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 help energizing Indonesia, 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 applicable to Indika Energy’s sustainability goals. In 2023, we reassessed our ESG baseline and targets, expanded our data boundaries to be in line with our diversification updates, and coming up with ESG targets that will have a more meaningful impact.

Environmental

Scope 1 and 2 emissions
(Relative to 2020 baseline)

25%

Reduce scope 1 and 2 emissions by 25% in 2025

33%

Reduce scope 1 and 2 emissions by 33% in 2030

50%

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

55%

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

10%

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

25%

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

25%

Reduce scope 1 and 2 emissions by 25% in 2025

33%

Reduce scope 1 and 2 emissions by 33% in 2030

50%

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

55%

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

10%

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

25%

Reduce scope 1 and 2 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 30% by 2025

32%

Reduce water withdrawal intensity per revenue by 32% by 2030

30%

Reduce water withdrawal intensity per revenue by 30% by 2025

32%

Reduce water withdrawal intensity per revenue by 32% by 2030

Waste management
(Relative to 2020 baseline)

40%

Divert 40% of waste from landfill by 2025

45%

Divert 45% of waste from landfill by 2030

40%

Divert 40% of waste from landfill by 2025

45%

Divert 45% of 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 and contractors

Zero

Zero fatalities every year for employees and contractors

Diversity and inclusion 
(Relative to 2020 baseline)

20%

20% women in workforce by 2025

25%

25% women in workforce by 2030

15%

15% women in senior management by 2025

20%

20% women in senior management by 2030

20%

20% women in workforce by 2025

25%

25% women in workforce by 2030

15%

15% women in senior management by 2025

20%

20% women in senior management by 2030

Governance

Business ethics

80%

80% of employees attend code of business conduct training by 2025

100%

100% of employees to attend code of business conduct training by 2030

100%

100% of board members to attend code of business conduct training by 2025

100%

100% of board members to attend code of business conduct training by 2030

80%

80% of employees attend code of business conduct training by 2025

100%

100% of employees to attend code of business conduct training by 2030

100%

100% of board members to attend code of business conduct training by 2025

100%

100% of board members to attend code of business conduct 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 put the net zero transition at the heart of our business strategy: combining investments in businesses that enable the energy transition with actions to decarbonize our operations and value chains.

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

Emisions in 2024

Scope 1&2 GHG Emissions
(kt CO2eq)

915

2020 (baseline) : 1,203


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

0.029

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: 2024 Highlights

In 2024, 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

914.5

Scope 1 and 2 GHG emissions

(in kilo tonCO2eq)

Reduced by 24.0% from 2020 baseline

5,234

Reclamation area

(in hectare)

Increased land reclamation area by 15.49% from 2020 baseline

3,247.5

Non-hazardous waste diverted from landfill

(in tons)

Diverted 58.74% of non-hazardous waste from landfill, an increase from 2020 baseline

2,029.7

Water withdrawal

(in megaliters)

Reduced by 61.78% from 2020 baseline

0.83

Water withdrawal intensity per revenue

(in megaliters/ US$ million revenue)

Reduced by 10.80% from 2020 baseline

13.7

Energy consumption

(in million gigajoule)

34.02% renewable energy share in the energy consumption mix

374

Scope 1 and 2 GHG emissions intensity per revenue

(in tons/ US$ million revenue)

Reduced by 52.84% from 2020 baseline

0.029

Scope 1 and 2 GHG emissions intensity per ton coal production

in tonCO2eq/ ton coal production

Reduced by 13.58% from 2020 baseline

Social

View Details

3,860+

Employment opportunities

1,030+

Local hires across Indika Energy Group

11.19%

Women representation in senior management

20.19%

Women representation in workforce

394,100+

Lives have been impacted by community development initiatives

0

Contractor fatalities

1

Employee fatalities

2.97%

Community investment

In accordance with our target to allocate 1.0% of our annual EBIT towards community investments.

Governance

View Details

100%

100% or 3,864 employees have undergone the code of business conduct training in 2024

96.7%

In 2024, 96.7% or 88 of board members completed training on the code of business conduct

From Past to Present: Our Story

IMPACT Program achieves 100% of mangrove restoration target in Paser
The IMPACT program (Indika Energy Mangrove Program in Action), began with a simple but powerful belief: that restoring
Read More
Indika Energy Sustainability Competition 2025
In celebration of Indika Energy’s 25th anniversary, we launched the Indika Energy Group Sustainability Competition
Read More
Indika Energy Sustainability Challenge 2025
200 Posts, 7 Days, 1 Earth As part of Indika Energy’s 25th anniversary, we introduced the Sustainability Challenge
Read More
Eco-Innovation in Mining: EV Dump Truck Trials at Kideco
As part of our commitment to sustainable mining practices, Indika Energy is leading the transition toward cleaner
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 2025 and achieve net-zero greenhouse gas emissions by 2050 or sooner, showcasing our dedication to sustainable practices.