUPTION IN INDIKA ENERGY [GRI 205-3]
DESCRIPTION 2023 2024
Incidents of corruption 0 1
Incidents in which employees were dismissed for corruption 0 0
Incidents of business partners’ contracts being 0 0
terminated due to violations related to corruption
Public legal cases brought against the 0 0
company or its employees
WHISTLEBLOWING REPORTS AND INCIDENTS OF NON-COMPLIANCE IN INDIKA ENERGY [GRI 2-27, 205-3, 2-16]
DESCRIPTION 2022 2023 2024
Whistleblowing reports received 10 2 12
Instances of non-compliance with laws and regulations 0 0 0
Fines for non-compliance with laws and regulations 0 0 0
Monetary value of fines for non-compliance 0 0 0
with laws and regulations (in USD)
Note:
⚫ The 2022 data is compiled based on reports from Kideco, Petrosea (divested), Tripatra, MUTU (divested), and Interport. The 2023 and 2024 figures are
based on whistleblowing reports from the Indika Energy Group, collected through the Indika Energy whistleblowing system.
199
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CONTACT US
Our Sustainability Report 2024 forms part of Indika Energy’s annual Environmental,
Social, and Governance (ESG) communications [GRI 2-3]. This Report includes
information provided in our Annual Report 2024, detailing how we address the most
material sustainability risks and opportunities we faced during the year. [GRI 3]
We also publish our ESG performance through other corporate publications
as well as making regular updates on our activities via our website and social
media platforms. Since 2022, we also publish the UNGC Communication
on Progress Report as part of our commitment as an UNGC signatory.
PT Indika Energy Tbk.
Graha Mitra, 3rd Floor
Jl. Jend. Gatot Subroto Kav. 21
Jakarta 12930, Indonesia
sustainability@indikaenergy.co.id
www.indikaenergy.co.id
indika.energy
Indika Energy
Page 203
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Names mentioned 97 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Ministry of Environment and Forestry
p.17
unresolved
org
PT Kideco Jaya Agung
p.23 ×4
unresolved
org
PT Indika Indonesia Resources
p.23 ×2
unresolved
org
PT Tripatra Engineering
p.23 ×4
unresolved
org
PT Tripatra Engineers
p.23 ×3
unresolved
org
PT Interport Mandiri Utama
p.23 ×2
unresolved
org
PT Masmindo Dwi Area
p.23 ×2
unresolved
org
PT Mekko Metal Mining
p.23 ×3
unresolved
org
PT Indika Multi Properti
p.23 ×3
unresolved
org
PT Ilectra Motor Group
p.23 ×3
unresolved
org
PT Kalista Nusa Armada
p.23 ×2
unresolved
org
PT Energi Makmur Buana
p.23 ×3
unresolved
org
PT Xapiens Teknologi Indonesia
p.23
unresolved
org
INDIK A ENERGY TBK.
p.42 ×18
unresolved
org
PT Indika Inti Corpindo
p.44
unresolved
org
PT Tripatra Multi Energi Infrastructure
p.44
unresolved
org
PT Indika Tenaga Baru
p.44
unresolved
org
PT Interport
p.44 ×5
unresolved
org
PT Indika
p.44 ×3
unresolved
org
PT Sumber Multi
p.44
unresolved
org
PT Interport Multi Indika Capital
p.44
unresolved
org
Niaga Investments Pte.Ltd.
p.44
unresolved
org
PT Indika Empat
p.44
unresolved
org
PT Sea Bridge Shipping
p.44
unresolved
org
PT Mitra Indika Energy
p.44
unresolved
org
Baruna Nusantara Trading Pte.Ltd.
p.44
unresolved
org
PT Indika Multi
p.44
unresolved
org
PT Indika Infrastruktur
p.44
unresolved
org
Investments Pte.Ltd
p.44
unresolved
org
PT Prasarana
p.44 ×2
unresolved
org
PT Cirebon
p.44 ×3
unresolved
org
Investments Limited
p.44
unresolved
org
PT Kariangau Gapura
p.44
unresolved
org
PT Kuala
p.44
unresolved
org
Terminal Energi Pte. Ltd.
p.44
unresolved
org
PT Jatim Gapura Indika Capital
p.44
unresolved
org
Terminal Energi Resources Limited
p.44
unresolved
org
PT Pahala
p.44
unresolved
org
PT Citra Indah Prima
p.44
unresolved
org
PT Indika Medika
p.45
unresolved
org
PT Indy Properti Mineral Investindo
p.45
unresolved
org
PT Genomik Solidaritas
p.45
unresolved
org
PT Jaya Bumi Paser
p.45 ×2
unresolved
org
PT Diva Perdana
p.45
unresolved
org
PT Foxconn
p.45
unresolved
org
PT Bioneer Salu Siwa Pty. Ltd.
p.45
unresolved
org
Capital IV Pte.Ltd.
p.45
unresolved
org
PT Bioneer
p.45
unresolved
org
PT Masmindo
p.45
unresolved
org
PT Telaga Mas
p.45
unresolved
org
PT Elang Mas Andalan Dwi Area
p.45
unresolved
org
PT Indika Digital Teknologi
p.45
unresolved
org
PT Rockgeo
p.45
unresolved
org
PT Laras
p.45
unresolved
org
PT Kalista Nusa
p.45
unresolved
org
PT Zebra Cross Swapping Station Wholesale Trading
p.45
unresolved
org
PT Indika Logistic
p.45
unresolved
org
PT Perkasa
p.45 ×2
unresolved
org
PT Kalista
p.45
unresolved
org
PT Natura
p.45 ×2
unresolved
org
PT Xapiens Teknologi
p.45
unresolved
org
PT Kalista Nayara
p.45
unresolved
org
PT Interport Sarana
p.45
unresolved
org
Electric Ventures Pte.Ltd.
p.45
unresolved
org
PT Kalista Soter
p.45
unresolved
org
PT Batu Ampar
p.45
unresolved
org
PT Electra
p.45 ×3
unresolved
org
PT Narada Sahara Container Terminal
p.45
unresolved
org
PT Kalista Biru Nusantara
p.45
unresolved
org
PT Cotrans Asia
p.45
unresolved
org
PT TRIPATRA
p.48
unresolved
org
PT MEKKO METAL MINING ENGINEERS AND CONSTRUCTORS
p.48
unresolved
org
PT EMPAT MITRA INDIKA TENAGA SURYA
p.48 ×2
unresolved
org
PT INTERPORT MANDIRI UTAMA I N T E
p.48
unresolved
org
PT KALISTA NUSA ARMADA I N D I
p.49
unresolved
org
PT Telaga Mas Kalimantan
p.49
unresolved
org
PT Natura Aromatik Nusantara
p.49
unresolved
org
PT Laras Ekosistem Organik
p.49
unresolved
org
PT ILECTRA MOTOR GROUP I M G D
p.49
unresolved
org
PT XAPIENS TEKNOLOGI INDONESIA A C C E
p.49
unresolved
org
Ministry of Environment and Forestry Regulation
p.56
unresolved
org
Indonesia Stock Exchange
p.56
unresolved
person
H. Lista Kusnadi
p.60
unresolved
org
Financial Services Authority
p.64
unresolved
org
India’s Fourth Partner Energy Ltd.
p.78
unresolved
org
Ministry of Energy and Mineral Resources
p.87
unresolved
org
Menteri LHK No. P.
p.99
unresolved
org
Menteri LHK
p.109
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