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Driving Change, Powering Progress
         SUSTAINABILITY REPORT 2023
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P T I N D I K A E N E R GY T B K .




       Cover story
       Driving Change, Powering Progress encapsulates the dynamic essence of collaborative efforts aimed at societal
       advancement. It epitomizes our commitment to proactive engagement and continuous improvement. As
       we navigate the complexities of sustainability, this mantra underscores our collective responsibility to effect
       meaningful change, both within our operations and across our broader ecosystem. By harnessing innovative
       solutions, fostering strategic partnerships, and embracing stakeholder collaboration, we drive initiatives that
       not only reduce our environmental footprint but also empower communities, enhance social equity, and drive
       economic prosperity. It signifies a shared vision of harnessing collective power to confront challenges, catalyze
       innovation, and create a more equitable and sustainable future for all.




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                                                           SUSTAI NABI LI TY RE PO RT 2 0 2 3




           PT Indika Energy Tbk.



Driving Change, Powering Progress
           2 0 2 3 S U S TA I N A B I L I T Y R E P O RT




                                                                                           3
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Letter from
our President Director

                     I N 2 0 23 , W E R E A S S E S S E D O U R E N V I R O N M E N TA L , S O C I A L A N D G OV E R N A N C E ( E S G )
                     G OA L S TO M A K E T H E M E V E N M O R E A M B I T I O U S .



Scaling Up Our Ambitions
When we set out our medium- and long-term                               But we know we can do even better. In 2023,
goals at Indika Energy in 2021, we knew the                             we reassessed our environmental, social and
challenge we had set ourselves would not be easy.                       governance (ESG) goals to make them even
The headline figures we were working towards                            more ambitious. We have doubled down,
were ambitious for any company, and even more                           giving ourselves new parameters to track and
so for an energy company: growing our non-coal                          fulfill; refining ongoing targets to ensure more
businesses to half of our revenue by 2025 and                           meaningful outcomes; and ensuring that our
achieving net zero emissions by 2050.                                   processes and goals carry more clout in the
                                                                        boardroom and across the organization.
Adding to the scale of the challenge were
unforeseen external factors that swept entire                           If anything has changed with respect to our
industries, from the COVID-19 pandemic to the                           commitment over the past year, it is that we
global supply chain crunch to ongoing geopolitical                      have set the bar even higher — and are more
conflicts. And yet, since then, we are committed to                     determined than ever to clear it. We are not just
achieving this goal across nearly all parameters                        setting goals, we are delivering in meaningful and
that we are tracking.                                                   impactful ways.




 M . A R S J A D R A S J I D P. M .
      P R E S I D E N T D I R E C TO R
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                                                       We are putting our decades of expertise in coal
Our Approach                                           mining to good use in our new gold, bauxite and
Indika Energy’s ESG drive takes a three-pronged        nickel ventures. Through Masmindo, we manage a
approach: Diversify, Divest, Decarbonize. We           gold-mining concession in Luwu, South Sulawesi,
continue to diversify into low- and zero-carbon        with extensive reserves. Working closely with
businesses to achieve our goal of 50% revenue          local authorities and communities, we saw
from non-coal activities by 2025. To that end, we      construction began in 2023 and expect to start
are also divesting from the more carbon-intensive      production in 2025. Through Mekko Metal Mining,
segments of our business portfolio, with an            we also manage a bauxite- mining concession
emphasis on a just and responsible transition. As      in Landak, West Kalimantan, which has been in
of the end of 2023, we recorded 12.0% of revenue       production since 2022. A third venture, Rockgeo,
from non-coal activities. We also continue to          is our entry into nickel, a key mineral in the clean-
find ways to decarbonize our ongoing activities,       energy transition, as well as other minerals.
innovating in various ways to work towards our
goal of net zero emissions by 2050.                    This helps position Indika Energy as a front-
                                                       runner in building Indonesia’s electric vehicle (EV)
In 2023, we reassessed our ESG baseline and            ecosystem from the ground up. Through ALVA, we
targets, adjusting them to be in line with our         launched the ALVA One electric motorbike in 2022,
diversification updates, and coming up with even       and followed in 2023 with the ALVA Cervo and in
more ambitious ESG targets that will have a more       2024 with the ALVA One XP. ALVA also established
meaningful impact.                                     a manufacturing facility in Cikarang, Indonesia’s
                                                       automotive hub, and opened ALVA Experience
In our reassessment, we sought to be both
                                                       Centers in Jakarta, Bali, Bandung, Surabaya and
ambitious and realistic with what we can achieve
                                                       Semarang. Crucially, all motorbike models meet
through key high-level actions and cost-effective
                                                       the government’s requirements for local content
levers. That has meant setting ourselves even
                                                       in their production, ensuring that ALVA not only
more focused goals, including reducing our scope
                                                       supports the transition to clean transportation,
1 and 2 emissions by 25% in 2025 and 33% in 2030,
                                                       but also contributes to the domestic economy.
as well as our scope 1 and 2 emission intensity per
revenue by 50% in 2025 and 55% in 2030, and per        At the other end of the EV spectrum, through INVI
coal production by 10% in 2025 and 25% in 2030,        we distribute electric commercial vehicles under
relative to our 2020 baseline.                         the KGM, Foxtron and Hyundai brands, supporting
                                                       facilities for electric charging stations under the
We have also refined our energy consumption
                                                       Daeyoung Chaevi brand, and air-conditioning
goals by adding renewable energy requirements;
                                                       systems for BOA brand electric buses. Meanwhile,
increased our targets for both water savings and
                                                       through Kalista we provide FaaS (fleet as a service)
waste recycling and reuse; expanded our zero-
                                                       solutions to simplify customers’ transition into
fatality goals to cover not just employees but
                                                       the EV ecosystem, offering electric two-wheelers
also contractors; significantly boosted our gender
                                                       and four-wheelers as well as charging unit rental
equity targets for the workforce in general and
                                                       schemes. From the charging infrastructure to
senior management in particular; and given
                                                       the vehicles themselves, INVI and Kalista are
greater weight to ESG-linked performance
                                                       committed to being a key player in the full-range
indicators for board members.
                                                       EV ecosystem.

Diversification                                        On the renewable energy front, Empat Mitra
                                                       Indika Tenaga Surya (EMITS), Indika Energy’s
In 2023, we continued to seek out new
                                                       joint-venture solar subsidiary, has to date installed
opportunities and grow our presence in existing
                                                       60 MW of solar photovoltaic (PV) capacity in Java,
low- and zero- carbon segments. We see Indika
                                                       Bali, Sumatra, Kalimantan, Sulawesi and Maluku,
Energy as the leading diversified investment
                                                       targeted at commercial and industrial clients and
company in Indonesia, and our diversification
                                                       utilities. EMITS targets to install up to 500 MW of
approach is as much a push to that end as it is part
                                                       solar capacity by 2025. EMITS offers a full range
of our ESG drive.
                                                       of services, from financing, design, engineering,
Over the past year, we boosted our presence in the     procurement, construction to operations and
sectors of minerals, electric vehicles, renewable      maintenance.
energy, nature-based solutions, and digital
services.

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                        Another green sector where we are growing our           the divestment process from Multi Tambangjaya
                        presence is nature-based solutions, through             Utama (MUTU), a top miner of high-quality coal.
                        our subsidiary Indika Nature. Indika Nature
                        cultivates an industrial forest certified by the        These were difficult decisions to make, but
                        Forest Stewardship Council (FSC), which provides        were necessary for us to achieve our long-term
                        biomass for carbon-neutral energy generation. In        sustainability goals.
                        2023, Indika Nature completed the construction
                                                                                This move is undoubtedly a massive stride
                        of a wood pellet factory in Paser, East Kalimantan,
                                                                                towards our twin goals of achieving 50% revenue
                        and is set to become the first biomass company
                                                                                from non- coal activities by 2025 and net zero
                        in Indonesia with a comprehensive value chain.
                                                                                emissions by 2050. It also reflects our unwavering
                        It is currently in preparation for its first batch of
                                                                                commitment to our sustainability targets and
                        production, including planned exports to Japan.
                                                                                sends the clear message that Indika Energy is
                        Also in 2023, Indika Nature acquired a stake in         determined to lead by example. Going forward,
                        Natura Aromatik Nusantara, a producer and               we will continue to explore more divestment
                        the fourth- largest exporter of essential oils,         options.
                        based in Solo, Central Java. The acquisition
                        strengthens Indika Nature’s agroforestry portfolio      Decarbonization
                        by expanding into aromatic chemicals, essential
                                                                                Business diversification and divestment are ways
                        oils and natural extracts. Natura Aromatik
                                                                                to make a clean break from carbon-intensive
                        Nusantara is poised to capitalize Indonesia’s rich
                                                                                businesses. But when your goal is to energize a
                        and abundant natural ingredients, products that
                                                                                nation, as Indika Energy’s overarching purpose
                        have a long history in Indonesia’s agricultural
                                                                                has been, such a break is not always possible. And
                        sector. Indika Nature continues to grow its
                                                                                so, these approaches have to be complemented by
                        business through its subsidiary Laras Ekosistem
                                                                                a third approach: decarbonization.
                        Organik by partnering with Slow Forest Coffee and
                        Krakakoa, a producer of sustainable, traditional-       At Indika Energy, we have for years practiced
                        grown coffee and cocoa, leveraging agroforestry         a wide range of decarbonization techniques
                        expertise and social commitment to revolutionize        to reduce our emissions, and we continue to
                        our regenerative farming systems. These actions         refine them while also innovating new ways
                        yield positive effects on the climate, biodiversity,    of minimizing our carbon footprint. At the
                        and profitability, thereby enabling us to contribute    Kideco Jaya Agung (Kideco) mine in Paser, East
                        to societal well-being and livelihoods.                 Kalimantan, we introduced solar panels to
                                                                                generate some of the electricity provided by
                        Technology is another key focus area for Indika
                                                                                diesel generators, and we continue to increase
                        Energy’s diversification. In 2023, our subsidiary
                                                                                tthe share of solar photovoltaic (PV) in our energy
                        Xapiens continued to collaborate with leading
                                                                                mix. The Kideco site also uses electric buses to
                        technology companies including Microsoft,
                                                                                transport employees, cutting off another source
                        Amazon Web Services, Odoo, SANS Cyber
                                                                                of emissions.
                        Security Awareness, and HP, as well as developing
                        applications for clients in the EV industry and         Where we still need to use diesel, we now consume
                        AI-based coal prediction solutions in the mining        B35 biofuel, which contains a 35% blend of palm
                        industry.                                               oil derivative, marking an improvement from
                                                                                the B30 biofuel used previously. Our subsidiary
                        Divestment                                              Tripatra Engineers and Constructors is currently
                                                                                developing biofuel for sustainable aviation fuel
                        In 2023, Indika Energy continued a series of
                                                                                and biogas and biomass for energy generation.
                        ongoing divestments from what has long been
                        our core, and most carbon-intensive, business
                        sector: coal.

                        In 2021, we divested our majority stake in                      I N 2023, W E CO N T I N U E D TO S E E K O U T N E W
                        Mitrabahtera Segara Sejati (MBSS), a major player               O P P O RT U N I T I E S A N D G R O W O U R P R E S E N C E I N
                        in the coal- shipping sector. In 2022, we divested              E X I S T I N G LO W- A N D Z E R O - C A R B O N S E G M E N T S
                        from Petrosea, a leading mining services and
                        engineering provider. And in 2023, we started



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Our solar use has spread from the mine site
                                                             I N 2023 W E R E D U C E D O U R S CO P E 1 A N D 2
to our other facilities, including at our INDY
                                                             E M I S S I O N S BY 11.26% I N 2023, D E M O N S T R AT I N G
Bintaro Office Park just outside Jakarta, and at
                                                             T H AT W E A R E W E L L O N T R AC K (O R B E YO N D) TO
the Interport Business Park in Balikpapan, East
                                                             M E E T O U R 2025 TA R G E T
Kalimantan.

An innovative decarbonization technique we are
increasingly using is the employment of artificial   stunting as a result of poor childhood nutrition
intelligence technology to improve the efficiency    threatens to undermine this boost. In Paser, East
of our processes and operations, ensuring we         Kalimantan, where Kideco operates, for example,
minimize our energy use. This has the added          the stunting prevalence rate increased to 24.9%
benefit of improving workplace safety, an issue of   in 2022 from 23.6% in 2021 (according to Studi
utmost priority to Indika Energy.                    Status Gizi Indonesia).

As a result, in 2023 we reduced our scope 1 and      Our holistic approach involves the government,
2 emissions by 11.26% in 2023, demonstrating         communities in 14 villages, and related
that we are well on track (or beyond) to meet        stakeholders to address the problem. This
our 2025 target. In 2023, we reassessed our ESG      approach includes increasing access to quality
baseline targets, adjusting them to be in line       nutrition, improving health services, providing
with our diversification updates by expanding our    adequate nutrition education, and raising public
boundaries including our new businesses, and         awareness.
coming up with even more ambitious ESG targets       Another of our key initiatives is the Indika
that will have a more meaningful impact.             Energy Mangrove Program in Action (IMPACT),
In the industries in which we operate, sometimes     launched in March 2023. Working via Indika
it’s simply not feasible or possible to cut          Nature alongside the national Peat and Mangrove
emissions entirely, in which case we turn to         Restoration Agency (BRGM), we aim to rehabilitate
nature restoration activities to offset our carbon   and restore 250 hectares of mangroves by 2025
footprint. As of the end of 2023, Kideco has         in Paser, East Kalimantan. Last year alone we
rehabilitated more than 10,000 hectares of river     planted more than 46,600 mangrove trees across
watersheds. Across the Indika Energy Group, we       35 hectares, which is expected to sequester 573
have also planted more than 162,000 mangrove         tonCo2eq annually.
trees, thus helping restore an ecosystem that’s      Mangrove planting not only restores these
an even more effective carbon sink than tropical     unique ecosystems, but also helps the native
rainforests. This replanting not only has the        biodiversity recover. Mangroves are a key nursing
benefit of offsetting an estimated 1,988 tonCO2eq    ground for many of the aquatic species that
of emissions annually, but also contributes to the   fishing communities rely on. They also serve as a
livelihoods of local communities and well-being      buffer against tidal surges, protecting coastlines
of the native biodiversity.                          from erosion and vulnerable communities from
As technologies develop and new opportunities        economic losses.
present themselves, Indika Energy will continue      Crucially, mangroves are also among the most
finding ways to decarbonize.                         efficient stores of carbon in the world: hectare for
                                                     hectare, they store more carbon in their soil alone
Making an Impact                                     than tropical rainforests do in their combined soil
                                                     and vegetation. So, when completed, the IMPACT
In parallel with our diversify-divest-decarbonize
                                                     initiative is expected to sequester the equivalent
approach, in 2023 we also continued to advance
                                                     of more than 18,000 cars’ worth of emissions.
our programs and initiatives aimed at making a
positive impact on the communities where we live     We recognize that our socio-economic
and work.                                            contribution goes beyond local employment
                                                     and procurement and the payment of taxes and
Among these is the Canting (Cegah dan Tangani
                                                     royalties. We identify opportunities to partner
Stunting) program to prevent and tackle
                                                     with and contribute to the communities living
childhood stunting — a perennial problem in
                                                     near our industrial assets. During 2023, we spent
Indonesia. Indonesia has a “demographic bonus”,
                                                     66.1 billion Rupiah on community development
where a large proportion of working-age citizens
drives the country’s productivity and growth. But

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                        programs. This was an 10.43% increase from the          and responsible business model, aligning
                        previous year.                                          our growth with the broader objectives of
                                                                                social and environmental stewardship.
                        We also made a positive impact on the lives of our
                        more than 3,500 employees, and the thousands of
                        family members who depend on them. Protecting           Taking the Lead
                        the health and well-being of all our people is one      Indika Energy also continues to be a
                        of our key priorities. We have always nurtured a        leading player in domestic, regional
                        culture of safety that goes beyond box-ticking and      and international forums promoting
                        looks at ways to anticipate and mitigate potential      sustainability. In 2023, we took part at the
                        risks.                                                  COP28 United Nations climate summit
                                                                                in Dubai. Azis Armand, Vice President
                        While we endeavored to ensure all systems and           Director and Group CEO, participated in a
                        safeguards were in place to keep employees safe         high-level panel discussion titled “Nature
                        on the job, it is with great sadness that we report     Worth Investing In?”, in which he set out
                        that two of our contractors lost their lives in work-   Indika Energy’s ambitions for its nature-
                        related accidents at our operations during 2023.        based solutions businesses through
                        Our deepest sympathies go out to their families,        the three pillars of carbon business,
                        and we have since strengthened measures to              agroforestry and biomass energy.
                        prevent such incidents and rededicated ourselves
                        to the pursuit of the zero-fatality workplace that      Indika Energy also attended the 2023
                        has long been our hallmark.                             World Economic Forum (WEF) in Davos,
                                                                                Switzerland, discussing issues ranging
                                                                                from clean cities to green investments to
                        Impact Through Leadership
                                                                                the voluntary carbon market as a crucial
                        In 2023, Indika Energy took significant strides in      climate solution.
                        enhancing its governance framework, continuing
                        our pursuit of the highest standards of integrity       At the regional level, Indika Energy also
                        and ethical conduct. A key milestone was the            participated in the 2023 ASEAN Business
                        renewal of our anti-bribery management system           Advisory Council (ASEAN-BAC), which
                        ISO 37001 certificate. This accomplishment              discussed the Southeast Asian region’s
                        underscores our unwavering commitment                   energy transition outlook, solutions to
                        to business ethics, demonstrating to our                funding shortages, and opportunities for
                        stakeholders and partners that Indika Energy            cross-border collaboration.
                        always prioritizes transparency and accountability
                        in every aspect of our operations.                      Indika Energy also remains a committed
                                                                                signatory to the United Nations Global
                        Furthermore, we continued integrating ESG               Compact (UNGC), a grouping of forward-
                        aspects into the Key Performance Indicators             thinking companies and governments
                        (KPIs) of our Board, ensuring that our leadership       taking the lead to build a sustainable
                        is directly accountable for driving sustainability      future for all. In 2023, we finalized our
                        progress. Additionally, our Sustainability              UNGC Communication on Progress
                        Committee has played an instrumental role in            Report, detailing and demonstrating our
                        overseeing the implementation of sustainability-        commitment to progress on sustainability
                        related policies, spearheading sustainability           governance, human rights, labor,
                        initiatives, and performance monitoring. Their          environment, and anti- corruption issues;
                        continuous efforts have been central to Indika          the efforts we take to prevent negative
                        Energy’s journey towards a more sustainable             and social and environmental impact;




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our performance indicators, remediation, and         highlight the critical importance of collaborative
reporting mechanisms to address grievances; and      efforts among all stakeholders. Together, we can
reflections on lessons learned.                      accelerate the transition to sustainable energy,
                                                     pushing the boundaries of what is possible.
We also participate in the CDP initiative
(formerly the “Carbon Disclosure Project”),          We are deeply grateful for the unwavering support
which encourages companies and governments           and dedication of all stakeholders involved in this
to commit to environmental transparency and          transition. Your contributions, big and small, have
accountability through disclosure reports. We        been instrumental in propelling us forward. As
submitted our first CDP report in July 2023, on      we embark on this next phase of our journey, your
climate change and water security, and received      continued engagement and partnership will be
scores of C for each.                                key to unlocking new opportunities and achieving
                                                     our collective goals.
Our presence, participation, and leading role in
these forums and initiatives reflect the very real   With our focus on green innovations, energy
progress we are making on our sustainability         efficiency, and collaborative efforts, Indika
journey. Today, we have an ESG rating of BBB         Energy’s journey towards a sustainable energy
from MSCI ESG Ratings and 34.9 (High Risk) from      and climate future will help mitigate climate
Sustainalytics, the two leading ratings agencies,    change and build a resilient world for future
which puts Indika Energy in fifth place among        generations. The opportunity is here now, and it’s
global companies in the coal sector.                 ours to seize. Let’s go.


New Challenges Ahead
2023 marked an inflection point in Indika
Energy’s ongoing sustainability journey. It was
                                                     M. Arsjad Rasjid P.M.
a year in which we not only continued to pursue
                                                     President Director
our wider goals but recommitted ourselves
even further: setting even more ambitious
targets, introducing new parameters to generate
meaningful outcomes, and continuing to deliver
on our promises. With a higher bar to clear, come
new challenges. And that makes us even more
determined than ever to deliver.

As we navigate today’s energy transitions, we face
multifaceted challenges including technological
advancements, regulatory changes, and the
urgent need for widespread adoption of green
energy solutions. These obstacles remind us that
the path to a sustainable energy future is complex
and fraught with uncertainties. Yet, they also




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                        Contents Page
                        Letter from our President Director                  Environmental
                                                                            Emissions and energy
                        Overview                                            Water and effluents
                                                                            Waste management
                        About this Report                                   Biodiversity and land use
                        Report scope and boundary
                        Our material ESG topics
                        Reporting period                                    Social
                        Reporting cycle                                     Developing our human capital
                        Reporting standards                                 Championing diversity, equity, and inclusivity
                        External assurance                                  Promoting safety in the Indika Energy Group
                        Restatement of information                          Community development
                        Feedback channel                                    Human rights and grievance mechanism

                        Key highlights                                      Governance
                        Pathway to net zero                                 Our robust governance structures
                        Our 2025 and 2030 ESG targets                       Operating with ethics and integrity
                        2023 ESG performance
                        Financial performance
                        Creating value for society
                                                                            BOC BOD statement
                        Supporting global efforts towards sustainability
                                                                            Assurance statement
                        Indika Energy at a glance                           Glossary
                        Our journey towards a sustainable future            GRI index
                        Engaging with our stakeholders and creating value   WEF SCM index
                        Our sustainability approach and strategy
                                                                            United Nations of Global Compact index
                        Risk and mitigation
                        Sustainability governance                           Appendix
                        Our external commitments                            Contact us




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About this Report

            I N D I K A E N E R GY U N D E R S TA N D S T H AT S U S TA I N I N G A S U C C E S S F U L B U S I N E S S OV E R T H E
            LO N G T E R M I S A B O U T M O R E T H A N J U S T T H E B U S I N E S S I T S E L F. T H E E N V I R O N M E N TA L ,
            S O C I A L A N D G OV E R N A N C E ( E S G ) A S P E C T S O F W H AT W E D O D E T E R M I N E S U S TA I N A B I L I T Y.
            T H AT I S W H Y W E A R E CO M M I T T E D TO P R OV I D I N G T H E B I G P I C T U R E A B O U T O U R E S G
            CO M M I T M E N T S A N D P R O G R E S S T H R O U G H T H I S A N N U A L R E P O RT I N G P R O C E S S .




                                                                      The corollary to diversifying our portfolio is
Report scope and boundary                                             that we must also reduce our exposure to high-
This report focuses on the ESG topics material to                     carbon businesses in our portfolio. We see this
the Indika Energy Group, as informed by extensive                     as a necessary part of our long-term vision to
consultations with Indika Energy’s internal and                       achieve our sustainability goals and contribute
external stakeholders.                                                to a better planet for all. This was the basis for
                                                                      Indika Energy to start the divestment process of
Unless otherwise stated, we report financial data
                                                                      Multi Tambangjaya Utama (MUTU) in 2023, after
and non-financial data, including environmental,
                                                                      previously divested from Mitrabahtera Segara
social, and governance data from companies in
                                                                      Sejati (MBSS) and Petrosea.
which Indika Energy holds more than 50% of
shares and has management control. These are PT                       For further information regarding each business,
Kideco Jaya Agung (Kideco), PT Indika Indonesia                       please refer to the chapter “Indika Energy at a
Resources (IIR) including PT Multi Tambangjaya                        Glance” within this report.
Utama (MUTU), PT Tripatra Engineering and PT
Tripatra Engineers and Constructors (Tripatra),
PT Interport Mandiri Utama (Interport), PT                            Our material ESG topics [GRI 3-1,
Masmindo Dwi Area (Masmindo), PT Mekko                                3-2, 3-3]
Metal Mining (Mekko), PT Empat Mitra Indika                           We regularly undertake sustainability-related
Tenaga Surya (EMITS), PT Indika Multi Properti                        materiality assessments that consider input
(Indika Nature), PT Ilectra Motor Group (IMG),                        from within our business and other stakeholders.
and PT Xapiens Teknologi Indonesia (Xapiens).                         Materiality assessments are formal exercises that
[GRI 2-2]                                                             involve engaging with stakeholders to find out the
                                                                      relative importance of ESG-related topics to them.

                                                                      We use these assessments into our strategic
                                                                      overview       and     our   sustainability-related
                                                                      disclosures and publications. This assessment
                                                                      identifies topics that are material to our
                                                                      development, performance and current position
                                                                      as well as for our future opportunities.
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                               During 2023, we undertook materiality assessments with internal and external stakeholders to validate whether our
                               current material topics continue to be appropriate and to identify emerging issues.


                               2023 materiality assessment process

                                          DESK RESEARCH                                 S TA K E H O L D E R E N G AG E M E N T           FINAL SCORING


                                         We considered our original                     We engaged with our external and                  The Sustainability team and
                                         material topics and assessed                   internal stakeholders including                   Committee reviewed the findings.
                                         the inclusion of new topics and/               government, investors, banks,                     Where interest was expressed,
                                         or sub-topics through looking at               insurance companies, media,                       we shared the final list of topics
                                         stakeholders’ areas of interest                customers, industry associations,                 with participating stakeholders.
                                         and the materiality assessments                and NGOs as well our internal                     Work is underway to align our
                                         undertaken by our peers.                       stakeholders which cover                          strategy and communications with
                                                                                        employee representatives.                         the updated identified topics.




                               We finalized high-priority ESG topics that are material to our business and stakeholders. These same material topics are
                               also of medium and high impact on our business, as shown in the following graph:



                 HIGH                                                                                                  OCCUPATIONAL HEALTH AND SAFETY
                                                                                                                       CORPORATE GOVERNANCE
                                                                                  GHG EMISSIONS                        LOCAL COMMUNITIES
                      IMPORTANCE TO STAKEHOLDERS




                                                                                  WASTE MANAGEMENT                     DIVERSITY, INCLUSION, AND EQUAL
                                                                                                                       OPPORTUNITY



                                                                                   LAND USE AND BIODIVERSITY
                                                                                   EMPLOYMENT
                                                                                   GRIEVANCE MECHANISM                 WATER AND EFFLUENTS
                                                   RIGHTS OF INDIGENOUS PEOPLES
                                                                                   ECONOMIC PERFORMANCE                ENERGY
                                                                                   TRAINING AND EDUCATION
                                                                                   INDIRECT ECONOMIC PERFORMANCE



                                                   SUPPLIERS AND VALUE CHAIN
                                                   FREEDOM OF ASSOCIATION AND      INNOVATION AND TECHNOLOGICAL
                                                   COLLECTIVE BARGAINING           ADVANCEMENTS                        TAX GOVERNANCE
                                                   MATERIALS                       ANTI-COMPETITIVE BEHAVIOR
                                                   MARKET PRESENCE




                               LOW                                                IMPACT TO BUSINESS                                             HIGH




12
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                                                                                        SUSTAI NABI LI TY RE PO RT 2 0 2 3




⚫   Emissions and energy [GRI 302, 305]             ⚫   Diversity, inclusion, and equal opportunity
    Addresses the company’s energy                      [GRI 405]
    consumption in various forms, such as fuel,         Addresses the company’s approach to
    electricity, heating, cooling, or steam, as         promoting diversity, eliminating gender
    well the measurement and management                 bias, and supporting equal opportunity
    of greenhouse gas emissions (including              at work. Includes the diversity of its
    fugitive emissions associated with coal             governance bodies and its employees
    mining), ozone-depleting substances (ODS),          as well as fairness in remuneration.
    nitrogen oxides (NOx), and sulfur oxides
    (SOx), among other significant air emissions.   ⚫   Occupational health and safety [GRI 403]
                                                        Addresses how the company provides
⚫   Water and effluents [GRI 303]                       healthy and safe work conditions
    Addresses impacts the company has                   for its workforce, which involve both
    on the water resources from which it                prevention of physical and mental harm,
    withdraws and consumes and to which                 and promotion of workers’ health.
    it discharges for its own operations.
                                                    ⚫   Local communities [GRI 413, 414]
⚫   Waste management [GRI 306]                          Addresses the economic, social, cultural,
    Addresses the impacts of the waste                  and/or environmental impacts that the
    generated in the company’s operations and           company’s activities and infrastructure
    how the company manages risks related               can have on local communities.
    to the environment and human health
    from waste generation and disposal.             ⚫   Economic performance [GRI 201, 203, 207]
                                                        Addresses the economic value generated
⚫   Land use and biodiversity [GRI 304]                 and distributed by the company, which
    Addresses the company’s strategy to                 include its defined benefit plan obligation,
    minimize the impact of its business                 and the financial implications of climate
    activities on land and to protect                   change. It also addresses indirect economic
    biological diversity to ensure the survival         impacts that have an influence on the
    of plant and animal species, genetic                local community’s wellbeing and longer-
    diversity, and natural ecosystems.                  term prospects for development.

⚫   Employment [GRI 401, 402, 404, 406, 407]        ⚫   Corporate governance [GRI 206, 408, 409,
    Includes the company’s approach to                  410, 411, 415, 416]
    employment or job creation: hiring,                 Addresses the framework for attaining
    recruitment, retention and related practices,       the company’s objectives, encompassing
    and the working conditions it provides.             practically every sphere of management,
    While training and education addresses              from action plans and internal controls to
    the company’s approach to training and              performance measurement and corporate
    upgrading employee skills, and performance          disclosure. This also addresses the company’s
    and career development reviews.                     approach to upholding responsible business
                                                        practices: business ethics, anti-corruption,
                                                        human rights and grievance mechanisms.




                                                                                                                       13
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P T I N D I K A E N E R GY T B K .




                        Reporting period [GRI 2-3]                              External assurance [GRI 2-5]
                        Unless otherwise stated, the ESG disclosures            We have engaged SGS Indonesia to provide
                        contained in this report pertain to the period from     independent assurance of this report’s GRI
                        1 January to 31 December 2023. Where relevant,          compliance. The details of assurance engagement
                        we have supplemented the data and information           can be found in the Assurance Statement.
                        for 2022 to provide more context.

                                                                                Restatement of information [GRI
                        Reporting cycle [GRI 2-3]                               2-4]
                        We are committed to publishing our Sustainability       We report several restatements, which include:
                        Report on an annual basis.
                                                                                ⚫   2022 Scope 1 and 2 GHG emissions data

                        Reporting standards                                     ⚫   2022 energy consumption data
                        This Sustainability Report was prepared in
                                                                                In 2023, we conducted an exercise to recalculate
                        accordance with POJK No. 51/POJK.03/2017,
                                                                                our 2022 GHG emissions and energy consumption
                        the Global Reporting Initiative (GRI) 2021 (in
                                                                                to reflect our strategic pivots more accurately,
                        accordance), and Core Metrics of the WEF
                                                                                including the new businesses (EMITS, Ilectra
                        Stakeholder Capitalism Metrics. The content of
                                                                                Motor Group, Masmindo, Mekko, Indika Nature,
                        this report also addresses the United Nations’
                                                                                Xapiens) and omitting calculations from a
                        Sustainable Development Goals (SDGs) and
                                                                                divested entity (Petrosea). We also used a more
                        the Ten Principles of the United Nations Global
                                                                                standardized calculation methodology for the
                        Compact (UNGC), to which Indika Energy is a
                                                                                two metrics.
                        signatory.

                        Indika Energy is a signatory to the principles of the   Feedback channel [GRI 2-3]
                        UNGC, and this Sustainability Report outlines our
                                                                                Your feedback is important to us. Please reach out
                        support for its development objectives and our
                                                                                to us with your comments or questions on this
                        work on implementing the UNGC’s 10 principles.
                                                                                report and our sustainability performance.
                        At the start of 2022, we signed a letter of
                                                                                sustainability@indikaenergy.co.id
                        commitment to incorporate the World Economic
                        Forum (WEF) Stakeholder Capitalism Metrics
                        (SCM) into our ESG reporting, demonstrating
                        our endeavors to increase transparency and
                        accountability.




14
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                                                                                                                                       SUSTAI NABI LI TY RE PO RT 2 0 2 3




                        Key Highlights

                                                 AT I N D I K A E N E R GY W E H AV E P U T T H E N E T Z E R O T R A N S I T I O N AT T H E H E A RT
                                                 O F O U R B U S I N E S S S T R AT E GY: CO M B I N I N G I N V E S T M E N T S I N B U S I N E S S E S
                                                 T H AT E N A B L E T H E E N E R GY T R A N S I T I O N W I T H AC T I O N S TO D E C A R B O N I Z E
                                                 O U R O P E R AT I O N S A N D VA LU E C H A I N S .




                        Pathway to net zero
                        We are committed to responsibly managing our portfolio and carbon footprint in line with our scope 1 and 2
                        emissions reduction targets, 25% by the end of 2025 and 33% by the end of 2030 against our 2020 baseline,
                        with a longer-term ambition of achieving net zero emissions by the end of 2050.

                        To achieve these, we have mapped our carbon footprint across our value chain and business process to
                        ensure we have a clear understanding of where to focus our efforts, which informs our pathway to net zero.


                                      SCOPE 1&2 GHG EMISSIONS PROJECTIONS
                                      in kt CO2eq                                                                                  Historical scope 1&2 emissions
                                      1,203 1,201                                                                                  Projection of scope 1&2 emissions
                                                  1,161                                                                            Carbon offsets (Illustrative)
                                                        1,030      2025 Target                                                     Path to net zero emissions by 2050
                                                                   905 ktCO2e                             2030 Target
                                                                                                          810 ktCO2e
                                                                              By 2025, we will           By 2030, we will
                                                                            reduce our emissions

INDIKA ENERGY
                                                                                                       reduce our emissions
                                                                                  by 25%                     by 33%
                                                                                                                                                   2050 Ambition
NET ZERO                                                                                                                                          Net Zero Emissions

ROADMAP
                                     2020 2021      2022 2023                    2025                          2030
                                                                                                                                                            2050
Emissions in 2023
                                      BUILDING FOUNDATION                      STRENGTHENING PRACTICES                          ACCELERATING GROWTH
Scope 1&2 GHG Emissions
(kt CO2eq)                               Supporting energy                            Reducing carbon footprint of              We cater the nation’s strategic
1,030                                    transition                                   our operations                            necessities to enable
2020 (baseline) 1,203                      Investing in low-carbon                      Implementing digital                    sustainable development while
                                           economy                                      technology in mining                    taking care for the environment
                                                                                        operations                              and making positive di�ference
                                           Divesting coal-related                                                               to the society
Scope 1&2 GHG Emissions
Intensity                                  assets                                        Investing in EVs and
(ton CO2eq / ton coal                                                                    electrification of equipment             By 2050, we expect to be
                                                                                                                                 net zero
production)                              Partnering to reduce the
0.031                                    carbon footprint across
                                         our value chains
                                                                                         Installing solar PV and
                                                                                         battery storage system
2020 (baseline) 0.033
                                           Measuring scope 3
                                           emissions                                     Adopting the use of B35
                                                                                         diesel
                                           Developing carbon
                                           reduction program with                        Conducting reclamation
                                           contractors                                                                                                                  15
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P T I N D I K A E N E R GY T B K .




                                                                                     Indika Energy
                                                                                     2025 and 2030
                                                                                     ESG Targets
                        SCOPE 1 AND 2 EMISSIONS
                        (Relative to 2020 baseline)


                                     25%                   33%                   50%               55%               10%                 25%
                                     Reduce scope 1        Reduce scope 1        Reduce scope 1    Reduce scope 1    Reduce scope 1      Reduce scope 1
                                     and 2 emissions       and 2 emissions       and 2 emissions   and 2 emissions   and 2 emissions     and 2 emissions
                                     by 25% in 2025        by 33% in 2030        intensity per     intensity per     intensity per ton   intensity per ton
                                                                                 revenue by 50%    revenue by 55%    coal production     coal production
                                                                                 in 2025           in 2030           by 10% in 2025      by 25% in 2030

                        ENERGY MANAGEMENT
                        (Relative to 2020 baseline)


                                     30%                         35%
                                     Increase % RE               Increase % RE
                                     share in the energy         share in the energy
                                     consumption mix to          consumption mix to
                                     30% by 2025                 35% by 2030



                        WATER MANAGEMENT
                        (Relative to 2020 baseline)


                                     30%                         32%
                                     Reduce water                Reduce water
                                     withdrawal intensity        withdrawal intensity
                                     per revenue by 30%          per revenue by 32%
                                     by 2025                     by 2030



                        WASTE MANAGEMENT
                        (Relative to 2020 baseline)


                                     40%                   45%
                                     Divert 40%            Divert 45% of
                                     of waste from         waste from
                                     landfill by 2025       landfill by 2030



                        LAND AND BIODIVERSITY
                        (Relative to 2020 baseline)


                                     20%
                                     Increase land
                                     reclamation
                                     area by 20% by
                                     2025




16
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                                                                                               SUSTAI NABI LI TY RE PO RT 2 0 2 3




  Our New Ambition: A Business
  Model Compatible with a
  Sustainable World
  We continue to track and assess ESG metrics applicable to Indika Energy’s sustainability goals, and have revisited our
  targets for a balance between ambitious and realistic.

  In 2023, we reassessed our scope 1 and 2 ESG baseline targets, expanded our data boundaries including our new business
  units and ventures, and came up with even more ambitious ESG targets that will have a more meaningful impact. We
  also identifies decarbonization initiatives for scope 1 and 2 across the Group’s, and sequence it into a roadmap in line
  with Indonesia’s and Indika Energy’s considerations.




LOCAL COMMUNITIES                                            BUSINESS ETHICS


     1%                                                             80%                         100%
     1% EBIT spent on                                               80% of employees attend     100% of employees to
     community development                                          code of business conduct    attend code of business
     every year                                                     training by 2025            conduct training by 2030


                                                                    100%                        100%
                                                                    100% of board members       100% of board members
HEALTH AND SAFETY                                                   to attend code of           to attend code of
                                                                    business conduct            business conduct
                                                                    training by 2025            training by 2030
     Zero
     Zero fatalities every
     year for employees and
     contractors
                                                             CORPORATE GOVERNANCE



DIVERSITY AND INCLUSION                                             30%
                                                                    30% (by weight) of board & senior
                                                                    management evaluation KPIs tied to ESG
                                                                    topics by 2025
     20%                      25%
     20% women in             25% women in
     workforce by 2025        workforce by 2030


     15%                      20%
     15% women in senior      20% women in senior
     management by 2025       management by 2030




                                                                                                                              17
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P T I N D I K A E N E R GY T B K .




                           2023 ESG Performance
                                   W E TA K E O U R R E S P O N S I B I L I T I E S TO O U R P E O P L E , S O C I E T Y A N D E N V I R O N M E N T S E R I O U S LY,
                                   A N D A L I G N O U R AC T I V I T I E S W I T H T H E R E L E VA N T N AT I O N A L A N D I N T E R N AT I O N A L S TA N DA R D S ,
                                   I N C LU D I N G T H E U N I T E D N AT I O N S ’ S U S TA I N A B L E D E V E LO P M E N T G OA L S ( S D G S ) , T H E T E N
                                   P R I N C I P L E S O F T H E U N I T E D N AT I O N S G LO B A L CO M PAC T ( U N G C ) , A N D T H E W E F S TA K E H O L D E R
                                   C A P I TA L I S M M E T R I C S ( S C M ) .


                 SCOPE 1 GHG EMISSIONS                                                                ENERGY INTENSITY
                 (TONCO2EQ)                                                                           (GIGAJOULE/TON COAL PRODUCTION)

                                3.50%                                                                                                15.13%
               1,197,167




                                                 11.41%                                                               1.69%




                                                                                                                                    0.44
                              1,155,280



                                                1,023,433




                                                                                                      0.39



                                                                                                                    0.38
                                                                11.41%                                                                            15.13%


                2021           2022              2023                                                 2021           2022           2023

                 SCOPE 2 GHG EMISSIONS                                                                 ENERGY CONSUMPTION
                 (TONCO2EQ)                                                                            (GIGAJOULE)


                                                19.95%

                               41.81%
                                                                                                      20,938,258
                                                6,576




                                                                                                                     26.39%          4.01%
                              5,482




                                                                                                                                   14,794,645
                                                                                                                    15,413,456




                                                                19.95%                                                                             4.01%
                3,866




                2021           2022             2023                                                 2021            2022          2023

                 SCOPE 1 AND 2 GHG EMISSIONS INTENSITY                                                SCOPE 1 AND 2 GHG EMISSIONS INTENSITY
                 (TONCO2EQ/ TON COAL PRODUCTION)                                                      (TONCO2EQ/ USD MN REVENUE)


                                                  6.67%
                               29.94%
                                                                                                                                      23.17%
                                                0.031




                                                                                                       398




                                                                                                                     31.07%
                                                                                                                                    338
                              0.029




                                                                                                                    274




                                                                 6.67%                                                                            23.17%
                0.022




18
               2021            2022              2023                                                  2021          2022           2023
Page 19
WATER WITHDRAWAL
(ML)
                                                                                 SUSTAI NABI LI TY RE PO RT 2 0 2 3
           26.69%




           4,896.11
3,864.73

                      42.20%




                      2,829.71
                                 42.20%   EMPLOYEE FATALITIES AT MANAGED OPERATIONS
                                          (LIVES)


2021        2022       2023               0 FATALITY RECORD
                                          MAINTAINED
WATER WITHDRAWAL INTENSITY
(ML/KILOTON COAL PRODUCTION)              2023       2022         2021

           30.41%
                                          CONTRACTOR FATALITIES AT MANAGED OPERATIONS
                                          (LIVES)
           0.112




                        31.81%
0.086




                                                                            2
                                                              1
                      0.077




                                 31.81%
                                                                                  1
                                               0

 2021       2022      2023                2021       2022            2023

WASTE REUSED AND RECYCLED                 COMMUNITY INVESTMENT SPENDING [GRI 201-1]
(TON)                                     (% OF EBIT)
           117.75%
                        3.50%                                       1.45%
                                           1.24%
                      5,238
           5,428




                                                      0.38%



                                 3.50%                                          1.45%
                                                                                of EBIT
2,493




2021        2022      2023                2021       2022          2023

                                          COMMUNITY DEVELOPMENT
RECLAMATION AREA
                                          (NUMBER OF LIVES IMPACTED)
(HECTARE)

                         3.96%                                    50.96%
            11.88%
                                                                  400,533
                      5,879.42




                                                    35.45%
           5,655.42
5,054.73




                                                    265,318




                                                                                50.96%
                                          195,880




                                 3.96%


2021        2022       2023               2021       2022         2023                                          19
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P T I N D I K A E N E R GY T B K .




                           Financial                          CORE PROFIT (LOSS) [GRI 201-1]

                           Performance
                                                              (USD MILLION)


                                                                        128.73%




                                                                        521.20
                                                                                    72.02%
                REVENUE [GRI 201-1]
                (USD MILLION)




                                                                                   145.83
                                                                                             72.02%




                                                              227.86
                               41.24%
                              4,334.91




                                         30.18 %
                                                               2021      2022      2023
                3,069.16




                                         3,026.84




                                                               *) Core Profit (Loss) is defined as net profit (loss)
                                                               attributable to the Owner of the Company for the
                                                    30.18 %    year, excluding: 1) Amortization of Kideco and MUTU
                                                               intangible assets; 2) Changes in the fair value of
                                                               contingent consideration obligations related to the
                                                               acquisition of additional shares in Kideco in 2023.
                2021           2022      2023

                OPERATING COST [GRI 201-1]                    ADJUSTED EBITDA [GRI 201-1]
                (USD MILLION)                                 (USD MILLION)

                                                                         32.51%
                               65.56%
                                                                        1,299.19
                              240.73




                                                                                    69.59%
                                                              977.51




                                           0.39%
                145.40




                                                                                   395.13




                                                                                             69.59%
                                         239.78




                                                    0.39%


                 2021          2022      2023                 2021       2022        2023

                GROSS PROFIT [GRI 201-1]                      NET PROFIT (LOSS) [GRI 201-1]
                (USD MILLION)                                 (USD MILLION)


                               58.02%                                  684.27%
                                                                        452.68
                              1,450.81
                918.12




                                          61.95%                                   73.56%
                                                    61.95%                                   73.56%
                                         551.98




                                                              57.72
                                                                                   119.68




20
                 2021          2022       2023                  2021    2022        2023
Page 21
                                                                                           SUSTAI NABI LI TY RE PO RT 2 0 2 3




Creating Value for Society
The energy we produce at Indika Energy Group
helps power economic growth and improves the
                                                       Indirect economic impact
quality of life for the people of Indonesia. Our
                                                       Employment [203-1b]
business activities make significant contributions
to the national and local economies in which           Employment is one of the most obvious signs
we operate. The most significant derive from           of the economic benefits we generate. We
employment, procurement, payment of taxes and          provide families with their livelihoods via
royalties, and community development, but we           direct employment at our operations and
also try to ensure that we create as much value        indirect employment, via contractors and our
for them as possible all along our value chain. Our    use of local suppliers. We prioritize employing
aim is to minimize dependency on our operations,       people from the regions close to our assets. This
and promote healthy, sustainable communities           extends to investing in education projects, skills
with diversified and resilient local economies.        development programs, and apprenticeships
This is particularly important as changing market      for local people. This also creates jobs, drives
conditions may continue to affect our business.        economic development and social empowerment,
                                                       and generates revenue for national and
                                                       subnational governments. This year, we provided
Direct economic value generated                        compensation and benefits to more than 3,500
and distributed                                        employees across the nation. Our local hires in
The economic value obtained by the Company             2023 amounted to 40.40% of our total employees.
during the reporting period (on accrual basis), was
                                                       We emphasize diversity in our training initiatives,
distributed to stakeholders interests as needed.
                                                       particularly given our own limited capacity to
In 2023, we recorded USD 119.7 million net profit.
                                                       offer additional employment in the current
Disclosure information related to the economic
                                                       economic climate. We also seek to work with
value generated is as stated in Financial highlight.
                                                       local governments, education authorities and
We paid all relevant taxes on time, including          community representatives to identify skill gaps
Employee Income Tax, Corporate Income Tax,             and find the best ways to meet the needs and
Period VAT, royalties and Land & Building Tax. We      expectations of our stakeholders.
also submitted annual and monthly tax return
documents (SPT) and other relevant documents           Local procurement [203-1b]
to the regulatory agency on time [GRI 207-1]. In
                                                       We use local suppliers whenever we can, to reduce
2023, we contributed USD 1,333.2 million in taxes
                                                       our costs and provide our host communities
and royalties to the government..
                                                       with alternative employment opportunities.
Indika Energy Group complies with all applicable       Our development of local procurement bases
laws and regulations related to tax payments as        also helps local governments to fulfill their own
a part of our efforts to support state financing       development objectives. Some of the regions
and national development. We do not receive            where we operate lack strong local businesses. We
financial assistance from the Government [GRI          want to help these businesses grow and become
201-4], although the government does offer             competitive. Aside from that, we work with our
financial assistance to buyers of ALVA, our electric   local suppliers, nurturing them to comply with
two-wheelers, in a bid to push electric vehicle (EV)   ESG standards
adoption in Indonesia. [GRI 201-4]
                                                       Our community and procurement teams work
                                                       together to identify needs and develop support
                                                       programs for local businesses, to help them meet
                                                       our quality standards and expectations with
                                                       regard to conduct. We offer targeted business
                                                                                                                          21
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P T I N D I K A E N E R GY T B K .




                        management training, and future business        microeconomic development programs
                        within specific limits.                         and working with local suppliers. [203-1,
                                                                        203-1c].
                        Community development [203-1b]
                        Our community development programs              Market share
                        are an integral part of our community           We are also committed to ensuring
                        and stakeholder engagement strategies.          energy stability in Indonesia. Through
                        We design our programs to help reduce           our subsidiaries Kideco Jaya Agung, we
                        dependency on our operations, encourage         produced 30.1 million metric tons of coal in
                        self-reliance and contribute to sustainable     2023, with 29.7% allocated for the Domestic
                        growth in our local regions. We aim for the     Market Obligation (DMO) in Indonesia.
                        greatest impact against both short- and         This exceeds the 25% DMO required by the
                        long-term objectives and are aligned with       government. Exports of coal produced by
                        each asset’s overall operational strategy,      Kideco in 2023 went to China, South Korea,
                        closure planning and local and/or national      India, the Philippines, Malaysia, Japan,
                        development objectives.                         Taiwan, and Singapore. [GRI 2-6]

                        The programs must have input from those
                        stakeholders identified during stakeholder
                        assessment. They help to further improve                   E C O N O M I C I M PAC T
                        the prosperity and resilience of our local
                        communities by supporting access to basic                  USD 119.7 million
                        services, such as education and health.
                                                                                   NET PROFIT
                        In 2023, we transformed communities
                        through our community development
                        programs, on which we spent more than
                                                                                   USD 1,333.2 million
                        IDR 66.1 billion. With this spending, we                   TA X CO N T R I B U T I O N TO T H E G OV E R N M E N T
                        are able to empower our communities
                        by providing access to health care and                     IDR 66.1 billion
                        education, implementing environment
                        conservation programs, and enhancing the                   CO M M U N I T Y I N V E S T M E N T S P E N D I N G

                        community’s financial independence. We
                        provide skill enhancement and business
                        opportunity creation in surrounding
                        communities. [GRI 203-2]                        N O N E C O N O M I C I M PAC T

                        Infrastructure                                  3,500+ lives
                        Many of our operations are located in           I M PAC T E D F R O M E M P LOY E E WAG E S A N D B E N E F I T S
                        remote areas; here we can contribute
                        by sharing infrastructure, such as roads,       1,400+
                        water, sanitation projects and electricity,
                                                                        LO C A L H I R E S AC R O S S I N D I K A E N E R GY G R O U P
                        with communities. This gives local people
                        safer and faster access to other towns and
                                                                        400,000+
                        markets, meets local water needs, and
                        facilitates access to education and health      B E N E F I C I A R I E S O F CO M M U N I T Y D E V E LO P M E N T P R O G R A M S
                        care. [203-1b]

                        We believe there is a direct link between
                        building infrastructure and general
                        community development. Contributions
                        to local infrastructure have a significant
                        impact on long-term growth and help to
                        alleviate poverty. This includes pro-bono
                        development of physical infrastructure
                        such as road repair, bridges, schools as well

22
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                                                                                                                              SUSTAI NABI LI TY RE PO RT 2 0 2 3




Supporting global efforts towards sustainability
Indika Energy continues to be a leading player in domestic, regional and international forums
promoting sustainability. In 2023, we took part at the COP28 United Nations climate summit in
Dubai, discussing investments in nature-based solutions; at the World Economic Forum (WEF) in
Davos, Switzerland, discussing issues ranging from clean cities to green investments to the voluntary
carbon market as a crucial climate solution; and at the ASEAN Business Advisory Council (ASEAN-
BAC), looking at the Southeast Asian region’s energy transition outlook, solutions to funding
shortages, and opportunities for cross-border collaboration.




Azis Armand, Vice President and Group CEO of Indika Energy
“ T H E P R OAC T I V E E N G AG E M E N T O F B U S I N E S S E S A N D CO L L A B O R AT I V E E N D E AVO R S A M O N G D I V E R S E
S TA K E H O L D E R S A R E I M P E R AT I V E FO R T H E P R O S P E R I T Y O F N AT U R E- BA S E D I N V E S T M E N T S , Y I E L D I N G B E N E F I T S
F O R B OT H T H E G LO BA L C L I M AT E A N D LO C A L E CO SYS T E M S . I N D I K A E N E R GY I S CO M M I T T E D TO E X PA N D
I T S LO W- C A R B O N B U S I N E S S E S BY I N V E S T I N G I N N AT U R E- BA S E D S O LU T I O N S S U C H A S C A R B O N B U S I N E S S ,
AG R O FO R E S T RY, A N D B I O M A S S E N E R GY. TO G E T H E R , W E C A N C R E AT E A S U S TA I N A B L E F U T U R E W H E R E N AT U R E
A N D H U M A N I T Y T H R I V E I N H A R M O N Y.”




                                                                                                                                                                  23
Page 24
In Indika Nature's biodiverse realm, hornbill serves as a
poignant emblem of endangered biodiversity, emphasizing
the pressing necessity for conservation endeavors to
safeguard its habitat and secure its existence.
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                                                                                                                        SUSTAI NABI LI TY RE PO RT 2 0 2 3




01.1
—
Indika Energy at a Glance
            I N D I K A E N E R GY WA S E S TA B L I S H E D O N O C TO B E R 19 T H , 2000 , A N D L I S T E D O N T H E I N D O N E S I A
            S TO C K E XC H A N G E ( I DX ) U N D E R T H E T I C K E R CO D E I N DY I N 2008. FO R N E A R LY A Q U A RT E R O F A
            C E N T U RY, O U R T R AC K R E CO R D H A S B E E N O N E O F E X E M P L A RY E N V I R O N M E N TA L , S A F E T Y A N D
            R E G U L ATO RY CO M P L I A N C E , A S W E L L A S S T R O N G S TA N DA R D S O F CO R P O R AT E G OV E R N A N C E , I N
            L I N E W I T H O U R R E S P O N S I B I L I T I E S A N D CO M M I T M E N T TO A L L S TA K E H O L D E R S .




As the world moves towards a low-carbon economy, we continue to be focused on supporting the energy
needs of today whilst investing in a transition for tomorrow that is just, equitable and sustainable. The world
we envision will look very different, with new sources of energy and even greater levels of connectivity.

Positioned as Indonesia’s leading diversified investment company, Indika Energy continues to expand
its wide-ranging portfolio with a mix of investments in businesses with strong growth opportunities,
transformative potential, and prospects for empowering society. Today, we are involved in logistics and
infrastructure, minerals, nature-based solutions, renewable energy, electric vehicle ecosystem, and digital
technology — all part of our commitment to energize Indonesia for a sustainable future. [GRI 2-1, 2-6]

Our commitment to ESG principles underscores our belief in the interconnectedness of environmental
stewardship, social progress, and sound governance. Through transparent reporting and stakeholder
engagement, we strive to uphold the highest standards of corporate citizenship, driving positive change
and leaving a lasting impact for good on both society and the environment.




                                                                                                                                                       25
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P T I N D I K A E N E R GY T B K .




                                         Our operations
                                         Indika Energy is headquartered in Jakarta, with offices at
                                         Graha Mitra on Jl. Jendral Gatot Subroto Kav. 21, Jakarta, and at
                                         INDY Bintaro Office Park, Tangerang, with operational areas
                                         spread across Indonesia, including on the islands of Sumatra,
                                         Kalimantan, Java, Bali, Sulawesi, and Papua. As of the end
                                         of 2023, the Company had no operational activities outside
                                         Indonesia. [GRI 2-1]




                                                                                                                                               11
                                                  54                                                        9                                 10 1
                                                       22                                                                                         21   6




                                                                                       7
                                                                           14 13
                                                                                   2        5          16
                                                                                       15                             17
                                                                                                            12
                                                                                                                           20
                                                                                                                                         18




 1        Kideco Jaya Agung, East Kalimantan                                       8        Masmindo Dwi Area, South Sulawesi

 2        Tripatra Salak Project, West Java                                        9        Mekko Metal Mining, West Kalimantan

 3        Tripatra BP Tangguh Project, West Papua                                  10       Indika Nature Jaya Bumi Paser, East Kalimantan

 4        Tripatra Duri Project, Riau                                              11       Indika Nature Telaga Mas Kalimantan, East Kalimantan

 5        Cirebon Electric Power and Cirebon Energi Prasarana, West Java           12       Indika Nature Natura Aromatik Nusantara, Central Java

 6        Interport Fuel Tank Terminal, East Kalimantan                            13       ALVA Manufacturing Facilities, West Java

 7        Interport Patimban Project, West Java                                    14       ALVA Experience Centre, Jakarta




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                                                                                         SUSTAI NABI LI TY RE PO RT 2 0 2 3




                                    19

                                                             3


 8




15   ALVA Experience Centre Bandung, West Java       19   EMITS Sampoerna Kayoe Project, North Maluku

16   ALVA Experience Centre Semarang, Central Java   20   EMITS Solusi Bangun Indonesia Project, East Java

17   ALVA Experience Centre Surabaya, East Java      21   EMITS Jaya Bumi Paser Project, East Kalimantan

18   ALVA Experience Centre Denpasar, Bali           22   EMITS EcoOils Project, Riau




                                                                                                                        27
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P T I N D I K A E N E R GY T B K .




                          Supported by our values                                Our purpose
                          ⚫    Unity in Diversity: Viewing diversity as an       Energizing Indonesia for a sustainable future
                               asset to the company and accepting, valuing,
                               completing, and strengthening one another
                               as a solidly unified entity.
                                                                                 ..influences our strategic
                                                                                 commitments
                          ⚫    Integrity: Honest with oneself, others and        at least 50% of our revenue in 2025 will come from
                               one’s work at every moment by upholding           non-coal streams
                               prevailing ethical standards and legal norms.
                                                                                 achieving carbon neutrality by 2050 or sooner
                          ⚫    Teamwork: Actively contributing and
                               collaborating based on trust and shared
                               interests rather than personal interests.         …which we deliver through our
                                                                                 business model
                          ⚫    Agility: Consistently demonstrating resilience    Amidst our steadfast dedication to ensuring
                               and showing flexibility as well as adaptability   energy fulfillment and security for Indonesia’s
                               through innovative entrepreneurship.              development, our business also extends across
                                                                                 diverse sectors, from energy markets to the non-
                          ⚫    Achievement: Achievement as the measure
                                                                                 coal sector. Embracing logistics and infrastructure,
                               of success and the motivation to do what is
                                                                                 minerals, nature-based solutions, renewable
                               best for the company.
                                                                                 energy, electric vehicle ecosystem, and digital
                          ⚫    Social Responsibility: Highly concerned           technology, we are helping shape a sustainable
                               to the environment and community and              and innovative landscape for tomorrow. [GRI 2-1]
                               contributing added value to the society.



INDIKA ENERGY STRIVES TO CONTRIBUTE TO INDONESIA’S ENERGY
TRANSITION AND ECONOMIC DEVELOPMENT
                                                                                                                           Logistic assets, EPC services,
                                                                                 Logistics                                  infrastructure, fuel storage
Field exploration of coal resources,
                                                                                 & infrastructure
production and trading                                Energy
                                                   resources
                                                                                             Minerals                     Exploration of gold and other
                                                                                                                                   metals and minerals


                                                                                                    Green          Renewable energy, green economies
                                                                                                    business

EPC services in oil & gas             Energy
                                     services
                                                                                                    Electric             EV mobility and its ecosystem
                                                                                                    vehicle


                                                                                            Digital ventures                     Digital transformation
                                                                                                                                           and analytics
Coal-fired power plant                               Energy
                                             infrastructure
                                                                                  Others                                 Business incubation to develop
                                                                                                                              emerging new businesses


 Note: MBSS and Petrosea have been divested in 2021 and 2022 consecutively




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                                                                                    SUSTAI NABI LI TY RE PO RT 2 0 2 3




Energy
Key offerings: Exploration, production, processing,
energy services and electricity generation

Companies: PT Kideco Jaya Agung (Kideco), PT
Indika Indonesia Resources (IIR), PT Tripatra
Engineering and PT Tripatra Engineers and
Constructors (Tripatra)


Logistics and Infrastructure
Key offerings: Roads, ports, and coal barges for
transport to both domestic and export customers

Companies: PT Interport Mandiri Utama
(Interport), PT Kariangau Gapura Terminal Energi
(KGTE)


Minerals
Key offerings: Gold and bauxite mining

Companies: PT Masmindo Dwi Area (Masmindo),
PT Mekko Metal Mining (Mekko), PT Rockgeo
Energi Nusantara


Green Businesses
Key offerings: Renewable energy, nature-based
solutions

Companies: PT Empat Mitra Indika Tenaga Surya
(EMITS), PT Indika Multi Properti (Indika Nature)


Electric Vehicle
Key offerings: EV ecosystem

Companies: PT Ilectra Motor Group (ALVA), PT
Mitra Motor Group (INVI, Foxconn Indika Motor
- FIM), PT Kalista Nusa Armada (Kalista), PT
Industri Baterai Nusantara


Digital Ventures
Key     offerings:     Implementing       digital
transformation across the Group and for external
clients

Companies: PT Xapiens Teknologi Indonesia
(Xapiens)

                                                      ALVA Manufacturing, located in Bekasi, West Java, has an
                                                      annual production capacity of 100,000 electric two-wheelers.




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P T I N D I K A E N E R GY T B K .




                        01.2
                        —
                        Our Journey Towards
                        a Sustainable Future
       T H R O U G H O U T 2 0 2 3 , W E M A D E S U B S TA N T I A L S T R I D E S I N G R O W I N G T H E LO W- C A R B O N B U S I N E S S E S I N O U R
       P O R T F O L I O, F R O M E V S TO N AT U R E- BA S E D S O LU T I O N S TO R E N E WA B L E E N E R GY. T H E S E V E N T U R E S FO R M A
       C R U C I A L PA R T O F O U R S T R AT E GY TO G E N E R AT E AT L E A S T 50% O F O U R TOTA L B U S I N E S S F R O M N O N - COA L
       AC T I V I T I E S BY 2 0 2 5 , A N D TO AC H I E V E N E T Z E R O C A R B O N E M I S S I O N S BY 2050.



                        In alignment with our commitment to sustainable
                        practices, our corporate responsibility extends
                        beyond our core business operations. Over the past
                        year, we actively pursued diverse programs aimed
                        at preserving natural ecosystems and empowering
                        communities. Our efforts in nature conservation
                        included initiatives such as reforestation projects,
                        biodiversity preservation, and wildlife habitat
                        restoration. These initiatives were strategically
                        designed to mitigate environmental impacts and
                        promote the long-term health of our planet.
                                                                                                 Renewable energy
                        Simultaneously, our dedication to community
                                                                                                 Empat Mitra Indika Tenaga Surya (EMITS) was
                        empowerment remained steadfast. We engaged
                                                                                                 founded in 2021 as a joint venture between Indika
                        in a range of programs aimed at uplifting local
                                                                                                 Energy and leading Indian solar power developer
                        communities, fostering economic development,
                                                                                                 Fourth Partner Energy Ltd. From our first project, a
                        and enhancing social well-being. These initiatives
                                                                                                 solar photovoltaic installation at the Kideco mine
                        encompassed education and skill development
                                                                                                 site in Paser, East Kalimantan, EMITS has since
                        programs, health care initiatives, and support
                                                                                                 grown rapidly; as of the end of 2023, EMITS has
                        for small-scale enterprises. By investing in the
                                                                                                 installed 60 MW of solar photovoltaic capacity
                        prosperity and resilience of the communities
                                                                                                 in Java, Bali, Sumatra, Kalimantan, Sulawesi,
                        where we operate, we aim to create shared value
                                                                                                 and Maluku. Customers include commercial and
                        and contribute to inclusive growth.
                                                                                                 industrial users as well as local utilities. EMITS
                                                                                                 targets to install up to 500 MW of solar capacity
                                                                                                 by 2025. As a one-stop shop for renewable
                                                                                                 energy solutions, EMITS offers services ranging
                                                                                                 from financing to design and engineering, to
                                                                                                 construction, operations, and maintenance.



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                                                                                                    SUSTAI NABI LI TY RE PO RT 2 0 2 3




                                                            Nature-based solutions
                                                            Indika Nature protects and manages a
                                                            170,000-hectare site in East Kalimantan, home
                                                            to critically endangered wildlife like helmeted
                                                            hornbills (Rhinoplax vigil), Sunda pangolins
                                                            (Manis javanica) and trees like bangkirai (Hopea
                                                            ferruginea), a prized timber tree. By reclaiming
                                                            this forest landscape, we are striking a blow for the
                                                            climate, investing in a precious carbon sink that
                                                            we estimate will be able to offset nearly 835,000
                                                            tons of emissions annually — equivalent to taking
                                                            nearly 200,000 cars off the roads.

                                                            In 2023, Indika Nature completed construction
EV ecosystem                                                of a biomass pellet mill, with an eye to exporting
Ilectra Motor Group (IMG) was founded in 2022               this carbon-neutral energy source to Japan. Also
as Indika Energy’s pioneering venture into the              in 2023, Indika Nature acquired a stake in Natura
homegrown electric vehicle space, targeting                 Aromatik Nusantara, a producer, and the fourth-
the crucial segment of two-wheeled motor                    largest exporter of essential oils, based in Solo,
transportation. Following the launch of the                 Central Java. The acquisition strengthens Indika
ALVA One motorbike, one of the first locally                Nature’s agroforestry portfolio by expanding into
designed and produced EV bikes in Indonesia,                aromatic chemicals, essential oils, and natural
we introduced the ALVA Cervo and ALVA One                   extracts. Indika Nature continues to grow its
XP. Eighty-seven percent of all motor vehicles on           business through its subsidiary Laras Ekosistem
Indonesia’s roads today are two-wheelers, which             Organik by partnering with Slow Forest Coffee and
means that scaling up the transition to EVs must            Krakakoa, a producer of sustainable, traditional-
emphasize bikes to have any meaningful impact.              grown coffee and cocoa, leveraging agroforestry
And with a local manufacturing base supported               expertise and social commitment to revolutionize
by local suppliers, we are also contributing to             our regenerative farming systems. The actions will
Indonesia’s wider ambitions of being the next EV            yield positive effects on the climate, biodiversity,
powerhouse.                                                 and profitability, thereby enabling us to contribute
                                                            to societal well-being and livelihoods.




Biomass: Nature’s renewable energy source, powering sustainable solutions for a greener tomorrow.




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P T I N D I K A E N E R GY T B K .




                        Minerals: Gold, nickel, bauxite                                   IMPACT: Indika Energy Mangrove
                        Indika Energy is bringing its decades of mining                   Program in Action
                        expertise to bear in new ventures. We are                         Mangrove forests are incredibly effective carbon
                        investing heavily in gold mining via Masmindo’s                   sinks, more so than even tropical rainforests on
                        concession in South Sulawesi, with plans to start                 a hectare-by-hectare basis. These ecosystems
                        production as early as 2025. Another investment,                  sequester and store large quantities of carbon
                        in Mekko, is already yielding bauxite from a                      in both the plants and the soil below and are
                        mine in West Kalimantan, and we are currently                     therefore an essential piece of the solution to
                        building a smelter to process the ore into alumina.               global climate change.
                        A third venture, Rockgeo, is our entry into nickel,
                        a key mineral in the clean-energy transition,                     Indonesia has the largest area of mangrove forests
                        positioning Indika Energy as a full-ecosystem                     of any country in the world. But in many parts of
                        player in the EV space.                                           Indonesia, these important coastal ecosystems
                                                                                          are being lost due to various factors.

                                                                                          Indika Energy has long been committed to
     Ayu Dewi Utari Secretary of Peatland and                                             replanting and restoring mangroves in the areas
     Mangrove Restoration Agency (BRGM)                                                   where we operate. To date, together with our
                                                                                          subsidiaries and partners, we have planted more
                                                                                          than 110,000 mangrove trees across Indonesia. To
     “ SY N E R GY      AND          CO L L A B O R AT I O N        AMONG        THE
                                                                                          ensure the long-term viability of these plantings,
     G OV E R N M E N T,     P R I VAT E     S E C TO R ,   AND      CO M M U N I T Y
                                                                                          we also work with local communities to ensure
     A R E N E C E S S A RY F O R M A N G R OV E R E S TO R AT I O N A N D
                                                                                          that the mangroves are properly cared for.
     R E H A B I L I TAT I O N AC T I V I T I E S TO P R O C E E D S U S TA I N A B LY.
     ONE      OF     THESE      CO L L A B O R AT I O N S      IS   WITH     INDIKA       It is in this spirit that we initiated our flagship
     E N E R GY      THROUGH         THE     I M PAC T      PROGRAM         (INDIKA       IMPACT program — Indika Energy Mangrove
     E N E R GY M A N G R OV E P R O G R A M I N AC T I O N ) , W H E R E W E             Program in Action — in 2023 as part of our longer-
     CO N T I N U E TO D E V E LO P E N V I R O N M E N TA L CO N S E RVAT I O N          term net zero target by 2050. Working with the
     A N D F O R E S T RY P R E S E RVAT I O N I N I N D O N E S I A . T H I S WAY,       government through the Peatland and Mangrove
     T H E M A N G R OV E FO R E S T S C A N B E M A N AG E D BY T H E                    Restoration Agency (BRGM), we identify areas
     CO M M U N I T Y A N D H O L D H I G H E CO N O M I C VA LU E .”                     and raise awareness for sustainable mangrove
                                                                                          rehabilitation. This three-year initiative is not
                                                                                          just about restoring mangroves, however; it’s
                                                                                          also about transforming communities, fostering
                        46,600+ TREES
                                                                                          environmental resilience, and championing
                        P L A N T E D A N D E X P E C T E D TO G R O W                    sustainable development — a holistic, people-
                                                                                          centric approach to ecosystem restoration and
                        2 VILLAGES                                                        community development. In 2023, we planted
                                                                                          more than 46,600 mangrove trees across 35.35
                        LO R I A N D S U N G A I L A N G I R
                                                                                          hectares, which is expected to sequester 573
                        BENEFITED FROM THIS PROGRAM
                                                                                          tonCo2eq annually.
                        1 GENUS (RHIZOPHORA)                                              Ultimately, we hope to plant more than 275,000
                                                                                          mangrove trees across 250 hectares — a carbon
                        P L A N T E D A N D E X P E C T E D TO G R O W
                                                                                          sink that would hold the equivalent annual
                        573.3 TONCO2E                                                     emissions of 18,000 cars. In addition to their
                                                                                          climate importance, these mangroves will also
                        E X P E C T E D TO B E S E Q U E S T E R E D F R O M              protect the coastline from erosion and tidal
                        4 6 , 6 0 0 M A N G R OV E T R E E S P L A N T E D I N            surges, serve as a nursery for the marine species
                        T H E 20 2 3 I M PAC T P R O G R A M                              that local communities depend on for their
                                                                                          livelihood, and act as a filter preventing pollutants
                        1,988 TONCO2E                                                     entering the sea.

                        I N A D D I T I O N TO T H E I M PAC T P R O G R A M ,
                        W E H AV E A L S O P L A N T E D OV E R 1 6 2 ,0 0 0
                                                                                          35.35 HA
                        M A N G R OV E T R E E S , P OT E N T I A L LY
                        O F F S E T T I N G A N E S T I M AT E D 1 ,9 8 8                 PLANTED AREA
                        TO N CO 2 E Q A N N U A L LY.
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                                                                 ⚫    Health infrastructure: Collaborating with
Canting Berkelanjutan: Save a                                         local stakeholders to enhance health care
child, strengthen the community                                       facilities and services, ensuring accessibility
Recognizing the imperative of nurturing a healthy                     and quality care for mothers and children.
and intellectually vibrant future generation, we
launched the Canting Berkelanjutan program in                    The Canting Berkelanjutan program fosters
March 2023 to combat childhood stunting in 14                    collaboration among various stakeholders,
villages across Paser, East Kalimantan.                          including government agencies, community
                                                                 health centers, and beneficiaries of existing
Stunting, a significant public health concern in                 health programs. Through collective efforts, the
Indonesia, not only affects physical growth but also             program aims to amplify its impact and address
hampers cognitive development and increases                      the root causes of stunting comprehensively.
susceptibility to diseases among children. Despite
a national decline in stunting prevalence, regions               By implementing tailored interventions and
like Paser and East Kalimantan more widely                       strengthening community engagement, Indika
witnessed a concerning rise in stunting rates from               Energy and Kideco Jaya Agung aspire to achieve
2021 to 2022.                                                    sustainable reductions in stunting prevalence.
                                                                 The program’s success will be measured not only
The program focuses                     on        multifaceted   by statistical indicators but also by the tangible
interventions, including:                                        improvements in the health and well-being of
                                                                 children and families in the targeted villages.
⚫    Cadre development: Enhancing the capacity
     of health workers and community volunteers                  The program exemplifies a proactive corporate
     to effectively communicate health-related                   approach to addressing pressing societal
     information and interventions.                              challenges. By prioritizing health and community
                                                                 empowerment, it signifies a crucial step toward
⚫    Nutritional support: Providing targeted
                                                                 building a sustainable and inclusive future for
     nutritional assistance to pregnant women,
                                                                 Indonesia, where every child has the opportunity
     lactating mothers, and young children to
                                                                 to thrive and reach their full potential.
     improve dietary diversity and adequacy.




300+ CADRES                                                      250+ CHILDREN AND
                                                                 PREGNANT MOTHERS
U P S K I L L I N G C A D R E S FO R H E A LT H
S E R V I C E S F R O M 7 8 CO M M U N I T Y H E A LT H          I N - K I N D FO R C H I L D R E N U N D E R 2
CENTERS                                                          Y.O. A N D FO R P R E G N A N T M OT H E R S
                                                                 T H R O U G H S U P P L E M E N TA RY F E E D I N G
600+ PEOPLE                                                      ( M U LT I V I TA M I N , M I L K , E G G S )

H E A LT H A N D S O C I A L C A M PA I G N TO                   30+ PEOPLE
I M P R OV E CO M M U N I T Y AWA R E N E S S
( K E L A S S I AG A A N D P M BA )                              H E A LT H A S S I S TA N C E A N D S U P P L E M E N T
                                                                 FO R P R E G N A N T M OT H E R S
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P T I N D I K A E N E R GY T B K .




                        01.3
                        —
                        Engaging with Our Stakeholders
                        and Creating Value




                        Engaging our stakeholders in a meaningful,         The stakeholders are identified in accordance
                        continuous, and transparent way is fundamental     with the 2015 AA1000 Stakeholder Engagement
                        to ensuring we respond to the ESG risks and        Standard. Based on this standard, the Company
                        opportunities most material to our company. We     has identified its stakeholders into five attributes:
                        identify stakeholders relevant to our business     [GRI 2-29]
                        depending on the impact we have on them
                        and they on us. This helps us engage with our      1.   Dependency: Individuals or groups who
                        stakeholders in a manner that is purposeful and         have direct or indirect dependence on the
                        effective.                                              company’s activities

                        We foster dialogues at local, national, regional   2. Responsibility: Individuals or groups to which
                        and international levels through a range of           the Company has legal, commercial, and/or
                        engagement activities, as well as participate in      ethical responsibilities.
                        multi-stakeholder discussions. We acknowledge
                                                                           3. Tension: Individuals or groups who
                        feedback and take it into our decision-making
                                                                              need immediate attention from the
                        consideration. Through building constructive and
                                                                              Company related to economic, social, and
                        transparent relationships with our stakeholders,
                                                                              environmental issues.
                        we can strengthen our approach locally and
                        globally and improve our operating processes and   4. Influence: Individuals or groups who
                        performance. [GRI 2-26]                               influence the strategies and policies of the
                                                                              Company or other stakeholders.

                                                                           5. Diverse perspectives: Individuals or groups
                                                                              who have different views that can influence
                                                                              the situation and encourage action that was
                                                                              not planned.




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                                                                                                  SUSTAI NABI LI TY RE PO RT 2 0 2 3




                                                     AREAS OF
                                                                            E N G AG E M E N T     C O M M U N I C AT I O N S
S TA K E H O L D E R   R E A S O N TO E N G AG E     INTEREST DURING
                                                                            METHOD                 FREQUENCY
                                                     2023

Our workforce and      Through developing            Health, safety,        Occupational health    Quarterly town hall
labor unions           and building a cohesive       and well-being         and safety policies
                       workplace culture that                               and procedure          Daily briefing
                       encourages our people         Training,
                                                     compensation and       Trainings,             Biweekly publication
                       to focus on the same
                       goals, we can deliver our     career opportunities   socialization
                       strategic priorities.
                                                     Company culture        Awareness
                       Our internal                  and reputation         campaign
                       communications and
                                                     Negotiations
                       human capital program
                                                     of workplace
                       and our policy framework
                                                     agreements
                       are available to our
                       employees and contractors,    Industrial relations
                       and other stakeholders.       and potential
                       We uphold the right to        site closures
                       freedom of association, to
                       unionize and to collective
                       representation, regardless
                       of location or duties. We
                       take an honest and open
                       approach to working with
                       labor unions and undertake
                       negotiations in good faith.

                       We uphold the right to
                       freedom of association, to
                       unionize and to collective
                       representation, regardless
                       of location or duties. We
                       take an honest and open
                       approach to working
                       with labor unions and
                       undertake negotiations
                       in good faith. We expect
                       our business partners to
                       share this commitment
                       and to leverage into our
                       business relationship.




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P T I N D I K A E N E R GY T B K .




                                                                     AREAS OF
                                                                                            E N G AG E M E N T   C O M M U N I C AT I O N S
          S TA K E H O L D E R       R E A S O N TO E N G AG E       INTEREST DURING
                                                                                            METHOD               FREQUENCY
                                                                     2023

          Governments                We develop and maintain         Tax and royalty        Official meetings    Annual report
                                     constructive relationships      payments
                                     with national, regional,                               Joint program        Annual sustainability
                                     and local governments           Ethics and                                  report
                                                                     compliance             Performance
                                     in the countries where
                                                                                            reporting            Regular discussion
                                     we operate and maintain
                                                                     Local employment                            with related
                                     regular dialogue on
                                                                     and procurement                             government official
                                     all relevant issues.
                                                                     Operational
                                     We do this through a
                                                                     environmental
                                     variety of means that
                                                                     management,
                                     best reflect local context.
                                                                     including tailings
                                     Engagement activities may
                                                                     storage
                                     be individually, collectively
                                     with other companies or         Climate change
                                     organizations, or as part of
                                     an industry association.        Socio-economic
                                                                     development
                                     When dealing with
                                     governments, we are             Social transitioning
                                     guided by our Code of
                                                                     Transparency and
                                     Conduct and Business
                                                                     human rights
                                     Ethics Policy, which does
                                     not permit the use of           Public health
                                     our funds or resources
                                     as contributions to any         Security
                                     political campaign,
                                     political party, political
                                     candidate or any such
                                     affiliated organization.




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                                                      AREAS OF
                                                                             E N G AG E M E N T       C O M M U N I C AT I O N S
S TA K E H O L D E R   R E A S O N TO E N G AG E      INTEREST DURING
                                                                             METHOD                   FREQUENCY
                                                      2023

Communities            We build relationships         Socio-economic         Public consultation      Annual report
                       with local communities         development
                       and decision-making                                   Community                Annual sustainability
                       authorities. They meet         Social transitioning   programs                 report
                       and engage with the
                                                      Human rights           Publication              Regular discussion
                       communities living around
                                                                             of reports               with local
                       our industrial assets to       Indigenous people                               communities
                       share information about                               Community forum
                       our activities that may        Environmental
                       affect them, key risks, and    management
                       control measures, and
                                                      Operational impacts
                       to help us understand
                       their views and address        Potential industrial
                       any concerns raised.           site closure
                       We adapt our approach to       Tailings storage
                       reflect the operational and    facilities
                       cultural environment and
                       engagement can include         Security and its
                       open-house sessions,           engagement with
                       formal engagements, face-      civil society
                       to-face discussions, and
                       local grievance mechanisms

Non-governmental       We engage with NGOs,           Human rights           Consultation             Annual report
organizations (NGOs)   think tanks and business
and civil society      associations interested        Social incidents       Partnership              Annual sustainability
                       in our activities. Topics of                                                   report
                                                      Public health
                       discussion include broad
                       policy issues with a global    Operational and
                       or national reach, as well     environmental
                       as local matters that affect   management
                       the communities close
                       to our industrial assets.      Closure of
                                                      operational sites
                       We welcome constructive
                       feedback on our activities,    Socio-economic
                       and seek to engage with        development
                       all our critics or, at the
                                                      Transparency
                       very least, respond to
                                                      in payments to
                       their concerns to increase
                                                      governments
                       our understanding
                                                      Security and
                                                      engagement with
                                                      civil society

                                                      Compliance with
                                                      laws and regulations




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                                                                    AREAS OF
                                                                                           E N G AG E M E N T    C O M M U N I C AT I O N S
          S TA K E H O L D E R       R E A S O N TO E N G AG E      INTEREST DURING
                                                                                           METHOD                FREQUENCY
                                                                    2023

          Financial community        We actively engage with        Financial and          Official meetings     Annual report
          and media                  our investors and financial    operational
                                     institutions through regular   performance            Joint program         Annual sustainability
                                     communication, one-on-                                                      report
                                                                    Climate change         Performance
                                     one meetings, roadshows,
                                                                                           reporting             Quarterly or ad hoc
                                     and Q&A sessions. We
                                                                    Compliance with                              press release
                                     engage with the media at                              Public expose
                                                                    laws and regulations
                                     global, national, and local                                                 Quarterly company
                                     levels on topics of public     Presence in            Media gathering       updates
                                     interest. Our approach is      developing
                                     one of transparency and        countries
                                     timely communications
                                     to support fair disclosure     Transparency
                                                                    payments to
                                                                    government

                                                                    Industrial relations

          Suppliers and              We maintain good               Responsible            Occupational health   Ad hoc meetings
          customers                  relationships with our         sourcing and supply    and safety policies
                                     suppliers and customers,                              and procedure         Regular trainings
                                     engaging regularly with        Development of                               for safety
                                     them to understand their       industry standards     Trainings,
                                     views, expectations and                               socialization
                                                                    Transparency in
                                     perspectives. We undertake
                                                                    the supply chain       Awareness
                                     risk-based due diligence on
                                                                                           campaign
                                     our supply chain, both for     Procurement
                                     the goods and services we      process
                                     procure and the third-party
                                     commodities we purchase.       Human rights

                                     We are active in many          Compliance with
                                     industry initiatives, where    laws and regulations
                                     we work to promote the
                                                                    Product carbon
                                     safe use and handling of
                                                                    footprint
                                     our products. We share
                                     the specifications of our
                                     products and any associated
                                     risks with our customers.




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                                                                                                              SUSTAI NABI LI TY RE PO RT 2 0 2 3




                                                              AREAS OF
                                                                                        E N G AG E M E N T     C O M M U N I C AT I O N S
  S TA K E H O L D E R      R E A S O N TO E N G AG E         INTEREST DURING
                                                                                        METHOD                 FREQUENCY
                                                              2023

  Peer companies            At both global and national       Occupational              Forum discussion       Ad hoc meetings
                            levels, we engage with            health and safety
                            other mining, trading                                       Collaboration
                            and extractive companies          Public health             program
                            through various platforms.
                                                              Climate change
                            These initiatives provide an
                            opportunity to learn from         Land management
                            best practice and to find         and nature
                            industry-wide solutions
                            to common challenges.             Industrial, site
                                                              closure and
                            At an operational level,          water security
                            we often work with other
                            multinational and domestic        Engagement with
                            mining companies through          civil society
                            nationally run chambers
                                                              Development of
                            of commerce to deliver
                                                              industry standards
                            an industry-consistent
                            voice during engagement
                            on industry topics.




Media and analyst tour of the ALVA manufacturing plant, where journalists and analysts were given firsthand
insights into the advanced technology and eco-conscious practices driving the production process.




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P T I N D I K A E N E R GY T B K .




                        01.4
                        —
                        Our Sustainability Approach
                        and Strategy [GRI 2-22]

                                                W E AC C E L E R AT E S U S TA I N A B I L I T Y T R A N S FO R M AT I O N
                                                A N D A I M TO C A P T U R E T H E F U L L B U S I N E S S VA LU E O F S U S TA I N A B I L I T Y




                        As one of Indonesia’s leading investment                         financial metrics, as we firmly believe in our
                        companies with diversified businesses, we                        responsibility to deliver tangible value and
                        combine the knowledge generated by our                           impactful outcomes for our stakeholders,
                        strength in the energy sector to position the                    underpinned           by       transparency,
                        Indika Energy Group for a just and sustainable                   measurability, and credibility.
                        journey towards a low carbon economy, in line
                        with Indonesia’s energy transition and economic                  Indika Energy has set sustainability targets
                        development.                                                     covering most ESG topics, and we are
                                                                                         implementing several actions to drive
                        We accelerate sustainability transformation                      the targets and structure our approach to
                        and aim to capture the full business value of                    sustainability through a three-pronged
                        sustainability.                                                  approach:

                        Our bold commitment towards net zero took                        1.    Investing in non-coal industries. As part
                        shape in 2021, when Indika Energy committed to                         of our wider energy transition, Indika
                        increasing the share of our non-coal revenue to                        Energy is diversifying and investing in
                        at least 50% by 2025, and to achieving net-zero                        sectors ranging from renewable energy
                        greenhouse gas emissions by 2050 or sooner. This                       and nature-based solutions to electric
                        pivotal year also witnessed the establishment of                       vehicles (EV) and EV infrastructure.
                        a baseline for aligning Indonesia’s Sustainable
                        Development Goals (SDGs) with Indika Energy’s                    2. Decarbonization      of     operations.
                        mission of empowering Indonesia towards a                           Minimizing our carbon footprint is an
                        sustainable future.                                                 important part of our strategic focus
                                                                                            and our wider target of achieving net-
                        At the heart of our operations lies a steadfast                     zero emissions, and in turn contributes
                        dedication to sustainability. We hold ourselves                     to Indonesia’s greater decarbonization
                        accountable to the same rigorous standards                          commitments as a nation.
                        for measuring our Environmental, Social, and
                        Governance (ESG) performance as we do for our



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                                                                                            SUSTAI NABI LI TY RE PO RT 2 0 2 3




3. Divesting from high-carbon industries. The          Furthermore, in 2023 we initiated our first exercise
   corollary to diversifying our portfolio is that     on calculating our baseline scope 3 emissions
   we must also reduce our exposure to high-           footprint.
   carbon businesses in our portfolio. We see
   this as a necessary part of our long-term
   vision to achieve our sustainability goals and
                                                       Sustainability framework
   contribute to a better planet for all.              At the heart of Indika Energy’s ESG commitment
                                                       is the confluence of our corporate strategy, values,
                                                       and sustainability practices. To be a sustainable
Reassessing ESG targets                                business is to be sustainable in every sense: in our
We continued to track and assess ESG metrics           use of resources, in our relations with employees,
applicable to Indika Energy’s sustainability goals,    communities and other stakeholders, and in our
and revisited targets for a balance between            impact on society and the planet.
ambitious and realistic.

In 2023, we reassessed our existing ESG strategy,
expanded our data boundaries including our new
business units and ventures, and came up with
even more ambitious ESG targets that will have
a more meaningful impact. We also identified
decarbonization initiatives for scope 1 and 2 across
the Group’s, sequencing it into a roadmap in line
with Indonesia’s and Indika Energy’s aspirations.




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P T I N D I K A E N E R GY T B K .




                                                                                   OUR PURPOSE
                                                                   Energizing Indonesia for a sustainable future
                                                OUR VISION                                                                      OUR MISSION
                          Highly trusted, innovative and enduring business partner                           — To develop Indonesia in a sustainable way
                                        for sustainable value creation                                    — To be a robust diversified investment company
                                                                                               — To empower our people and actively develop next generation leaders
                                                                                              — To be socially responsible, embracing diversity and acting with integrity
                                                                                                        — To create exceptional value for all our stakeholders



                   UNITY IN DIVERSITY          INTEGRITY         TEAMWORK               OUR VALUES                  AGILITY       ACHIEVEMENT         SOCIAL RESPONSIBILITY



                                                                                CORPORATE STRATEGY
                  Investment in the non-coal sector             Decarbonization in the company’s operational activities               Divestment of high carbon portfolio


                                                                                    MATERIAL TOPICS
                                                        Internal and external materiality assessment process to identify material topics
                                                        Material topics are the focus of our sustainability strategy review and reporting


                                                                               2025 & 2030 ESG TARGETS
                              ENVIRONMENT                                                   SOCIAL                                              GOVERNANCE

               SCOPE 1 AND 2 EMISSIONS                                       LOCAL COMMUNITIES                                           BUSINESS ETHICS
               (Relative to 2020 baseline)
              25%                            33%                            1%                                                           80%                          100%
              Reduce scope 1 and 2     Reduce scope 1 and 2                 1% EBIT spent on community development                       80% of employees attend 100% of employees to
              emissions by 25% in 2025 emissions by 33% in 2030             every year                                                   code of business conduct attend code of business
                                                                                                                                         training by 2025         conduct training by 2030
              50%                            55%                             HEALTH AND SAFETY
              Reduce scope 1 and 2           Reduce scope 1 and 2                                                                        100%                         100%
              emissions intensity per        emissions intensity per                                                                     100% of board members 100% of board members
              revenue by 50% in 2025         revenue by 55% in 2030         Zero                                                         to attend code of business to attend code of business
                                                                            Zero fatalities every year for employees and                 conduct training by 2025 conduct training by 2030
              10%                            25%                            contractors
              Reduce scope 1 and 2           Reduce scope 1 and 2
              emissions intensity per        emissions intensity per         DIVERSITY AND INCLUSION                                     CORPORATE GOVERNANCE
              ton coal production by         ton coal production by
              10% in 2025                    25% in 2030
                                                                             20%                         25%                             30%
                                                                             20% women in workforce 25% women in workforce               30% (by weight) of board
               ENERGY MANAGEMENT                                             by 2025                by 2030                              & senior management
               (Relative to 2020 baseline)
                                                                                                                                         evaluation KPIs tied to
              30%                            35%                             15%                         20%                             ESG topics by 2025
              Increase % RE share in the Increase % RE share in the          15% women in senior         20% women in senior
              energy consumption mix energy consumption mix                  management by 2025          management by 2030
              to 30% by 2025             to 35% by 2030

               WATER MANAGEMENT
               (Relative to 2020 baseline)
              30%                            32%
              Reduce water withdrawal Reduce water withdrawal
              intensity per revenue by intensity per revenue by
              30% by 2025              32% by 2030

               WASTE MANAGEMENT
               (Relative to 2020 baseline)
              40%                            45%
              Divert 40% of waste from Divert 45% of waste from
              landfill by 2025          landfill by 2030

               LAND AND BIODIVERSITY
               (Relative to 2020 baseline)
              20%
              Increase land reclamation
              area by 20% by 2025




                                                COMPLIANCE                                                            SUSTAINABILITY COMMITTEE
                                 Policies, Standards, Procedures, Guidelines                                     Has oversight and ultimate responsibility.
                                      Metrics, Reporting and Assurance                                 It receives regular updates of how our business is performing
                                                                                                    across all our operations, sustainability related material risk areas.




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01.5
—
Risk and Mitigation
[GRI 2-16, 313-2]

      T H E E N V I R O N M E N TA L , S O C I A L A N D G OV E R N A N C E A S P E C T S O F O U R S U S TA I N A B I L I T Y P R I N C I P L E S
      COV E R A R A N G E O F R I S K S T H AT W E W O R K TO M I T I G AT E AG A I N S T. I T I S T H E S E R I S K S , A N D H O W
      W E A S S E S S A N D A D D R E S S T H E M , T H AT I N FO R M O U R S U S TA I N A B I L I T Y S T R AT E GY, A N D T H U S
      O U R O P E R AT I O N A L F O C U S .




Climate impacts pose another set of risks to
Indika Energy’s business sustainability. As science
continues to improve our understanding of what
these impacts will look like across different
timeframes and under different emissions
scenarios, there is general consensus that weather
extremes (such as drought, heat waves, flooding,
storms, forest fires, storm surges, among others)
are likely to increase in frequency and intensity.

This could potentially disrupt our operational and/
or distribution activities, or impact suppliers and/
or customers, which would then have a knock-on
effect on our own finances. But while the potential
risks abound, there is an opportunity in that these
impacts could spur public urgency for greater
emissions reductions, fuel switching, solar panels,
and a swifter transition to clean energy. This
would boost the green and low-carbon industries
into which we are currently diversifying. [GRI 201-
2]

The environmental, social and governance aspects
of our sustainability principles cover a range of
risks that we work to mitigate against. It is these
risks, and how we assess and address them, that                             Amidst the scorching heat of East Nusa Tenggara, the communities in Boen
inform our sustainability strategy, and thus our                            Village united to construct solar-powered water pumps, laying pipes across
operational focus.                                                          an impressive distance of 3 kilometers to improve access to clean water.



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                          Risks and critical
                                               Potential impacts                 Mitigation actions          Targets
                          concerns

                          Risks related        Physical risks: Including         Implement environmental     Comply with the
                          to emissions         extreme heat, drought,            management systems and      Indika Energy
                          and energy           and water access as well as       comply with prevailing      Sustainability Policy and
                          consumption          acute risks like wildfires,       environmental regulations   Environmental Policy
                          [GRI 201-2]          hurricanes, and flooding
                                                                                 Invest in research &        Improve energy
                                               Employees and community           development, as well        efficiency and reduce
                                               members getting                   as technologies to          emissions by investing in
                                               injured or falling sick           support efficient and       renewable energy, low-
                                                                                 environmentally friendly    carbon technologies and
                                               Disruptions to supply             operational activities      decarbonization efforts
                                               chain, transport and
                                               distribution networks             Monitor and report          Integrate these transition
                                                                                 emissions and energy        risks into regular risk
                                               Damage to assets, which           performance data            assessments and report
                                               may reduce productivity,          to the Sustainability       these risks to the highest
                                               increase costs, and delay         Committee quarterly         governance body
                                               project schedules
                                                                                 Identify transition risks
                                               Regulatory risks: Changes         related to climate change
                                               in policies and regulations,
                                               especially those related to       Commit to manage
                                               carbon pricing and reporting      regulatory, market,
                                                                                 and reputational risks
                                               Market risks: Changes in          of climate change
                                               consumer behavior, uncertainty
                                               through market signals

                                               Reputational risks:
                                               Stigmatization of the sector,
                                               shifts in consumer preferences,
                                               increased stakeholder concern

                          Water stress         Lack of available water           Identify water risks        Comply with the
                                               for operations and the            and mitigation plans        Indika Energy
                                               local communities.                                            Sustainability Policy and
                                                                                 Monitor data related        Environmental Policy
                                               Increased charges to              to water management
                                               access water, resulting in        quarterly, which are        Protect the water sources
                                               higher production costs           then reported during        in our operational areas
                                                                                 the Sustainability          and improve processes to
                                                                                 Committee meetings          reduce water withdrawal
                                                                                                             and consumption

                                                                                                             Ensure compliance
                                                                                                             with national and local
                                                                                                             regulations related
                                                                                                             to water discharge
                                                                                                             and effluents




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                                                                                      SUSTAI NABI LI TY RE PO RT 2 0 2 3




Risks and critical
                     Potential impacts                  Mitigation actions            Targets
concerns

Waste-related        Potential threat of marine         Identify waste-related        Comply with the
hazards              pollution resulting from           risks and mitigation plans    Indika Energy
                     leakage of discarded plastic                                     Sustainability Policy and
                     packaging into water bodies        Monitor and report            Environmental Policy
                                                        data related to waste
                     Soil contamination                 generation and                Minimize the amount
                                                        management quarterly          of waste generated
                     Public health hazards              to the Sustainability         and maximize the
                                                        Committee                     amount of waste
                                                                                      recycled and reused

                                                                                      Ensure compliance
                                                                                      with national and local
                                                                                      regulations related
                                                                                      to waste disposal
                                                                                      and management

Biodiversity         Reduction of species, especially   Conduct biodiversity          Comply with the
loss and land        those that are included in         monitoring and risk           Indika Energy
degradation          the IUCN Red List and the          assessments regularly         Sustainability Policy and
                     National Conservation List                                       Environmental Policy
                                                        Monitor and report data
                                                        related to biodiversity and   Proactively plan
                                                        land use quarterly to the     for closure and
                                                        Sustainability Committee      rehabilitation in the
                                                                                      areas we operate in

                                                                                      Conduct impact
                                                                                      mitigation measures and
                                                                                      conserve the habitats
                                                                                      of endangered species

Resource depletion   Increased competition for,         Diversify business to         Comply with the
                     and the regulation of limited      renewable energy,             Indika Energy
                     resources, thus affecting          gold mining, nature-          Sustainability Policy and
                     our productivity and costs         based solutions, and          Environmental Policy
                                                        technology sectors
                     Uncertainty regarding                                            Proactively plan
                     where the income of the            Rehabilitation and land       for closure and
                     business will come from            reclamation initiatives       rehabilitation in the
                     in the upcoming years                                            areas we operate in




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P T I N D I K A E N E R GY T B K .




                          Risks and critical
                                               Potential impacts                  Mitigation actions          Targets
                          concerns

                          Health and           The higher the complexity of       Implement digitalization    Comply with the Indika
                          safety hazards       energy projects, the higher        and visualization           Energy Sustainability
                                               the associated safety risks        technologies to make        Policy and Health
                                                                                  operational activities      & Safety Policy
                                                                                  safer and more efficient
                                                                                                              Implement health and
                                                                                  Conduct regular             safety management
                                                                                  occupational health and     systems and comply
                                                                                  safety training programs    with regulations
                                                                                  for all workers and OHS     and standards.
                                                                                  audits to identify points
                                                                                  of improvement              Maintain zero fatalities
                                                                                                              and zero lost-time
                                                                                  Monitor and report health   injuries every year
                                                                                  and safety performance
                                                                                  data to Sustainability
                                                                                  Committee quarterly

                          Community            Protests by local communities,     Actively recruit            Comply with the
                          relations            e.g. due to lack of local          and promote high-           Indika Energy
                                               employment opportunities           performance local Hires     Sustainability Policy
                                               or disruptions due to
                                               operational activities, leading    Community development       Implement health and
                                               to the possibility of losing our   programs related to         safety management
                                               social license to operate          education, health,          systems and comply
                                                                                  environment and             with regulations
                                                                                  empowerment to              and standards
                                                                                  enhance livelihood and
                                                                                  community welfare           Maintain zero fatalities
                                                                                                              and zero lost-time
                                                                                  Accommodate and             injuries every year
                                                                                  record complaints and
                                                                                  feedback from the           Engage regularly with
                                                                                  community through our       our local communities
                                                                                  Whistleblowing System       to ensure all their
                                                                                                              needs are fulfilled and
                                                                                  Monitor and report          concerns addressed
                                                                                  community relations
                                                                                  performance data
                                                                                  to Sustainability
                                                                                  committee quarterly




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                                                                                     SUSTAI NABI LI TY RE PO RT 2 0 2 3




Risks and critical
                     Potential impacts                   Mitigation actions          Targets
concerns

Health and safety    Protests by local communities,      Develop and implement       Comply with the
protection for       e.g. due to lack of company’s       OHS management and          Indika Energy
the community        initiative to create safe           security based on the       Sustainability Policy
                     and healthy workplace               company’s enterprise risk
                     conditions leading to the           management principles       Adopt programs in
                     possibility of losing our                                       line with the UN
                     social license to operate           Manage the company’s        Declaration of Human
                                                         security system to          Rights [GRI 2-23]
                                                         create safe and healthy
                                                         workplace conditions        Recognize and respect
                                                                                     indigenous peoples’
                                                         Conduct assessments         relationship with
                                                         to identify areas of        land, water, and the
                                                         improvement in our          Environment
                                                         security personnel and
                                                         provide training related
                                                         to the importance of
                                                         respecting human
                                                         rights. [GRI 410-1]

Employee             Low productivity leading to         Provide fair and merit-     Comply with the
dissatisfaction      lower revenues and profits          based compensation          Indika Energy
                                                         as well as benefits         Sustainability Policy
                     High employee turnover
                     causing high costs to hire          Provide training and        Promote a healthy,
                     and train new employees             development programs        safe, and respectful
                                                         to help employees           working Environment
                                                         advance their careers
                                                                                     Foster an environment
                                                         Monitor and report          that supports and
                                                         human capital data,         encourages different
                                                         including gender            backgrounds,
                                                         equality and training       cultures, beliefs

                                                         parameters, to
                                                         Sustainability
                                                         Committee quarterly.

Bribery and          Financial damage                    Implement Anti-Bribery      Comply with the
corruption           due to legal fines                  Management Systems          Indika Energy
                                                         ISO 37001:2016              Sustainability Policy
                     Reputational damage and loss                                    and the Anti-Bribery
                     of trust from Stakeholders          Conduct regular training    & Corruption Policy
                                                         and refresher sessions
                     Decrease in employee                about anti-bribery          Prohibit any form of
                     productivity due to loss of trust   management systems          bribery and corruption
                                                         for employees               and conduct business
                                                                                     in an ethical manner

                                                                                     Comply with
                                                                                     requirements set out
                                                                                     in ISO 37001:2016




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                          Risks and critical
                                                   Potential impacts              Mitigation actions           Targets
                          concerns
                          Cyber security attacks   Theft of funds as well as      Launch a cyber security      Implement Information
                                                   corporate and financial        training program among       Security Management
                                                   Information                    employees to cover topics    Systems ISO 27001:2013
                                                                                  such as email phishing and
                                                   Operational disruptions        correct classification and   Conduct regular training
                                                   and reputational damage        handling of information      for all employees to
                                                                                                               raise awareness on
                                                                                  Regularly update             the prevention of
                                                                                  security of IT systems       cybersecurity attack
                                                                                  and infrastructure and
                                                                                  back up important data

                          Decrease in revenue      Lower revenues and profits     Set a target for the         Achieve medium-term
                          due to commodity                                        majority of revenue to       target 50% non-coal
                          price volatility         Low productivity of            come from non-coal           revenue by 2025
                                                   assets and employees           businesses by 2025
                                                   Inability to repay debt        Diversify and enter
                                                                                  businesses other than coal
                          Challenges to access     Inability to receive funding   Set a target for the         Achieve medium-term
                          capital or funding       due to increased pressures     majority of revenue to       target 50% non-coal
                          [GRI 201-2]              from global investors          come from non-coal           revenue by 2025
                                                   demanding responsible          businesses by 2025
                                                   deployment of capital
                                                                                  Diversify and enter
                                                                                  businesses other than coal

                                                                                  Pledge commitment to
                                                                                  ESG and take actions to
                                                                                  mitigate ESG-related risks




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                                                                                            SUSTAI NABI LI TY RE PO RT 2 0 2 3




Participation in external initiatives and memberships [GRI 2-28]
Our business operations are based on trust. For that reason, we provide our stakeholders with meaningful information
about our business in the public domain. Our approach to transparency is strongly grounded in our transparency
principles of responsibility, openness, fairness, and accountability.

We participate in a wide range of external initiatives, including global, national and regional organizations. Our
participation supports our commitment to ongoing improvement in our approach and performance. Our activities in
these organizations vary, ranging from reporting our progress to taking a role in driving strategic change. A number of
external organizations assess and publicly report on our performance.

The forums and organizations in which we participate include:



                              United Nations Global Compact (UNGC)



                              Indonesia Global Compact Network (IGCN)



                              Indonesia Business Council for Sustainable Development (IBCSD)



                              World Economic Forum (WEF)


                              Powering Past Coal Alliance (PPCA)


                              Indonesian Renewable Energy Society - Masyarakat
                              Energi Terbarukan Indonesia (METI)


                              Indonesian Chambers of Commerce and Industry -
                              Kamar Dagang dan Industri (KADIN)


                              Indonesian Listed Companies Association - Asosiasi Emiten Indonesia (AEI)


                              Indonesian Employers Association - Asosiasi Pengusaha Indonesia (APINDO)

                              Indonesian Coal Mining Association - Asosiasi
                              Pertambangan Batubara Indonesia (APBI-ICMA)

                              Indonesian Mining Association - Asosiasi Pertambangan Indonesia (API-IMA)


                              Indonesian Contractors Association - Asosiasi Kontraktor Indonesia (AKI)



                              Indonesian Electrification Society - Masyarakat Ketenagalistrikan Indonesia (MKI)




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01.6
—
Sustainability Governance

      O U R P O RT F O L I O A L I G N S W I T H O U R P U R P O S E , E N E R G I Z I N G I N D O N E S I A FO R A S U S TA I N A B L E
      F U T U R E , R E S P O N S I B LY S O U R C I N G E N E R GY T H AT A DVA N C E S E V E RY DAY L I F E A N D E N A B L I N G
      T H E T R A N S I T I O N TO A LO W- C A R B O N E CO N O M Y, W H I L E M E E T I N G S O C I E T Y ’ S E N E R GY N E E D S A S
      I T P R O G R E S S E S T H R O U G H T H E T R A N S I T I O N . [G R I 2- 22 ]




For Indika Energy, good corporate governance                                                     BOARD OF
                                                                                                 COMMISSIONERS
(GCG) means complying with the prevailing
                                                                                                 AND DIRECTORS
laws and regulations, mitigating against and                                                     0.27%
managing current and potential risks, and                                PT TELADAN
                                                                         RESOURCES
strengthening engagement with stakeholders
                                                                         28.08%
across the spectrum. As a member of society,                                                                     PUBLIC
we recognize that we do not operate in isolation                                                                 33.72%
and that it is important to collaborate with other
stakeholders to generate positive impacts on
society. Above all, implementing GCG means we
operate transparently, accountably, responsibly,
independently, and fairly at all times.
                                                                                                                TREASURY STOCK
Our portfolio aligns with our purpose, Energizing                         PT INDIKA INTI                        0.14%
Indonesia for a Sustainable Future, responsibly                           INVESTINDO
                                                                          37.79%
sourcing energy that advances everyday life and
enabling the transition to a low-carbon economy,
while meeting society’s energy needs as it
progresses through the transition. [GRI 2-22]




                                                                                                                                                     51
Page 52
          P T I N D I K A E N E R GY T B K .




                                       Corporate structure

                          100%                                                                               100%                                             50%                                                       100%

PT Indika Inti Corpindo                                                                     PT Tripatra Multi Energi                       PT Indika Tenaga Baru                               PT Indika Energy Infrastructure




                                                                                                                                     50%
(Indonesia)                                                                                 (Indonesia)                                    (Indonesia)                                         (Indonesia)


Investasi& perdagangan umum                                                                 Perdagangan umum                               Manajemen konsultasi                                Perdagangan, pembangunan, dan jasa
Investment and general trading                                                              General trading                                Management consultation                             Trading, development and services


                                                                                                                                                              51%
                                                                                                                                                                                                                        100%
51%




                                          40%
                                           2%




         PT Kideco Jaya Agung                            PT Tripatra Engineering                                                           PT Empat Mitra
         (Indonesia)                                     (Indonesia)                                                                       Indika Tenaga Surya
                                                                                                   98%                                     (Indonesia)                                         PT Interport Mandiri Utama
                                                                                                                                                                                               (Indonesia)
         Eksplorasi, pengembangan,                                                                                                         Jasa konsultasi
         pertambangan, dan pemasaran                     Jasa konsultasi untuk bidang-bidang                                               Consultation services
         batubara                                        konstruksi, industri & infrastruktur                                                                                                  Jasa manajemen dan perdagangan
         Exploration, development,                       Consultation services for                                                                                                             Management services and trading




                                                                                                                                                           100%
         mining and marketing of coal                    construction, industry and




                                                                                                                                                    49%
                                                                                                                        PT Sumber Multi                           PT Empat Mitra
                                                         infrastructure                                                 Energi Penajam                            Indika Cahaya
                                                                                                                        (Indonesia)                               (Indonesia)
          PT Indika Indonesia                                                                                                                                                                             PT POSB Reksabumi




                                                                                                                                                                                                   100%
6%




         Resources                                                                                                      Perdagangan umum                          Perdagangan umum                        Indonesia
                                           49%
                                           94%




         (Indonesia)                                     PT Tripatra Engineers and                                      General trading                           General trading                         (Indonesia)
                                                         Constructors (Indonesia)
                                                                                                   51%




                                                                                                                                                    100%
                                                                                                                                                           100%
         Pertambangan dan                                                                                                                                                                                 Pengelolaan limbah
                                                                                                                         PT Indika Empat                           PT Empat Mitra
         perdagangan                                                                                                     Mitra Surya                              Indika Mentari                          berbahaya
                                                         Jasa konsultasi, konstruksi, bisnis,
         Mining and trading                                                                                             (Indonesia)                               (Indonesia)                             Hazardous waste
                                                         perdagangan & industri
                                                         Provision of consultancy                                                                                                                         management
                                                                                                                        Perdagangan umum                          Perdagangan umum
                                                         services, construction
     60%




                PT Mitra Energi Agung                                                                                   General trading                           General trading
                                                         business & trading
                (Indonesia)




                                                                                                                                                                                                   100%
                                                                                                                                                                                                          PT Indika Multi Niaga
                                                                                                                                                                                                          (Indonesia)
                                                         46%




                                                                PT Sea Bridge Shipping
                Pertambangan batubara                           (Indonesia)                                             100%                            100%                          100%
                Coal mining
                                                                                                         PT Indika Multi                                               Indika Power                       Jasa pengurusan
                                                                                                                                       PT Indika Infrastruktur
                                                                Pengangkutan barang                      Energi Internasional                                          Investments Pte. Ltd.
                                                                                                                                       Investindo (Indonesia)                                             transportasi, perdagangan
                                                                domestik                                 (Indonesia)                                                   (Singapore)
                Indika Capital                                                                                                                                                                            dan jasa lainnya
                Investments Pte.Ltd.                            Domestic goods shipment                                                                                                                   Transportation
                                                                                                         Perdagangan umum              Investasi                       Investasi                          management
                (Singapore)
                                                                                                         General trading               Investment                      Investment                         services, trading and other
                                                         100%
         100%




                Perdagangan batubara dan                        Tripatra (Singapore)                                                                                                                      services
                mineral serta                                   Pte.Ltd. (Singapore)
                 perdagangan umum                                                                                       25%                                                                                               100%
                Coal and mineral
                                                                Investasi                                PT Prasarana Energi                         PT Cirebon
                trading and general
                                                                Investment                               Indonesia                                   Electric Power                                         PT Mitra Baruna
                trading activities
                                                                                                         (Indonesia)                              5% (Indonesia)                     15%                    Nusantara
                              15%                                                                                                                                                                           (Indonesia)
                                                                  100%




                                                                         Tripatra                        Perdagangan umum
                PT Multi Tambang                                                                                                                        Pembangkit Listrik
                                                                         Investments                     General trading                                                                                    Stevedoring
                jaya Utama (Indonesia)                                   Limited (B.V.I.)                                                               Tenaga Uap
                                                                                                                                                        Coal Fired Power Plant                              Stevedoring
         85%




                Pertambangan batubara                                    Investasi
                                                                                                                                                                                                   100%




                Coal mining                                              Investment                                      100%                                                                             PT Interport
                                                                                                                                                                                                           Mandiri Abadi
                                                                                                         PT Prasarana Energi                         PT Cirebon Power                                     (Indonesia)
                Indika Energy
         60%




                                                                         PT Kuala Pelabuhan
                Trading Pte.Ltd.                                         Indonesia
                                                                                                         Cirebon (Indonesia)                      5% Service (Indonesia)             15%
                                                                  5%




                (Singapore)                                                                                                                                                                               Jasa manajemen
                                                                         (Indonesia)
                                                                                                         Perdagangan umum                                                                                 transportasi
                Perdagangan                                                                                                                             Pengoperasian dan                                 Transportation
                                                 90%




                                                                         Pengelolaan                     General trading
                Trading                                                                                                                                 pemeliharaan fasilitas dan                        management
                                                                         Pelabuhan
                                                                                                                                                        alat-alat listrik                                 services
                                                                         Port Operations
                                                                                                                                                        Operations and
         10%




                PT Indika Energy                                                                                                                        Maintenance of electrical
                                                                                                                           25%                                                                                    PT Kariangau
                                                                                                                                                                                                          100%




                Trading (Indonesia)                                                                                                                     equipment and                                            Gapura Terminal
                                                                                                         PT Cirebon Energi                              facilities                                               Energi
                Perdagangan                                                                                                                                                                                      (Indonesia)
                                                                                                         Prasarana (Indonesia)
                Trading
                                                                                                                                                                                                                 Pengelolaan
                                                                                                                                                                                                                 pelabuhan khusus
99.92%




                                                                                                         Pembangkit Listrik Tenaga
                                        99.99%




         PT Citra Indah Prima                    Indika Capital Pte. Ltd.                                Uap (PLTU)                                                                                              Specific port
         (Indonesia)                             (Singapore)                                                                                                                                                     management
                                                                                                         Coal-fired power plant
         Investasi
                                                 Pemasaran & Investasi
         Investment                                                                                                                                                                                              PT Jatim Gapura
                                                                                                                                                                                                          100%




                                                 Marketing and investment
                                                                                                                                                                                                                 Terminal Energi
                                                                                                                                                                                                                 (Indonesia)
43.3%




          PT Intan Resource
                                                        Indika Capital
                                                 100%




          (Indonesia)
                                                        Resources                                                                                                                                                Pengelolaan
         Perdagangan batubara                           Limited (B.V.I)                                                                                                                                          pelabuhan khusus
         dan konsultasi                                                                                                                                                                                          Specific port
         pertambangan                                   Pembiayaan                                                                                                                                               management
         Coal trading and                               Financing
         mining consultancy


                     Sumber Daya Energi | Energy Resources                                                       Jasa Energi | Energy Services                                   Infrastruktur Energi | Energy Infrastructure
          52
Page 53
                                                                                                                                                                                         SUSTAI NABI LI TY RE PO RT 2 0 2 3




PT Indika Energy Tbk.
                           (Indonesia)
                                  100%




                                                                              100%
                                                                                                                           PT Solusi Mobilitas                               PT Indika Medika                     PT Indy Properti




                                                                                                                                                                     100%
                                         PT Indika Mineral                           PT Indika Multi                                                                         Nusantara                            Indonesia




                                                                                                                    100%
                                         Investindo                                  Properti                              Indonesia
                                                                                                                           (Indonesia)                                       (Indonesia)                         (Indonesia)
                                         (Indonesia)                                 (Indonesia)
                                                                                                                                                                                                                 Pembangunan, jasa




                                                                                                                                                                                                          100%
                                         Investasi                                   Konstruksi, real estate dan           Industri motor,                                   Industri alat kesehatan
                                                                                     perdagangan                           perdagangan dan jasa                                                                  dan perdagangan
                                         Investment                                                                                                                          dan obat farmasi
                                                                                     Constructions, real                   Motor industry, general                                                               Development,
                                                                                                                                                                             Medical and
                                                                                     estate and trading                    trading and services                                                                  services and trading
                                                                                                                                                                             pharmaceutical industry

                                                                                         PT Jaya Bumi Paser                        PT Ilectra Motor
                                                                                 99.0%
                                                                                                                                                                                                  50%




                                                                                                                           100%
                                                                                         (Indonesia)                               Group
                                         100%




                                                                                                                                                                                                          100%
                                                  Nusantara Resources                                                              (Indonesia)                                                                   Indika Energy
                                                  Ltd.                                                                                                                       PT Bioneer Indika
                                                                                         Pengusahaan hutan                                                                   Group (Indonesia)                   Capital Pte. Ltd.
                                                  (Australia)                            Forest concessionaries                    Industri motor                                                                (Singapore)
                                                                                                                                   perdagangan dan
                                                                                                                                   jasa                                      Distributor alat Kesehatan          Pembiayaan
                                                                                 75.0%




                                                  Investasi                              PT Diva Perdana
                                                                                                                                   Motor industry,                           dan obat farmasi                    Financing
                                                  Investment                             Pesona (Indonesia)
                                                                                                                                   general trading and                       Medical and
                                                                                                                                   services                                  pharmaceutical
                                                                                         Pengusahaan hutan
                                                                                                                                                                             distributor
                                                                                         Forest concessionaries                                                                                                          Indika Energy




                                                                                                                                                                                                                 100%
                                         100%
100%




        PT Pusat Sarana Baruna                                                                                                                                                                                          Capital III Pte.Ltd.
                                                  Salu Siwa Pty. Ltd.
                                                                                                                              100%
        (Indonesia)                                                                                                                     PT Electra Mobilitas                       PT Bioneer Indika                    (Singapore)
                                                                                 96.0%




                                                  (Australia)                            PT Telaga Mas                                  Indonesia                                  Diagnostik
                                                                                         Kalimantan




                                                                                                                                                                            100%
                                                                                                                                        (Indonesia)                                (Indonesia)
        Pengelolaan pelabuhan                                                            (Indonesia)                                                                                                                    Pembiayaan
                                                  Investasi                                                                                                                        Distributor alat                     Financing
        khusus                                                                                                                          Pabrik sepeda motor
                                                  Investment                             Pengusahaan hutan                                                                         Kesehatan dan
        Specific port management                                                                                                        Motorcycle




                                                                                                                                                                                                                 100%
                                                                      75.0%              Forest concessionaries                         manufacturing                              obat farmasi
                                                                                                                                                                                   Medical and
                                         25.0%




                                                                                                                                                                                   pharmaceutical                        Indika Energy
                                                                                 80.0%




                                                         PT Masmindo                     PT Trisetia                                                                                                                    Capital I Pte.Ltd.
100%




                                                                                                                                                                                   distributor
                                                                                                                              100%




        PT Elang Mas                                    Dwi Area                         Citagraha                                      PT Electra Distribusi                                                           (Singapore)
        Andalan                                         (Indonesia)                      (Indonesia)                                    Indonesia (Indonesia)
        (Indonesia)
                                                        Pertambangan                                                                                                         PT Indika Digital                          Pembiayaan
                                                                                         Pengusahaan hutan                                                                   Teknologi (Indonesia)
                                                        emas                             Forest concessionaries                                                                                                         Financing
                                                                                                                                        Perdagangan besar sepeda
        Jasa bongkar muat                               Gold mining
                                                                                                                                        motor                                Jasa teknologi digital
        Loading/unloading
                                                                                                                                        Dealership motorcycle
                                                                                 46.0%




        services                                                                         PT Natura Aromatik                                                                  Digital technology
                                                  PT Rockgeo                             Nusantara                                                                           services
                                         100%




                                                  Energi Nusantara                       (Indonesia)
                                                  (Indonesia)
                                                                                                                                         100%




                                                                                                                                                PT Electra Auto                    PT Zebra Cross
30.0%




        PT Mitra Samudra
                                                                                                                                                                            100%




                                                                                         Industri minyak atsiri                                 Indonesia                          Teknologi
        Indonesia                                 Perdagangan bijih                                                                             (Indonesia)                        (Indonesia)
        (Indonesia)                                                                      Forest Essential oil
                                                  mineral                                industry
                                                  Mineral ore trading                                                                                                              Jasa teknologi
                                                                                                                                                Perdagangan eceran                 digital
        Investasi                                                                        PT Laras Ekosistem                                     sepeda motor                       Digital technology
                                         100%




        Investment                                PT Perkasa                             Organik (Indonesia)                                    Dealership                         services
                                                                                 100%




                                                  Investama Mineral                                                                             Motorcycle
                                                  (Indonesia)                            Konsultasi
                                                                                         manajemen dan
                                                                                                                                                                                    PT Xapiens
                                                                                                                                                                            100%




                                                                                                                                                                                   Teknologi
                                                                                         perdagangan besar
100%




         PT Indika Logistic &                                                                                                                                                      Indonesia
                                                                                                                           100%




                                                  Perdagangan bijih                      Management                                PT Mitra Motor                                  (Indonesia)
        Support Services                          mineral                                                                          Group (Indonesia)
        (Indonesia)                                                                      consultation and
                                                  Mineral ore trading                    wholesale trading                                                                         Jasa teknologi
                                                                                                                                   Industri kendaraan bermotor                     digital
        Pengelolaan                                                                  PT Kalista Nusa                               perdangaan dan jasa                             Digital technology
                                                                              100%
                                                 100%




        pelabuhan khusus                                PT Mekko Metal               Armada (Indonesia)                            Vehicle industry, general                       services
        Port operation                                  Mining                                                                     trading and services
                                                                                     Sewa, perdagangan                                                                             Indika Ventures
                                                        (Indonesia)
                                                                                                                                                                            100%




                                                                                     EV dan stasiun                                                                                Pte.Ltd.
                                                                                                                                         PT Foxconn Indika
                                                                                     penukaran baterai                                   Motor (Indonesia)                         (Singapore)
                                                        Tambang bauksit
                                                                                                                              60%
100%




        PT Interport                                                                 EV rental, trading
                                                        Bauxite mining                                                                   Manufaktur kendaraan
        Patimban Agung                                                               and battery                                                                                   Jasa teknologi
        (Indonesia)                                                     30%          swapping station                                    roda 4                                    digital
                                                                                                                                         4 wheels manufacturing                    Digital technology
                                                        PT Perkasa                       PT Kalista Rotom Orbita
                                                 65%




                                                                                                                                                                                   services
                                                        Alumina                          (Indonesia)                                     PT Energi Makmur
                                                                                                                                  51%
                                                                                 100%




        Pengelolaan pelabuhan                           Indonesia                                                                        Buana (Indonesia)                                       22.5%
                                                                                         Sewa dan perdagangan
        Port operation                                  (Indonesia)                                                                      Distributor kendaraan
                                                                                         sepeda motor listrik
                                                                                                                                         roda 4                                    PT Narada
                                                        Smelter                          EV business rental
                                                                                                                                         4 wheelers vehicle                        Sahara
                                                        Smelter                          and trading                                                                               Kencana
                                                                                                                                         distribution
54.8%




                                                                                                                                                                                   (Indonesia)
         PT Cotrans Asia                                                                 PT Kalista Soter                          PT Industri
                                                                                                                           100%




                                                                                         Hastia (Indonesia)                        Baterai Nusantara
                                                                                 100%




        (Indonesia)
                                                                                         Sewa dan perdagangan                      (Indonesia)                                     Jasa teknologi
                                                                                         kendaraan listrik roda 4                  Manufaktur baterai EV                           digital
        Jasa pengangkutan dan                                                            EV business rental                                                                        Digital technology
                                                                                                                                   EV battery
        pengiriman batubara                                                              and trading                                                                               services
                                                                                                                                   manufacture
        Coal transportation and
        transhipment                                                                     PT Kalista Nayara                                PT Manufaktur
                                                                                 100%




                                                                                                                                  100%




         service                                                                         Dayautama (Indonesia)                            Teknologi
                                                                                                                                          Baterai (Indonesia)
                                                                                         Penjualan tenaga
                                                                                                                                          Manufaktur baterai EV
                                                                                         listrik dan instalasi
                                                                                                                                          EV battery
                                                                                         EV electricity sales
                                                                                                                                          manufacture
                                                                                         and electric supply
                                                                                         installations

                                                   Mineral | Minerals                                       Bisnis Hijau | Green Business                                             PorfolioLain | Other Portfolio
                                                                                                                                                                                                                                     53
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P T I N D I K A E N E R GY T B K .




                                                                             In addition, we also implement management
                        Sustainability Committee                             systems and adhere to international certification
                        In 2023, our Sustainability Committee set            standards to ensure that our business conduct
                        the strategic direction for our sustainability       aligns with existing best practices.
                        activities and oversaw the development and
                        implementation of our strategic health, safety,                     ISO 9001 Quality
                        environment, community, human rights,                               Management System
                        and other sustainability issues. Our policies
                        support the delivery of our values and Code of
                                                                                            ISO 14001 Environmental
                        Conduct, which together detail the behavior
                                                                                            Management System
                        and performance expectations for all assets and
                        offices where we have operational control.
                                                                                            ISO 37001 Anti-Bribery
                                                                                            Management System
                        Policy commitments
                        We continued to make progress on our low-
                        carbon transition and refreshed and developed                       ISO 45001 Occupational
                        our policies on sustainability, health and safety,                  Health and Safety
                        environmental, anti-bribery, communications,
                        and their supporting standards, which will
                                                                                            ISO 50001 Energy
                        strengthen our governance for overseeing the
                                                                                            Management System
                        implementation of these targets.

                        We tracked implementation progress quarterly                        ISO 21500 Project
                        through Sustainability Committee meetings, and                      Management System
                        regular discussions, including at working level,
                        for gap analysis on each ESG aspect and ESG
                                                                                            ISO 50001 Energy
                        performance toward the 2025 and 2030 target.
                                                                                            Management System



                                                                                            ISO 27001 Information
                                                                                            Security Management
                                                                                            System




54
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                                                                                                            SUSTAI NABI LI TY RE PO RT 2 0 2 3




                 01.7
                 —
                 Our External Commitments
                 Advancing the Sustainable Development Goals (SDGs)
                 At Indika Energy, we use the United Nations’ Sustainable Development Goals (SDGs) to align our efforts to
                 global targets, as well as measure how our company and ecosystem contribute to resolving society’s most
                 pressing challenges. In ensuring the impact we have is measurable, accurate and relevant, we have mapped
                 Indika Energy’s approach and management of our material ESG issues with the relevant SDGs and the
                 corresponding reporting standard disclosures (GRI for this reporting period).




The preparation and
execution of the Solar
Chapter’s Water for
Boen project have
been completed. Now,
their dedication has
yielded results as the
community can easily
access clean water.




                                                                                                                                           55
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P T I N D I K A E N E R GY T B K .




                          SDG targets                      GRI Disclosure   Our approach and key initiatives in 2023

                          ENVIRONMENT   SDG 6              GRI 303-2        We are committed to managing our effluents
                                        Clean water and                     and wastewater properly to ensure that the
                                        sanitation         GRI 303-3        water we put back into the ecosystem is at
                                                                            least as clean as when we took it out.
                                        Target:            GRI 303-4
                                        6.6                                 We source the water we use for our operations
                                                           GRI 303-5
                                                                            from the water we have recycled. We
                                                                            also implement various water efficiency
                                                                            programs and meticulously monitor and
                                                                            report our water treatment processes
                                                                            monthly, ensuring compliance with
                                                                            acceptable standards of water quality.

                                        SDG 14             GRI 304-2        We comply responsibly with environmental
                                        Life below water                    standards, aim to look beyond these standards
                                                                            and to implement approaches to achieve
                                        Target:                             sustainable growth without negatively affecting
                                        14.2                                the oceans, seas, and aquatic ecosystems.


                                        SDG 7              GRI 302 - 1      Transitioning to clean and affordable energy
                                        Affordable and                      is more of a necessity now than ever before.
                                        clean energy                        Since 2021, our subsidiaries have used solar
                                                                            energy in their operation sites. We also set up
                                        Target:                             a solar photovoltaic-powered pump system
                                        7.2                                 in Boen Village, harnessing the abundant
                                        7.3                                 sunlight in this region of eastern Indonesia,
                                                                            to provide piped water to the community.

                                                                            In 2023 and beyond, we plan to further scale
                                                                            the use of renewable energy across our offices,
                                                                            operation sites and other workplaces.

                                        SDG 12             GRI 306-3        In addition to sustainable management
                                        Responsible                         and efficient use of natural resources,
                                        consumption and    GRI 306-4        Indika Energy also strives for waste
                                        production                          reduction, reuse, and recycling.

                                        Target:                             In 2023, we increased by 6.84% the amount
                                        12.2                                of waste diverted from disposal compared to
                                        12.4                                the previous year. This can be attributed to the
                                        12.5                                various waste management activities done by
                                                                            our subsidiaries, ranging from tyre retreading
                                                                            to the use of waste oil for blasting activities.

                                        SDG 13             GRI 2-22         In 2023, Indika Energy actively participated
                                        Climate action                      in COP28, ASEAN Business Advisory Council
                                                           GRI 2-23         (ASEAN-BAC), and the World Economic Forum
                                        Target:                             (WEF). Through these endeavors, Indika
                                        13.2                                Energy offered its perspectives on Indonesia’s
                                        13.3                                green energy transition that could help shape
                                                                            national policy, strategy, and planning.




56
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                                                                            SUSTAI NABI LI TY RE PO RT 2 0 2 3




SDG targets                       GRI Disclosure   Our approach and key initiatives in 2023

              SDG 15              GRI 304-1        Indika Energy entered the nature-based
              Life on land                         solutions sector through Indika Nature,
                                  GRI 304-2        which manages 170,000 hectares of
              Target:                              forest concessions sustainably.
              15.2                GRI 304-3
              15.5                                 Through Kideco, Indika Energy has also been
                                  GRI 304-4
                                                   putting its focus on sustainable reclamation
                                                   and biodiversity protection in the Tandarayan
                                                   Arboretum conservation area, home to rare
                                                   and threatened wildlife native to Borneo.

SOCIAL        SDG 3               GRI 403-1        Ensuring healthy lives and promoting
              Good Health and                      well-being at all ages are essential
              Well-being                           to sustainable development.


              SDG 4               GRI 413-2        Indika Energy contributes to ensuring inclusive
              Quality education                    and equitable quality education for all by
                                  GRI 203-1        providing scholarships through the Indika
              Target:                              Energy Cerdaskan Anak Bangsa program.
              4.1
              4.4                                  Furthermore, as part of our community
                                                   development, we hold various vocational
                                                   training programs to help local communities
                                                   near our operational sites gain the skills
                                                   necessary to achieve financial independence.

              SDG 5               GRI 401-3        At Indika Energy, we support women by
              Gender equality                      implementing equal opportunities, pay
                                  GRI 405-1        and benefits for work of equal value,
              Target:                              promoting work-family balance, and fostering
              5.5                 GRI 405-2
                                                   women’s representation in business and
                                                   management at all levels, particularly
                                                   in middle and senior management.

              SDG 8               GRI 407-1        Indika Energy combats all forms of forced and
              Decent work and                      child labor in accordance with the standards set
              economic growth     GRI 408-1        by the International Labour Organization (ILO)
                                                   and local regulations across all locations of our
              Target:             GRI 409-1
                                                   operations. We respect the dignity and human
              8.5                                  rights of our workforce, business partners,
                                  GRI 410-1
              8.8                                  societies in which we live and work, and others
                                  GRI 2-25         potentially affected by our activities. We expect
                                                   our business partners to share our commitment
                                  GRI 2-30
                                                   to human rights and we leverage our business
                                                   relationships to advance human rights.

                                                   For further details, please see our Human
                                                   Rights policy at https://www.indikaenergy.
                                                   co.id/governance/gcg-updates/

                                                   All of our employees are provided with safe and
                                                   secure working environments, under which all
                                                   their rights and obligations under Collective
                                                   Bargaining Agreements are protected.



                                                                                                           57
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P T I N D I K A E N E R GY T B K .




                          SDG targets                                 GRI Disclosure   Our approach and key initiatives in 2023

                                               SDG 10                 GRI 2-22         In 2023, Indika Energy provided living
                                               Reduced inequalities                    income opportunities for 3,579 employees.
                                                                                       Our pay is based on thorough and objective
                                               Target:                                 benchmarks and market insights, therefore
                                               10.1                                    we ensure that our lowest compensation
                                                                                       ranges, including for entry-level positions,
                                                                                       are well above minimum wage.

                          G OV E R N A N C E   SDG 16                 GRI 205-1        At Indika Energy, we strive to build an
                                               Peace, justice and                      effective, accountable, and inclusive
                                               strong institutions    GRI 205-2        institution by implementing the following
                                                                                       five Good Corporate Governance principles:
                                               Target:                GRI 205-3
                                                                                       transparency, accountability, responsibility,
                                               16.3                                    independence, and fairness.
                                               16.5
                                               16.6                                    We also uphold a zero-tolerance policy
                                                                                       against bribery and corruption. Indika
                                                                                       Energy implements an Anti-Bribery
                                                                                       Management System across the Group,
                                                                                       and the Anti-Bribery Compliance Function
                                                                                       is responsible for ensuring compliance
                                                                                       with prevailing rules and regulations.

                                               SDG 17                                  At Indika Energy, we engage in public-private
                                               Partnership for                         partnerships as well as with civil society
                                               the goals                               organizations for sustainable development.

                                               Target:
                                               17.17




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Our commitment to incorporate                       Our commitment to the
the World Economic Forum (WEF)                      Indonesia Business Council for
Stakeholder Capitalism Metrics                      Sustainable Development (IBCSD)
(SCM)                                               Indika Energy is a proud member of the Indonesia
Businesses across the energy industry face          Business Council for Sustainable Development
increasing pressure to deliver sustainable          (IBCSD), which brings together companies and
prosperity while minimizing climate impact,         leaders from across a wide range of industries.
engaging a diverse workforce, and many other        We are part of a diverse group that is united in our
deliverables. We believe that increasing our        vision for sustainable development that furthers
accountability and transparency to all of our       Indonesia’s progress on meeting the SDGs.
stakeholders is also a crucial part of delivering   Through this platform, we are able to share best
sustainable value creation. With our goal of        practices, help guide the national conversation
working toward a more prosperous and fulfilled      on sustainability, and build consensus at the
society and a more sustainable relationship with    industry and policy levels about the importance of
our planet, we have pledged our commitment to       grounding growth in sustainable practices.
incorporate the World Economic Forum’s (WEF)
Stakeholder Capitalism Metrics (SCM) into our
                                                    Our commitment to the Powering
ESG reporting.
                                                    Past Coal Alliance (PPCA)
                                                    In one of the strongest demonstrations to date
Our commitment to support the                       of Indika Energy’s commitment to transitioning
United Nations Global Compact                       toward a low-carbon business path, we are proud
(UNGC)                                              to be the first, and to date only, Indonesian
Indika Energy pledged support for the Ten           company that is a member of the Powering
Principles of the United Nations Global Compact     Past Coal Alliance (PPCA). Announced at the
on human rights, labor, environment and anti-       COP26 climate summit in Glasgow in 2021, the
corruption. These principles align with our own     PPCA brings together national and subnational
commitments on the environmental, social and        governments, the private sector and other
governance aspects of our operations. We are        organizations that are driving the phase-out
committed to making the U.N. Global Compact         of coal and accelerating the transition to clean
and its principles part of the strategy, culture,   energy. Indika Energy’s own commitment is to
and day-to-day operations of the company, and       ensure at least half of our revenue comes from
to engage in collaborative projects that advance    non-coal streams by 2025, and transition to net-
the broader development goals of the U.N.,          zero greenhouse gas emissions by 2050 or sooner.
particularly the Sustainable Development Goals.




                                                                                                                        59
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Indika Nature adopts a regenerative approach to biomass production,
prioritizing sustainable practices that bolster ecosystem health and
resilience. This holistic strategy not only optimizes biomass yields
but also combats environmental degradation, facilitates carbon
sequestration, and nurtures the long-term vitality of ecosystems.
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                                                                                           SUSTAI NABI LI TY RE PO RT 2 0 2 3




SDG


                           3 0 2-1, 302-2, 302-3, 302-4, 302-5, 3-3, 303-1, 303-2 ,
                           3 0 3-3, 303-4, 303-5, 304-1, 304-2, 304-3, 304-4, 305-1 ,
GRI
                           3 0 5-2, 305-3, 305-4, 305-5, 305-7, 306-1, 306-2, 306-3 ,
                           3 0 6-4, 306-5

G L O B A L C O M PA C T   P R I N C I P L E 7, P R I N C I P L E 8, P R I N C I P L E 9

WEF SCM                    PLANET PILLAR




                           ENVIRONMENTAL
                            At Indika Energy, we are transforming how we do business to mitigate
                            the environmental impact of our company and that of our broader
                            ecosystem. In striking a balance between contributing to Indonesia’s
                            energy security and ensuring a just clean-energy transition, we have
                            tightened up our own emissions targets as we eye achieving net zero
                            emissions by 2050.

                            Our wide-ranging approach of Diversify-Divest-Decarbonize has kept
                            us well on track to achieving these goals. Beyond energy, we also
                            continue to shrink our waste and water footprints, using a combination
                            of industry best practices, an increasing shift to renewable alternatives,
                            and innovations tailored to our applications.

                            By doing less harm, we also seek to do more good. That is why our
                            approach includes landscape restoration and revitalization activities
                            that aim to maximize carbon storage, boost wildlife welfare, and
                            empower local communities all at the same time.




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02.1
—
Emissions and Energy

                                U N D E R LY I N G O U R CO M M I T M E N T TO AC H I E V I N G C A R B O N N E U T R A L I T Y I S O U R
                                A N N U A L G R E E N H O U S E G A S (G H G ) E M I S S I O N S I N V E N TO RY, W H I C H W E A I M TO
                                R E D U C E E V E RY Y E A R U N T I L W E G E T TO N E T Z E R O BY 2050.




Indika Energy is deeply aware of the vital role that
fuel and electricity play in powering our diverse
                                                             Emissions
operations. Fuel and electricity are essential for
                                                             Our approach [GRI 3-3]
the smooth operation of our machinery, heavy
equipment, and operational vehicles, as well as              Underlying our commitment to achieving carbon
for our daily office functions.                              neutrality is our annual greenhouse gas (GHG)
                                                             emissions inventory, which we aim to reduce
We fully understand the array of risks associated            every year until we get to net zero by 2050.
with emissions and energy consumption in
our activities. These risks include the physical             In 2023, we remodeled the way we calculate our
challenges posed by climate change, such as                  scope 1 and 2 emissions, aiming to make the
extreme heat and drought, as well as transitional,           baseline from which we are working more accurate
regulatory, market, and reputational risks.                  and comprehensive as well as standardizing our
                                                             methodology across the Group.
In response to these challenges, Indika Energy is
steadfast in its commitment to environmental                 We have also adjusted the organizational
stewardship. We have pledged to significantly                boundaries to no longer include emissions from
reduce our greenhouse gas (GHG) emissions and                Petrosea (from which we divested in 2022), and
enhance the proportion of renewable energy                   to include emissions from our new non-coal
utilized across our operations. Guided by our                ventures: Masmindo, Mekko, Indika Nature,
Environmental Policy, established in 2022, we                EMITS, Ilectra Motor Group, and Xapiens. This
are dedicated to adhering to best practices in               adjustment better reflects the strategic changes
sustainability. [GRI 3-3]                                    in the portfolio.

                                                             We calculate and manage our GHG emissions
                                                             inventory in alignment with the Greenhouse Gas
                                                             Protocol, quantifying the total GHG emissions
                                                             attributed to our direct and indirect operational
                                                             activities. In our calculation, we have incorporated



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                        emissions sources such as fugitive emissions from      ⚫   Completed the installation of 60 MW of solar
                        coal-mining activities as well as refrigerants and         photovoltaic capacity in Java, Bali, Sumatra,
                        process emissions. For other emissions sources             Kalimantan, Sulawesi and Maluku through
                        that we included in previous calculations, we have         our joint venture Empat Mitra Indika Tenaga
                        adjusted the emissions factors to ensure we follow         Surya (EMITS);
                        the same international standards across the
                        Group. Indika Energy has not started disclosing its    ⚫   Completed the construction of a wood pellet
                        Scope 3 emissions due to the the need to increase          factory in Paser, East Kalimantan, by Indika
                        our confidence level in the quality of the data            Nature, in preparation for exports of this
                        gathered. Indika Energy also does not produce              carbon-neutral fuel;
                        emissions from biogenic or biomass sources,
                                                                               ⚫   Acquired a stake in Natura Aromatik
                        therefore we do not report this data. [GRI 305-3]
                                                                                   Nusantara, a major producer of essential oils,
                        Having an accurate, transparent, and regularly             based in Solo, Central Java, to expand our
                        updated inventory allows us to understand the              presence into aromatic chemicals, essential
                        total impact of our ecosystem on the climate,              oils and natural extracts;
                        and in turn develop viable emissions reduction
                                                                               ⚫   Partnered with Slow Forest Coffee and
                        strategies to reach our net-zero goal by 2050.
                                                                                   Krakakoa, a producer of sustainable,
                        Strategies to reduce GHG emissions and                     traditional-grown coffee and cocoa, through
                        energy consumption                                         Laras Ekosistem Organik, a subsidiary of
                                                                                   Indika Nature.
                        How we deliver on our climate commitment can
                        be broken down into three approaches:                  2. Divesting from high-carbon industries

                        1. Diversifying into non-coal industries               In addition to diversifying into new businesses,
                                                                               we are also divesting out of legacy businesses as
                        One of the most meaningful ways to reduce              part of our emissions-slashing drive. In 2021, we
                        emissions is to invest in low- or no-emissions         divested our majority stake in Mitrabahtera Segara
                        businesses. This is why Indika Energy kicked           Sejati (MBSS), a major player in the coal-shipping
                        off its diversification journey in 2018, aiming to     sector. In 2022, we divested from Petrosea, a
                        expand beyond the core sectors of mining and           leading mining services and engineering provider.
                        energy. Having committed to a target of at least       And in 2023, we started the divestment process
                        50% of revenue coming from non-coal businesses         from Multi Tambangjaya Utama (MUTU), a top
                        by 2025, we have since invested in a wide range        miner of high-quality coal, marking significant
                        of businesses, ranging from electric vehicles to       progress in our transition away from carbon-
                        nature-based solutions.                                intensive business.

                        Our diversification highlights from 2023 include:      3. Decarbonizing our operations

                        ⚫     Launched our latest electric motorcycle          While diversification and divestment go some
                              model under the ALVA brand, the Cervo, and       way toward shrinking our carbon footprint, it is
                              investing in a manufacturing facility outside    inevitable that we will remain engaged in some
                              Jakarta;                                         carbon-intensive activities. For these, we continue,
                                                                               as we always have done, to seek ways to cut
                        ⚫     Expanded the brand offering we distribute        emissions as much as possible while maximizing
                              through our electric bus startup Energi          energy efficiency.
                              Makmur Buana (INVI);
                                                                               Our decarbonization and energy efficiency
                        ⚫     Worked with local communities and                highlights from 2023 include:
                              authorities in Luwu, South Sulawesi, in
                              preparation for the start of operations at our   ⚫   Increased use of biofuels at our operations
                              gold mine run by Masmindo;                           sites, including a shift to the cleaner B35
                                                                                   blend of biodiesel from the B30 blend used
                        ⚫     Managed our bauxite-mining concession run            previously;
                              by Mekko Mining;
                                                                               ⚫   Increased used of solar power through new
                                                                                   installations at our INDY Bintaro Office Park



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    (313 kWp), Interport Business Park (140 kWp),      2023 GHG emissions performance [GRI
    and Kideco site (409 kWp + 284 kWh battery);       305-1, 305-2, 305-4, 305-5]
⚫   Continued use of electric buses for employee       In 2023, Indika Energy achieved a 11.26% decrease
    transport in Kideco, thereby cutting our diesel    in our total direct (Scope 1) and indirect (Scope
    use;                                               2) greenhouse gas (GHG) emissions compared
                                                       to the year before. At Indika Energy, we adopt
⚫   Various energy efficiency initiatives in our       a comprehensive approach to measuring our
    mining activities, including mine road grade       environmental impact, focusing not just on
    management, installation of sound reduction        absolute emissions but also on emissions
    in heavy duty units, mini tower LED program,       intensity. We calculate emissions intensity using
    installation of slurry pump in excavators for      two key metrics: coal production and revenue.
    mud handling, etc.                                 The former provides insight into the efficiency
                                                       of our primary operation — coal mining — while
Non-GHG emissions                                      the latter offers a broader view of our operational
                                                       efficiency in all our operations including new
Our efforts to cut our diesel use, including through
                                                       ventures.
the increased adoption of biodiesel and the use
of solar power as an alternative energy source,        This year, we observed an increase in both
have also had the benefit of tackling our CO, NOx,     our production-based and revenue-based
SOx and particulate emissions from our diesel          emissions intensities, rising by 6.67% and 23.17%
generators.                                            respectively. These changes are attributed to a
                                                       significant reduction in both coal production
To manage our impact on air quality, Kideco
                                                       and revenue over the course of the year, relative
conducts emissions testing of these stationary
                                                       to 2022. This shift presents both challenges and
sources in external laboratories and monitors them
                                                       opportunities for Indika Energy as we navigate the
continuously to ensure they meet government-
                                                       complexities of the energy sector while steadfastly
stipulated quality standards (Peraturan Menteri
                                                       pursuing our sustainability objectives.
LHK No. 11/2021). Despite recording an increase
in NOx, SOx, CO, and particulate matter, testing       In 2021, Indika Energy embarked on a
throughout 2023 showed our emissions of these          transformative journey, redefining its purpose
pollutants remain well below the allowable limits.     and developing a comprehensive sustainability
                                                       strategy, alongside specific ESG targets for 2025,
Going forward, we will continue implementing
                                                       all grounded in data from the year 2020. This
measures to prevent and control these pollutant
                                                       pivotal year was selected as our baseline, setting
emissions, and explore new methods and
                                                       the stage for our progress measurements in the
technologies for doing so. As our carbon footprint
                                                       years to follow.
shrinks, we expect to see an associated decrease in
these types of emissions as well.                      Reflecting on our achievements since this strategic
                                                       pivot, we are proud to report remarkable progress
Emissions containing ozone-depleting                   in 2023. Despite the significant expansion of our
substances                                             reporting boundaries, we successfully reduced our
                                                       revenue-based intensity by 50.80% and recorded
Another class of pollutants of high concern are
                                                       a slight increase of our production-based intensity
ozone-depleting substances (ODS), typically
                                                       by 0.81% compared to our 2020 baseline.
found in air-conditioning systems, refrigerators
and fire extinguishers. While the world has made
major strides, through the Montreal Protocol,
to phase out these harmful substances, they
continue to be produced and distributed, albeit at
a much smaller scale than previously. For our part,
Indika Energy does not produce, import or export
ozone-depleting substances, hence why we do not
measure ODS emissions. Nevertheless, we have
switched to using air-conditioning units with the
ozone-friendly refrigerant R410a in most of our
offices. [GRI 305-6]


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  P T I N D I K A E N E R GY T B K .




          SCOPE 1 AND 2 GHG EMISSIONS                                                      SCOPE 1 AND SCOPE 2 GHG
          TONCO2EQ                                                                         EMISSIONS INTENSITY [GRI 305-4]

                                                1,023,433        6,576                     338
2023                                                                                                                  TCO2E/USD MILLION REVENUE
                                                                                           0.031
                                                                                                                      TCO2E/TON COAL PRODUCTION
                                                       1,155,280         5,482
2022                                                                                              GHG EMISSIONS BY SOURCE
                                                                                                                   1%
                                                                                                                        3%
2021                                                                1,197,167         3,866 26%


                                                          Scope 1         Scope 2

                          Note:
                          ⚫    Gases included in the calculation: CO2, CH4,
                               N2O. GWP rates used for calculating Scope 1 and
                                                                                                                                           70%
                               2 emissions are based on the Intergovernmental
                               Panel on Climate Change (IPCC) Fifth Assessment
                               Report (AR5): CO2 = 1, CH4 = 28, N2O = 265. [GRI               Stationary combustion           Mobile combustion
                               305-1, 305-2]
                                                                                              Fugitive emissions and others   Electricity comsumption

                          ⚫    2021 Scope 1 and 2 GHG emissions data is compiled
                               based on Kideco, Petrosea (divested in 2022),
                               Tripatra, MUTU, and Interport. 2022 and 2023                Note:
                               figures include Kideco, Tripatra, Interport, Indika         Figures include Kideco, Tripatra, Interport, Indika
                               Indonesia Resources, EMITS, Ilectra Motor Group,            Indonesia Resources, EMITS, Ilectra Motor Group,
                               Xapiens, Masmindo, Mekko, Indika Nature, and                Xapiens, Masmindo, Mekko, Indika Nature, and
                               Indika Energy Holding.                                      Indika Energy Holding.
                          ⚫    Indika Energy uses the operational control
                               to consolidate emissions data. Indika Energy                2023 energy performance [GRI
                               consolidates the data from these subsidiaries               302-1]
                               quarterly through the use of an internal ESG
                               Dashboard [GRI 305-1].                                      In 2023, we observed a modest reduction
                          ⚫    Scope 1 emission factors [GRI 305-1]:
                                                                                           of 4.01% in our overall energy usage
                                                                                           compared to the year before. Notably, due
                                ⚫      100% mineral diesel: 0.00256 tCO2e per liter
                                ⚫      B30: 0.00191 tCO2e per liter                        to the shift to B35 biofuels, our consumption
                                ⚫      B35: 0.00179 tCO2e per liter                        of renewable energy sources experienced
                                ⚫      Refrigerant R-410A: 1.924 tCO2e per kg              an increase, contributing to a decline in
                                ⚫      Refrigerant R-134A: 1.3 tCO2e per kg
                                                                                           our reliance on non-renewable energy. This
                                ⚫      Refrigerant R-32: 0.677 tCO2e per kg
                                                                                           positive shift resulted in an enhancement
                          ⚫    Scope 2 emission factors are derived from the
                               Indonesian Ministry of Energy and Mineral                   of our renewable energy mix, which grew
                               Resources: https://jdih.esdm.go.id/index.php/web/           from 27.75% to an impressive 33.37%.
                               result/2183/detail [GRI 305-2]
                                                                                           We witnessed growth in both our
                                                                                           production- and revenue-based energy
                                                                                           consumption intensities, rising by 15.13%
                                                                                           and 33.23%, respectively. This significant
                                                                                           rise primarily stems from a reduction in coal
                                                                                           production scale and a decrease in revenue
                                                                                           in 2023, against the backdrop of 2022’s
                                                                                           unusually high coal prices. Additionally,
                                                                                           with our new ventures starting or ramping
                                                                                           up their operations, we only saw a small
                                                                                           decrease in energy consumption despite
                                                                                           our energy efficiency efforts.




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      Since establishing our 2020 baseline, we have successfully reduced our energy consumption by 24.83%. This milestone
      reflects our steadfast commitment to environmental stewardship and our ongoing efforts to operate more sustainably.


       E N E R GY S O U R C E                                 UNIT               2022         %                  2023


       Renewable energy consumption

       Solar Photovoltaic                                     GJ                 5,694        -84.06%            907

       Biofuel                                                GJ                 4,270,819    15.58%             4,936,382

       Total renewable energy consumption                     GJ                 4,276,513    15.45%             4,937,289

       Non-renewable energy consumption

       Diesel fuel and petrol                                 GJ                 11,114,064   -11.52%            9,833,354

       Electricity on-grid                                    GJ                 22,879       4.90%              24,001

       Total non-renewable energy consumption                 GJ                 11,136,943   -11.49%            9,857,355

       Total energy consumption                               GJ                 15,413,456   -4.01%             14,794,645




                 RENEWABLE ENERGY MIX IN 2022




                                                       Renewable energy
                                                                27.75%

Non-renewable energy
72.25%                                                                               RENEWABLE ENERGY MIX IN 2023


            Note:
            ⚫    Figures include Kideco, Tripatra,
                 Interport, Indika Indonesia Resources,                                                                Renewable energy
                 EMITS, Ilectra Motor Group, Xapiens,                                                                           33.37%
                 Masmindo, Mekko, Indika Nature, and
                 Indika Energy Holding.                               Non-renewable energy
                                                                      66.63%

            ⚫    The biodiesel blend in the B30 or B35
                 fuel is factored into the renewable
                 energy consumption calculation. Aside
                 from that, use of electricity generated
                 from solar PV is also included in the
                 renewable energy portion.




      For further details on 2023 perfomance, please see Appendix



                                                                                                                                          67
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It’s Always Sunny
at Indika Energy
At the present time, renewable power accounts for
33.3% of Indika Energy’s total energy mix, with solar
photovoltaic contributing 907 Gigajoules of energy.

At the Kideco site in Paser, East Kalimantan, our solar
side quest began with 409 kWp of solar photovoltaic
and a 284 kWh battery, lighting up employee housing.
Installed by Empat Mitra Indika Tenaga Surya, 999 solar
panels and three inverters have brought this vision to life.

Expanding our reach, INDY Bintaro Office Park saw a 313
kWp rooftop solar array installed in 2021, expanding our
commitment to renewable energy.

Most recently, Interport Business Park in Kariangau
welcomed on-grid rooftop solar photovoltaic enough to
meet approximately 7% of the facility’s electricity needs,
again thanks to the expertise of EMITS.
                                                               252,053
With each installation, we’re forging a greener, brighter
                                                               KWH ELECTRICITY PRODUCED
future, one panel at a time.
                                                               W I T H S O L A R P H OTOVO LTA I C
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02.2
—
Water and Effluents

                          WAT E R I S L I F E , A N D I N A C L I M AT E O F G LO BA L WA R M I N G , I T I S A L S O A N
                          I N C R E A S I N G LY P R E C I O U S R E S O U R C E . AT I N D I K A E N E R GY, W E R E A F F I R M O U R
                          D E D I C AT I O N TO S U S TA I N A B L E WAT E R M A N AG E M E N T, P R I O R I T I Z I N G T H E
                          CO N S E RVAT I O N O F T H I S F I N I T E R E S O U R C E W H I L E E N S U R I N G T H E W E L L-
                          B E I N G O F LO C A L CO M M U N I T I E S W H O A L S O D E P E N D O N I T.




                                                                    Indika Energy operates two sites - Interport’s
Our approach [GRI 303-1]                                            Babelan site and ALVA’s Cikarang plant - situated
We are deeply committed to responsible                              in regions identified by the WRI’s Aqueduct
water use, ensuring that our activities do not                      Water Risk Atlas as having high water stress. Our
compromise access to this vital resource for others.                control over water usage at these locations is
Recognizing the potential for contamination of                      limited since the Babelan site and the Cikarang
surface and groundwater through the leaching                        plant receive water supply from a client and
of chemicals and heavy metals—stemming                              the industrial estate respectively. Aware of the
from mine runoff, waste disposal, and the use of                    critical importance of water conservation in these
chemicals in processing—we place a high value on                    regions, we have intensified our water efficiency
the well-being of nearby communities, as well as                    measures to mitigate environmental impacts.
the health of aquatic life and ecosystems.
                                                                    We remain steadfast in our commitment to
We closely monitor our water usage, treatment                       responsible water stewardship, recognizing the
and discharge processes using a flow meter                          pivotal role it plays in our operations and the
across all operational sites, implementing                          broader community.
quarterly assessments to enhance efficiency
and accountability. The data collected is
compiled from all subsidiaries and reported                         Water usage [GRI 303-1]
to the Sustainability Committee quarterly for                       Indika Energy uses water from various sources:
further evaluation of ongoing initiatives and                       surface water, groundwater and seawater at our
for monitoring progress against our 2025 and                        various operational sites, and piped water from
2030 water withdrawal intensity targets. Regular                    the local utility at our head office. Surface water
environmental assessments, conducted every                          is taken from rivers such as Sungai Biu, Sungai
six months, involve accredited personnel and                        Seratai, Anak Sungai Kasungai, and Anak Sungai
adhere to Indonesian National Standards (SNI),                      Samurangau, as well as other sources such as
safeguarding water bodies and seawater quality.                     Waduk Tandarayan and Kolam Tadah Hujan Lolo.




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                        Water efficiency initiatives
                        At the Kideco site, we prioritize responsible water
                        management practices, implementing closed             WATER WITHDRAWAL
                        circuit systems for vehicle washing; we employ        BY SOURCE [GRI 303-3]
                        a similar system for ore processing at Mekko to       Third party water
                        recycle water efficiently. Holding permits for        1.2%
                        water extraction and reuse, we collaborate with       Sea water
                        contractors to conduct rainwater harvesting and       11.1%
                                                                              Ground water
                        promote greywater reuse for non-consumption
                                                                              0.6%
                        purposes. Additionally, our innovative nozzle-
                                                                              Surface water
                        equipped fog cannons and big gun sprinklers           87.1%
                        ensure precise water distribution in our coal
                        stockpile yard, reducing consumption while
                        maintaining effectiveness. These initiatives
                        underscore our commitment to sustainability,
                        reflecting our dedication to environmental
                        stewardship and resource efficiency across our
                        operations.


                        Water discharge [GRI 303-2]                                  WATER WITHDRAWAL
                                                                                     AND RECYCLING PERFORMANCE [GRI 303-3]
                        We always prioritize the proper management
                                                                                     (megaliters)
                        of effluents and wastewater, understanding the
                        potential risks they pose to destination water
                                                                              2023
                                                                                               2,830                     1,952
                        bodies and the surrounding communities’ water
                        supply quality. As part of this commitment,
                        we meticulously monitor and report our water
                                                                                                               4,896                                 2,296
                        treatment processes, ensuring compliance              2022

                        with acceptable standards of water quality,
                        encompassing factors such as pH levels and
                        turbidity, before any release. Moreover, our          2021
                                                                                                       3,865                        909

                        effluent management practices adhere strictly to
                        both local and national regulations.
                                                                                     0        1.000     2.000          3.000     4.000      5.000    6.000   7.000   8.000

                                                                                                           Water withdrawal               Water recycled

                         2023 WATER AND EFFLUENTS                             For further details on 2023 perfomance, please see Appendix
                         PERFORMANCE
                         [GRI 303-3. 303-4, 303-5]

                         WATER WITHDRAWAL


                                     42%      2023: 2,830 ML
                                              2022: 4,896 ML


                         WATER CONSUMPTION


                                     42%      2023: 2,819 ML
                                              2022: 4,881 ML

                         WATER DISCHARGE
                         (megaliters)


                                     33%      2023: 212,812 ML
                                              2022: 317,812 ML




70
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                                                                “We used to have to spend hours fetching water,
                                                                carrying heavy buckets from the river. But now clean
                                                                water is easier to get. I can grow vegetables now and
                                                                my daughter can go to school.” - Mama Emi, resident
                                                                of Wekeke Village


                                                                “We thank Solar Chapter and Indika Energy and the
                                                                other support we have received as an extension of
                                                                God’s love. Water is now flowing in Boen Village, and
                                                                thank God we can feel the pleasure of clean water.” -
                                                                Father Teddy, priest and community leader in Boen
                                                                Village.




Giving the gift of water,
courtesy of the sun
Boen Village, about an eight-hour drive from Kupang in Nusa Tenggara Timur Province, faces significant
challenges due to limited infrastructure and tough terrain. Despite being home to more than 1,000 residents,
the village has untapped economic potential, primarily in food crop production. However, the community’s
development is hampered by the critical issue of water scarcity, forcing residents to travel long distances daily
to obtain water from the Benanain River, their sole water source.

This water scarcity has far-reaching implications, affecting various aspects of community life, including
sanitation, education, productivity, and the economy. The financial burden of purchasing water, which can
consume up to 74% of the average monthly income, exacerbates the situation.

In response to this pressing need, in collaboration with Solar Chapter, the initiator of the Water for Boen
program, Indika Energy assisted units of solar photovoltaic for Boen Village. Harnessing the abundant sunlight
in this region of eastern Indonesia, a piped water distribution network was developed using pumps powered
by solar energy. This emissions-free and sustainable solution was successfully completed on Indonesian
Independence Day, August 17th 2023, following meticulous planning and execution.

The installation comprises a solar photovoltaic array from EMITS with total power capacity of 9,900 Wp,
which serves as the backbone of the pump system, facilitating water distribution throughout the village. This
transformative initiative aims not only to address the immediate water needs of the community but also
to unlock the village’s economic potential, fostering opportunities for improved welfare and health among
residents.

Through this collaborative effort, Indika Energy and Solar Chapter Indonesia are committed to empowering
Boen Village with sustainable access to clean water, catalyzing positive socio-economic development and
enhancing the quality of life for residents.
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P T I N D I K A E N E R GY T B K .




                        02.3
                        —
                        Waste Management


                                                BY    PRIORITIZING         WA S T E     REDUCTION,         R E C YC L I N G ,   AND    RESPONSIBLE
                                                D I S P O SA L M E T H O D S , W E A I M TO M I N I M I Z E O U R E N V I R O N M E N TA L FO OT P R I N T
                                                A N D SA F E G U A R D T H E E CO SYS T E M S I N W H I C H W E O P E R AT E .




                        Indika     Energy’s     operational    endeavors,                recycling, and responsible disposal methods, we
                        particularly at Kideco and Interport, inevitably                 aim to minimize our environmental footprint and
                        produce both hazardous and non-hazardous                         safeguard the ecosystems in which we operate.
                        waste. This waste spectrum encompasses a variety                 Through ongoing assessment and improvement
                        of materials, from used oil and contaminated                     of our waste management strategies, we remain
                        equipment to used conveyor belts and livestock                   steadfast in our commitment to responsible waste
                        manure. Hazardous waste mainly comes from the                    handling. [GRI 3-3, 306-1]
                        operation of heavy machinery and the activities
                        within our on-site health facilities and clinics.
                        Non-hazardous waste includes everyday domestic
                                                                                         Our approach [GRI 3-3, 306-2]
                        waste from our offices and the operations of dump                At the Group level, we diligently collect and
                        truck units and conveyor belts. Furthermore, our                 monitor waste-related data quarterly, utilizing an
                        coal mining endeavors at Kideco result in the                    ESG Dashboard to track our progress against our
                        production of overburden and topsoil.                            targets. Additionally, at the subsidiary level, waste
                                                                                         data is collected on a monthly basis, ensuring
                        We recognize that there are various risks related                thorough oversight of our waste management
                        to the potential negative impacts that waste                     practices. These data are then reported to our
                        from our operations, whether hazardous or non-                   Sustainability Committee and used to evaluate
                        hazardous, could bring to the environment and                    the effectiveness of existing waste management
                        society, such as the potential threat of marine                  programs in our subsidiaries.
                        pollution resulting from leakage of discarded
                        plastic packaging into water bodies, soil                        In our efforts to minimize waste generation,
                        contamination, and public health hazards.                        meticulous project planning plays a pivotal role.
                                                                                         Moreover, at Kideco, we prioritize maximizing the
                        Understanding the potential environmental                        lifespan of used tires by retreading and regrooving
                        impacts of improper waste management, we                         them from heavy-duty units. When tires are no
                        are committed to implementing comprehensive                      longer suitable for retreading, we repurpose them
                        waste management practices across all facets of                  for various applications, including road markings
                        our operations. By prioritizing waste reduction,                 and drop structures in reclamation areas.


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                                                                                                               SUSTAI NABI LI TY RE PO RT 2 0 2 3




           The management of hazardous waste is executed with utmost care. We temporarily store hazardous
           waste at licensed temporary processing sites (TPS) before managing it according to its type. At
           Kideco, we are pioneering eco-conscious practices by repurposing waste lubricant oil, integrating it
           as a sustainable substitute for a portion of the diesel oil typically used in ammonium nitrate fuel
           oil (ANFO) explosives for our blasting activities. Meanwhile, some hazardous waste is entrusted to
           licensed third parties for further management, whether it be landfilled or reused and recycled.

           Through these initiatives, we aim not only to mitigate environmental risks but also to foster a culture
           of sustainability within our operations. By prioritizing responsible waste management practices, we
           strive to minimize our environmental footprint and contribute positively to the communities and
           ecosystems in which we operate.


           2023 Waste management performance


               WASTE GENERATED IN 2022 (TONS) [GRI 306-3]                                      WASTE GENERATED IN 2023 (TONS) [GRI 306-3]



                                                                                                                             4,324       Hazardous waste
                                                  6,871           6,871waste
                                                             Hazardous                                                         6,871             26.6%
                                                                     35.0%
           Non-hazardous    12,752                                                      Non-hazardous     11,956
                                                                                                          12,752
           65.0%                                                                        73.4%




        WASTE DIVERTED FROM DISPOSAL IN 2022 (TONS) [GRI 306-4]



                                                  3,539     Hazardous waste
6,871                                                               38.9%

            Non-hazardous     5,563                                   WASTE DIVERTED FROM DISPOSAL IN 2023 (TONS) [GRI 306-4]
            61.1%



                                                                                                                    3,539
                                                                                                                   3,845    Hazardous waste
                                                          6,871                                                                        38.9%

                                                                               Non-hazardous      5,535
                                                                               61.1%




                                                                                                                                                 73
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P T I N D I K A E N E R GY T B K .




                         Significant spills in Indika Energy

                         Type of spill                             Unit               2021         %            2022          %           2023
                         Oil spill                                 m3                 0.02         -100.00%     0.00          100.00%     0.10
                         Fuel spill                                m3                 0.00         0.00%        0.00          0.00%       0.00
                         Spills of waste                           m3                 0.00         0.00%        0.00          0.00%       0.00
                         Spills of chemicals                       m3                 0.02         -100.00%     0.00          0.00%       0.00
                         Total                                     m3                 0.04         -100.00%     0.00          100.00%     0.10

                        In 2023, despite efforts to maintain zero spills, we
                        recorded two oil spill incidents at Tripatra’s sites
                        for the Tangguh and SPV projects. Responding to
                        these incidents, measures were taken to prevent a
                        recurrence in future:

                        Project Tangguh Expansion Project (TEP)                       Project South Pacific Viscose

                        ⚫     Every new personnel going through                       ⚫   Organizing an emergency spill response for
                              onboarding to work on the TEP project is                    spill scenarios and must be implemented
                              required to take part in Spill Prevention                   to ensure the readiness of personnel in their
                              Training, which provides information                        respective roles and responsibilities.
                              regarding potential spills, spill handling tools,
                              spill handling systems, emergency spill drills,         ⚫   Personnel must carry out routine inspections.
                              etc                                                     ⚫   An emergency spill response team must be
                        ⚫     The TEP Project also details spill handling                 present on site.
                              procedures in the Environment Management                ⚫   Spill response must be carried out according
                              Plan and ERP.                                               to existing procedures.
                        ⚫     The ERP explains the team’s response if a               ⚫   Spill handling equipment must be provided
                              spill occurs, as well as pre-planning for spill             on site.
                              conditions that occur
                                                                                      ⚫   Personnel must carry         out   recording/
                        ⚫     The Environmental Management Plan                           documentation of spills.
                              contains provisions and procedures for how to
                              handle spills that occur and what needs to be
                              prepared to prevent spills from occurring.

                        ⚫     Personnel must carry          out    recording/
                              documentation of spills.




                        For further details on 2023 perfomance, please see Appendix



74
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From trash to treasure,
with wise waste
management
In 2023, we launched the “Bijak Kelola Sampah” program at
our Graha Mitra office in Jakarta as part of our commitment to
sustainable waste management practices. Through this initiative,
we actively engage our employees in sorting waste into three
categories: organic, non-organic, and residue.

Collaborating with Waste4Change, a social enterprise dedicated
to zero-waste-to-landfill solutions in Indonesia, we aim to instill a
culture of waste reduction and responsible disposal among Indika
Energy employees, cleaning staff, and building management.

Our waste management strategy focuses on reducing landfill waste
by implementing sustainable solutions for each waste category.
Organic waste can be composted by black soldier flies (BSF), whose
larvae can then be used as livestock feed, perpetuating a circular
system and contributing to organic waste reduction. For non-
organic waste, various options exist, including shredding plastic
waste, compacting paper waste, and packaging glass and metal
waste for safe distribution to Waste4Change recycling partners.
Residual waste, meanwhile, undergoes a process using Refuse-
Derived Fuel (RDF) technology to convert it into alternative fuel,
further minimizing our environmental impact.

The implementation of the “Bijak Kelola Sampah” program
has enabled us to measure waste management data regularly,
facilitating monthly reports on waste generation and sorting trends.
This data not only informs our sustainability reporting but also aids
in evaluating the effectiveness of our waste management efforts
and identifying areas for improvement.

Inspired by the success of the program at our Graha Mitra office,
two of our subsidiaries, Indika Indonesia Resources and Indika
Nature, have initiated their own waste management programs in
collaboration with Waste4Change. Together, we are driving positive
change and fostering a more sustainable future through responsible
waste management practices.
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P T I N D I K A E N E R GY T B K .




                        02.4
                        —
                        Biodiversity and Land Use

                                     OUR     CO M M I T M E N T     TO     ESG     PRINCIPLES          EXTENDS         TO    THE      P R E S E RVAT I O N       AND
                                     E N H A N C E M E N T O F B I O D I V E R S I T Y I N A R E A S W H E R E W E O P E R AT E , F R O M CO M I N G U P W I T H
                                     B I O D I V E R S I T Y M A N AG E M E N T S T R AT E G I E S , TO M I N I M I Z I N G O U R E N V I R O N M E N TA L I M PAC T,
                                     P R OT E C T I N G S E N S I T I V E H A B I TAT S , A N D P R O M OT I N G B I O D I V E R S I T Y CO N S E RVAT I O N .




                                                                                                 At Indika Energy, we collect biodiversity and
                        Our approach [GRI 3-3]                                                   land reclamation data from relevant subsidiaries
                        We realize that our operations can have                                  quarterly through the use of an ESG Dashboard,
                        significant impacts on local biodiversity, affecting                     which is later reported to the Sustainability
                        ecosystems in various direct and indirect ways.                          Committee for further evaluation. [GRI 304-3]
                        The disruption of land, especially to access coal
                        reserves, leads to habitat fragmentation and                             Managing biodiversity at Kideco and
                        alteration, directly threatening the survival of                         Indika Nature [GRI 3-3, 304-1, 304-2,
                        local flora and fauna. Such disturbances can result                      304-3]
                        in the displacement of species and reduction in
                        biodiversity, potentially leading to long-term                           Kideco’s mining activities cover 11,974 hectares in
                        ecological imbalance.                                                    Paser, East Kalimantan, and include the areas of
                                                                                                 Roto Samurangau and Susubang Uko, which are
                        Therefore, as responsible corporate citizens, we                         largely production and limited production forests
                        recognize the critical importance of biodiversity                        respectively. Part of Kideco’s transshipment
                        conservation in sustaining healthy ecosystems                            port also overlaps with Adang Bay Nature
                        and supporting local communities. Our                                    Reserve, a designated protected forest due to
                        commitment to ESG principles extends to the                              its high biodiversity conservation value, while
                        preservation and enhancement of biodiversity                             adjacent to the Kideco site sits Mount Jondang,
                        in areas where we operate, from coming up                                which we recognize internally as a biodiversity
                        with biodiversity management strategies, to                              conservation area based on criteria in the 1990
                        minimizing our environmental impact, protecting                          Natural Resources Conservation Law and the 1999
                        sensitive habitats, and promoting biodiversity                           government regulation on protected species.
                        conservation. Through proactive measures and
                        stakeholder engagement, we aim to mitigate                               Given the sensitivity and importance of the
                        biodiversity risks and contribute to the long-term                       habitats around us, we have a duty of care to
                        ecological resilience of our operational areas.                          minimize our footprint and offset its impact.
                                                                                                 Through the Kideco Care program, the company
                                                                                                 collaborates with local communities to cultivate



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                                                                                                    SUSTAI NABI LI TY RE PO RT 2 0 2 3




native tree species in nurseries, which are then       Indika Nature continues to identify and develop biodiversity
planted to establish forest corridors connecting       programs, as well as to explore potential collaboration with
fragmented patches of forest and facilitating          third parties for biodiversity measures. [GRI 304-3]
wildlife movement. Studies indicate successful
biodiversity conservation efforts in the reclaimed
                                                       IUCN Red List Species in areas managed by Indika
areas, demonstrating comparable biodiversity
                                                       Energy Group [GRI 304-2, 304-4]
levels to surrounding natural forests and providing
habitat for endangered species.
                                                       LEVEL OF EXTINCTION RISK           2021             2022           2023

Biodiversity monitoring has revealed the presence
                                                       Critically endangered              1                1              17
of hundreds of mammal, bird, amphibian, reptile
and insect species across our reclamation areas,       Endangered                         5                7              41
where food chains have been established,               Vulnerable                         14               14             93
marking them out as functioning wildlife habitat.
                                                       Near threatened                    26               26             91
Furthermore, studies have shown that at Kideco’s
Tandarayan Arboretum reclamation area, no              Least concern                      205              209            242
pests were found to disturb the area’s flora and
                                                       Note: 2021 and 2022 data is derived from Kideco only, while 2023 data
fauna. Kideco partners with Ecositrop to protect       already includes Kideco and Indika Nature.
and restore habitat areas, further enhancing
biodiversity conservation measures.                    Fauna biodiversity performance by species [GRI
                                                       304-2]
Kideco has also developed Mine Closure Plans for
each site, with Roto Samurangau’s plan drafted in
                                                       DESCRIPTION                            2021             2022            20 2 3
2020-2021 and approved in 2022, and Susubang
Uko’s plan drafted in 2018-2019 and approved           Mammal                                 47               49              49
in 2019. These plans, covering the entire mining       Avifauna                               134              138             141
operation area in Paser, are communicated to
                                                       Herpetofauna                           34               44              45
relevant stakeholders to ensure transparency
and alignment with environmental regulations           Insects                                424              429             446
and community interests. Provincial financial          Note: This data has received recognition through ISBN No. 978-
allocations, which include an environmental            602.50513-3-3.
cost component in our Financial Statements,
support our commitment to land reclamation and         List of flora and fauna recorded at the Tandarayan
rehabilitation.                                        Arboretum reclamation area [GRI 304-4]

Another subsidiary, Indika Nature, protects                                                                           S TAT U S B A S E D
                                                        LO C A L N A M E            SCIENTIFIC NAME                   ON IUCN RED
and manages a 170,000-hectare site in East                                                                            LIST
Kalimantan, home to critically endangered
wildlife like helmeted hornbills (Rhinoplax vigil),     Sunda pangolin              Manis javanica                    Critically
Sunda pangolins (Manis javanica) and trees like                                                                       endangered
bangkirai (Hopea ferruginea), a prized timber           Proboscis monkey            Nasalis larvatus                  Endangered
tree. It operates within landscapes of significant
                                                        Muller’s gibbon             Hylobates muelleri                Endangered
ecological importance. For instance, 9,137 hectares
of our Jaya Bumi Paser site is nestled next to areas    Bay cat                     Catopuma badia                    Endangered
of high conservation value. This site is dedicated
                                                        Long-tailed macaque         Macaca fascicularis               Endangered
to the cultivation of Calliandra for the production
of biomass. In addition, our Telaga Mas                 Southern pig-               Macaca nemestrina                 Endangered
Kalimantan site spans 21,461 hectares, positioned       tailed macaque
adjacent to an area of high conservation value.         Greater green leafbird      Chloropsis sonnerati              Endangered
We also identified a high conservation value area
bordering our Trisetia Citra Graha site covering an     Buff-rumped                 Meiglyptes tristis                Endangered
area of 7,040 hectares. These high conservation         woodpecker
value areas have been identified based on
practices outlined in the HCV Resources Network
guidance.




                                                                                                                                        77
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P T I N D I K A E N E R GY T B K .




                        Area of land reclamation [GRI 304-3]
                                                                                  2021                                       2022                                        2023
                         DESCRIPTION                 UNIT
                                                               R E A L I Z AT I O N   C U M U L AT I V E   R E A L I Z AT I O N   C U M U L AT I V E   R E A L I Z AT I O N   C U M U L AT I V E

                         Kideco                      Ha        471.64                 4,609.37             440.69                 5,050.06             79.97                  5,130.03
                         Mekko                       Ha        0.00                   0.00                 0.00                   0.00                 6.00                   6.00
                         MUTU                        Ha        81.13                  445.36               160.00                 605.36               138.03                 743.39
                         Total                       Ha        552.77                 5,054.73             600.69                 5,655.42             224.00                 5,879.42

                        Note:
                        ⚫     With the accomplished area of land reclamation as displayed in the table above, we have achieved the targets we
                              have set in our annual and five-year Mine Reclamation Plan that has been approved by the government.
                        ⚫     None of the reclamation area has been handed over to the government.




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                                                                      35.35 ha
                                                                      P L A N T E D A R E A A S O F 2023


                                                                      46,600+ trees
                                                                      P L A N T E D I N 2023 A N D E X P E C T E D TO G R O W


                                                                      573.3 tonCO2e
                                                                      E X P E C T E D TO S E Q U E S T E R F R O M 46, 60 0 +
                                                                      M A N G R OV E T R E E S P L A N T E D I N 2023




Growing the ‘rainforests of the sea’
Mangroves are often referred to as the “rainforests of the sea,” but these vital coastal ecosystems are even
more impressive than the name suggests. Hectare for hectare, mangroves store more carbon than any kind of
terrestrial forest, making their preservation hugely important in the fight against climate change.

Mangroves also support diverse marine and terrestrial biodiversity, providing habitat for numerous species
of fish, birds and other wildlife. Additionally, they offer valuable resources and ecosystem services to coastal
communities, including fisheries support, timber and medicinal plants, and serve as buffers against tidal
surges and tropical storms.

Reflecting the urgent need for conservation efforts to safeguard these invaluable ecosystems and the benefits
they provide to both nature and society, the Indika Energy Mangrove Program in Action (IMPACT) was launched
in March 2023 in Paser, East Kalimantan.

This three-year initiative transcends traditional mangrove restoration, emphasizing community empowerment,
environmental resilience, and sustainable development. By empowering local communities to engage in
mangrove preservation and restoration, we foster a symbiotic relationship between nature and people.

Working with government entities, local communities, and Maroon, our implementing partner, we have been
able to amplify our collective efforts to protect and rehabilitate mangroves, contributing to broader goals of
carbon neutrality in Indonesia.

Our ambitious plans entail mangrove rehabilitation across 250 hectares of land in Lori, Sungai Langir, Tajur, and
Pasir Mayang villages. Prioritizing four mangrove species based on natural conditions and local dominance, we
anticipate significant ecological benefits and carbon sequestration potential.

To date, we have planted over 46,600 mangrove seedlings across 35.35 hectares, marking strides toward
our 2025 target. Beyond the ecological benefits, IMPACT underscores our commitment to safeguarding the
economic livelihoods of coastal communities, fostering resilience and sustainability. Through initiatives like
IMPACT, Indika Energy continues to lead by example, driving positive change for the environment and society
alike
Page 80
Across our 5.6 hectare biomass nursery,
we foster sustainable solutions, nurturing
the growth of renewable resources while
promoting environmental stewardship.
Page 81
SDG


                           2 0 3-1, 203-2, 3-3, 401-1, 401-2, 403-1, 403-2, 403-3 ,
                           4 0 3-4, 403-5, 403-6, 403-7, 403-8, 403-9, 403-10, 404- 1 ,
GRI
                           4 0 4-2, 404-3, 405-1, 405-2, 406-1, 407-1, 408-1, 409-1 ,
                           4 1 3-1, 413-2

G L O B A L C O M PA C T   P R I N C I P L E 3, P R I N C I P L E 4, P R I N C I P L E 5, P R I N C I P L E 6

WEF SCM                    PEOPLE AND PROSPERITY PILLARS




                           SOCIAL
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P T I N D I K A E N E R GY T B K .




                        03.1
                        —
                        Developing Our Human Capital
                                                                              Talent attraction: We follow a clear policy to
                        Developing our human capital                          eliminate bias and ensure sourcing channels do
                        Our employees are the cornerstone of our              not discriminate applicants, either directly or
                        company’s success, bringing our vision to life        indirectly. Any official recruitment posts with
                        and leading our efforts to continue delivering        clearly defined job descriptions are coordinated
                        innovative, high-quality, and impactful solutions     by a dedicated human capital recruitment team
                        for all our users. We know to attract the right       to ensure quality, be clear about expectations for
                        talent, with the minds, hearts, and commitment        candidates, and prevent fraudulent applications.
                        to help deliver our mission and drive impact across
                        our ecosystem, we have to establish the necessary     Recruitment: Our recruitment team alongside
                        support system and channels for our employees to      hiring managers and employees with relevant
                        continuously grow and thrive.                         subject matter expertise, partake in candidate
                                                                              interviews and screening, using the established
                        We also adhere to a strong ethical code of conduct    evaluation criteria.
                        and expect all our employees and business
                        partners to share and respect those values as         Our efforts in 2023 led to a significant growth
                        part of contributing to a more transparent,           in our teams across the nation, with current
                        accountable, and safe working environment.            employment of 3,579 across all levels.


                        Our approach [GRI 3-3, 404-2]
                                                                                   FROM 8.67% TO 4.46%
                        Attracting the right talent                                R E D U C T I O N I N E M P LOY E E T U R N OV E R
                        We pay close attention to how we attract and
                        assess talent at every step of the recruitment and         BY 2.55% TO USD 735,037
                        hiring process. We are also focused on “culture
                        add” and values when evaluating candidates,                INCREASE IN TRAINING AND

                        looking to hire people with different backgrounds          D E V E LO P M E N T E X P E N D I T U R E

                        and a wide range of experiences. That means
                        we focus on how a candidate can add to Indika              For further details on 2023 perfomance,
                        Energy’s culture, not simply how they might                please see Appendix
                        fit in. When we look at hiring, we also consider
                        geographic and socioeconomic diversity for better
                        representation.




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                                                                                                SUSTAI NABI LI TY RE PO RT 2 0 2 3




Developing the right skills [GRI 404-2]             Accelerating growth
We deliver targeted learning and development        ⚫   We cultivate an environment where all
programs for all Indika Energy Group employees          employees have equal opportunities for
because we believe it is important to help our          personal and professional growth.
employees continue enhancing their skills and
expand their knowledge to move forward and          ⚫   Our human capital teams have detailed
carve out a meaningful career path.                     performance review procedures, which
                                                        include standard evaluation frameworks to
We ensure that every employee has equal                 assess employee performance. This ensures
opportunity to learn and develop themselves to          comprehensive, objective, and transparent
maximize their individual potential and support         reviews of our employees’ contributions
their career path.                                      to the company and supports identifying
                                                        the right tools and opportunities for talent
⚫   Mandatory training: We ensure all the               development.
    mandatory training is completed by
    employees, coordinated, and managed by our      ⚫   We also have a coaching support network to
    Human Capital teams. Mandatory training             equip our leaders with the necessary tools and
    includes Code of Conduct, Business Ethics,          skills to better coach their teams.
    Anti-Bribery and Anti-Corruption, and Health
    and Safety.                                     ⚫   In May 2023, we undertook a comprehensive
                                                        Employee Engagement Survey across Indika
⚫   Executive training program: Held in May             Energy Holding and its subsidiaries, including
    2023, covered a wide range of topics, such as       Indika Indonesia Resources, Interport, Indika
    Corporate Action, Corporate Law and Trade           Nature, and Ilectra Motor Group. The survey
    Practices, Monetizing Business Opportunities,       saw an impressive participation rate of
    Subsidiary Governance, and Corporate                93%, reflecting a strong commitment from
    Investment Strategies for Value Creation, for       our team members to share their insights
    all Indika Energy Group executives and new          and contribute to our ongoing efforts to
    members of BOD at the subsidiary level.             enhance our work environment and practices.
                                                        This initiative underscores our dedication
⚫   Sustainability workshops: A set of learning         to fostering a sustainable and inclusive
    programs focused on sustainability, in              corporate culture that values the voices and
    collaboration with a third-party consultant,        well-being of all employees.
    aimed at serving Indika Energy business
    units to standardize and improve their          We involve employees or representatives in the
    understanding on ESG materials.                 development of most company policies. The
                                                    Company also ensures adequate dissemination to
⚫   External training: Indika Energy Group holds    employees of policies related to employee welfare,
    webinars and sessions with external guest       the merit system, or future Company plans one
    speakers and subject matter experts for all     month before they are carried out. Dissemination
    employees on a broad range of topics.           activities are conducted through various Company
⚫   LinkedIn Learning: In 2023, we started to       internal communication channels such as email,
    provide our employees with access to more       town hall meetings, coordination meetings, and
    than 16,000 online courses through an           others. These provisions are in accordance with
    e-learning platform called LinkedIn Learning,   the prevailing Company regulations and collective
    accessible 24/7 through a desktop or mobile     labor agreements. [GRI 402-1]
    phone. Throughout 2023, employees enrolled
    in courses covering topics such as Audit                114,813
    and Due Diligence, Communicating with
    Confidence, Decision-Making Strategies,                 T R A I N I N G H O U R S P R OV I D E D

    Excel Training, Principles of Sustainable               TO E M P LOY E E

    Development, Strategic Human Resources,
    among others.
                                                            ZERO
                                                            I N C I D E N T S O F D I S C R I M I N AT I O N I N 2023
                                                            [G R I 406- 1 ]

                                                           For further details on 2023 perfomance,
                                                           please see Appendix
                                                                                                                               83
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P T I N D I K A E N E R GY T B K .




                        03.2
                        —
                        Championing Diversity,
                        Equity and Inclusivity
                        We prioritize diversity, equity, and inclusivity           responsibilities in hiring, job assignment,
                        in our workforce, witnessing increased                     training, conditions of work, and firing.
                        representation of women in our historically                Our commitment to gender equality is also
                        male-dominated industry, with expectations                 reflected through our policy of paid maternity
                        of further growth through diversification and              and paternity leave, which is aligned with
                        empowerment initiatives. Our commitment to                 national regulatory requirements [GRI 401-3].
                        gender equality includes pay parity, women’s
                        representation in management, and support for          ⚫   Zero tolerance of harassment: Indika Energy
                        work-family balance, reflected in our policies on          Group condemns all kinds of harassment, not
                        paid maternity and paternity leave. We maintain            just of our employees, but of our partners
                        a zero-tolerance stance on harassment, ensuring            and users as well. We implement a Group-
                        protection for all employees, partners, and users          wide supporting mechanism to ensure all
                        through comprehensive supporting mechanisms                our employees are protected, no matter
                        and awareness-raising efforts. Furthermore,                where they are. For our partners and users,
                        our emphasis on local hiring provides job                  we are committed to raising awareness of
                        opportunities for communities while ensuring fair          different types of harassment, and ensuring
                        pay and equal rights for all employees, including          our ecosystem has the right protective
                        those with disabilities, and comprehensive                 mechanisms to eliminate it altogether. We
                        retirement plans for long-term employee well-              have incorporated this in our Code of Conduct
                        being and financial security.                              to strengthen our zero-tolerance policy
                                                                                   toward harassment in the workplace.
                        ⚫     Representation: We continue to see increases
                              in representation for women in our industry,     ⚫   Local hiring: We continue our efforts to
                              which has historically been a male-dominated         increase local representation by recruiting
                              one. We expect this representation to grow as        local workers. This policy provides job
                              we diversify into other sectors and implement        opportunities for communities around
                              more women empowerment initiatives.                  a project area, with each local hire not
                                                                                   only contributing to the successful
                        ⚫     Gender equality: We do not differentiate on          implementation of the project but also
                              pay and compensation based on gender. We             gaining work experience and competency
                              also foster women’s representation in business       development that can be beneficial for the
                              and management at all levels, particularly           individual workers, their families, and their
                              in middle and senior management. We                  communities.
                              support work-family balance by taking a zero-
                              tolerance stance on discrimination against
                              pregnant women and workers with family



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                                                  Ikhsan Alman Latif, Chief Mine Officer Kideco Jaya Agung
                                                  “ M Y Y E A R S O F J O U R N E Y A N D M I L E S TO N E S A S A C H I E F M I N E O F F I C E R
                                                  ( K E PA L A T E K N I K TA M BA N G ) AT T H E K I D E CO M I N E S I T E A N D A S A PA RT O F
                                                  I N D I K A E N E R GY G R O U P H AV E B E E N T R U LY R E M A R K A B L E . T H E C U LT U R E O F
                                                  S U P P O RT, CO L L A B O R AT I O N , A N D CO R E VA LU E S O F S O LU S I K I D E CO B R I N G
                                                  M E G E N U I N E J OY W H E N I S T E P I N TO W O R K E AC H DAY. I F E E L VA LU E D A N D
                                                  A P P R E C I AT E D A S A P E R S O N W H O WA S B O R N A N D R A I S E D I N PA S E R R E G E N C Y,
                                                  E A S T K A L I M A N TA N . I T H A S G I V E N M E A N O P P O RT U N I T Y TO CO N T R I B U T E TO
                                                  T H E G R O U P ’ S CO M M I T M E N T TO FO S T E R I N G S U S TA I N A B L E D E V E LO P M E N T
                                                  W I T H I N T H E LO C A L CO M M U N I T Y H E R E I N M Y H O M E TO W N . I H O P E T H I S J OY F U L
                                                  E N E R GY C A N A F F E C T A N D I N S P I R E OT H E R S TO A LWAYS B R I N G A P O S I T I V E
                                                  I M PAC T TO T H E P L AC E W H E R E W E W E R E B O R N A N D R A I S E D.”




⚫   Fair pay and equal rights: We are committed to providing                 The program consists of:
    a living wage for all of our employees. Our pay is based on
    thorough and objective benchmarks and market insights,                   ⚫    Pre-pension debriefing to give employees a better
    therefore our lowest compensation ranges, including for                       understanding of the financial and health management
    entry-level positions, are well above the local minimum                       expectation, which is provided at least three years before
    wage. [GRI 202-1]. We do not differentiate on pay and                         employees enter retirement age.
    compensation based on gender, age, ethnicity, or other
                                                                             ⚫    Pension debriefing, which is provided two years before
    demographic aspects. Benefits provided to employees
                                                                                  employees enter retirement, with various options:
    include social security and health insurance, meal and
                                                                                  entrepreneurship, certification, and spiritual debriefing.
    transportation allowance, communication allowance,
                                                                                  [GRI 201-3]
    annual leave allowance, holiday allowance (THR), paid
    leave, parental leave, etc. These benefits apply to all full-            ⚫    Training to prepare employees for retirement focuses
    time/permanent employees and part-time/temporary                              on issues of mental and physical health, and financial
    employees alike [GRI 401-2].                                                  management.

⚫   Disability inclusion: We make sure to nurture our people                 In 2023, our subsidiary Kideco started the first and second
    equally, and that includes welcoming people with                         batches of Kideco Pensionpreneur, a program offering new
    disabilities to join our workforce.                                      skills and preparing employees to be entrepreneurs in their
                                                                             retirement. The program aims to impart at least 30% soft skills
⚫   Retirement plan: We strive to provide equal and fair
                                                                             and 70% practical knowledge relevant to food and beverage,
    opportunities for all employees, from the recruitment
                                                                             plantations, fisheries, and livestock small business.
    process, career development, as well as retirement. The
    Pension Protection program aims to maintain a decent                     As of December 31, 2023, Indika Energy Group employs
    standard of living for employees and/or their heirs after                3,579 individuals. Gender, age, nationality, and educational
    they enter retirement age, experience permanent total                    background diversity are showcased below [GRI 405-1]:
    disability, or death. The training provided focuses on
    psychological, health and financial management aspects,
    with the training material being delivered through various
    methods, such as classroom, roleplay and business visits.
    [GRI 404-2]




                                                                                                                                                              85
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              2,908/81.2%                                                         671/18.8%
    Gender
                                                             MALE                                                          FEMALE



              1,083                                      2,084                                  412
 Age Group
                        <30 YEARS OLD                          30 - 50 Y E A R S O L D                     >50 Y E A R S O L D




              4                                          257                                    2,012
Educational
                              D O C TO R AT E                  MASTER’S DEGREE                     BAC H E LO R ’ S D E G R E E
Background

              314                                        992
                   A S S O C I AT E D E G R E E         E L E M E N TA RY TO H I G H S C H O O L



              3,555                               1                                   1                            5
Nationality
                     INDONESIAN                            B U LG A R I A N                     FILIPINO               S O U T H KO R E A N


              2                                   3                                   4                            1
                        AMERICAN                         AUSTRALIAN                       SINGAPOREAN                NEW ZEALANDER


              1                                   1                                         5
                        CANADIAN                  T R I N I DA D & TO BAG O N I A N                                 INDIAN




              For further details on 2023 perfomance, please see Appendix
Page 87
A special focus
on special-needs
children
From 10 to 13 August 2023, Kideco and the Indika Foundation
joined forces in the Kideco Cares for Disabled Communities
(DREAMS) program, aimed at mentoring, empowering, and
enhancing inclusion competency among teaching staff, parents,
and children with special needs in Batu Sopang subdistrict,
Paser, East Kalimantan.

With 149 teaching staff and parents and 50 children in
attendance, the program sought to make a positive impact on
the community, fostering the development of the children’s
potential within a supportive ecosystem.

The program comprised various activities, including Focus
Group Discussions (FGDs) involving teaching staff, parents,
and experienced professionals in sustainable inclusive
community development. Participants shared insights on
disability conditions and identified needs to foster an inclusive
ecosystem supporting the children’s development.

There were also training sessions for teaching staff and
parents, focusing on “Optimizing the Growth and Development
of Children with Disabilities” led by occupational therapy
experts. These sessions aimed to equip participants with a
deeper understanding of the sensory needs and effective
learning approaches for children with special needs, fostering
optimal growth and development.

The DREAMS activities concluded with a learning and playing
session, allowing the practical application of training methods
by teaching staff and parents. Beyond being playful and
educational, these moments fostered interaction, knowledge
sharing, and supportive bonds, nurturing holistic growth within
the community.

Through the DREAMS program, Kideco and the Indika
Foundation aim to cultivate an active Disability Care Community
in Batu Sopang to play a pivotal role in creating an inclusive
environment that embrace and support individuals with special
needs, thereby challenging stigmas and fortifying efforts
toward inclusivity and empowerment.




“My views of disability changed. At first, I just thought disabled
people were people who had shortcomings. After participating
in this activity, I realized that everyone has the same potential,
rights and opportunities. I would like to thank Kideco Jaya
Agung and the Indika Foundation for organizing this activity. I
hope this is just the beginning and there will be other programs
that raise disability issues, especially in Batu Sopang.” - Mrs.
Wahidah, a parent of a special-needs child.
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P T I N D I K A E N E R GY T B K .




                        03.3
                        —
                        Promoting Safety
                        in the Indika Energy Group
                                     I N T H E I N D U S T R I E S I N W H I C H I N D I K A E N E R GY O P E R AT E S , S A F E T Y CO M E S F I R S T A N D
                                     F O R E M O S T. W E M A I N TA I N A S T R O N G E M P H A S I S O N O C C U PAT I O N A L H E A LT H A N D S A F E T Y
                                     (O H S ) , N U RT U R I N G A C U LT U R E O F S A F E T Y T H AT G O E S B E YO N D B OX-T I C K I N G A N D LO O K S
                                     AT WAYS TO A N T I C I PAT E A N D M I T I G AT E P OT E N T I A L R I S K S . BY B E I N G CO N S TA N T LY O N O U R
                                     TO E S , W E S T R I V E TO C R E AT E T H E S A F E S T P O S S I B L E W O R K S PAC E T H AT W I L L A L LO W O U R
                                     E M P LOY E E S TO P E R F O R M AT T H E I R B E S T.




                        Compliance with health and
                        safety standard
                        We are strict about our adherence to ISO                              regulations, and implementing management
                        45001:2018 for Occupational Health and Safety                         review. [GRI 403-2]
                        Management System standards as well as the
                        prevailing national standards and industry health                     Each business unit has their own hazard
                        and safety certification such as the Occupational                     identification, risk assessment, and incident
                        Health and Safety Management System (SMK3)                            investigation procedures. In Kideco’s case, each
                        certification that applies for all stakeholders                       department has the duty and responsibility to
                        (internal and external) in accordance with                            identify hazards, assess a risk, and record them
                        Government Regulation No. 50/2012. Kideco’s                           using a predetermined form. Every supervisor,
                        OHS system also complies with Government                              Department Leader, and Safety Representative
                        Regulation No.26/2018.                                                in each department actively carries out reviews
                                                                                              periodically at least once a year or if new activities
                        Our health and safety management system covers                        and equipment occur in the department and if an
                        our permanent and full-time employees as well                         accident occurs. [GRI 403-2]
                        as temporary/contract workers and those under
                        third parties (subcontractors/vendors). It also                       We implement Industry 4.0 technology for
                        covers all business activities. [GRI 403-1, 403-8]                    occupational health and safety. This includes
                                                                                              leveraging digital tools for quick decision-making,
                        The Company also implements evaluation                                safety improvement, and productivity boost with
                        and continuous improvement to the OHS                                 efficient use of resources; using mobile apps
                        management system, which includes carrying out                        HAZOB, BBS, and PTO and SHEPRO provide
                        self-assessment audits internally and externally,                     access to real-time reporting and notification for
                        investigating incidents to ensure continuous                          any unsafe condition in the workplace. [GRI 403-2]
                        improvement and to prevent any recurrence,
                        evaluating compliance with regulations,
                        following up on existing gaps in compliance with



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                                                                                            SUSTAI NABI LI TY RE PO RT 2 0 2 3




The Company has established programs on health         goals, to the implementation and evaluation of
and OHS facilities such as [GRI 403-3]:                the management system. At the subsidiary level, a
                                                       formal health and safety committee is established
⚫   Promotive Program: Dissemination of                with the aim of conducting regular inspections
    information on health issues concerning the        and monitoring in work areas, as well as collecting
    work environment and illness in general.           valuable quarterly feedback from workers
                                                       regarding health and safety management. [GRI
⚫   Preventive Program: Prevention of health
                                                       403-4]
    issues among employees through regular
    check-ups.                                         Regular training and awareness programs are
                                                       conducted for employees about occupational
⚫   Curative Program: Provision of consultation,
                                                       health and safety. Health and safety training
    medication, and treatment facilities for
                                                       can be delivered either by an employee within
    employees who experience workplace
                                                       the organization or by an external party
    accidents or illness.
                                                       with expertise in health and safety, such as
⚫   Rehabilitative Program: Provision of therapy       government authorities. Employees are provided
    to improve physical condition after an             with safety training related to specific activities
    employee experiences workplace accident or         undertaken within the project, in accordance
    illness, to allow them to return to work.          with their respective scope of work, such as
                                                       working at heights, confined spaces, basic lifting
Furthermore, the Company has also established          and rigging, chemical handling, lock out tag out,
various facilities to support the health of            and excavation safety. Basic occupational health
employees, including [GRI 403-3]:                      and safety knowledge is also shared with all
                                                       employees and visitors to project sites. [GRI 403-5]
⚫   Emergency response facility in the form of a
    rescue vehicle, emergency equipment and            The Company also implements strict internal
    first-aid kit.                                     policies to identify and control risk hazards
                                                       including permit to work, safety target, safety
⚫   Health care facility in the form of a first-aid
                                                       scorecard, OHS audit (internal and external), and
    room or clinic where permitted.
                                                       safety investigation. [GRI 403-7]
⚫   Proper working environment and facilities in
    the form of a safe and comfortable working         Promoting mental health and
    space or area considering all elements,            wellness [GRI 403-6]
    including lighting, temperature, air
                                                       In our commitment to the health and well-being
    circulation, noise level, shock level, and dust,
                                                       of our employees beyond the workplace, we
    to be within ideal range in line with applicable
                                                       have implemented several initiatives to ensure
    regulations.
                                                       our workforce has comprehensive access to non-
⚫   The Company also collaborates with local           occupational medical and healthcare services.
    clinics and hospitals in the event of an           Recognizing the importance of preventative care
    emergency.                                         and health education, we hold regular informal
                                                       health and safety talks that cover a wide range
Related to emergency response, we have an              of topics, from maintaining a healthy lifestyle to
Emergency Response Plan that outlines the              managing chronic diseases. These sessions are
actions that must be done in response to an            open to all employees and aim to foster a culture
incident or an emergency as well as the roles and      of health awareness and self-care.Additionally,
responsibilities of the Crisis Management Team.        our communications strategy includes the
[GRI 403-3]                                            distribution of posters and materials related
                                                       to health, ensuring that vital information is
We engage with workers to provide input and
                                                       accessible to everyone within the organization.
participate in developing and implementing
                                                       A standout initiative is the I Reborn program,
health and safety management systems. We
                                                       launched by our subsidiary Kideco, which focuses
involve worker representatives, especially senior
                                                       on preventing diseases related to obesity. This
managers, who are also involved in all activities of
                                                       program encourages both employees and
the occupational health and safety management
                                                       contractors to achieve and maintain a healthy
system, starting from determining the company’s
                                                       body weight and Body Mass Index (BMI),
occupational health and safety policies, setting
                                                       providing them with the tools and motivation to
                                                       do so.
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P T I N D I K A E N E R GY T B K .




                        Moreover, understanding the significant impact                 Health and safety performance
                        of HIV/AIDS on communities, we conduct periodic                During the year, we maintained our lost-time
                        testing, underscoring our commitment to the                    injury rate (LTIR) at 0.00, and managed to reduce
                        overall health of our employees. Through these                 our total recordable incident rate (TRIR) to 0.01
                        efforts, we aim to create a supportive environment             from the previous year (0.05), despite recording 2
                        that empowers our employees to take control of                 incidents at Interport.
                        their health, ensuring they have the necessary
                        resources and support to access medical and                    While we endeavored to ensure all systems and
                        healthcare services outside of occupational                    safeguards were in place to keep employees safe
                        requirements.                                                  on the job, unfortunately we did experience the
                                                                                       fatality of 2 contractor workers at our operation at
                                                                                       Kideco in 2023.

                                                                                       Kideco prioritizes safety in all its operational
                                ZERO
                                                                                       activities. A comprehensive investigation has
                                E M P LOY E E FATA L I T I E S                         been conducted to analyze the root causes of the
                                                                                       incident and develop necessary corrective actions,
                                                                                       improvements and mitigation strategies as a
                                TWO                                                    prevention of repeating accidents. Kideco also
                                                                                       carries out reassessment of all high-risk activities
                                CO N T R AC TO R FATA L I T I E S                      and conducts general safety talks and periodically
                                                                                       conducts audits of mining contractors to ensure
                                                                                       that all safety procedures have been fulfilled and
                                TWO                                                    all personnel are aware of applicable work safety
                                                                                       regulations and procedures.
                                E M P LOY E E W O R K- R E L AT E D I L L H E A LT H
                                CASES




                                ZERO
                                H I G H - CO N S E Q U E N C E I N J U R I E S




                                TWO
                                R E CO R DA B L E I N C I D E N T S



                                For further details on 2023 perfomance,
                                please see Appendix




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                                                                                                                           SUSTAI NABI LI TY RE PO RT 2 0 2 3




03.4
—
Community Development
   I N D I K A E N E R GY ’ S CO N T R I B U T I O N TO T H E I N D O N E S I A N E CO N O M Y M A K E S U S A P O S I T I V E FO R C E
   A N D D R I V E R O F E CO N O M I C G R O W T H I N T H E CO U N T RY. S I N C E T H E FO R M AT I O N O F T H E I N D I K A
   E N E R GY G R O U P, O U R CO L L E C T I V E R E AC H H A S E X PA N D E D S I G N I F I C A N T LY - TO U C H I N G T H E L I V E S O F
   M I L L I O N S O F CO M M U N I T Y M E M B E R S , LO C A L V E N D O R S , A N D S U P P L I E R S . A S S U C H , W E B E L I E V E W E
   A R E U N I Q U E LY P O S I T I O N E D A N D H AV E A R E S P O N S I B I L I T Y TO CO N T I N U E B E I N G A P O S I T I V E FO R C E
   I N A L L O P E R AT I O N S W H E R E W E O P E R AT E , A N D O N T H E L I V E S O F A L L T H O S E W H O D E P E N D O N U S .
   A L A R G E M A J O R I T Y O F O U R S TA K E H O L D E R S ( E M P LOY E E S , LO C A L CO M M U N I T I E S , S U P P L I E R S ) R E LY
   O N O U R O P E R AT I O N S F O R T H E I R L I V E L I H O O D S A N D TO S U P P O RT T H E I R FA M I L I E S .



Local communities’ engagement                                             as Sanggar Seni Tari Rebuntung as part of its
                                                                          commitment to support the indigenous peoples’
We engage with communities in all of the areas
                                                                          traditional arts and cultural activities. In 2023, we
where we operate and conduct assessments to
                                                                          had no incidents of violations involving the rights
ensure that we are meeting their needs through
                                                                          of indigenous people. [GRI 411-1]
our community development programs [GRI 413-
1]. Through these assessments, we also seek to                            In every operational area we aim to deliver
identify any potential negative impacts that our                          significant contributions to societies — by
operations may bring to the communities and                               providing easier access to education, health, as
how we can mitigate them [GRI 413-2]. We also                             well as empowering the community. Through
continue to facilitate community development                              our community’s program we create jobs, drive
programs, vocational training courses and                                 economic development, and generate revenue for
entrepreneurial skill building.                                           society.

We maintain mechanisms to collect, record,
and address complaints or grievances from                                 Education
local communities. The community can submit
feedback or complaints directly to the program                            Kideco’s teacher training and tkills
manager or to Indika Energy Group at the company                          enhancement program:
level via email, website, telephone, and visits to                        Our company forged valuable partnerships with
the local Indika Energy Group office. Feedback and                        district-level teacher forums, culminating in the
complaints are recorded in accordance with the                            participation of 425 educators. This initiative
policies at each company in the group. [GRI 2-25]                         encompassed an extensive range of training
                                                                          sessions held for teachers across diverse regions,
We also respect the indigenous communities
                                                                          including Batu Sopang, Muara Samu, Kuaro,
around the operating areas by supporting the local
                                                                          Muara Komam, Long Ikis, Long Kali, Tanah Grogot,
cultures. Kideco establishes relationships with
                                                                          Paser Belengkong, Batu Engau, and Tanjung
traditional social groups of the local community.
                                                                          Harapan. The curriculum was thoughtfully
The company provides financial support for
                                                                          designed to encompass a variety of innovative
all activities held by these social groups, such
                                                                          teaching methodologies, such as project-based

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                        learning, integrated literacy for children, digital     Latimojong Public Health Center, intensifying our
                        and literacy learning, and Minimum Competency           outreach in the villages of Latimojong subdistrict.
                        Assessments, covering educational stages from           This includes providing “Midwife Kit” equipment
                        kindergarten through to high school. Each training      to ten village midwives operating within mining-
                        module was meticulously tailored to meet the            adjacent communities, further enhancing our
                        specific needs of the educators, facilitated in close   support network.
                        coordination with the Department of Education
                        and Teacher Forums, thereby reinforcing our
                                                                                Interport’s stunting prevention program
                        commitment to elevating the quality of education
                                                                                Prospective brides and grooms are a crucial
                        and fostering a sustainable impact on future
                                                                                point for providing education on how to prevent
                        generations.
                                                                                stunting, because they are the ones who will plan,
                                                                                give birth and care for the children who make
                        Kideco’s Perpustakaan Keliling:                         up the nation’s next generation. Improving the
                        We proudly operate three specially equipped             quality of preparation for prospective brides and
                        vehicles, each serving as a beacon of knowledge         grooms is carried out by Interport through the
                        and learning on wheels. These mobile libraries          provision of guidebooks or pocket materials as
                        are not just transporters of books; they are fully-     reference sources. This guidebook, of which more
                        fledged educational hubs, offering an impressive        than 75 copies have been distributed, contains
                        collection of 13,055 books, making 73 school visits,    the basic tenets of Islamic marriage, generation
                        and facilitating 250 book-lending transactions.         planning, and how to provide healthy food to
                        Beyond the tangible resources, the program              babies and children. One of the materials that
                        is enhanced with multimedia equipment and               is planned to be added is related to parenting
                        dedicated storytellers, transforming each               patterns. Through this book, it is hoped that
                        visit into a dynamic and engaging learning              prospective brides and grooms will be able to
                        experience. This initiative underscores our             increase their literacy about stunting prevention
                        commitment to promoting literacy and making             and communicate with the nearest health
                        education accessible to all, thereby contributing       workers and family planning extension workers
                        significantly to the sustainable development of         when needed.
                        our communities.
                                                                                Economic empowerment
                        Health
                                                                                Masmindo’s local economic
                        In line with Indika Energy’s flagship program
                                                                                empowerment program
                        to reduce the level of stunting prevalence in
                        Indonesia, Indika Energy’s subsidiaries also carry      Economic self-sufficiency within the community
                        out stunting interventions programs in their            has been significantly strengthened through the
                        respective operational areas.                           optimization of the natural resources found in
                                                                                the agriculture and plantation sectors. This has
                                                                                been achieved by facilitating the establishment
                        Masmindo’s stunting prevention                          of horticulture demonstration plots in Boneposi
                        Program                                                 Village. These plots serve as an educational
                        In our dedicated effort to mitigate and address         medium, introducing a variety of vegetables
                        stunting, the Masmindo program in Luwu district,        that are easy to cultivate, tailored to the local
                        particularly in Latimojong subdistrict, shines as a     geographical and climatic conditions, and are
                        beacon of hope and nourishment. Our program,            combined with short-term fruit plants. For long-
                        centered on the provision of Supplementary              term cultivation, the focus is on coffee cultivation
                        Feeding (PMT), benefits an average of 250-275           integrated with beekeeping, implemented across
                        individuals monthly across eight villages. A            three villages (Boneposi, Toklajuk, and Ulusalu),
                        key component of this initiative is empowering          designating these areas as coffee commodity
                        health cadres through training in the preparation       clusters. To facilitate easier access to capital for
                        of nutritious and healthy food. Utilizing locally       farmers and small businesses, Masmindo has
                        sourced ingredients such as moringa leaves and          partnered with the Regional Development Bank
                        sweet potatoes, they craft a variety of ready-to-       (BPD) of South Sulawesi, Belopa branch. This
                        eat meals aimed at meeting the nutritional needs        holistic approach not only advances agricultural
                        of children. In a collaborative stride towards          practices and productivity but also fosters
                        stunting prevention, we have partnered with the         economic empowerment and sustainability
                        Luwu Stunting Prevention Task Force and the             within the community, underscoring our
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commitment to supporting and enhancing the
livelihoods of those we serve.                           400,000+
                                                         B E N E F I C I A R I E S O F O U R CO M M U N I T Y
Indika Nature’s hydroponic vegetable                     D E V E LO P M E N T P R O G R A M S
cultivation training
Indika Nature’s commitment to fostering
sustainable development and empowerment                  IDR 66.1 BILLION
is vividly illustrated through our hydroponic
vegetable cultivation program in Prayon. By              S P E N D I N G O N CO M M U N I T Y
providing training and financial assistance to 12        D E V E LO P M E N T P R O G R A M S
members of the local Family Welfare Movement
(PKK), we have initiated a transformative journey
towards economic and environmental resilience.           1,400+
This initiative not only enhances participants’
skills, leading to potential additional income           E M P LOY E E S H I R E D F R O M LO C A L
streams, but also plays a crucial role in bolstering     CO M M U N I T I E S
food security through the adoption of cutting-
edge hydroponic farming techniques.
                                                         47
                                                         INDIVIDUALS IN THE SENIOR
                                                         M A N AG E M E N T H I R E D F R O M LO C A L
                                                         CO M M U N I T I E S [G R I 202- 2 ]




                         Respecting Traditional Customs
                         In a symbolic gesture of respect and cultural harmony, Indika Nature conducted a Hutan
                         Melas ceremony to mark the initiation of its subsidiary, Telaga Mas Kalimantan, into the
                         Swan Slutung Village territory.

                         This ceremony, deeply rooted in local tradition, sought blessings from ancestors and the
                         Creator to safeguard against potential perils as the company ventures into new terrain.

                         The procession commenced with the Traditional Leader reciting a prayer while throwing
                         colorful rice grains in the air as a symbolic offering of blessings. Containers filled with rice,
                         adorned with coconut leaves and candles were then ceremoniously passed over the heads
                         of company representatives, signifying the receipt of ancestral blessings.

                         Central to the ceremony was the solemn sacrifice of a buffalo, preceded by a prayer seeking
                         permission from the ancestors. Chickens with vibrant plumage, believed to be auspicious
                         offerings, were also sacrificed. Following the rituals, villagers and company representatives
                         alike marched to a designated area in the forest to inter the buffalo’s head, while the
                         remaining meat was prepared for a traditional communal feast later in the day.

                         Beyond its cultural significance, the Hutan Melas ceremony exemplifies values of
                         collaboration, cooperation, tolerance, and social welfare. While Indika Nature and TMK
                         initiated the event, it was the active participation of the local community that was integral
                         to its success. Chiefs, traditional elders, community leaders, and government officials were
                         joined by representatives of youth organizations, social groups, and women’s associations,
                         all contributing their expertise in traditional ceremonies and culinary skills.

                         Through this collaborative endeavor, Indika Nature not only demonstrated respect for local
                         customs and ancestors but also forged meaningful connections with the community, laying
                         the groundwork for a harmonious and mutually beneficial relationship as we embarked on
                         our venture in Swan Slutung Village.
                                                                                                                                      93
Page 94
EVs and Solar
Photovoltaic for an Eco-
Friendly Tourism Village
In a collaborative effort on 15 April 2023, ALVA and the Youth Ecco
Indonesia Foundation handed over two ALVA One electric motorbikes
to Genggelang Village in North Lombok, West Nusa Tenggara. This
event marked a significant milestone, introducing electric vehicles
(EVs) to the village and promoting sustainable transportation
solutions while also fostering environmental consciousness.

Village officials and local business owners were invited to participate
in a month-long trial of the ALVA electric bikes. At the end of the
trial period, in June, the bikes were assigned for use in guided village
tours, part of a wider effort to support the village’s ecotourism
activities.

To further promote sustainability and educate the community, the
Youth Ecco Indonesia Foundation conducted workshops in local
schools under the banner “Ecco Goes to School.” These workshops
highlighted the benefits of EVs as environmentally friendly
transportation options, with a focus on ALVA’s electric motorbikes.

The foundation also organized “ALVA Explore by Ecco,” an educational
initiative showcasing the practical applications of EVs in daily
life and travel. This activity featured a journey from the provincial
capital, Mataram, to Genggelang, a distance of 68 kilometers.
Alongside promoting EV usage, the event aimed to raise awareness
of Genggelang Village as a tourist destination.

In celebration of World Environment Day, Ecco also hosted “ECHOES
of the Forest,” an environmental concert that saw Genggeleng also
receive solar panels from EMITS. With the integration of renewable
energy sources, such as solar power, into the EV ecosystem,
Genggelang Village took a significant step towards sustainability.

Together, these initiatives not only enhance the viability of EVs in the
village but also make Genggelang a sustainable tourism destination,
attracting visitors keen on experiencing eco-friendly transportation
and renewable energy initiatives firsthand.
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                        03.5
                        —
                        Human Rights and Grievance Mechanism
                                        W H E R E V E R I N D I K A E N E R GY O P E R AT E S , O U R A P P R OAC H TO A N D E N G AG E M E N T W I T H LO C A L CO M M U N I T I E S
                                        I S A LWAYS G R O U N D E D F I R S T A N D FO R E M O S T I N R E S P E C T FO R H U M A N R I G H T S . W E A R E P R O U D O F T H I S
                                        R E CO R D A N D A R E CO M M I T T E D TO N OT J U S T M A I N TA I N I N G I T, B U T TO A L S O B U I L D E V E N S T R O N G E R
                                        R E L AT I O N S W I T H T H E CO M M U N I T I E S , A S PA RT O F O U R A M B I T I O N TO B E T H E B E S T CO R P O R AT E C I T I Z E N
                                        W E C A N B E . TO L E R A N C E A N D CO O P E R AT I O N A R E T H E FO U N DAT I O N S O F I N D O N E S I A N S O C I E T Y, A N D W E
                                        A R E P R O U D TO R E F L E C T T H O S E P R I N C I P L E S I N AC T I O N .




                        Respect for human rights [GRI 2-25]                                   Whistleblowing system [GRI 2-25]
                        We are committed to identifying and handling                          Our whistleblowing system provides a formal
                        the risks and human rights impacts associated                         grievance mechanism to address any concerns
                        with our activities, including the rights of our                      from all stakeholders, including employees and
                        employees and local communities who may be                            external parties. It is accessible via mail, email,
                        affected by our activities. We stand against the                      fax, telephone, and a dedicated website 24/7 in
                        use of child, forced, or exploited labor, as well as                  both Indonesian and English to ensure greater
                        forced or exploitative working conditions, and                        accessibility. We also welcome inputs from
                        ensure our partners comply with regulations. [GRI                     other channels and avenues outside the formal
                        408-1, 409-1]                                                         grievance mechanism, including legacy media,
                                                                                              social media, and other platforms. We treat these
                        In locations and sites where there is a higher                        inputs with the same high level of professionalism
                        likelihood of conflict, Indika Energy is careful to                   and make every effort to resolve issues that are
                        engage on a basis of respecting human rights.                         brought to our attention.
                        The security forces we work with must understand
                        and respect the rights of our employees and the
                        communities living our operations, which is why                       Grievances
                        we are careful to ensure our security forces have                     Indika Energy has a policy related to handling
                        been trained and socialized as to the importance                      employee complaints, stipulated in CLA Chapter
                        of respecting human rights. We also conduct                           VII Industrial Relations Article 133 on Employee
                        assessments to identify areas of improvement in                       Complaints and Article 134 on the Settlement
                        our security personnel training. [GRI 410-1]                          of Employee Complaints. Complaints from
                                                                                              employees can be submitted directly to the
                                                                                              supervisor, who will then find a solution and
                                                                                              way out of the problem. If the complaint cannot




96
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                                                                                                      SUSTAI NABI LI TY RE PO RT 2 0 2 3




be resolved structurally, the employee has the
right to submit it to the union to be resolved in
a bipartite manner. Afterward, if the complaint
cannot be resolved in a bipartite manner, it will be
resolved in a tripartite manner with reference to
the prevailing employment Laws and regulations
[GRI 2-25]. These processes also involve inputs
from     stakeholders,     including   employee
representatives, in designing and proposing
improvements to these mechanisms [GRI 2-25].


Collective bargaining agreements [GRI
2-30, 407-1]
Indika Energy recognizes employees’ right to
organize and believes that diverse opinions and
views, if well communicated, can enrich the
group. Employees have the opportunity to form
labor unions as a channel for communication with       11 GRIEVANCES
management, and to date there are nine such
labor unions within Indika Energy Group: Serikat       W E R E C E I V E D 11 G R I E VA N C E S A B O U T
Pekerja Seluruh Indonesia (SPSI), Serikat Buruh        L A B O R P R AC T I C E S , W H I C H A L L H AV E
Sejahtera Indonesia (SBSI), Serikat Independen         B E E N A D D R E S S E D A N D R E S O LV E D.
Serikat Pekerja Paser (SPP), and Serikat Pekerja
Batubara (SP BARA). These labor unions serve
as communication channels for all employees to         400 EMPLOYEES
share their aspirations for the company’s growth
                                                       W E R E CO R D E D A TOTA L O F 400
and better working relations. Besides the Group’s
                                                       E M P LOY E E S T H AT A R E R E P R E S E N T E D BY
policies and regulations, freedom of association
                                                       L A B O R U N I O N S ( 369 M A L E , 31 F E M A L E ) .
is also assured under Indonesian employment
laws and International Labour Organization
                                                       For further details on 2023 perfomance, please see Appendix
conventions. Currently, we have not recorded the
number of employees at Indika Energy Group that
are covered by collective bargaining agreements,
but no operations were found at risk of violating
workers’ rights to exercise freedom of association
and collective bargaining.



DESCRIPTION                                            2021           2022          2023

Total no. of grievances filed about labor practices    25             33            11
No. of grievances about labor practices
                                                       25             33            11
that were addressed and resolved
No. of grievances about labor practices
filed prior to the reporting period that were          25             33            11
resolved during the reporting period




                                                                                                                                     97
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                                                                                                   SUSTAI NABI LI TY RE PO RT 2 0 2 3




SDG


                              2-9, 2-10, 2-11, 2-12, 2-13, 2-14, 2-15, 2-16, 2-17, 2-1 8 ,
GRI                           2-19, 2-20, 2-22, 2-23, 2-24, 2-25, 2-26, 2-27, 2-2 8 ,
                              205-1, 205-2, 205-3, 3-3

G L O B A L C O M PA C T      P R I N C I P L E 1, P R I N C I P L E 2, P R I N C I P L E 10

WEF SCM                       G OV E R N A N C E A N D P R O S P E R I T Y P I L L A R S




                           GOVERNANCE
                           A S O U R B U S I N E S S CO N T I N U E S TO G R O W A N D I M PAC T, E N S U R I N G P R O P E R
                           M A N AG E M E N T A N D D I S C LO S U R E O F E S G I N O U R G OV E R N A N C E S T R U C T U R E
                           I S O F T H E U T M O S T I M P O RTA N C E . U LT I M AT E LY, A L L I N D I K A E N E R GY G R O U P ’ S
                           S E N I O R L E A D E R S H I P A R E AC CO U N TA B L E FO R O U R E S G P E R FO R M A N C E ,
                           I N C LU D I N G H O W E F F E C T I V E W E A R E AT I N T E G R AT I N G I T I N TO O U R
                           CO M PA N Y ’ S O P E R AT I O N S .




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                                                                                                                  SUSTAI NABI LI TY RE PO RT 2 0 2 3




04.1
—
Our Robust Governance Structures
          OUR     FOCUS       IS   ON     LO N G -T E R M    VA L U E      C R E AT I O N   FOR   ALL   OUR   S TA K E H O L D E R S :
          W E D E F I N E A N D M E A S U R E T H I S VA L U E I N L I N E W I T H H O W E F F E C T I V E LY W E M A N AG E O U R
          M AT E R I A L E S G I S S U E S , A S W E L L A S T H E I M PA C T A N D O U T C O M E S O F O U R E F F O R T S O N
          A L L O U R S TA K E H O L D E R S , N OT J U S T O U R C O M PA N Y. I N E N S U R I N G T H I S I S A LO N G -T E R M
          P R I O R I T Y, W E H AV E E M B E D D E D R E L E VA N T E S G B E S T P R A C T I C E S I N TO O U R G OV E R N A N C E
          S T R U C T U R E A N D M A N AG E M E N T P R O C E S S E S .




As Indonesia’s leading diversified investment                           performance, including how effective we are at
company, we believe we have a meaningful                                integrating it into our company’s operations. Our
role to play in responding to and supporting                            ESG strategy and priorities are set once a year and
solutions to some of the most pressing issues in                        updated quarterly. The Board of Commissioners
the country. Our business, by its nature, is driven                     reviews the Group’s ESG performance at the start
by collective growth and makes an inherently                            of every financial year (prior to the publication
positive impact in the communities where we                             of the Sustainability Report), to sign off on our
operate empowerment of the nation and its                               progress and disclosures.
people. This provides us with the foundation to
operate ethically, comply with relevant local laws                      Moreover, the Company’s corporate governance
and regulations, as well as ensure the highest                          process is performed by referring to policies
levels of trust, safety, and transparency across our                    stipulated by the Company, namely Board Charter,
ecosystem.                                                              Audit, Risk and Compliance Committee Charter,
                                                                        Project and Investment Committee Charter,
Since our inception, we have grown significantly.                       Nomination and Remuneration Committee
Today, we manage portfolios comprising a                                Charter, and Sustainability Committee Charter.
wide range of businesses with strong growth
opportunities, including renewable energy,                              Pursuant to the Company Law, general structure
nature-based solutions, electric vehicle ecosystem,                     of corporate governance comprises Shareholders
logistics and infrastructure, minerals, and digital                     with General Meeting of Shareholders forum
technology – all in line with our commitment to                         as the highest decision maker, and Board of
energize Indonesia for a sustainable future.                            Commissioners and Board of Directors who serve
                                                                        as the organ in carrying out management and
As our business continues to grow and impact,                           supervisory duties on business activities [GRI
ensuring proper management and disclosures of                           2-11].
ESG in our governance structure is of the utmost
importance. Ultimately, all Indika Energy Group’s
senior leadership are accountable for our ESG




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P T I N D I K A E N E R GY T B K .




                        O R G A N I Z AT I O N S T R U C T U R E



                                                                                                               Board of Commissioners



                                                                                                                   AGUS LASMONO
                                                                                                                  RICHARD B. NESS
                                                    Audit, Risk and Compliance                                  INDRACAHYA BASUKI
                                                            Committee                                           EKO PUTRO SANDJOJO
                                                                                                                  FARID HARIANTO




                                                      Project and Investment
                                                            Committee


                                                                                                                  President Director


                                                                                                                M. ARSJAD RASJID P.M.




                                                                                                                Vice President Director
                                                              Internal Audit                                         & Group CEO



                                                          EINSTEIN ERLANGGA                                         AZIS ARMAND




                                                                  Director & Group Chief                        Director & Group Chief
                                                                     Financial Officer                           Investment Officer


                                                                    RETINA ROSABAI                                PURBAJA PANTJA




      Chief Human Capital Officer                Head -Treasury                   Head –Finance & Accounting   Head –Business Development



      LEONARDUS HERWINDO                     LISTA KUSNADI (ACT)                      LISTA KUSNADI                 ADI D. SHIMA


                                              Head –Human Capital &
                                                                                    Head –Investor Relations           Business Development
                                                     Services


                                             BENI PANDU GAUTAMA                      RICARDO SILAEN                   TAMMAM JANNATA



                  as coordinating function                                          Head –Corporate Finance
                  to align the synergy



                                                                                   NICKY M. KURNIAWAN
102
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                                                                                SUSTAI NABI LI TY RE PO RT 2 0 2 3




                                   Nomination
                             & Remuneration Committee




                              Sustainability Committee




                          Head-Corporate Communications,
                            Sustainability & CEO Office


                                RICKY FERNANDO



                                Corporate Secretary


                                 ADI PRAMONO




                                      Director & Group Chief           CEO ofAnak
                                                                         CEO
                                                                          CEO Subsidiaries
                                                                              AnakPerusahaan
                                                                                   Perusahaan
                                                                           CEO
                                                                            CEOofofSubsidiaries
                                                                                    Subsidiaries
                                         Portfolio Officer


                                       KAMEN K. PALATOV




Chief Risk & Compliance
                                     Chief Risk & Compliance Officer
         Officer


     -VACANT-                             LUCAS DJUNAIDI


                                      Head –Corporate Planning &
         Head –Legal
                                        Portfolio Management


   MUTHIA H. SOEBAGJO                     DYAH PARAMITA




                                                                                                             103
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P T I N D I K A E N E R GY T B K .




                                                                             business by considering environmental, social
                        Role and responsibilities [GRI                       and governance aspects. We believe that an
                        2-12]                                                effective Sustainability Committee will enhance
                                                                             the Company’s sustainability in conducting
                        General Meeting of Shareholders (GMS)
                                                                             its business, so that it will promote openness
                        The GMS is the Company’s highest institution.        and objectivity in addressing issues relating to
                        Indika Energy’s corporate governance structure       sustainability which in turn would improve the
                        is determined at the General Meeting of              quality of decisions at the Board of Commissioners
                        Shareholders (GMS), which appoints members           and the Board of Directors levels.
                        of the Board of Commissioners and Board of
                        Directors, and of the various committees that
                        support their function. [GRI 2-10]
                                                                             The Board of Directors
                                                                             The Board of Directors is the organ of the Company
                        In 2023, the Annual General Meeting of               that is authorized and takes full responsibility for
                        Shareholders was held on April 19, 2023, and         management of the Company for the benefit of
                        served as a forum to pass resolutions and gain       the Company, in accordance with the purposes
                        approval for matters related to the company’s        and objectives of the Company, and to represent
                        business and operations. In the structure of         the company, both inside and outside the court in
                        the corporate governance body, the highest           accordance with the Articles of Association of the
                        governance body consists of two levels: the Board    Company. The Board of Directors is responsible
                        of Commissioners as the Supervisory Board, and       to the GMS as a form of accountability for the
                        the Board of Directors as the Executive Board.       management of the Company in accordance with
                        Both Boards also hold responsibility for making      the principles of good corporate governance.
                        decisions on sustainability topics that cover
                        economic, environmental, social, and governance,
                        and for reviewing and approving all sustainability   Independence
                        reporting materials. [GRI 2-14]                      As of December 31, 2023, the Board of
                                                                             Commissioners consists of a President
                                                                             Commissioner, a Vice President Commissioner,
                        The Board of Commissioners
                                                                             a commissioner, and two Independent
                        The Board of Commissioners is the organ of           Commissioners. They hold tenures as
                        the Company responsible for supervising the          Commissioners ranging from one to five years.
                        company’s policies and management of the             The two Independent Commissioners meet
                        Company conducted by the Board of Directors,         the requirements of not being affiliated with
                        both with regards to management of the               Indika Energy, fellow members of the Board of
                        Company and the Company’s business, and              Commissioners or the Board of Directors, auditing
                        to advise the Board of Directors’ in executing       parties, or major shareholders.
                        their role. The Board of Commissioners shall
                        perform its duties independently and ensure the
                        implementation of good corporate governance.         Delegation of roles
                        The Board of Commissioners shall report to the       The Board of Commissioners shall set their
                        GMS on execution of their duties in overseeing the   distribution of work among the members, with
                        implementation of the Company’s management.          the focus area of supervision of each member
                                                                             of the Board of Commissioners refers to the
                        As of December 31, 2023, the Board of Directors      division of roles as Chairman and Vice Chairman
                        consists of a President Director, a Vice President   of Committees that support the duties and
                        Director, and three Directors, ranging in age from   responsibilities of the Board of Commissioners
                        48 to 56 years. One of the five members of the       based on the competencies and experiences [GRI
                        Board of Directors is a woman. [GRI 2-9]             2-13].

                                                                             ⚫   Audit, Risk, and Compliance - Eko Putro
                        Sustainability Committee
                                                                                 Sandjojo
                        The Company established a Sustainability
                        Committee in 2021 as part of its commitment          ⚫   Project and Investment - Farid Harianto and
                        to support sustainability of the Company’s               Eko Putro Sandjojo




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                                                                                           SUSTAI NABI LI TY RE PO RT 2 0 2 3




⚫   Nomination and Remuneration - Agus                 ⚫    Attendance level in the meeting of the Board
    Lasmono and Farid Harianto                              of Directors as well as meetings with the
                                                            Board of Commissioners.
⚫   Sustainability - Indracahya Basuki, Eko Putro
    Sandjojo and Farid Harianto
                                                       Competency development of the
                                                       highest governance body [GRI
ESG-linked key performance                             2-17]
indicators [GRI 2-18]
                                                       Indika Energy is committed to operating in a
ESG-linked KPIs are set annually at the Group level,   sustainable manner. The Company’s executive
during the company’s planning cycles. A quarterly      officers have the appropriate knowledge
business review ensures progress and updates on        and competencies to implement sustainable
ESG-linked KPIs reported directly to our Group         practices. Indika Energy regularly engages the
CEO. The Sustainability Function is responsible for    Company’s Board of Directors and Board of
overseeing ESG-related policies and strategy on        Commissioners in various sustainability oriented
all material topics, defining sustainability goals     programs, discussions, conferences, and training.
and targets, periodically reviewing the company’s      Throughout 2023, all members of the Board of
performance, and providing recommendations to          Commissioners participated in the Indika Energy
continuously improve the operationalization of         Summit as part of their competency development
ESG-linked roadmaps.                                   program, while several BOD members also
ESG is a key tenet in building and planning            participated in short courses on sustainability-
for our company’s longevity and resilience.            related issues.
The Indika Energy Group Risk Management
Framework was established to identify key risks        Remuneration policies [GRI 2-19,
within the business, guide us to review our            2-20]
management of environmental and social risks
                                                       As set forth in POJK 34, in carrying out the
the same way we do all material risks, and is in
                                                       functions of the remuneration, the Human Capital
alignment with ISO 31000 on Risk Management.
                                                       Committee shall formulate the remuneration
This ensures environmental and social
                                                       structure of the members of the Board of Directors,
risks are reviewed and managed with the
                                                       develop remuneration policy for members of the
same rigor as other key business risks; they
                                                       Board of Directors, and prepare the remuneration
are proactively identified, addressed, and
                                                       amount for members of the Board of Directors.
reviewed with respect to the management
approach on an ongoing basis. The respective           The remuneration structure of the Board of
Business leaders are then held responsible for the     Directors may include salaries, honorarium,
implementation of risk management strategies,          incentives, and/or allowances that are fixed and/
policies, and processes.                               or variable. Furthermore, in the preparation of the
                                                       structure, policies, and amount of remuneration
The criteria for the performance evaluation of the
                                                       referred to above, the following must be taken
Board of Directors are determined by the Board of
                                                       into consideration:
Commissioners based on the KPIs, which include
the following [GRI 2-24]:                              1.   Prevailing remuneration practices in similar
                                                            industries in accordance with the Company’s
⚫   The achievement of targets set out in the
                                                            operations
    Company’s Work Plan Budget.
                                                       2. The duties, responsibilities and authority of
⚫   Contributions to the Company’s business
                                                          Board of Directors members linked to the
    activities.
                                                          achievement of the goals and performance of
⚫   Involvement in certain assignments.                   the Company

⚫   Commitment to advancing the interests of           3. Target performance or the performance of
    the Company.                                          individual members of the Board of Directors.

⚫   Adherence to the prevailing laws and               4. A balance of benefits between fixed and
    regulations, and the Company’s policies.              variable components.




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P T I N D I K A E N E R GY T B K .




 SHORT TERM BENEFIT OF                                     SHORT TERM BENEFIT OF
 THE BOARD OF COMMISSIONER                                 THE BOARD OF DIRECTORS
 (IN US$)                                                  (IN US$)                                           TOTA L
                                 1,863,524                                           6,369,380                                         8,232,904


                 1,704,543                                             6,228,988                                          7,933,531


                                                          3,171,505                                         4,200,795


1,029,290




 2021             2022               2023                  2021         2022          2023                    2021         2022            2023




                        5. The structure, policy and amount of                     The Group is managed professionally without any
                           remuneration shall be evaluated by the                  conflict of interest and influence from any party
                           Nomination and Remuneration Committee                   against the applicable laws and regulations and
                           each year.                                              healthy corporate principles. Our Code of Business
                                                                                   Conduct addresses the topic of conflicts of interest.
                        The structure, policy, and amount of remuneration          This principle is applied by, among others, paying
                        for the Board of Commissioners is evaluated by             mutual respect to rights, obligations, duties,
                        the Nomination and Remuneration Committee.                 authorities, and responsibilities among the
                        However, the remuneration applicable in similar            Company’s organs such as the Shareholders and
                        industries, as well as the members’ duties and             Board of Commissioners that do not intervene
                        performance linked to achievement of Company               in the Company’s management. The Board
                        goals are also taken into consideration in the             of Commissioners, Board of Directors, and all
                        development of the remuneration structure [GRI             employees continue to avoid conflict of interest in
                        2-20].                                                     the decision-making process.

                        Conflicts of interest [GRI 2-15]                           Communication of critical
                        The Company maintains a clear segregation                  concern [GRI 2-16]
                        between personal interests and the Company’s               Indika Energy also nurtured an open
                        interests and avoids any situation that may                communication within the company. We
                        result in or be perceived as a conflict of interest        communicate frequently through a series of
                        between the Company’s and personal interests to            Board of Commissioners, Board of Directors and
                        avoid any conflicts of interest. This applies to all       Committee meetings. During crisis events, we
                        members of the Board of Directors and Board of             activate our cross-functional team, full-time
                        Commissioners. During 2023, neither the Board of           senior leader, and high-level decision-making
                        Commissioners nor the Board of Directors of Indika         authority, to construct a detailed scenario of the
                        Energy had any familial or financial relations with        main primary and secondary threats, covering
                        fellow members of the Board of Commissioners,              planning and intelligence gathering, stakeholder
                        members of the Board of Directors, and Major               stabilization, technical or operational resolution,
                        and/or Controlling Shareholders.                           recovery, investigation, and governance.

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Policies and code of business
conduct [GRI 2-23, 2-24]
In 2022, we developed new policies and renewed        Our Code of Business Conduct is a set of guidelines
existing ones to reflect our current sustainability   to ensure we always carry out our operations in an
commitments more accurately. Some of the              ethical and responsible manner. All employees at
new policies we developed are the Human               all organizational levels across the Indika Energy
Capital and Human Rights Policy, Third Party          Group are required to comply with these policies;
Engagement Policy, Environmental Policy, Health       violations may lead to disciplinary actions,
and Safety Policy, and the Communications Policy.     including termination of employment [GRI 2-24].
Development and implementation of these
policies is overseen by the Board of Directors. All   Through our subsidiaries, we have started
employees at all organizational levels across the     developing a Supplier Code of Conduct that
Indika Energy Group are required to comply with       applies the same standards to all our partners
these policies. To ensure the level of awareness      and third-party organizations we engage with.
and understanding across the Group, we conduct        Our Code of Business Conduct covers the issues
a series of training, socialization through town      of employees; health, safety, and environment;
hall meetings and discussion forums for leaders       integrity; information management; company
and management such as BOC BOD Induction,             asset record, control and protection; and reporting
as well for employees in general through internal     of non-compliance, investigation and disciplinary
publications and discussion forums. [GRI 2-4]         sanctions.

                                                      For further details regarding Indika Energy’s
                                                      policies, please visit www.indikaenergy.co.id/
                                                      governance/gcg-updates



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                                                                                                                      SUSTAI NABI LI TY RE PO RT 2 0 2 3




04.2
—
Operating with Ethics and Integrity
      AT I N D I K A E N E R GY, W E S T R I V E TO M A I N TA I N T H E T R U S T A N D CO N F I D E N C E O F O U R P E O P L E ,
      CO N S U M E R S , A N D PA RT N E R S , A S W E L L A S OT H E R S TA K E H O L D E R S A F F E C T E D BY O U R
      O P E R AT I O N S A N D T H E P U B L I C . B U S I N E S S E T H I C S A N D I N T E G R I T Y A R E F U N DA M E N TA L
      VA LU E S AC R O S S T H E I N D I K A E N E R GY G R O U P. T H E S E A R E T H I N G S T H AT W E E X P E C T F R O M
      A L L E M P LOY E E S , B U S I N E S S PA RT N E R S A N D OT H E R S TA K E H O L D E R S A S A N E S S E N T I A L PA RT
      O F P R AC T I C I N G G O O D G OV E R N A N C E , CO M P L I A N C E P R E VA I L I N G L AW S A N D R E G U L AT I O N S [G R I
      2 -2 7 ] .




We have strong policies and systems in place to
ensure ethical conduct in our company and the
                                                                      Anti-bribery and corruption [GRI
larger partner ecosystem. Our Code of Conduct
                                                                      205-1, 205-3, 2-27]
embeds ethical business practices into the fabric                     Indika Energy implements an Anti-Bribery
of our organization. This means we take a zero-                       Management System across the Group, and the
tolerance approach to conduct such as bribery,                        Anti-Bribery Compliance Function is responsible
and we do not engage in political activities such as                  for ensuring compliance with prevailing rules
donations, endorsements, or lobbying.                                 and regulations. Last year we conducted a re-
                                                                      assessment to obtain renewal of the certification
We maintain a culture of ethics and compliance                        and to demonstrate our continued commitment
throughout Indika Energy and uphold a robust                          to business integrity and ethics. The Anti-Bribery
anti-bribery and corruption management system.                        Compliance Function continued to implement
                                                                      ABMS across the Company, raising awareness
Indika Energy Ethics Committee assists the Board
                                                                      about ABMS and the Anti-Bribery and Corruption
of Directors in following up the report received by
                                                                      Policy.
the Company through a whistleblowing system.
For each report received, the Ethics Board will                       In compliance with these standards, Indika
report it to the Board of Directors. The Ethics                       Energy Holding as well as the subsidiaries,
Committee has duties and responsibilities,                            conduct annual Bribery Risk Assessments (BRAs)
including supervision of business ethics                              to identify, analyze, assess, and prioritize the
and behavior, counseling all employees and                            bribery risks that must be anticipated by functions
stakeholders regarding the Company’s Code of                          and business lines, as well as to evaluate the
Business Conduct, adjusting the rules related to                      effectiveness of the existing controls to mitigate
ethics with developments, receiving, monitoring                       such risks [GRI 205-1]
and follow up on reports of ethical misconduct
received.




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P T I N D I K A E N E R GY T B K .




                        We establish the procedures that define the            The Ethics Committee is responsible for following
                        methodology, criteria and competence of                up and reporting grievances and reports submitted
                        appropriate auditors, and the corrective actions       through the whistleblowing system to the Board
                        taken. The audit results are reported to the           of Directors. Upon receiving the report, the
                        Governing Body, the Board of Directors, and the        Committee discusses whether the report needs to
                        Anti-Bribery Compliance Function. The audits           be investigated further. If an investigation is to be
                        review procedures, controls and systems for            done, the Committee is responsible for preparing
                        bribery or suspected bribery, violation of the anti-   a report that covers the results of the investigation
                        bribery policy or ABMS requirements, failure of a      and a recommendation of action. The Corporate
                        business partner to comply with lndika Energy’s        Secretary and Legal Department are also required
                        anti-bribery requirements, and weaknesses in or        to report the number of whistleblowing reports
                        opportunities for improvement to the ABMS.             received, the medium used by each whistle-
                                                                               blower, and the results of the investigations (if
                        In compliance with these standards, Indika
                                                                               any) to the Board of Commissioners, President
                        Energy Holding as well as the aforementioned
                                                                               Director, the Audit, Risk, and Compliance
                        subsidiaries, conduct annual internal Bribery Risk
                                                                               Committee, the Human Capital Committee, and
                        Audits to identify, analyze, assess, and prioritize
                                                                               the Good Corporate Governance Committee, every
                        the bribery risks that must be anticipated by
                                                                               three months.
                        functions and business lines, as well as to evaluate
                        the effectiveness of the existing controls to
                        mitigate such risks. No significant risks related to   Raising awareness [GRI 205-2,
                        corruption were identified in 2023. The Group also     205-3]
                        recorded no incidents of corruption for 2023. [GRI     To nurture a corporate culture of ethical behavior,
                        205-1]                                                 all newly hired employees receive training on
                                                                               the Code of Business Conduct and are required
                        Whistleblowing system [GRI                             to read and sign it to show their commitment
                        2-26]                                                  to complying with the regulations. Aside from
                                                                               our own employees, we also communicate the
                        Since December 2013, Indika Energy has had a
                                                                               mitigation of bribery and corruption risks to 100%
                        whistleblowing system in place for reporting
                                                                               of our business partners, including vendors and
                        violations or noncompliance. This system
                                                                               subcontractors, through our Integrity Pact, which
                        serves as a platform for complainants to submit
                                                                               we require them to read and sign.
                        data and information regarding indications of
                        violations in any of the companies in the Group.       Throughout 2023, the Ethics Committee and the
                        The whistleblowing system is available to all          Anti-Bribery Compliance Function also raised
                        employees, suppliers, customers and other              awareness of the Code of Business Conduct, the
                        third parties. To ensure its accessibility, the        Anti-Bribery Management System (including
                        whistleblowing system can be accessed via email,       the Anti-Bribery and Corruption Policy), and
                        mail, telephone, fax, and a dedicated website.         the Whistleblowing Program through various
                        From 2021, the system is also made available in        channels: regular emails, updates on the website,
                        both Indonesian and English.                           banners, desktop wallpapers, employee surveys,
                                                                               and refresher courses.




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                                                                                                                  SUSTAI NABI LI TY RE PO RT 2 0 2 3




           We regularly organize anti-bribery sessions to inform
           employees about its harmful impacts and encourage
           ethical behavior, thereby nurturing a culture of
           integrity and compliance throughout the company.



At the Group level, we are proud to report that 100%
of our employees have received communication
and socialization on our anti-corruption policies
and procedures. We also regularly conduct risk
assessment and communications related to anti-
corruption in Indika Energy. [GRI 205-2, 205-3].

To break down details on the number of
employees and governance bodies receiving
communication or training on anti-corruption
policies and procedures by employee category
and region is something that we need to explore
in the future as many of our employees work in
different locations. [GRI 205-2]




                                                                   57.8%
                                                                   57.8% O R 2, 070 E M P LOY E E S H AV E
                                                                   U N D E R G O N E T H E A N T I - CO R R U P T I O N
                                                                   TRAINING


                                                                   100%
                                                                   100% O R 86 M E M B E R S O F G OV E R N A N C E
                                                                   B O D I E S H AV E B E E N CO M M U N I C AT E D TO
                                                                   A N D T R A I N E D O N A N T I - CO R R U P T I O N
                                                                   POLICIES AND PROCEDURES


                                                                   3,579
                                                                   100% O R 3, 579 E M P LOY E E S H AV E
                                                                   B E E N CO M M U N I C AT E D TO O N
                                                                   A N T I - CO R R U P T I O N P O L I C I E S A N D
                                                                   PROCEDURES


                                                                   100%
                                                                   100% O F O P E R AT I O N S I N I N D I K A E N E R GY
                                                                   G R O U P A S S E S S E D FO R R I S K S R E L AT E D
                                                                   TO CO R R U P T I O N




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                                                                                                SUSTAI NABI LI TY RE PO RT 2 0 2 3




Statement of Members of the Board of
Commissioners and Board of Directors
regarding Responsibility for the 2023
Sustainability Report
We, as the Board of Commissioners and Board of Directors of Indika Energy, have evaluated the contents of
this Sustainability Report and state that the report covers all sustainability aspects that are relevant to Indika
Energy. We are responsible for the accuracy of the contents of this Sustainability Report, including financial
statements and other related information.

Jakarta, March 2024




  Agus Lasmono                                                          M. Arsjad Rasjid P.M.
  President Commissioner                                                President Director




  Richard Bruce Ness                                                    Azis Armand
  Vice President Commissioner                                           Vice President Director




  Indracahya Basuki                                                     Retina Rosabai
  Commissioner                                                          Director




  Farid Harianto                                                        Purbaja Pantja
  Independent Commissioner                                              Director




  Eko Putro Sandjojo                                                    Kamen Kamenov Palatov
  Independent Commissioner                                              Director

                                                                                                                             113
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                                                 ASSURANCE STATEMENT
SGS INDONESIA’S REPORT ON SUSTAINABILITY ACTIVITIES IN THE
PT. INDIKA ENERGY Tbk SUSTAINABILITY REPORT 2023

NATURE OF THE ASSURANCE/VERIFICATION
PT. SGS Indonesia was commissioned by PT. Indika Energy Tbk to conduct an independent assurance of the
Sustainability Report 2023. The scope of the assurance, based on the SGS Sustainability Report Assurance
methodology, included the text, and data in accompanying tables, contained in this report.

INTENDED USERS OF THIS ASSURANCE STATEMENT
This Assurance Statement is provided with the intention of informing all PT. Indika Energy Tbk’s stakeholders.

RESPONSIBILITIES
The information in the Report and its presentation are the responsibility of the directors or governing body and
the management of PT. Indika Energy Tbk. SGS has not been involved in the preparation of any of the material
included in the Report.

Our responsibility is to express an opinion on the text, data, graphs and statements within the scope of verification
with the intention to inform PT. Indika Energy Tbk’s stakeholders.

ASSURANCE STANDARDS, TYPE AND LEVEL OF ASSURANCE
The SGS ESG & Sustainability Report Assurance protocols used to conduct assurance are based upon
internationally recognised assurance guidance and standards including the principles of reporting process
contained within the Global Reporting Initiative Sustainability Reporting Standards (GRI Standards) GRI 1:
Foundation 2021 for report quality, GRI 2 General Disclosure 2021 for organisation’s reporting practices and other
organizational detail, GRI 3 2021 for organisation’s process of determining material topics, its list of material topics
and how to manages each topic, and the guidance on levels of assurance contained within the AA1000 series of
standards.

The assurance of this report has been conducted according to the following Assurance Standards:
    •   SGS ESG & SRA Assurance Protocols (based on GRI Principles and guidance in AA1000)
    •   AA1000ASv3 Type 2 (AA1000AP Evaluation) with level of assurance is Moderate.

Assurance has been conducted at a moderate level of scrutiny

SCOPE OF ASSURANCE AND REPORTING CRITERIA
The scope of the assurance included evaluation of quality, accuracy and reliability of specified performance
information as detailed below and evaluation of adherence to the following reporting criteria:
     •   Global Reporting Initiative Sustainability Reporting Standards 2021 (in accordance)
     •   AA1000 Accountability Principles (2018)

ASSURANCE METHODOLOGY
The assurance comprised a combination of pre-assurance research and interviews with relevant accountable
managers and employees at the Head Office of PT. Indika Energy Tbk’s in Jakarta via remote, sampling for
2 (two) subsidiaries, site PT. Kideco Tbk in Kalimantan Timur via remote and PT. Interport Mandiri Utama in
Kalimantan Timur via remote. PT. Indika Energy Tbk’s Sustainability Report 2023 covers PT. Indika Energy
Tbk’s, Subsidiaries, Joint Ventures, and Associated Companies .




GP5008 Issue 7
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LIMITATIONS AND MITIGATION
Financial data drawn directly from independently audited financial accounts has not been checked back to source
as part of this assurance process.

Some statements and data within the scope were not assured due to lack of accessible records during the
timescale allowed for assurance, and these are clearly marked throughout the Report.

STATEMENT OF INDEPENDENCE AND COMPETENCE
The SGS Group of companies is the world leader in inspection, testing and verification, operating in more than
140 countries and providing services including management systems and service certification; quality,
environmental, social and ethical auditing and training; environmental, social and sustainability report assurance.
SGS affirm our independence from PT. Indika Energy Tbk , being free from bias and conflicts of interest with the
organisation, its subsidiaries and stakeholders.

The assurance team was assembled based on their knowledge, experience and qualifications for this assignment,
and comprised auditors registered with International Register of Certificated Auditors (IRCA), Environmental
Management System (EMS) Lead Auditor, Quality Management System (QMS) Lead Auditor, Occupational
Health and Safety Management System Lead Auditor, the IRCA Corporate Responsibility.

FINDINGS AND CONCLUSIONS

ASSURANCE/VERIFICATION OPINION
On the basis of the methodology described and the assurance work performed, we are satisfied that the disclosure
with inclusivity, materiality, responsiveness, and impact information in the scope of assurance is reliable, has
been fairly stated and has been prepared, in all material respects, in accordance with the reporting criteria.
We believe that the organisation has chosen an appropriate level of assurance for this stage in their reporting.

QUALITY AND RELIABILITY OF SPECIFIED PERFORMANCE INFORMATION

It is recommended to perform external assurance annualy in order to increase the robustness, accuracy,
trustworthiness of disclosed information and to implement any recommended improvements.

ADHERENCE TO AA1000 ACCOUNTABILITY PRINCIPLES (2018)

Inclusivity
PT. Indika Energy Tbk’s has made a commitment to be accountable to those on whom it has an impact or who
have an impact on it as stated in some Policies such as Environment Policy, Safety and Health Policy, and Code
of Conduct. Inclusivity is the participation of stakeholders in developing and achieving an accountable and
strategic response to sustainability. Process of engagement and participation that provides comprehensive and
balanced involvement and results in strategies, plan, action and outcomes that address and respond to issues
and impacts in an accountable way. The company has a process of stakeholder participation (all stakeholders)
through periodic meeting with stakeholders.

Materiality
PT. Indika Energy Tbk’s has identified stakeholders and those issues that are material to each group of
stakeholders and the report addresses these at an appropriate level to reflect their importance and priority to
these stakeholders. In order to establish Key Material issues for Sustainability Report 2023, PT. Indika Energy
Tbk’s conducted Materiality Assessment Survey to PT. Indika Energy Tbk’s stakeholders, the result of the
Survey is presented in the Sustainability Report 2023. Materialities are GHG emissions and energy, Water and
effluents, Waste management, Land use and biodiversity, Employment, Diversity, inclusion, and equal
opportunity, Occupational health and safety, Local communities, Economic performance, Corporate governance.




GP5008 Issue 7
Page 116
Responsiveness
PT. Indika Energy Tbk’s has responded to stakeholders issues that affect to its sustainability performance and
is released through decisions, actions and performance, as well as communication with stakeholders.

Impact
PT. Indika Energy Tbk’s has identified and fairly represented impacts that were monitored and measured.
PT. Indika Energy Tbk’s has established processes to monitor, measure and evaluate impacts that lead to
effective decision making management within organization.

ADHERENCE TO GLOBAL REPORTING INITIATIVE SUSTAINABILITY REPORTING STANDARDS (2021)
In our opinion, the PT. Indika Energy Tbk’s Sustainability Report 2023 is presented in accordance with the Global
Reporting Initiative Sustainability Reporting Standards 2021 and fulfills all the required content and quality criteria.

Foundation
In our opinion, the content and quality of the report adheres to the GRI Reporting Principles of Accuracy, Balance,
Clarity, Comparability, Completeness, Sustainability context, Timeliness and Verifiability.

General Disclosures
All the General disclosures required for reporting in accordance with the Global Reporting Initiative Sustainability
Reporting Standards 2021.

Material Topics
PT. Indika Energy Tbk disclose material topics that represent an organization’s most significant impacts on the
economy, environment, and people, in accordance with Global Reporting Initiative Sustainability Reporting
Standards 2021.

Signed:
For and on behalf of SGS Indonesia




Waras Putri Andrianti
Business Manager
Jakarta, Indonesia
01 April 2024

WWW.SGS.COM




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P T I N D I K A E N E R GY T B K .




                        Glossary


                        A                                                     B
                        Annual total compensation                             Baseline

                        Compensation provided over the course of a            An initial set of critical data used for comparison
                        year anti-competitive behavior action of the          to data in following years.
                        organization or employees that can result in
                        collusion with potential competitors, with
                        the purpose of limiting the effects of market
                                                                              C
                        competition                                           Carbon Scope 1 and Scope 2 intensity

                        Anti-trust and monopoly practice                      The carbon Scope 1 and 2 intensity is calculated as
                                                                              a ratio of Scope 1 and 2 location-based emissions
                        Action of the organization that can result            of Indika Energy-operated industrial assets owned
                        in collusion to erect barriers for entry to the       at the end of the reporting year, divided by their
                        sector, or another collusive action that prevents     coal production (in Tons) and by revenue (in USD
                        competition area of high biodiversity value area      million). Further synonyms of these metrics used
                        not subject to legal protection, but recognized       in this report include ‘emissions intensity’ and
                        for important biodiversity features by a number       ‘greenhouse gas emissions intensity’.
                        of governmental and non-governmental
                        organizations                                         CO2eq (Carbon dioxide equivalent)

                        Area protected                                        The universal unit of measurement for the global
                                                                              warming potential (GWP) of greenhouse gases
                        Area that is protected from any harm during           (GHG), where one unit of CO2eq is the GWP for
                        operational activities, and where the environment     one unit of carbon dioxide. This unit allows us to
                        remains in its original state with a healthy and      discuss the equivalence of different GHGs in terms
                        functioning ecosystem area restored area that         of their GWP. More commonly measured in metric
                        was used during or affected                           tons of CO2eq, or tonCO2eq.

                        by operational activities, and where remediation      Collective bargaining
                        measures have either restored the environment
                        to its original state, or to a state where it has a   All negotiations that take place between one or
                        healthy and functioning ecosystem                     more employers or employers’ organizations,
                                                                              on the one hand, and one or more workers’
                                                                              organizations (e.g., trade unions), on the other,
                                                                              for determining working conditions and terms of
                                                                              employment or for regulating relations between
                                                                              employers and workers

                                                                              Community development program

                                                                              Plan that details actions to minimize, mitigate, or
                                                                              compensate for adverse social and/or economic
                                                                              impacts, and/ or to identify opportunities or
                                                                              actions to enhance positive impacts of a project on
                                                                              the community
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      It’s Always Sunny
                                                                                          SUSTAI NABI LI TY RE PO RT 2 0 2 3




      at Indika Energy




Conflict of interest                                 scopes depending on source.

Situation where an individual is confronted          GRI
with choosing between the requirements of
                                                     The Global Reporting Initiative (GRI) is
their function in the organization and their
                                                     an international independent standards
other personal or professional interests or
                                                     organisation that develops and disseminates
responsibilities
                                                     voluntary sustainability reporting frameworks.

E                                                    Grievance process

Effluent                                             A formal grievance process/mechanism for local
                                                     community members or other stakeholders to use
Treated or untreated wastewater that is
                                                     to register any concerns about real or perceived
discharged
                                                     actions by nearby operations, with the objective
Employee                                             of resolving problems before they escalate.

Individual who is in an employment relationship
with the organization according to national law or
                                                     H
practice                                             Hazardous

ESG                                                  Dangerous, as defined by national legislation.

Environmental, social and governance.                Hours worked

                                                     Total hours worked by employees and contractors
F                                                    at our industrial sites, including overtime but
Freedom of association                               excluding any scheduled or unscheduled absence
                                                     (eg holidays or sickness) during the reporting year.
Right of employers and workers to form, to join
and to run their own organizations without prior
authorization or interference by the state or any
                                                     I
other entity                                         IECAB

                                                     Indika Energy Cerdaskan Anak Bangsa, a
G                                                    scholarship program initiated by Indika Energy
GHG (Greenhouse gas)
                                                     ILO
Greenhouse Gas Protocol Standards and guidance
                                                     The International Labour Organization (ILO) is a
for corporate accounting and reporting on GHG
                                                     United Nations agency for the promotion of social
emissions, which help governments and business
                                                     justice and internationally recognised human and
leaders to understand, quantify, and manage
                                                     labor rights.
GHG emissions (eg CO2). The Greenhouse Gas
Protocol separates GHG emissions into different




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P T I N D I K A E N E R GY T B K .




                        ILO Declaration                                         P
                        In 1988, the ILO adopted the Declaration on             Paris Agreement
                        Fundamental Principles and Rights at Work,
                                                                                An agreement within the United Nations
                        with the core categories of collective bargaining,
                                                                                Framework Convention on Climate Change,
                        discrimination, forced labour and child labour.
                                                                                dealing with GHG emissions mitigation,
                         IPCC                                                   adaptation, and finance, signed in 2016.

                        The United Nations Intergovernmental Panel              PPCA
                        on Climate Change (IPCC) assesses scientific,
                                                                                Powering Past Coal Alliance
                        technical and socioeconomic information on the
                        risk of human induced climate change. The United        PV
                        Nations Environment Programme and the World
                        Meteorological Organization established the             Photovoltaic
                        IPCC.
                                                                                S
                        L                                                       Scope 1 emissions
                        LTIs
                                                                                Greenhouse gas emissions from owned or
                        Lost time injuries (LTIs) are recorded when an          controlled sources (i.e. direct emissions),
                        employee or contractor is unable to work following      including emissions from combustion in owned or
                        an incident. We record lost days as beginning on        controlled boilers, furnaces and vehicles/vessels
                        the first rostered day that the worker is absent        and coal seam emissions. We measure our Scope
                        after the day of the injury. The day of the injury is   1 emissions in tonCO2eq.
                        not included. LTIs do not include restricted work
                        injuries (RWIs) and fatalities.                         Scope 2 emissions

                         LTIR                                                   This approach applies GHG emissions from
                                                                                contractual arrangements; we apply supplier-
                        The lost time injury rate (LTIR) is the total number    specific emission factors when relevant and
                        of LTIs recorded per 200,000 hours worked.              available, but where they are not, the country’s
                                                                                residual or grid emission factor is applied. We
                                                                                measure our Scope 2 emissions in tonCO2eq.
                        O
                        OECD                                                    Scope 3 emissions

                        The Organisation for Economic Cooperation               Indirect greenhouse gas emissions (not included
                        and Development (OECD) is an international              in Scope 2) that occur in our value chain, including
                        organization that provides a forum in which             both upstream and downstream emissions. We
                        governments can work together to share                  are currently exploring ways to calculate scope 3
                        experiences and seek solutions to tackle economic,      emissions.
                        social, environmental and governance challenges.
                                                                                SDG
                         Occupational disease
                                                                                Sustainable Development Goals
                        Any chronic ailment or illness that occurs because
                                                                                Senior Management
                        of work or occupational activity; these are typically
                        identified as being more prevalent in a given           Senior Management refers to the individuals
                        body of workers than in the general population,         working in positions such as Chairman, CEO,
                        or in other worker populations. An occupational         President, Executive Director and other senior
                        disease is different from an occupational injury.       staff (including Vice President and Senior Vice
                                                                                President) in organizations who manage a specific
                                                                                area of the business and ensure the provision of
                                                                                resources for successful delivery of projects




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                                                                                           SUSTAI NABI LI TY RE PO RT 2 0 2 3




U                                                      Water withdrawal

United Nations Global Compact (UNGC)                   Total amount of water drawn into the boundaries
                                                       of the reporting organization from all sources for
The UNGC is a voluntary initiative based on
                                                       any use over the course of the reporting period.
CEO commitments to implement universal
                                                       Includes surface water, groundwater, seawater,
sustainability principles and to take steps to
                                                       and water imported from third parties.
support the UN Sustainable Development Goals.
United Nations Guiding Principles the United           Workforce
Nations Guiding Principles on Business and
Human Rights are a set of guidelines for states        References to our workforce include both
and companies to prevent, address and remedy           employees and contractors.
human rights abuses committed in business
operations.

Universal Declaration of Human Rights

The Universal Declaration of Human Rights is a
common standard for all peoples and all nations
that sets out fundamental human rights to be
universally protected.


V
Voluntary Principles

The Voluntary Principles on Security and Human
Rights (Voluntary Principles) Initiative is a multi-
stakeholder initiative involving governments,
companies and NGOs, which promotes a set of
principles for oil, gas and mining companies
to guide them in providing security for their
operations in a manner that respects human
rights.


W
Water discharge

Total amount of effluents, used water, and unused
water released to surface water, groundwater,
seawater, or a third party, for which the
organization has no further use, over the course of
the reporting period.




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P T I N D I K A E N E R GY T B K .




Global Reporting Initiative (GRI)
Content Index
                                     PT Indika Energy Tbk. has reported the information in accordance with the GRI Standards 2021,
  Statement of use
                                     as cited in this GRI content index for the period 1 January 2023 to 31 December 2023

  GRI 1 used                         GRI 1: Foundation 2021



  G R I S TA N DA R D                            D I S C LO S U R E                                   PAG E                OMISSION


  GRI 2: General Disclosures 2021                2-1 Organizational details                           25, 26, 28

                                                 2-2 Entities included in the organization’s          11
                                                 sustainability reporting

                                                 2-3 Reporting period, frequency and contact point    14

                                                 2-4 Restatements of information                      14

                                                 2-5 External assurance                               14

                                                 2-6 Activities, value chain and                      22, 25
                                                 other business relationships

                                                 2-7 Employees                                        Appendix

                                                 2-8 Workers who are not employees                    Appendix

                                                 2-9 Governance structure and composition             104

                                                 2-10 Nomination and selection of                     104
                                                 the highest governance body

                                                 2-11 Chair of the highest governance body            101


                                                 2-12 Role of the highest governance body in          104
                                                 overseeing the management of impacts

                                                 2-13 Delegation of responsibility                    104
                                                 for managing impacts

                                                 2-14 Role of the highest governance                  104
                                                 body in sustainability reporting

                                                 2-15 Conflicts of interest                           106

                                                 2-16 Communication of critical concerns              43, 106, Appendix

                                                 2-17 Collective knowledge of the                     105
                                                 highest governance body

                                                 2-18 Evaluation of the performance                   105
                                                 of the highest governance body

                                                 2-19 Remuneration policies                           105

                                                 2-20 Process to determine remuneration               105



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                                                                                                         SUSTAI NABI LI TY RE PO RT 2 0 2 3




G R I S TA N DA R D                       D I S C LO S U R E                                PAG E                     OMISSION


                                          2-21 Annual total compensation ratio                                        We currently do
                                                                                                                      not disclose data
                                                                                                                      on compensation.

                                          2-22 Statement on sustainable                     40, 51
                                          development strategy

                                          2-23 Policy commitments                           47, 56, 107

                                          2-24 Embedding policy commitments                 105, 107

                                          2-25 Processes to remediate negative impacts      57, 91, 95, 96

                                          2-26 Mechanisms for seeking                       34, 110
                                          advice and raising concerns

                                          2-27 Compliance with laws and regulations         109, Appendix

                                          2-28 Membership associations                      49

                                          2-29 Approach to stakeholder engagement           34

                                          2-30 Collective bargaining agreements             57, 97

GRI 3: Material Topics 2021               3-1 Process to determine material topics          11

                                          3-2 List of material topics                       11

                                          3-3 Management of material topics                 11, 63, 69, 72, 76,
                                                                                            82, 84, 88, 91, 96

GRI 201: Economic Performance 2016        201-1 Direct economic value                       19, 20
                                          generated and distributed

                                          201-2 Financial implications and other risks      43, 44, 48
                                          and opportunities due to climate change

                                          201-3 Defined benefit plan obligations            85
                                          and other retirement plans

                                          201-4 Financial assistance                        21
                                          received from government

GRI 202: Market Presence 2016             202-1 Ratios of standard entry level wage by      85
                                          gender compared to local minimum wage

                                          202-2 Proportion of senior management             93
                                          hired from the local community

GRI 203: Indirect Economic Impacts 2016   203-1 Infrastructure investments                  21, 22, 57
                                          and services supported

                                          203-2 Significant indirect economic impacts       22


GRI 204: Procurement Practices 2016       204-1 Proportion of spending on local suppliers   21

GRI 205: Anti-corruption 2016             205-1 Operations assessed for                     109, 110,
                                          risks related to corruption                       Appendix

                                          205-2 Communication and training about            110, 111, Appendix
                                          anti-corruption policies and procedures




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  G R I S TA N DA R D                       D I S C LO S U R E                                   PAG E            OMISSION


                                            205-3 Confirmed incidents of                         109, 110, 111,
                                            corruption and actions taken                         Appendix

  GRI 206: Anti-competitive Behavior 2016   206-1 Legal actions for anti-competitive                              This is currently
                                            behavior, anti-trust, and monopoly practices                          not considered as
                                                                                                                  a material topic.

  GRI 207: Tax 2019                         207-1 Approach to tax                                                 This is currently
                                                                                                                  not considered as
                                                                                                                  a material topic.

                                            207-2 Tax governance, control,                                        This is currently
                                            and risk management                                                   not considered as
                                                                                                                  a material topic.

                                            207-3 Stakeholder engagement and                                      This is currently
                                            management of concerns related to tax                                 not considered as
                                                                                                                  a material topic.

                                            207-4 Country-by-country reporting                                    This is currently
                                                                                                                  not considered as
                                                                                                                  a material topic.

  GRI 301: Materials 2016                   301-1 Materials used by weight or volume                              This is currently
                                                                                                                  not considered as
                                                                                                                  a material topic.

                                            301-2 Recycled input materials used                                   This is currently
                                                                                                                  not considered as
                                                                                                                  a material topic.

                                            301-3 Reclaimed products and                                          This is currently
                                            their packaging materials                                             not considered as
                                                                                                                  a material topic.

  GRI 302: Energy 2016                      302-1 Energy consumption within the organization     66, Appendix

                                            302-2 Energy consumption                             Appendix
                                            outside of the organization

                                            302-3 Energy intensity                               19, Appendix

                                            302-4 Reduction of energy consumption                Appendix

                                            302-5 Reductions in energy requirements              Appendix
                                            of products and services

  GRI 303: Water and Effluents 2018         303-1 Interactions with water as a shared resource   69

                                            303-2 Management of water                            70
                                            discharge-related impacts

                                            303-3 Water withdrawal                               70, Appendix

                                            303-4 Water discharge                                70, Appendix

                                            303-5 Water consumption                              70, Appendix




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G R I S TA N DA R D               D I S C LO S U R E                                 PAG E                    OMISSION


GRI 304: Biodiversity 2016        304-1 Operational sites owned, leased, managed     76
                                  in, or adjacent to, protected areas and areas of
                                  high biodiversity value outside protected areas

                                  304-2 Significant impacts of activities,           76, 77
                                  products and services on biodiversity

                                  304-3 Habitats protected or restored               76, 77 78

                                  304-4 IUCN Red List species and national           77
                                  conservation list species with habitats
                                  in areas affected by operations

GRI 305: Emissions 2016           305-1 Direct (Scope 1) GHG emissions               64, 65, 66,
                                                                                     Appendix

                                  305-2 Energy indirect (Scope 2) GHG emissions      65, 66, Appendix

                                  305-3 Other indirect (Scope 3) GHG emissions       64

                                  305-4 GHG emissions intensity                      64, 65, Appendix

                                  305-5 Reduction of GHG emissions                   65, Appendix

                                  305-6 Emissions of ozone-                          65, Appendix
                                  depleting substances (ODS)

                                  305-7 Nitrogen oxides (NOx), sulfur oxides         Appendix
                                  (SOx), and other significant air emissions

GRI 306: Waste 2020               306-1 Waste generation and significant             72
                                  waste-related impacts

                                  306-2 Management of significant                    72
                                  waste-related impacts

                                  306-3 Waste generated                              73, Appendix

                                  306-4 Waste diverted from disposal                 73, Appendix

                                  306-5 Waste directed to disposal                   Appendix

GRI 308: Supplier Environmental   308-1 New suppliers that were screened                                      This is currently
Assessment 2016                   using environmental criteria                                                not considered as
                                                                                                              a material topic.

                                  308-2 Negative environmental impacts                                        This is currently
                                  in the supply chain and actions taken                                       not considered as
                                                                                                              a material topic.

GRI 401: Employment 2016          401-1 New employee hires and employee turnover     Appendix

                                  401-2 Benefits provided to full-time               85
                                  employees that are not provided to
                                  temporary or part-time employees

                                  401-3 Parental leave                               84, Appendix

GRI 402: Labor/Management         402-1 Minimum notice periods                       83
Relations 2016                    regarding operational changes




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  G R I S TA N DA R D                    D I S C LO S U R E                                 PAG E          OMISSION


  GRI 403: Occupational                  403-1 Occupational health and                      88
  Health and Safety 2018                 safety management system

                                         403-2 Hazard identification, risk                  88
                                         assessment, and incident investigation

                                         403-3 Occupational health services                 89

                                         403-4 Worker participation, consultation, and      89
                                         communication on occupational health and safety

                                         403-5 Worker training on                           89
                                         occupational health and safety

                                         403-6 Promotion of worker health                   89

                                         403-7 Prevention and mitigation of                 89
                                         occupational health and safety impacts
                                         directly linked by business relationships

                                         403-8 Workers covered by an occupational           88
                                         health and safety management system

                                         403-9 Work-related injuries                        Appendix

                                         403-10 Work-related ill health                     Appendix

  GRI 404: Training and Education 2016   404-1 Average hours of training                    Appendix
                                         per year per employee

                                         404-2 Programs for upgrading employee              82, 83, 85
                                         skills and transition assistance programs

                                         404-3 Percentage of employees receiving regular    Appendix
                                         performance and career development reviews

  GRI 405: Diversity and Equal           405-1 Diversity of governance                      85, Appendix
  Opportunity 2016                       bodies and employees

                                         405-2 Ratio of basic salary and                    Appendix
                                         remuneration of women to men

  GRI 406: Non-discrimination 2016       406-1 Incidents of discrimination                  82
                                         and corrective actions taken

  GRI 407: Freedom of Association        407-1 Operations and suppliers in which            57, 97
  and Collective Bargaining 2016         the right to freedom of association and
                                         collective bargaining may be at risk

  GRI 408: Child Labor 2016              408-1 Operations and suppliers at significant      57, 96
                                         risk for incidents of child labor

  GRI 409: Forced or                     409-1 Operations and suppliers at significant      57, 96
  Compulsory Labor 2016                  risk for incidents of forced or compulsory labor

  GRI 410: Security Practices 2016       410-1 Security personnel trained in                47, 57, 96
                                         human rights policies or procedures

  GRI 411: Rights of Indigenous          411-1 Incidents of violations involving            91, Appendix
  Peoples 2016                           rights of indigenous peoples




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G R I S TA N DA R D                        D I S C LO S U R E                                   PAG E                OMISSION


GRI 413: Local Communities 2016            413-1 Operations with local community                91
                                           engagement, impact assessments,
                                           and development programs

                                           413-2 Operations with significant actual and         91
                                           potential negative impacts on local communities

GRI 414: Supplier Social Assessment 2016   414-1 New suppliers that were                                             This is currently
                                           screened using social criteria                                            not considered as
                                                                                                                     a material topic.

                                           414-2 Negative social impacts in the                                      This is currently
                                           supply chain and actions taken                                            not considered as
                                                                                                                     a material topic.

GRI 415: Public Policy 2016                415-1 Political contributions                        99

GRI 416: Customer Health                   416-1 Assessment of the health and safety                                 The requirement
and Safety 2016                            impacts of product and service categories                                 does not apply to
                                                                                                                     the organization
                                                                                                                     based on the nature
                                                                                                                     of its businesses.

                                           416-2 Incidents of non-compliance concerning the                          The requirement
                                           health and safety impacts of products and services                        does not apply to
                                                                                                                     the organization
                                                                                                                     based on the nature
                                                                                                                     of its businesses.

GRI 417: Marketing and Labeling 2016       417-1 Requirements for product and                                        The requirement
                                           service information and labeling                                          does not apply to
                                                                                                                     the organization
                                                                                                                     based on the nature
                                                                                                                     of its businesses.

                                           417-2 Incidents of non-compliance concerning                              The requirement
                                           product and service information and labeling                              does not apply to
                                                                                                                     the organization
                                                                                                                     based on the nature
                                                                                                                     of its businesses.

                                           417-3 Incidents of non-compliance                                         The requirement
                                           concerning marketing communications                                       does not apply to
                                                                                                                     the organization
                                                                                                                     based on the nature
                                                                                                                     of its businesses.

GRI 418: Customer Privacy 2016             418-1 Substantiated complaints                                            The requirement
                                           concerning breaches of customer                                           does not apply to
                                           privacy and losses of customer data                                       the organization
                                                                                                                     based on the nature
                                                                                                                     of its businesses.




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Stakeholder Capitalism Metrics (SCM) Index
THEME                                        CORE METRIC                                                PAG E


Governance
Governing Purpose                            Setting purpose                                            28
Quality of Governing Body                    Governance body composition                                104, 105
Stakeholder Engagement                       Material issues impacting stakeholders                     12
                                             Anti-corruption                                            109, 110, 111
Ethical Behavior
                                             Protected ethics advice and reporting mechanisms           96, 97
Risk and Opportunity Oversight               Integrating risk and opportunity into business process     43 - 48

Planet
                                             Greenhouse Gas emissions                                   63 - 67

Climate Change                                                                                          We have not followed
                                             TCFD implementation                                        TCFD recomendation
                                                                                                        this year.
Nature Loss                                  Land use and ecological sensitivity                        76, 77, 78
Freshwater Availability                      Water consumption and withdrawal in water-stressed areas   70, Appendix

People
                                             Diversity and inclusion                                    84, 85, Appendix
                                             Pay equality                                               84
Dignity and Equality                                                                                    We currently do not disclose
                                             Wage level
                                                                                                        data on compensation.

                                             Risk for incidents of child, forced or compulsory labor    57, 96

Health and Wellbeing                         Health and safety                                          88, 89, 90, Appendix
Skills for the Future                        Training provided                                          82, 83, Appendix

Prosperity
                                             Absolute number and rate of employment                     Appendix
Employment and wealth generation             Economic contribution                                      21, 22
                                             Financial investment contribution                          N/A
Innovation in better products and services   Total R&D expenses                                         N/A
Community and social vitality                Total tax paid                                             21




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UN Global Compact Index
THEME              PRINCIPLE                                                                        PA G E

Human Rights       1.   Businesses should support and respect the protection                        96, 97
                        of internationally proclaimed human rights

                   2. Businesses should make sure that they are not                                 96, 97
                      complicit in human rights abuses.



Labor              3. Businesses should uphold the freedom of association and the                   97
                      effective recognition of the right to collective bargaining

                   4. Businesses should uphold the elimination of all                               96
                      forms of forced and compulsory labor

                   5. Businesses should uphold the effective abolition of child labor               57

                   6. Businesses should uphold the elimination of discrimination                    82 - 85
                      in respect of employment and occupation



Environment        7. Businesses should support a precautionary                                     60 -78
                      approach to environmental challenges

                   8. Businesses should undertake initiatives to promote                            60 -78
                      greater environmental responsibility

                   9. Businesses should encourage the development and                               60 -78
                      diffusion of environmentally technologies



Anti-corruption    10. Businesses should work against corruption in all of                          109 - 111
                       its forms, including extortion and bribery




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Appendix
Appendix A: Emissions and Energy
GHG emissions at Indika Energy [GRI 305-1, 305-2, 305-5]

DESCRIPTION                            UNIT         2021              %                2022           %               2023

    Scope 1 emissions                   tCO2e        1,197,167        -3.50%           1,155,280       -11.41%        1,023,433
    Scope 2 emissions                   tCO2e        3,866            41.81%           5,482           19.95%         6,576
    Total Scope 1 & 2 emissions         tCO2e        1,201,033        -3.35%           1,160,762       -11.26%        1,030,009
Note:
⚫     Gases included in the calculation: CO2, CH4, N2O. GWP rates used for calculating Scope 1 and 2 emissions are based on the Intergovernmental Panel on
      Climate Change (IPCC) Fifth Assessment Report (AR5): CO2 = 1, CH4 = 28, N2O = 265. [GRI 305-1, 305-2]
⚫     2021 Scope 1 and 2 GHG emissions data is compiled based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU, and Interport. 2022 and 2023 figures
      include Kideco, Tripatra, Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika
      Energy Holding.
⚫     Indika Energy uses the operational control to consolidate emissions data. Indika Energy consolidates the data from these subsidiaries quarterly through
      the use of an internal ESG Dashboard [GRI 305-1, 305-2].
⚫     The following Scope 1 emission factors were derived from DEFRA Greenhouse gas reporting: Conversion factors 2023 document [GRI 305-1]:
      ⚫ 100% mineral diesel: 0.00256 tCO2e per liter
      ⚫ B30: 0.00191 tCO2e per liter
      ⚫ B35: 0.00179 tCO2e per liter
      ⚫ Refrigerant R-410A: 1.924 tCO2e per kg
      ⚫ Refrigerant R-134A: 1.3 tCO2e per kg
      ⚫ Refrigerant R-32: 0.677 tCO2e per kg
⚫     Scope 2 emission factors are derived from the Indonesian Ministry of Energy and Mineral Resources: https://jdih.esdm.go.id/index.php/web/result/2183/
      detail. Emission factors were selected based on the grid each operational site is connected to (e.g., Jamali, Mahakam, Barito, etc.) [GRI 305-2]

GHG emissions intensity at Indika Energy [GRI 305-4]

DESCRIPTION                                     UNIT                            2021           %              2022            %             2023

                                                 tCO2e                          835,067         26.99%         1,060,419      -7.79%         977,853
                                                 million ton coal
Production-based intensity (coal                                                37.4            -2.28%         36.6           -13.55%        31.6
                                                 production
mining companies only)
                                                 tCO2e / ton coal
                                                                                0.022           29.94%         0.029          6.67%          0.031
                                                 production
                                                 tCO2e                          1,201,033       -3.35%         1,160,762      -11.26%        1,030,009
Revenue-based intensity                          USD million revenue            3,018           40.21%         4,232          -27.95%        3,049
(all subsidiaries)                               tCO2e / USD
                                                                                398             -31.07%        274            23.17%         338
                                                 million revenue
Note:
⚫     2021 Scope 1 and 2 GHG emissions data is compiled based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU, and Interport. 2022 and 2023 figures
      include Kideco, Tripatra, Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika
      Energy Holding.
⚫     The intensity calculation includes gases CO2, CH4, and N2O, and covers Scope 1 and 2 GHG emissions. [GRI 305-4]
⚫     2021 to 2023 production-based intensity parameters are calculated based on Kideco and Indika Indonesia Resources data
⚫     2021 revenue-based intensity parameters are calculated based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU, and Interport. 2022 and 2023
      revenue-based intensity parameters include Kideco, Tripatra, Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens, Masmindo,
      Mekko, Indika Nature, and Indika Energy Holding.




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Significant air emissions [GRI 305-7]

    DESCRIPTION                                  UNIT          2021           %              2022           %               2023

    NOx                                          tons          737.48         -30.03%        516.04         33.67%          689.79
    SOx                                          tons          66.82          -97.79%        1.48           50.68%          2.23
    Persistent organic pollutants                tons          0.00           0.00%          0.00           0.00%           0.00
    Volatile organic compounds                   tons          0.00           0.00%          0.00           0.00%           0.00
    Hazardous air pollutants (HAP)               tons          0.00           0.00%          0.00           0.00%           0.00
    Particulate matter (PM)                      tons          6.63           -46.30%        3.56           265.17%         13.00
    Other standard categories
    of air emissions identified
    in relevant regulations                      tons          110.27         -15.81%        92.84          1.57%           94.30
Note:
⚫     The formula used to calculate exhaust gas emissions is concentration (mg/Nm3) x debit (m3/second) x no. of operational hours (hours/ year) x 0.0036
      (seconds/hour). Calculations are done based on emissions testing conducted in the laboratory.
⚫     The significant air emissions data includes numbers from Kideco and Petrosea. Due to Petrosea divestment completion in 2022, the 2023 data no longer
      includes numbers from Petrosea.
⚫     Both the concentration and debit data are obtained from emissions test results done by the laboratory.
⚫     Other categories of air emissions, e.g. persistent organic pollutants (POP), volatile organic compounds (VOC), etc. are not calculated yet, because they
      are not included in the requirements of the aforementioned Ministerial Regulation.


Energy consumption at Indika Energy [GRI 302-1, 302-3, 302-4]

    DESCRIPTION                           UNIT      2021                %                2022               %             2023

    Renewable energy consumption GJ                 30,295              14016.23%        4,276,513          15.45%        4,937,289
    Non-renewable energy
                                          GJ        20,907,962          -46.73%          11,136,943         -11.49%       9,857,355
    consumption
    Total energy consumption              GJ        20,938,257          -26.39%          15,413,456         -4.01%        14,794,645
Note:
⚫     2021 energy consumption data is compiled based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU, and Interport. 2022 and 2023 figures include
      Kideco, Tripatra, Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika Energy
      Holding.
⚫     Indika Energy consolidates the data from these subsidiaries quarterly through the use of an internal ESG Dashboard [GRI 302-1].
⚫     The following conversion factors were derived from DEFRA Greenhouse gas reporting: Conversion factors 2023 document [GRI 302-1]:
      ⚫ Electricity consumption: 0.0036 GJ per kWh
      ⚫ Fuel consumption:
           ⚫ 100% mineral diesel: 0.0357 GJ per liter
           ⚫ B30: 0.0353 GJ per liter
           ⚫ B35: 0.0352 GJ per liter
⚫     In 2021, renewable energy consumption only includes use of solar PV, while use of biodiesel is assumed to be non-renewable. For 2022 and 2023 data,
      the biodiesel blend in the B30 or B35 is factored into the renewable energy consumption calculation. Types of energy included in the energy intensity
      ratio are biodiesel fuel, diesel fuel, solar power, and grid electricity.
⚫     Indika Energy has not calculated energy usage outside the company or reductions in energy requirements of sold products and services because of the
      complexity of data and lack of access to data that are not under the company’s control. [GRI 302-2, 302-5]
⚫     There is a restatement for 2022 energy consumption data due to improved calculation method, using a more standardized calculation methodology
      and conversion factors.




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       Energy consumption by activity source [GRI 302-1]

           DESCRIPTION                       UNIT          2021             %                2022             %                2023

           Fuel consumption                  GJ            20,285,375       -24.16%          15,384,883       -4.00%           14,769,736
           Electricity consumption           GJ            652,882          -95.62%          28,573           -12.82%          24,908
           Cooling, heating, and
                                             GJ            0                0.00%            0                0.00%            0
           steam consumption
           Total energy consumption          GJ            20,938,257       -26.39%          15,413,456       -4.01%           14,794,645
       Note:
       ⚫     2021 energy consumption data is compiled based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU, and Interport. 2022 and 2023 figures
             include Kideco, Tripatra, Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and
             Indika Energy Holding.
       ⚫     Indika Energy consolidates the data from these subsidiaries quarterly through the use of an internal ESG Dashboard [GRI 302-1].
       ⚫     The following conversion factors were derived from DEFRA Greenhouse gas reporting: Conversion factors 2023 document [GRI 302-1]:
             ⚫ Electricity consumption: 0.0036 GJ per kWh
             ⚫ Fuel consumption:
                  ⚫ 100% mineral diesel: 0.0357 GJ per liter
                  ⚫ B30: 0.0353 GJ per liter
                  ⚫ B35: 0.0352 GJ per liter

       Energy intensity at Indika Energy [GRI 302-3]

           DESCRIPTION                              UNIT                              2021            %                2022           %         2023

                                                    GJ                                14,522,163      -3.88%           13,959,032     -0.47%    13,892,929
           Production-based intensity               million ton coal
                                                                                      37.4            -2.22%           36.6           -13.55%   31.6
           (coal mining companies only)             production
                                                    GJ / ton coal production          0.39            -1.69%           0.38           15.13%    0.44
                                                    GJ                                20,938,257      -26.39%          15,413,456     -4.01%    14,794,645
           Revenue-based intensity
                                                    USD million revenue               3,018           42.70%           4,232          -29.21%   3,049
           (all subsidiaries)
                                                    GJ / USD million revenue          6,937           -47.50%          3,642          33.23%    4,852
       Note:
       ⚫     Energy intensity ratios use energy consumption within the organization in the calculation, and cover fuel and electricity only, as Indika Energy
             does not have consumption from heating, cooling, and steam. [GRI 302-3]
       ⚫     2021 to 2023 production-based intensity parameters are calculated based on Kideco and Indika Indonesia Resources data
       ⚫     2021 revenue-based intensity parameters are calculated based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU, and Interport. 2022 and
             2023 revenue-based intensity parameters include Kideco, Tripatra, Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens,
             Masmindo, Mekko, Indika Nature, and Indika Energy Holding.

       Appendix B: Water and effluents
       Water withdrawal performance [GRI 303-3]

           DESCRIPTION                  UNIT             2021           %                2022             %               2023

           By source
           Surface water                ML               3,313.34       24.43%           4,122.72         -40.22%         2,464.44
           Ground water                 ML               14.98          -30.44%          10.42            76.47%          18.39
           Seawater                     ML               535.33         40.33%           751.21           -58.16%         314.28
           Produced water               ML               0.00           0.00%            0.00             0.00%           0.00
           Third party water            ML               1.08           988.89%          11.76            177.24%         32.60
           Total water withdrawal       ML               3,864.73       26.69%           4,896.11         -42.20%         2,829.71




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    DESCRIPTION                  UNIT            2021              %              2022              %             2023

    By Total Dissolved Solids category
    Freshwater (≤1,000
                                 ML              3,329.06          24.45%         4,143.10          -39.89%       2,490.60
    mg/L TDS)
    Other water (>1,000
                                 ML              535.67            40.57%         753.01            -54.97%       339.11
    mg/L TDS)
    Total water withdrawal       ML              3,864.73          26.69%         4,896.11          -42.20%       2,829.71
                                 million
                                 ton coal        37.4              -2.14%         36.6              -13.63%       31.6
                                 production
                                 ML /
                                 kiloton coal 0.086                30.41%         0.112             -31.81%       0.077
    Water withdrawal             production
    intensity                    USD
                                 million         3,018             42.70%         4,307             -29.21%       3,049
                                 revenue
                                 ML / USD
                                 million         1.28              -11.22%        1.14              -18.35%       0.93
                                 revenue
Note:
⚫     2021 and 2022 water-related data is compiled based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU, and Interport. 2023 figures include
      Kideco, Tripatra, Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika
      Energy Holding
⚫     While two of our operational areas are considered areas with water stress according to the World Resources Institute’s Aqueduct Water Risk
      Atlas, we have not broken down our water performance data for these areas only.

Water consumption performance [GRI 303-5]

    DESCRIPTION                                 UNIT           2 021          %              2022             %            2023

    By Total Dissolved Solids category
    Freshwater (≤1,000 mg/L TDS)                ML             3,329.06       24.45%         4,143.10         -39.94%      2,488.32
    Other water (>1,000 mg/L TDS)               ML             521.98         41.43%         738.24           -55.20%      330.72
    Total water consumption                     ML             3,851.04       26.75%         4,881.34         -42.25%      2,819.04
Note:
⚫     2021 and 2022 water-related data is compiled based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU, and Interport. 2023 figures include
      Kideco, Tripatra, Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika
      Energy Holding
⚫     While two of our operational areas are considered areas with water stress according to the World Resources Institute’s Aqueduct Water Risk
      Atlas, we have not broken down our water performance data for these areas only.

Water discharge performance [GRI 303-4]

    DESCRIPTION                          UNIT           2021              %               2022            %                2023

    By source
    Surface water                        ML             301,007.84        5.58%           317,801.31      -33.13%          212,512.66
    Ground water                         ML             14.06             -52.20%         6.72            -55.05%          3.02
    Seawater                             ML             3.57              1.12%           3.61            8054.57%         294.38
    Third party water                    ML             0.00              0.00%           0.00            100%             1.63
    Total water discharge                ML             301,025.47        5.58%           317,811.64      -33.04%          212,811.69




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           DESCRIPTION                           UNIT          2021              %              2022              %              2023

           By Total Dissolved Solids category
           Freshwater (≤1,000 mg/L TDS)          ML            301,021.90        5.58%          317,808.03        -33.13%        212,515.68
           Other water (>1,000 mg/L TDS)         ML            3.57              0.00%          3.61              0.00%          296.01
           Total water discharge                 ML            301,025.47        5.58%          317,811.64        -33.04%        212,811.69
       Note:
       ⚫     2021 and 2022 water-related data is compiled based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU, and Interport. 2023 figures include
             Kideco, Tripatra, Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika
             Energy Holding
       ⚫     While two of our operational areas are considered areas with water stress according to the World Resources Institute’s Aqueduct Water Risk
             Atlas, we have not broken down our water performance data for these areas only.




       Appendix C: Waste
       Waste generated [GRI 306-3]
           DESCRIPTION                                    UNIT        2021           %                 2022           %             2023

           Hazardous waste                                Tons        5,911          16.25%            6,871          -37.08%       4,324
           Non-hazardous waste                            Tons        5,949          114.36%           12,752         -6.25%        11,956
           Total waste generated                          Tons        11,860         65.46%            19,623         -17.04%       16,279


       Hazardous waste by management method [GRI 306-4, 306-5]

           DESCRIPTION                                    UNIT        2021           %                 2022           %             2023

           Reused                                         Tons        216.44         -42.34%           124.79         -97.12%       3.60
           Recycled                                       Tons        460.00         -41.89%           267.30         92.38%        514.23
           Composted                                      Tons        0.00           0.00%             0.00           0.00%         0.00
           Brought to a third party
                                                          Tons        2,716.28       15.84%            3,146.61       5.75%         3,327.39
           licensed to reuse/recycle
           Total waste diverted from disposal             Tons        3,392.72       4.30%             3,538.70       8.66%         3,845.22
           Incinerated (with energy recovery)             Tons        0.00           0.00%             0.00           0.00%         0.00
           Incinerated (without energy recovery)          Tons        85.00          -19.21%           68.67          -1.08%        67.93
           Landfilled                                     Tons        0.00           0.00%             0.00           0.00%         0.00
           Brought to a third party
                                                          Tons        2,433.40       34.13%            3,263.89       -87.43%       410.41
           licensed to dispose waste
           Total waste brought to disposal                Tons        2,518.40       32.33%            3,332.56       -85.65%       478.34
       Note:
       ⚫     2021 and 2022 waste-related data is compiled based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU, and Interport. 2023 figures include
             Kideco, Tripatra, Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika
             Energy Holding
       ⚫     Waste that is brought to a third party (both licensed to reuse/recycle and licensed to dispose) indicates that it is diverted or directed to disposal
             offsite, while waste that is included in other categories indicates that it is diverted or directed to disposal onsite.




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Non-hazardous waste by management method [GRI 306-4, 306-5]

    DESCRIPTION                                          UNIT           2021                %            2022        %                 2023

    Reused                                               Tons           315.60              1013.63%     3,514.62    -100.00%          0.00
    Recycled                                             Tons           2,019.54            -8.69%       1,843.96    155.98%           4,720.11
    Composted                                            Tons           130.35              51.90%       198.00      274.51%           741.53
    Brought to a third party
                                                         Tons           3.16                110.76%      6.66        996.61%           73.03
    licensed to reuse/recycle
    Total waste diverted from disposal                   Tons           2,468.65            125.36%      5,563.24    -0.51%            5,534.67
    Incinerated (with energy recovery)                   Tons           0.00                0.00%        0.00        0.00%             0.00
    Incinerated (without
                                                         Tons           0.00                0.00%        0.00        0.00%             0.00
    energy recovery)
    Landfilled                                           Tons           2,138.02            6.25%        2,271.68    133.15%           5,296.53
    Brought to a third party
                                                         Tons           1,342.33            266.23%      4,916.00    -77.13%           1,124.30
    licensed to dispose waste
    Total waste brought to disposal                      Tons           3,480.35            106.52%      7,187.68    -10.67%           6,420.83
Note:
⚫       2021 and 2022 waste-related data is compiled based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU, and Interport. 2023 figures include
        Kideco, Tripatra, Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika
        Energy Holding
⚫       Waste that is brought to a third party (both licensed to reuse/recycle and licensed to dispose) indicates that it is diverted or directed to disposal
        offsite, while waste that is included in other categories indicates that it is diverted or directed to disposal onsite.




Appendix D: Our People
                                               N O. O F E M P LOY E E S
    G E N D E R [G R I 4 0 5 - 1 ]
                                               2021               2022           2023

    Male                                       6,887              3,169          2,908
    Female                                     706                747            671

                                                                    N O. O F E M P LOY E E S
    W O M E N R E P R E S E N TAT I O N [G R I 4 0 5 - 1 ]
                                                                    2021            2022        2023

    Overall                                                         9.30%           19.08%      18.75%
    On the board                                                    6.84%           7.41%       6.98%


    D E S C R I P T I O N [G R I 4 0 5 - 1 ]                 2022                  2023

    Male in senior management                                117                   121
    Female in senior management                              19                    16
    Women representation in
                                                             13.97%                11.68%
    senior management
Note: Senior Management refers to the individuals working in positions such as Chairman, CEO, President, Executive Director and other senior staff
(including Vice President and Senior Vice President)




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                                                      N O. O F E M P LOY E E S
           AG E G R O U P [G R I 4 0 5 - 1 ]
                                                      2022                2 0 23

           < 30 years old                             835                 1,083
           30 - 50 years old                          2,434               2,084
           > 50 years old                             647                 412

                                                            N O. O F E M P LOY E E S
           N AT I O N A L I T Y [G R I 4 0 5 - 1 ]
                                                      2022               2023

           Indonesian                                 3,882              3,555
           Bulgarian                                  1                  1
           Filipino                                   1                  1
           Indian                                     8                  5
           South Korean                               7                  5
           Trinidadian and Tobagonian                 1                  1
           American                                   2                  2
           Japanese                                   3                  0
           Australian                                 4                  3
           Singaporean                                5                  4
           New Zealander                              1                  1
           Canadian                                   1                  1
           Total                                      3,916              3,579

                                                                              N O . O F E M P LOY E E S
           E D U C AT I O N A L B AC KG R O U N D [G R I 4 0 5 - 1 ]
                                                                         2022                 2023

           Doctorate                                                     4                    4
           Master’s degree                                               238                  257
           Bachelor’s degree                                             1,798                2,012
           Associate degree                                              342                  314
           Elementary to high school certificate                         1,534                992
           Total                                                         3,916                3,579

                                                                         T E M P O R A RY /
           D E S C R I P T I O N [G R I 2 - 7 ]      PERMANENT
                                                                         CONTRACT WORKERS

           Male                                      1,590               1,318
           Female                                    403                 268
       Note:
       ⚫       It is not possible to categorize employees by work region as they may be assigned to projects in several locations


           W O R K E R S W H O A R E N OT E M P LOY E E S [G R I 2 - 8 ]           MALE               FEMALE   TOTA L

           Part-time/temporary/internship staff                                    45                 41       86
           Outsourced staff                                                        1,393              83       1,476
           Experts                                                                 8                  2        10
       Note:
       ⚫       The data on workers who are not employees was compiled using the headcount methodology with the cutoff date of December 31, 2023

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Diversity of governance bodies [GRI 405-1]
                                           2023
 DESCRIPTION
                               NUMBER              %

 By gender
 Male                          80                  93.02%
 Female                        6                   6.98%
 By age group
 <30 years old                 0                   0.00%
 30-50 years old               28                  32.56%
 >50 years old                 58                  67.44%


 N O . O F N E W H I R E S [G R I 4 0 1- 1 ]       2023

 By age group
 < 30 years old                                    131
 30 - 50 years old                                 111
 > 50 years old                                    9
 By gender
 Male                                              202
 Female                                            49
Note: It is not possible to categorize new hires by work region as they may be assigned to projects in several locations.



 N O . O F E M P LOY E E T U R N OV E R [G R I 4 0 1 -1 ]        2023

 By age group
 < 30 years old                                                  73
 30 - 50 years old                                               68
 > 50 years old                                                  26
 By gender
 Male                                                            123
 Female                                                          44
Note: It is not possible to categorize employee turnover by work region as they may be assigned to projects in several locations.



 E M P LOY E E T U R N OV E R [G R I 4 0 1 - 1 ]         2022           2023

 Voluntary                                               2.99%          1.71%
 Involuntary                                             5.68%          2.75%
 Total                                                   8.67%          4.46%




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         D E S C R I P T I O N [G R I 4 0 1 - 3 ]                                      MALE         FEMALE

         Total number of employees entitled to parental leave                          962          172
         Total number of employees that took parental leave                            63           15
         Total number of employees that returned
                                                                                       63           11
         to work after parental leave ended
         Return to work rate                                                           100%         73%
       Note: Return to work rate is calculated by dividing total number of employees that returned to work after parental leave by total number of employees
       due to return to work after taking parental leave



       Training parameters
                                                                                                BY G E N D E R                       BY L E V E L

         D E S C R I P T I O N [G R I 4 0 4 -1 , 4 0 4 -3 ]             UNIT                                             BOC BOD            MGR        TOTA L
                                                                                        MALE             FEMALE
                                                                                                                         EXEC               B E LO W

         Total hours of training                                        Hours           90,319           24,494          4,728              110,085    114,813
         Average hours of training per employee                         Hours           31.06            36.50           34.51              31.98      32.08
         Percentage of employees
         receiving performance and career                               %               100.00%          100.00%         100.00%            100.00%    100.00%
         development reviews


       Appendix E: Incidents related to discrimination
         S TAT U S O F D I S C R I M I N AT I O N I N C I D E N T S [G R I 40 6 -1 ]                2021          2022           2023

         Incidents reviewed by the organization                                                     0             0              0
         Remediation plans being implemented                                                        0             0              0

         Remediation plans have been implemented and results reviewed
                                                                                                    2             3              0
         through routine internal management review processes

         Incident no longer subject to action                                                       0             0              0
         Total number of incidents                                                                  2             3              0




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Appendix F: Health and safety
                                                                                                     TOTA L
    H E A LT H A N D S A F E T Y PA R A M E T E R S [G R I 4 0 3 -9 , 4 0 3-10 ]
                                                                                   2021         2022              2023

    For employees:
    No. of fatalities                                                              0            0                 0
    No. of work-related ill health                                                 8            2                 0
    No. of lost time injuries                                                      0            3                 0
    No. of recordable injuries                                                     8            14                2
    No. of high consequence injuries                                               1            7                 0
    No. of hours worked                                                            47,847,907   58,643,037        30,603,127
    Lost Time Injury Rate                                                          0.00         0.01              0.00
    Total Recordable Injury Rate                                                   0.03         0.05              0.01
    For contractors:
    No. of fatalities                                                              0            1                 2
    No. of work-related ill health                                                 0            0                 0
    No. of lost time injuries                                                      62           6,096             12,188
    No. of recordable injuries                                                     6            23                8
    No. of high consequence injuries                                               2            5                 2
    No. of hours worked                                                            47,759,756   55,883,600        58,606,276
    Lost Time Injury Rate                                                          0.26         21.82             41.59
    Total Recordable Injury Rate                                                   0.03         0.08              0.03
Note:
⚫      2021 and 2022 health and safety data is compiled based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU, and Interport. 2023 figures
       include Kideco, Tripatra, Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and
       Indika Energy Holding
⚫      Contractor lost-time injuries for 2022 and 2023 experienced a significant increase due to contractor fatalities. According to Kepdirjen ESDM No. 185
       Tahun 2019, fatalities translate to 6,000 days of lost-time injuries.


Appendix G: Human Rights
Unionized employees in Indika Energy by gender

                             N O. O F U N I O N I Z E D
    GENDER
                             E M P LOY E E S

    Male                     369
    Female                   31
Note: Currently, only employees from Kideco participate in labor unions.




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       Incidents related to rights of indigenous peoples [GRI 411-1]

           S TAT U S O F I N C I D E N T S I N VO LV I N G R I G H T S O F
                                                                             2021         2022     2023
           INDIGENOUS PEOPLES

           Incidents reviewed by the organization                            0            0        0
           Remediation plans being implemented                               0            0        0
           Remediation plans have been implemented
           and results reviewed through routine                              0            0        0
           internal management review processes
           Incident no longer subject to action                              0            0        0
           Total number of incidents                                         0            0        0
       Note:
       ⚫      2021 and 2022 data is compiled based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU, and Interport. 2023 figures include Kideco, Tripatra,
              Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika Energy Holding


       Appendix H: Business Ethics
       Risk assessment and communications related to anti-corruption in Indika Energy [GRI 205-1, 205-2]

                                                                                                 2023
           DESCRIPTION
                                                                                 NUMBER             P E R C E N TAG E

                                                                                 Holding
           Operations assessed for risks related to corruption                   company and 10 100%
                                                                                 business units

           Governance bodies that have been communicated to
                                                                                 86                 100%
           and trained on anti-corruption policies and procedures

           Employees who have been communicated to
                                                                                 3,579              100%
           on anti-corruption policies and procedures
           Employees trained in anti-corruption                                  2,070              57.8%
       Note:
       ⚫      Data on the number of employees and governance bodies receiving communication or training on anti-corruption policies and procedures is not
              broken down by employee category and region due to unavailability of data and the inability to categorize some employees by region as they
              work in different locations.


       Incidents related to corruption in Indika Energy [GRI 205-3]
           DESCRIPTION                                                                2023

           Incidents of corruption                                                    0

           Incidents in which employees were dismissed for corruption                 0

           Incidents of business partners’ contracts being
                                                                                      0
           terminated due to violations related to corruption

           Public legal cases brought against the
                                                                                      0
           company or its employees




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Whistleblowing reports and incidents of non-compliance in Indika Energy [GRI 2-27, 205-3, 2-16]

    DESCRIPTION                                                    2021            2022        2023

    Whistleblowing reports received                                7               10          2
    Instances of non-compliance
                                                                   0               0           0
    with laws and regulations
    Fines for non-compliance with
                                                                   0               0           0
    laws and regulations
    Monetary value of fines for non-compliance
                                                                   0               0           0
    with laws and regulations (in USD)
Note:
⚫     2021 and 2022 data is compiled based on Kideco, Petrosea (divested in 2022), Tripatra, MUTU, and Interport. 2023 figures include Kideco, Tripatra,
      Interport, Indika Indonesia Resources, EMITS, Ilectra Motor Group, Xapiens, Masmindo, Mekko, Indika Nature, and Indika Energy Holding




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                        Contact us [GRI 3]
                        Our Sustainability Report 2023 forms part of Indika Energy’s annual
                        Environmental, Social, and Governance (ESG) communications [GRI 2-3].
                        This Report includes information provided in our Annual Report 2023,
                        detailing how we address the most material sustainability risks and
                        opportunities we faced during the year.


                        We also publish our ESG performance through other corporate publications
                        as well as making regular updates on our activities via our website and social
                        media platforms. Since 2022, we also publish the UNGC Communication on
                        Progress Report as part of our commitment as an UNGC signatory.


                        PT Indika Energy Tbk.
                        Graha Mitra, 3rd Floor
                        Jl. Jend. Gatot Subroto Kav. 21
                        Jakarta 12930, Indonesia
                        sustainability@indikaenergy.co.id
                        www.indikaenergy.co.id


                        IG: indika.energy

                        Linkedin: Indika Energy




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PT Indika Energy Tbk.
Graha Mitra, 3rd Floor
Jl. Jend. Gatot Subroto Kav. 21
Jakarta 12930, Indonesia
sustainability@indikaenergy.co.id

www.indikaenergy.co.id

IG: indika.energy

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Names mentioned 100 people and organisations named in the text · linked when the evidence is strong

linked org Indika Energy Tbk. p.3 ×123
linked person M. Arsjad Rasjid P.M. p.9 ×2
linked org Solusi Bangun Indonesia p.27
linked person AGUS LASMONO p.102
linked person INDRACAHYA BASUKI p.102
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linked person FARID HARIANTO p.102
linked person RETINA ROSABAI p.102
linked person PURBAJA PANTJA p.102
possible person Gatot Subroto p.26 ×2
possible org PT TELADAN RESOURCES p.51
possible person RICARDO SILAEN p.102
unresolved org PT Indika Indonesia p.11 ×2
unresolved org PT Multi Tambangjaya p.11
unresolved org PT Tripatra Engineering p.11 ×3
unresolved org PT Tripatra Engineers p.11 ×3
unresolved org PT Interport Mandiri Utama p.11 ×3
unresolved org PT Mekko p.11
unresolved org PT Empat Mitra Indika p.11
unresolved org PT Indika Multi Properti p.11 ×2
unresolved org PT Ilectra Motor Group p.11 ×2
unresolved org PT Xapiens Teknologi Indonesia p.11 ×2
unresolved org PT Kideco Jaya Agung p.29 ×2
unresolved org PT Indika Indonesia Resources p.29
unresolved org PT Kariangau Gapura Terminal Energi p.29
unresolved org PT Masmindo Dwi Area p.29
unresolved org PT Mekko Metal Mining p.29
unresolved org PT Rockgeo Energi Nusantara Green Businesses Key p.29
unresolved org PT Empat Mitra Indika Tenaga Surya p.29
unresolved org PT Kalista Nusa Armada p.29
unresolved org PT Industri Baterai Nusantara Digital Ventures Key p.29
unresolved org PT INDIKA INTI p.51
unresolved org PT Indika Inti Corpindo p.52
unresolved org PT Tripatra Multi Energi p.52
unresolved org PT Indika Tenaga Baru p.52
unresolved org PT Indika Energy Infrastructure p.52
unresolved org PT Sumber Multi p.52
unresolved org PT POSB Reksabumi p.52
unresolved org PT Indika Empat p.52
unresolved org PT Mitra Energi Agung p.52
unresolved org PT Indika Multi Niaga p.52
unresolved org PT Sea Bridge Shipping Pertambangan p.52
unresolved org PT Indika Multi p.52 ×2
unresolved org PT Indika Infrastruktur Pengangkutan p.52
unresolved org Investments Pte. Ltd. p.52 ×2
unresolved org PT Prasarana Energi p.52 ×2
unresolved org PT Cirebon p.52
unresolved org PT Mitra Baruna p.52
unresolved org PT Multi Tambang p.52
unresolved org PT Interport Mandiri Abadi p.52
unresolved org PT Cirebon Power p.52
unresolved org PT Kuala Pelabuhan Trading Pte. p.52
unresolved org PT Kariangau p.52
unresolved org PT Cirebon Energi p.52
unresolved org PT Citra Indah Prima p.52
unresolved org Indika Capital Pte. Ltd. p.52
unresolved org PT Jatim Gapura p.52
unresolved org PT Intan Resource Indika Capital p.52
unresolved org PT Solusi Mobilitas p.53
unresolved org PT Indika Medika p.53
unresolved org PT Indy Properti p.53
unresolved org PT Indika Mineral p.53
unresolved org PT Jaya Bumi Paser p.53
unresolved org PT Ilectra Motor p.53
unresolved org PT Bioneer Indika Pengusahaan p.53
unresolved org PT Diva Perdana Motor p.53
unresolved org PT Pusat Sarana Baruna p.53
unresolved org Salu Siwa Pty. Ltd. p.53
unresolved org PT Electra Mobilitas p.53
unresolved org PT Bioneer Indika p.53
unresolved org PT Telaga Mas p.53
unresolved org PT Masmindo p.53
unresolved org PT Trisetia p.53
unresolved org PT Elang Mas p.53
unresolved org PT Electra Distribusi p.53
unresolved org PT Indika Digital p.53
unresolved org PT Natura Aromatik p.53
unresolved org PT Rockgeo p.53
unresolved org PT Electra Auto p.53
unresolved org PT Zebra Cross p.53
unresolved org PT Mitra Samudra p.53
unresolved org PT Laras Ekosistem p.53
unresolved org PT Perkasa p.53 ×2
unresolved org PT Xapiens p.53
unresolved org PT Indika Logistic p.53
unresolved org PT Kalista Nusa p.53
unresolved org PT Mekko Metal p.53
unresolved org PT Foxconn Indika p.53
unresolved org PT Interport p.53
unresolved org PT Kalista Rotom Orbita p.53
unresolved org PT Energi Makmur p.53
unresolved org PT Narada Smelter p.53
unresolved org PT Cotrans Asia p.53
unresolved org PT Kalista Soter p.53
unresolved org PT Kalista Nayara p.53
unresolved org Indika 13.2 | Energy p.56
unresolved org Ministry of Energy and Mineral p.66
unresolved person Wahidah p.87
unresolved person H. SOEBAGJO p.103

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