PT Indika Energy Tbk : Sustainability Report 2021

Progressing

Towards Sustainability

2021 SUSTAINABILITY REPORT

PT Indika Energy Tbk.

2021 Sustainability Report

Progressing Towards

Sustainability

Cover Story

Tandarayan Arboretum is a conservation area developed by Kideco - spanning 105 hectares. It functions as a biodiversity conservation area, a feeding habitat for animals, and a site to collect natural seeds around the mining area. Its ecological functions include acting as a water catchment area or buffer, and in the future it is also expected to serve as a cultivation area. Assessments at our Tandarayan Arboretum reclamation area, near our Roto Samurangau site, show that the level of biodiversity in the reclaimed area is nearly as high as in surrounding natural forests. Studies have shown the presence here of dozens of native species, many of them endangered by habitat loss due to the expansion of agricultural plantations and logging operations. One of the main objectives of this conservation area is to increase the diversity of mammal species, avifauna, herpeto fauna and insect species.

Indika Energy's journey is one that began about five decades ago with the simple goal of providing the power to help Indonesia grow. Over the years, we have remained faithful to this goal, in the process helping drive not just economic growth, but also human empowerment and well-being for individuals and communities throughout Indonesia.

In recent years, we have taken the pioneering position that this commitment to national and human development must also be sustainable if it is to be meaningful. Today, our goal remains the same, but our path to get there is one that is guided by our commitment to our

Environmental, Social and Governance (ESG) principles and values.

Indika Energy has set the bold but necessary target of ensuring revenue from non-coal streams accounts for at least 50% of the Group's business by 2025. This is a milestone toward our longer-term aim of achieving net-zero greenhouse gas emissions by 2050 or sooner.

These are commitments that we have made not just as a company, but as a responsible global citizen and participant in sustainability initiatives ranging from the United Nations Global Compact to the Indonesia Business Council for Sustainable Development (IBCSD) to the Powering Past Coal Alliance (PPCA).

In 2021, with the cementing of our new purpose of "Energizing Indonesia for a Sustainable Future," we embarked on the latest leg of our journey - one that, we hope, will leave a brighter, greener, and fairer world for future generations of Indonesians.

INDIKA ENERGY 2021 SUSTAINABILITY REPORT

Contents page

Indika Energy at a glance

Performance dashboard Economic impact

A letter to all our stakeholders

Sustainability approach, strategy and ESG targets Risk and mitigation

Stakeholder engagement Sustainability governance About this Sustainability Report Our materiality assessment

Our external commitments to UN SDGs, WEF SCM, UNGC, IBCSD, and PPCA

Environmental

Energy and emissions Water and effluents Waste management Biodiversity and land use

Social

Our people

Occupational health and safety Community relations

Human rights and grievance mechanism Tolerance

Governance

Corporate governance Business ethics

BOC BOD statement Assurance statement Glossary

Index on GRI, WEF SCM, and UNGC Contact us