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2023 SUSTAINABILITY
R E P O R T
EXPANDING OUR
HORIZONS
PT Medco Energi Internasional Tbk
The Energy Building 53rd Floor
SCBD Lot 11A
Jl. Jend. Sudirman, Jakarta 12190
Indonesia
P. +62-21 2995 3000
F. +62-21 2995 3001
Website : www.medcoenergi.com
Page 2
ISSN 2962-4606 • Volume 12 No. 1 • May 2024
EXPANDING OUR
HORIZONS
2023 SUSTAINABILITY
R E P O R T
PT Medco Energi Internasional Tbk
Page 3
ISSN 2962-4606 • Volume 12 No. 1 • May 2024
MedcoEnergi employees participating in Medco & I - Two Trees programme.
Author: Address:
MedcoEnergi 2023 Sustainability PT Medco Energi Internasional Tbk
Report Team The Energy Building 53rd Floor
SCBD Lot 11A
ISSN: Jl. Jend. Sudirman, Kav. 52-53
ISSN 2962-4606 Jakarta 12190, Indonesia
Tel. : (62-21) 2995 3000
Editor: Fax. : (62-21) 2995 3001
For further information, MedcoEnergi Corporate Sustainability www.medcoenergi.com
please visit & Risk Management Division
www.medcoenergi.com
Cover & Layout Design: First printing, May 2024
Cover picture left to right: PT Axioma Grafis Indonesia
North Belut platform, South Natuna Sea All Rights Reserved.
Block B, Indonesia; Block 60, Oman; Solar Publisher:
PV panels, Sumbawa Island, Indonesia. PT Medco Energi Internasional Tbk
II PT Medco Energi Internasional Tbk 2023 Sustainability Report
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Expanding
Our Horizons
In 2023, we continued our journey to strengthen our international position and solidify our domestic leadership. The Oman acquisition
and the Corridor PSC extension both provide a platform for further upside and greater value to shareholders. We expanded our energy
transition commitment with the development of the Ijen geothermal project and made good progress on our Solar PV projects. The
Amman Mineral Internasional (AMMN-IDX) Initial Public Offering was also extremely successful1.
Our dedication to environmental, social and governance initiatives and commitment to sustainability are well recognised by
international ESG rating agencies. To maintain this trajectory, we continue to set ourselves challenging targets to improve operational
excellence, safety and financial performance and our community contribution, in order to position MedcoEnergi as a leading
sustainable energy company and one of Southeast Asia’s largest independent energy companies.
We support the Sustainable Development Goals
MedcoEnergi is a co-founder of the Indonesia
Business Council for Sustainable Development, the
Indonesian chapter of the World Business Council
for Sustainability Development (WBCSD)
As of 2023, PT Medco Energi Internasional Tbk received an PT Medco Energi International Tbk’s ESG Risk
MSCI ESG Rating of A. Rating places it the 8th percentile in the Oil & Gas
Producers industry and 9th percentile in the Oil
Disclaimer Statement & Gas Exploration and Production subindustry
The use by PT Medco Energi assessed by Sustainalytics
Internasional Tbk of any MSCI ESG
Research LLC or its affiliates (“MSCI”) Copyright ©2024 Sustainalytics. All rights
data, and the use of MSCI logos, reserved. This Sustainability Report contains
trademarks, service marks or index information developed by Sustainalytics
names herein, do not constitute (www. sustainalytics. com). Such information
a sponsorship, endorsement, and data are proprietary of Sustainalytics and/
recommendation, or promotion of or its third party suppliers (Third Party Data) and
PT Medco Energi Internasional Tbk by are provided for informational purposes only.
MSCI. MSCI services and data are the They do not constitute an endorsement of any
property of MSCI or its information product or project, nor an investment advice
providers, and are provided ‘as-is’ and and are not warranted to be complete, timely,
without warranty. MSCI names and accurate or suitable for a particular purpose.
logos are trademarks or service marks Their use is subject to conditions available at
of MSCI. https://www.sustainalytics.com/legal-disclaimers.
1 Considering the non-controlling nature of our interest, we do not include AMMN Environmental, Social and Governance (ESG) activities in this Sustainability Report.
2023 Sustainability Report PT Medco Energi Internasional Tbk 1
Page 5
The Energy Building, Jakarta, Indonesia
Page 6
About
This Report
MedcoEnergi publishes an annual Sustainability Report KAP PSS - EY’s Limited Assurance Statement
to communicate the Company’s policies and approach to
sustainable development and to disclose its economic, social, Scope and Limited Assurance of Sustainability
environmental and governance performance. Report
MedcoEnergi engaged KAP PSS - EY to undertake limited
This report covers MedcoEnergi’s activities and performance assurance over selected disclosures in the sustainability report.
per material topic between the period of 1 January and 31 The Subject Matter for KAP PSS - EY’s limited assurance
December 2023 and provides progress updates on the action engagement for the year 2021, 2022 and 2023 was limited to:
plans established to achieve our short, medium and long term • A selection of 96 non-financial performance indicators
sustainability objectives. A summary of the achievements and (‘Selected Performance Information’) contained in the
challenges for 2023 can be found on page 24. sustainability report (www.medcoenergi.com/en/subpagelist/
view/36).
This report was prepared in accordance with the 2021 Global • The consolidated performance metrics relating to the Selected
Reporting Initiative (GRI) Standards and its subsequent Performance Information, presented in the sustainability
updates and demonstrates the linkage between MedcoEnergi’s report.
sustainability performance and the United Nations’ Sustainable
Development Goals. Unless otherwise stated we use definitions KAP PSS - EY’s Conclusion Statement
as set out in the GRI Standards. The GRI Performance Data and MedcoEnergi engaged KAP PSS - EY to undertake a limited
GRI Index are accessible through this link: www.medcoenergi. assurance as defined by Standards on Assurance Engagement
com/en/subpagelist/view/36 or through MedcoEnergi’s website: (SAE) 3000 (Revised 2022) (Assurance Engagements Other
www.medcoenergi.com. than Audits or Reviews of Historical Financial Information)
established by the Indonesian Institute of Certified Public
Please contact investor.relations@medcoenergi.com for queries Accountants (IICPA) over selected sustainability disclosures
related to the report. in the sustainability report as disclosed in the Appendix 1 of
KAP PSS - EY’s independent practitioner’s limited assurance
Reporting Assurance report. Based on KAP PSS - EY’s procedures and the evidence
The number of data indicators disclosed and assured by KAP obtained, nothing has come to KAP PSS - EY’s attention that
Purwantono, Sungkoro & Surja (A member firm of Ernst & Young causes KAP PSS - EY to believe that the accompanying Subject
Global Limited, or 'KAP PSS - EY') has increased from 93 in 2022 Matter Information is not prepared and presented, in all material
to 96 in this 2023 report. The Company will continue to enhance respects, in accordance with the Criteria.
disclosure and increase the number of assured indicators once
reliable and consistent data collection can be maintained across KAP PSS - EY’s independent practitioner’s limited assurance
reporting units. report to the Management of MedcoEnergi is available in the
company’s website (www.medcoenergi.com/en/subpagelist/
view/36).
2023 Sustainability Report PT Medco Energi Internasional Tbk 3
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Table of
Contents
01
Messages from
02
Our Year
03
About
Management in Summary MedcoEnergi
8 Message from the Chairwoman 16 Improving Our Economic 22 MedcoEnergi in Brief
Performance
10 Letter from the Board 24 2023 Sustainability
17 Enhancing Our Environmental Performance at a Glance
Safeguards 25 Vision, Mission, and Corporate
18 Supporting Our Communities Values
28 Business at a Glance
30 Supply Chain Management
33 Economic Performance
04
Our Approach to
05
Pursuing Excellence
06
Enhancing Our
Sustainability in Our Governance Environmental and
Social Safeguards
36 MedcoEnergi’s Three Pillars of 52 Approach, Commitment, and 84 Approach, Commitment, and
Sustainability Goals Goals
38 Journey to Sustainability 53 Good Corporate Governance 84 Sustainability Assessment
46 Engaging Our Stakeholders 54 MedcoEnergi Code of Conduct 87 Health, Safety, and
Environment Management
48 MedcoEnergi Memberships 55 Corporate Governance
System (HSEMS)
Structure
88 Performance Rating
58 Risk Management
Programme in Environmental
59 Corporate Governance Management (PROPER)
Assurance Framework,
88 Environmental Management
Programmes and Policies
and Monitoring Programme
74 Whistleblowing Channel
98 Biodiversity Conservation
75 Transparency in Payment to
102 Social Management System
Government
(SMS)
75 Anti-Corruption Collective
105 Alignment of Sustainability
Action
Initiatives with UN SDGs
77 Public Policy
106 Action Plan
78 Alignment of Sustainability
Initiatives with UN Sustainable
Development Goals (SDGs)
79 Action Plan
4 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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07
Realising Our Climate
08
Creating Opportunities
09
Empowering Our People
Aspirations for Communities Building a Resilient
Business
110 Approach, Commitment, and 138 Approach, Commitment, and 170 Approach, Commitment, and
Goals Goals Goals
114 Our Journey in Climate Business 140 Supporting Community 171 Our Employees
Integration Livelihoods 173 Initiatives to Empower Our
115 Assessing Our Climate-related 160 Measuring and Evaluating Our People
Risks and Opportunities Impact 181 Alignment of Sustainability
118 Our Environmental Footprint at 164 Emergency and Disaster Relief Initiatives with UN SDGs
a Glance Initiatives 182 Action Plan
120 Emissions Reduction 164 Alignment of Sustainability
128 Transition to Low Carbon Initiatives with UN SDGs
Energy 166 Action Plan
130 Emerging Physical Climate Risk
Management
132 Alignment of Sustainability
Initiatives with UN Sustainable
Development Goals SDGs
133 Action Plan
10
Advancing Our Health Appendix
and Safety Culture
186 Approach, Commitment, and 208 2023 Awards
Goals 211 OJK Sustainability Reporting
186 Operational Excellence Standards and Requirements
(SEOJK No. 16/2021)
190 Our Health, Safety, and
Environment Management 213 Singapore Exhange (SGX) Index
System (HSEMS) 215 Acronym and Abbreviations
194 Health and Safety Performance 219 Feedback Form
197 Key Programmes and Initiatives
205 Alignment of Sustainability
Initiatives with UN SDGs
205 Action Plan
2023 Sustainability Report PT Medco Energi Internasional Tbk 5
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Messages from
Management
8 Message from the Chairwoman
10 Letter from the Board
Kerisi Platform, South Natuna Sea Block B, Indonesia
6 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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01 2023 Sustainability Report PT Medco Energi Internasional Tbk 7
Page 11
Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
Messages from
the Chairwoman
Yani Y. Panigoro
President Commissioner
8 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
Last year, 2023 was the warmest year on record where global In 2023, our acquisition of two oil and gas blocks in Oman
temperatures rose to around 1.4 degrees Celsius above the welcomes unique and diverse perspectives and capabilities into
19th-century pre-industrial revolution1 average temperatures. our portfolio and provides a platform to expand our sustainability
This highlights the urgency for nations to meet their Paris practices.
Agreement’s climate commitments, limiting global warming to
well below 2 degrees Celsius and pursuing efforts to limit to 1.5 Establishing strategic partnerships is instrumental in addressing
degrees Celsius2. our climate challenges. For this reason, we continued to
expand our partnerships with governments, financial services,
The 2023 United Nations Framework Convention on Climate universities, non-governmental organisations (NGOs) and
Change (COP28) emphasises that nations must ratchet up their professional associations to support our initiatives. For example,
climate actions. Moreover, the COP28 just transition3 resolution we actively provided feedback to the government for the
underlines the need to balance low-carbon transition and establishment of emerging climate change-related regulations
development targets to ensure the sustainability, affordability, through the Indonesian Petroleum Association and Indonesian
and accessibility of energy. Renewable Energy Society. The increasing engagements
with financial services have also enabled us to present our
Energy is a catalyst for sustainable development. As a leading sustainability initiatives and climate change strategies as well
energy and natural resources company in Southeast Asia, as explain our support for the Governments and communities
MedcoEnergi continuously explores opportunities to expand our where we operate.
horizons. We are positioned to play a pivotal role in supporting
climate action, energy transition, and contributing to Indonesia MedcoEnergi is dedicated to playing a proactive role in the supply
Emas 20454. We will continue to leverage our expertise to meet of energy. Our vision extends beyond meeting the immediate
the energy demands in the region. demands as we aspire to foster sustainable growth, embrace
diversity, and sustain long-term value creation. Together with
Our Climate Change Strategy guides our business in executing our partners and stakeholders, we will continue to expand our
our decarbonisation and energy transition, which is in line with horizons to contribute to a sustainable and responsible future.
the Government of Indonesia (GOI)’s Enhanced Nationally
Determined Contribution (NDC) and key outcomes from COP28.
In 2023, we continued to translate our climate aspirations into
action by reducing greenhouse gas (GHG) emissions, expanding
our renewable energy portfolio, developing organisational
capabilities, and conducting a quantitative Climate Change Risk
Assessment (CCRA). We also consider the human rights and
social implications of our efforts to respond to climate change
risks and opportunities for a just energy transition. In fact, this
has become one of the drivers in implementing our Human
Rights Policy.
Yani Y. Panigoro
President Commissioner
1 National Aeronautics and Space Administration (NASA), 2023.
2 UNFCCC Paris Agreement https://unfccc.int/most-requested/key-aspects-of-the-paris-agreement
3 Outcome of the First Global Stocktake from the COP28, United Nations Framework Convention on Climate Change, 2023
4 Indonesia Emas 2045 is the Government of Indonesia (GOI)’s ambition to propel the country into the ranks of the world’s top five economies by 2045. Further reading: https://
indonesia2045.go.id/
2023 Sustainability Report PT Medco Energi Internasional Tbk 9
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Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
Letter from
the Board
Anthony R. Mathias Ronald Gunawan Hilmi Panigoro Roberto Lorato Amri Siahaan
Director & Chief Financial Officer Director & Chief Operating Officer President Director Director & Chief Executive Officer Director & Chief Administrative Officer
10 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
“ At MedcoEnergi, we believe that
diversity brings opportunities
into our business. This strength
has enabled us to proactively
deliver sustainable energy.
In doing so, we are committed
to conducting our business
with integrity, guided by our
Corporate Values, policies,
“
and climate aspirations.
Expanding our Horizon
In pursuit of a low-carbon future, COP28 acknowledges the role
of transitional fuels in facilitating the transition and ensuring
energy security. Our recent acquisition of 20% non-operating
interest in the producing Block 60 and exploration Block 48
in Oman contributes to our opportunities to have low-cost oil
production with advantageous contractual terms and significant
oil and gas growth. We obtained a Production Sharing Contract
(PSC) amendment from the Government of Indonesia for all
the Corridor’s assets in Sumatra that will support the further
development of domestic and export gas.
Driving Performance and Industry Leadership
Following the double materiality assessment in 2022, we have
established our Sustainability Roadmap, KPIs and Targets for
2023-2027. These updates prove that we are adaptable to the
ever-evolving sustainability landscape, allowing us to respond
effectively to emerging challenges and opportunities that align
with the industry’s best practices.
Recognising that industry leadership hinges on a skilled
workforce, we emphasise the importance of capacity building.
In 2023, we therefore expanded our efforts to include more
employees, strengthening the technical capabilities of our
Climate Change and Energy Transition Working Groups
responsible for implementing our climate aspirations. Our efforts
extended to delivering training, familiarisation, and awareness
campaigns on key sustainability and climate change concepts.
2023 Sustainability Report PT Medco Energi Internasional Tbk 11
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Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
Our continued improvements to our sustainability performance To better understand the impacts of climate change on our
have been recognised by our key stakeholders. The Sustainalytics1 operations, we conducted a quantitative Climate Change Risk
score improved to 29.6 from 36.7 and we are at the 23rd among Assessment (CCRA) for two Oil & Gas assets: Block A and JOB
307 oil and gas producer companies , and we maintained 2
Tomori. This assessment aligns with the recommendations
an A for MSCI ESG Rating3 from the previous year. The CDP4 from the Task Force on Climate-related Financial Disclosures
Climate Change score of B places our performance at par with (TCFD) and requirements of the Equator Principles 4 (2020) on
average in the oil and gas extraction and production sectors, and CCRA. It used climate data sources and scenarios from reputable
higher than all the other Asia and Global sectors. The awards we organisations such as the Intergovernmental Panel on Climate
received in 2023 underscore our commitment to uphold ethical Change (IPCC) and the International Energy Agency (IEA). The
business practices, environmental and social stewardship, and findings will inform an action plan, thus ensuring effective
our ongoing efforts to empower our local communities. mitigation against climate-related risks. We intend to expand
this assessment to include other assets in our portfolio in 2024.
Empowering Our People
Preserving MedcoEnergi’s strong governance and ethical culture Continual Performance Improvement
is crucial to both empower our people and achieve a sustainable In 2023, we continued to implement our Health Safety
future. In 2023, we introduced a standalone Corporate Human and Environmental Management System (HSEMS), Social
Rights Policy that builds upon existing Human Rights-related Management System and Security Management System. We
policies and practices, and secured an ISO 37001:2016 Anti- manage and mitigate potential environmental and social risks
Bribery Management Systems accreditation for our Corridor through our Sustainability Assessment. These robust frameworks
assets. are operational necessities.
Our recent Employee Engagement Survey had a notable 92% Our commitment to maintain a world-class Health, Safety and
participation rate. This also testifies to our commitment to Environment (HSE) performance is proven by our 2023 Total
understand and meet the needs of a diverse organizational Recordable Incident Rate (TRIR) of 0.15, which improved notably
culture from past acquisitions. The review of results and action from last year’s 0.21 and down from 0.56 in 2019. Nevertheless,
plans development are in progress. This survey aims to shape an we acknowledge that incidents related to routine activities still
inclusive, supportive, and positive workplace for all MedcoEnergi occur. These occurrences have provided us with valuable lessons,
employees, which we believe is essential to drive both innovation prompting us to enhance our hazard identification programmes
and collaboration. and raise awareness, ensuring that our commitment remains
resolute.
Building Climate Resilience
MedcoEnergi remains steadfast in translating our climate
aspirations into action. In our oil & gas assets, we continued
reducing GHG emissions through switching to low carbon
electrification, operational improvements and better energy
efficiency. In addition, some of our onshore and offshore facilities
have been equipped with solar PV. We have also embraced
nature-based solutions (NBS) through initiatives like Medco
& I - Two Tree5 to promote environmental sustainability and
biodiversity conservation. As part of carbon removal measures,
we are exploring Carbon Capture and Storage (CCS) and Carbon
Capture, Utilisation, and Storage (CCUS) technologies as part of
our roadmap to net zero.
1 Sustainalytics measures a company’s exposure to industry specific ESG risks and their approach to managing those risks (www.sustainalytics.com).
2 Sustainalytics ESG Risk Rating status as of 1 November 2023.
3 MSCI ESG Ratings measure a company’s management of long-term, financially relevant ESG risks and opportunities. Companies are rated on a scale of AAA to CCC (www.msci.com).
4 Formerly the Carbon Disclosure Project, CDP is an international non-profit organisation that helps companies and cities disclose their environmental impact (www.cdp.net).
5 Medco & I - Two Tree is a movement that inspires our Employees and Contractors to plant or adopt minimum two trees, as part of our collaborative action for a sustainable future.
12 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
Forging Partnerships As we reflect on the milestones and challenges encountered in
In 2023, we increased our online and in person engagement with 2023, we would like to express our gratitude to our stakeholders,
banks, investors and insurance companies in key financial hubs employees, and business partners, whose unwavering support
such as Singapore, Hong Kong and London. Our interactions with has been instrumental to MedcoEnergi’s growth. Recognising
them provided invaluable insights into how our sustainability the path that lies ahead, our commitment to sustainability,
performance and ambitions are perceived by our stakeholders. innovation, and industry leadership remains resolute. Our path
involves not just meeting the demands of the present but also a
A notable achievement during this period was the Singaporean future that fosters long-term well-being.
government’s principal approval of an import license for a
600-megawatt solar photovoltaic (PV) project located in Pulau
Bulan. The project is a consortium between Medco Power,
PacificLight Power1 and Gallant Venture2. This collaboration is
part of our proactive efforts to shape a sustainable future, not
only for the company but also for the broader energy landscape
in the region. Further renewable energy advances are being
made by the development of Ijen Geothermal Power Plant in
partnership with Ormat3.
Hilmi Panigoro Roberto Lorato
President Director Director & Chief Executive Officer
1 PacificLight is an electricity retailer based in Singapore.
2 Gallant Venture Ltd. is an investment holding company with focus on regional growth opportunities, headquartered in Singapore.
3 Ormat Technologies, Inc. is an international company based in Reno, Nevada, United States, that supplies alternative and renewable geothermal energy technology.
2023 Sustainability Report PT Medco Energi Internasional Tbk 13
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Our Year
In Summary
16 Improving Our Economic Performance
17 Enhancing Our Environmental Safeguards
18 Supporting Our Communities
MRPR Solar Panel, Batam, Indonesia
14 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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02 2023 Sustainability Report PT Medco Energi Internasional Tbk 15
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Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
Improving Our
Economic Performance
As a leading Southeast Asian energy natural resources company, we strive to build long-term value for our stakeholders by conducting
our business with the utmost integrity and transparency.
2021 2022 2023
94 mbopd 163 mbopd 160 mbopd
Oil & Gas Oil & Gas Oil & Gas
Production1
2,718 GWh 3,993 GWh 4,155 GWh
Total IPP Sold Total IPP Sold Total IPP Sold
Revenue2 1,252,106,573 2,312,227,602 2,249,337,578
(USD)
Net Profit/(Loss)2 47,019,404 530,882,676 330,675,261
(USD)
109,361,475 (66%) 157,045,120 (83%) 198,269,182 (80%)
Indonesia Indonesia Indonesia
Third Party Supplier Breakdown3
(USD)
55,308,644 (34%) 33,105,393 (17%) 49,873,090 (20%)
International International International
Sumbawa Solar PV Project
26 MWp, solar PV facility
Cibalapulang and Pusaka Parahiangan Mini Hydropower
New and Renewable Energy Products Two 9 MW mini-hydropower plants in West Java
Sarulla Geothermal Project
330 MW geothermal power plant located in North Sumatra
2021 2022 2023
Oil & Gas Production Target 94–95 160 160
(mbopd)
Realisation 94 163 160
Oil & Gas Capital Expenditure Target 150 250 250
(million USD)
Realisation 83 269 261
Power Sales Target 2,700 4,000 4,000
(in GWh)
Realisation 2,718 3,993 4,155
Power Capital Expenditure Target 65 80 80
(million USD)
Realisation 31 33 72
1 Production figures are net working interest and aligned with the MedcoEnergi 2023 Annual Report.
2 Based on Indonesia Statement of Financial Accounting Standards.
3 Based on third-parties Trade Payable data.
16 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
Enhancing Our
Environmental Safeguards
Our environmental safeguards include managing our greenhouse gas emissions, energy usage, and resource consumption to minimize
environmental impact and protect the surrounding biodiversity. Further details regarding our efforts can be read in Chapter 6 and 7.
2021 2022 2023
Emissions (Scope 1 and Scope 2) 4.6 (↓3%) 4.4 (↓5%) 4.2 (↓3%)
(million tCO2e) Oil & Gas Oil & Gas Oil & Gas
0.9 (↑10%) 1.4 (↑59%) 1.4 (↑4%)
Power Power Power
Energy Consumption 36.6 (↑5%) 37.0 (↑1%) 38.7 (↑5%)
(million GJ) Oil & Gas Oil & Gas Oil & Gas
9.5 (↑11%) 14.4 (↑51%) 15.1 (↑5%)
Power Power Power
Water Withdrawal 35,883 42,912 (↑20%) 42,172 (↓2%)
(thousand m3) Oil & Gas1 Oil & Gas1 Oil & Gas1
37 1,614 (↑4,312%) 1,375 (↓15%)
Power2 Power2 Power2
Non-hazardous Waste Generation 924 1,257 (↑36%) 1,207 (↓4%)
(tonnes) Oil & Gas Oil & Gas Oil & Gas
122 67 (↓45%) 74 (↑ 10%)
Power Power Power
Hazardous Waste Generation 1,914 4,283 (↑ 124%) 6,413 (↑ 50%)
(tonnes) Oil & Gas Oil & Gas Oil & Gas
56 45 (↓18%) 101 (↑ 123%)
Power Power Power
Biodiversity and Conservation Initiatives 66 hectares 236 hectares 205 hectares
Total planted area Total planted area Total planted area
for regulatory for regulatory for regulatory
requirements3 requirements3 requirements3
12 hectares 11 hectares 14 hectares
Total planted area Total planted area beyond Total planted area
beyond regulatory regulatory requirements beyond regulatory
requirements requirements4
For the information on year-on-year changes and restatement of Water, Waste and Biodiversity Data, please refer to Chapter
6: Enhancing Our Environmental and Social Safeguards page 88.
1 In-scope water withdrawals for oil & gas include fresh surface water, groundwater, third-party water use and seawater
2 In-scope water withdrawals for power include fresh surface water and third-party water use
3 Regulatory requirements include revegetation according to the Forest Area Usage Approval (PPKH) for domestic oil & gas assets and environmental permits (SKKL) specific to Corridor.
4 We conducted a major planting activity beyond the regulatory requirement in 2023 under the Medco & I - Two Trees programme, but the planted area is excluded from this total.
2023 Sustainability Report PT Medco Energi Internasional Tbk 17
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Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
Supporting
Our Local Communities
We implement community development programmes aimed at fostering self-reliance and resilience, with a focus on sustainable
livelihoods and infrastructure development. Further details regarding our programmes can be read in Chapter 8.
The following table summarise MedcoEnergi’s support over the past three years:
2021 2022 2023
Total Funding for Community Development Programme (USD) 1,981,992 (↑13%) 2,304,408 (↑16%) 1,812,866 (↓21%)
MedcoEnergi has implemented programmes and initiatives to address various local needs, including:
Promoting Community Education and Well-being
• Continued our programmes at the Community Learning Centre for Women and Children
(Rumah Pemberdayaan Ibu dan Anak/RPIA) in East Aceh and welcomed 20,000 people in
2023 alone.
• Contributed to combating stunting in Aceh, Riau Islands, South Sumatra, and East Java
through health screenings, improved healthcare services, and the provision of clean water and
nutritious meals.
Climate Village Programme in Tarakan
• Empowers residents of Mamburungan Village, Tarakan to adapt to climate change and improve
their livelihoods.
• Provided assistance in integrated organic farming, a water tank, and the infrastructure to
process animal manure into compost.
Business Development for Local and Women Entrepreneurs
• Assisted women’s groups producing cassava chips in Musi Banyuasin and Sumenep Regency
by providing tools, resources, and business support.
• Assisted village-owned enterprises (BUMDes) in Bangkanai, Kalimantan, to enhance their
management skills and business productivity.
Improving Community Housing in Aceh and Tangerang
• Medco Foundation, in collaboration with Habitat for Humanity, engaged 170 MedcoEnergi
employee volunteers to renovate 10 homes, provide free medical services for 100 individuals,
distribute staple food to 400 families, and provide clean water and advice on nutrition.
• Renovated 31 houses across four districts in Aceh by providing them with safe and healthy
living environments.
18 PT Medco Energi Internasional Tbk 2023 Sustainability Report
Page 22
Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
Madura Offshore, East Java, Indonesia
2023 Sustainability Report PT Medco Energi Internasional Tbk 19
Page 23
About
MedcoEnergi
22 MedcoEnergi in Brief
24 2023 Sustainability Performance at a Glance
25 Vision, Mission, and Corporate Values
28 Business at a Glance
30 Supply Chain Management
33 Economic Performance
North Belut South Natuna Sea Block B, Indonesia
20 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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03 2023 Sustainability Report PT Medco Energi Internasional Tbk 21
Page 25
Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
MedcoEnergi
in Brief
MedcoEnergi is a leading Southeast Asian energy and natural MedcoEnergi remains well-placed to benefit from economic
resources company listed on the Indonesia Stock Exchange growth and increasing demand for energy in Southeast Asia. In
(MEDC-IDX) and focused on three key business sectors: Oil & its 2021 Climate Change Strategy, the Company committed to
Gas, Clean Power and Copper and Gold Mining. MedcoEnergi reach net zero greenhouse gas (GHG) emissions for Scope 1 and
produces oil & gas in Indonesia and internationally. The Group Scope 2 by 2050 and Scope 3 by 2060. In 2023, MedcoEnergi’s
operates gas, solar PV, geothermal and hydro power plants in Sustainalytics score improved to 29.6 (medium risk) from 36.7
Indonesia through Medco Power Indonesia. It also owns a 20.9% (high risk), while the Company’s MSCI ESG rating was maintained
non-consolidated interest in Amman Mineral Internasional at A and its CDP climate change rating at B, at par with the
(AMMN-IDX), an Indonesian copper and gold company that average for the oil & gas extraction and production group sector.
debuted on the Indonesia Stock Exchange in July 2023. However,
considering the non-controlling nature of our interest, we do not MedcoEnergi, through its wholly owned subsidiary Medco Power
include AMMN Environmental, Social and Governance (ESG) Indonesia, promotes cleaner energy via its operated gas, solar
activities in this Sustainability Report. PV, geothermal and mini hydro power plants in Indonesia. Medco
Power Indonesia, which already operates Indonesia’s largest
In December 2023, MedcoEnergi acquired a 20% interest in ground-based solar PV project, is developing two 25 MWp solar
two Exploration and Production Sharing Agreements (EPSAs) power plants in Bali and the first geothermal power plant for
in Oman: Block 60, a producing field, and Block 48, still in its East Java, located in Ijen. In 2023, Medco Power Indonesia and
exploration phase. These blocks are located onshore in western its partners were awarded a conditional import license by the
Oman, near the border with Saudi Arabia. Block 60 covers 1,485 Energy Market Authority of Singapore for 600 MW solar power,
km2 and produces over 60 mboepd from the Bisat oil and Abu the Bulan Project.
Butabul gas fields. The EPSA will expire in 2048. The adjacent
Block 48 covers 2,995 km2 and has significant prospective oil and Medco Power Indonesia owns and operates 14 IPPs including
gas potential. The interests were bought from OQ Exploration & three operational and maintenance, providing services to its
Production LLC, Oman’s third-largest producer and a subsidiary own and third-party power plants. Power sales were 4,155 GWh
of OQ Group SAOC, the state-owned integrated energy group. in 2023, 19% from renewable sources and 81% from gas-fired
OQ Exploration & Production is the Operator of both blocks, facilities.
while MedcoEnergi will support the development activities
through secondment of senior personnel. In 2023, Amman Mineral Internasional (AMMN-IDX) listed
on the Indonesia Stock Exchange, in the year’s largest IPO in
Currently, MedcoEnergi has interests in 15 oil and gas properties Indonesia. The capital raised will support further expansion,
in Indonesia, 12 of which are producing. The Company also has including construction of a copper concentrate smelter (capacity
interests in 12 international oil and gas properties, with those 900,000 tonnes per annum) and a combined cycle power
in Thailand, Oman and Yemen in production. It has additional plant. The smelter will process ore from Batu Hijau and Elang,
development assets in Libya and Tanzania and exploration the latter being one of the world’s largest undeveloped copper–
assets in Oman. In 2023, the Company continued the process gold porphyry deposits. Mining of high-grade ore from Batu
of relinquishing two deepwater exploration license in Mexico, Hijau Phase 7 continued in 2023, and waste removal for Phase 8
Blocks 10 and 12. In Block 12W, Vietnam, the Company signed progressed with production expected in 2025.
a Sale Purchase Agreement in December 2022, with transaction
closed in April 2024. In 2023, average oil and gas production In 2023 MedcoEnergi paid a final 2022 dividend of USD40
was 160 mboepd, comprising 80% gas and 20% liquids. Unit million and an interim 2023 dividend of USD25 million. The
costs were USD8.3 per boe, within the Company’s long-term Company will finalize a second 2023 dividend at the AGMS in
sub USD10 per boe commitment. 2024.
22 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
Block 60, Oman
2023 Sustainability Report PT Medco Energi Internasional Tbk 23
Page 27
Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
2023 Sustainability
Performance at a Glance
Highlights
• Achieved the 2025 interim targets from base year 2019 for our oil & gas Scope 1 and 2 GHG and methane emissions reduction, two
years ahead of plan.
• Implemented 41 GHG Emission Reduction initiatives in 2023, resulting in emission reductions of up to 147,963 tCO2e/year1 and
achieving a one-time reduction of 94,860 tCO2e.
Environmental • On track to achieve our 2030 interim targets to further reduce both Scope 1 and 2 GHG and methane emissions and on our trajectory
to achieve net zero.
and Climate • Conducted a Climate Change Risk Assessment (CCRA) for physical and transition risks in Block A and JOB Tomori.
Change • Studies on CCS are progressing at South Natuna Sea Block B, Corridor and South Sumatra Block.
Management • Continuous progress in the renewable development of East Bali Solar PV, Ijen Geothermal, and Pulau Bulan Solar PV.
• Enhanced our Social Management System (SMS) implementation through awareness campaigns, documented commitments to social
policies, risk identification and mitigation efforts, capacity building workshops, and the use of an Integrated Dashboard. Additionally, our
meticulous SMS Monitoring process was instrumental to identify and improve key social issues, which in turn enabled us to improve
our social performance.
Social • Continued to empower local communities, youth, women, SMEs (small and medium enterprises) and journalists through capability
Management building, local economic development, educational support programmes, and initiatives related to health and environment.
and Community
Empowerment
• Conducted an Employee Engagement Survey (EES) with a response rate of 92%.
• Strengthened Sustainability and Climate Change capacity building among assets and functions through certification and online
learning initiatives.
People • Strengthened the ways we implemented our Medco Leadership Behaviours (MLB) through various campaigns and trainings.
Engagement and
Development
• Zero fatalities in 2023, for the third consecutive year.
• Zero Lost Time Incidents (LTI) and Process Safety Event (PSE) Tier-1 incidents.
• Reduced Total Recordable Incident Rate (TRIR) to 0.15 from 0.21 in 2022.
Health and
Safety
• Established a 2023 – 2027 Sustainability Key Performance Indicators (KPI) after establishing a sustainability roadmap in 2022.
• Completed a corporate-level human rights assessment and established our standalone Human Rights Policy.
• Obtained ISO 37001 Anti-Bribery Management System (ABMS) certification for Corridor and maintained certifications for all other
assets.
• Improved the Sustainalytics ESG risk rating score to 29.6 (Medium Risk) from 36.7 (High Risk), maintained ‘A’ for our MSCI ESG
Rating score, and maintained a ‘B’ for our CDP Climate Change score.
Governance
Lowlights
We actively monitored public reports regarding claims of odours in Block A in 2023 and prioritized strong engagements with all stakeholders
before and during operational activities. We maintained open communication with the public, government agencies, and civil society
organisations to ensure transparency and collaboration. This engagement enabled us to respond swiftly to all such reports.
After careful investigation, these claims were found to be unsubstantiated with no evidence; the air quality parameters were within safe and
permitted thresholds.
Community
Grievances We will continue to regularly and thoroughly monitor air quality and implement thorough HSE readiness procedures wherever we operate
as part of our commitment to ensure public health.
1
The numbers indicate the peak annual reductions.
24 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
Vision, Mission,
and Corporate Values
To be the Energy Company of Choice
for investors, shareholders, partners,
employees, and communities where
we operate.
VISION
MISSION
To build long-term value with
a portfolio of sustainable energy and
natural resources businesses.
CORPORATE VALUES
Professional Ethical Open Innovative
All employees must conduct All employees must conduct All employees must make All employees must cultivate a
themselves in a professional themselves in an ethical efforts to promote transparency spirit of innovation by:
manner by: manner by: by:
• Being competent in their area • Conducting business fairly • Encouraging informality and • Building a culture of
of expertise. with high moral integrity. openness in communication trailblazers.
• Having a “champion spirit”. • Applying the highest ethical at all levels. • Continuously searching
• Always seeking self- standards at all times. • Building an environment of for innovative solutions to
improvement. • Understanding and following trust among employees and achieve better, safer and
• Having professional the Company’s ethics and management. cost-effective outcomes.
capabilities and knowing their Good Corporate Governance • Being open-minded in • Having intellectual and
own limits. policies. thought, behavior, and work. emotional maturity.
2023 Sustainability Report PT Medco Energi Internasional Tbk 25
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Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
Thailand
Vietnam
20
32
21
31
19
1 17
16
24
2
3 30
4
Su
15 Kalimantan
m
at
18
ra
5
8
6 9
11
Java
7
1 Block A Aceh 10 Ijen Geothermal
2 Sarulla Geothermal 11 Madura Offshore
10 14
3 Riau CCPP 12 Bali Solar PV
4 Corridor 13 Sumbawa Solar PV 19 West Bangkanai 12
5 South Sumatra Region 14 Batu Hijau & Elang 20 Tarakan
13
6 South Sumatra IPP 15 Batam IPP 21 Simenggaris
7 Cibalapulang Mini Hydro 16 South Natuna Sea Block B 22 Senoro-Toili
8 The Energy Building (HQ) 17 North Sokang 23 Donggi Senoro LNG
9 Sampang 18 Bangkanai 24 Beluga
25 Block 10, Mexico 28 Block 9 Malik, Yemen 30 Onshore Receiving Facility, Singapore
Block 12, Mexico 29 Block 60, Oman 31 Chim Sao and Dua, Vietnam
26 Area 47, Libya Block 48, Oman 32 Bualuang, Thailand
27 Block 1, Tanzania Block 56, Oman
Block 4, Tanzania Karim Small Fields, Oman Acquired Divested
December 2023 April 2024
26 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
25 Mexico 26 Libya 28 Yemen
27 Tanzania 29 Oman
23
Sulawesi
Papua
22
Oil and Gas Power Copper & Gold
Mining
Production Installed Production
Development Development Development
Exploration Exploration
2023 Sustainability Report PT Medco Energi Internasional Tbk 27
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Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
Business
at a Glance
163 160
Oil & Gas Production
12 5
Onshore Production Offshore Production (mboepd)
Assets Assets 103 100
94
129 128
10 9
64 60
Exploration Presence in 60
Assets Countries Gas
39 40 34 34 32
Oil
2019 2020 2021 2022 2023
80%
2P Reserves
80%
Oil & Gas and Contingent Onshore Gas
Resources Production Production
943 1,125 996 1,040 1,041
(mmboe)
20% Offshore
20% Oil
Contingent
Resources 301 310 389 481 539
Production Production
2P Reserves
2019 2020 2021 2022 2023
4,155
Power Sales, 3,993
Gas-Fired & Renewables 855 801
926 MW 7 Operated
Gas-fired 1 Operated
Geothermal
(GWh)
2,600
2,639
2,718
IPP Power Capacity IPPs IPP
802 817 870
Power 1,925 MW 2 Operated
Mini Hydro
1 Operated
Solar PV 1,798 1,822 1,848 3,138 3,353
O&M Power Capacity IPPs Renewables
Gas-Fired
2019 2020 2021 2022 2023
ZERO
Reduced Established
Total Recordable Incident Rate (TRIR)
Standalone
FATALITY
2023
0.15 Human Rights Policy
2022 in early 2024
Employees & Contractors 0.21
ACHIEVED
Oil & Gas Oil & Gas
Environmental, Scope 1 & 2 GHG Methane (CH4)
Social & Emissions Reduction1 Emissions Reduction1
Governance
CLIMATE CHANGE INTERIM TARGET 22% 20% 40% 25%
(ESG) 2 YEARS AHEAD FROM 2025 2023 2025
CH4
2023 2025
1
Reduction from 2019 base year.
28 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
Sarulla Geothermal Power Plant’s Fan Condenser, North Tapanuli, Indonesia
2023 Sustainability Report PT Medco Energi Internasional Tbk 29
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Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
Supply Chain
Management
We are dedicated to conducting our business with integrity (GHG) emissions. The Vendor Day for the Bualuang asset in
and to ensure that the procurement of goods and services is Thailand specifically addressed sustainability and climate
both transparent and accountable. Our aim is to foster robust change for the first time. It emphasised the importance of these
business relationships, empower our vendors to comply with issues to our vendors.
regulations and adopt the best environmental, social, and
governance practices. We actively engage with our current and potential vendors
through various initiatives, which include coaching sessions on
We require all our vendors to adhere to our Code of Conduct, our Contractor HSE Management System and the Special Task
including the Code of Suppliers, and all relevant laws and Force for Upstream Oil & Gas Business Activities (SKK Migas)
regulations. We include compliance to our Code of Conduct Centralized Integrated Vendor Database (CIVD), led by our
in our selection documents and in our contract terms and Subject Matter Experts.
conditions. We expect suppliers to uphold the same high ethical
standards we set for ourselves. These stipulations cover, but are In a similar approach, Medco Power in January 2023 engaged
not limited to: with 37 local vendors by hosting a Contractor Forum in
• complying with Health, Safety & Environment (HSE) standards Pekanbaru, Riau.
and procedures,
• respecting human rights, We also launched our inaugural Supply Chain Management
• protecting company’s assets, (SCM) e-Newsletter in October 2023. This initiative is an
• safeguarding confidentiality and proprietary information, additional channel to keep our vendors informed about
including the intellectual property rights of others, MedcoEnergi’s initiatives and updates, including sustainability
• conducting fair competition and business dealings, and climate change.
• abstaining from any form of bribery and corruption.
Our close engagement with vendors on sustainability and
In accordance with local labour laws, we prohibit the employment climate change has been commended in our CDP Climate
of child and forced labour in our operations and require our Change disclosure. We improved our score for Value Chain
vendors to adhere to the same standards. This commitment is Engagement category to a B in the 2023 CDP results from a D in
also reinforced in our standalone Human Rights Policy that was 1
2022. This improvement recognises that our best practices are
approved in 10 January 2024. comparable to those of our global peers.
Engaging Our Vendors We recognise the challenges in engaging our vendors in relation
We hold a Vendor Day annually to share with vendors our to Scope 3 GHG emissions3. We have begun influencing them to
company policies, systems, and expectations. In 2023, we start disclosing their products’ and services’ Scope 1 and 2 GHG
hosted two virtual Vendor Days, one in Indonesia and one emissions which become our Scope 3 GHG emissions. However,
in Thailand, with over 400 vendors attending. The event in considering this topic is still nascent in the Indonesian market
Indonesia featured discussions on important topics, including and the local content policy mandates the maximum use of
our IOG e-Commerce platform2, business ethics, audit practices, local vendors, little progress have been achieved to date.
procurement process, sustainability policies, climate change
strategies and initiatives to address Scope 3 greenhouse gas
1 MedcoEnergi established its Human Rights Policy in early 2024. This policy builds upon existing human rights related policies and best practices at MedcoEnergi into a standalone
corporate policy.
2 The Indonesia Oil & Gas (IOG) e-commerce platform, developed by SKK Migas, serves as a marketplace for upstream oil and gas industry stakeholders. It showcases products from goods
and service providers who have partnered with Production Sharing Contract (PSC) operators.
3 Category 1-Purchased Goods and Services: includes all upstream (i.e., cradle-to-gate) emissions from the production of products, whether goods or services, purchased or acquired by
the reporting company in the reporting year. Category 2-Capital Goods: includes all upstream (i.e., cradle-to-gate) emissions from the production of capital goods purchased or acquired
by the reporting company in the reporting year.
30 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
Milestones in 2023 MedcoEnergi was honoured with two awards for excellence in
In giving recognition to our vendors who demonstrated the State-Owned Asset Management category from the Centre
outstanding performance during contract implementation, of State-Owned Asset Management1 of Indonesia’s Ministry of
we began presenting certificates of appreciation in 2023. This Energy and Mineral Resources. We also received two awards
initiative was a progressive step following the establishment from the Directorate General of State Assets of the Ministry of
of the Service Quality Review (SQR) in 2022. The SQR Finance that acknowledged our outstanding achievements in
standardised the performance appraisals of our vendors in HSE, maximising the use of state-owned assets.
contract implementation, and management attitudes. Through
this process, we aim to enhance our supply chain’s resilience Our dedication to empowering local and small enterprises was
by mitigating risks and improving supply and market access, acknowledged with a prestigious award from SKK Migas for The
aligning our SCM systems with the industry’s best practices. Highest Local Content (Tingkat Komponen Dalam Negeri/ TKDN).
We were awarded this during the SKK Migas’ National Capacity
Supply Chain Management Performance Forum in 2022 for achieving a local content score of 66%.
In 2023, we participated in the SKK Migas’ SCM key performance
indicator (KPI) assessments for Production Sharing Contract
(PSC) operations. We achieved an Excellence rating for all
our Indonesian Medco Oil & Gas assets based on their 2022
performance. In addition, our Block A asset repeated its
accomplishments by achieving the Best KPI Award for the
2022 financial year from the Aceh Oil and Gas Management
Agency (Badan Pengelola Migas Aceh/BPMA). These recognitions
highlight not only the excellence of our assets, but also the way
we provide goods and services, adhere to customs procedures,
and use domestic products.
MedcoEnergi’s Director & Chief Administrative Officer, accompanied by Vice President (VP) of SCM and other
representatives from other PSCs, receiving the Highest TKDN Award 2023 from SKK Migas (right).
The VP of SCM receiving the SCM 2022 KPI 1st rank award from BPMA (left), Jakarta, Indonesia
1 In Indonesian it is called Pusat Pengelolaan Barang Milik Negara/PPBMN
2023 Sustainability Report PT Medco Energi Internasional Tbk 31
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Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
Pursuing Sustainable Procurement Practices
We continually engage with our vendors regarding sustainable procurement practices. Our local vendors’ capabilities are further
developed as we aim to improve our programmes’ structures to encourage sustainable supplies. We also continue to integrate
sustainability considerations into our own procurement practices, such as sourcing renewable energy.
Action Plans
Short-Term Actions Medium/Long-Term Actions Status
Responsible Select priority supply chain Partnership programme to • Conducted internal capacity building on sustainability and
Procurement partners for initial engagements promote data transparency and climate topics for SCM leaders as an initial step prior to
Practices on climate related disclosures. implement best practices in the engagement.
value chain. • Initially engaged selected supply chain partner on climate-
related disclosures.
Conduct routine 3rd party engagement through Vendor Days. Oil & Gas assets:
• Conducted monthly online Contractor Health, Safety and
Environment Management System (CHSEMS), coaching
current and potential vendors on the tender process.
• Conducted Vendor Day for Medco Oil & Gas Indonesia and
Thailand; this included sustainability and climate change
topics.
Power assets:
• Conducted a Contractor Forum, which covered, Contractor
Safety Management System (CSMS), and business ethics
in Pekanbaru.
• Familiarised potential vendors in Bali PV Project with
vendor registration and CSMS.
• Coached Medcopower Servis Indonesia (MPSI), Timor-1’s
local security vendors in East Nusa Tenggara (NTT), on
CSMS.
32 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
Economic
Performance
Direct Economic Value Generated and Distributed
Value (USD) Value (USD) Value (USD)
20211 2022 2023
Direct Economic Value Generated 1,261,224,118 2,351,843,555 2,298,832,099
Revenues 1,261,224,118 2,351,843,555 2,298,832,099
20211 2022 2023
Economic Value Distributed 1,030,150,606 1,486,127,196 1,609,809,122
Operating costs 490,056,949 602,901,808 858,973,110
Employee wages and benefits 93,957,547 113,973,552 130,549,749
Payments to providers of capital 222,475,433 259,424,691 276,002,381
Payments to host countries governments 222,831,712 507,971,978 339,666,380
Community investments 828,965 1,855,167 4,617,501
Economic Value Retained 231,073,512.6 865,716,358.8 689,022,977.2
1 In accordance with the provisions of Indonesia Statement of Financial Accounting Standards/PSAK No. 58, the Group restated the profit and loss accounts pertaining to the operations
of Ophir Vietnam Block 12W B.V and Medco International Ventures Ltd which have been previously presented under “Continuing Operations” for the year ended December 31, 2021.
Accordingly, the Group restated its consolidated financial statements for the year ended December 31, 2021.
2023 Sustainability Report PT Medco Energi Internasional Tbk 33
Page 37
Our Approach
to Sustainability
36 MedcoEnergi’s Three Pillars of Sustainability
38 Journey to Sustainability
46 Engaging Our Stakeholders
48 MedcoEnergi Memberships
Tree Planting by Energy Listrik Batam (ELB) Power Plant Employee,
Riau Islands, Indonesia.
This picture is the 1st winner under the ‘Environmental & Climate Change’ category of
the 2023 MedcoEnergi Photography Competition.
34 PT Medco Energi Internasional Tbk 2023 Sustainability Report
Page 38
04 2023 Sustainability Report PT Medco Energi Internasional Tbk 35
Page 39
Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
MedcoEnergi’s
Three Pillars of Sustainability
MedcoEnergi aims to create long-lasting, positive impacts, not only within our organisation but also the broader community. The
three pillars of our Sustainability Policy embody our commitment to protect the health and safety of our people, safeguard the
environment and empower local communities. Guided by these pillars, we operate our business with integrity and transparency to
safeguard our social license to operate.
Our Sustainability Policies set the expectations for all employees and business units. The three pillars reflect our Corporate Values
and Good Corporate Governance Principles.
The Women and Children Empowerment Center in Block A asset, East Aceh, Indonesia.
This picture is the 1st winner under the ‘Social & Culture’ category of the 2023 MedcoEnergi Photography Competition.
36 PT Medco Energi Internasional Tbk 2023 Sustainability Report
Page 40
EmpoweringOur
Empowering OurPeople
People
Creating Opportunities Advancing Our Health
BuildingaaResilient
Building Resilient
for Communities and Safety Culture
Business
Business
MedcoEnergi’s Three Pillars of Sustainability
Leadership of and Environmental and Local Community
by Our Employees Social Development Empowerment
Leadership of and by Our Employees Environmental and Social Development Local Community Empowerment
Our people are our most valuable asset. They are As a responsible corporate citizen, we are committed MedcoEnergi endeavours to be a leading company
the keystone of our operations and our future to comply with all applicable laws and regulations, on social practices and responsibility wherever we
success. Therefore, we must recruit diverse talent and aligning our health, safety and environmental operate. We engage regularly, openly and honestly
from all backgrounds who possess the right management with industry best practice and with stakeholders to share, hear and understand
skillsets and ethical values. We are committed to relevant international standards. We regularly set each party’s views and concerns. We respond by
maintaining a healthy, safe workplace built upon and monitor our goals and performance to achieve making community investment decisions in a
a culture of mutual respect. To be successful we zero injuries, illnesses, environmental incidents, and strategic, fair and transparent manner as we seek
will develop the capacity of all of our employees the reduction of waste and emissions. We seek to to empower and support the creation of self-
while recognising and rewarding individual continually strengthen our operational excellence reliant communities aligned with the UN SDGs.
performance and expecting personal accountability. through enhancing our safety culture, stakeholder
All levels of our management are expected to engagement, environmental stewardship, and
set clear directions towards our expectations. the ongoing adoption and development of best
practices. We are committed to complying with
all applicable laws and regulations, to respecting
human rights in line with the UN Guiding Principles
for Business and Human Rights and the Voluntary
Principles on Security and Human Rights, and
to learning from and applying industry best
practice and relevant international standards.
Governance
Anti-Bribery & Corruption (ABC); Human Rights; Public Policy; Socio-economic Compliance; Supply Chain Management;
Enterprise Risk Management
Offshore operations in Bualuang, Thailand
2023 Sustainability Report PT Medco Energi Internasional Tbk 37
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Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
Journey to
Sustainability
We aim to cultivate a culture centered around sustainability across our operations, integrating environmental, social, and governance
(ESG) factors along with climate considerations into our business. We monitor the evolving landscape to uphold our aspirations and
enhance our sustainability. As a result, we have consistently improved our ESG and climate ratings over the years.
Our 2017-2022 Sustainability Roadmap can be accessed in MedcoEnergi’s 2022 Sustainability Report page 28, while 2023-2027
roadmap is presented below. This timeline showcase our journey in sustainability.
MedcoEnergi
202 7
Sustainability Roadmap • Further integrate sustainability into business to enhance
2023-20271 value creation
• Reach Top Quartile ESG performer in the Oil & Gas
Exploration and Production Sector in Southeast Asia
• Maintain or improve MSCI score of an A, Sustainalytics
score of 36.7 and CDP Climate Change score of a B
• Materiality assessment update for the next five-year
2 0 23 roadmap
• Update goals and KPIs based on the 2022
materiality assessment
• Enhance sustainability & climate change capability
• Establish Human Rights Policy 202 6
• Conduct a Quantitative Climate-related Risk • Internal carbon pricing and carbon trading: credit and
Assessment offset
• Partnership programmes to promote data transparency
Sustainalytics’
and for implementation of best practices along value
MSCI A
ESG Risk Rating
B
29.6 Climate Change chain
2 0 24 202 5
• Reduce 20% of Oil & Gas Scope 1 & 2 GHG Emissions2
• Develop a Just Transition Plan • Reduce 25% of methane emissions for our oil & gas
• Embed Climate Change Strategy in Corporate business2
Business and Financial Plan • Increase renewable energy installed capacity to 26%
• Enhance governance, systems, capability building • Disclose Scope 3 GHG emissions
for Human Rights • Commit to upstream Carbon Capture and Storage (CCS)
pilot project
1 We conducted double materiality assessment in 2022 to establish our 2023-2027 Sustainability Roadmap.
2 Reduction from 2019 base year.
38 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
ESG Ratings
ESG Rating History
MSCI
ESG Rating
A
AAA
CCC B BB BBB A AA AAA
AA
As of 2023, PT Medco Energi
A International Tbk received an MSCI
A A
ESG Rating of A. MSCI Disclaimer
Statement refers to page 1.
BBB BBB
BB BB BB
Dec-19 Dec-20 Nov-21 Dec-22 Nov-23
Sustainalytics ESG Risk Rating CDP Score Report -
Risk Categories Climate Change
NEGL LOW MED HIGH SEVERE
0-10 10-20 20-10 30-40 40+ MedcoEnergi’s Average Performance
49.9 CDP Score Oil & Gas
Global
Severe Risk Asia
Ranking 23 out of 307
46.9 Extraction &
Avarage
Severe Risk Production
42.2 Oil & Gas Producers
Severe Risk
1 Nov 2023
2021
36.7 C1 C B- B-
High Risk
29.6
2022
Medium Risk B C C C
2023
B B C C
2019 2020 2021 2022 2023
Sustainalytics Disclaimer Statement refers to page 1.
1 MedcoEnergi’s 2021 CDP Score was not disclosed publicly as first time reporter
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Our ESG and climate performance has been assessed by the following rating agencies/organisations, showing our best-in-
class1 ESG performance.
MSCI ESG Ratings measure a company’s management of long-term, financially
relevant ESG risks and opportunities. Companies are rated on a scale of AAA
(leader) to CCC (laggard).
We have maintained our A from the previous year for our MSCI ESG Rating score.
Sustainalytics’ ESG Risk Ratings measure a company’s exposure to industry-
specific ESG risks and their approach in managing those risks. The ratings are
categorised across five risk levels: negligible (0-10), low (10-20), medium (20-30),
high (30-40) and severe (40+).
We have improved our Sustainalytics risk rating score from 36.7 (high risk) to
29.6 (medium risk), ranking 23rd out of 307 oil and gas production companies, an
improvement from 70th out of 291 oil & gas production companies in 2022.
CDP Climate Change assesses how well climate-related risks and opportunities
have been identified and managed by companies and cities. Responding bodies
are scored on a scale of A (Leadership) to D- (Disclosure).
We achieved a B for our CDP Climate Change score, placing us in the
Management-level band. This score is higher than both the Asia and Global
average and at par with average in the oil and gas extraction and production
sectors.
We improved the quality of disclosure in our sustainability reporting by increasing the number of assured GRI Performance
Indicators by KAP PSS - EY year-on-year.
Number of GRI
Indicators Assured
93 96
86
75
63
55
31
2017 2018 2019 2020 2021 2022 2023
YEAR
We are also aware of the recently issued Taskforce on Nature-related Financial Disclosures (TNFD) framework which has
developed a set of disclosure recommendations and guidance that enable businesses and financial institutions to assess,
report, and act on their nature-related dependencies, impacts, risks, and opportunities. We are currently exploring the
framework to understand the recommendations of TNFD.
1 Oil & Gas Exploration and Production sector.
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Our Updated Material Topics
In 2022, we conducted a double materiality assessment to With assistance from the Business for Social Responsibility1 (BSR)
address the increasing sustainability and climate expectations and engagements with our internal and external stakeholders,
from our stakeholders. This assessment enabled us to identify we identified a total of 27 material topics, divided into Tiers
key risks, opportunities, and impacts pertinent to our oil & gas based on their importance. This categorisation was determined
and power businesses. We have aligned our sustainability by their likelihood and the severity of their impact on our
reporting with the results of the new assessment. enterprise value, society, and the environment. This process was
carried out in consultation with the Board.
Below is the map of our Tier 1 material topics against the three pillars of our Sustainability Policy:
Material Topics based on 2022 Double Materiality Assessment
Leadership of and Environmental and Local Community
by Our Employees Social Development Empowerment
• Workplace health, safety, and • Climate Risk and Resilience Local Community Development
wellbeing • Climate Mitigation Programmes:
• Security Practices • Climate Adaptation • Health
• Talent Attraction, Retention, • Water • Environment
and Development • Air Quality • Education
• Effluents and Waste • Local Infrastructure
• Asset Integrity and Security • Supporting Livelihood
Key Points Key Points Key Points
People/Organisation as a critical enabler of The three Climate aspects (Risk and There are both risks of creating negative
success in moving forward, and the ability Resilience, Mitigation, and Adaption) as clear impacts on the livelihoods and
to attract and maintain a lean, efficient, and urgent/significant issues. environment, as well as opportunities for
and diverse pool of top fit-for-purpose MedcoEnergi to share benefits with local
talent. communities
Governance
• Anti-corruption and Business Ethics • Human Rights • Stakeholders Engagement
• Policy and Regulatory Environment • Responsible Procurement Practices
Key Points
Corruption is considered as one of the major global threats to both social development and market economy.
1 BSR® is a sustainable business network and consultancy. It was founded in 1992 by a group of entrepreneurs and businesses who sought to create a not-for-profit organization that could
help companies act in a more responsible manner.
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The Tier 1 material topics were defined as follows:
Workplace health, safety, Talent Attraction, Retention,
and wellbeing Security Practices and Development
The practice of ensuring a safe, Measures and protocols to Strategies that attract, maintain,
healthy, and conducive work protect our assets, personnel, and enhance the skills and
environment that promotes the and information systems from engagement of employees
physical and mental well-being threats and unauthorised access. to ensure a competent and
of employees. motivated workforce.
Climate Risk and
Resilience Climate Mitigation Climate Adaptation
Risks posed by climate change Actions and policies aimed The process of adjusting
are assessed and managed. at reducing or mitigating systems, strategies and assets to
Strategies are developed to greenhouse gas (GHG) emissions minimise potential damage or
enhance our ability to mitigate, to tackle climate change. seize opportunities associated
withstand and adapt to climate- with climate change.
related impacts.
Water Air Quality Effluents and Waste
The management, conservation, The control and improvement The management of waste
and quality control of water of the atmospheric quality products and effluents (liquid
resources in business operations, around business operations, waste and sewage discharged
emphasising its sustainable usage focusing on reducing into a water body) to minimise
and impact reduction. emissions and pollutants. environmental impacts and
ensure sustainable disposal or
recycling.
Asset Integrity & Security Local Communities Anti-Corruption & Business
Ethics
Ensuring the operational The engagement with and
reliability and safety of physical impact on the communities Upholding ethical practices and
assets while protecting them surrounding our areas of combating corruption to ensure
from risks like malfunctions, operation. These impacts the integrity and transparency of
accidents, and external threats. include social, economic, and our business.
environmental aspects.
Stakeholder Policy & Regulatory
Human Rights Engagements Environment
The commitment to uphold and The process of interacting with Navigating and complying with
protect fundamental human and involving stakeholders, all applicable legal and policy
rights in all aspects of our including employees, customers, frameworks governing business
business operations and supply investors, and communities, to operations.
chains. inform and enhance business
strategies and decision-making.
Responsible Procurement
Practices
Implementing procurement
methods that prioritise ethical,
environmental, and social
considerations.
Our Tier-1 and Tier-2 material topics have been translated into 104 goals and key performance indicators (KPIs) in year 2023 as part of
our 2023-2027 Sustainability Roadmap. This roadmap is aligned with MedcoEnergi’s sustainability objectives and climate aspirations,
which incorporate contributions from the Board of Directors (BoD), functions and subsidiaries. These KPIs serve as the basis for our
action plans, which are detailed at the conclusion of each chapter in this Sustainability Report.
By the end of 2023 we achieved 86% of our 2023 sustainability goals and KPIs derived from the 2022 materiality assessment. The
2023 goals we have yet to achieve will be carried forward for completion in 2024.
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Human Rights Policy
As we expand our horizons, MedcoEnergi acknowledges that our business growth inherently exposes us to various risks that may
impact the human rights of individuals. We identified Human Rights as a key material topic during our initial materiality assessment
in 2018 and reaffirmed it as a Tier 1 topic while revisiting it in 2022.
Our commitment to respect human rights has always been integrated into various aspects of our business and reflected in our
policies such as the Sustainability Policy, Code of Conduct, Community Development and Security policies, as well as our Corporate
Recruitment Guidelines. Additionally, we have a comprehensive grievance and whistleblowing system to effectively address any
concerns related to human rights.
Following the corporate-level human rights assessment in 2022, we established MedcoEnergi’s Human Rights Policy in early 2024.
This policy builds upon existing human rights-related policies and best practices at MedcoEnergi into a standalone corporate policy.
Developing this policy involved extensive consultations with representatives from our external and internal stakeholders, including the
representatives from Medco Oil & Gas and Power assets, Heads of Division and labour unions to ensure comprehensive perspectives.
The policy received formal approval from our Board and was officially signed off in January 2024.
Our standalone Human Rights Policy encompasses the following key aspects:
• The commitment to respect human rights as outlined in the Universal Declaration of Human Rights (UDHR), International Labour
Organization (ILO) Declaration, and other relevant instruments.
• Guidance was provided by the United Nations Guiding Principles on Business and Human Rights (UNGPs), the Voluntary Principles
on Security and Human Rights (VPSHR), and the International Finance Corporation (IFC) Performance Standards.
• Adherence to applicable laws in the countries where we operate.
• Implementation of robust risk management policies and procedures: these include all policies related to our Code of Conduct,
Code of Supplier, Sustainability, Health, Safety & Environmental, Community Development and Security.
• Protection of the human rights of our employees, communities, and business partners. This includes, among others, fair working
conditions, recognition of rights to unionise and bargain collectively, and zero tolerance for child labour, modern slavery, harassment,
and discrimination.
• Identification and mitigation of potential risks faced by vulnerable groups, including minorities, women, children, and migrant
workers.
• Requirements for business partners to adhere to our Code of Conduct and Code of Supplier, which ensure legal compliance and
protection of employee rights.
• The use of grievance and whistleblowing mechanisms to address impacts of company activities, with procedures to investigate
and remedy.
• Governance and oversight through involving the Board of Commissioners, Board of Directors, Corporate Sustainability and Risk
Management Division, and all functional teams.
Our Human Rights Policy is available here.
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The timeline below highlights our milestones in developing this policy:
MedcoEnergi's
Human Rights Milestone
2018 2020 20 21 20 22 20 23
• Human Rights is identified • Inclusion of Human Initiated the corporate • Completed the • Developed Human
as a priority issue from our Rights aspect in Human Rights Assessment corporate Human Rights Policy
materiality assessment the Community with Business for Social Rights Assessment with • Conducted VPSHR
• Initiated study on Human Development and Responsibility Business for Social training for selected
Rights-related regulatory Security Policy Responsibility participants from
requirements • Launched the revised • Identified human rights MedcoEnergi and its
• Conducted Voluntary Code of Conduct (“Our risks exposures, in- subsidiary
Principles on Security and Code”) to align with place mitigations and • Conducted Human
Human Rights (VPSHR) international best systems, and rooms Rights Impact
training for security and practices for Human for improvements. The Assessment (HRIA) for
public affairs departments Rights identified risks provide Block A and Senoro
the bases of developing (JOB Tomori)
the standalone Human
Rights policy based on
existing policies.
We disclosed and assured for the first time in this reporting year our policy commitments for responsible business conducts. Moreover,
we described how our policy commitments for responsible business conducts are embedded throughout the activities and business
relationships. A complete disclosure of GRI 2-23 Policy Commitments and GRI 2-24 Embedding Policy Commitments can be found
in 2023 GRI Performance Data.
2023 Block A and JOB Tomori Human Rights
Impact Assessment
As part of the Equator Principles 4 (EP4) requirements1 for Block The design and implementation of this HRIA methodology
A and JOB Tomori, we conducted an independent site-level adhere to the growing best practices for conducting HRIA and
human rights impact assessment (HRIA). While conducting this the essential requirements for human rights impact assessments.
assessment, we referred to the United Nations Guiding Principles These include using national law and international human
on Business and Human Rights (UNGPs). This assessment aimed rights standards as the primary benchmarks and criteria for
to understand what the human rights risks were based on their assessment. They actively involve affected parties, employees,
severity and likelihood. and civil society, including vulnerable groups, and adapt general
strategies that place human risks above potential company
The HRIA can be defined as a systematic approach to identify, business risks.
analyse, evaluate, and mitigate the adverse effects of a
business venture or operation on the human rights well-being Through HRIA, we can gain an understanding of how the
of stakeholders who are influenced, including workers and local company safeguards the rights of its workforce and local
community members. This process, also called the Human communities. Additionally, it allows us to integrate human rights
Rights Due Diligence, serves to pinpoint, prevent, minimise and principles into day-to-day activities that align with international
take responsibility for how businesses resolve adverse human standards and relevant legal obligations.
rights consequences. The HRIA procedures evaluate both Conversely, this process can unveil existing, recognised,
existing and potential human rights ramifications, integrate and or unforeseen human rights violations committed by our
execute the findings, monitor responses, and take transparent operations.
measures to address these impacts.
1 The Equator Principles is a risk management framework adopted by financial institutions, for determining, assessing and managing environmental and social risk in project finance. The
reviewed fourth iteration of the Equator Principles (EP4) were published in July 2020.
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In the context of the Declaration of Human Rights, all human Potential human rights impacts are assessed as follows:
beings are rights holders. Identifying the rights holders in • Labor rights
this project will be tailored according to the company’s • Freedom of association and collective bargaining rights
landscape. This will include certain conditions, such as resource • Civil and political rights
requirements, both socioeconomic and cultural. The following • Indigenous people’s rights
were identified as rights holders; they have been divided into • Women’s rights
internal and external rights holders: • Community health, safety, and security
• Internal rights holders are temporary or permanent
employees, registered labour unions, and third parties in the The assessment results will be used to manage Block A’s and
project cycles, such as contractors and their workers. JOB Tomori’s human rights issues. Based on the risk matrix, most
• External rights holders are communities living around the risks are categorized as negligible, except those categorised as
company areas, especially community settlements or other moderate risks to the health and safety of the communities, or
social activities within a one-to-two kilometre range. This security risks in Block A and labour rights risks in JOB Tomori.
also includes people directly or indirectly affected by the
company’s activities. The actions from this assessment will be embedded in Block A’s
and JOB Tomori’s Environmental Social Action Plans (ESAP). The
These rights holders are considered since the company’s activities progress is monitored every month by the assets’ management.
may potentially disrupt their livelihoods, asset ownerships, living
conditions, and access to natural resources, which may result in
impacts on their health and safety.
Employees observing operational parameters, Block A Aceh, Indonesia.
This picture was taken during COVID-19 pandemic.
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Engaging our
Stakeholders
We conduct various engagements with our stakeholders to feedback to the government during the emerging climate
gather their input and strengthen our sustainability programmes. change-related regulations through the Indonesian Petroleum
Our interactions with our stakeholders keep us well-informed Association and Indonesian Renewable Energy Society. As
about their expectations, priorities, and needs. This is key to further testament to MedcoEnergi’s active contributions,
effectively addressing their concerns and safeguarding our social Hilmi Panigoro, our President Director, was awarded “Best
license to operate. Our goal through these efforts is to foster Sustainability Leadership Initiatives” by the Indonesian Energy
long-term stakeholder value and cultivate relationships based and Mining Editor Society1 for his outstanding contributions to
on mutual trust and transparency. driving sustainable practices within MedcoEnergi.
In 2023, we continued our engagement with BSR and other In December 2023, we also established a Memorandum of
international and national organisations, among them the Understanding with KADIN (Indonesian Chamber of Commerce
Indonesia Business Council for Sustainable Development and Industry) Net Zero Hub, as part of Indonesian companies’
(IBCSD) and the Global Reporting Initiative. We actively network with the global net-zero movement and guidance to
contributed to sustainability initiatives, such as providing the journey towards net zero emissions.
MedcoEnergi employees, including members of the Board of Comissioners and Board of Directors, served as
volunteers in collaboration with Habitat for Humanity to complete the construction of livable houses
in Mauk, Banten, Indonesia
1 Indonesian Energy and Mining Editor Society is a prominent organization consisting of senior editors from reputable national media outlets focused on energy and mining sectors.
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Business
Business
The following table lists MedcoEnergi’s stakeholder groups and the engagement and support we provide:
Shareholders Employees
• General meetings with shareholders to present • Regular engagements with worker unions
MedcoEnergi’s annual results, material decisions and representatives on a quarterly basis every year.
other significant corporate actions. • Communications forums to resolve matters related to
• Regular meetings between our management team employee relations and employment benefits, terms,
and investors. and conditions.
Contractors, Suppliers and Business Partners Communities
• Regular familiarisations of our Corporate Governance • Facilitations and implementations of stakeholder
principles, Corporate Values, Code of Conduct, engagements and community development plans.
Code of Supplier and initiatives in Sustainability • Familiarisations of our grievance mechanisms in our
and Climate Change in the quarterly newsletter for Social Management System (SMS).
our domestic oil & gas contractors, suppliers and • Anti-corruption collective action programmes with
business partners, as well as during the annual Vendor the focus on engaging the youth to cultivate a culture
Days, held for our partners in oil and gas and power of integrity and awareness about anti-corruption
subsidiaries. measures.
Government and Regulators Banks and Investors
• Regular consultations and cooperations with • Annual disclosures of our ESG data in our
government agencies and authorities to empower Sustainability Reports.
local communities, support our workforce, mitigate • Submissions of monitoring reports to our lenders.
adverse environmental and social impacts and • Publications of quarterly investor updates in our
work on our efforts to mitigate and adapt to climate website.
change. • Collaborations with banks to adhere to the Equator
• Regular engagements with the authorities to provide Principles (EP) to finance our projects.
inputs for drafts of climate change and environmental • Online and in-person non-deal roadshows focusing
regulations. on sustainability/ESG themes.
• Participation in government initiatives, such as the
Annual SDG Forum, EBTKE (Renewable Energy &
Energy Conservation) Conference and Exhibition, SKK
Migas Media Engagement, etc.
Non-Government Organisations (NGOs) Consumers
/Civil Society
• Consult with and collaborate on programmes and • Contribute to the governments’ objectives of
initiatives to empower local communities, support our increasing natural gas use for Indonesia, Singapore,
workforce and mitigate adverse environmental and and Vietnam.
social impacts. • Supply gas to the Indonesian state-owned enterprise
• Maintain correspondence and communication to PT Pupuk Sriwidjaja Palembang, which produces
gather their feedback. fertilisers for farmers in South Sumatra.
• Provide electricity to the Indonesian state-owned
electricity company PT Perusahaan Listrik Negara
Persero via Medco Power.
Media Academia
• Engage the media and hold press conferences at the • Collaborate with universities to provide access to
local and national levels. cutting-edge research and expertise.
• Conduct awareness and competency training for • Work on various capacity building programmes as well
journalists in the oil and gas industry. as knowledge sharing sessions for our workforce.
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MedcoEnergi
Memberships
Engaging with various associations empowers us to collaborate and broaden our influence in the energy sector. These associations
provide platforms for MedcoEnergi to contribute not only as members, but also as leaders and initiators to secure sustainable energy
and natural resources.
Country Name of Association Position
Indonesia Association of Indonesian Oil and Gas Industry Remuneration Practitioners (APRIMI) Member
Auditors Forum of SKK Migas - KKKS (FAMI) Steering Committee
Indonesia Carbon Capture and Storage Center (ICCSC) Member
Indonesia Corporate Secretary Association (ICSA) Member
Indonesia Public Relations Association (PERHUMAS) Member
Hydropower Plant Developers Association (APPLTA) Member
Indonesian Business Council for Sustainable Development (IBCSD) Member
Indonesian Employers Association (APINDO) Member
Indonesian Chamber of Commerce and Industry (KADIN) Member
Indonesian Electrical Power Society (MKI) Member
Indonesian Environmental Impact Assessment Forum (FAI) Chairman
Indonesian Geothermal Association (INAGA) Member
Indonesian Petroleum Association (IPA) Board of Directors
IPA – Ethics and Compliance Committee Chairman
IPA – Environmental and Safety Committee Secretary
IPA – Energy Transition Committee Member
Indonesian Independent Power Producers Association (APLSI) Member
Indonesian Renewable Energy Society (METI) Board of Supervisors
International Society of Sustainability Professionals (ISSP) Member
National Centre for Sustainability Reporting - Energy Sector (NCSRE) Chairman
Public Relations Forum of SKK Migas - KKKS Steering Committee
The Climate Reality Project Indonesia Leader
Thailand Oil Industry Environmental Safety Group Association (IESG) Member
Petroleum Institute of Thailand (PTIT) Member
Society of Petroleum Engineers (SPE) Member
Oman Oman Chamber of Commerce and Industry (OCCI) Member
Oman Society for Petroleum Services (OPAL) Member
In addition, our company is a member of BSR and CDP1. Our membership in these platforms ensures we remain current with the
latest trends and regulations and understand the most effective strategies.
1 Formerly the Carbon Disclosure Project, CDP is an international non-profit organisation that helps companies and cities disclose their environmental impact (www.cdp.net).
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Pursuing Excellence
in Our Governance
52 Approach, Commitment, and Goals
53 Good Corporate Governance
54 MedcoEnergi Code of Conduct
55 Corporate Governance Structure
58 Risk Management
59 Corporate Governance Assurance Framework,
Programmes and Policies
74 Whistleblowing Channel
75 Transparency in Payment to Government
75 Anti-Corruption Collective Action
77 Public Policy
78 Alignment of Sustainability Initiatives with UN
Sustainable Development Goals (SDGs)
79 Action Plan
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MedcoEnergi is dedicated to fostering sustainable business operations and cultivating a culture of compliance and openness. We
believe that ethical and accountable governance is essential to ensure enduring value for stakeholders and the resilience of our
business. A robust leadership framework is pivotal to achieve MedcoEnergi’s vision and mission.
Approach,
Commitments and Goals
We have adopted ethics-focused strategies supported by a We uphold these GCG principles and Our Code by adhering to a
culture that prioritises and incentivises sustainable, long-term regulatory framework that complies with laws, regulations, and
connections with stakeholders. For this reason, we apply our both international and industry best practices and standards.
Good Corporate Governance (GCG) Principles and Code of
Conduct (Our Code) throughout our subsidiaries and business
divisions.
Relationship between GCG and Our Code
Vison, Mission, and
Corporate Values
Good Corporate Governance (GCG) Code of Conduct (Our Code)
Manage Organisation Manage Employee
Business Conduct Business Conduct
Business Ethics and
Work Ethics
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Good Corporate Governance
Our governance is based on the principles of Transparency, We have integrated these principles into our operations to
Accountability, Responsibility, Independence, and Fairness. ensure responsible management, ethical business practices,
These GCG Principles guide the MedcoEnergi Board of compliance, and sustained stakeholder trust. The MedcoEnergi
Commissioners (BoC) and Board of Directors (BoD) as they GCG Implementation Guideline is available here.
govern our organisation.
MedcoEnergi’s Good Corporate Governance Principles
01
Transparency:
02
Accountability:
The Company must provide The Company must be managed
material and relevant in accordance with the interests of
information by ways that are the company, shareholders, and
easy for stakeholders to access stakeholders.
and to understand.
MedcoEnergi’s Good
05
Corporate Governance
03
Principles
Fairness:
The Company must be Responsibility:
managed in accordance with The Company must comply
the principles of fairness and with all relevant laws and
equality. regulations, and perform
responsibly with regards to
community and environment
04
Independence:
The company must be managed
independently. It must avoid
domination by any one function over
any of the others or interventions
from other parties.
MedcoEnergi Code of Conduct
Rooted in MedcoEnergi’s Corporate Values – professionalism, ethics, openness, and innovation – Our Code carries the tagline “Know
the Code, Know the Commitment.” It outlines the standards, duties, and responsibilities expected of our personnel. This Code aligns
with global best practices in human rights, data privacy, anti-corruption, and anti-money laundering.
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Our Code
• Our Corporate Values and Code of Conduct
• Our Expectations of Everyone
• Our Expectations of Supervisors
Our Commitments
• Raising Our Concerns
& Responsibilities • Disciplinary Actions
• Equal Opportunity and Discrimination
• Workplace Harassment
Protecting Our • Personal Data Privacy
Employees & • Safe Workplace
Workplaces • Human Rights
• Conflicts of Interest
• Accuracy of Financial Reporting
Protecting Our • Protection of Company Assets
Company’s • Intellectual Property Rights
Interests & Assets • Information Technology and Communication System
• Insider Trading
• Our Business Partners
Respecting Our
• Our Communities
Stakeholders • Our Government
• Corruption and Bribery
Obeying the Law • Preventing Money Laundering
• Involvement in Politics
At MedcoEnergi, we require all stakeholders to adhere to Our Code consistently, regardless of their locations. Access Our Code here.
Code of Suppliers
We outline our expectations for business partners through the MedcoEnergi Code of Suppliers, established in December 2022. This
Code of Suppliers sets our standards, identifies potential legal, regulatory, and compliance risks, and facilitates the management of
both current and future impacts arising from our business interactions. The Code of Suppliers is available for reference here.
We distributed newsletters in 2023 to enhance our engagements with domestic and international oil and gas vendors.
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Corporate
Governance Structure
Our GCG framework outlines the responsibilities of MedcoEnergi’s Board of Commissioners (BoC) and Board of Directors (BoD).
These boards guide and oversee how sustainability and climate considerations are integrated into our responsible business practices.
Board of Commissioners (BoC) To manage and leverage climate-related risks and opportunities,
The BoC oversees the BoD, ensuring that the GCG principles are the BoD is supported by the expertise of the Climate Change
applied throughout the organisation. The BoC also: and Energy Transition working groups. Support is also provided
• guides issues based on the Articles of Association; by key corporate functions like Corporate Sustainability and Risk
• chairs the Annual General Meeting of Shareholders (AGMS); Management (CSRM), Health and Safety (HSE), and Corporate
• monitors internal and external audits; Planning & Investment Appraisal.
• oversees risk management processes;
• makes performance-based remuneration recommendations. The BoD is responsible for reviewing and approving the
sustainability related disclosures i.e. sustainability report,
The BoC executes its duties with the support of the Audit CDP report etc., including material topics as identified in the
Committee, Nomination and Remuneration Committee, materiality assessment.
Sustainability and Risk Management Committee (SRMC) and
GCG Committee. Good Corporate Governance Committee
We prioritise fairness and ethics in all our business activities;
It oversees the BoD in managing risks across all business areas, these are fundamental to MedcoEnergi’s corporate governance
including those related to climate, with the support of the SRMC. and are supervised by the GCG Committee. This Committee
It also offers direction on the progress of our Climate Change oversees the assessments and reviews of GCG principles and
Strategy. ethical standards within the company. It also examines potential
conflicts of interest and breaches of conduct by the BoD and
Board of Directors (BoD) proposes necessary measures to maintain our ethical framework.
MedcoEnergi’s BoD ensures the company’s business and
operations are in line with shareholder interests and goals. Their As of 2023, this committee, comprising three Commissioners
roles involve: and four Directors, provided oversight of ethics issues within
• executing the company’s business and climate strategies in the Company. Furthermore, the Committee reviews the BoD’s
accordance with our core values; yearly reports on GCG practices and promotes the consistent
• managing risks; implementation of these principles.
• integrating climate initiatives;
• developing the annual Work Programme and Budget;
• evaluating our business and climate objectives and key
performance indicators (KPIs).
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Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
Sustainability-linked Remunerations
MedcoEnergi’s sustainability performance is considered when determining remuneration for all BoD and BoC members. The
Nomination & Remuneration Committee considers the Company’s annual sustainability performance, scopes of work, duties and
responsibilities, as well as the industry’s best practices. This committee prepares all remuneration proposals, which are presented by
the BoC at the Annual General Meeting of Shareholders (AGMS) to be approved by shareholders.
Corporate Governance Structure
Shareholders
Board of Commissioners
Delegation
Accountability
Sustainability & Risk Audit Committee
Management Committee
Nomination &
GCG Committee
Remuneration Committee
Board of Directors
Sustainability and Risk Management Governance
Sustainability and Risk Management During our Quarterly Performance Reviews (QPR), the functional
Committee (SRMC) teams report their risk registers and sustainability performance
The BoC oversees sustainability, climate, and risk management to the BoD. The BoD then provides updates to the BoC at SRMC
through the SRMC, focusing on significant risk with major meetings.
impact to the company, including climate-related risks and their
mitigation through the implementation of the climate change Climate Governance and the Working Groups
strategy. We manage both physical and transition climate risks and
opportunities as we strive to achieve our climate goals. These
Corporate Sustainability and Risk Management efforts are led by our BoD and assisted by various functions
(CSRM) within our Climate Governance structure. Both the Climate
The CSRM division supports the Board of Directors (BoD) to Change Working Group and the Energy Transition Working
advance our sustainability, climate, and risk management Group govern these climate-related initiatives. The former
agendas. It collaborates with various divisions, such as Corporate oversees GHG emissions reductions and physical climate risk
HSE (CHSE), Human Resources (HR), Relations and Security management while the latter focuses on transitioning to low-
(R&S), and Audit and Integrity Compliance (A&IC), to track the carbon energy as we expand our natural gas and renewable
progress toward our sustainability goals, ensuring these priorities energy portfolio.
are incorporated into asset levels and across business sectors.
56 PT Medco Energi Internasional Tbk 2023 Sustainability Report
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Empowering
EmpoweringOur OurPeople
People
Creating Opportunities Advancing Our Health
Building
BuildingaaResilient
Resilient
for Communities and Safety Culture
Business
Business
Organisational Structure of MedcoEnergi Climate Governance
Board of Commissioners
Sustainability & Risk
Management Committee
(SRMC)
Board of Directors
Climate Change Energy Transition
Working Group Working Group
GHG Emissions Reduction Physical Risks Management Low Carbon-Energy Transition
Sub-Working Group Sub-Working Group Sub-Working Group
Chief Executive Officer
Chief Financial Officer Chief Operating Officer Chief Administrative Officer (CEO)
(CFO) (COO) (CAO)
CF, CPIR CHSE, TA, & PDEE HR, R&S, & SCM CSRM & A&IC
Oil & Gas Power
Pre-dev/Projects, Drilling, Explorations, Assets Pre-dev/Projects, Operations, Assets
Sustainability Health Safety &
Human Relations & Health Safety & Supply Chain Human Environment, Social & Supply Chain
Development Resources Management
Resources Security Environment Management Division Security
Reporting Line Committee and Working Groups as part of sustainability and
Coordination Line climate change governance
Corporate
Notes:
CF : Corporate Finance HR : Human Resources
CPIR : Corporate Planning & Investor Relations R&S : Relations & Security
CHSE : Corporate Health, Safety & Environment SCM : Supply Chain Management
TA : Technical Assurance CSRM : Corporate Sustainability & Risk Management
PDEE : Project Development and Engineering Excellence A&IC : Audit & Integrity Compliance
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Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
The BoD is responsible for integrating all relevant climate- • Chief Operations Officer: Climate-related operational aspects
related risks and opportunities; it is supported by key functions of our oil & gas business and ensuring progress towards our
within their areas of work (please refer to the chart above). The greenhouse gas emission (GHG) targets.
BoD members have the following responsibilities: • Chief Administrative Officer: Overseeing corporate-level
• President Director: Climate-related strategic key stakeholder coordination and implementation of the Climate Change
engagement. Strategy.
• Chief Executive Officer: Developing, reviewing, and
implementing the Climate Change Strategy, and overseeing The BoD consistently addresses climate issues and tracks
corporate-level coordination and implementation of climate- progress toward achieving our climate goals during their weekly
related risk management. meetings, monthly and quarterly performance reviews, project
• Chief Financial Officer: Financial aspects, business planning, gate reviews, and SRMC meetings.
and investor relations in the implementation of the Climate
Change Strategy.
Risk
Management
At MedcoEnergi, we employ an Enterprise Risk Management Climate-related impacts influence all risk categories. We
(ERM) framework to detect, assess, and mitigate both existing acknowledge that energy transitions and the physical effects
and potential risks affecting the Company. of climate change offer both challenges and opportunities for
our business since we are a prominent player in the energy and
The ERM framework is aligned with ISO 31000:2018 standards natural resources sector.
and constitutes the governance component of our sustainability
framework. It enables us to thoroughly identify, assess, monitor The diagram below illustrates MedcoEnergi’s risk universe:
and report risks. This includes risks associated with our business
partners and spans all strategic, operational, social, and
community categories.
Risk Universe of MedcoEnergi
Climate Related Risks
Financial People and
Organisation
Strategic Operation
IT & Business Social and
Support Community
Regulatory HSE and
and Legal Security
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Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
In 2021, we conducted a climate scenario analysis to identify In 2023, we conducted a Climate Change Risk Assessment
physical and transitional risks and opportunities relevant to (CCRA) that enabled us to better understand the financial
MedcoEnergi. We then used the findings to develop mitigation impacts of climate change on our business. These CCRA results
measures that led to the establishment of our Climate Change can be read in page 115-117.
Strategy. This exercise complied with the recommendations of
the Task Force on Climate-Related Financial Disclosures (TCFD).
A detailed breakdown of the assessment’s methodology and
findings can be accessed in our TCFD report, issued in 2022.
Corporate Governance Assurance
Framework, Programmes and
Policies
We have established the Corporate Governance Assurance This framework comprises six components: Corporate Values
Framework to support our board in upholding and implementing and Our Code, Prevention, Detection, Response, Monitoring &
MedcoEnergi’s GCG and Our Code. It aims to support our Board’s Evaluation and Continuous Improvement.
oversight on compliance, accountability, and transparency
within the Company.
Continuous Improvement
t
en
m
ve Corporate
Values & Our
o
pr
Code
s Im
ou
tinu
Prevention
Con
Monitoring
& Evaluation
Response Detection
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Corporate Values and Our Code
Our Corporate Value and Our Code define the standards that govern how our people conduct their work, carry out responsibilities
and behave according to ethical values.
International Compliance Programmes
MedcoEnergi’s operations involve shipping and trading with business partners. However, geopolitical dynamics tend to expose our
marine operations to international sanctions. As part of our efforts to mitigate these risks, in 2023 we expanded our compliance
efforts in the following marine sectors:
• Marine contractors due diligence during marine certification services tendering processes in the Corridor asset.
• Marine sanctions workshops for our marine operations leadership.
• International Ship and Port Security Code (ISPS) and code audits for international export terminals in Indonesia used by
MedcoEnergi.
The following table provides an overview of our international compliance programmes in corporate sanction compliance, anti-
money laundering, and due diligence:
International Compliance Programmes
Corporate Sanctions Compliance Anti-Money Laundering
In 2023, we continued the implementation of our Corporate We have established an Anti Money Laundering (AML) Policy which
Sanctions Compliance Policy and Programme. was formalised in March 2024. The policy is one of our commitments
to compliance in managing the risks of money laundering arising
Our Sanction Compliance Journey is highlighted in the timeline below: from extensive engagements with Business Partners.
The upgrade began with a revised Our Code in May 2020 to
2021 prevent money laundering and ensure compliance. In improving
MedcoEnergi issued our Corporate Sanction Compliance Policy and MedcoEnergi’s AML policy, we have:
launched our Sanction Compliance Programme. This involves a series
of Sanctions Awareness and Risk Assessment sessions attended by 2021
our divisions.
Extended the campaign of MedcoEnergi’s AML Commitment, Real
Situation examples, and mitigation measures to our registered
2022 suppliers through one of the common risks in the Business Ethics
Awareness Session at the annual SCM Vendor Day event. This
MedcoEnergi conducted our first Compliance Awareness session initiative has been implemented every year until now.
for Medco Power. The session was attended by various business
functions from Finance & Treasury, Supply Chain Management, 2022
Business Development, to Legal and Corporate Communications.
• Communicated our AML commitment and expectations
to our vendors through the 4th Edition of the Compliance
e-Newsletter to our suppliers.
2023 • Launched our Code of Supplier, including the AML expectation.
We targeted sanction compliance in the marine sector to prevent • A&IC representatives participated in the external online webinar
smuggling, criminal activities, and the facilitation of terrorist “AML Trends & Challenges,” held in collaboration with United
operations and weapons of mass destruction (WMD). Focus areas Nations Office on Drugs and Crime (UNODC) & Hogan Lovells
included Iran, North Korea, and Syria. DFNP
• Conducted a self-assessment on the current adequacy of our
The A&IC and CSRM divisions held a 2023 Marine Sanction Risk AML compliance programme based on reputable standards.
Assessment workshop in June, educating 10 key marine personnel
from Corridor, South Natuna Sea Block B, and East Java assets. In
August, we conducted a similar workshop at JOB Tomori, attended by 2023
13 marine personnel. • Started a project to develop and benchmark the mapping of AML
Corporate Policy.
• Related employees were trained on AML Awareness &
Understanding by a reputable training provider.
• Attended the Southeast Asia Financial Crime Symposium
conducted by Deloitte.
• Consulted with an external law firm related to AML Corporate
Policy.
2024
Launched the AML Corporate Policy and relevant training
programmes. As the next step, we aim to embark on a Corporate AML
Programme in 2024. Our commitment to Anti Money Laundering is
available on our website here.
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Creating Opportunities Advancing Our Health
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Business
Due Diligence
Continuing our Due Diligence (DD) efforts to cover third-party risks, Our DD journey is summarised below:
we conducted focused due diligence on marine contracts and related
licenses and permits for Marine Operations in 2023. This aligns with 2021 2022 2023
our DD focus areas for the next five years, which are determined by
risk escalation. Oil & Gas Domestic 11 20 8
Oil & Gas
2 27 15
International
2027
Power 9 9 3
2026
2025 JOB Tomori 3 3 3
2024
Total number
2023
of Vendor
Due Diligence 25 59 29
Conducted
Marine License and Logistic and Manpower Security
permit inspection services services
Note: The 2021-2022 data have been related to include updated figures and
oil & gas international
Prevention
We prevent violations of our ethical standards and policies through several initiatives that uphold good governance within our
organisation.
Ethics Ambassador Programme
Our Ethics Ambassador Programme cultivates ethical compliance Medco Oil & Gas and as “Ethics Ambassador” in Medco Power.
by actively involving employees. Selected participants undergo This Ethics Ambassador Programme was evaluated during
a comprehensive training programme focused on ethics, the first half of 2023 to measure its success. It offered key
compliance, and risk management. After completing the training, opportunities to provide feedback, which was highlighted by the
they serve as “Ethics Liaison Officers” (ELOs) in Corporate and COO’s involvement.
Asset Corporate and Oil & Gas Power
Programme Title Ethics Liaison Officers (ELO) Programme Compliance Champion Programme
No. of Personnel in 2023 76 28
Roles and Responsibilities of Personnel • Lead discussions and deliver presentations on • Communicate and discuss issues related to
ethics to the group. ethics and compliance from subsidiaries to
• Provide awareness and support to the group by Medco Power’s head office.
using ELO materials (e.g. presentations, case • Monitor the design and implementation of the
studies, posters and infographics). Anti-Bribery Management Systems (ABMS)
• Participate in corporate campaigns (including and other bribery-related matters.
Ethics & Compliance Weeks and Anti- • Monitor compliance of ABMS with ISO 37001
Corruption Day) and distribute campaign tools requirements.
coordinated by the A&IC divisions. • Report on ABMS performance to top
management and other compliance-related
functions.
The outreach of our Ethics Ambassador Programme is shown in the table below1 :
Asset 2021 2022 2023
Corporate and Domestic Oil & Gas 1,360 2,530 2,036
International Oil & Gas 83 74 38
Corridor2 - 1,311 -
Power 13 13 359
Number of Participants 1,456 3,928 2,433
1 The number of participants in the ELO Programme includes employees and contractors. Figures for 2021-2022 have been restated to include Medco Power. Outreach for 2021-2022
was calculated based on offline and online attendance records, while in 2023 it was based on records that were made fully online.
2 Corridor was integrated into MedcoEnergi in 2022. Outreach is therefore shown as part of domestic oil & gas in 2023.
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Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
Communication and Educational Initiatives
Communicating and educating ethics & compliance to • We emphasized the suppliers to meet ethical standards and
employees are keys to successfully establishing a high integrity support sustainability. We also provided guidelines to help our
culture in any organization. Employees are empowered to employees engage more ethically in the election year.
directly participate in the culture building. MedcoEnergi considers • We celebrated International Anti-Corruption Day by hosting
that these preventive efforts are more effective than corrective a quiz competition involving all employees at our oil & gas
actions in combating corruption and other compliance risks. assets. Meanwhile, we organised a GCG-COC online quiz as
The following communication and education initiatives were well as rhyme and photoshoot competitions at our power
conducted in 2023: assets and held three anti-corruption seminars at JOB Tomori.
• Compliance sessions in Block A, Rimau, Lematang, Palembang • Corridor Youth Integrity – Take Actions as part of International
Office, and JOB Tomori. In 2023, we were able to conduct Anti-Corruption Day commemoration. Please refer to page 72
more compliance sessions for the assets and reach out to and 76.
more participants because the travel ban due to Covid-19 was • A social media guidance seminar was conducted to promote
revoked. ethical online conduct among employees in Medco Power.
• The Year-End Town Hall for Finance Division in the Oil & Gas
assets.
• Nine new ethics awareness materials were introduced,
focusing on the Code of Suppliers and the implications of the
upcoming political year.
Contractor Employee Ethics Awareness
A&IC Division, in collaboration with HR and Digital Information Technology (DIT), held a virtual Contractor Employee Ethics Awareness
Training on 29 November 2023. This session is part of A&IC’s educational efforts to underscore our commitment to ethics. The
training was attended by 669 oil & gas Indonesian contractor employees. It aimed to raise awareness about associated risks, such as
undue influence and conflicts of interest, and to address the challenges of a digital work environment.
Annual Statement of Adherence (SoA) and
Conflict of Interest (CoI) Deterrence
MedcoEnergi manages conflicts of interest by requiring employees to submit Statements of Adherence (SoA) and Conflict of Interest
(CoI) declarations which we review and monitor their completions annually. Assurance tests in SoA were expanded in 2023 to cover
personal data privacy, human rights, political involvement, and anti-money laundering awareness. We received 97.57% or 2,534
submissions for SoA from permanent employees of Medco Oil & Gas and 99.89% or 900 submissions from permanent employees
of Medco Power in 2023.1 In total, we received 5,733 SoA submissions from permanent employees and third party contractors in
Medco Oil & Gas and Medco Power in 2023. However, the limited assurance process, at the moment, only covers the permanent
employees. The results indicated employees’ thorough understanding of Our Code and related policies. We also received 5,8552 CoI
submissions as part of annual CoI declaration process. The CoI submissions helped us evaluate and mitigate risks across ten categories,
enabling us to enhance our campaign programmes. We also conducted pilot project of 2023 CoI declaration for Contractor Services
in Corridor. Please refer to page 68.
Medco Power hosted sharing sessions on CoI declarations to SCM Division (left picture) and
PT Tanjung Jati B Power Services, Indonesia (right picture)
1 SoA numbers (GRI 205-2) are assured.
2 CoI numbers are not assured.
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Creating Opportunities Advancing Our Health
Building a Resilient
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Business
Detection
MedcoEnergi has established a fraud detection programme to flag unusual patterns in financial transactions, employee behaviour,
and other assets that may indicate fraudulent activities. This programme includes fraud detection procedures, such as data analysis,
transaction monitoring, and monitoring of both employees and third-parties. The Company has also implemented systems to detect
and report misconduct against its Our Code, allowing for appropriate action to be taken by the relevant parties.
MedcoEnergi Internal Ethics Hotline
Our employees have access to an internal hotline for any compliance-related enquiries and an external hotline for reporting fraud
and concerns regarding misconduct.
Internal Ethics Hotline
Office Visit: The Energy Bulding - Audit & Integrity Compliance
Division,50th Floor, SCBD Lot 11A, Jl. Jendral Sudirman Kav 52-53,
Jakarta 12190
Hotline Email: EthicsHotline@medcoenergi.com
Most inquiries on our internal hotline in 2023 were requests for guidance on conflicts of interest, gifts and entertainment, legal
compliance, and anti-corruption policies.
We observed a decline in the number of inquiries received in 2023. It corresponded with an increase in our communication and
training, particularly classroom training sessions and Fraud Risk Assessment workshops. These trainings enabled us to directly address
inquiries during the sessions.
MedcoEnergi Internal Hotline
300
Total Received Inquiries
250
244
200
203
150
100 118
50
0
2021 2022 2023
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Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
Fraud Risk Assessment (FRA) Workshops
Fraud Risk Assessment is a powerful tool to identify fraud risks.
It is a tool that staffs of key divisions need to use and require
MedcoEnergi FRA Workshop Participants
certain skillset. We continuously enhance our efforts to combat
fraud through our FRA Workshops, which are aimed at training
100
participants to recognise and counteract fraud within their areas
Number of Participants
of responsibility. 80 95
60
Both Corridor and Medco Ratch Power Riau (MRPR) hosted two
40
FRA Workshops in 2023 with 47 and 20 attendees respectively. 35 47
20 55
These workshops focused on anti-bribery management 20
13
systems, procurement fraud, and case studies. In addition, 0
2021 2022 2023
two refresher courses for both our Onshore Asset Leadership
Corporate Oil & Gas Power
employees and the Corporate Relation & Security team had 33
and 62 participants each. Both fraud management and past case
studies were revisited.
2023 Fraud Risk Assessment Workshop Batch 2 in Corridor, Indonesia
2023 Fraud Risk Assessment Refresher Workshop, Indonesia
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Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
Internal Audits
We conduct risk-based internal audits of all our operations at In 2023, we extended the International Ship and Port Facility
least once every three years to provide independent objective Security Audit, originally implemented in the Corridor Asset, to
assurances and advice to the MedcoEnergi BoD, corporate South Natuna Sea Block B and JOB Tomori. It ensures that our
divisions, and business units. These audits also enable us to terminals/special terminals and ports fully comply with the ISPS
assess the efficiency and effectiveness of our operations Code1.
In addition, we conducted the annual Internal Audit of the Anti-
Bribery Management System (ABMS) to monitor our compliance
with ISO 37001:2016 ABMS requirements and prepare for
regular surveillance audits conducted by the independent
certification body. Please refer to page 70-71.
2021 2022 2023
Mexico Block 10, Tanzania Block Mexico Block 12,
Corporate PT Donggi Senoro LNG (DSLNG)
1&4 PT Transportasi Gas Indonesia
Operation Technology Sampang,
Division/ ISPS Code Audit for Corridor,
- Well Operation, Security and
Department Natuna and JOB Tomori
Marine Corridor
Oil & Gas
South Natuna Sea Block B, Medco Oman (MLCC), Rimau &
Internal Audit - (Domestic and Sampang, Madura Offshore
Bangkanai Lematang, Block A (in progress)
Oil & Gas International)
Partnership with DSLNG (in progress), JOB Tomori
JOB Tomori, JOB Simenggaris JOB Simenggaris
JOB (in progress)
COVID-19 handling, Contractor
Internal Control COVID-19 handling, CHSEMS,
Safety Management System -
Evaluations marine, social programmes
(CSMS), and social programmes
Headquarters - - -
PT Energi Prima Elektrika (EPE),
PT Mitra Energi Batam (MEB),
PT Energi Listrik Batam (ELB), PT Multidaya Prima Elektrindo
PT Dalle Energy Batam (DEB),
Internal Audit - PT Medco Cahaya Geothermal (MPE), Sarulla Operations LTD
Sarulla Operations LTD (SOL),
Power (MCG), PT Bio Jatropha Indonesia (SOL), PT Medco Ratch Power
Subsidiaries PT Medco Hidro Indonesia (MHI),
(BJI), PT Pembangkitan Pusaka Services (MRPR), PT Medco Power
PT Medco Power Solar Sumbawa
Parahiangan (PPP), Servis Indonesia (MPSI),
(MPSOS), PT Tanjung Jati B Power
PT Tanjung Jati B Power Services PT Mitra Energi Batam (MEB),
Services (TJBPS)
PT Dalle Energy Batam (DEB)
International:
International:
Bualuang
Domestic: Bualuang
Internal Audit Procure-to-Pay (P2P) Oil & Gas
Oil & Gas Domestic:
on Anti Bribery Domestic, South Natuna Sea Domestic:
Corridor, P2P Oil & Gas Domestic,
Management Block B, JOB Tomori P2P Oil & Gas Domestic, South
South Natuna Sea Block B, JOB
System (ABMS) Natuna Sea Block B, JOB Tomori
Tomori
Medco Power Head Office, Medco Power Head Office, Medco Power Head Office,
Power
MEB/DEB, ELB, TJBPS MEB/DEB, ELB, TJBPS MEB/DEB, ELB, TJBPS
1 The ISPS Code is a set of measures to enhance the security of ships and port facilities.
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Third Party Risk Management Programmes
Engaging Third Parties
MedcoEnergi proactively communicates with business partners as part of our third-party risk and compliance management.
We reviewed the programme and adopted risk-based approaches to establish long-term action plans that enhance our Corporate
Third-Party Compliance programmes between 2023-2027. In 2023, we also familiarised the Code of Suppliers to our oil & gas
domestic and international vendors, including in Thailand and Oman.
2023-2024 MedcoEnergi Third Party Compliance Programme Framework
• Enterprise Risk Management (ERM) • Our Code (Update 2020)
• Quaterly Performance Reviews • Susatainability Reports
• Programme Evaluation Analyses • ISO37001 Anti-Bribery Management
• Programme SharePoint & Database System (AMBS)
6 1
• Company’s Policies related to anti-
corruption & third parties
• SKK Migas Pedoman Tata Kerja (PTK)
and other relevant laws & regulations
• Vendor Audit Guideline (2016)
• Governance Roadmap
• Vendor Audit (Contract Evaluate Commit • Code of Supplier (Established 2022)
Compliance and Anti-Bribery &
Corruption*)
• Online Vendor Survey (all
5 2
suppliers & high-risk suppliers) • Due Diligence Guidelines
(Updated 2023-2024) (Medco E&P Natuna Ltd.
• Vendor Surveillance Check* (MEPN), Medco E&P Thailand
• Professional Network Check MedcoEnergi Third Bauluang Ltd. (MTBL), Medco
• Whistleblowing Handling Detect Party Compliance Source & Power Indonesia (MPI))
• High-risk Third-Party Screening Programme Framework Procure • Due Diligence* for high-risk
suppliers (Corporate-EP
Domestic, MTBL, MPI, JOB
Tomori Pertamina)
• Ethics Liaison Officer (ELO) • Corporate Sanction Compliance
Programme Policy (Established 2021):
• Business Ethics Refresher for Communicate Selected Sanctoin Screening
Contractor Employees Contract • Anti-Money Laundering Policy
& Educate
4 3
• Business Ethics Awareness for (Established in March 2024)
Suppliers on Vendor Day (Corporate
Domestic, MTBL & Medco Oman LLC)
• Compliance e-Newsletter to Suppliers • Integrated General Terms & Conditions in contract
(incl. International Compliance agreements (Business, Ethics, Right to Audit,
Programme) Anti-Corruption Laws) for Oil & Gas Domestic &
• International Anti-Corruption Day International
• Support International Compliance Programmes,
through:
• Corporate Sanctions Compliance Policies (2021)
Remaks • Initiative in Personal Data Privacy Protection
• Blue Font: indicate the programme is new or updated or currently • Initiative in Know-Your-costumers (KYC) of
being updated Business Ethics/Anti-Corruption programmes to
• *indicate that the programme is supported by third party consultant Business Partners Requirements
• Maintain Export Control commitment (Corridor
asset) to supplier
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Creating Opportunities Advancing Our Health
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Business
Our Third Party Compliance Programme
Meeting the Know-Your-Customers (KYC) Requirements from Our Partners
KYC is a due diligence process used by our buyers and lenders to assess and mitigate third-party risks. At MedcoEnergi, we do not
only undergo the KYC process but also apply it to evaluate our partners. In 2023, our A&IC Division, along with Marine Operations,
Corporate Finance and Treasury, and SCM, conducted KYC efforts to ensure we meet all KYC inquiries thoroughly. These efforts
addressed anti-corruption, business ethics, human rights, sanction compliances, and anti-money laundering topics.
Third-Party Risk Detection Initiatives
Our initiatives maintain business transparency and stakeholder trust in our governance with third parties.
Anti-Bribery and Corruption (ABC), Contract Compliance, and Internal Control Vendor Audit
MedcoEnergi carries out three types of vendor audits: ABC, Contract Compliance, and Internal Control Vendor Audits. We completed
22 ABC Vendor Audits, including at our Bualuang asset in Thailand. In 2023, our Internal Control Vendor Audit identified compliance
risks, assessed contract compliance, and enhanced operational and business controls. We evaluated the internal controls of selected
vendors at the corporate level and within our domestic oil and gas assets, with plans to extend these audits to our international assets
in the future.
No Categories Assets 2021 2022 2023
1 Domestic 16 13 13
Oil & Gas
International - 4 2
2 Power 5 4 3
3 JOB Tomori 1 1 4
Number of ABC, Contract Compliance, and Internal Control Vendor
22 22 22
Audits
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Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our
Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations
Vendor Day The focused on topics related to HSE, SCM, ethics & compliance,
On September 7, 2023, the Bualuang asset and together with and climate change. Highlights included a presentation on the
A&IC Division hosted the 2023 Vendor Day via online, attended HSE Vendor Audit, MedcoEnergi’s sustainability and climate
by 160 participants from 140 of our 179 active vendors. This change commitments, ethical compliance due diligence, and
event enhanced all vendors’ understanding of Bualuang’s the Code of Suppliers.
procedures in HSE, SCM, sustainability, and ethics & compliance.
It did not only introduced the new top management and their A separate Vendor Day for domestic oil & gas operations took
expectations, but also covered standard requirements, such as place in December 2023. It hosted 305 attendees from 263
the HSE Management System, Operational Excellence, and vendors and focused on HSE, climate change, business ethics,
ISO37001 ABMS. service quality, IoG e-Commerce, procurement, Centralised
Integrated Vendor Database (CIVD), and local content.
Vendor Day Participants in 2023
Assets Oil & Gas Indonesia Power JOB Tomori Bualuang, Thailand
Participants 263 vendors 37 vendors 33 vendors 140 vendors
2023 Online Vendor Day for Bualuang, Thailand
Strengthening Our Third Party Compliance Programmes
We implemented several initiatives in 2023 to strengthen our third-party compliance programmes:
1. Vendor Compliance Survey in Oman: We conducted a compliance survey for a select group of vendors in Oman, targeting 20 high-
risk and local community contractors. The survey focused on key topics related to the Anti-Bribery Management System (ABMS).
2. CoI Declaration for Contractor Services in Corridor: We broadened the CoI declaration process for service contractors in the Corridor
Asset using a Microsoft platform, achieving a 100% completion rate with 2,152 submissions.
3. Joint Vendor Audit with HSE: For the first time, we carried out a joint vendor audit with the HSE team for Bualuang.
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Responses
We are committed to adhering strictly to Our Code, enforcing a Zero Tolerance policy against bribery, corruption, fraud, and other
ethical violations. Validated claims will result in immediate remedial actions.
Ethics and Compliance Working Group
We examined all allegation reports and implemented corrective measures. We determined the appropriate disciplinary actions that
complied with our procedures for addressing allegation reports. These procedures involved a thorough review process by the Ethics
and Compliance Working Group, consisting of the Board of Directors (BoD) level, the Head of Corporate A&IC, HR, Legal and other
relevant function as necessary. This collaborative approach ensures an objective and fair process for making impartial, uniform, and
equitable resolutions. This working group will effectively become the Ethics and Compliance Committee in 2024.
Incidents Disclosures
We received 63 reports of alleged violations through whistleblowing channels in 2023, a decrease from the 73 reports received in
20221. These reports covered a wide range of concerns, including counterfeiting, intellectual property rights, theft, inappropriate use
of assets, procurement frauds, and other fraudulent activities.
The actions taken in 2023 involved imposing appropriate sanctions on 45 individuals, including employees, contractors, and business
partners. These ranged from verbal warnings and reprimand letters to formal written warnings and terminations of employment.
In addition to imposing disciplinary actions, we have also implemented a Person Checking System. This system was introduced to
prevent hiring employees with poor integrity records. It will serve as a critical component in our employee recruitment process.
80
70
73
Number of Allegation Reports and
63
Disciplinary Actions Imposed
60
50
45
40
38
30
20 21
10
0
3
2021 2022 2023
Allegation Reports Disciplinary Actions Imposed
1 Allegation reports in 2021-2022 covered all operating assets, while in 2023 they also included our non-operated asset of JOB Tomori.
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Monitoring and Evaluations
Monitoring and evaluating our responses to claims or reports help us measure how effective our actions are. This in turn enhances the
transparency and accountability of our corporate governance.
Anti-Bribery Management System (ABMS)
ABMS is designed to detect, prevent and respond to bribery and corruption. We have continuously enhanced it since its inception in
2018.
We achieved two ISO 37001 ABMS recertifications for this reporting year for Procure-to-Pay (P2P) oil & gas domestic assets, which
included expansions to Sampang, Madura Offshore, and Bangkanai, and the Medco Power head office.
Our ISO 37001 ABMS progressed well with the following milestones:
• 2nd surveillance for South Natuna Sea Block B, JOB Tomori, and Power assets (MEB/DEB, ELB, and TJBPS);
• 1st surveillance for Bualuang asset in Thailand;
• Completed audits and expanded certification to our Corridor asset.
Further details on our corporate-level ABMS journey can be accessed here.
ABMS Implementations in the Corridor Asset
Our Journey
We are steadfastly committed to maintaining the highest ethical standards as we apply our GCG principles across our operations,
irrespective of location. As a result, in 2023, our Corridor asset obtained the ISO 37001 ABMS Certification.
Novemb e r
2022 -
Fe br u ary March June Ju ly Oc t o ber Decemb er
2023 20 2 3 2023 2023 2023 2023
Conducted • Issued a memo Conducted a Completed an Successfully Obtained ISO
two batches of to formalise series of ABMS internal audit on completed the 37001 ABMS
Fraud/Bribery the ABMS awareness ABMS. 1st and 2nd Certification.
Risk Assessment commitment campaigns Certification
Workshops and for Corridor Audits.
implementation employees.
in the Corridor
• Held ISO
37001 ABMS
awareness
training for
the Corridor
Leadership
Team
• Conducted a
self-assessment
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Our Programmes and Initiatives
The following highlights our key programmes and initiatives implemented in Corridor:
ABMS Implementation in Corridor: Key programmes and initiatives in 2023
Prevention
Established and
implemented
99.6% Conducted two batches of Fraud & Bribery
Risk Assessment Workshops involving the
of our Corridor Corridor Leadership Team, with a focus on
ABMS employees Anti-Bribery Management Systems and
guidelines signed the SoA procurement fraud.
Implemented a due Conducted Held a series of ABMS awareness
diligence process for Marine sessions for the Corridor Leadership
government intermediary Sanctions Team, field employees, and
contracts, marine contracts, Workshop the Community Development
and sanctions compliance Implementing Partners
263 oil & gas domestic vendors, Completed the alignment
Implemented the Gift
including Corridor, attended of the Integrity Champion
& Entertainment (G&E)
our 2023 Vendor Day and roles in Corridor into
and Government Hosting
participated in the vendor Ethics Liaison Officer
(GH) Declarations
compliance session (ELO) programme
Detection
100% Completed vendor audits to review
ABMS maturity and ensure contract
compliance among high-risk vendors
of Corridor employees signed
the CoI declaration form
100% Completed internal audit of ABMS for
Corridor
of our selected service contractors in Corridor
signed the CoI declaration form, resulting in
2,152 submissions
Response
Conducted a Maturity Assessment Raised awareness of the Implemented
of the ISO 37002 Whistleblowing whistleblowing channel and Person
Management System and disciplinary actions for violations Checking
benchmarked it against other related to our Code during our System
Production Sharing Contracts (PSC) ABMS awareness sessions
Monitoring and Evaluation
Conducted regular reviews of our Seeking Conducted the ABMS Maturity Assessment and
Guidance report the ISO 37001 ABMS Certification Audit
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2023 Youth Integrity Workshop At Corridor
As part of the Corridor ISO 37001 ABMS implementation, we launched our first Youth Integrity Programme at Medco Oil & Gas,
themed “Empowering Future Leaders.” The event was attended by 112 participants from 19 prominent universities in Palembang,
all of whom are scholarship recipients from Corridor, and engaged in an interactive workshop. They deepened their understanding
of corruption, ethics, integrity, explored MedcoEnergi’s ESG initiatives, discussed social management systems, professional
competencies, and compliance-related professions.
2023 Youth Integrity Programme in Palembang, Indonesia
Continuous Improvement
We shall continuously update our standards, policies and initiatives in line with MedcoEnergi’s expanding portfolio. These also provide
feedback mechanism to the organisation on room for improvements.
Assurance and Consulting Excellence (ACE) and Integrity
Compliance and Ethics (ICE) Award 2023
At the 4th International Convention on Indonesia Upstream Oil & Gas September 2023 in Bali, MedcoEnergi was presented with two
SKK Migas awards in the Audit & Compliance category:
1. Medco E&P Indonesia (MEPI) obtained the ACE Award for its exemplary internal audit functions, which offer independent
assurances and advice, use advanced technologies, and uphold the highest standards.
2. The non-operated asset, JOB Tomori, received the ICE Award for its excellent integrity compliances, ethical practices, and fraud
preventions via its anti-bribery management system.
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MEPI, represented by Mr. Ronny Siahaan (left), and JOB Tomori, represented by Mr. Benny Sidik (right),
received the ACE and ICE Awards in Bali, Indonesia
Harassment – Free Workplace (HFW)
We are dedicated to fostering a harassment-free workplace, as outlined in our Code and communicated throughout the organisation.
We reviewed Minister of Manpower Decree No. 88 Year 2023 concerning Sexual Harassment Prevention and Mitigation Guidelines
and conducted a thorough analysis, benchmarking against industry standards to enhance our workplace environment.
We are also developing comprehensive programmes such as awareness campaigns, reporting channels, task forces, and guidelines,
which are to be launched in 2024. Our commitments extend beyond mere compliance with laws: we strive to create a culture where
everyone feels respected and can thrive.
Personal Data Protection Act (PDPA)
We are actively preparing for upcoming regulatory changes, including the Indonesia Personal Data Protection (PDP) Law No. 27 Year
2022, which is set to be enacted in October 2024. We began assessing our readiness for compliance, evaluating policies, procedures,
and systems. We conducted two half-day workshops in August 2023 with our HR Function to identify strengths and areas for
improvement in safeguarding personal data.
We plan to extend this assessment to our Digital Information Technology, Supply Chain Management, Relations & Security and other
relevant functions in 2024.
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Whistleblowing
Channels
We offer whistleblowing channels to protect our employees and and may lead to disciplinary measures, including potential
the Company against violations and misconduct. These channels terminations of employment. Whistleblowing reports are
encourage all parties to report concerns, especially regarding processed under the direct oversight of our Board of Directors.
fraud, corruption, bribery, conflicts of interest, breaches of our
Code, and unethical behaviour. These also provide feedback As part of our commitment to continuous improvements, we
mechanism to the organisation on room for improvements. plan to adopt the ISO 37002 Whistleblowing Management
System as guidelines to implement, manage, evaluate, maintain,
We use platforms such as our website, telephone, SMS, and and improve our whistleblowing management systems. This
WhatsApp, available in Indonesian, English, Thai, Arabic, and reporting year, we began preparations that include personnel
Mandarin. Our whistleblowing channels maintain anonymity to competency development, maturity self-assessments, and
prevent retaliation. MedcoEnergi seriously addresses retaliation benchmarking with other oil & gas companies. We aim to
reports, thoroughly validating them and determining the complete the adoption of ISO 37002 by 2024.
necessary actions. Acts of retaliation are considered misconduct
External Ethics Hotline
External Ethics Hotline
(managed by appointed indenpendent party)
INDONESIA THAILAND OMAN MANDARIN
Phone Phone Phone Phone
0800-150-3020 1800-010-316 80074565 0800-150-3020
Text Messages (SMS) Text Messages (SMS) Text Messages (SMS) Text Messages (SMS)
& WhatsApp Messenger & WhatsApp Messenger
(+66)65986 1887 (+27)72 014 4445
(+62-813)8870-3300 (+62-813)8870-3300
WhatsApp Messenger WhatsApp Messenger
(+62-813)8870-3300 (+62-813)8870-3300
Direct website: https://idn.deloitte-halo.com/lapor-medcoenergi/ | Email: lapor-medcoenergi@tipoffs.com.sg
To maintain independence, we employ PT Deloitte Advis Indonesia (Deloitte) to operate our external whistleblowing channels.
Deloitte helps screen and categorise incoming information and submits reports to the President Director and Head of Corporate
Audit & Integrity Compliance. MedcoEnergi then conducts an independent investigation and takes the necessary follow-up actions.
Anyone may file a report of a violation via channels listed on the MedcoEnergi website here or via the Deloitte website here.
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Transparency in
Payment to Government
Interactions with the government exposes us to potential ethical risks since we are heavily regulated. We therefore believe that
transparency is essential to not only maintain trust and accountability, but also promote fair competition and mitigate ethical risks.
Our approach includes:
• Comprehensive system reporting and documentation: accurately recording all transactions, including gifts, entertainment, and
facilities provided to government officials, with standardized processes to simplify the process across our operations.
• Strict compliance with laws: adhering to Indonesia’s anti-corruption laws and international regulations governing financial
transactions with government bodies.
• Employee education and awareness: educating employees at all levels about the importance of transparency, conducting regular
training to ensure compliance with laws, company policies, and best practices.
Our commitment to transparency in payment to government is also demonstrated by our contribution to Indonesia’s Extractive
Industry Transparency Initiative1 (EITI). The latest Report from Indonesia can be accessed here.
Anti-Corruption
Collective Actions
MedcoEnergi’s anti-corruption efforts include partnerships with the stakeholders to foster integrity in the industry. These collective
actions are important because they allow us to work together to build an anti-corruption culture that could otherwise not be done by
an individual company.
• Engagements with the Indonesian Petroleum Association Ethics and Compliance Committee (IPA ECC)
• Contributions to local anti-corruption initiatives
• Joint anti-corruption efforts with international organisations
In 2023, we participated in the several anti-corruption events, including the ones below.
• IPA ECC and Pertamina University held a lecture on “Achieving Business Sustainability through Personal Integrity” in March 2023
IPA ECC and Pertamina University held a general lecture with a theme of
Achieving Business Sustainability through Personal Integrity
1 The Extractive Industries Transparency Initiative (EITI) is a Norwegian-based organization that seeks to establish a global standard for the good governance of oil, gas and mineral
resources.
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• MedcoEnergi spoke on “Compliance and Governance in Sustainable Energy” at the IPA Convex in July 2023.
MedcoEnergi presented “Compliance and Governance in Upstream Oil & Gas Industry”
in 2023 IPA Conference and Exhibition, South Tangerang, Indonesia
• MedcoEnergi and BP shared integrity-building strategies in a knowledge-sharing session with Petronas in November 2023.
• We joined the Indonesian Oil and Gas Auditor Forum (Forum Auditor Migas Indonesia/FAMI) Summit in Bali on September 2023
to discuss the following:
• Governance, Risk, and Compliance (GRC) transformations;
• IT audits and their roles in digital security;
• Integrated frameworks for fraud prevention, detection, and investigation;
• Cyberattacks.
Youth Integrity – Taking Actions
Following its Youth Integrity Workshop, our Corridor asset held a competition from October to November 2023 involving 14 college
students. This event was conducted as part of the International Anti-Corruption Day. This competition further supported these
university students’ efforts to promote integrity in public service while combating corruption and promoting social justice.
After the event, these students were motivated to raise awareness about corruption, collaborate with universities and government
institutions, advocate transparency and policy reforms, and monitor public funds, all while upholding their own integrity. These
students will be key contributors to creating a more equitable, transparent, and thriving society. We also believe that the anti-
corruption culture should be developed from an early age.
2023 Youth Integrity Programme, Palembang, Indonesia
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Promoting Children’s Rights and Reducing
School Bullying
Our Bualuang asset conducted training for 70 students from the Ban Pak Nam Chumphon School. This training promoted children’s
rights and aimed to reduce school bullying. It was followed by an educational trip to the Chumphon Marine Learning Centre. Our
efforts sought to instil a culture of respect for human rights and foster ethical education from an early age. This initiative is part of our
commitment to adopt best practices for communicating human rights within communities.
A training programme for Ban Pak Nam Chumphon School students to promote children’s rights and
prevent school bullying in Thailand
Public
Policies
As reflected in Our Code: MedcoEnergi does not support any political party and does not make contributions or donations to any
political party or affiliated organisation in any location we operate.
Nevertheless, we fully respect the freedom of our employees to participate in political processes and support their choices of
parties and candidates. However, individuals actively participating in political activities (including as members of a political party or
campaigning for elections), must do so in accordance with our policies and regulations. All employees receive internal communications
regarding our stance on donations and contributions before an election takes place.
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Alignment of Sustainability
Initiatives with The UN SDGs
The following table maps our sustainability initiatives to pursue excellence in our governance against the UN’s SDG targets. Please
note that this mapping does not mean that MedcoEnergi claims to have measured or set targets for host governments in our
operational areas in terms of achieving the UN’s SDGs.
UN SDGs Relevant Targets Key Initiatives
• Policies and initiatives on ethics and compliance, fraud risks, human rights, anti-bribery and
corruption;
4.7
• Ethics Ambassador Programme;
• Anti-Corruption Collective Actions
12.6 • Publication of sustainability reporting
• Policies and initiatives on ethics and compliance, fraud risks, human rights, anti-bribery, anti money
laundering, and corruption;
• Annual SoA and CoI declarations;
16.3, 16.5, 16.6, 16.7
• Regular risk-based internal audits of all our operations
• Third party risk management programme;
• Whistleblowing Channel
• External collaborations in promoting business transparency, integrity and anti-corruption
17.17
measures.
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Action
Plans
The following action plans have been developed to help us meet our objectives and continue pursuing excellence in governance. We
regularly measure, monitor, and report on our progress and performance against these actions.
Category Short-Term Actions Medium/Long-Term Actions Status
Anti-Corruption Require all employees to sign an annual anti-corruption declaration after Employees have signed anti-corruption
completing online evaluations. declarations annually (May - June)
Conduct communication and education training in anti-corruption Conducted 2023 compliance sessions in Block
A, Rimau, Lematang, Palembang office, South
Natuna Sea Block B, JOB Tomori and Finance
functions.
Total participants: 858 people
Conduct training for hosting government officials, Advanced Fraud Risk Completed FRA Workshops in Corridor in January
Assessments (FRAs) for new assets (post-mergers and acquisitions) to & February 2023, in MRPR in December 2023 and
support growth strategies as well as one refresher session for organisations 2 refresher sessions in Onshore Leadership in June
in high-risk areas. Also discuss anti-corruption programmes in oil & gas 2023 and in Corporate Relations & Security in July
forums. & Aug 2023
Total participants: 162 people
Align Integrity Champion ex Continue the ELO programme Completed the alignment of Integrity Champion
Corridor Programme with Ethics in domestic and international in Corridor in Ethics Liaison Officer (ELO)
Liaison Officer (ELO) programme. business units. programme and continued implementation of
Continue this programme in ELO programme in Medco Oil & Gas.
international business units.
Total ELO: 76 people
Continue Compliance Champion Programme for Medco Power. Continued the implementation of Compliance
Champion in Medco Power.
Total Compliance Champions: 28 people
Implement and obtain ISO 37001:2016 ABMS certification in Medco Oil & Plan to implement it and obtain the certification in
Gas and Power high risk assets. Oman and MRPR in 2024.
Obtain and implement ISO 37001:2016 ABMS certification in South The recertification was obtained on 6 September
Natuna Sea Block B. 2022. Passed first surveillance ISO 37001: 2016
ABMS in 2023.
Obtain and implement ISO 37001:2016 ABMS certification for Procure The recertification for P2P oil & gas domestic
to Pay (P2P) process in oil & gas domestic assets such as Rimau, South assets was obtained on 27 November 2023
Sumatra Block, Lematang, Block A, Tarakan, South Natuna Sea Block B,
Corridor, Sampang, Madura Offshore, West Bangkanai, and Bangkanai.
Obtain and implement ISO 37001: 2016 ABMS Certification for Medco The recertification for Power headquarters was
Power’s assets. obtained in August 2023. The certifications in
MEB/ ELB, DEB and TJBPS subsidiaries were
obtained in August 2021 and passed second
surveillance of ISO 37001: 2016 ABMS in 2023.
Obtain and implement ISO 37001: 2016 ABMS Certification for Bualuang, The certification was obtained in November 2022
Thailand. and passed first surveillance of ISO 37001: 2016
ABMS in 2023.
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Category Short-Term Actions Medium/Long-Term Actions Status
Plan to obtain and implement ISO Obtain and implement ISO 37001: Development of the ABMS implementation was
37001: 2016 ABMS Certification for 2016 ABMS Certification for started in 2023 and certified on 7 December
the Corridor Asset. Corridor 2023.
Plan to develop ISO 37001: 2016 Obtain and implement ISO 37001: Collaborated with several corporate functions to
ABMS for Oman 2016 ABMS Certification for Oman strengthen the control environment in Oman.
Conduct anti-bribery and corruption, Contract Compliance and Internal Conducted 22 vendor audits in 2023
Control, vendor audits (minimum of 22 vendor audits per year)
• Establish standards for vendors’ • Conduct due diligence on high- • Conducted a sanctions and desktop due
due diligence processes. risk criteria based on current diligence workshop related to Marine.
• Complete targeted selected compliance risks. • Conducted a Human Rights Due Diligence
vendor compliance surveys in • Complete vendor compliance Workshop for A&IC
Oman. surveys in Indonesia and • Conducted desktop reviews on due diligence
Thailand of Corridor contracts - pre qualification stage
for licenses.
• Conducted four desktop reviews on due
diligence and sanctions due diligence in Marine.
• Completed 14 vendors compliance surveys in
Oman.
Business Ethics Carry out Our Code Assurance: Statements of Adherence (SoA) self-tests. • In 2023, the SoA was expanded to include
statements on personal data privacy
protection, human rights, and political
involvement to align with the declaration
on the Sustainability Governance 5-year
roadmap. This included anti-money laundering
awareness in assurance test.
• Received 97.57% or 2,534 submissions for
SoA from permanent employees of Medco
Oil & Gas and 99.89% or 900 submissions
from permanent employees of Medco Power
in 2023, in which passing the SoA Assurance
Test was required. The results indicate
that our employees have demonstrated a
thorough understanding of Our Code and
Conflict of Interest policies & procedures. In
total, we received 5,733 SoA submissions
from permanent employees and third party
contractors in Medco Oil & Gas and Medco
Power in 2023. However, the limited assurance
process, at the moment, only covers the
permanent employees.
Automate Conflicts of Interest (CoI) deterrence systems and train new Not applicable since we did not acquire any new
personnel (if we have any new assets). assets.
Standardise Our Code Practices related to SoA declarations, Conflicts of In 2023, we expanded the declaration process
Interest (CoI) declarations, Governance & Ethics Policies, Government of Conflicts of Interest (CoI) to our targeted
Hosting Guidelines and Gift Entertainment Guidelines. service contractor employees within the Corridor
Asset. We used the Microsoft platform. We
received 2,152 submissions representing a 100%
completion rate.
The Standardised Government Hosting Guidelines
and Gift Entertainment Guidelines are being
developed.
Finalise and implement a standardised, rigorous compliance programme • Implemented one Our Code Standard across
(covering prevention, detection, responses) across MedcoEnergi. MedcoEnergi,
• Implemented ABMS in key overseas assets,
• Standardised third-party risk managements.
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Category Short-Term Actions Medium/Long-Term Actions Status
Internal Audit Ensure the effectiveness of the 2023 audit plans (>90% audit plan Completed plans for oil and gas at Rimau,
completion) covering key business risks and controls within assets, Lematang, Bangkanai, and DSNLG; but still in
partnerships and functional areas. progress at Block A and JOB Tomori
Corporate: Medco Oman (MLCC), Mexico Block 12,
PT Transportasi Gas Indonesia
International Ship and Port Facility Security Audit:
Corridor, South Natuna Sea Block B, and JOB
Tomori
ISPS Code Audit: Corridor, South Natuna Sea
Block B, and JOB Tomori
Internal Audit Anti Bribery Management System:
Bualuang, P2P Oil & Gas Domestic, South Natuna
Sea Block B, Corridor, Medco Power Head Office,
MED/DEB, ELB, TJBPS, JOB Tomori
Sanction Compliance Conduct the Sanctions Workshop in high-risk areas. Completed Marine Sanction Workshop in South
Programme Natuna Sea Block B, Corridor, East Java and JOB
Tomori
Anti Money Laundering Established AML Policies in 2023. Review AML Controls in relevant AML Policy launched in March 2024 and available
(AML) Programme functions, develop working in MedcoEnergi website.
procedures to detect money
laundering risks.
Personal Data Protection Increase awareness of PDPA related Regularly conduct PDP training and Held mini workshops with Human Resources &
(PDP) Programme to HR, IT, HSE, SCM. workshops. General Services (HRGS) and legal functions and
conducted initial discussions with external Subject
Matters (SME) to assess potential support on
market
Develop a PDPA action plan prior to the
enactment of the law in October 2024
Whistleblowing Implemented WMS in partnerships. WBS had been implemented in DSLNG since year
Management System 2022 as well as in JOB Tomori.
(WMS) Programme
Assess Conformity ISO 37002 Full adoption and conformity of Assessed the maturity of our WMS based on ISO
ISO 37002 37002 standards.
GRI 205-3 Disclosure (without GRI 205-3 Disclosure in year 2024 Data related to GRI 205-3 had been disclosed in
assurance) (without assurance) and ensure that the Sustainability Report year 2021 and continued
GRI 205-3 starts assurance from in Sustainability Report 2022 and 2023.
2025 to 2027.
Human Rights Establish Human Rights Policy and Conduct Human Rights Training for Established a standalone Human Rights Policy in
Framework 100% employees and vendors January 2024
Conduct human rights assessments for major assets In March 2023, we held a workshop at the
corporate level to conduct human rights due
diligence sharing sessions for A&IC division.
Harassment-Free Workplace (HFW) Completed a benchmarking exercise regarding
the Harassment policy with prominent oil and
gas companies. Based on this benchmark, we
developed the Draft HFW Guideline
Public Policy Develop an accountability mechanism to monitor MedcoEnergi’s public Completed the accountability mechanism and
policy statements versus execution, and agenda versus implementation. reported to BoD in 2023.
Socioeconomic Through the IPA Ethics & Compliance Committee, support the industry’s Ongoing authority engagement under the
Compliance efforts to increase simplification and transparency of social and National Anti-Corruption Strategy Forum.
environmental permits for Medco Oil & Gas assets.
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Enhancing Our
Environmental and
Social Safeguards
84 Approach, Commitment, and Goals
84 Sustainability Assessment
87 Health, Safety, and Environment Management
System (HSEMS)
88 Performance Rating Programme in Environmental
Management (PROPER)
88 Environmental Management and Monitoring
Programme
98 Biodiversity Conservation
102 Social Management System (SMS)
105 Alignment of Sustainability Initiatives with UN SDGs
106 Action Plan
This picture is the 2nd winner under the ‘Environmental & Climate Change’
category of the 2023 MedcoEnergi Photography Competition.’
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We are firmly committed to achieving zero environmental incidents and aspire to become a leader in environmental and social
responsibility. To achieve this, we rely on MedcoEnergi’s Operational Excellence (OE) framework. This framework, together with
our Health, Safety, and Environment Management Systems (HSEMS), Social Management System (SMS), and the Medco Project
Excellence Process (MPEP) safeguard our employees, stakeholders, and the vicinity of our operations. Our performance is consistently
enhanced through improving our safety culture, engaging with stakeholders, and continually upgrading the quality of our social and
environmental stewardship.
Approach,
Commitments and Goals
Our OE framework employs systematic and collaborative Group Discussions (FGDs) and consultations with stakeholders.
methods to ensure our operations are safe, dependable, and The results of these studies are used to formulate environmental,
efficient. It offers procedures that reduce adverse effects on the social, health management, and monitoring plans that aim to
ecosystems around us. We consistently track our objectives and minimise negative effects and enhance positive outcomes for
achievements in this area. Further details on our OE framework the local communities and ecosystems.
are available in Chapter 10.
We are committed to complying with applicable laws and
We consistently assess all environmental, social, and health regulations related to our environmental and social performance.
impacts, including those that affect biodiversity and the public, As a result, none of our operational sites experienced non-
before initiating projects and operations. These assessments are compliance incidents that could have resulted in significant
also part of our compliance with host government regulations monetary fines, non-monetary sanctions or dispute resolutions
during permit approval processes. Evaluations are performed via in 2023.
desktop research and field investigations that incorporate Focus
Sustainability
Assessment
Internal challenges and stakeholder pressures can pose risks is conducted at every stage of our projects and operational
to our projects, potentially affecting their success and overall activities. It is designed to go beyond compliance to prevent,
sustainability. With this in mind, MedcoEnergi is dedicated mitigate, and manage environmental and social related risks
to managing both stakeholders’ expectations and the risks more sustainably. Our approaches align with international
associated with our operations and projects effectively. standards, including the International Finance Corporation’s
This commitment is evidenced through our Sustainability (IFC) Performance Standards.
Assessment for environmental and social indicators, which
Sustainability Assessment for Projects
Since 2021 our oil and gas projects have been consistently and thoroughly evaluated through our sustainability assessments, within the
framework of the Medco Project Excellence Process (MPEP). We also routinely conduct surveillance audits on projects upon reaching
their 10%, 50%, and 90% progress of project execution to monitor how well the sustainability indicators are being implemented.
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Business
Medco Project Excellence Process (MPEP) and Sustainability Assessment
SUSTAINABILITY ASSESSMENT
• All sustainability indicators are • SEP updated • SEP updated • SEP updated
assessed together during the risk • Document arrangement for • Document arrangement for • Monitoring and reporting
register development, including Security Management Plan Security Management Plan of SMP, Labour & Working
HSE risk identification (SMP), Labour & Working (SMP), Labour & Working Conditions, Grievance
• Initial identification for Conditions, Grievance Conditions, Grievance Mechanism and Community
Stakeholders Engagement Plan Mechanism and Community Mechanism and Community Involvement
(SEP), security issues, land Involvement Involvement • ERP and LRP approved,
acquisition and climate change • Initial engagement • Emergency Response Plan (ERP) including monitoring and
• Energy/water efficiency & & Land Resettlement Plan (LRP) reporting
Climate Change Mitigation Plan development • Pollution prevention permit
calculated & forecasted • Energy/water efficiency, approved
• Pollution prevention & Climate Change Action Plan • Permit monitoring and reporting
mitigation plan included in the and biodiversity programme • LARAP monitoring and reporting
submitted ESHIA/AMDAL developed based on ESHIA/
• Environmental management AMDAL
permit list • Pollution prevention permit
• Land Acquisition and submitted
Resettlement Action Plan • LARAP approved and executed
(LARAP) development
APPRAISE
Gate
SELECT
Review
G1
Gate
• Project charter and mandate DEFINE
Review
G2
• Preliminary Plan Of • POD submitted Gate
Development (POD) • Environmental, Social and
Review
G3 EXECUTE
• Risk Register Health Impact Assessment • POD approved Surveillance
(ESHIA/AMDAL) submitted • ESHIA/AMDAL approved Audit
• Risk register updated • Risk register updated • Contracts awarded and begin
• Project Execution Plan Defined • Project Execution Plan executed execution
• Commissioning and Start Up • Permit approved
Plan • Risk register updated
MEDCO PROJECT EXCELLENCE PROCESS (MPEP)
Below is the progress status of the major projects assessed in 2023 that have reached Gates 2, 3 and peer reviews:
South Natuna Sea Block B Medco Power Assets Senoro-Toili
West Belut 3 West Bali P Senoro Phase 2A 2
Thailand
Bualuang Phase 5
2
Debottleneck
Block A
Block A Phase 2 3
South Sumatra Region Corridor Medco Project Execellence Process (MPEP)
2 Gate 2 Review 3 Gate 3 Review
Rimau Rejuvenation 2 Sambar 2
Arung Nowera 2 Suban 22 & 27 2 3 P Peer Review
Suban Compressor Revamping 3
Letang Tengah Rawa (LTR) Expansion P
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Sustainability Assessment for Operations
Once projects become operational, the environmental and social development indicators in operational activities. It aims to fulfil
indicators impacting their sustainability must be continuously the expectations of Operational Excellence (OE) in the HSE
managed based on operational risks. The Sustainability Pillar.
Assessment for Operations measures and monitors sustainable
This assessment encompasses the 22 key indicators that reflect sustainable operations in nine dimensions, as detailed below:
Human Rights, Community Labour and Working Pollution Prevention
Health & Safety, Security Condition
1. Community Health & 1. Working conditions and 1. Air emissions and noise
Safety Risk Identification Management of Worker management
2. Community Emergency Relationship 2. Wastewater or effluent
Response Plan 2. Retrenchment Plan discharges management
3. Stakeholder Engagement 3. Grievance Mechanism 3. Waste and Hazardous waste
4. Indigenous Communities related to Labour management
5. Security Management Plan
Sustainable Resource Climate Change Mitigation Protection of The Environment,
and Use and Adaptation Biodiversity and Restoration of
Natural Habitat
1. Water efficiency 1. Climate change action
2. Energy efficiency plan (calculation, forecast, 1. Biodiversity management
mitigation) plan
Environmental Impact Local Community Media Communication and
Assessment Empowerment Engagement
1. License to Operate 1. Land Acquisition and 1. Media communication plan
2. Environmental and Involuntary Resettlement
social risks and impacts 2. Grievance Mechanism for
identification and Community
assessment 3. Livelihood restoration plan
4. Community Involvement
The Sustainability Assessment for Operation guidelines were Assessment for Operations in 2022. Priority environmental and
established in 2022 to assist operations in achieving specific social indicators that needed to be managed were identified
sustainability maturity levels and define the Sustainable based on their operational risks to improve each maturity level.
Operation Strategies. In 2023, we introduced the Sustainability
Assessment for Operations to the management and leadership The Sustainability Assessment Guidelines© for Projects has
teams in operations, HSE, and Relations & Security teams of our been implemented since January 2021 and received copyright
oil & gas assets. protection from the Indonesia’s Ministry of Law and Human
Rights in March 2024. Holding this copyright enables us to share
We developed these sustainable operation strategies for the guidelines with external parties, who, in turn, are prohibited
Sampang and Lematang in 2023. The strategies were based from distributing them without acknowledging MedcoEnergi as
on the assessed maturity level of each sustainability indicator the source.
determined from the initial implementation of the Sustainability
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Health, Safety, and Environment
Management System (HSEMS)
At MedcoEnergi, we are committed to reducing the As of 2023, 60% of our assets were ISO 14001:2015 certified.
environmental impact of our operations and fostering Additionally, Medco Ratch Power Riau (MRPR) and JOB Tomori,
stakeholder’s trust to create long-term value. We implement a non-operated asset, adhere to the Asian Development Bank’s
integrated HSEMS across our operations to ensure our adherence (ADB) safeguards and the International Finance Corporation’s
to applicable environmental laws and regulations. This system (IFC) Performance Standards (PS). These assets were financially
is aligned with international best practices and standards, supported by institutions that have adopted the “Equator
particularly ISO 14001:2015 on Environmental Management Principles”.
Systems. The HSEMS allows us to identify, assess, control, and
monitor our environmental performance and potential risks
across all our operations.
1 Block A - Aceh
2 Riau IPP/MRPR
3 Rimau
4 South Sumatra Block (SSB)
5 Lematang
6 Corridor
7 Sumatra IPP
15
8 Cibalapulang Mini Hydro
Oman
9 Medco Power Head Office
16 10 Pusaka Mini Hydro
11 Sampang
1 12 Madura Offshore
13
13 South Natuna Sea Block B
14
14 Tarakan
2 19
20 15 Thailand
Kalimantan 16 Oman
Sumatra 17
6
17 Bangkanai
3
4
18 Tanjung Jati B Power Services
5
7
9 19 MEB/DEB
18
8 11
Java 12 20 ELB
10
ISO 14001:2015 Environmental Management System (EMS) Certified International Finance Corporation (IFC) Standard
ISO 45001:2018 Certified Equator Principle (EP)
ISO 14001 EMS Aligned Asian Development Bank (ADB) Safeguards
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Performance Rating Programme in
Environmental Management
(PROPER)
The Performance Rating Programme in Environmental beyond compliance. This was the third consecutive year that
Management (Penilaian Kinerja Perusahaan Dalam Pengelolaan South Natuna Sea Block B received the Green PROPER. Other
Lingkungan), also known as PROPER, is an annual assessment domestic assets, selected to undergo PROPER assessments,
of companies operating in Indonesia that evaluates their received the Blue PROPER, demonstrating regulatory
compliance with national environmental regulations and compliance. Meanwhile, Block A and Dalle Energi Batam (DEB)
beyond. This programme is managed by the Indonesian Ministry were invited to join the PROPER for the first time and each asset
of Environment and Forestry (MoEF) and covers topics such received the Blue PROPER.
as emissions, wastewater pollution and both hazardous and
non-hazardous waste. In addition to environmental regulatory Our non-operated assets, JOB Tomori achieved the Gold
adherence, the programme evaluates beyond compliance PROPER as the highest PROPER rating. The Tanjung Jati B Power
aspects by implementing environmental management systems Services (TJBPS) whereby Medco Power provides O&M services
and measuring the efficiencies of natural resource consumption, contract, secured the Gold PROPER for the fifth consecutive
biodiversity initiatives and Corporate Social Responsibility (CSR). year, while JOB Tomori for the third year. These achievements
were made possible by integrating eco-innovations that focused
In 2023, the South Natuna Sea Block B and Sampang assets on a sustainable environment and social innovations designed
received the Green PROPER, acknowledging our efforts to go to improve communities’ living standards.
Environmental Management
and Monitoring Programme
As part of our environmental management system, we conduct environmental management and monitoring programmes in our
operating assets to improve our sustainability performance, comply with regulations and standards, and enhance our overall impact
management.
Some of the environmental protection initiatives that have broader impacts on local communities are explained in Chapter 8.
Restatement of Water, Waste and Biodiversity Data
• The restatements in oil & gas assets include non-hazardous waste data for 2021-2022 to improve our data disclosures;
• Water withdrawals in 2021-2022 included produced water, cooling water, and water for operations; and
• Revegetation beyond regulatory requirements in 2022 excluded reclamation activities by Corridor and disclosed that as separate
data.
Meanwhile, the non-hazardous waste data for Medco Power in 2021-2022 were restated due to changes in the waste conversion
factors. Medco Power’s water withdrawals in 2022 were also restated to improve data disclosures.
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Waste Management
We implement an integrated waste management approach that covers waste segregation, disposals and treatment using the Best
Available Technologies (BAT). Several of our assets have their waste management practices audited by the host governments as part
of the scope of their ISO 14001:2015 certification (see page 87).
Waste Management at MedcoEnergi
Operation Waste
Management
Toxic & Hazardous
Waste
Segregation
Waste Treatment Centre
Temporary Storage Bioremediation
Facility
Licensed Toxic &
Hazardous Waste
Disposal Facility
Non-Toxic & Hazardous
Waste
Organic Inorganic
Recycle
Composting
Community/Organization
Centers
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Non-Hazardous Waste
In managing waste from our operations, MedcoEnergi across all our oil & gas assets. This is evident in the increasing
implements the Reduce, Reuse, Recycle (3Rs) principles. We trend of waste being diverted from disposals annually, with 80
segregate our non-hazardous waste into organic and inorganic tonnes of waste diverted in 2023 alone. Of the total, Corridor
categories, directing the organic waste to composting centres contributed 70 tonnes to the diversions from disposals by
and the inorganic waste to recycling centres. implementing the 3Rs and composting.
Our oil & gas assets generated 1,207 tonnes of non-hazardous Meanwhile, our power assets recorded 74 tonnes of waste,
waste in 2023. This showed a slight decrease from the amount showing a slight increase from 2022 due to the increased
in 2022 due to changes in operational policies. Over the years, number of people working on for maintenance activities.
we have been improving our waste management programmes
Oil & Gas and Power Non-Hazardous Waste1,2
Non-Hazardous Waste Generated Non-Hazardous Waste Diverted From & Directed To Disposal
1,324 1,324
1,400 1,400
1,281 59 1,281
67
74 67
1,200 1,200 80
1,045 1,257 1,207 1,045 1,198 74
31
1,000 122 1,000
122 1,127
893
Tonnes
Tonnes
800 924 800
600 600
400 400
200 200
- -
2021 2022 2023 2021 2022 2023
Oil & Gas Power Total Directed to Disposal - Directed to Disposal - Power
Oil & Gas
Diverted from Disposal - Total
Oil & Gas
Composting Organic Waste
We transport generated organic waste in our operational area to
our Waste Treatment Centres (WTCs) to be sorted, weighed, and
composted. The remaining waste that cannot be composted is
sent to the nearest landfills.
Block A and Rimau diverted 3.9 and 6.1 tonnes of waste from
disposal through composting in 2023. Tarakan composted 0.5
tonnes of waste through the Waste Industrial Park (Taman Industri
Sampah Kegiatan Ekonomi Berbasis Pengelolaan Lingkungan/TIS-
KEBAL), as part of its long-standing CSR programme with the
local authorities. Our Corridor asset has a practice in place of
composting organic waste in three of its nurseries: Keri, Grissik
and Suban Camps.
1 Non-Hazardous, Hazardous Waste, and Oil Spill in Oil & Gas in 2021-2023: International: Thailand and Oman; Domestic: Block A, South Natuna Sea Block B, Corridor, South Sumatra
Block, Rimau, Lematang, Madura Offshore, Sampang, Bangkanai, Tarakan.
Non-Hazardous and Hazardous Waste in Power from 2021 to 2023: Medco Ratch Power Riau (MRPR), Mitra Energi Batam (MEB), Dalle Energi Batam (DEB), Energi Listrik Batam (ELB),
Multidaya Prima Elektika (MPE), Energi Prima Elektrika (EPE), Bio Jatropha Indonesia (BJI), Pembangkitan Pusaka Parahiangan (PPP).
2 The 2021 and 2022 non-hazardous data in Oil & Gas have been restated to improve our data disclosures. Meanwhile, the data for Power in 2021-2022 have been restated due to changes
in the waste conversion factors.
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Composting activities, producing dried compost for plantations at Block A.
Non-Hazardous Waste Reduction Campaign
We implement a 3Rs management programme1 and campaign to reduce plastic packaging2 ; we also encourage employees to sort
waste items according to their categories.
Environmental campaign posters related to waste management in onshore and Bualuang assets.
1 3Rs management programmes are conducted in South Natuna Sea Block B, Corridor, Sampang, and Lematang.
2 Refillable drinking bottle campaigns are conducted in South Sumatra Block, Lematang, Bangkanai, Rimau, and Sampang.
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Hazardous Waste
Hazardous waste1 from our operations accounts for 84% of our Our power assets generated 101 tonnes of hazardous waste,
total waste. We manage hazardous waste by engaging licensed an increase from the waste generated in 2022. This increase is
third-party disposal companies. attributed to maintenance activities in Mitra Energi Batam (MEB)
and Dalle Energi Batam (DEB), cleaning of generators, and
MedcoEnergi’s oil & gas assets generated 6,413 tonnes of unplanned shutdowns during generator maintenance.
hazardous waste, an increase from what was generated in 2022
primarily due to the growing total length of drilling in South
Natuna Sea Block B and turnaround activities in Block A.
Oil & Gas and Power Hazardous Waste2
Hazardous Waste Generated Hazardous Waste Directed to Disposal
6,515 (Managed by 3rd Party)
7,000
101
6,000 6,413 8,000
6,484
5,000
4,328 94
6,000
45 6,390
Tonnes
Tonnes
4,000 4,299
4,283
44
3,000 4,000
4,255
1,970
2,000
56 1,582
1,914 2,000
1,000 55
1,527
- -
2021 2022 2023 2021 2022 2023
Oil & Gas Power Total Oil & Gas Power Total
Hazardous Waste Reduction Efforts and
Awareness Campaigns
We implemented multiple programmes to reduce our hazardous
waste. They include the Mercury Guard Bed (MGB) catalyst
optimisation programme in Belanak3; the quality-based lube
oil replacement in South Natuna Sea Block B4; the replacement
of fluorescent lights with LED lights5; and the replacement
of batteries to rechargeable ones6. We also raised awareness
among our workforce through campaign posters to ensure the
safety of both our people and the environment.
A poster to raise all workers’
awareness regarding
hazardous waste at Lematang.
1 Hazardous waste is waste containing substance, energy and/or components which, due to their properties, concentration and/or amount, may directly or indirectly pollute and/or damage
the environment and/or harm the health of humans or other living creatures’ lives in the areas or waste designated ‘hazardous’ or some similar term under the applicable regulatory
requirements of the country where MedcoEnergi operates.
2 All our hazardous waste is managed by a third party. Not all waste generated is managed within the same reporting year; the waste managed in any given year may include
carryovers from the previous year. In other words, waste generated in one year might be stored temporarily and then delivered to a third party in the following reporting year.
These approaches account for the discrepancies between the amounts of waste generated and the waste directed for disposal in any given year.
There might be a difference of one in total numbers due to rounding up of decimals.
3 The MGB catalyst optimisation includes regulating the temperature of the MGB to prevent the rapid condensation and saturation of the catalyst.
4 The aim of the replacement is to reduce the generation of waste lubricating oil since 2010 until now. We replace the lubricating oil based on the results of laboratory analyses of the
lubricants – not based on the running hours of machines and equipment.
5 The light replacements took place in South Sumatra Block, Corridor, and Sampang.
6 The battery replacements occurred in South Sumatra Block, Lematang, and Sampang.
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Business
Oil Spill Incidents
We continuously explore and implement initiatives to lower When oil spills occur, our prompt emergency responses have
our oil spill incidents. As a result, we were able to reduce the contained such incidents and minimised their negative impacts
volume of oil spills in 2023 through strategic programmes and on the environment. Training sessions and drills regarding
interventions. These programmes include increasing inspections oil spills are conducted to ensure immediate emergency
and replacements of critical pipelines, targeting ageing pipelines preparedness; these can be found on page 203-204.
and those showing signs of corrosion in our onshore assets.
Volume and Number of Oil Spills1
Volume of Oil Spills Number of Incidents
140
45
40 120 125 122 130
40
Number of events
35 100
36
30
80
25
bbls
60
20
15 19 40
10 20
5
0
0
2021 2022 2023
2021 2022 2023
Our oil-producing assets have oil spill management in place covering programmes that include:
OIL SPILL PREVENTION PREVENTIVE AND CORRECTIVE PREPAREDNESS AND
SYSTEM MAINTENANCE RESPONSE PLANS
Our domestic offshore assets are members of the Oil Spill In addition, our Bualuang asset in Thailand is a longstanding
Combat Team (OSCT) Indonesia, a private oil spill response member of the Oil Spill Response Limited (OSRL)2 and the
organisation with bases throughout the country. Membership in Thailand Oil Industry Environmental Safety Group (IESG)3. In
OSCT improves our spill preparedness and response capacities collaboration with OSCT Thailand, Bualuang has established a
through access to services, equipment, experts, and competency preventive maintenance programme designed to manage oil
training. spill risks.
1 The oil spills include those caused by internal factors within MedcoEnergi. They exclude major spills resulting from third-party actions, e.g., vandalism, collisions by third parties, etc.
2 OSRL is an international organisation providing a wide range of services in oil spill preparedness and responses.
3 IESG is a cooperative dedicated to developing Thailand’s incident prevention capabilities and its ability to respond to oil spills and emergencies related to oil industry operations across
the country.
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Water Management
We regulate our water usage in our operations as part of our Our oil & gas assets recorded a water withdrawal of 42,172
HSE Policy. At MedcoEnergi, we are committed to managing megalitres in 2023, a decrease from 2022. This is due to the
water use to minimise any impact on the environment. Water is Belanak sea water lift pumps being optimised – from two units
predominantly used for production activities, drilling, supporting to one, since July 2023.
offices, and domestic use. We adopt water recycling to reduce
our intake of treated water by employing reinjection technology1 Similarly, our power assets saw a reduction in water withdrawal in
and collecting rainwater in our facilities. 2023 after the Medco Ratch Power Riau (MRPR) commissioning
was finished in early 2022. In 2022, water withdrawals were
The water withdrawals detailed in this report include the total significant as it was used for both the MRPR commissioning
amounts extracted from surface water, groundwater, seawater, process and ongoing operational activities. After completing
third parties, and produced water. We have incorporated the commissioning phase, water was exclusively withdrawn for
produced water data for the first time in the current reporting operational needs in 2023.
year and have restated figures for previous years. Produced
water is a byproduct of our oil & gas exploration and production
processes.
Oil & Gas and Power Water Withdrawals2,3
Oil & Gas Water Withdrawal Power Water Withdrawal
50,000 2,000
42,912 42,172
1,614
40,000
35,883 10,831 10,690 1,500
1,375
7,088
30,000
Mega Litre
Mega Litre
32,081
28,795 31,482
1,000
20,000
500
10,000
37
- -
2022
2021 2022 2023 2021 2023
Produced Water Non-produced Water Total
In 2023 our oil & gas water intensity increased slightly compared intensity decreased slightly compared to 2022. This was due to
to 2022. This was due to decreases in water withdrawals that decreasing water withdrawals in MRPR as the commissioning
were lower than the decreases in production as a result of phase was completed in 2022.
natural production declines in 2023. Our power asset water
1 The reinjection technology involves returning the water produced during oil & gas production to the ground by injecting it into injection wells. This injected water increases the formation
pressure, leading to improved hydrocarbon recoveries.
2 Water withdrawals in Oil & Gas in 2021-2023: International: Thailand, Oman; Domestic: Block A, South Natuna Sea Block B, Corridor, South Sumatra Block, Rimau, Lematang, Madura
Offshore, Sampang, Bangkanai, Tarakan. We exclude produced water from Oman since it is managed by our client, Petroleum Development Oman (PDO).
Water withdrawals in power in 2021-2023: Medco Ratch Power Riau (MRPR), Mitra Energi Batam (MEB), Dalle Energi Batam (DEB), Energi Listrik Batam (ELB), Multidaya Prima Elektika
(MPE), Energi Prima Elektrika (EPE), Bio Jatropha Indonesia (BJI), Pembangkitan Pusaka Parahiangan (PPP)
3 Water withdrawals in Oil & Gas in 2021-2022 are re-stated by including produced water, cooling water, and water for operations. Meanwhile, the figures in power in 2022 are also re-
stated to improve disclosures.
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Oil & Gas Water1 Intensity Power Water2 Intensity
900 0.70
800
796
0.59
721 0.60
700
0.49
m3/1000 TOE HC Product
0.50
600
448
m3/MWh
500 0.40
400
0.30
300
0.20
200
0.10
100
0.02
0 0.00
2021 2022 2023 2021 2022 2023
Management of Produced Water
Our management of produced water at MedcoEnergi adheres For domestic offshore assets, we discharge produced water into
to this three-fold strategy: discharging the treated water into a the sea after carefully assessing it to ensure it meets the required
water body, reinjecting it into an injection well, and allowing it to parameters.
be managed by other entities.
In Lematang, we have been operating an on-site Produced
Our produced water is treated at our Produced Water Treatment Water Treatment (PWT) facility since 2011. We ensure the quality
(PWT) facilities to lower the concentration of hydrocarbons, of treated produced water meets the applicable standards, so
chemicals, and hazardous substances to levels that align with it can be safely discharged into a water body. Periodic manual
relevant regulations and standards. monitoring and continuous monitoring tools are also in place to
ensure compliance with the applicable standards.
Corridor, Bualuang, and other onshore operations implement
a reinjection strategy. For our operations in Oman Karim Small The amounts of produced water reinjected to reservoir are
Fields (KSF), we send our gross liquid production to our client, detailed below. These amounts are generally stable over the
Petroleum Development Oman (PDO). Therefore, we exclude years.
Oman KSF produced water in our data as it is managed by PDO.
Reinjected Produced Water3
25,000
22,269 21,852
21,184
20,000
15,000
Mega Litre
10,000
5,000
-
2021 2022 2023
1 In-scope water withdrawal for Oil & Gas includes fresh surface water, groundwater, third-party water use and seawater.
2 In-scope water withdrawal for Power includes fresh surface water and third-party water use.
3 Reinjected produced water include: International: Thailand; Domestic: Block A, Corridor, South Sumatra Block, Rimau, Bangkanai, Tarakan.
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Managing our Wastewater
Across most of our assets, domestic wastewater is treated at our Waste Water Treatment Plants (WWTPs). We regularly monitor
effluents to ensure compliance with regulations mandated by the Ministry of Environment and Forestry (MoEF) and maintain levels
lower than the Threshold Limit Value (TLV) before discharging. In 2023, our oil & gas assets discharged 18,534 megalitres of wastewater,
a decrease from the previous year. This reduction is proportional to the decline in water withdrawal compared to 2022.
Our power assets discharged 380 megalitres of treated wastewater into water bodies during the same year, showing an increase from
2022 due to the water discharges from WWTP in MRPR’s full year.
Oil & Gas and Power Water Discharges1
Oil & Gas Water Discharges Power Water Discharges
20,000 400
18,984
18,534
9,168 350 380
13,957 8,888
15,000 300 310
Mega Litre
Mega Litre
250
6,337
10,000 200
9,816 9,646
150
7,620
5,000 100
50
37
- -
2021 2022 2023
2021 2022 2023
Produced Water Non-produced Water Total
Promoting Water Efficiency
Our facilities in Corridor (Corridor Storage Tanker/CST), South We also perform monthly effluent monitoring to guarantee
Natuna Sea Block B, and Madura Offshore use reverse osmosis water safety before it is discharged. At Lematang and Madura
(RO) technology for seawater purification to minimise our Offshore, we implemented SPARING2, an automated
dependence on groundwater and secure consistent water continuous wastewater monitoring system that adheres to
supplies for production. This method desalinates seawater by MoEF regulations. We continued our water efficiency efforts
passing it through a semipermeable membrane, producing clean through water recycling3and water-saving initiatives for both
water for use in our offshore platforms and storage tanks. domestic4 and operational use5.
1 Water discharges in oil & gas between 2021-2023 do not have complete coverage per each asset, but the coverage became more complete in 2023. Block A, Corridor, Lematang, Madura
Offshore, and Sampang covered 2021-2023; South Natuna Sea Block B and South Sumatra Block covered 2022-2023; Thailand, Oman, Rimau, and Tarakan covered only 2023;
2 Sistem Pemantauan Kualitas Air Limbah secara Terus Menerus dan Dalam Jaringan (Continuous Wastewater Quality Online Monitoring)
3 Water recycling includes reusing treated wastewater from WWTPs for hydrant needs and watering plants in South Sumatra Block and Rimau, as well as for car washing activities in
Corridor.
4 Water-saving initiatives for domestic use include campaigns to reduce water consumption, replacing manual taps with automatic taps in Sampang, and using stored rainwater runoffs for
domestic purposes.
5 Water-saving initiatives for operational use encompass reducing well water withdrawals for operations, reusing treated wastewater as a chemical solvent in Lematang, and optimising
seawater lift pumps in Belanak.
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Water Risk Management
We conducted a qualitative assessment of risks related to water resources management in most of our assets in 2021. The aim was to
prevent issues concerning water scarcity, coastal floods and inland floods in neighbouring communities. Subsequently, we carried out
further assessments in 2023 to update our findings. The results showed that the company is not currently at risk of facing significant
impacts in any scenario across all assessed operations. According to the WRI Aqueduct tool, none of our operations in 2023 are in
water-stressed areas.
Water Audits for Offshore Assets
The South Natuna Sea Block B and Sampang assets conducted The audit results revealed that there were no water losses in the
water audits in 2022 and 2023. A water audit is a quantitative and Kerisi and Sampang areas. Water losses occurred in a few units of
qualitative assessment of water usage aimed at optimising water Belanak and in OPF Grati’s freshwater tank, although the supplies
management in industrial processes. The audit encompassed still met the needs. This audit also identified opportunities for
the Kerisi field for the entire 2021 data, as well as the Belanak optimising water use at each location, such as switching to
FPSO, OPF Grati, and Camplong Shorebase for the entire 2022 automatic water taps, optimising seawater lift pumps, installing
data. flowmeters, and other measures. The quality of the wastewater
meets all regulatory requirements.
Air Emissions
Our oil and gas operations release air emissions, including These include the Indonesian MoEF Regulation No. 11 of 2021
nitrogen oxides (NOX), sulphur oxides (SOX), volatile organic regarding emissions from internal combustion engines; MoEF
compounds (VOCs), and particulate matters (PMs). Moreover, Regulation No. 13 of 2009 regarding emissions from non-
our thermal power plants emit NOX, SOX, and PMs. Details of our engine sources like boilers; and local regulations. In Thailand, our
air emissions from 2021 to 2023 are contained in the 2023 GRI operations comply with the document entitled: Notification of
Performance Data. the Department of Labour Protection and Welfare on Limiting
Hazardous Chemical Concentration. In addition, our thermal
Our approach to managing and monitoring air emissions is power plants assets adhere to MoEF Regulation No. 15 of 2019
outlined in our Environmental Management and Monitoring which sets air emission thresholds for thermal power plants.
Plans. To ensure compliance with air emission standards
for upstream oil and gas operations, we adhere to several
regulations.
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Biodiversity
Conservation
We are dedicated to protecting the environment by supporting These assessments thoroughly examine biodiversity and how
biodiversity conservation efforts. Our concurrent restoration well measures are implemented to prevent land degradation
efforts occur at all domestic operational sites of our oil & gas when opening new operational sites.
assets. Our power assets are also involved in revegetation
activities that go beyond compliance. Our initiatives extend An example of our commitment to biodiversity stewardship
beyond the mandates of regulations, focusing on activities such is our approach to working in sensitive areas. In 2024 we will
as tree replanting and safeguarding endangered species. conduct a seismic programme to assess gas discoveries made
by the previous operator. Some of these discoveries extend
The preservation of biodiversity and ecosystems is integral partially into the Dangku Wildlife Reserve in Indonesia. The
to our HSE Policy; it encompasses the protection of both seismic programme will use advanced and environmentally
natural species and designated protected areas. Moreover, friendly technologies, and adhere to all relevant regulations and
in compliance with Indonesian regulations, we carry out international best practice.
Environmental Impact Assessments (Analisis Mengenai Dampak
Lingkungan Hidup/AMDAL).
Below is an overview of our replanting efforts:
Revegetation Accomplishments
37 507
Planted areas in 2021-2023 according to Forest
Planted areas Area Usage Approval (Persetujuan Penggunaan
in 2021-2023 Kawasan Hutan/PPKH) and environmental
beyond regulatory permits (SKKL)2
hectares requirements1 hectares
Our expenditure in replanting activities for both programmes are detailed in USD below:
Expenditure in Replanting 2021 2022 2023
Revegetation beyond regulatory requirements 30,890 86,3973 46,988
Revegetation as per Forest Area Usage Approval (PPKH) 545,474 595,799 450,518
Revegetation as per commitments in environmental permits
- - 30,977
(SKKL)
1 The total planted areas from 2021 to 2023 exclude the areas planted through the Medco & I - Two Trees programme.
2 The Surat Keputusan Kelayakan Lingkungan Hidup (SKKL), or Environmental Permit is a permit document that outlines the environmental commitments the Company must fulfil as
regulated by Government Regulation Number 22 of 2021.
3 This figure is re-stated because we excluded reclamation activities under SKKL by Corridor and disclosed that as separate data.
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Tree and Mangrove Planting Initiatives
We planted trees and mangroves across our assets in 2023 to promote biodiversity in land and coastal areas, aligning with SKK Migas’
national tree-planting campaigns.
BEYOND REGULATORY PPKH SKKL
REQUIREMENTS
22,637 141,279 2,604
trees planted, including through the trees planted for new plantations trees planted in the Corridor
Medco & I - Two Trees programme operational area
The South Natuna Sea Block B contributes to biodiversity conservation through ecosystem rehabilitations of both mangroves and
coral reefs using artificial reefs. In addition, the Sampang asset participated in land rehabilitation efforts through planting Acacia
mangium trees in Taddan Village and beach casuarina trees in Tambak Lekok Village.
Medco & I - Two Trees
Medco & I - Two Trees is our initiative that encourages employees to plant or adopt at least two trees. This programme ran from
September to November 2023 across all MedcoEnergi operational areas in Indonesia. Our employees participated by individually
planting trees or adopting them through the Medco Foundation, with the option of choosing between perennial trees or mangrove
plantations.
This programme aims to engage employees to take concrete actions to combat climate change, which aligns with MedcoEnergi’s Net
Zero aspirations. It shares the same goal with SKK Migas, which is to encourage the oil and gas sector workforce to plant or care for at
least two plants, focusing on types that can reduce carbon emissions.
>17,000 USD 14,228 2,798
invested, covering campaign Trees planted, averaging participants
publication, town hall meetings, 5-6 trees/person
mangrove plantings, field visits and
leaders’ engagement.
Medco & I - Two Trees kick-off event with environmental Tree planting activities in the field office areas during
enthusiast guest speaker, Jakarta, Indonesia Medco & I - Two Trees campaign programme
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Medco & I - Two Trees Mangrove planting activities by employees, local communities,
and Medco Foundation at Muara Gembong, Bekasi, West Java , Indonesia.
Watershed Rehabilitation in South Sumatra
Our assets in the South Sumatra regions consisting of Rimau, Our Rimau asset also completed a watershed rehabilitation
South Sumatra Block, and Lematang conducted watershed project at the Sriwijaya Botanical Gardens in 2023. The project
rehabilitations that complied with PPKH. These rehabilitations area covered 12.5 hectares in Bakung Village and Ogan Ilir
covered 840.5 hectares in the protected forests of Bukit Jambul regency, which was planted since 2021. This involved planting
Asahan and Meranti Sungai Merah between 2016 and 2023. In 10,400 seedlings of multipurpose trees species (MTP)
total, 168 hectares had already been rehabilitated and transferred whose fruit can be enjoyed by the local communities. These
to the government by 2023, with planting and maintenance revegetation efforts also actively redouble our efforts to reduce
activities ongoing in the remaining 672.5 hectares. the impact of climate change.
Planting activities with other stakeholders in watershed rehabilitation (left); handing over the
rehabilitated watershed to the Ministry of Environment and Forestry (right)
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Blue Crab Larvae Conservation in Mangrove Areas
The Bualuang asset in Thailand released 20 female blue crabs’
with eggs and more than two million blue crab larvae in the
mangrove areas. This programme was carried out at The Nature
Education Centre for Mangrove Conservation and Ecotourism in
the Chonburi province. We believe that mangrove forests are the
best places to both restore and protect marine life, which in turn The Bualuang Asset released blue crab larvae in
creates biodiversity and the sustainable abundance of natural mangrove areas in the Chonburi, Thailand
marine resources.
Coral Transplantation and Maleo Conservation at JOB Tomori
Our non-operating asset, JOB Tomori, implemented an In addition, JOB Tomori is actively engaged in conservating the
innovative coral transplant rack that proved effective in Maleo (Macrocephalon maleo), a bird species endemic1 to the
safeguarding coral reefs against predation by crown-of-thorns Banggai Regency. These efforts resulted in the Maleo population
(COT) starfish and other pests. In addition, coral transplanting increasing more than threefold, from 65 birds in 2019 to 165 in
efforts in the Tiaka and Makakata fields covered a total area of June 2023. Their efforts included tree planting in the Bakiriang
11,125 square meters. The coral areas were also designated as a Wildlife Reserve nesting areas, supporting egg hatching,
nursery ground for the endemic Banggai cardinalfish (Pterapogon and releasing birds back into the wild. These initiatives were
kauderni). The population of this species increased from 891 in recognised with an award from the Central Sulawesi Province
2019 to 1,443 by June 2023. Natural Resources Conservation Agency (BKSDA) in June 2023.
Tree planting and Sustainable Farming by One of Our Employees
Bakhrum Rangkuti, a superintendent for East Java Operations using a greenhouse hydroponic system that minimises pesticide
at OPF Grati, participated in safeguarding the environment and use and produces healthier fruits. He also raised 1,200 ducks
carbon emission reduction through tree planting and sustainable in battery cages to produce eggs. These efforts were part of
farming on his land in Blitar, East Java, Indonesia. his broader vision to promote sustainability and demonstrate
a lifestyle committed to environmental stewardship and food
As of 2023, Rangkuti successfully planted at least 2,000 security.
sengon trees (Albizia chinensis) on a 10,500 m² plot. These trees
require minimal care and contribute to carbon sequestration.
In addition, he cultivated Intanon melons on a 1,250 m² plot
Rangkuti checking on his Intanon melons.
1 Species that live in a limited area, such as a mountain range, lake or island, among others.
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Social
Management System (SMS)
The PDCA Cycle
Social 1 2 Management 3
Policy Program
The Company's
Social Policies as a
guidelines for
managing social
aspects is
communicated to
internal and external
stakeholders
As a responsible corporate entity, we 8
acknowledge the significant social impact our
Review
business activities can have on communities
Senior management
and stakeholders. For this reason, we have reviews SMS
implemented a Social Management System implementation and
provides directions Organizational
(SMS) alongside our HSEMS to effectively for improvement Competency and
manage social risks1 and their impact. This Capacity
R&S and
upholds our commitment to lead in managing cross-functional
social aspects and provide comprehensive 7 teams with
Monitoring competencies to
approaches to instituting HSE and social
Monitor the manage social
safeguards. Our SMS undergoes continuous implementation of aspects
4
reviews and improvements to measure elements 1-6
progress and maturity levels under the
guidance of our Plan, Do, Check and Adjust
Grievance 5 Stakeholder
(PDCA) cycle.
Mechanism Engagement
Through the SMS, we align all functions to Process for Communication,
address identified social issues, improve managing engagement and
grievances from good relationship
social performance, and secure and maintain external with stakeholders
our social licence to operate. stakeholders to obtain a social
license to operate
6
1 We define “social risks” as combination of probable hazard occurrences related to our employees and the surrounding communities and the severity of impacts resulting from such
occurrences. A “social impact” refers to any change, potential or actual, affecting our employees and the surrounding communities because of MedcoEnergi’s business activities and
operations.
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SMS Implementation
The followings describe the initiatives implemented to enhance • Conducted capacity building through workshops on risk
SMS in 2023 aligned with our Sustainability KPIs in all oil & gas management, social compliance, management systems,
assets: and auditing techniques. We also conducted offline SMS
refreshment and alignment workshops along with monthly
• Promoted cross-functional awareness of SMS and how SMS Talk sessions.
the social aspects are managed. This was done through • Used an Integrated Dashboard to record stakeholder
sessions with other functions as well as SMS Moment sharing databases, routine engagements, and social grievances.
sessions. The SMS booklet and campaign materials were also • Finalised asset-level Grievance Mechanism Procedures at our
distributed throughout the assets. oil & gas assets to ensure that social grievances were handled
• Documented our commitment to social policies in written consistently.
statements and ensured they were communicated to all
employees. These efforts ensured that we could effectively manage risks,
• Identified key social risks at each asset and developed improve social performance and secure a social licence to
mitigation plans to prevent operational disruptions. operate since an effective SMS relies on trained staff, cross-
functional teamwork, and a culture of social sustainability.
Training on the Social Compliance Management System and Audit Techniques based on ISO 19011:2018.
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SMS Monitoring
Cross-asset assessors were assigned as part of the SMS The monitoring results put a spotlight on how well the assets
Monitoring process in 2023. These assessors had completed adopted the SMS and met expectations. All assets achieved an
training by SGS Indonesia1 for internal auditors of management average score of 3.6 out of 5, suggesting that whilst aspects of the
systems based on the ISO 19011:2018 standards. The process system were generally adopted, there is room for improvement
also included conducting self-assessments, field verifications, in certain areas. In 2024, we will focus on closing identified gaps.
scoring, and submitting asset-specific monitoring reports, which
also highlighted how the social aspects were managed.
Field verification as part of the SMS Monitoring at South Sumatra Block (top); SMS
familiarisation at Matak Base (bottom)
1 SGS Indonesia is a member of the SGS Group, a global company for testing, inspection, and certification.
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Alignment of Sustainability
Initiatives with The UN SDGs
The following table maps our sustainability initiatives to enhance our environmental and social safeguards against the UN SDG
targets. Please note that this mapping does not mean that MedcoEnergi claims to have measured or set targets for host governments
in our operational areas in terms of achieving the UN’s SDGs.
UN SDGs Relevant Targets Key Initiatives
• Health, Safety and Environment Management System (HSEMS)
3.9 • Sustainability assessment
• Environmental compliance
• Wastewater monitoring and management
6.3, 6.4, 6.6 • Water conservation and efficiency
• Watershed rehabilitation
• Air emissions management
11.3, 11.6, 11.7
• Social Management System
• Hazardous and non-hazardous waste and effluent management
12.2, 12.4, 12.5, 12.6
• Environmental data reporting
• Coral reef transplantations and conservation programme for endangered fish
14.1, 14.2, 14.5, 14.b
• Oil spill reduction efforts
• Revegetation and mangrove rehabilitation programmes
15.1, 15.2, 15.4, 15.5 • Conservation of endangered species
• Biodiversity conservation and education initiatives
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Action
Plans
The following action plans have been developed to help us meet our objectives and continue enhancing environmental and social
safeguards. We regularly measure, monitor and report on our progress and performance against these actions.
Material Topics Short-Term Actions Medium/Long-Term Actions Status
Water Determine water usage Determine water usage reduction In progress to set water usage targets and
(consumption) targets based on programmes for normal operations reduction programmes.
benchmarking data and drilling programmes; continue
expanding them at Onshore,
Corridor, Offshore and Marine
Operations
Determine water usage reduction Establish a water scarcity and flood Completed water scarcity and flood risk
programmes in normal operation monitoring system; implement the assessments in most of our assets.
and drilling programmes programme at Corridor, Block A,
Bangkanai, South Sumatra, Medco
Power and other assets.
Air Quality Develop strategies to align with and Implement the strategies for Medco Developed strategies to comply with new
adapt to updated regulations Oil & Gas and Medco Power assets government regulations while ensuring business
and monitor their performance continuity.
Establish environmental audit Implement the protocols for Medco Adopted country’s government audit protocols
protocols that include air emissions. Oil & Gas and Medco Power assets. where MedcoEnergi operates (e.g. MoEF’s
PROPER, an environmental performance rating
programme in Indonesia).
Effluents and Waste Determine waste and effluent load Develop programmes to reduce In progress to set effluent and waste targets and
targets based on benchmarking waste and effluent loads; implement reduction programmes.
data. implement the programmes at
Corridor as pilot projects and
expand to Onshore and Medco
Power assets.
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Material Topics Short-Term Actions Medium/Long-Term Actions Status
Local Community (SMS) Develop the year’s SMS plans for Develop SMS plans for all assets Oil & gas assets:
all assets based on the previous based on identified improvement • Developed asset-specific SMS implementation
year’s monitoring results and areas and management reviews. plans.
management reviews.
Power assets:
• Conducted social assessments and developed
the Scope of Work (SoW) for the Timor-1
project and operations.
• Conducted Social assessments for the Bonjol
geothermal exploration project.
Update assets’ social risks Identify and mitigate key social Oil & gas assets:
identifications and mitigations. risks. • Developed specific social risk and mitigation
documents.
• Conducted risk management workshops for the
Corridor SMS Team.
Power assets:
• Updated the identification of social risks for
East Bali Solar PV construction.
Update asset-level Grievance As appropriate, update the Oil & gas assets:
Mechanism Procedures and grievance mechanisms to ensure • Updated Grievance Mechanism Procedures.
communicate them to key they reflect the latest evaluation
stakeholders. results and communicate them to Power assets:
key stakeholders. • Developed community grievance redress
procedures for MCG (Ijen Geothermal) and East
Bali Solar PV.
• Developed and familiarised BJI, PPP, MPE,
EPE, Medco Power Solar Sumbawa (MPSOS)
and MCG with the Chance Finds procedures.
Use the Integrated Dashboard to • Track and analyse the grievances Oil & gas assets:
monitor and analyse grievances. through the Integrated • Analysed social grievances trends.
Dashboard • Monitored and recorded grievances on the
Integrated Dashboard.
Conduct gap analyses of the Assess how effective the grievance Oil & gas assets:
existing grievance mechanisms mechanisms are compared with the • Evaluated how each asset implemented the
against the UNGPs grievance UNGP’s effectiveness criteria. grievance mechanisms.
effectiveness criteria.
Power assets:
• Developed community grievance redress
mechanisms that align with UNGP’s criteria.
Complete assets’ SMS Monitoring Maintain SMS maturity level targets Oil & gas assets:
process to assess their maturity and identify areas to improve (i.e. • Completed SMS monitoring for nine assets.
levels. continuous improvements).
Power assets:
• Monitor how the Annual Stakeholder
Engagement Programme is being
implemented.
Develop social incident rates Determine social incident rate Continue with the approval process for the drafted
guidelines. targets and ensure management’s guidelines on social incident rates.
socially responsible performance is
excellent.
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Realising
Our Climate Aspirations
110 Approach, Commitment, and Goals
114 Our Journey in Climate Business Integration
115 Assessing Our Climate-related Risks and
Opportunities
118 Our Environmental Footprint at a Glance
120 Emissions Reduction
128 Transition to Low Carbon Energy
130 Emerging Physical Climate Risk Management
132 Alignment of Sustainability Initiatives with UN
Sustainable Development Goals SDGs
133 Action Plan
Solar PV in Bronang Platform, South Natuna Sea, Indonesia
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We recognise the need to intensify our efforts to address climate year, ahead of the 20% target and 2023 methane emissions
change and energy transition. Our interim decarbonisation were 40% below 2019, ahead of the 25% reduction target.
targets demonstrate our accountability for climate action and This is encouraging and a milestone to celebrate, however we
reflect our commitment to supply affordable and sustainable understand the challenge of maintaining this achievement given
energy and natural resources. In 2023 we assessed more detailed the nature of our business.
climate change risks, strengthened our capacity building, and
further advanced our goal to expand our renewables portfolio. We are on track to achieve our 2030 interim targets to further
In 2023, and two years ahead of plan we achieved our interim reduce both Scope 1 and 2 GHG and methane emissions and on
2025 targets to reduce oil & gas emissions. Our 2023 oil & gas our trajectory to achieve net zero.
Scope 1 and 2 GHG emissions were 22% below our 2019 base
Approach,
Commitments, and Goals
Our goal is to achieve net-zero emissions for Scope 1 and Scope We are committed to reducing our GHG emissions by adopting
2 GHG emissions by 2050, and for Scope 3 GHG emissions the latest technologies and best practices as well as increasing
by 2060. Our Climate Change Strategy is rooted in our vision, our efforts to remove carbon. In addition, our approach to
mission, and sustainability policy framework. They also align transitioning to low-carbon energy involves expanding our
with the Paris Agreements and the Nationally Determined natural gas portfolio as a transition fuel. We aspire to develop
Contributions (NDCs) of the countries where we operate. renewable energy sources to support the realisation of the
region’s development ambitions. We also consider design
Our Climate Change Strategy is based on climate scenario strategies that enable us to build resilience to emerging physical
analyses that identify key climate-related risks and opportunities climate risks.
for our long-term business operations. They are structured
around three main pillars: Emissions Reductions, Transitions
to Low Carbon Energy, and Emerging Physical Climate Risk
Management. Each pillar outlines specific focus areas and
initiatives and how to leverage our capabilities, technological
expertise, and workforce to achieve our climate goals.
Sarulla Geothermal Operation, North Tapanuli, Indonesia
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MedcoEnergi’s Climate Change Strategy
VISION MISSION
To be the Energy Company of Choice for our investors, shareholders, To build long-term value with a portfolio of sustainable energy and
partners, employees and the communities where we operate natural resource business
CLIMATE ASPIRATION
Achieve Net Zero for Scope 1 and Scope 2 GHG Emissions by 2050 and Net Zero for Scope 3 GHG Emissions by 2060
Managing Transition Risks Managing Physical Climate Risks
STRATEGY Emissions Transition to Emerging Physical
Reduction Low Carbon Energy Climate Risk
Management
Growing Gas Growing
FOCUS Technologies & Carbon Removal Climate
as a Transition Renewables Climate Design
AREA Best Practice & Offset Adaptation
Energy Source Portfolio
- Reduce flaring, - Carbon - Expand natural - Expand - Assess - Continue
venting sequestration gas production renewable quantitative physical risk
and fugitive through nature- portfolio power portfolio financial impact and biodiversity
emissions based solutions - Evaluate - Assess feasibility of climate- assessments
- Reduce energy - Explore CCUS* opportunities to to adopt related physical on new
use & intensity, and CCS* invest in LNG to emerging risks investments
adopt renewable opportunities Power renewable - Implement - Integrate climate
KEY energy sources technologies systems risk assessment
INITIATIVES - Collaborate - Support for regular into future
along Supply initiatives for monitoring of engineering
and Value adoption of climate hazards designs
Chains to green solutions and their
improve impacts
efficiency and
emissions
disclosure
ENABLERS
Governance Data Management Transparency and Collaboration and
- Board commitment and - Improve Emission Data Compliance Engagement
oversight Management System - Continue third party - Engage with regulators
- Integration into business - Improve Scope 3 GHG verification of emission and investors to monitor
plans and performance emissions collection and disclosures emerging regulations and
management calculation in alignment - Strengthen TCFD* trends
- Staff engagement with protocols and disclosures and improve - Collaborate with
and capacity standards CDP* and stakeholders to drive the
building ESG scoring low carbon economy
* Notes
CCUS: Carbon Capture Utilisation & Storage; CCS: Carbon Capture & Storage; TCFD: Task Force on Climate Related Financial Disclosure; CDP: Carbon Disclosure Project
To translate the three pillars of our Climate Change Strategy into actions, we have identified four crucial enablers: (1) Governance (2)
Data Management (3) Transparency and Compliance (4) Collaboration and Engagement. These enablers allow a unified and efficient
approach to addressing climate challenges.
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Establishing Our Climate Interim Targets
MedcoEnergi’s climate aspirations were developed by reviewing our host government’s Nationally Determined Contributions (NDCs),
analysing internal Long-Term Planning (LTP) data, and conducting peer benchmarking. We also considered climate-related risks and
opportunities, past and ongoing emissions reduction efforts, and energy efficiency programmes. Additionally, we factored in existing
and emerging regulatory trends in host countries.
Our interim targets are to reduce Scope 1 and Scope 2 GHG emissions by 20% and 30%, and methane emissions by 25% and 37%
for our oil and gas business by 2025 and 2030 respectively by using 2019 as the base year. We chose 2019 as it represents our
normal operations before the pandemic, making it the most relevant reference point as the base year. Furthermore, we aim to have
26% of our installed capacity from renewable energy by 2025 and 30% by 2030 for our power business1. This target-setting process
was collaborative, incorporating both top-down and bottom-up approaches that involved various divisions at all levels.
Interim Target Climate Aspirations
Reduce Reduce
Reduce Reduce
NET ZERO NET ZERO
Scope Scope
Methane Methane
1 & 2 GHG 1 & 2 GHG
Emissions* Emissions*
Emissions* Emissions*
Scope 1 & 2 Scope 3
20% 25% 30% 37% GHG Emissions GHG Emissions
Disclose
Increase Scope 3 GHG Increase
Renewable emissions Renewable
Energy Mix** data and Energy Mix**
set interim
targets
26% 30%
2025 2030 2050 2060
Scope 1 & 2 GHG emissions*** Scope 3 GHG emissions*** Carbon Removal & Offset***
*
Medco Oil & Gas emissions based on the operational control approach and reduction from the 2019 base year.
**
Equity shared installed capacity. The Government of Indonesia's renewable energy mix target is 23% by 2025 and 25% by 2030
***
This graph is an illustration of the GHG emissions and offsets trajectory to achieve Net Zero and does not describe MedcoEnergi's projected GHG emissions and carbon offsets.
Our climate interim targets provide the framework for MedcoEnergi’s climate actions. They enable us to track and report quantifiable
progress towards reducing our emissions and achieving our climate aspirations.
Enhancing Our Employees’ Capacity for Climate Action
Our key progress in 2023 was our capacity-building programme for climate action. We conducted several trainings involving our
employees, management members, and suppliers. Our capability-building programme has multiple approaches that are also
integrated with programmes from various divisions. They are:
1. Business Leaders’ Programmes
These are external programmes in sustainability, ESG and climate change certifications by various credible universities and
institutions such as University of Cambridge, Yale University and competent boards:
• Sustainability and ESG Programme for Business Leaders
• Climate and Biodiversity Programme for Business Leaders
1 The Government of Indonesia has a target of achieving at least 23% new and renewable energy installed capacity in 2025 and at least 31% by 2050, which is stipulated in the country’s
Enhanced National Determined Contribution (ENDC) issued in September 2022.
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2. Focus Group Programmes
• Climate specific training: climate risks and opportunities, carbon accounting, technologies and best practices for GHG
management, carbon removal and offsets, carbon pricing and carbon taxes, green financial instruments, and carbon markets.
- Ten training modules for our “Climate Change and Energy Transition Working Groups” at fundamental, intermediate, and
focused levels in January-February 2023. Further information about this training can be found on page 178-179, along with
other training on energy transitions and technological awareness.
- Training on climate risks for our Board of Directors and management members to prepare them for the Climate Change
Risk Assessments (CCRA) in August 2023. During this training, these topics were discussed: the latest updates on climate
science, climate commitments of our host countries, climate requirements from the Equator Principles 4 (EP4), and our
CCRA roadmap.
- Carbon Market Workshop for senior leaders and Climate Change & Energy Transition working groups in November 2023.
The workshops provided insightful information on how the carbon markets were developed in Indonesia. Amongst the
topics they covered: carbon pricing, credits scheme implementation, Measurement Reporting and Verification (MRV), etc.
• Climate topics integrated into existing programmes: Inductions for New Hires, Medco 101 for New Leaders, Finance and
Accounting Apprentice Programme (FAAP), Subsurface Academy, and others.
3. Workforce Capability Development Programmes
• E-learning modules covered sustainability and climate change fundamental topics for senior leaders and the Climate Change &
Energy Transition Working Group.
- E-training courses were held for our employees between November and December 2023. These self-paced courses
consisted of three modules that delved into the sustainability frameworks, understanding climate change, and corporate
Climate Change Strategy. The target participants were senior leaders and climate change and members of the transition
working groups. We plan to expand this training to all our 2,000 employees.
• Lunch-and-Learn Seminars related to climate change issues.
4. Supply Chain Partners Programmes
Vendor Day: highlighted key initiatives in our Climate Change Strategy, including the initiative for Scope 3 GHG emissions, to raise
our business partners’ awareness.
Participating in Global and Regional Climate Events and Conferences
MedcoEnergi took part in several climate-related events and conferences in 2023. During these gatherings, we presented our
Sustainability Framework and Climate Change Strategy and highlighted the critical role of the energy sector in combating climate
change. Our participation in these events and conferences allowed us to gather valuable insights and feedback regarding our strategies,
progress, and performance. This is part of the collaboration and engagement efforts in our Climate Change Strategy.
• UN Framework Convention on Climate Change (UNFCCC) Conference of Parties 28 (COP-28)
• Singapore International Energy Week
• Indonesia Sustainability Forum
• China International Energy Storage Technology, Equipment and Application Conference & Exhibition (SNEC)
• Indonesia International Geothermal Conference and Exhibition (IIGCE)
• ASEAN Ministers on Energy Meeting (AMEM)
• Gastech (Hydrogen and Climatetech) Exhibition and Conference
• Enlit Asia-Power and Energy Annual Conference & Exhibition
Establishing Climate-related Incentives
MedcoEnergi has adopted incentive-based compensation schemes linked to sustainability and climate efforts, particularly those that
reduce GHG and methane emissions and expand renewable energy capacities. Each year, Team Performance Contracts (TPCs) are
created for various levels of staff, from top executives to individual employees. These contracts include specific Key Performance
Indicators (KPIs) related to sustainability and climate, which are reviewed quarterly. At the end of the year, achievements against these
targets are evaluated to determine performance incentives, potentially including salary adjustments.
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Our Journey in
Climate Business Integration
We incorporate considerations of climate change into our business operations and are dedicated to upholding the transparency of
our progress. We received a B rating in the 2023 CDP Climate Change, consistent with our score from 2022. We also released our
inaugural Taskforce on Climate-Related Financial Disclosures (TCFD) report in 2022. The complete TCFD report is available at this
link.
We strive to continuously improve our climate-related reporting in accordance with the latest standards for climate disclosures. The
TCFD has fulfilled its remit and was disbanded in October 2023. Subsequently, the International Financial Reporting Standards (IFRS)
Foundation has taken over the provision of climate disclosure standards that continue the work of the TCFD. We have begun to align
our transparency efforts regarding climate change with the IFRS’s S1 Sustainability-related Financial Disclosure and S2 Climate-
related Disclosure standards within this section.
Below is an update of our climate action progress, guided by the disclosure requirements of IFRS S2:
IFRS S2 Core
Recommended Disclosure Summary of Progress by 2023 Link
Element
Governance a. The governing body or individuals responsible • Established MedcoEnergi’s Climate Governance to address Sustainability
for overseeing climate-related risks and climate-related risks and opportunities. Report 2023,
opportunities. • Established Sustainability and Risk Management Committee Chapter 5,
b. Management’s role in the governance, controls, (SRMC), that supports the BoC overseeing the climate related page 55-58.
and procedures used to monitor and manage risks and opportunities.
climate-related risks and opportunities. • Formalised our Climate Change Working Group and Energy TCFD Report
Transition Working Group and assigned Persons in Charge (PICs) 2022, page
from relevant functions for both working groups pertaining to 4–5
each pillar of our Climate Change Strategy.
• Disclosed management’s roles in the governance controls and
monitoring approaches.
Strategy The climate-related risks and opportunities on: • Disclosed the climate-related risks and opportunities identified Sustainability
a. Climate-related risks and opportunities, that could from our climate scenario analysis in our SR and TCFD report. Report 2023,
reasonably be expected to affect the company’s • Developed our climate change strategy in 2021 based on the Chapter 7,
prospects. findings of our climate scenario analyses. page 115-117,
b. Business model and value chain: The current and • Disclosed the progress of corporate transitional action plans, 124-131 and
anticipated effects of those climate-related risks including intensifying climate change capacity building, growing 133-134.
and opportunities on the company’s business the renewable energy portfolio, and exploring CCUS (Carbon
model and value chain. Capture, Utilisation, and Storage) opportunities. TCFD Report
c. Strategy and decision-making, including climate- • Developed action plans and Key Performance Indicators (KPIs) 2022, page
related transition plans. for climate risks & resilience, mitigations, and adaptations for the 6 – 12.
d. Financial position, financial performance, and financial year 2023-2027. Our progress on the action can be
cash flows and their anticipated effects over the read on page 133-134.
short, medium and long term.
e. Climate resilience of the company’s strategies and
its business model to climate-related changes.
Risk a. The processes and policies used to identify, • Conducted an initial qualitative climate scenario analysis in 2021 Sustainability
Management assess, prioritise and monitor climate-related and updated it in 2023. Report 2022,
risks and opportunities, including if and how the • Recognised climate change as the overarching topic that Chapter 7,
company uses climate-related scenarios. interacts with every category of MedcoEnergi’s risk universe. page 115-117.
b. To which extent the company integrates and uses • Conducted CCRA to better identify the risks and opportunities.
its processes to manage climate-related risks We completed the CCRA for physical risks in two assets (Block A TCFD Report
and opportunities in its overall risk management and JOB Tomori) and are currently in-progress for the transition 2022, page
system. risks. Details of our CCRA results can be seen in page 115-117. 13 – 15.
Metrics and a. Climate-related metrics: Scope 1, 2, and 3 • Announced our climate aspirations to achieve net zero for Sustainability
Targets GHG emissions; transitions and physical risks; Scope 1 and Scope 2 GHG emissions by 2050 and Scope 3 GHG Report 2023,
opportunities. emissions by 2060. Chapter 7,
b. Climate-related targets: Quantitative and • Issued our climate interim targets of Scope 1 and 2 GHG page 110-112,
qualitative targets to monitor progress. emissions and methane emissions reductions as well as the page 117-123
targets of installed capacities from renewable energy for our and 128.
c. Climate-related targets: Approaches to setting
and reviewing each target and monitoring power business.
progress against each target. • Disclosed the review process for the targets of our renewable
energy installed capacities and its performance.
• Closely monitored the establishment of renewable power plants
related to the 2025 and 2030 interim targets.
• Developed internal carbon pricings and incorporated them into
corporate investment guidelines.
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Assessing Our Climate-related
Risks and Opportunities
Managing our climate-related risks and opportunities effectively is critical to maintaining our business resilience. This is why in 2021
we conducted an initial qualitative climate scenario analysis to identify and assess transitions and both physical risks and opportunities
that may potentially impact our Company. Further reading on the approaches, methodologies, findings, and mitigation measures for
our 2021 climate scenario analysis can be found in our TCFD report here.
In 2023, we completed the deeper review in a CCRA for physical risks in two assets (Block A and JOB Tomori) and are currently in-
progress for the transition risks.
Quantifying Our Climate-Related Risks and
Opportunities
Quantifying the impact of our climate-related risks and opportunities is the next step that we are taking to effectively manage,
mitigate and adapt to climate change. These steps will enable us to comprehensively understand the potential impact of climate
change on our operations, finances, and long-term business sustainability.
MedcoEnergi has conducted a more detailed climate scenario analysis that updated the 2023 qualitative analysis and undertook
a more quantitative approach. This pilot analysis focused on Block A and the non-operated asset, JOB Tomori. These assets were
selected to enhance our understanding and implementation of the CCRA requirements under Equator Principle 4 (EP4).
We used the latest climate scenarios issued by the IPCC, the Share Socioeconomic Pathways (SSPs)1. Our analysis was based on
the SSP1-2.6 low emissions scenario and the SSP5-8.5 high emissions scenario for 2030 and 2050 timeframes respectively. These
scenarios and timeframes were chosen to offer a broader range of temperature changes for physical risk assessments and align with
the preferences of national climate analyses.
The exercise has provided us with comprehansive findings from the physical risk assessments. Meanwhile, our assessments of
transition risks are still ongoing at the time of publishing this Sustainability Report.
Screening-level physical risks assessment
We conducted a screening-level physical risks assessment for 20 material assets under two Intergovernmental Panel on Climate
Change (IPCC) scenarios for 2030 and 2050. This assessment employed the Climate Impact Platform (CIP) tool2, which used climate
data and projections generated by its built-in global climate models. This desk-based assessment focused on:
1 The SSPs are a set of scenarios used in climate modelling to explore how different societal and economic factors could influence future GHG emissions and the resulting climate impacts.
Unlike the previously used RCPs, the SSPs consider a range of socioeconomic assumptions such as population growth, economic development, energy use and technological progress
2 CIP Tool is an industry-leading global climate database for screening-level physical risk assessments. It pulls from a database of detailed knowledge on the vulnerabilities of different
asset types and a range of climate projections to rapidly assess exposure of an asset(s) to physical climate risks that arise from different climate hazards.
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2 • SPP1-2.6 - Low Emissions scenario
3
• SSP5-8.5 - High Emissions scenario
• Indonesia scenarios
• Thailand
2
• Oman
countries
• Mid-term (2030)
• Long-term (2050)
scenarios
• Oil & Gas: Onshore
20
• Office
8
• Power: Natural Gas Coastal Floods, Extreme Heat, Inland
• Power: Thermal and Fossil Fuels Floods (Extreme Rainfall), Inland Floods
assets • Power: Hydropower (River Flooding), Cyclone and Wind,
• Power: Geothermal Rainfall-Induced Landslides, Water
climate hazards
Scarcity and Wildfires
Key Findings
• Extreme heat stands out as the hazard with the highest risk scores and the most significant increases in risks across all climate
scenarios and timeframes.
• Water scarcity, inland floods (river flooding) and coastal floods exhibit the highest baseline risks, whereas extreme heat is identified
to be the most common climate hazard across the 20 assets.
• Extreme heat, water scarcity and wildfires show the most substantial increases in risk scores for both the 2030 and 2050
timeframes under the SSP1-2.6 and SSP5-8.5 scenarios.
Two climate hazards were selected for Block A and JOB Tomori following the screening-level assessments. These selections were
based on their high absolute risk1 scores, indicating significant exposure and/or relevance to the assets in both the baseline and future
climate projections.
Quantitative Physical Risk Assessments
We subsequently conducted quantitative physical risk assessments to examine and quantify the potential financial impacts of the
two selected climate hazards on these assets given the climate data and projections used in the CIP tool. For these assessments, the
following quantification approaches were used:
Block A JOB Tomori
Extreme Heat: Extreme Heat:
Revenue loss stemming from the reduction Revenue loss caused by a temporary reduction
in production to comply with the flue gas of feed gas inflows or additional coolers to
requirements set by the MoEF. increase cooling capacity.
Inland Floods (Extreme Rainfall): Coastal Floods:
Revenue loss due to business disruption caused Revenue loss due to business disruption caused
by blocked access routes for condensate by high tides.
transport.
Key Findings for Block A
Extreme Heat:
• Global climate projections show minimal likelihood of daily max temperatures exceeding 39°C in 2030 and 2050.
• Block A’s design is resilient to mitigate extreme heat projections and there are no financial impacts anticipated on its operations.
Inland Floods (Extreme Rainfall):
• Global climate projections predict flood for maximum three-day disruptions at condensate trucking route accesses.
• Nevertheless, Block A has two condensate storage tanks, allowing for approximately ten days of holding time. In addition,
accelerating post-flood condensate trucking to meet the cumulative nomination targets can eliminate this financial impact.
1 A Risk score is a quantitative number used to assess the current and projected impacts from climate hazards, based on climate data and a site’s exposure rating from CIP tool’s Global
Climate Database. It does not take into account MedcoEnergi’s risk matrix or asset adaptation and mitigation measures.
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Key Findings for JOB Tomori
Extreme Heat:
• Climate projections forecast a maximum daily temperature of 35.37°C.
• The current asset design is resilient to temperatures up to 38°C at installed capacities, and global projections indicate no likelihood
of temperatures exceeding this in 2030 and 2050. As such, there are no financial impacts on its operations.
Coastal Floods:
• Global climate projections forecast a 0.22 m sea-level rise, with a total sea level rise amounting to 1.92 m when combined with the
highest recorded tide in 2020.
• At JOB Tomori, the jetty infrastructure is deemed resilient to the projected sea-level rises, standing at approximately 5.2 m above
sea level. As such, the anticipated sea-level rises are expected to disrupt condensate lifting cargo activities in a limited way and
there are no financial impacts on its operations.
In summary, Block A and JOB Tomori are not expected to suffer financial impacts from the selected Climate Hazards. This is accounted
for by the existing facilities in both assets, which are considered resilient enough to overcome the projected impacts from physical
climate risks.
Quantitative Transition Risk Assessments
The governments of the countries where we operate have started to lay the groundwork in establishing a carbon pricing mechanism.
In Indonesia, Presidential Regulation 98/2021 on Implementation of Carbon Pricing for Target Achievement sets the foundation
to establish a domestic carbon market that involves carbon trading and results-based payment. Furthermore, Law 7/2021 enacts
the carbon tax amount of USD 2.06/tCO2e with the initial stage of implementation limited to the coal power plants in 2022 and
will be expanded to the other sectors in 2025. There is also the Ministry of Environment & Forestry Regulation 21/2022 concerning
Procedure For Implementation of Carbon Pricing that regulates carbon trading & carbon tax. However, the implementing guidelines
for the oil & gas sector have yet to be in place. The most recent one is the Financial Services Authority Regulation 14/2023 that puts
into effect carbon trading through Carbon Exchange by Indonesia Stock Exchange (IDX). In relation with the latter regulation, Medco
Power has registered as an issuer with IDX and is working towards selling carbon credits through Carbon Exchange in the future.
Meanwhile, Thailand is currently formalising their carbon pricing mechanisms, which will be regulated under the Climate Change Act
(Climate Change Law). This law is undergoing a public hearing from February to April 2024 and is expected to be approved by the
Thailand cabinet in June 2024.
While our quantitative transition risk assessments are still ongoing, we have examined the potential impact of carbon pricing on our
business using our assured 2023 GHG emissions data.
Given the uncertainty of implementation of regulation, we calculated potential financial impacts conservatively as a worst-case
scenario approach by applying our gross operational control approach. It covers all oil & gas and power assets, both domestic and
international, based on our best available information. The potential financial impact of carbon pricing on our business may reach up
to USD 11.7 million, as per our 2023 GHG emissions.
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Our Environmental Footprint
at a Glance
Key Oil & Gas Total Scope 1 & 2 GHG Emissions Reduction Performance
between 2022 and 20231
Block A Tarakan Bangkanai
19% 20% 71%
Corridor
7%
Sampang
14%
Oil & Gas Asset Percentage Reduction Amount Reduction (tCO2e)
Bangkanai 71% 36,468
Tarakan 20% 1,213
Block A 19% 78,505
Sampang 14% 3,964
Corridor 7% 167,579
Highlights of Our Scope 1 & 2 GHG and Methane Emissions Reduction in 2023
3%
Reduced Oil & Gas
22%Reduced Oil & Gas
The 2023 reductions were driven by:
• Operational improvements
• GHG emissions reduction efforts
• Natural production declines from our assets
Scope 1 & 2 GHG Scope 1 & 2 GHG
emissions in 2023 emissions in 2023
from 2022 from 2019
27% 40%
The 2023 reductions were driven by:
• Lower flaring due to less non-routine
activities in Lematang and Block A
• Methane emissions reduction efforts
Reduced methane Reduced methane • Natural production declines from our assets
(CH4) emissions in 2023 (CH4) emissions in 2023 • Fugitive emissions adjustments in South
from 2022 from 2019 Sumatra Block and Rimau with reference to
API Compendium 2009
1 The total values of Scope 1 and Scope 2 GHG emissions have been assured, and we performed internal calculation on the Scope 1 and Scope 2 GHG emission reduction performance.
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Our Scope 1 & 2 GHG and Methane Emissions Reductions in 2023 Against Our Interim Targets
Achieved
Strategies for further reductions, among others:
• Fuel optimisation
• Electrification
We achieved the 2025 interim targets from base year • Flare reductions
2019 for our oil & gas Scope 1 and 2 GHG and methane • Renewable energy
emissions reduction, two years ahead of plan.
On track
We are on track to achieve our 2030 interim targets to
Strategies for further reductions, among others:
• Flare reductions
• Storage tank blanketing using nitrogen
further reduce both Scope 1 and 2 GHG and methane • Facility footprint optimisations
emissions and on our trajectory to achieve net zero.
Scope 1 and Scope 2 GHG Emissions from Oil & Gas (tCO2e)
6,000,000 5,420,173
4,772,380 4,623,180
4,369,537 4,249,555
4,000,000
2,000,000
0
2019 2020 2021 2022 2023
Energy Consumption from Oil & Gas (million GJ)
40 38.7
36.6 37.0
30
20
10
0
2021 2022 2023
Oil & Gas Scope 1 GHG Emissions from Methane (CH4) (tCO2e)
200,000
163,595
150,000 137,973
132,406 134,408
100,000 98,520
50,000
0
2019 2020 2021 2022 2023
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Emissions
Reductions
‘Emissions Reductions’ are initiatives that aim to reduce emissions from our operations and supply chains and improve our energy and
resource efficiency. Additionally, under this pillar, we also aim to explore nature-based solutions for carbon sequestration.
GHG Emissions Performance
We continue to manage, monitor, and disclose our Scope 1 and Scope 2 GHG emissions. We are currently improving our internal
systems and processes to disclose our Scope 3 GHG emissions. We aim to disclose our assured Scope 3 GHG emissions and their
interim targets in 2025.
We ensure that our standardised Air and GHG Emissions Calculation Tool complies with the latest updates to laws and regulations and
aligns with all relevant standards and frameworks1.
Direct GHG Emissions (Scope 1)
We account for direct emissions from our oil & gas and power assets as part of our Scope 1 GHG emissions. The two largest sources
of these emissions are the combustion and flaring of natural gas in our operations. We are supporting government’s programme on
eliminating routine flaring by 2030.
Oil & Gas
In 2023, our absolute Scope 1 GHG emissions2 from our oil & gas assets were 4,223,200 tCO2e. This is a 2.8% decrease from the
previous year due to operational improvements, GHG emissions reduction projects, and natural production decline.
This table provides a breakdown of our Scope 1 GHG emissions in tCO2e and their sources:
Type of GHG emissions sources 2021 2022 2023
Combustion 4,228,194 3,902,451 3,835,109
Flaring 270,897 340,562 317,247
Venting 30,303 31,309 28,093
Process (Feedstock) 2,166 1,439 2,155
Fugitive 73,910 69,386 40,597
Total 4,605,470 4,345,147 4,223,200
The decrease of Scope 1 GHG emissions is due to operational improvements (e.g. fuel optimisation, and both flaring and venting
reduction projects) and natural production decline. For further information on the trend and statistics of this Scope 1 GHG emissions
data, please refer to the 2023 GRI Performance Data.
The following presents our CH4 values from our Scope 1 GHG emissions:
2021 2022 2023
Scope 1 GHG emissions from CH4 in tCO2e 132,406 134,408 98,520
Percentage of Scope 1 GHG emissions from CH4 2.9% 3.1% 2.3%
1 Our Air and GHG Emissions Calculation Tool references the American Petroleum Institute (API) Compendium 2009, the US Environmental Protection Agency (EPA) AP-42 Compilation
of Air Pollutant Emissions Factors, the IPCC Guidelines for National Greenhouse Gas Inventories 2006, the GHG Protocol for Corporate Accounting and Reporting Standard from the
World Business Council for Sustainable Development (WBCSD) and World Resources Institute (WRI) 2004, EPA Mandatory GHG Reporting 2016, US EPA GHG Inventory Guidance
2016, the ISO 14064-1:2006, Natural Gas (Second Edition: 2019) by James G. Speight and Republic of Indonesia Implementation Guidance of National Greenhouse Gas Emissions
Inventory Book II - Volume 1 Year 2012.
2 The list of assets in 2021-2023 that calculate GHG Scope 1 Emissions—International: Oman and Thailand; Domestic: Rimau, South Sumatra Block, Lematang, Tarakan, Block A, South
Natuna Sea Block B, Bangkanai, Sampang, Madura Offshore, Corridor and Jakarta Office. Corridor acquisition completed in March 2022. Emissions from Corridor is included from 2019
as it is our base year.
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Power
For our power business, our absolute Scope 1 GHG emissions in 2023 were 1,416,625 tCO2e, indicating a 3.8% increase from 1,365,141
tCO2e in 20221. This increase is primarily due to the rise in electricity production, which led to increases in the consumption of natural
gas and Scope 1 GHG emissions.
Absolute Scope 1 GHG Emissions in Oil & Gas and Power
6,338,173
5,540,347 5,710,288 5,639,825
6,000,000 5,463,278
5,419,586
4,760,975
4,605,470
4,345,147 4,223,200
4,000,000
tCO2e
2,000,000
1,365,141 1,416,625
918,588
779,373 857,808
0 2019 2020 2021 2022 2023
Oil & Gas Power Oil & Gas and Power
Scope 1 GHG Emissions Intensity in Oil & Gas and Power
400 1
0.9
324
311 314 0.8
GHG Emission Intensity for Oil & Gas
291
GHG Emission Intensity for Power
300 289
(tCO2e/1,000 TOE HC Product)
0.7
0.56 0.54 0.6
(tCO2e/MWh)
0.53 0.50
0.49
200 0.5
0.4
0.3
100
0.2
0.1
0 2019 2020 2021 2022 2023 0
Oil & Gas Power
Indirect GHG Emissions (Scope 2)
Our Scope 2 GHG emissions are our indirect GHG emissions associated with our purchased electricity.
Oil & Gas
In 2023, our oil & gas assets emitted 26,354 tCO2e of Scope 2 GHG emissions, indicating an 8% increase from 24,390 tCO2e in 20222.
Part of this increase came from our 2023 switch to grid power in the South Sumatra Block, Bangkanai and Oman assets.
Power
Our power assets’ Scope 2 GHG emissions were 1,566 tCO2e in 2023, indicating an 11% decrease from 1,760 tCO2e in 20223. This is
due to fewer unplanned outages at operational assets followed by decreases in imported electricity and Scope 2 GHG emissions.
1 The assets in 2022 and 2023 that produced Scope 1 GHG emissions are ELB, EPE, MPE, MEB, DEB, MRPR, BJI, PPP and MPI Head Office.
2 The list of assets in 2023 that consume energy from purchased electricity consist of Bangkanai, South Sumatra Block, Tarakan, South Natuna Sea Block B, Sampang, Thailand, Oman,
Singapore Office, Jakarta Office, Palembang Office and Corridor. Meanwhile, the list in 2022 is similar, but the Malaysia Office is included and the Palembang Office is excluded in the list.
3 The assets in 2022 and 2023 that produced Scope 2 GHG emissions are ELB, EPE, MPE, MEB, DEB, MRPR, BJI, PPP and MPI Head Office.
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Absolute Scope 2 GHG Emissions in Oil & Gas and Power
30,000
26,354
24,390
25,000
20,000
tCO2e
17,710
15,000
11,405
10,000
5,000
1,760 1,566
588 50 57 819
0 2019 2020 2021 2022 2023
Oil & Gas Power
Indirect GHG Emissions (Scope 3)
Our Scope 3 GHG emissions refer to the indirect GHG emissions that occur along our corporate value chain. They include all GHG
emission sources that are not within our Scope 1 and Scope 2 GHG emissions.
We are currently working on enhancing our internal systems and processes to identify, manage and disclose our Scope 3 GHG
emissions. This includes establishing an inventory, delivering capability-building sessions, and engaging with our business partners.
We aim to assure and disclose our significant Scope 3 GHG emissions and set reduction targets by 2025.
Energy Performance
At MedcoEnergi, we continuously implement programmes and initiatives aimed at securing energy efficiency to minimise our
footprint. Furthermore, we regularly conduct energy audits to evaluate our consumption and identify opportunities to improve our
performance.
To calculate our energy consumption and intensity, we use the American Petroleum Institute (API) Compendium 2009, the GHG
Protocol for Corporate Accounting and Reporting Standards from WBCSD and WRI 2004, the ISO 14064-1:2006, and Natural Gas
(Second Edition: 2019) by James G. Speight.
Oil & Gas
In 2023, our total energy consumption for our oil & gas assets was 38,738,652 GJ, showing a 4.6% increase from 37,026,220 GJ in
2022. There was also a 2.46-fold increase in energy consumption from renewable sources compared to 2022. The primary reasons
for the increased consumption from renewable sources were because (1) domestic assets started using Biodiesel (B35) and (2)
Onshore & Offshore assets installed solar PV.
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Oil & Gas Energy Consumption and Intensity
Unit 2021 2022 2023
Renewable energy sources (e.g., GJ 43,347 1
107,655 1
264,4072,3
biodiesel (B30, B35), gasohol
(E20) and solar energy)
Non-renewable energy (e.g., GJ 36,392,8371 36,755,7631 38,296,8452,4
gasoline, natural gas, diesel, and
crude oil)
Electricity consumption GJ 159,8505 162,8026 177,4007,8
Total Energy Consumption GJ 36,596,0341,5 37,026,2201,6 38,738,6522,3,4,7,8
Energy Intensity GJ/TOE HC 2.311,5 2.471,6 2.882,3,4,7,8,9
Product
Power
Our power assets had a total energy consumption of 15,100,104 GJ in 2023, an increase of 4.9% compared to 14,390,683 GJ in 2022.
Power Energy Consumption and Intensity
Unit 2021 2022 2023
Renewable energy sources (e.g., GJ 910,11 32212,13,14 57012,15,16
biodiesel (B30, B35) and solar
energy)
Non-renewable energy (e.g., GJ 15,275,31610 24,309,19712 25,226,14412,17
gasoline, diesel, and natural gas)
Electricity consumption GJ 3,13510 6,80612 6,07012
Electricity sold GJ 5,738,83810,18 9,925,64212,18 10,132,68012,18
Total Energy Consumption19 GJ 9,539,62110 14,390,68312,20 15,100,10412,21
Energy Intensity GJ/MWh 5.9710 5.2112 5.3612
1 The list of assets in 2021-2022—International: Oman, Thailand, Singapore Office, and Malaysia Office; Domestic: Rimau, South Sumatra Block, Lematang, Tarakan, Block A, South
Natuna Sea Block B, Bangkanai, Sampang, Madura Offshore, Corridor and Jakarta Office. Corridor acquisition completed in March 2022. Energy from Corridor is included from 2019 as
MedcoEnergi’s Emission base year started in 2019.
2 The list of assets in 2023—International: Oman, Thailand, and Singapore Office; Domestic: Rimau, South Sumatra Block, Lematang, Tarakan, Block A, South Natuna Sea Block B,
Bangkanai, Sampang, Madura Offshore, Corridor, Jakarta Office, and Palembang Office. In 2023, Malaysia Office is not included due to stop operating in November 2022.
3 Domestic assets start using Biodiesel (B35) and solar PV installation in Onshore & Offshore.
4 Higher compressors fuel gas consumption in Corridor.
5 The list of assets in 2021 that consume energy from purchased electricity consist of Tarakan, South Natuna Sea Block B, Sampang, Thailand, Oman, Malaysia Office, Singapore Office,
Jakarta Office, and Corridor.
6 The list of assets in 2022 that consume energy from purchased electricity consist of Bangkanai, South Sumatra Block, Tarakan, South Natuna Sea Block B, Sampang, Thailand, Oman,
Malaysia Office, Singapore Office, Jakarta Office, and Corridor.
7 The list of assets in 2023 that consume energy from purchased electricity consist of Bangkanai, South Sumatra Block, Tarakan, South Natuna Sea Block B, Sampang, Thailand, Oman,
Singapore Office, Jakarta Office, Palembang Office, and Corridor.
8 Implementation of electrification projects in Oman, South Sumatra Block, and Bangkanai.
9 Higher compressors fuel gas consumption in Corridor as well as lower production in several assets as a result of natural decline.
10 The list of assets in 2021 — ELB, EPE, MPE, MEB, and DEB.
11 The list of assets in 2021 that consumed renewable fuel: EPE.
12 The list of assets in 2022 and 2023 — ELB, EPE, MPE, MEB, DEB, MRPR, BJI, PPP, and MPI Head Office.
13 The list of assets in 2022 that consumed renewable fuel: ELB, MEB, MRPR, BJI, and PPP.
14 The significant increase of renewable energy consumption is mainly due to increasing biofuel and solar panel usage in additional and existing operational assets.
15 The list of assets in 2023 that consumed renewable fuel: ELB, MPE, MEB, MRPR, BJI, and PPP.
16 The significant increase in renewable energy consumption is mainly due to increasing biofuel and solar panel usage as well as the use of Biodiesel (B35) starting in 2023.
17 The significant increase in non-renewable energy consumption is mainly due to increasing amounts of electricity production and operational hours in 2023 compared to 2022, which
resulted in increases in natural gas consumption.
18 The actual productions in ELB, MEB, DEB, and MRPR were the total amounts of electricity produced by the engines and sold to the third-party (PLN), while in MPE, EPE, BJI, and PPP, the
actual production contains electricity sold to third-parties and used for internal consumption.
19 Total energy consumption in Power is calculated as the sum of fuel consumption from both renewable and non-renewable energy sources plus electricity consumption, minus the
electricity sold.
20 The significant increases in energy consumption are mainly due to additions in operational assets. Hence, the amounts of electricity production also increased in 2022, followed by
increases in energy consumption.
21 The significant increases in energy consumption are mainly due to the increasing amounts of electricity production and operational hours in 2023 compared to 2022, which resulted in
increases in natural gas consumption.
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Strategic Initiatives
We have undertaken the following efforts in our oil & gas assets to decrease GHG emissions.
Implemented 41 initiatives throughout 2023,
with estimated peak annual1 GHG emission reductions: 147,963 tCO e
2
In addition, a one-time reduction of 94,860 tCO e was achieved from well cleanup and testing activities.
2
Total investments in GHG emissions reduction programmes and initiatives in 2023:
USD 1.8 million
Included in the initiatives:
a CH emission reduction of 1,409 tCO2e2 and 8,084 tCO2e
4
one-time reduction from well cleanup and testing activities in 2023.
We consider our GHG emissions reduction so far to be commendable, which have resulted from our operational efficiencies and
improvements in most assets. Achieving such reductions involved enhancing operational efficiencies through technological upgrades,
process optimisations and shifts to cleaner energy sources for operations. These changes also led to operational improvements that
continue to benefit our company. We strive to continuously reduce our GHG emissions through various initiatives, which are guided
by our targets to achieve net-zero emissions for Scope 1 and Scope 2 by 2050.
Onshore 2
Our onshore assets in the South Sumatra Block, Rimau, and Lematang have finished various decarbonisation projects that revolve
around process efficiency improvements, solar PV installations, and facility footprint reductions.
Onshore
Rimau South Sumatra Block
Estimated reduction of Estimated reduction of Estimated reduction of
3,651 tCO e/year 2
3,000 tCO e/year 2
347 tCO e/year 2
Progressive Mothballing of our Onshore asset's Improvements with our gas engine generator Making a switch from onsite power generation
old equipment at Rimau. Mothballed equipment operations at Soka and Jene Stations led to to PLN's grid electricity at our Gunung Kembang
include crude oil tanks, gas scrubbers, and gas reduced fuel gas consumption, maintenance Mess and Temelat Station. Grid electricity
lines among others. costs, process safety risks, and GHG emissions. infrastructure was built in order to facilitate the
use of grid electricity
Across our Onshore assets in
South Sumatra Block and Lematang,
we have used renewable energy
within the operational area to
power our facilities and streetlights.
Estimated reduction of
116 tCO2e/year
1 The peak annual emission reductions refer to the maximum amounts or the highest possible amounts of decreases in emissions achieved in a particular year compared to a previous
reference period.
2 The numbers indicate the peak annual emission reductions
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Gas Engine Generator (GEG) Optimisations at Jene and Soka
The South Sumatra Block identified eight GEG units running below optimum loads at the Soka and Jene stations. The subsequent
optimisation initiatives led to increased load factors for the GEGs and reductions in total GEG use: from eight to six. These initiatives
also saved USD 1,200 per day in fuel costs, with a total GHG reduction of around 3,000 tCO2e/year.
Renewable Energy Certificates (REC)
The Bangkanai and South Sumatra Block assets have implemented a strategic approach, shifting from sourcing their own power
to purchasing electricity from the State Electricity Company (PLN) since 2022. These purchases were made partly through the
Renewable Energy Certificates (RECs) from the hydroelectric energy provided by Medco Power Indonesia.
In 2023, the redemption of RECs represents electricity generated from renewable sources amounting to 115.09 MWh in Bangkanai,
and 86.36 MWh in the South Sumatra Block. Meanwhile, 69.10 MWh of electricity was generated from renewable sources in 2022 for
both the Bangkanai and the South Sumatra Block.
Corridor 1
Our Corridor asset actively evaluates and carries out various projects to lower our emissions. In 2023, we focused on two emission
reduction initiatives that we determined to have maximum impact: optimising our processes and reducing flaring.
Estimated reduction of
Estimated reduction of
128,973 tCO2e 94,860 tCO2e
from flare avoidance during well clean-up and testing
from various process optimisation initiatives in 2023
in various wells as a one-time reduction in 2023
Corridor
Grissik Suban
Operational Estimated reduction Estimated Estimated
Operating strategy
improvements of approximately reduction of Amine flash gas reduction of
optimisation of
through
Amine process 82,276 Grissik's Thermal
Oxidiser (TOX)
3,027 utilisation as Low-
Pressure Fuel Gas 12,672
optimisation tCO2e/year tCO2e/year tCO2e/year
Estimated reduction Estimated Fuel use reduction Estimated
Passing valve
Optimised the of approximately reduction of through sales reduction of
replacement to
Operating Mode at
Grissik 13,698 reduce flare flow
rate
2,476 gas compressor
operation 7,941
tCO2e/year tCO2e/year optimisation tCO2e/year
Rawa Dayung
Estimated
Flare reduction Estimated Estimated Replaced diesel reduction of
through passing Gas instrument
reduction of reduction of generator power to
239
valve replacement
at Letang Tengah 6,613 requirement review
and optimisation 31 Suban Plant power
tCO2e/year
Rawa (LTR) Plant tCO2e/year tCO2e/year
Well Clean-up and Testing
Avoided flaring emissions by flowing flare gasses during Estimated reduction of
94,860
well clean-up and testing directly to sales.
This was applied to wells in Suban, Dayung, Sumpal,
and Gelam throughout 2023 tCO2e
1 The numbers indicate the peak annual emission reductions.
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Corridor Amine Process and Operating Mode Optimisation
Corridor is processing gas from high CO2 fields like Sumpal, Dayung, Gelam, and Letang Tengah Rawa, and is facing challenges
in managing utility consumption. In 2023, it implemented initiatives to improve operational efficiency, including adjustments to
amine circulation and GTG operating mode, and shutting down the Thermal Oxidiser (TOX) operation. These efforts have significantly
reduced fuel gas usage, potentially reducing GHG emissions by 97,000 tCO2e/year.
Suban Amine Flash Gas Utilisation as LP Fuel
Since 2020, amine flash gas has been used as a low-pressure (LP) fuel source in the Suban field, with efforts to optimise the process
increasing its conversion into LP fuel. These measures have decreased fuel gas consumption by 0.6 million standard cubic feet per
day (mmscfd) and prevented amine flash gas from being burned in TOX, reducing greenhouse gas emissions by 12,000 tCO2e/year.
Offshore 1
Our offshore assets have advanced their decarbonisation projects through operational improvements and solar PV installations.
Offshore
South Natuna Sea Block B Sampang
Estimated reduction Running on a Estimated Optimised the Estimated
Running on a single gas
of approximately single gas turbine reduction of operating mode reduction of
turbine generator (GTG) to
1,980 6,930 91
generator (GTG) to of the utility and
optimise fuel usage at Hang
optimise fuel usage instrument air
Tuah field tCO2e/year tCO2e/year tCO2e/year
at North Belut field compressor at Grati
Estimated reduction Estimated
Refrigeration unit process of approximately Optimised air cooler reduction of
1,980 79
optimisation at Hang Tuah operation at Kerisi
field field
tCO2e/year tCO2e/year Estimated
Implemented solar reduction of
Installed solar panels at 3
buildings at our Matak Site, Estimated Installed a solar PV Estimated
PV systems for Base
Road lighting at Grati 34
amounting to around 150 reduction of system to provide reduction of tCO2e/year
kWp of capacity.
• Jetty Office (25 kWp) 101 100% of the power
for our new platform 238
• Airport Terminal (65 kWp) tCO2e/year at Bronang tCO2e/year
• Wisma Belida (50 kWp)
South Natuna Sea Block B and East Java
Estimated reduction of
Optimised our facilities' lighting by switching our light source to LED 12
tCO22/year
Solar PV in Matak, Indonesia
1 The numbers indicate the peak annual reduction.
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Single GTG Operation at North Belut
The South Natuna Sea Block B opted to streamline its operations at the North Belut field following a thorough reliability assessment.
This involved transitioning from two gas turbine generators (GTGs) to a singular GTG configuration. This strategic decision has resulted
in noteworthy fuel conservation, estimated at approximately 0.35 mmscfd, thereby corresponding to an annual emission reduction
of 6,930 tCO2e/year. Additionally, this transition has facilitated savings in maintenance expenditures.
Refrigeration Unit Optimisation at Hang Tuah
The Western Hub, comprising the Hang Tuah and Belida processing facilities, sends treated gas to buyers, with Hang Tuah serving
as the sales gas hub. These facilities, powered by GTG, use the hydrocarbon dew point unit treatment through refrigeration to meet
gas sales contract requirements. Declining production led to efforts to optimise gas treatment that focused on refrigeration unit
performance across the Western Hub.
Our analyses revealed that gas sales specifications could be met through treatment in Belida and adjusting gas blending ratios.
Therefore, it allowed Hang Tuah's refrigeration unit to be placed on standby. This optimisation led to reductions in both GTG loads
and emissions, by 1,980 tCO2e/year.
Energy Audits at our Offshore Assets
At MedcoEnergi, we conduct regular energy audits at least once every three years, as required by both Green PROPER and our
Climate Change Strategy. We conducted energy audits for both South Natuna Sea Block B and East Java in 2022 that involved
certified internal and external energy auditors.
These audits recommended that energy consumption be more efficiently managed and operational efficiencies be enhanced.
Among others, the audits recommended a solar PV light pole project in our Grati facility, East Java. These recommendations were
implemented in 2023; as a result, this low carbon electrification in Grati could potentially reduce emissions by 34 tCO2e/year.
International
Our asset in Oman has transitioned from diesel generators to overhead line electricity to power the pumps in our Salwa Field
operations. This electricity is sourced directly from our client, Petroleum Development Oman (PDO). By converting to electricity, we
reduced GHG emissions by up to 431 tCO2e each year. We plan to expand this electrification programme to additional fields.
Commisioning of Diesel Genset conversion to Overhead line electricity in Salwa Field, Oman
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Transitioning To
Low Carbon Energy
The strategies to transition to low carbon energy have allowed us to harmonise our activities with the energy transition as we shift
from fossil fuels to renewable energy. Natural gas has become a transitional fuel to reduce emissions and address the increasing
energy demands in the area. In response, we are expanding our natural gas production and renewable energy portfolio.
In 2023, our power sales rose to 4,155 GWh, marking a 4.1% increase from the previous year. These escalating sales, paired with our
expanded renewable energy proportions in our energy mix, reached 23% in 20231. We are thus on track to achieve our renewable
energy mix target of 26% by 2025 and 30% by 2030.
Our Energy Transition With Gas
We strive to consistently increase our supplies of electricity with gas power. The following highlights our progress in gas infrastructure
in 2023:
275 MW 2x35 MW (Existing) + 39 MW (Add-on)
Gas-fired Powerplant Gas-fired Powerplant
Riau Batam
• Owned by Medco Power Indonesia and RATCH Group • Owned and operated by PT Energi Listrik Batam (ELB)
• Operated by PT Medco Power Servis Indonesia (MPSI) • The Simple Cycle Power Plant (SCPP) has been operating since 2017
• Reached Commercial Operation Date (COD) in February 2022 • Currently installing a 39 MW Combined Cycle Add-on
• Achieved the first fully operational year in 2023 • The Add-on is considered an energy conservation project, utilising
exhaust energy to produce additional electricity
• The Add-on plans to reach COD in Q3 2025
We expanded our role in providing gas to both domestic and international markets through a fuel switch from more intensive carbon
fuel to lesser carbon and cleaner fuel. This is in alignment with the government's energy transition efforts.
Below are the key points of the new gas sales agreement (GSA) that we concluded in 2023:
GSA Description
Block B – Sembcorp Gas GSA between Medco E&P Natuna Ltd. and Sembcorp Gas Pte. Ltd. for the sale and purchase of gas from South Natuna
GSA Sea Block B.
South Sumatra – PUSRI GSA between PT Medco E&P Indonesia – PT Medco E&P Lematang and PT Pupuk Sriwidjaja Palembang (PUSRI), with gas
GSA jointly supplied by the South Sumatra and Lematang.
East Java – SCE GSA GSA between Medco Energi Madura Offshore Pty. Ltd. and PT Sarana Cepu Energi (SCE).
New PGN GSA GSA between Medco E&P Grissik Ltd. and PT Perusahaan Gas Negara, Tbk. (PGN/State-owned Gas Company).
1 Renewable power equity shares installed capacity. Government of Indonesia’s 2025 target: 23% and 2030: 25%.
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Expanding Our Renewable Portfolio
As part of transition to low carbon energy, we are expanding our renewable power portfolio in solar PV and geothermal. This is
spearheaded by our Power subsidiary.
Below is our revenue from renewables and its percentage from total revenue in Medco Power.
2021 2022 2023
Total MPI Revenue1 from renewables in USD 128,353,513.28 120,490,736.25 286,761,356.36
2021 2022 2023
Renewables 2% 4% 60%
Non Renewables 98% 96% 40%
Solar Photovoltaic (PV)
We have expanded our solar PV portfolio in recent years. The following highlights the progress of our solar PV projects as of 2023:
Project Progress in 2023
Sumbawa PV • Jointly owned by Medco Power and Amman Mineral Nusa Tenggara (AMNT)
(26 MWp) • Currently the biggest operating ground-mounted solar PV facilities in Indonesia
• Estimated to reduce emissions by approximately 40,000 tCO2e/year
• Achieved Commercial Operation Date (COD) in June 2022; first full operating year in 2023
East Bali PV Project • Developed by Medco Power and Solar Philippines
(25 MWp) • Estimated to reduce emissions by approximately 45,000 tCO2e/year
• Reached Final Investment Decision (FID) in December 2023, with expected COD in December 2024
Bulan Island PV Project • Proposed by Medco Power, Pacific Power Pte Ltd, and Gallant Venture Ltd
(over 2,000 MWp) • Our consortium, Pacific Medco Solar Energi, has been granted a conditional approval import license for 600 MW
• Estimated to reduce emissions by approximately 830,000 tCO2e/year
• Expected to reach COD in 2028
Solar Rooftops at ELB and • Installation of solar rooftop in Medco Power operation areas to reduce the carbon footprint
MRPR site offices • Estimated to reduce emissions by approximately 94.90 tCO2e/year
• Operating at a capacity of 33 kWp for ELB and 47 kWp for MRPR since 2019 and 2022, respectively.
Geothermal Projects
With a focus on delivering cleaner and reliable energy, MedcoEnergi has been increasing our geothermal energy capacity in Indonesia.
The following highlights our key geothermal projects:
330 MW 34 MW
Sarulla Geothermal Ijen Geothermal (Phase 1)
North Sumatra East Java
• Owned by a consortium of Medco Power, Kyushu Electric Power, • Operated by Medco Power and Ormat Technologies
Itochu, INPEX, and Ormat International • Potentially contribute to the reduction of 235,000 tCO2e/year
• Currently the largest single-contract geothermal power plant in the • Completed development drilling for Ijen Phase 1 (34 MW)
world • Plan to achieve COD in Q1 2025
• Potentially contribute to the reduction of 1,090,196 tCO2e/year
• Reached Commercial Operation Date (COD) in 2017 for Unit 1 and
Unit 2, and Unit 3 commenced operation in 2018
We are also in the early stages of exploration for Bonjol Geothermal (50 MW) in West Sumatra.
1 Including revenue from progress construction and excluding intercompany eliminations.
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Mini Hydropower
Through PT Medco Hidro Indonesia, we operate two mini hydropower plants in West Java: Cibalapulang and Pembangkitan Pusaka
Parahiangan, with a combined capacity of 18 MW.
Wind Energy Project
Medco Power is assessing a wind power plant in West Sumbawa. A feasibility study is underway, funded by the United States Trade
and Development Agency (USTDA) Grant.
Electric Vehicle (EV)
We have started utilising EV in our operations in Jakarta, Pekanbaru and Batam, which includes EVs and charging infrastructure.
Pursuing Decarbonisation Through CCS/CCUS
At MedcoEnergi, we contributed to forming key government regulations and the Indonesian National Standards (SNI/Standar Nasional
Indonesia) on carbon capture and storage (CCS) and carbon capture, utilisation and storage (CCUS). This was achieved by providing
feedback through the Indonesia Petroleum Association (IPA) and directly participating in Indonesian government taskforces.
We are also conducting studies on CCS at South Natuna Sea Block B, Gelam field in Corridor1 and Arung Nowera gas field development
in South Sumatra. These efforts align with our Climate Change Strategy to remove carbon.
Renewable Energy Certificates
As part of our renewable energy adoption, Medco Power is commercialising our carbon attributes, Renewable Energy Certificates
(RECs) and carbon credits. We have also registered with the recently launched Indonesia Carbon Exchange (IDX Carbon).
Emerging Physical Climate
Risk Management
Climate Adaptation
We conducted a CCRA that assessed the quantitative financial impacts of climate-related physical risks in 2023. This study’s approaches
and findings can be read in the section “Assessing Our Climate-Related Risks and Opportunities”. Following that assessment, we plan
to develop systems to regularly monitor climate hazards and their impacts.
We are committed to adhering to national and international best practices for monitoring mechanisms. This will enable us to explore
opportunities to maintain asset integrity and the safety of our employees amidst climate uncertainties.
1 Joint injection study with Repsol Sakakemang BV (RSBV).
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Climate Design
We thoroughly assessed our new projects and operations, with climate change and biodiversity included as key indicators. Further
details on our sustainability assessments are available in Chapter 6. In addition, we assessed activities such as maintenance and
transportation that could pose environmental risks and contribute to climate change. For example, we assessed the biodiversity
impacts that maintenance on Corridor’s pipeline right-of-way (ROW) might have near the Dangku Wildlife Reserve.
We are incorporating climate risk assessments into future engineering designs. For instance, we have modified our platform designs
to incorporate solar panels on our new offshore platforms.
Enhancing Transparency
At MedcoEnergi, we guarantee transparency with our stakeholders regarding our ESG performance
indicators, with a particular focus on climate change initiatives. We maintain the highest standards of
integrity when presenting our performance data by adopting a third party limited assurance process
for selected GRI indicators in our Sustainability Report (SR). Since 2017, we have progressively
increased the number of assured indicators each year. In 2023, we covered 96 GRI indicators, a
significant increase from the 2017’s 31 indicators. This demonstrates our ongoing commitment to
enhance the quality and scope of our sustainability reporting as well as respond to stakeholders’
feedback effectively.
As part of the limited assurance process, our assurers visit selected oil & gas and power sites to gather
evidence and documentation on selected GRI indicator samples. Each year, the assurers visit one oil
& gas site and one power site. In 2023, the visit included the South Natuna Sea Block B oil & gas asset
and the power assets of MEB and DEB. Sites that have been visited since 2018 include Rimau, South
Sumatra Block, Corridor, South Natuna Sea Block B, MEB-DEB, ELB, and MRPR.
These site assessments focused on emissions, energy use, occupational health and safety (OHS),
local communities, and indirect economic impacts.
The conclusion of this assurance process can be found on page 3 of this SR, and on the attached
Limited Assurance Statement from KAP PSS - EY. The emissions and energy performance figures
assured by KAP PSS - EY can be found on the GRI Performance Data 2023. For information on OHS,
refer to Chapter 10, while insights into local communities and indirect economic impacts are available
in Chapter 8.
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Alignment Of
Sustainability Initiatives with the
UN Sustainable Development
Goals (SDGs)
The following table maps our sustainability initiatives to realise our climate aspirations against the UN SDG targets. Please note that
this mapping does not mean that MedcoEnergi claims to have measured or set targets for host governments in our operational areas
in terms of achieving the UN’s SDGs.
UN SDGs Relevant Target Key Initiatives
• Renewable energy development: solar PVs and geothermal
• Climate capability building training sessions, focusing on renewable energy
7.2, 7.3, 7.A, 7.B
development, deployment and community engagements.
12.2, 12.6 Key initiatives within the Climate Change Strategy
• Key initiatives within the Climate Change Strategy
• Renewable energy development: solar PVs and geothermal
• Climate capability building training sessions
13.1, 13.2, 13.3
• Participation in climate-related events and conferences
• Climate change risk assessments of our assets to mitigate climate risks
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Action
Plans
The following action plans have been developed to meet our objectives and continue realising our climate aspirations. We regularly
measure, monitor and report on our progress and performance against these actions:
Material Topics Short-Term Actions Medium/Long-Term Actions Status
Climate Risk and Resilience Assess and establish low, medium, Assess and establish low, medium, Quantitively assessed site specific
and high-priority physical hazard for and high-priority physical hazard for physical risks for Block A and JOB
MedcoEnergi’s business operations MedcoEnergi’s business operations Tomori.
and assets through quantitative and assets through quantitative
physical risk assessments. physical risk assessments.
Assess asset-level risks for all assets Continuously improve MedcoEnergi’s Qualitatively assessed 20
across MedcoEnergi’s portfolio to physical risks assessments across its MedcoEnergi’s assets and
evaluate the physical impacts of the assets and business operations. quantitatively assessed Block A and
identified hazards. JOB Tomori.
Carry out a quantitative financial Consider using scenario analyses Quantitatively assessed Block A and
impact analysis of the impacts of the when quantifying the financial JOB Tomori using scenario analyses.
hazards on MedcoEnergi’s assets and impacts of climate related physical
overall business operations. risks.
Develop plans to mitigate and adapt N/A Assessed the mitigation and
to climate hazards; ensure they are adaptation plans in accordance
linked to risk management plans. with the results of the qualitative
Carry out adaptation and resiliency assessments for 20 MedcoEnergi’s
measures. assets and quantitative assessments
for Block A and JOB Tomori.
Climate Mitigation Plan and execute compliance with Scale-up MedcoEnergi’s efforts to We have identified the mitigation
Indonesia’s government regulations comply with zero routine flaring by measures and are proceeding to
on zero routine flaring by 2030. 2030. implement them.
Explore and implement flare gas Develop plans to use or conserve Completed implementing
use/optimisation opportunities in all the field’s associated gas without flaring optimisations during well
methane management in existing routine flaring for new fields. programmes,
fields and future development.
Optimised amine flash gas for Low
Pressure (LP) fuel gas,
Replaced passing valve in Corridor
assets.
Evaluate The Oil & Gas Methane Establish OGMP 2.0 commitments. Internal assesments are ongoing.
Partnership 2.0 (OGMP 2.0)
commitments.
Strengthen sustained, consistent Continuously evaluate best Included GHG emission reduction
organic processes to promote, available GHG emissions abatement opportunities in business processes
evaluate, approve, and execute GHG technologies in the market to identify to evaluate, implement, monitor and
reductions. potential mitigation measures at the report on project proposals,
operation-level.
Evaluated and executed
opportunities in assets by
collaborating with the Climate
Change Working Group and oversight
by BoD.
Seek and act on opportunities to Continuously improve energy Implemented 41 initiatives in 2023
reduce GHG emissions and energy efficiencies at operation-level by with potential reductions of up to
intensity. adopting best technology and 148,000 tCO2e/year peak and a one-
practices. time reduction of 95,000 tCO2e.
The total implementation cost was
USD 1.8 million.
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Material Topics Short-Term Actions Medium/Long-Term Actions Status
Establish industry and regulatory Conduct studies and collaborate with Continuously evaluated new
collaboration and employ best partners to promote digitalisation technologies to reduce emissions.
technologies to ensure higher and renewable energy technology.
operations performance.
Promote partnerships and Establish partnerships with Held Vendor Day at oil & gas
knowledge sharing with our experienced organisations (e.g. domestic and Bualuang assets,
value chain stakeholders to universities, research institutes) to
accelerate MedcoEnergi’s Net Zero promote technological innovations. Held a Contractor Forum for power
commitments and low-carbon assets with topics that included
energy transition. Create partnership programmes sustainability and climate change.
to promote data transparency and
implement the best practices along
the value chain.
Define Scope 3 GHG emissions for Disclose Scope 3 GHG emissions Currently working on enhancing our
MedcoEnergi. commitments. internal systems and processes to
identify, manage and disclose our
Scope 3 GHG emissions to assure
and disclose our significant Scope
3 GHG emissions and set reduction
targets by 2025.
Evaluate Scope 3 GHG emissions Explore opportunities to develop a Engaged in discussions with potential
of key suppliers and consider digital platform and calculation tools suppliers.
integrating GHG performance into for climate data management to be
contract screening criteria. shared with MedcoEnergi’s partners.
Climate Adaptation Establish a process to study and Continuously improve assessments The process of assessing climate
identify key climate vulnerabilities of MedcoEnergi’s physical and change risks has been included in
for material risks. biodiversity risks. internal guidelines.
Establish assessment approaches Consider using scenario analyses The process to assess climate change
to evaluate risks and impacts on when assessing physical and related biodiversity risks has been
surrounding biodiversity. biodiversity risks. included in internal guidelines.
Screen future investments to N/A Climate change related risk
evaluate their financial and assessments for future investments
operational viability. have been included in internal
guidelines.
Develop and establish approaches Continue to integrate climate risk Climate change related risk
to assess climate risks based on assessments into future engineering assessments for future investments
the results of climate vulnerability designs and consider material risks to have been included in internal
studies and ensure coverage of key future projects. guidelines.
material risks.
Integrate climate risk assessments Continuously improve MedcoEnergi’s Climate change related risk
into the designs of future engineering approaches to climate designs and assessments for future engineering
projects. climate-proof future assets. projects have been included in
internal guidelines.
Conduct climate vulnerability studies Consider integrating scenario Climate change related risk
on material risks and consider them analyses and plans in MedcoEnergi’s assessments for future engineering
in future engineering projects. climate risk assessments to further projects are being considered.
climate-proof assets.
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for Communities
138 Approach, Commitment, and Goals
140 Supporting Community Livelihoods
160 Measuring and Evaluating Our Impact
164 Emergency and Disaster Relief Initiatives
164 Alignment of Sustainability Initiatives with UN SDGs
166 Action Plan
Sarulla Weaving Programme for Local Communities in North Tapanuli, Indonesia
This picture is the 3rd winner under the ‘Social & Culture’ category
of the 2023 MedcoEnergi Photography Competition.
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We aim to empower local communities around our operational areas to enhance their resilience and self-sufficiency. This commitment
is reflected in our Community Development Policy, which is aligned with both the United Nations Sustainable Development Goals
(UN SDGs) and national goals in the operating countries1. Our community development initiatives are designed to nurture local
potential and improve welfare, fostering self-reliant communities. We carefully evaluate and prioritise community needs, integrating
local wisdom into our programmes.
Medco Oil & Gas’ Community Development Policy is available on our website here. This policy emphasises the following three key
focus areas:
Key Focus Areas of the MedcoEnergi Community Development Policy
Natural
Stakeholder
Resources and Local Empowerment
Engagement
Wisdom
Community development Community empowerment Stakeholders engagements
programmes are developed process is aimed to improve are carried out to obtain
based on natural resources the ability of communities to social license to operate in
and local wisdom within become self-reliant according implementing community
local communities to foster to self-and environmental- development programmes
sustainable growth. potentials. (and the Company’s business
activities and operations).
Approach,
Commitments, and Goals
MedcoEnergi is committed to nurturing a positive impact on the Based on our assessments, there were no community
communities in our operational areas. We incorporate thorough resettlements in 2023 and none of our projects or operations
Environmental, Social, and Health Impact Assessments (ESHIA) interfered with or bordered on indigenous communities. We
into all our projects and develop comprehensive management remain committed to adhering to international best practices
plans. These plans are aimed to mitigate adverse effects and and employing Free, Prior, and Informed Consent (FPIC)2
amplify positive outcomes for these communities, including principles whenever we expand or develop assets that might
vulnerable groups1. bring us near indigenous communities.
In addition to the ESHIA, we assess the environmental and social We aim to create opportunities for communities by sourcing
risks of our projects through sustainability assessments. Our local talent and encouraging our contractors to do the same.
Sustainability Assessment process is detailed on page 84-86. This commitment reflects our dedication to building local
The results of these assessments are used to plan projects and capability through initiatives such as training individuals to
mitigate obstacles. become operators in our operations. Consequently, local recruits
11 22
comprised 60% of employees3 in MRPR and 47% in Block A in
2023.
1 The national goals in operating countries mean any national-level objective or priorities set by the Central Government. For example, Indonesia has National Medium Term Development
Plans (RPJMN); our national SDG goals are directed by The Ministry of National Development Planning (Bappenas), Thailand has 4.0 Strategy to transform the Thai economy into a
value-based economy, and Oman has the 10th Five Year Development Plan for its 2040 vision.
2 FPIC (Free, Prior and Informed Consent) is a principle that recognises the rights of indigenous peoples to give or withhold their consent on decisions that may affect their lands, territories,
resources, and cultures, based on accurate and relevant information, and without coercion or manipulation.
3 The employees include permanent employees, direct contractors, and third-party contractors as of 31 December 2023.
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Meaningful Engagements with Our Stakeholders
In the framework of the Social Management System (SMS), we conduct stakeholder and social mapping activities to identify local
stakeholders or communities of interest. These procedures are essential to ensure that we effectively address community needs and
carry out our programmes in a culturally sensitive manner.
Stakeholder Mapping Social Mapping
This process involves registering stakeholders related to This process involves identifying the social structures,
environmental and social issues and considering their relationships and dynamics of a community, including
significance based on impact, stakeholder influence and analysing the social context, demographics, stakeholder
interest. relationships, culture and security.
Based on this mapping, a Stakeholder Engagement Plan
(SEP) is formulated to provide a platform for effective
engagement based on issues and risks. The SEP is utilised
in evaluating the implementation of our community
development programmes.
Our proactive and collaborative approach seeks to cultivate connections, trust, and confidence with local communities and other
stakeholders. We believe that proactive SEP-based engagements can successfully mitigate potential risks and conflicts with
community groups. Below, we outline the key roles involved in overseeing our community relations:
Community
Field Relations
Enhancement Asset General Manager
Officer
Team
Plans and implements Provides direction to the Reviews and approves the
community development community development community development
programmes, including social programme’s work plan and programmes and reports at the
mapping, planning, execution budget at the corporate level. asset level.
and reporting.
We regularly participate in multi-stakeholder platforms, which include:
• village head forums (Forum Kepala Desa),
• sub-district leadership coordination forums (Forum Koordinasi Pimpinan Kecamatan/FORKOPIMCAM),
• district leadership coordination forums (Forum Komunikasi Pimpinan Daerah/FORKOPIMDA),
• local youth organisations (Karang Taruna),
• non-governmental organisations (NGOs),
• various other community-based organisations.
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Human Rights and Security
Our Security Policy outlines our dedication to adhering to laws and regulations in our operating countries while upholding human
rights. This policy is aligned with the UN’s Guiding Principles on Business and Human Rights and the Voluntary Principles on Security
and Human Rights (VPSHR). It lays down our strategies to identify and report security threats as well as our response procedures.
It serves as an initial framework for MedcoEnergi Oil & Gas to address human rights concerns identified in our Human Rights
Assessments (HRA); see page 43-45.
We also implement the Medco Security Management System (MSMS) across all oil & gas assets, leading to consistent enhancements
in our security measures. This includes the organisation of various training sessions and capacity-building initiatives, such as the
VPSHR, Gada Pratama, Gada Madya, and Gada Utama programmes. In 2023, 99.93% of Medco Oil & Gas and 100% of Medco
Power security personnel participated in human rights training. The MSMS also enable us to map critical asset risks and follow them
up through monthly monitoring and evaluating the security management plans.
Supporting Community Livelihoods
Our community development initiatives are designed to foster self-sufficient local communities. We maintain multi-year programmes
tailored to meet the unique challenges and needs of the communities in our operational areas. Each of our assets routinely makes
donations during the religious holy days to support underprivileged families and sponsors activities to commemorate Indonesia’s
Independence Day.
Community Development
Programmes
The table below shows community development programmes carried out in 2023. The complete list of our community development
programmes is available in the GRI Performance Data, GRI 203 on page 23-27 and GRI 413 on page 27-34.
Assets Project Descriptions Programme types
Block A Developed several cultivation and aquaculture programmes that included horticulture,
Sustainable livelihoods (economy)
Sumatra, mushroom, and pond fishery programme (e.g. catfish) activities.
Indonesia
Sustainable livelihoods (education,
Established a women and children empowerment centre (Rumah Pemberdayaan Ibu & Anak).
health & economy)
South Natuna Launched the Food Security Programme in collaboration with the Bina Tani Sejahtera Sustainable livelihoods (education,
Sea Block B Foundation. health & economy)
Riau Islands,
Indonesia Supported the operations of Anambas Fish Seed Centre to support and grow the local
Sustainable livelihoods (economy)
grouper cultivation economy.
Developed a local village into a tourism destination through capacity building for residents
Sustainable livelihoods (economy)
11 22
that enhanced the tourism infrastructure.
1 The Gada Pratama training programme is designed for new security guards or candidates, while Gada Madya is follow-up training for those who have completed Gada Pratama. On the
other hand, Gada Utama is exclusively intended for security managers at the chief security officer or managerial level.
2 GRI Performance Data provides breakdown for Indirect Economic Impact and Local Communities into Infrastructure, Sustainable Livelihoods & Community Development and
Others (donation). MedcoEnergi considers that it is important to identify the specific activities for community empowerment through education, health, economy and environmental
stewardship initiatives.
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Assets Project Descriptions Programme types
Corridor Empowered local women through our Local Business Development Programme. Sustainable livelihoods (economy)
South Sumatra,
Indonesia Developed the local rubber commodity market through trainings and direct assistance to the
Sustainable livelihoods (economy)
market players.
Provided scholarships for 337 undergraduate students. Sustainable livelihoods (education)
South Sumatra
Block Sustainable livelihoods (health &
Initiated a food security programme to enable communities to cultivate a variety of crops.
South Sumatra, economy)
Indonesia
Lematang Educated Lematang's high school students, pregnant and breastfeeding mothers on stunting Sustainable livelihoods (health &
South Sumatra, prevention and management. education)
Indonesia
Improved community facilities and provided clean water infrastructure. Infrastructure development
Rimau Supported traditional culture-based fishery programmes and activities. Sustainable livelihoods (economy)
South Sumatra,
Indonesia Contributed to eliminating stunting among residents by distributing food aid and
Sustainable livelihoods (health)
collaborating with local organisations.
Assisted with eliminating AIDS, tuberculosis, and malaria through education programmes in
Sustainable livelihoods (health)
collaboration with local organisations.
East Java Asset Supported City Square Reading Park infrastructure programme Infrastructure development
East Java,
Indonesia Developed local micro, small, and medium enterprises by providing training on banana and
Sustainable livelihoods (economy)
cassava chip productions.
Bangkanai Sustainable livelihoods (education &
Provided capacity building to the human resources of village-owned enterprises (BUMDes).
Central economy)
Kalimantan,
Indonesia Conducted reforestation activities in a 6.5 ha forest area in Karendan Village, North Barito
Sustainable livelihoods (environment)
District, Central Kalimantan.
Tarakan
Kalimantan, Implemented Climate Village Programme in Mamburungan Village Sustainable livelihoods (environment)
Indonesia
Bualuang Promoted students’ rights and eliminating bullying. Organised a study trip for local students. Sustainable livelihoods (education)
Thailand
Conducted mangrove reforestation to enhance coastal protection and contribute to
Sustainable livelihoods (environment)
conserving the local blue crab population.
Oman
Supported the greening of the environment in the community. Sustainable livelihoods (environment)
Oman
MEB-DEB & ELB
Batam, Provided access to electricity for underprivileged households. Infrastructure development
Indonesia
MRPR
Provided access to clean water to a junior high school. Infrastructure development
Riau, Indonesia
MGS
North Sumatra, Provided books to an elementary school to enhance students’ interest in reading. Sustainable livelihoods (education)
Indonesia
Community Development Support
The following table shows the financial support provided by MedcoEnergi over the last three years.
Programme (US$) 2021 2022 2023
Sustainable livelihood & community
524,287 1,132,176 1,235,705
development
Infrastructure development 1,031,951 905,129 406,286
Others 425,754 267,103 170,874
Total 1,981,992 2,304,408 1,812,866
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Community Development
Programmes Highlights
MedcoEnergi is dedicated to fostering positive impacts beyond its core business activity. This commitment is reflected in our robust
community development programmes, which fall under five key pillars: education, health, economy, environment and infrastructure.
We believe that supporting education, health, economy and environment of local communities can foster sustainable livelihoods.
Through collaboration with local stakeholders, we empower individuals, strengthen communities and help create a sustainable future
for all.
Food Security Programme in Block B
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Education
Scholarships for University Students in Musi Banyuasin
Since 2002, the Corridor asset has provided scholarships for These scholarships help them complete their bachelor’s degrees
university students from 28 villages in Musi Banyuasin. The and obtain good employment opportunities.
cumulative number of beneficiaries has reached 7,828 students.
Scholarship recipients from Musi Banyuasin gathered for the award ceremony in Palembang.
Reading Centre for Children Literacy in a Remote Village
Medco Geothermal Sarulla (MGS) developed a reading
centre named Sopo Malo Medco (Rumah Pintar Medco) in an
elementary school located in the remote village of Lumban
Gaol in North Sumatra. This reading centre aims to increase
literacy among children. To do this, it has provided books and
educational activities for children.
Moreover, MGS employees regularly visit the reading centre to
teach the students English, writing, and geography. These fun Elementary students attend an educational activity
learning activities have been enthusiastically welcomed by the at Rumah Pintar Medco
students.
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Health
Education, Health Assistance, and Infrastructure Initiatives Against Stunting in South Sumatra
Stunting is a condition in which children experience impaired This includes early childhood education, improved healthcare
growth and development due to malnutrition, with impacts services with health screenings, the provision of clean water and
that can last into adulthood. In 2022, stunting prevalence in nutritious meals, and advice on heathy eating.
Indonesia was high, at 21.6%. Consequently, reducing stunting
has become a national priority. Indonesia aims to lower the rate We also support awareness campaigns and counseling for
to 14% by 2024 to meet the World Health Organisation (WHO) pregnant women and health workers, emphasizing the
standards of stunting rates below 20% . Our programs to prevent
1
importance of proper nutrition to prevent stunting. This
and handle stunting targets communities in South Sumatra and comprehensive approach is designed to support communities,
Aceh. Through partnerships with local health authorities, we improve public awareness around stunting and health, and
implement a multipronged approach. support a brighter future for children.
Various activities including education, checkups, and awareness raising aimed to eliminate
stunting in Muara Enim (left) and Musi Banyuasin (right), South Sumatra.
11
1 Based on the National Medium Term Development Plan (RPJMN) 2020-2024, https://stunting.go.id/rakornas-2023-pastikan-prevalensi-stunting-turun-menjadi-14-pada-tahun-2024/
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Economy
Assistance and Carbon Footprint Studies for Rubber Cultivation in South Sumatra
Our Corridor asset launched a development programme to As a result, this programme has led to better-managed
cultivate rubber. It aims to enhance the sustainability and plantations with increased productivity and income. Our
productivity of rubber smallholders across seven villages in emissions study1 highlighted the crucial role of rubber cultivation
South Sumatra. This comprehensive programme not only in contributing to carbon reduction efforts. The rubber plants
supports agricultural development but also focuses on reducing absorb 282.12 tonnes of CO2 per hectare per cycle from the
emissions through a detailed study of the carbon footprint atmosphere. The absorption rate surpasses the emissions
associated with rubber cultivation. Key interventions included generated by farmers’ transportation and the use of fertilisers or
training in rubber cultivation, providing production facilities, and other chemicals, totalling 45.56 tonnes of CO2 per hectare per
offering guidance on tapping, processing, and marketing. We cycle. Therefore, it resulted in a net CO2 absorption of 236.56
also provided assistance to calculate and mitigate CO2 emissions tonnes per hectare per cycle.
from the cultivation process.
Various activities being conducted as part of the community rubber programme
including assessing carbon footprints (left), monitoring, distributing fertilisers, and
training to process rubber into bands (right).
11
1 The 2023 Assessment Report of Corridor Asset Fostered Farmers’ Rubber Plantation by Indonesian Rubber Research Institute (Pusat Penelitian Karet Indonesia).
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Empowering Women Entrepreneurs and Communities in South Sumatra, East Java, and Kalimantan
We recognise the importance of fostering local businesses • Dua Saudara, East Java: We supported Dua Saudara, a similar
and entrepreneurs. This programme provides vital support project in Gedugan Village, Sumenep Regency. Dua Saudara
and guidance to women-owned businesses and village- is a small business specializing in cassava- and banana-based
owned enterprises (BUMDes) in South Sumatra, East Java and products. Through the programme we provided the tools and
Kalimantan. From enhancing product development to exploring resources necessary for Dua Saudara to achieve sustainable
online marketplaces and platforms, the programme empowers production and operate independently, contributing to the
local women-led businesses to grow and contribute to the local economy.
economic well-being of their communities.
• BUMDes, Kalimantan: The programme extended its reach
• Keripik Anggun, South Sumatra: South Sumatra’s cassava- to village-owned enterprises (BUMDes) in Bangkanai,
based product enterprise Keripik Anggun highlights the Kalimantan. We supported training and assistance to help
programme’s achievements, with our support enabling them BUMDes members enhance their management skills and
to expand their product line, meet surging demand, and improve their business productivity.
consequently increase their income. Today, Keripik Anggun’s
daily revenue can reach IDR 3.2 million, also boosting the
earnings of local cassava farmers. We are also assisting
Keripik Anggun with strategic planning and exploring online
platforms to expand its reach nationally.
Keripik Anggun members promoting their cassava-based products (left). Members of Dua Saudara
during training and showcasing their cassava and banana-based products (right).
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Realising Food Security by Promoting Local Agricultural Potential in South Sumatra
Our South Sumatra Block asset’s “Food Security Based on This initiative, with a IDR 20 million investment, partners with
Local Potential” programme in Pali and Lahat Regencies aims local governments to promote self-sufficiency in Sungai Ibul,
to improve food security in the region, in alignment with the Sungai Langan, and Sengkuang Villages. It has led to the creation
Government’s plan. This programme focuses on crops, fisheries, of productive village gardens and transformed a goat farm in the
and goat farming by leveraging community collaboration and Sengkuang Village into a tourism and learning hub, enhancing
local resources. yields and introducing sustainable agricultural practices.
Various produce resulted from the food security programme in Langan and
Sengkuang Villages in South Sumatra, Indonesia.
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Infrastructure
Provision of Clean Water Infrastructure in East Java
The Sampang Regency is one region most impacted by drought Following the programme’s completion in 2023, we transferred
in Indonesia for many years1. The situation worsened in 2023 the ownership and operation of the well and pumps to the village
with the prolonged dry seasons due to El Niño. Our East Java community. The consequent revenues generated from the well’s
asset responded to this by addressing the critical need for clean operation is retained by the village. The programme created a
water in Sejati Village, Sampang. In 2022 we established vital sustainable model that allows for the ongoing maintenance of
water infrastructure by providing a well and two sets of water the well and pumps to ensure a long-term self-sufficiency in
pumps. As a result, this initiative has supplied 50 families of Sejati water supplies.
Village’s residents with clean water for irrigation, agriculture, and
domestic purposes.
Flow of clean water in Sejati Village resulting from
the project that provides clean water.
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1 Sampang Regency is classified as Medium to High Drought Risk by WRI Aqueduct (Water Risk Atlas), 2024.
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Providing Access to Electricity in Batam by Medco Power
Forty underprivileged households now enjoy electricity access This effort supports the Kepri Terang programme2 by the Riau
of up to 900 VA through this initiative by Medco Power Islands Provincial Government, which aims to bring electricity to
subsidiarie1. These households were previously not served by the underserved areas. This initiative was honoured in 2023 with an
State Electricity Company (PLN). award presented by the Riau Islands Governor.
Governor of Riau Islands Province (left) handed the award to
Medco Power, Riau Islands, Indonesia
1 Mitra Energi Batam (MEB), PT Dalle Energy Batam (DEB), and PT Energi Listrik Batam (ELB)
2 The Kepri Terang programme involves the procurement and connection of new electrical services, as well as extending electricity access hours. This is achieved by utilising the Corporate
Social Responsibility (CSR) programme in the Riau Islands Province.
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Environment
The Kampung Iklim (Climate Village) Programme in Tarakan
The Tarakan Climate Village Programme, also known as but also optimise land use. The training also aims to reduce
Kampung Iklim (Proklim), empowers residents of Mamburungan farmers’ reliance on chemical inputs; we have provided a grinding
Village, Tarakan to adapt to climate change and improve their machine capable of producing organic fertilizers.
livelihoods. This initiative aligns with a nationwide programme
overseen by the Ministry of Environment and Forestry (MoEF). Beyond these core areas, the Company has provided
Mamburungan with a spring water 9,000 litre storage tank and
We provide farmers with training and assistance in integrated the infrastructure to process animal manure into compost and
organic farming, in this case combining aquaculture with the organic fertilizer.
production of rice. This does not only diversify food resources
The Climate Village Programme encompasses biogas production (left), water source protection (middle),
and composting (right) in Mamburungan Village, Tarakan, Indonesia.
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Mangrove Conservation and Rehabilitation in Thailand
In 2023, our Bualuang asset supported mangrove reforestation This project demonstrates our commitment to environmental
along the shores of Ban Peek Ta Pet Village, together with 120 stewardship and the protection of coastal communities.
participants. This project aims to combat coastal erosion and
enhance ecosystem resilience. The mangrove conservation
activities will also increase the local blue crab population, which
is an important income source for the villagers who actively
participated in this project.
Our mangrove conservation and rehabilitation at the shoreline of Ban Peek Ta Pet Village in Thailand
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Highlights from Block A
Our Block A assets implemented a record number of community development programmes in 2023, with a focus on ensuring
sustainable livelihoods and advancing infrastructure development for the surrounding communities. We partnered with Department
of Manpower and Population Mobility Aceh and Aceh Oil Institute to enhance local community capabilities through a 4-month
internship programme hosted in our facilities. Additionally, we collaborated with Aceh Oil & Gas Management Agency (Badan
Pengelola Migas Aceh/BPMA) to provide practical training for 23 students from vocational schools in Aceh at our facilities. These
initiatives were established to contribute to development of the local community.
Some of the programmes are highlighted below:
Supported Local Catfish Cultivation (Pond Fishery Programme) businesses by building
capacities, providing fish seeds, and cultivating ponds.
Supported the Horticulture Cultivation Programme in
Blang Nisam Village by building capacities, creating a
nursery inventory, and constant monitoring.
Provided support for the Mushroom Cultivation
Programme in Julok Tunong Village through training
and regular monitoring. Support for the programme
resulted in additional income for the local community
and increased community awareness of mushroom
cultivation.
The hand over of Liveable Houses Assistance to five Provided Free Integrated Health services for mothers and
families from five villages in Alue Le Mirah Village, children in the Alue Ie Mirah Village that included assessing
marking the completion of 31 liveable houses in East and treating health issues and distributing additional
Aceh nutritional food to mothers, toddlers, and the elderly.
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Community Development at JOB Tomori
At our non-operated asset, the Joint Operating Body (JOB) Tomori focused on implementing community empowerment programmes
to foster sustainable local development. Some of these programmes have been conducted over multiple years to foster local
champions.
Several 2023 programme highlights are listed below.
Education Health
• Delivered educational programmes in the • Initiated the MAMA MITING (Mari Bersama
Siboli Empowerment House. Menangani Stunting) programme to prevent
• Provided after-school educational stunting and improve the quality of life
programmes for primary school students in by training health cadres and providing
the Loinang indigenous community. supplemental food.
Economy Infrastructure
• Empowered coastal communities through • Built a nursery school and renovated a
ecotourism and creative economic primary school and its facilities.
initiatives. • Built a micro-hydro power plant for the
• Assisted with agroecology practices for Loinang indigenous community that aims
organic farming to support independent to start electricity generation from 2024.
farmers.
• Assisted women entrepreneurs to obtain
permits and market herbal products.
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Environment Disaster Responses
• Promoted climate resilience in communities • Distributed relief for flood and fire disasters.
through the Climate Village programme. • Built resilience in Desa Tangguh Bencana
• Enabled the conservation of sea turtles to (disaster response village) through
be reclassified from Vulnerable to Critically emergency preparedness training.
Endangered status by the IUCN1.
• Cultivated and built shelters for the Sulawesi
masked owl (Tyto rosenbergii), which helps
farmers reduce mice in paddy fields.
• Planted over 2,000 babasal coconut
trees, which are superior national varieties
endemic to Banggai. Over 2,000 fruit trees
were also planted, the results of which will
be shared among the communities.
Promoting Sea Turtle Conservation and Ecotourism on Sinorang Beach, Banggai
Sinorang Beach is an important breeding ground for four sea turtle conservation programme by the Ministry of Marine
out of the seven sea turtle species in the world. They are the Affairs and Fisheries. JOB Tomori has rescued and rehabilitated
Hawksbill Sea Turtle, Green Sea Turtle, Olive Ridley Sea Turtle, 55 sea turtles with an investment of IDR 500 million.
and Loggerhead Sea Turtle. JOB Tomori’s sea turtle conservation
programme employs a community-based approach that This programme not only conserves wildlife but also provides
partners with local communities through familiarisations, revenue from ecotourism ticket sales to the local communities.
education, and environmental campaigns. This initiative also highlights community engagement by
involving around 80 households and 12 members in its
This programme has successfully increased the biodiversity management.
index from 3.20 H’ to 3.45 H’2 within a year contributing to the
The ecotourism site at Sinorang Beach (right) and one of the turtles rescued
and rehabilitated by the programme (left).
11
1 The International Union for Conservation of Nature (IUCN) Red List of Threatened Species™ is the world’s most comprehensive information source on the global extinction risk status of
species.
2 The Shannon diversity index (H) is commonly used to measure species diversity in a community. It accounts for both abundance and evenness of the species present.
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Implementing Sustainable Community-Based Clean Water Management
The Loinang Sustainable Community-Based Clean Water education on water management, hygiene practices, fisheries,
Management (ASIH Loinang) focuses on enhancing water access corn, and livestock farming.
for the Loinang indigenous community, which is a vulnerable
group living remotely in a mountainous area and facing many The ASIH Loinang programmes also include reforestation
limitations. They became our priority even though they are not efforts in upstream areas that aim to sustain water quality and
part of the community impacted by JOB Tomori operations. prevent natural disasters. This holistic approach not only secures
This programme implemented the innovative Mata Nuue Eco reliable water supplies but also bolsters community health and
Water Elevator method to improve water access. It also provides environmental sustainability.
Improving access to clean water for the Loinang indigenous community.
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Promotion of Sustainability Initiatives by Our People
Implementing Sustainable Farming and Producing Organic Fertilisers
Contributions to communities can also be accomplished by
individuals in our workforce. One example came from Januari
Samosir, a QA/QC painting/coating inspector serving one of our
contractors in South Sumatra. Off duty, Samosir became both
a farmer and organic fertiliser producer, engaging in organic
farming on his own plot of land near his residence. He engages
with the community to help them divert their organic waste
from landfills and transform it into fertilisers.
Samosir’s experience as a QA-QC professional made him realise
that his reliance on synthetic fertilisers hindered his agricultural
success. By transitioning to organic methods, he began producing
his own fertilisers from local organic waste. He also does not use
chemical fertilisers or herbicides, nor does he resort to burning
to clear his farmland.
As a result, his commitment to sustainable farming practices has
preserved soil health and biodiversity. It also increased his farm’s
yields and promoted environmental harmony. Samosir aims to
expand his organic farming to contribute to local food security
and environmental sustainability.
Sustainable farming performed by
one of the Samosir’s team member.
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Expanding Our Impact with The Medco Foundation
The Medco Foundation, established in 2003 by Mr. Arifin As of 2023, the Medco Foundation extended its reach to 73
Panigoro, the late founder of MedcoEnergi, was established from districts and cities across 23 provinces in Indonesia. These
a desire to improve the lives of all Indonesians. Its alignment programmes covered nine districts across seven provinces in
with the United Nations’ Sustainable Development Goals 2023 alone.
(SDGs) enables it to foster significant and enduring change. In
2023, MedcoEnergi has been collaborating more closely with It demonstrates that its influence extends well beyond the
Medco Foundation. Among the initiatives are the Medco & I - communities located near our assets. The foundation allocated
Two Trees and Mauk-Banten province housing improvement a total of IDR 12.3 billion, including donations and sponsorships,
programme for communities. These initiatives allowed the direct to various programmes across four key categories: public
involvement of employees and contractors in the programmes. health, education and literature, social empowerment, and the
environment. These initiatives benefitted more than 39,000
individuals.
Some of the foundation’s key programmes in 2023 are listed below:
Blood donor event at the Energy Building, Indonesia. Educational activities at RPIA.
Public Health Education and Literature
• Held a blood donation event at the • Held the Arifin Panigoro (AP) Dialog, a
Energy Building in Jakarta and gathered discussion programme with Key Opinion
blood from 81 donors. Leaders (KOL). This programme aimed to
• Held COVID-19 vaccination events in enhance awareness of national strategic
Jakarta by providing second doses of issues through dialogue and advocacy.
booster vaccines to 2,891 individuals. Tuberculosis and the carbon economy
• In collaboration with Habitat for were some of the topics that were
Humanity Indonesia1, provided discussed.
community members with access to ten • Provided organic farming training
liveable houses, free medical services to vulnerable youths in West Java,
to 100 villagers, and staple food to 400 Indonesia, reaching 981 youths.
families in Mauk, Banten, Indonesia. • Supported the operations of two
• Supported tuberculosis elimination Women and Children Empowerment
programmes across Indonesia, Centres (Rumah Pemberdayaan Ibu
contributing to over 4,700 TB case dan Anak/ RPIA) in Julok and Indra
findings. Makmu, East Aceh, Indonesia. The RPIA
provided various activities related to
literacy, education, and health along with
financial and computer training to a total
of 1,172 people.
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1 Habitat for Humanity Indonesia is part of the large family Habitat for Humanity International, a globally recognised non-profit organization that helps families build and improve their
homes.
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A sewing business run by local women at Cilincing,
Indonesia. Mangrove planting as part of Medco & I - Two Trees initiative.
Social Empowerment Environment
• Supported a food security capacity • Planted 14,228 perennial and mangrove
building programme at Pondok trees in Muara Gembong and Taman
Pesantren Al-Ittifaq in Ciwidey, West Nasional Gunung Gede Pangrango, West
Java, Indonesia. It trained 80 participants Java, Indonesia, as part of the Medco &
in agricultural entrepreneurship. I - Two Trees Programme. This aimed
• Held a community empowerment to improve carbon sequestration and
programme in Cilincing, North Jakarta, prevent coastal erosion in the region.
Indonesia, in collaboration with the
Indonesia Ministry of Social Affairs. We
conducted socio-economic assessments
and provided sewing machines to
groups of local women to produce hotel
sandals.
Handmade Crafts by Cahaya Hati Foundation members.
Donations and Sponsorships
Science and Education
• Supported the Bosscha Observatory’s Solar eclipse expedition, astronomy exhibition, and education on the
Kisar Islands, Maluku, Indonesia.
• Donated a women’s centre building and other facilities to the Cahaya Hati Foundation.
Health
• Supported the activities of the National Population and Family Planning Board’s (BKKBN) Back to the Dinner
Table movement to reduce stunting rates and strengthen relationships between parents and children.
Arts and Culture
• Supported arts activities that contributed to developing and preserving cultural heritage.
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Tuberculosis Elimination Programmes Across Indonesia
Tuberculosis (TB) is a very severe problem in Indonesia. To help the country eliminate TB, the Medco Foundation has
In WHO’s Global Tuberculosis Report 2022, Indonesia ranked 2nd given support to two national TB elimination programmes:
in TB cases, with over 1,060,000 cases according to the Indonesia the Stop TB Partnership Indonesia (STPI) and the Indonesia
Ministry of Health1. The far-reaching nature of the disease, along Tuberculosis Eradication Association (PPTI). These two
with its significant potential to decrease productivity, makes its programmes tackle TB through screening and care, capacity
elimination a priority for the Indonesian nation. building, and awareness raising. Through these programmes,
the foundation contributed to over 4,700 TB case findings
across Indonesia. Medco Foundation’s support of these two
programmes highlights our contributions to the best interests of
all Indonesians.
Health Talk in annual commemoration of International TB Day 2023 and TB screening for Medco Group employees.
Self-Development Training Through Organic Farming for Vulnerable Youth
We believe that socio-economic empowerment that targets These programmes prepare vulnerable youths to become
youth is significant to break poverty cycles among underprivileged confident, resilient, and skilled farmer entrepreneurs. Youths
families. For this reason, we rolled out self-development training from all across Indonesia are given scholarships and opportunities
through organic farming for vulnerable youth in two batches in to learn organic farming at The Learning Farm (TLF) in Cianjur,
2023. These programmes benefited a total of 981 individuals up West Java, Indonesia, with each batch learning for five months.
to 2023, with 86 participants joining the training in 2023 alone. In addition to farming, participants are taught other skills, such as
Some of these participants came from the operational areas of developing business proposals, design, and self-leadership. By
Medco Oil & Gas, such as Aceh and Bangkanai in Indonesia. the end of the training programme, these youths are expected
to become skilled entrepreneurs in agriculture, support food
security, and improve livelihoods in their hometowns.
Youths at The Learning Farm (TLF) in Cianjur, Indonesia.
1 Global Tuberculosis Report 2022, World Health Organisation, 2022
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Measuring and
Evaluating Our Impact
Measuring the impact of our community development programmes, both qualitatively and quantitatively, allows us to assess their
effectiveness and provides valuable recommendations to improve their quality in the future.
Using The Social Returns on Investment (SROI) Approach
We implement a Social Return on Investment (SROI) framework The SROI framework assigns a monetary value to project
to quantify the social, environmental, and economic value of outcomes and has been widely used as a quantitative
our community development programmes. The results of this approach to evaluate programmes. As such, it allows for a more
framework will then serve as inputs for our decisions to design, comprehensive understanding of our programme’s outcomes
develop and scale future programmes. beyond financial gains, such as social and environmental
impacts.
There are two types of SROI implementations:
Evaluative Forecast
Retrospective evaluations of the actual results. Predictions of the prospective value of the planned
programmes.
Scope Mapping Outcome-related
Outcome Impact SROI Analysis and
and Stakeholder Events Colletion and
Mapping Calculation Calculation Reporting
Identifiaction Value Delivery
Measuring Our Programmes’ Impacts in The Anambas Islands
Regency
Anambas Centre for Fish Seeds
In 2023, South Natuna Sea Block B’s Anambas Centre for Fish The BBIA programme’s SROI was calculated at 1.58. This
Seeds (BBIA) programme improved the local economy through
1
translates to a programme present value of approximately IDR
the sustainable aquaculture of groupers. Achievements included 2,095.9 million against an investment of about IDR 1,330.5
creating a market for fish seeds, enhancing local capacities and million from the implementation of the programme in 2021-
extending programme benefits to 13 villages. 2023. This initiative underscores our dedication to UN SDG
8 and 14, by supporting local fishermen livelihoods and also
conserving marine resources.
Fish seed pools at the BBIA programme (left) and a grouper at the BBIA (right).
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1 BBIA stands for Benih Bibit Ikan Anambas.
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Food Security Programme
The Food Security Programme has empowered the local
agricultural sector through capacity building to 5 villages. This
programme aims to reduce reliance on food imports, stabilise
prices, and curb inflation. The programme’s SROI was calculated
at 1.79 from the implementation of the programme in 2022-
2023, indicating a present value of IDR 1,584.8 million from an
investment of IDR 887.6 million. This initiative underscores our
dedication to UN SDG 2, targeting zero hunger by promoting
stable food prices and enhancing food security across the Farmers Field Day as part of the
regency. The programme also strengthens the local economy by Food Security Programme.
enabling community members to profit from their agricultural
outputs.
Tourism Village Programme at Belibak Village
The Tourism Village Programme at Belibak Village aimed to By 2023, these efforts boosted the local economy through
enhance local tourism by capitalising on the village’s natural increased revenues from accommodations, businesses, and
beauty since 2017. We supported the village by providing transportation. The programme’s SROI in 2021-2023 was
tourist accommodations, forming tourism communities, 4.10, achieving a programme present value of IDR 1,236.4
offering capacity building for residents, and developing tourism million from an investment of IDR 301.7 million. This initiative
infrastructure. underscores our dedication to UN SDG 8, targeting decent work
and economic growth by improving local tourism.
Tourism infrastructures provided by the Tourism Village Programme at Belibak Village.
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Measuring Our Programmes’ Impact in Thailand
Mangrove Conservation and Rehabilitation
Project
The 32-hectare Mangrove Conservation and Rehabilitation
Project in Lang Suan District, Chumphon Province, Thailand,
has enabled the community to use fishing as a source of
income. This programme provides improvement in local natural
resources, local climate, ecotourism, and food security for local
community. It also provides natural services that regulate the
local climate. The SROI, as per the financial ratio supported by Conservation and mangrove rehabilitation project
the Bualuang asset, is 3.56 for the period between 2021 and in Lang Suan District, Thailand
2023. This number indicates that each THB 1 investment yielded
benefits valued at THB 3.56. The programme’s present value is
THB 2,408,807 from an investment of THB 600,000.
The project’s activities align with the Sustainable Development Goals (SDGs) set by the United Nations, specifically SDG 13: Climate
Action and SDG 14: Life Below Water. The project contributes to sustainable development by addressing climate change and managing
and protecting marine and coastal ecosystems to mitigate negative impacts and conserve sea and coastal areas.
Sensory Room Project
The Sensory Room Project at Chumphon Panyanukul School in Thailand caters to students with intellectual disabilities. This room
develops rehabilitation and learning by improving concentration and the sensory system. The project’s net present value contributed
by our Bualuang asset is THB 720,209.60 from an investment of THB 214,700. The SROI is 3.53 from 2022-2023. The project aligns
with the Sustainable Development Goals (SDG), particularly SDG 4: Quality Education, ensuring inclusive and equitable education
for all.
Sensory rooms at Chumphon Panyanukul School, Thailand.
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Adopting The S-Curve
We have integrated S-Curve principles within our community As emphasised in our Community Development Policies,
engagement and development, with stakeholder engagements our empowerment programmes aim to foster self-reliant
being exercised throughout this process. This approach maintains communities. This commitment is part of our initiatives to
our strong social ties with local communities based on mutual promote economic development after these projects end.
understanding and cooperation.
The graph below illustrates how the Corridor asset implements
The S-Curve approach guides us as we develop long- the S-Curve approach in developing local businesses (Micro,
term projects that create shared value with communities. Small and Medium Enterprise/MSME programmes).
Planning Capacity Building Implementation
LOCAL CHAMPION
The business operates
independently without further
support from Corridor
• Provided CAPACITY • Provided e-commerce
business tranning
BUILDING
development
facilities to
• Invited improve RESULT • The participants have
business participants’ successfully increased
• Conducted needs development knowledge of FACILITATION the knowledge,
assessment of expert to developing productivity, market
local businesses to improve their • Provided facilitator who networking and income
determine types of participants’ businesses offered assistance to
programmes. knowledge in increase productivity,
• Collaborated with local developing improve packaging,
stakeholder business support the marketing,
• Selected programme and obtain permits.
participants • Monitored the productivity
UNDERSTANDING
AWARENESS
CONTACT
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Emergency and
Disaster Relief Initiatives
Through our Medco Cares (Medco Peduli) programmes,
we provide assistance and support to those in need, focusing on
affected communities impacted by disasters and emergencies.
In 2023, Medco Foundation provided disaster relief following
the Cianjur earthquake. This assistance included:
• Providing school supplies and psychosocial support to 545
elementary school students.
• Donating money to repair 61 houses with varying levels of
damage.
• Constructing a community water reservoir to distribute clean
water. Assistance and psychosocial support for students
• Revitalising four toilets and one laundry area, benefiting at impacted by the disaster in Cianjur, Indonesia.
least 873 villagers.
Alignment of Sustainability
Initiatives with The UN SDGs
The following table maps our initiatives to empower local communities against the United Nations Sustainable Development Goals
(UN SDG) targets. Please note that this mapping does not mean that MedcoEnergi claims to have measured or set targets for host
governments in our operational areas in terms of achieving the UN’s SDGs.
UN’s SDGs Relevant Targets Key Initiatives
• Developed a range of cultivation and aquaculture programmes, including horticulture,
mushroom, and catfish activities.
• Supported the operations of Fish Seed Centre to increase the cultivation of local
groupers and thus support the economy.
• Empowered local women through our Local Business Development Programme.
• Developed the local rubber commodity market through training and direct assistance
to the market players.
1.4
• Supported traditional culture-based fishery programmes and activities.
• Developed local micro, small, and medium enterprises by providing training on
banana and cassava chip production.
• Supported the businesses of local fishers.
• Developed a capacity-building programme for farmers to plant and grow various
plants more efficiently.
• Launched the Food Security Programme in collaboration with the Bina Tani Sejahtera
Foundation.
• Initiated a food security programme to enable communities to cultivate varieties of
crops.
2.4, 2.A
• Distributed food aid through disaster relief programmes.
• Assisted food security programs through community farming.
• Assisted local fisher groups to increase product volume and income.
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UN’s SDGs Relevant Targets Key Initiatives
• Educated high school students, pregnant and breastfeeding mothers in Lematang’s
local communities on how to prevent and manage stunting.
• Contributed to eliminating stunting among residents by distributing food aid and
collaborating with local organisations.
• Assisted with the elimination of AIDS, tuberculosis, and malaria through education
3.3
programmes in collaboration with local organisations.
• Provided training for emergency response programmes for local communities.
• Distributed food supplies, medicine, and vitamins
• Familiarised local communities with stunting prevention approaches.
• Provided scholarships for 337 undergraduate students.
• Supported establishing and renovating schools and provided learning tools.
• Provided scholarships for students.
4.1, 4.2, 4.3, 4.4, 4.7, 4.C
• Delivered educational programmes for students.
• Provided books to an elementary school to increase students’ reading abilities.
• Empowered local women through our Local Business Development Programme.
• Empowered women’s groups through capacity-building programmes and provided
5.5, 5.A equipment.
• Provided women’s groups with capacity building for small scale enterprises.
• Provided access to clean water and relevant facilities.
6.1, 6.B
• Provided clean water to a junior high school.
• Provided access to electricity for impoverished households without power.
7.1, 7.B • Provided a microhydro power plant for an indigenous community.
• Provided capacity building to the human resources of village-owned enterprises
(BUMDes).
• Assisted farmers and women with their local businesses.
• Established two Community Learning Center for Women and Children (RPIA).
8.3 • Developed a local village into a tourism destination by building the capacities of
residents and enhancing the tourism infrastructure.
• Developed the local rubber commodity market through training and direct assistance
to the market players.
• Conducted reforestation activities in a 6.5 ha forest area in Karendan village, North
Barito district, Central Kalimantan.
• Conducted mangrove reforestation to enhance coastal protection and contribute
13.1, 13.3
towards conserving the local blue crab population.
• Promoted climate resilience in communities through the Climate Village programme.
• Conducted tree-planting activities.
• Engaged multiple stakeholders, including local governments, communities, NGOs,
17.17
and educational institutions.
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Action
Plans
The following action plans have been developed to help us meet our objectives and continue creating opportunities for communities.
We regularly measure, monitor and report on our progress and performance against these actions.
Category Short-Term Actions Medium/Long-Term Actions Status
Local Communities Conduct social mapping in Oil & gas assets:
selected assets. • Assets’ social mapping reports have been
completed in Corridor, South Sumatra, Tarakan,
Bangkanai, and Block A.
Power assets:
• Conducted social assessments for the Bonjol
geothermal exploration project.
• Conducted social assessments and developed
the Scope of Work (SoW) for Timor-1 project
and operations.
Enhance the community Enhance each year’s community Developed the new community development
development programme development programmes to programme guidelines based on feedback from all
guidelines in alignment with SDGs strengthen MedcoEnergi’s SDG internal stakeholders as well as consultations with
and the Integrated Dashboard. contributions. external experts.
Conduct SROI studies in South Conduct SROI studies in other Completed SROI study of three programmes in
Natuna Sea Block B. assets. South Natuna Sea Block B and two programmes
in Bualuang, Thailand.
Stakeholder Familiarise personnel with the Conduct stakeholder mapping Oil & gas assets:
Engagements Social License to Operate Index and perception survey or SLOI in • Completed a field survey and SLOI Report for
(SLOI) guidelines. selected assets. South Natuna Sea Block B, Corridor, Tarakan,
Bangkanai and South Sumatra Region (SSR).
• Held a sharing session with external experts for
all domestic assets.
• Completed SLOI familiarisation of all domestic
assets.
Power assets:
• Maintain regular community satisfaction
surveys for the first and second semesters of
2023.
Update the Stakeholder Evaluate how the 2022-2026 Oil & gas assets:
Engagement Guidelines. Strategic Stakeholder Engagement • Developed and familiarised personnel with
is going to be implemented in the Stakeholder Engagement Guidelines for all
2026 and update the stakeholder domestic assets.
engagement guidelines in 2027.
Power assets:
• Developed 2023 SEP documents and
maintained their implementation through
community & stakeholder engagements.
• Enhanced the SEP project for East Bali PV and
the Ijen geothermal projects.
Apply and monitor Relations Enhance and evaluate the Oil & gas assets:
& Security (R&S) Integrated Integrated Dashboard system and • Presented the R&S Integrated Dashboard and
Dashboard. implementation. data analytics to all domestic senior leaders
and gathered feedback and inputs from them.
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Category Short-Term Actions Medium/Long-Term Actions Status
Security Practices Map and align all security incidents Establish the Security Incident Oil & gas assets:
that were recorded at oil & gas Dashboard at all oil & gas domestic • Synchronised the incident database with the
domestic assets assets. Data warehouse.
• Completed power BI training sessions.
• Completed testing of the incident modules.
Power assets:
• Handled all security incidents at the
subsidiaries and reviewed their corrective
actions to prevent such incidents in the future.
Conduct self-assessments for Monitor and evaluate Security Oil & gas assets:
Security Management Plans (SMP) Management Plans. • Completed presenting the verification results
for all oil & gas domestic assets. to domestic assets’ senior leaders and BoD.
• Completed online and offline field verification
at domestic assets.
Conduct Bintek (Readiness of SMP Oil & gas assets:
Audit) for selected assets. • Completed Bintek in Bangkanai, South Natuna
Sea Block B, and Corridor.
• Completed Focused Group Discussions (FGD)
at the Bintek kick-off meeting with professional
auditors and SKK Migas representatives.
Power assets:
• Collaborated with Central Java regional police
to conduct SMP awareness training for non-
security guard employees.
Develop VPSHR training guidelines. Conduct VPSHR training at guard Oil & gas assets:
level for all assets. • Familiarised all domestic assets with the
VPSHR training guidelines.
• Completed the VPSHR training guidelines.
Power assets:
• Conducted human rights refresher training
for all security personnel at Head Office and
subsidiaries.
Update routine security stakeholder • Completed routine updates of security
mapping at all assets. stakeholder mapping databases.
Update security risk assessments at Oil & gas assets:
selected assets (as needed). • Conducted online security risk assessments at
Corridor.
• Enhanced capacity building and mediation and
negotiation skills for security teams.
• Completed security drills at Rimau, Block A,
and at the headquarter office.
Power assets:
• Maintained assessments of weekly security
threats and risks.
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Building a Resilient Business
170 Approach, Commitment, and Goals
171 Our Employees
173 Initiatives to Empower Our People
181 Alignment of Sustainability Initiatives with UN SDGs
182 Action Plan
Operations Control Room Crew in Block A, Aceh, Indonesia.
This picture is the 1st winner under the ‘Business & Asset’ category
of the 2023 MedcoEnergi Photography Competition.
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MedcoEnergi’s business resilience and growth thrive on the leadership of and by our people. We are committed to creating a diverse,
inclusive and supportive work environment as we contribute to shaping a sustainable future together. We maintain a fair and inclusive
working culture and provide equal opportunities for all through our human resource policies.
Approach,
Commitments, and Goals
Our corporate values of being professional, ethical, open, and As an integral part of our human resources (HR) system, we
innovative stand as the key pillars to our success. These values consistently adhere to our HR policies and procedures and review
shape our culture and our behaviour. We assess how effectively them regularly to keep updated with the current needs. Our
our employees have incorporated these values into their work policies include, but are not limited to, our Career Management
through our annual performance review. Policy, Recruitment Guidelines and Labour Management Plan,
which aim to provide guidance, support, and protection to our
We recognise the importance of embracing diversity as we employees. We are aligned with international best practice
continue to grow our business. Diversity enriches the Company guidelines, such as the International Labour Organization (ILO)
with unique perspectives and ideas, fostering innovation and Declaration on Fundamental Principles and Rights at Work.
contributing to our industry. Maintaining a discrimination-free
and equitable working environment is clear and our commitment We uphold human rights principles and strictly comply with each
is to treat employees fairly and with respect, irrespective of host government’s labour laws in accordance with our Human
their ethnicity, race, skin colour, religion, gender, age, marital Rights Policy. The employment of children or forced labour is
status, or nationality. We hire, develop, evaluate, and reward our strictly prohibited within the Company, and we require that our
employees based on their competencies and performance. business partners also adhere to this policy. We acknowledge
and respect our employees’ right to join and form labour unions,
We are committed to ensuring equal opportunities for women reflecting our commitment to ethical and responsible business
and empowering them to progress in their careers within our practices.
company. Our board and board committees include two female
members, constituting 15.4% of the total members. In 2023
female representation has reached 19.6% at the management
level1 and this equality is reflected by the number of women
who won the 2023 MedcoEnergi Award2, which is close to 40%.
We aim to create a work environment where employees are
compensated fairly for their performance. For this reason, our
employee remunerations exceed the provincial minimum
wage (Upah Minimum Provinsi/UMP) in Indonesia. In 2023,
the minimum remuneration for our full-time, permanent
employees in Jakarta was 14% higher than the UMP stipulated
by the Jakarta Special Provincial Government (Daerah Khusus
Ibukota). Our Career Management Policy guarantees equity for
the same position regardless of gender.
1 This includes for manager level and above in Medco Corporate and Oil & Gas domestic.
2 MedcoEnergi Award is a Group-level annual contest to highlight the achievement of significant innovations and improvements. The winners of the awards consist of 12 category winners
and one Best of the Best. Further information of this Award can be found on page 180.
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Business
Our
Employees
As of 2023, MedcoEnergi employs 3,498 individuals, of whom 18% are women.
Number of Employees in Oil & Gas and Power based on Employment Contracts
2023 3,317 181
2022 3,255 154
2021 2,793 128
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Permanent Temporary
Percentage of Employees in Oil & Gas and Power based on Gender
18% 18% 18%
2021 2022 2023
82% 82% 82%
Male Female
Percentage of Employees in Oil & Gas based on Percentage of Employees in Power based on
Age Group Age Group
2023 5 71 24 2023 24 65 10
2022 4 73 23 2022 22 68 10
2021 5 76 19 2021 23 67 10
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
<30 years old 30–50 years old >50 years old <30 years old 30–50 years old 50> years old
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Employee Numbers in Oil & Gas and Power based on Geographical Location
4,000
3,000
2,000
3,126 3,205
2,640
1,000
281 283 293
0
2021 2022 2023
Indonesia International
Number and Percentage of Employees in Oil & Gas and Power based on Educational Level in 2023
Oil & Gas Power
211
8%
213
436 24%
17%
144
16% 544
60%
1,950
75%
Bachelor & above Diploma High School & non-degree
Employee Numbers in Oil & Gas and Power based on Position in 2023
Senior Vice President Superintendent &
Senior Manager Manager Staff Total
(VP) & VP Supervisor
Oil & Gas 22 66 260 575 1,674 2,597
Power 9 23 77 147 645 901
Total 31 89 337 722 2,319 3,498
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Business
Our Initiatives to
Empower Our People
MedcoEnergi’s Integrated Talent Management serves as our blueprint to provide optimal support for our employees. This framework
guides the design of our programmes and initiatives to develop, empower, and retain our employees.
MedcoEnergi’s Integrated Talent Management
Engagement
Workforce Planning
and Retention
MedcoEnergi Integrated
Succession Management Talent Acquisition
Talent Management
Learning and Development Performance Management
We continue to focus on strengthening these foundations One of our most significant achievements in 2023, from a human
and remain dedicated to enhancing our talent strategies and capital perspective, was at the Corridor operations. Following the
organisational capabilities to support our growth. acquisition, the Corridor team displayed remarkable openness
and collaboration which were instrumental in establishing
Expanding our horizons at MedcoEnergi goes beyond Accelerated Corridor Development (ACD) initiative. This ACD
acquisitions, milestones, and innovations. It is about the initiative laid a strong foundation for securing a successful
dedicated individuals who drive our day-to-day operations, Production Sharing Contract (PSC) amendment for Corridor
fueling our growth and propelling us towards new opportunities. Block. This successful outcome exemplifies the team spirit that
Our recent journey, marked by investments and expansions, is integral to the MedcoEnergi identity. It also highlights our
has brought us a diverse and talented workforce, enriching the commitment to welcoming new colleagues seamlessly into the
MedcoEnergi family with new perspectives, skills, and cultures. wider MedcoEnergi family, as demonstrated by the decision of
This diversity is a powerful strength that allows us to broaden our the entire senior leadership team at Corridor to stay on board.
horizons, think outside the box, and embrace new opportunities.
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Below, we highlight our key people-focused programmes and initiatives for 2023:
Securing top talent for critical Facilitating full office Strengthening the Developing our employees’
projects integration for Corridor implementation of our Medco leadership and technical
employees Leadership Behaviours (MLB) capabilities
Maintaining industrial peace Enhancing organisational Fostering our Company’s
through industrial and capabilities to support the culture through the
employee relations energy transition agenda Employment Engagement
Surveys (EES)
Securing Top Talent
In 2023, we continued our acquisition programmes for critical Performance Management
projects and initiatives to maintain a healthy talents pipeline. We conduct mid-year reviews and annual evaluations against
Our focus included securing top talents to support our recent employees’ performance plans under our Performance
acquisition in Oman through the secondment of skilled Management System (PMS). This system enables our staff
individuals from Indonesia. To address the vacancies resulting to recognise their primary strengths and areas requiring
from this talent mobilisation, we used our Integrated Talent development. This in turn fosters a culture of open feedback
Management system to identify and fill them from within the within our company.
organisation.
We disclosed and assured for the first time in this reporting
We also extended our support in executing projects across year percentage of employees receiving regular performance
Medco Oil & Gas’ onshore and offshore assets as well as Medco and career development reviews through PMS by gender and
Power by hiring selected permanent employees and third-party by employee category. More than 97% of our employees in
contractors. Medco Oil & Gas operations in Indonesia received these reviews.
A complete GRI Disclosure 404-3 can be found in 2023 GRI
Employee Retention Performance Data.
At MedcoEnergi, we retain our talented and dedicated workforce
by offering leadership and technical capability development In addition, our PMS integrates sustainability-focused key
programmes, providing platforms for their professional performance indicators (KPIs) into our team performance
development and ensuring a competitive compensation contracts (TPC), ensuring that the outcomes of these TPCs are
and benefits package. We strive to create a workplace where aligned with our reward programmes, including salary reviews
individuals can thrive. We also invest in work-life balance and performance-based incentives.
programmes for our employees, such as providing shuttle
transportation, onsite fitness centres, and various sport activities.
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Business
Facilitating Full Office Integration
Since our acquisition of the Corridor asset in March 2022, we facilitated integration with the team and achieved significant process
milestones in 2023. In June 2023, we completed the relocation of Corridor employees’ assets to the Energy Building in Jakarta.
We implemented our activity-based working office facilities, ensured operational compliance with Health, Safety and Environment
(HSE) standards and improved facilities. This integration not only enabled a smooth transition for our employees but also contributed
to a 24% reduction in office space, achieving greater cost efficiency and workplace effectiveness.
Our efforts resulted in an improved employee experience, as indicated by survey results, safety received a favourable score of 92%
and the physical working environment received 81%. The latter encompasses positive evaluations of facilities, workspace, safety, and
other aspects.
Strengthening Our Medco Leadership
Behaviours (MLB)
Our Medco Leadership Behaviours (MLB) were introduced in 2022. They define the exemplary leadership behaviours derived from
our corporate values. We encourage all our employees to embody these behaviours.
Medco Leadership Behaviours
Passionate in developing self and people
competencies; Empowering people to
achieve goals, leading by example, and
promoting learning from experience.
Grow People
Capabilities
Committed to creating long-term
value and to be accountable to do
Foster innovation continuosly Take the right thing to achieve business
adaptive, agile, and open to new Corporate Ownership results.
ideas. Sustain Values
Growth
Connect and engage stakeholders
Think strategically and pay attention to Foster through effective communication
Collaboration and bring a positive influence to
detail to deliver quality outcomes; take Deliver
tough decisions aligned with business Result others.
priorities.
To strengthen the implementation of these behaviours, we MLBs have also been integrated into our Leadership 101 training,
conducted a webinar in September 2023 entitled “Critical a mandatory programme for MedcoEnergi leaders to ensure that
Thinking for Effective Problem Solving”, attended by 267 our corporate values are adopted and promoted.
participants, including employees from our Thailand and
Singapore offices. This campaign delivered 13 training sessions
attended by participants across management levels, from Leads
to Senior Vice Presidents (SVPs), achieving 100% of our initial
target in 2023.
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Developing Our Employees’ Leadership and
Technical Capabilities
We empower our employees by providing various training courses suited to their individual needs. We also provide opportunities and
guidance for our employees to advance their careers. In 2023, we conducted 1,058 training courses and invested approximately USD
3.97 million in employee training.
Year Total Training Courses Total Mancourse1 Total Training Hours Training Investment (USD)
2023 1,058 9,380 77,900 3,976,000
2022 1,131 8,226 78,841 3,782,500
2021 659 5,826 60,302 1,963,099
We disclosed and assured for the first time in this reporting year type and scope of programmes for upgrading employee skills and
transition assistance provide for Medco Oil & Gas operations in Indonesia. A complete GRI Disclosure 404-2 can be found in 2023
GRI Performance Data.
Leadership Development Programmes
We completed the second batch of our Medco Senior Leadership Development Programme (MSLDP). This focused on the topic
of “Learning Through Class Sessions” in collaboration with Harvard Business Publishing. This programme took over 166 hours to
complete and engaged approximately 35 participants.
In fostering our employees’ leadership, we completed the second batch of our Medco Projects Management Academy (MPMA),
covering 17 subjects in Project Leadership and Project Management. This programme was attended by 31 potential project leaders
from across our assets and delivered by 28 internal and external speakers.
We conducted a Talent Monitoring Initiative for high-potentials and successors at the corporate level and in our Medco Oil & Gas
business as part of our Talent Development Framework. This initiative is designed to identify, nurture and monitor individuals with
exceptional potential; this ensures a strategic, systematic approach to their growth and development and to the Company’s succession
planning. This initiative spanned 360 hours in 2023 and involved 954 employees.
Technical Capability Development Programmes
A skilled technical workforce is fundamental for MedcoEnergi to sustain our business. In 2023, we completed various development
programmes aimed at enhancing the technical capabilities of our employees:
Subsurface Academy Competency Management Systems (CMS)
Enhancement
• Completed the Subsurface Academy Cadre 1. Through • Finalised the CMS Guidelines for MedcoEnergi’s operations
interactive class discussions, the skills of 25 employees and completed the Technical CMS Phase 1, with plans to
(mostly senior leaders) were enhanced by combining best advance to Phase 2 for continuous improvement.
practices from professional experts and MLB. • Ongoing Technical CMS for PT Tanjung Jati B Power Services.
• Delivered all three modules for the Subsurface Academy Competency requirements for operators in the Sarulla
Cadre 2, with the first two modules conducted in 2023 and Geothermal project are currently being reviewed.
the final third module completed in early February 2024. The
training was attended by 27 leaders and technical specialists.
1 Number of subject Training attended by one person. If one person attends two Training sessions, it will be counted as two mancourses. Reference: MedcoEnergi Training Policy
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Business
Operations Competency Assessments Educational Scholarships
• Conducted comprehensive competency assessments to • Provided undergraduate and postgraduate scholarships for
enhance operational excellence and secure safe, reliable, and Medco Power personnel from the Sumbawa Solar PV and
efficient operations. These assessments focus on operators Sarulla Geothermal project sites.
and technicians at Corridor as well as both onshore and • Provided undergraduate and postgraduate scholarships for
offshore assets, including Medco Power assets. They ensure Medco Oil & Gas employees.
thorough evaluations of all personnels’ technical expertise.
Topics about sustainability policies and climate change strategies have been integrated into several leadership and technical capability
building programmes (MPMA and Subsurface Academy).
As part of supporting continuing competency development of our employees in finance and accounting, we became an Association
of Chartered Certified Accountant (ACCA) Approved Employer and a Certified Practising Accountant (CPA) Australia Recognised
Employer Partner.
Building Strong Digital Information
Technology Foundations
In 2022, we developed our digital information technology The Four Pillars of Our Digital Strategy:
strategy under the four pillars outlined in the 2022 Sustainability • Strengthening our digital foundation
Report: strengthening our digital foundation, establishing a new This entails optimizing and deploying our application
digital operating model, driving digital transformation across our and infrastructure platform to support seamless business
business, and strengthening our cybersecurity. processes.
• Establishing a new digital operating model
Year 2023 witnessed the early implementation of this This involves ensuring our structure, processes, and
strategy, with a focus on building a robust digital foundation governance enable strategic and agile decision-making in the
that empowers us to navigate future challenges with agility digital age.
and resilience. This foundation will support further process • Driving digital transformation across the business
automation and digital transformation initiatives, ultimately This includes strategically deploying digital technologies
enhancing our efficiency, effectiveness, and overall agility. With aligned with the company’s goals and equipping our workforce
a solid foundation in place, 2024 will be pivotal as we move into with the necessary data and analytics skills.
the heart of the implementation stage. • Strengthening our cybersecurity
This pillar focuses on protecting the company from
increasingly complex cyber threats through robust measures
and ongoing vigilance.
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Fostering Industrial Peace through
Strengthening Industrial Relations with
Employees
We recognise the significance of freedom of association and The initiative was designed to foster our long-term value by
expression in promoting healthy industrial relations. This is why facilitating continuous improvements and addressing the
we are committed to strengthening our communication and regulatory complexities specific to MedcoEnergi’s entities.
collaboration with labour unions through various forums, such This alignment was developed and prioritised to promote the
as quarterly meetings with labour unions, industrial relations Company’s productivity and sustainability.
knowledge sharing and Collective Labour Agreement (CLA)
negotiations every two years. In playing our part, we also aim to maintain effective
communication and coordination with the external stakeholders,
At MedcoEnergi, we acknowledge 11 labour unions and have i.e. government institutions, including SKK Migas. This is essential
seven CLAs. All employees are covered under CLAs. We for ensuring compliance, fostering industrial peace, ensuring
continued the Grand Plan Alignment, a strategic initiative aimed mutual understanding, and facilitating a harmonious working
at synchronising the provisions of these CLAs. environment.
Enhancing Organisational Capabilities to
Support Our Climate Change Strategies
A key aspect of translating our climate aspirations into action is to enhance our organisational capabilities to mitigate climate change
and adapt to the energy transition agenda. By strengthening the technical skills of our employees, we aim to empower them to
contribute to shaping a sustainable future.
Strengthening Technical Roles for the Energy Enhancing Climate Change Understanding
Transition
Rolled out ten capability building training modules for our
Developed the core matrix for critical technical roles to support Climate Change and Energy Transition Working Groups, covering
energy transition-related initiatives. This matrix allows us to key concepts within climate change such as climate science,
identify skills and optimise talent deployments; it was developed climate change risk assessments (CCRA) and climate finance.
in collaboration with the Project Development & Engineering
Excellence (PDEE) as well as the sustainability teams.
Advancing Technological Awareness Promoting Continuous Sustainability Learning
Conducted training programmes, workshops and forums Developed and rolled out e-training programmes on key
to improve awareness of cutting-edge technologies. These sustainability concepts and frameworks for all senior managers
covered the latest technologies such as carbon capture use and and above, as well as the Climate Change and Energy Transition
storage (CCUS), renewable energy, hydrogen as well as energy Working Groups, to promote continuous learning and awareness.
conservation and optimisation.
One of our female employees represented the Indonesian
Petroleum Association as a subject matter expert in a Task
Force to establish the Indonesian National Standard on Carbon
Capture and Storage (CCS) in September 2023.
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Business
Our Climate Change working group members in 2023 received scholarships for:
• ASEAN Renewable Energy Short Term Training from the New Zealand Government. This training gave the participants the required
base knowledge to successfully manage new renewable energy capacity development project.
• Geothermal Energy Project Management Short Term Training from the New Zealand Government. This training gave the participants
the required base knowledge to take a geothermal project from the initial exploration stage through power plant construction to
electricity sales.
• International Hydrogen Ramp-Up Programme (H2UPPP) e-Learning on Green Hydrogen Economics and Project Development
from German Agency for International Cooperation (GIZ)1. The H2UPPP funding programme from the Federal Ministry for
Economic Affairs and Climate Protection accompanies and supports the market ramp-up of green hydrogen (H2) and Power-to-X
(PtX) applications in selected developing and emerging countries.
• Sustainable Development and Leadership Course from the Swedish Institute Management Programme, Asia. The programme
provided in-depth knowledge and skills about sustainable business practices with a focus on human rights, climate and the
environment, decent working conditions and anti-corruption.
Fostering Our Company’s Culture
In 2023, our commitment to create a fair and inclusive working In addition to our strengths, we have also identified areas for
environment led us to conduct a comprehensive Employee improvement. These have been translated into an action plan
Engagement Survey (EES). This survey gathered insights into to support our people and maintain MedcoEnergi’s industry
workplace satisfaction and identified areas for improvement, leadership. The action plan includes:
thus encouraging an open feedback culture. The EES covered • Continued promotion of Medco Leadership Behaviours
MedcoEnergi at the corporate level as well as various subsidiaries, These behaviours, rooted in the company’s core values of
including Medco Oil & Gas and Medco Power, among others. In professionalism, ethics, openness, and innovation, serve as
doing so, we successfully engaged 3,501 employees with a total guiding principles for all employees.
participation rate of 92%. • Development of idea-sharing tools
We are actively creating tools to empower employees to
Several key strengths emerged from the survey feedback. share their ideas and contribute to streamlining processes and
Our employees demonstrated a good understanding of and improving efficiency.
confidence in MedcoEnergi’s business direction. They noted • Competitive compensation
the Company’s strong culture of collaboration and teamwork, We are committed to maintaining a competitive compensation
combined with a spirit of innovation. Positive and supportive package through consistent market reviews, ensuring our
relationships at the Company were also highlighted, emphasising employees are fairly rewarded for their contributions.
a strong sense of trust built with their managers. Furthermore, • Enhanced career development communication
the survey affirmed that MedcoEnergi provides a safe and Improved communication strategies will ensure employees
positive work environment for employees to thrive. have clear and accessible information on career development
opportunities within the company.
2023 Employee Engagement Survey results presented by our Director and Chief Administrative Officer
1 GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH/German Agency for International Cooperation GmbH) is a German government-owned development agency that
operates in over 120 countries worldwide, including Indonesia.
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The MedcoEnergi Awards: Celebrating Innovation and Excellence
MedcoEnergi organises a Corporate-level contest annually, known as the MedcoEnergi Awards, to highlight the achievements
of significant innovations and improvements. The competition aims to recognise and appreciate successful innovations and
improvements that are in line with the Company’s values. It also seeks to foster a culture of innovation and collaboration, enhance
employee capabilities, and promote both sustainability and climate change initiatives. The competition includes all employees,
secondees, direct contract employees, and third-party contractors across MedcoEnergi’s corporate, Medco Oil & Gas domestic and
international, and Medco Power assets.
The contest includes four categories: Fit-For-Purpose Technology, Production/Revenue Enhancement, HSE and Sustainability
Excellence, and Business Process Improvement. It has consistently attracted widespread interest among employees, with 508
abstracts submitted in 2023. The selection process was rigorous, involving abstract submissions, a coaching clinic on paper writing for
the shortlisted 100 abstracts, and the submission of the papers themselves.
These papers were then narrowed down to the top ten for each category, and subsequently to the top five. On 14 December 2023,
five outstanding finalists from each of the four categories presented their innovative projects to a panel of distinguished judges at the
MedcoEnergi Award presentation day, held at The Energy Building in Jakarta. Three winners were chosen from each category, along
with one ‘Best of the Best’. In total, 13 winners were honoured with Certificates of Achievement by the Board of Directors and received
prizes. These winners were announced during the “New Year Speech” event in January 2024. The winners were celebrated for their
innovative and excellent contributions to the Company and the broader industry.
2023 MedcoEnergi Award’s ‘Best of the Best’ winner received the award from our President Commissioner
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Creating Opportunities Advancing Our Health
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Business
Alignment of Sustainability
Initiatives with The UN SDGs
The following table maps our sustainability initiatives to empower our people against the United Nations Sustainable Development
Goals (UN SDG) targets. Please note that this mapping does not mean that MedcoEnergi claims to have measured or set targets for
host governments in our operational areas in terms of achieving the UN’s SDGs.
UN SDGs Relevant Targets Key Initiatives
4.3
• Educational scholarships
• Employee Engagement Survey (EES)
• Leadership and technical capability development programmes
• Medco Leadership Behaviours (MLB)
• Medco Projects Management Academy
• Medco Senior Leadership Development Programme (MSLDP)
5.1, 5.5
• Collective labour agreements (CLA)
• Competency management systems (CMS)
8.2, 8.5, 8.6, 8.8 • HR policies and guidelines
• Leadership and technical capability development programmes
• Talent mobilisation
• Benefit alignments
10.2, 10.3
• Salary grade entitlements
13.3 • Climate-related capability building programmes and initiatives
• CLAs
16.b
• Industrial relations engagement with labour unions
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Action
Plans
The following action plans have been developed to help us meet our objectives and continue empowering our people. We regularly
measure, monitor and report on our progress and performance against these actions.
Short-Term Actions Medium/Long-Term Actions Status
Talent Attraction,
Development and Medco Senior Leadership Development Programme (MSLDP)
Retention
Complete the MSLDP Batch 2 – Learning through Continue implementing MSLDP Completed the MSLDP Batch 2 –
Experience Batch 2, focused on creating other Learning through Experience
leaders and preparing for MSLDP
Batch 3 Ongoing preparation for MSLDP
Batch 2 - Creating Other Leaders -
to begin in 2024
Medco Leadership Behaviours (MLB)
Build understanding of MLB in oil & gas domestic assets Broaden and enhance Completed thirteen (13) leadership
understanding of MLB within oil & trainings as part of the MLB
gas international assets and other campaign.
subsidiaries.
Incorporate MLB aspects in Talent
Development Framework.
Incorporate MLB aspects into performance management Incorporate MLB aspects in MLB is incorporated into the
leadership assessments Performance Management
Systems (PMS)
Talent Development Framework
Conduct talent monitoring for high-potential employees Conduct system enhancements Completed talent mapping and
and successors. and familiarisations within succession planning with division
corporate, oil & gas domestic and leads, the Technical Development
international, power assets and Committee (TDC) and the Board of
other subsidiaries. Directors (BoD).
Technical and Operations Competency Management
Identify and assess current gaps in critical roles within Identify and assess current gaps Oil & as domestic assets:
technical functions using the Technical Competency with core matrix to support Continue with TCMS Phase 2
Management System (TCMS) in oil & gas domestic and energy transitions within oil &
power assets. gas domestic and power assets Power assets:
as well as for critical roles within • Completed technical
technical functions at power, oil & competency assessments
gas international assets and support for Solar PV Sumbawa and in
functions progress for PT. Tanjung Jati B
Power Services (TJBPS).
Continue to implement the
development plans.
Establish the TCMS development plans. Implement the development plans Oil & gas domestic assets:
in oil & gas domestic and power • Implementing development
assets. plans from TCMS results.
• Completed technical CMS
dashboard for 2024
Power assets:
• Established Individual
Development Guidelines.
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Short-Term Actions Medium/Long-Term Actions Status
Initiate core matrix for critical roles in technical divisions Oil & gas domestic assets:
to support energy transitions in oil & gas domestic and • Conducted in-house capability
power assets. development programmes
related to energy transitions
• Mapped out competency matrix
for energy transition.
Power assets:
• Development of Competency
Matrix and Profile ongoing.
• e-Training on Sustainability and
Climate Change completed for
Senior Leadership Team and
will be continued to the wider
employees in 2024.
• Conducted ten online climate
change training modules for
Senior Leadership Team.
Conduct technical capability development programmes Initiate the Training the Trainer for Completed the Subsurface
through Subsurface Academy and Medco Projects Subsurface Academy programme. Academy Cadre 1.
Management Academy (MPMA).
Conduct in-house Subsurface Delivered all Subsurface Academy
Academy training and expand Cadre 2 modules.
approaches to other in-house
development programmes. Completed Medco Projects
Management Academy (MPMA).
Batch 2.
Finalise CMS Operations. Implement Operations On-The- Finalised Operations CMS
Job Training (OJT) programme and guidelines.
monitor its effectiveness.
Conduct CMS Operations in oil & gas domestic assets. Completed competency
assessments for operators and
technicians
Employee Engagement Survey (EES)
Conduct an EES with a focus on gathering feedback Implement an action plan to Conducted the EES and achieved
to foster a strong company culture and drive business convert feedback into actionable 92% survey completion rate for
objectives for employees in corporate, oil & gas, power initiatives. corporate, oil & gas, power assets,
assets, and other subsidiaries. and other subsidiaries.
Complete 2nd EES.
Developing action plans referring to
Review and develop EES action plans.
the EES results.
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Advancing Our
Health and Safety Culture
186 Approach, Commitment, and Goals
186 Operational Excellence
190 Our Health, Safety, and Environment Management
System (HSEMS)
194 Health and Safety Performance
197 Key Programmes and Initiatives
205 Alignment of Sustainability Initiatives with UN SDGs
205 Action Plan
Employees examining Safety Checklist before performing the work
in Onshore Processing Facility in Grati, East Java, Indonesia
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At MedcoEnergi, we are dedicated to protecting our employees, business partners and the surrounding environment. This is supported
by our Health, Safety and Environment Management Systems (HSEMS) and Operational Excellence (OE) framework.
Approach,
Commitments and Goals
The well-being of our employees and stakeholders is a top priority and emergency preparedness to neighbouring communities.
and a crucial component of our sustainability commitments. We Within our Corporate HSE Governance, designated roles and
firmly believe in the preventability of work-related incidents, responsibilities ensure that our HSE procedures are effectively
injuries, process safety events (PSEs), and occupational illnesses. overseen and implemented, with performance actively reviewed
This belief translates into our commitments to comply with the and improvements continually driven.
applicable laws and regulations of host governments, stay current
with industry best practices, and adhere to relevant international We actively monitor and manage hazards that threaten
standards in all regions of MedcoEnergi’s operations. Our employee health and safety as we acknowledge inherent risks
commitments to health, safety, and environment (HSE) are such as exposure to fires, equipment failures, and fatigue. We
outlined in our HSE Policy, which protects our employees and evaluate processes and devise specific hazard-minimisation
upholds strong HSE leadership in our organisation. strategies. Our oil & gas assets adhere to MedcoEnergi’s Hazard
Identification and Risk Assessment processes, which are aligned
Our core objective is to attain zero incidents, injuries, and with ISO 45001:2018. Similar ISO alignments enable our power
illnesses in our operations. We proactively set and monitor our assets to employ the Hazards Identification Risk Assessment
HSE goals and performance, providing comprehensive training and Determine Control (HIRADC) process to identify and
to employees and contractors, and raising safety awareness mitigate hazards.
Operational
Excellence
MedcoEnergi provides a systematic and collaborative approach to support the safety, reliability, efficiency of our operations in all
assets through its Operational Excellence (OE) Framework.
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Advancing Operational Excellence
Medco Oil & Gas
Operational Excellence ensures that the HSE, Asset and Operating Integrity, Operating Efficiency and Cost Management performance
is consistently improved through organisational learning, knowledge sharing and applying best practices using the Plan-Do-Check-
Adjust (PDCA) cycle.
Asse
t an d
Op
er
at
ing
Int
e g ri
ty
We focus on advancing OE at Medco Oil & Gas in 2023 by executing strategic improvement plans that have resulted from the latest
OE assessments. This promotes the exchange of leading practices across assets and builds competency through assurance.
Executing Strategic Improvement Plan
We focused on executing the Strategic Improvement Plan in 2023, which was a follow-up from
the OE assessment results. A comprehensive OE self-assessment was conducted for the newly
acquired Corridor Block, which aimed to provide an understanding of the current state and strategic
plans for continuous improvements.
The assessment identified leading practices in competency assurance, leadership visibility, risk
visualisations, safety independent reviews, human barrier assessments, and other critical areas.
Integrating these practices into our operational framework is crucial to reaching Level-31 maturity
in OE.
Cross-Asset Knowledge Exchange in Implementing Leading Practices
We consistently foster collaboration across assets and functions. As a result, we have driven
numerous improvement projects, including management of change for facilities, management of
change for personnel, and safety critical element risk assessments.
We also conducted the Operational Excellence Forum to engage key personnel in discussions
facilitated by experts. These aimed to extract insights, enhance visibility, and embed a culture of
excellence.
1 Level 3 means independent maturity level where programmes and procedures are consistently implemented
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Competency Assurance
We actively enhance employee skills through targeted mentoring and assessments every three
years for Operation Personnel to ensure alignment with role-specific requirements. For example,
in 2023, we conducted an upskilling mentoring programme for onshore production operators.
We are committed to meeting standards set by both the Ministry of Energy and Mineral Resources
(MEMR) and the Ministry of Labour for license to operate of all operations personnel. For this
reason, in 2023 we conducted thorough training efforts that ensured continuity post-COVID19 for
personnel trained during and after the pandemic.
OE Recognition
In 2023, we demonstrated outstanding compliance in an external audit of the Safety Integrity
Audit Programme and System Equipment Labour Asset Management As Low As Reasonably
Practicable (ALARP) in Technology Risk Management (TRM), known by the Indonesian acronym
SIAP SELAMAT. The audit, mandated by SKK Migas, evaluated compliance with the HSE standards
outlined in PTK-0051. It assessed our HSE Management Systems (HSEMS) and practices against
government regulations.
We achieved scores of 99.7% for Rimau, 99.6% for Corridor, and 100% for South Natuna Sea
Block B assets. We earned praise from SKK Migas for being the first Production Sharing Contractor
(PSC) to develop and successfully execute the audit with outstanding outcomes. SKK Migas also
conferred the Best Gas Plant Performance award to Corridor.
Closing Audit SIAP SELAMAT at Grissik, Corridor, South Sumatra, Indonesia
1 PTK-005 or SKK Migas’s Work Procedure Guidelines No. 005 Year 2018 was established for PSCs and business partners to develop, implement, and enhance HSE Management. The
SIAP SELAMAT HSE Audit evaluates compliance and recommends improvements across various management areas, including leadership, risk control, and emergency handling based
on these guidelines.
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Ensuring Operational Excellence
Medco Power
Medco Power has adopted Operational Excellence practices These assessments covered:
(as outlined in the Medco Power Operational Excellence • HSE,
framework) in its strategy to become the leading Indonesian • cost management,
clean Independent Power Producer (IPP) and Operation • maintenance reliability and asset & operating integrity,
& Maintenance (O&M) service company. This framework • production monitoring & optimisation,
streamlines systems for competitiveness, ensuring the safety, • talent development,
reliability, efficiency, and profitability of all assets. OE covers all • performance management systems.
business platforms in Medco Power, which include gas to power
& new technology, solar & wind, geothermal, and O&M services. These assessment results not only provided valuable inputs and
lessons learned but were also followed through with strategic
Medco Power completed the OE self-assessment for Energi improvement plans to achieve excellence.
Listrik Batam (ELB), Medco Ratch Power Riau (MRPR), and
Medco Power Solar Sumbawa (MPSOS) in 2023.
Medco Power implemented Operational Excellence in 2023 in the following areas:
Health, Safety, and Environment (HSE) Maintenance Reliability and
Asset & Operating Integrity
We implemented Process Safety Management across all assets, We implemented a robust Defect Elimination (DE) process. It
including Asset & Operating Integrity, to educate personnel involved comprehensive identifications, captures, and analyses
on safety practices. Standardisation efforts included Process of defects using diverse data sources such as event codes,
Safety Metrics, Management of Change, and the Process Safety production losses, failure data, and recurring events. This
Framework to streamline business processes. We also delivered approach aligned with the Medco Power Defect Elimination (DE)
a Process Safety campaign and arranged routine workshops/ Guidelines, ensuring adherence to best practices and industry
forums in the Process Safety Board & Council for all Medco standards. Moreover, Root Cause Analyses (RCA) of various levels
Power assets. (e.g., Mini, Midi, and Maxi RCA) were systematically conducted as
part of the DE process to identify underlying causes based on
severity, frequency, or impact of defects.
We also set our long-term plans for asset integrity in power
plants and continued essential asset integrity programmes for
operating assets.
We also aligned our Operability Assurance (OA) with Operational Excellence and integrated its standards into all major capital projects.
This approach ensured that operations and project stakeholders collaborated to address operability, reliability, and maintainability. It
also facilitated smooth operational integration and met OE requirements in initial operations. As of 2023, OA has been applied not
only to IPP projects such as Ijen Geothermal IPP, East Bali IPP, and ELB Add-On, but also to ensure readiness in O&M Services, such
as in Timor-1 and Sulut-1 Power Plants.
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Our Health, Safety, and Environmental
Management System (HSEMS)
Our HSEMS is an integral part of the OE framework. This management system enables us to systematically identify, assess, control,
and monitor operational HSE risks to the business, employees, contractors and the environment. The HSEMS requires each asset and
business unit to plan, coordinate and monitor HSE implementation throughout our operations. Our contractors and suppliers are also
required to adhere to this management system.
The HSEMS Manual outlines managerial responsibilities for health and safety issues and ensures that HSEMS is implemented and
communicated effectively across our business. Its roles and responsibilities are outlined below.
Quarterly
Corporate Board Committee (CBC) • Approve corporate HSE vision/mission, policies, management system,
standards, goals, KPIs.
Chair Person: Director & Chief Operating Officer • Approve corporate audit plan.
Co-chair: Director & Chief Administrative Officer • Review corporate HSE performance and provide strategic direction.
Members: Senior Vice Presidents (SVPs), MPI Chief Executive Officer, VP • Approve incident investigation term of reference and incident investigation
Project Development & Engineering Excellence, VP HSE, VP Technical report of high potential near miss & injuries and high risk incidents.
Assurance • Approve Corporate HSE Programmes.
Monthly
Asset Leadership Team (ALT) • Approve asset’s timeline of corporate HSE procedures and tools
implementation.
Chair Person: VP Operations, General Manager • Participate in corporate audit.
Members: Senior Managers, Managers • Approve and implement asset’s goals, KPIs, HSE programmes.
• Review asset’s HSE Performance.
• Communicate and discuss incidents’ lesson learned.
Monthly
Functional Leadership Team (FLT) • Approve and implement HSE site specific procedures.
• Participate in corporate audit.
Chair Person: Operations Managers, Field Managers/General Manager, • Implement asset’s goals, KPIs, HSE programmes.
Offshore Installation Managers • Review sites’ HSE performance.
Members: Lead/Superintendent, HSE Managers • Report any incidents and near misses.
Our HSEMS at operating assets1 aligns with ISO 45001:2018 for Occupational Health and Safety (OHS) Management Systems and
ISO 14001:2015 for Environmental Management Systems (EMS). We maintain certifications for both standards – a list of certified oil
& gas and power assets is on page 87 of this report.
Our Management System for oil & gas assets also complies with the Indonesian Government’s Regulation No. 50/2012 on the
Implementation of the OHS Management System and the Ministry of Energy and Mineral Resources (MEMR)’s Safety Management
System for the Oil & Gas Industry (Sistem Manajemen Keselamatan Migas/SMKM).
1 While we are ensuring HSEMS alignments with relevant ISO standards in our operated assets, we are also influencing our non-operated assets to implement HSEMS and/or align with
relevant ISO standards.
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Hazard Identifications, Risk Assessments,
and Implementations of Associated Control
The following table illustrates how we continued to implement our hazard identifications and implementations of associated controls
programme in 2023:
Categories Assets 2023 Activities
Oil & Gas - Onshore Corridor Hazard and operability revalidation at Dayung and Grissik fields to foster the
safety of our operations and health risk assessments.
Lematang Hazard identification workshop for critical welding tasks on the Singa Central
Processing Platform (CPP). This also included preparatory measures such as
equipment inspections and emergency drills.
Tarakan Hazard identification workshop and simultaneous operations assessments.
It was followed by emergency exercises and assignment of an independent
reviewer to report directly to Vice President Operation and General Manager
serving as on-site representative.
Oil & Gas - Offshore South Natuna Sea Block B Hazard identification compliance for high-risk activities at Belida and Belanak
Floating Production Storage and Offloading (FPSO). We assigned inter-field
HSE advisors as HSE independence reviewers, representing the highest level of
operations management.
Oil & Gas - International Bualuang, Thailand Front End Engineering Design (FEED) hazard identifications and hazards
and operability for Bualuang debottlenecking project. The outcomes will be
integrated into safer designs for Bualuang debottlenecking and it is to be
completed in 2025.
Oman Hazard identification training using the bow tie method as an effective risk
control mechanism.
Power Energi Listrik Batam (ELB) A hazard identification study project for construction work, commissioning, and
simultaneous operations in Medco Power’s ELB Add-on project.
Medco Power Solar Sumbawa (MPSOS) Conducted Electrical Hazard and Operability (HAZOP) or Electrical Safety and
Operability (SAFOP) studies at our 26 MWp Solar PV ground mounted power
plant. This assessed, eradicated or minimised potential electrical hazards to
personnel in the electrical installations.
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Asset Integrity
We carried out asset integrity assessments in our oil & gas facilities and power plants to ensure the continued reliability and safety of
our operations. The activities are as detailed below:
Categories Assets 2023 Activities
Oil & Gas - Onshore Block A Conducted slope stabilisations and land subsidence to enhance the Right-of-
Way (ROW) pipeline facility's integrity, preventing slope failures and ensuring
the reliability of production operations and gas sales continuity. These activities
are continuing to date.
Corridor Conducted inspections for topside facilities by performing Risk Based
Inspection (RBI) assessments, Corrosion Under Pipe Support (CUPS) or
Corrosion Under Insulation (CUI) inspections, pipeline inspections by intelligent
pigging, pipeline repairs, structural integrity inspections and implement
corrosion management. These activities are continuing to date.
Rimau Replaced Kaji-Pangabuan pipeline segments 5 and 6 aimed to enhance their
reliability. This activity was completed safely even though excavation was
required near the existing pipeline. It also involved engagement with Field
Relations, Security, HSE, and Onshore Project Delivery Functions.
Tarakan Improved the integrity of a 4-inch gas line and a 6-inch oil line in Tarakan by
applying Stopaq after lifting the collapsed pipes to inspect and clean them.
Oil & Gas - Offshore South Natuna Sea Block B (Hang Tuah) Conducted a pigging activity on the 12-inch gas pipeline from Belida Drilling
and Production Platform A (DPPA) to Hang Tuah aimed to ensure its integrity.
South Natuna Sea Block B (Belanak) Conducted annulus vacuum test of the flexible riser at Belanak FPSO to
determine the current integrity conditions. The test results showed no
significant integrity issues on the flexible riser.
Sampang Conducted condensate tank cleaning activities and integrity checks on the
T-260 condensate tank.
Oil & Gas - International Bualuang, Thailand Executed a hydraulic workover (HWO) campaign, using a HWO unit provided
by the contractor to enhance production and restore the well’s integrity on the
Alpha platform.
Power Medco Ratch Power Riau (MRPR) Conducted the first pipeline pigging activity on a 12-inch, 38 km gas pipeline
from Sectional Valves (SV) at Koto Gasib to the MRPR Tenayan Power Plant.
Mitra Energi Batam (MEB) Executed condenser inspection and maintenance; new sacrificial anodes and
coating were put in place to ensure the condenser’s integrity.
Condensate Tank T-260 cleaning activity in Sampang, Indonesia
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Annulus vacuum test at Belanak FPSO, South Natuna Sea Block B, Indonesia
Belida DPPA – Hang Tuah caliper pigging, South Natuna Sea Block B, Indonesia
Cleaning Pigging in a 12 inch, 38 km pipeline in MRPR, Riau, Indonesia
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Contractor HSEMS
Managing contractors is a critical aspect of our business as It provides comprehensive guidance to ensure contractors
they constitute the majority of MedcoEnergi’s workforce. Our align with our HSE expectations, standards, and criteria. We
Contractor HSE Management System (CHSEMS) is an integral also conduct pre-screening of contractors for their safety
part of our OE and is seamlessly integrated into our HSEMS. performance and risks in compliance with SKK Migas regulations.
This integration spans planning and checking, risk management In 2023 we continued to reinforce our contractors’ commitment
planning stages, and incorporates contractor management by implementing CHSEMS. This included evaluating contractors’
within the Asset and Operating Integrity (A&OI) Management performance to gather feedback and ensure that CHSEMS was
system. consistently implemented across all our assets.
Health and Safety
Performance
We actively monitored our occupational health and safety (OHS) performance, utilising key performance indicators (KPIs) to pinpoint
areas to improve and ensure effective programme implementation. We continuously focused on improving our Total Recordable
Injuries Rate (TRIR) for both Medco Oil & Gas and Medco Power. Our ultimate targets are to have zero incidents and consistently
maintain rates below the TRIR of the International Association of Oil & Gas Producers (IOGP).
Our Consolidated TRIR decreased from 0.21 in 2022 to 0.15 in 2023 although the work activities increased around 10%1 compared to
2022, reflecting a positive trend. Notably, we achieved zero fatalities for the third consecutive year, underscoring our commitment to
safety. The following graph illustrates our TRIR performance with the latest benchmarking data2:
TRIR at Medco Oil & Gas and Power in 2017-2023
1.40
1.20
0.96 0.99
1.00
0.92 0.90
0.75 0.77
0.77
0.80 0.72 0.70
0.69 0.60
0.70 0.69
0.60 0.58 0.59 0.58
0.56 0.48
0.44
95 0.39
0.40
0.35 0.31 0.33 0.33 0.33
0.29 0.24
0.21
0.20 0.18
0.15
0.00 0.00 0.00
0.00
2017 2018 2019 2020 2021 2022 2023
Consolidated Oil & Gas Power
IOGP Overall IOGP Asia/Australasia
1 The percentage of work activities is calculated based on the number of manhours.
2 The number of recordable injuries (fatalities + lost workday cases + restricted workday cases + medical treatment cases) per million hours worked. Source for benchmarking: Data Series
International Association of Oil & Gas Producers (IOGP) Safety performance indicators - 2022 data, issued in June 2023. Workforce includes employees and contractors.
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Our OHS performance is in the tables below.
Employees Contractors
Oil & Gas
2021 2022 2023 2021 2022 2023
Number of 0 0 0 0 0 0
Fatalities
Fatality Rates 0.00 0.00 0.00 0.00 0.00 0.00
Lost Time Incident 0.00 0.00 0.00 0.00 0.00 0.00
Rates 1,2
Total Recordable 0.00 0.00 0.20 0.51 0.28 0.17
Incident Rates2
Occupational 0.00 0.00 0.00 0.00 0.00 0.00
Disease Rates
Employees Contractors
Power
2021 2022 2023 2021 2022 2023
Numbers of 0 0 0 0 0 0
Fatalities
Fatality Rates 0.00 0.00 0.00 0.00 0.00 0.00
Lost Time Incident 0.00 0.00 0.00 0.00 0.00 0.00
Rates 1,2
Total Recordable 0.00 0.00 0.00 0.00 0.00 0.00
Incident Rates2
Occupational 0.00 0.00 0.00 0.00 0.00 0.00
Disease Rates
1 Lost time incidents include fatalities, permanent disabilities, and lost workdays.
2 Incidents include both injuries and illnesses.
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Process Safety Performance
Our process safety encompasses:
These parameters are instrumental in assessing our asset and
standards and equipment testing
procedures, and certification, operating integrity and aim to minimise Process Safety Events
(PSEs).
staff contractor
As part of our OE implementation in 2023, we enhanced our
competencies, requirements,
asset integrity regarding aging facilities. We evaluated the
effectiveness of our process safety measures in our Indonesian
safety a two-barrier oil & gas assets and subsequently extended the implementation
cases, policy, to encompass our power and oil & gas international assets.
incident response and
recovery mitigation plans.
Process Safety Events (PSE) 2021 2022 2023
Tier 1 PSE
1
0 1 0
Tier 1 PSE rate per 1,000,000 work hours 0.00 0.04 0.00
Tier 21 PSE 3 1 3
Tier 2 PSE rate per 1,000,000 work hours 0.19 0.04 0.12
Upending Jacket during Offshore Campaign in South Natuna Sea Block B, Indonesia
This picture is the 3rd winner under the ‘Health/Safety’ category of the 2023 MedcoEnergi Photography Competition.
1 The definition of Tier 1 and Tier 2 PSEs refers to the American Petroleum Institute’s Recommended Practice Process and Safety Performance Indicators for the Refining and Petrochemical
Industries; Second Edition.
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Key Programmes
and Initiatives
We demonstrate our commitment through various HSE programmes and initiatives developed for our employees, business partners
and communities.
Incident Prevention Initiatives
We implement diverse OHS programmes targeting both employees and processes to prevent accidents. The initiatives conducted
or continued in 2023 include:
Quarterly Corporate HSE Leading Metrics
We have adopted corporate leading metrics by
anticipating and mitigating potential risks across all
assets before they escalate. This data-driven strategy
enables us to identify trends, pinpoint improvement
areas, and carry out targeted interventions for better
safety outcomes.
Cross Asset Lifting Operations Audit
We launched the Cross Asset Lifting Operations’ internal
audit to standardise lifting practices across assets by
drawing on the expertise of cross-asset technical experts.
This approach promotes uniform HSE standards and
allows for timely corrective measures that enhance the
identification of potential hazards in lifting operations.
HSE Perception Survey at Corridor
We conducted an HSE Perception Survey among
employees and a Safety Maturity Assessment to assess
the effectiveness of our HSE management system.
These initiatives offered insights into the strengths and
areas for improvement, which in turn enabled us to
adjust our strategies and initiatives. They also provided
benchmarks to compare the HSE conditions of the new
asset with our existing ones.
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Journey Management Enhancement at
Corridor
The Corridor asset relies on a robust land transportation
system to manage high fleet numbers, travel times, and
distances across six operational fields. For this reason,
Corridor launched the Motor Vehicle Incident (MVI)
Combat Programme to enhance travel safety. As a
result, this programme has improved both driving and
road safety.
HSE Communications and Campaigns
We engage with our workforce to keep them well
informed on HSE at work through communication
strategies that employ both printed and electronic
media. These campaigns visually provide crucial safety
information to employees and contractors, thereby
improving their knowledge and skills for safer workplaces
and healthier lifestyles.
Engagements with Local Communities in
the Ijen Area
Our HSE engagements also extend to the local
communities where we operate. For example, Medco
Cahaya Geothermal (MCG) familiarised the locals in
Curah Macan village and the Kawah Wurung Tourist
Attraction with the preparations for drilling and well flow
testing.
Process Safety Ambassadors
We appoint our employees and contractors as process
safety ambassadors and contractor safety ambassadors
for our offshore assets. The process safety ambassadors
conduct weekly sessions to boost process safety
awareness and motivate colleagues to prioritise safety.
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National HSE Month Campaign
We celebrated National HSE Month, also known as Bulan
K3 Nasional, with various activities. They included safety
quizzes, PPE demonstration competitions, webinars,
and health promotion activities. This programme aimed
to reinforce the company’s commitment to safety while
enhancing awareness and productivity.
Process Safety Training for Medco Power
Medco Power is building process safety capacity through
a series of process safety training sessions for asset
leaders. These process safety trainings and campaigns
cover not only common material for process safety,
but also catastrophic prevention mechanisms in the
electrical power generation system, which covers
generators, transformers, switchgears, Uninterruptible
Power Supply (UPS) and DC supplies.
Employees’ Health
At MedcoEnergi, we are committed to protecting the health of all our workforce. In 2023, we organized a programme called the 43
Days Medco Active Movement as part of our commitment to healthier lifestyles. This is an annual health programme featuring virtual
challenges and offline events for all employees aimed at promoting fitness and well-being. All workers are encouraged to participate
in sports activities, including walking/running, cycling, and working out.
Medco Active Movement
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We conducted daily health checks and testing, including vital To further promote healthy lifestyles in Medco Power, we
signs and Romberg tests to measure a person’s sense of balance conducted regular health talks and training sessions covering
prior to working at height across all asset. We also held initiatives specific awareness topics, such as on early detections of cervical
for employees’ well-being, such as a hearing awareness campaign and breast cancer for employees and their families. We also
and weight reduction programme in the Corridor asset. conducted cardiovascular emergency drills by providing training
and simulations to handle medical emergencies related to heart
In addition, our Oman asset conducted HSE campaigns for
attacks at MCG, Multidaya Prima Elektrindo (MPE), and Energi
substance abuse and developed a medical fit-to-work assurance
Prima Elektrika (EPE).
tool. This tool serves as an analytical and tracking mechanism
that ensures compliance with required checkups for each
position and tracks the validity of medical examinations.
Early cervical and breast cancer detection training for employees and families at Medco Power.
Medical dashboard for employee’s health monitoring in Oman
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The Safety Leadership Programme
We implemented our Safety Leadership Programme to minimise
workplace incidents and maintain compliance with our safety
management systems, procedures and protocols.
HSE Management Visits
The Board of Directors (BoD), Leaders Team (LT), and Line
Management of Medco Oil & Gas and Power conducted field
visits across different assets under the HSE Management
Visit programme. This programme is intended to support A signing off of a collective safety commitment
HSEMS implementation, improve HSE culture, and manifest
organisational openness. During these visits, the management
members aimed to foster an HSE information-sharing culture
that covered incidents, near misses, and more. They performed
the tour to technical and operational divisions, engaged in
onsite HSE discussions with employees, and identified unsafe
acts, conditions, and events and communicated to prevent
recurrence.
Management walkdown at MEB, Riau Islands, Indonesia
Supervisory Checklists
Medco Oil & Gas uses supervisory checklists, a tool designed
to monitor line management visibility and enhance their
engagement in HSE aspects. Leadership involvement is
expected to drive organisational culture and subsequently
influence behaviours. Our goal is to cultivate safety-conscious
behaviours among workers, thereby reducing accidents. Line
management is therefore responsible for implementing the
Supervisory Checklist Programme, reviewing its effectiveness,
and regularly monitoring and reporting on its execution.
Medco Power’s President Commissioner during
HSE Management Visit to MCG, East Java, Indonesia Supervisory Checklist Tools (Piloting in Onshore)
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HSE Engagements with Contractors
Maintaining our safety culture requires effective engagements with our contractors. To achieve this, we have developed programmes
to instil accountability and promote transparency among our contractors.
Contractor HSE Forum & Workshops
Continuing our Contractor HSE Forum from the past years, in November 2023 we organised a contractor forum for Medco Oil & Gas
in collaboration with Corporate HSE and other assets. The focus was on “Leveraging Contractor Leadership & Commitment through
HSE Plan Execution and Learning Organisation.” This event provided a platform for constructive dialogues and knowledge-sharing,
which fostered a deeper understanding of how HSE plans are executed.
CHSEMS Forum at The Energy Building, Jakarta, Indonesia
Meanwhile, the annual joint HSE engagement in Oman involved Similar efforts were carried out at our Tarakan and Corridor
47 leaders from MedcoEnergi and contractors over two days. assets. These included regular coaching sessions on Contractor
It covered topics such as HSE performance, business ethics, HSE and Monthly Contractor Management Forums, attended by
leadership engagement, and provided feedback for next year’s the general managers and operations managers. These sessions
plans. This forum enabled us to strengthen relationships with our were held in various forms, such as focus group discussions,
contractors and enhance our commitment to HSE excellence. briefings by HSE investigators, and HSE commitment banner
signings by contractor leaders.
Contractor Management Initiatives
We enhanced insights taken from historical data and developed a contractors’ HSE performance dashboard to visualise and monitor
contractors’ performance as well as trace historical records in Oman.
Digital contractor performance dashboard (Oman)
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We conducted contractor HSE audits for brownfield operations The ambassadors conducted campaigns on various HSE
and aviation contractors in our Bualuang asset in Thailand. programmes during daily morning safety meetings. They also
The aim was to foster collaboration and provide feedback participated in planned programmes such as hazard hunting
on HSE capabilities and system maturity. These audits were and facilities inspection. By doing this, we aimed to improve
well-coordinated with contractors, and the results were contractors’ HSE knowledge and awareness, which included
communicated to relevant parties. adopting safe working habits.
Contractor Safety Ambassadors
We appointed “Contractor Safety Ambassadors” to uphold
safety protocols and minimise incidents. They are responsible
for implementing the programmes, which included mentoring,
coaching, monitoring sessions as well as weekly reports to upper
management.
Contractor Safety
Ambassadors
Emergency Preparedness
In MedcoEnergi, emergency preparedness is integrated into our In addition, we conduct a variety of regular tabletop and wet
Operational Excellence. The responses are covered in our three drills to improve our responses to potential hazards. Mustering
tiers of response organisation, which define response capabilities drills are conducted monthly. Other drills that include helicopter
across all levels, from asset to senior management levels: crashes, subsurface piping failures and gas releases, heavy
• A Tier-1 response is a tactical response managed by the equipment, structural damage, abandonments and lifeboats,
Incident Management Team (IMT) at the site level, utilising amongst others, are conducted annually.
local resources.
• A Tier-2 response is a tactical support response requiring Some of these drills include the Ramba Jetty oil spill response
additional resources and personnel. Our response efforts in exercises as well as the oil spillage drills for Medco Power. These
such situations involve both the site level IMT and the asset exercises aim to simulate emergency responses and train our
Emergency Management Team (EMT). Emergency Response Team (ERT) to handle oil spills in our
• A Tier-3 response is activated when a crisis surpasses the limits work areas in compliance with the Minister of Transportation’s
of the Tier-2 response capabilities. This response is a strategic Regulation Number 58 Year 2013.
corporate response managed by the Crisis Management Team
(CMT), involving senior management from both the asset and We also conducted multiple casualties integrated exercises for
corporate levels. our Corridor assets to prepare EMT members and comply with
SKK Migas’ Health Emergency Preparedness Programme.
We have also established “Business Continuity Teams” for our
assets and corporate functions. These teams cooperate to
plan and execute recovery efforts following disruptions to our
business.
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CMT-EMT Training & Tabletop Exercise This training provided insights into roles and responsibilities
We conducted a CMT-EMT Training and Tabletop exercise in during incidents that require further handling or higher-level
collaboration with Oil Spill Combat Team (OSCT) in November escalation. The tabletop exercise aimed to guide CMT and EMT
2023, which focused on a major on-water oil spill scenario. This to handle crises related to oil spills in water and follow the CMT
involved CMT and EMT members from all oil & gas Indonesian planning cycle process.
assets and representatives from Bualuang and power assets.
CMT-EMT Training & Tabletop Exercise
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Alignment of Sustainability
Policies
The following table maps our sustainability initiatives to advance our health and safety culture against the United Nations Sustainable
Development Goals (UN SDG) targets. Please note that this mapping does not mean that MedcoEnergi claims to have measured or
set targets for host governments in our operational areas in terms of achieving the UN’s SDGs.
UN SDGs Relevant Targets Key Initiatives
• Health, Safety and Environment Management System (HSEMS)
• Hazard identification and implementation of associated controls
3.4, 3.6, 3.8, 3.9 • Emergency preparedness and table-top exercises
• Health programmes (e.g. medical checkups, 43-day Medco Active Movement)
• Process Safety Ambassadors
• HSE campaigns, programmes, and initiatives
• Contractor HSEMS
8.8
• Contractor Safety Ambassadors
• Emergency preparedness and tabletop exercises
Action
Plans
The following action plans have been developed to help us meet our objectives and continue advancing our health and safety culture.
We regularly measure, monitor and report on our progress and performance against these actions.
Category Short-Term Actions Medium/Long-Term Actions Status
Workplace Health and
Safety Fit to Work for All Workers & Health Case Management
Achieve remaining Medical Check- Implement pilot project involving Completed MCUs & Fit to Work Classifications.
Up (MCU) compliance 100% for predictive analyses for individuals’
Jakarta Office, Oman and Medco fit to work status in oil & gas assets.
Power.
Improve wellness campaign Improve wellness campaign Completed the wellness programme that started
programme for South Sumatra, programme for all assets. on 1 September 2023.
Tarakan and Oman.
Implemented Pilot System Further implement integrated fit Completed Integrated Personnel Mobilisation
(Integrated Fit to Work) monitoring to work monitoring systems to System (IPMS) for all onshore assets, which
system for all onshore assets. Onshore, Offshore, Corridor, and started in August 2023.
Thailand.
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Category Short-Term Actions Medium/Long-Term Actions Status
Implement updated fit to work Implement audits for fit to work Completed the governance of the updated fit-to-
governance and case management. and OHS standards at all oil & gas work and monitored the implementation of case
assets. management.
Improve Medical Emergency Improve Medical Emergency Completed MERP in South Sumatra and Tarakan
Response Plans (MERP) in South Response Plans (MERP) in East Java as a pilot project.
Sumatra and Tarakan. and Medco Power (West Java and
South Sumatra), followed by other
assets by 2025.
Maintain a safe and healthy working environment
Conduct self OE assessments for Corridor and Medco Power Completed OE self-assessments for Corridor and
Medco Power.
Develop safety culture (own) self- Implement safety culture self- These tools are already available and subject to
assessment tools. assessments at all oil & gas assets customisation according to our needs.
and power locations.
Establish corporate HSE audit Conduct corporate HSE audits Conducted HSE audits as mandated by SKK
protocols and conduct audits at at all oil & gas assets and power Migas.
onshore locations. locations.
Establish governance for learning Implement improved learning The drafting of the development guidelines is in
organisations and evaluate organisations at all oil & gas assets progress and will be incorporated into the Incident
effectiveness. and power locations. Reporting Procedures.
Improve Life-Saving Rules (LSR) Implement LSR FV at all oil & gas Undergo improvement processes for LSR FV and
Field Verification (FV), including assets and power locations. include IOGP Start Work Checks (SWC).
IOGP Start Work Checks (SWC).
Implement SKK Migas Implement pilot project of Conducted familiarisations and training of PTK
methodology on CHSEMS on oil & predictive safety performance 005.
gas assets (PTK 005). in all oil & gas assets and power
locations. Conducted training for evaluators/auditors.
Baseline and continuous scoring of Initial and
Ongoing Assessment (Penilaian Awal dan Penilaian
Berjalan/PA & PB) are tracked by leading metrics.
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Category Short-Term Actions Medium/Long-Term Actions Status
Asset Integrity (Storage &
Transportation) Ensuring the Security and Integrity of the Asset
Finalise Corporate level HSEMS for Development of a corporate level HSEMS is in
oil & gas assets. progress for oil & gas assets.
Develop Process Safety Review effectiveness of Process Undergo Process Safety Framework development
Management governance for oil & Safety Management. for managing process safety in oil & gas assets.
gas assets.
Conduct asset integrity and process Conduct asset integrity and process The audit programme has been shifted to 2024
safety through Corporate HSE safety through Corporate HSE due to the requirement to conduct SIAP SELAMAT
audits at oil & gas onshore assets. audits at all oil & gas assets and audits mandated by SKK Migas instead.
power locations.
Implement process safety event Completed the process safety event metrics
metrics on power assets. documents.
Implement onshore flowline Implement onshore flowline Completed the Rimau flowline replacement
replacement programme in the replacement programme in all (3,989 meters) and SSB flowline replacement
South Sumatra region. South Sumatra areas (4,744 meters) as per the 2023 plans.
Improve asset integrity and safety Improve asset integrity and safety Installed and commissioned a shutdown valve
systems on Tarakan. systems in Rimau and South & programmable logic controller. The vessel
Sumatra region. installation is in progress until 2024, according to
the plans.
Improve strategies to minimise Improve strategies to minimise Currently running the Task Force of Revitalisation
vandalism in all onshore assets vandalism in onshore assets in Pipeline Programme, which covers security,
(focus on the Jene Pengabuan Rimau and South Sumatra region. operations, integrity, social aspects, and
pipeline). stakeholder engagements. Regular programme
updates to South Sumatra Region (SSR)
Management.
Establish Business Continuity (BC) Evaluate effectiveness of BC Developing Business Continuity standards is in
governance and BC improvements governance through audits in all oil progress.
in functions (IT, the Jakarta Office), & gas assets and power locations.
oil & gas onshore and offshore. BC improvements are in progress for IT, offshore
and onshore oil & gas assets.
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Appendix
2023 Awards
Award Awarder Description
Oil & Gas and MEI
Medco E&P Natuna received the Project
Performance Award in the Exploration category
for the Belida Extension Project
Medco E&P Indonesia received the Assurance
The 4th ICIUOG Award 2023 SKK Migas and Consulting Excellence Award in the Internal
Supervision category.
JOB Tomori received the Integrity Compliance and
Ethics Award and the Best Cost Initiative Award in
the Internal Supervision category.
Oil and Gas Safety Training Category: PT
Ministry of Energy and Mineral Resources,
Patra Karya Raksa Madya Transportasi Gas Indonesia recognised for oil & gas
Directorate General of Oil and Gas
work safety
JOB Simenggaris received an award for the
Ministry of Energy and Mineral Resources,
Patra Nirbhaya Karya Utama Adinugraha category ‘without losing working hours as a result
Directorate General of Oil and Gas
of an accident'
JOB Tomori and South Natuna Sea Block B
Ministry of Energy and Mineral Resources,
Patra Nirbhaya Karya Utama received an award for the category ‘without losing
Directorate General of Oil and Gas
working hours as a result of an accident'
Block A and Lematang received an award for the
Ministry of Energy and Mineral Resources,
Patra Nirbhaya Karya Madya category ‘without losing working hours as a result
Directorate General of Oil and Gas
of an accident'
Bangkanai and Madura Offshore received an
Ministry of Energy and Mineral Resources,
Patra Nirbhaya Karya Pratama award for the category ‘without losing working
Directorate General of Oil and Gas
hours as a result of an accident'
Medco E&P Grissik recognised for maximum
Ministry of Energy and Mineral Resources,
Subroto Award efforts in improving Non-tax State Revenue from
Directorate General of Oil and Gas
Upstream Oil and Gas.
South Natuna Sea Block B secured the second
place for the category of Contractors for Large
Asset Value Upstream Oil and gas Cooperation
Ministry of Energy and Mineral Resources, Contracts
Anugerah Tata Bandha Energi
Directorate General of Oil and Gas
Tarakan secured the second place for the category
of Contractors for Small Asset Value Upstream Oil
and Gas Cooperation Contracts
Medco E&P Grissik and Medco E&P Tomori
Tax Award Ministry of Finance, Directorate General of Taxes Sulawesi recognised for tax payments that
contribute greatly to Indonesia’s development
The Best 5 Investortrust Companies 2023 Investortrust.id Media Presented to Medco Energi International Tbk
Press Partner Award/'Sahabat Pers' (Friend of the
Indonesian Cyber Media Union (SMSI) Presented to Medco E&P Indonesia
Press) Award
Indonesian Fishermen Association (HNSI) of the
2023 CSR Award Presented to South Natuna Sea Block B
Anambas Islands
3rd Best CSR Governor of Aceh Presented to Block A
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Award Awarder Description
Subsea7 has been awarded a ''sizeable''
contract by European supermajor Shell for
Sizeable Contract Award European supermajor Shell the decommissioning of subsea infrastructure
associated with a floating production, storage and
offloading vessel offshore Brazil.
Bualuang PSC recognised for transparent
Thailand Sustainability Disclosure Recognition
Thaipat Institute, Thailand sustainability disclosure in accordance with
Award 2023
international ESG practices and standards.
Leony Lervyn, Senior Manager Communication,
Best Spokesperson Energy and Mining Editor Society (E2S) was awarded the "Best Spokesperson" titles for
O&G.
The awards recognised South Natuna Sea
Block B's commitment to fostering positive
Triple Best Social Responsibility Awards SKK Migas
transformation in the communities surrounding its
operational areas.
Medco E&P Natuna and Medco Energi Sampang
2 Green PROPER Awards Environment and Forestry Ministry recognised for dedication to environmental
conservation.
JOB Tomori recognised for dedication
to environmental conservation and the
Gold PROPER Award Environment and Forestry Ministry implementation of sustainable community
empowerment programmes around its
operations.
Block A has been recognised in the evaluation
Gold Title Badan Pengelola Migas Aceh (BPMA) of the key performance indicators of the human
resources function in 2023
Corridor Grissik was honoured with the 2023
Empowerment Figure Award by Rumah Zakat
Empowerment Figure Award Rumah Zakat for its unwavering commitment to community
development and outstanding contributions to
public education.
Medco E&P Indonesia has won The Highest
TKDN for Cost Recovery 2023 from the Special
The Highest Local Content (TKDN) for Cost Task Force for Upstream Oil and Gas Business
SKK Migas
Recovery 2023 Activities. The accomplishment reflects Medco
E&P's commitment to enhancing national
capacity.
Block A received the Supply Chain Management
1st Rank Badan Pengelola Migas Aceh (BPMA) (SCM) 2022 Key Performance Indicator (KPI) 1st
rank award
Corridor received a rank 2 for PSC with the highest
utilisation of the State-Owned Assets (BMN) Hulu
Directorate General of State Assets Management, Migas
Best Asset Management and Optimisation
Ministry of Finance
Tarakan received a rank Category C for with the
highest utilisation of the BMN Hulu Migas
MedcoEnergi has been honoured with the
prestigious National Champion award in the
Customer/Buyer category from the Ministry of
National Champion Award Ministry of State-Owned Enterprises (BUMN) State-Owned Enterprises (BUMN). This award
underscores MedcoEnergi's commitment as a
BUMN partner dedicated to the advancement of
Indonesia.
Hilmi Panigoro received an award for his
Best Sustainability Leadership Initiatives Energy and Mining Editor Society (E2S) outstanding contributions to driving sustainable
practices within Medco
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Award Awarder Description
Power
Silver achievement in The 12th Indonesia Transformation Culture of Behavior-Based Safety
Operational Excellence Conference & Award 2023 OPEXCON Through Digitalisation HSE Observation by MPI-
(OPEXCON) for Mining and Energy Category myHSE Mobile Application
Tanjung Jati B Power Services, Mitra Energi Batam
Zero Accident Award Ministry of Manpower and Medco Ratch Power Riau recognised for zero
accidents.
For the achievements in implementing HIV &
HIV & AIDS Prevention and Control Programme in
Ministry of Manpower AIDS prevention and control programmes in the
The Workplace – Platinum category
workplace
For the achievements in implementing COVID-19
COVID-19 Prevention and Control Programme in
Ministry of Manpower prevention and control programmes in the
the Workplace – Platinum category
workplace
In appreciation of Tanjung Jati B Power Services
that performs environmental regulations, provide
Gold PROPER Ministry of Forestry & Environment added value to the company's natural resource
maintenance activities, energy conservation
efforts, and community development
For the achievements in implementing HIV &
HIV & AIDS Prevention and Control Programme in
Ministry of Manpower AIDS prevention and control programmes in the
the Workplace – Platinum category
workplace
For the achievements in implementing COVID-19
COVID-19 Prevention and Control Programme in
Ministry of Manpower prevention and control programmes in the
the Workplace – Platinum category
workplace
For the achievements in implementing HIV &
HIV & AIDS Prevention and Control Programme in
Ministry of Manpower AIDS prevention and control programmes in the
the Workplace
workplace
In appreciation of Mitra Energi Batam that
Blue PROPER Ministry of Forestry & Environment performs environmental compliance to Ministry
of Environmental and Forestry regulation
Appreciation for implementation of P2K3 Achievement of implementation of P2K3
Ministry of Manpower
programmes in the workplace programmes in the workplace
Achievement of implementation of an
SMK3 Ministry of Manpower occupational safety & health management system
(Gold Rank)
Medco Power Indonesia recognised as Best of the
Best Renewables Company.
Indonesia Best Electricity Award 2023 Listrik Indonesia
Energi Listrik Batam recognised as Best Non-
renewables Power Plant Company.
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OJK Sustainability Reporting
Standards and Requirements
(SEOJK No. 16/2021)
No. Topic No. Disclosure Page
Corporate sustainability
A A.1 Explanation of the sustainability strategy 36-48
strategy
B.1 Economic aspect 16
Summary of sustainability
B B.2 Environmental aspect 17
performance
B.3 Social aspect 18
C.1 Vision, mission and sustainability values 25
C.2 Company's address Back Cover
C.3 "Scale of business" 22, 28, 171-172
C Summary of company profile
C.4 Products, services, and business activities conducted 22
C.5 Association memberships 48
C.6 Significant changes to the company Not applicable
D Letter from Board/Director(s) D.1 Letter from the Board/Director(s) 8-13
E.1 Responsibility for the implementation of sustainable finance/ operations 55-58
61-62, 64, 71-72,
E.2 Competency development pertaining to sustainable finance/ operations 75-76, 112-113,
175-179
E Sustainability governance
E.3 Risk assessment on the implementation of sustainable finance/ operations 58-59
E.4 Stakeholder relations 46-47, 139
E.5 Issues on implementation of sustainable finance/ operations Not Applicable
36-37, 52-59,
66, 84-87, 102-
F Sustainability performance F.1 Initiatives in building a culture of sustainability 104, 110-111, 138,
162-165, 170, 173,
186-189
Economic Performance
Economic comparison of production targets and performance portfolio, financing
F.2 16, 33
target, or investment, income and profit/loss
Economic comparison of target and portfolio performance, financing target, or
F.3 Not Applicable
investments in financial instruments or projects relating to sustainable operations
Environmental Performance
F.4 Environmental cost 98, 141
Material Aspect
F.5 Use of environmentally-friendly materials 89-92
Energy aspect
F.6 Amount and intensity of energy usage 122-123
F.7 Efforts and initiatives for energy efficiency and renewable energy 124-131
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No. Topic No. Disclosure Page
Water aspect
F.8 Water usage 94-95
Biodiversity aspect
F.9 Impacts of operations near or within a conservation area/areas rich in biodiversity 98-101
F.10 Initiatives for biodiversity conservation 98-101
Emission aspect
F.11 Amount and intensity of emissions produced by type 120-122
F.12 Initiatives and achievements for emission reduction 118-119, 124-131
Waste and effluent aspect
F.13 Amount of waste and effluent produced by type 90, 92, 96
F.14 Waste and effluent management mechanism 89-92, 95-96
F.15 Spills that occured (if any) 93
Complaints regarding the environment aspect
F.16 Number and material of environmental complaints received and resolved 84
Social performance
Commitment in providing services on products and/or equivalent services to
F.17 Not applicable
consumers
Employment aspect
F.18 Equal employment opportunity 170
F.19 Child labor and forced labor 30, 170
F.20 Regional minimum wage 170
F.21 Decent and safe working environment 170
F.22 Employee capabilities training 175-179
Community aspect
F.23 Impact of operations on surrounding communities 138-167
F.24 Public complaints 69, 74
F.25 Corporate environmental and social responsibility initiatives (related to UN SDGs) 138-167
Responsibility for the development of sustainable products and services
F.26 Innovation and development of sustainable products and services Not applicable
F.27 Products and services that have been evaluated for customer safety Not applicable
F.28 Impacts of products and services 84-86
F.29 Number of products recalled Not applicable
F.30 Customer satisfaction survey on sustainable products and services Not applicable
Written verification from an
G G.1 Written verification from an independent party (if any) 3
independent party
H Feedback form G.2 Feedback form Feedback Form
Responses to the previous
I G.3 Responses to the previous year's report feedback Not applicable
year's report feedback
List of disclosures according to Circular Letter of Financial Service Authority Regulations
G.4 211-212
(OJK) Number 51/POJK.03/2017
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Singapore Exhange (SGX) Index
SGX Primary Component Index
No. Primary Component Page Reference
1 Material ESG factors 41-42
110-134
2 Climate-related disclosures consistent with the TCFD recommendations
GRI Performance Data page 11-22
36-48, 52-77, 84-104, 110-131, 138-164, 170-180, 186-204
3 Policies, practices and performance
GRI Performance Data page 2-57
4 Targets 32, 79-81, 106-107, 112, 133-134, 166-167, 182-183, 205-207
5 Sustainability reporting framework 3, 39-40, 78, 105, 114, 132, 164-165, 181, 205, 211-214
Board statement and associated governance structure for sustainability
6 8-13, 55-58
practices
SGX Core ESG Metrics Index
Core ESG Metrics set in SGX Disclosure Location Reason of non-disclosure
Environmental
Absolute emissions by:
a) Total 119, 120-122
b) Scope 1, Scope 2 120-122
Information incomplete. We aim to
c) Scope 3, if appropriate Not disclosed
disclose Scope 3 by 2025
Greenhouse Gas Emissions
Emissions intensities by:
a) Total 121 Disclosed for Scope 1 intensity
b) Scope 1, Scope 2 121 Disclosed for Scope 1 intensity
Information incomplete. We aim to
c) Scope 3, if appropriate Not disclosed
disclose Scope 3 by 2025
Total energy consumption 123
Energy Consumption
Energy consumption intensity 123
Total water consumption 94 Disclosed our water withdrawal
Water Consumption
Water consumption intensity 94-95 Disclosed our water withdrawal
Waste Generation Total waste generated 90, 92
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Core ESG Metrics set in SGX Disclosure Location Reason of non-disclosure
Social
Current employees by gender 171
Gender Diversity
New hires and turnover by gender GRI Performance Data page 40-42
Current employees by age groups 171
Age-based Diversity New hires and turnover by age
GRI Performance Data page 47
groups
Total turnover GRI Performance Data page 42-43
Employment
Total number of employees 171
Average training hours per employee Not disclosed Information incomplete
Development & Training Average training hours per employee
Not disclosed Information incomplete
by gender
Fatalities 195
High-consequence injuries GRI Performance Data page 48
Occupational Health & Safety Recordable injuries 195
Recordable work-related ill health
195
cases
Governance
Board independence Annual Report page 98-101
Board Composition
Women on the Board 170
Management Diversity Women in the management team 170
59-81,
Anti-corruption disclosures
GRI Performance Data page 8
Ethical Behaviour
60-62, 64, 71-72, 75-76, GRI
Anti-corruption training for
employees
Performance Data page 8-9
Certifications List of relevant certifications 87
Alignment with frameworks and 3, 39-40, 78, 105, 114, 132, 164-165,
Alignment with Frameworks
disclosure practices 181, 205, 211-214
Assurance Assurance of Sustainability Report 3
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Acronym and Abbreviations
3R Reduce, Reuse, and Recycle CHSEMS Contractor HSE Management System
A&IC Audit and Integrity Compliance CIP Climate Impact Platform
A&OI Asset and Operating Integrity CIVD Central Integrated Vendor Database
ABC Anti-Bribery and Corruption CLA Collective Labour Agreement
ACCA Association of Chartered Certified Accountant CMS Competency Management System
ACD Accelerated Corridor Development CMT Crisis Management Team
ABMS Anti-Bribery Management System CNG Compressed Natural Gas
ADB Asian Development Bank CO2e Carbon dioxide equivalent
AGMS Annual General Meeting of Shareholders CoC Code of Conduct
Environmental Impact Assessment (Analisis Mengenai COD Commercial Operation Date
AMDAL
Dampak Lingkungan Hidup)
CoI Conflict of Interest
AML Anti-Money Laundering
COO Chief Operating Officer
AMMT PT Amman Mineral Internasional Tbk
COP28 2023 United Nations Climate Change Conference
APEC Asia-Pacific Economic Cooperation
CPA Certified Practising Accountant
API American Petroleum Institute
CST Corridor Storage Tanker
ASEAN Association of Southeast Asian Nations
CSR Corporate Social Responsibility
B+HR Business and Human Rights
CSRM Corporate Sustainability and Risk Management
BAT Best Available Technologies
DEB PT Dalle Energy Batam
bbls Barrels
DIT Digital Information Technology
Anambas Centre for Fish Seeds (Benih Bibit Ikan
BBIA Directorate General of Electricity of the Ministry of
Anambas)
Energy and Mineral Resources (Direktorat Jenderal
DJK-ESDM
BCP Business Continuation Plans Ketenagalistrikan, Menteri Energi dan Sumber Daya
Mineral)
BEP Belinda Extension Project
DSLNG PT Donggi Senoro LNG
BIP Business Impact Projects
E&P Exploration and Production
BJI PT Bio Jatropha Indonesia
Renewable Energy & Energy Conservation (Energi Baru,
BMN State-owned Goods License EBTKE
Terbarukan, dan Konservasi Energi)
National Professional Certification Agency (Badan ECC Ethics & Compliance Committee
BNSP
Nasional Sertifikasi Profesi)
EES Employee Engagement Survey
BoC Board of Commissioners
ELB PT Energi Listrik Batam
BoD Board of Directors
ELO Ethics Liaison Officer
boe Barrel of Oil Equivalent
EMS Environmental Management System
BSR Business for Social Responsibility
EMT Emergency Management Team
CAO Chief Administrative Officer
EP Equator Principles
CAPEX Capital Expenditures
EPE PT Energi Prima Elektrika
CATS Corrective Action Tracking System
ERM Enterprise Risk Management
CCPP Combined Cycle Power Plant
ERT Emergency Response Team
CCRA Climate Change Risk Assessment
ESG Environmental, Social, and Governance
CCS Carbon Capture and Storage
ESAP Environmental Social Action Plan
CCUS Carbon Capture, Utilization and Storage
ESHIA Environmental, Social, and Health Impact Assessment
Formerly the Carbon Disclosure Project, an
international non-profit organisation that helps ESHMP Environmental, Social and Health Management Plan
CDP
companies and cities disclose their environmental
impact EV Electric Vehicle
CEO Chief Executive Officer FAAP Finance Apprentice Acceleration Programme
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Indonesian Oil & Gas Auditor Forum (Forum Auditor ISED Inclusive Sustainable Economic Development
FAMI
Migas Indonesia)
ISO International Organisation for Standardization
FGD Focus Group Discussions
ISPS International Port and Ship Security
District leadership coordination forums (Forum
FORKOPMIDA IT Information Technology
Komunikasi Pimpinan Daerah)
FPIC Free, Prior and Informed Consent JOB Joint Operating Body
FPSO Floating Production Storage and Offloading Indonesian Chamber of Commerce and Industry
KADIN
(Kamar Dagang dan Industri)
FRA Fraud Risk Assessment
Kantor Akuntan Publik Purwantono, Sungkoro & Surja
KAP PSS - EY
GCG Good Corporate Governance (A member firm of Ernst & Young Global Limited)
GEG Gas Engine Generator KKKS Contractor Partnership (Kontraktor Kontrak Kerja Sama)
GHG Greenhouse Gas KPI Key Performance Indicator
GJ Gigajoule Indonesian Corruption Eradication Commission (Komisi
KPK
Pemberantasan Korupsi)
GMS General Meeting of Shareholders
KSF Karim Small Fields
GOI Government of Indonesia
kWp Kilowatt peak
GRI Global Reporting Initiative
KYC Know-Your-Customer
GSA Gas Sales Agreement
LEAD Leadership Essential Development
GTG Gas Turbine Generator
Oil & Gas Professional Certification Institute (Lembaga
GTR Government Travel Expense Requisition LSP Migas
Sertifikasi Profesi Minyak dan Gas)
HAOP Hazard and Operability LSR Life-Saving Rules
HFW Harassment-Free Workplace LTI Lost Time Incident
HOA Head of Agreement LTIR Lost Time Incident Rate
HR Human Resources LTP Long-Term Plan
HRA Human Rights Assessment mboepd Million Barrels of Oil Equivalent Per Day
HRIA Human Rights Impact Assessment MCG PT Medco Cahaya Geothermal
HRDD Human Rights Due Diligence MEB PT Mitra Energi Batam
HRGS Human Resources & General Services MEI PT Medco Energi Internasional Tbk
HSE Health, Safety, and Environment MEMR Ministry of Energy and Mineral Resources
HSEMS Health Safety and Environment Management System MEPI PT Medco E&P Indonesia
Indonesian Business Council for Sustainable MEPM PT Medco E&P Malaka
IBCSD
Development
MEPN Medco E&P Natuna Ltd (South Natuna Sea Block B)
ICE Integrity Compliance and Ethics
MESL Medco Energi Sampang Pty. Ltd
ICT Incident Management Team
MGB Mercury Guard Bed
IDP Individual Development Plan
MLB Medco Leadership Behaviours
IDR Indonesian Rupiah
mmscfd Million Standard Cubic Feet per Day
IDX Indonesia Stock Exchange
MoEF Ministry of Environment and Forestry
IEA International Energy Agency
MOU Memorandum of Understanding
IESG Industry Environmental Safety Group
MPE PT Multidaya Prima Elektrindo
IFC International Finance Corporation
MPEP Medco Project Excellence Process
IFRS International Financial Reporting Standards
MPI Medco Power Indonesia
ILO International Labour Organisation
MPMA Medco Project Management Academy
IMO Integration Management Office
MPSI PT Medco Power Servis Indonesia
IOGP International Association of Oil & Gas Producers
MRPR PT Medco Ratch Power Riau
IPA Indonesia Petroleum Association
MSCI Morgan Stanley Capital International
Indonesian Petroleum Association Ethics and
IPA ECC
Compliance Committee MSLDP Medco Senior Leadership Development Programme
IPCC Intergovernmental Panel on Climate Change MSME Micro, Small, and Medium-sized Enterprise
IPP Independent Power Producer MW Megawatt
IS Information Systems MWp Megawatt peak
216 PT Medco Energi Internasional Tbk 2023 Sustainability Report
Page 220
Empowering Our People
Creating Opportunities Advancing Our Health
Building a Resilient
for Communities and Safety Culture
Business
NDC Nationally Determined Contribution Women and Children Empowerment House (Rumah
RPIA
Permberdayaan Ibu dan Anak)
NGO Non-governmental organisation
National Medium Term Development Plan (Rencana
OADP Operations Apprentice Development Programme RPJMN
Pembangunan Jangka Menengah Nasional)
OE Operational Excellence SAE Standards on Assurance Engagement
Organisation for Economic Co-operation and SASB Sustainability Accounting Standards Board
OECD
Development
SCBD Sudirman Central Business District
OFAC Office of Foreign Assets Control
SCL Supervisory Checklist
OGMP Oil & Gas Methane Partnership
SCM Supply Chain Management
OHS Occupational Health and Safety
SDGs Sustainable Development Goals
OHSAS Occupational Health and Safety Assessment Series
SDS Sustainable Development Scenario
OJK Financial Services Authority (Otoritas Jasa Keuangan)
SEP Stakeholder Engagement Plan
OPF Onshore Process Facility
Special Task Force for Upstream Oil & Gas Business
OSCT Oil Spill Combat Team SKK Migas Activities (Satuan Kerja Khusus Pelaksana Kegiatan
Usaha Hulu Minyak dan Gas Bumi)
OSRL Oil Spill Response Limited
Environmental Permit (Surat Keputusan Kelayakan
OT Operational Technology SKKL
Lingkungan Hidup)
P2P Procure-to-Pay
Safety Management System for the Oil & Gas Industry
SMKM
PDCA Plan-Do-Check-Adjust (Sistem Manajemen Keselamatan Migas)
PDPA Personal Data Protection Act SMP Security Management Plan
PDO Petroleum Development Oman SMS Social Management System
PFSP Port Facility Security Plan SoA Statement of Adherence
PIC Persons in Charge Continuous Wastewater Quality Online Monitoring
SPARING (Sistem Pemantauan Kualitas Air Limbah secara Terus
Family Welfare Programme (Pemberdayaan Menerus dan Dalam Jaringan)
PKK
Kesejahteraan Keluarga)
SPI Sustainable Performance Improvement
Indonesian State-owned Electricity Company
PLN SRMC Sustainability and Risk Management Committee
(Perusahaan Listrik Negara)
PMS Performance Management System SROI Social Return on Investment
PDO Petroleum Development Oman SSC Shared Services Centre
PPA Power Purchase Agreement SSP Shared Socioeconomic Pathway
Oil & Gas Human Resources Centre (Pusat South Sumatra Region (Consists of Lematang, Rimau
SSR
PPDSM Migas Pengembangan Sumber Daya Manusia Minyak dan Gas and South Sumatra Block)
Bumi)
STEPS Stated Policies Scenario
PPE Personal Protective Equipment
STP Sewage Treatment Plant
Forest Area Usage Approval (Persetujuan Penggunaan
PPKH SQR Service Quality Review
Kawasan Hutan)
TB Tuberculosis
PPP PT Pembangkitan Pusaka Parahiangan
TCFD Task Force on Climate-related Financial Disclosures
Performance Rating Programme in Environmental
PROPER
Management TCMS Technical Competency Management System
PSC Production Sharing Contract tCO2e Metric tons of carbon dioxide equivalent
PSE Process Safety Events TDC Technical Development Committee
PT Limited Liability Company (Perseroan Terbatas) TJBPS PT Tanjung Jati B Power Services
PV Photovoltaic TLV Threshold Limit Value
PWT Produced Water Treatment TOE Ton of Oil Equivalent
QPR Quarterly Performance Review TOX Thermal Oxidizer
R&D Research & Development TPC Team Performance Contract
R&S Relations and Security TRIR Total Recordable Injury Rate
REC Renewable Energy Certificate UDHR Universal Declaration of Human Rights
RCP Representative Concentration Pathway UMP Provincial minimum wage (Upah Minimum Propinsi)
RO Reverse Osmosis UN United Nations
UNGP United Nations Guiding Principles
2023 Sustainability Report PT Medco Energi Internasional Tbk 217
Page 221
Messages from Our Year About Our Approach Pursuing Excellence Enhancing Our Environmental Realising Our Management in Summary MedcoEnergi to Sustainability in Our Governance and Social Safeguards Climate Aspirations UNODC United Nations Office on Drugs and Crime US United States of America USD US Dollar VIDA Virtual International Development Assignment VP Vice President VPSHR Voluntary Principles on Security and Human Rights WBCSD World Business Council for Sustainable Development WBS Whistleblowing System WTC Waste Treatment Centre WWTP Wastewater Treatment Plants 218 PT Medco Energi Internasional Tbk 2023 Sustainability Report
Page 222
Feedback Form
This Sustainability Report provides an overview of MedcoEnergi’s 2023 sustainability performance. We look forward to receiving
suggestions for improvement from our stakeholders. Please share your feedback and/or comments about this Sustainability Report
by completing this feedback form and returning to us by e-mail, fax, or mail.
Stakeholder Group
� Shareholders � Employee � Partners � Government & Regulator
� Bank & Investor � Community � Customer � Media
� Others, please specify __________________
Please choose the most appropriate answer(s) to the questions below:
Yes No
1 This report is useful to you � �
2 This report describes the Company’s performance in sustainability development � �
Please rate the following material aspects based on the level of importance according to your view of MedcoEnergi’s sustainability
performance (score 1 = most important to 16 = least important).
Workplace health, safety, and wellbeing ( )
Climate Risk and Resilience ( )
Water ( )
Asset Integrity & Security ( )
Human Rights ( )
Responsible Procurement Practices ( )
Security Practices ( )
Climate Mitigation ( )
Air Quality ( )
Local Communities ( )
Stakeholder Engagements ( )
Talent Attraction, Retention, and Development ( )
Climate Adaptation ( )
Effluents and Waste ( )
Anti-Corruption & Business Ethics ( )
Policy & Regulatory Environment ( )
Please provide suggestions/comments for this report:
Thank you for your participation. Kindly send this feedback form to the following address:
PT Medco Energi Internasional Tbk
Attn: Investor Relations
The Energy Building 53rd Floor SCBD Lot 11A
Jl. Jend. Sudirman, Jakarta 12190 Indonesia
P. +62-21 2995 3000
F. +62-21 2995 3001
Email: investor.relations@medcoenergi.com
Page 223
Page 224
Names mentioned 83 people and organisations named in the text · linked when the evidence is strong
unresolved
org
PT Axioma Grafis Indonesia North Belut
p.3
unresolved
org
PT Medco Energi International Tbk’s ESG Risk MSCI
p.4
unresolved
org
Sustainalytics Internasional Tbk
p.4
unresolved
org
MSCI ESG Research LLC
p.4
unresolved
org
PSS
p.6 ×12
unresolved
org
EY’s Limited
p.6
unresolved
org
Indonesia Stock Exchange
p.25 ×3
unresolved
org
Directorate General of State Assets
p.34
unresolved
org
Pengelola Migas Aceh
p.34
unresolved
org
Medco International Ventures Ltd
p.36
unresolved
—
• General meetings with shareholders to present
p.50
unresolved
—
MedcoEnergi’s annual results, material decisions
p.50
unresolved
org
• Regular meetings between our management team
p.50
unresolved
org
Contractors, Suppliers and Business Partners
p.50
unresolved
—
• Regular familiarisations of our
p.50
unresolved
—
Code of Supplier and initiatives in Sustainability
p.50
unresolved
—
Climate Change in the quarterly newsletter for
p.50
unresolved
—
our domestic oil & gas contractors, suppliers
p.50
unresolved
org
Days, held for our partners in oil and gas and power
p.50
unresolved
—
Government and Regulators
p.50
unresolved
—
• Regular consultations and cooperations with
p.50
unresolved
—
government agencies and authorities to empower
p.50
unresolved
—
local communities, support our workforce, mitigate
p.50
unresolved
—
adverse environmental and social impacts
p.50 ×2
unresolved
—
• Regular engagements with the authorities to provide
p.50
unresolved
—
Non-Government Organisations (NGOs)
p.50
unresolved
—
• Consult with and collaborate on programmes
p.50
unresolved
—
initiatives to empower local communities, support our
p.50
unresolved
—
workforce and mitigate adverse environmental
p.50
unresolved
—
• Maintain correspondence and communication to
p.50
unresolved
org
PT Pupuk Sriwidjaja Palembang
p.50
unresolved
—
gather their feedback.
p.50
unresolved
—
local and national levels.
p.50
unresolved
—
• Conduct awareness and competency training for
p.50
unresolved
org
journalists in the oil and gas industry.
p.50
unresolved
person
Climate-related
· President Director
p.61 ×2
unresolved
org
PT Tanjung Jati B Power Services
p.65 ×2
unresolved
org
PT Donggi Senoro LNG
p.68
unresolved
org
PT Transportasi Gas Indonesia Operation Technology Sampang
p.68
unresolved
org
PT Energi Prima Elektrika
p.68
unresolved
org
PT Mitra Energi Batam
p.68 ×2
unresolved
org
PT Energi Listrik Batam
p.68
unresolved
org
PT Multidaya Prima Elektrindo
p.68
unresolved
org
PT Dalle Energy Batam
p.68 ×2
unresolved
org
PT Medco Cahaya Geothermal
p.68
unresolved
org
Sarulla Operations LTD Sarulla Operations LTD
p.68
unresolved
org
PT Bio Jatropha Indonesia
p.68
unresolved
org
PT Medco Ratch Power Subsidiaries
p.68
unresolved
org
PT Medco Hidro Indonesia
p.68
unresolved
org
PT Pembangkitan Pusaka
p.68
unresolved
org
PT Medco Power
p.68
unresolved
org
PT Medco Power Solar Sumbawa Parahiangan
p.68
unresolved
org
PT Tanjung Jati B Power
p.68
unresolved
org
P Natuna Ltd.
p.69
unresolved
org
Bauluang Ltd.
p.69
unresolved
org
Medco Oman LLC
p.69
unresolved
person
Ronny Siahaan
p.76
unresolved
person
Benny Sidik
p.76
unresolved
org
Minister of Manpower Decree
p.76
unresolved
org
PT Deloitte Advis Indonesia
p.77
unresolved
person
Nam Chumphon School. This
p.80 ×2
unresolved
org
PT Transportasi Gas Indonesia International Ship
p.84
unresolved
org
Ministry of Law and Human Rights
p.89
unresolved
org
Oil Spill Response Limited
p.96
unresolved
org
Ministry of Environment and Forestry
p.99 ×2
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