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ISSN 2962-4606 • Volume 14 No. 1 • April 2026 Value. Focus. Growth. 2025 Sustainability Report PT Medco Energi Internasional Tbk
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ISSN 2962-4606 • Volume 14 No. 1 • April 2026
In a year shaped by change and complexity, MedcoEnergi
sharpened its strategy and responded with clarity and
discipline. Value, Focus and Growth frame our priorities, guiding how
we allocate capital, build operational excellence across our portfolio,
and invest selectively to enhance scale and expand our energy
business. Through these three themes, we strengthen operational
and financial performance, build long-term competitiveness, and
grow our presence across the markets we serve.
We support the Sustainable Development Goals
MedcoEnergi is a co-founder of the Indonesia
Business Council for Sustainable Development, the
Indonesian chapter of the World Business Council
for Sustainability Development (WBCSD)
As of 23 March 2026, PT Medco Energi Internasional Tbk
received an MSCI ESG Rating of AAA
Disclaimer Statement
The use by PT Medco Energi Internasional Tbk of any MSCI
Solutions LLC or its affiliates (“MSCI”) data, and the use
of MSCI logos, trademarks, service marks or index names
herein, do not constitute a sponsorship, endorsement,
recommendation, or promotion of PT Medco Energi
Internasional Tbk by MSCI. MSCI services and data are
the property of MSCI or its information providers, and are
provided ‘as-is’ and without warranty. MSCI names and
logos are trademarks or service marks of MSCI.
Author: Address:
MedcoEnergi 2025 Sustainability Report PT Medco Energi Internasional Tbk
Team The Energy Building 53rd Floor
SCBD Lot 11A
ISSN:
ISSN 2962-4606 Jl. Jend. Sudirman, Kav. 52-53 Jakarta
12190, Indonesia
Editor:
MedcoEnergi Corporate Sustainability & Tel. : (62-21) 2995 3000
For further information,
Risk Management Division Fax. : (62-21) 2995 3001
please visit
www.medcoenergi.com Cover & Layout Design: www.medcoenergi.com
PT Axioma Grafis Indonesia
First printing, May 2026
Publisher:
PT Medco Energi Internasional Tbk All Rights Reserved.
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Value. Focus. Growth. Value is built on the strength Operational excellence Growth is driven by selective of Medco’s engine: disciplined drives everything we do. investments that enhance capital allocation, efficient Through the rigorous scale, extend production operations and stable cash application of its principles, potential and expand our generation. By integrating we build efficiency and portfolio. By investing with capabilities across our resilience that underpin purpose, we strengthen our businesses, and executing with long-term value for energy business and build the rigour, we deliver consistent our stakeholders. foundation for future value. performance and reinforce long-term competitiveness. Marlin FPSO, South Natuna Sea Block B, Riau Islands
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The Energy Building, Jakarta, Indonesia
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PT Medco Energi Internasional Tbk
2025 Sustainability Report
Value. Focus. Growth. 3
About
This Report
MedcoEnergi publishes an annual Sustainability Report to KAP PSS - EY Limited Assurance on the Sustainability
communicate the Company’s policies and approach to sustainable Report
development and to disclose its economic, social, environmental
and governance performance. Limited Assurance Scope
The scope of KAP PSS - EY’s limited assurance on the 2025
This report covers MedcoEnergi’s activities and performance per sustainability report was limited to a selection of 101 subject matter
material topic between the period of 1 January and 31 December information included in the sustainability report and GRI
2025 and provides progress updates on the action plans established Performance Data (https://www.medcoenergi.com/en/publication/
to achieve our short, medium and long term sustainability sustainability-reports/).
objectives. A summary of the achievements and challenges for 2025
can be found on page 24-25. Limited Assurance Conclusion
This report was prepared in accordance with the 2021 Global KAP PSS - EY undertook a limited assurance as defined by
Reporting Initiative (GRI) Standards and its subsequent updates and Standards on Assurance Engagement (SAE) 30001 (Revised 2022)
demonstrates the linkage between MedcoEnergi’s sustainability (Assurance Engagements Other than Audits or Reviews of Historical
performance and the United Nations’ Sustainable Development Financial Information) and SAE 3410 (Assurance Engagements on
Goals. Unless otherwise stated we use definitions as set out in the Greenhouse Gas Statements) established by the Indonesian
GRI Standards. The GRI Performance Data and GRI Index are Institute of Certified Public Accountants (IICPA) over selected
accessible through this sustainability disclosures in the sustainability report as disclosed in
link: https://www.medcoenergi.com/en/publication/sustainability- the Appendix 1 of KAP PSS - EY’s independent limited assurance
reports/ or through MedcoEnergi’s website: report. Based on KAP PSS - EY’s procedures and the evidence
www.medcoenergi.com. obtained, nothing has come to KAP PSS - EY’s attention that causes
KAP PSS - EY to believe that the accompanying Subject Matter
Please contact investor.relations@medcoenergi.com for queries Information is not prepared and presented, in all material respects,
related to the report. in accordance with the Criteria.
Reporting Assurance KAP PSS - EY’s independent limited assurance report to the
MedcoEnergi engaged KAP Purwanto Susanti dan Surja (A member Management of MedcoEnergi is available in the company’s website
firm of Ernst & Young Global Limited, or ‘KAP PSS - EY’) to (https://www.medcoenergi.com/en/publication/sustainability-
undertake limited assurance over selected disclosures in the reports/).
sustainability report.
KAP PSS - EY is an independent party who are not involved in the
Medco Energi Sustainability Report development process, therefore,
KAP PSS - EY does not have any conflict of interest and the quality
of the limited assurance process is maintained.
The number of data indicators disclosed and assured by KAP PSS
- EY remained stable, 101 in this 2025 report. The Company will
continue to enhance disclosure and increase the number of assured
indicators once reliable and consistent data collection can be
maintained across reporting units.
1 SAE 3000 is the Indonesian adopted version of International Standards on Assurance Engagement (ISAE) 3000.
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ISSN 2962-4606 • Volume 14 No. 1 • April 2026 Bualuang Platform, Thailand
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Contents
Messages from the Driving a Sustainable Future Creating Opportunities for
Management through Climate Action Communities
8 Message from the President 64 Approaches, Commitments, 120 Approaches, Commitments,
Commissioner and Goals and Goals
10 Report by the Board of 66 Integrating Climate 121 Supporting Community
Directors Considerations into Business Livelihoods
and Operations 129 Measuring and Evaluating Our
Our Year in Summary 68 Assessing Our Climate-Related Impacts
16 Improving Our Economic Risks and Opportunities 134 Emergency and Disaster Relief
Performance 71 Our Environmental Footprint at Initiatives
17 Enhancing Our Environmental a Glance 135 Alignment of Sustainability
Safeguards 73 Emission Reductions Initiatives with the UN SDGs
18 Supporting Our Local 79 Transition to Low Carbon 137 Action Plans
Communities Energy
81 Alignment of Sustainability Strengthening Our People
About MedcoEnergi Initiatives with the UN SDGs and Digital Transformation
22 MedcoEnergi in Brief 81 Action Plans 142 Approaches, Commitments,
23 Vision, Mission, and Corporate and Goals
Values Enhancing Our Environmental 143 Our Employees
24 Value Creation in Sustainability:
and Social Safeguards
144 Initiatives to Strengthen Our
Key Highlights in 2025 86 Sustainability Assessment People
25 Key Challenges in 2025 88 Health, Safety, and 152 Accelerating the Digital
26 Our Presence Environment Management Transformation Agenda to
System (HSEMS) Deliver Business Value
28 Business at a Glance
89 The Performance Rating 153 Alignment of Sustainability
29 Economic Performance
Programme in Environmental Initiatives with the UN SDGs
Management (PROPER) 154 Action Plans
Our Approach to
89 Environmental Management
Sustainability and Monitoring Programmes Appendix
32 Sustainability Framework 94 Biodiversity Conservation
157 List of Entities
36 Driving Sustainability 98 Social Management System
Performance and Strategic 158 Awards in 2025
(SMS)
Growth 161 OJK Sustainability Reporting
99 Alignment of Sustainability
39 Sustainability Governance & Standards and Requirements
Initiatives with the UN SDGs
Commitment to Human Rights (SEOJK NO.16/2021)
100 Action Plans
41 Managing Sustainability Risks 163 Singapore’s Accounting and
and Opportunities Corporate Regulatory Authority
Advancing Our Health and (ACRA)
42 Stakeholder Engagement and Safety Culture
Collaboration 164 Acronym and Abbreviations
104 Approaches, Commitments, 169 Feedback Form
Pursuing Excellence in and Goals
Governance 104 Operational Excellence (OE)
106 Our Health, Safety, and
46 Approaches, Commitments,
Environmental Management
and Goals
System (HSEMS)
47 Good Corporate Governance
110 Health and Safety Performance
(GCG) Structure
112 Key Programmes and Initiatives
48 Risk Management
115 Alignment of Sustainability
48 Corporate Governance
Initiatives with the UN SDGs
Assurance Framework,
Programmes and Policies 116 Action Plans
56 Anti-Corruption Collective
Actions
57 Supply Chain Management
58 Alignment of Sustainability
Initiatives with the UN SDGs
59 Action Plans
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Our Pursuing Driving a Sustainable Enhancing Our
Messages from Our Year in About Approach to Excellence Future through Environmental and
6 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Messages
from the
Management
Belanak Floating Production Storage and Offloading (FPSO), South Natuna Sea Block B, Riau Islands, Indonesia
This picture is the 1st winner under the ‘Asset & Business Activities’ category of the MedcoEnergi 2025 Photography Competition
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Advancing Creating Strengthening Our PT Medco Energi Internasional Tbk
Our Health and Opportunities People and Digital 2025 Sustainability Report
Safety Culture for Communities Transformation Value. Focus. Growth. 7
8 Message from the President
Commissioner
10 Report by the Board of Directors
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Our Pursuing Driving a Sustainable Enhancing Our
Messages from Our Year in About Approach to Excellence Future through Environmental and
8 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Message from
the President Commissioner
MedcoEnergi delivered strong progress across its business
segments in 2025 through disciplined execution and operational
excellence. This performance is reinforced by our MSCI ESG AAA
rating, underscoring our strong commitment to sustainability.
Yani Y. Panigoro
President Commissioner
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Advancing Creating Strengthening Our PT Medco Energi Internasional Tbk
Our Health and Opportunities People and Digital 2025 Sustainability Report
Safety Culture for Communities Transformation Value. Focus. Growth. 9
Evolving Landscape Strategic Delivery
The year 2025 was a dynamic one that reshaped the sustainability We took measured corporate actions to deliver our strategies while
landscape.Energy systems became more volatile, driven by dynamic supporting energy security and transition. Our clear strategic focus
geopolitical and macroeconomic conditions and the rapid expansion was reflected by the investments in PT Transportasi Gas Indonesia
of Artificial Intelligence and data centres across the industries. (TGI) gas infrastructure and the acquisition of Repsol’s interests in
Inevitably, there were shifts in energy policy priorities, away from the Corridor and Sakakemang Production Sharing Contracts (PSCs).
decarbonisation efforts and more towards energy affordability and This reinforced our integrated gas value chain. We also expanded
security. At the same time, climate change impacts intensified, our renewable energy capacity, increasing power sales by eight
increasing the need for resilience and driving stricter sustainability percent compared with 2024. To support sustainable growth, we
and climate-related standards. These dynamics created both placed strong emphasis on Health, Safety, and Environmental (HSE)
challenges and opportunities for energy companies1. Amid these performance, which continues to remain above industry standards.
conditions, we are continuing to focus on operational excellence to However, several incidents occurred during the year. This
create value by embedding climate actions and delivering underscores the need for additional efforts in strengthening safety
sustainable growth. culture and operational assurance.
Strategic Approach Value Creation
We recognise our role as an energy provider, supporting the Our aspiration is to create long-term value through clear focus and
development and growth of our host countries. This role requires us responsible growth while strengthening resilience in a changing
to address the energy “trilemma” by balancing policy and market energy landscape. We remain attentive to regulatory developments
forces while supplying energy that is affordable, reliable, and and continue to strengthen our internal capabilities. I extend my
sustainable. Integrating sustainability and climate action is essential sincere appreciation to our employees, stakeholders, and partners
to meet the expectations of stakeholders and the countries in which for their dedication, leadership, trust, and collaboration in advancing
we operate. We therefore restructured our sustainability approach in our shared sustainability goals. As we look to 2026, we will be
2017 and refined it through materiality assessments in 2018 and guided by value, focus, and growth. We will strengthen disciplined
2022. These assessments enabled us to set priorities grounded in execution, sharpen priorities, and drive sustainable growth and
contextual realities and maintain robust sustainability strategies that resilience through our people, capabilities, and partnerships.
are being cascaded into Key Performance Indicators (KPIs) and
targets to support continuous improvement, monitor
implementation, and strengthen coordination in value creation
across our portfolio. With these continuous improvements, we
achieved an upgrade of our MSCI ESG rating to AAA, positioning us
as an industry ‘Leader’ in Oil & Gas Exploration and Production
sector, and maintained a CDP rating of B. Yani Y. Panigoro
President Commissioner
Climate Action
We are proud to have achieved our climate change interim targets
through operational excellence. We were able to reduce our
Greenhouse Gases (GHG) and methane emissions from 2019 base
year in our Oil & Gas operations and increase our renewable energy
mix. Investment in people is also a key enabler. Through digital
transformation and structured capability-building programmes, we
built in-house climate expertise, delivered e-learning to our
workforce and reinforced our commitment to human rights. In 2025,
we developed a Just Transition Plan to further uphold human rights
and support an inclusive energy transition.
1 Sources: McKinsey & S&P Global 2025 Sustainability Challenges & Opportunities
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Our Pursuing Driving a Sustainable Enhancing Our
Messages from Our Year in About Approach to Excellence Future through Environmental and
10 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Report by
the Board of Directors
Throughout 2025 we stayed focused,
strengthened safe operations and delivered
with discipline across the business.
Roberto Lorato Anthony R. Mathias Hilmi Panigoro Amri Siahaan Ronald Gunawan
Director & Chief Director & Chief President Director Director & Chief Director & Chief
Executive Officer Financial Officer Administrative Operating Officer
Officer
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Advancing Creating Strengthening Our PT Medco Energi Internasional Tbk
Our Health and Opportunities People and Digital 2025 Sustainability Report
Safety Culture for Communities Transformation Value. Focus. Growth. 11
Balancing Energy Security and Focused Execution to Deliver Climate and
Decarbonisation in a Changing Landscape Sustainability Targets
MedcoEnergi has a long-standing presence across Southeast Asia Our Operational Excellence has strengthened workforce capability
and beyond, operating in an environment that continues to evolve. to drive our decarbonization measures. As our second five-year
In 2025, rising energy demand and geopolitical tensions caused sustainability roadmap completed its third year, we delivered our
energy security to take increasing precedence over decarbonization key climate interim targets. They include the reduction of Oil & Gas
while climate-related events and tighter regulations reinforced the scope 1 and 2 greenhouse gas and methane emissions by 30% and
need to further embed sustainability into our operations. Responding 41% in 2025 from the 2019 base year. These exceeded our target
to this dynamic environment requires agility and disciplined of 20% reduction of scope 1 and 2 greenhouse gas emissions and
decision-making. We continued to deliver our 2023-2027 25% methane emissions for the year 2025 respectively.
sustainability roadmap with a clear focus on creating long term
value. We achieved our interim climate targets, supported by We also met our targets of disclosing and assuring our 2024 Scope
operational excellence, which remains critical to both our efficiency 3 emissions data for the first time. Moreover, our Oil & Gas
and decarbonization efforts. This progress was delivered alongside subsidiary joined the Oil and Gas Methane Partnership (OGMP) 2.0
operational growth, enabling us to provide cleaner and more reliable to further reinforce methane management and transparency,
energy to meet evolving market demand. aligning with globally recognized reporting and management
practices. We also continued to expand our lower-carbon power
Sustainability as a Foundation portfolio, with power sales increasing by 8% compared with 2024
and renewables accounting for 26% of installed capacity, meeting
for Value Creation our 2025 interim climate target. Furthermore, progress was made in
Sustainability is a strategic priority, guiding how we meet today’s managing physical climate risks, with asset-level Climate Change
energy needs while contributing responsibly to developing future Risk Assessments conducted in-house for the South Natuna Sea
energy systems. Through a materiality assessment in 2018 and a Block B and Sumbawa Solar PV assets during the year.
double materiality assessment in 2022, we identified material topics
to ensure relevance and practicality of our Sustainability Policy. With We delivered key milestones in improving our governance
this Policy, we ensure that our ESG commitments are cascaded into framework to ensure that our sustainability initiatives are
clear KPIs and targets, which we are proud to continuously achieve implemented effectively. A Just Transition Plan was issued in 2025
with focused programme execution annually. to address the social dimensions of energy transition, in line with
our Human Rights Policy. This policy was further supported by our
We continued to foster safe, inclusive, and respectful workplaces, human rights e-learning programmes across the organisation. We
reinforced by the launch of the Respectful Workplace Policy in 2025. maintained our ISO 37001:2016 Anti Bribery Management System
We also invested in our people, recognising that achieving long-term certifications and implementing ISO 37002:2021 Whistleblowing
sustainability is dependent on strong capabilities and systems Management System, among others.
across the organisation. Since 2023, more than 5,000 employees
completed sustainability and climate training programmes, aided by Collectively, these efforts continued to be recognized internationally
structured capability-building initiatives designed to strengthen and nationally, including a CDP1 Climate Change score of B, MSCI2
awareness, understanding, and action at all levels. Beyond our score of AAA and inclusion in the IDX LQ45 Low Carbon Leaders3,
workforce, we maintained support for the communities where we IDX KEHATI ESG Sector Leaders4, and IDX KEHATI ESG Quality 455
operate. In response to severe flooding across Aceh, North Sumatra, indices.
and West Sumatra, we acted swiftly to provide humanitarian
assistance to affected communities.
1 CDP (formerly the Carbon Disclosure Project) rates companies’ environmental transparency and performance, ranging from A/A- (Leadership) to F (Insufficient information). Evaluated
annually across climate change, water security, and forests, scores assess Disclosure, Awareness, Management, and Leadership. A higher score indicates better environmental
management and action.
2 MSCI ESG Ratings measure a company’s management of long-term, financially relevant ESG risks and opportunities. Companies are rated on a scale of AAA (leader) to CCC (laggard).
3 IDX LQ45 Low Carbon Leaders is an index that aims to reduce the portfolio-weighted average carbon intensity by 50% compared to the LQ45 (parent index) and exclude coal production
companies while maintaining LQ45 index sectoral availability.
4 IDX KEHATI ESG Sector Leaders is an index containing stocks with an ESG performance assessment above their industrial average value.
5 IDX KEHATI ESG Quality 45 is an index that measures the stock price performance of 45 listed companies, selected by the KEHATI Foundation, that have good Environmental, Social, and
Good Corporate Governance (ESG) performance, as well as a high liquidity and good financial performance
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Our Pursuing Driving a Sustainable Enhancing Our
Messages from Our Year in About Approach to Excellence Future through Environmental and
12 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Report by
the Board of Directors
Strengthening Energy Portfolio to Meet Health and safety performance remains a core priority, reflected in
our Operational Excellence practices and KPIs. During the year, we
Sustainable Growth maintained zero fatalities, with overall HSE performance better than
We continued to strengthen our energy portfolio and infrastructure industry benchmark. Regretfully, our Total Recordable Injury Rate
through actions that support the energy transition. In the Oil & Gas increased to 0.22 in 2025 from 0.16 in 2024. These incidents
business, average production reached 156 mboepd, slightly higher reinforced our efforts on continuous improvement, with an
than in 2024. This performance was supported by a robust gas- unwavering focus on strengthening assurance, leadership
weighted portfolio, which reflects the role of natural gas as a key accountability, and workforce engagement. We continue to embed
transition energy source. We also continued strengthening the world-class HSE practices to support safer, more resilient operations
resilience and sustainability of our gas infrastructure to support throughout the organisation.
long-term gas needs. Key portfolio actions included acquiring
Repsol’s 24% interest in the Corridor Production Sharing Contract Value. Focus. Growth.
(PSC), complemented by a 45% operating interest in the
We reaffirm our commitment to creating value through
Sakakemang PSC. These, together with increasing effective
sustainability. Disciplined delivery of our climate and sustainability
ownership of the Transgasindo pipeline to 40%, were
targets continues to guide decision‑making and enhance business
complemented by progress on the Suban facilities upgrade
resilience. We remain committed to responsible growth, supported
programme.
by a sustainability framework, robust governance, and close
We continued to expand our lower-carbon power portfolio, with attention to evolving regulatory requirements. This is made possible
renewables contributing 25% of total power sales of 4,427 GWh. by the dedication of our employees, the trust of our shareholders,
Major milestones during the year included commencing operations and the constructive engagement of host governments and
at the Medco Cahaya Geothermal (Ijen 35 MW Geothermal Plant partners. We therefore look forward to collaborating even further as
Phase 1) and the Medco Solar Bali Timur (Solar PV 25 MWp). we advance the energy transition and support sustainable and
Ongoing upgrades also included expanding the Batam combined inclusive development.
cycle power plant, which increased its capacity of 39 MW by
harnessing waste heat from the existing open cycle, thus reducing
the carbon emission intensity from 0.8 to 0.4 tons of CO2e per
MWh. In parallel, geothermal exploration progressed through initial
drilling at Bonjol and continued subsurface work in Samosir.
Hilmi Panigoro Roberto Lorato
President Director Director & Chief Executive Officer
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Our Health and Opportunities People and Digital 2025 Sustainability Report
Safety Culture for Communities Transformation Value. Focus. Growth. 13
Marlin FPSO, South Natuna Sea Block B, Riau Islands, Indonesia
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Our Pursuing Driving a Sustainable Enhancing Our
Messages from Our Year in About Approach to Excellence Future through Environmental and
14 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
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Advancing Creating Strengthening Our PT Medco Energi Internasional Tbk
Our Health and Opportunities People and Digital 2025 Sustainability Report
Safety Culture for Communities Transformation Value. Focus. Growth. 15
16 Improving Our Economic
Performance
17 Enhancing Our Environmental
Safeguards
18 Supporting Our Local
Communities
Our Year in
Summary
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Our Pursuing Driving a Sustainable Enhancing Our
Messages from Our Year in About Approach to Excellence Future through Environmental and
16 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Improving Our
Economic Performance
As a leading Southeast Asian energy natural resources company, we strive to build long-term value for our stakeholders while conducting our
business with the utmost integrity and transparency.
Description 2023 2024 2025
Production 1
160 mbopd 152 mbopd 156 mbopd
Oil & Gas Oil & Gas Oil & Gas
4,155 GWh 4,108 GWh 4,371 GWh
Total IPP Sold Total IPP Sold Total IPP Sold
Revenue2
2,249,337,578 2,399,190,555 2,395,035,969
(USD)
Net Profit/(Loss)2
330,675,261 367,358,268 113,544,167
(USD)
Third Party Supplier 198,269,182 (80%) 272,393,462 (89%) 185,728,318 (79%)
Breakdown3 Indonesia Indonesia Indonesia
(USD)
49,873,090 (20%) 33,434,661 (11%) 49,129,383 (21%)
International International International
New and Renewable Bulan Solar PV Project Bulan Solar PV Project
Energy Projects Sumbawa Solar PV 2,000 MWp, solar PV facility 2,000 MWp, solar PV facility
26 MWp, solar PV facility East Bali Solar PV Project East Bali Solar PV Project
25 MWp, solar PV facility 25 MWp, solar PV facility
Cibalapulang and Pusaka
Mini-hydro
Two 9 MW mini-hydropower
plants in West Java
Cibalapulang and Pusaka Mini-hydro
Two 9 MW mini-hydropower plants in West Java
Sarulla Geothermal
330 MW geothermal power
Sarulla Geothermal plant located in North Sumatra
330 MW geothermal power plant located in North Sumatra
Ijen Geothermal Phase-1
35 MW geothermal power plant
located in East Java
Description 2023 2024 2025
Oil & Gas Production Target 160 145-150 155-160
(mbopd)
Realisation 160 152 156
Oil & Gas Capital Expenditure Target 250 350 400
(million USD)
Realisation 261 365 393
Power Sales Target 4,000 4,100 4,300
(GWh)
Realisation 4,155 4,108 4,371
Power Capital Expenditure Target 80 80 30
(million USD)
Realisation 72 71 35
1 Production figures are net working interest and aligned with the MedcoEnergi 2025 Annual Report.
2 Based on Indonesia Statement of Financial Accounting Standards.
3 Based on third-parties Trade Payable data.
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Safety Culture for Communities Transformation Value. Focus. Growth. 17
Enhancing Our
Environmental Safeguards
Our environmental safeguards include managing our greenhouse gas emissions, energy usage, and resource consumption to minimize
environmental impact and protect the surrounding biodiversity. Further details regarding our efforts can be found in Chapters 6 and 7.
Description 2023 2024 2025
GHG Emissions Scope 1 and 4.2 3.8 (-11%) 3.8 (+0.4%)
Scope 2 market-based Oil & Gas Oil & Gas Oil & Gas
in million tCO2e
(percentage of increase or 1.4 1.4 (-3%) 1.5 (+8.9%)
decrease) Power Power Power
Energy Consumption 38.7 36.0 (-7%) 33.8 (-6.0%)
in million GJ Oil & Gas Oil & Gas Oil & Gas
(percentage of increase or
decrease) 15.1 14.6 (-4%) 15.7 (+7.6%)
Power Power Power
Water Withdrawal 46,951 49,533 (+6%) 49,800 (+0.5%)
in thousand m3 Oil & Gas1 Oil & Gas1 Oil & Gas1
(percentage of increase or
decrease) 195,645 255,105 (+30%) 314,923 (+23.4%)
Power2 Power2 Power2
Non-hazardous Waste 1,174 1,259 (+7%) 1,426 (+13.3%)
Generation in tonnes Oil & Gas Oil & Gas Oil & Gas
(percentage of increase or
decrease) 74 78 (+5%) 166 (+112.8%)
Power Power Power
Hazardous Waste 6,161 5,125 (-17%) 15,997 (+212.1%)
Generation in tonnes Oil & Gas Oil & Gas Oil & Gas
(percentage of increase or
decrease) 101 50 (-51%) 90 (+80%)
Power Power Power
Biodiversity and Conservation
205 hectares 249 hectares 310 hectares
Initiatives
Total planted area for regulatory Total planted area for Total planted area for regulatory
requirements3 regulatory requirements3 requirements3
17 hectares 10 hectares 213 hectares
Total planted area beyond Total planted area beyond Total planted area beyond
regulatory requirements4 regulatory requirements regulatory requirements
For the information on year-on-year changes of Water, Waste and Biodiversity Data,
please refer to Chapter 7 Enhancing Our Environmental and Social Safeguards page 89.
1 In-scope water withdrawals for Oil & Gas include fresh surface water, groundwater, third-party water use, seawater, and produced water.
2 In-scope water withdrawals for Power include fresh surface water, groundwater, third-party water use, and seawater.
3 Regulatory requirements include revegetation according to the Forest Area Usage Approval (PPKH) for Indonesian Oil & Gas assets and environmental permits (SKKL) specific to Corridor.
4 We conducted a major planting activity beyond the regulatory requirement in 2023 under the Medco & I - Two Trees programme, but the planted area is excluded from this total.
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Messages from Our Year in About Approach to Excellence Future through Environmental and
18 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Supporting Our
Local Communities
We implement community development programmes aimed at fostering self-reliance and resilience, with a focus on sustainable livelihoods
and infrastructure development. Further details regarding our programmes can be found in Chapter 9. The following table summarise
MedcoEnergi’s support over the past three years:
Description 2023 2024 2025
Total Funding for Community
1,812,866 2,531,162 2,318,093
Development Programme (USD)
MedcoEnergi has implemented programmes and initiatives to address various local needs, including:
Enabling Sustainable Livelihoods through Circular Innovation
• Implemented an Organic Fertilizer Ecosystem
• Supported eco-friendly cricket farming in Pekanbaru,
Development programme in Banggai, Central
Riau, as a circular economy initiative that promotes
Sulawesi to promote circular waste utilisation and
sustainable production and strengthens community
sustainable agricultural practices in our non-
economic independence.
operated asset.
Improving Essential Infrastructure for Community Well-Being
• Constructed a concrete bridge in Rahaden Village, • Expanded electricity access for underprivileged
Barito Utara, Central Kalimantan, to improve households in Cianjur, West Java, through a free
community access. installation programme in partnership with PLN.
Strengthening Environmental Awareness and Conservation
• Promoted fruit tree planting in East Aceh, Aceh
• Conducted coastal conservation awareness
Province, by distributing 500 saplings to 500
sessions for secondary students in Thailand.
households to support food security.
Advancing Women’s Entrepreneurship for Sustainable Communities
• Renovated production houses for Hidayatullah
• Supported sustainable agriculture training for
Women Farmers in four villages in East Tarakan,
women farmers in Giriyoso Village, Musi Rawas,
North Kalimantan, to meet halal certification
South Sumatra.
standards and strengthen market access.
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Advancing Creating Strengthening Our PT Medco Energi Internasional Tbk Our Health and Opportunities People and Digital 2025 Sustainability Report Safety Culture for Communities Transformation Value. Focus. Growth. 19 Sustainable Agriculture as part of MedcoEnergi’s Community Development Programme in South Sumatra, Indonesia This picture is the 2nd winner under the ‘Social & Culture’ category of the MedcoEnergi 2025 Photography Competition
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20 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
About
MedcoEnergi
Acid Gas Recovery Unit in Block A, Aceh, Indonesia
This picture is one of the entries in the ‘Business & Assets’ category of the MedcoEnergi 2025 Photography Competition
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Safety Culture for Communities Transformation Value. Focus. Growth. 21
22 MedcoEnergi in Brief
23 Vision, Mission, and Corporate
Values
24 Value Creation in Sustainability:
Key Highlights in 2025
25 Key Challenges in 2025
26 Our Presence
28 Business at a Glance
29 Economic Performance
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MedcoEnergi
in Brief
MedcoEnergi is a diversified energy and natural resources group listed on the Indonesia Stock
Exchange (MEDC-IDX) and the OTCQX® Best Market (MDCOY), with three key business sectors:
Oil & Gas, Power, and Copper & Gold Mining. Leveraging its access to capital, natural resources,
assets portfolio & infrastructure, and technical & commercial expertise, the Company drives
value creation by providing affordable, reliable, and sustainable energy, delivering long-term
returns for shareholders and stakeholders while upholding responsible stewardship of the
environment and communities.
Oil & Gas Sustainability Performance
MedcoEnergi primarily produces oil and gas in Indonesia, MedcoEnergi implements a long-term sustainability, climate
with additional operations in Oman, Thailand, and Yemen. change, and energy transition strategy with a strong
We have interests in 17 oil and gas assets in Indonesia, 12 of foundation of enterprise risk management and a proven track
which are producing. Internationally, we have interests in 10 record in ESG performance.
oil and gas properties, with 4 currently in production, along
MSCI elevated us to the 'Leader' category with an AAA rating
with exploration assets in Oman and development assets in
in March 2026, advancing from our previous AA rating. This
Tanzania.
rating reflects MSCI’s recognition of MedcoEnergi’s progress
In 2025, average production was 156 mboepd, comprising over the past seven years in integrating environmental, social,
72% gas and 28% oil. Key contributions came from South and governance (ESG) considerations into its business
Natuna Sea Block B (Terubuk and Forel) as well as projects in strategy and operations. We also maintained our B rating from
Corridor, Senoro and Oman. Unit costs were US$8.6 per boe, CDP for our climate disclosure.
below guidance and consistent with the Company’s position
MedcoEnergi remains on track to achieve its goals of reaching
as a low-cost operator with cash costs under US$10 per boe
net zero greenhouse gas (GHG) emissions for Scope 1 and
for several years.
Scope 2 by 2050 and Scope 3 by 2060. The Company is
In 2025, the Company strengthened its portfolio through the strengthening its energy transition capabilities by investing in
acquisition of Repsol’s 24% interest in the Corridor PSC, the development and upskilling of its diverse workforce.
increasing its working interest to 70%, as well as securing a
45% operating interest in the Sakakemang PSC and in the
process of acquiring an 80% operating interest in the South
Sakakemang PSC in South Sumatra. The Company also
Copper & Gold Mining
increased its effective ownership in PT Transportasi Gas
Indonesia (TGI) to 40%. MedcoEnergi holds a 20.9% interest in PT Amman Mineral
Internasional Tbk (AMMN), a publicly listed copper and gold
In March 2026, MedcoEnergi signed the Cendramas PSC in mining company. AMMN owns Batu Hijau, the second-largest
Malaysia as operator, further expanding its regional footprint. copper–gold mine in Indonesia, and Elang, one of the world’s
largest undeveloped copper–gold porphyry deposits.
Considering the non-controlling nature of our interest, we do not
include AMMN Environmental, Social and Governance (ESG)
activities in this Sustainability Report.
Power
Medco Power Indonesia, a wholly owned subsidiary of Financial Performance
MedcoEnergi, owns and operates 15 Gas to Power,
Geothermal, Solar PV, and other Renewables IPPs
(operating and in the pipeline) and provides operation & MedcoEnergi’s financial performance remains resilient, and
maintenance (O&M) services for its own and third-party the Company’s healthy shareholder returns reflect its financial
power plants across Bali, Batam, Java, Sumatra, Sumbawa, discipline and ability to maintain profitability. In 2025, Moody's
Timor, and Sulawesi. Investors Service upgraded the Company’s credit rating to Ba3
from B1, with a Stable outlook. Fitch and S&P maintained their
In 2025, power sales were 4,371 GWh, with 25% derived BB- (Stable) ratings and Pefindo reaffirmed its idAA- stance.
from renewable sources, including the start of commercial
operations at the 35 MW Ijen Geothermal Unit 1, 25 MWp In 2025, MedcoEnergi paid dividends totaling US$80 million
East Bali Solar PV, and 39 MW Energi Listrik Batam (IDR 53.4 per share), representing a 19% increase per share
Expansion projects. year-on-year.
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Vision, Mission, and
Corporate Values
Vision
To be the Energy Company of Choice for investors, shareholders,
partners, employees, and communities where we operate.
Mission
To build long-term value with a portfolio of sustainable energy and
natural resources businesses.
Corporate Values
Professional
All employees must conduct themselves in a professional manner by:
• Being competent in their area of expertise.
• Having a “champion spirit”.
• Always seeking self-improvement.
• Having professional capabilities and knowing their own limits.
Ethical
All employees must conduct themselves in an ethical manner by:
• Conducting business fairly with high moral integrity.
• Applying the highest ethical standards at all times.
• Understanding and following the Company’s ethics and Good Corporate Governance policies.
Open
All employees must make efforts to promote transparency by:
• Encouraging informality and openness in communication at all levels.
• Building an environment of trust among employees and management.
• Being open-minded in thought, behaviour, and work.
Innovative
All employees must cultivate a spirit of innovation by:
• Helping to build a culture of trailblazers.
• Continuously searching for innovative solutions to achieve better, safer and cost-effective outcomes.
• Demonstrating intellectual and emotional maturity.
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Value Creation in Sustainability:
Key Highlights in 2025
CLIMATE CHANGE & ENERGY TRANSITION
Achieved 2025 key interim targets:
1 OGMP 2.0 membership
2 Commercial operations of the Ijen Geothermal, East Oil & Gas Scope 1 & 2 GHG 20 % 30 %
Bali Solar PV Plant and ELB Expansion Emissions Reduction1 Target Actual
3 The first asset level Climate Change Risk Assessment Oil & Gas Methane 25 % 40 %
conducted in-house for South Natuna Sea Block B and Emissions Reduction1 CH4
Target Actual
Sumbawa Solar PV
4 Formal issuance of Just Transition Plan Renewable Mix 26 % 26 %
Installed Capacity Target Actual
SOCIAL, SECURITY AND COMMUNITY HUMAN RESOURCES
1 Full implementation of Social Management System and 1 Mandatory Sustainability and Climate Change
Medco Security Management System e-learning reached 5,000 employees since
launched in 2023
2 Oil & Gas Security Policy update
2 Launched Respectful Workplace Policy
3 Built 47 housing2 for underprivileged communities in
collaboration with Habitat for Humanity and Medco 3 Launched Human Rights e-learning
Foundation.
4 As of 2025, women represented 17.7% of the
4 Partnered with Bank Rakyat Indonesia (BRI) to bolster total workforce. In addition, women hold
Medco Oil & Gas, supported Micro, Small, and Medium 20.4% of leadership positions (manager and
Enterprises (MSMEs), advancing their business maturity above), reflecting our continued commitment
and improving future financing opportunities. to advance gender diversity and empower
women in leadership roles.
5 Hosted an MSME Festival featuring 22 fostered MSMEs
from nearly all MedcoEnergi assets, expanding market 5 The launch of Women@Work reinforced the
access while delivering capacity-building sessions in initiative’s goal of fostering a supportive
digital marketing, branding, financial literacy, and online community to empower, connect, and support
marketplace strategies for MSME owners. female employees.
HEALTH, SAFETY AND ENVIRONMENT UPHOLDING INTEGRITY
1 More Trees Campaign3: 9,000 mangrove trees planted
Maintaining eleven (11) ISO 37001:2016 ABMS
2 Oil & Gas TRIR below IOGP reference certifications and implementing ISO 37002:2021
Whistleblowing Management System.
3 Upskilling Process Safety competency
1 Reduction from 2019 base year.
2 Location in Tangerang, East Java and South Sumatra, Indonesia.
3 Location in West Java, Indonesia.
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Key Challenges in 2025
VANDALISM - PIPELINE DAMAGE
Following investigation by local authorities (including environmental authorities, security authorities, village administration), pipeline
damage in South Sumatra was confirmed as deliberate vandalism, resulting in oil spills totaling approximately 237 barrels.
We immediately activated emergency response protocols, isolating affected sections, stopping the leaks, and deploying technical
teams to conduct containment, recovery, and clean-up in accordance with HSE standards. Response and clean-up activities were
coordinated with SKK Migas and the local authorities. All leak points were repaired and spill management was completed, with
government verification confirming no further environmental impact.
To mitigate recurrence, we continue to strengthen surveillance, preventive controls, and rapid-response capabilities, while working
closely with authorities and local stakeholders to protect critical energy infrastructure and ensure safe, reliable operations.
SAFETY PERFORMANCE
A Lost Time Injury (LTI) occurred during maintenance activities related to electrical shutdown work, underscoring the inherent risks
of non-routine and higher-hazard tasks. In response, we are reinforcing Hazard Identification, Risk Assessment, and Assurance
processes, which will remain priority focus areas through 2026 to strengthen preventive controls and support sustained HSE
performance.
Another focus area is sustaining consistent HSE performance, underscoring the importance to further embed our safety culture
during the execution of new projects. Several recordable cases were linked to project execution phases, highlighting the need for
stronger safety integration during project and start-up.
Lematang, South Sumatra, Indonesia
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Our Presence
Thailand
25
24
11 12
1
Malaysia 10 15
26
27 16
Malaysia
Su
28 23
m
at
ra
30
13
Kalimantan
29 14
31
3
2
Headquarters 5
The Energy Building, Jakarta 4
6
Pipeline
West Natuna Transportation System
Grissik-Batam-Singapore
Grissik-Duri
Development Stages 32
33 7 8 9
Exploration Java
Development
34 35
Production 36 38
Installed Power 37
Oil & Gas
1 Block A 9 Madura 17 Senoro-Toili 22 Oman
2 Corridor 10 Beluga 18 Donggi Senoro LNG 23 Onshore Receiving Facility, Singapore
3 Sakakemang 11 South Natuna Sea Block B 19 Mexico5 24 Cendramas2
4 South Sumatra Region 12 North Sokang6 20 Tanzania 25 Bualuang, Thailand
5 South Sakakemang3 13 West Bangkanai6 21 Yemen
6 Amanah 14 Bangkanai 1
PSC awarded in March 2026
2
PSC signed in March 2026, effective in September 2026
7 Sampang 15 Simenggaris 4 3
PSC under acquisition, pending government approval
4
PSC under divestment, with a conditional Sale and Purchase Agreement (SPA) signed in
8 Nawasena1 16 Tarakan February 2026
5
PSC under relinquishment, pending government approval
6
PSC terminated in November 2025, pending government approval
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19
22
21
20
18
17
Sulawesi
Papua
Power
26 Sarulla Geothermal 29 Bonjol Geothermal 32 Cibalapulang Mini-hydro 35 East & West Bali Solar PVs
27 Samosir Geothermal 30 DEB, MEB & ELB Gas-fired 33 Pusaka Mini-hydro 36 Sumbawa Solar PV
28 Riau Gas-fired 31 EPE & MPE Gas-fired 34 Ijen Geothermal
Copper & Gold Mining
37 Batu Hijau 38 Elang
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Business
at a Glance
Oil & Gas (excluding Cendramas, Malaysia)
12
Onshore
4
Offshore
Oil & Gas
Production
163 160
152 156
(mboepd)
Production Assets Production Assets
94 129 128 111 113
11 7
60
Gas
34 34 32 41 43
Oil
2021 2022 2023 2024 2025
Exploration & Presence
Development Assets in Countries
82%
Onshore Production
18%
Offshore Production
2P Reserves
and Contingent
Resources
(mmboe) 1,154
1,040 1,041
996 896
28% 72%
Contingent
Resources
481 539 493 564
2P Reserves 389
Oil Production Gas Production 2021 2022 2023 2024 2025
Power
6
Operated Gas-fired IPPs
2
Operated Mini-hydro IPPs
2
Operated Geothermal IPP
2
Operated Solar PV
4,371GWh 25%
Power Sales, 4,155
4,371
4,108
Gas-Fired & 3,993
801 831 1,094
Renewables 855
Total Sales Renewables Sales (GWh) 2,718
870
3,353
1,011MW 2,160 MW
3,138 3,277 3,277
Renewables 1,848
Gas-Fired
IPP Installed Capacity O&M Capacity
2021 2022 2023 2024 2025
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Environmental, Social & Governance
Improved MSCI ESG Rating1 Maintained CDP Score
AAA
AA
A A
BBB
B B
Nov 2021 Dec 2022 Nov 2023 Nov 2024 Mar 2026
2024 2025
1) In 2026, MedcoEnergi received a rating of AAA in the MSCI ESG Ratings assessment.
MSCI Disclaimer Statement on page 1.
Reduced Emission in 2025 from 2019 Base Year
Oil & Gas Scope 1 & 2 (GHG) Oil & Gas Methane (CH4)
GHG
30% CH4
40%
Economic Performance
Direct Economic Value Generated and Distributed (USD)
Description 2023 2024 2025
Direct Economic Value Generated 2,298,832,099 2,485,059,002 2,433,566,660
Revenues 2,298,832,099 2,485,059,002 2,433,566,660
Description 2023 2024 2025
Economic Value Distributed 1,609,809,122 1,770,712,102 1,779,056,728
Operating Costs 858,973,110 993,096,018 987,834,656
Employee Wages and Benefits 130,549,749 131,188,382 135,516,363
Payments to Providers of Capital 276,002,381 307,332,759 328,339,988
Payments to Host Countries Governments 339,666,380 336,022,192 323,925,908
Community Investments 4,617,501 3,072,750 3,439,813
Economic Value Retained 689,022,977 714,346,901 654,509,932
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Our Approach
to Sustainability
Grissik Central Gas Plant, Corridor, South Sumatra, Indonesia
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Safety Culture for Communities Transformation Value. Focus. Growth. 31
32 Sustainability Framework
36 Driving Sustainability
Performance and Strategic
Growth
39 Sustainability Governance &
Commitment to Human Rights
41 Managing Sustainability Risks
and Opportunities
42 Stakeholder Engagement and
Collaboration
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Sustainability Framework
Three Pillars of Sustainability
Our Sustainability Policy is anchored in three pillars that guide how we operate with integrity and transparency while upholding our corporate
values and good governance. This approach protects our social license to operate and creates value for our business, society, and the
environment. The Sustainability Policy is accessible at www.medcoenergi.com.
MedcoEnergi’s Sustainability Policy
Leadership of and Environmental and Local Community
by Our Employees Social Development Empowerment
Our people are our most valuable asset. They As a responsible corporate citizen, we are MedcoEnergi endeavours to be a leading
are the keystone of our operations and our committed to comply with all applicable laws company on social practices and responsibility
future success. Therefore, we must recruit and regulations, and aligning our health, wherever we operate. We engage regularly,
diverse talent from all backgrounds who safety and environmental management with openly and honestly with stakeholders to
possess the right skillsets and ethical values. industry best practice and relevant share, hear and understand each party’s
We are committed to maintaining a healthy, international standards. We regularly set and views and concerns. We respond by making
safe workplace built upon a culture of mutual monitor our goals and performance to achieve community investment decisions in a
respect. To be successful we will develop the zero injuries, illnesses, environmental strategic, fair and transparent manner as we
capacity of all of our employees while incidents, and the reduction of waste and seek to empower and support the creation of
recognising and rewarding individual emissions. We seek to continually strengthen self-reliant communities aligned with the UN
performance and expecting personal our operational excellence through enhancing SDGs.
accountability. All levels of our management our safety culture, stakeholder engagement,
are expected to set clear directions towards environmental stewardship, and the ongoing
our expectations. adoption and development of best practices.
We are committed to complying with all
applicable laws and regulations, to respecting
human rights in line with the UN Guiding
Principles for Business and Human Rights and
the Voluntary Principles on Security and
Human Rights, and to learning from and
applying industry best practice and relevant
international standards.
Governance as the Foundation of Sustainability
As the foundation that interconnects and strengthens all pillars, our governance framework encompasses Anti-Bribery & Corruption (ABC), Human Rights,
Public Policy, Socio-economic Compliance, Supply Chain Management, and Enterprise Risk Management, enabling ethical and responsible business practices
across our operations.
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Material Topics
We conducted a double materiality assessment in 2022 that validated the continued relevance of our Sustainability Policy and confirmed that
most material topics identified in 2018 remain applicable. We identified 28 material topics and categorised them into tiers based on their
significance, likelihood, impact on enterprise value (outside-in), and effects on society and the environment (inside-out).
These material topics reflect extensive stakeholder engagement, board consultations, and guidance from our consultant, which inform our
strategic priorities. We conducted internal and external stakeholder engagement through focus group discussions, questionnaires/surveys,
and communication channels to ensure inclusive stakeholder participation.
Material Topics based on 2022 Double Materiality Assessment
Leadership of and Environmental and Local Community
by Our Employees Social Development Empowerment
Workplace Health, Safety, and Climate Risks and Resilience Local Community Development
Wellbeing Programmes:
Climate Mitigations
Security Practices Health
Climate Adaptations
Talent Attraction, Retention, and Environment
Development Water
Education
Air Quality
Local Infrastructure
Effluents and Waste
Asset Integrity and Security Supporting Livelihood
Key Points Key Points Key Points
People/Organisations as a critical enabler of The three climate aspects (risks and Despite the risks of negatively impacting
success to move forward, and the ability to resilience, mitigation, and adaptions) as both livelihoods and the environment,
attract and maintain a lean, efficient, and clear and urgent/significant issues. MedcoEnergi has the chance to share
diverse pool of top fit-for-purpose talent. significant benefits with the local
communities.
Governance
Anti-Corruption and Business Ethics Human Rights
Stakeholder Engagement
Policy and Regulatory Environment Responsible Procurement Practices
Key Points Corruption is a major threat to both social development and the market economy.
Enhancing Rice Field Production, East Java, Indonesia
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Sustainability Risk and Mitigation
These Tier-1 material topics shown below represent the highest significance in terms of likelihood, impact, and both outside-in and
inside-out considerations. They outline the key risks we have identified as well as the risk mitigations. These disclosures represent a
continued step towards alignment with IFRS S1 standards. We will continue to enhance the depth and quality of our disclosures.
Based on 2022 Double Materiality Assessment, the following material topics describe sustainability-related risks and opportunities that
could reasonably be expected to affect MedcoEnergi's strategies, performance, and financial prospects. The results of the double
materiality assessment, including the identified material topics, inform our sustainability strategies with defined KPIs and Targets
reflected in our short, medium, and long‑term action plans. The sustainability related risks are regularly reviewed and updated in line
with the dynamics of the global risk exposure, the progress of our sustainability roadmap and changes in regulatory requirements to
support sustainable growth. The following are the key risks and mitigations as of 2025.
Social, Security and
Workplace Health, Safety, and Wellbeing
Cybersecurity
Sustainability Risks Sustainability Risks
Our main operations are subject to significant operating hazards, including fires, explosions, blowouts, oil spills, natural Our business could be negatively affected by social
disasters, and extreme weather, resulting in exposures to material environmental and social risks. Furthermore, health risks and security threats, including cybersecurity
hazards and mental health challenges may adversely affect workforce productivity and performance. threats, destructive forms of protest and opposition
and other disruptions.
Mitigations
Implementing our Health, Safety, and Environment Management System (HSEMS) aligned with ISO 45001, ISO 14001 Mitigations
and IOGP 456, supported by Company standards, guidelines, and operating procedures to ensure the consistent Strengthening our Social Management System (SMS)
application of comprehensive HSE practices across our operations. through cross-functional collaboration across company
functions and enhanced team competencies to
Strengthening a supportive work environment, including promoted physical and mental well-being, thereby effectively identify, manage, and mitigate social risks.
safeguarded employees and maintained stable and reliable operations. Focusing on fostering stakeholder engagement and
ensuring that grievance mechanisms are aligned with
the United Nationals Guiding Principles on Business
and Human Rights (UNGP) criteria. The Company
protects assets through the Medco Security
Management System (MSMS) and an integrated plan
Talent Attraction, Retention, and Development covering physical security systems, risk assessments,
and the Zero Incident Programme. Security is further
reinforced by cooperation with relevant government
agencies, security service providers (Badan Usaha
Sustainability Risks Jasa Pengamanan - BUJP), and proactive measures
Skill shortages, turnovers, and capability gaps may hinder project deliveries and energy transitions. such as stakeholder engagement, security personnel,
and intelligence monitoring.
Mitigations
MedcoEnergi has established a Capability Development framework and supporting platform that incorporates talent Our cybersecurity practices are aligned with
management and succession planning to systematically strengthen people development. The framework enables Information Security Management System (ISMS)
targeted development through structured training programmes, cross‑asset and cross‑functional mobility, and initiatives standards. Key initiatives included upgrading our
designed to address identified competency gaps. security infrastructure, establishing a 24/7 Security
Operations Center (SOC), reinforcing governance
Technical training and leadership development programmes are implemented to further enhance workforce capabilities. frameworks, and fostering a security conscious culture
In addition, regular organisational reviews are conducted to ensure ongoing alignment between workforce capacity and through cybersecurity awareness programmes and
evolving business needs. regular exercises.
Climate Risks and
Climate Mitigation Climate Adaptations
Resilience
Sustainability Risks Sustainability Risks Sustainability Risks
Physical climate impacts could disrupt our Potential failure to meet our emission reduction Physical climate change impacts could affect
operations, while transition risks from carbon pricing, targets could result in regulatory penalties, facilities, operations, value chain, and surrounding
stricter emission regulations, and policy changes stakeholder backlash and reputational damage communities and social well-being. Failures in
may increase operating costs and affect asset affecting relationships with investors and partners. adapting to climate-related hazards, such as
viability. extreme weather, flood, or water stress, may lead
Technology risks in deploying carbon capture, to asset damage, supply chain interruptions,
Mitigations renewable energy systems or other emission reduced productivity, and heightened health and
Established a Climate Change Strategy, including reduction technologies may lead to cost overruns or safety risks for employees and communities.
climate-related risk assessments to ensure asset performance issues.
resilience, incorporating climate considerations into Mitigations
our Corporate Business and Financial Planning, and Mitigations Conducting climate-related physical risk
strengthening employees’ capabilities to improve Enhancing energy efficiency, reducing emission, and assessments and control measures to strengthen
preparedness and manage climate-related risks exploring carbon removal options contribute to asset resilience, while integrating climate
effectively. reducing carbon footprint, improving resource considerations into current and future engineering
efficiency, and supporting long-term financial designs.
performance.
Assessing the financial impact of climate-related
A clear climate strategy and emissions reduction physical risks to better understand potential
performance can enhance access to capital, impacts on assets, operations, and the value chain,
Asset Integrity strengthen investor confidence and support long-term and to inform risk management and investment
business resilience. decisions.
The transition to low carbon energy include expanding Engagement with various stakeholders on climate
Sustainability Risks our natural gas portfolio as a transitional fuel adaptations and energy transition can contribute to
Equipment failures, corrosion, or structural issues at alongside developing renewable energy to support a more enabling business ecosystem, strengthen
facilities can lead to production losses, safety the Sustainable Development Goals of Indonesia and community resilience, and support the identification
incidents, or environmental releases. other countries where we operate. of emerging opportunities.
Mitigations Advancing renewable energy and low-carbon
Regular maintenance, inspection, and surveillance solutions may create opportunities to strengthen our
programmes improve asset performance, extend market position in the transition to a net zero
operational life, reduce downtime risks, and enhance economy.
reliability, operational excellence, and safety
performance.
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Water Air Quality Effluents and Waste
Sustainability Risks Sustainability Risks Sustainability Risks
Water scarcity in our operational areas may constrain Emissions from our operations can harm air quality, Improper handling or disposal of waste and
production, increase costs, and adversely affect affecting the health of our workforce and surrounding effluents can cause environmental contamination
operational performance and continuity. communities, while poor management may damage and regulatory violations, while inadequate waste
our reputation and require costly mitigation measures. management may pollute soil and water, affect
Mitigations ecosystems and communities, and increase
Implementing water conservation and recycling Mitigations operating costs.
strategies reduces reliance on freshwater sources, Improving air quality management reduces
mitigates water scarcity risks, and supports environmental impacts on the workforce and Mitigations
sustainable operations in water-stressed areas. surrounding communities, improves health and Improving effluent treatment and implementing
Conducting assessments to include water scarcity wellbeing, and strengthens our social license to integrated waste management practices through
risks for new projects and put mitigation measures in operate. segregation, reduction, reuse, recycling, and
place. composting to ensure regulatory compliance while
enhancing recycling rates and overall environmental
performance.
Local Governance Risk &
Stakeholder Engagements
Community Compliance
Sustainability Risks Sustainability Risks Sustainability Risks
Ineffective implementation of community The risk of fraud, bribery, corruption, and violations of Inadequate engagement with key stakeholders risks
engagement programmes may fail to adequately business ethics could lead to reputational damage, misaligned expectations and strained relationships.
address local needs or strengthen community financial losses, and legal issues or proceedings. Poor communication of strategies, performance
resilience, potentially giving rise to social conflicts, metrics, and sustainability commitments can erode
protests, or opposition. Such outcomes can delay Mitigations investor confidence. Moreover, limited mechanisms
project approvals, disrupt production continuity, and Upholding our Code of Conduct across all operations, for stakeholder feedback may hinder continuous
undermine our reputation and social license to anchored on the principles of Ethics and Integrity. To improvement, heighten the risk of project opposition,
operate. mitigate risks of fraud, bribery, corruption, and ethical and expose the company to reputational challenges.
misconduct, we implement international best
Mitigations practices and compliance standards, including ISO Mitigations
Creating shared value through community 37001:2016 (Anti-Bribery Management System) and Effective engagement with stakeholders (including
development programmes that support local ISO 37002:2021 (Whistleblowing Management shareholders, regulators, investors, business
economic growth, education, healthcare, System). These are reinforced through regular audits, partners, suppliers, contractors, buyers, communities,
infrastructure, and environment strengthens our integrity compliance reviews, and ethics and civil society), facilitates continuity and identifies
social license to operate. In addition, building strong, programmes, ensuring continuous improvement and opportunities aligned with stakeholder expectations.
ongoing partnerships with communities facilitates alignment with applicable laws, regulations, and
smoother project development and enhances our stakeholder expectations.
reputation as a responsible and long term partner.
Responsible Procurement Stakeholder Pressure/
Human Rights
Practices Expectations
Sustainability Risks Sustainability Risks Sustainability Risks
Potential human rights risks across operations and Expecting our vendors to adopt best ESG practices Increasing scrutiny and changing expectations from
the supply chain, including unsafe working conditions, and uphold high ethical standards in compliance with our investors, customers and employees with respect
unfair labour practices, and impacts on local applicable regulations, however, their level of to ESG practices may impose additional costs on us
communities, may result in legal and reputational awareness and maturity in relation to ESG initiatives or expose us to new or additional risks.
consequences. and programmes varies across markets and
commodities. Especially in emerging markets, some Mitigations
Mitigations vendors have not yet reached the level of ESG Having a five-year Sustainability Roadmap, KPIs, and
Embedding robust human rights practices across our implementation that we expect. Targets for the implementation of sustainability
operations and supply chain strengthens our programmes and initiatives, including climate change.
reputation as a responsible operator while proactive Mitigations Conducting capability building activities of ESG risks
engagement with local communities builds trust and Implementing continuous vendor engagement to our workers. Integrating environmental, social, and
creates long-term social value. programmes through routine workshop and governance aspects across our operations and
socialisation as part of vendor capability building. projects. Closely monitoring the stakeholder
expectations within a dynamic market to ensure that
our sustainability practices align with the evolving
requirements of the disclosure framework.
Policy and Regulatory Environment Detailed description on IFRS S2 alignment is available in Chapter 6.
Our Tier-1 and Tier-2 material topics have been translated into 113
Sustainability Risks Tier-1 and 48 Tier-2 Sustainability Key Performance Indicators (KPIs)
Changes to policies and regulations could affect the viability of our oil, gas, power, and
renewable projects. Regulatory uncertainty, accelerated energy transition policies, and & Targets for 2025 as part of our 2023-2027 Sustainability Roadmap.
rising international reporting expectations require adaptive business models and robust This roadmap reflects MedcoEnergi’s sustainability objectives and
disclosures.
climate aspirations, shaped through internal stakeholders
Mitigations consultations with various functions, subsidiaries and the Board of
Maintaining compliance with Indonesian laws and regulations through coordination Directors. These KPIs serve as the basis for our action plans, which
with relevant central and local government authorities in relation to the operation of its
Indonesian assets, including the Ministry of Finance, Ministry of Energy and Mineral are detailed at the conclusion of each chapter in this Sustainability
Resources (MEMR), Ministry of Manpower, OJK, IDX, and SKK Migas. We also Report. By the year end, 97% of 2025 Tier 1 KPIs & Targets and
maintain compliance with applicable laws and regulations in other jurisdictions or
countries where we operate. In addition, we actively monitor new legislation and 92% of Tier 2 KPIs and Targets were achieved, with the remaining
staying updated by participating in various legal communities, seminars conducted by targets scheduled for completion in 2026.
the above stakeholders or other credible legal Institutions.
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36 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Driving Sustainability Performance
and Strategic Growth
Our Pathway to Sustainability
Recognising the rapid evolution of sustainability expectations and regulations, we structured our approach by establishing our first
Sustainability Roadmap for 2018-2022 following the 2018 Materiality Assessment and the second for 2023-2027 following the 2022 Double
Materiality Assessment. These roadmaps are supported by governance structures, policies, procedures, and by building organisational
capabilities to drive implementation.
Through operational excellence, we meet our MedcoEnergi Sustainability Roadmap 2023–2027
interim climate targets while delivering cleaner,
reliable energy to support Indonesia’s and the
• Further integrate sustainability into business to enhance value
region’s evolving needs. In the third year of our
creation
2023–2027 Sustainability Roadmap, we
• Reach Top Quartile ESG performer in the Oil & Gas Exploration
advanced key initiatives in 2025, making
measurable progress by reducing emissions 2027 and Production Sector in Southeast Asia
across our oil & gas operations from base year • Maintain or improve MSCI score of an A, and CDP Climate
2019 and expanding our renewable energy Change score of a B
portfolio. • Materiality assessment update for the next five-year roadmap
Our subsidiary, Medco E&P Indonesia, has
joined the Oil & Gas Methane Partnership • Internal carbon pricing and carbon trading: credits and offsets
(OGMP) 2.0 to enhance the measurement and
reporting of methane emissions. This initiative
2026 • Partnership programmes to promote data transparency and
implement best practices along the value chain
reflects our commitment to achieve net zero
emissions for Scope 1 and 2 by 2050, and
Scope 3 by 2060. • Reduce 20% of Oil & Gas Scope 1 & 2 GHG emissions
• Reduce 25% of methane emissions for our Oil & Gas business
Carbon Capture and Storage (CCS) is part of our
• Increase renewable energy installed capacity to 26%
climate change strategy in building our
commitment to net zero. MedcoEnergi’s Oil & • Disclose Scope 3 GHG emissions
Gas PSCs have the potential to provide CO2 2025 • Commit to upstream Carbon Capture and Storage (CCS) pilot
storage and management services for project
neighbouring high-CO2 gas fields. These PSCs
may serve as regional CO2 storage hubs for B AAA
Climate Change
CO2-intensive industries. ESG Rating
As part of our long-term sustainability
strategies, we issued a Just Transition Plan. We
• Develop a Just Transition Plan
provided capability-building to relevant functions
to ensure that our decarbonisation initiatives • Embed Climate Change Strategy in corporate business and
deliver environmental benefits and meaningful financial plans
social & economic value. • Enhance governance, systems, capability building for human
2024 rights
To further strengthen our transparency in
sustainability and climate aspects, we are B AA
aligning our disclosures with IFRS Sustainability Climate Change ESG Rating
Disclosure Standards (IFRS S1 and S2). We
conducted capacity-building programmes,
including double materiality assessment topics, • Update goals and KPIs based on the 2022 materiality
for relevant teams across MedcoEnergi and our assessments
subsidiaries to enhance our disclosure quality in • Enhance sustainability & climate change capabilities
line with international best practices. • Establish Human Rights Policy
2023 • Conduct a quantitative climate-related risk assessment
B A
Climate Change ESG Rating
Climate Change Strategy
Our climate change strategy demonstrates our commitment to increase energy supply by addressing climate related risks and further
developing sustainable energy.
We prioritise emission reductions and low-carbon energy transitions; building resilience against physical climate risks; and working towards
net-zero emissions. Clear initiatives and enablers support these strategies to achieve our long-term vision for sustainable growth.
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MedcoEnergi’s Climate Change Strategy
Vision Mission
To be the Energy Company of Choice for our investors, shareholders, To build long-term value with a portfolio of sustainable energy and
partners, employees and the communities where we operate natural resource business
Climate Aspiration
Achieve Net Zero for Scope 1 and Scope 2 GHG Emissions by 2050 and Net Zero for Scope 3 GHG Emissions by 2060
Strategy Focus Area Key Initiatives
• Reduce flaring, venting and fugitive emissions
Technologies & • Reduce energy use & intensity, adopt renewable energy sources
Best Practice • Collaborate along Supply and Value Chains to improve efficiency
and emissions disclosure
Managing Transition Risks
Emissions Carbon Removal • Carbon sequestration through nature-based solutions
Reduction & Offset • Explore CCS1 and CCUS2 opportunities
Growing Gas
• Expand natural gas production portfolio
as a Transition
• Evaluate opportunities to invest in LNG to Power
Energy Source
Growing • Expand renewable power portfolio
Transition to Low Renewables • Assess feasibility to adopt emerging renewable technologies
Carbon Energy Portfolio • Support initiatives for adoption of green solutions
• Assess quantitative financial impact of climate-related physical
Physical Climate Risks
Climate risks
Adaptation • Implement systems for regular monitoring of climate hazards
Managing
and their impacts
Emerging Physical • Continue physical risk and biodiversity assessments on new
Climate Risk Climate Design investments
Management • Integrate climate risk assessment into future engineering
designs
Enablers
Governance Data Management Transparency and Compliance Collaboration and
Engagement
• Board commitment and • Improve Emission Data • Continue third party
oversight Management System verification of emission • Engage with regulators and
• Integration into business • Improve Scope 3 GHG disclosures investors to monitor
plans and performance emissions collection • Strengthen TCFD3 disclosures emerging regulations and
management and calculation in and improve CDP4 and ESG trends
• Staff engagement alignment with scoring • Collaborate with stakeholders
and capacity building protocols and standards to drive the low carbon
economy
1 CCS: Carbon Capture & Storage.
2 CCUS : Carbon Capture Utilisation & Storage.
3 TCFD: Task Force on Climate Related Financial Disclosure.
4 CDP: Formerly the Carbon Disclosure Project. Website: www.cdp.net.
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38 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
ESG Performance by Rating and Index
Our ongoing commitment to long-term improvement is reflected in the recognition we have received. In March 2026, we were upgraded by
MSCI to an AAA rating, the highest possible rating in their ESG rating framework following its updated methodology. The upgrade from AA
to AAA reflects our continuous improvements in Biodiversity and Land Use, Waste Management, Community Relations, Health & Safety,
and Corporate Behaviour as we strive to embed sustainability into all aspects of our business. We also maintained our B rating from CDP for
our climate disclosure. In addition, MedcoEnergi was awarded Runner-up in Category 2 at the ASEAN Risk Champion Awards 2025, a
recognition for excellence in integrated risk management to address complex business challenges and opportunities. Since November 2022,
we have been admitted into the IDX LQ45 low‑carbon leader1 list and, more recently, by IDX KEHATI as an ESG Sector Leader2 in December
2024 and one of the listed ESG Quality 453 companies in December 2025.
AAA
AAA
As of 23 March 2026, AA
PT Medco Energi
Internasional Tbk A
A A
received an MSCI
ESG Rating of AAA. BBB
Nov-21 Dec-22 Nov-23 Nov-24 Mar-26
• MSCI ESG Rating4 provide an opinion of companies’ management of • Under MSCI’s updated methodology, MedcoEnergi’s rating has
financially relevant ESG risks and opportunities. Ratings are on a improved to AAA, placing the Company among the top 11% of the
global seven-band scale from AAA (the highest ESG Rating) to CCC MSCI Oil & Gas Exploration & Production universe.
(the lowest ESG Rating).
CDP Score Report - Climate Change
• CDP Climate Change assesses the quality of a company’s
2021* 2022 2023 2024 2025
MedcoEnergi’s environmental transparency and its actions to mitigate
CDP Score C B B B B
climate risks. Through a standardised scoring methodology,
companies are rated from A to D-.
Average Performance
Oil & Gas
Extraction & Production C C B C C
Asia B- C C C B • Our consistent B score in the CDP Climate Change
assessment underscores our position within the
Global Average B- C C C B ‘Management’ level, reflecting our ongoing commitment to
climate-related actions.
Leadership (A/A-) : Implementing current best practices * First time reporter, score not published
Management (B/B-) : Taking coordinated action on climate issues
Awareness (C/C-) : Knowledge of impacts on, and of, climate issues
Disclosure (D/D-) : Transparent about climate issues
Our selected sustainability data is assured by KAP PSS - EY, with the following year-on-year number of assured GRI Performance
Indicators:
Numbers of GRI
Indicators Assured
101 101
93 96
86
75
63
55
31
2017 2018 2019 2020 2021 2022 2023 2024 2025
1 IDX LQ45 Low Carbon Leaders is an index that aims to reduce the portfolio-weighted average carbon intensity by 50% compared to the LQ45 (parent index) and exclude coal production
companies while maintaining LQ45 index sectoral availability.
2 IDX KEHATI ESG Sector Leaders is an index containing stocks with an ESG performance assessment above their industrial average value.
3 IDX KEHATI ESG Quality 45 is an index that measures the stock price performance of 45 listed companies, selected by the KEHATI Foundation, that have good Environmental, Social, and
Good Corporate Governance (ESG) performance, as well as a high liquidity and good financial performance.
4 The use by PT Medco Energi Internasional Tbk of any MSCI Solutions LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do
not constitute a sponsorship, endorsement, recommendation, or promotion of PT Medco Energi Internasional Tbk by MSCI. MSCI services and data are the property of MSCI or its
information providers, and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.
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Sustainability Governance & Commitment to Human Rights
Sustainability Governance
We manage sustainability at the highest organisational level through while the ETWG advances our efforts to transit to low-carbon
integrated governance structures. The Sustainability and Risk energy by expanding natural gas and renewable energy portfolios.
Management Committee (SRMC), comprising of Commissioners Both working groups collaborate across organisational functions,
and Directors, serves as the highest governance body supporting align our sustainability and climate objectives, and report directly to
the Board of Commissioners in overseeing the company’s the BoD.
sustainability agenda, including climate change, energy transition,
and risk management. The SRMC issues directives, evaluates The BoD is responsible for integrating climate-related risks and
effectiveness, and recommends group‑level sustainability and opportunities into business strategies with support from key
enterprise risk management approaches for the Company and its organisational functions (see chart below). Weekly meetings,
subsidiaries. monthly and quarterly performance reviews, project gate reviews,
and SRMC meetings enable the BoD to address climate issues and
The Board of Directors (BoD) executes the sustainability agenda monitor goal progress. Each BoD member holds specific climate
with support from the Corporate Sustainability and Risk responsibilities:
Management (CSRM) division. The CSRM Head of Division reports
directly to the CEO, supports C-level executives, and collaborates • President Director: Leads climate-related stakeholder engagement
with Corporate Health Safety and Environment (HSE), Human • Chief Executive Officer: Oversees Climate Change Strategy
Resources (HR), Relations & Security (R&S), Audit & Integrity development, review, implementation, and corporate-wide
Compliance (A&IC), Supply Chain Management (SCM), and Digital climate risk management
Information Technology (DIT) to drive sustainability initiatives across • Chief Financial Officer: Manages financial planning, business
assets and business sectors. Functional teams report sustainability strategies, and investor relations to implement Climate Change
performance and risk registers to the BoD during Quarterly Strategy
Performance Reviews (QPR). The BoD subsequently updates the • Chief Operations Officer: Integrates climate considerations into
BoC at SRMC meetings. Oil & Gas operations and drives GHG reduction progress
• Chief Administrative Officer: Supervises corporate-level Climate
We established the Climate Change Working Group (CCWG) and
Change Strategy coordination and implementation
Energy Transition Working Group (ETWG) to strengthen how we
implement our climate change strategy. The CCWG focuses on the • Medco Power Indonesia Chief Executive Officer: Oversees Power
tasks to reduce GHG emissions and manage physical climate risks, subsidiary Climate Change Strategy development, review,
implementation, and climate risk management
This governance structure ensures accountability from board oversight through operational implementation, enabling effective management
of climate-related risks and opportunities.
Sustainability and ESG Governance Structure of MedcoEnergi
Board of
Commissioners
Sustainability & Risk
Management Committee
(SRMC)
Board of Directors
Climate Change Energy Transition
Working Group Working Group
GHG Emissions Reduction Physical Risks Management
Sub-Working Group Sub-Working Group Low Carbon-Energy Transition Sub-Working Group
Chief Financial Officer (CFO) Chief Operating Officer (COO) Chief Administrative Officer (CAO) Chief Executive Officer (CEO)
CF, CPIA, & IR CHSE, TA, & PDEE HR, R&S, DIT, & SCM CSRM & A&IC
Oil & Gas Pre-dev/Projects, Wells, Explorations, Assets Power Pre-dev/Projects, Drilling, Explorations, Assets
Human Resources Relations & Security Health Safety & Human Resources Business Development & Sustainability
Environment
Supply Chain Sustainability Supply Chain Health Safety & Environment,
Management Development Division Management Social & Security
Reporting Line Notes:
CF : Corporate Finance HR : Human Resources
Coordination Line CPIA : Corporate Planning & Investment Appraisal R&S : Relations & Security
IR : Investor Relations DIT : Digital Information Technology
Corporate CHSE : Corporate Health, Safety & Environment SCM : Supply Chain Management
Committee and Working Groups as part of TA : Technical Assurance CSRM : Corporate Sustainability & Risk Management
sustainability and climate change governance PDEE : Project Development and Engineering Excellence A&IC : Audit & Integrity Compliance
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40 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Our Commitment to Human Rights
Our commitment to respect human rights is embedded across our Our commitment starts with fostering a culture that values diversity
business activities and reflected in our Code of Conduct, Code of and inclusion. We are committed to providing a workplace where all
Supplier, Sustainability Policy, Security Policy, Community employees are treated fairly and without bias. Staffing decisions,
Development Policy and Human Rights Policy. This commitment is including hiring, evaluating, promoting, and transferring are solely
supported by established grievance and whistleblowing based on skills, competencies, and performance, regardless of
mechanisms that provide accessible channels to raise and address ethnicity, race, skin colour, religion, gender, age, marital status, or
human rights–related concerns. nationality. We foster a diverse and inclusive workplace, provide
equal opportunities, and prevent discrimination through our
MedcoEnergi has adopted a standalone Human Rights Policy that Preventive Compliance Programmes, which include an Ethics
consolidates the Company’s human rights commitments into a Ambassador Campaign, New Hire Business Ethics Inductions, and
single corporate framework. The policy builds on existing practices Business Ethics for Contractor personnel. Throughout 2025, no
and international best practices and provides clear guidance to discrimination incidents were recorded through our whistleblowing
implement them across all operations and business relationships. channels.
Our Human Rights Policy underlines our commitment to respect To ensure our human right principles are upheld throughout our
international standards (UDHR, ILO, UNGPs, VPSHR) to ensure legal value chain, we continue to strengthen internal awareness and
compliance through comprehensive risk management and due capability through human rights familiarisation and training
diligence. It prioritises the protection of fundamental rights, including programmes across assets and relevant functions. Human rights
fair working conditions and zero tolerance for modern slavery, considerations are also integrated into supplier and contractor
bullying, harassment or discrimination, by taking into account management through contractual requirements, reinforcing
vulnerable groups and partner accountability. This commitment is expectations for responsible business conduct throughout the value
supplemented by accessible grievance mechanisms and robust chain.
governance overseen by the Corporate Ethics and Compliance
Committee, Sustainability and Risk Management Committee, and The timeline below highlights key milestones to develop and
relevant function teams to ensure human rights are upheld implement the Company’s human rights approaches.
throughout the business. The Company’s Human Rights Policy is
publicly available here.
2022 Assessment 2023 Policy & Training 2024 Expansion & Integration 2025 Capability Strengthening
• Completed the corporate Human • Developed Human Rights Policy • Launched standalone Human Rights • Conducted series of familiarisation
Rights Assessment with Business • Conducted VPSHR training for Policy sessions for employees and vendor
for Social Responsibility selected participants from • Initiated communication of the policy companies
• Identified human rights risks MedcoEnergi and its subsidiary to the assets and business partners • Launched E-learning platform using
exposures, in-place mitigations • Conducted HRIA for Block A and • Implemented new vendor contract comic flipbook to Corporate and major
and systems, and room for Senoro (JOB Tomori) template incorporating standalone Oil & Gas assets
improvements; providing the basis Human Rights Policy and
of developing the standalone Sustainability Policy
Human Rights policy
• Developed e-learning platform and
comic book in four languages as a
capacity building tool for
employeesfor Block A and Senoro
(JOB Tomori)
In 2025, we launched a Human Rights Campaign programme to Principles on Business and Human Rights (UNGPs). These
increase awareness and understanding among employees and assessments systematically identify, analyse, and evaluate potential
contractors of our Human Rights Policies and basic human rights human rights risks based on their severity and likelihood. Identified
aligned with the UN’s Guiding Principles. Through this programme, risks are managed through integration into Environmental and Social
we have conducted 15 familiarisation sessions, reaching 1,611 Action Plans (ESAPs), with mitigation measures monitored as part of
employees (49% of our permanent and direct contract workforce) our routine asset management processes.
and 196 vendor companies (40% of our active contracts). We also
developed and launched an interactive e-learning platform with Following our HRIA in 2024 for Block A, we issued a Respectful
comic flipbooks in English, Bahasa Indonesia, Thai, and Arabic. This Workplace Policy in March 2025 as our commitment to promote a
e-learning platform has certified 2,600 (53%) employees across our safe and inclusive working environment. While we continued to
Oil & Gas (Corridor, Onshore and Bualuang), Corporate and Power provide capability building to all employees on our Human Rights
assets. Policy, we also introduced the Respectful Workplace Policy in our
2025 training agenda. In addition, we provided training for specific
Based on employee feedback on the e-learning programme, the participants to implement this policy. We also conducted the Medco
comic-based learning materials were well received. Training Leadership Awareness for the senior managers to further reinforce
activities contributed to increased awareness and understanding of the leadership roles to support our Respectful Workplace Policy. We
human rights in the workplace. Employees also expressed the need held a Training for Facilitators to include topics of harassment and
for reinforcement, deeper case examples, and more interactive first aid.
learning formats. In the future, we aim to further empower asset
leaders and employees to implement our strategies. As part of our commitment to advance and embed human rights
practices across our operations, we participated in the Business &
To ensure these human rights practices are implemented at the Human Rights Accelerator programme, conducted by the UN Global
asset level, we conduct human rights due diligence through the Compact in collaboration with Shift1. This six-month programme
Human Rights Impact Assessments (HRIAs), which are in line with supports companies to translate human rights commitments into
the Equator Principles and guided by the United Nations Guiding practical actions and management systems.
1 Shift is an independent, non-profit centre for business and human rights practice, renowned as the leading centre of expertise on the UN Guiding Principles on Business and Human
Rights (UNGPs). Founded by members of the team that helped draft the UNGPs, Shift works to help governments, businesses, and their stakeholders put these principles into practice.
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Managing Sustainability Risks
and Opportunities
Sustainability Assessment
MedcoEnergi manages internal challenges and stakeholder improved evaluation criteria, and more strongly align with emerging
expectations through sustainability assessment, which evaluate sustainability and climate-related expectations.
environmental and social risks across project and operational stages.
These assessments surpass compliance requirements to prevent, To ensure effective implementation of the updated guidelines, we
mitigate, and manage risks in alignment with IFC Performance conducted Sustainability Assessment training sessions, which
Standards. We established our Sustainability Assessment targeted reviewers from cross-functions, particularly those related to
Guidelines© in January 2021, receiving copyright protection from environmental management, social performance, and labour
Indonesia’s Ministry of Law and Human Rights in March 2024. management. This initiative aimed to enhance reviewers’
understanding of the revised assessment criteria and strengthen
We updated our Sustainability Assessment in 2024 by strengthening internal capacity to evaluate project readiness to mitigate
the assessment framework through enhanced consideration of environmental and social impacts and risks. Through this training, 21
climate change–related indicators. Although these indicators had reviewers from various functions have been prepared to implement
been incorporated within the existing Sustainability Assessment the Sustainability Assessment as part of the MPEP Gate Review
framework, the updated guidelines provide clearer parameters, process.
Climate-Related Risk Management
We integrate climate-related risks across Enterprise Risk Universe. This integration ensures comprehensive risk assessment, adaptation, and
mitigation strategies are embedded into all business activities. We further incorporate climate considerations into our Corporate Business,
Financial Planning and Asset Management processes, ensuring climate-related risks and opportunities are systematically addressed in
decision-making.
Risk Universe of MedcoEnergi
Physical Risks
Acute Physical Risk
People &
Financial
Organisation
Extreme
Cyclone Inland Flood Wildfires
Climate Related Risks
Rainfall
Operation Chronic Physical Risks
Strategic
Rising Sea Extreme Water
Droughts Scarcity
Levels Heat
IT & Business Social &
Support Community Transition Risks & Opportunities
Regulatory HSE &
& Legal Security Policy & Energy
Technology Market Reputation
Legal Source
In addition, we continue to monitor the integration of nature-related Change Risk Assessment (CCRA). More detailed information can be
disclosures1 into ISSB standards, building on the internal gap found in Chapter 6 and 7.
assessment and benchmarking conducted in 2024. Our ongoing risk
assessment processes provide relevant inputs to enhance Our focus remains on strengthening foundational infrastructure and
understanding of nature-related considerations, including aspects data to support our risk management practices while remaining
related to water availability and stress assessed through our Climate prepared to adapt to evolving frameworks and future regulatory or
stakeholder expectations.
1 Aligned with current positioning of Task Force on Nature-related Financial Disclosures (TNFD) being integrated into International Sustainability Standars Board (ISSB)’s work under
International Financial Reporting Standards (IFRS).
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42 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Stakeholder Engagement and Collaboration
Engaging Our Stakeholders
Stakeholder engagement drives our sustainability programme • Energy Asia: Contributed to a thought leadership panel on
development through diverse consultation channels that capture decarbonising hard to abate sectors, focusing on practical
priorities and insights. These inputs strengthen both our initiatives transition approaches, regional challenges and solutions.
and social license to operate. Transparent dialogue builds • Singapore International Energy Week (SIEW): Shared insights
relationships that create stakeholder value and advance the nation’s on balancing ambition with operational practicality, highlighting
sustainable progress. the importance of innovation and cross-border collaboration to
support long-term energy security and sustainability across the
In 2025, we contributed to dialogue on sustainable energy,
region.
investment, governance and risk management through participation
• ASEAN Centre for Energy events: Contributed to discussions on
in these key high level forums and summits:
unlocking energy transition finance to support inclusivity and
• Advantage Oman Forum (AOF): Engaged as a speaker alongside sustainability in ASEAN.
Oman’s Minister of Energy and Minerals, the Head of Oman’s • Barclays’ ESG Emerging Market Corporate Days: Shared
Environmental Authority and the European Union Special insights on energy security, ESG trends, transition finance, and
Representative for the Gulf to discuss advancing sustainable inclusive and sustainable growth in developing markets.
energy development and investment in Oman. • 2025 GRC International Summit and International Risk Beyond
• Oman Petroleum & Energy Show and Oman Sustainability Conference: Discussed strengthening governance frameworks,
Week: Participated as speakers and delegates in high level enhancing risk management, and mitigating ESG related risks to
discussions with global energy leaders, emphasising industry support business resilience.
wide collaboration on renewables, gas to power and
electrification, and exchanging perspectives on value creation
through sustainability.
The following table lists MedcoEnergi’s stakeholder groups and the engagement and support we provide:
Our Employees Government & Regulators
Why engagement matters
Why engagement matters
Workforce engagement is crucial to maintain operational excellence and a strong
It ensures regulatory compliance and contributes to policy development.
company culture.
Key areas of mutual interest How we engage Key areas of mutual interest How we engage
• Employment terms and benefits • Regular engagements with worker unions • Environmental compliance • Regular consultations on environmental and social
• Worker rights and representation representatives on a quarterly basis. • Climate change adaptations impacts.
• Professional development • Continuous forums to resolve matters related to • Industry regulations • Participation in government initiatives and dialogues.
employee relations and employment benefits, • Engagement in SDG forums and other sustainability
• Workplace safety and wellbeing • Community development
terms, and conditions. forums.
• Input provision for climate change and environmental
regulations.
Vendors and Business Partners Banks and Investors
Why engagement matters Why engagement matters
It builds sustainable and responsible supply chain relationships. It secures financial support for sustainable operations and growth.
Key areas of mutual interest How we engage Key areas of mutual interest How we engage
• Corporate governance • Regular familiarisation of our Corporate Governance • ESG performance • Sustainability reports
• Sustainability initiatives Manual, Corporate Values, Code of Conduct, Code of • Project financing • Submission of lenders’ regular monitoring reports
Supplier and Initiatives in Sustainability
• Code of Conduct compliance • Risk management • Publications of quarterly investor updates in our
and MedcoEnergi’s Code of • Regular quarterly/monthly meetings for business updates website
• Sustainability initiatives
Suppliers from Medco Energi to our partners as well as during the
• Roadshows on sustainability/ESG themes
annual Vendor Day and Contractor Forum, held for our
• Operational efficiency • Equator Principal (EP4) compliance collaboration and
partners in oil and gas and power subsidiaries.
lenders monitoring
• Equator Principal (EP4) compliance collaboration and
lenders monitoring
Media Shareholders
Why engagement matters
Why engagement matters
It maintains transparency and trust with shareholders who support the
It maintains transparent communication with the public.
Company’s growth.
Key areas of mutual interest How we engage Key areas of mutual interest How we engage
• Corporate updates • Engage the media and hold press conferences at • Corporate performance • General meetings to present annual results.
• Industry developments the local and regional levels. • Material decisions • Regular meetings between management and
• Public awareness • Conduct awareness and competency training for • Corporate governance investors.
journalists in the oil and gas industry. • Corporate updates and disclosures.
• Accurate reporting • Risk management
Consumers Local Communities
Why engagement matters Why engagement matters
It delivers value while promoting sustainable practices. It maintains our social license to operate and create shared value.
Key areas of mutual interest How we engage Key areas of mutual interest How we engage
• Service reliability • Support government objectives of natural gas use • Community development • Facilitate and implement stakeholder engagements and
• Oil and natural gas use for Indonesia and Singapore. • Environmental protection community development plans.
• Product accessibility • Develop supply chain with local enterprises • Youth engagement • Familiarise them with our grievance mechanisms in our
• Collaborate with state-owned electricity company. Social Management System (SMS)
• Environmental impacts • Grievance resolutions
• Engage youth in programmes that focus on cultivating a
culture of integrity and awareness about anti-corruption
measures.
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Academia Non Governmental Organisation (NGO)
Why engagement matters Why engagement matters
It advances research and industry knowledge. It ensures environmental, social and governance responsibility.
Key areas of mutual interest How we engage Key areas of mutual interest How we engage
• Research collaboration • Collaborate with universities to provide access to • Community empowerment • Cooperate with and collaborate on government
• Knowledge sharing cutting-edge research and expertise. • Environmental protection initiatives to empower local communities, support our
• Initiate capacity building programmes. workforce and mitigate adverse environmental and
• Capacity building • Social development
social impacts.
• Industry expertise • Conduct knowledge sharing sessions. • Stakeholder feedback
• Maintain communication to gather their feedback.
MedcoEnergi’s Memberships
We engage with industry associations to collaborate and expand our influence in the energy sector.
Country Name of Association Position
Indonesia Association of Indonesian Oil and Gas Industry Remuneration Member
Practitioners (APRIMI)
Indonesia Carbon Capture and Storage Center (ICCSC) Member
Indonesia Corporate Secretary Association (ICSA) Member
Hydropower Plant Developers Association (APPLTA) Member
Indonesia Business Council for Sustainable Development (IBCSD) Co-founder and Member
Indonesian Employers Association (APINDO) Member
Indonesian Chamber of Commerce and Industry (KADIN) Member
Indonesian Electrical Power Society (MKI) Member
Indonesian Environmental Impact Assessment Forum (FAI) Chairman
Indonesian Geothermal Association (INAGA) Member
Indonesian Petroleum Association (IPA) Board of Directors and Member
IPA – Environmental and Safety Committee Member
IPA – Energy Transition Committee Member
Indonesian Independent Power Producers Association (APLSI) Chairman and Member
Indonesian Renewable Energy Society (METI) Board of Supervisors
International Society of Sustainability Professionals (ISSP) Member
The Climate Reality Project Indonesia Member
United Nations Global Compact (UNGC) Member
Indonesia Global Compact Network (IGCN) Business Ethics Member
Governance Working Group (BEGWG)
Thailand Oil Industry Environmental Safety Group Association (IESG) Member
Petroleum and Energy Institute of Thailand (PEIT) Member
Society of Petroleum Engineers (SPE) Member
Oman Oman Chamber of Commerce and Industry (OCCI) Member
Oman Society for Petroleum Services (OPAL) Member
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44 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Pursuing
Excellence in
Governance
This picture is the 1st winner under the ‘Governance’ category of the MedcoEnergi 2025 Photography Competition
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Advancing Creating Strengthening Our PT Medco Energi Internasional Tbk
Our Health and Opportunities People and Digital 2025 Sustainability Report
Safety Culture for Communities Transformation Value. Focus. Growth. 45
46 Approaches, Commitments, and
Goals
47 Good Corporate Governance
(GCG) Structure
48 Risk Management
48 Corporate Governance Assurance
Framework, Programmes and
Policies
56 Anti-Corruption Collective Actions
57 Supply Chain Management
58 Alignment of Sustainability
Initiativeswith the UN SDGs
59 Action Plans
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Messages from Our Year in About Approach to Excellence Future through Environmental and
46 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
MedcoEnergi maintains high standards of ethical governance, embedding compliance, integrity, and transparency into every aspect of our
operations. We are committed to fostering trust and accountability across our business ecosystem to create value for all stakeholders.
Approaches, Commitments, and Goals
We implement Good Corporate Governance Relationship Between GCG and Our Code
(GCG) and our Code of Conduct (Our Code) at
MedcoEnergi and all of its subsidiaries. As
illustrated in the figure below, GCG provides
Vision,
the framework for how the organisation is
Mission and
governed, while Our Code guides employee
conduct and the way the Company’s Corporate
business is carried out. Together, they form a Values
unified framework, referred to as the Good
Code of
Corporate
Corporate Governance Assurance Conduct
Governancee
Framework, which supports compliance with (Our Code)
(GCG)
applicable laws, regulations, and international
standards.
Our commitment extends beyond internal
Manage Manage
operations. We engage partners to Organisation Employee
strengthen transparency and governance Business Business
across the supply chain, reinforcing ethics as Conduct Conduct
a shared responsibility. See more details in
the Supply Chain Management section. Business
Ethics and
Find more information about Good Corporate Work Ethics
Governance here.
Good Corporate Governance MedcoEnergi’s Good Corporate Governance Principles
Principles
We embed the principles of transparency,
accountability, responsibility, independence, 01 02
and fairness within our Good Corporate Transparency
Governance (GCG) framework, forming a Accountability
The Company must
The Company must be
strong foundation for ethical business provide material and
managed in accordance
relevant information by
conduct. These principles guide the Board ways that are easy for with the interests of the
of Commissioners (BoC) and the Board of stakeholders to company, shareholders,
access and to and stakeholders.
Directors (BoD) in exercising responsible understand.
leadership and sound decision-making.
Details of implementation are outlined in
MedcoEnergi’s GCG Implementation
Guidelines here. In addition, the MedcoEnergi’s
implementation of GCG is further described Good Corporate
in MedcoEnergi’s 2025 Annual Report.
Governance 03
05 Principles Responsibility
Fairness The Company must
The Company must be comply with all relevant
managed in accordance laws and regulations, and
MedcoEnergi Code of Conduct with the principles of perform responsibly with
regards to community
fairness and equality.
and environment.
We are committed to upholding the highest
ethical standards across all operations. Our 04
tagline, “Know the Code, Know the
Independence
Commitment,” reflects our dedication to
The company must be
integrity and the principles set out in our Code managed independently.
of Conduct. The Code defines the standards, It must avoid domination by
any one function over any
duties, and responsibilities expected of all of the others or
personnel, covering key areas such as human interventions from
rights, anti-corruption, data privacy, and other parties.
anti-money laundering, in line with global best
practices.
We expect all stakeholders to comply with the Code consistently wherever they operate. To support continued relevance and effective
implementation, we regularly review and strengthen Our Code. In 2025, MedcoEnergi conducted the Code of Conduct benchmarking and
enhancement initiative. This resulted in the enhancement of eleven (11) existing areas of the Code and introduction of four (4) new topics.
Further details on the outcomes of this initiative are described in the MedcoEnergi 2025 Annual Report.
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Safety Culture for Communities Transformation Value. Focus. Growth. 47
Code of Supplier Public Policy
We view our suppliers as vital partners to achieve strong corporate MedcoEnergi maintains a neutral stance on political matters and
governance and sustainable success. In 2022, we introduced the does not contribute or donate to any political party or affiliated
Code of Supplier to set clear expectations and standards for our organisation in any of our operating locations. We fully respect
suppliers, addressing legal and compliance risks while providing a employees’ rights to participate in political processes and support
framework for proactive business impact management. This their preferred parties or candidates. However, any political
initiative encourages partners to adopt ethical, responsible, and involvement, including party membership or election campaigning,
forward-looking practices. The Code of Supplier is available here. must comply with company policies and regulations. Prior to each
The Code of Supplier is part of our initiative to enhance the Code. election, employees are provided with internal communications
outlining our position on donations and contributions.
Good Corporate Governance (GCG) Structure
MedcoEnergi’s GCG framework defines the
governance and oversight responsibilities of
the Board of Commissioners (BoC) and
Board of Directors (BoD). The structure Shareholders
ensures a clear separation of duties: the
BoC provides oversight and strategic
guidance, while the BoD is responsible for
operational execution and decision-making. Board of
Both boards play a key role in promoting Commissioners
accountability, including integrating
sustainability and climate considerations
into business practices. The Sustainability
and Risk Management Committee (SRMC)
Sustainability
and Corporate Sustainability and Risk & Risk Audit
Management (CSRM) further support these Management Committee
Accountability
efforts as outlined in Chapter 4. Committee
Delegation
Board of Commissioners Nomination &
GCG
(BoC) Remuneration
Committee
Committee
The Board of Commissioners (BoC)
oversees the Board of Directors (BoD),
ensuring that GCG principles are
consistently applied across the organisation.
BoC members’ duties and responsibilities
are detailed in MedcoEnergi 2025 Annual Board of Directors
Report.The BoC is supported in its role by
the Audit Committee, Nomination and
Remuneration Committee, Sustainability &
Risk Management Committee (SRMC), and
GCG Committee.
Sustainability-linked Remunerations
Board of Directors (BoD) MedcoEnergi aligns its Board of Directors (BoD) and executive remunerations with
sustainability performance to strengthen ESG accountability. The Nomination &
MedcoEnergi’s Board of Directors (BoD)
Remuneration Committee reviews annual sustainability outcomes, roles, and industry best
plays a key role in aligning the Company’s
practices, and submits remuneration proposals to the Board of Commissioners for
strategic direction with the interests of its
shareholders to approve at the Annual General Meeting (AGM).
shareholders. The roles and
responsibilities of each BoD member are Our performance-based compensation programmes are linked to sustainability and climate
outlined in the Annual Report. action performance; this includes reducing GHG and methane emissions and increasing
installed renewable capacities. Each year, Team Performance Contracts (TPCs) and
Individual Performance Contracts (IPCs) are established for all levels, from executive
Corporate Ethics and leadership to individual employees. TPCs cover five dimensions: HSE & Sustainability,
Compliance Committee Availability & Production, Growth, Operational Excellence, and Financial. Moreover,
(CECC)1 climate-related KPIs make up the majority of the HSE & Sustainability dimensions and are
monitored quarterly.
The Corporate Ethics and Compliance
Committee (CECC), established in October In 2025, 20% of all the board-level monetary incentives were linked to the HSE &
2024, ensures fair, objective, and Sustainability dimensions, which includes climate-related targets such as emission
transparent handling of allegations reported reductions and renewable energy milestones. This linkage ensures that executive
through whistleblowing channels. Detailed performance is directly aligned with MedcoEnergi’s sustainability objectives. Performance
information on the CECC can be found in results are reviewed annually to assess target achievements and determine appropriate
the MedcoEnergi 2025 Annual Report. incentives, including salary adjustments.
1 The CECC reports to BoD to strengthen ethics and compliance, but it is not part of the GCG structure.
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48 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Risk Management
At MedcoEnergi, we implement an Enterprise Risk Management (ERM) framework to identify, assess, and mitigate risks that could affect
operations and long-term sustainability. Aligned with ISO 31000:2018, this ERM framework forms a key part of our Sustainability Framework,
providing a structured, proactive approach by identifying risks, assessing, monitoring, and reporting across all business functions.
This framework addresses a wide range of risks, including those involving business partners, and spans strategic, operational, financial,
regulatory, social, and community dimensions. Integrating ERM into corporate governance enhances resilience, transparency, and
accountability in decision-making.
As a recognition of these efforts, MedcoEnergi was named Runner-up in Category 21 of the 2025 ASEAN Risk Champion Awards, organised
by ERMA, a Singapore-based global learning centre for enterprise risk management professionals. The award was presented in Kuala
Lumpur, Malaysia, and recognises organisations that demonstrate strong enterprise risk management capabilities and the ability to effectively
navigate complex challenges and opportunities in an evolving business environment.
Risk Governance Structure
l
ve
• Issues directives to align risk management to the
le
overall company strategy,
ic
g
SRMC *
te
• Review key risks escalated by the BoD.
ra
St
l
ve
• Ensure and oversee implementation and
Board of Directors
le
effectiveness of RM processes.
al
tic
(BoD) • Review all key risks at a periodic interval
c
Ta
el
ev
Head - ERM Function • Implement risk management processes
ll
na
• Update the BoD on risks through reports
io
Functional & Asset Head | Subsidiary Directors Function |
at
• Track risk indicators
er
Subsidiary Risk Champions | Risk Owners
Op
*
Sustainability and Risk Management Committee (SRMC)
Corporate Governance Assurance Framework,
Programmes and Policies
The Corporate Governance Assurance Framework embodies the
Board’s commitment to Good Corporate Governance and
nt
me
compliance with Our Code. This framework rests on six core pillars:
corporate values and the code of conduct, prevention, detection,
ve
ro
Corporate
response, monitoring and evaluation, and continuous improvement. Values and
Together, these pillars form a robust governance system that
p
Our Code
s Im
ensures accountability, transparency, and compliance across all
operations.
uou
Contin
Prevention
Monitoring &
Evaluation
Response Detection
1 Category 2 of the ASEAN Risk Awards refers to larger organisations, generally those with sales turnover over USD 75 million or more than 200 employees.
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Corporate Values and Our Code
The Code of Conduct (Our Code) is grounded in MedcoEnergi’s Corporate Values: professional, ethical, open, and innovative. Further
information on the Company’s Corporate Values is available in Our Code.
Our Corporate Values and Code are translated into programmes in alignment with recognised global standards on ethics and compliance.
This ensures that they are implemented consistently when engaging all stakeholders across MedcoEnergi’s operations.
International Compliance Programme
MedcoEnergi’s International Compliance Programme upholds globally recognized anti corruption, anti bribery, and ethical standards across all
operations and business partners. The programme is designed to systematically prevent, detect, and address bribery and fraud worldwide
through ISO 37001:2016 certification, risk based audits, robust due diligence processes, comprehensive ethics training, strengthened
whistleblowing mechanisms, and the integration of compliance into corporate governance.
Our operations involve port activities connected to international shipping lanes and trading with international business partners. To address
the associated marine‑related and security risks, we implement the International Ship and Port Facility Security (ISPS) Code compliance
programme. Every year, we conduct annual audits at special terminals in Corridor, South Natuna Sea Block B and JOB Tomori to strengthen
port security measures.
The table below outlines our international compliance programmes with sanctions and anti-money laundering. We also conduct due diligence
that covers our international operations, as presented in the Third Party Risk Management Programme section on page 53.
International Compliance Programmes
Corporate Sanctions Compliance Anti-Money Laundering (AML)
Since its launch in 2021, MedcoEnergi has continually
In March 2024, MedcoEnergi formalised its Anti-Money
strengthened its Corporate Sanctions Compliance Policy and
Laundering (AML) Policy, reinforcing its commitment to mitigate
programme, which supports compliance with international
money laundering risks in collaboration with business partners.
sanctions requirements. This programme includes sanctions
This issuance further strengthens our Code in compliance and
awareness sessions and risk assessments across all divisions to
preventative measures.
help identify and manage sanctions-related risks.
2025
MedcoEnergi held AML workshops for relevant business units
MedcoEnergi conducted Corporate Sanctions Compliance and leadership to strengthen understanding of anti-money
Workshops for relevant business units and leadership. These laundering obligations and practical compliance skills. The
sessions focused on improving understanding of sanctions sessions covered key AML principles, relevant legal
requirements, identifying and assessing related risks, and requirements, and the Company’s internal policies, including
strengthening practical approaches to compliance in daily country risk considerations, customer and business partner
operations. identification processes, due diligence practices, and approaches
to identify and monitor potential money laundering risks.
2024
Due diligence sanctions and recommendations. AML policy dissemination and leadership workshops.
2023
AML policy development, training, symposium participation, and
Marine sanctions prioritisation and risk assessment workshops.
legal counsel engagement.
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50 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Prevention
Prevention includes promoting ethical business practices through sound governance, anti-corruption measures, and efforts to discourage
unethical behaviour.
Ethics Ambassador Programme: A commitment to Integrity and Sustainability
MedcoEnergi fosters integrity and sustainability through the Ethics Liaison Officer (ELO) and Compliance Champion (CC) programmes,
engaging line management to strengthen compliance. ELOs serve as champions of MedcoEnergi’s values, ensuring ethical standards are
upheld across all levels of the organisation. The Ethics Ambassador Programme empowers employees to embrace these principles,
reinforcing our zero-tolerance stance on corruption and bribery.Through training, workshops and coaching clinics, ambassadors promote
ethical decision-making and open dialogue. Senior management selects and approves ELOs, demonstrating our commitment to a strong
ethical culture.
Items Oil & Gas Power
Programme Title Ethics Liaison Officers (ELO) Programme Compliance Champion (CC) Programme
Number of Personnel in 2025 90 28
Roles and Responsibilities of Facilitate ethics discussions and support company- Share ethics and compliance issues; ensure
Personnel wide ethics campaigns by sharing relevant anti-bribery measures are implemented according
materials. to ISO 37001:2016; report progress to
management.
Participation in the Ethics Ambassador Programme as of 2025 is shown below:
Asset 2023 2024 2025
Oil & Gas - Corporate and Indonesia 2,036 1,763 1,848
Oil & Gas - International 38 41 8
Power 359 1,329 360
Total Number of Participants 2,433 3,133 2,216
Communication and Education Initiatives
We prioritise ethics and compliance education to foster integrity and
strengthen employees’ commitment to ethical conduct, thereby
reducing non-compliance risks.
In 2025, key initiatives included several compliance sessions for
employees that covered personal data protection, ethics, respectful
workplace, and unlicensed software. Partnerships with key internal
functions also reinforced for new hires and leaders both the Human
Rights and Respectful Workplace Policy, together with ongoing Field Compliance Socialisation session in Corridor,
business ethics training. South Sumatra, Indonesia
Annual Statement of Adherence (SOA) and Conflict of Interest (COI) Declarations
MedcoEnergi requires all employees to 2025 Submissions1:
submit Statements of Adherence (SoA) and • SoA2: 2,424 (Medco Oil & Gas employees) and 1,037 (Medco Power employees). A total
Conflict of Interest (CoI) declarations 6,185 employees and contract service workers were recorded.
annually to ensure the organisation remains
• CSEC: 491 submissions from Medco Oil & Gas vendors and 82 from Medco Power
transparent and accountable. These
vendors.
submissions are reviewed each year to
• CoI: 5,389 (Medco Oil & Gas employee and other subsidiaries) and 862 (Medco Power
reinforce compliance. In 2025, we also
employees). A total of 4,114 contract service workers across Indonesian assets.
required that the Contractors’ Statement of
Ethical Compliance (CSEC) and CoI
declarations be completed to ensure that
These initiatives continually strengthen ethical awareness, mitigate risks, and reinforce a
vendors’ top management remain
culture of compliance across all levels of the organisation.
committed.
1 The total count of SoA and CoI submissions includes permanent employees, direct contract employees, and third-party contractors.
2 The assured numbers are only applied to the number of SoA submission (GRI 205-2) for permanent employees.
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Detection
MedcoEnergi implements a fraud detection programme to identify anomalies in financial activities, employee conduct, asset management,
and third party interactions that may signal fraudulent behaviour. The programme applies data analytics, transaction monitoring, and
structured oversight, supported by systems for reporting Code of Conduct violations and ensuring accountability. Since 2024, the Integrated
Audit Management System has been streamlined to enhance audit planning, execution, monitoring, and reporting.
MedcoEnergi Internal Ethics Hotline
In 2025, the majority of inquiries received through MedcoEnergi’s internal ethics hotline related to conflicts of interest (CoI), particularly those
involving the giving and receiving of meals and entertainment, payments to government officials, and guidance on ethical leadership
obligations.
A decline in hotline inquiries was observed in both 2024 and 2025 compared with 2023, reflecting the effectiveness of enhanced
communication, awareness, and training initiatives. Expanded classroom based engagements including field compliance sessions, due
diligence workshops, and fraud risk assessments enabled more direct interaction with employees. These initiatives strengthened
understanding of ethical requirements and decision making, reducing reliance on hotline inquiries for routine guidance while reinforcing
proactive compliance behaviour.
Internal Ethics Hotline
Office Visit: The Energy Building - Audit & Integrity Compliance Division, 21st Floor,
SCBD Lot 11A, Jl. Jendral Sudirman Kav 52-53, Jakarta 12190
Hotline Email: EthicsHotline@medcoenergi.com Ethics Hotline : 021-29954443
Fraud Risk Assessment (FRA) Workshops
Fraud Risk Assessments (FRA) are crucial for identifying potential
fraud risks and require specialised expertise for effective execution.
To reinforce anti-fraud measures, we conduct FRA workshops that
equip employees with the skills to detect and mitigate fraud within
their areas of responsibility.
In December 2025, MedcoEnergi conducted a Fraud Risk
Management (FRM) workshop to strengthen its capacity to assess
and manage corruption and fraud risks, in alignment with GRI 205
requirements and broader fraud risk management practices. The
workshop covered key topics including country specific risk
considerations, GRI disclosure expectations, fraud risk awareness,
and the development and application of FRM frameworks and tools.
The session also incorporated practical business case discussions
and lessons learned relating to fraud risks in Finance and
Procurement, as well as associated disclosures. These discussions Group discussions during an FRM Workshop
enabled participants to better contextualize fraud risks and
mitigation strategies within day to day operational activities and
sustainability reporting processes.
MedcoEnergi Fraud Risk Assessment
As illustrated in the figures, participation in the Fraud Risk Workshop Participants
Management (FRM) Workshop decreased compared with previous
years. This reduction was primarily due to the cancellation of the 100 95
session planned for Oil and Gas asset participants in Block A, 85
following severe flooding in Sumatra in November. In addition, most 80
relevant corporate functions had already been covered through FRM
workshops conducted in 2023 and 2024. Consequently, the 2025
60
session was focused on the remaining target participants, with a 47
total of eight employees in attendance.
40
25
20
20
8
0
2023 2024 2025
Corporate Oil and Gas Power
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52 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Internal Audits
MedcoEnergi conducts regular risk-based internal audits across all operations, providing independent assurance to the Board of Directors,
corporate divisions, and business units while evaluating operational efficiency and effectiveness.
Annual audits of the Anti-Bribery Management System (ABMS) ensure compliance with ISO 37001:2016 and readiness for surveillance
audits by an independent certification body.
We also maintain International Ship and Port Facility Security (ISPS) audits for marine assets in Corridor, South Natuna Sea Block B, and JOB
Tomori, ensuring full compliance with ISPS Code requirements at terminals and ports.
Description Locations Audit Interval 2023 2024 2025
Internal Audits: Corporate Every 2 -3 years Mexico Block 12, PT Not Applicable in 2024 DSLNG
Oil & Gas Transportasi Gas Indonesia
and DSLNG
Division/ ISPS Code Audit for ISPS Code Audit for ISPS Code Audit for
Corridor, South Natuna Sea Corridor, South Natuna Sea Corridor, South Natuna
Department Block B and JOB Tomori Block B and JOB Tomori, Sea Block B and JOB
General Services Tomori
Oil & Gas Oman, Rimau, Lematang Thailand, Corridor, South East Java, Bangkanai,
(Indonesia and and Block A Sumatera Block, South Rimau and Lematang
International) Natuna Sea Block B
Partnerships DSLNG and JOB Tomori Not Applicable in 2024 JOB Tomori
with JOB
Internal Audits: Headquarters Every 2-3 years Not Applicable in 2023 TJBPS O&M, Cibalapulang TJBPS O&M,
Power Mini-hydro, Sarulla Cibalapulang Mini-hydro,
Geothemal, MRPR Sarulla Geothemal
Subsidiaries MEB, DEB, Sarulla Not Applicable in 2024 Not Applicable in 2025
Geothemal,Cibalapulang
Mini-hydro and Pusaka
Mini-hydro, Sumbawa
Solar PV, TJBPS O&M
Internal Audits Oil & Gas Annually International: Bualuang International: Bualuang & International: Oman KSF
on Anti Bribery Oman KSF
Management Indonesia: Corridor, P2P Indonesia: Corridor, P2P
System (ABMS) Oil & Gas, South Natuna Indonesia: Corridor, P2P E&P, South Natuna Sea
Sea Block B, JOB Tomori Oil & Gas, South Natuna Block B, JOB Tomori
Sea Block B, JOB Tomori
Medco Power Medco Power MEB, DEB, ELB, TJBPS
Headquarters, MEB, DEB, Headquarters, MEB, DEB, O&M, MRPR
ELB, TJBPS O&M ELB, TJBPS O&M, MRPR
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Third Party Risk Management Programme
Engaging Third Parties
MedcoEnergi actively collaborates with business partners to manage third-party risks and ensure compliance. Between 2023 and 2027, we
reviewed our programme and implemented a risk-based approach to enhance corporate third-party compliance.
MedcoEnergi Third Party Compliance Programme Framework
• Our Code
• Sustainability Reports
• Enterprise Risk Management (ERM) • ISO37001 Anti-Bribery Management System (ABMS)
• Quarterly Performance Reviews • Company’s Policies related to anti-corruption & third parties
• Programme Evaluation Analyses • SKK Migas Pedoman Tata Kerja (PTK) and other relevant laws & regulations
• Programme SharePoint & Database • Governance Roadmap
• Code of Supplier
• Implement Contractor’s Statement in Ethical
Compliance on annual basis
EVALUATE COMMIT
06 01
• Vendor Audit Guidelines
• Vendor Audit • Due Diligence Guidelines
• Vendor Compliance Survey • Due Diligence for high-risk suppliers
• Vendor Surveillance Check (Corporate, Oil & Gas Indonesian assets,
SOURCE MTBL, Medco LCC, MPI, JOB Tomori)
• Whistleblowing Handling DETECT 05 02 & PROCURE
• High-risk Third-Party Screening • Corporate Sanction Compliance Policy
• Conflict of Interest Statement to • Sanction Screening
Service Contractor Workers in • Anti-Money Laundering Policy
Indonesian Oil & Gas assets
04 03
COMMUNICATE
CONTRACT
& EDUCATE
• Integrated General Terms & Conditions in
• Ethics Liaison Officer (ELO) Programme contract agreements (Business Ethics, Right to
• Business Ethics Awareness for Suppliers on Audit, Anti-Corruption Laws, Human Rights &
Vendor Day Sustainability) for Oil & Gas
• Compliance e-Newsletter to Suppliers
• Support International Compliance Programmes, through:
• International Anti-Corruption Day
- Corporate Sanctions Compliance Policy
- Personal Data Protection Policy
- Initiative in Know-Your-Customer (KYC) of Business Ethics/
Anti-Corruption programmes to Business Partners Requirements
- Collaborative effort in Maintain Export Control Commitments
Our Third-Party Compliance Programmes
Meeting the Know-Your-Customer (KYC) Requirements from Our Partners
At MedcoEnergi, we conduct KYC assessments to evaluate bribery and risks related to corruption, money laundering, and sanctions.
Due Diligence
In 2025, MedcoEnergi continued to apply a risk-based approach to third-party due diligence, with particular attention to sanctions-related
checks. Targeted reviews were conducted, especially in response to changes in counterparties during the fourth quarter. These actions are
aligned with the Company’s 2023–2027 due diligence priorities and are implemented through established risk escalation and review
processes.
Assets 2023 2024 2025
Oil & Gas - Indonesia 8 15 13
Oil & Gas - International 15 16 28
Power 3 3 3
JOB Tomori 3 4 4
Total Number of Vendor Due Diligence 29 38 48
Third-Party Risk Detection Initiatives
Our initiatives uphold business transparency and strengthen stakeholder trust in our governance with third parties. We continue to maintain
ethical declarations for contractors’ top management and Conflict of Interest submissions for service contract workers across Onshore,
Offshore, and Corridor assets. Further details can be found in the Prevention – Annual Statement of Adherence and Conflict of Interest
section on page 50.
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Anti-Bribery and Corruption (ABC), Contract Compliance, and Internal Control Vendor Audits
MedcoEnergi conducts ABC, Contract Compliance, and Internal Control Vendor audits. In 2025, we completed 22 ABC audits, including at
Thailand. Internal Control audits further strengthened compliance, contract adherence, and business controls.
No Categories Assets 2023 2024 2025
1 Oil & Gas Indonesia 13 11 12
International 2 5 2
2 Power 3 2 4
3 JOB Tomori 4 4 4
Number of ABC, Contract Compliance, and Internal Control Vendor Audits 22 22 22
We apply a risk-based approach to vendor audits and third-party due diligence, prioritising vendors with higher anti-bribery and corruption
(ABC) risks based on factors such as reputational exposure to corruption and associations with politically exposed persons (PEPs).
Key Focus Areas
2023 2024 2025 2026 2027
Licenses Logistics & Manpower Security
Marine
& Permits Inspections Services Services
Response
We uphold our Code of Conduct through a Zero Tolerance policy on Committee (CECC). Retaliation against whistleblowers is strictly
bribery, corruption, fraud, and all ethical violations. Verified prohibited and subject to disciplinary action, including termination.
allegations result in prompt corrective actions.
In 2025, we continued implementing ISO 37002:2021 to strengthen
Raising concerns: Whistleblowing Channels trust, transparency, fairness, and protection within our
whistleblowing framework. Key policies and procedures are the
MedcoEnergi encourages employees to speak up about concerns or
Corporate Whistleblowing Policy, Whistleblowing Management
suspected violations of Our Code, reinforcing our Zero Tolerance
System Manual, and Investigative Examination Procedure, which
Policy and regulatory compliance.
aim to:
MedcoEnergi Whistleblowing Channels
• Promote and simplify misconduct reporting
MedcoEnergi provides secure, multilingual channels to report
violations such as fraud, corruption, bribery, conflicts of interest, • Safeguard whistleblowers and involved parties
breaches of the Code of Conduct and Respectful Workplace Policy, • Ensure timely and proper handling of reports
and other unethical practices. Reports can be made via website, • Strengthen organisational integrity culture and governance
phone, SMS, or WhatsApp, with the option to remain anonymous. • Minimise the risk of unethical behaviour
All reports are monitored by the Corporate Ethics and Compliance
External Ethics Hotline
(managed by appointed indenpendent party)
INDONESIAN THAI ARABIC MANDARIN
Phone Phone Phone Phone
0800-150-3020 1800-010-316 8007-4565 0800-150-3020
Text Messages (SMS) Text Messages (SMS) Text Messages (SMS) Text Messages (SMS)
& WhatsApp Messenger & WhatsApp Messenger
(+66) 65986 1887 (+27) 72 014 4445
(+62) 8138 870 3300 (+62) 8138 870 3300
WhatsApp Messenger WhatsApp Messenger
(+62) 8138 870 3300 (+62) 8138 870 3300
Direct website: https://idn.deloitte-halo.com/lapor-medcoenergi/ | Email: lapor-medcoenergi@tipoffs.com.sg
To ensure independence, MedcoEnergi appointed PT Deloitte Advis Indonesia (Deloitte) to manage its external whistleblowing channels.
Deloitte screens and classifies incoming reports before forwarding them to the President Director and the Head of Corporate Audit &
Integrity Compliance for investigation and follow-up. Reports can be submitted through the MedcoEnergi website here or Deloitte’s
dedicated platform here.
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Incident Disclosures
We strengthened our whistleblowing governance framework with
the Corporate Whistleblowing Policy, signed in 2024. This was 29
followed by the Whistleblowing Management System Manual and
Investigative Examination Procedure, issued in Q1 2025. 25
17
In 2025, we processed 86 alleged violations, identifying 53 fraud 22
15
incidents, 25 of which were substantiated. Substantiated fraud
12
incidents in 2025 include extortion, theft, embezzlement, 53
counterfeiting, illegal gratuities, gifts and entertainment, 37
29
relationships with suppliers, undeclared outside work, cost markups,
and subcontracting abuse. 2023 2024 2025
Fraud Incidents Confirmed Fraud Incidents Disciplinary Action
Sanctions were imposed on 52 individuals, comprising employees,
contractors, and suppliers, including 29 cases related to fraud and
23 related to business ethics violations. Disciplinary measures
ranged from verbal warnings to termination. Compared to the The increase in reported and substantiated cases reflects the
previous year, reported fraud cases increased by 16, substantiated continued strengthening and maturity of MedcoEnergi’s
cases by 10, and individuals subject to disciplinary action by 12. whistleblowing systems as well as improved employee awareness
These figures may not correspond directly, as a single case may and confidence in reporting concerns. In parallel, we apply a
involve multiple individuals, and sanctions may apply to vendors or structured approach to investigating, responding to, and closing
cases confirmed in prior reporting periods. The graph below shows cases, ensuring appropriate corrective actions and sanctions are
year-on-year comparison on the number of fraud incident, confirmed implemented.
fraud incidents and disciplinary actions.
Monitoring and Evaluation
We continuously monitor and evaluate our responses to claims and reports to assess the effectiveness of our actions, which reinforces
transparency, accountability, and corporate governance.
Anti-Bribery Management System (ABMS)
Our Anti-Bribery Management System (ABMS) is designed to detect, prevent, and respond to bribery and corruption. Since its launch in
2018, we have continuously enhanced its effectiveness. ISO 37001:2016 – the Anti-Bribery Management System, has been successfully
implemented across ten existing assets and Procure-to-Pay process.
Details of our ISO 37001:2016 ABMS journey are available on the Annual Report and MedcoEnergi ABMS website.
Continuous Improvement
We continuously enhance our standards, policies, and initiatives to align with MedcoEnergi’s expanding portfolio, ensuring ongoing
improvements through organisational feedback mechanisms.
Respectful Workplace Policy At a national level, MedcoEnergi continues to participate in
Indonesia’s Extractive Industries Transparency Initiative (EITI)
To foster respectful and inclusive workplaces while ensuring
reporting process. Through annual submissions to the Government
compliance with the Indonesian Ministry of Manpower Decree No.
of Indonesia’s Coordinating Ministry for Economic Affairs (CMEA),
88/2023, MedcoEnergi issued a Respectful Workplace Policy in
the Company contributes payment-related data that is consolidated
2025, reinforcing our commitment already outlined in Our Code.
with disclosures from other extractive companies and published
Beyond regulatory compliance, we are dedicated to maintaining
through the EITI reporting mechanism, subject to the national
workplaces that are free from harassment.
validation process.
Personal Data Protection (PDP) Company disclosures included in Indonesia’s EITI country report are
In 2025, we conducted awareness sessions on Indonesia’s Personal available at: https://eiti.org/eiti-country-reports?field_
Data Protection (PDP) Law No. 27/2022, to support the countries=indonesia
establishment of MedcoEnergi Personal Data Protection Policy.
We aim to benchmark and incorporate the lessons learned from MedcoEnergi Recognised for Excellence in
Bualuang since Thailand adopted similar regulations in 2022. Sustainability Reporting
In 2025, PT Medco Energi Internasional Tbk’s 2024 Sustainability
Transparency in Payments to Governments Report was recognised with an ‘A’ rating in a study conducted by
Transparency in payments to governments is an integral part of FIHRRST and Moores Rowland, which assessed all publicly listed
MedcoEnergi’s governance approach, supporting accountability, fair companies in Indonesia. The study measured the alignment of
business practices, and the management of ethical risks. This sustainability reports with OJK Regulation 51/2017 and GRI
commitment is embedded in the way the Company manages, Standards, reflecting best practices in environmental, social, and
records, and reports government-related payments, supported by governance (ESG) reporting. This recognition underscores
internal controls and employee awareness. MedcoEnergi’s commitment to transparency, robust ESG
management, and continuous improvements in sustainability
We have moved to non-cash payment mechanisms in Medco Oil & reporting. We were honoured to serve as a key speaker at the
Gas operations in Indonesia. The measures have provided a launching of the study, “Strengthening Governance Measures to
consistent basis to manage government-related payments and Support Sustainability”.
mitigate bribery risks; they remain in effect as part of ongoing
business processes.
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Anti-Corruption Collective Actions
MedcoEnergi’s anti-corruption efforts involve collaboration with professional associations and stakeholders to promote integrity across the
industry, recognising that collective action is key to building an anti-corruption culture. Our initiatives include supporting local anti-corruption
programmes and engaging in joint efforts with international organisations.
Contributions to Local Anti-Corruption Initiatives
MedcoEnergi actively participates in anti-corruption initiatives to promote integrity and ethical business practices in local communities.
Strengthening Integrity through Women’s Leadership at Corridor
MedcoEnergi, in collaboration with “I Am a Woman Against
Corruption” (Saya Perempuan Anti Korupsi/SPAK), held a “Collective
Action Women’s Group” programme at the Corridor asset in July
2025. The event gathered 60 women from community groups,
including educators, healthcare workers, and local micro and small
enterprises, as part of MedcoEnergi’s efforts to promote community
integrity and strengthen social accountability to support its
sustainability goals.
Delivered under the theme “Women of Integrity, Pillars of Anti-
Corruption,” the workshop highlighted the role of women in
promoting ethical values and integrity within families, communities,
and workplaces. Discussions covered the impacts of corruption,
human rights responsibilities, and the importance of collective
community action. The programme also contributed to
strengthening participants’ abilities to act as integrity advocates and Promoting Integrity, Ethical Leadership and Collective
was documented as part of MedcoEnergi’s human rights awareness Action through Womens Group Programme at Corridor,
South Sumatra, Indonesia
initiatives for Corridor stakeholders.
Youth Integrity Programme in East Java
We held a Youth Integrity Programme in Politeknik Madura in February 2025. The event engaged 432 students and 64 lecturers, covering
business ethics, anti-corruption measures, compliance risks, and MedcoEnergi’s sustainability efforts. It aimed to equip participants with
practical knowledge and skills to prevent and address corruption and ethical dilemmas.
Fostering Ethical Leadership in Youth Integrity Programme in Politeknik Madura, Sampang, East Java, Indonesia
Youth Integrity Programme in a Senior High School in Kabupaten Anambas
We conducted anti-corruption workshops in two high schools near South Natuna Sea Block B in August 2025. SMAN 1 Palmatak hosted 70
students and 7 teachers, while SMAN 1 Siantan hosted 69 students and 7 teachers. Workshops covered an overview of South Natuna Sea
Block B, anti-corruption education, ethical awareness, compliance risks, types of ethical violations, organisational protection measures, and
MedcoEnergi’s sustainability strategies, including climate change initiatives.
Increasing Anti-Corruption Awareness Workshops in High Schools, Matak, Riau Islands, Indonesia
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Joint Anti-Corruption Efforts with International Organisations
MedcoEnergi attended the IGCN Annual Members Gathering in
October 2025 in Jakarta, hosted by the UN Global Compact Network
Indonesia (IGCN). The event convened leaders from business, civil
society, academia, and government, including the Vice Foreign
Minister of Indonesia; the Deputy for Food, Natural Resources, and
Environment at the National Development Planning Agency; and the
UN Resident Coordinator in Indonesia. The conference focused on
progress that has been made on the UN Global Compact’s Ten
Principles and advancing the SDGs through governance,
environmental stewardship, inclusive business, and policy advocacy.
MedcoEnergi shared its experience in engaging government officials
during the Members Journey: Governance, Partnership, and Policy
Advocacy session.
MedcoEnergi actively participated in national integrity dialogues,
including the Responsible Business Forum 2025, organised by the
IGCN and the UN Office on Drugs and Crime (UNODC), to promote
anti-corruption as a core element of ESG and sustainable business.
At this event, the Company shared its experience in implementing Engaging for Sustainable Development:
the ISO 37001:2016 Anti-Bribery Management System, highlighting MedcoEnergi at IGCN Annual Members Gathering 2025
its commitment to ethical and responsible governance.
Supply Chain Management
MedcoEnergi places integrity as a fundamental principle in all business activities, demonstrated through ethical conduct and its transparent
procurement processes. We expect our vendors to comply with applicable regulations and adopt leading sustainable practices that uphold
the highest standards in health, safety and environmental (HSE) performance; respect human rights; protect company assets; safeguard
confidentiality (including intellectual property rights); ensure fair competition; and adhere to anti-corruption measures. Child and forced labour
are strictly prohibited across our operations, and we require the same commitment from our suppliers. These expectations are embedded in
our vendor selection processes and contractual agreements, with our terms and conditions requiring compliance with both the Code of
Conduct and the Code of Supplier1.
Approaches, Commitments, and Goals
At MedcoEnergi, we are committed to managing an efficient and resilient supply chain that supports growth and ensures the timely delivery
of safe, reliable, and high-quality products and services. We uphold Good Corporate Governance and our Code of Conduct across all
subsidiaries and divisions. While governance guides our business, the Code directs our behaviour, ensuring compliance with laws,
regulations, and industry standards. Beyond our operations, we engage partners to strengthen transparency, accountability, and ethical
practices across the supply chain.
Ethical Engagement with Suppliers Promoting Integrity and Sustainability in
In implementing the Code of Supplier, we aim to conduct business Supply Chain Management
with high standards of integrity and recognise the pivotal role our MedcoEnergi recognises suppliers as key partners in promoting
business partners play in delivering value. This encompasses sustainable and ethical business practices. In 2025, MedcoEnergi
suppliers of goods, materials, and services, as well as contractors strengthened engagement with vendors through quarterly Anti-
and subcontractors. Money Laundering (AML) newsletters, Vendor Day events,
contractor forums, human rights and sustainability workshops, and
As part of this implementation, business partners are expected to
vendor engagement programmes. For example, the Indonesian
align with MedcoEnergi’s ethical standards throughout their
Vendor Day in February 2025 included a sharing session on Scope 3
engagement with the Company.
GHG emissions. We continue engaging suppliers to assess their
Key expectations include: levels of awareness and knowledge on the complex topics of
sustainability and climate change. This will be part of a long-term
• Safeguarding confidentiality & proprietary information.
effort to collaborate along our value chain in line with Scope 3
• Engaging in fair competition and dealings.
emissions.
• Gathering of competitive intelligence with integrity.
• Reporting any potential misconduct, ethical violations of the We work closely with key vendors and advance strategic
Company’s Codes and policies, and applicable laws. collaborations with renewable energy suppliers, such as Tier-1
To reinforce these expectations in practice, MedcoEnergi engages photovoltaic and battery storage manufacturers, to support local
with suppliers and vendors through various communication and content development and investment in Indonesia. Collectively,
outreach activities. these efforts enhance transparency, reinforce ethical practices, and
strengthen long-term partnerships, supporting operational efficiency,
compliance, and sustainable value creation across the supply chain.
1 This policy is assured and covered in the GRI 2-23 (Policy Commitment) and GRI 2-24 (Embedding Policy Commitment)
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Alignment of Sustainability Initiatives with the UN SDGs
The table below aligns MedcoEnergi’s initiatives to pursue excellence in governance with the relevant United Nations Sustainable
Development Goals (UN SDGs). These initiatives only highlight MedcoEnergi’s effort and do not imply MedcoEnergi has set or measured
targets for host governments in our operational areas regarding the achievement of the UN SDGs.
UN SDGs Relevant UN SDGs Targets1 Key Initiatives
Policies and initiatives on ethics and compliance, fraud risks, human rights, anti-bribery
4.7
and corruption.
12.6 Publication of sustainability reporting.
• Policies and initiatives on ethics and compliance, fraud risks, human rights,
16.3, 16.5, 16.6, 16.7 anti-bribery and corruption
• Annual SoA and CoI declarations.
External collaborations to promote business transparency, integrity and anti-corruption
17.17
measures.
• Code of Supplier
8.3, 8.7, 8.8
• Human Rights Policy Workshop
Youth Integrity Programme in East Java, Indonesia
1 The targets can be found in UN SGDs website (https://sdgs.un.org/goals)
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Action Plans
The following action plans will enable us to meet our objectives and continue pursuing excellence in governance. We regularly measure,
monitor and report on our progress and performance and match them against these actions. The progress report of these action plans refers
to the 2023 - 2027 Sustainability Road Map. Since we have passed the short term period and actions were concluded in 2025, our current
focus is on the status of the medium/long term actions.
Category Short-term Actions Medium/Long-term Actions Status
Anti-Corruption Require all employees to sign an annual anti-corruption Employees have signed anti-corruption declarations
declaration after completing an online evaluation. annually (May - June).
Conduct communication and education training in anti- In 2025, the ELO Opening Workshop included Field
corruption efforts. Compliance sessions in East Java, CST, Matak and
Corridor. Other activities included the ELO Mid-Year
Workshop, ABMS Awareness at Corridor, International
Anti-Corruption Day at MEPI, AML Workshop for
Commercial, and SCM Leadership.
Total participation: 548 people.
Conduct training for hosting government officials; Advanced Completed Fraud Risk Management Workshop for the
Fraud Risk Assessment (FRAs) for new assets (post-merger CSRM and Corporate Shared Service Center functions
and acquisition) to support growth strategy; and one in Dec 2025. Total participants: 8 people.
refresher session in the organisation in high-risk areas.
Also, discuss anti-corruption programmes in Oil & Gas
forums.
Aligned Integrity Champion Continue ELO programme in Continued implementing ELO programme in Medco Oil
ex Corridor Programme for Indonesia and international & Gas.
Ethical Liason Officers business units.
(ELO) programme and Total ELO: 90 personnel.
continue it for other
international business units.
Continue Compliance Champion Programme for Medco Continued the implementation of Compliance Champion
Power. in Medco Power.
Total Compliance Champion: 28 personnel.
Obtain and implement ISO 37001:2016 Anti-Bribery MRPR was certified in February 2025. Passed 1st
Management System (ABMS) certification for high risk surveillance in 2025.
assets in Medco Oil & Gas and Power.
Obtain and implement ISO 37001:2016 Anti-Bribery The asset was recertified in September 2025.
Management System (ABMS) certification in South Natuna
Sea Block B.
Obtain and implement ISO 37001:2016 Anti-Bribery Medco Power Headquarters was recertified in August
Management System (ABMS) certification for Procure to 2023 and passed first and second surveillance ISO
Pay (P2P) process in Oil & Gas Indonesian assets such as 37001: 2016 in 2024 and 2025.
Rimau, South Sumatra Block, Lematang, Block A, Tarakan,
South Natuna Sea Block B, Corridor, Sampang, Madura
Offshore, West Bangkanai, and Bangkanai.
Obtain and implement ISO 37001: 2016 ABMS Certification Medco Power Headquarters was recertified in August
for Medco Power Assets. 2023 and passed first and second surveillance ISO
37001: 2016 in 2024 and 2025. The Medco Power
subsidiaries: MEB/ ELB, DEB and TJBPS were
recertified in June 2024 and passed 1st surveillance in
2025.
Obtain and implement ISO 37001: 2016 ABMS Certification JOB Tomori was recertified in August 2024 and passed
for JOB Tomori. 1st surveillance in 2025.
Obtain and implement ISO 37001: 2016 ABMS Certification The asset was recertified in November 2025.
for Bualuang, Thailand.
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Category Short-term Actions Medium/Long-term Actions Status
Anti-Corruption Plan to obtain and Obtain and implement ISO The certification was obtained in December 2023 and
implement ISO 37001: 2016 ABMS passed the first and second surveillance ISO
37001: 2016 ABMS Certification for Corridor 37001: 2016 in 2024 and 2025.
Certification for Corridor
Asset.
Anti-Corruption Plan to develop ISO Obtain and implement ISO The certification was obtained in December 2024 for
37001: 2016 for Oman. 37001: 2016 ABMS Oman KSF and passed 1st surveillance in 2025.
Certification for Oman and
MRPR.
Conduct anti-bribery and corruption vendor audits (minimum Conducted 22 vendor audits in 2025.
of 22 vendor audits per year)
Establish standards for Conduct due diligence with • Conducted 19 ethical due diligence at Bualuang.
vendors’ due diligence high-risk criteria based on • Conducted 11 desktop reviews of due diligence for
process. Complete targeted current compliance risks. Commercial at South Natuna Sea Block B, Corridor,
selected vendor compliance Complete vendor compliance Bualuang and JOB Tomori.
survey in Oman. survey in Indonesia and • Conducted desk top reviews of due diligence of
Thailand. Oman KSF : 5 due diligences.
• Conducted 4 desktop due diligences at JOB Tomori.
• Conducted 3 desk top due diligences for vessel
ownership changes.
• Conducted 3 desktop due diligences at Medco
Power.
• Conducted 3 desktop due diligences (1 in South
Natuna Sea Block B, 1 in Corridor and 1 in Corporate
Treasury). - Total: 48 due diligences.
• Completed compliance survey of 57 vendors in
Bualuang in Nov 2025.
Business Ethics Carry out Code of Conduct (COC) assurance: Statement of In 2023, to align the declaration with the 5-year
Adherence (SoA) self- tests. Sustainability Governance roadmap, the SOA was
expanded to include statements on personal data
privacy protection, human rights, political involvement,
and AML awareness in assurance test questionnaires.
100% of our Oil & Gas and Power employees submitted
their SOAs, with passing the SOA Assurance Test as a
requirement. The results show that employees have a
strong understanding of our Code and Conflict of
Interest Policy & Procedures.
Automate Conflict of Interest (CoI) deterrence to be Not applicable since we did not acquire any new assets.
included in the system and train new personnel (if we have
any new assets)
Standardise CoC practices related to SoA declarations, • Received 100% or 6,251 Conflicts of Interest (CoI)
Conflict of Interest (CoI) declarations, Governance & Ethics submissions from permanent employees and
Policy, Government Hosting Guidelines and Gift third-party contractors in Medco Oil & Gas and Medco
Entertainment Guidelines. Power in 2025.
• Expanded the CoI declaration process to include
targeted service contractor workers in Corridor,
Onshore, and Offshore. We received 4,114
submissions: a 100% completion rate in 2025.
Finalise and implement a standardised, rigorous compliance • Implemented one Our Code Standard across
programme (covering prevention, detection, responses) MedcoEnergi.
across MedcoEnergi. • Implemented ABMS in key overseas assets.
• Standardised third-party risk managements.
Internal Audit Ensure the effectiveness of the 2025 audit plan (>90% Completed audits for Oil and Gas at: East Java,
audit plan completion) covering key business risks and Bangkanai, Rimau, Lematang and JV audit of DSLNG
controls within assets, partnership and functional areas. and JOB Tomori.
International ship and port security audits: Corridor, South Completed the implementation of the ISPS Code audit
Natuna Sea Block B and JOB Tomori. at Corridor, South Natuna Sea Block B, and JOB Tomori
in 2025.
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Category Short-term Actions Medium/Long-term Actions Status
Sanction Conducted Sanctions Workshop in high-risk areas. A Sanction Workshop for Bualuang Leadership was
Compliance conducted in May 2025.
Programme
Anti Money Established AML Policy in Review AML controls in • AML Policy launched in March 2024 and available at
Laundering (AML) year 2023 relevant functions; develop a MedcoEnergi website.
Programme working procedure to detect • AML Workshop for Commercial was conducted in
money laundering risks. May 2025, attended by 8 key personnel. AML
Workshop for SCM Leadership was conducted in
December 2025, attended by 15 key personnel.
Personal Data Increase awareness of Regularly conduct PDPA Support the launching of Personal Data Protection Policy
Protection (PDPA) PDPA related to HR, IT, training and workshops. in February 2025.
Programme HSE, and SCM.
Whistleblower Implemented WBS has been implemented in DSLNG and JOB Tomori
Management Whistleblower in since 2022.
System (WMS) Partnership
Programme
Assess Conformity ISO Full adoption and conformity Adopted ISO 37002:2021 Whistleblowing Management
37002. of ISO 37002. System (ISO 37002) in 2025. This standard provided a
comprehensive framework to create a robust
whistleblowing management system based on the
principles of trust, impartiality, and protection.
GRI 205-3 Disclosure GRI 205-3 disclosure in year Data related to GRI 205-3 was disclosed in the 2021
(without assurance) 2024 (without assurance) and Sustainability Report – continued in Sustainability Report
assured GRI 205-3 from 2025 2022 - 2025.
– 2027.
Human Rights Establish Human Rights Conduct Human Rights Developed platform and deployed Human Rights
Policy and framework. Training for all employees e-learning to MEI, Corridor, MTBL Thailand and
and vendors. Onshore.
Conduct Human Rights assessments for major assets. Vendor screening for Human Rights Risk and Impact
Assessment.
Harassment Free Workplaces. Established Respectful Workplace Policy in March 2025.
Public Policy Develop an accountability mechanism to monitor Completed the accountability mechanism and reported
MedcoEnergi’s public policy statements versus execution, to BOD in 2025
and agenda versus implementation
Socioeconomic Support industry efforts to increase simplification and Ongoing authority engagement through the National
Compliance transparency around social and environmental permits for Anti-Corruption Strategy Forum.
Medco Oil & Gas assets through the IPA Ethics &
Compliance Committee.
Responsible Develop 3rd party Partnership programme to Conducted hybrid Human Rights Training / Workshop
Procurement capacity building promote data transparency and for active vendors.
Practices (Human Rights). implement best practices in the
value chain.
Regularly conduct 3rd party engagement through Vendor Organised a virtual Vendor Day for Indonesian Oil & Gas
Days. assets.
Issued an SCM e‑Newsletter for Oil & Gas and Power
assets.
Conducted contractor forums at MEB, DEB, and ELB,
delivering key messages on HSE, Sustainability, Ethics
and Compliance, SCM, and Social Media Guidelines.
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Enhancing Renewable Energy Efficiency through Solar PV Module Cleaning, Sumbawa Solar PV, West Nusa Tenggara, Indonesia
This picture is the 2nd winner under the ‘Environment & Climate Change’ category of the MedcoEnergi 2025 Photography Competition
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64 Approaches, Commitments, and
Goals
66 Integrating Climate
Considerations into Business and
Operations
68 Assessing Our Climate-Related
Risks and Opportunities
71 Our Environmental Footprint at a
Glance
73 Emission Reductions
79 Transition to Low Carbon Energy
81 Alignment of Sustainability
Initiativeswith the UN SDGs
81 Action Plans
Driving a Sustainable
Future through
Climate Action
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Managing the transition to low‑carbon energy and mitigating decline in production. As of 2025, we reduced Scope 1 and 2 GHG
climate‑related transition and physical risks are integral to creating emissions by 30% from the 2019 baseline, surpassing our interim
long‑term value. Our Climate Change Strategy and Net Zero targets, 2025 target of a 20% reduction. We also achieved a 40% reduction
established in 2021, remain the foundation of our decarbonisation in methane emissions from Oil & Gas operations relative to 2019
pathway. The interim targets we established in 2022 to reduce levels, exceeding our 2025 methane reduction target of 25%. In
greenhouse gas (GHG) and methane emissions, and increase our parallel, we increased our renewable energy mix installed capacity to
renewable mix installed capacity, guide our ner and medium-term 26%, in line with our interim target.
actions, introduced in 2022, guide our near and medium-term
actions. Together, these commitments frame our approach to These outcomes demonstrate the continued integration of climate
advancing climate action alongside delivering reliable, affordable, considerations into our operations and strategic planning. In parallel,
and sustainable energy and natural resources. we advanced our climate adaptation and resilience efforts to address
physical climate risks, including completing in‑house quantitative
Grounded in these commitments, we continue to advance Climate Change Risk Assessments (CCRA) for two assets and
measurable results across our climate agenda. On a consolidated establishing a dedicated CCRA platform to support consistent
basis, Scope 1 and 2 GHG emissions from Oil & Gas operations in analysis across the portfolio. Collectively, these efforts reinforce our
2025 were relatively flat compared with the prior year. Increased commitment to strengthening our response to emerging
emissions at South Natuna Sea Block B, stemming from additional climate‑related challenges and advancing our transition toward a
flaring linked to a new development facility, were partially mitigated low‑carbon energy system.
by emissions‑reduction initiatives across our assets and the natural
Approaches, Commitments, and Goals
Our Net Zero ambition sets the long-term direction for climate We continue to reduce GHG emissions by adopting proven
action, targeting net‑zero Scope 1 and 2 GHG emissions by 2050 technologies, best practices, and carbon removal efforts whenever
and extending to Scope 3 by 2060. These long-term targets shape applicable. Our transition to low-carbon and sustainable energy
the pathways defined under our Climate Change Strategy. As includes expanding our natural gas portfolio as a transitional fuel
outlined in Chapter 4, this strategy is integrated into our core vision, alongside developing renewable energy to support national
mission, and sustainability framework, and aligns with the Paris development goals in Indonesia and other countries. In 2025, we
Agreement and the Nationally Determined Contributions (NDCs) of also strengthened our consideration of physical climate risks and
the countries where we operate. Climate scenario analyses further enhanced methane management through our Sustainability
support this approach by identifying climate‑related risks and Assessment process, which incorporated gate reviews and project
opportunities that may influence our business activities over the surveillances for selected projects to further embed climate
short, medium, and long term. considerations into decision‑making. Further details are provided in
the Sustainability Assessment sections of Chapter 4 and Chapter 7.
Long-Term Climate Aspirations and Interim Targets
MedcoEnergi climate aspirations sets the long-term direction for our climate action, while interim climate targets translate these aspirations
into measurable milestones that guide implementation and enable progress tracking over time. These targets were developed through a
structured process that considered the NDCs of our host countries, internal long-term planning assumptions, industry benchmarking,
climate-related risks and opportunities, past and ongoing emissions reduction efforts, and evolving regulatory and market conditions.
Following updates to national commitments, including the submission of Indonesia’s Second NDC, we continue to support the climate
objectives of the countries where we operate.
Having achieved our 2025 interim targets, we are now entering the next phase of the Net Zero pathway, focused on implementing our
priority targets by 2030. This phase will further strengthen the integration of emissions reduction, energy transition, and business planning
across our operations. It also includes increasing the share of renewable energy in our power portfolio to 30% by 20301 supporting our
broader progression toward long-term climate goals.
GHG Emissions
Interim Targets Climate Aspirations Scope 1 & 2c
GHG Emissions
Scope 3c
Reduce Scope
1 & 2 GHG
Reduce
Methane
Reduce Scope
1 & 2 GHG
Reduce
Methane NET ZERO NET ZERO Carbon Removal
Emissionsa Emissionsa Emissionsa Emissionsa
& Offsetc
20% 25% 30% 37% Scope 1 & 2 Scope 3 a Medco Oil & Gas emissions
based on the operational control
GHG emissions GHG emissions approach and reduction from
Increase Disclose Increase the 2019 base year.
Renewable Scope 3 GHG Renewable b Equity shared installed
Mix Installed emissions Mix Installed capacity. The Government of
Capacityb data Capacityb Indonesia’s renewable energy
mix target is 23% by 2025 and
26% 30% 25% by 2030.
c This graph is an illustration
of the GHG emissions and
offsets trajectory to achieve Net
Zero and does not describe
2025 2030 2050 2060 MedcoEnergi’s projected GHG
emissions and carbon offsets.
1 This target was originally set with reference to Indonesia’s previous Nationally Determined Contribution (NDC), which aimed for at least 23% of installed capacity from new and
renewable energy by 2025 and 30% by 2030. Following the issuance of Government Regulation No. 40 Year 2025 on National Energy Policy, which reflects Indonesia’s Second NDC,
the national target for new and renewable energy is set at 19%–23% by 2030.
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Building Organisational Capability for Climate Action
In 2025, MedcoEnergi continued to strengthen organisational sustainability roles and responsibilities. Senior leaders also
capabilities in sustainability and climate change across all levels of participated in certification programmes from globally recognised
the workforce. We delivered a series of structured capability-building institutions such as MIT and the University of Cambridge, enhancing
programmes for employees, management, executives, and key strategic competencies in sustainability and climate change. In
suppliers to prepare the organisation for effective climate action. parallel, our expanding e-learning programmes on sustainability and
These programmes covered both strategic and operational aspects climate fundamentals have reached more than 5,000 employees
of sustainability, ensuring that climate considerations are embedded since their launch in 2023. Collectively, these efforts reinforce a
into decision-making, risk management, and investment planning culture of common responsibility and ensure that sustainability is
across the business. deeply embedded across MedcoEnergi’s operations and long-term
business strategies.
Throughout the year, senior leaders and Green Ambassadors for
Inclusive climate Action (GAIA) Champions participated in training Organisational capability was further strengthened through external
sessions covering a broad range of sustainability and climate-related programmes. In 2025, we took part in the United Nations Global
topics. These included updates on global and regional climate Compact (UNGC) Climate Ambition Accelerator Program, a
policies and reporting frameworks such as CDP, IFRS S1 & S2, and six-month initiative designed to equip companies with the
methodologies for nature-related risk assessments aligned with the knowledge and skills to set emissions reduction targets and direct
TNFD framework. Additional sessions focused on climate risks and them towards net-zero emissions by 2050.
resilience, climate change risk assessments, GHG and methane
management, Renewable Energy Certificates (RECs), global Members of the Climate Change and Energy Transition Working
initiatives such as OGMP 2.0, Carbon Capture Storage (CCS)/Carbon Group were also selected to participate in international scholarships
Capture, Utilisation and Storage (CCUS), and sustainable finance. focused on climate change and energy transition. These included
the ASEAN-Australia Centre Short Course on Resources in Energy
The GAIA Champions initiative and continuous learning programmes Transition and the University of Texas at Austin McCombs School of
further enhanced our organisational capabilities in sustainability. In Business for Sustainability Leadership Program. These programmes
2025, 40 GAIA Champions were appointed across assets and have further strengthened our internal capabilities and brought
successfully shared sustainability knowledge to more than 950 valuable global insights to support MedcoEnergi’s climate agenda.
employees, strengthening functional level understanding of
2025 GAIA Champion Session, in Jakarta, Indonesia
Participating in Global and Regional Climate Events and Conferences
In 2025, we continued to engage in global and regional climate and energy-focused forums as part of the “Collaboration and Engagement”
under our Climate Change Strategy. Through these platforms, we contributed perspectives on climate resilience, decarbonisation pathways,
and the energy transition while engaging with policymakers, industry peers, financial institutions, and other stakeholders.
We demonstrated our leadership in climate action by attending and speaking at the key climate events and forums throughout the year:
• Oman Sustainability Week as part of the Oman Petroleum & • Unlocking Energy Transition Finance towards Inclusivity and
Energy Show managed by the Ministry of Energy and Minerals of Sustainability in ASEAN, convened by the ASEAN Centre for
the Sultanate of Oman. Energy.
• Risk Beyond 2025: “Climate Extremes and Energy Futures: • Advantage Oman Forum, including sessions on energy transition
Rebuilding Strategy for Resilient Growth”, hosted by Enterprise and biodiversity, hosted by the Oman Ministry of Commerce,
Risk Management Academy (ERMA). Industry and Investment Promotion.
• International and Indonesia Carbon Capture & Storage (IICCS) • Ecoprosperity Week 2025 – “Inclusive Energy Transition:
Forum: “Industrial Transformation through CCS Integration”, Workforce Transformation Priorities in APAC”, organised by
hosted by the Indonesia CCS Centre. World Business Council for Sustainable Development (WBCSD)
• Indonesia Best Electricity Award (IBEA) organised by Majalah and Environmental Resource Management (ERM).
Listrik Indonesia.
• Energy Asia Conference, with sessions on the future of energy
markets, company strategies, and decarbonising hard-to-abate
sectors.
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66 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Integrating Climate Actions Into Remuneration
Climate-related objectives are integrated into MedcoEnergi’s dimensions: HSE and Sustainability, Availability and Production,
performance-based remuneration framework to reinforce Growth, Operational Excellence, and Financial Performance.
accountability and support the delivery of the Company’s climate
Sustainability and climate-related KPIs constitute the majority of the
aspirations. While sustainability-linked remuneration is addressed
HSE and Sustainability dimensions and are monitored and evaluated
more broadly in Chapter 5 Page 47, this section outlines the specific
quarterly. Performance against these KPIs is reviewed annually to
linkage between climate performance and remuneration, particularly
determine whether targets have been achieved and inform
at the executive level.
performance-based incentives, including salary reviews. At the
MedcoEnergi links incentive pay policies to sustainability and climate executive level, climate-related factors are incorporated into
action performance, focusing specifically on both reducing performance scorecards through selected KPIs linked to priority
greenhouse gas (GHG) and methane emissions and increasing climate outcomes. These include progress on GHG emission
renewable installed capacity. Team Performance Contracts (TPCs) reductions, methane management, and the expansion of renewable
are established annually across the organisation, from board-level installed capacity. In 2025, each dimension of the Board’s TPCs
executives to individual employees. Each TPC consists of five were equally weighted at 20% more of total TPC, with emphasis on
the HSE and Sustainability dimension.
Integrating Climate Considerations into
Business and Operations
MedcoEnergi integrates both climate adaptation and mitigation into guidelines in 2024, which were applied in 2025. We continue to
its corporate business and operational processes. This approach is disclose climate-related information through multiple channels,
anchored in our Enterprise Risk Management framework, in which including alignment with the Task Force on Climate-related Financial
climate-related physical and transition risks and opportunities are Disclosures (TCFD) since 2022 and participation in the CDP Climate.
embedded within Company’s risk universe to support the In 2025, we received a B rating from CDP, exceeding the Oil & Gas
assessment and management of climate-related impacts on the Extraction and Production sector average. While current disclosures
business, as described in Chapter 4 page 41. In addition, as remain aligned with TCFD recommendations, MedcoEnergi is
discussed in Chapter 7, climate-related issues are integrated into the progressing toward closing identified gaps against International
Sustainability Assessment Guidelines under the Medco Project Financial Reporting Standards (IFRS) S1 and S2 requirements in
Excellence Process (MPEP) framework. 2025. This includes preparing for adoption under the forthcoming
Indonesian Sustainability Disclosure Standards 1 and 2 (Standar
To support consistent and structured climate adaptation planning, Pengungkapan Keberlanjutan/SPK 1 dan 2).
MedcoEnergi introduced Climate Change Risk Assessment (CCRA)
The following section provides an update of our climate action and performance, structured in accordance with the disclosure requirements
of IFRS S2:
IFRS S2
Recommended Disclosures Summaries of Progress by 2025 Links
Core Element
Governance a. The governing body or individuals • Formalised the use of the Climate Change Sustainability Report
responsible for overseeing climate-related Risk Assessment Guidelines, which 2025, Chapter 4 page
risks and opportunities. provides the basis for internal governance to 39, 41 Chapter 6 page
b. Management’s role in the governance, conduct in-house CCRA. 65-66.
controls, and procedures used to monitor • Conducted climate change capability-
and manage climate-related risks and building, including sessions for executives
opportunities. and senior leaders.
• Embedded climate change mitigations and
adaptations into the Sustainability
Assessment Guidelines.
Strategy The climate-related risks and opportunities on: • Conducted the fourth annual CCRA using Sustainability Report
scenario analysis consisting of qualitative 2025, Chapter 4 page
a. Climate-related risks and opportunities that physical risk assessments of 25 assets and 41 and Chapter 6 page
could affect the company’s prospects. quantitative risk assessments of 2 assets, 68-71.
b. Business model and value chain: The i.e. South Natuna Sea Block B and
current and anticipated effects of these Sumbawa Solar PV.
climate-related risks and opportunities on
the company’s business model and value
chain.
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IFRS S2
Recommended Disclosures Summaries of Progress by 2025 Links
Core Element
Strategy c. Strategy and decision-making, including • Used the CCRA Platform1 to conduct the
climate-related transition plan aforementioned qualitative physical risk
d. Financial position, financial performance, assessments.
and cash flows and their anticipated effects • Enhanced the depth of the climate change
over the short, medium and long term. risk assessments by analysing the impact of
e. Climate resilience of the company’s climate hazards at the equipment level,
strategies and its business model to enabling the financial impacts to be
climate-related changes. identified at the asset level.
• Documented mitigation and adaptation
measures implemented by asset teams
where quantitative assessments were
conducted.
Risk a. The processes and policies used to identify, • Applied the CCRA Guidelines to standardise Sustainability Report
Management assess, prioritise and monitor climate- the assessments and management of 2025, Chapter 4 page
related risks and opportunities, including if physical and transition risks. These included 41
and how the company uses climate-related prioritising assets, assessing periodic risks,
scenarios. and identifying measures to mitigate risks
b. To which extent the company integrates its and adapt to climate change. Identified risks
processes to manage climate-related risks and treatments were integrated into the
and opportunities in its risk management quarterly risk register and site-level
system. monitoring and reporting processes.
Metrics and a. Climate-related metrics: Scope 1,2, and 3 • Maintained our commitment to achieve net Sustainability Report
Targets GHG emissions; transition and physical zero for Scope 1 and Scope 2 emissions by 2025, Chapter 6 page
risks; opportunities. 2050 and Scope 3 emissions by 2060. 64, 71-75, 79-80
b. Climate-related targets: quantitative and • Achieved 2025 interim targets for Scope 1
qualitative targets to monitor progress. and 2 GHG emissions and methane
c. Climate-related targets: approaches to reductions.
setting and reviewing each target and • Monitored how renewable power plants
monitoring progress against each target. were established and operated to support
progress toward 2030 interim targets.
• Improved data quality and disclosure to align
with the IFRS S2 requirements.
• Strengthened how GHG monitoring and
internal carbon pricing were implemented by
further integrating these practices into one
of the factors for investment decision-
making, business models, project and
operational planning to determine downside
risks and business impact.
In addition to integrating climate factors into business processes gradually embedding just transition considerations into climate-
and risk management, we also recognise that the transition toward related planning and decision-making processes, guided by
a lower-carbon energy system must be managed in a fair, inclusive, international frameworks such as the International Labour
and people-centred manner. As outlined in Chapter 4, we have Organization’s (ILO) Just Transition Guidelines, the Paris Agreement,
begun formalising our Just Transition Plan in connection with our and the UN Guiding Principles on Business and Human Rights.
long-term sustainability strategy. This approach reflects our
commitment to ensure that climate actions deliver environmental MedcoEnergi’s approach to a just transition is guided by four priority
benefits as well as positive social and economic outcomes for areas, as outlined in the figure below. We aim to ensure that the
workers, communities, and other stakeholders who may be affected shift toward a lower-carbon future remains fair and inclusive. Our
by the energy transition. just transition considerations focus on stakeholders who may be
most affected by transition-related changes, including workers, local
At this stage, we are strengthening internal awareness and capacity communities, suppliers, and vulnerable groups such as women,
across relevant functions to better understand the workforce and children, Indigenous Peoples, and migrant workers.
community implications of decarbonisation initiatives. We are
1 The CCRA platform is MedcoEnergi’s internal tool for conducting qualitative physical climate risk assessments. It uses climate projections from an industry-leading global climate
database and incorporates asset-specific vulnerability data to screen potential exposures to different climate hazards.
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68 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Priority Areas
Workforce Retention & Investing in training and workforce development programmes to equip our employees with the skills
Reand/or Upskilling they need for emerging roles in a low-carbon economy.
Access to Decent and Promoting inclusive access to safe and environmentally sustainable employment opportunities across
Green Jobs our operations and supply chains.
Social Dialogue & Maintaining inclusive and continuous engagement with our stakeholders, especially workers and local
Stakeholder Engagement communities to build trust and shape fair transition strategies.
Identifying and managing the potential social impacts of our transition and supporting appropriate
Social Protection & Social
measures for social protection and well-being, as well as managing potential social impacts
Impact Management
associated with climate transition measures.
Impacted Stakeholders
Suppliers &
Workers Communities Business Partners Vulnerable Groups
In implementing our Just Transition Plan, Medco Power continued to advance preparations in 2025 for a collaborative project with the
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH under the develop funding programme of the German Federal
Ministry for Economic Cooperation and Development (BMZ). Together, we refined the project design and reviewed the legal agreements
required for implementation. Scheduled to begin in 2026 and run through 2028, the project aims to strengthen skills within Indonesia’s
renewable energy sector by developing and expanding training programmes on renewable energy technologies. This includes
training‑of‑trainers modules, pilot training for employees, students, and local communities, as well as the development of policy briefs to
share best practices across industries and government institutions. Through its focus on workforce capability, education, and
multi‑stakeholder collaboration, the initiative contributes to SDG 4 (Quality Education), SDG 7 (Affordable and Clean Energy), SDG 8 (Decent
Work and Economic Growth), and SDG 17 (Partnerships for the Goals), supporting national efforts to address skills gaps and advance
Indonesia’s transition toward a cleaner energy system.
Assessing Our Climate-Related Risks and Opportunities
We continue to assess climate‑related risks and opportunities to identify and analyse both physical and transition factors relevant to our
business and operations. Over time, we are expanding the scope of assets and locations covered by these assessments. The assessments
are conducted using the frameworks and methodologies outlined in our Climate Change Risk Assessment (CCRA) Guidelines, which provide
a structured basis for evaluating potential climate impacts. Scenario analyses are applied to consider climate‑related effects across short‑,
medium‑, and long‑term time horizons, with further details described in our TCFD Report.
Physical Risk Assessments
Physical climate risk assessments follow a structured process that includes asset selection and prioritisation, as well as the identification,
analysis, and evaluation of relevant risks. Climate hazards are identified and assessed using datasets derived from global climate models,
while exposure and vulnerability are evaluated based on the characteristics and operating conditions of the assets being assessed. Two
contrasting climate scenarios are used to capture potential future conditions, and risks are evaluated through a vulnerability‑based framework
that considers hazards, exposure, and vulnerability. Depending on materiality, risks are assessed qualitatively and, where required, are
evaluated further through more detailed quantitative analyses of financial impacts. The results are used to prioritise risks and inform
appropriate risk management and climate adaptation measures.
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Qualitative Physical Risks Assessments
In 2025, we expanded the scope of qualitative physical risk assessments to include 25 additional assets, bringing the total number of assets
qualitatively assessed to 80. These assessments were conducted using MedcoEnergi’s CCRA platform, which processes climate data into
indicative physical risk levels. These assessments consider key aspects such as climate scenarios, timeframes, and climate risk drivers, as
summarised in the figure below.
4 Countries 2 Timeframes 8 Climate Risk Drivers
• Indonesia • Oman Extreme Heat, Coastal Floods, Inland Floods (Extreme
Rainfall), Inland Flood (River Flooding), Cyclone and
• Mid-term (2030) • Long-term (2050)
• Thailand • Singapore Wind, Water Scarcity, Rainfallinduced Landslide and
Wildfires.
80 Assets 2 Scenarios
• Oil & Gas: Onshore & • Power: Natural Gas, Thermal & Share Socioeconomic Pathway • 1-2.6 Low Emission (1.7°C in
Offshore Fossil Fuels, Hydropower, (SSP) referring to 2041-2060)
• Office, Warehouse, Geothermal, Solar Photovoltaic Intergovernmental Panel on • 5-8.5 High Emission (2.4°C in
Jetty, Airport • Mineral Processing Climate Change: 2041-2060)
These risk levels reflect initial screening results under a high-carbon climate scenario, representing a worst-case outlook, and do not take into
account existing or planned mitigations. These findings highlight the importance of climate adaptation in addressing potential risks,
particularly those related to extreme weather events. The results of the screening-level qualitative assessment by asset type are presented
below.
Qualitative Climate Screening Level Assessment Results
Landslides
Wildfires
Flooding
Flooding
Winds &
Extreme
Extreme
Extreme
Rainfall-
Scarcity
Induced
Coastal
Rainfall
Storms
Floods
Water
River
Heat
Asset Type
Baseline
Baseline
Baseline
Baseline
Baseline
Baseline
Baseline
Baseline
2030
2050
2030
2050
2030
2050
2030
2050
2030
2050
2030
2050
2030
2050
2030
2050
Oil & Gas: Offshore
Power: Geothermal
Power: Solar PV
Power: Thermal & Fossil Fuels
Power: Mini Hydro
Oil & Gas: Onshore
Real Estate: Office
Transport: Jetty & Airport
Mineral Processing
Minimal Low Moderate High Very High
Risk Level Index:
0 ≤ Score < 1 1 ≤ Score < 2 2 ≤ Score < 3 3 ≤ Score < 4 Score ≥ 4
Based on the qualitative assessments, critical assets and climate hazards identified as having the greatest potential impact were selected for
further analysis through quantitative assessments. They include validations using site-specific data and the estimation of potential financial
impacts to provide a deeper understanding of material climate-related risks.
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70 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Quantitative Physical Risks Assessments
We continued our quantitative physical climate risk assessments in 2025 to two additional assets: Sumbawa Solar PV and South Natuna Sea
Block B. These assessments build on the outcomes of the qualitative screening; with climate hazards selected for further analyses based on
their materiality and relevance to asset operations. The analyses apply both low- and high-emissions climate scenarios across the same
short-, medium-, and long-term timeframes, consistent with the qualitative assessments. For each prioritised risk, financial impact models
were developed using inputs and assumptions provided by MedcoEnergi subject matter experts to estimate potential costs and performance
implications under projected climate conditions.
2025 Assessments Results
South Natuna Sea Block B Sumbawa Solar PV
South Natuna Sea Block-B anticipates two climate hazards, Based on our assessment, Sumbawa Solar PV asset is
which are extreme wind and water stress. potential to be exposed to two climate hazards, which are
extreme heat and flood. The potential financial impacts arising
Production curtailment from our facilities due to prolonged from extreme heat across all timeframes and scenarios range
consecutive periods of extreme wind may defer the oil lifting between approximately USD 3,500 in 2030 and USD 20,000
schedule at the South Natuna Sea Block B Asset. Mitigation in 2042. The potential financial impact due to 8-year flood
measures for oil lifting disruptions due to extreme wind cycle is estimated to be USD 585,000 in 2030 and USD
include adjusting lifting volumes to extend allowance days 835,000 in 2042.
and avoid production curtailment during monsoon season.
Continuous wind forecasting and monitoring will support To mitigate extreme heat risk, we developed written Standard
operational planning within safe weather windows, Operating Procedure (SOP) for PV operations under extreme
complemented by regular risk assessments that consider heat conditions, assessed fire hazard protection, implemented
trends of increasing high‑wind days. regular maintenance programmes, and progressing in applying
engineering and design measures, and reviewing heat-
Meanwhile, the potential financial impact to mitigate water resilient components.
stress at Matak Shore Base, Matak Island, Riau Islands is
approximately USD 550,000 for freshwater purchase and Sea To mitigate flood risks, we evaluated the existing facility
Water Reverse Osmosis (SWRO) installation targeted in-place design, maintained drainage system, and established
in 2026. Emergency Response in anticipation of potential flooding in
near future.
Based on the above results from the quantitative assessments of South Natuna Sea Block B and Sumbawa Solar PV, the CCRA indicate that
the potential financial impacts of physical climate risks remain relatively limited within the overall risk exposure. We maintain adequate
insurance coverage to safeguard our assets and support operational activities. Insurance packages are reviewed at least annually to ensure
they are fit for purpose and cost efficient. Current insurance policies cover loss arising from a natural catastrophe.
We also conducted Quantitative Climate Physical Risk Assessments in 2023 for Block A and JOB Tomori, and in 2024 for Corridor and
MRPR. Details of the assessment results are presented in the Sustainability Reports for 2023 and 2024.
Transition Risk and Opportunity Assessments
Quantitative transition risks assessments were conducted in 2024 and remain relevant throughout the 2025 reporting year as transition-
related risks are primarily assessed at the business unit level and are expected to remain broadly consistent in the short term. The
assessments applied science-based scenario analyses from the International Energy Agency (IEA), including the Stated Policies Scenario
(STEPS) and Announced Pledges Scenario (APS), to evaluate potential financial and operational impacts of the energy transition across short-,
medium-, and long-term timeframes. The information about our assessments is shown in the figure below.
4 Countries 2 Timeframes 1 Transition Driver
• Short term • Mid term • Long term
• Indonesia (2025-2030) (2030-2040) (2040-2050) • Carbon Pricing
80 Business Units 2 Scenarios
Climate Scenarios from • Stated Policies Scenario (STEPS) as high emission scenario
• Oil & Gas • Power
International Energy Agency (IEA): • Announced Pledges Scenario (APS) as low emission scenario
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Carbon pricing emerged as a key transition risk with potential Using this methodology, potential financial exposures are
financial implications for MedcoEnergi. Indonesia’s Presidential assessed based on our gross operational controls across both
Regulation No. 98/2021 established the framework for carbon Oil & Gas and Power assets. For the short-term, if the carbon
pricing through carbon trading and results-based payments, while tax currently applied to coal power plants (USD 2.07/tCO2e) is
Law No. 7/2021 introduces a carbon tax initially applied to coal-fired extended to the Oil & Gas sector, the potential impact on net
power plants. Although implementation guidelines for the oil & gas cash flow could reach up to approximately USD 2 million in
sector have not yet been issued, these developments indicate 2025. For the medium-term horizon, assuming carbon price
potential future exposures to carbon costs. trajectories are aligned with IEA scenarios (USD 33/tCO2e under
STEPS and USD 61/tCO2e under APS), the potential exposure
To assess these risks, MedcoEnergi applies an internal carbon could reach up to approximately USD 9 million in 2033.
pricing mechanism, which was updated and monitored in 2025 in
line with regulatory developments and market benchmarks. Given the uncertainty regarding the timing, scope, and
The methodology considers both carbon tax and cap-and-trade application of future regulations, these estimates are presented
mechanisms. Potential costs are estimated by applying carbon price as conservative, worst-case scenario assumptions.
assumptions to projected emissions under different emission The assessments are based on assured 2024 GHG emissions
scenarios, including cases with and without emissions reduction data and covers operated Oil & Gas and Power assets using the
measures. best available information.
Rooted in Energy and Ecology
This picture is the 3rd winner under the ‘Environment & Climate Change’ category of the MedcoEnergi 2025 Photography Competition
Our Environmental Footprint at a Glance
Key Oil & Gas Total Scope 1 & 21 GHG Emissions Reduction Performance between 2024 and 20252
Year-on-Year
Year-on-Year
Oil & Gas Amount
Percentage
Assets Reductions
Reductions
(tCO2e)
Oman
Tarakan 41% 5,818
Tarakan Bangkanai 28% 961
41%
South Sumatra
26% 47,083
Block
Bangkanai
28%
Madura
25% 15,269
Offshore
Corridor Corridor 4% 87,950
4%
South
Further details on initiatives to reduce GHG
Sumatra Block emissions at our Oil & Gas assets are presented in
26% Madura Offshore the Strategic Initiatives section later in this
25% chapter.
1 We disclose absolute Scope 2 GHG emissions using Market-Based Method.
2 The total values of Scope 1 and Scope 2 GHG emissions have been assured, and we performed internal calculations on the performance of the Scope 1 and Scope 2 GHG emission
reductions.
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2025 Oil & Gas Scope 1 & 2 GHG1 and Methane Emissions Reduction Highlights
0.4%
Increment of Scope
30%
Reduction of Scope
The increases in 2025 were driven by higher production
at South Natuna Sea Block B. Nevertheless, the
implementation of reduction initiatives comprised of:
• Operational improvements
1 & 2 GHG emissions 1 & 2 GHG emissions
in 2025 from 2024 in 2025 from 2019 • GHG emission reduction projects
9% 40%
The increases in 2025 were driven by higher production
at South Natuna Sea Block B. Despite this, abatement
efforts continued, including:
Increment of methane Reduction of methane • Fuel gas optimisation initiatives
(CH4) emissions in 2025 (CH4) emissions in 2025 • Flare gas recovery measures
from 2024 from 2019 • Gas Turbine Compressor (GTC) deactivation
2025 Oil & Gas Scope 1 & 2 GHG and Methane Emission Reductions Against Our Interim Target
Achieved
We achieved the 2025 interim targets from base
Strategies for further reductions, among others:
• Fuel optimisations
• Electrification
year 2019 to reduce Scope 1 and 2 GHG and • Flare reductions
methane emissions. • Renewable energy
On Track
We are on track to achieve our 2030 interim targets to
Strategies for further reductions include, among others:
• Flare reductions
• Storage tank blanketings using nitrogen
further reduce both Scope 1 and 2 GHG and methane • Facility footprint optimisations
emissions and on our trajectory to achieve net zero.
Oil & Gas Scope 1 and Scope 22 GHG Emissions Oil & Gas Scope 1 GHG Emissions from Methane (CH4)
(tCO2e) (tCO2e)
6,000,000 180,000
5,420,173 163,595
160,000
5,000,000 4,772,380 4,623,180
4,369,537 4,249,555 140,000 137,973
132,406
134,408
4,000,000 3,798,579 3,812,143 120,000
100,000 98,520
3,000,000 88,939 97,379
80,000
2,000,000
60,000
1,000,000 40,000
20,000
0
2019 2020 2021 2022 2023 2024 2025 0 2019 2020 2021 2022 2023 2024 2025
1 The total values of Scope 1 and Scope 2 GHG and methane emissions have been assured, and we performed internal calculations on the performance of the Scope 1 and Scope 2 GHG
and methane missions reductions.
2 We disclose absolute Scope 2 GHG emissions using Market-Based Method.
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Emission Reductions
The Emission Reduction pillar of our Climate Change Strateg y continues to focus on lowering emissions from our operations and value
chains while improving energy and resource efficiency. Alongside operational measures, we continue to consider the role of nature-based
solutions and technology for carbon sequestration as part of our broader approach to managing and reducing our carbon footprint.
GHG Emissions Performance
We continue to maintain consistent tracking, management, and reporting of Scope 1 and Scope 2 GHG emissions while continuing to
strengthen our Scope 3 disclosures. Following the first disclosure of assured Scope 3 emissions in the previous year, we continued to
strengthen data quality and methodologies, alongside enhancing engagements with downstream value chain partners to improve the
management of Scope 3 emissions. Our standardised Air and GHG Emissions Calculation Tools remain compliant with applicable laws and
regulations and are aligned with relevant standards and frameworks1.
Direct GHG Emissions (Scope 1)
Our Scope 1 GHG emissions include direct emissions from our Oil & Gas and Power assets, primarily arising from natural gas combustion
and operational flaring.
Oil & Gas
In 2025, absolute Scope 1 GHG emissions2 from our Oil & Gas Type of GHG
assets amounted to 3,739,916 tCO2e, remained relatively flat 2023 2024 2025
Emissions Source
year-on-year. There was an increased emissions driven primarily by
higher production at South Natuna Sea Block B. Despite the Combustion 3,835,109 3,360,378 3,171,554
increase, GHG emission reduction efforts persisted through from
operational efficiency improvements. The adjacent table presents a Flaring 317,247 312,829 466,449
breakdown of Scope 1 GHG emission sources in tCO2e. The table Venting 28,093 23,000 21,215
details the sources of our Scope 1 GHG emissions in tCO2e3:
Process (feedstock) 2,155 864 622
In 2025, our CH4 emissions increased by 9% compared with the
previous year, driven by higher flaring and fugitive emissions at Fugitives 40,597 41,148 80,076
South Natuna Sea Block B due to increased production from
Terubuk and Forel. The table below presents detailed CH4 emission TOTAL 4,223,200 3,738,220 3,739,916
values as part of our Scope 1 GHG emissions:
Power Description 2023 2024 2025
In 2025, absolute Scope 1 GHG emissions4 from our power
business amounted to 1,500,019 tCO2e, compared to 1,379,610 Scope 1 GHG emissions 98,520 88,939 97,379
tCO2e in the previous year. The variance is due to increasing natural from CH4 in tCO2e
gas fuel consumption as a result of increasing electricity production. Percentage of Scope 1 2.3% 2.4% 2.6%
For our newly operated power asset, East Bali Solar PV and Ijen GHG emissions from
Geothermal, the scope of GHG emissions is limited to direct CH4
emissions arising from operational vehicles and electricity
generation activities under our operational control.
Oil & Gas and Power Absolute Oil & Gas and Power
Scope 1 GHG Emissions Scope 1 GHG Emissions Intensity
8,000,000 400 1.0
0.9
GHG Emission Intensity for Oil & Gas
6,338,173
GHG Emission Intensity for Power
324 314 314
(tCO2e/1,000 TOE HC Product)
5,710,288 5,639,825 311 291 289 298 0.8
6,000,000 5,540,348 5,463,278 5,117,830 300
5,419,585 5,239,935 0.7
(tCO2e/MWh)
4,760,975 0.56
4,605,470 4,345,147
4,223,200 0.53 0.54 0.6
0.49 0.50 0.50
tCO2e
4,000,000 3,738,220 3,739,916 200 0.5
0.45
0.4
0.3
2,000,000 100
1,500,019 0.2
1,416,625
1,365,141 1,379,610
918,588
857,808 0.1
779,373
0 0 0.0
2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025
Oil & Gas Power Total Oil & Gas and Power Oil & Gas Power
1 For further information on the details of GHG emissions calculation methodology, please refer to the 2025 GRI Performance Data in GRI 305 – Emissions.
2 The list of assets that calculate GHG Scope 1 Emissions in 2025 — International: Oman KSF and Thailand; Indonesia: Rimau, South Sumatra Block, Lematang, Bangkanai, Tarakan, Block
A, Palembang Office, Banda Aceh Office, South Natuna Sea Block B, Sampang, Madura Offshore, Corridor and Jakarta Office.
3 For further information on the trends and statistics of this Scope 1 GHG emission data, please refer to the 2025 GRI Performance Data in GRI 305 – Emissions for Oil & Gas.
4 The list of assets in 2025 — ELB, EPE, MPE, MEB, DEB, MRPR, Cibalapulang Mini-hydro, Pusaka Mini-hydro, East Bali Solar PV (limited to operational vehicles of East Bali Solar PV as
other sources are not yet under East Bali Solar PV operational control), Ijen Geothermal and MPI Headquarters.
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Indirect GHG Emissions (Scope 2)
Our Scope 2 GHG emissions represent indirect emissions from purchased electricity and steam.
Oil & Gas Oil & Gas and Power Absolute
Scope 2 GHG Emissions
In 2025, we continued to report Scope 2 GHG emissions using the
market-based approach. Scope 2 emissions from our Oil & Gas 80,000
assets totalled 72,2271 tCO2e, compared with 60,359 tCO2e in the 70,000
72,227
prior year. The change reflects ongoing reliance on purchased 60,359
electricity and steam at certain assets, particularly steam-related 60,000
operations at Oman KSF. 50,000
Power 40,000
tCO2e
30,000
Scope 2 GHG emissions from our power assets in 2025 amounted 24,390 26,354
to 4,570 tCO2e, compared with 1,726 tCO2e in the previous year2. 20,000 17,710
11,405
The increase in GHG Scope 2 emissions is mainly driven by 10,000
unplanned outages at MRPR due to equipment reliability issues. 588
819 1,760 1,566 1,726
4,570
0 50 57
These outages led to increased utilisation of purchased electricity
during start‑up and conditioning activities. 2019 2020 2021 2022 2023 2024 2025
Oil & Gas Power
Indirect GHG Emissions (Scope 3)
Scope 3 GHG emissions comprise of indirect emissions from across our value chain, beyond Scope 1 and Scope 2 emissions. In 2025, we
continued to apply the operational control approach for Scope 3 emissions and further enhanced data quality and internal processes
supporting disclosures. Our Scope 3 inventory focuses on material categories, including Category 3 (fuel-and energy-related activities),
Category 10 (processing of sold products), and Category 11 (use of sold products)3,4. Calculations continue to follow the GHG Protocol and
relevant industry guidance, supported by emission factors and data from recognised sources, including downstream value chain partners5.
Oil & Gas Absolute Scope 3 Power Absolute Scope 3
GHG Emissions in 2025 (tCO2e) GHG Emissions in 2025 (tCO2e)
50,804 1,886,165
0.2% 8.2%
255,979
100%
21,133,218
91,6%
Category 3: Category 10: Category 11:
Fuel- and energy-related activities (not Processing of sold product Use of sold product
included in Scope 1 or Scope 2)
1 For further information on the details of Scope 2 GHG emission data, please refer to the 2025 GRI Performance Data in GRI 305 – Emissions for Oil & Gas.
2 The list of assets in 2025 include ELB, EPE, MPE, MEB, DEB, MRPR, Cibalapulang Mini-hydro, Pusaka Mini-hydro, East Bali Solar PV, Ijen Geothermal and MPI Headquarters.
3 For Oil & Gas, the list of assets that calculate GHG Scope 3 Emissions in 2025 — International: Oman KSF, Thailand and Singapore Office; Indonesia: Rimau, South Sumatra Block,
Lematang, Bangkanai, Tarakan, Block A, Palembang Office, Banda Aceh Office, South Natuna Sea Block B, Sampang, Madura Offshore, Corridor and Jakarta Office. Oman KSF is not
included in Category 10 & 11 calculation due to the production belonging to Petroleum Development Oman (PDO).
4 For Power, the list of assets in 2025 include ELB, EPE, MPE, MEB, DEB, MRPR, Cibalapulang Mini-hydro, Pusaka Mini-hydro, East Bali Solar PV, Ijen Geothermal and MPI Headquarters.
5 For Oil & Gas, Scope 3 Category 3 includes well-to-tank emissions for purchased fuel, electricity, steam, and the transmission and distribution losses of purchased electricity. Scope 3
Category 3 emissions from purchased electricity, including transmission and distribution losses, are calculated using location-based method. However, the calculations exclude
transmission and distribution losses of purchased steam due to on-site steam generated by a third-party company. For Power, Scope 3 Category 3 includes well-to-tank emissions for
purchased fuel, electricity and the transmission and distribution losses of purchased electricity.
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Advancing Creating Strengthening Our PT Medco Energi Internasional Tbk Our Health and Opportunities People and Digital 2025 Sustainability Report Safety Culture for Communities Transformation Value. Focus. Growth. 75 Energy Performance We continue to improve energy efficiency as part of our efforts to reduce environmental impacts. Energy audits are conducted on a regular basis to monitor consumption patterns and identify opportunities to improve performance. Further details on energy consumption and energy intensity calculations are provided in the GRI Performance Data section. Oil & Gas In 2025, total energy consumption across our Oil & Gas assets amounted to 33,817,389 GJ, compared to 35,967,423 GJ in the previous year, reflecting a 6% reduction year on year. Energy consumption from renewable sources also decreased by 6% compared to the previous year. This decrease was primarily driven by operational improvements, the implementation of several GHG emission reduction initiatives, and reduced drilling activities in Madura Offshore. Oil & Gas Energy Consumption by Source1 Description 2023 (GJ) 2024 (GJ) 2025 (GJ) Electricity Consumption 177,400 246,982 283,9112 Renewable Energy Sources (e.g., biodiesel B30, B35, B40, 264,407 332,817 312,4173 gasohol E5 and solar energy) Non-renewable Energy Sources (e.g., gasoline, natural gas, 38,296,845 34,899,653 32,563,5394 diesel, and crude oil) Steam Consumption - 487,972 657,5225 TOTAL 38,738,652 35,967,423 33,817,3892,3,4,5,6,7 Energy Intensity (GJ/TOE HC Product) 2.88 2.86 2.843,4,5,6,7,8 Power Total energy consumption for our power assets in 2025 reached 15,668,894 GJ, compared to 14,568,183 GJ in the previous year, representing a 7.6% increase. Variations in energy consumption were influenced by the increasing amount of electricity production and natural gas consumption. Even though our energy consumption increased, our energy intensity decreased due to higher electricity generation following the commissioning of new renewable power plants (East Bali Solar PV and Ijen Geothermal). Power Business Energy Consumption by Source9 Description 2023 (GJ) 2024 (GJ) 2025 (GJ) Electricity Consumption 6,070 6,675 17,551 Renewable Energy Sources (e.g., biodiesel, B40, solar energy 570 434 3,52310 and hydropower) Non-renewable Energy Sources (e.g., gasoline, diesel, and 25,226,144 24,567,004 26,603,34711 natural gas) Electricity Sold 10,132,680 10,005,930 12,270,75012 TOTAL ENERGY CONSUMPTION13 15,100,104 14,568,183 15,668,89414 Energy Intensity (GJ/MWh) 5.36 5.23 4.72 1 The list of assets refers to 2025 GRI Performance Data GRI 302 – Energy for Oil & Gas. 2 The increase in purchased electricity consumption is due to full year implementation of power conversion to national grid in Lematang. 3 The decrease in energy consumption from renewable sources is due to lower biodiesel fuel consumption in 2025, which was mainly driven by fewer drilling activities in Madura Offshore. 4 The decrease in energy consumption from non-renewable sources is due to lower fuel gas consumption, which was mostly attributed to operational improvements and several projects to reduce GHG emissions. 5 The increase in purchased steam consumption is due to our steam flood operations in Oman KSF. 6 The list of assets in 2025 — International: Oman KSF, Thailand and Singapore Office; Indonesia: Rimau, South Sumatra Block, Lematang, Bangkanai, Tarakan, Block A, Palembang Office, Banda Aceh Office, South Natuna Sea Block B, Sampang, Madura Offshore, Corridor and Jakarta Office. 7 The list of assets in 2025 that consume energy from purchased electricity consist of Rimau, South Sumatra Block, Lematang, Tarakan, Block A, Bangkanai, Palembang Office, Banda Aceh Office, South Natuna Sea Block B, Sampang, Thailand, Oman KSF, Singapore Office, Jakarta Office and Corridor. 8 The decrease in energy intensity is due to operational improvements and several projects to reduce GHG emissions. 9 The list of assets refers to 2025 GRI Performance Data GRI 302 – Energy for Power. 10 The increase in renewable energy consumption is mainly driven by higher internal consumption of self-generated electricity from hydropower plants in Cibalapulang Mini-hydro and Pusaka Mini-hydro. 11 The increase of non-renewable energy consumption is mainly due to increasing amount of electricity production and natural gas consumption. 12 The list of assets in 2025 — ELB, EPE, MPE, MEB, DEB, MRPR, Cibalapulang Mini-hydro, Pusaka Mini-hydro, East Bali Solar PV (limited to operational vehicles of East Bali Solar PV as other sources are not yet under East Bali Solar PV’s operational control), Ijen Geothermal and MPI Headquarters. 13 Total energy in power is calculated as the sum of non-renewable fuel consumed, renewable fuel consumed, electricity purchased for consumption, self-generated electricity which are not consumed, minus electricity sold. 14 The increase of energy consumption is mainly due to increasing amount of electricity production and natural gas consumption.
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Strategic Initiatives
We continued to reduce GHG emissions across our Oil & Gas assets in 2025.
We implemented 44 initiatives in 2025, resulting in an estimated reduction of 95,481 tCO2e
Additionally, a one-time reduction of 47,362 tCO2e was achieved through initiatives such as optimising operating modes, deactivating
compressors, and avoiding flares from well clean-up & testing
Total investment in GHG reduction programmes and
Of this, CH4 emissions were reduced by 1,834 tCO2e,
initiatives in 2025 amounted to:
with a one-time reduction of 665 tCO2e USD 7.5 million
We continue to prioritise methane management in our gas Methane Partnership (OGMP) 2.0, the United Nations Environment
operations, recognising methane’s significantly higher global Programme’s (UNEP) flagship initiative for improving methane
warming potential compared to carbon dioxide. As part of our measurement and reporting in the Oil & Gas sector. Building on
Climate Change Strategy and interim targets, we are strengthening previous pilot activities, we are progressing initiatives related to
methane management by reducing emissions from flaring, fugitive direct methane measurement, the optimisation of flaring practices,
sources, and venting. Our efforts align with applicable Government and improvements to monitoring and control systems.
of Indonesia regulations and global initiatives aimed at achieving
zero routine flaring by 2030. In 2025, we advanced actions to reduce Overall, our emissions reduction efforts reflect ongoing
routine and non-routine flaring at selected assets and continued improvements in operational performance across our assets. These
studies and implementation plans to eliminate routine flaring across efforts are supported by technological upgrades, process
our Onshore, Offshore, and Corridor operations. optimisations, and the gradual transition to cleaner energy sources,
contributing to greater operational efficiency. We remain committed
To further enhance transparency and performance, we continued to further reducing emissions through strategic initiatives that
strengthening our methane management approach in 2025. One of support our long-term target of achieving net-zero emissions for
our subsidiaries, PT Medco E&P Indonesia, joined the Oil & Gas Scope 1 and Scope 2 emissions by 2050.
Onshore
Our onshore assets continued to strengthen decarbonisation efforts in 2025 through a series of initiatives focused on energy efficiency and
reducing emissions. These efforts included optimising operations, improving equipment performance, managing flares and methane, and
deploying small-scale renewable energy solutions to support operational needs. Together, these actions contributed to reducing fuel
consumption, fugitive and flaring emissions, and overall GHG emissions. The initiatives implemented during the year, along with their
estimated annual emission reductions, are summarised in the graphic below.
Emissions reductions were achieved through waterflood optimisation, solar
Rimau Estimated annual emission reduction of 34.4 tCO2e lighting installation, decommissioning of Kerang Station, and fugitive
emissions monitoring and repairs.
South Switched power supply from on-site generation to the PLN grid, supported
Sumatra Block Estimated annual emission reduction of 993 tCO2e by Renewable Energy Certificates (RECs).
Switched power supply from on-site generation to the PLN grid, supported
Bangkanai Estimated annual emission reduction of 168.25 tCO2e by Renewable Energy Certificates (RECs).
Installed a small solar PV system at Water Injection Well to power lighting
Estimated annual emission reduction of 33 tCO2e and basic operational needs.
Estimated annual emission reduction of 2,779 tCO2e Cleaned boilers to improve efficiency and reduce fuel consumption.
Block A
Mechanical and chemical cleaning improved Sulphur Recovery Unit
Estimated annual emission reduction of 4,367 tCO2e performance and reduced steam and fuel use.
Maintenance optimisation stabilised the Acid Gas Removal Unit (AGRU)
Estimated annual emission reduction of 2,498 tCO2e and reduced flaring and fuel consumption.
Optimised boiler temperature settings to improve efficiency and reduce
Estimated annual emission reduction of 59.56 tCO2e fuel consumption in the dehydration unit.
Lematang
Estimated annual emission reduction of 3,970 tCO2e Optimised the thermal oxidiser to lower fuel consumption.
Thermal Oxidiser Fuel Optimisation at Lematang
Between December 2024 and September 2025, fuel optimisation was carried out at the Lematang Thermal Oxidiser to address high fuel gas
consumption. Fine-tuning of fuel gas control valves, quenching air supply, and operating parameters reduced fuel consumption from
0.8 MMSCFD to 0.6 MMSCFD, leading to an estimated GHG emissions reduction of 3,970 tCO2e per year.
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Boiler Efficiency Improvement at Block A Solar PV Installation for Remote Well Operations at Block A
In 2025, a boiler cleaning programme was implemented at Block A A 6 kWp solar photovoltaic (PV) system was installed at the JR #38
to address declining boiler efficiency and rising fuel intensity. This water injection well in Block A to supply electricity for lighting and
programme improved Boiler B efficiency from 75.6% to 81.3%, security post operations, including communication device charging
resulting in the increment in steam generation per unit of fuel input and basic facility needs. Located far from the Central Processing
by 2,300 lb/hr per BBTUD. This efficiency gain is equivalent to a Plant (CPP) and without grid connection, the well previously relied
reduction in fuel consumption of 0.14 MMSCFD and a on alternative power sources. The solar PV installation supports
corresponding GHG emissions reduction of 2,779 tCO2e per year. renewable energy in remote operations while reducing reliance on
The improvements also enabled additional gas sales, which diesel generators or grid electricity. The system delivers energy
contributed to additional revenue. efficiency of 6 kWp and reduces GHG emissions by an estimated 33
tCO2e per year.
Corridor
In 2025, decarbonisation efforts across the Corridor asset focused on optimising operations, energy efficiency, and reducing flaring and fuel
gas use. These initiatives targeted key emission sources while maintaining operational reliability and production performance, contributing to
lower GHG and methane emissions across Corridor operations.
Estimated reduction of 79,332 tCO2e Estimated avoidance of 8,618 tCO2e
from various process optimisation initiatives in 2025 from flare avoidance from well clean-up and testing in various
wells as a one time reduction in 2025
Well clean-up and testing activities were optimised by directing flows to
Well Clean-up Estimated annual emission avoidance of 8,618 tCO2e
production facilities where feasible, reducing flaring and minimising
and Testing (GHG), 648 tCO2e (methane) production losses.
Multiple On-grid solar PV systems were installed at Suban, Grissik, Sumpal, and
Plants Estimated annual emission reduction of 934 tCO2e Dayung facilities to support renewable electricity use.
The operating mode adjustment of Suban Compression Project (SBCP) gas
Estimated annual emission reduction of 13,424 tCO2e compressors to reduce the number of running units.
Estimated annual emission reduction of 1,179 tCO2e
Conversion of the tank blanketing system from natural gas to nitrogen.
(GHG), 1,169 tCO2e (methane)
Suban
Optimisation of the glycol regeneration system by supplying two process
Estimated annual emission reduction of 4,169 tCO2e trains from a single regeneration unit.
Optimisation of Suban Gas Turbine Generators (GTG) operating to improve
Estimated annual emission reduction of 11,911 tCO2e load efficiency.
Estimated annual emission reduction of 8,774 tCO2e Eliminated flaring at Suban Baru by connecting its gas production to the
Suban Baru
(GHG), 755 tCO2e (methane) Suban flowline.
Optimisation of Waste Heat Boiler (WHB) operations by transitioning to a
Grissik Estimated annual emission reduction of 19,852 tCO2e single-unit configuration earlier than planned.
Optimisation of GTG operations improved efficiency and reduced fuel gas
Dayung Estimated annual emission reduction of 7,963 tCO2e consumption while maintaining reliable power supply.
Switching power supply from on-site generation to the PLN grid improved
Estimated annual emission reduction of 3,970 tCO2e energy efficiency.
Rawa
Estimated annual emission reduction of 7,156 tCO2e Reduce excess flare gas from condensate flash gas in medium pressure
(GHG), 373 tCO2e (methane) separator by running compressor PK-101.
Grissik Waste Heat Boiler (WHB) Operating Mode Optimisation Nitrogen Blanketing Conversion at Suban Plant
At the Grissik Plant, WHB recovers heat from process streams to The tank blanketing system at Suban Plant was converted from
generate steam and support plant operations. Historically, the WHB natural gas to nitrogen to reduce fuel gas consumption and
system operated in a two-out-of-three (2oo3) configuration, with a associated greenhouse gas emissions. Nitrogen serves as an inert
transition to one-out-of-three (1oo3) operation originally planned for a blanketing medium while maintaining safe operating conditions for
later stage. In 2025, following successful performance testing, the storage tanks. This conversion eliminated the continuous use of
optimisation was achieved by transitioning to a single WHB natural gas for blanketing purposes, reducing fuel gas consumption
operating configuration while maintaining stable steam pressure and by approximately 0.5 MMSCFD. This initiative reduced GHG
safe operating conditions. This change reduced fuel gas emissions by an estimated 1,179 tCO2e per year and methane
consumption by approximately 1 MMSCFD, reducing GHG emissions by 1,169 tCO2e per year.
emissions by an estimated 19,852 tCO2e per year and improving
overall energy efficiency at the Grissik Plant.
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Solar PV Deployment Across Corridor
Facilities
To support renewable energy and reduce
greenhouse gas emissions, on-grid solar PV
systems were deployed with a total
installed capacity of approximately 886 kWp
across Corridor facilities, including Suban,
Grissik, Sumpal, and Dayung. These
systems supply clean electricity to building
operations and are fully integrated with
monitoring systems. Since being installed,
the solar PV systems generate an estimated
1,124 MWh of renewable electricity
annually, reducing fuel gas consumption by
approximately 0.046 MMSCFD. This
initiative reduced GHG emissions by an
Solar PV Installation in Grissik, Corridor, South Sumatra, Indonesia
estimated 934 tCO2e per year.
Offshore
Decarbonisation efforts across offshore operations focused on optimising power supply, reducing fuel gas consumption, and improving
compression efficiency through targeted operational adjustments.
Electricity supply to a wellhead platform was restored from the Lift Gas
Belida Estimated annual emission reduction of 158.51 tCO2e Platform (LGP), reducing reliance on diesel generators.
Export gas pressure was optimised following operational trials, reducing
North Belut Estimated annual emission reduction of 10,521 tCO2e fuel gas consumption.
Direct route of well flow to the high pressure compressor enabled partial
Bangkanai Estimated annual emission reduction of 8,635 tCO2e shutdown of medium and low pressure compressors.
Well operating mode was optimised by prioritising oil mode in early
Terubuk Estimated annual emission reduction of 14,186 tCO2e production, reducing reliance on gas export compression.
Compression system pressures were adjusted to improve efficiency,
Kerisi Estimated annual emission reduction of 3,971 tCO2e reducing fuel gas consumption across compression stages.
Operating Mode Optimisation for Terubuk Well
An operating mode was optimised at the Terubuk well to manage increased production while reducing fuel gas consumption. During the
early production phase, oil mode operation s were prioritised, allowing liquids from Terubuk and Belida to be processed and stored without
routing gas through the gas export compressor. This enabled the gas export compression system to be temporarily bypassed, reducing both
fuel gas consumption by approximately 1.225 MMSCFD and GHG emissions by an estimated 14,186 tCO2e per year even as production
performance and operational reliability were maintained.
Power Supply Optimisation at Well Head Platform B (WHPB)
Since the subsea power cable was damaged in 2009, the WHPB platform had to rely on diesel generators for its electricity, consuming
around 200 gallons of diesel per day. In 2025, a new power supply was configured to restore electricity supplies from the nearby Lift Gas
Platform/LGP platform, which significantly reduced the need for diesel-based generation. This initiative is expected to reduce both diesel
consumption by approximately 276 kL per year and GHG emissions of around 158 tCO2e per year.
International
Solar PVs Installation at the Sattahip Warehouse High-Efficiency Electrical Submersible Pump (ESP) Deployment
in Oman
Solar panels were installed at the Sattahip Warehouse in Thailand to
reduce reliance on grid electricity and lower indirect emissions The Oman KSF team piloted the use of a high-efficiency Permanent
(Scope 2). The system generates approximately 43,000 kWh of Magnet Motor (PMM) Electrical Submersible Pump (ESP) on a new
renewable electricity annually for internal use, directly offsetting well to manage rising power demand while decoupling production
purchased power from the national grid. This initiative reduces GHG growth from energy intensity. This pilot project reduced annual
emissions by around 20.5 tCO2e per year while lowering electricity electricity consumption by 24.8 MWh, eliminated 11.88 tCO2e of
costs and strengthening energy resilience, supporting our GHG emissions, and delivered USD 1,884 in annual OPEX savings.
commitment to sustainable and low-carbon operations. This validated PMM technology and supported expanding its
deployment across future ESP-equipped wells.
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Transition to Low Carbon Energy
Our transition to low-carbon energy, as part of our Climate Change In 2025, power sales reached 4,371 GWh, reflecting continued
Strategy, continues to guide the integration of lower-emissions progress across our power portfolio. The share of renewable energy
solutions across our operations and value chain, supporting the in our energy mix reached 26%, which enabled us to achieve our
global energy transition while maintaining energy reliability. Natural 2025 renewable energy mix target and position the Company
gas remains an important transitional fuel in our portfolio; it enables toward the next milestone of 30% renewable energy by 2030.
us to reduce emissions and meet growing energy demands even as
renewable energy continues to play an increasingly important role in
diversifying our energy mix.
Enabling The Energy Transition through Natural Gas
We continue to strengthen electricity supplies by using natural gas as a key transitional fuel. The following highlights our progress to expand
gas-fired power plant operations in 2025:
70 MW (Existing) + 39 MW 85 MW (Existing - DEB) +
(ELB Add-on Combined Cycle) Potential Expansion
Gas-fired Powerplant Gas-fired Powerplant
Tanjung Ucang, Batam Panaran, Batam
• Owned and operated by PT Energi Listrik Batam (ELB)
• The existing Simple Cycle Power Plant (SCP) has been in operation since • Owned and operated by Dalle Energy Batam (DEB)
2017 • Current capacity of 85 MW with plan to expand its capacity as required
• Installation of the 39 MW add-on Combined Cycle unit has been by Batam grid system
completed, with commercial operations date in November 2025.
During the year, MedcoEnergi further strengthened its presence in the Indonesian gas market by executing new gas sales agreements and
amendments to existing contracts. Key developments in 2025 included:
GSA Description
Block A – Pertagas Niaga Adjustments to the gas prices in line with the decision by the Ministry of Energy and
Mineral Resources.
South Sumatra Block – PGN Amendments to the gas sales agreement, including updates to delivery points, contracted
volume, gas pricing, and contract tenure.
East Java – Sarana Cepu Energi Extension of the Gas Sales and Purchase Agreement and revisions to the gas prices.
Advancing Our Renewable Energy Growth
In parallel with gas development, we continue to expand our renewable energy portfolio as part of our low-carbon transition with a focus on
solar PV and geothermal power through our Power business. The table below presents our renewable energy revenues and their contribution
to total Medco Power revenues in 2025.
Description 2023 2024 2025
Total MPI revenue from renewables
1
286,761,356.36 210,578,328 186,863,3212
in USD
Description 2023 2024 2025
Renewables 60% 46% 23%
Non Renewables 40% 54% 77%
Solar Photovoltaic (PV)
We have continued to grow our solar PV portfolio, with the following highlights for our projects as of 2025.
Project Progress in 2025
East Bali Solar PV • Commenced commercial operations in July 2025.
(Solar PV 25 MWp) • Supplies electricity to the local grid under a 20-year Power Purchase Agreement (PPA) with PLN.
1 Including revenues from progress construction and excluding intercompany eliminations.
2 The lower total MPI revenue in 2025 is primarily attributable to construction‑phase revenue recognition, rather than electricity generation, following the completion of the Ijen Geothermal
and East Bali Solar PV projects in February and July 2025.
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Geothermal Projects
MedcoEnergi, through Medco Power, is further developing geothermal capacity in Indonesia as part of our commitment to provide clean and
reliable energy.
110 MW
Ijen Geothermal (Phase 1)
East Java
• Owned & operated by Medco Cahaya Geothermal
• O&M services by Medco Power Geothermal Services
• Potentially reduces 235,000 tCO2e/year
• Began commercial operations in phases, with the first 35 MW unit commencing in February 2025
• Supplies clean energy to the grid under a 30-year Power Purchase Agreement (PPA)
• New O&M contract for Phase-1 until 2030
60 MW 40 MW
Bonjol Geothermal Samosir Geothermal
West Sumatra North Sumatra
• Completed exploration activities under the Preliminary Survey • Continued resource studies, including geoscience surveys,
and Exploration (PSPE) Bonjol geothermal project in 2025 with completion targeted in the first quarter of 2026
Wind Energy Project Pursuing Decarbonisation through CCS/CCUS
Medco Power has installed two 140-metre measurement towers in As part of our Climate Change Strategy, we have completed a
West Sumbawa as part of the initial feasibility study for its first wind review of potential CCS applications in Medco’s gas field
power project in December 2025. The towers will collect wind and developments. Meanwhile, we are continuing to explore developing
meteorological data over the next 12 months to assess the area’s a CCS regional hub project to serve industrial emitters, including
renewable energy potential and support further technical, transborder sources.
environmental, and commercial evaluations. This initiative reflects
Medco Power Indonesia’s commitment to expand its clean energy
portfolio and support Indonesia’s energy transition.
EV Ecosystem
Medco Power further contributed to energy transition by expanding
the number of Electric Vehicle Charging Units (EVCUs) at The
Energy Building in November 2025. This enhancement confirms
Medco Power’s continued commitment to support government
initiatives to accelerate the adoption of electric mobility and reduce
carbon emissions nationwide. Ijen Geothermal, East Java, Indonesia
Enhancing Transparency and Assurance in Sustainability Reporting
At MedcoEnergi, we remain committed to transparency in our ESG performance reporting, with a strong focus on climate change
initiatives. We uphold strong standards of integrity and transparency by engaging KAP PSS-EY as an independent party to conduct a
limited assurance for selected GRI indicators in our Sustainability Report. In 2025, the limited assurance covered 101 GRI
indicators, the same number as 2024, and a significant increase from the 31 indicators assured in 2017. This reflects our
continuous efforts to comprehensively report and address stakeholder feedback.
As part of the limited assurance process, sites are visited annually to gather assurance evidence and documentation on selected
GRI indicators. Each year, our limited assurance provider visits one Oil & Gas site and one Power site. In 2025, Corridor, MEB and
DEB were selected. Since 2018, sites visited have included Rimau, South Sumatra Block, Corridor, South Natuna Sea Block B,
Block A, MEB, DEB, ELB, and MRPR, which were selected due to their relatively high GHG emissions.
These site assessments focus on emissions, energy, occupational health and safety (OHS), local community, and indirect economic
impacts. The conclusion of this limited assurance process can be found on page 3 of this Sustainability Report. For more
information on OHS, refer to Chapter 8; insights into local community engagements and indirect economic impacts are available in
Chapter 9.
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Alignment of Sustainability Initiatives with the UN SDGs
The table below aligns MedcoEnergi’s initiatives to drive a sustainable future through climate action with the relevant United Nations
Sustainable Development Goals (UN SDGs). These initiatives only highlight MedcoEnergi’s effort and do not imply MedcoEnergi has set or
measured targets for host governments in our operational areas regarding the achievement of the UN SDGs.
UN SDGs Relevant UN SDGs Targets1 Key Initiatives
• Renewable energy development: solar PVs and geothermal
7.2, 7.3, 7.A, 7.B • Climate capability building training sessions focusing on developing renewable
energy and engaging communities.
12.2, 12.6 Key initiatives in the Climate Change Strategy.
• Key initiatives within the Climate Change Strategy.
• Renewable energy development: solar PVs and geothermal.
• Climate capability building training sessions.
13.1, 13.2, 13.3
• Participation in climate-related events and conferences.
• Climate change risk assessments to identify and manage climate risks, supporting
long-term operational resilience.
• Collaborative project between Medco Power with the Deutsche Gesellschaft fr
Internationale Zusammenarbeit (GIZ) GmbH under the develop funding programme
of the German Federal Ministry for Economic Cooperation and Development (BMZ)
17.17 to strengthen skills within Indonesia’s renewable energy sector by developing and
expanding training programmes on renewable energy technologies.
• External collaborations to promote climate action and energy transition
(engagement in global and regional climate and energy forums).
Action Plans
The following action plans will enable us to meet our objectives and continue driving a sustainable future through climate action. We regularly
measure, monitor and report on our progress and performance and match them against these actions. The progress report of these action
plans refers to the 2023 - 2027 Sustainability Road Map. Since we have passed the short term period and actions were concluded in 2025,
our current focus is on the status of the medium/long term actions.
Category Short-term Actions Medium/Long-term Actions Status
Climate Risks and Assessed and identified low, Update the physical risk Completed the quantitative site-specific
Resilience medium, and high-priority assessments and quantify the assessments for South Natuna Sea Block B and
physical hazards for financial impacts of climate Sumbawa Solar PV, done by the internal team.
MedcoEnergi’s business related physical risks. High priority hazards identified include extreme
operations and assets through heat, flooding and water stress.
quantitative physical risk
assessments.
Assessed asset‑level risks for all Continuously improve Conducted qualitative assessments for 25
assets across MedcoEnergi’s MedcoEnergi’s physical risk additional assets and completed quantitative
portfolio to evaluate the physical assessments across our assessments for South Natuna Sea Block B and
impacts of the identified assets and business Sumbawa Solar PV. In total, qualitative
hazards. operations. assessments have been conducted for 80
assets.
Quantitatively analysed financial Continuously update scenario Completed the quantitative site-specific
impacts of the hazards on data when quantifying the assessments for South Natuna Sea Block B and
MedcoEnergi’s assets and financial impacts of climate Sumbawa Solar PV using two timeframes
overall business operations. related physical risks of our (Mid-Term and Long-Term) and two IPCC
assets. scenarios (Low Carbon and High Carbon).
1 The targets can be found in UN SGDs website (https://sdgs.un.org/goals)
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Category Short-term Actions Medium/Long-term Actions Status
Climate Risks and Developed climate hazard N/A Developed and ensured that the prioritised
Resilience mitigation and adaptation plans mitigations and adaptations are implemented at
linked to the risk management the asset level based on the findings from the
plans and performance of climate risk assessments.
adaptation and resiliency
measures.
Climate Mitigation Planned and executed Scale-up MedcoEnergi’s Completed the execution to eliminate routine
compliance efforts for the efforts towards Zero Routine flaring in Suban Baru (Corridor).
Government of Indonesia’s Flaring by 2030.
regulations on Zero Routine
Flaring by 2030.
Explored and implemented flare Develop plans to use or Optimised flare purged gas throughout the
gas use/optimisation conserve all the field’s Corridor field.
opportunities to manage associated gas without routine
methane in existing fields and flaring in the new fields.
future development.
Evaluated The Oil & Gas Establish the OGMP 2.0 • Conducted direct measurement trials in
Methane Partnership 2.0 commitment. Corridor.
• Oil & Gas assets joined OGMP 2.0 in Sep
(OGMP 2.0) commitment
2025, strengthening our commitment to
and associated requirements. transparent, globally aligned methane
reporting.
Strengthened sustained and Continuously evaluate best Opportunities are evaluated and executed as
consistent organic processes to available technologies to abate part of the asset plans and integrated into
promote, evaluate, approve, and GHG emissions in the market operational processes, with the Climate Change
execute GHG‑reduction and identify potential Governance Task Force overseeing them.
opportunities. mitigation measures at the Implementation results are reviewed internally
operation level. by the respective assets and reported to
Corporate HSE monthly.
Sought and acted on Continuously improve energy Implemented 44 initiatives in 2025 that will
opportunities to reduce GHG efficiencies at the operational potentially reduce up to 95,481 tCO2e/year, with
emissions and energy intensity. level by adopting best a one-time reduction of 47,362 tCO2e.
technologies and practices.
The total investment was USD 7.5 million.
Established industry and Conduct studies and • Continuously monitor regulation updates
regulatory collaborations and collaborate with partners to related to climate change and energy
tracked best technologies to promote digitalisation and transition.
promote high performance in renewable energy technology. • Assessed and selected new technologies to
operations. reduce emissions.
Promoted partnerships and Establish partnerships with • In September 2024, Medco Power, which
knowledge sharing with our experienced organisations (e.g. partnered up with the Indonesian Solar Panel
value-chain stakeholders to Universities, Research Industry and Renewable Alliance (INSPIRA),
accelerate MedcoEnergi’s Net Institutes) to promote closely collaborated with the Government of
Zero commitments and technological innovations. Indonesia (GoI) during the Indonesia
low-carbon energy transition. International Sustainability Forum (ISF). Terms
Create partnership were signed between Medco Power, another
programmes to promote data power company, and PV suppliers related to
transparency and adapt the the supply of photovoltaic equipment. The
best practices into the value term sheets covered local content
chain. requirements and plans to manufacture solar
PV in Indonesia.
• Progressed with project preparations,
including refining the project’s designs and
reviewing the legal agreements to collaborate
with Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ) GmbH for upskilling
during the energy transition.
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Category Short-term Actions Medium/Long-term Actions Status
Climate Mitigation Defined Scope 3 for Disclose Scope 3 GHG Continued to disclose and assure GHG Scope 3
MedcoEnergi. emissions and mitigation for relevant and significant categories.
commitments.
Evaluated Scope 3 related to key Explore opportunities to Engaged suppliers to ascertain their levels of
suppliers and considered develop a digital platform and awareness and knowledge on the complex
integrating GHG performance calculation tools to manage topics of sustainability and climate change.
into contract screening criteria. climate data to be shared with
MedcoEnergi’s partners.
Climate Adaptation Established a process to Continuously improve Completed developing the Climate Change Risk
conduct climate vulnerability methods to assess Assessment Guidelines.
studies for material climate- MedcoEnergi’s physical risks
related risks. and biodiversity.
Developed and established Consider using scenario Assessed biodiversity impacts during the
assessment approaches to analyses when assessing preliminary study for the environmental permits
evaluate risks and impacts to physical risks and biodiversity. for assets in development. Findings are reported
surrounding biodiversity. periodically to the government through the
Environmental Management & Monitoring (RKL
& RPL) Report as part of compliance.
Screened future investments to N/A Completed in 2024
evaluate their financial and
operational viabilities.
Updated the Medco Project
Excellence Process/MPEP
Sustainability Assessment
Guidelines.
Completed developing the
Carbon Internal Pricing
Guidelines to support future
investment screenings and
decision-making.
Established approaches to Continue to integrate climate Established the CCRA guidelines and platform as
assess climate risks based on risk assessment into future an internal assessment tool in 2024, followed by
the results of climate engineering designs and capability-building initiatives for users in 2025.
vulnerability studies and ensured account material risk for future
coverage of key material risks. projects. Updated the MPEP Sustainability Assessment
Guidelines and familiarised the MPEP gate
reviewers with them.
Integrated climate risk Continuously improve Incorporated the results of the Climate Physical
assessments into the design MedcoEnergi’s approaches to Risk assessments in South Natuna Sea Block B
process of future engineering climate designs and climate- and Sumbawa Solar PV as a basis for future
projects. proof future assets. engineering designs.
Conducted climate vulnerability Consider integrating scenario Integrated SSP scenario analyses and planning
studies for material risks for analyses and planning in into MedcoEnergi’s climate risk assessments to
future engineering projects. MedcoEnergi’s climate risk further climate-proof assets.
assessments to further
climate-proof assets.
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84 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Enhancing Our
Environmental and
Social Safeguards
Small Footsteps, Long-Term Impact
This picture is the 1st winner under the ‘Environment & Climate Change’ category of the MedcoEnergi 2025 Photography Competition.
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86 Sustainability Assessment
88 Health, Safety, and Environment
Management System (HSEMS)
89 The Performance Rating
Programme in Environmental
Management (PROPER)
89 Environmental Management and
Monitoring Programmes
94 Biodiversity Conservation
98 Social Management System
(SMS)
99 Alignment of Sustainability
Initiatives with the UN SDGs
100 Action Plans
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Our Operational Excellence framework, together with our Health, Safety, Environment Management System (HSEMS), Social Management
Systems (SMS), and project excellence process, supports our goal of zero environmental and social incidents. These integrated systems
safeguard employees, stakeholders, and communities whilst continuously advancing safety and environmental performance.
Approaches, Commitments, and Goals
We are committed to work safely, responsibly, and respectfully in In conducting Oil & Gas and Power operations, we are committed to
the communities and environments where we operate. Our complying with applicable regulations and implementing international
operational excellence framework guides us in delivering reliable best practices related to environmental and social management.
and efficient operations whilst minimizing environmental and social Expenditure associated with these efforts includes environmental
impacts and protecting local ecosystems. More details are available impact studies and/or assessments, water pollution prevention
in Chapter 8. programmes, waste management, and other pollution prevention
initiatives. Details of the total costs incurred for GHG emissions
Before starting any project, we carefully assess potential reduction, replanting activities, and community development
environmental, social, health, and biodiversity impacts. These programmes are presented in Chapters 6, 7, and 9 of this Report.
assessments include research, field verifications, focus group
discussions, and consultations with stakeholders. They comply with We follow all applicable environmental and social laws and
host governments’ regulations and permit requirements, and result regulations. In 2025, none of our operational sites recorded any
in management and monitoring plans designed to reduce risks and non-compliance incidents that could have led to significant monetary
enhance positive outcomes for communities and ecosystems. penalties, non-monetary sanctions, or dispute resolutions.
Sustainability Assessment
Our Sustainability Assessment reviews environmental and social routine flaring. In 2025, we refined these guidelines further with
indicators across all project stages, going beyond compliance to clearer parameters, improved evaluation criteria, and closer
address stakeholder expectations and areas for improvement. It alignment with evolving sustainability and climate priorities.
helps prevent, mitigate, and manage risks in line with the More details are available in Chapter 4.
International Finance Corporation’s performance standards.
Since 2021, we have applied Sustainability Assessment to oil and
We strengthened our Sustainability Assessment Guidelines©1 in gas projects within our project excellence framework and conducted
2024 by integrating physical climate risks into project designs, regular surveillance audits at 10%, 50%, and 90% execution
requiring methane management for new projects, and aligning our progress to monitor sustainability indicators whilst they were being
GHG reduction efforts with government commitments to end implemented.
Powering progress, preserving nature: Ijen Geothermal, East Java, Indonesia
This picture is one of the entries in the ‘Environment & Climate Change’ category of the MedcoEnergi 2025 Photography Competition
1 Sustainability Assessment Guidelines© for projects received legal protection from Indonesia’s Ministry of Law and Human Rights on March 4, 2024, ever since they were first
implemented in January 2021. This protection enables MedcoEnergi to share the guidelines externally with appropriate attribution.
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Medco Project Excellence Process and Sustainability Assessment
Sustainability Assessment
Gate Gate Gate
Appraise Review
Select Review
Define Review
Execute
Surveillance
G1 G2 G3
Audit
• All sustainability indicators are • SEP updated • SEP updated • SEP updated
assessed together during the • Document arrangements for • Document arrangements for • Monitoring and reporting of
risk register development, Security Management Plans Security Management Plan SMP, labour and working
including HSE risk (SMP), labour & working (SMP), labour & working conditions, grievance
identifications. mechanism and community
conditions, grievance mechanism conditions, grievance
involvement.
• Initial identification for and community involvement. mechanism and community
• ERP and LRP approved,
Stakeholders Engagement Plan • Initial engagement involvement. including monitoring and
(SEP), security issues, land • Energy/water efficiency & Climate • Emergency Response Plan reporting.
acquisitions, and climate Change Mitigation Plan calculated (ERP) and Livelihood restoration • Pollution prevention approved.
change. & forecasted. plan (LRP) development. • Permit monitoring and
• Pollution prevention & mitigation • Energy/water efficiency, Climate reporting.
plans included in the submitted Change Action Benchmark and • LARAP monitoring and
Environmental, Social, and Health Plan, and biodiversity reporting.
Impact Assessments (ESHIA/ programme developed based on
AMDAL) ESHIA/AMDAL or calculation.
• Environmental management • Pollution prevention permits
permit list. submitted.
• Land Acquisition and • LARAP approved and executed.
Resettlement Action Plan (LARAP)
development.
• Project charter and • POD submitted. • POD approved. • Contracts awarded and
mandate. • ESHIA/AMDAL submitted. • ESHIA/AMDAL approved. executions begun.
• Preliminary Plan of • Risk register updated. • Risk register updated. • Permits approved.
Development (POD). • Project Execution Plan • Project Execution Plan • Risk register updated.
• Risk register defined. executed.
• Commissioning and Start
Up Plan.
Medco’s Project Excellence Processes (MPEP)
Below is the progress of major projects that underwent the Sustainability Assessment gate reviews and project surveillances in 2025.
Mapping of Sustainability Assessment
Block A
ARAS Phase 2 3
South Natuna Sea Block B
Terubuk Surveillance 50% Bangkanai JOB Tomori
Karendan 2 Senoro Phase 2A Surveillance 50%, 90%
Thailand
Bualuang Phase 5
Medco Power Assets Debottlenecking
MEB Gas-fired IPP 2 P Surveillance 10%, 70%
Corridor
Sambar 2 3
Medco Project Excellence
Process (MPEP)
1 Gate 1 Review
2 Gate 2 Review South Sumatra Block Sampang
3 Gate 3 Review Arung Nowera 2 3 Paus Biru 2 3
P Peer Review
In September 2025, we delivered refresher Sustainability Assessment Training for Reviewers across relevant functions. The training covered
land matters, government relations, community development, social sustainability, environmental management and compliance,
communication, security, and human resources. Its objective was to strengthen reviewer capability to identify and manage environmental
and social indicators and impacts within the project excellence process. The training also reinforced key frameworks, methodologies, and
indicators used in Sustainability Assessment and was a tool to evaluate project readiness to mitigate environmental and social risks.
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Health, Safety, and Environment
Management System (HSEMS)
We maintain an ongoing review of our health, safety, and Our HSEMS Manual, developed for both Oil & Gas and Power
environment management practices to ensure robust governance of operations, references ISO 14001:2015, ISO 45001:2018, and other
operational impacts. Our Health, Safety, and Environment relevant regulatory requirements, providing a structured and
Management System (HSEMS) provides an integrated and comprehensive framework across all operations. Each asset
fit-for-purpose approach to identifying, assessing, controlling, and develops its own procedures to align with the Manual, thus ensuring
monitoring environmental risks and performance across our consistent application of standards across all operations. Compliance
operations. Through this system, we work to minimize impacts, and continuous improvement are reinforced through regular
strengthen stakeholder trust, maintain compliance with applicable environmental internal and external audits. By 2025, 37% of our
environmental regulations, and uphold best international practices. assets had achieved certification under ISO 14001:2015, whilst 68%
were certified under ISO 45001:2018 for the Occupational Health
and Safety Management System.
MedcoEnergi’s Certified Assets
1 Block A
2 MRPR Gas-fired IPP
3 Rimau
4 South Sumatra Block (SSB)
5 Lematang
6 Corridor
7 MPE and EPE Gas-fired IPP
8 BJI Mini-hydro
9 Medco Power Indonesia
Headquarters
15 10 PPP Mini-hydro
Oman
11 Sampang
16
12 Madura Offshore
13 South Natuna Sea Block B
14 Tarakan
1 15 Bualuang
13
16 Karim Small Fields
14
17 Bangkanai
2 18 MEB/DEB Gas-fired IPP
18
19 19 ELB Gas-fired IPP
Kalimantan
ISO 14001:2015 Environmental
Sumatra 17
Management System (EMS) Certified
6 ISO 45001:2018 Occupational Health and
3 Safety (OHS) Certified
4 International Finance Corporation (IFC)
5 Performance Standards
7 Equator Principle (EP)
9
Asian Development Bank (ADB)
8 11 Safeguards
Java 12
10
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The Performance Rating Programme
in Environmental Management (PROPER)
The Indonesian Ministry of Environment conducts the annual In 2025, Indonesian assets1 participating in the programme obtained
Performance Rating Programme in Environmental Management Blue ratings, signifying full compliance with applicable environmental
(PROPER) to evaluate corporate compliance with Indonesia’s standards, with MRPR joining PROPER for the first time.
environmental regulations. These assessments cover emissions,
wastewater, waste, and hazardous materials management. Beyond Our non-operated assets were also recognised for their
regulatory compliance, the programme reviews environmental performance. JOB Tomori and TJBPS achieved Green PROPER,
management systems, resource efficiency, biodiversity initiatives, reflecting performance that went beyond regulatory requirements.
and Corporate Social Responsibility (CSR) programmes that support These results have reinforced our ongoing commitment to
sustainable business practices. responsible operations and continuous improvement across our
portfolio.
Environmental Management
and Monitoring Programmes
Our environmental management system guides environmental management and monitoring programmes across our operating assets,
supporting improved sustainability performance, regulatory compliance, and stronger impact management. Some of these initiatives that
brought wider benefits to local communities are elaborated in Chapter 9.
Waste Management
Our integrated waste management approach applies the Best Available Technologies (BAT) for waste segregation, disposal, and treatment.
Waste Management at MedcoEnergi
Waste Generated
The Total Weight of waste
generated (tonnes)
Hazardous Waste Non-Hazardous Waste
Waste that contains elements that Segregation Waste that does not exhibit any of
are explosive, flammable, poisonous,
the hazardous waste characteristics
disease-causing or corrosive.
Organic Inorganic
Temporary Storage Facility Plastic bottle, glass, beverage cans,
Food waste, wood, leaves
straws, paper, tissue, cardboard
Disposal
Licensed Hazardous Waste Recycle Waste directed to Recycle
disposal (e.g.
Community
Management Facility Composting & Biopore incineration, landfilling,
Organisation Centers
and other disposal
operations)
1 Block A, Rimau, South Sumatra Block (SSB), Lematang, Tarakan, Madura, Corridor, MRPR, DEB, MEB, and MPE.
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Non-Hazardous Waste
Our operations’ non‑hazardous waste is managed in line with the attributable to higher waste volumes at the Karim Small Fields (KSF)
Reduce, Reuse, Recycle (3Rs) principles. Waste is segregated into in Oman, largely resulting from third‑party construction activities.
organic and inorganic streams, with organic waste sent to We strengthened waste management initiatives across our
composting facilities and inorganic waste further sorted into operations and achieved 99 tonnes of waste diversion from final
recyclable and residual factions. Recyclable materials are delivered disposals, driven mainly by improved waste recording in Rimau.
to community recycling centres, whilst residual waste is directed to
landfills or incineration facilities. Our Power assets generated 166 tonnes of non‑hazardous waste in
2025, with the increase linked to construction activities at the ELB.
In 2025, our Oil & Gas assets generated 1,426 tonnes of
non‑hazardous waste. The increase compared to 2024 was primarily
Oil & Gas Non-Hazardous Waste Power Non-Hazardous Waste
1,600 140 200
1,426 1,327
1,259 120 166 166
1,200 1,174 1,164 150
1,093 100
99
95
80
Tonnes
Tonnes
Tonnes
80
800 100 78 78
60 74 74
40
400 50
20
0 0 0
2023 2024 2025 2023 2024 2025
Waste generated Waste disposed Waste diverted Waste generated Waste disposed
from disposal
Strengthening Waste Management through Assessment and Awareness
In 2025, MedcoEnergi continued to enhance waste management practices at the Jakarta
Office and across Medco Power subsidiaries. At the Jakarta Office, we initiated a waste
management improvement programme supported by Waste4Change, a waste management
company. This programme included a comprehensive performance assessment, practical
training on waste sorting and proper storage, and awareness-building activities to reduce
waste at the source and improve disposal practices. The assessment identified paper, food
waste, and rigid plastics as the dominant waste streams, and we are implementing
improved segregation measures to optimize overall waste management effectiveness.
Medco Power also conducted an Enviro Webinar for employees across MPI subsidiaries.
This programme covered waste classification, source segregation, and responsible handling,
with over 100 participants attending. The session highlighted 3R principles and circular
economic approaches, supporting the Company’s long-term waste reduction goals.
Enviro Webinar Poster
Celebrating World Environment Day through Coastal Clean-Up Actions
To commemorate the World Environment Day, several assets In our South Natuna Sea Block B asset, we conducted clean-ups
organised coastal clean-up activities that brought together across Telayan Beach with the Transportation and Environment
employees, local communities, and government officials to address Agency of the Anambas Island Regency as well as around the
plastic waste pollution and protect coastal ecosystems. Medco coastal area near the Matak Jetty Warehouse with the Indonesian
Power, through ELB, MEB, and DEB, collaborated with the Batam Navy Air Base Matak Team. In total, we collected 490 kilograms of
City Environmental Agency at the Horizon Industrial Area in Sungai waste, which demonstrates our commitment to coastal health and
Lekop Village, Sadotung District to foster public awareness and our role in facilitating community involvement to protect shared
action around waste reduction. natural environments.
Clean Up Coastal Areas, Matak, Riau Islands, Indonesia
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Hazardous Waste
We manage hazardous waste1 responsibly through secure on‑site activities in Corridor as well as oil spill clean‑up efforts in certain
storage and the use of licensed third‑party disposal companies2. onshore assets activities that generated temporary increases in
Hazardous waste is generated from routine operational activities, hazardous waste. Second, the increase resulted from flowline
well operations, and exploration programmes. cleaning activities at Oman KSF.
In 2025, our Oil & Gas assets generated 15,997 tonnes of hazardous In 2025, our Power assets generated 90 tonnes of hazardous waste,
waste. The increase from the previous year was driven by two main an increase compared to 2024, primarily due to maintenance
factors. First, higher waste volumes resulted from exploratory drilling activities at DEB and MEB.
Hazardous Wastes from Oil & Gas Assets Hazardous Wastes from Power Assets
20,000 120
101
15,997 15,809 94 90 90
15,000 90
Tonnes
Tonnes
10,000 60
50 50
6,161 6,000 5,125 5,237
5,000 30
0 0
2023 2024 2025 2023 2024 2025
Waste generated Waste managed by third party Waste generated Waste managed by third party
Throughout the year, we continued to advance our hazardous waste reduction initiatives through improved hazardous material management,
optimised maintenance, and the substitution of materials with more environmentally responsible alternatives.
Oil Spill Incidents
We remain committed to minimizing oil spills across our operations. In 2025, we recorded a total spilled volume of 8.66 barrels, primarily
Reporting follows international standards and regulatory resulting from operational challenges such as equipment failures.
requirements, with only spills to the environment of one barrel (bbl) Prompt action by our emergency response teams enabled them to
or more disclosed publicly. All spill events regardless of volume are recover substantial portions of the spilled oil. No injuries or
recorded internally to support operational learning and strengthen community complaints were reported. We maintain regular
preventive measures. emergency drills and training programmes to ensure our teams are
effectively prepared for spills. Additional details of our emergency
management approaches are presented in Chapter 8.
Volume of Oil Spill3 and Recoveries4 Number of Oil Spill Incidents
15.00 14.20 14.20 5
4
Number of Events
4
10.00
8.66 8.66 3
BBLS
2
2
5.00
1
0 0 0 0
0 0
2023 2024 2025 2023 2024 2025
Volume of Oil Spill (BBLS) Total Recovery Event
Our oil-producing operations have established oil spill management measures that cover the following key programmes:
Our Indonesian offshore assets participated as part of the Oil Spill
Combat Team (OSCT) Indonesia, a private oil spill response organisation
with nationwide bases. Through OSCT, we have enhanced our spill
preparedness and response capabilities by accessing specialised
equipment, technical expertise, and targeted training programmes. In
Thailand, our Bualuang asset is a long‑standing member of the Oil Spill
Response Limited (OSRL) and the Thailand Oil Industry Environmental
Oil Spill Preventive and Preparedness
Prevention Corrective and Response Safety Group (IESG). Working in coordination with OSRL Thailand,
System Maintenance Plans Bualuang has implemented a preventive maintenance programme to
effectively reduce the risks of oil spills.
1 Hazardous waste is waste containing substance, energy and/or components which, due to their properties, concentrations and/or amounts, may directly or indirectly pollute and/or
damage the environment and/or harm the health of humans or other living creatures in those areas. It could also mean waste designated “hazardous” or some similar term under the
applicable regulatory requirements of the country where MedcoEnergi operates.
2 The waste managed in any given year may include carry-overs from the previous year. In other words, waste generated in one year might be stored temporarily and then delivered to a
third party in the following reporting year. These approaches account for the discrepancies between the amounts of waste generated and the waste directed for disposal in any given
year.
3 These oil spills include those caused by internal factors within MedcoEnergi. They exclude spills resulting from third-party actions, e.g., vandalism, collisions by third parties, etc.
4 “Recovery” includes recovered oil and recoverable spills from contaminated soil were sent for further treatment as per the host country’s regulations.
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Water Management
Our Health, Safety, and Environment (HSE) Policy guides water Our Power assets withdrew 314,923 megalitres of water in 2025,
management practices that minimize environmental impacts across also higher than the previous year. This increase was mainly driven
our operations. Water is primarily used for production activities, by higher power generation at Cibalapulang Mini-hydro and Pusaka
drilling, office needs, and domestic consumption. Mini-hydro assets, supported by an extended rainy season that
increased water flow through the turbines.
In 2025, our Oil & Gas assets recorded total water withdrawals of
49,800 megalitres, an increase from 2024 largely due to the Forel
and Terubuk fields in South Natuna Sea Block B coming on stream.
Water Withdrawals in Megaliters by Source1,2
Water Sources Asset 2023 2024 2025
Surface Water Oil & Gas 303 321 273
Power 195,525 254,975 314,368
Seawater Oil & Gas 12,403 12,549 11,333
Power 116 34 452
Groundwater Oil & Gas 1,758 2,238 2,362
Power 3 2 3
Third Party Oil & Gas 34 35 28
Power 1 94 101
Produced Water Oil & Gas 32,453 34,390 35,804
Total Water Withdrawal Oil & Gas 46,951 49,533 49,800
Power 195,645 255,105 314,923
Total 242,596 304,639 364,723
Water Withdrawals in Megaliters by Category
Water Sources Asset 2023 2024 2025
Freshwater (incl. surface Oil & Gas 806 850 811
water, groundwater, third
Power 195,529 255,072 314,472
party)3
Non-freshwater (incl. Oil & Gas 46,145 48,683 48,989
seawater, produced water)4
Power 116 34 452
Total 242,596 304,639 364,723
Freshwater Withdrawal Intensity
Supply Unit 2023 2024 2025
Medco Oil & Gas m3/1000 TOE HC 59.99 67.74 68.12
Medco Power m /MWH
3
69.38 91.64 95.45
The intensity of our freshwater withdrawals in our Oil & Gas operations has risen over time primarily due to expanded drilling activities.
Meanwhile, freshwater withdrawal intensity across Medco Power varies annually in line with fluctuations in electricity generation output.
Enhancing Water Resilience through Freshwater Bunkering at South Natuna Sea Block B Asset
Through our CCRA, outlined in Chapter 6, we identified potential drought risks at the Matak Shore Base. In response, we introduced
mitigation measures that include a freshwater bunkering system from the Floating Production Storage and Offloading (FPSO) Belanak to
support operational vessels. The reverse osmosis unit onboard FPSO Belanak produces approximately 40 cubic metres of freshwater per
day. With an average onboard consumption of around 34 cubic metres per day, the excess capacity of about six cubic metres is redistributed
to supply support vessels operating in the South Natuna Sea Block B area, strengthening water supply and ensuring operational continuity.
1 Data for Oil & Gas 2023-2025 water withdrawals include assets from International: Thailand Bualuang and Oman KSF; Indonesia: Block A, South Natuna Sea Block B, Corridor, South
Sumatra Block, Rimau, Lematang, Madura Offshore, Sampang, Bangkanai, Tarakan. We exclude water produced in Oman as it is managed by our client (Petroleum Development Oman/
PDO).
2 Data for Power 2023 – 2025 water withdrawals include assets from MRPR, MEB, DEB, ELB, MPE, EPE, as well as Cibalapulang Mini-hydro and Pusaka Mini-hydro, Ijen Geothermal.
3 Freshwater for Oil & Gas excludes groundwater from Oman as it is classified as non-freshwater.
4 The figure includes groundwater from Oman KSF.
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System Change from Innovation Programme
BEFORE INNOVATION AFTER INNOVATION
Operational vessel purchases freshwater from Matak shore base Operational vessel obtains excess freshwater from the rear of FPSO
Operational Matak Shore FPSO Operational
Purchase Valve Pump
Vessel Base Platform Vessel
Updated Diagram Showing Operational Efficiency Improvements through Freshwater System
Managing Our Wastewater
We manage the produced water from our exploration and In 2025, our Oil & Gas assets discharged 21,295 megalitres of
production activities by reinjecting it into injection wells or wastewater into the environment, whilst our Power assets
discharging it after proper treatment. We ensure compliance with discharged 312,970 megalitres. The increase compared to 2024 is in
applicable quality standards to protect the environment. Effluents line with higher water withdrawals during the year.
are routinely monitored to meet the host governments’ regulations
and remain below Threshold Limit Values (TLVs).
Water Discharge by Source
Water Sources Asset 2023 2024 2025
Surface Water Oil & Gas 195 195 195
Power 194,609 253,949 312,618
Seawater Oil & Gas 21,723 21,716 15,151
Power 37 23 348
Groundwater Oil & Gas 0 0 5,903
Power 4 4 3
Third Party Oil & Gas 53 51 45
Power 0 0 0.03
Water Discharge to Oil & Gas1 21,971 21,963 21,295
Environment Per Asset
Power 194,650 253,976 312,970
Total Water Discharge to Environment 216,621 275,939 334,265
Managing Our Produced Water
We manage produced water through three strategies that include Reinjected Produced Water2
discharging treated water into water bodies, reinjecting into injection
wells, or transferring to third-party entities. Our Produced Water 30,000
Treatment (PWT) facilities treat this water to reduce hydrocarbon,
chemical, and hazardous substance concentrations to meet 25,000 24,019 23,476
22,808
regulatory and industry standards.
20,000
We ensure that treated produced water meets applicable quality
Mega Litre
standards prior to discharge into water bodies. We conduct periodic 15,000
monitoring to ensure continued compliance with regulatory
requirements. 10,000
In 2025, we reinjected a total of 23,476 megaliters, representing a
5,000
decrease compared to the previous year. The decline was mainly
due to lower production in Rimau as a result of equipment
0
maintenance activities. 2023 2024 2025
1 “Water discharge to environment” for Oil & Gas assets includes treated produced water discharged to the environment.
2 Data for reinjected produced water include Block A, South Sumatra Block (SSB), Rimau, Tarakan, Bangkanai, South Natuna Sea Block B, Corridor, Bualuang Thailand.
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Air Emissions
Our Oil & Gas operations generate nitrogen oxides (NOX), sulphur oxides (SOX), volatile organic compounds (VOCs), and particulate matter
(PM) emissions, whilst our thermal power plants emit NOX, SOX, H2S, NH3 and PM. Our 2025 GRI Performance Data tracked these emissions
from 2023 to 2025.
Air emissions are managed in accordance with our Environmental Management and Monitoring Plans. Selected assets operate Continuous
Emissions Monitoring Systems (CEMS) to track emissions in real time to support regulatory compliance and enable us to proactively manage
the environment.
We comply with relevant national and regional regulatory frameworks. In Indonesia, we follow Ministry of Environment & Forestry (MoEF)
Regulation No.11/2021 for internal combustion engine emissions and Ministry of Environment (MoE) Regulation No. 13/2009 for stationary
combustion equipment, including boilers, turbines, and flares. Our Thailand asset adheres to the 2017 Department of Labour Protection and
Welfare Notification on hazardous chemical concentration limits, whilst our power assets comply with MoEF Regulation No.15/2019
governing emission thresholds for thermal power plants.
Biodiversity Conservation
Biodiversity Management
We protect biodiversity through conservation efforts across our Oil implemented in accordance with the mitigation hierarchy. The BAPs
& Gas and Power assets, implementing both compliance and set out clear commitments, including strict controls on vegetation
beyond-compliance revegetation whilst safeguarding endangered clearance, a zero-tolerance policy on poaching and wildlife
species. Our commitment to protect biodiversity and preserve disturbance, and continuous on-site biodiversity monitoring
ecosystems is aligned with our Health, Safety, and Environment throughout the operational phase. As part of BAP implementation,
(HSE) Policy, which enables us to proactively manage potential MRPR also supports an ongoing Biodiversity Offset initiative in
environmental impacts from our operational activities. collaboration with Community Forest Enterprises (CFEs) in a
REDD+1 project that protects Village Forests (Hutan Desa) in Durian
MedcoEnergi conducted Environmental Impact Assessments/ EIA Rambun Village, Merangin District, Jambi Province. It covers
(Analisis Mengenai Dampak Lingkungan Hidup/AMDAL) prior to approximately 4,484 hectares and is located adjacent to the Kerinci
operations to assess baseline environmental conditions, which Seblat National Park, one of the most significant conservation
include identification of potential biodiversity risks and impacts. landscapes in Sumatra.
These assessments and mitigation actions are implemented within
ISO 14001‑certified Environmental Management System. Hence, Offshore operations may affect the marine environment through
biodiversity impacts are proactively identified, monitored, and drilling activities; therefore, we conducted baseline assessments of
managed in line with international environmental management the marine ecosystem, including bird species and coral reefs. None
standards. of our offshore operations are in biodiversity-sensitive areas, and no
endangered species have been identified. Furthermore, we regularly
We apply best-practice mitigations that prioritise avoiding impacts monitor plankton biodiversity indices and manage potential impacts
rather than minimising them, followed by compensation or on marine organisms to ensure environmentally responsible
restoration measures. Potential biodiversity risks and impacts are operations.
managed by collaborating with local governments and stakeholders,
monitoring the area’s biodiversity, and restoring environmental In 2025, we continued a 3D seismic survey in Corridor asset,
changes throughout operational and post‑operational phases. covering 16,973 hectares, with 8.693 hectares (51%) located in the
Dangku Wildlife Reserve to assess gas discoveries. Seismic
As an example, our Corridor asset operates near protected forests activities may generate biodegradable and non-biodegradable waste,
and wildlife reserves, which face risks such as forest encroachment, noise, and air emissions. We therefore prohibited open burning and
illegal logging, and wildlife disturbance along the pipeline right-of- engaged licensed third party’s waste facilities; we also encouraged
way. We mitigate these risks by protecting the forests, restoring the natural decomposition, enforced vehicle speed limits, inspected
habitats, managing pipeline integrity, monitoring the wildlife, and equipment, and sprayed roads to control dust to mitigate these
providing community environmental education programmes. impacts.
At our Power asset, MRPR, we have developed and implemented Our Corridor asset comprehensively monitored vegetation and
Biodiversity Action Plans (BAP) that reinforce our commitment to standing crops in accordance with the Government’s requirements.
biodiversity conservation. The Environmental and Social Impact As a result, this monitoring indicates vegetation conditions remained
Assessments (ESIA) identified a portion of gas pipeline corridor that comparable to baseline levels, with only minor, temporary changes
traversed a critical habitat area and the presence of International in lower vegetation due to land preparation. These observations
Union for Conservation of Nature/IUCN Red Listed species, reflect our commitment to conduct environmentally responsible
including the Agile Gibbon (Hylobates agilis) and the Sunda Pangolin operations through effective environmental management practices.
(Manis javanica). In response, the BAPs were established to ensure
that appropriate mitigation and conservation measures were
1 REDD+ is a voluntary climate change mitigation framework developed under the United Nations Framework Convention on Climate Change (UNFCCC). REDD’ stands for ‘Reducing
Emissions from Deforestation and forest Degradation in developing countries. The ‘+’ stands for additional forest-related activities that protect the climate, namely sustainably managing
forests and both conserving and enhancing forest carbon stocks.
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Biodiversity Conservation Programmes
We address biodiversity challenges through partnerships with local organisations. Our conservation initiatives combine replanting efforts with
community engagement to ensure lasting, meaningful results. Below are our replanting programmes that support biodiversity conservation:
Planted areas in 2023-2025
according to Forest Area Usage
240 Planted areas in 2023-2025
beyond regulatory 761 Approval (Persetujuan
Penggunaan Kawasan Hutan/
HECTARES requirements1 240 hectares HECTARES
PPKH) and Environmental
Permit (SKKL)2 761 hectares
Our investments, in USD, in replanting activities for both programmes listed below:
Investments in Replanting 2023 2024 2025
Revegetation as per Forest Area Usage Approvals (PPKH) 450,518 554,633 195,358
Revegetation as per commitments in Environmental Permits (SKKL) 30,977 - -
Revegetation beyond regulatory requirements 75,605 108,787 275,569
To promote biodiversity in land and coastal areas, we replanted trees and mangroves across our assets in 2025, aligning with SKK Migas's
national tree-planting campaign.
Beyond regulatory requirements PPKH
170,366 187,454
trees planted3 trees planted as new plantings4
2025 Upstream Oil & Gas Green Initiatives
Through the Medco Foundation, we continued the Nusataru programme5 to restore critical land ecosystems, planting approximately
9,000 mangrove and bamboo trees in 2025 across the Karawang and Bekasi regencies in West Java and the Sleman Regency in Yogyakarta.
This brings our cumulative total to 75,767 trees planted over the past six years.
We also sustained partnerships with local communities to monitor tree growth at several locations, including Gunung Gede Pangrango
National Park in West Java. Our support for forest farmer groups (Kelompok Tani Hutan/KTH) includes assisting two KTH groups,
representing 180 farmer members, who were in the process of applying for conservation partnership programmes under the Ministry of
Environment. Together with these groups, we conducted routine tree maintenance and periodic monitoring to ensure long‑term survival and
ecosystem recovery.
Restoring Forest Ecosystems through Revegetation and Rehabilitation Programmes in South Sumatra and Riau
As holders of the Borrow‑to‑Use Forestry Permit (Izin Pinjam Pakai Telang protected forest, supported by a combined investment of
Kawasan Hutan/IPPKH), our South Sumatra Block (SSB), Lematang, USD 25,439. These initiatives reflect our commitment to restore
and Rimau assets remain committed to rehabilitating forests and ecological balance and mitigate climate change by conserving forest
enhancing ecosystem resilience through revegetation initiatives. ecosystems.
Since 2022, we planted 152,798 trees across 221.5 hectares under
the Watershed Rehabilitation Programme, using a variety of forestry Our MRPR completed the Watershed Area Rehabilitation
species such as Shorea, Aquilaria, Alstonia pneumatophora, and Programme in the Special Purpose Forest Area (Kawasan Hutan
other productive species in multiple protected forest areas. Dengan Tujuan Khusus /KHDTK) of the Bukit Suligi Training Forest in
Rokan Hulu Regency, Riau Province. Over a three‑year period, we
In 2025, we invested USD 156,062 to plant an additional 51,976 carried out planting activities across 3.8 hectares, supervised by the
trees across 62.96 hectares at the SSB and Lematang assets, Watershed and Protected Forest Management Agency (Balai
fulfilling our IPPKH obligations and supporting broader efforts to Pengelolaan Daerah Aliran Sungai dan Hutan Lindung /BPDASHL)
restore the landscapes. Indragiri Rokan and the Human Resources Education and Training
Centre (Badan Penyuluhan dan Pengembangan Sumber Daya
Beyond regulatory requirements, our onshore assets continued Manusia/BP2SDM) Region II. A mid‑2025 evaluation reported a
collaborating with local partners on revegetation initiatives. In Block 94.87% tree‑growth success rate, exceeding standards set by the
A, we partnered with the Faculty of Agriculture at Malikussaleh Ministry of Environment. The rehabilitated area was formally handed
University to plant 2,435 high carbon‑absorbing hardwood trees over to (BP2SDM) Region II in October 2025 for continued
across 5.7 hectares. Meanwhile, the Rimau and Lematang assets management under the Social Forestry Programme.
planted 15,000 mangrove seedlings over 1.5 hectares within the Air
1 The total planted areas from 2023 to 2025 exclude the areas planted through the Medco & I Two Trees programme.
2 The Surat Keputusan Kelayakan Lingkungan Hidup (SKKL), or Environmental Permit/Feasibility Letter, is a permit that outlines the environmental commitments that the company must
fulfill, as regulated by Government Regulation Number 22 of 2021.
3 Trees planted include mangroves in Sunsang Village Banyuasin by Rimau, Lematang, Corridor; Matak; and trees in Sumenep and Sampang
4 Tress planted as new plantings include watershed rehabilitations in South Sumatra Block (SSB) Block III Meranti Sungai Merah (MSM), and plantings in Corridor and MRPR operational
areas.
5 Nusataru is a programme to plant trees on degraded land in order to restore environmental functions and prevent natural disasters caused by land degradation.
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Celebrating World Environment Day by Planting Trees
in East Java
Our Sampang asset collaborated with the Madura State Polytechnic
in June 2025 to plant 300 trees in the Sampang Regency, East Java,
demonstrating our commitment on World Environment Day to both
protect and preserve the environment. Government representatives,
college students, and our team participated in planting a variety of
productive and ornamental trees, including mango, Trumpet tree,
Wild fig, Syzygium, Coral tree, Tropical ebony. This joint effort
between industry, academia, and local government strengthens
environmental preservation around our operational areas in East Community Tree Planting and Environmental Conservation
Java. Activities, East Java, Indonesia
Restoring Coastal Ecosystems by Conserving and Rehabilitating
Mangroves
We have been implementing mangrove planting programmes at our
non-operated asset, the Joint Operating Body (JOB) Tomori, Central
Sulawesi, since 2013 to restore coastal ecosystems, protect
shorelines from erosion, and support biodiversity in areas that
depend on mangrove habitats. Through eleven years of consistent
efforts, we covered approximately 115.66 hectares of mangroves
with 180,477 seedlings planted across multiple coastal villages.
In 2025, we planted 16,200 seedlings in the Rata and Paisubuloli
villages, Central Sulawesi through collaboration with
Muhammadiyah University Luwuk, the Banggai Regency
Environmental Agency, and local community groups. As a result, the
biodiversity index at the conservation sites reached 4.19 whilst the
number of species increased from 120 to 150, thus proving that Mangrove Vegetation near Senoro Field,
Central Sulawesi, Indonesia
mangrove ecosystems continue to support growing biological
diversity.
Protecting Endemic Species through Ex-Situ1 Conservation
at JOB Tomori
At our non-operated asset, the Joint Operating Body (JOB) Tomori,
we have been conducting ex-situ conservation programmes for two
critically endangered endemic species: the Maleo bird since 2019;
and the Sulawesi Barn Owl since 2018. Both of these species serve
vital ecological roles as the Maleo maintains natural regeneration
cycles and the Sulawesi Barn Owl functions as a vital predator to
preserve environmental balance.
For the Maleo conservation, Julang Sulawesi, Sea Turtle, we
collaborated with the Natural Resources Conservation Agency (Balai
Konservasi Sumber Daya Alam/BKSDA) of the Central Sulawesi
province and Tadulako University Palu to protect natural nesting
sites at the Bakiriang Wildlife Sanctuary. This has resulted in the
Maleo Nesting Sites at Bakiriang Wildlife Sanctuary,
successful release of 15 birds in 2025, which brought our total Central Sulawesi, Indonesia
releases to 115 birds. Consequently, biodiversity index
measurements increased from 4.20 in 2024 to 4.28 in 2025,
indicating improved environmental quality at the conservation site.
As part of the Sulawesi Barn Owl conservation initiative, we
established a quarantine facility to rehabilitate owls injured by illegal
hunting or accidentally caught in wild duck nets. This was carried
out by collaborating with our Quality Health Safety and Environment
(QHSE) and Community Development divisions. After being
rehabilitated, the owls were released back into their natural habitat.
The resulting biodiversity index measurements at the conservation
site reached 4.10 in 2025, up from 3.99 the previous year.
Our firm resolve to protect endemic species and sustain ecological
balance is thus demonstrated through these programmes, which are
carried out in partnership with conservation authorities and local
communities. Barn Owl Conservation in Sinorang Village,
Central Sulawesi, Indonesia
1 The conservation of components of biological diversity outside their natural habitats (source: CBD).
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Restoring Marine Ecosystems by
Transplanting Coral and Conserving
Endemic Fish, and Sea Turtles
Since 2010, our non‑operated asset, JOB
Tomori, has implemented a multi‑year coral
transplantation programme to restore coral reef
ecosystems and support local fisheries. Now in
Phase VIII (2024–2026), the programme has
increased coral‑associated fish species from
275 in 2024 to 283 in 2025, alongside significant
growth in fish abundance that benefits
surrounding fishing communities. The
subsequent biodiversity index at the coral
transplantation site rose from 7.01 in 2024 to
7.10 in 2025, reflecting improved ecosystem Release of BCF at The Kilo 5 Luwuk Coral Transplantation Site, Central Sulawesi
health and sustained biodiversity.
In 2025, we also introduced 100 Banggai
Cardinalfish (BCF) at the Kilo 5 Luwuk Beach
transplantation site. This endemic species is on
the IUCN Red List due to overexploitation in the
ornamental fish trade. Our initiative builds on
earlier releases at the Tiaka field site and
supports population recovery efforts.
We additionally conducted biodiversity index
assessments at the turtle conservation site in
Sinorang Pantai Village with the Biodiversity
Team from Tadulako University, Palu, Central
Sulawesi. This site recorded a biodiversity index
of 4.10 in 2025, indicating healthy ecological
conditions. These initiatives reinforce our
commitment to marine biodiversity, sustainable Sea Turtle Conservation Activities at Sinorang Village, Central Sulawesi
fisheries, and the protection of culturally
significant species.
Empowering Communities through
Bamboo Cultivation
Bamboo, once viewed as an ordinary plant, has
now become a source of new opportunities for
residents of Tenayan Industry Village, Riau.
Medco Foundation, together with MRPR, held a
training programme on bamboo cultivation and
its use in both environmental conservation and
communities’ economic opportunities. The
training provided practical skills whilst
demonstrating how bamboo can serve as an
environmentally friendly and commercially viable Bamboo processing training for value‑added products
resource. in Tenayan Industrial Village, Riau, Indonesia
Fostering Biodiversity and Habitat
Conservation through Education
The MRPR conducted a Biodiversity Action
Plan campaign focused on raising awareness
about biodiversity and conserving endangered
animals. This two-day event was conducted
at public elementary, junior and senior high
schools along the MRPR gas pipeline route
with a total of 170 student participants.
The MRPR is situated in Siak Regency, Riau
which features a unique and rich ecosystem of
flora and fauna. Through this initiative, we
reinforced our commitment to the Sustainable
Development Goals, particularly goals 13
(Climate Action) and 15 (Life on Land), which
Biodiversity Awareness Campaign to at public schools near MRPR Gas-fired IPP,
focus on conserving endangered species and Riau Province, Indonesia
restoring habitats.
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Social Management System (SMS)
We recognise that effective management of social aspects requires The SMS operates through a continuous Plan–Do–Check–Act (PDCA)
continuous engagement, as our operations and stakeholder cycle to monitor performance and drive continual improvement.
expectations continue to evolve. Accordingly, our Social Key elements include the identification of emerging social risks,
Management System (SMS) responds to these dynamic conditions implementation of targeted management programmes, strengthening
by embedding social risk management within our Health, Safety and organisational capability, fostering meaningful stakeholder engagement,
Environment Management System (HSEMS). This integration maintaining accessible grievance mechanisms, and robustly monitoring
ensures alignment with our Sustainability Policy, while protecting outcomes, all of which support the maintenance of our social licence to
both stakeholders and business operations. operate. An overview of the SMS framework is presented in the
infographic below, with detailed information available on our website.
MedcoEnergi’s Social Management System Elements
Organisational Competency & Capacity
Cross functional coordination in managing social aspects
Stakeholder Engagement
Management Programme Managing relationships with
Social management and stakeholders
impact mitigation plan 3 4
2 5
Grievance Mechanism
Risk Identification Handling grievances from
and Impacts communities and stakeholders
Social risks are identified
and analysed 1 6
8 7 Monitoring
Social Policy Monitoring and evaluating
Management commitment in implementation
social aspect management
Review
Senior management establishes a continuous improvement process
SMS Implementation
Effective implementation of the SMS depends on sustained cross‑functional collaboration at both corporate and asset levels, supported by
the continuous strengthening of organisational capability to manage social risks. Throughout 2025, we maintained full alignment of the SMS
with our Sustainability Policy and Health, Safety and Environment Management System (HSEMS). Key initiatives included:
• Identifying and mitigating principal social risks at each asset,
including social mapping, stakeholder engagement planning, and
the assessment of potential community impacts to prevent
operational disruption.
• Developing asset level implementation plans based on identified
improvement areas and the outcomes of management reviews.
• Deploying an integrated dashboard to enhance management
oversight, enabling systematic monitoring and timely resolution of
social risks and issues.
• Strengthening asset level capabilities through regular knowledge
sharing sessions, including Root Cause Analysis (RCA) training
focused on social aspects to improve incident analysis and
corrective and preventive actions.
• Revising grievance mechanism guidelines to ensure a systematic,
Root Cause Analysis (RCA) Training on Social Aspects,
effective and accessible process. Jakarta, Indonesia
• Assessing the effectiveness of grievance mechanisms in line with
the United Nations Guiding Principles on Business and Human
Rights (UNGPs).
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Social Management
System Monitoring
Monitoring the SMS ensures effective
management of social risks and impacts
through structured oversight and evaluation.
Reviews are conducted bi-annually at the
management level, supported by routine
asset‑level assessments. These activities
strengthen governance, enhance
accountability, and drive continuous Semi-annual SMS Implementation, Monitoring and Review in Jakarta, Indonesia
improvement across our operations.
Alignment of Sustainability Initiatives with the UN SDGs
The table below aligns MedcoEnergi’s initiatives to enhance our environmental and social safeguards with the relevant United Nations
Sustainable Development Goals (UN SDGs). These initiatives only highlight MedcoEnergi’s effort and do not imply MedcoEnergi has set or
measured targets for host governments in our operational areas regarding the achievement of the UN SDGs.
UN SDGs Relevant UN SDGs Targets1 Key Initiatives
• Health, Safety and Environment Management System
• Social Management System
3.9
• Sustainability Assessment
• Environmental Compliance
• Wastewater Monitoring and Management
6.3, 6.4, 6.6 • Water Conservation and Efficiency
• Watershed Rehabilitation
• Air Emissions Management
12.2, 12.4, 12.5, 12.6 • Hazardous and Non-Hazardous Waste and Effluent Management
• Environmental Data Reporting
14.1, 14.2, 14.5, 14.b Oil Spill Reduction Efforts
• Revegetation and Mangrove Rehabilitation Programmes
15.1, 15.2, 15.4, 15.5 • Conservation of Endangered Species
• Biodiversity Conservation and Education Initiatives
1 The targets can be found in UN SGDs website (https://sdgs.un.org/goals)
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Action Plans
The following action plans will enable us to meet our objectives and continue enhancing our environmental and social safeguards. We
regularly measure, monitor and report on our progress and performance and match them against these actions. The progress report of these
action plans refers to the 2023 - 2027 Sustainability Road Map. Since we have passed the short term period and actions were concluded in
2025, our current focus is on the status of the medium/long term actions.
Category Short-term Actions Medium/Long-term Actions Status
Water Determined water usage Determine water usage Completed water usage forecast and data
(consumption) target based reduction programmes for benchmarking.
on benchmarking data. normal operations and drilling
programmes; continue
expanding them at Onshore,
Corridor, Offshore and
Marine Operations.
Determined water usage Establish Water Scarcity and Implemented water reduction programmes,
reduction programme in Flood Monitoring System; including seawater lift pump optimisation
normal operations and drilling implement the programmes (Belanak), automatic taps and awareness
programmes. at Corridor, Block A, campaigns (Offshore), and treated wastewater
Bangkanai, South Sumatera, reuse (SSB, Rimau, Corridor, Lematang).
Medco Power and other
assets.
Air Quality Developed strategies to align Implement the strategies for Oil & Gas:
with and adapt to updated Medco Oil & Gas and Medco
regulations. Power assets and monitor • Continued monitoring Indonesian Oil & Gas
their performance. emissions per Permen LHK 11/2021; as of 2025,
all engines comply.
• Continued monitoring Indonesian Oil & Gas
flaring reports per Permen ESDM 17/2021; as of
2025, all assets categorised flaring as regulated.
Established Environmental Implement the protocols for Conducted environmental audits in compliance
Audit Protocol including air Medco Oil & Gas and Medco with the KLHK PROPER rating programme.
emissions. Power assets.
Effluents and Waste Determined waste and Develop waste and effluent Oil & Gas:
effluents load targets based load reduction programme;
on benchmarking data. implement the programme at • Completed waste forecast and data
Corridor as pilot project and benchmarking.
expand to Onshore and • Implemented waste reduction programmes,
Medco Power assets. including 3R initiatives (South Natuna Sea Block
B, Corridor, Sampang, Lematang), refillable
bottle campaigns (SSB, Lematang, Bangkanai,
Rimau, Sampang), and composting (Block A,
Rimau, Corridor).
• Hazardous waste reductions include MGB
catalyst optimisation (Belanak), quality-based
lube oil replacements (South Natuna Sea Block
B), LED light replacements (SSB, Corridor,
Sampang), and rechargeable battery adoptions
(SSB, Lematang, Sampang).
Biodiversity Conducted biodiversity Implement biodiversity Conducted biodiversity impact assessments for
assessments (asset level). monitoring. environmental permit development and reported it
periodically in the RKL-RPL Report.
Local Community Developed annual SMS plans Develop SMS plans based on Oil & Gas:
(SMS) for all assets based on prior identified improvement areas
monitoring and management and management reviews. • Developed asset-specific SMS implementation
reviews. plans.
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Category Short-term Actions Medium/Long-term Actions Status
Local Community - Updated social risk Key social risks are identified Oil & Gas:
SMS identifications and mitigation and mitigated.
measures. • Developed specific social risk and mitigation
documents.
Power:
Updated social risk identifications for land
compensations for Ijen Geothermal ROW
Transmission, East Bali Solar PV Project and
Sulut-1.
Tracked, analysed, and Oil & Gas:
resolved grievances through
the R&S Integrated • Analysed social grievance trends.
Dashboard. • Monitored and recorded grievances on
Integrated Dashboard.
Reviewed and revised Oil & Gas:
grievance mechanism
guidelines as needed. • Updated grievance mechanism guidelines.
• Developed evaluation tools for grievance
Assessed effectiveness in process stages.
accordance with the UN • Evaluated Corridor and SSR grievance
Guiding Principles on mechanism implementation.
Business and Human Rights
(UNGPs). Power:
• Developed community grievance redress
mechanisms in alignment with UNGP’s criteria.
Monitored asset SMS Maintain SMS maturity level Oil & Gas:
implementation progress and targets and identify
identified opportunities for improvements (i.e. • Conducted semi-annual SMS monitoring and
continuous improvement. continuous improvements). senior management reviews.
Power:
• Continue to monitor Annual Stakeholder
Engagement Programme implementation.
• Continue to monitor annual SMS
implementation.
Developed guidelines on Set social incident rate Developed SIFR guidelines.
Social Incident Frequency targets and achieve
Rate (SIFR). excellence in socially
responsible management.
Mangrove Growth Monitoring in Muara Gembong, West Java, Indonesia
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102 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
Advancing Our
Health and
Safety Culture
Safe Working at Height
This picture is the 1st winner under the ‘Health & Safety’ category of the MedcoEnergi 2025 Photography Competition.
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104 Approaches, Commitments, and
Goals
104 Operational Excellence (OE)
106 Our Health, Safety, and
Environmental Management
System (HSEMS)
110 Health and Safety Performance
112 Key Programmes and Initiatives
115 Alignment of Sustainability
Initiatives with the UN SDGs
116 Action Plans
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104 the Management Summary MedcoEnergi Sustainability in Governance Climate Action Social Safeguards
MedcoEnergi is committed to protecting the well-being of our employees, business partners, and the environment. This commitment is built
into our Health, Safety and Environmental (HSE) Policy and supported by our Operational Excellence (OE) Framework, helping us promote
consistent, disciplined, and reliable HSE performance across our operations.
Approaches, Commitments, and Goals
Our core objective is to prioritise the health and safety of our communities to raise safety awareness and enhance emergency
workforce and stakeholders. We believe all work-related incidents preparedness.
and occupational illnesses are preventable. Guided by our HSE
Policy and implemented through our HSEMS, we comply with Our HSE Policy reflects stakeholders feedback and aligns with global
host-government laws, industry best practices and relevant environmental treaties and policy objectives. Supported by strong
international standards, and pursue zero incidents by setting clear HSE governance and ISO-aligned risk management across our Oil &
targets, monitoring performance and providing comprehensive Gas and Power operations, we foster a safe, resilient, and
training for employees and contractors. We also engage sustainable working environment for all.
Operational Excellence (OE)
We use a structured and collaborative OE Framework to drive
safety, reliability and efficiency across all assets, applying the
Plan–Do–Check–Adjust (PDCA) cycle for continual improvement.
A
SE
&
H
OI
Advancing Operational Excellence at
Medco Oil & Gas OPERATIONAL
We continue to improve HSE performance, Asset and Operating EXCELLENCE
Integrity (A&OI), operating efficiency and cost management through
the OE Framework. Strategic improvement plans address Enabling safe, reliable,
and efficient operations
CY
CO
performance gaps and sustain maturity.
EN
ST
CI
In 2025 we strengthened OE embedding and workforce capability
M
FI
AN
EF
through leadership development, regular competency reviews and AG
EM NG
onsite certifications at the Competence Assessment Centre TI
EN RA
T OPE
(Tempat Uji Kompetensi/TUK)1 to build safe, efficient and reliable
operating environments.
Collaboration &
Leadership Development
Knowledge Sharing
The Operations Academy develops future leaders, targeting 26 personnel Since 2023, initiatives have been ongoing to elevate Thailand’s Operational
across all assets to support long-term strategic goals. Running from June Excellence (OE) Expectation to Level 3 in the A&OI and HSE pillars.
2025 to June 2026, this programme comprises three in-person
workshops, three online mentoring sessions, and a final presentation. Key milestones include:
It aims to:
• Build leadership aligned with Medco Leadership Behaviors and • Oct–Dec 2023: Development of Job Performance Profiles for
strengthen the talent pipeline. operations personnel (assessed in Q1 2024).
• Empower supervisors to advance safety culture and operational • Nov 2024: Management of Change (MoC) personnel development
excellence. programme (Go-Live: Mar 2025).
• Enhance technical skills for safe and effective operational problem- • Jun 2025: Learning Business Process and System development for
solving. BPM Operations Training & Certification (Go-Live: Dec 2025).
Workshops initially focus on technical skills, followed by leadership These initiatives strengthen workforce competencies and support the
development in a high-performance culture. continued advancement of OE standards in Thailand.
1 Tempat Uji Kompetensi (TUK) or Competency Assessment Centre.
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Operations Competency Workforce Multiskilling &
& Learning Certification
In 2025, MedcoEnergi laid the groundwork for the upcoming
2026 Operations Apprentice Development Programme (OADP),
a structured 12-month programme targeting 32 fresh graduates
from polytechnics and the Oil and Gas Academy (Akademi
Minyak dan Gas/AKAMIGAS). The preparation phase included
programme design, curriculum development, and coordination
with partner institutions to ensure the programme is equipped
to produce technically competent, safety-conscious, and
field-ready operators and technicians.
In Rimau, Tarakan, and Corridor, we improved safety and
Regular Competency Assessments ensure operations are technical compliance through targeted training programs,
performed by qualified personnel, maintaining a safe work delivering measurable efficiency gains and significant cost
environment and complying with Medco Oil & Gas’ savings, particularly by reducing travel and external training
requirements and government regulations. In 2025, expenses.
assessments covered technicians and operators in South
Natuna Sea Block B and Corridor, and operators in Sampang, These initiatives demonstrate a structured approach to
Madura and Onshore, reinforcing workforce capability and developing workforce competencies whilst ensuring operational
operational safety across all assets. efficiency and cost effectiveness.
Embedding a Culture of Operational Excellence at Medco Power
Medco Power positions OE as a central pillar of safe, reliable and
efficient operations, focused on developing people, executing work
through standardised processes and tools, and delivering
measurable performance. It is designed to drive sustainable growth
through value-focused performance, uphold high standards of safety
and integrity, strengthen efficiency and cost discipline, and embed
continuous improvement to deliver responsible power generation.
The PDCA cycle reinforces continuous improvement. Our
programme identifies and executes opportunities using a structured
methodology (e.g. Define–Measure–Analyse–Improve–Control, or
DMAIC) to strengthen operational reliability. Follow ups and closures
of corrective actions from corporate OE assessments remained a
priority in 2025.
Operability Assurance (OA) was carried out in alignment with OE
standards for key projects, including ELB Expansion in Batam, East
Bali Solar PV and Ijen Geothermal, addressing high‑risk activities,
ensuring operational readiness and smooth transitions.
A company wide Document and Information Management
Programme improved accessibility, integrity and efficiency of
information through a centralised Electronic Document Management
System (EDMS) portal.
Employees conducting operational checks
Medco Power’s EDMS Portal
at the Ijen Geothermal, East Java, Indonesia
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Our Health, Safety, and Environmental
Management System (HSEMS)
Our HSEMS, integral to the OE Framework, provides a consistent approach to identifying and managing HSE risks to protect people, assets
and the environment. Each asset and business unit plans, oversees and strengthens HSE implementation; contractors and suppliers are
required to comply. The HSEMS Manual sets out clear managerial responsibilities to enable consistent application and effective
communication.
Quarterly
Corporate Board Committee (CBC) • Approve corporate HSE vision/mission, policies, management
systems, standards, goals, KPIs.
Chairperson: Director & Chief Operating Officer • Approve corporate audit plans.
Co-chair: Director & Chief Administrative Officer • Review corporate HSE performance and provide strategic direction.
Members: Senior Vice Presidents (SVPs), MPI Chief • Approve incident investigations’ terms of reference and incident
Executive Officer, VP Project Development & Engineering investigation reports of high potential near misses & injuries and
Excellence, VP HSE, VP Technical Assurance high-risk incidents.
• Approve Corporate HSE programmes.
Monthly
Asset Leadership Team (ALT) • Approve assets’ timelines of corporate HSE procedures and tools
implementations.
Chairperson: VP Operations, General Manager • Participate in corporate audits.
Members: Senior Managers, Managers • Approve and implement asset’s goals, KPIs, HSE programmes.
• Review asset’s HSE Performance.
• Communicate and discuss incidents’ lessons learned.
Monthly
Functional Leadership Team (FLT) • Approve and implement HSE site specific procedures.
• Participate in corporate audits.
Chairperson: Operations Managers, Field Managers/ • Implement assets’ goals, KPIs, HSE programmes.
General Manager, Offshore Installation Managers
• Review sites’ HSE performance.
Members: Lead/Superintendent, HSE Managers • Report any incidents and near misses.
MedcoEnergi’s HSEMS is aligned with both
global and national standards across
operational assets. We adhere to ISO
45001:2018 for Occupational Health and
Safety and ISO 14001:2015 for
Environmental Management Systems;
some assets maintain certification for both.
A detailed list of certified Oil & Gas and
Power assets is provided on page 88 of this
report. Our Oil & Gas HSEMS also complies
with Indonesia’s regulatory requirements,
including Government Regulation No.
50/2012 and the Safety Management
System (Sistem Manajemen Keselamatan
Migas/SMKM) of the Ministry of Energy and
Mineral Resources.
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Health, Safety, and Environmental Management System (HSEMS)
Element 1: Leadership, Policy and Responsibility
Element 2: Planning, Goals & Programmes
PLAN
Element 3: Risk and Opportunity
Element 4: Legal Requirements and Operating Standards
PLAN Element 5: Documented Information
DO Element 6: Training, Competence and Awareness
Element 7: Communication, Participation, Consultation and Campaigns
CONTINUAL DO Element 8: Operational Control
Element 9: Asset Management and Operating Integrity
IMPROVEMENT
Element 10: Contractor Management
Element 11: Emergency Preparedness
ACT
CHECK Element 12: Non-conformities, Investigation, Learning from Events and
Corrective Actions
CHECK Element 13: Monitoring and Measurement
Element 14: Audit
ACT Element 15: System Review
Hazard Identifications, Risk Assessments, and Implementation of Associated Control
The following table summarises our ongoing 2025 initiatives to strengthen hazard identifications and implement corresponding control
programmes.
Category Asset 2025 Activities
Oil & Gas In Indonesia – Onshore Corridor Hazard and operability (HAZOP) revalidations at Rawa, Ramba, and
Suban Baru to enhance process safety across the assets.
South Sumatra Block HAZOP revalidations for South Sumatra Block (Matra Station, Matra
Receiving, Meta, and Ibul) to improve process safety.
Rimau HAZOP revalidations for Rimau (Kaji Satellite & Semoga).
Tarakan HAZOP revalidation for Tarakan.
Oil & Gas In Indonesia – Offshore South Natuna Sea Block B Hazard identification (HAZID) workshop for Matak Jetty facilities
focusing on berthing/unberthing, cargo handling and bunkering/
debunkering activities.
HAZOP transient1 in Forel Bronang focusing on Liquid Carryover (LCO)
low pressure flare knock out drum activities.
Sampang HAZOP revalidations for Onshore Processing Facility (OPF) Grati to
evaluate risks and identify hazards.
Oil & Gas International Thailand HAZOP revalidation and safety case update for Bualuang facilities.
Oman KSF HAZID workshop for the Ilham Steam Flood Pilot Project to enhance
process safety measures.
Power Ijen Geothermal Construction risk assessments, HAZID/HAZOP studies, Safety Critical
Elements (SCE) and Reliability, Availability, and Maintainability (RAM)
studies as well as Pre-Start-Up Safety (PSSR) and Operational
Readiness Reviews (ORR), to ensure safe start-up process and
smooth operations.
ELB Expansion Combined Construction risk assessments; HAZID/HAZOP; SCE; RAM studies;
Cycle Power Plant (CCPP) PSSR and ORR to ensure safe start‑up and smooth operations.
East Bali Solar PV Safety and Operability (SAFOP) review, PSSR and ORR.
1 Hazard and Operability Study focused specifically on non‑steady‑state (transient) operating conditions, rather than normal steady‑state operation.
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Bualuang HAZOP Revalidation and Safety Case Updates
The HAZOP revalidation and safety case
updates ensured process safety risks
remained at acceptable levels after facility
modifications. The review covered
production, utility and power systems and
reassessed major accident hazards (e.g.
hydrocarbon releases, dropped objects,
structural failures, helicopter/vessel
operations and personnel transfers).
Preventive and mitigative measures were
reviewed to confirm the effectiveness of
safety barriers.
Overall, the assessments confirmed that
major hazards are effectively managed
through technical, operational, and HAZOP Revalidation for Bualuang asset, Thailand
organisational measures that maintain safe
and compliant operations in accordance
with regulatory requirements.
Asset Integrity
In 2025, we assessed asset integrity across our Oil & Gas facilities and Power plants to maintain the ongoing reliability and safety of our
operations. The activities are outlined as follows:
Category Asset 2025 Activities
Oil & Gas In Corridor Inspections of topside facilities, including Risk‑Based Inspection (RBI) and certification; review of
Indonesia – small‑bore and dead‑leg systems; fugitive emissions survey using a Forward Looking Infrared
Onshore (FLIR) camera; and implementation of the Abnormal Operating Risk Visualization (AORV) system for
real-time operational risk monitoring.
South Sumatra Inspected 64 pressure vessels and six tanks; welding repairs on one pressure vessel at Gunung
Block Kembang.
Lematang Replaced Flowline Singa 1 & 3 with above‑ground carbon‑steel piping; replaced high‑corrosion
gaskets and tightened uneven‑gap flanges at Singa Central Processing Plant (CPP); installed
mechanical clamps on corroded condenser gaskets; completed Alternating Current Voltage
Gradient (ACVG) survey of underground piping at CPP.
Rimau Welding repairs on three pressure vessels; composite repairs on the Skimmer Tank at Kaji Satellite;
inspections of 13 pressure vessels; tank chime sealing with viscoelastic material to prevent
bottom‑plate corrosion at Skimmer.
Block A Intelligent pigging of Alur Siwah Trunkline; shutdown inspections; repairs and re‑coating of the
sulphur silo; ACVG surveys; refurbished cathodic protection at CPP.
Bangkanai RBI baseline and follow‑up inspections; intelligent pigging at Kerendan Cluster to Gas Processing
Facilities (GPF); leak testing and repairs on buried closed drain; failure analysis of produced‑water
system; refurbished cathodic protection at Kerendan GPF.
Tarakan Surveyed all trunklines; identified potential damage mechanisms and planned corrective actions for
2026; re‑routed sales‑gas pipeline from G8 Station to Perusahaan Gas Negara (PGN) using
non‑metallic material.
Oil & Gas Indonesia South Natuna Inspected risers and did minor repairs; repaired regen gas heater at Belanak; dead‑leg and chemical
– Offshore Sea Block B injections; cathodic‑protection readings; inspected tube‑coolers and piping; inspected boltings at
North Belut; completed RBI due in 2025.
Sampang Inspected flares and produced‑water lines at Grati OPF; inspected stainless‑steel equipment at
Maleo Wellhead Platform (WHP); completed RBI due in 2025.
Oil & Gas Thailand Addressed Under‑Deposit Microbial Corrosion (UDMC) using High Velocity Thermal Spray–Metal
International Reinforced Polymer (HVTS-MRP) hybrid technology as part of sustainable remediation strategies.
Oman KSF Maintained well integrities via 303 wellheads and 55 subsurface integrity tests; inspected Glass
Reinforced Epoxy (GRE) pipelines (four sections) above‑ground and in windrows; conducted
intrusive preventive maintenance on the steam generator at Basma Steamflood Facilities.
Power MPI Subsidiaries Developed Asset Integrity Management System (AIMS); AI workplans for MRPR, MEB DEB and
(MRPR, Ijen Geothermal; baseline-inspected corroded fuel‑gas piping (including SCEARA development) and
MEB-DEB, Ijen air headers; baseline-inspected MRPR; supported material selections for Batam Expansion static
Geothermal) equipment and MRPR Heat Recovery Steam Generator (HRSG) piping.
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Asset Integrity Enhancement through Digital Risk Monitoring at Corridor Asset
Our Corridor Asset reinforces asset integrity through the implementation of a digital safety system called the Abnormal Operating Risk
Visualization (AORV). This system enables comprehensive monitoring of abnormal operating conditions and provides clear visualization of
cumulative risks that may not be readily identified through conventional assessments. AORV displays real-time data on structural and
containment integrity deviations, deferred preventive maintenance, safety system bypasses, fugitive emissions, and Safety Critical
Equipment (SCE) impairments. It also generates area-specific risk profiles that are integrated with active Work Permits and other high-risk
activities. This integrated view provides field leaders with a holistic understanding of current operational risk, supporting timely, risk-based
decision-making in line with prevailing site conditions. The plan is to extend the implementation of this system to both Onshore and Offshore
assets.
Bualuang Under-Deposit Microbial Corrosion (UDMC) Remediation
To ensure long-term operational integrity against UDMC, MedcoEnergi implemented sustainable corrosion remediation strategies using High
Velocity Thermal Spray-Metal Reinforced Polymer (HVTS-MRP) hybrid technology. Severe microbial corrosion in Bualuang separators and
produced water drums was addressed with a hybrid system combining NiCrMo alloy thermal spray and polymer overlay, replacing short-term
weld build-ups and biocide dosing1.
These solutions restored structural integrities, provided dense corrosion barriers, extended vessel life by over 11 years with metal loss below
0.05 mm per year, reduced lifecycle costs by 40%, and lowered HSE exposure by 66% due to fewer intrusive repairs. This first Gulf of
Thailand HVTS-MRP application offered a replicable, sustainable approach to managing corrosion risks that ensured safe, reliable, and
cost-efficient operations through the end of the Bualuang concession. They also fully complied with the American Petroleum Institute (API),
the American Society of Mechanical Engineers (ASME), and the National Board Inspection Code (NBIC) standards.
UDMC Surface Profile HVTS-MRP Works Surface Profile Post Repair
2025 Best Partner Award
Medco Oil & Gas, through its Operations Competency & Learning
(OCL) Department, was honoured with the Best Partner Award at
the PPSDM Migas Appreciation Day 2025 on 24 January 2025.
This recognition celebrates our ongoing commitment to develop
employee competencies and support professional certifications.
Best Partner Award at PPSDM Migas Appreciation Day 2025
2025 Patra Nirbhaya 2025 Soebroto Award
MedcoEnergi’s assets (i.e. JOB Tomori, Corridor, Block A, PT Medco Energi Internasional Tbk (MedcoEnergi), through two of
Lematang, Tarakan, Bangkanai, JOB Simenggaris, Sampang, its PSCs, received the 2025 Subroto Award from the Indonesian
Madura Offshore) received Patra Nirbhaya awards during the Migas Ministry of Energy and Mineral Resources. This award was
Safety Recognition 2025. This national award, given by the Ministry presented to Corridor in the categories of Oil & Gas Safety and Gas
of Energy and Mineral Resources, is presented to Oil & Gas Flaring Optimization, and to Rimau in the categories of Non-Tax
companies that have achieved high numbers of safe working hours State Revenue (Penerimaan Negara Bukan Pajak/PNBP) and
without any lost workdays due to accidents. Upstream Oil & Gas Financial Performance.
1 Biocide Dosing: Adding chemicals to water systems (e.g., cooling towers, chillers) to control microbial growth, including bacteria, algae, and fungi, using either slug dosing (intermittent
shock doses) or continuous dosing.
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Contractor HSEMS (CHSEMS)
Contractors make up the majority of our workforce; effective
contractor management is therefore critical. Our CHSEMS,
integrated with OE and HSEMS, sets clear expectations, including
pre‑screening for safety performance in line with regulatory
requirements.
As part of MedcoEnergi’s commitment to continuous improvement
in contractor management and safety performance, contractors’
performance is monitored across all active contracts, covering
Operations, Projects, Wells, and other functions. We monitor
consistently throughout contract lifecycles, from premobilisation to
work‑in‑progress audits and final evaluations, to verify readiness,
monitor compliance, and assess overall contractor performance.
Monthly forums share results, progress, and lessons learned to Monthly Contractor HSE Forum and Performance Review
promote accountability and continual improvements.
Health and Safety Performance
We closely monitor our Occupational Health and Safety (OHS) performance using KPIs to identify areas to improve and ensure that
programmes are effectively implemented. In 2025, our focus remained on improving the Total Recordable Incident Rate (TRIR) for both
Medco Oil & Gas and Medco Power. Our consolidated TRIR remained low below the International Association of Oil & Gas Producers (IOGP)
benchmark; however, it increased slightly from 0.16 in 2024 to 0.22 in 2025. This underscored the need to continually strengthen safety
culture and operational assurance. Notably, we achieved zero fatalities for the fifth consecutive year, reaffirming our dedication to safe
working environments. We remain focused on sustaining this record and further reducing TRIR, with the goal of zero incidents. The following
graph illustrates our TRIR performance against the latest benchmarking data.1
TRIR at Medco Oil & Gas and Power in 2020-2025
1.00 0.90
0.84 0.81
0.77
0.80 0.70 0.66
0.77
0.60 0.69 0.59
0.48
0.46
0.39 0.53
0.40 0.33 0.33 0.33
0.29
0.21 0.24 0.15 0.18 0.16 0.22 0.15
0.20
0.10
0.00 0.00 0.00
0.00
2020 2021 2022 2023 2024 2025
Medco Consolidated Oil & Gas Power IOGP Asia/Australasia IOGP Overall
Our HSE performance is illustrated in the tables below.
Employees Contractors Employees Contractors
Oil & Gas Power
2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025
Numbers of - - - - - - Numbers of - - - - - -
Fatalities Fatalities
Fatality Rate - - - - - - Fatality Rate - - - - - -
Lost Time Injury2 - - - - 1 2 Lost Time Injury2 - - - - - -
LWDC LWDC
Lost Time Injury - - - - - -
Lost Time Injury - - - - 0.04 0.06 Rates2,3,4
Rates2,3,4
Total Recordable - - 2.54 - 0.57 -
Total Recordable 0.20 - - 0.17 0.11 0.17 Incident Rates3,4
Incident Rates3,4
Occupational - - - - - -
Occupational - - - - - - Disease Rates
Disease Rates
1 The number of Total Recordable Incident (fatalities + lost workday cases + restricted workday cases + medical treatment cases) per million hours worked. Source for benchmarking:
Data Series International Association of Oil & Gas Producers (IOGP) Safety performance indicators - 2024 data, issued in June 2025. Workforce includes employees and contractors.
2 Incidents include both injuries and illnesses.
3 Lost Time Injuries include fatalities, permanent disabilities, and lost workdays.
4 Full details regarding working hours can be found in GRI indicator 403-9 disclosures in the 2025 GRI Performance Data.
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Process Safety Performance
Our process safety includes identifying, assessing, and mitigating risks through the key parameters listed below:
Incident Response
Standards and Two-Barrier Safety
and Recovery
Procedures Policy Cases
Mitigation Plans
Equipment Operation Process
Staff Testing and Contractor
Competencies Safety Capability
Certification Requirements
Enhancement
We evaluate asset and operational integrities through process safety indicators to minimise Process Safety Events (PSEs). In 2025, we
enhanced asset integrity for ageing facilities, and assessed process safety performance across all our assets.
Process Safety Event (PSE) 2023 2024 2025
Tier 1 PSE1 - 1 -
Tier 1 PSE Rate per 1,000,000 Work Hours - 0.03 -
Tier 2 PSE 1
3 6 5
Tier 2 PSE Rate per 1,000,000 Work Hours 0.11 0.19 0.16
In 2025, Tier 1 PSEs were zero and Tier 2 PSEs decreased compared with 2024. We continued upskilling process safety capabilities,
strengthening asset integrity and inspection programmes, and enhancing assurance of Safety Critical Equipment (SCE).
Elevating Process Safety Competencies Across Oil & Gas Assets
To strengthen our process safety culture and sustain operational excellence, Medco Oil & Gas, through the OCL Department, launched a
comprehensive Process Safety Upskilling Programme in 2025. Throughout the year, a total of 22 sessions were conducted under this
programme, reaching 557 employees across assets. The initiative aimed to enhance leadership and technical competencies, ensuring
consistent applications of process safety principles across Indonesian and international assets. Process safety remains our cornerstone for
sustainable operations and regulatory compliance.
Through a structured upskilling programme for leadership and field personnel, we reinforced risk‑based decision‑making, hazard recognition
and consistent applications of process safety principles. Interactive modules and case studies helped close knowledge gaps and embed a
proactive safety culture across Indonesian and international assets.
Evaluating Process Safety Competencies Across Medco Oil & Gas Assets
Product Safety
We ensure product safety through disciplined operations and asset integrity. At Medco Oil & Gas, hydrocarbons are produced and supplied in
line with contractual specifications and regulatory requirements, supported by product specifications and Material Safety Data Sheets. At
Medco Power, electricity is generated and delivered in accordance with contractual and regulatory provisions, supported by operational
controls and reviews.
1 The definition of Tier 1 and Tier 2 PSEs refers to American Petroleum Institute Recommended Practice Process Safety Performance Indicators for the Refining and Petrochemical
Industries; Second Edition.
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Key Programmes and Initiatives
Our commitment is implemented through a variety of HSE programmes and initiatives tailored for our employees, business partners, and
local communities.
Incident Prevention Initiatives
In 2025, we progressed a range of OHS programmes aimed at safeguarding our people and optimising processes to prevent accidents.
Key highlights include:
Corporate HSE Audit – Journey to Safer and Better Operations
The HSE Corporate Audit reinforces our commitment to the highest Health,
Safety, and Environmental standards. It independently and objectively
assesses HSEMS implementations, Company requirements, and legal and
regulatory compliance at the asset level.
In 2025, audits were conducted in Thailand and Ijen Geothermal. These
audits strengthened our HSE foundation by identifying risks, promoting
accountability, and driving continuous improvements to make our
organisation safer and more resilient. Lessons learned and good practices HSE Audit at Ijen Geothermal, East Java
were subsequently shared across other assets.
Tarakan PSC Audit SIAP SELAMAT1
In response to national safety concerns, SKK Migas launched the Audit K3
SIAP SELAMAT to strengthen HSE performance in Indonesia’s upstream oil
& gas sector. Medco Oil & Gas fully participated, demonstrating our
commitment to HSE excellence.
Using the PTK-005 framework2, the auditors reviewed the Tarakan Asset’s
safety system through document checks, site inspections, and interviews.
The audit confirmed compliance with SKK Migas HSE requirements and
provided insights to further enhance our HSE systems and culture.
Journey Management Cross-Asset Audit 2025
A cross‑asset audit assessed the maturity, effectiveness and compliance of
Journey Management, including the Life Saving Rule on driving and the use
of Artificial Intelligence (AI)‑enabled in‑vehicle monitoring to mitigate Cross-Asset Journey Management Audit
behaviour and risks. Findings were shared to harmonise practices and
address gaps.
bSafe: ONE Comprehensive Mobile Application for ALL, to be Safer,
More Simple, More Innovative, and Efficient
The bSafe platform extends access to corporate safety tools for personnel
without corporate accounts (for example: service contractors), integrating
multiple back‑end systems for registration, campaigns, reporting and
verification. It enables real‑time engagement, improves efficiency and
reduces time and costs.
HSE Incident Lessons Learned Tracking System
A centralised system registers and tracks incident lessons and corrective
actions from assignment to closure. It integrates lessons across sites and
generates standardised reports for analysis and continuous improvement.
Since its launch in May 2025, it has documented 15 lessons from both Integrated Mobile Safety Platform
internal incidents and external SKK Migas cases, monitoring actions across through bSafe
31 MedcoEnergi sites. As of October 2025, eight lessons have been
completed and applied in improvement discussions.
Safety Perception Survey
A 2025 Safety Perception Survey gathered workforce insights in Wells
operations to understand their knowledge, perceptions and behaviours as
well as inform programme designs and strengthen HSE culture in high‑risk
activities. This survey was carried out in partnership with the University of 2025 Safety Perception Survey in
Indonesia. Wells Operations
1 SIAP SELAMAT (READY TO BE SAFE) is an audit programme conducted by SKK Migas. It stands for Safety Integrity Audit Programme and includes systems, equipment, labour, assets,
management, ALARP, and TRM (Technology Risk Management).
2 PTK-005 or SKK Migas’s Work Procedure Guidelines No. 005 Year 2018 was established for PSCs and business partners to develop, implement, and enhance HSE Management.
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Employees’ Health
Medco Active Movement (MAM) 2025
MAM 2025 encouraged physical activity, nutrition and mental health for all personnel across all assets, fostering engagement as “One Team,
One Medco”, whilst commemorating MedcoEnergi’s 45th anniversary.
Medco Active Movement
Wellness Warrior 2025
This programme promoted
regular exercise and weight
management, with participation
tracking and pre‑/
post‑programme health checks
(e.g. body weight and basic
laboratory indicators). Weekly
participation trends were tracked
and shared at the HSE Action
Committee (HSEAC) meetings.
Wellness Warrior
The Safety Leadership Programme
We implemented the Safety Leadership Programme to reduce workplace incidents and ensure compliance with safety protocols.
HSE Management Visit
Programme
Management engaged frontline
employees through site tours,
walkthroughs and open HSE
discussions. Reviews included
verifying Bypass/Inhibit/Force/
Override (BIFO) controls, Lock
Out Tag Out implementation and
process safety information to
reinforce compliance and
continual improvements. HSE Management Visit to Teras Gathering Station in South Sumatra Block, Indonesia
Leadership Visibility
Programme
Oman strengthened its safety culture
by introducing the “7 Pre-Job Checks”
framework across operational activities.
Leaders conducted safety walkdowns
and enhanced toolbox talks to reinforce
risk awareness and accountability at the
worksites, strengthening safety
ownership and reducing human‑factor Safety walkdowns by operations leaders under the Leadership Visibility Programme
incidents across operations. in Oman
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HSE Engagement with Contractors
Sustaining our safety culture requires being strongly engaged with contractors. For this reason, we develop dedicated programmes each
year to continuously promote accountability and transparency.
Contractor HSE Forum & Workshops
The 2025 Contractor HSE Forum brought together around 90
contractor leaders from Medco Oil & Gas’ Onshore, Offshore, and
Corridor operations. Participants represented approximately 450
high- and medium-risk contracts that are essential to delivering
MedcoEnergi’s operational and HSE commitments. In addition,
asset-specific forums were organised, including within the Medco
Power’s projects.
These forums focused on contractors’ responsibilities to meet
personnel requirements under their contracts, including emergency
preparedness, safety, and compliance obligations. They also served
as a platform to strengthen collaboration, enhance workforce
competency, and improve emergency response capabilities. The
events also provided an opportunity to reflect, share feedback, and
HSE Contractor Forum 2025, in Jakarta, Indonesia
translate lessons learned into actionable improvements across our
operations.
To align and maintain our engagements with contractors in Oman KSF and Bualuang, we promoted leadership visibility through routine
management visits.
Emergency Preparedness
MedcoEnergi continues to strengthen its organisational readiness for emergencies and crises through a structured, tiered response system
and annual exercises. The 2025 Tabletop Exercise highlighted the company’s commitment to enhance operational resilience, especially by
introducing cybersecurity as a major crisis scenario for the first time.
Emergency preparedness is embedded within our Operational Excellence framework through a structured three-tier response system:
Tier - 1 A tactical response led by the Incident Management Team (IMT) at the sites, using local resources.
A support response requiring additional resources involving both the sites’ IMT and the assets’ Emergency Management
Tier – 2
Team (EMT).
A strategic response to crises beyond Tier-2 capabilities, managed by the Crisis Management Team (CMT) with senior
Tier - 3
management.
Emergency Response Exercises
Exercises in 2025 included a cybersecurity attack drill at the Grissik Central Gas Plant (CGP) (part of the Corridor asset) simulating an
unexpected shutdown with ransomware impacts, and an International Ship and Port Facility Security (ISPS) Code and oil‑spill response drill at
the Corridor Storage Tanker (CST) in the Bangka Strait. These reinforced operational readiness and multi‑agency coordination.
Cybersecurity Attack Drill at Grissik CGP, Corridor, Indonesia ISPS Code & Oil Spill Response Drill at CST Bangka Strait
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Cyber Resilience through Tabletop Exercises
In November 2025, Corridor held a knowledge‑sharing and tabletop exercise with SKK Migas at Grissik Central Gas Plant to assess readiness
for cyber incidents affecting operations and business continuity. The resulting insights informed updates to all plans involving emergency
responses, disaster recoveries and business continuity.
Corridor Strengthened Cyber Resilience through Tabletop Exercises
Cybersecurity Crisis Simulations
In April 2025, the Crisis Management Team
conducted a two day tabletop exercise
focusing on cybersecurity threats to
operational technology to enhance crisis
preparedness and cross functional
coordination. This was our first emergency
exercise with cybersecurity as the main
theme. MedcoEnergi’s First Cybersecurity Crisis Simulation
Alignment of Sustainability Initiatives with the UN SDGs
The table below aligns MedcoEnergi’s initiatives to advance our health and safety with the relevant United Nations Sustainable Development
Goals (UN SDGs). These initiatives only highlight MedcoEnergi’s effort and do not imply MedcoEnergi has set or measured targets for host
governments in our operational areas regarding the achievement of the UN SDGs.
UN SDGs Relevant UN SDGs Targets1 Key Initiatives
• Health, Safety and Environment Management System (HSEMS)
• Hazard Identifications, Risk Assessments, and Implementation of Associated
Controls
• Asset Integrity
3.4, 3.6, 3.8, 3.9 • Contractor HSE Management System
• Emergency Preparedness and Tabletop Exercises
• Health Programmes (e.g. medical check-up, Medco Active Movement 2025)
• Wellness Programmes
• Process Safety Performance Measurements
• HSE Campaigns, Programmes and Initiatives
• Contractor HSE Forum & Workshops
• Contractor Management Initiatives
8.8 • Contractor Safety Ambassadors
• Emergency Preparedness and Tabletop Exercises
• EMT Training & Tabletop Exercises
• Business Continuity Management System
1 The targets can be found in UN SGDs website (https://sdgs.un.org/goals)
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Action Plans
The following action plans will enable us to meet our objectives and continue advancing our health and safety culture. We regularly measure,
monitor and report on our progress and performance and match them against these actions. The progress report of these action plans refers
to the 2023 - 2027 Sustainability Road Map. Since we have passed the short term period and actions were concluded in 2025, our current
focus is on the status of the medium/long term actions.
Category Short-term Actions Medium/Long-term Actions Status
Workplace Fit-To-Work for All Workers & Health Case Management
Health and
Safety Achieved and consistently Implement pilot project for • MCU compliance completed 100%
complied 100% with Medical predictive analysis to • Already discussed and determined
Check Up (MCU). determine individual predictive analyses for individual fit-to-work
fit-to-work status in Oil & Gas status with IT.
assets.
Improved Wellness Campaign Improve Wellness Campaign • Already improved and implemented
programme for the remaining programme for all assets. Wellness Campaign programmes in all
Onshore fields. assets
Implemented, reviewed and Further implement integrated • Agreed to use existing PTS for all assets.
assessed a Fit-To-Work Monitoring Fit-to-Work monitoring • A PTS System put in place in onshore
system. systems assets.
• Plan to integrate PTS in all assets
Developed audit for Fit-to-Work and Implemented audit for Implemented OHIH audits in onshore,
OH standards. Fit-to-Work and OH offshore and Thailand.
standards.
Improved Medical Emergency Improve MERP in East Java • Implemented MERP.
Response Plans (MERP) in East and MPI (West Java and • Improved the implementation in all
Java and MPI (West Java and South Sumatra), followed by Indonesian assets.
South Sumatra). other assets by 2025.
Workplace Maintain Safe and Healthy Working Environments
Health and
Safety Conduct Corporate OE Assessment (Onshore, Offshore) and Conducted OE Assessment at Corridor and
self-assessments (International) Power
Developed and implemented pilot Implement safety culture
self-assessments at all Oil & Implemented safety culture self-assessment
safety culture self-assessments at
Gas and Power assets. at well operations.
Onshore and Corridor.
Conduct corporate HSE Conducted corporate HSE audit at Bualuang,
Conducted Corporate HSE audits at
audits at assigned Oil & Gas Thailand and Ijen Geothermal. For MRPR, will
all Oil & Gas and Power assets.
and Power assets be differed to 2026.
Established and implemented the Implement improved learning Implemented the improved learning
improved learning organisation at organisations at all Oil & Gas organisation at Onshore and International
Offshore and Corridor. and Power assets. assets.
Developed and implemented LSR Implement LSR FV at all Oil • Completed improvements in BPM &
Field Verifications (FV) at all Oil & & Gas assets and Power development in bSafe.
Gas assets. locations. • Implemented in Lematang, Offshore &
Corridor (agreed to implement LSR FV in
BPM). Remaining onshore (Kalimantan
Region & SSR) plans to engage in 2026.
Implement pilot project of Completed Phase 1 of pilot project of
Evaluated effective implementation
predictive safety predictive safety performance for Onshore.
of SKK Migas CHSEMS procedures
performance in all Oil & Gas
and developed action plans.
and Power assets.
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Category Short-term Actions Medium/Long-term Actions Status
Asset Integrity Ensuring the Security and Integrity of the Assets
(Storage &
Transportation) Corporate HSEMS was approved in Q4-2024
Finalised corporate level HSEMS N/A
for Oil & Gas assets.
Completed strengthening security
Reviewed effectiveness strategies Expand strategies to
infrastructures and patrols; engaged
to minimize vandalism in onshore minimize vandalism in other
communities and local authorities;
assets (focus on Rimau pipeline). locations in South Sumatera
implemented social and community
Region (SSR).
development programmes; enhanced
surveillance and monitoring systems; and
implemented Finding Oil Lost (FOL) process.
Conducted HSE audit for MPI – Ijen
Conducted asset integrity and Conduct asset integrity and
Geothermal in 2025.
process safety through Corporate process safety through
HSE audits at Corridor and Corporate HSE audits at all
Offshore assets. Oil & Gas and Power assets.
Completed flowline replacement programme
Conducted Onshore flowline Onshore flowline
at Rimau.
replacement programme at SSR replacement programme at
West. all South Sumatra areas.
Completed asset integrity inspections for tank
Improved asset integrity and safety Improve asset integrity and
de-scaling Lica - Matra receiving trunkline.
systems in Rimau. safety system in South
Sumatra Region (SSR).
Improved Business Continuity (BC) Evaluate effectiveness of BC A Corporate Business Continuity Management
process in Offshore, Thailand, and governance through audits in System (BCMS) is currently being developed
Oman KSF. all Oil & Gas and Power in collaboration with third‑party consultants.
assets.
Emergency Response Team Drill at ELB Gas -fired IPP
This picture is the 3rd winner under the ‘Health & Safety’ category of the MedcoEnergi 2025 Photography Competition.
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Creating
Opportunities for
Communities
Batik Making
This picture is the 1st winner under the ‘Social & Culture’ category of the MedcoEnergi 2025 Photography Competition.
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120 Approaches, Commitments, and
Goals
121 Supporting Community
Livelihoods
129 Measuring and Evaluating Our
Impacts
134 Emergency and Disaster Relief
Initiatives
135 Alignment of Sustainability
Initiatives with the UN SDGs
137 Action Plans
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MedcoEnergi strives to create positive and sustainable social impact by helping the local communities around our operational areas to
become self-sufficient and resilient. Guided by our Community Development Policy (available on our website), we integrate local wisdom
into programmes that align with host countries development priorities and the United Nations Sustainable Development Goals (SDGs). We
focus on the following three key areas:
Key Focus Areas of the Medco Oil & Gas Community Development Policy
NATURAL
STAKEHOLDER
RESOURCES AND EMPOWERMENT
ENGAGEMENT
LOCAL WISDOM
Community development Community empowerment process Stakeholder engagement is carried
programmes are established based is aimed at improving the ability of out to obtain social license for its
on natural resources and local communities’ to become self-reliant process of community development
wisdom within local communities to according to self- and environmental programme and company
foster sustainable growth. potentials. operations.
Approaches, Commitments, and Goals
We conduct Environmental Impact Assessments (EIA) to identify We follow international best practices, including Free, Prior, and
and mitigate environmental risks, explore opportunities, and ensure Informed Consent (FPIC) for any future developments near such
inclusivity to support local communities surrounding our operations. areas1. In fact, these measures enable vulnerable groups to
These assessments help integrate vulnerable groups into our participate meaningfully in broader community development
community development efforts. initiatives2.
In addition to the EIA, our sustainability assessments evaluate To further build local community resilience and opportunities, we
environmental and social risks across projects (see pages 86-87). prioritise hiring local talent and encourage contractors to do the
In 2025, our sustainability assessment confirmed that none of our same. By 2025, this approach achieved 47% of local workforce
projects border on indigenous communities nor were there participation at Block A and 52% at MRPR, bolstered by targeted
community resettlements, including those projects located within training programmes that enhance skills and capabilities.
plantation and forestry areas.
Meaningful Engagements with Our Stakeholders
Our Social Management System (SMS) framework identifies key communities of interest and local stakeholders through stakeholder and
social mapping initiatives. These activities highlight our community-focused approach, enabling effective responses to local needs. In
developing community programmes in Indonesia, we coordinate with local governments through Village Head Forums (Forum Kepala Desa),
to ensure they align with the Development Planning Consultation Forum (Musyawarah Perencanaan Pembangunan/Musrenbang). For
international operations, a similar approach is applied through locally tailored engagement strategies. In Thailand, MedcoEnergi works closely
with communities through continuous stakeholder mapping, direct engagement, and collaboration with local authorities to ensure
programmes reflect community needs and complement local priorities.
STAKEHOLDER MAPPING SOCIAL MAPPING
This process involves mapping stakeholders based This process involves identifying the social
on their influence and interest. With this, a Stakeholder structures, relationships and dynamics of a community;
Engagement Plan (SEP) on a specific issue can be formulated it includes analysing the social context, demographics,
based on risks. The SEP is also a factor whenever evaluating stakeholder relationships, culture and security.
how community development programmes are implemented.
1 FPIC (Free, Prior and Informed Consent) is a principle that recognises the rights of Indigenous peoples to give or withhold their consent on decisions that may affect their lands, territories,
resources, and cultures, based on accurate and relevant information, and without coercion or manipulation.
2 The national goals in host countries mean any national-level objective or priorities set by the Central Government. For example, Indonesia has National Medium Term Development Plans
(RPJMN); our national SDG goals are directed by The Ministry of National Development Planning (Bappenas), Thailand has 4.0 Strategy to transform the Thai economy into a value-based
economy, and Oman has the 10th Five Year Development Plan for its 2040 vision.
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Guided by our Community Development Policy (available on our website), we integrate local wisdom into programmes that align with
national development priorities and the United Nations Sustainable Development Goals (SDGs). Our approach to community engagement is
carried out through the following teams:
Field Relations & Community Community Enhancement Assets’ Leaders (Sr. Manager
Enhancement Teams Team (HQ) Field Relations & Security,
GM/SVP)
Plan and implement community development Provides direction to the community Review and approve the community
programmes, including social mapping, development programme’s work plans and development programmes and report at the
planning, execution and reporting. budgets at the corporate level. asset level.
This approach is complemented by the application of a precautionary principle and the use of formal engagement channels, including
established community forums, local councils, and grievance mechanisms, to ensure concerns are appropriately captured, addressed, and
monitored. We maintain active involvement across diverse community forums and coordination bodies:
• Village Head Forums (Forum Kepala Desa) • Local Youth Organisations (Karang Taruna)
• District Leadership Coordination Forums (Forum Koordinasi • NGOs and community-based organisations
Pimpinan Kecamatan/FORKOPIMCAM)
• Regional Leadership Coordination Forums (Forum Koordinasi
Pimpinan Daerah/FORKOPIMDA)
Security and Human Rights
Medco Oil & Gas upholds a Security Policy that prioritises legal compliance and respect for human rights across all operations; this aligns
with the UN Guiding Principles on Business and Human Rights and the Voluntary Principles on Security and Human Rights (VPSHR). The
policy outlines strategies to identify, report, and address security risks. The Medco Security Management System (MSMS), implemented
across all Oil & Gas assets, drives security practices to continuously improve.
This year, we updated our Security Policy to reflect evolving risks, embed international best practices, and ensure compliance with human
rights and regulatory standards. Key enhancements include integrating the Upstream Oil & Gas Security Management (Manajemen
Pengamanan Hulu Migas/MPHM), mandated by SKK Migas, to strengthen upstream security governance across all Indonesian Oil & Gas
assets. These updates also expand the Security Policy to include cyber security incidents within the detection and reporting framework. The
Plan–Do–Check–Adjust cycle was formalised to support continuous improvement through proactive monitoring, data-driven decision-making,
and systematic risk mitigation.
In 2025, 100% of Medco Oil & Gas and Medco Power security personnel completed human rights-related training through capability building
programmes such as VPSHR, Gada Pratama, Gada Madya, and Gada Utama1. MSMS further supports effective mapping of critical asset risks
for proactive management and robust security measures.
Supporting Community Livelihoods
MedcoEnergi fosters self-sufficient, empowered local communities through multi-year programmes that adapt continuously to remain
contextual and responsive to the needs in our operational areas. Our investments include sustainable livelihood initiatives, infrastructure
development, support for underprivileged families during religious holidays, and sponsorship of Indonesia’s Independence Day celebrations.
Community Development Programmes
The table below highlights key community development programmes from 2025. For a complete list, refer to the 2025 GRI Performance
Data, GRI 203 on pages 27-30 and GRI 413 on pages 30-37.
Assets Project Descriptions Programme Types
Block A Implemented a home-based horticulture programme by distributing fruit Sustainable livelihoods
Aceh, Indonesia seedlings to households for yard cultivation. (economy)
Facilitated early childhood education teacher training. Sustainable livelihoods
(education)
South Natuna Sea Block B Partnered with Perkumpulan Pusaka Madah Bertuah Siantan to preserve the Sustainable livelihoods
Riau Islands, Indonesia Anambas Malay culture through seminars and discussions about folk tales. (education)
Provided mentoring on stingless bee farming to support communities Sustainable livelihoods
maximizing their local resources. (economy)
1 The Gada Pratama training programme is tailored for newly recruited security guards or prospective candidates. Gada Madya serves as an advanced course for those who have completed
Gada Pratama, focusing on personnel in supervisory positions. Meanwhile, Gada Utama is specifically designed for security managers operating at chief security officer or managerial
levels.
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Assets Project Descriptions Programme Types
Corridor Enhanced rural business development by revitalizing Rawa Makmur Sustainable livelihoods
South Sumatra, Indonesia Barokah (RMB) as a fisheries learning centre as well as strengthening (economy)
management capacity, and increasing agricultural and livestock production.
Improved the Integrated Health Services Centre (Posyandu) by training Sustainable livelihoods
staff, conducting health campaigns, and providing both medical equipment (health)
and food to prevent stunting in children.
South Sumatra Block Organised sports coaching and a friendly volleyball match for the Voli Sehat Sustainable livelihoods
South Sumatra, Indonesia youth group. This included donating sports equipment. (health)
Supported women’s groups in the Musi Rawas Regency by providing Sustainable livelihoods
development training, conducting workshops to process products, and (economy)
supplying business equipment.
Lematang Supported dairy and meat goat farming by facilitating assistance and Sustainable livelihoods
South Sumatra, Indonesia business mentoring to strengthen food security and improve community (economy)
livelihoods.
Rimau Conducted a healthy lifestyle education campaign for the communities as Sustainable livelihoods
South Sumatra, Indonesia well as circumcisions for children. (health)
Sampang Planted trees in two Sampang villages to enhance carbon sequestration and Sustainable livelihoods
East Java, Indonesia prevent coastal erosion through the planting of mangroves. (environment)
Collaborated with the Sumenep Regency to provide fishermen with Sustainable livelihoods
environmentally friendly and efficient fishing equipment. (economy)
Supplied industrial cooking equipment to support housewives in order to Sustainable livelihoods
scale up traditional snack production. (economy)
Madura Offshore Collaborated with the local government to provide sewing skills training and Sustainable livelihoods
East Java, Indonesia equipment for a women’s group. (economy)
Cooperated with the local government to help construct a kindergarten Infrastructure Development
facility.
Bangkanai Supported village-owned enterprises by providing training in finance, SOPs, Sustainable livelihoods
Central Kalimantan, Indonesia legal support, and business networking. (economy)
Provided the village-owned enterprise “Jantur Kiham” with training to Sustainable livelihoods
improve both performance and incomes to enhance greater economic (economy)
self-reliance.
Supported the construction of a bridge to enhance village access. Infrastructure Development
Tarakan, Conducted an educational healthy lifestyle campaign, together with health Sustainable livelihoods
North Kalimantan, Indonesia checkups and doctor counselling for the elderly in the communities.
(health)
Converted a production house into a proper factory to enable certification Infrastructure Development
requirements and enhance product credibility.
Bualuang, Continued conservation initiatives with the Department of Marine and Sustainable livelihoods
Thailand Coastal Resources. (environment)
Continued Phase 3 of the Sensory and Physical Development Programme at Sustainable livelihoods
Chumphon Panyanukul School, serving students with disabilities. (health)
Collaborated with the Save Pak Nam Chumphon Group to train secondary Sustainable livelihoods
students on how important coastal resources and sustainable practices are. (education & environment)
Karim Small Fields, Completed a seaweed farming pilot project in Oman. This highlighted Sustainable livelihoods
Oman Gracilaria as a climate-resilient, high potential species that benefits both the (economy)
economy & environment.
Mitra Energi Batam (MEB), Educated patients with drug-resistant tuberculosis (TB-RO) at the RSUD Sustainable livelihoods
Dalle Energi Batam (DEB) & Embung Fatimah on how to prevent and treat infections. (health)
Energi Listrik Batam (ELB),
Batam, Indonesia Launched the “Employee Teaching” programme at SMK Negeri 11 Batam Sustainable livelihoods
(education)
Supported a free electricity installation programme for households. Infrastructure Development
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Assets Project Descriptions Programme Types
MRPR Launched a programme to cultivate and use bamboo. It covered techniques Sustainable livelihoods
Riau, Indonesia to plant, care for, select materials, and process it into valuable products. (education & economy)
Supported eco-friendly cricket farming by providing infrastructure, farming Sustainable livelihoods
media, and seeds, resulting in increased product revenues. (economy)
Provided healthcare equipment to integrated health posts (Posyandu) to Sustainable livelihoods
ensure that malnutrition, stunting, and non-communicable diseases are (health)
detected early.
Bonjol Geothermal Established a more conducive reading environment and provided books to Sustainable livelihoods
West Sumatra, Indonesia encourage interest in reading for students and community members. (education)
Pusaka Mini-hydro Launched a free electricity installation programme for underprivileged Infrastructure Development
Cianjur, Indonesia households in the Cianjur region to improve equitable energy access.
Ijen Geothermal, Partnered with community groups to support production, packaging and Sustainable livelihoods
East Java, promotion in order to launch the Ginger Pandan Tea product. (economy)
Indonesia
Conducted an educational programme on geothermal energy for elementary Sustainable livelihoods
students, distributing informational paperback books to students and (education)
teachers.
Provided health screenings and education for communities living far from Sustainable livelihoods
health facilities. (health)
Community Development Support
The following table summarises the financial support allocated by MedcoEnergi during the past three-year period:
Programme (US$) 2023 2024 2025
Sustainable Livelihood & Community Development 1,235,705 1,598,787 1,240,821
Infrastructure Development 406,286 698,228 689,386
Others 170,874 234,147 387,887
Total 1,812,866 2,531,162 2,318,093
Our community development initiatives focus on these five pillars: education, health, economic empowerment, environmental stewardship,
and infrastructure, to build community resilience and long-term self-reliance beyond our operational presence.
Education
The night celebration of Gowoi Pusake, which highlights Preserving Anambas Malay Heritage
the Malay Heritage Preservation programme through Cultural Partnership
South Natuna Sea Block B partnered with a heritage association
called Madah Bertuah Siantan (Perkumpulan Pusaka Madah
Bertuah Siantan) to implement the Malay Arts and Culture
Preservation Programme in the Anambas Islands Regency, which
addresses concerns over declining engagement of younger
generations with Malay traditions.
This programme was launched in September 2025 through a
folktale seminar and book review at Siantan Nur Tarempa. It
included supporting two art studios in the Kute Siantan and
Palmatak Districts; providing basic training in nine core Malay
dances; documenting folktales for publication; and supplying arts
equipment to support ongoing cultural activities in the region.
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Early Childhood Education Teacher
Training in East Aceh
Block A asset collaborated with Bunda PAUD, a government
agency that promotes early childhood education, to facilitate an
Early Childhood Education Teacher Training in East Aceh in
September 2025. This training, aiming to increase teachers’
capacity and competency, was attended by 50 teachers from
four districts (Indra Makmu, Julok, Banda Alam and
Nurussalam).
Strengthening Early Childhood Teaching Capacity,
Aceh, Indonesia
Health
Advancing Inclusive Therapy through Multi-Year Sensory
Development Support
Bualuang asset entered its third year of supporting the Sensory
and Physical Development Programme at Chumphon Panyanukul
School, Thailand, a special education institution serving 259
students with disabilities across four southern provinces in
Thailand. Phase 3, launched in December 2024, focused on
physical therapy by installing equipment to stimulate the nervous
system and muscles. We provided direct funding to the school,
and the project renovated facilities and procured equipment until
Children Participating in Guided Sensory and Physical
Therapy Activities, Thailand May 2025.
Strengthening Community Healthcare Services in Riau, Musi Banyuasin, and Banyuasin
In 2025, MedcoEnergi strengthened community healthcare services across multiple regions in Indonesia by targeting support for
Integrated Health Services Centre (Posyandu) and providing nutrition programmes.
Our MRPR asset provided essential healthcare equipment, including baby and adult scales, thermometers, measuring tapes, and
blood glucose monitors to four Posyandu serving the villages of Temu Rasa, Bulan Sabit, Harapan Maju, and Cahaya Melebung. This
initiative not only improved the early detection of malnutrition, stunting, and non-communicable diseases, but also strengthened the
healthcare infrastructure.
Our Corridor asset developed seven Posyandu covering 14 villages in Musi Banyuasin and Banyuasin to eliminate stunting and stop
the spread of AIDS, tuberculosis and malaria. This programme also trained Posyandu and nutrition post staff. It provided both
medical equipment and nutritious food for pregnant women and children experiencing stunting as well as health and education
campaigns at schools. Moreover, not only did it provide packaged milk to 350 expectant mothers and 350 children, but it also
monitored seven children experiencing stunting and fed them nutritious food for 90 days.
Toddler Routine Health Screening, Riau, Indonesia Community engagement for maternal and child health
Campaigning to Provide Free Health Screenings and
Promote Healthy Lifestyles
In November 2025, Medco Power, through Ijen Geothermal
(Independent Power Producer and Operation & Maintenance
business), conducted free health screenings and provided
health education for 76 residents at Curah Macan Village, near
the Ijen Geothermal Power Plant. We collaborated with
Community Health Centre (Puskesmas) Sempol to address
limited healthcare access. Participants with elevated cholesterol
Residents receiving free health screening services
and glucose levels were referred for follow-up care. at Curah Macan Village, East Java, Indonesia
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Economy
Supporting the Circular Economy through Eco-Friendly Cricket Farming
MRPR supported eco-friendly cricket farming with a joint business group “Temu Kasih” in Pekanbaru, Riau to promote the
community’s economic independence and sustainable practices. Crickets, used as a high-protein feed for songbirds, ornamental
fish, and reptiles, were cultivated using infrastructure, farming media, and seed support provided in late 2024. Within eight months,
production grew from 30 sacks per month to over 1,600 sacks, generating IDR 28 million in revenue, nearly ten times higher than
the initial monthly earnings, and established a stable marketing network.
Community members participating in eco-friendly cricket farming activities in Pekanbaru, Riau, Indonesia
Empowering Women to Transform Home Resources into
“
Economic Opportunities
We have been supporting women-led economic initiatives that
transform household resources into sustainable income sources With this support,
across multiple communities in Indonesia.
we can learn and
Since 2018, South Sumatra Block have supported the grow. We hope our
Sustainable Environmentally Friendly Agriculture programme for
the women farmers’ group in Giriyoso Village, Musi Rawas
business continues “
Regency, Indonesia, providing training in soil management, to develop and
composting, and organic vegetable cultivation that have enabled
women to transform their home gardens into productive
create jobs.
spaces. The group now produces value-added products,
including japleng powder and moringa products, with several Widayanti
items being produced by home industries that hold food A member of the Giriyoso
permits. In fact, this women farmers’ group achieved second Women Farmers’ Group
place in the provincial Home Garden Utilisation competition
despite pandemic disruptions.
“
Over the past two years, our Sampang
asset supported Sumber Barokah, a
Support from Medco group of eight housewives in Gedugan
wasn’t just equipment Village, Pamekasan Regency, Indonesia,
led by Hosniyatul. They were producing
and training, but also traditional Madurese snacks with basic
encouragement. We felt “ equipment from their home kitchens.
valued and motivated to We provided industrial cooking
move forward. equipment alongside training in
bookkeeping management and digital
marketing, enabling the women to
Hosniyatul significantly increase production capacity,
Leader of the Sumber improve product quality, and expand their
Barokah Group market reach through social media
platforms.
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Infrastructure
Supporting Energy Access for
Communities in Cianjur, West Java
Medco Power, through our subsidiary
PPP Mini-hydro, supported accessible
and affordable energy by joining PLN’s
free electricity installation programme
for underprivileged households in
Cianjur. Through the 9 MW mini hydro
power plant, we expanded electricity
access to communities lacking reliable
power. Through this initiative, we also
supported education, health, and
economic opportunities as well as
improved the overall quality of life.
PPP Mini-hydro received recognition from PLN for supporting free electricity access
for underprivileged households in Cianjur, West Java, Indonesia
Enhancing Village Access through Bridge Development
Our Bangkanai asset supported the construction of a well-designed concrete bridge in Rahaden Village. Located in a wetland area,
the village benefits from improved infrastructure, which in turn enhances access to welfare and commercial facilities. This newly
constructed bridge supports reliable connectivity, even during the rainy season.
Concrete bridge to enhance access for communities in Rahaden Village, Central Kalimantan, Indonesia
Upgrading a Production House into a Proper Factory for Hidayatullah Women Farmers
In May and November 2025, our Tarakan asset supported the renovation of production houses in Mamburungan Timur, Tarakan
Timur Sub District, North Kalimantan. Upgrading these facilities enabled the Micro, Small, and Medium-sized Enterprise (MSMEs) to
meet Home-Based Food Production Permit - PIRT (Pangan Industri Rumah Tangga/PIRT), thus enhancing product credibility,
reputation, and market reach. The groups produce herbal drinks and processed foods, and we provided the necessary materials and
tools for the renovations.
Hidayatullah Women Farmers Group in Tarakan Timur, North Kalimantan, Indonesia
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Environment
Fostering Coastal Conservation Awareness Among Youth in Pak Nam Chumphon, Thailand
In September 2025, our Bualuang asset supported the Save Pak Nam Chumphon Group by raising awareness of 55 secondary
school students about the importance of coastal resources. Students learned about mangrove conservation, eco-friendly products,
and the Blue Crab Bank through hands-on sessions led by the Prince of Songkla University lecturers. This programme represented
the first initiative of its kind conducted within the local community.
Students participating in hands-on coastal conservation and mangrove activities in Thailand
Promoting Fruit Tree Planting in Home Gardens
From January to February 2025, our Block A asset supported a horticultural programme
promoting fruit tree planting in home gardens in Blang Nisam Village, East Aceh
Regency, Indonesia. This initiative provided 500 fruit saplings to 500 households to
enhance food security, strengthen local livelihoods, and contribute to environmental
greening.
Community members planting fruit
tree seedlings in home gardens
Community Development at JOB Tomori
Transforming Organic Waste Management through Producing Community-Based Compost in Banggai
At the Joint Operating Body (JOB) Tomori, our non-operated asset, This programme integrated diverse organic waste sources from
we implemented the Organic Fertilizer Ecosystem Development households, livestock partners, village markets, and small agro-
programme in Banggai Regency, Central Sulawesi, Indonesia. This industries through a barter system that enables communities to
enabled us to build upon our Agroecology and Sustainable Farming exchange organic waste for fertiliser or cash, improving village
initiative since 2021 to address critical challenges, including low cleanliness whilst creating additional income opportunities.
farm labour wages, limited access to subsidised fertiliser, high
dependence on chemical inputs, and underused but abundant This community-based green economy model demonstrates how
organic waste. managing systematically organic waste can strengthen local food
security, reduce environmental impact, and build farmer
We transformed production from individual households (at four independence through locally produced, affordable organic fertiliser
tonnes per cycle) to a communal system (at around 400 tonnes per whilst shifting community perceptions of waste from a burden to an
cycle). By collaborating with the Tani Makmur Organic Fertiliser economic opportunity.
Processing Unit, we established communal composting facilities
and replicated two community compost houses in the Mulyoharjo
and Karang Anyar villages.
Community composting facilities and organic fertilizer production activities, Banggai, Central Sulawesi
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Strengthening Our Impact through The Medco Foundation
The Medco Foundation, founded in 2003 by Arifin Panigoro, focuses on enhancing community wellbeing through sustainable programmes in
education, health, economic empowerment, and environmental protection, in line with the UN Sustainable Development Goals. Our
partnership with the Medco Foundation reflects our shared commitment to stand together and support communities when it matters most.
In 2025, this commitment was demonstrated through concrete actions in response to humanitarian and public health needs, including:
Elimination of Tuberculosis (TB)
The Medco Foundation continued its efforts to both prevent and raise awareness of TB across Indonesia through education, community
engagement, and stakeholder outreach. These efforts were implemented in collaboration with key TB-focused organisations, including the
Indonesian Tuberculosis Eradication Association (Perkumpulan Pemberantasan Tuberkulosis Indonesia/PPTI). Thirty students from grades 1
to 3 at Pertiwi Tungkal Ilir Junior High School in Musi Banyuasin participated in interactive sessions on TB symptoms, transmission, and the
health risks of smoking. The foundation also reached over 250 South Natuna Sea Block B employees and stakeholders during the National
Occupational Safety Month at Matak Base, Natuna, as part of workplace and community outreach. In addition, MedcoEnergi supported the
Stop TB Partnership Indonesia (STPI) and the Indonesian Centre for Tuberculosis Eradication to detect, treat, and prevent TB.
PPTI cadre training session attended by MedcoEnergi’s President Commissioner, Mrs. Yani Panigoro
Contributing to the National Blood Supply through Blood
Donations
Blood donations were conducted in June 2025 as part of
MedcoEnergi’s commitment to support community health. This
donation drive took place across 11 operational sites in the Oil &
Gas and Power sectors in Aceh, Riau, Riau Islands, South Sumatra,
Java, and North Kalimantan as well as at the Headquarters in The
Energy Building, which was attended by the Minister of Health. This
activity, which was part of commemorating MedcoEnergi’s 45th
anniversary, contributed to meeting the Indonesia’s annual blood
donor demand. In addition to this milestone event, blood donation Blood donations to commemorate MedcoEnergi’s
activities are conducted on a regular quarterly basis for employees in 45th Anniversary
MedcoEnergi’s head office.
Expanding Access to Safe Housing Programme
The Medco Foundation, in collaboration with MedcoEnergi and
Habitat for Humanity Indonesia, expanded its Decent Housing
Programme by renovating homes across multiple regions. Since
2023, this programme has renovated 39 homes in Marga Mulya,
Banten. In 2025, 47 units were established in Tangerang (Banten),
Muara Enim, Penukal Abab Lematang Ilir, and Musi Banyuasin
(South Sumatra), Bondowoso, and Banyuwangi (East Java).
Employees participated in constructing these units during the
Medco Volunteering Day. These completed houses were handed Construction and handover activities under the Decent Housing
over simultaneously in December 2025 in three main operating Programme in Ijen Geothermal and Corridor, Indonesia
areas: Corridor, South Sumatra Region and Ijen Geothermal.
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Nusataru: Restoring Critical Ecosystems by Planting Trees
The Medco Foundation implemented the Nusataru Programme to restore critical land ecosystems through tree planting. In 2025, around
9,000 mangrove and bamboo trees were planted across Karawang and Bekasi in West Java and Sleman in Yogyakarta. Over the past six
years, the programme has planted a total of 75,767 trees. Beyond tree planting, the Foundation has consistently assisted Forest Farmer
Groups (Kelompok Tani Hutan/KTH) over this period. This includes partnering with local communities to monitor tree growth and support
forest farmer groups KTH in Gunung Gede Pangrango National Park, Indonesia, assisting two KTHs (180 members) with Conservation
Partnership Programme applications and ongoing tree maintenance.
KTH assistance programme in Gunung Gede
Mangrove Planting in Muara Gembong, Bekasi, Indonesia
Pangrango National Park, Indonesia
Nurturing Youth Potential through Life Skills Education
The Medco Foundation supported the Youth Life Skill Education
Programme at The Learning Farm (TLF) in Cianjur, West Java,
helping socially vulnerable young people aged 17–24 build
confidence and self-reliance. It engaged participants from both
diverse ethnic backgrounds and inclusive social groups, many of
whom are school dropouts, unemployed, or affected by disasters or
conflicts. The participants learned organic farming, entrepreneurship,
digital literacy, and life skills, including communication, literacy, and
physical and mental health, with support from Medco employees
serving as volunteer trainers. In 2025, 86 participants strengthened Youth Life Skills Education activities at The Learning Farm
their ability to live independently and contribute to their communities in Cianjur, West Java, Indonesia
as a result of this programme.
Measuring and Evaluating Our Impacts
We consistently evaluate how effective each programme is and identify opportunities to enhance them. This approach guides us to stay
responsive to real needs and deliver programmes that create lasting value.
Social Returns on Investment (SROI)
Measuring Social Value through Our SROI Approach
Our Social Return on Investment (SROI) approach allows us to quantitatively measure and communicate the social, environmental and
economic value that is generated relative to the resources invested. It enables us to comprehensively assess our programmes from multiple
perspectives using comparable indicators. The insights gained from SROI are used to design, develop and scale future initiatives, ensuring
stronger transparency, informed decision-making and improved allocations of resources for greater societal benefits.
The two types of SROI analyses we conducted are outlined below.
Evaluative Forecast
We analyse completed programmes to measure We project the potential value of planned programmes
their actual results. before launch.
This retrospective view shows us what has worked and These predictions help us prioritise investments and
provides evidence to improve future initiatives. set realistic targets.
Scope Mapping Outcome Outcome-related Impact SROI Analysis and
and Stakeholder Mapping Events Collection Calculation Calculation Reporting
Identification and Value Delivery
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Measuring Our Programmes’ Impacts In Rimau, Indonesia
Improving Educational Access by Supporting
School Transportation
Since 2022, the Rimau asset has facilitated daily
school transportation for students in Tabuan Village,
Srikembang Village, Betung sub-district, Banyuasin
Regency, Indonesia. We addressed transportation
barriers by coordinating village vehicles through the
Srikembang village government to provide daily
pick-up and drop-off services for studtents travelling
10 kilometres to nearby elementary schools. The
programme overcame challenging roads that are
muddy in the rainy season and dusty in the dry
season, with strong support from the community and
village government, resulting in improved student
attendance and reduced dropout rates. The
programme achieved an SROI of 2.21, meaning every
IDR 1 invested generated IDR 2.21 in social value.
This initiative supports sustainable development, School transportation for students in Banyuasin Regency, Indonesia
which aligns with UN SDGs 4.
Enhancing Herbal Product Capacity by Developing
Processing Facilities
In 2025, Rimau Asset established an herbal
production house for the Family Medicinal Plant
(Tanaman Obat Keluarga “TOGA”) group in Gajah
Mati Village, Babat Supat sub-district, Musi Banyuasin
Regency, Indonesia. We strengthened the TOGA
group’s capacity by constructing a standardized
processing facility that meets sanitation and spatial
requirements for herbal production. Through
collaboration with the village government and local
workers, the programme improved herbal product
quality, strengthened access to sustainable
resources, and created entrepreneurial opportunities
for the TOGA group and surrounding communities,
achieving an SROI of 1.25 in 2025. This initiative
supports sustainable development, which aligns with Empowering communities to develop herbal products
UN SDGs 3 and 12. in Rimau, South Sumatra, Indonesia
Measuring Our Programmes’ Impacts in Lematang, Indonesia
Enhancing Primary Healthcare by Providing
Medical Equipment
In 2025, the Lematang asset strengthened primary
healthcare services at the Sumaja Makmur
Puskesmas, Gunung Megang Sub-district, Muara
Enim Regency, Indonesia. Medical equipment was
upgraded to improve basic healthcare service quality
in the area. Through collaboration with the
Puskesmas and Rumah Zakat (Indonesian National
Zakat Collection Institution), this programme
sponsored a health campaign coupled with
educational sessions. It procured equipment that met
the Ministry of Health’s standards and trained medical
staff to operate and maintain it. This programme
benefitted the Puskesmas, Posyandu, healthcare
workers, pregnant women, the elderly, adolescents,
the village government and Rumah Zakat
This programme achieved an SROI of 1.28 in 2025,
meaning every IDR 1 invested generated IDR 1.28 in
social value. This initiative supports sustainable Strengthening primary healthcare services in Muara Enim Regency,
South Sumatra, Indonesia
development, which aligns with UN SDGs 1, 2, and 3.
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Fostering Sustainable Livelihoods by Cultivating
Forest Honey
The Lematang asset developed a forest honey cultivation
programme in Village III, Aur Duri Village, Rambang Niru
sub-district, Muara Enim Regency, Indonesia, from 2023
to 2025. We empowered local beekeepers through
technical training, providing PPE, beehive boxes, fruit tree
seedlings, and security fencing. Meanwhile, our
partnership with Rumah Zakat also supported them as
they transited to structured cultivation practices, formed
farmer groups to improve market access, and promoted
their products. As a result, both the beekeepers and the
local community gained direct benefits that included
alternative income sources and environmental
conservation through natural pollination. This programme
achieved an SROI of 1.49, indicating every IDR 1 invested
generated IDR1.49 in social value. This initiative supports Advancing sustainable livelihoods through beekeeping training in
sustainable development, which aligns with UN SDGs 4, Muara Enim Regency, South Sumatra, Indonesia
8, 10, and 15.
Measuring Our Programmes’ Impacts in Thailand
Supporting Inclusive Learning through Sensory and
Physical Therapy Clinic Programme
The Sensory and Physical Development Programme at
Chumphon Panyanukul School aims to strengthen
educational and rehabilitation infrastructure for children
with special needs. The initiative has resulted in
measurable improvements in attention, emotional
regulation, motor skills, and learning readiness among
students, while also reducing caregiving burdens for
parents and caregivers. In addition, the programme helps
lower household expenditures related to accessing
rehabilitation services outside the local area and enhances
teachers’ capacity to deliver instructional and therapeutic
activities tailored to students’ specific needs. With an
SROI score of 4.06 for the 2022–2025 period, this
initiative supports inclusive education and social
Sensory room at Chumphon Panyanukul School, Thailand
wellbeing, contributing to the achievement of UN SDGs 1,
4, 10, 11, and 12.
Promoting Coastal Conservation through Sustainable
Learning Initiatives
Over the past four years, we have implemented the
Coastal Classroom for Conservation Programme to
strengthen community capacity for self‑managed
resource stewardship and enhance local resilience. The
programme supported the recovery of blue swimming
crab populations, leading to higher catch volumes and
more stable incomes for commercial and small‑scale
coastal fishing households, achieved through a relatively
low‑cost intervention. The initiative has strengthened the
institutional capacity of the Pak Nam Chumphon
Environmental Conservation Group and its wider network
by developing community leaders as conservation
advocates, knowledge facilitators, and innovators of
value‑added products. It also promotes environmental
learning among children and youth, fostering future
community stewards. Based on the 2024–2025 impact
and investment, the programme achieved an SROI of
61.07. The high SROI reflects the characteristics of early
stage natural resource conservation, where modest initial
investments can generate significant environmental
recovery and rapidly expanding social and economic
benefits. This programme contributes to biodiversity
conservation and the sustainable use of marine resources, Environmental Awareness Training Session for Paknam Chumphon
supporting the achievement of SDGs 1, 4, 8, 11, 12, 14, Wittaya School, Chumphon, Thailand
and 17.
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Adopting the S-Curve
We integrate the S-Curve1 approach throughout our community initiatives to assess stakeholder participation at each stage. This reflects how
new ideas, behaviours, and practices are gradually adopted and integrated into the community.
The graph below shows how Medco Oil & Gas uses the S-Curve approach to support local MSME development:
Economic Empowerment and Capacity Building Process
Sustainability
Programmes
Influential continue with
no longer
Has an impact on support from
creating a the company
sustainable life
Cooperation
Provides
opportunities for
various parties to
participate
Maturity Level
Organised
Forms a common consensus between
groups and fosters solidarity to create
a sustainable life together
Inclusive
Provides opportunities for participating
by minority & vulnerable group and
involve key stakeholders
Change
Increase knowledge, skills &
confidence to create change
Contact
Identify community and company needs
PHASE 1 PHASE 2 PHASE 3 PHASE 4
1 SRI Organic Farming 10 Herbal plant cultivation Sesingel headband artisans business
17
development
2 Rubber Cultivation 11 Palm sugar business development Layer chicken farming and egg business
18
3 Horticultural Farming Footwear (Sepatu & sandal) business development
12
development Home-based assorted chips business
4 Forest Bee Cultivation 19
development
Herbal plant-based syrup business
5 Grouper fish hatchery development 13 Fish and shrimp crackers business
development 20
development
6 Anchovy (bilis) fisheries business development 14 Vegetable cultivation
21 Goat fattening and livestock farming
7 Cassava chips business development
15 Oyster Mushroom cultivation Stingless bee cultivation and business
8 Banana chips business development 22
development
Aquaculture cultivation and business
16
9 Shrimp crackers business development development 23 Mangrove crab cultivation
Each maturity level sets specific targets that As communities progress to the At the Sustainability stage, programmes
guide our programme design. Cooperation and Influential stages, continue without external assistance,
initiatives such as organic farming, Sesingal reflecting full self-sufficiency and long-term
At the Inclusive and Organised stages, we headbands, and Freshwater fisheries economic viability. This progression
focus on skills training and MSME operate with reduced company support, embodies our approach to structured
development to build participation and showing growing independence. capacity-building and lasting community
strengthen local economies. independence.
1 Reference: http://ijsr.internationaljournallabs.com/index.php/ijsr
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Emergency and Disaster Relief Initiatives
The surrounding areas of MedcoEnergi assets in North Sumatra and As part of the short-term response phase, one day after the flood hit
Aceh, Indonesia, were severely impacted by flash flood in the area, we acted swiftly to map and track all affected employees.
November 2025. These floods resulted in displacement of This was carried out in coordination with Medco Oil & Gas to ensure
employees and their families, disrupting supply chain, and that impacted personnel were identified and supported immediately.
interrupting access to transportation, electricity, and communication It subsequently delivered humanitarian assistance to disaster-
networks in the surrounding communities. In response, Medco affected communities across two provinces and nine regencies and
Foundation implemented Medco Peduli Bencana Sumatra (Medco cities. These responses covered Aceh, including the regencies of
Sumatra Disaster Response), a coordinated disaster response Aceh Tamiang, East Aceh, North Aceh, and Bireuen as well as West
initiative to support affected employees and communities. This Sumatra. It also covered the regencies of Pasaman, Tanah Datar,
initiative was delivered through structured “Post-Disaster Recovery Solok, Agam together with Padang. Assistance included food and
Strategies” that covered short-term emergency responses and basic necessities, emergency response equipment, infant and child
stabilisation, and contributed to strengthening long-term community supplies, and clean water, which ultimately reached more than
resilience. 20,000 beneficiaries
Medical checkups for the affected communities in North Sumatra and Aceh, Indonesia
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Alignment of Sustainability Initiatives with the UN SDGs
The table below aligns MedcoEnergi’s initiatives to create opportunities for communities with the relevant United Nations Sustainable
Development Goals (UN SDGs). These initiatives only highlight MedcoEnergi’s effort and do not imply MedcoEnergi has set or measured
targets for host governments in our operational areas regarding the achievement of the UN SDGs.
UN SDGs Relevant UN SDGs Targets1 Key Initiatives
• Implemented home-based horticulture programme by distributing fruit seedlings to
households.
1.4
• Launched bamboo cultivation and use programme to foster bamboo-based
businesses and create jobs.
• Implemented Rural Business Development Programme to increase agricultural and
livestock production.
2.4, 2.A
• Supported dairy and meat goat farming to strengthen food security.
• Launched seaweed farming pilot for use as climate-resilient species.
• Organised donations of sports coaching and equipment.
• Educated drug-resistant tuberculosis patients on how to consistently treat and
prevent infections.
3.3, 3.4 • Provided health screenings and campaigns, plus medical equipment, to support
healthcare services.
• Funded support for the Sensory Room Project for children with special needs.
• Educated communities on nutrition to prevent stunting.
• Delivered early childhood education teacher training and education support
programmes.
• Supported cultural preservation through seminars and discussions on local heritage
and folktales.
• Implemented school-based programmes, including “Employee Teaching”
initiatives.
4.1,4.2, 4.3, 4.4, 4.7 • Provided learning facilities, books, and reading environments to support students
and communities.
• Conducted educational programmes on geothermal energy and environmental
awareness for students.
• Delivered training on coastal resource conservation and sustainable practices.
• Supported construction of educational infrastructure, including kindergarten
facilities
• Delivered skills training and MSME development support, including business
equipment, to women’s groups and women-led enterprises.
5.5 , 5.A
• Implemented Women and Children Empowerment Centre (Rumah Pemberdayaan
Ibu dan Anak/RPIA) programme to empower women and children.
6.1, 6.B Providing clean water infrastructure for local communities.
7.1, 7.B Launched free electricity installation programme for underprivileged households.
1 The targets can be found in UN SGDs website (https://sdgs.un.org/goals)
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UN SDGs Relevant UN SDGs Targets1 Key Initiatives
• Revitalized a fisheries learning centre and engaged new fishing groups.
• Held business mentoring and training, financial training, SOP and legal support, and
business networking for village-owned enterprises
• Supported development of local enterprises, including food production, bamboo
products, and Ginger Pandan Tea.
• Implemented circular economy programme through eco-friendly cricket farming,
8.2, 8.3
which increased product revenue.
• Conducted sewing skills training to enhance product quality and economic
opportunities.
• Upgraded a production house to enable certifications.
• Provided environmentally friendly fishing equipment to improve productivity and
sustainability.
• Constructed a bridge to enhance access to villages.
9.1 • Upgraded community production houses into certified facilities to strengthen local
industry.
Supported community infrastructure improvements, including renovation of religious
11.1, 11.2
and public facilities.
Implemented waste management and circular practices, including marine waste
12.1
management and converting food waste into organic fertiliser.
• Continued a partnership to support conservation and environmental management.
13.1, 13.3
• Conducted renewable energy and conservation campaigns for students.
• Supported coastal and marine conservation initiatives in collaboration with relevant
authorities.
14.7
• Promoted sustainable use of coastal resources through community training and
education.
• Conducted tree planting and mangrove restoration initiatives to support ecosystem
15.1
protection and coastal resilience.
• Engaged multi-stakeholders such as local governments, communities, NGOs, and
17.17
educational institutions.
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Action Plans
The following action plans will enable us to meet our objectives and continue creating opportunities for communities. We regularly measure,
monitor and report on our progress and performance and match them against these actions. The progress report of these action plans refers
to the 2023 - 2027 Sustainability Road Map. Since we have passed the short-term period and actions have been concluded in 2025, our
current focus is the status of the medium/long term actions.
Short-term Medium/Long-term
Category Status
Actions Actions
Oil & Gas:
Local Communities Conducted social
Completed social mapping in Lematang areas.
mapping in selected
assets. Power:
There is no social mapping needed in 2025.
Oil & Gas:
Enhanced 2025 Enhance annual
Community community Improved the community development programme involving
Development development Local Business Development (SDG 1, 2, 5 & 14), Health (SDG 3
Programme. programmes to & 6), Education (SDG 4 & 8), Clean Energy (SDG 7 & 13),
strengthen Infrastructure (SDG 9 & 11),Environment (SDG 15), and
MedcoEnergi’s Partnership (SDG 17).
contributions to the
SDGs. • Signed a cooperation agreement with BRI Microfinancing for
Medco-fostered MSMEs development and organised the
first Medco MSME Festival to expand market access and
enhance broader marketing opportunities for 22 MSMEs.
• Health programmes in Corridor, South Sumatra Region, and
Bangkanai on tuberculosis were carried out in collaboration
with Medco Foundation.
• Vocational centre programme in Musi Banyuasin, South
Sumatra, Indonesia
Power:
Improved the community development programme involving
Local Business Development (SDG 1, 2, 5 & 14), Health (SDG 3
& 6), Education (SDG 4 & 8), Infrastructure (SDG 9 & 11),
Environment (SDG 15)
• Empowering Women through MSME and Financial
Management Training
• Implemented educational programme in Batam, Ijen, Riau,
and Sarulla.
• Expanding access to basic healthcare for communities in
Ijen and Riau including the health servies equipment support
• Enhancing environmental compliance through bamboo
planting and restoring forest ecosystems through watershed
rehabilitation in Riau
Accelerating local economic growth through community-based
enterprises such as cricket farming, partnered with Kali Gedang
family welfare empowerment group, and Nuri Indah Lestari
(MSME).
Oil & Gas:
Conducted SROI
studies in selected • Completed SROI field survey studies in SSR areas and
areas. Thailand, and identified rooms for improvements in the
programme effectiveness and increasing social value
creation.
Oil & Gas:
Reviewed
Community • Updated Community Development Guidelines and
Development familiarised it to all assets.
Guidelines.
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Short-term Medium/Long-term
Category Status
Actions Actions
Stakeholder Conducted Oil & Gas:
Engagement stakeholder mapping
& perception survey/ • Completed SLOI study for the Corridor asset.
SLOI in Corridor. • Identified updated stakeholder engagement plan to further
support sustainable livelihood improvements and long-term
community resilience.
Updated the Evaluate how the Oil & Gas:
Stakeholder 2022-2026 Strategic
Engagement Stakeholder • Updated Stakeholder Engagement Guidelines and
Guidelines. Engagement plans familiarised all assets with them.
are implemented in
2026 and update the
guidelines in 2027. Power:
• Conducted refreshment Stakeholder Engagement
Guidelines especially for new subsidiaries (Sulut-1 and
Timor-1).
Evaluated & improve Oil & Gas:
R&S Integrated
Dashboard • Monitoring, evaluate and improve stakeholder engagement
dashboard to enhance data analysis.
Security Practices Monitored and Oil & Gas:
evaluated security
incidents in • Monitored, analysed and evaluated trends of security
Indonesian Oil & Gas incidents across all assets and provided improvement plans.
assets.
Implemented pilot Power:
project to integrate
dashboard of • Launched the Integrated Security incident dashboard
security incidents for system for MPI.
Indonesian Non-Oil
& Gas.
Improved Oil & Gas:
management of
security plans. • Completed security management system audit from POLRI
in Block A and pre-audit MPHM for SSB asset.
Power:
• Enhanced MPI’s security incident dashboard.
• Conducted internal security management system audit for
all Subsidiaries.
• Conducted quarterly security contractor performance
evaluation.
Provided VPSHR Oil & Gas:
(Voluntary Principles
on Security and • Completed managerial level VPSHR training.
Human Rights)
training for all
assets: security Power:
managerial level
– 100%. • Conducted regular human rights refreshment training for all
security personnel and subsidiary representative.
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Short-term Medium/Long-term
Category Status
Actions Actions
Security Practices Updated Security Oil & Gas:
stakeholder
mapping. • Completed updates to Security stakeholder database.
• Engaged with various Security stakeholders.
• MedcoEnergi succeeded in receiving The Best Security
Performance KKKS.
Power:
• Updated the security’s stakeholder profile database for
period of 2025
• Conducted intensive and closely engagement with relevant
stakeholder from national until village level including security
stakeholders to ensure the inauguration of Ijen Geothermal
and East Bali Solar PV by President of the Republic of
Indonesia could running smoothly.
Updated security Oil & Gas:
risk assessments on
selected assets. • Established leading and lagging security indicators and
comprehensive risk assessments to drive our “Zero Security
Incidents” programme, enhancing asset protection and
continuous improvements.
• Reviewed how the management of Zero Security Incidents
KPI programme was implemented.
Power:
• Improved STRA (Security Threats and Risks Assessment)
template.
• Socialized and implemented security threats and risks
assessment for new Subsidiaries (Sulut-1 and Timor-1).
• Maintained weekly assessments of security threats and
risks.
The Employee Teaching Programme in Batam, Indonesia
This picture is one of the entries in the ‘Social & Culture’ category of the MedcoEnergi 2025 Photography Competition
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This picture is one of the entries in the ‘Governance’ category of the MedcoEnergi 2025 Photography Competition
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142 Approaches, Commitments and
Goals
143 Our Employees
144 Initiatives to Strengthen Our
People
152 Accelerating the Digital
Transformation Agenda to Deliver
Business Value
153 Alignment of Sustainability
Initiatives with the UN SDGs
154 Action Plans
Strengthening Our
People and Digital
Transformation
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At MedcoEnergi, our people are the foundation of sustainable growth. We continue to strive to developing workforce agility, nurturing future
talents, enhancing employee experience, and upholding a fair and respectful workplace. Through responsive resourcing, capability
development, digital HR enhancements, and sound industrial relations, we are building a resilient, engaged, and future-ready workforce that
drives our long-term success. In parallel with the human resources development initiatives, we are accelerating digital transformation to
enhance operational performance, foster innovation, and strengthen long-term value creation. We are guided by four strategic pillars:
strengthen our digital foundation, establish a new digital operating model, drive digital transformation across the business, and enhance
cybersecurity. These pillars provides clear direction towards the development of a secure, efficient and sustainable digital ecosystem that
supports continued business growth.
Approaches, Commitments, and Goals
MedcoEnergi’s Core Values – Professional, Ethical, Open, and Fundamental Principles and Rights at Work. Implementation is
Innovative, serve as the foundation of our success. They define our supported by our centralised HR information system through the
organisational culture, shape behaviours, and guide individual MyHRCorner application and the HR Dashboard portal, enhancing
performance. These principles also reaffirm our commitment to employee experience, accessibility, and decision-making efficiency.
foster an inclusive and respectful workplace where every individual
is valued. As a company that values human rights, MedcoEnergi upholds
workers’ rights and complies with all applicable labour laws across
We recognise that diversity is a key enabler of innovation and a our operations, which is in line with the Universal Declaration of
strong, inclusive workplace that supports our long‑term sustainability Human Rights (UDHR). We strictly prohibit child and forced labour
objectives. We are therefore committed to creating a workplace that and require our suppliers and business partners to adhere to the
is equitable and free from discrimination, ensuring that all same standards. Furthermore, we respect employees’ rights to
employees are treated fairly and respectfully regardless of ethnicity, freedom of association and collective bargaining, reinforcing our
race, gender, skin colour, religion, age, marital status, nationality, or commitment to ethical and responsible business practices.
background. MedcoEnergi’s Human Rights Policy is accessible at www.
medcoenergi.com.
MedcoEnergi upholds fairness across all employment practices,
ensuring that recruitment, development, performance evaluation, In parallel with our people strategies, MedcoEnergi continues to
and rewards are based on merit. Our compensation system includes strengthen its digital and IT capabilities to enable operational
performance-based pay and comprehensive benefits that exceed excellence and organisational effectiveness. For this reason, the
the provincial minimum wage (Upah Minimum Provinsi/UMP) in Company is implementing a five-year digital strategy launched in
Indonesia. The system remains competitive across MedcoEnergi;s 2022 that supports efficient, reliable, and secure digital services
other operational areas. across the organisation. It also complements human capital
development by enabling data-driven decision-making and modern
We regularly review our Human Resources policies, including the ways of working. Further details on MedcoEnergi’s Digital IT
Career Management Guidelines, Recruitment Guidelines, and strategies and initiatives are presented in the Accelerating The
Labour Management Plans, to ensure alignment with evolving Digital Transformation Agenda To Deliver Business Value section.
workforce needs and international standards such as the
International Labour Organisation’s (ILO) Declaration on
Proactive Resourcing Strategy
In line with our commitment to sustainable operations and business resilience, we have implemented a Proactive Resourcing Strategy to
ensure a fit-for-purpose workforce that supports business needs. This initiative focuses on developing long-term resourcing plans that align
with both our corporate objectives and asset development requirements, ensuring that efficient and adaptable manpower is available.
By integrating workforce planning with our business priorities, we are able to respond swiftly to operational needs while maintaining cost
efficiency, safety, and performance standards.
Key Focus Areas of Our Responsive Resourcing Strategy
Adaptive Capability
Agile Collaborative
Workforce and Skill
Deployment Partnerships
Planning Development
Anticipating future skills and Establishing flexible manpower Investing in targeted training Strengthening relationships
workforce needs that match pools and optimised third-party and continuous learning to with manpower providers to
our evolving business partnerships to enable us to strengthen workforce resilience, uphold shared values in safety,
strategies, energy transitions, mobilise timely and efficient enhance critical competencies, quality, and local employment,
and digitalisation. resources across assets, and ensure employees are ensuring a reliable, responsible,
ensuring operational continuity equipped to adapt to evolving and value-aligned extended
and responsiveness to changing operational, technological, and workforce that supports
business and project needs. business requirements. sustainable operations.
Through these responsive resourcing approaches, we continuously invest in building a workforce that is resilient, inclusive, and high-
performing that can support a safe, efficient and sustainable business in the energy and mineral resource sector.
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Organisational Effectiveness MedcoEnergi’s Organisation Effectiveness Strategy
Strategy
To ensure our organisation is effective across
asset lifecycles, we tailor structured
frameworks from long-term strategic plans Strategic Development
(Asset Development Plan/Long Term Input Framework
Planning) and operational philosophy to match
our organisational designs. This principle-
based approach ensures that each asset
organisation remains fit-for-purpose, aligned Organisation
with operational needs, and guided by
corporate standards. By embedding talent Effectiveness
development, leadership, and sustainability at
every level, and by assigning accountability to
Strategy
corporate Subject Matter Experts (SMEs), we
ensure scalability, agility, and consistency Aligned
Development Plans
across the portfolio. Organisation with Field Lifecycle,
Design and Operations
Mode
Our Employees
As of 2025, MedcoEnergi employs 3,495 individuals, of which 18% are women. Two women currently serve on our boards and committees,
accounting for approximately 15% of total membership. In addition, women hold 20.4% of leadership positions in Corporate and Medco Oil
& Gas, reflecting our continued commitment to advance gender diversity and empower women in leadership roles.
Numbers of Employees in Oil & Gas and Power Percentages of Employees in Oil & Gas
Based on Employment Contracts and Power Based on Gender
2023 3,317 181 2023 82% 18%
2024 3,259 282 2024 83% 17%
2025 3,258 237 2025 82% 18%
Permanent Temporary Male Female
Percentages of Employees in Oil & Gas Percentages of Employees in Power
Based on Age Groups Based on Age Groups
2023 5% 71% 24% 2023 24% 66% 10%
2024 5% 69% 26% 2024 25% 65% 10%
2025 4% 68% 28% 2025 23% 65% 12%
<30 years old 30-50 years old >50 years old <30 years old 30-50 years old >50 years old
Numbers of Employees in Oil & Gas and Power Numbers of Employees in Oil & Gas and Power
Based on Geographical Locations Based on Educational Levels in 2025
2023 3,205 293
2024 3,235 304
Oil & Gas Power
2025 3,179 316
Bachelors’ & Above 1,948 (79%) Bachelors’ & Above 661 (64%)
Indonesia International Diplomas 374 (15%) Diplomas 178 (17%)
High School & non-degrees 136 (6%) High School & non-degrees 198 (19%)
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Numbers of Employees in Oil & Gas and Power Based on Positions in 2025
Senior Vice
Senior Superintendent
Assets Presidents (VP) Managers Staff Total
Managers & Supervisors
& VPs
Oil & Gas 23 73 276 405 1,681 2,458
Power 10 16 32 35 944 1,037
Total 33 89 308 440 2,625 3,495
Notes: The number and percentage of new employees hired in the Oil & Gas and Power sectors, categorised by age, gender, and region, as
well as employee turnover data for the same categories, are disclosed separately in our 2025 GRI Performance Data.
Initiatives to Strengthen Our People
At MedcoEnergi, we strengthen our talent strategies by building a leadership pipeline and enhancing our workforce capabilities to support
long-term growth. By mapping talent and planning successions, we identify high-potential employees and develop them in line with Medco
Leadership Behaviors (MLB). Our leadership and technical development programmes, early career initiatives, digital HR tools, and inclusive
workplace initiatives equip our people with the skills, mindsets, and agility needed to maintain business performance.
MedcoEnergi’s Integrated Talent Management
Engagement In 2025, we reinforced our commitment to develop a future-ready
Workforce
and
Retention
Planning workforce through five key Human Resources programmes. Our
Talent Mapping and Succession Planning process ensured a robust
leadership pipeline by identifying high-potential employees and
securing continuity in critical positions. The Medco Senior
Leadership Development Programme (MSLDP) and MedcoEnergi
MedcoEnergi Business Apprentice Programme (MBAP) focused on cultivating
Succession Integrated Talent Talent
Management Acquisition
strategic leadership and accelerating early-career talent. We
Management strengthened technical and professional competencies through our
technical academies, covering subsurface, surface engineering,
wells, operations, and data science disciplines. Finally, we enhanced
employee experience and engagement through digital HR tools, the
Respectful Workplace Policy, Women@Work initiatives, and the
Learning and Performance Pulse Survey, which foster an inclusive, empowered, and high-
Development Management performing workforce.
Strengthening company Building organisational
Securing talent for Enhancing industrial and
values & Medco Developing leadership capabilities to support
critical projects and employee relations to
Leadership Behaviors and technical skills the energy transition
initiatives maintain harmony
(MLB) agenda
Securing Talent for Critical Projects and Initiatives
Continuous learning remains a core focus of MedcoEnergi, with Individual Development Plan (IDP) serving as a key framework to support
employee growth. In 2025, we executed an IDP Campaign to align employee development needs with organisational priorities. As a result of
this campaign, 19 employees received support for formal education through the Employee Education Assistance Programme, reinforcing our
commitment to developing employee capabilities.
Our Succession Planning and Talent Development programme ensures that critical functions are regenerated. This includes operations,
engineering, and subsurface, which are supported by young leaders who now hold 31% percent of structural positions. Women account for
19% percent of these roles, strengthening leadership diversity and resilience.
To attract, retain, and motivate high-performing employees, our Total Rewards strategies offer competitive, performance-driven incentives
aligned with business needs. This includes regular market benchmarking, continuous refinement of reward mechanisms, and an
organisation-wide Performance Management System actively participated in by all employees. Further details on percentage of employees
receiving performance review are available in the 2025 GRI Disclosure 404-3 within the GRI Performance Data.
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Securing the Talent Pipeline and Strengthening Workforce Readiness for Growth
We continued to strengthen our commitment to develop sustainable leadership through a structured Talent Mapping and Succession
Planning process. This identifies employees with strong potential based on consistent performance and alignment with MLB, ensuring a
robust pipeline to meet future organisational needs. In this cycle, we evaluated more than 1,100 employees, with 23% identified as High
Potentials, including 3.5% Top Talents. Additionally, we reviewed nearly 400 critical positions through our succession plans to secure
leadership continuity and support our long-term business strategies.
Medco Senior Leadership Development Programme (MSLDP)
We continued our commitment to develop
future leaders through the third batch of the
Medco Senior Leadership Development
Programme (MSLDP), conducted in
collaboration with INSEAD. This programme
equipped 25 high-potential leaders from
Indonesia, Thailand, Oman, and Singapore
with advanced strategic thinking, leadership
execution, and cross-functional capabilities.
Through strategic business initiatives and
direct engagement with the Board of
Directors, participants translated MLB into
action, strengthening their readiness to lead
with agility and deliver sustainable business Senior Leaders Participating in MSLDP Session
impacts across MedcoEnergi’s operations.
MedcoEnergi Business Apprentice Programme (MBAP)
We continued to prepare young
professionals through the MedcoEnergi
Business Apprentice Programme (MBAP),
an accelerated early-career development
programme designed to build a strong and
competitive organisation, close future
leadership and technical talent gaps, and
foster an agile culture that adapts to rapidly
changing industry landscapes. This
programme initially focused on Finance and Focus Group Discussion of the MBAP Selection
Information Technology disciplines, with the
concept of planning added in 2025 to meet
evolving business needs. This year, we received more than 2,700 applications, and 11 outstanding candidates with strong academic
performance from reputable universities were selected to join the programme.
Strengthening Company Values & Medco Leadership Behaviors (MLB)
We recognise that an engaged and inclusive workforce is essential We continued to reinforce MLB to cultivate integrity, collaboration,
to drive business success and uphold our company values. This is and continuous improvement; MLB encourages employees to
why we reinforced a culture of continuous improvement by actively embody key leadership values through MLB moments and safety
following up on the Employee Engagement Survey (EES) 2024 moments.
results, ensuring employee voices shape workplace strategies.
Medco Leadership Behaviors (MLB)
Passionate in developing self and people
competencies; Empowering people to achieve
goals, leading by example, and promoting
learning from experience.
Foster innovation Committed to creating long.term
continuosly adaptive, value and to be accountable to
agile, and open to do the right thing to achieve
new ideas. business results.
Connect and engage stakeholders
Think strategically and pay attention through effective communication and
to detail to deliver quality outcomes; bring a positive influence to others.
take tough decisions aligned with
business priorities.
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This approach reinforces an internal culture dedicated to supporting energy growth, ensuring that MLBs are deeply embedded in the way we
work. Our Performance Management System incorporates MLB as a key assessment component, integrating leadership values and
corporate principles into daily operations while also evaluating employees’ work achievements.
Coaching Programme
We continued our leadership development journey through a
structured series of programmes for senior leaders. It began with
the Lead and Inspire sessions, which equipped 20 participants with
broader perspectives, a strategic thinking mindset, and enhanced
decision-making capabilities. Building on this foundation, participants
progressed to the Coaching Programme, which was designed to
translate insights into action. Individual coaching focused on
self-improvement and personal leadership growth, while group
coaching encouraged collaboration to develop strategic business
initiatives addressing real organisational challenges.
Development Campaign
We continued to strengthen MedcoEnergi’s culture of continuous
learning and growth through the Development Campaign, promoting
the IDP and Career Profile to encourage employees to take
ownership of their development and career journey. We launched
the Capability Development Guide on the intranet to support
meaningful development conversations between supervisors and
team members and provided a Desk Tent version for Senior
Managers. In addition, we promoted the Mentoring Campaign
through multiple internal media channels to raise awareness and
encourage employees to actively participate as part of their growth
journey.
Employee Education Assistance (EEA)/Scholarship
Programmes
We continued to support employees’ development through the
Employee Education Assistance (EEA) programme, aligning
individual development plans with business priorities. Nineteen
employees were nominated to receive this award based on their
performance and relevance to current roles, thus reinforcing our MedcoEnergi Development Campaign
commitment to continuous learning and professional growth.
Medco Employee Dependent School Award (MEDSA)
We introduced the Medco Employee Dependent School Award (MEDSA) as a new initiative to enhance employee engagement by
recognising dependents with high educational achievements. This year, 71 dependents were selected, and the award ceremony was
attended by parents, management, and the President Commissioner of MedcoEnergi, which strengthened connections with our employees’
families.
The recipients of MEDSA programme in 2025
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Advancing Leadership and Technical Skill Development
We enhance leadership and employee growth through tailored training programmes that refine skills, strengthen expertise, and support
career progression. In 2025, we conducted over 550 targeted technical skill enhancement sessions, investing a total of USD 3.4 million in
both leadership and technical development.
Year Programmes Man-courses1 Training Hours Training Investment (USD)
2025 1,013 6,132 124,709 3,470,219
2024 1,085 8,210 136,380 3,882,000
2023 1,058 9,380 77,900 3,976,000
Programmes for upgrading employee skills and transition assistance programmes are available in
the 2025 GRI Disclosure 404-2 in our GRI Performance Data.
In 2025, we advanced our leadership and talent initiatives through these programmes: the Medco Subsurface Academy (MSA); Medco
Surface Engineering Academy (MSEA); Medco Wells Academy; Medco Data Science Academy; Sustainability & Climate Change
Fundamentals; the Green Ambassadors for Inclusive Climate Action (GAIA); and various other training, workshops, and forums, delivering
over 124,000 training hours.
Medco Subsurface Academy (MSA)
The MSA is an integrated training programme designed to develop both technical and leadership competencies simultaneously. It prepares
our subsurface professionals to become future leaders capable of responding effectively to the evolving challenges of the oil and gas
industry. In 2025, we continued the programme by providing ongoing monitoring and coaching to participants on their projects and daily
work, focusing on mindset, behaviour, technical analysis, decision making, and technical leadership, while continuing to encourage leaders to
apply MLB.
Medco Surface Engineering
Academy (MSEA)
The MSEA is a structured six-month
development programme comprising three
modules and nine workshop days. It is
designed to strengthen technical leadership
capabilities while embedding core
leadership values aligned with the current
challenges of the oil and gas industry. The
first module focuses on the Foundations of
Strategic Surface Engineering, highlighting
key industry challenges and the importance
of strategic capital planning shared by senior
leaders. The second module addresses
industry-specific challenges, and the third
emphasises innovation and resilience. Medco Surface Engineering Academy
Medco Wells Academy
This programme is designed to prepare
current and future leaders in the Wells
Operations division to meet MedcoEnergi’s
performance standards, aligned with
world-class oil and gas industry
benchmarks. It aims to establish a balanced
approach in addressing the company’s
immediate and long-term business
objectives. The programme targets 25
participants from the Sub-Directorate of
Medco Wells Academy
Wells and Subsurface, including drilling
managers from Oil & Gas assets.
1 The number of subject training attended by one person. If one person attends two training sessions, it will be counted as two mancourses. Reference: MedcoEnergi Training Policy.
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MedcoEnergi Operations Academy
The MedcoEnergi Operations Academy is a strategic leadership development initiative for selected supervisors in Medco Oil & Gas’
Operations function. Running from 2025 until mid-2026, this programme combines in-person workshops, virtual mentoring sessions with a
final presentation. Its goal is to strengthen leadership behaviours based on MLB; equip supervisors with robust leadership and technical
capabilities; and promote a culture of safety and Operational Excellence transformation across all operational areas. This programme was
completed in two modules, with 26 supervisors from Onshore, Offshore, and Corridor Operations participating.
MedcoEnergi Operations Academy
Medco Data Science Academy
The Medco Data Science Academy is a
programme designed to build a strong
data-driven culture by adopting advanced
analytics, enhancing workforce data literacy,
fostering evidence-based decision-making,
and enabling business users without deep
coding skills to engage in data science. In
2025, the Academy Series progressed to
the analytics project proposal stage, where
21 selected participants developed machine
learning projects to address real business
challenges, supported by mentoring
sessions across various engineering Medco Data Science Academy
domains.
Enhancing Industrial and Employee Relations to Maintain
Constructive Company-Workforce Engagement
We maintained open communication and collaboration by arranging
Quarterly Bipartite Meetings with each labour union. These
meetings addressed management and union concerns and provided
updates on new internal policies and regulations. Additionally, to
support Grow People Capabilities under MLB, we organised
activities to enhance labour unions’ knowledge in industrial
relations. In 2025, MedcoEnergi strengthened synergy across its
workforce and partners by fostering collaboration, dialogues, and
shared understanding through its annual Industrial Relations Forum
(IRF). Under the theme “Synergy Drives Energy”, the 6th IRF
brought together 80 participants, including representatives from
labour unions, joint operating bodies, subsidiaries, management,
and guest speakers. The forum served as a platform to align diverse
perspectives, promote mutual trust, and enhance joint problem-
solving capabilities. By reinforcing open communication and
collective engagement, the IRF exemplifies how MedcoEnergi MedcoEnergi’s Industrial Relations Forum
leverages collaboration as a strategic enabler to drive performance,
enhance productivity, and ensure long-term organisational
sustainability.
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mSeek AI Agent
Aligned with our digital transformation
agenda, we introduced mSeek, an AI-
powered platform that provides employees
with quick, accurate, and seamless access
to company information. Effective from
1 October 2025, the platform became
officially available to all employees,
supported by a live launch podcast featuring
our Vice President of Digital IT and Vice
President of HR & General Services. The
first phase focused on HR topics, enhancing
accessibility and the employee experience.
HR Shared Service Centre KPI/HR Dashboard
To elevate the employee experience, MedcoEnergi has implemented Key Performance Indicators (KPIs) for the HR Shared Service Centre
(SSC), which covers hire-to-terminate HR processes and services, including the HR Hotline. These KPIs measure response times and the
effectiveness of service delivery to address employee requests submitted through our Business Process Management (BPM) system.
Measuring these metrics demonstrates our commitment to maintaining high levels of employee satisfaction.
HR Dashboard
As MedcoEnergi expands in scale and complexity, the need for HR budget performance is collected into a single, intuitive, and
a centralised, accurate, and reliable source of workforce data interactive platform. Dynamic dashboards with automatically
has become increasingly critical. Access to real-time and refreshed data ensure that information remains current,
consolidated information across all people-related functions is allowing HR teams and leadership to monitor workforce trends
essential for a more effective HR management. and identify emerging patterns in real time.
The HR Dashboard, which leverages advanced analytics and This integrated HR data platform empowers management with
visualisation tools, enables key HR metrics to be presented and timely, evidence-based insights to make strategic decisions
integrated transparently. Data such as employee headcounts, that align human resource initiatives with broader organisational
turnover rates, recruitment progress, training participation, and objectives.
Building on KPI insights and following the EES and initiatives from the Female Focus Group Discussions, MedcoEnergi launched the
Respectful Workplace Policy and Women@Work initiatives in June 2025. These reinforce the Company’s commitment to supportive,
inclusive, and equitable workplaces that strengthen engagement, talent development, and organisational performance.
Respectful Workplace Policy
MedcoEnergi marked an important
milestone in its commitment to foster a
safe, inclusive, and respectful work
environment when it launched the
Respectful Workplace Policy. This hybrid
event was attended by approximately 700
participants and began with a keynote
address by our Senior Vice President of
Business Support, followed by a panel
discussion featuring senior management.
A respectful workplace is vital for
collaboration, innovation, and operational
excellence. Leaders actively encourage all
employees to contribute to a culture where
everyone feels safe, valued, and
empowered to speak up. This policy also
further encourages all employees to
internalise MLB principles, which closely
align with the company’s professional,
ethical, open, and innovative corporate
values.
To ensure widespread adoption, several
sessions were conducted to familiarise all Launching of the Respectful Workplace Policy
employees with this policy.
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Women@Work Programme
MedcoEnergi launched Women@Work in June 2025 to empower, This programme provided a platform for female employees to share
connect, and support female employees. The event, attended by inspiration, strengthen confidence, and build positive connections in
approximately 150 participants, featured a keynote speech by Mrs. the workplace. The Women@Work community held this event with the
Yani Panigoro, President Commissioner of MedcoEnergi, who theme “Refine & Shine: Enhancing Confidence and Your Best Self”,
highlighted consistency, adaptability, and resilience. A talkshow attended by 200 participants. The Women@Work community also
themed “Leading with Strength, Living with Balance” reinforced the collaborated with the Medco Foundation to donate a portion of the
initiative’s goal of fostering a supportive community for women to bazaar proceeds to aid flood victims in Sumatra. These initiatives foster
thrive both professionally and personally. both a spirit of empowerment and a shared space to grow together.
Women@Work Programme
Pulse Survey
MedcoEnergi conducted a Pulse Survey to continuously monitor
employee engagement and assess improvement initiatives across
Corporate and Business Units. Involving approximately 900–1,000
participants (30% of each business unit) and supported by an
independent third party, this survey ensured anonymity as it focused
on work processes, career development, and organisational culture.
The results will guide targeted actions to strengthen employee Pulse Survey Result Discussion with Management Team
engagement. and Mercer Indonesia
Collective Labour Agreement (CLA) Grand Plan Alignment
MedcoEnergi is committed to respectful, fair, and harmonious employee and company needs. These efforts are supported by
workplaces by continually trying to align Collective Labour “grand plan alignment” initiatives developed in collaboration with
Agreements (CLAs). This framework ensures that corporate government stakeholders. MedcoEnergi also strengthens
objectives, people practices, and regulatory requirements are collaboration with employee representatives, labour unions, and
consistently applied as it promotes integrity, trust, and mutual relevant stakeholders through regular policy reviews and
respect. communication sessions, reinforcing ethical conduct, diversity, and
equal opportunity.
To maintain industrial harmony, MedcoEnergi has established seven
CLAs, recognises 11 labour unions and is encouraging the merger of Through these initiatives, MedcoEnergi maintains a stable and
four unions into one. In 2025, the Company renewed two CLAs and respectful work environment, supporting organisational stability and
extended one additional CLA to ensure alignment with both sustainable human capital development.
Building Organisational Capabilities and Sustainable Workplace to Support
the Climate Change & Energy Transition Agenda
To translate our climate goals into action, we equip employees with Green Ambassadors for Inclusive
technical skills to support our Energy Transition Agenda. In 2025, six Climate Action (GAIA)
training programmes and knowledge-sharing sessions covered
renewables, low carbon technologies, carbon capture & storage- We continued the Green Ambassadors
carbon capture, utilisation & storage, and climate change, engaging for Inclusive Climate Action (GAIA)
181 employees and taking a total of 2,930 training hours to Champion programme, engaging
complete. employees in sustainability
campaigns to promote awareness
Sustainability & Climate Change Fundamentals and action on climate-related
(Mandatory E-learning) initiatives.
We launched mandatory e-learning titled Sustainability and Climate
Change Fundamentals, consisting of three modules, for
MedcoEnergi employees and third-party contractors across the GAIA Mascot (Green Ambassadors
Corporate Office, Oil & Gas, and Power operations. Detailed for Inclusive Climate Action)
information concerning workforce capability building on sustainability
and climate change can be found in Chapter 6.
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Sustainability Assessment Training
In late 2024, we issued the updated Sustainability Assessment sustainability assessments as a tool in the MPEP Gate Review
Guidelines. The revisions strengthened the assessment framework process. As a result, 21 reviewers are now prepared to apply the
by enhancing the consideration of climate change–related indicators, Sustainability Assessments.
providing clearer parameters, improved evaluation criteria, and
stronger alignment with evolving sustainability expectations. Alongside capability development, we continue to integrate
sustainable workplace practices into daily operations. Our continued
To ensure that it was effectively implemented, familiarisation utilization of hybrid and electric operational vehicles supports more
sessions were conducted through Sustainability Assessment efficient fuel use. We also optimize shuttle car operations through
training sessions for cross-functional reviewers, particularly those in improved route planning and higher occupancy rates. This approach
both environmental and labour management as well as social encourages employees to shift from personal vehicles to shared
performance. As a result, this training enhanced reviewers’ commuting options, which can help ease the overall fuel
understanding of the revised criteria and strengthened internal consumption. These efforts are further strengthened by
capacities to evaluate whether projects were ready to manage both energy‑conservation campaigns that encourage responsible
environmental and social impacts as well as risks. In September electricity use in the office as well as improved waste management
2025, MedcoEnergi further reinforced this effort by conducting a practices. Further information on Jakarta Office waste management
refresher training that strengthened practical assessment skills, can be found in Chapter 7.
introduced key frameworks and indicators, and supported
MedcoEnergi Award 2025: Innovation for a Sustainable Future
MedcoEnergi organises an bi-annual Corporate‑level competition, participation, with 712 abstracts submitted, representing a 42%
known as the MedcoEnergi Awards, to highlight and recognise increase compared to 2023, which recorded 508 abstracts.
significant innovations and improvements across the Group. The
awards aim to appreciate initiatives that align with the Company’s A rigorous multi‑stage selection process was applied. From the
values, foster a culture of innovation and collaboration, enhance abstract submission stage, 150 abstracts were shortlisted to
employee capabilities, and promote sustainability and climate‑related proceed to the paper development phase. The submitted papers
initiatives. The competition is open to all employees, secondees, were then progressively narrowed down to the top ten and
direct contract employees, and third‑party contractors across subsequently the top five papers in each category for the
MedcoEnergi’s corporate functions, Medco Oil & Gas and Medco presentation stage. At the final assessment, three winners were
Power assets. selected from each category, along with one overall “Best of the
Best” award.
The MedcoEnergi Award 2025 , conducted from May to November
2025, expanded the competition to five categories with the The MedcoEnergi Award continue to serve as a key platform for
introduction of a new Emerging & Pilot Innovation category, recognising innovation excellence and celebrating impactful
alongside Fit‑for‑Purpose Technology, Production/Revenue contributions that support the Company’s business performance,
Enhancement, HSE and Sustainability Excellence, and Business sustainability objectives, and long‑term value creation.
Process Improvement. This addition drove a significant increase in
MedcoEnergi Award 2025
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Accelerating the Digital Transformation Agenda
to Deliver Business Value
MedcoEnergi continues to implement its five-year digital strategy, launched in 2022. Over the past three years, we have strengthened our
digital resilience, aligned the IT operating models with business priorities, and established a robust foundation for digital transformation
through consistent execution across these four key pillars:
Digital IT Deliver value to our business by exploiting digital technologies to make our operations and
Vision processes more efficient, effective, intelligent and automated.
Strengthening Establishing a new
our digital digital operating
foundation model
Enhance monitoring tools, dashboards, and network Implement a centralised IT management system and
controls to improve reliability, resilience, and service optimise demand and portfolio processes to ensure
quality. efficient, value-driven operations.
Driving digital
Strengthening our
transformation
cybersecurity
across the business
Expand Artificial Intelligence (AI)/Machine Learning Reinforce defences, partnerships, and awareness
(ML) platforms, data visualisation systems, and initiatives to elevate cyber resilience and organisational
digital capability programmes, earning industry readiness.
recognition for innovation.
In 2025, while maintaining progress across all four pillars, MedcoEnergi increased its focus on leveraging advanced digital technologies such
as AI and ML to deliver greater business value.
a. Strengthening our digital foundation • Applied AI/ML solutions to optimise asset performance,
• Enhanced monitoring tools, dashboards, and the command production efficiency, reliability, and operational safety.
centre to enable faster issue detection and resolution, • Continued building digital capability and culture through the
minimising disruptions and improving service quality. second batch of the Data Science Academy and Citizen
• Strengthened network controls through improved segmentation Developer programmes, in collaboration with leading
and access management to enhance infrastructure reliability Indonesian universities.
and security. • Earned industry recognition for digital innovation and leadership
b. Establishing a new digital operating model at the Society of Petroleum Engineers (SPE) Dubai, the SPE
• Developed a centralised system for IT asset and service Java Region Hackathon 2025, and the SKK Migas AI/ML
management that enables proactive, efficient, and business- Hackathon 2025.
aligned operations. d. Strengthening our cybersecurity
• Advanced the Demand and Portfolio Management process into • Enhanced cybersecurity readiness through joint simulation and
a fully optimised and embedded practice that is supported by a crisis response exercises with the Medco Emergency & Crisis
value creation submission process to ensure sustained Management team, Indonesia’s National Cyber and Crypto
business value delivery. Agency (BSSN), Singapore’s Cybersecurity Agency (CSA), and
c. Driving digital transformation across the business critical infrastructure partners.
• Implemented an integrated operational data foundation and • Fostered stronger security awareness and accountability
visualisation platform across multiple production assets, through quarterly phishing simulations and continuous
enhancing transparency, efficiency, and data sharing. education initiatives, including campaigns and podcasts.
• Rolled out enterprise-wide AI/ML platforms and Generative AI • Continued to strengthen its infrastructure security posture by
use cases to accelerate insights, collaboration, and data-driven deploying advanced perimeter protection, enhanced threat
decision-making. detection and response capabilities to address evolving
cybersecurity risks.
These achievements mark a significant milestone in MedcoEnergi’s digital transformation, reinforcing operational efficiency, cybersecurity
resilience, and technological innovation across the organisation.
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Alignment of Sustainability Initiatives with the UN SDGs
The table below aligns MedcoEnergi’s initiatives to strengthen people and digital information with the relevant United Nations Sustainable
Development Goals (UN SDGs). These initiatives only highlight MedcoEnergi’s effort and do not imply MedcoEnergi has set or measured
targets for host governments in our operational areas regarding the achievement of the UN SDGs.
UN SDGs Relevant UN SDGs Targets1 Key Initiatives
• Educational scholarships for employees and dependent
4.3 • Employee Engagement Survey (EES)
• Leadership and technical capability development programmes
• Medco Leadership Behaviors (MLB)
• Medco Subsurface Academy (MSA)
• Medco Surface Engineering Academy (MSEA)
• Medco Wells Academy
• MedcoEnergi Operations Academy
• Medco Data Science Academy
5.1, 5.5 • Medco Senior Leadership Development Programme (MSLDP)
• Women@Work Community
• Collective Labour Agreements (CLA)
• Competency management systems (CMS)
• HR policies and guidelines
8.2, 8.5, 8.6, 8.8
• Repectful Workplace Policy
• Leadership and technical capability development programmes
• Talent mobilisation
• Benefit alignments
10.2, 10.3
• Salary grade entitlements
13.3 Climate-related capability building programmes and initiatives
• CLAs
16.b
• Industrial relations engagements with labour unions
1 The targets can be found in UN SGDs website (https://sdgs.un.org/goals)
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Action Plans
The following action plans will enable us to meet our objectives and continue empower our people. We regularly measure, monitor and
report on our progress and performance and match them against these actions. The progress report of these action plans refers to the 2023
- 2027 Sustainability Road Map. Since we have passed the short‑term period and actions were concluded in 2025, our current focus is on the
status of the medium/long‑term actions.
Category Short-term Actions Medium/Long-term Actions Status
Talent Attraction, Medco Senior Leadership Development Programme (MSLDP)
Development and Completed the MSLDP Batch 2 Continue implementing MSLDP Completed professional development for
Retention – Learning through Experience. Batch 2, focused on creating employees with more than 124,000 training
other leaders and preparing for hours.
MSLDP Batch 3.
Continued the Leadership Programmes,
including MSLDP, Leadership Coaching,
Critical Thinking, Leaders Forum and
Conversational Capacity.
Completed MSLDP Batch 3 in Feb 2025 with
final presentation from 25 senior leaders.
Medco Leadership Behaviors (MLB)
Build understanding of MLB in Broaden and enhance Continued MLB implementation and
Oil & Gas Indonesian assets understanding of MLB within integration in all HR initiatives, such as
Oil & Gas international assets Performance Management and Leadership
and other subsidiaries. programmes.
Incorporate MLB aspects in
Talent Development
Framework.
Incorporated MLB aspects into Incorporated MLB aspects in Completed in 2023 and 2024.
performance management. leadership assessments.
Talent Development Framework (Talent Mapping & Succession Planning)
Conducted talent monitoring Conduct system enhancements Conducted Integrated Leadership
for high-potential employees and familiarisations within Development Programme (group & individual
and successors. Corporate, Oil & Gas, Power coaching, lead & inspire sessions).
and other subsidiaries.
Completed cross-functional calibrations and
talent reviews with BoD in November.
Used talent mapping criteria to assess the
potentials of Power subsidiaries (MRPR and
MEB Supervisors)
Conducted talent mapping & succession
planning for VP positions at Power asset HQ.
Technical and Operations Competency Management
Identify and assess current Identify and assess current Operations, Competency & Learning
gaps in critical roles within gaps with core matrix to
technical functions using the support energy transitions • Method: Self-learning, mentoring by N-1,
Technical Competency within Oil & Gas and Power in-class training
Management System (TCMS) assets as well as for critical • Offshore Operations: 98%
in Indonesian Oil & Gas and roles within technical functions • Onshore Operations: 99%
Power assets. at Oil & Gas, Power assets and • Corridor Operations: 98%
support divisions
Continue to implement the
development plans.
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Category Short-term Actions Medium/Long-term Actions Status
Talent Attraction, Establish the TCMS Implement the development Oil & Gas:
Development and development plans for critical plans in Indonesian Oil & Gas
Retention roles at Technical functions to and Power assets. • Ongoing Technical CMS Phase 3 for 18
support energy transition discipline engineers. 100% self-
initiatives in Indonesian Oil & assessment. Ongoing process for
Gas and Power assets. verification.
Power:
• Completed Technical Competency
Assessments for Supervisors, Operators,
and Technicians of MRPR and MEB.
• Progressing review of engineering
competency matrix for 6 disciplines as part
of Power asset transformation initiative.
Initiate core matrix for critical Oil & Gas:
roles in technical divisions to
support energy transitions in • Completed several sessions of knowledge
Indonesian Oil & Gas and sharing forum of energy transition subjects
Power assets. facilitated by internal/external subject
matter experts.
Power:
• Progressing with refining and discussions
with GIZ on the terms and conditions of
the cooperation agreements.
Conducted technical capability Subsurface Academy Monitor and provide participants with
development programmes continuation progression and coaching on their projects/daily work in terms
through Subsurface Academy practices of: mindset, behaviours, technical analyses
and MPMA. and decision making, as well as technical
Conduct in-house Subsurface leadership. Keep encouraging leaders to apply
Academy training and expand leadership with MLBs.
approaches to other in-house
development programmes.
Finalised Operations Completed 2nd workshops of Completed 2nd workshops of Operations
Competency Management Operations Academy (including Academy. The 3rd workshop will be held in
System (CMS). OJT programme). The 3rd January 2026.
workshop will be held in
January 2026.
Conducted Operations CMS in Completed in 2024.
Indonesian Oil & Gas and
Power assets.
Employee Engagement Survey (EES)
Conducted an EES with a focus Implement an action plan to Completed pulse survey of the selected
on gathering feedback to foster convert feedback into actionable respondents and presented the report.
a strong company culture and initiatives.
drive business objectives for
employees in Corporate, Oil & Complete 2nd EES.
Gas, Power, and other
subsidiaries.
Review and develop EES action plans. • Launched a Campaign of Individual
Development Plans (IDP) & Career Profile.
• Launched Women@Work.
• Released Capability Development Guide.
• “Dare to Grow” Mentoring Programme.
• Completed EEA and MEDSA.
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Appendix
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List of Entities
The following is the list of MedcoEnergi asset names and their corresponding legal entities:
Name of Assets Name of Legal Entities Name of Assets Name of Legal Entities
Oil & Gas Power
Oman KSF Medco LLC MEB PT Mitra Energi Batam
Thailand (Bangkok Office) Medco Energi Thailand (Bualuang) DEB PT Dalle Energy Batam
Limited
ELB PT Energi Listrik Batam
Thailand (Field) Medco Energi Thailand (Bualuang)
Limited Sarulla Geothermal PT Medco Geothermal Sarulla
Medco Energi Thailand (E&P) TJBPS PT TJB Power Services
Limited
Cibalapulang Mini-hydro PT Bio Jatropha Indonesia
Singapore Office Medco Energi Global Pte Ltd
Pusaka Mini-hydro PT Pembangkitan Pusaka
Block A PT Medco E&P Malaka Parahiangan
South Sumatra Block PT Medco E&P Indonesia MPI Headquarters PT Medco Power Indonesia
Rimau PT Medco E&P Rimau MPE PT Multidaya Prima Elektrindo
South Natuna Sea Block B Medco E&P Natuna Ltd EPE PT Energi Prima Elektrika
Lematang PT Medco E&P Lematang MRPR PT Medco Ratch Power Riau
Medco Lematang BV MPSI PT Medcopower Servis Indonesia
Lematang E&P Limited Sumbawa Solar PV PT Medcopower Solar Sumbawa
East Bali Solar PV PT Medcosolar Bali Timur
Tarakan PT Medco E&P Tarakan
Ijen Geothermal PT Medco Cahaya Geothermal
Madura Offshore Medco Energi Madura Offshore
Pty Ltd PT Medco Power Geothermal
Services
Sampang Medco Energi Sampang Pty Ltd
Timor-1 PT Medco Power Energi Services
Bangkanai Medco Energi Bangkanai Ltd
Sulut-1
Medco Energi Central Kalimantan
Ltd
Medco Energi Kerendan Limited
Corridor Medco E&P Grissik Ltd
Medco E&P Corridor S.A.U
Sakakemang Medco E&P Sakakemang B.V.
Jakarta Office PT Medco Energi Internasional Tbk
Palembang Office PT Medco E&P Indonesia
Banda Aceh Office PT Medco E&P Malaka
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Awards in 2025
Award Issuing Organisation Description
Medco Energi Internasional (MEI)
Bisnis Indonesia Awards PT Medco Energi Internasional Tbk won the 2025 Bisnis Indonesia Awards
Bisnis Indonesia Group
(BIA) Oil and Gas category (BIA) for the Oil and Gas category.
MedcoEnergi secured the Runner-up position in Category 21 of the ASEAN
Enterprise Risk Management Risk Champion Awards, receiving international recognition for its ongoing
ASEAN Risk Awards
Academy (ERMA) commitment to fostering synergy and resilience through effective risk
management.
PT Medco Energi Internasional Tbk received the Indonesia ESG Leadership
Indonesia ESG Leadership
BGK Foundation Awards 2025 in the Leadership AA – Excellence Leader in ESG
Awards 2025
Transparency category.
Foundation for International Based on FIHRRST's study "2024 Sustainability Report Study of Indonesia
Rank A in Sustainability
Human Rights Reporting Listed Companies: Strengthening Governance Measures to Support
Report
Standards (FIHRRST) Sustainability," Medco Energi Ranked A in Sustainability Report.
Indonesia Best Digital PT Medco Energi Internasional Tbk achieved first place in the “Indonesia
SWA Media
Innovation 2025 Best Digital Innovation 2025.”
Medco Oil & Gas
Medco’s DIT AI/ML team placed the 10th at the Gotech AI Hackathon 2025
Gotech AI Hackathon 2025 Dragon Oil and Society of
in Dubai, organized by Dragon Oil and the Society of Petroleum Engineers
10th Place Petroleum Engineers (SPE)
(SPE).
Medco’s DIT AI/ML team received the Best Poster Presentation in the
Indonesian Petroleum
Best Poster Presentation Engineering category at the 49th IPA Convex 2025 in Jakarta, hosted by the
Association
Indonesian Petroleum Association (IPA).
2nd Place in Proof of Medco’s DIT AI/ML team secured 2nd place in the Proof of Concept (PoC)
SKK Migas
Concept Category category in the SKK Migas IOC Hackathon 2025 in Bandung.
1st Place Geo-Energy Medco’s DIT AI/ML team won 1st place at the 2025 Geo-Energy Hackathon
SLB
Hackathon Scale up – Scale-Up Edition, organised by SLB in Jakarta.
MedcoEnergi Security Team achieved an outstanding milestone by winning
First Place in the “Best Security Performance KKKS” category at the 2025
2025 SKK Migas Security SKK Migas Security Award. This award serves as a recognition of the
SKK Migas
Award dedication, discipline, and excellence performance of the MedcoEnergi
Security Team in implementing robust, adaptive, and sustainable security
standards.
The company received the "Best Partner" award in the category of Upstream
“Best Partner” award in
Oil and Gas Enterprises. This prestigious award was given in recognition of
the category of Upstream PPSDM Migas
its various training initiatives and competency development efforts
Oil and Gas Enterprises
undertaken at the PPSDM Migas Appreciation Day 2025.
Medco E&P Indonesia has been honored with the Empowerment
Empowerment
Collaboration Partner Award from Rumah Zakat at the Public Expose 2025
Collaboration Partner Rumah Zakat
even. The award recognized the Company’s commitment to sustainable
Award
community development.
JOB Tomori won the Silver Award in the Best Community Programme
Silver Award in the Best The Pinnacle Group
category at the 17th Annual Global CSR & ESG Awards 2025 in Vietnam for
Community Programme International
its Asih Loinang programme.
1 Category 2 is a Company with sales turnover more than USD 75 million or more than 200 employees.
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Award Issuing Organisation Description
PT Medco E&P Malaka has been honored with the prestigious Serambi
Ekraf Award 2025 in the category of Community-Based Creative Economy
The Ministry of Creative Empowerment. This recognition reflects MedcoEnergi’s strong
Serambi Ekraf Award 2025
Economy (EKRAF RI) commitment to supporting local economic growth and local talents, which
have successfully strengthened competitiveness and enhanced the capacity
of communities around its operational areas.
JOB Pertamina–Medco E&P Tomori Sulawesi (JOB Tomori) was awarded
Best Collaboration for its consistency in building effective security synergy
Best Collaboration Awards SKK Migas
with the Indonesian National Armed Forces (TNI), the Indonesian National
Police (Polri), and regional security partners.
Medco E&P Indonesia and Medco E&P Grissik Ltd.'s strong commitment to
environmental sustainability has once again received significant recognition
Certificate of Appreciation South Sumatra Provincial
from the South Sumatra Provincial Government. Medco received a
and Commendation Government
Certificate of Appreciation and Commendation from the Governor of South
Sumatra for its successful environmental conservation programme.
Our non-operated assets, JOB Pertamina-Medco E&P Tomori Sulawesi
2025 Climate Village Ministry of Environment of the received the 2025 Climate Village Programme award from the Ministry of
Programme Award Republic of Indonesia Environment. The award was presented at the Proklim awards ceremony in
Jakarta.
Medco E&P Indonesia earned First Place at the 2025 Career Development
Monitoring (CDM) Award, organised by SKK Migas, in Category P1, which
2025 Career Development represents Production Sharing Contractors (KKKS) with Very Large
SKK Migas
Monitoring Award production scale. The award recognizes the Company’s excellence in
human capital development and the strengthening of organisational
capabilities.
All Medco Oil & Gas Operated Assets (Block A, Rimau, South Sumatra
Ministry of Environment of the
Blue PROPER Award Block (SSB), Lematang, Tarakan, Madura, Corridor) recognized for full
Republic of Indonesia
compliance with environmental performance PROPER Blue criteria.
Our non-operated assets, JOB Tomori and TJBPS achieved Green PROPER,
Ministry of Environment of the
Green PROPER Award reflecting environmental performance that went beyond regulatory
Republic of Indonesia
requirements and met PROPER Green criteria.
Medco E&P Grissik (MEPG) continues to demonstrate its commitment to
delivering tangible benefits to communities surrounding its operational areas
through its Community Engagement and Development Programme (PPM).
SKK Migas Appreciation SKK Migas One of the key initiatives carried out in collaboration with SKK Migas since
2024 is the Manunggal Air Programme. During the closing ceremony of the
Manunggal Air Programme. MEPG received recognition from SKK Migas for
its support of the initiative.
Certification for the Medco E&P Malaka has obtained the Certification for the Implementation of
Implementation of the the Security Management System (SMP) for National Vital Objects
Indonesian National Police
Security Management (Obvitnas). The certification serves as an official recognition that an
Security Maintenance Agency
System (SMP) for National organisation has implemented a reliable security management system in
Vital Objects (Obvitnas) compliance with established standards.
National Energy Efficiency Ministry of Energy and Mineral JOB Tomori won the 2025 National Energy Efficiency Award (PEEN) in the
Award (PEEN) Resources (ESDM) Energy Conservation Sector for the Innovation Subcategory.
Medco E&P Natuna Ltd. (MEPN) has achieved an “Excellent” rating for Oil
“Excellent” rating for Oil &
Ministry of Energy and Mineral & Gas Safety Management System (SMKM) surveillance assessment
Gas Safety Management
Resources (ESDM) conducted by the Directorate of Oil & Gas Engineering and Environment
System (SMKM)
(DMTL), Directorate General of Oil & Gas (Ditjen Migas), ESDM.
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Award Issuing Organisation Description
MedcoEnergi assets (JOB Tomori, MEPI Grissik, MEPI Malaka, MEPI
Migas Safety Recognition Ministry of Energy and Mineral Lematang, MEPI Tarakan, MedcoEnergi Bangkanai, JOB Simenggaris,
2025 Resources (ESDM) MedcoEnergi Sampang, MedcoEnergi Madura Offshore) received Patra
Nirbhaya awards in the Migas Safety Recognition 2025 on November 2025.
PT Medco Energi Internasional Tbk (MedcoEnergi), through two of its
subsidiaries, received the 2025 Subroto Award from the Kementerian Energi
Ministry of Energy and Mineral dan Sumber Daya Mineral (ESDM). The award was presented to Medco
Subroto Award 2025
Resources (ESDM) E&P Grissik Ltd. in the categories of Oil and Gas Safety and Gas Flaring
Optimization, and to PT Medco E&P Rimau in the categories of Non-Tax
State Revenue (PNBP) and Upstream Oil and Gas Financial Performance.
Medco Power
Recognition of its
participation in the free
PT Medco Power Indonesia, through its subsidiary PT Pembangkitan Pusaka
electricity installation
Parahiangan (PPP), received an award from PLN UP3 Cianjur in recognition
programme for PLN UP3 Cianjur
of its participation in the free electricity installation programme for
underprivileged
underprivileged households in Cianjur, West Java.
households in Cianjur,
West Java
Indonesia Best Electricity MCG was named Best Independent Power Producer (IPP) in the Renewable
Listrik Indonesia
Awards (IBEA) 2025 Energy Power Plant – Technology Innovation category.
Medco Power Indonesia (MPI), through PT Mitra Energi Batam (MEB),
received an award from the Governor of Riau Islands for its outstanding
Riau Islands Governor's Governor of Riau Islands contribution to developing vocational education development in the region.
Award province The award highligths Medco Power's commitment to being not only an
energy industry player, but also a social development partner on improving
human capital development.
Three subsidiaries of PT Medco Power Indonesia Mitra Energi Batam
Electrical Safety (MEB), Energi Listrik Batam (ELB), and Medco Ratch Power Riau (MRPR)
Management System Ministry of Energy and Mineral have successfully earned the Electrical Safety Management System (SMK2)
(SMK2) Certificate with a Resources (ESDM) Certificate with a Blue Predicate from the Ministry of Energy and Mineral
Blue Predicate Resources (ESDM). These Medco Power assets play a vital role in ensuring
reliable electricity supply within their respective operating regions.
Ministry of Environment of the All MPI Operating Assets (MRPR, DEB, MEB, and MPE) recognized for full
Blue PROPER Award
Republic of Indonesia compliance with environmental performance PROPER Blue criteria.
PT Medco Cahaya Geothermal received the PRATAMA Award in recognition
Ministry of Energy and Mineral
PRATAMA Award of its performance in Occupational Health and Safety (OHS) and Geothermal
Resources (ESDM)
Engineering for a non-producing working area at the project stage.
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OJK Sustainability Reporting Standards and
Requirements (SEOJK NO.16/2021)
As a company listed on the Indonesia Stock Exchange, MedcoEnergi prepares its Sustainability Report in alignment with the requirements of
the Financial Services Authority (OJK), including POJK No. 51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial
Services Institutions, Issuers, and Public Companies, as well as SEOJK No. 16/SEOJK.04/2021 on Sustainability Reporting Standards and
Requirements.
No. Topic No. Disclosure Page
A Corporate sustainability A.1 Explanation of the sustainability strategy 32-43
strategy
B Summary of sustainability B.1 Economic aspect 16
performance
B.2 Environmental aspect 17
B.3 Social aspect 18
C Summary of company C.1 Vision, mission, and sustainability values 23
profile
C.2 Company’s address Back Cover
C.3 “Scale of business” 22, 28, 143-144
C.4 Products, services, and business activities conducted 22
C.5 Association memberships 43
C.6 Significant changes to the company Not Applicable
D Letter from Board/ D.1 Letter from the Board/Director(s) 8-12
Director(s)
E Sustainability governance E.1 Responsibility for the implementation of sustainable finance/ 39, 47
operations
E.2 Competency development pertaining to sustainable finance/ 50-51, 56-57, 65, 144-152
operations
E.3 Risk assessment on the implementation of sustainable finance/ 41
operations
E.4 Stakeholder relations 42-43
E.5 Issues on implementation of sustainable finance/operations Not Applicable
F Sustainability F.1 Initiatives in building a culture of sustainability 32, 39, 41, 46-48, 53, 64,
performance 86-88, 98-99, 104-105,
120, 132-139, 142, 144
Economic Performance
F.2 Economic comparison of production targets and performance 16, 29
portfolio, financing target, or investment, income and profit/loss
F.3 Economic comparison of target and portfolio performance, financing Not Applicable
target, or investments in financial instruments or projects relating to
sustainable operations
Environmental Performance
F.4 Environmental cost 95,123
Material Aspect
F.5 Use of environmentally-firendly materials 89-91
Energy Aspect
F.6 Amount and intensity of energy usage 75
F.7 Efforts and initiatives for energy efficiency and renewable energy 76-80
Water Aspect
F.8 Water usage 92-93
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No. Topic No. Disclosure Page
F Sustainability
Biodiversity Aspect
performance
F.9 Impacts of operations near or within a conservation area/areas rich in 94-97
biodiversity
F.10 Initiatives for biodiversity conservation 94-97
Emission Aspect
F.11 Amount and intensity of emissions produced by type 73-74
F.12 Initiatives and achievements for emission reduction 71-72
Waste and Effluent Aspect
F.13 Amount of waste and effluent produced by type 89-91
F.14 Waste and effluent management mechanism 89-91
F.15 Spills that occurred (if any) 91
Complaints Regarding the Environment Aspect
F.16 Number and material of environmental complaints received and 86
resolve
Social Performance
F.17 Commitment in providing services on products and/or equivalent Not Applicable
services to consumers
Employee Aspect
F.18 Equal employee opportunity 142
F.19 Child labour and forced labour 57,142
F.20 Regional minimum wage 142
F.21 Decent and safe working environment 142
F.22 Employee capabilities training 144-148
Community Aspect
F.23 Impact of operations on surrounding communities 120-139
F.24 Public complaints 54
F.25 Corporate environmental and social responsibility initiatives (related 120-139
to UN SDGs)
Responsibility for the Development of Sustainable Products and Services
F.26 Innovation and development of sustainable products and services Not Applicable
F.27 Products and services that have been evaluated for customer safety 111
F.28 Impacts of products and services 86-87
F.29 Number of products recalled Not Applicable
F.30 Customer satisfaction survey on sustainable products and services Not Applicable
G Written verification from G.1 Written verification from an independent party (if any 3
an independent party
H Feedback form H.1 Feedback form Feedback Form
I Responses to the I.1 Responses to the previous year's report feedback Not Applicable
previous year's report
feedback I.2 List of disclosures according to Circular Letter of Financial Service 159-161
Authority Regulations (OJK) Number 51/POJK.03/2017
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Singapore’s Accounting and Corporate Regulatory
Authority (ACRA)
While MedcoEnergi’s sustainability reporting is primarily governed by Indonesian regulatory requirements under OJK, we also maintain a
Singapore-incorporated subsidiary. In light of emerging sustainability reporting requirements in Singapore, including those administered by
the Accounting and Corporate Regulatory Authority (ACRA) for Large Non-Listed Companies, we have undertaken an internal high-level
assessment against relevant ACRA disclosure expectations. These requirements generally focus on climate-related disclosures, including
greenhouse gas emissions and governance, strategy, risk management, and metrics and targets aligned with international frameworks such
as ISSB. This assessment provides a reference to support transparency and preparedness, should such requirements become applicable at
the entity level.
No. Category Requirement Page Reference
1 GHG Emissions Scope 1: Direct emissions from sources MedcoEnergi 73
owns or controls
2 Scope 2: Indirect emissions from the generation of 74
purchased energy MedcoEnergi consumed
3 Scope 3: All other indirect emissions (not included in 74
Scope 2) that occur in MedcoEnergi’s value chain
4 Other ISSB-based climate-related How MedcoEnergi Manages Climate-Related Risks and Opportunities through:
disclosures (CRD)
5 Governance 39, 66-67
6 Strategy 66-67
7 Risk Management 41, 66-67
8 Key metrics and targets used to measure progress 64, 66-67, 72, 79, 81-83
Onshore Receiving Facility, Singapore
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Acronym and Abbreviations
3R Reduce, Reuse, and Recycle BMZ German Federal Ministry for Economic
Cooperation and Development
A&IC Audit and Integrity Compliance
BOC Board of Commissioners
A&OI Asset and Operating Integrity
BOD Board of Directors
ABC Anti-Bribery and Corruption
BOE Barrel of Oil Equivalent
ABMS Anti-Bribery Management System
BP2SDM Human Resources Education and
ACVG Alternating Current Voltage Gradient Training Centre (Badan Penyuluhan dan
ADB Pengembangan Sumber Daya Manusia)
Asian Development Bank
AGM Annual General Meeting BPDASHL Protected Forest Management Agency
AI (Balai Pengelolaan Daerah Aliran Sungai
Artificial Intelligence
dan Hutan Lindung)
AI Asset Integrity
AIMS BPM Business Process Management
Asset Integrity Management System
AKAMIGAS Oil and Gas Academy (Akademi Minyak BSP Bulan Solar Project
dan Gas) BRI Bank Rakyat Indonesia
ALARP As Low As Reasonably Practicable BSR Business for Social Responsibility
ALT Asset Leadership Team BSSN Indonesia’s National Cyber and Crypto
AMDAL Environmental Impact Assessment Agency (Badan Siber dan Sandi Negara)
(Analisis Mengenai Dampak Lingkungan
Hidup) BUJP Security Services Company (Badan Usaha
Jasa Pengamanan)
AML Anti-Money Laundering
BUMDes Village-Owned Enterprises (Badan Usaha
AMMN PT Amman Mineral Internasional Tbk
Milik Desa)
AOF Advantage Oman Forum CAO Chief Administrative Officer
AORV Abnormal Operating Risk Visualization
CAPEX Capital Expenditures
API American Petroleum Institute
CBC Corporate Board Committee
APINDO Indonesian Employers Association
CC Compliance Champion
(Asosiasi Pengusaha Indonesia)
APLSI Indonesian Independent Power Producers CCPP Combine Cycle Power Plant
Association (Asosiasi Produsen Listrik CCRA Climate Change Risk Assessment
Swasta Indonesia)
CCS Carbon Capture and Storage
APPLTA Hydropower Plant Developers Association
(Asosiasi Pengembang Pembangkit Listrik CCUS Carbon Capture, Utilization and Storage
Tenaga Air)
CCWG Climate Change Working Group
APRIMI Association of Indonesian Oil and Gas
Industry Remuneration Practitioners CDP Formerly the Carbon Disclosure Project,
an international non-profit organisation
APS Announced Pledges Scenario that helps companies and cities disclose
ASEAN Association of Southeast Asian Nations their environmental impact
(Asosiasi Praktisi Remunerasi Migas
CECC Corporate Ethics and Compliance
Indonesia)
Committee
ASME American Society of Mechanical
CEO Chief Executive Officer
Engineers
BAP Biodiversity Action Plans CFE Community Forest Enterprises
BAPPENAS The Ministry of National Development CFO Chief Financial Officer
Planning (Badan Perencanaan CH4 Methane
Pembangunan Nasional)
CHSEMS Contractor HSE Management System
BAT Best Available Technologies
CIP Climate Impact Platform
bbls Barrels
CIVD Central Integrated Vendor Database
BCMS Business Continuity Management System
CLA Collective Labour Agreement
BCF Banggai Cardinalfish (BCF)
CMEA Coordinating Ministry for Economic
BIFO Bypass/Inhibit/Force/Override Affairs
BKSDA Natural Resources Conservation Agency
(Balai Konservasi Sumber Daya Alam) CMS Competency Management System
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CMT Crisis Management Team EVCU Electric Vehicle Charging Unit
CO2e Carbon dioxide equivalent FAI Indonesian Environmental Impact
Assessment Forum
CoC Code of Conduct
FGD Focus Group Discussions
COD Commercial Operation Date
FLIR Forward-Looking Infrared
CoI Conflict of Interest
FLT Functional Leadership Team
COO Chief Operating Officer
FIHRRST Foundation for International Human
CPP Central Processing Plant Rights Reporting Standards
CSEC Contractor’s Statement of Ethical FOL Finding Oil Lost
Compliance
FORKOPIMCAM Sub-district Leadership Coordination
CSIRT Computer Security Incident Response Forums (Forum Koordinasi Pimpinan
Team Kecamatan)
CST Corridor Storage Tanker FORKOPIMDA District leadership coordination forums
(Forum Komunikasi Pimpinan Daerah)
CSR Corporate Social Responsibility
FPIC Free, Prior and Informed Consent
CSRM Corporate Sustainability and Risk
Management FPSO Floating Production Storage and
Offloading
CSMS Contractor Safety Management System
FRA Fraud Risk Assessment
DD Due Diligence
FRM Fraud Risk Management
DEB PT Dalle Energy Batam
FV Field Verification
DIT Digital Information Technology
GAIA Green Ambassadors for Inclusive Climate
E&P Exploration and Production Action
ECC Ethics & Compliance Committee GCG Good Corporate Governance
EDMS Electronic Document Management GHG Greenhouse Gas
System
GIZ Deutsche Gesellschaft für Internationale
EES Employee Engagement Survey Zusammenarbeit
ELB PT Energi Listrik Batam GJ Gigajoules
ELO Ethics Liaison Officer GOI Government of Indonesia
EMS Environmental Management System GPF Gas Processing Facility
EMT Emergency Management Team GRE Glass Reinforced Epoxy
EP Equator Principles GRI Global Reporting Initiative
EPC Engineering, Procurement and GS General Services
Construction
GSA Gas Sales Agreement
ERM Environmental Resources Management GTC Gas Turbine Compressor
ERM Enterprise Risk Management GTG Gas Turbine Generator
ERT Emergency Response Team GWh Gigawatt hour
ESDM Ministry of Energy and Mineral Resources HAZID Hazard Identification
(Energi dan Sumber Daya Mineral)
HAZOP(S) Hazard and Operability (Study)
ESG Environmental, Social, and Governance
HR Human Resources
ESHIA Environmental, Social, and Health Impact
HRA Human Rights Assessment
Assessment
HRIA Human Rights Impact Assessment
ESIA Environmental and Social Impact
Assessments HRDD Human Rights Due Diligence
ESP Electrical Submersible Pump HRP Human Rights Policy
ETWG Energy Transition Working Group HRSG Heat Recovery Steam Generator
EV Electric Vehicle HSE Health, Safety, and Environment
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HSEAC HSE Action Committee IUCN International Union for Conservation of
Nature
HSEMS Health Safety and Environment
JOB Joint Operating Body
Management System
JPP Job Performance Profile
HVTS-MRP High Velocity Thermal Spray–Metal
Reinforced Polymer JTP Just Transition Plans
IBCSD Indonesian Business Council for KADIN Indonesian Chamber of Commerce and
Sustainable Development Industry (Kamar Dagang dan Industri)
KHDKT Special Purpose Forest Area (Kawasan
IBEA Indonesia Best Electricity Award
Hutan Dengan Tujuan Khusus)
ICCSC Indonesia Carbon Capture and Storage KKKS Contractor Partnership (Kontraktor
Center Kontrak Kerja Sama)
ICSA Indonesia Corporate Secretary Association KLHK Ministry of Environment and Forestry,
Indonesia (Kementerian Lingkungan Hidup
IDP Individual Development Plan dan Kehutanan)
IDR Indonesian Rupiah KPI Key Performance Indicator
IDX Indonesia Stock Exchange KSF Karim Small Fields
IEA International Energy Agency KTH Forest Farmer Groups (Kelompok Tani
Hutan)
IESG Industry Environmental Safety Group
KWp Kilowatt peak
IFC International Finance Corporation
KYC Know-Your-Customer
IFRS International Financial Reporting
Standards Land Acquisition and Resettlement Action
LARAP
IFRS S1 International Financial Reporting Plan
Standards – Sustainability-related LCT Low-Carbon Transition
Disclosures Standard (S1)
LSRFV Life-Saving Rules Field Verifications
IFRS S2 International Financial Reporting
Standards – Climate-related Disclosures LGP Lift Gas Platform
Standard (S2)
LRP Livelihood Restoration Plan
IGCN Indonesia Global Compact Network
IMT LSR Life-Saving Rules
Incident Management Team
LTI Lost Time Injury
INAGA Indonesian Geothermal Association
LTIR Lost Time Injury Rate
INSEAD European Institute of Business
Administration (Institut Européen m 3
Cubic metre
d’Administration des Affaires)
MAM Medco Active Movement
INSPIRA Indonesian Solar Panel Industry and
Renewable Alliance MBAP MedcoEnergi Business Apprentice
Programme
IOGP International Association of Oil & Gas
Producers MBOEPD Million Barrels of Oil Equivalent Per Day
IPA Indonesia Petroleum Association MCG PT Medco Cahaya Geothermal
IPCC Intergovernmental Panel on Climate MCU Medical Check Up
Change
MEB PT Mitra Energi Batam
IPP Independent Power Producer
MEDSA Medco Employee Dependent School
IPPKH Borrow‑to‑Use Forestry Permit (Izin Award
Pinjam Pakai Kawasan Hutan)
MEI Medco Energi Indonesia
IRF Industrial Relations Forum
MEMR Ministry of Energy and Mineral Resources
ISF Indonesia International Sustainability
Forum MEPI PT Medco E&P Indonesia
ISMS Information Security Management MEPN Medco E&P Natuna Ltd (South Natuna
System (ISMS) Sea Block B)
ISO International Organisation for MERP Medical Emergency Response Plan
Standardisation
MKI Indonesian Electrical Power Society
ISPS International Ship and Port Facility
Security ML Machine Learning
ISSP International Society of Sustainability MLB Medco Leadership Behaviors
Professionals
MMSCFD Million Standard Cubic Feet per Day
IT Information Technology
MoEF Ministry of Environment and Forestry
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MOU Memorandum of Understanding OPF Onshore Process Facility
MPE PT Multidaya Prima Elektrindo ORR Operational Readiness Reviews
MPEP Medco Project Excellence Process OSCT Oil Spill Combat Team
MPES Medco Power East Sulawesi OSRL Oil Spill Response Limited
MPHM Upstream Oil & Gas Security OT Operational Technology
Management (Manajemen Pengamanan
Our Code MedcoEnergi’s Code of Conduct
Hulu Migas)
MPI Medco Power Indonesia P2P Procure-to-Pay
MPMA Medco Project Management Academy PDCA Plan-Do-Check-Adjust
MRPR PT Medco Ratch Power Riau PDO Petroleum Development Oman
MSA Medco Subsurface Academy PDP Personal Data Protection
MSEA Medco Surface Engineering Academy PEIT Petroleum and Energy Institute of
Thailand
MSCI Morgan Stanley Capital International
PEP Politically Exposed Person
MSLDP Medco Senior Leadership Development
PGN Indonesian State-owned Gas Company
Programme
(Perusahaan Gas Negara)
MSM Meranti Sungai Merah
PIRT Home-Based Food Production Permit
MSME Micro, Small, and Medium-sized (Pangan Industri Rumah Tangga)
Enterprise PLN Indonesian State-owned Electricity
MSMS Medco Security Management System Company (Perusahaan Listrik Negara)
MTBL Medco Tanah Bumbu Listrik PMM Permanent Magnet Motor
MTBL Medco Thailand (Bualuang) Ltd PNBP Non-Tax State Revenue (Penerimaan
Negara Bukan Pajak)
MUSRENBANG Development Planning Consultation
POD Plan of Development
Forum (Musyawarah Perencanaan
Pembangunan) Posyandu Integrated Health Services Centre (Pos
MW Megawatt Pelayanan Terpadu)
PPA Power Purchase Agreement
MWH Megawatt-hour
PPKH Forest Area Usage Approval (Persetujuan
MWp Megawatt peak
Penggunaan Kawasan Hutan)
NbS Nature-based Solutions PPP PT Pembangkitan Pusaka Parahiangan
NBIC National Board Inspection Code PPTI Indonesian Tuberculosis Eradication
NCSRE National Centre for Sustainability Association (Perkumpulan Pemberantasan
Reporting - Energy Sector Tuberkulosis Indonesia)
NDC Nationally Determined Contribution PROPER Performance Rating Programme in
Environmental Management
NGO Non-governmental organisation
PSC Production Sharing Contract
O&M Operation & Maintenance
PSE Process Safety Events
OA Operability Assurance
psig Pounds per Square Inch Gauge
OADP Operations Apprentice Development
Programme PSPE Preliminary Survey and Exploration
OCCI Oman Chamber of Commerce and PSSR Pre-Start-Up Safety Review
Industry
PT Limited Liability Company (Perseroan
OCL Operations Competency & Learning Terbatas)
OE Operational Excellence PV Photovoltaic
OEM Original Equipment Manufacturer PWT Produced Water Treatment
OGMP Oil and Gas Methane Partnership QHSE Quality Health Safety and Environment
OHIH Occupational Health Industrial Hygiene QPR Quarterly Performance Review
OHS Occupational Health and Safety RAM Reliability, Availability, and Maintainability
OHSAS Occupational Health and Safety R&S Relations and Security
Assessment Series
RBI Risk-Based Inspection
OJK Financial Services Authority (Otoritas Jasa
Keuangan) RCA Root Cause Analysis
OPAL Oman Society for Petroleum Services REC Renewable Energy Certificate
OPEX Operating Expenditure
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RKL-RPL Environmental Management and TB Tuberculosis
Monitoring Plan (Rencana Pengelolaan
Lingkungan Hidup – Rencana Pemantauan TCFD Task Force on Climate-related Financial
Lingkungan Hidup) Disclosures
RPIA Women and Children Empowerment TCMS Technical Competency Management
House (Rumah Permberdayaan Ibu dan System
Anak)
tCO2e Metric tons of carbon dioxide equivalent
RPJMN National Medium Term Development Plan
TGI PT Transportasi Gas Indonesia
(Rencana Pembangunan Jangka
Menengah Nasional) TII Transparency International Indonesia
S$ Singapore Dollar TJBPS PT Tanjung Jati B Power Services
SAE Standards on Assurance Engagement TLF The Learning Farm
SAFOP Safety and Operability TLV Threshold Limit Value
SCBD Sudirman Central Business District TOE Ton of Oil Equivalent
SCE Safety Critical Elements TOX Thermal Oxidiser
SCEARA Safety Critical Element Abnormal Risk TPC Team Performance Contract
Assessment
TNFD Taskforce on Nature-related Financial
SCM Supply Chain Management Disclosures
SCP Simple Cycle Power Plant TRIR Total Recordable Injury Rate
SDGs Sustainable Development Goals TTX Tabletop Exercise
SEP Stakeholder Engagement Plan TUK Competency Assessment Centre (Tempat
Uji Kompetensi)
SIEW Singapore International Energy Week
UDHR Universal Declaration of Human Rights
SKKL Environmental Feasibility Decree (Surat
Keputusan Kelayakan Lingkungan) UDMC Under‑Deposit Microbial Corrosion
SKK Migas Special Task Force for Upstream Oil & UMP Provincial minimum wage (Upah
Gas Business Activities (Satuan Kerja Minimum Provinsi)
Khusus Pelaksana Kegiatan Usaha Hulu
Minyak dan Gas Bumi) UN United Nations
SME Small and Medium Enterprise UN SDGs United Nations Sustainable Development
Goals
SMKM Safety Management System for the Oil &
Gas Industry (Sistem Manajemen UNEP United Nations Environment Programme
Keselamatan Migas)
UNFCCC United Nations Framework Convention on
SMP Security Management Plan Climate Change
SMS Social Management System UNGC United Nations Global Compact
SoA Statement of Adherence UNGP United Nations Guiding Principles
SOC Security Operations Centre UNODC UN Office on Drugs and Crime
SPE Society of Petroleum Engineers USD US Dollar
SRMC Sustainability and Risk Management VP Vice President
Committee
VPSHR Voluntary Principles on Security and
SROI Social Return on Investment Human Rights
SSB South Sumatra Block WBCSD World Business Council for Sustainable
Development
SSC Shared Service Centre
WBS Whistleblowing System
SSP Shared Socioeconomic Pathway
WBMS Whistleblower Management System
SSR South Sumatra Region
WHB Waste Heat Boiler
STEPS Stated Policies Scenario
WHP Wellhead Platform
STPI Stop TB Partnership Indonesia
WHPB Wellhead Platform B
SWRO Sea Water Reverse Osmosis
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Feedback Form
This Sustainability Report provides an overview of MedcoEnergi’s 2024 sustainability performance. We look forward to receiving
suggestions for improvement from our stakeholders. Please share your feedback and/or comments about this Sustainability Report
by completing this feedback form and returning to us by e-mail, fax, or mail.
Stakeholder Group
Shareholders Employee Partners Government & Regulator
Bank & Investor Community Customer Media
Others, please specify __________________
Please choose the most appropriate answer(s) to the questions below:
Yes No
This report is useful to you
This report describes the Company’s performance in sustainability development
Please rate the following material aspects based on the level of importance according to your view of MedcoEnergi’s sustainability
performance (score 1 = most important to 17 = least important).
• Workplace health, safety, and wellbeing ( )
• Climate Risk and Resilience ( )
• Water ( )
• Asset Integrity & Security ( )
• Human Rights ( )
• Responsible Procurement Practices ( )
• Security Practices ( )
• Climate Mitigation ( )
• Air Quality ( )
• Local Communities ( )
• Stakeholder Engagements ( )
• Talent Attraction, Retention, and Development ( )
• Climate Adaptation ( )
• Effluents and Waste ( )
• Anti-Corruption & Business Ethics ( )
• Policy & Regulatory Environment ( )
• Others, please specify ______________________________________________ ( )
Please provide suggestions/comments for this report:
_________________________________________________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Thank you for your participation. Kindly send this feedback form to the following address:
PT Medco Energi Internasional Tbk
Attn: Investor Relations
The Energy Building 53rd Floor SCBD Lot 11A
Jl. Jend. Sudirman, Jakarta 12190 Indonesia
P. +62-21 2995 3000
F. +62-21 2995 3001
Email: investor.relations@medcoenergi.com
Page 172
PT Medco Energi Internasional Tbk The Energy Building 53rd Floor SCBD Lot 11A Jl. Jend. Sudirman, Jakarta 12190 Indonesia P. +62-21 2995 3000 F. +62-21 2995 3001 www.medcoenergi.com
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PT Axioma Grafis Indonesia First
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Young Global Limited
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Indonesia Stock Exchange
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Sustainability Risks
p.36
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org
Ministry of Finance
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Ministry of Energy and Mineral
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Ministry of Manpower
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Ministry of Law and Human Rights
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Minister of Energy and Minerals
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Committee
p.49
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Availability & Production, Growth, Operational Excellence, and Financial. Moreover,
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PT Deloitte Advis Indonesia
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PT Medco Energi Internasional Tbk’s
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Minister of Indonesia
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Ministry of Energy and Minerals
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Ministry of Commerce
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ESG2025-MEDC.pdf
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