ESG

Indika Energy holds that sustainable growth relies on nurturing both the environment and community ties, alongside the pursuit of new prospects and expansion in low-carbon sectors.

Driving Impact: Our ESG Philosophy

At Indika Energy Group, we take part in energizing Indonesia by fostering economic growth and enhancing the lives of millions. Our environmental, social, and governance (ESG) commitments are an integral part of the way we do business, serving as a guiding principle for the sustainable future we strive to create.

Our ESG drive takes a three-pronged approach: diversify, divest, decarbonize. We continue to diversify into low-carbon businesses and decarbonize our operations to achieve net-zero emissions by 2050.

Environmental Social Governance

Indika Energy has missions to achieve

Net-Zero
To achieve net-zero emissions by 2050
50%
To achieve 50% of our non-coal revenue by 2028

Targets and Commitments to ESG Excellence

We continue to track and assess ESG metrics relevant to Indika Energy’s sustainability goals. In line with our business growth, we have carefully reassessed our ESG targets, expanded our data boundaries to reflect our diversification progress, and developed ESG targets designed to deliver more meaningful impact.

Environmental

Scope 1 and 2 emissions
(Relative to 2020 baseline)

25%

Reduce scope 1 and 2 emissions by 25% in 2025 and by 33% in 2030

33%

Reduce scope 1 and 2 emissions by 33% in 2030

50%

Reduce scope 1 and 2 GHG emissions intensity per revenue by 50% in 2025

55%

Reduce scope 1 and 2 GHG emissions intensity per revenue by 55% in 2030

10%

Reduce scope 1 and 2 GHG emissions intensity per ton coal production by 10% in 2025

25%

Reduce scope 1 and 2 GHG emissions intensity per ton coal production by 25% in 2030

25%

Reduce scope 1 and 2 emissions by 25% in 2025 and by 33% in 2030

33%

Reduce scope 1 and 2 emissions by 33% in 2030

50%

Reduce scope 1 and 2 GHG emissions intensity per revenue by 50% in 2025

55%

Reduce scope 1 and 2 GHG emissions intensity per revenue by 55% in 2030

10%

Reduce scope 1 and 2 GHG emissions intensity per ton coal production by 10% in 2025

25%

Reduce scope 1 and 2 GHG emissions intensity per ton coal production by 25% in 2030

Energy management
(Relative to 2020 baseline)

30%

Increase % renewable energy share in the energy consumption mix to 30% by 2025

35%

Increase % renewable energy share in the energy consumption mix to 35% by 2030

30%

Increase % renewable energy share in the energy consumption mix to 30% by 2025

35%

Increase % renewable energy share in the energy consumption mix to 35% by 2030

Water management
(Relative to 2020 baseline)

30%

Reduce water withdrawal intensity per revenue by 32% by 2030

32%

Reduce water withdrawal intensity per revenue by 32% by 2030

30%

Reduce water withdrawal intensity per revenue by 32% by 2030

32%

Reduce water withdrawal intensity per revenue by 32% by 2030

Waste management
(Relative to 2020 baseline)

40%

Divert 40% of non-hazardous waste from landfill by 2025

45%

Divert 45% of non-hazardous waste from landfill by 2030

40%

Divert 40% of non-hazardous waste from landfill by 2025

45%

Divert 45% of non-hazardous waste from landfill by 2030

Land and biodiversity
(Relative to 2020 baseline)

20%

Increase land reclamation area by 20% by 2025

20%

Increase land reclamation area by 20% by 2025

Social

Local communities

1%

1% EBIT spent on community development every year

1%

1% EBIT spent on community development every year

Health and safety

Zero

Zero fatalities every year for employees

Zero

Zero fatalities every year for contractors

Zero

Zero fatalities every year for employees

Zero

Zero fatalities every year for contractors

Diversity and inclusion 
(Relative to 2020 baseline)

20%

20% women representation in workforce by 2025

25%

25% women representation in workforce by 2030

15%

15% women representation in senior management by 2025

20%

20% women representation in senior management by 2030

20%

20% women representation in workforce by 2025

25%

25% women representation in workforce by 2030

15%

15% women representation in senior management by 2025

20%

20% women representation in senior management by 2030

Governance

Business ethics

80%

80% of employees attend the code of business conduct (COBC) training by 2025

100%

100% of employees attend the code of business conduct (COBC) training by 2030

100%

100% of board members attend code of business conduct (COBC) training by 2025

100%

100% of board members attend code of business conduct (COBC) training by 2030

80%

80% of employees attend the code of business conduct (COBC) training by 2025

100%

100% of employees attend the code of business conduct (COBC) training by 2030

100%

100% of board members attend code of business conduct (COBC) training by 2025

100%

100% of board members attend code of business conduct (COBC) training by 2030

Corporate governance

30%

30% (by weight) of board & senior management evaluation KPIs tied to ESG topics by 2025

30%

30% (by weight) of board & senior management evaluation KPIs tied to ESG topics by 2025

Paving Our Way to Net Zero

At Indika Energy, we have placed the net zero transition at the heart of our business strategy by combining investments in businesses that enable the energy transition with actions to decarbonize our operations and value chains.

To achieve this, we have mapped our carbon footprint across our value chain and business processes to ensure a clear understanding of where to focus our efforts, informing our pathway to net zero.

GHG Emisions in 2025

Scope 1&2 GHG Emissions
(kt CO2eq)

839

2020 (baseline) : 1,203

Scope 1&2 GHG Emissions Intensity
(kt CO2eq / ton coal production)

0.027

2020 (baseline) : 0.033

Scope 1&2 GHG Emission Projections (in kt CO2eq)

2020-2023

Building Foundation

Supporting energy transition

  • Investing in low-carbon economy
  • Divesting coal-related asset

Partnering to reduce the carbon footprint accross our value chains

  • Measuring scope 3 emissions
  • Developing carbon reduction program with contractors

2025-2030

Strengthening Sustainable Practices

  • Reducing carbon footprint of our operations
  • Implementing digital technology in mining operations 
  • Investing in EVs and electrification of equipment
  • Installing solar photovoltaic and battery storage system
  • Adopting the use of B35 diesel
  • Conducting reclamation

2025-2030

Accelerating Growth

We cater the nation’s strategic necessities to enable sustainable development while taking care for the  environment and making positive difference to the society

By 2050

Our Sustainable Impact: 2025 Highlights

In 2025, we advanced our ESG performance, with notable reductions in carbon emissions, enhanced diversity, and inclusion efforts, and strengthened governance frameworks. Increased community engagement further underscored our commitment to sustainable practices. This progress reflects a broader shift towards aligning financial objectives with societal and environmental responsibilities.

Environmental

View Details

839

Scope 1 and 2 GHG emissions

(in kilo tonCO2eq)

Reduced by 30.29% from 2020 baseline

5,384.24

Reclamation area

(in hectare)

Increased by 18.80% from 2020 baseline

73.01%

Non-hazardous waste diverted from landfill

(in %)

Diverted 73.01% non-hazardous waste from landfill in 2025

1,535.97

Water withdrawal

(in megaliters)

Reduced by 24.3% from last year

0.76

Water withdrawal intensity per revenue

(in megaliters/ US$ million revenue)

Reduced by 65.15% from last year

38.04 %

Renewable energy share (in %)

(in %)

38.04% renewable energy share in 2025 energy consumption mix

12.95

Energy consumption

(in million gigajoule)

Reduced energy consumption by 5.56% from last year

413

Scope 1 and 2 GHG emissions intensity per revenue

(in tonCO2eq/ USD million revenue)

Increased by 47.84% from 2020 baseline

0.027

Scope 1 and 2 GHG emissions intensity per ton coal production

in tonCO2eq/ ton coal production

Reduced by 16.67% from 2020 baseline

Social

View Details

3,860+

Employment opportunities

1,030+

Local hires across Indika Energy Group

16.08%

Women representation in senior management

32 of our 199 senior management positions are held by women, reflecting continued progress in leadership diversity

20.30%

Women representation in workforce

874 of our 4,306 employees are women, reflecting continued progress in gender diversity.

255,100+

Lives have been impacted by community development initiatives

2

Contractor fatalities at managed operations (in lives)

We are saddened by these incidents and strengthening our efforts to prevent work-related fatalities across our business.

0

Employee fatalities at managed operations (in lives)

Employee LTIR was 0.00 and TRIR was 0.27, reflecting continued focus on safety performance across operations.

3.83%

Community investment

In accordance with our target to allocate 1% of our annual EBIT towards community investments

Governance

View Details

86.58 %

3,728 employees attended COBC training in 2025, strengthening business ethics and compliance across the organization.

100%

All 106 of our Board members attended COBC training in 2025, demonstrating full commitment to upholding business ethics and governance standards.

From Past to Present: Our Story

Impact Grant Program, Empowering Youth to Build Positive Peace
Indika Foundation strengthens Indonesia’s future by empowering youth through a collaborative ecosystem designed to
Read More
Destana Ulusalu, Building Resilience from Risk to Readiness
Located in Ulusalu Village, Luwu Regency—where 39.7% of the area is highly prone to landslides and
Read More
Nurturing Healthy Beginnings: Preventing Stunting Through Early Action
Supporting healthy growth from the earliest stages of life is an important part of our community engagement efforts.
Read More
From Patchouli to Prosperity – Strengthening Livelihoods within the Community in Purbalingga
Indonesia produces approximately 90% of the world’s patchouli oil supply, contributing up to USD 150 million in
Read More

Our External Commitments

We share the understanding of the importance that the SDGs hold for the betterment of the nation and its people. Each elemen of our work impacts one or more of the SDGs with a special focus on those we believe align with our strategic priorities.

Indika Energy pledges support for the United Nations Global Compact's Ten Principles on human rights, labor, environment, and anti-corruption, aligning with our own commitments. We integrate these principles into our strategy, culture, daily operations, and actively engage in collaborative projects to advance the UN's broader development goals, especially the Sustainable Development Goals.

In response to growing demands for sustainability in the energy sector, we prioritize accountability and transparency for all stakeholders. Committed to fostering a prosperous society and sustainable planet, we pledge to integrate the World Economic Forum’s Stakeholder Capitalism Metrics (SCM) into our ESG reporting, enhancing our commitment to sustainable value creation.

As a member of the Indonesia Business Council for Sustainable Development (IBCSD), Indika Energy joins diverse industry leaders in advancing sustainable development aligned with Indonesia's progress on the SDGs. Through this platform, we share best practices, shape the national sustainability dialogue, and advocate for industry-wide adoption of sustainable practices to foster consensus and progress.

Indika Energy proudly stands as the sole Indonesian company in the Powering Past Coal Alliance (PPCA), signaling our strong commitment to a low-carbon future. The PPCA, announced at the COP26 summit in 2021, unites governments, private sectors, and organizations in phasing out coal and advancing clean energy. Our goal is to derive most of our revenue from non-coal sources by 2028 and achieve net-zero greenhouse gas emissions by 2050 or sooner, showcasing our dedication to sustainable practices.