ESG

PERFORMANCE
REPORT
2023
 ESG Performance Report 2023

ESG PERFORMANCE
REPORT 2023

DIRECTOR’S
STATEMENT

We are proud to share PLN’s Environmental, Social, and For 2024, we aim to maintain this momentum with a
Governance (ESG) Performance Report for 2023, a targeted ratio of 32% for women in our nominated talent
testament to our deep commitment to embedding the pool.
ESG principles into all aspects of our business operations.
This report reflects our commitment to fostering a Governance remains a cornerstone of our operations. We
sustainable and prosperous future for Indonesia. continued to strengthen our corporate governance
framework to ensure transparency, accountability, and
The year 2023 marked a period of significant ethical business conduct. Our governance practices
transformation for PLN. We instigated a number of have been designed to foster trust with our stakeholders,
initiatives to enhance our sustainability performance including customers, employees, investors, and the
across many dimensions. Our environmental e orts were communities we serve.
focused on reducing greenhouse gas emissions,
increasing the use of renewable energy sources, and In conclusion, the 2023 ESG Performance Report reflects
improving energy e iciency. We are proud to report our our unwavering commitment to sustainability. We are
substantial progress in these areas, demonstrating our dedicated to advancing our ESG goals and creating long-
dedication to mitigating climate change and promoting a term value for all of our stakeholders. Looking ahead, PLN
cleaner, greener future. remains committed to driving positive change and
contributing to a sustainable and prosperous Indonesia.
On the social front, we took significant strides to fostering
a diverse and inclusive workplace. Talent retention,
especially among female employees, was a priority. Our
Talent Pool program for female employees not only aimed Jakarta, September 30, 2024
to nurture and develop their skills but also aligns with our
Women in Management Position metric. By selecting and
grooming talented women from this pool, we are
preparing them for leadership roles, ensuring gender Evy Haryadi
diversity at the highest levels of our organization. In 2023, Director of Transmission and System Planning
we surpassed our target for nominated female talent,
achieving a 32.35% proportion against the target of 19%.

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Sustainability-Related Financial Disclosure
 ESG Performance Report 2023

ESG PERFORMANCE
REPORT 2023

PREFACE
The Republic of Indonesia has o icially declared its health and safety of its workers and vendors, PLN strictly
commitment to achieving the Sustainable Development adheres to ISO 45001 standards.
Goals (SDGs) and attaining net-zero emissions (NZE) by
2060. At the national level, this commitment has been PLN also acknowledges that the successful imple-
operationalized through the Enhanced Nationally mentation of these commitments requires robust
Determined Contributions (E-NDC), where in Indonesia internal controls governing all activities within the
has set a target of reducing emissions by 31.89% organization. Therefore, PLN is committed to upholding
unconditionally relative to business as usual (an increase Good Corporate Governance principles by implementing
from the previous target of 29%) and by 43.20% policies and procedures governing leadership, bribery,
conditionally with international assistance (an increase political contributions, and other relevant areas.
from the previous target of 41%).
This document serves as the latest iteration of PLN's ESG
As the primary driver of Indonesia's energy transition, Performance Report, aimed at providing current
PLN has developed a comprehensive roadmap for information and insights, while accurately reflecting
transitioning from high-carbon power generation to PLN's ongoing e orts to achieving its ESG goals and its
renewable energy sources. This roadmap is divided into commitment to continuously updating and improving its
short-term goals (2021-2030) and long-term goals (2031- progress toward environmental, social, and corporate
2060) and is being executed through eight lighthouse governance objectives.
initiatives, which encompass three main categories:
decarbonizing coal and gas plants, expanding renewable
capacity and its supporting systems, and developing a Kamia Handayani
green ecosystem. Executive Vice President
Energy Transition and Sustainability
PLN recognizes that sustainable growth must prioritize
the ESG aspects. Under the social umbrella, PLN is
committed to improving the lives of its employees and
local communities through CSR initiatives and
Community Development Programs. To ensure the

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 ESG Performance Report 2023

ESG PERFORMANCE
REPORT 2023

TABLE OF
ENVIRONMENTAL MANAGEMENT
Governance 41
Company's Commitment 41

CONTENTS
Executive Responsibility 42
Strategy 43
Environmental Management System 43
Non-Hazardous Waste Management 46
Hazardous Waste Management 47
E luent/Water Discharge Management 48
DIRECTOR’S STATEMENT i Non-GHG Air Emission Management 49
Metric & Target 50
PREFACE ii Environmental Management System 50
Non-Hazardous Waste Management 51
TABLE OF CONTENT 1 Hazardous Waste Management 54
LIST OF FIGURES E luent/Water Discharge Management 54
3
Non-GHG Air Emission Management 55
LIST OF TABLES 4 Risk Management 57

EXECUTIVE SUMMARY 5 RESOURCE MANAGEMENT

ESG MATERIAL TOPICS 7 Governance 58
Company's Commitment 58
LIST OF ABBREVIATIONS 9 Executive Responsibility 58
Strategy 60
SUSTAINABILITY COMMITTEE 11 Energy E iciency Programs 60
Water Management Programs 60
RISK MANAGEMENT 17 Water Risk Management 61
Metric & Target 62
Energy 62
ENVIRONMENT Water 64
Risk Management 67
CLIMATE CHANGE MANAGEMENT
Governance 24 NATURE MANAGEMENT
Company’s Commitment 24
Governance 68
Executive Responsibility 26
Company's Commitment 68
Strategy 27
Executive Responsibility 68
GHG Emission Reduction Programs 27
Strategy 70
Net Zero Emission Scenario 30
Biodiversity Identification and Management Plans for
Scope GHG Reporting 31
Priority Areas 70
Metric & Target 32
Best Practice of Mitigation Hierarchy 70
GHG Emission Reduction Target 32
Reforestation and Land Rehabilitation 71
Carbon Emission and Intensity 32
Engagement With Local Communities or Stakeholders
Carbon Emission and Intensity of Generation 35
Regarding Nature Management 71
GHG Emisisons Management, Monitoring and
Systematic Consideration of Local Threats to
Measurement 37
Biodiversity 72
Risk Management 38
Metric & Target 73
GHG Risk Management 38
Biodiversity and Land Rehabilitation 73
Physical Climate Risk Management 38
Reporting on Biodiversity and Land Rehabilitation 74
Identification of Physical and Transition
Risk Management 75
Climate Risks 38

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 ESG Performance Report 2023

SOCIAL Organization Capital Readiness (OCR)

Program Implementation 96
The Impact of ESG Performance on
COMMUNITY RELATIONS
Remuneration 96
Governance 77 Metric & Target 97
Company's Commitment 77 Human Capital and Organization Capital
Executive Responsibility 77 Readiness 97
Strategy 79 Risk Management 98
Community Development Program 79
Emergency Response Program 80
Community Involvement Program 80 GENDER EQUALITY, DISABILITY, AND SOCIAL
INCLUSION (GEDSI)
Metric & Target 82
Community Development Implementation 82 Governance 100
Access to Basic Service 82 Company's Commitment 100
Customer Eco-E iciency Program 83 Executive Responsibility 100
Risk Management 84 Strategy 101
Diversity Programs 101
Srikandi Programs 101
OCCUPATIONAL HEALTH & SAFETY Women Talent Retention 101
Metric & Target 102
Governance 86
Employee Diversity Program 102
Company's Commitment 86
Risk Management 104
Executive Responsibility 87
Strategy 88
Implementation of ISO 45001-2018 and OHS
Management System 88
Contractor Safety Management System (CSMC) 88
GOVERNANCE
Maturity Level of OHS Management 89
Moonshot Transformation Program to Achieve PRODUCT GOVERNANCE
Zero Accident Target 89 Governance 105
Development of Safety Culture 89 Company's Commitment 105
Establishing the Standards Related to the Executive Responsibility 105
Implementation of Safety in PLN’s Standards 89 Strategy 107
Health & Safety Certifications 89 Emergency Response Program 107
Reviewing and Updating the Company Cybersecurity Program 107
Regulations for Corporate OHS Management 89 Procurement 109
Performance Monitoring and Measurement 90 Asset Management 110
Metric & Target 91 Metric & Target 115
OHS Management System Performance 91 Quality Monitoring System 115
CSMS Performance 91 Implementation and Certification of ISO 27001 115
Risk Management 92 Transmission Loss Rate 115
Vendor Evaluation 116
Risk Management 117
HUMAN CAPITAL MANAGEMENT
Governance 93 BUSINESS ETHICS
Company's Commitment 93
Executive Responsibility 94 Governance 119
Strategy 95 Company's Commitment 119
PLN Human Resource Management 95 Executive Responsibility 119
Respectful Workplace Policy 95 Strategy 120
Freedom of Association 95 Metric & Target 122
Discrimination Policy (part of Respectful Risk Management 123
Workplace Policy) 95
Human Capital Readiness (HCR) and FUTURE PLAN 124

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 ESG Performance Report 2023

LIST OF
FIGURES
Figure 1 PLN Sustainability Commi ee Structure 11
Figure 2 PLN's President Director Received the CEO of the Year and the Best ESG Campaign Awards 14
Figure 3 PLN's President Director Received Green Leadership Award 14
Figure 4 PLN's Director of Finance, who is also Chairwoman of Srikandi PLN with local cra swoman
during Srikandi PLN Social Ac on Event 15
Figure 5 First Sustainability War Room on October 12, 2023 15
Figure 6 PLN President Director delivered a speech on Sustainability Day 2023 15
Figure 7 PLN's President Director and PLN's Director of Finance who is also the Chairwoman of
Srikandi PLN launched the Srikandi Pocket Book on Sustainability Day 2023 16
Figure 8 Three Lines of Defense Strategy 17
Figure 9 Risk Management Process 17
Figure 10 PLN Risk Taxonomy 18
Figure I.1 PLN Climate Change Governance Framework 25
Figure I.2 Energy Transi on Pillars 27
Figure I.3 PLN signed MoU with Karbon Korea Co., Ltd 28
Figure I.4 Decarboniza on Targets 2030 – 2060 30
Figure I.5 The BAU Scenario Compared to ARED 31
Figure I.6 Carbon Intensity based on Electricity Produc on 34
Figure I.7 Carbon Intensity Trend (Scope 1+Scope 2) based on Revenue 34
Figure I.8 Carbon Intensity of Genera on based on Electricity Produc on 36
Figure I.9 Carbon Intensity Trend of Genera on based on Revenue 36
Figure III.1 Water Risk Management Governance Structure 59
Figure IV.1 PLN and the DKI Jakarta Provincial Government Conducted a Tree-Plan ng Ac on on
the Kalideres Riverbanks 71
Figure IV.2 PLN Conducted the KUAT MANGROVE Program in Collabora on with Baluran Na onal Park 72
Figure V.1 Stakeholder Mapping Diagram 81
Figure VII.1 Human Capital Readiness Performance (HCR) 97
Figure VII.2 Organiza on Capital Readiness Performance (OCR) 97
Figure VIII.1 Employee Diversity Based on Gender 102
Figure IX. 1 PLN Taruna Team Structure 106
Figure IX. 2 Asset Management Six Box Model 110
Figure IX. 3 Alignment of the 39 Asset Management Landscape Subject with The Six Subject Group 111
Figure IX. 4 PLN's Asset Management Roadmap 111
Figure IX. 5 Asset Management System Alignment 113
Figure X. 1 Compliance Management Strategy 120

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 ESG Performance Report 2023

LIST OF TABLES
Table 1 Material Topics in the 2023 T able III. 6 Water Consumed by Source 65
Sustainability Report 7 Table III. 7 Water Intensity 65
Table 2 Quantitative Impact Risk Level 18 Table III. 8 Recycled Water Programs 66
Table 3 Qualitative Risk Level 19 Table III. 9 Quantitative Risk Mitigation of
Table 4 Probability Risk Level 21 Resource Management 67
Table 5 Risk Appetite 22 Table III. 10 Qualitative Risk Mitigation of
Table 6 Summary of the Significant Risks Resource Management 67
for Each ESG Aspect 23 Table IV. 1 Number of Flora and Fauna
Table I. 1 Target and Performance for Species 73
Decarbonization Program 2023 32 Table IV. 2 PLN’s Performance in Land
Table I.2 Total Emission based on Scope 32 Rehabilitation 73
Table I.3 Emission Intensity based on Table IV. 3 Quantitative Risk Mitigation of
Electricity Production 33 Nature Management 75
Table I.4 Emission Intensity based on Revenue 34 Table IV. 4 Qualitative Risk Mitigation of
Table I.5 Carbon Emission based on Generation 35 Nature Management 76
Table I.6 Carbon Intensity Generation Table V. 1 Electrification Ratio 82
based on Electricity Production 35 Table V. 2 Quantitative Risk Mitigation of
Table I.7 Carbon Intensity Generation Trend Community Relations 84
based on Revenue 35 Table V. 3 Qualitative Risk Mitigation of
Table I.8 Increasing Emissions Compared to Community Relations 85
Increasing Production 37 Table VI. 1 Quantitative Risk Management
Table I.9 PLN's Physical Climate Risk for NZE of OHS 92
2060 Target 39 Table VI. 2 Qualitative Risk Management
Table I.10 PLN’s Transition Climate Risk for of OHS 92
NZE 2060 Target 40 Table VII. 1 Quantitative Risk Mitigation
Table II. 1 PLN units with ISO 14001-2015 of Human Capital Management 98
certification 50 Table VII. 2 Qualitative Risk Mitigation of Human
Table II. 2 PLN's Performance in Non-Hazardous Capital Management 99
Solid Waste Management 51 Table VIII. 1 Diversity in Leadership based on
Table II. 3 PLN's Waste Generation by Type 51 Gender 102
Table II. 4 PLN's Performance in FABA Waste Table VIII. 2 Quantitative Risk Mitigation
Management 52 of GEDSI 104
Table II. 5 FABA Management Targets 2022 - 2031 53 Table VIII. 3 Qualitative Risk Mitigation
Table II. 6 PLN's Performance in Hazardous of GEDSI 104
Waste Management 54 Table IX. 1 Impact of Cyber Security Awareness 108
Table II. 7 Volume of Treated E luent and Table IX. 2 Targets and Achievement of
Discharged Destination 54 SAIDI and SAIFI 116
Table II. 8 Non-GHG Parameters 55 Table IX. 3 Vendor Performance Evaluation 116
Table II. 9 Non-GHG Emissions 55 Table IX. 4 Quantitative Risk Mitigation
Table II. 10 Non-GHG Emission Reduction of Product Governance 117
Targets 2021 - 2030 56 Table IX. 5 Qualitative Risk Mitigation of
Table II. 11 Risk Mitigation of Environmental Product Governance 118
Management 57 Table X. 1 Awareness Integrity Completion
Table III. 1 Volume of Energy Source Usage 62 Rate 122
Table III. 2 Energy Sources for Electricity Table X. 2 Mandatory e-learning Materials 122
Production 62 Table X. 3 Quantitative Risk Mitigation
Table III. 3 Electricity Production 63 of Business Ethics 123
Table III. 4 Energy Intensity 63
Table III. 5 Volume of Water Withdrawn by Source 64

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 ESG Performance Report 2023

EXECUTIVE
SUMMARY
time, PLN is actively pursuing energy transition, in line
with its aspiration to achieve Net-Zero Emissions by
2060.

However, under its current business-as-usual

scenario, PLN's emissions are projected to increase
by 50% by 2030, largely due to its reliance on coal,
which accounts for about 60% of its electricity
generation. Recognizing its critical role in emissions
reduction, PLN is focused not only on energy e ici-
ency but also on accelerating the adoption of
renewable energy and implementing technologies to
reduce emissions from fossil fuels. This includes
constructing solar, hydroelectric, and biomass power
plants, as well as deploying ultra-supercritical coal-
fired power plants (CFPP), co-firing at existing CFPPs,
and converting gas-fired power plants (GFPP) to
combined cycle power plants (CCPP).
This report initially adopts the International Financial
Reporting Standards (IFRS) framework, o ering a Environmental Management is another critical aspect
comprehensive overview of PLN's performance on key covered in this report, showcasing PLN's robust prac-
ESG issues. As an Indonesia's state-owned electricity tices aimed at minimizing environmental impact. The
company, PLN is committed to transparency, and the Company has adopted sustainable practices and is
reports will be available on our website: pln.co.id. actively involved in environmental conservation.

This report focuses on 10 main ESG issues as priority Resource Management is a key area where PLN strives
topics, covering Climate Change Management, to optimize the use of essential resources like water
Environmental Management, Resource Management, and energy. Through e icient utilization and conser-
Nature Management, Community Relations, Occupa- vation initiatives, PLN is committed to sustainable
tional Health and Safety, Human Capital Manage- resource management.
ment, Gender Equality, Disabilities, and Social
Inclusion, Product Governance, and Business Ethics. Nature Management is also a priority, detailing PLN's
e orts to minimize the impact of its operations on land
For Climate Change Management, PLN has instigated use and biodiversity. The Company adheres to
various initiatives to reduce its carbon footprint and environmental regulations and supports biodiversity
mitigate the e ects of climate change. This report conservation initiatives.
highlights PLN's commitment to expanding its
renewable energy portfolio and reducing its green- Community Relations is a crucial aspect for PLN. This
house gas emissions. Specifically, PLN supports the report specifies the Company's endeavors to engage
national E-NDC target in the energy sector, which with local communities and to ensure a positive
aims for a 358 million tons CO2 equivalent reduction, impact on their well-being. PLN actively collaborates
with PLN's potential contribution estimated at 127 with communities in its operational areas, addressing
million tons. A key initiative for achieving this their concerns and supporting local development
reduction is improving energy e iciency. At the same initiatives.

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 ESG Performance Report 2023

Occupational Health and Safety is a top priority at PLN, where we emphasize the Company's commitment to
establishing a secure and beneficial work environment for its employees. PLN has put in place comprehensive
safety measures and programs to prevent accidents and guarantee the welfare of its personnel.

Human Capital Management highlights PLN's focus on attracting, developing, and retaining a diverse and talented
workforce. The information underscores PLN's commitment to employee development, fair compensation, and
career advancement opportunities.

Gender Equality, Disabilities, and Social Inclusion are important focus areas for PLN. This report highlights the
Company's e orts to foster gender equality, inclusivity, and the rights of individuals with disabilities. PLN
proactively promotes diversity and social inclusion within its workforce and operations.

Product Governance refers to the responsible and ethical management of PLN's o erings. Details of PLN's e orts to
ensure the safety and reliability of its products and services shows our dedication to customer satisfaction.

Business Ethics is an area in which PLN shows its dedication to integrity and transparency. We describe PLN's
commitment to ethical business practices, such as anti-corruption measures and promoting fair competition.

In conclusion, the PLN ESG Performance Report explains the Company's performance in the 10 key ESG priority
issues. PLN is committed to sustainability practices, community engagement, and ethical business conduct, as it
works to address environmental challenges, ensure employee safety and well-being, and support for community
development.

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 ESG Performance Report 2023

ESG MATERIAL TOPICS

The ESG material topics reflect the material topics in the 2023 sustainability report. Hence, The ESG material topics
are addressed in the both the ESG and the Sustainability report

Table 1 Material Topics in the 2023 Sustainability Report

Material Topics Description

Environmental
Our role in supporting the number, genetic variability and variety of species
Nature management
essential to global and bioregional ecosystem resilience

Reducing our own contribution to climate change, while financing and

Climate Change
facilitating projects that accelerate the transition to a low-carbon economy

Enacting environmental policies and practices that support the fair treatment
Environmental Justice
and involvement of people of all races, national origins and income levels

Reducing direct impacts by managing energy use, water consumption,

Operational Footprint
recycling, waste and green building design

Products and Services with

Providing products and services that drive more equity in society and that
Environmental or Social
protect the environment
Benefits

Social
Enabling greater cohesion with community stakeholders through public-
Community Investment private partnerships, monetary or in-kind donations, volunteer time or
employee fundraising / match schemes
Creating workspaces that promote employee wellness and engaging
Employee Health and
employees in our e ort to maintain a culture of safety, sustainability, and
Well-Being
wellness

Enhancing our e orts to promote equal opportunities for all people and
Human Rights
supporting a culture of diversity, equity & inclusion in the workplace

Talent Attraction, Retention Adopting an approach to recruiting, hiring, developing and retaining
and Development employees to create positive working conditions so that our employees can
thrive
Workforce Diversity,
Respecting the basic rights and freedoms of clients, customers, employees,
Inclusion and Equal
suppliers and Indigenous communities in all our activities
Opportunity

Implementing policies and programs that promote equal opportunity and

Racial Equity/Racial Justice
treatment for people of all races and/or ethnicities

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 ESG Performance Report 2023

Material Topics Description

Governance
Following our internal policies including those pertaining to anti-corruption,
Business Ethics bribery and anti-competitive behavior; complying with laws; and maintaining
transparency concerning political engagement
Creating, developing and deploying a business model that will address
Business Model Resilience significant challenges such as natural disasters, pandemics and global
climate change

Data Security/Financial Executing policies, procedures and programs designed to safeguard the
Product Safety privacy of information shared by employees, customers, and clients

Aligning with stakeholder interests with consideration for environmental and

ESG Governance
social impacts

Problem-solving with clients, partnering with experts and fostering an

Innovation and Digitization environment that values experimentation and technological advancements

Public policies that support the interests of our company, clients, share-
Public Policy and Regulation
holders and employees in the countries and regions where we operate

Actively exchanging input, insights, expertise, and perspectives with a wide

Stakeholder Engagement
array of stakeholders as we pursue our sustainability objectives

Navigating an evolving risk landscape to make responsible decisions and to

Systemic Risk Management serve the long-term interests of our clients and the communities in which
they operate
Protecting the confidentiality of our clients' information, while disclosing
Transparency and Trust information to stakeholders that demonstrates our accountability and
credibility

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 ESG Performance Report 2023

LIST OF ABBREVIATIONS
ACN Accounting DPP Diesel Power Plant
ADB Asian Development Bank DPS Distribution Planning Strategic
AKHLAK Amanah, Kompeten, Harmonis, Loyal, Adaptif, DRKPL Dokumen Ringkasan Kinerja Pengelolaan
Kolaboratif (Trustworthy, Competent, Lingkungan (Environmental Management
Harmonious, Loyal, Adaptive, Collaborative). Performance Summary Document)
ARED Accelerated Renewable Energy Development E-NDC Enhanced Nationally Determined Contribution
AVM Asset Valuation Management ECS Enterprise Sales and Customer Service
BAU Business as Usual EIA Environmental Impact Assessment
BCMS Business Continuity Management System ESIA Environmental and Social Impact Assessment
BESS Battery Energy Storage System ESG Environmental, Social, Governance
BMP Biodiversity Management Plan ESMS Environment and Social Management Systems
BOC Board of Commissioners EPP Engineering and Procurement Planning
BOD Board of Directors ERP Emergency Response Program
BUD Budget ESL Electricity System Planning
CBI Corporate Business Development and ESP Electrostatic Precipitator
Investment ETS Energy Transition and Sustainability
CCPP Combined Cycle Power Plant EVP Executive Vice President
CCS Carbon Capture and Storage FABA Fly Ash & Bottom Ash
CCT Clean Coal Technology GAP General A airs and Property Assets
CCUS Carbon Capture, Utilization and Storage GEPP Gas-Engine Power Plant
CEMS Continuous Emissions Monitoring System GHG Greenhouse Gas
CES Customer Experience and Excellence GHP Green Hydrogen Plant
Services GIP Generation and IPP Procurement
CFPP Coal-Fired Power Plant GOI Generation Operation and Independent Power
CGN Construction, Generation, and NRE Risk Producer
Management GFPP Gas-Fired Power Plant
CIA Chief of Internal Audit GFMAM Global Forum on Maintenance and Asset
CID Community Involvement Development Management
CLB Corporation and Legal Business Partner GPP Geothermal Power Plant
CMA Commercial and Marketing GSP Generation Strategic Planning
COC Corporate Communication and CSR GTM Geothermal
COF Corporate Finance HCMS Human Capital Management System
CORSEC Corporate Secretariat HCS Human Capital Services
CPC Corporate Performance Control HCR Human Capital Readiness
CPD Commercial Product Development HEPP Hydroelectric Power Plant
CPL Compliance HST Human Capital Strategy
CRM Chief of Risk Management HSSE Health, Safety, Security, Environment
CSI Community Satisfaction Index HTD Human Talent Development
CSIRT Computer Security Incident Response Team HXMS Human Experience Management System
CSMS Contractor Safety Management System IAU Internal Audit Unit
CSP Corporate Strategic Planning IFRS International Financial Reporting Standards
CSR Corporate Social Responsibility ILO International Labour Organization
DGE Directorate General of Electricity IPCC Intergovernmental Panel on Climate Change
DGM Digital Management IPP Independent Power Producer

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IPPKH Izin Pinjam Pakai Kawasan Hutan (Forest Area RKAU Rencana Kerja Anggaran Unit (Unit's Budget Plan)
Borrow-to-Use Permit) RKA-AP Rencana Kerja Anggaran Anak Perusahaan
IQR Infrastructure, Quality Assurance, and Risk (Subsidiary's Budget Plan)
Management Report RJPP Rencana Jangka Panjang Perusahaan
IUCN International Union for Conservation of Nature (Company's Long-Term Plan)
JETP Just Energy Transition Partnership RPL Regulation and Policy
KAN Komite Akreditasi Nasional (National RUPTL Rencana Usaha Penyediaan Tenaga Listrik
Accreditation Committee) (National Electricity Supply Business Plan)
KPI Key Performance Indicator SAIDI System Average Interruption Duration Index
MCJ Construction Java, Madura, Bali, Maluku, SAIFI System Average Interruption Frequency Index
Papua, and Nusa Tenggara SCM Supply Chain Management
MCS Construction Sumatra, Kalimantan, and SDGs Sustainable Development Goals
Sulawesi SFH Strategy, Finance, and Human Capital Risk
MDU Material Distribusi Utama (Main Distribution Management
Material) SHB Stakeholder Management and BoD Support
MHPP Micro Hydro Power Plant SIMPEL Sistem Pelaporan Elektronik Bidang Lingkungan
MoU Memorandum of Understanding Hidup (Environmental Electronic Reporting
MoEF Ministry of Environment and Forestry Information System)
MPTS Multi-Purpose Tree Species SPE Sertifikat Pengurangan Emisi (Emission
MSMEs Micro, Small & Medium Enterprises Reduction Certificate)
MTU Material Transmisi Utama (Main Transmission SPKLU Stasiun Pengisian Kendaraan Listrik Umum
Material) (Public Electric Vehicle Charging
NDC Nationally Determined Contribution Stations)SPLNStandar PLN (PLN's Standard)
NGOs Non-Governmental Organizations SPM Sistem Pemantauan Mutu (Quality Supervision
NRE New Renewable Energy System)
NZE Net-Zero Emission SOE State-Owned Enterprise
OCR Organization Capital Readiness SOP Standard Operating Procedure
ODJ Distribution Operation Java, Madura, and Bali SR Sustainability Report
ODM Operation Distribution Sulawesi, Maluku, Papua, SRM Surat Rekomendasi Mutu (Quality
and Nusa Tenggara Recommendation Letter)
ODS Operation Distribution Sumatra and Kalimantan SROI Social Return on Investment
OHS Occupational Health and Safety SWR Sustainability War Room
PFM Portfolio Management TCO Corporate Transformation and CEO O ice
PM Particulate Matter TDR Transmission and Distribution Risk Management
PMO Project Management O ice TFS Technology Information System
PPA Power Purchase Agreement UAV Unmanned Aerial Vehicle
PROPER Penilaian Peringkat Kinerja Perusahaan dalam U.S. EPA United States Environmental Protection Agency
Pengelolaan Lingkungan Hidup (The Corporate VP Vice President
Performance Rating Assessment Program in VRE Variable Renewable Energy
Environmental Management) WWTP Wastewater Treatment Plant
PTBAE-PU Persetujuan Teknis Batas Atas Emisi bagi Pelaku
Usaha (Technical Approval of Upper Emission
Limits for Business Entity)
RAS Risk Appetite StatementRCPRepresentative
Concentration Pathway
RCS Retail Sales and Customer Service
RE Renewable Energy
REC Renewable Energy Certificate
RES Renewable Energy Source
RKAP Rencana Kerja Anggaran Perusahaan (Company's
Budget Plan)

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 ESG Performance Report 2023

SUSTAINABILITY COMMITTEE
PLN is committed to implementing sustainable business principles to fulfill its vision and mission. These principles
are applied by all management, employees, and partners within the Company. PLN integrates ESG aspects into the
Company’s management that align with the aspirations of the shareholders, investors, and other parties, which
may influence the Company’s performance and reputation. Through the Statement of Corporate Intent No. 0314 of
2022 concerning the Sustainable Business Principle, PLN ensures the Company's sustainability in the
environmental, social, governance, and economic aspects. This initiative aims to enhance PLN's contribution to
achieving sustainable development goals while enhancing its competitive advantage.

Steering Committee (Directors)

Sustainability Committee Lead (EVP ETS)

Commitee Communi- Learning and IT Breakthrough Finance, risk,

Vice-lead cation Capability enablement monitoring and
and external building commercial
(EVP HSSE, EVP relation (EVP DGM, (EVP TCO)
ESL, EVP NRE, (EVP HTD) EVP TFS) (EVP COF, CRM,
EVP CMA, EVP (CORSEC, EVP EVP CSP, EVP
COC, EVP CPL) COC, EVP SHB) BUD,
EVP ACN, EVP
AVM,
EVP PFM, EVP
GIP)

Environmental Climate Change Social Governance

Management
Environmental CID, GEDSI, Human Bussiness Ethics,
Management, Resource (EVP ETS, EVP IQR, EVP CGN, Capital, Product Corporate Governance
Management, Land Use EVP SFH, EVP TDR) Governance, OHS
& Biodiversity (EVP CPL, CIA, EVP CSP, EVP
(EVP COC, EVP CMA, EVP SCM, EVP GAP, EVP COF, EVP
CES, EVP ECS, EVP RCS, EVP RPL, EVP CPC, EVP HCS, EVP
(EVP HSSE, EVP COC, EVP CPD, EVP HCS, EVP HTD, EVP
GOI, EVP ETS) SHB, EVP CLB)
HSSE, EVP DPS, EVP ODS,
EVP ODM, EVP ODJ, EVP
SCM, EVP EPP, EVP HCS, EVP
GAP)

Decarbonization of Coals & Renewable Expansion: Green Ecosystem:

Gas Plants : Renewable expansion, Smart EV, RECs, Rooftop solar,
CFPP retirement, Biomass grid Carbon pricing
cofiring, CCUS, Hydrogen
cofiring, Dedieselization, Gas
- EVP NRE - EVP MCS - EVP CMA - EVP PFM
expansion, Energy e ieciency
- EVP EPP - EVP MCJ - EVP CPD - EVP COF
- EVP GTM - EVP GSP - EVP NRE - EVP ETS
- EVP ESL - EVP NRE - EVP ESL - EVP COF - EVP CBI
- EVP CSP - EVP ETS - EVP ETS - EVP CSP
- EVP GOI - EVP PMO

Figure 1: PLN Sustainability Committee Structure

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 ESG Performance Report 2023

To realize it’s sustainable business principles, the Company instigated the Board of Director’s Decree No. 0225 of
2023 concerning the Formation of the Sustainability Committee. This committee was established to reinforce the
Company’s sustainability strategy and ensure it evolves into a sustainable entity that supports both current and
future sustainable development. The committee's core workstreams focus on environmental initiatives (excluding
energy transition activities), climate change management (related to energy transition), as well as social and
governance e orts.

The Sustainability Committee’s duties and responsibilities are laid down in the Board of Director’s (BoD’s) Decree
No. 0225 of 2023 and apply to 10 sustainability aspects, as discussed in this report:

Steering Committee

• To determine the strategic direction of sustainability implementation.

• To discuss sustainability progress with the sustainability committee through regular meetings.
• To report sustainability progress to the Board of Commissioners (BoC) through management report meetings.

Committee Lead

• Lead the entire team in implementing, monitoring, and ensuring the implementation of the sustainability
principles.
• Lead the preparation and updating of the sustainability framework, including KPIs and targeting all aspects of
sustainability as well as coordinating the entire workstream.
• Monitor and evaluate the sustainability target achievements on a regular basis.
• Deliver the sustainability progress and development to the BoC as builders, through management reports.
• Report sustainability development progress to the BoD every month through committee meetings attended by
at least two PLN directors.
• Prepare the entire administrative process including the letter of note and documentation required for the
performance of the sustainability committee team’s duties and responsibilities.
• Document and archive all documents related to the sustainability team's duties.

Committee Vice Lead

Assist in the execution of the Committee Lead's duties and responsibilities and represent the Committee Lead
when needed.

Environmental Enablers Workstream

• Ensure achievement of environmental (non-energy transition) workstream targets such as environmental

management, resource management, land management, and biodiversity.
• Adjust and contribute to the programs related to environmental (non-transitional energy) SDGs that exist in the
corporate environment such as clean water, clean and cheap energy, and action against climate, marine life
and land life.
• Prepare a plan for environmental workstream initiatives (non-energy transition) in accordance with the
Company's annual environmental goals to improve social quality as well as the criteria of independent
institutions.
• Monitor the entire environmental workstream initiative (non-energy transition) progress in the workstream to
ensure that issues that may slow the achievement of environmental KPIs in accordance with national targets
are completed.
• Report progress on implementation of environmental workstream initiatives (non-energy transition)
periodically to the coordinator of the sustainability committee.

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Climate Change Enablers Workstream

• Analyze the sub-workstream climate change initiatives to meet the overall energy transition target in the RUPTL.
• Coordinate routine meetings with each sub-workstream to ensure the arrival and availability of energy transition
targets.
• Set monthly targets for each sub-workstream based on the achievements each month.
• Report the availability of energy transition to the coordinator of the sustainability committee on a regular basis.
• Complete the necessary documents relating to the energy transition so as to meet the criteria of an independent
agency.
• Assist each sub-workstream in solving problems and issues that may interfere with the progress of energy
transition initiatives.

Social Enablers Workstream

• Ensure the accomplishment of workstream targets for the social aspects, such as community development,
gender equality, product governance, human capital development, disability equality, and social inclusion.
• Adjust and contribute to the programs related to the social SDGs in the corporate environment, such as
eradication of poverty and hunger, improvement of health and education, gender equality, jobs and economy
quality, and sustainable cities.
• Prepare social initiative plans in accordance with the Company’s annual targets to enhance the social quality
and fulfillment of the criteria checklist for independent institutions.
• Monitor all progress of the social workstream initiatives to ensure the resolution of issues that may impede the
achievement of social KPIs in corporate environments.
• Report the progress of social workstream initiatives implementation to the sustainability committee
coordinator regularly.

Governance Enablers Workstream:

• Ensure the accomplishment of workstream targets for the governance aspects, such as business ethics and
overall corporate governance.
• Adjust and contribute to the programs related to the governance SDGs in the corporate environment, such as
industrial innovation, responsible consumption and production, peace and justice, and collaboration toward
common goals.
• Prepare governance initiative plans in accordance with the Company’s annual targets to enhance the
governance quality and criteria checklist for independent institutions.
• Monitor all progress of the governance workstream initiatives to ensure the resolution of issues that may
impede the achievement of governance KPIs in line with the Company’s target.
• Report the progress of the governance workstream initiatives implementation to the sustainability committee
coordinator regularly.

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 ESG Performance Report 2023

Board of Directors (BoD) and Board of Commisioners

(BoC)
The BoD and BoC are collectively tasked with supervising
the Company guidelines and strategic plans, as well as
the monitoring and evaluation of economic and financial
performance. Additionally, they engage in deliberations on
corporate policies and fulfill other responsibilities. The
BoD ensures all its members have the necessary
knowledge, experience, and competence to e ectively Figure 2: PLN’s President Director Achieved
the CEO of the Year and the Best ESG Campaign Awards
oversee ESG performance. In 2023, the BoD established
the PT PLN (Persero) Sustainability Committee to address
sustainability governance. The Sustainability Committee Darmawan Prasodjo is also a recognized expert in climate
consists of all BoD members, who serve as a steering change and energy transition. He completed a Post
committee. Their primary responsibilities include Doctoral at the Nicholas Institute Duke University United
determining the strategic direction of sustainability States focusing on climate change, energy transition, and
implementation, discussing sustainability progress, and international climate agreements. He earned his
reporting such progress to the BoC. The EVP of the ETS Doctorate at the Texas A&M University, specializing in
Division is appointed by the BoD to serve as the Head of energy policy, energy modeling, and climate change. He is
the Committee. also deeply involved in discussing the implementation of
cap and trade, carbon trading, and the operationalization
ESG-Related Experience of Board Members of Carbon Capture and Storage in the Power and Utility
Each board member possesses extensive experience in sector. In 2023, he was honored when he received the
ESG-related topics. Most of them are pursuing Green Leadership Award for the second consecutive year,
academic degrees in engineering, energy, and business his exceptional commitment to advancing the Company's
management, which are core to PLN's business environmental management and his ongoing e orts in
processes. They have held significant leadership climate action.
positions for many years, serving primarily as analysts,
evaluators, planners, and strategists to ensure the
Company’s governance is in capable hands.

In 2023, the PLN’s President Director, Darmawan

Prasodjo, received an award as CEO of the Year for the
second consecutive year. This award recognized his
sustained and impactful leadership in transforming PLN
through digitalization and innovations across various
sectors that positively impacted Indonesia's energy
sector. Under his guidance, PLN saw notable business
growth and improved customer satisfaction. At the
same event, PLN was also recognized with the Best ESG
Campaign award in the Energy Sector. customer Figure 3: PLN’s President Director Achieved Leadership Award

satisfaction.
PLN’s Director of Finance, Sinthya Roesly also serves as
the Chairwoman of Srikandi PLN, a women’s community
within PLN that plays a crucial role in delivering
exceptional services to the public.

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 ESG Performance Report 2023

This community actively promotes women's • REC Market Expansion: to achieve Green Funding
empowerment both within the organization and in the from REC amounting to 690 billion rupiah cumu-
broader community through capacity building and latively from 2023 to 2028.
social initiatives. Srikandi PLN exemplifies PLN’s
commitment to gender mainstreaming, aligning with Through the SWR, PLN has developed a Quick-Win
its corporate strategy that emphasizes ESG aspects strategy for ESG Improvement, especially addressing
and representing a concrete step toward achieving the four key ESG materials issues, with a total weighted
Sustainable Development Goals (SDGs). reach of 65% with two still having an average risk
management. The ESG material issues are:
1. Carbon – Own Operations
2. Emissions, E luents, and Waste
3. Community Relations
4. Resource use

Each indicator has an action plan for reducing the ESG

Risk. Through the SWR, the Company can monitor the
progress of action plans and targets for each indicator
and ensure they can be achieved within the specified
timeframe.
Figure 4: PLN’s Finance Director, who is also Chairwoman
of Srikandi PLN with local craftswoman during
Srikandi PLN Social Action Event

Sustainability War Room (SWR)

SWR is a strategic initiative designed to accelerate the
ESG e orts and energy transition, ensuring the
achievement of Indonesia's Nationally Determined
Contribution (NDC) by 2030 and NZE by 2060. SWR
serves as a platform for the sustainability committee Figure 5: First Sustainability War Room on October 12, 2023

in carrying out its duties. PLN is using the SWR as the

pathway to becoming a green and sustainable top 500 Sustainability Day 2023
global company. SWR meetings are held once every
two weeks to discuss the progress of the sustainability
committee in achieving Net-Zero Emissions. The BoD
attends these meetings as senior supervisors to
ensure the accomplishment of each program. To
achieve NZE by 2060, PLN has set ambitious targets
through 29 priority moonshots, categorized into
growth moonshots, digital moonshots, NZE moon-
shots, and moonshot launchpad. There are 4 NZE
Moonshots that will be monitored through the SWR Figure 6: PLN President Director delivered a speech
cadence: on Sustainability Day 2023
• ARED: to plan for the aggressive expansion of RES
post-2030 In July 2023, PLN held its annual Sustainability Day,
• Green Enabling Transmission: to address the launching the sustainability committee and signing
mismatch between supply and demand among the Joint Commitment on Sustainable Business. The
the islands in Indonesia through interconnection. committee, consisting of environmental, climate
• Scale-up Co-firing Biomass: to reduce carbon change management, social, governance, and
emissions by 11.6 mtCO2e/year (2028) communications workstreams, aims to integrate

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 ESG Performance Report 2023

sustainability across PLN’s business processes. In Sustainability Academy 2023

December 2023, another Sustainability Day was In 2023, PLN introduced the Sustainability Academy to
hosted with the theme "Engendering – Empowering," integrate sustainability principles into its operations and
rea irming PLN's commitment to ESG principles and corporate culture, educating employees on sustainable
gender mainstreaming. PLN also launched the practices across all business aspects. The Academy
Gender Academy, focused on reducing structural o ers a number of training programs, seminars, and
barriers for women, and introduced the Srikandi PLN workshops on environmental issues, renewable energy,
Pocket Book, encouraging women to embody the energy e iciency, and waste management, with
Company's values. participants from field technicians to senior
management. Additionally, it serves as a research and
development center, fostering collaborations with
educational institutions, NGOs, and industry partners
to develop innovative solutions for PLN’s sustainable
energy transition. As part of PLN’s vision to be an
environmentally responsible energy company, the
Academy aims to reduce the Company’s carbon
footprint and empower employees to drive positive
change within their communities.
Figure 7: PLN’s President Director and PLN’s Finance Director
who is also the Chairwoman of Srikandi PLN launched
the Srikandi Pocket Book on Sustainability Day 2023

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 ESG Performance Report 2023

RISK MANAGEMENT
PLN has implemented a risk management system aligned with ISO 31000:2018 and a three-lines-of-defense
strategy for risk management, which comprises an assurance function, a supervisory function, and a risk
management function. The BoD is responsible for the coordination and direct oversight of this risk management
system, while the BoC oversees it through the risk management committee. This mechanism is described in the
Three Lines of Defense (Figure 8).

THREE LINES OF DEFENSE

1st Line of Defense 2nd Line of Defense 3rd Line of Defense

BOARD OF DIRECTOR BOARD OF COMMISSIONERS

Risk Management
Business Process Owner Risk and Compliance Committee of the
Audit Committee
of the Board
(Risk Owner) Management Function Board of
of Commissioners
Commissioners

Internal Audit Unit

Note:

Communication Direction
External Auditor

Figure 8: Three Lines of Defense Strategy

pR

According to the Director's Regulations No. 0016 of Scope, context, criteria

Communication & consulting

2023 relating to Integrated Risk Management Risk assessment

Monitoring & review

Strategic Policy of PT PLN (Persero), the risk Risk identification

mangement process is carried out by identifying, Risk analysis
analyzing, recording, monitoring, evaluating, and
Risk evaluation
reporting the risks (Figure 9). This regulation serves
as a guideline for the implementation of Integrated Risk treatment

Risk Management within the PLN environment. The Recording & reporting
risk management process is mapped, measured,
mitigated and managed to ensure the achievement
of PLN’s ESG targets.

Figure 9: Risk Management Process

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 ESG Performance Report 2023

Risk analysis is conducted in accordance with the business processes and risks arising from specific activities or
programs. PLN's risk assessments are included in its risk profile, study, and/or rating. The risk profile outlines the
main risks that could hinder PLN's long-term targets in its RUPTL and RJPP, as well as its short-term targets in the
RKAP. A risk study describes the risks that a ect planned activities, initiatives, projects, and decision plans. PLN
categorizes risk levels based on five categories of risk covering strategic, financial, operational, project, and
compliance risk. The risk identification is also categorized by all risk typologies and taxonomies, including ESG risks
(Figure 10).

T3 categories T4 categories T3 categories T4 categories T3 categories T4 categories

Organizational structure changes Human resource

Credit / counterparty risk People risk
Corporate structure Complexity of assigned and risk
complexity risk a iliated companies Disasters and
Insurance risk
PLN holding governance public safety
Financial risk
Interdependence risk
Portofolio risk Funding risk Supply chain risk
M&A, strategic alliance &
privatization risk Power plant
Liquidity risk Operational risk
M&A, strategic alliance Compensation risk operation risk
& privatization risk Litigation (legal) risk
PMN realed funding risk Transmission
Competition Risk Legal, Reputational risk operation risk
Subsidies and
compensation risk reputational
Business Environment Compliance with Distribution
& regulation and policies
Business and strategic planning, operation risk
targets and decisions compliance
PMN (funding) risk risk
Changes in regulatory Fraud risk IT technology risk
environment and policies Technology and
Commodity price list cybersecurity risk
Strategic risk Social risk Cyber risk
Investment risk

Ethics risk Project planning,

Political risk Social cost and contracting
Sectoral policy & &
regulatory risk
environmental Transition risk Project risk Project timing
Interest rate risk
risk
Market &
Physical risk and Project Quality
macroeconomic risk Exchange rate risk natural disaster

Figure 10: PLN Risk Taxonomy

PLN conducts risk rating assessment by designing Table 2 Quantitative Impact Risk Level
actions to identify, assess, reduce, transfer, or accept
Impact Level Classification
risk that is in line with PLN's strategic objectives. PLN's
Quantitative Parameters
risk threshold is defined by four key components: Level Risk Impact
of Financial Impact
• Risk capacity: Maximum risk value that can be
Very low <IDR 1.58 trillion
borne by PLN based on capital, liquidity or other
Low IDR 1.58 trillion – IDR 3.16 trillion
financial capabilities.
Moderate IDR 3.16 trillion – IDR 4.75 trillion
• Risk Appetite: The level of risk taken can achieve
High IDR 4.75 trillion – IDR 6.33 trillion
its goals.
Very High >IDR 6.33 trillion
• Risk Tolerance: The level of risk the Company is
willing to take within a tolerable amount.
• Risk Limit: The limit value as a reference for risk The risk assessment evaluates several aspects of the
owners. power plant, including climate physical risk and allied
hazards, power plant design and layout, utility hazards,
PLN continues to minimize the impact of potential process control, loss prevention, exposure to business
future ha zards by applying two categories: interruptions, and aspects in management from
quantitative risk, which is determined by financial operations to future inspection of our assets considering
impact (Table 2) and qualitative risk, which is based on climate change. Evaluating climate-related physical risks
various PLN parameter categories (Table 3). and associated hazards is undertaken by examining the
potential impact of natural disasters (earthquakes,
extreme weather, and floods) on PLN's assets.

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Table 3 Qualitative Risk Level

CATEGORY/
Category/ NOT
Not VERY
Very
MINOR
Minor MEDIUM
Medium SIGNIFICANT
Significant
RISK
RiskPARAMETERS
Parameters SIGNIFICANT
Significant SIGNIFICANT
Significant

LEADERSHIP

Human Resources Individual Dissatisfaction of Employee protests Employee There was a strike
employee a group of involving trade demonstration on a wide scale
complaints employees unions with limited strike

Incident Incidents require Incidents require Incidents require Incidents require Incidents cause
handling by handling by investigation by explanation to the problems /
immediate management independent authorities / lawsuits
superiors (internal) (external) parties Government

Reputation The impact is Minimum impact Complaints, Extensive media Nationwide

meaningless, does in the form of dissatisfaction, coverage in the spotlight,
not cause complaints or demonstrations area, requiring special
permanent dissatisfaction, and media triggering a government
operational does not interfere spotlight government policies,
disruption with business triggered response, threats to
operations stakeholder business long-term
responses, operations stalled business
disrupted for a while,
business immediate
operations handling was
needed

Fraud NOT TOLERATED

INTERNAL BUSINESS PROCESS

K-3 / Critical Asset Critical asset Critical asset Critical asset Critical asset Critical asset
damage requires damage requires damage requires damage requires damage requires
only minor repairs repair up to 1 day repair up to repair in repair > 6 months,
1 month 1-6 months or replacement

K-3 / Asset Security Minor asset Minor asset Moderate asset Assets are heavily Assets are heavily
damage damage damage damaged damaged
(needs repair) (can no longer
be used)

K-3 / Life Safety NOT TOLERATED

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 ESG Performance Report 2023

Category/ Not Very

Minor Medium Significant
Risk Parameters Significant Significant

Environment No reprimand Rebuke from MoEF Stern warning Operational fines/ Location closure,
from MoEF from MoEF restrictions from or penalties by
MoEF MoEF

Environmental Environmental Environmental Environmental Environmental

pollution occurs pollution occurs pollution occurs pollution occurs pollution occurs
but is still within but is still within beyond the MoEF beyond the MoEF beyond the MoEF
the threshold of the threshold of threshold and the threshold, and the threshold and the
MoEF and the MoEF and the impact on the environmental environmental
impact impact on environment can impact is impact is
on the the environment be overcome permanent, permanent,
environment can be overcome (>1 month) cannot be insurmountable
can be overcome < 1 month overcome
immediately immediately

Business Continuity The company's The company's The company's The company's The company's
activities are not activities are activities are activities were activities were
disturbed disrupted on 1 disrupted in 1 unit, disrupted on disrupted widely
unit, it does not and a ect service some units (nationally)
a ect service

Third Party Lawsuits The settlement of Settlement of Settlement of Settlement of The settlement of
claims is carried claims is carried claims is carried claims is carried claims is carried
out through out through out through out through the out through the
deliberation deliberation, with alternative dispute judicial process, process of Review
the role of resolution starting from of the Supreme
a mediator the District Court, Court of the
High Court Republic of
Appeals, Indonesia
and Cassation of
the Supreme
Court of the
Republic of
Indonesia

Deviation from Deviation from Deviation from Deviation from Deviation from
Operational target: target: target: target: target:
Performance < 0.5% 0.5% - 2.5% 2.5% - 5% 5% - 10% >10%
Achievement
(for Financial
Performance, refers
to Financial and
Market Categories)

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 ESG Performance Report 2023

Category/ Not Very

Minor Medium Significant
Risk Parameters Significant Significant

PRODUCTS & SERVICES

Area Coverage on Coverage on Coverage on Coverage on 1 Coverage on 1

multiple feeders at 1 substation or multiple large sub-system large system at the
the same time small systems substations or at the same time same time or
medium systems system blackout
at the same time

Customer Customers Customers Customers Customer Demonstration by

Complaints complaints complaints complaints complaints customers or
through contact through visiting through spotlighted by class action by a
center PLN o ice newsletter or national medias of customers
directly social media or lawsuits by
individuals

FINANCE & MARKETS:

Loss or Opportunity <0.1% of the 0.1% - 0.5% of the 0.5% - 1% of the 1% - 2% of the >2% of the
Loss Company's one- Company's one- Company's one- Company's one- Company's one-
year revenue year revenue year revenue year revenue year revenue

PLN combines the qualitative and quantitative approaches to determine its risk appetite, based on the probability
and impact levels. The probability requirements associated with each risk are detailed in Table 4.

Table 4 Probability Risk Level

Level Parameter Probability Qualitative Description

1 Certain (5) > 80% - 100% Almost certainly will occur

2 Likely (4) > 60 - 80 Most likely to occur

3 Even Chance (3) > 40% - 60% It is equally likely to occur and not occur

4 Unlikely (2) > 20% - 40% Less likely to occur

5 Impossible (1) > 0 % - 20% Almost certainly will not occur

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 ESG Performance Report 2023

The Risk Appetite Framework in Table 5 provides PLN with a systematic approach to monitor and control risks as
part of an integrated decision-making process.

Table 5 Risk Appetite

Probability Impact Level

X
Impact Not Significant (1) Minor (2) Medium (3) Significant (4) Very Significant (5)
5 3 1
Certain (5) Low to Moderate (7) Moderate (12) Moderate to High (17) High (25) High (25)
Probability Level

Likely (4) Low (4) Low to Moderate (7) Moderate (12) Moderate to High (17) High (25)
2
Even Chance (3) Low (3) Low to Moderate (7) Moderate (12) Moderate to High (17) High (25)

Unlikely (2) Low (2) Low to Moderate (7) Low to Moderate (7) Moderate to High (17) High (25)

Impossible (1) Low (1) Low ( 5 ) Low to Moderate (7) Moderate (12) 4 High (25)

Risk Appetite Limit

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 ESG Performance Report 2023

The significant risks for each ESG aspect are shown in Table 6.

Table 6 Summary of the Significant Risks for Each ESG Aspect

ESG Aspect Type of Risk Risk Level

Environmental
Climate Change Intermittent or VRE plants, such as solar power plants High (24)
Management and wind power plants, can interfere with system
stability.

Environmental The declining health of workers exposed to air High (20)

Management pollution from coal-fired power plants may reduce
productivity and increase workers' health insurance
costs.
Resource Management Increased cost to supply natural gas. High (23)

Nature Management Risk of Impacts of Power Plant on Coastal and/or Moderate to High (16)
Riverbanks on Water and Biodiversity.

Social
Community Relations The need for local job opportunities within the Moderate (12)
community.

Occupational Health Occupational accidents occurred in the workplace High (23)

and Safety (construction site or operational area).

Human Capital Increase in employee health cost in implementing Moderate to High (19)
Management preventive programs including standardized medical
check-up.

Gender Equality, Failure to achieve the target of female management High (22)
Disability, and Social representation.
Inclusion

Governance
Product Governance Failure in business development resulting in loss of High (24)
revenue.

Cyber-attack on IT (Information Technology) and OT High (24)

(Operation Technology).

Business Ethics Existence of concurrent positions Moderate to High (16)

23 Sustainability-Related Financial Disclosure

ENVIRONMENT
CLIMATE CHANGE MANAGEMENT
ENVIRONMENTAL MANAGEMENT
RESOURCE MANAGEMENT
NATURE MANAGEMENT
 ESG Performance Report 2023

CLIMATE CHANGE
MANAGEMENT
PLN is actively managing climate change through its decarbonization and energy transition initiatives, aiming
to meet the Nationally Determined Contributions (NDC) by 2030 and achieve Net Zero Emissions (NZE) by
2060. The company monitors and reduces carbon emissions across its operations and transitioning from
fossil fuels to renewable energy sources. PLN has also identified climate-related risks and implemented
mitigation measures through infrastructure enhancements, securing financial resources, and monitoring
legal frameworks.

GOVERNANCE
COMPANY’S COMMITMENT
PLN, through its Climate Change Policy, is committed climate-related risks and opportunities. The PLN's
to achieving Indonesia’s E-NDC target for the electricity executive team is responsible for developing and
sector by 2030 and reaching NZE by 2060. The implementing strategies aligned with the BoD's goals,
Company aims to achieve these goals by decarbonizing managing climate-related risks and opportunities, and
fossil-based power plants, accelerating the develop- ensuring the provision of sustainable electricity.
ment of renewable energy plants, and fostering green
ecosystems. Additionally, PLN is dedicated to ensuring PLN has developed a risk management and internal
the resilience of its assets and business processes audit unit, which are directly responsible to the Presi-
against the impacts of climate change. dent Director. Decisions related to sustainability,
including climate change management must undergo a
In response to climate change-related risks and oppor- consultation process and receive recommendation
tunities, PLN has established a governance framework from the Risk Management Directorate. The audit
for energy transition and climate change, overseen process of the sustainability agenda is conducted by
directly by the Board of Directors (BoD). This commit- the Internal Audit Unit.
ment to energy transition is integrated into an organiza-
tional function involving multiple divisions and is jointly Under the Director's Regulation No. 0058 of 2022, the
implemented across all PLN Group business proces. Energy Transition and Sustainability (ETS) Division was
established. Based on Director's Regulation No. 0022
The BoC plays a crucial role in supervising energy of 2023, as an amendment of Director's Regulation No.
transition and climate change management, including 0054 of 2022 concerning the Organization and Work
monitoring the progress of PLN's energy transition Procedures of PT PLN (Persero), this division will be
agenda and advising the BoD on key decisions. responsible for leading, planning, implementing,
monitoring, evaluating, and fostering the Company's
As a part of the BoD, the President Director provides energy transition agenda under the supervision of the
guidance, actively engages, and makes decisions BoD. Further explanation of this responsibility is
concerning energy transition initiatives to address provided in the Executive Responsibility section.

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 ESG Performance Report 2023

To ensure the e ectiveness of the proposed programs evaluate targets periodically. The strategic policy
and targets, PLN constructed a suitable environ- related to:
mental management organization in every unit and a) GHG Emission Management
subsidiary, which was supported by Director’s Regu- b) Climate Change Mitigation
lation No. 0161 of 2021 relating to the Strategic Policy c) Utilization of Climate Change Control Funding
for Climate Change Management. This policy aims to and Implementation of Carbon Economic Value
improve the Company’s performance and reinforces (Carbon Pricing) Instruments
the company’s capacity in carrying out the RUPTL and d) Climate Change Adaptation
the transition to Net-Zero Emissions 2060. This policy e) Climate Change Management Budget
also states that each environmental entity within units f) Capacity Building in the Management of Climate
and subsidiaries has the authority for the implemen- Change
tation of climate change management initiatives. With g) Monitoring and Evaluation of Climate Change
this e ort, it is easier to track every progress and Management

External Oversight Board of Commissioners

Director Oversight Board of Director

Internal Assurance Internal Audit Unit Risk Management Directorate

EVP ETS Sustainability Committee

Communication Learning and IT enablement Breakthrough Finance, risk,

and external Capability monitoring and commercial
relation building (EVP DGM,
EVP TFS) (EVP TCO) (EVP COF, CRM,
(CORSEC, EVP (EVP HTD) EVP CSP, EVP
COC, EVP SHB) BUD,
EVP ACN, EVP
AVM,
EVP PFM, EVP
GIP)

Climate Change Management

EVP ETS, EVP IQR, EVP CGN, EVP SFH, EVP TDR
Management
Oversight Decarbonization of Renewable Expansion Green ecosystem
Coals & Gas Plants Renewable expansion, EV, RECs, Rooftop solar,
CFPP retirement, Biomass Smart grid Carbon pricing
cofiring, CCUS, Hydrogen
cofiring, Dedieselization, - EVP NRE - EVP MCJ - EVP CMA - EVP PFM
Gas expansion, Energy - EVP EPP - EVP GSP - EVP CPD - EVP COF
e ieciency - EVP GTM - EVP COF - EVP NRE - EVP ETS
- EVP ESL - EVP CSP - EVP CBI
- EVP ESL - EVP NRE - EVP ETS
- EVP CSP - EVP ETS - EVP PMO
- EVP GOI - EVP MCS

Program Execution Sub Holdings / Subsidiaries Units

Aligment, communication,
Legends : Accountability, reporting Delegation, direction, resources, oversight coordination, collaboration

Figure I. 1: PLN Climate Change Governance Framework

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 ESG Performance Report 2023

EXECUTIVE RESPONSIBILITY
In relation to climate change management, the responsibility within the sustainability committee is allocated as
follows:

Responsible Director
Climate Change Management is coordinated by the Director of Transmission and System Planning, who is
responsible for overseeing the planning, implementation, and evaluation of the electric production and distribution
processes to ensure they are e icient, safe, reliable, and environmentally friendly. Additionally, the Director leads
end-to-end e orts to accelerate the energy transition and the development of new and renewable energy assets.

Responsible Division
The responsible divisions for climate change management, includes:
ETS division, which is managed by the EVP of ETS Division. The responsibility of the EVP of ETS Division is related to:
• Develop a strategic plan to accelerate the energy transition through the development of renewable energy
generation.
• Ensure the formulation and update of the long-term energy transition roadmap according to NZE 2060.
• Ensure the formulation of policies and guidelines related to energy transition to achieve the NDC 2030 and NZE
2060 targets.
• Ensure the implementation of programs that support the energy transition runs well in accordance with PLN's
NZE aspirations.

Electricity System Planning Division, which is responsible for managing the function of preparing RUPTL and
carrying out GHG emission projections and mitigating the risks of energy transition and climate change.
Others that support the preparation of the RUPTL :
• Project Management O ice Division
• Generation Strategic Planning Division
• Transmission Strategic Planning Division
• Distribution Strategic Planning Division
• Head of Risk Management Directorate
• Commercial and Marketing Division
• Director of Transmission and System Planning
• Corporate Strategic Planning Division

Responsible Management Level

• Climate Change Management is managed by the VP of Climate Change and Energy Transition.
• In each sub-holding and subsidiary, Climate ChangeManagement is managed by the chairperson appointed by
the authorized Head or Director of the sub-holding or subsidiary. The implementation of climate change
management, as part of the sustainability performance of sub-holdings and subsidiaries, is monitored by PLN's
ETS Division.

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 ESG Performance Report 2023

STRATEGY
GHG EMISSION REDUCTION PROGRAMS
As of 2023, GHG emissions from the electricity sector reach 269.91 million metric tons of CO2e. If PLN continues
with business as usual, these emissions could rise to 1 billion metric tons of CO2e annually by 2060. This increase is
largely due to PLN's ongoing reliance on fossil fuels, particularly coal, for electricity generation. GHG emissions can
pose environmental risks as a global warming potential that can trigger climate change.

In line with the NZE policy, PLN is committed to controlling emissions from operational activities and supporting
facilities throughout the business process area. As for the GHG Emission Control, it refers to the Indonesian target
of NDC by 2030.

Aspiration
Net Zero Emissions by 2060

Shift away from high carbon power generation Growth powered with new
technologies/businessees

Short-term (2021-2030) goal : Long-term (2031-2060) goal : Develop supporting

Deliver on NDC Achieve Net Zero Emission : technologies and ecosystem
Renewables Renewables Electric Vehicles
De-dieselization + Battery storage
+ Interconnection Ro top Solar
Coal plant retirement
Biomass co-firing Hydrogen and ammonia co-firing Energy as a Services
Energy e iciency & grid
loss improvement Carbon Capture
REC/Carbon credit
Utilization & Storage (CCUS)
Gas expansion
Clean coal Additional coal plant retirement Emissions trading scheme

Build new internal capabilities and technologies supported by innovation, financing, and policies

More than USD 700 Bn total investmen cost to reach net zero emissions by 2060

Figure I. 2: Energy Transition PIllars

PLN has developed a roadmap to achieve Indonesia's Nationally Determined Contribution (NDC) by 2030 and
accelerate toward Net-Zero Emissions (NZE) by 2060. The Company's strategy is focused on transitioning away
from high-carbon power generation while fostering growth through new technologies and business ventures.

Short-Term Initiatives (2021 – 2030) that produces PLN's electricity both for owned and IPP
is 8,790 MW.
PLN will increase New Renewable Energy Power
Capacity by 20.9 GW by 2030 In 2030, PLN has set a target of 51.6% or 20.93 GW for
PLN continues to accelerate the development of renewable power plants, including hydroelectric
renewable energy to support the sustainable energy power plant 10.4 GW, geothermal power plants 3.4
transition in Indonesia. In 2023, PLN completed 28 GW, solar power plant 4.7 GW, and other renewable
renewable energy plants with a total capacity of 344.4 energy 1.5 GW
MW. The total capacity of the renewable power plant

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Conversion of Diesel Power Plant to New Renew- plants from subcritical to supercritical and ultra-
able Energy and Gas Plant Expansion super-critical to reduce emissions by 9.1 million tons
PLN is conducting a program to convert diesel power of CO2.
plants to renewable energy. Currently, PLN operates
5,200 diesel power plants in 2,130 locations across Use of CCUS Technology
Indonesia, with a total capacity of 1,873 MW In September 2023, PLN signed a MoU with Karbon
Korea Co., Ltd. concerning the implementation of
The conversion program will be divided into two stages CCUS.
and targeted to be completed gradually until 2025 to
achieve the 23% renewable energy mix target. In
December 2023, PLN announced the selected
contractors for the de-dieselization program or the
expansion of gas-fired power plants.

Biomass Co-Firing Program for Existing CFPP

Biomass co-firing has been implemented at 43
CFPPs, and is planned for expansion to 52 CFPPs, with
a total capacity of 10.6 GW by 2025. In 2023, PLN Figure I. 3: PLN signed MoU
with Karbon Korea Co., Ltd
absorbed 1 million tons of biomass for these 43
CFPPs, a 71% increase from 2022. The biomass Co-Firing Hydrogen on Gas and Coal Plants.
mixing as fuel is done in percentages adjusted to each In March 2023, PLN, through its subsidiary PLN
power plant's conditions. PLN has also successfully Nusantara Power, collaborated with Mitsubishi Heavy
conducted trials using 100% biomass, including the Industries, low carbon-intensive fuels in its power
Sintang CFPP, through hybrid operation with 100% plants
biomass usage for 15 days per month. This
achievement is the first and longest in Indonesia and Long-Term Initiatives (2031 – 2060)
marks a significant step toward the future of clean
energy in Indonesia. Development of Network Interconnection Con-
struction to Deliver Clean Energy between Islands.
Emission Reduction E orts through Increased To advance the development of power plants primarily
Energy E iciency, Reduced Network Depletion, powered by renewable energy sources, PLN plans to
and CCT build an interconnected network between islands.
The network's downturn in 2023 was 8.57%, more This network will capture the potential of dispersed
e icient than the previous year's 8.72%. renewable energy sources in Sumatra, Kalimantan,
Sulawesi, and Nusa Tenggara and channel it to
Early Retirement or Acceleration of Retirement electricity load centers and green industries.
from Fossil-Fuel-based Plants Additionally, with the enhancement of intermittent
PLN, ADB, PT Cirebon Electric Power and the renewable power plant capacity, including solar and
Indonesia Investment Authority have agreed a wind power plants with a capacity of 28 GW, PLN
Memorandum of Understanding (MoU) regarding the needs to construct smart-grid infrastructure end-to-
early retirement of the Cirebon CFPP 1 x 660 MW, end and implement flexible generation to integrate
accelerating its retirement by seven years Variable Renewable
Long Term Energy on a large(2021
Initiatives scale.– 2030)
PLN has already built the following interconnection
PLN has also demonstrated a commitment to projects:
decarbonization of power plants by reducing 13.3 GW • 150 kV Sumatera-Bangka electrical interconnection.
of coal power plants in the planning stages and 1.3 GW • 150 kV Sebuku-Kotabaru electrical interconnection.
of coal power plants in the PPA stages, which will • 20 kV Sebatik-Nunukan-Kaltara, interconnection.
reduce the GHG emission to 1.8-billion-ton CO2 • 20 kV Manado-Bunaken interconnection.
emissions for 25 years. Furthermore, PLN is • 20 kV Senggigi-Gili Trawangan-Gili Meno-Gili Air
converting the development of coal-fired power interconnection.

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Use of Energy Storage Technology Expand the Electric Vehicle Ecosystem

PLN participated in developing an electric battery PLN continues supporting the acceleration of the
ecosystem through investment in Indonesia Battery electric vehicle ecosystem in the country. As of
Corporation. 2023, PLN has installed 308 SPKLU across
Indonesia. Additionally, PLN introduced an
Use of CCS Technology will Reach 54 GW by 2060. innovative solution by converting 11 power poles
PLN conducted CCS application studies at 4 CFPPs into SPKLU for convenient charging of electric
and 2 CCPP owned by PLN with partners such as JERA, vehicles, known as PLN EYE. By the end of 2023,
Carbon Korea, Inpex, Medco and GE. three PLN EYE SPKLU prototypes were installed and
operational: two at the PLN KS Tubun O ice in West
Development of Supporting Technologies and Jakarta and one at Yasporbi Bidakara Elementary
Ecosystem
School in South Jakarta.
Green Energy as-a-Service
PLN is enabling stakeholders' participation in green Emission Trading Scheme
energy consumption and development through its Since 2023, PLN has been actively involved in
Green Energy as-a-Service initiative. This service carbon trading at the national level through
o ers two options emission trading and emission o set mechanisms.
• Green energy (dedicated) – where the electricity Carbon trading is conducted directly through PLN
consumed is bundled with REC, ensuring 100% Climate Click and APPLE-Gatrik. The carbon trading
green energy consumption. For instance, PLN period for 2023 will be carried out until April 2024.
has established the first GHP in Indonesia,
located at Muara Karang CCPP. This plant can In 2023, PLN traded approximately 6.7 million tons
produce 51 tons of hydrogen per year and is of CO2e of the PTBAE-PU, both within PLN Group
mainly used by industry sectors, such as steel, and with IPP Plants. Additionally, approximately
concrete, chemicals, and fertilizers. The GHP 900,000 tons of CO2e from the SPE of Muara Karang
utilizes energy from a nearby solar power plant, CCPP have been registered on the carbon
which is bundled with a REC from the Kamojang exchange. Total SPE sales transactions amounted
Geothermal Power Plant. to approximately 11,000 tons of CO2e, recorded
• RECs – where customers can purchase RECs through the negotiated market mechanism.
separately (unbundled) from the electricity,
allowing flexibility in green energy coverage. In
2023, REC's growth reached 3.54 TWh, marking
a 101% increase from 1.76 TWh in 2022. Since its
launch in 2020 until 2023, the total sales of REC
have surpassed 5.61 TWh, with over 300
customers across various industries and busi-
ness sectors. Currently, there are six power
plants supplying green electricity to REC
customers, namely Kamojang GPP, Cirata HEPP,
Lambur MHPP, Bakaru HEPP, Lahendong GPP,
and Ulubelu GPP.

Solar Rooftops
Through the West Kalimantan Distribution Parent Unit
and ICON+ Subholding, PLN developed a 1 million
solar rooftops program in West Kalimantan. This is the
first program in Indonesia, with the pilot located on
Lemukutan Island.

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PLN also developed detailed decarbonization targets for 2030–2060, which mainly focus on CFPP retirement, grid
interconnection, RES, and CCUS as shown in Figure I.4.

2022 - 2030 2031 - 2040 2041 - 2050 2051 - 2060

2030 2030 2045 2055

No new coal-, oil-, and Oil-based power plants End Java-Sumatra Unbated coal-based power
unbated gas-based power of Life (EOL) Interconnection corridor plants End of Life (EOL)
plants post-2030 capacity increase to 8 GW
Java-Kalimantan
Interconnection corridor
RES holds 29% capacity CCS coal ramps to 4 GW capacity increase to 8 GW
2035
share (29 GW), dominated and Java-Nusa Tenggara
3.4 GW Java-Sumatra
by hydro 2050 Interconnection corridor
interconnection corridor
capacity increase to 3 GW
formation 3.5 GW Java-Kalimantan and
CCS coal pilot at 1 GW 1.5 GW Java-Nusa Tenggara
capacity CCS coal ramps to 16 GW
interconnection corridor
First COD of CCS gas at
2040 formation
16 GW
RES holds 50% capacity
share (94 GW), dominated RES holds 67% capacity
by solar and hydro share (204 GW), dominated 2060
by solar and hydro
RES holds 75% capacity
CCS coal ramps to 10 GW share (308 GW), dominated
CFPP retirement targets
by solar and hydro
Grid interconnection targets
RES targets CCS coal peaks at 29 GW
CCS gas peaks at 26 GW
CCUS targets

Figure I. 4: Decarbonization Targets 2030 – 2060

NET ZERO EMISSION SCENARIO

PLN has projected GHG Emission through RCP 4.5 and RCP 8.5 for physical risk and ARED for energy transition,
which projects emission intensity in the electricity sector. RCP scenarios 4.5 and 8.5 reveal that greater power
generation capacity is required for both scenarios compared to a scenario without considering climate change
risks. Consequently, this will result in additional investment requirements for PLN to meet future electricity demand
due to climate change impacts. Meanwhile, the ARED scenario is used as the Company's interim target toward NZE
2060 by accelerating the implementation of renewable energy.

Under the ARED scenario, with projected economic growth and increased electricity supply, emissions are
expected to reach 334 million tons of CO2by 2030, with an emission intensity up to 0,73 kg/CO2 kWh. This reduces
absolute GHG emissions by around 99 million tons compared to the BAU scenario and decreases by 15.7% of GHG
emission intensity by 2030 based on the projections in the RUPTL. These targets have been aligned with the national
emissions reduction targets outlined in the NDC and are set as short-term targets in PLN's business strategy.

Over the long term, PLN aims to achieve NZE by 2060, which will entails a 100% reduction in GHG emissions
intensity from 0.892 tons of CO₂e/MWh in 2021 to zero by 2060. Absolute GHG emissions in the long term are
targeted to reach zero by 2060, a decrease of 1,057 million tons of CO₂e compared to the BAU scenario (shown in
Figure I.5).

Through the ARED scenario, PLN is also planning to enhance the capacity of the renewable power plants to 75% and
gas capacity enhancement by 25%. This scenario will increase the capacity of baseload NRE to 33 GW and VRE to 28
GW in 2040.

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ARED¹ scenario as Bridging Towards Net Zero Emissions 2060

Emission intensity, tCO2/MWh Capacity share by technology for net zero scenario, %

Power sector CO2 projection, million to CO2/year 2% 3% 5%

1,057 12% 8%
19%
22%
30% 50%
27% 61%
23%

Accelerated RE Development
- net zero scenario 23% 20%
310 334 325 321 52%
247 272 43% 15%
224
154 25% 22% 3%
16%
0 6% 4% 3% 5%
2020 2025 2030 2035 2040 2045 2050 2055 2060 2020 2030 2040 2050 2060
0.89 0.73 0.50 0.21 0 New energy Coal CCS³ + Gas CCS Oil & Other

1. Accelerated Renewable Energy Development with coal down phase vRE Gas² Coal
2. Gas with hydrogen cofiring up to 75% in 2060 Baseload RE
3. Coal CCS with biomass cofiring up to 30% in 2060

Figure I. 5: The BAU Scenario Compared to ARED

SCOPE OF GHG REPORTING

Based on the Director's Circular No. 0025 of 2022 Scope 3 Emission Details
concerning to the Standard Procedure for Green- The calculation for Scope 3 emissions includes the
house Gas Emissions Management, PLN has identi- electricity purchased from IPPs to consumers,
fied the following GHG Scopes: determined by multiplying the IPP electricity supplied
to PLN customers by the emission intensity per type of
Scope 1 Emission Details IPP plant. The components of Scope 3 components
GHG Scope 1 emissions originate from the combust- include:
ion of fuel to produce electrical energy, following the • Purchase of electricity from private power plants
guidelines outlined in the Electricity Sub-sector GHG that are sold to PLN consumers.
Calculation and Inventory Guideline, which is based • Fuel consumption by non-PLN group owned
on the 2006 IPCC Guideline for National Greenhouse transportation modes in the activities of transporting
Gas Inventories. The Scope 1 components include: coal, gas and oil fuel for power plant needs.
1) Combustion of power plants fuel • Goods and services purchasing.
2) Fuel burning in generators • Addition of fixed assets.
3) Operational vehicles
4) SF6 release Scope 1, 2, 3 Emission Details
In 2023, PLN's overall GHG emissions across scopes
Scope 2 Emission Details 1, 2, and 3 reached 269.91 million tons of CO2e, a
GHG Scope 2 emissions are classified as indirect 6.87% increase from 252.57 million tons of CO2e in
emission, encompassing emissions from the power 2022. This increase in emissions is in line with the
plant purchased or obtained. Specifically, from the Company's production increase, where the product-
energy loss on electrical energy purchased from the ion process is increasing the emissions. This increase
IPPs and this is determined by multiplying the energy is attributed to heightened business activities and
loss by the emission intensity. increased mobility, in line with the Company's
The Scope 2 components include: operational needs. The increases in overall emissions
• Loss of electricity purchased from IPP Power in 2023 primarily contributed to a rise in indirect
Plants. emissions (Scope 2 and Scope 3) related to the
• Electricity consumption of PLN units and o ices purchase of IPP electricity. The emission data for 2023
from the distribution network. not only included emissions from power plants but
also included activities beyond the power plants.

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METRICS & TARGETS

GHG EMISSION REDUCTION TARGET
To achieve the NDC by 2030 and NZE by 2060, PLN conducts decarbonization programs by increasing NRE power
generation capacity up to 20.9 GW and implement other short – term strategic initiatives until 2030.

Table I. 1 Target and Performance for Decarbonization Program 2023

GHG Emission Reduction Target Ton CO2

2023 2022 2021
Initiatives
Target Realization Realization
Electricity Production and 1,911,578 3,366,561 2,031,809 821,216
NRE Generation

CCT 3,882,173 4,230,187 4,230,187 680,970

Conversion from
546,287 1,057,371 566,350 386,804
GFPP to CCPP
Biomass Co-firing Total 648,795 1,051,063 595,901 269,489
GHG Emission Reduction

Total GHG Emission Reduction 6,988,833 9,705,182 6,043,594 2,158,480

In 2023, PLN's decarbonization program successfully reduced GHG emission by 9,705,182 tons CO2, surpassing
the set target of 6,988,833 tons CO2. The largest reduction was from the CCT initiative that reached 4,230,187 tons
CO2. PLN will continue to enhance its GHG reduction initiatives with a target of 10,851,603 tons CO2e in 2024.

CARBON EMISSION AND INTENSITY

In the ESG Performance Report 2023, the Company improved the accuracy of calculating Scope 2 and 3 GHG
emissions from IPP Plants by using average emission intensity data per type of IPP Plant. The use of emission
intensity data by IPP plant type also increases the credibility of the calculation as the data has been verified by the
Ministry of Energy and Mineral Resources through DGE. Therefore, data has been updated, especially for the 2022
and 2021 GHG emission calculations which are presented in Table I.2.

Table I.2 Total Emission based on Scope

EMISSION
Emission UNITS
Units 2023
2023 2022
2022 2021
2021

SCOPE 1 TOTAL EMISSIONS Million Ton CO2e 160.55 159.72 158.82

Generation Activities

Oil Fuel Million Ton CO2e 5.91 5.69 5.99

Gas Million Ton CO2e 23.33 20.80 22.12

Coal Million Ton CO2e 129.39 131.55 128.12

Non Generation Activities

SF6 Million Ton CO2e 1.28 1.35 1.26

Operational Vehicle and Generator Million Ton CO2e 0.64 0.33 1.35

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EMISSION
Emission UNITS
Units 2023
2023 2022
2022 2021

SCOPE 2 TOTAL EMISSIONS Million Ton CO 2e 8.83 8.23 6.50

Generation Activities

Loss of Energy for Electrical Energy

Million Ton CO 2e 8.54 7.60 6.43
Purchased from IPP Power Plants

Non Generation Activities

Consumption of Electrical Energy for Office

Million Ton CO 2e 0.29 0.63 0.07
Activities Purchased from IPP Power Plants

SCOPE 3 TOTAL EMISSIONS Million Ton CO 2e 100.53 84.63 74.36

Generation Activities

IPP Electric Energy Distributed to

Million Ton CO 2e 91.77 79.90 68.07
Customers

Non Generation Activities

Fuel consumption by Non -PLN Group

Owned Transportation Modes in the
Million Ton CO 2e 1.090 1.32 1.86
Activities of Transporting Coal, Gas, and Oil
Fuel for Power Plant Needs

Asset Purchases Million Ton CO 2e 3.81 1.08 2.57

Purchase of Goods and Services Million Ton CO 2e 3.86 2.33 1.86

TOTAL EMISSIONS GENERATION

Million Ton CO 2e 258.94 245.54 230.72
ACTIVITIES

TOTAL EMISSIONS NON GENERATION

Million Ton CO 2e 10.97 7.04 8.96
ACTIVITIES

TOTAL EMISSIONS GENERATION AND

Million Ton CO 2e 269.91 252.57 239.68
NON GENERATION ACTIVITIES

Total GHG emissions from generation and non-generation activities in 2023 reached 269.91 million tons of CO2e, an
increase of 6.86% compared to the previous year's 252.57 million tons of CO2e. This increase was due to a 4.97%
rise in electricity production. PLN has projected that GHG emissions in 2024 will amount to 284.889 million tons of
CO2e, despite an expected addition of 342 TWh in electricity production.

Table I. 3 Emission Intensity based on Electricity Production

Carbon
Carbon UnitUnits 20232023 20222022 2021
2021

Scope 1 Emission Intensity Ton CO2e/MWh 0.859 0.857 0.853

Scope 2 Emission Intensity Ton CO2e/MWh 0.712 0.695 0.689

Scope 3 Emission Intensity Ton CO2e/MWh 0.724 0.709 0.702

Scope 1,2, and 3 GHG Emission
Ton CO2e/MWh 0.801 0.797 0.797
Intensity

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GHG emission intensity for scope 1, 2, and 3 amounted to 0.801 tons CO2e/MWh in 2023, an increase from 0.797
tons CO2e/MWh in 2022. The GHG intensity for each scope is also visualized in Figure I.6. PLN's target for GHG
emission intensity in 2024 is set to be maintained at 0.84 tons CO2e/MWh, in line with the RKAP projection.

Table I. 4 Emission Intensity based on Revenue

Carbon Units
Unit 2023
2023 2022
2022 2021

Total GHG Emission Scope 1 and 2 Million Ton CO2e 169.38 167.95 165.32

Carbon Intensity of Scope 1 and 2 Million Ton CO2e/Million USD 0.0054 0.0059 0.0070

Carbon Intensity Trend of Scope 1 and 2 Million Ton CO2e/Million USD -0.1172 -0.0301 0.1473

The carbon intensity trend for Scope 1 and 2 shows improvement, with values consistently decreasing over the
past three-year average. A negative value indicates that the carbon intensity in each year is lower than the past
three-year average. The carbon intensity trend is also visualized in Figure I.7.

Carbon Intensity based on Electricity Production (Ton CO2e/MWh)

CO2e 0.880

0.830

0.870

0.730

0.680
2023 2022 2021
Scope 1 Scope 2 Scope 3

Figure I. 6: Carbon Intensity based on Electricty Production

Carbon Intensity Trend of Scope 1 and 2 based on Revenue (Ton CO2e/millionUSD)

CO2e
0.2000
0.1500
0.1000
F i g u r eI . 1 G r a p h i o
c f C a r b o nIn t e n s i tT
y r e n do f G e n e r a t i obna s e do n R e v e n u e
0.0500
0.0000
2023 2021
-0.0500 2022

-0.1000
-0.1500

Figure I. 7: Carbon Intensity Trend (Scope 1+Scope 2) based on Revenue

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CARBON EMISSION AND INTENSITY OF GENERATION

Until the issuance of this report, the verified carbon intensity data for generation is available only up to 2022, the
data of 2023 is still being verified.

Table I. 5 Carbon Emission based on Generation

Power Plants Units 2022 2021 2020

DPP Ton CO2e 3,430,901 3,440,538 3,816,766
CFPP Ton CO2e 120,162,159 117,566,690 116,035,808
GFPP Ton CO2e 1,265,953 2,371,191 2,829,839
CCPP Ton CO2e 14,677,241 15,245,442 13,072,678
GEPP Ton CO2e 3,705,651 - -

Based on data from 2020 to 2022, the largest CO2 emitters were CFPPs, contributing 85.47% in 2020, 84.81% in
2021, and 86.12% in 2022, excluding GEPPs. However, the addition of GEPPs decreased the emission contribution
of CFPPs to 83.89% in 2022. Emission reductions also occurred in other power plants, including DPPs, GFPPs, and
CCPPs. These improvements were primarily due to the increase of energy e iciency and the conversion of DPPs to
renewable energy and the conversion of GFPPs to CCPPs.

Table I. 6 Carbon Intensity Generation based on Electricity Production

Power Plants Units 2022 2021 2020

DPP Ton CO2e/MWh 0.60 0.58 0.58

CFPP Ton CO2e/MWh 1.04 1.03 1.02

GFPP Ton CO2e/MWh 0.67 0.79 0.82

CCPP Ton CO2e/MWh 0.45 0.46 0.42

GEPP Ton CO2e/MWh 0.47 - -

The carbon intensity based on electricity production has decreased by 15% for GFPPs and decreased by 2.17% for
CCPPs. However, there was a 3.4% increase in DPPs and a 0.96% increase in CFPPs. A comparison between the
2021, 2022, and 2023 data can also be seen in Figure I.8.

Table I. 7 Carbon Intensity Generation Trend based on Revenue

Power Plants
Power Plants Units
Units 2022
2022 2021
2021 2020
2020

DPP Ton CO2e/million USD -0.1726 -0.0029 0.1755

CFPP Ton CO2e/million USD -0.1200 0.0347 0.0853
GFPP Ton CO2e/million USD -0.5087 0.1060 0.4027
CCPP Ton CO2e/million USD -0.1140 0.1060 0.0079
GEPP Ton CO2e/million USD 0.0000 - -

Over the past three years, based on revenue, the carbon intensity trend showed an improvement for all power plant
types within PLN (Table I.7 and Figure I.9). This was reflected in the negative or decreased carbon intensity values,
indicating better performance compared to the average of the previous three years.

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Carbon Intensity based on Electricity Production (Ton CO2e/MWh)

CO2e
1.20

1.00

0.80

0.60

0.40

0.20

0.00
2022 2021 2020

DPP CFPP GFPP CCPP GEPP

Figure I. 8: Graphic of Carbon Intensity of Generation based on Electricity Production

Carbon Intensity Generation Trend based on Revenue (Ton CO2e/millionUSD)

CO2e 0.4500
0.3500
0.2500
0.1500
0.0500 2022
2021 2020
-0.0500
-0.1500
-0.2500
-0.3500
-0.4500
-0.5500
DPP CFPP GFPP CCPP

Figure I. 9: Graphic of Carbon Intensity Trend of Generation based on Revenue

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Table I.8 Increasing Emissions Compared to Increasing Production

Description
Description units
Units 2023 2022 2021
2021

kWh production including rental and purchase kWH 323,320,619,257 308,002,299,548 289,470,570,216

kWh output growth % 4.97% 6.40% 5.32%

Total GHG emissions and breakdown

TCO 2e 258,934,385 245,535,858 230,716,650
production
Non-production GHG emissions, scope 1, 2,
TCO 2e 10,977,974 7,037,976 8,961,606
and 3

Emission growth for power generation % 5.46% 6.42% 2.66%

Emission growth for non -power generation % 6.86% 5.38% 6.65%

GHG emission intensity TCO 2e/MWH 0.801 0.797 0.797

Growth emission intensity % 0.5% 0.0% -2.5%

TCO 2e
Emission per gross revenue 0.531 0.557 0.627
/Million Rupiah
Emission growth per gross revenue % -4.6% -11.2% -3.7%

TCO 2e /Million
Emission per gross revenue 8,075 8,297 8,969
USD

Emission growth per gross revenue % -2.7% -7.5% -5.2%

GHG EMISSIONS MANAGEMENT, MONITORING, AND

MEASUREMENT
PLN established a Standard Procedure for GHG Emis- Head O ice through the ETS Division. GHG audits
sion Management, as stated in Director's Circular No. and/or verification are conducted regularly.
0025 of 2022. This procedure regulates the organiza-
tion, responsibilities, authorities, and GHG emission PLN has incorporated GHG emission risk as part of the
management procedures, monitoring and evaluation. 2023 Company's Risk Profile. In March 2023, the
Company released an internal report on GHG emis-
To monitor the GHG performance under PLN, a SWR is sion-related risk in a Climate Disclosure Report. In
conducted biweekly. Through this forum, the ETS 2024, PLN will issue an updated Climate-related
Division reports GHG reduction performance by all Disclosure report as a continuation of the Company's
units in tonCO2 as an absolute GHG emission used as commitment to managing climate change risks.
KPI.

PLN also reports the GHG emissions to external

parties, by utilizing APPLE – GATRIK. APPLE-GATRIK is
a web-based tool for calculating and reporting GHG
emissions from generating units to the Directorate CO2e
General of Electricity, Ministry of Energy and Mineral
Resources. GHG emissions are reported for verifica-
tion, using a gradual mechanism that covers verifica-
tion at the PLN Parent Unit and verification at PLN

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RISK MANAGEMENT
GHG RISK MANAGEMENT
In 2023, GHG risks were e ectively managed and monitored using the PLN corporate risk management
mechanism. PLN also conducted Energy Transition Analysis, identifying several climate-related risks. These risks
were integrated into PLN's overall risk profile, and included:

Physical Risk
• Exposure of extreme weather to electrical infrastructure.
• Gradual changes in climate variables.

Rp Financial Risk:
• Inadequate funding scheme for renewable energy development.
• The rise of volatility in electricity costs.

Legal Risk:
• Changes in regulations that may hinder the initiatives to achieve NZE by 2060.
• Emerging opinions from law enforcers where energy transition programs may cause state
financial losses.

These risks are registered in the Directorate of Transmission and System Planning risk profile and ETS Division
risk profile. The ETS Division is responsible for monitoring and reporting these risks.

PHYSICAL CLIMATE RISK MANAGEMENT

PLN conducted studies regarding the physical risks of climate change a ecting its power system assets, including
supply and demand. A higher disruption of the transmission network may occur due to increased lightning strikes,
potentially causing power transfer interruptions or even blackouts. Extreme weather events, such as heavy rainfall
and prolonged drought, and the impact on electricity production from hydroelectric power plants.

In response to these physical risks, PLN through BOD's Regulation No. 0072 of 2021 established a guideline to
manage disasters (including physical climate risk) on PLN assets. PLN also instigated the necessary adaptation
measures, including elevating specific power plant areas, constructing tetrapods from FABA waste to prevent
abrasion, installing lightning detection and protection systems, and optimizing electricity production planning from
hydroelectric power plants. Additionally, PLN also constructed a flood control system and upgraded its drainage
system to improve its resilience.

IDENTIFICATION OF PHYSICAL AND TRANSITION CLIMATE RISK

PLN contributes to collective e orts in climate change adaptation and mitigation. The Company's climate risk
identification for transition and physical risk uses a financial impact approach. The climate physical risks are
shown in Table I.9.

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Table I.9 PLN's Physical Climate Risk for NZE 2060 Target

RISK
Physical Risk
PHYSICAL RISK Target
TARGET TypeOF
TYPE of IMPACT
Impact Risk Level
APPETITE
POWER GENERATION
Impact on non-renewable assets:
- reduced burning efficiency of power plants
- reduced power output of power plants
- impeded power plants' water update
- flooding
Heavy
Net-Zero Impact on NRE assets: Low (4)
precipitation
- damage to ground mounted solar infrastructure due to
flooding
- increased frequency for local grid maintenance
- increased sediment load that can reduce the storage capacity
of the reservoir
Heavy wind and Impact on non-renewable assets:
Net-Zero Low (3)
high sea waves reduced power outputs/shutdowns of power plants
Impact on non-renewable assets:
Jellyfish inflow Net-Zero Low (2)
reduced power outputs/shutdowns
Impact on non-renewable assets:
efficiency reduction of gas turbine, gas, and diesel engines
Impact on NRE assets:
- reduction of solar panel power generation efficiency by 0.5-
Heat
3% per 1-degree Celsius increase
waves/Heat Net-Zero Low (4)
- reduced lifespan of solar panels
stress
- decreasing overall efficiency of the wind turbine due to lower
air density and wind speeds
- thermal stress on wind turbine equipment leads to the
increasing of maintenance needs
Impact on NRE assets:
Droughts Net-Zero Low (3)
reduced power outputs
Impact on non-renewable assets:
Sea level rise Net-Zero - daily activity disruption for employees N/A
- higher frequency of flooding
Impact on NRE assets:
Wildfire Net-Zero N/A
damage to ground mounted solar
Impact on non-renewable assets:
Sea surface
Net-Zero - cooling water system efficiency reduction N/A
temperature
- higher frequency of jellyfish outbreaks
TRANSMISSION NETWORKS

Lightning Net-Zero Power failures and transmission equipment damage Low (2)

Heavy wind Net-Zero Power failures and transmission equipment damage Low (3)
Damaged equipment and plant shutdowns due to safety Low to Moderate
Flood Net-Zero
reasons (7)
DISTRIBUTION NETWORKS
Low to Moderate
Heavy wind Net-Zero
(7)
Heavy
Net-Zero Low (3)
precipitation Power outages
Flood Net-Zero Low (3)

Landslide Net-Zero Low (3)

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In addition to the physical risk, PLN has also identified the transition risk as shown in Table I.10. PLN plans to
increase the NRE capacity to 24.8% by 2030. The significant risks PLN faces during this energy transition include
securing adequate funding for the transition and managing the high-impact risk of shifting from CFPP to solar power
plants.
Table I.10 PLN's Transition Climate Risk for NZE 2060 Target

Risk Target Risk Level Treatment Measuremnet

Conduct a study on the asset

Energy transition from CFPP to solar power
(CFPP) values and its
plants can cause potential CFPP assets to be GHG Reduction
High (21) feasibility whether to be
stranded and increase the cost of solar power Target
retired or retrofitted into RE
generation.
power plants.

The condition of the Java-Bali electricity Conduct Demand Side

system that is still in an oversupply situation GHG Reduction Low to Management to ensure the
can hamper the development of intermittent Target Moderate (9) stability of electricity supply
NRE or VRE. and demand.

Co-firing technology with biomass requires

feedstock of up to 14 million tons per year to
achieve the target of 23% NRE by 2025, raising GHG Reduction
Combine biomass co-firing
concerns about the sustainability or Target High (21)
technology with hydrogen.
availability of feedstock and biomass prices
which can have an impact on increased cost of
supply.

Intermittent or VRE plants, such as solar power GHG Reduction Equipping solar power plants
plants and wind power plants, can interfere Target High (24) and wind power plants with
with system stability. weather sensors and/or BESS.

Government's plan to accelerate the

Developing local NRE, smart
development of interconnection transmission GHG Emission
High (23) grids, and regional balance
between electricity systems and between Intensity
policies.
islands.
Floating solar power plants have the potential Ensure the environment
to disrupt ecosystems and water quality and Low to compliance through
NDC
are vulnerable to water table activity and Moderate (9) environmental assessment.
stability.

Policy related to the implementation of carbon

GHG Emission Allocate budget for carbon tax.
tax per Law No.7 of 2021 with the lowest rate of High (23)
Intensity
IDR 30.00 per kgCO2e.

Increased cost of supply and subsidy need to Prepare alternatives funding

Net-Zero High (23)
meet the 23% RE target by 2025. for RE projects.
Prepare funding for low-
Net-Zero Low to carbon activities and reduce
The cost of electricity price volatility rises.
Moderate (7) funding for high emission
activities.
PLN must enhance
infrastructure, improve
Climate events might a ect the reliability of Net-Zero weather monitoring, control
High (23)
the electricity system. vegetation, increase
preparedness, and foster
collaboration.

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ENVIRONMENTAL
MANAGEMENT
PLN's environmental management focuses on waste and e luent management, non-GHG emission control,
and compliance with environmental regulations. The company is committed to reducing environmental
impacts by utilizing fly ash, managing hazardous waste, and implementing air quality measures. PLN has
identified environmental-related risks and implemented mitigation measures through adoption of pollution
control technologies, promotes circular economy, and ensures compliance with environmental regulations.

GOVERNANCE
COMPANY’S COMMITMENT
PLN's commitment to environmental sustainability can be seen in the policies and procedures it has established to
control the Company's environmental impact. In its Statement of Corporate Intents No. 0314 of 2022 related to the
Sustainable Business Principle, Director's Regulation No. 0110 of 2023 on Strategic Policy for Environmental
Protection and Management, and Safety, Occupational Health, Security, and Environment Policy, PLN has stated its
commitment to raising environmental awareness, managing waste responsibly or reducing solid waste, protecting
the environment, implementing an environmental management system, monitoring the Company's environmental
performance, reducing emissions, e luents, hazardous and non-hazardous waste, preparing regular reports and
consulting with stakeholders on environmental issues.

PLN has also committed to managing its solid waste in an environmentally responsible manner through several
programs, including fly ash bottom ash (FABA) management by increasing the use of FABA in a variety of products,
hazardous waste management by segregating, storing, and transporting it to approved disposal facilities, 3R
programs for non-hazardous waste. Additional initiatives include using water gallons instead of plastic bottles,
promoting paper-less work, and using double-sided paper.

PLN has demonstrated its strong commitment to wastewater and emission management, which includes reducing
wastewater and air pollution from its operations, installing wastewater treatment plants, using clean fuel,
improving operating practices, monitoring and controlling its wastewater as well as air emissions to ensure
compliance with environmental regulations.

Responsibilities have been delegated to sub-holdings through the Holding–Sub Holding Pact, which assigns
specific roles and responsibilities to each sub-holding. Environmental management is included in HSSE Division's
responsibilities. This division has been established, implemented, and maintains an environmental management
system based on ISO 9001:2015 and ISO 14001:2015 as part of environmental governance.

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EXECUTIVE RESPONSIBILITY
In relation to environmental management, the res- In 2024, through the ETS Division, PLN launched ESMS
ponsibility within the sustainability committee is to provide a framework to identify, assess, prevent or
allocated as follows: mitigate, evaluate, and communicate environmental
and social risks and impacts that may result from
Responsible Director: management and operational activities by PLN and its
Environmental Management is coordinated by the business partners. For the environmental aspect, the
Director of Legal and Human Capital, who is res- ESMS includes management guidelines for air quality,
ponsible for leading and managing strategies as well wastewater and water quality, and hazardous and
as supervising environmental aspects. non-hazardous waste.

Responsible Division: Responsible Management Level:

Supervision of Environmental Management in PLN • In each PLN Units, Environmental Management is
Group is managed by the EVP of HSSE Division. The managed by the HSSE Manager.
responsibility of the EVP of HSSE Division is to: • In each sub-holding and subsidiary, a chairperson
• Develop policies, guidelines, and management appointed by the authorized Leader or Director of
strategies of HSSE. the sub-holdings or subsidiaries manages the
• Implement guidance in the management of HSSE Environmental Management. PLN's ETS Division
functions across the PLN Group and ensure the monitors the implementation of environmental
HSSE management is in accordance with organi- management, which contributes to the sustain-
zational targets and objectives. ability performance of sub-holdings and sub-
• Measure, monitor, and evaluate the performance sidiaries.
of HSSE across the PLN Group. • Environmental Management supports the moni-
• Ensure alignment of plan, implementation, moni- toring of sustainability-related risks and oppor-
toring, and evaluation of business processes tunities through an integrated management
within the division for corporate policies related to system. This system requires both management
ESG. and employees to carry out activities such as
monitoring and environmental evaluation, with
approval from the EVP of HSSE Division.

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STRATEGY
As a state-owned electricity Company, PLN Group is dedicated to delivering the best service to the communities by
providing a ordable, accessible, and reliable electricity to stimulate the country's economy. As well as ensuring a
dependable electricity supply, PLN and its subsidiaries are also committed to environmental preservation,
particularly in areas near the power plants.

PLN's commitment to carry out environmentally friendly business activities is reflected in its achievement of
Beyond Environmental Compliance following a PROPER evaluation from the Forestry and Environmental Ministry.
PLN continually monitors pollution and mitigates environmental damage by pursuing clean production and
treatment technologies.

PLN has established environmental management systems for waste (hazardous and non-hazardous), e luents,
and non-GHG emissions. According to Government Regulation No. 22 of 2021 concerning the Implementation of
Environmental Protection and Management, FABA is categorized as non-hazardous waste, and PLN manages it
accordingly.

ENVIRONMENTAL MANAGEMENT SYSTEM

Compliance with environmental regulations • Company performance assessment in environ-

In 2023, 150 PLN units had complied with the Indone- mental management.
sian regulation and were evaluated by the Ministry of • Basics of environmental auditing.
Environmental and Forestry (MoEF). Of these, 39 units • Supervision of environmental program planning.
achieved beyond-compliance status for environ- • Monitoring and evaluation of environmental pro-
mental management, receiving Gold (20 units) and tection and management programs.
Green (19 units) PROPER awards. • ISO 14001:2015 Environmental Management
System.
Corrective actions to stimulate continual improve- • Environmental management policies.
ment • Environmental regulations (MoEF & Feasibility
PLN has established Procedure No. PT-HSSE-15 of Testing Team).
2019 that provides guidelines for implementing • Basics of compliance with environmental protec-
corrective actions to eliminate the causes of noncon- tion and management.
formity or potential nonconformity at PLN to prevent
recurrence. The corrective actions has 4 stages, Environmental performance records
including identifying nonconformity, reviewing non- PLN has developed the internal application to moni-
conformity/potential nonconformity, implementing tor the implementation of Environmental Perfor-
corrective action, and verification and closure of mance in all units and subsidiaries. This tool enables
corrective and preventive actions. PLN also provides PLN to e ectively manage and oversee environmental
HSSE academy and multiple training courses on management and monitoring, commencing with the
environmental management systems based on the ownership of environmental documents, permits,
ISO 14001:2015 module. The Company also provides technical approvals, and hazardous materials and
external training to improve the employees' capabili- hazardous waste. Each division is required to update
ties in environmental management or related matters, the data at least once a month.
including:
• Environmental monitoring training. Identification of products, activities and services
• Permits and land clearance. that have a significant impact on the environment
• Preparation and evaluation of environmental As PLN activities encompass project construction,
documents. electricity production, distribution, and transmission,

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it is crucial to ensure that all activities comply with the management guidelines, including environmental
policy and arrangements in the environmental aspects such as air quality, wastewater and water
document. These policies are specifically mentioned quality, and hazardous and non-hazardous waste.
in environmental management systems for pre- Additionally, the Company's environmental-related
operation, operation period, and post-operation of issues are regularly addressed both externally and
power plant activities. Power plant managers are internally through the Earth Day commemoration, an
obligated to execute actions as recommended in the event that has been held annually since 2021.
EIA and report them monthly. The reports are
monitored and supervised by the HSSE division and Environmental programs
are also considered key performance indicators for PLN has implemented a number of environmental
each unit. programs and activities, making tangible contribu-
tions to environmental preservation. As of the end of
Internal and external communications on environ- 2023, the Company's costs amounted to 688.11 billion
mental management issues rupiah for environmental management programs to
PLN has instigated Procedure No. PT-HSSE-03 of fulfill environmental compliance and 87.88 billion
2019, that covers the communication of ideas or rupiah for environmental investments. Additionally,
issues by the organization or individuals outside PLN's PLN spent 92.69 billion rupiah on environmental
HSSE division. It governs communication with internal management initiatives related to CSR programs, a
and external parties, specifies the environmental notable increase from the 47.02 billion rupiah costs in
issues to be communicated, and outlines the appro- 2022. These programs included flora and fauna
priate forms of communication for the EMS. conservation, waste-to-energy through co-firing, clean
water and public sanitation facilities, informal schools,
For external communication, PLN engages in sociali- and corporate environmental care programs.
zation with the local communities in project areas
during the early stages of a project. In 2023, PLN EMS certification
conducted a workshop for its partners related to the PLN has implemented ISO 14001:2015 as the
market sounding of the ESMS. The ESMS provides a standard for its environmental management system,
framework to identify, assess, prevent or mitigate, covering the management of power production,
evaluate, and communicate environmental and social operations, and maintenance services. This applies to
risks and impacts. By 2024, the ESMS will be launched all units and sub-holdings whose business processes
by the ETS division, and encompasses several significantly interact with the environment. To date, 25

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out of 46 parent units holding, or 54%, have obtained

ISO 14001:2015 certification. This progress aligns
with PLN's goal of having all parent units certified
under the Integrated Management System, aiming for
100% certification by 2027.

External Environmental Audit

Based on Law No. 32 of 2009 and Government
Regulation No. of 2021, external environmental audits
are conducted by the Government through reviews of
a Company's compliance with the Environmental
Protection and Management Policy. To adhere to the
regulations, the Company submits its environmental
performance through SIMPEL, an application devel-
oped by the MoEF for reporting the environmental
management plan, monitoring plan, and implemen-
tation of required standards. This application is
mandatory for external audits by the ministry, ensur-
ing that the Company's environmental performance
complies with environmental standards.

As mandated by MoEF Regulation No. 3 of 2013, PLN's

HEPPs are required to conduct an environmental
audit every 5 years. This audit is mandated for HEPPs
with a dam height and area of ≥15 m and 200 ha,
respectively. This magnitude might have the potential
for accidents or emergencies that could cause
significant and widespread impacts on human health
and the environment.

In addition, PLN undergoes external audits by a

certification body every three years to verify that its
environmental management system meets the
criteria for ISO 14001:2015. This ISO certification is
required by the Ministry of Forestry and Environment
for achieving Beyond Compliance status in the annual
PROPER assessment.

Internal Environmental Audit

PLN has instigated a risk management policy to
address a wide range of potential risks, including
natural disasters, pollution, and environmental
damage. Within PLN, there are two approaches to
internal auditing: Internal Audit Unit approach, which
focuses on operational activities and performance
targets, and international standard approaches performed on an annual basis. The internal audit
focused on environmental management. mechanism has been included in Procedure No. PT-
HSSE-22 of 2020, as a guideline to ensure the e ective
An internal audit for alertness is a requirement for and consistent implementation of internal audits in
acquiring ISO 14001:2015 certification, and it must be PLN HSSE Division.

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NON-HAZARDOUS WASTE MANAGEMENT

Non-Hazardous Solid Waste Management
In PLN's business units, non-hazardous solid waste is generated from several operational and domestic activities.
For example, paper waste comes from work documents, plastic and packaging originates from the cafeteria, and
other waste such as boxes, glass, and metal results from daily activities.

Initiatives to reduce non-hazardous solid waste

PLN has implemented several initiatives to reduce solid waste, including:
• The utilization of two-sided paper
• Conversion of conventional paper to electronic paper (E-paper)
• The implementation of digital applications
PLN has implemented digital applications for providing information related to ERP SAP, employee's CVs, pay
slips, attendance records, and corporate risk reports.
• Plastic Waste Reduction
PLN has conducted initiatives in plastic waste reduction by instigating several policies, including:
PT PLN (Persero) Letter No. 0433 of 2018 concerning Plastic Waste Control.
PT PLN (Persero) Letter No. 0549 of 2018 concerning Plastic Waste Reduction in the PLN Group.
EVP HSSE Letter No. 00631 of 2018 concerning Plastic Waste Reduction in the Central PLN Workplace,
including waste management criteria in performance appraisals for parent units and subsidiaries.

Initiatives to reuse non-hazardous solid waste

PLN has initiated several initiatives to reuse solid waste, including:
• Reuse Wood Waste as Wooden Pallets
• Reuse Wood Waste as Wooden Signboards
• Reuse Wood Waste as Furniture
• Reuse Metal Waste as Material Racks

Initiatives to recycle non-hazardous solid waste

PLN has initiated a solid waste recycling program as stated in Procedure No. PT-HSSE-06 of 2019. This procedure
regulates aspects related to the control of non-hazardous waste, including solid waste treatment through recycling.
There are several recycling initiatives that have been implemented by PLN, including:
• Green Leaves Composting
• Organic Waste Recycling with Maggots
• Collaboration with Waste Banks and Local Communities

Other Initiatives
PLN also conducted other initiatives, including:
• An HSSE Talk with the theme "Circular Economy of Waste" with MoEF
• Competition for the best HSSE implementation in the 3R categories.

FABA Management
For managing FABA waste, all of PLN's CFPPs are equipped with FABA storage facilities, including Temporary
Storage Locations, FABA landfill facilities, and FABA utilization workshops.

Initiatives to recycle FABA

This initiative aims to transform FABA waste into viable products. FABA is used both internally by CFPP and
externally in partnerships with various o takers, including cement factories, batching plants, government entities,
MSMEs, and community groups.

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Other Initiatives
PLN's other initiatives, included:
• Providing directions to units and subsidiaries through the Director of MSDM Letter No. 25867 of 2021
concerning the Massive Utilization of FABA.
• Providing directions to units and Subsidiaries through the EVP HSSE Letter No. 8700 of 2021 concerning
Directions for FABA Management Activities related to the Implementation of Government Regulation No. 22 of
2021.
• FABA management criteria in performance appraisal for parent units and Subsidiaries.
• Providing directions to units and Subsidiaries for preparing FABA Management Roadmap.
• Monitoring FABA waste management monthly.
• Developing FABA management procedures (use of internal and external, storage of internal and external
transportation, stockpiling, emergency response, documentation, and reporting).
• Reviewing the potential use of FABA with the aim of promoting a circular economy.
• Supporting the proposed FABA management budget in the unit's RKAP in accordance with the FABA
Management Roadmap.
• Preparing a roadmap covering FABA management for the PLN Group during 2022 – 2031 as a basis for Holding
and Sub Holding for the Coal Fired Power Plant operator in planning FABA management.
• Carrying out a pilot project to accelerate FABA management at 8 CFPPs PLN Group units for the following usage
cases: utilization of FABA as non-structural concrete roads; utilization of FABA as backfilling material and
neutralizer of acid mine drainage; utilization of FABA as fertilizer and/or soil repairer; and utilization of FABA as a
layer of waste landfill cover.
• Holding a competition for the best HSSE implementation in the FABA utilization and 3R (reduce, reuse, recycle)
categories.
• Developing PLN's Standard No. SPLN U2.004-1:2022 related to the utilization of FABA for coal-fired power
plants.

HAZARDOUS WASTE MANAGEMENT

PLN uses several hazardous materials, such as that has been used in power transformers aimed
lubricating oil, gypsum, toner, and ion exchange at removing contaminants such as water, gas,
materials, for the operation and maintenance of solid particles, and organic compounds con-
electric generating machines. All PLN units have tained in the transformer oil.
facilities for storing hazardous waste, equipped with • Modification of process equipment. PLN uses
Technical Details of Hazardous Waste Storage and modified equipment and processes to reduce
Environmental Approval documents. Hazardous hazardous waste generated from the operation of
waste storage is typically located within the opera- the electricity generation activities.
tional area, reducing the need for long-distance • Regeneration of used resin. PLN has imple-
transportation and concentrating the waste in one mented a regeneration process for used resin that
location. PLN also collaborates with third-party is utilized for water treatment in wastewater
hazardous waste management companies that have treatment plants.
Environmental Approvals for the collection, trans- • Substituting single-use hazardous waste pack-
portation, utilization, treatment, and landfilling of aging with sustainable container. PLN has
hazardous waste. substituted hazardous waste packaging into
materials that can be reused or used over a long
Initiatives to reduce hazardous waste term.
PLN is committed to reducing its hazardous waste • Modification of WWTP. PLN has adjusted the
through several initiatives, including: WWTP to reduce hazardous waste sludge by
• Oil purifier technology for used transformer oil. Oil modifying the WWTP separators with the Parallel
purifiers are used to clean and purify insulation oil Plate Separator method.

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Initiatives to reuse hazardous waste Other Initiatives

PLN is committed to reusing its hazardous waste by PLN has also conducted other initiatives, including:
repurposing used batteries for solar cells. Monitoring hazardous waste management monthly
for parent units and subsidiaries.
Initiatives to recycle hazardous waste • Developing a business process model for
PLN is committed to recycling its hazardous waste by reporting the implementation of hazardous waste
implementing several initiatives, including: management.
• The utilization of gypsum as a raw material for • Preparing management procedures for hazar-
cement mixture dous waste, Polychlorinated Biphenyls, and
• The recycling of used lubricating oil asbestos for the distribution network and work
with international funding.
Initiatives to ensure proper disposal of hazardous • Awarding performance appreciation to units with
waste successful achievements in reducing solid waste,
PLN e ectively manages the hazardous waste from its e luents, emissions, and utilization of hazardous
plant operations, including oil waste, boiler crust, waste.
sludge, and other hazardous materials. This waste is • Hosting a competition for the best HSSE imple-
meticulously handled from its source to final mentation in the 3R implementation categories.
disposal. To ensure e ective management, PLN has
developed a hazardous waste management proce-
dure, outlined in Procedure No. PT-HSSE-05 of 2019.

EFFLUENT/WATER DISCHARGE MANAGEMENT

Initiatives to reduce, reuse, or recycle e luents
PLN manages e luent by treating it through both operational and non-operational processes at the plant. The
e luent is directed to the treatment plant to enhance its quality, ensuring compliance with environmental
standards.

In addition, PLN conserves the e luent through 3R programs. All business units are required to use water e iciently
to minimize wastewater production during operations, including generation, transmission, and distribution. PLN
also recycles wastewater by implementing tertiary treatment to produce a better quality of water.

Incident investigation and corrective actions related to e luent management

PLN investigates all incidents to determine the cause and to prevent future occurrences. The investigation process
follows the guidelines outlined in Director's Circular No. 13 of 2023 concerning Standard Procedure for
Occupational Safety and Health Management, Installation Safety, and Public Safety within PT PLN (Persero). The
corrective actions are stated in Procedure No. PT-HSSE-15 of 2019 that regulates all non-conformity and corrective
actions in all business units, including e luent management. Throughout 2023, there were no incidents of
significant chemical or hazardous spills that could pollute the water bodies.

Other Initiatives
PLN also conducted other initiatives, including:
• PT PLN (Persero) Letter No. 8711 of 2022 concerning Preliminary Information of PROPER Assessment
accompaniment and Instructions to fulfill the compliance requirement.
• PT PLN (Persero) Letter No. 14487 of 2022 concerning Training and National Certification especially for Water
Pollution Control Manager and Wastewater Treatment Operation Manager.
• Conducted HSSE Talk with the theme “Optimi-zation of Domestic Wastewater Treatment” with the Ministry of
Environment and Forestry and the Ministry of Public Works and Housing.
• PT PLN (Persero) Letter No. 40629 of 2022 concerning Beyond Compliance PROPER Accompaniment.
• Installation of a wastewater treatment plant or using third-party services.
• Assessment of environmental compliance performance related to contribution to the 3R of waste water.

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NON-GHG AIR EMISSION MANAGEMENT

Identification of relevant non-GHG air emissions Implementing a green fence program around the coal
PLN produces non-GHG emissions due to incomplete stockpiles and landfill areas.
combustion in its generation units. Identified non- In 2023, PLN continued its green fence program by
GHG emissions include NOx, SOx, PM, H2S, and NH3. planting trees around coal stockpiles and landfill
To manage these emissions, PLN has implemented air areas at CFPP units. This initiative aims to reduce the
pollution control technologies across its power plant impact of dust and coal emission on surrounding
systems. communities.

Initiatives to reduce non-GHG air emissions Installing a CEMS to monitor the quantity of emissions.
PLN has conducted a reduction initiative for non-GHG According to the MoEF Regulation No.15 of 2019 and
emissions, including: MoEF Regulation No.13 of 2021, PLN is required to
equip 188 stacks with CEMS. By December 2023, 175
Installation of dust control technology. stacks were equipped with CEMS, with the remaining
PLN has installed several dust control technologies to installations underway.
eliminate particulate matter in the CFPP:
• ESP: Installed in 39 Units Other Initiatives
• Bag Filter: Fixed in 5 Units PLN also conducted other initiatives, including:
• Multi Cyclone: Set in 3 Units • PT PLN (Persero) Letter No.18801 of 2022 con-
cerning Obligation to fulfill Environmental
Installation of SO2 emission control technology. Regulation especially for Emissions and FABA.
PLN has installed several SO 2 emission control • PT PLN (Persero) Letter No.14487 of 2022 con-
technologies in the CFPP: cerning Training and National Certification
• Flue Gas Desulphurization: Installed in 1 Unit especially for Air Pollution Control Manager and
(Tanjung Jati B CFPP) Operation Manager of Air Pollution Control
• Limestone System: Fixed in 18 Units Installation.
• Waterfilm: Installed in 1 Unit (Holtekam CFPP) • PT PLN (Persero) Letter No.40629 of 2022
concerning Beyond Compliance PROPER Accom-
Using Low NOx Burner technology to control NOx paniment.
emission during combustion. • Monitoring and Evaluation of fulfillment MoEF
PLN uses Low-NOx burners to reduce nitrogen oxide Decision No.15 of 2019 concerning Emission
(NOx) emissions. In 2023, the Low NOx Burner has Threshold of Thermal Power Plant.
installed in 13 CFPP units and 3 CCPP units. • Monitoring and measuring non-GHG emission at
159 power plants (Coal Fired Power Plants,
Carrying coal compacting on coal handling activities Renewable Power Plants, and Combined Cycle
at the Stockpiles. Power Plants).
In 2023, PLN implemented routine compacting • Evaluating environmental compliance perfor-
measures for coal handling activities to prevent self- mance in terms of the contribution to lowering
combustion and to reduce the production of fugitive non- GHG emission.
emissions.

Implementing dust irrigation at the coal stockpiles and

landfill areas.
In 2023, dust irrigation was routinely carried out at the
coal stockpiles and landfill areas at operating CFPP
units to reduce fugitive emissions (particulate matter)
at these sites.

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METRICS & TARGETS

ENVIRONMENTAL MANAGEMENT SYSTEM
PLN aims to fulfill its environmental compliance by creating an environmental management system as part of the
PLN integrated management system roadmap across all business units with managed certification of ISO
14001:2015. PLN’s Environmental Management Certification covers all processes in generation, transmission,
distribution, and related support activities across the electricity system in accordance with the business processes
of each unit. Recently, 54% of the units have been certified, which amounts to 25 out of 46 parent units, while several
remain solely implemented. PLN aims to obtain the ISO 14001:2015 certification for all units by 2027.

Table II.1 PLN units with ISO 14001-2015 certification

Status ISO
Status ISO
No Certified Unit
Certified Unit Certification Date
Ceritified Date Expiry Date
Expiry Date
14001:2015
14001 :2015
1 UIP SUMBAGSEL Certified 11/07/2022 10/07/2025
2 UIP JBB Certified 09/11/2022 08/11/2025

3 UIP JBT Certified 31/12/2021 30/12/2024

4 UIK TJB Certified 16/05/2023 15/05/2026
5 UIT JBB Certified 19/12/2023 18/12/2026
6 UIT JBT Certified 01/02/2022 31/01/2025

7 UIT JBM Certified 22/03/2023 08/03/2026

8 UID JAYA Certified 06/02/2021 05/02/2024
9 UID JATIM Certified 29/11/2023 28/11/2026
10 UIP3B SUM Certified 06/03/2023 05/03/2026

11 UIP3B KAL Certified 07/09/2022 06/09/2025

12 UIP3B SUL Certified 23/11/2020 22/11/2023 *
13 UIW BABEL Certified 26/09/2022 25/09/2025
14 UID SUMUT Certified 26/05/2023 25/05/2025

15 UID RKR Certified 14/01/2021 14/12/2023 *

16 UID LAMPUNG Certified 09/11/2022 08/11/2025
17 UID KALSELTENG Certified 03/12/2022 21/04/2024
18 UID SULUTTENGGO Certified 26/11/2021 25/11/2024

19 UID SULSELRABAR Certified 04/05/2021 03/05/2024

20 UIW PPB Certified 28/12/2021 20/12/2024
21 UIW NTB Certified 11/02/2021 10/02/2024
22 UIW NTT Certified 22/10/2023 21/10/2026

23 PUSHARLIS Certified 21/06/2022 20/06/2025

24 PUSLITBANG Certified 25/11/2022 24/11/2025
25 PUSDIKLAT Certified 23/11/2021 22/11/2024
*) As of the data cut-o on December 31, 2023, these certifications were still in the process of being renewed

Monitoring and Measurement of Environmental Management System

PLN has implemented an environmental management system based on ISO 14001:2015. This system is monitored
through the internal application, which o ers real-time information on environmental performance across all PLN
units.

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NON – HAZARDOUS WASTE

Non-Hazardous Solid Waste

Table II.2 PLN's Performance in Non-Hazardous Solid Waste Management

Parameter
Parameter Unit
Unit 2023
2023 2022
2022 2021
2021

Non-Hazardous Solid Waste

Ton 5,108.88 6,052.59 6,575.20
Generation
Non-Hazardous Solid Waste being
Ton 2,421.92 3,695.62 151.91
Reduced
Non-Hazardous Solid Waste being
Ton 14.61 20.36 36.27
Reused
Non-Hazardous Solid Waste being
Ton 1,886.32 3,083.89 1,036.05
Recycled

PLN has implemented solid waste management across all generation units. In 2023, PLN generated 5,108.88 tons
of non-hazardous solid waste, representing a 15.59% decrease from 2022. The percentage of waste being reduced,
reused, and recycled reached 47.4%, 0.28%, and 36.9% respectively. The 3R initiatives showed a decrease from
2022, when the reduction, reuse, and recycling rates were 61.06%, 0.33%, and 50.95%, respectively. The remaining
waste that has not been managed by PLN is handed over to third parties.

Table II.3 PLN's Waste Generation by Type

Waste Generation
Waste Generation
by Unit 2023 2022 2021
2021
byType
Type
Plastic Ton 77.04172 354.72902 152.9778
Paper Ton 59.74324 201.558944 242.5709
Metal Ton 70.6653 139.8662 1081.667
Glass Ton 7.283 8.958 11.034
Other Ton 122.85506 167.2041 149.2279
Food Waste Ton 78.11025344 124.397314 122.56465
Other Organic Waste Ton 283.57377 746.5822 771.403684

PLN also classifies non-hazardous solid waste into seven types. This classification is currently implemented only at
PLN Indonesia Power, PLN Nusantara Power, and the Tanjung Jati B Generation Parent Unit. Overall waste generation
decreased in 2023, with the most significant reduction being plastic waste with 78% reduction.

Monitoring and Measurement of Non-Hazardous Solid Waste Management

Non-hazardous solid waste management is monitored through the internal application that tracks environmental
performance metrics, including solid waste management and the 3R program every month. Additionally, this
application facilitates reporting on waste issues occurring in PLN’s units.

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FABA

Table II.4 PLN's Performance in FABA Waste Management

Parameter
Parameter Unit 2023 2022 2021

FABA Generation Ton 3,016,158 3,062,173 3,064,369

FABA being utilized

Ton 3,715,646* 2,240,991 878,933
(Recycled)
FABA being delivered to the
Ton 0 526,496 993,642
third party

FABA being stored Ton 0 294,686 1,191,894

Accumulated FABA being

Ton 6,635,910 7,335,385 7,040,699
stored

*) The utilization of FABA in 2023 exceeded 100%, taking the balance of FABA stored in the Waste Collection Site in 2022

By 2023, PLN improved FABA waste management by reducing 1.5% of FABA waste generated. PLN also successfully
recycled 3,715,646 tons of FABA, representing 123% of the total FABA generated. This recycling e ort reduced the
accumulation of FABA waste from 7,335,385 tons in 2022 to 6,635,910 tons in 2023.

A significant contribution to this achievement came from the Labuhan Angin and Nagan Raya CFPPs, which
e ectively addressed FABA generation through recycling initiatives. This reflects PLN's commitment to reducing
FABA waste, with the goal of achieving a minimum reduction of 60% in 2023. PLN plans to continue this initiative
with annual targets until 2031 (see Table II.5).

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PLN has established the following FABA Management targets for 2022 – 2031:

Table II. 5 FABA Management Targets 2022 - 2031

Year
Year
Target
Target
2022
2022 2023
2023 2024 2025
2025 2026
2026 2027
2027 2028 2029 2030
2030 2031
2031

Reduc- Reduction Reduction Reduction Zero increase of FABA deposits in the ash yards of the JMB regions
tion of of FABA of FABA FABA
FABA deposits in deposits in deposits in
deposits the the the
in the ash Sulmapana Sulmapana Sulmapana
yard and and Sumkal and Sumkal
Sumkal Regions by Regions by
Regions by a minimum 100% from
a mini- of 60% the 2021
mum of from the baseline.
30% from 2021
the 2021 baseline.
baseline.

Zero Zero Zero

increase of increase of increase of
FABA FABA FABA
deposits in deposits in deposits in
the ash the ash the ash
yards of the yards of the yards of the
JMB JMB regions JMB regions
regions

Increase Increase Increase Increase Increase Increa- Increa- Increa- Increa- Increa- Increa-
in FABA FABA FABA FABA FABA se FABA se FABA se se FABA se se in
utiliza- utilization utilization utilization utiliza- utiliza- utiliza- FABA utiliza- FABA FABA
tion by a mini- by a by a tion by a tion by a tion by a utiliza- tion by a utiliza- utiliza-
mum of minimum minimum mini- mini- minimu tion by mini- tion by tion by
55% from of 60% of 65% mum of mum of m of a mini- mum of a mini- a mini-
the 2021 from the from the 70% 75% 80% mum 90% mum mum of
baseline 2021 2021 from the from the from the of 85% from the of 95% 100%
baseline baseline 2021 2021 2021 from 2021 from from
baseline baseline baseline the baseline the the
2021 2021 2021
base- base- base-
line line line

Reduc- Reduce Reduce Reduce Reduce Reduce Reduce costs by a minimum of 85%
tion of costs by a costs by a costs by a costs by costs by from the 2021 baseline.
FABA minimum minimum minimum a mini- a mini-
manage- of 15% of 30% of 45% mum of mum of
ment from the from the from the 60% 75%
costs 2021 2021 2021 from the from the
baseline baseline baseline 2021 2021
baseline baseline

Notes:
• Sulmapana: Sulawesi, Maluku, Papua and Nusa Tenggara
• Sumkal: Sumatra and Kalimantan
• JMB: Java, Madura, and Bali

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HAZARDOUS WASTE
Table II. 6 PLN's Performance in Hazardous Waste Management

Parameter
Parameter Unit
Unit 2023 2023 2022 2022 2021 2021

Hazardous waste generation Ton 155,823.04 177,878.00 98.490.97

Hazardous waste being managed
Ton 155,823.04 177,878.00 98.490.97
(stored, utilized, processed, landfilled)
Hazardous waste being reduced Ton 1,439.74 1,727.05 1,917.07

Hazardous waste being reused Ton 5.39 6.84 6.14

Hazardous waste being recycled Ton 85,448.22 158,335.54 86,820.41

In 2023, PLN managed hazardous waste including, used oil, battery waste, gypsum waste and others. Detailed
information on the types of hazardous waste can be found in the PLN Sustainability Report 2023. Total hazardous
waste generation in 2023 amounted to 155,823.04 tons, a 12.40% decrease from the previous year.

The total hazardous waste being managed by 3R in 2023 amounted to 55.76% of total waste generation, while the
remaining waste will be stored or landfilled. The percentage of hazardous waste to be reduced, reused, and
recycled in 2023 was 0.92%, 0.0035%, 54.83%, respectively, a decrease from 2022, which was 0.97%, 0.0038%,
89.01% respectively.

Monitoring and Measurement of Hazardous Waste Management

PLN monitors hazardous waste management using the internal application, which provides monthly performance
across PLN's business units. In addition, PLN reports its environmental management performance to SIRAJA
LIMBAH, a website provided by the MoEF to monitor the Company's waste management. PLN also submits
hazardous waste manifest reports through FESTRONIK, providing electronic manifest data that includes
information from the producer, transporter, recipient, and MoEF.

EFFLUENT/WATER DISCHARGE
Table II.7 Volume of Treated E luent and Discharged Destination
Effluent
E Discharge
luent Discharge
by Destination Unit 2023 % 2022 % 2021
2021 %
by Destination
Surface Water (River
Million m3 11,211.37 78.91 6,229.00 45.84 0.003 0.0003
and Reservoir)

Ground Water Million m3 0.01 0.00 7,360.75 54.16 858.74 99.99

Sea Water Million m3 2,996.23 21.09 0,019 0.0001 0.006 0.0007

Handed over to third
Million m3 0.00 0.00 0.000024 0.00 0.00 0.00
parties
Total Million m3 14,207.61 100.00 13,590.66 100.00 858.75 100.00
*) In 2021, water data was taken only from the Gold and Green PROPER power plants, while for 2022 data was sourced from the PLN Group Unit
but did not cover the entire unit. In 2023 data has been calculated from 246 power plant units, and a new calculation cut-o was implemented.

In 2023, PLN treated 100% of the e luent and ensured compliance with quality standards. The e luent will be
redirected back to the water body or reutilized. PLN has a target to maintain 100% of the e luent treatment and
increase the percentage of wastewater reuse for all PLN's business activities by 2024.
Monitoring and Measurement of E luent Management

PLN regularly documents e luent management activities, including measurements and reporting of issues, in the
internal application on a monthly basis.

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NON-GHG AIR EMISSION

In 2023, the emission reduction target applied only to the PROPER beyond compliance units and has been
implemented on the ESG Dashboard since 2022. As per the MoEF Regulation No. 15 of 2019 on Thermal Power Plant
Emission Standard, the parameters included in the review of non-GHG emissions are shown in Table II.8

Table II.8 Non-GHG Parameters

Power Plants
Plants SOx
SO x NOx
NO x Particulate
Particulate NH33 H 2S

Coal-Fired ü ü ü
Gas ü ü ü
Combined Cycle (Steam
and Gas)
ü ü ü

Diesel ü ü ü
Geothermal ü ü ü ü ü
Diesel and Gas ü ü ü

PLN is committed to installing more air pollution control devices, using more low-NOx burners, and developing new
technologies to further reduce emissions. The calculation of the non-GHG emission, taken from the Green and
Gold-winning power plants, as follows:

Table II.9 Non-GHG Emissions

Parameter Unit 2023 2022 2021

SOx Ton/million USD 5.4379 8.1526 8.9773

NOx Ton/million USD 5.1668 10.1247 11.8021

Particulate Ton/million USD 2.3452 1.3164 1.7079

NH3 Ton/million USD 0.0348 0.0002 0.0004

H 2S Ton/million USD 0.1004 0.0007 0.0007

Note:
• Calculation of Non-GHG Emissions only included for units with PROPER Beyond Compliance
• In 2023, there were 7 additional generation units with PROPER Beyond Compliance

In 2023, the intensity of PLN's non-GHG emissions based on revenue increased for particulate, NH₃, and H₂S levels,
while SOx and NOx levels decreased compared to the previous year. PLN has also established non-GHG emission
reduction targets from 2021 – 2030, which are shown in Table II.10.

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Table II. 10 Non-GHG Emission Reduction Targets 2021 - 2030

Year
Target
2021 2022 2023 2024 2025 - 2030
2025-2030

Reduction of non Development of Monitoring Monitoring Monitoring Monitoring

GHG emission emission databases emission emission emission emission
concentration for from power database for database for database for database for
3 groups of generation units. follow-up and follow-up and follow-up and follow-up and
emission coaching coaching coaching coaching
source: GFPP - Development of flow purposes. purposes. purposes. purposes.
CCPP, CFPP, diagrams for
and GEPP environmental Reduction of non - Reduction of Development of Reduction of
database internal GHG emissions non-GHG internal non-GHG
application. load: SO 2, NOx, emissions load: monitoring emissions load:
PM (phase 1: 14% SO2, NOx, PM application as a SO2, NOx, PM
Coding for internal reduction from (phase 1: 14% management (phase 2: 25%
application. baseline). reduction from dashboard for reduction from
baseline). air and water baseline).
Socialization of quality.
internal application
filling. Reduction of
non-GHG
Development of emissions load:
analysis methods to SO2, NOx, PM
establish emission (phase 1: 14%
baselines. reduction from
baseline).
Reduction of non -
GHG emissions
load: SO 2, NOx, PM
(phase 1: 14%
reduction from
baseline).

Monitoring and Measurement of Non-GHG Air Emission

PLN conducts air emission monitoring by implementing CEMS. This system measures the concentration of
emission parameters coming out of the stack and provides real-time readings.

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RISK MANAGEMENT
PLN continues to prevent environmental management risks through several mitigation opportunities. The
environmental management-related risks are shown in Table II.11.

Table II.11 Risk Mitigation of Environmental Management

Risk Related Metric & Target Risk Level Treatment Measurement

Risks Related Metric & Target Risk Appetite Treatment Measurement
Installation and
maintenance of pollution
control technology.
Administrative penalties if
Environment management Low (2)
quality criteria are not met Complying with quality
standards regulations in
accordance with
government regulations

Develop OHS policies that

include preventive
measures for work -related
The declining health of illnesses.
workers exposed to air
pollution from coal -fired Organize regular
Environmental High (20)
power plants may reduce socialization related to OHS
management
productivity and increase management.
workers' health insurance
costs. Medical check-ups
routinely refer to worker
risks and are mapped out in
a health matrix.

Develop sustainable
products from FABA.

Identify business
opportunities, improve
Receiving administrative
Low (5) infrastructure, and support
sanctions for failure to FABA management
circular economy initiatives.
manage FABA.
Fulfillment of FABA
utilization documents in
accordance with
government regulations.

Receiving a Red or Black

Implement environmental
PROPER rating due to Environmental Low (2)
management measures
failure to manage the management
environmental impact

Implement environmentally
Respiratory irritation friendly technologies for
caused by prolonged Environmental Low (2) dust control and safe
exposure to dust, resulting management processing, while
in long-term health issues. collaborating with other
environmental agencies.

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RESOURCE
MANAGEMENT

PLN strives to achieve sustainable resource management through energy e iciency and 3R water programs.
The Company has identified resource-related risks and implemented mitigation strategies through asset
management, stakeholder coordination, and sustainable practices. PLN also monitors and improves
resource e iciency, aiming to increase the use of renewable energy and recycled water, while addressing
future challenges like water scarcity and energy demands.

GOVERNANCE
COMPANY’S COMMITMENT
PLN has committed to implementing resource management through optimization and e iciency of water and other
raw material, including energy source, which is reflected in the Company's corporate policies, stated in Statement
of Corporate Intent No. 0314 of 2022 relating to Sustainable Business Principle, and Safety, Occupational Health,
Security, and Environment Policy . PLN has initiated better water management for its electricity production process
and supporting activities through the 3R program and reduced energy reliance on non-renewable resources as well
as improved its e iciency.

EXECUTIVE RESPONSIBILITY
In terms of resource management and water risk Responsible Division
management, in the sustainability committee, the Supervision of Resource Management in PLN Group is
responsibility to manage these aspects is allocated as managed by the EVP of HSSE. The responsibility of the
follows: EVP of HSSE is related to:
• Develop HSSE policies, guidelines, and manage-
Responsible Director ment strategies.
Resource management is coordinated by the Director • Implement guidance in the management of HSSE
of Legal and Human Capital, who is responsible for functions across the PLN Group and ensure the
leading and managing strategies as well as super- HSSE management is in accordance with organi-
vising resource management. zational targets and objectives.
• Measure, monitor, and evaluate the performance
Water Risk Management is coordinated by the Direc- of HSSE across the PLN Group.
tor of Generation Management, who is responsible for • Ensure alignment of plan, implementation,
leading, planning, executing, evaluating, and conduc- monitoring, and evaluation of business proces-
ting the generation management functions, managing ses within the division with corporate policies
performance and standardizing asset management related to ESG.
practices of the Company and its sub-holdings/
subsidiaries, as well as settling matters with IPP.

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Director of Generation Management

EVP of Generation Control

and Operation and IPP

Indonesia Power Sub-holding Nusantara Power Sub-holding

Director of Gas Operation Director of Operation

VP of Operation & Maintenance

VP of Primary Energy
Control and Planning
Planning and Control II
of New and Renewable Energy

Figure III. 1: Water Risk Management Structure

Supervision of Water Risk Management in the PLN result from management and operational activities by
Group is managed by the EVP of Generation Control PLN and its business partners.
and Operation and Independent Power Producer. The
responsibility of the EVP of Generation Control and Responsible Management Level:
Operation and Independent Power Producer is related • In each PLN Unit, Resource Management is
to: managed by the HSSE Manager.
• Plan and strategize operational e iciency for • In each sub-holding and subsidiary, Resource
power generation to adjust the required gener- Management is managed by a chairperson who is
ation capacity, appointed by the authorized Leader or Director of
• Ensure the control of the power generation the sub-holding or subsidiary. The implemen-
reports, HSSE management, and the supervision tation of resource management, as part of the
of the performance, risk management, and sustainability performance of sub-holdings and
compliance of the Generation Parent Unit and subsidiaries, it is monitored by the ETS Division.
Subsidiaries. • In each PLN Unit, Water Risk Management is
• Ensure the planning, implementation, and eval- managed by a chairperson who is appointed by
uation of all business processes in the Division the authorized Leader or Director of the sub-
are based on the principles of good corporate holdings or subsidiaries.
governance, risk management, and compliance, • In Indonesia Power sub-holding, water risk man-
including implementing checks and balance agement is managed by the VP of Primary Energy
using the 4 Eyes Principle for critical business pro- Planning and Control II Division under the super-
cesses within the 3 Lines Model framework vision of the Director of Gas Operation.
• In Nusantara Power sub-holding, water risk
In 2024, PLN, through the ETS Division, launched the management is managed by the VP of Operation &
ESMS to provide a framework to identify, assess, Maintenance Control and Planning of New and
prevent or mitigate, evaluate, and communicate envi- Renewable Energy Division under the supervision
ronmental and social risks and impacts that may of the Director of Operation.

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STRATEGY
Based on the Statement of Corporate Intent No. 0314 of 2022 relating to Sustainable Business Principle, PLN has
included resource e iciency as one of the aspects to develop Corporate's Sustainability Principles. PLN also has
long-term strategies that will lead to clean energy and integrating environmental risk management including water
and energy into the Company's business activities

ENERGY EFFICIENCY PROGRAMS

PLN has conducted programs to escalate energy e iciency. PLN will improve business processes by increasing
automation, centralization, and digitization in distribution to minimize losses. This includes modernizing
distribution networks to support energy transformation programs by leveraging the Internet of Things and artificial
intelligence, as well as implementing Automated Metering Infrastructure (AMI).

WATER MANAGEMENT PROGRAMS

For water use management, PLN has implemented PLN has also implemented closed-cycle innovations
several water conservation programs, including to enhance the e iciency of operational water uses by
rainwater harvesting and water reuse. In 2023, a total reusing leachate from ash landfills and storing it in ash
of 39 PLN power plant units successfully adopted run-o ponds. The leachate will be used for ash
water recycle/reuse technology and systems in their watering to reduce dust spread in landfills.
operations. One notable example is the Tanjung Jati B
power plant in Central Java, which utilizes 'reverse To ensure that the Company does not harm the
osmosis' as an advanced treatment process to community water sources, PLN has instigated several
improve water quality, rendering it suitable for various e orts including:
operational activities within the plant. • Monitoring of su iciency of water volume. When
PLN uses water for operational or related activities, the su iciency of water volume is not accom-
such as: plished due to a long dry season, PLN conducted
• Power plant operations a Weather Modification Technology to trigger the
• Turbine lubrication occurrence of rain.
• Cooling towers • Adhering to ministerial regulations concerning
• Water treatment the maximum area limit for floating solar power
plants. Based on the Ministry of Public Works and
PLN also encourages e icient water use through the People's Housing Regulation No. 6 concerning
3R program for water management, including: Reservoir by 2020, the floating solar power plant is
• Recycling water for non-potable utilization: limited to only 5% of the reservoir area. Therefore,
cooling power plants, boiler make-ups, irrigating the floating solar power plant does not disrupt the
corps, and toilet flushing. use of water by the community.
• Protecting water resources: reducing pollution • E iciency Program. PLN has promoted water
and managing water demand, raising awareness e iciency through a 3R water management
of water conservation in communities, installing program. As of 2023, PLN successfully conserved
water meters to track water consumption. 7,961 million m3of water.
• Water-saving program: changing the operational
scheme and installing low-flow showerheads and PLN is conducting a scenario analysis for water-
faucet aerators. related outcomes. PLN classified it into 3 scenarios:
• Improving the water management practices: leak • The current trend scenario: when fossil fuels still
repair detection and water conservation aware- dominate the energy mix. In this scenario, with a
ness training for employees. projected 40-50% penetration of renewable

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energy technology by 2050, PLN has identified potential challenges regarding water consumption, such as a
growing need for e ective water management. To address this challenge, our business strategy emphasizes the
implementation of water-e icient technologies and the promotion of responsible water practices, while
safeguarding water resources.
• The accelerated transition scenario: when the Company starts to focus on the rapid evolution of renewable
energy technologies. In this scenario, with a penetration of renewable energy surpassing 50% by 2050, the
Company recognizes the importance of proactive planning. Our business strategy emphasizes collaboration
with stakeholders and the adoption of innovative technologies to ensure a sustainable balance between
renewable energy goals and responsible water use.
• The full energy transition scenario: when renewable energy fully replaces fossil fuels. Based on this scenario,
PLN identified that there will be a water implication due to widespread renewable energy implementation.

WATER RISK MANAGEMENT

PLN emphasized a comprehensive assessment to medium-high category by 2030, 2050, and 2080.
identify activities that directly withdraw water in Therefore, there will be 16 power plants included in
water-stressed areas and have a potential impact on PLN’s long-term water stress mitigation plans.
the Company’s business. Out of 1,733 power plants,
PLN selected 246 as a sample for the analysis At the end of 2023, PLN initiated a water risk manage-
process. This selection was based on the 2022 ment strategy to address water scarcity caused by
baseline in the Sustainability Report, making it easier prolonged droughts which a ected its hydropower
to analyze. plants. The strategy includes the adoption of weather
modification technologies aimed at enhancing rainfall
In the current examination, the water stress analysis in targeted areas. The proposed technologies for this
conducted using the WRI’s Aqueduct Water Risk Atlas initiative include the use of airplanes, UAV drones, and
showing that 17 power plants are directly withdrawing ground-based generators. The standard procedure for
water in areas of High (40-80%) and Extremely High the implementation of these technologies will be
(>80%) water stress, with 13 located in areas of carried out in 2024 with the selected locations in three
Extremely High-water stress. Examples of such power watersheds, including Brantas (Sutami HEPP),
plants are Sumbawa GEPP, Pemaron CCPP, Labuhan Citarum (Cirata HEPP), and Mamasa (Bakaru HEPP).
DPP and others. However, one of the 17 power plants In 2024, PLN will o icially join the Alliance for Water
will be excluded from long-term plans due to a Stewardship as a strategic step to enhance its water
projected decrease in water stress levels to the management capabilities.

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METRICS & TARGETS

ENERGY
Energy Consumption

Table III. 1 Volume of Energy Source Usage

EnergySources
Energy Source and
andTypes
Types Unit
Unit 2023
2023 2022
2022 2021
2021
Oil Fuel Kilo liter 2,376,502 2,269,102 2,447,119

Coal Ton 69,222,936 70,444,162 68,474,268

Non-Renewable Energy
Natural Gas MMSCF 417,039 381,620 397,765

Biofuel Kilo liter 848,451 718,807 643,725

Renewable Energy Biomass Ton 990,777 585,663 282,628

Table III. 2 Energy Sources for Electricity Production

Value of Energy Used from Energy Sources for Electricity Production

GigaJoule
Energy Sources and Types 2023 2022 2021

Oil Fuel 91,495,327 87,360,466 94,214,073

Coal 1,156,023,031 1,176,417,505 1,143,520,270
Non-Renewable Energy
Source (1) Natural Gas 429,550,170 393,068,600 409,697,783

Biofuel 32,241,138 27,314,666 24,461,550

Total 1 1,709,309,666 1,684,161,237 1,671,893,676

Biomass 16,545,976 9,780,572 4,719,881

Renewable Energy (2)
Total 2 16,545,976 9,780,572 4,719,881
Total Energy Usage
1,725,855,642 1,693,941,809 1,676,613,557
(Total 1 + Total 2)

Calculation of total energy consumption is undertaken by summing up the energy consumption from the volume of
primary energy sources used. Energy consumption is expressed in Gigajoules (GJ), by multiplying the fuel volume
with di erent conversion factors for each fuel.

The primary source of energy consumption for electricity production in 2023 was coal. The total energy value used
from coal consumption in 2023 reached 1,156,023,031 GJ, a decrease of 1.73% from 1,176,417,505 GJ in 2022. This
decrease was mainly due to the increased operation of coal-fired power plants using biomass cofiring, where the
volume of biomass used increased by 69.2% from 2022.

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Electricity Production

Table III. 3 Electricity Production

Electricity
ElectricityProduction
Production
GWh
GWh
Electricity Production 2023 2022 2021

Hydropower 19,932 22,355 19,765

Geothermal
16,936 16,677 15,898
NRE Electricity Generation Power
(1) Other NRE 2,111 1,447 1,212

Total 1 38,979 40,479 36,875

Steam Power 216,777 205,309 189,684

Diesel Power 8,576 8,309 9,094

Non-NRE Electricity
Steam Gas Power 55,979 51,426 51,604
Generation (2)
Biofuel 3,010 2,479 2,214

Total 2 284,342 267,523 252,596

Total Electricity Production
323,321 308,002 289,471
(Total 1 + Total 2)

In 2023, the total electricity production was 323,321 phenomenon, which led to a 10.84% decrease in
GWh, a 4.97% increase from 2022. Most of the hydropower plant production. However, there was an
electricity production still came from non-renewable increase in electricity production from other renew-
energy sources (87.94%). able sources, such as geothermal, solar, and wind.

Electricity production from renewable energy contri- PLN plans to increase the renewable energy mix to
buted 38,979 GWh (12.06%), a decrease from 40,479 12.4% by adding 242.08 MW of renewable energy
GWh (13.14%) in 2022. This decrease was primarily capacity by 2024. In addition, PLN has set targets to
due to the operation of large-scale non-renewable achieve a 23% renewable energy mix by 2025 and
power plants that began in 2023, as well as the El Niño 24.8% by 2030.

Energy Intensity
Energy intensity refers to the amount of energy required to produce electricity. It is calculated by comparing the
energy used from primary energy sources to generate electricity with the total electricity production. For energy
intensity, hydropower and geothermal sources are being excluded, as the costs for these energy sources have
traditionally been calculated based on the electricity generated.

Table III. 4 Energy Intensity

Description
Description Unit 2023 2022 2021
Total Energy Use (Other than
Water and Geothermal GJ 1,725,855,642 1,693,941,809 1,676,613,557
Sources)
Electricity Production (Other
than Water and Geothermal GWh 286,453 268,971 253,808
Sources)
Energy Intensity GJ/GWh 6,024.92 6,297.87 6,605.84

As of 2023, the energy intensity has decreased by 4.3% compared to the previous year, due to the reduction in
coal sources to 1.2 million tons and increases in biomass utilization to 400,000 tons.

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WATER
PLN monitored water management in power plant units, which measures water withdrawn, water consumed, water
intensity, and recycled water programs.
Water Withdrawn
Table III. 5 Volume of Water Withdrawn by Source

2023
2023 2022
2022 2021*
2021*
Water
WaterSources
Source
Million m
Million m³
3
%
% Million
Million m
m³
3
%
% Million m
Million m³
3
%
%
Water Withdrawn by Source

Surface Water 11,332.11 28.27 27,210.36 69.72 1,687.83 56.59

Groundwater 0.152 0.0004 3.90 0.01 2.02 0.05

Sea Water 28,759.34 71.73 11,809.89 30.26 1,680.76 43.36

Rainwater 0.000167 0 0.02 0 0.01 0

PDAM (Third Party Water

0.02 0.00005 4.08 0.02 0.02 0
Provider)

Self-produced water 0 0 0 0 0 0

Total Water Withdrawn 40,091.62 100.00 39,028.06 100.00 3,370.95 100,00

Water Consumed 25,104.76 24,122.46 2,208.10

Water Returned to
14,207.61 13,590.66 858.75
Nature

*) In 2021, water data was taken only from the Gold and Green PROPER power plants, while for 2022 data was sourced from the PLN Group Unit
but did not cover the entire unit. In 2023 data has been calculated from 246 power plant units, and a new calculation cut-o was implemented.

In 2023, total water withdrawals were 40,091.62 million m³, a 2.7% increase from 2022. The highest water
withdrawals were from surface water (28.27%) and seawater (71.73%). This was primarily due to the utilization of
these water sources for most operational activities at generation units. The surface water withdrawals have
significantly decreased compared to 2022 due to changes in accounting methodology, while the seawater
withdrawals have increased markedly because of several new coastal power plants with large capacities using
seawater for operational activities.

The total water consumed amounted to 25,104.76 million m³ in 2023, representing 62.62% of the total water
withdrawn. The volume of water consumed is measured based on standard methodologies, either directly with flow
meters and through calculations in accordance with pump capacity design.

The remaining water, 14,207.61 million m³, was returned to nature as runo and utilized by the community for
economic activities such as agriculture, fisheries, and tourism.

PLN has identified activities that withdraw water in locations with High (40-80%) or Extremely High (>80%) water
stress using WRI's Aqueduct Water Risk Atlas. This water stress analysis encompasses total water withdrawals from
surface water, groundwater, and third-party water providers. Based on the analysis of 246 units, 17 units (or 6.91%)
are withdrawing water in high and extremely high-water stress areas. Water withdrawal in these areas accounts for
3.41% of the total volume, with only 0.0031% being consumed.

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Water Consumed

Table III.6 Water Consumed by Source

2023
2023 2022 2021*
2021*
Water Sources
Water Source
Million m3 %
% Million m3 %
% Million m3 %
%
Million m³ Million m³ Million m³

Surface Water 8,916.97 35.52 17,245.3 71.49 1,105.72 50.08

Groundwater 0.06 0.00 3.45 0.01 1.30 0.06

Sea Water 16,187.71 64.48 6,869.6 24,48 1,101.05 49.86

Rainwater 0.00 0.00 0.02 0.00 0.01 0.00

PDAM (Third Party

0.02 0.00 4.08 0.02 0.02 0.00
Water Provider)
Self-produced
0.00 0.00 0.00 0.00 0.00 0.00
water
Total Water
25,104.76 100.00 24,122.48 100.00 2,208.10 100.00
Consumed

*) In 2021, water data was taken only from the Gold and Green PROPER power plants, while for 2022 data was sourced from the PLN Group Unit
but did not cover the entire unit. In 2023 data has been calculated from 246 power plant units, and a new calculation cut-o was implemented.

As of 2023, the water consumed for operational activities at generation units primarily comes from surface water
(35.52%) and seawater (64.48%). Surface water is predominantly used for hydroelectric power plants, while
seawater is mostly used for coastal coal-fired power plants. PLN plans to decrease water consumption by 5% by
2030. This target is based on the water consumption volume data from 2023, allowing for a 5% variance.

Water Intensity

PLN measures water intensity by dividing the volume of water withdrawn to annual revenue.
Table III. 7 Water Intensity

Parameter Unit 2023 2022 2021*

Water Intensity m3/million USD 1,279 1,380 143

Water Intensity Trend m3/million USD 1.370 1.477 0.153

FW Intensity m3/million USD 284 610 47

*) In 2021, water data was taken only from the Gold and Green PROPER power plants, while for 2022 data was sourced from the PLN Group Unit
but did not cover the entire unit. In 2023 data has been calculated from 246 power plant units, and a new calculation cut-o was implemented.

In 2023, water intensity was 1,279 m³ per million USD, a 7.3% decrease from the previous year due to e icient water
use and increased corporate revenue. The water intensity trend also decreased compared to the previous year,
indicating a better performance in water management. PLN plans to continue decreasing water intensity over the
following years.

The calculation method for freshwater intensity in 2023 was updated to reflect only water sourced from PDAM and
freshwater, excluding seawater and combining surface water, groundwater, and rainwater instead. In 2022, the
calculation of freshwater intensity only used water sourced from PDAM (regional water company) and seawater. The
change in source measurement resulted in di erent freshwater intensity values for 2023 compared to 2022.

Additionally, the trend in freshwater intensity also decreased, with the freshwater intensity in 2023 being 284 m³ per
million USD, a 53% decrease from 2022. The updated method aims to provide a more accurate reflection of the
organization's freshwater usage and sustainability practices, enabling improved tracking, transparency, and more
precise resource management.

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Recycled Water

Table III.8 Recycled Water Programs

Parameter Unit 2023 2022 2021

Million m 3 7,961 5,991 2,175

Recycled Water
% 0.37 0.39 0.39
Generation Unit with 3R Water
Unit 39 33 27
Program *)

*) The data is from the units that achieved the Gold and Green PROPER award.

In 2023, PLN successfully recycled 7,961 million m3 of water covering 39 power plants. PLN aims to increase its
water recycling rate by 5% by 2030. This target is based on the average water recycling volume data from 2022 and
2023, allowing for a 5% variance.

Water Use Monitoring and Reporting

Water withdrawals from each source is calculated using pumps with flow meters and designed pumps with certain
capacity/debit and is monitored and measured in real time. The water debit is adjusted with the level of needs to
optimize the electricity production.

As per the Key Performance Index in 2022, monitoring and reporting of water consumption, including the 3R
program, are mandatory. PLN integrates a water management program into the ESG SWR monitoring dashboard to
track monthly water consumption across PLN units and subsidiaries.

In July 2023, PLN participated in a workshop side event for the 10th World Water Forum at University of Gadjah
Mada, with the theme "Water for Shared Prosperity" to prioritize Sustainable Governance. In this series, PLN
explained its commitment to sustainable water use.

a) Water useMonitoring and Reporting

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RISK MANAGEMENT
In terms of resource management, several risks can arise that may lead to operational disruptions, such as
operational disruptions in coal, gas, and hydroelectric power plants, which can have a significant impact. The risk
mitigation for resource management is shown in Table III.9 and Table III.10.

Table III.9 Quantitative Risk Mitigation of Resource Management

Related Metrics &

Related
Risks
Risk Risk Appetite
Risk Level Treatment
TreatmentMeasurement
Measurement
Targets
Metric & Target
Conducting asset management and business
continuity plan, applying weather modification
Flood potential both
Resource technology, increasing flood-resistant
upstream and Low (4)
management infrastructure development, and cooperating
downstream.
with related institutions to overcome the power
crisis caused by floods.

Mapping drought-prone areas, improving

Drought risk in hydropower Resource
drought handling SOPs, coordinating with
in South Sulawesi with a management Low (3)
stakeholders and implementing public
capacity of 700 MW.
education and awareness programs.

Decreased electricity
Resource Moderate to Ensure the availability of coal supply by
production by CFPP due to
management High (16) monitoring the procurement procedures.
the coal supply limitation.

Increased cost to supply Conduct coordination and engagement with

Resource
natural gas. High (23) stakeholders and regulators regarding natural
management
gas supply.

Table III.10 Qualitative Risk Mitigation of Resource Management

Related
Risk
Risks Related Metrics RiskAppetite
& Targets Risk Level Treatment
Treatment Measurement
Measurement
Metric & Target

Increased water
Utilize recycled water for power plant
consumption from NRE
Water recycling/reuse Moderate (12) operations, developing real-time water
penetration activities by
monitoring and management systems.
40-50% by 2050 at PLN

Carry out sustainable water management, water

Moderate to
Increased water scarcity Water management use efficiency, rainwater conservation and
High (18)
wastewater reclamation.

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NATURE MANAGEMENT

PLN integrates sustainable nature management into all business processes. The Company uses mitigation
hierarchies to protect biodiversity, particularly in priority areas. PLN also conducts reforestation programs to
restore ecosystems a ected by development. Additionally, the Company has identified nature-related risks
and developed strategies to address them.

GOVERNANCE
COMPANY’S COMMITMENT
According to the Biodiversity and Land Restoration Policy, PLN is committed to carrying out sustainable and
responsible practices in managing biodiversity and supporting biodiversity conservation e orts. The Company also
strives to implement mitigation hierarchy, prioritizing the avoidance of operations in areas with high biodiversity
values. When unavoidable, the Company strives to minimize, restore, or compensate for biodiversity impacts
throughout all project phases, from planning and construction to operation and post-operation. This approach
aims to achieve a no net loss or net positive impact on biodiversity.The Company also conducts monitoring and
evaluation of biodiversity management to further make improvement needed in conservation e orts.

PLN is also committed to rehabilitate land where necessary with the aim of restoring ecosystems, minimizing
negative impacts, and maximizing benefits. The Company allocates adequate funds for closure of operations and
rehabilitation related to electricity activities. The Company conducts countermeasure programs for unforeseen
environmental impact, thus ensuring an adequate recovery and remediation actions.

EXECUTIVE RESPONSIBILITY
In terms of nature management, in the sustainability committee, the responsibility to manage this aspect is
allocated as follows

Responsible Director
Nature Management is coordinated by the Director of Transmission and System Planning, who is responsible for
leading, planning, implementing, evaluating, and organizing the functions of transmission planning and power
systems. This role also encompasses consolidating and developing asset management systems, ensuring end-to-
end accountability in transmission asset management, and developing strategies for implementation. Related to
nature management, the Director ensures the integration of ESG planning, implementation, monitoring, evalua-
tion, and safeguards. This role entails ensuring that all activities and work program priorities meet the ESG
performance indicators as well as the environmental and social safeguards requirements in accordance with its
Division to Sustainable Enterprise.

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Responsible Division
Supervision of Nature Management in PLN Group is managed by the EVP of ETS Division. The responsibility of the
EVP of ETS Division is related to:
• Ensure the implementation of nature programs that support the energy transition is well underway in line with
PLN's NZE aspirations.
• Develop mitigation strategies and programs related to energy transition, Safeguard, and ESG.
• Ensure that all activities and priorities for ESG and Safeguard performance (including social safeguard and
gender mainstreaming) are implemented properly.
• Ensure the availability of mitigation strategies and programs (including collaboration with CSR programs) to
prepare for energy transition.
• Ensure the planning, implementation, and evaluation of all business processes based on governance, risk
management, and compliance, including implementing checks and balances through the 4 Eyes Principle for
critical business processes within the framework of the 3 Lines Model.

In 2024, PLN, through the ETS Division, launched the ESMS that encompasses management guidelines related to
biodiversity.

Responsible Management Level

• In PLN, Nature Management is managed by the VP of ESG and Safeguard.
• In each sub-holding and subsidiary, Nature Management is managed by the chairperson who is appointed by
the authorized Leader or Director of the sub-holding or subsidiary and monitored by PLN's ETS Division.

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STRATEGY
PLN has implemented several initiatives related to nature management aimed at fostering a sustainable ecosystem
and mitigating environmental impacts.

BIODIVERSITY IDENTIFICATION AND MANAGEMENT PLANS FOR

PRIORITY AREAS
In general, PLN's biodiversity program initiation commences with identifying priority biodiversity areas, which is a
crucial step in the process. This undertaking is frequently conducted within power generation units, which typically
maintain close relationships with their surrounding environments.

PLN has developed the Biodiversity Management Guideline as a practical handbook within the ESMS. These
guidelines are aligned with the Performance Standard established by the International Finance Corporation.

There is also an agreement in a new Cooperation Agreement between Perhutani (State Forestry Public Enterprises)
and PT PLN (Persero) based on Cooperation Agreement No. 06/PKS/DIVRE-JANTEN/2023 dated September 1, 2023
concerning the Implementation of Improving the Conservation Function of Forest Areas in the Catchment Area
Around the 4 x 260 MW Upper Cisokan Pumped Storage Hydroelectric Power Plant. In connection with the
Cooperation Agreement, planting or revegetation phase 1 has been carried out in several locations in the South
Bandung Forest Management Unit area (plots 59, 60, 61, and 62) covering a total area of 77.2 Ha.

The planting is a combination of Perhutani forest plants and Multi-Purpose Tree Species (MPTS) plants, with a
proportion of 25% and 75% respectively. The consideration for determining the proportion of MPTS being greater
than the proportion of forest plants was taken by paying attention to community welfare, suitability of plant species
with environmental conditions, and the increase in economic potential for the community in the long term. For
planting activities, the community was involved starting from the selection of species, planting, to maintenance.
Monitoring and evaluation were also carried out after the planting activity to determine the success of the
revegetation along with the preparation of phase 2 planting.

In relation to the presence of important fauna or REEPS, monitoring has been carried out especially for 10 important
species recorded in the UCPS 1040 MW hydropower development area based on previous studies. The important
fauna species include the Javan Leopard (Panthera pardus melas), Jungle Cat (Prionailurus javanicus), Sero
Ambrang (Aonyx cinerea), Javan Gibbon (Hylobates moloch), Surili (Presbytis comata), Javan Lutung
(Trachypithecus auratus), Javan Kukang (Nycticebus javanicus), Pelanduk Kancil (Tragulus javanicus), Trenggiling
(Manis javanica), and Porcupine (Hystrix javanica).

BEST PRACTICE OF MITIGATION HIERARCHY

PLN conducts EIA and ESIA before establishing any assessment process, and/or required by permits and
electricity project. In practice, PLN applies the licenses, to be implemented.
concept of the mitigation hierarchy on biodiversity, as
stated in the Biodiversity Management Guideline, PLN has also established BMP to mitigate the environ-
which is an integral part of the ESMS. This guideline is mental and landscape impacts derived from PLN's
envisioned as becoming a principal reference for business operation. Within the ESG Framework, it is
biodiversity management as well as mitigation stated that each unit of PLN both holding and sub-
actions across PLN Holding and its Sub Holding holding are obligated to report their BMP e orts
entities. This guideline is also intended to provide regularly, which will be monitored at the corporate
detailed information regarding the avoidance, level. This BMP is also integrated into the review of EIA
mitigation, and o set measures identified during the and ESIA for foreign-funded projects.

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REFORESTATION AND LAND REHABILITATION

PLN has implemented a reforestation program to Bambusa sp, Dimocarpus longan, and Swietenia
rehabilitate areas during and after construction mahagoni. Endemic plants commonly grown in the
projects. This program is to restore the functions of West Java area include Litsea tomentosa, Bouea
ecosystems that have been disturbed by develop- macrophylla, and Pterospermum javanicum. Addi-
ment, followed by regular monitoring. Moreover, this tionally, PLN has planted several species around
program is carried out by the PLN Group to preserve coastal areas such as Avicennia marina, Rhizophora
and improve the quality of the environment and apiculata, Sonneratia obovata, Ceriops decandra,
includes e orts to reduce carbon emissions. and Casuarina equisetifolia.

PLN also actively engages in reforestation initiatives to

make meaningful contributions to the community.
These e orts aim to enhance urban greenery, reduce
pollution, and increase oxygen production, thereby
promoting a healthier and more sustainable environ-
ment.

Until the end of 2023, PLN's reforestation program has

planted a cumulative total of 2,642,667 trees,
covering more than 748.72 hectares of land. Some of
the commonly planted species include Samanea
saman, Mangifera indica, Persea americana Mill,
Figure IV. 1: PLN and the DKI Jakarta Provincial Government
Conducted a Tree-Planting Action
on the Kalideres Riverbanks

ENGAGEMENT WITH LOCAL COMMUNITIES OR STAKEHOLDERS

REGARDING NATURE MANAGEMENT
PLN has collaborated with several stakeholders such as non-governmental organizations, conservation entities,
and local communities to promote biodiversity conservation programs and facilitate community participation in
conservation initiatives. Throughout 2023, the PLN's tree planting program involved communities, students, NGOs,
and related stakeholders.

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One of the PLN programs involving the local commu- PLN also launched the KUAT MANGROVE program in
nities includes Conservation, Prevention of Coastal partnership with Baluran National Park and the Randu
Erosion, and Mangrove Seedling Resilience Enhance- Agung Bersatu Community. This initiative involved
ment (KUAT MANGROVE). Before the implementation planting 16,000 trees over 5.4 hectares of land,
of these programs, approximately ±350 meters of focusing on the Balanan Blok Air Karang Resort and
coastal land in the settlement areas of Tambak Lekok the Bama Blok Hutan Kelor Resort. This event was also
Village had not been planted with mangroves for attended by the local government and Saka Wana
erosion protection. Consequently, during high tides, Bakti Scout students. In addition, PLN instigated an
several residential buildings su ered damage and agreement with the Worldwide Fund for Nature (WWF)
were at risk of worsening during extreme waves. to ensure the development of renewable energy
power plants was in accordance with sustainable
Conservation e orts by the surrounding community social and environmental standards.
were still conventional, relying on natural mangrove
propagation, resulting in suboptimal distribution of
mangrove areas. Some protected faunas in the coas-
tal area also became increasingly rare.

Therefore, the Grati Combined Cycle Power Plant

implemented the KUAT MANGROVE program, invol-
ving the surrounding community in using bamboo
rope sleeves to accelerate mangrove growth.

Figure IV. 2 PLN Conducted the KUAT MANGROVE

Program in Collaboration with Baluran National Park

SYSTEMATIC CONSIDERATION OF LOCAL THREATS TO

BIODIVERSITY
Local threats to biodiversity are important in ensuring environmental and community sustainability. Several factors
need to be considered to determine the potential threats, including:
• Identifying and mapping all potential threats to biodiversity in the operational area.
• Conducting risk analysis to determine the impact of these potential threats.
• Measuring the level of vulnerability and the impact on ecosystems and surrounding communities.
• Monitoring and evaluating to track changes that occur, thus enabling the development of strategies in line with
environmental conditions changes.

Systematic consideration of local threats to biodiversity forms an integral part of a responsible environmental
business strategy. One of the threats included the illegal hunting of Muntjac Deer that occurred around the Paiton
CFPP. To restore the Muntjac Deer species within the existing ecosystem, a well-planned innovation strategy was
required. One of the strategies implemented involved establishing a "Muntjac Deer Conservation Center" as an
educational hub and information dissemination facility to enhance the income of communities working at the
conservation center.

Additionally, the Paiton CFPP also collaborated with the Bhinor Village to prevent and mitigate hunting of wildlife in
the vicinity through a MoU. Activities conducted in the revention and mitigation of wildlife hunting include:
• Placing prohibition hunting signs.
• Installing signage designating the Muntjac Deer conservation area.
• Forest patrols.

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METRICS & TARGETS

BIODIVERSITY AND LAND REHABILITATION

Table IV. 1 Number of Flora and Fauna Species

Parameter Unit 2023 2022 2021

Total Flora Species*) Number 1882 1725 1671

Total Fauna Species *) Number 1009 1120 964

Protected Flora Species **) Number 723 673 643

Protected Fauna Species **) Number 470 489 435

*) Data sources based on Summary Document of Environmental Management Performance (DRKPL)

**) The number of protected flora and fauna species in the Area of Gold Proper Winning Plant Units

PLN has conducted initiatives to conserve flora and fauna species within PLN units. In 2023, there was an increase
in the number of flora species, with a 9.1% rise in total flora species and a 7.4% rise in protected flora species.
However, there has been a 9.9% decrease in total fauna and a 3.89% decrease in protected fauna species.

Table IV. 2 PLN's Performance in Land Rehabilitation

Parameter Unit 2023 2022 2021

Land area rehabilitated **) Ha 835.29 258.87 237.90

Number of trees planted*) Trees 732,503 1,478,734 172.094

Tree planting area Ha 120.74 258.87 44.75

Total CO2 Emission

CO2 Ton CO2 20,619,959.45 41,633,761 12,080,040
Sequestration Potential

*) Data sources based on Summary Document of Environmental Management Performance (DRKPL)

**) Data sources based on Leasehold of forest area license (IPPKH) data

PLN continues its rehabilitation e orts through tree plantation in specific areas around power plant units. This
initiative is undertaken as part of the Company's responsibility to restore the environment a ected by the
construction and operation of power generation systems.

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In 2023, PLN's rehabilitation area was 835.29 hectares, a significant increase, primarily due to additional certified
rehabilitation areas at the end of the year. The number of trees planted reached 732,503, covering 121 hectares of
land. PLN is currently developing biodiversity targets within a sustainability maturity level that will be deployed
across the PLN Group.

REPORTING ON BIODIVERSITY AND LAND REHABILITATION

The biodiversity programs are reported every semester through environmental management performance. These
reports include information on programs related to monitoring, identifying, and maintaining flora and fauna at the
plants.

PLN reports the land rehabilitation and reforestation programs through a Quarterly Report of the Result Based
Lending Program in some regional units. These reports contain program structure, management, and
implementation, including closure plan and site rehabilitation programs.

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RISK MANAGEMENT
In our approach to early biodiversity risk identification, we categorize risks into quantitative (shown in Table IV.3) and
qualitative (shown in Table IV.4) approaches.

Table IV.3 Quantitative Risk Mitigation of Nature Management

Related
Risk Risk Level Treatment Measurement
Metric & Target

Ensure a suitable supply of plants, including

appropriate varieties / species, to replant
roadsides and construction areas in a timely
manner.

Confirm the legal requirements for forest and

land protection as defined in Indonesia's laws
and regulations for protection of watersheds
and waterways, reforestation of land identified
as critical, and protection of habitats of
protected and endangered wildlife.

Determine the land available within the

Working Zone that is available for reforestation
Agroforestry area will and protection by mapping ownership and
be lost due to the Land rehabilitations Low (3) forest cover and develop a plan to reforest and
project development protect the land.

Cooperate with local communities in

conducting agroforestry development in the
rehabilitation area.

Review and ensure capacity (skills, labor force)

for reforestation activities: UPK nursery,
Perhutani, commercial nurseries / foresters,
local nurseries / labor.

All replanting shall follow the

recommendations for species in the
Biodiversity Management Plan (BMP)

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Table IV.4 Qualitative Risk Mitigation of Nature Management

Related
Risk Risk Level Treatment Measurement
Metric & Target

The Company's reputation 1. Conduct socialization and public

may be in jeopardy if local consultation on the area project that will
communities perceive Low to Moderate be carried out by PLN.
Biodiversity
that the PLN project (11) 2. Cooperate with the community in
violates biodiversity maintaining biodiversity in the PLN area.
practices.

Construction of
1. Identification of endangered species that
infrastructure and
have been a ected.
facilities of geothermal
2. The geothermal power project will include
power may restrict the Low to Moderate
Biodiversity conservation areas to create new
habitat area of fauna (6)
ecosystems.
species, influencing their
mobility and food
availability.

Hydropower facilities
have altered the natural
Identification of protected flora and fauna in
landscape and
conservation areas both on land and in water
ecosystems from
Biodiversity Moderate (13) and biodiversity index.
construction to operation,
transforming terrestrial
habitats into aquatic
ecosystems (dams).

1. Monitoring seawater/river water quality

around CFPP, including measurement of
seawater/river water temperature.
Risk of Impacts of Power
Plant on Coastal and/or 2. Monitoring of a ected coastal/ riverine
Moderate to
Biodiversity areas with measurement of
Riverbanks on Water and High (16)
Biodiversity. seawater/riverine biodiversity index.

Sunlight Blockage and

Conduct regular monitoring and use
Stratification. As well as
environmentally friendly liquid as a solar panel
Pollution from Low to Moderate
Biodiversity cleaner.
Maintenance and (8)
Cleaning in Solar Power
Plants

Certain PLN operational areas can be designated as high conservation zones. In response, PLN executed Strategic
Development Cooperation Agreements with several national parks in 2023 to minimize biodiversity risks. This
collaboration focused on protecting and securing forest areas, enhancing the quality of natural tourism develop-
ment and promotion, empowering local communities through skill enhancement, supporting facilities and
infrastructure management, and ensuring the e icient operation and maintenance of the electricity distribution
network.

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PERFORMANCE
REPORT
2023
SOCIAL
COMMUNITY RELATIONS
OCCUPATIONAL HEALTH AND SAFETY
HUMAN CAPITAL MANAGEMENT
GENDER EQUALITY, DISABILITY, AND SOCIAL INLUCION (GEDSI)
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COMMUNITY
RELATIONS
PLN is committed to give positive impact for the communities by fostering collaboration and improving
quality of life through its community development programs. It emphasizes empowering local communities
through programs that include skills training, education, local economic development, and support for
vulnerable groups. To ensure sustainable development, PLN also implements risk management strategies,
including emergency response training and regular monitoring of community relations, to prevent
disruptions.

GOVERNANCE

COMPANY'S COMMITMENT
PLN is fully committed to realizing community empowerment in the areas surrounding its operational regions as an
integral part of the Company's social responsibility. Increasing community development, collaborating with local
communities, preparedness and emergency response are the three aspects where PLN's commitment is
highlighted in the Community Social Aspect Policy.

Through a series of programs and initiatives, PLN actively strives to improve the quality of life and make a positive
impact on the local communities. These empowerment programs include skills training, education, local
economic development, and support for community initiatives.

EXECUTIVE RESPONSIBILITY
PLN has displayed a strong commitment to sustainable development through its community development
program. In this context, on July 20, 2023, PLN has established the Sustainability Committee, through the Social
Workstream that specifically oversees the implementation of community development programs and enhances
collaboration in community engagement.

In terms of Community Relations and Disaster's Emergency Response Preparedness, in the Sustainability
Committee, the responsibility to manage this aspect is allocated as follows:

The Responsible Director Level is held by PLN's Corporate Secretary.

The Responsible Division is managed by the EVP of the COC Division, who supervises community development
programs, and the EVP of the ETS Division, who oversees community involvement programs in electrical
infrastructure projects.

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Responsible Management Level

• In each PLN Unit responsibility for Community Relations and Disaster's Emergency Response Preparedness is
managed by the General Manager, and by responsible parties at the organizational level. The Implementing Unit
is appointed by the General Manager of the Parent Unit or the Manager of the Implementing Unit.
• In each sub-holding and subsidiary, Community Relations and Disaster's Emergency Response Preparedness
is managed by the Chairperson appointed by the authorized Leader or Director of the sub-holding or subsidiary.
The implementation of the community involvement and development program, is part of the sustainability
performance of sub-holdings and subsidiaries, is monitored by PLN's ETS Division.

This committee is directed to design and oversee initiatives that have a positive impact on the surrounding
communities. With a focus on sustainability, transparency, and social responsibility, PLN through the Sustainability
Committee strives to strengthen positive relationships with communities, listen to their aspirations, and
collaboratively create sustainable projects to support the well-being of local communities.

In 2024, PLN, through the ETS Division, launched the ESMS to provide a framework to identify, assess, prevent or
mitigate, evaluate, and communicate environmental and social risks and impacts that may result from
management and operational activities by PLN and its business partners. For the Social topic, particularly related to
Community Social Inclusion, the ESMS issues Stakeholder Engagement Management Guidelines.

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STRATEGY
COMMUNITY DEVELOPMENT PROGRAM
For implementing sustainability goals aligned with the Social SDGs the Social Workstream stands out as a vital
component within the Sustainability Committee. This specific workstream is responsible of ensuring the
achievement of CID targets related to community empowerment, consultations with local communities,
preparedness and emergency response, gender equality, equality for individuals with disabilities, and social
inclusion. By following a comprehensive and targeted approach PLN through the Sustainability Committee is
committed to realizing positive and sustainable impacts, supporting communities, and upholding principles that
encompass the entirety of sustainability.

One form of PLN's commitment to actively contributing to community development is through its initiative to
sustain the local economy surrounding PLN's operational areas through the CSR program. These programs align
with the Director's Regulation No. 0138 of 2019 concerning CSR Guidelines Based on ISO 26000. The goal of this
community development program is to promote the economic well-being of the local communities from the
development phase, operational phase, to the post-operational phase of PLN's infrastructure in that region.

To increase community participation in sustainable development, PLN has targeted community involvement
across all its business units. In 2021, PLN published procedures for Community Involvement & Development (CID).
These procedures serve as a comprehensive guide to ensure the e ective and e icient implementation of
community empowerment programs, aligning with the principles of sustainability and CSR.

The CID activities focus on supporting small businesses and entrepreneurs. The programs supporting the
economic pillar, include:
• Micro and Small Enterprises Development through SOE Houses (SOE House Management): This program
provides space for small businesses to operate.
• Micro and Small Enterprises Development through empowering villages/tourism areas: This program provides
training and support to small businesses in rural areas and tourism destinations.
• Micro and Small Enterprises Development through empowering vulnerable people (disabilities, indigenous
communities, economically disadvantaged): This program provides training and support to small businesses
owned by vulnerable groups.
• PLN Cares for Micro and Small Enterprises Development: This program provides funding for small businesses.

The procedure for Partnership and Community Development Programs is carried out in line with Director's
Regulation No. 0135 of 2019. This regulation also governs the monitoring process of partnership and environmental
development programs to assess the extent to which these programs benefit the community.

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EMERGENCY RESPONSE PROGRAM

For handling emergency disaster responses, PLN has implemented an Emergency Response Program as an
initiative aligned with the Sustainable Business Principles. This commitment is outlined in the PLN's Community
Social Aspect Policy, Statement of Corporate Intent No. 0314 of 2022 concerning Sustainable Business Principle
and the Director's Circular No. 0036 of 2022. PLN has issued Director's Regulation No. 0072 of 2021 that serves as a
guideline for the implementation of emergency disaster response. This guideline aims to provide e ective, planned,
integrated, coordinated, and comprehensive disaster management that protects employees, their families and
communities within the PLN business area from disaster risks and ensures optimal delivery of PLN's electricity
services.

Based on Director's Regulation No. 0072 of 2021, the PLN Taruna team must carry out activities such as debriefing,
education, and training on disaster mitigation in order to implement disaster management e ectively. The PLN
Taruna team, serving as the operational body for disaster emergency response, is established both at the Head
O ice and Parent Unit levels. The Head O ice team is designated by the President Director, and the Chairperson or
Managerial Responsibility is the relevant Regional Director. For the team at the Parent Unit level, this is appointed by
the Regional Director, and the Chairperson in charge is the General Manager of the respective Parent Unit. This
structure ensures a coordinated and e ective response to emergency situations, with clear leadership
responsibilities defined at both the central and regional levels.

As part of its ongoing commitment to disaster preparedness, PLN has initiated a comprehensive training program
aimed at improving the competency and skills of both its employees and the local communities residing in the
vicinity of its operational areas. The training related to emergency response is mandatory and must be conducted by
all PLN units, so that all PLN employees and the local populace are required to receive preparedness regarding
disaster management.

COMMUNITY INVOLVEMENT PROGRAM

Stakeholder Governance
PLN has implemented a detailed formal system outlined in Director's Regulation No. 0119 of 2017, that specifically
provides guidelines for managing and interacting with internal and external stakeholders, including local
communities.

In practice, this director's regulation serves as the foundation for consultations with stakeholders, particularly local
communities during the project's initial stage phase, continues through construction, operation, and extends into
the post-operation phase. By adhering to the principles outlined in this regulation, PLN ensures transparency,
fairness, and account ability in engaging with local communities.

Community Involvement
Public consultations follow a well-defined process outlined in the regulation, allowing stakeholders, particularly
local communities, to gauge the extent of the consultations.

Grievance Redress Mechanism (GRM)

As one means of community communication, PLN has developed the GRM as a mechanism for handling public
complaints and grievances, signed by the EVP of HSSE Division. References related to complaint systematics are
outlined in the internal policy on Complaint Handling. The communication mechanism involves receiving,
screening, resolving, and evaluating complaints regarding PLN's operational activities. Complaints are handled
transparently and are accessible to a ected communities.

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In 2024, PLN, through the ETS division, will refine the GRM by incorporating it as one of the guidelines of the ESMS.
The main objective of a GRM is to be an accessible and inclusive system, process, or procedure that receives and
acts upon complaints and suggestions for improvement in a timely fashion and facilitates resolution of concerns
and grievances arising in connection with a project. An e ective grievance mechanism provides project-a ected
parties (external) and PLN's workers as well as contractor's workers (internal) with redress and helps address
issues at an early stage and along the project lifecycle (pre-construction, construction, operation).

Stakeholder Identification and Analysis Mechanism

This guideline also regulates the mechanism for Stakeholder Identification and Analysis, where stakeholders can
be broadly classified into three groups, namely, project-a ected parties including vulnerable groups, and other
interested parties.

High influence - Low interest High influence - High interest

Level of engagement : Level of engagement :
Keep Satisfied Manage Closely
Level of Influence

Low influence - Low interest Low influence - High interest

Level of engagement : Level of engagement :
Monitor Keep Inform

Level of Interest

Figure V. 1: Stakeholder Mapping Diagram

The higher the influence and interest, the project needs to find out the most e ective way to engage stakeholders in
this group. Identification of vulnerable groups helps the Project further identify individuals and sub-groups who may
have di erent concerns and priorities about Project impacts, mitigation mechanisms and benefits, and who may
require di erent, or separate, forms of engagement.

PLN consistently involves and opens up public consultation spaces with the local community to analyze potential
impacts that arise, and then develop mitigations to minimize these impacts. Since the early stages of the project,
PLN actively involves stakeholders, including local communities, to gather input and feedback on the Company's
operational plans.

In general, customer complaints regarding electricity can be submitted through the PLN Mobile application or the
PLN contact center (area code) 123. Meanwhile, public complaints related to public information can access the
website www.pln.co.id or contact the nearest PLN o ice.

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METRICS & TARGETS

COMMUNITY DEVELOPMENT IMPLEMENTATION
In 2023, PLN successfully implemented the CID program, with the actual disbursed amounted to:
Rp. 383,127,749,758, benefiting a total of 622,449 beneficiaries.

This amount saw an increase from 2022, where the actual disbursed amounted to:
Rp. 354,881,011,211, benefiting a total of 327,942 beneficiaries.

The CID program covers four primary pillars:

Social
Provides essential services such as education, healthcare, and various other social
services to the community.

Environmental
Focuses on environmental preservation and sustainable development, the program
actively engages in activities that contribute to protecting the environment.

Economic
Emphasizes economic empowerment, the program supports small businesses and
entrepreneurs, fostering economic growth within the community.

Legal and Governance

Ensures that all its activities are conducted in accordance with the law and regulations,
emphasizing a strong foundation of legal and governance principles.

The CID program has improved the CSI score (89.61 in 2023 from 84.47 in 2022) and SROI (2.71 in 2023 from 2.67 in
2022). These results indicate that the CID program has enhanced community satisfaction and generated additional
social and economic values.

ACCESS TO BASIC SERVICE

PLN contributes to fulfilling the basic needs of the community through its core business (supply of electric power)
and non-core business (socio-economic development). In terms of its core business, PLN has succeeded in
reaching almost all corners of Indonesia with an electrification ratio of 99.79% by 2023.
Table V. 1 Electrification Ratio
Indicator
Indicator Unit 2023
2023 2022
2022 2021
2021
Power Plant Capacity in Our System MW 72,976 69,039 64,553

Substation Capacity MVA 166,727 161,367 155,968

Transmission Network kms 70,933 68,206 64,807

Distribution Network kms 1,048,183 1,033,662 1,022,124

Total Customers Customer 89.2 million 85.6 million 82.5 million

National Electrification Ratio % 99.79 99.63 99.45

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In the area of non-core business, PLN, through its PLN Peduli program, implements community empowerment
initiatives in the surrounding areas. These programs are designed to enhance the quality of life for local
communities and foster economic development. According to the Sustainability Report 2023, PLN highlighted
several key social responsibility initiatives, one of which focused on providing clean water and public sanitation
facilities to remote and underserved (3T: Tertinggal/Underdeveloped, Terdepan/Frontier and Terluar/Outermost)
areas struggling to access clean water. This program has been carried out in 18 provinces at 35 di erent locations,
with a total of 345 clean water facilities, benefiting 21,308 individuals.

Additionally, PLN o ers electrification programs for the agricultural sector, aimed at modernizing these areas
through the use of electricity. The number of customers reached 246,996 in 2023, a 25% increase from 198,028
customers in 2022. In addition, to mitigate air pollution from the use of fossil fuels in ports, PLN has also
implemented the Electrifying Marine program. In 2023, the total number of Electrifying Marine customers rose to 38
Micro and Small Enterprise customers compared to 33 Micro and Small Enterprise customers in 2022.

CUSTOMER ECO-EFFICIENCY PROGRAM

PLN's Customer Eco-E iciency Programs include initiatives designed to promote energy e iciency and
environmental sustainability among its customers. Through the Customer Eco-E iciency Programs, PLN provides
educational resources, tools, and incentives to encourage customers to adopt energy-e icient practices.

Additionally, PLN introduces special programs or rewards for customers who actively participate in eco-friendly
initiatives, further encouraging a collective commitment to environmental responsibility. There are several
programs implemented by PLN related to Customer Eco-E iciency Programs:
• Energy E iciency Education
Providing information and guidance to customers on how to reduce energy consumption in their homes or
businesses.

• Energy-E icient Appliance Usage Programs

O ering incentives or special discounts for customers using energy-e icient appliances or light bulbs.

• Energy E iciency-Based Payment Systems

Implementing tari structures that encourage energy use during more e icient periods or providing benefits to
customers who successfully reduce their energy consumption.

• Community Environmental Initiatives

Engaging customers in local environmental projects, such as tree planting, recycling campaigns, or other
environmental programs.

• Promotion of Sustainable Transportation

Providing incentives for customers using sustainable transportation such as electric vehicles or public
transportation.

• Environmental-Friendly Community Programs

Launching initiatives that focus on enhancing the environmental sustainability of the local community.

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RISK MANAGEMENT
GOVERNANCE
There are several risks that may occur and cause losses to the Company. These risks include rejection or protests
due to non-compliance or environmental incidents, as well as workplace accidents that can disrupt activities in the
surrounding community. The quantitative risks mitigation of community relations is shown in Table V.2. and
qualitative risk in Table V.3.

Table V. 2 Quantitative Risk Mitigation of Community Relations

Risk Related Metric & Target Risk Level Treatment Measurement

Rejection or protests related Implement regular monitoring

procedures and conduct them
to poor management, non- Community involvement before construction activities.
compliance, or accidents across all business units Low (4)
and pollution occurring in the Enhance partnerships with
and related o ices
vicinity of the community. communities through
empowerment programs.

Loss of operational time and

significant management Community involvement Conduct routine emergency
Low to Moderate
resources to address across all business units response training both internally
(7)
disruptions arising from and related o ices and externally with communities.
natural disasters.

The need for local job Community involvement Conduct periodic recruitment for
opportunities within the across all business units Moderate (12) the surrounding community in the
community. and related o ices operational area.

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Table V. 3 Qualitative Risk Mitigation of Community Relations

Risk Related Metric & Target Risk Level Treatment Measurement

1. The community, in
collaboration with PLN,
initiates and conducts
feasibility surveys for
potential program
recipients around the
project area.
The CSR program that is Community involvement Low to Moderate 2. Monitor and oversee the
carried out is not feasible across all business units (11) implementation of the
to be carried out. and related o ices. program.
3. Organize workshops and
collaborate with third
parties.
4. Ensure performance
targets are in line with the
capacity of the
implementing unit.

While community relations generally may not have a significant financial impact, the Company must still carefully
monitor associated risks. Mitigation measures can be taken to avoid such risks, such as conducting regular
monitoring procedures before operational activities, enhancing partnerships with the community through CID
programs including local employment absorption, and conducting training on emergency response.

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OCCUPATIONAL
HEALTH & SAFETY (OHS)

PLN is committed to creating a safe and healthy work environment, aiming for zero accidents through the
implementation of the OHS Management System. It focuses on employee health monitoring, safety culture
development, and continuous improvement of OHS practices. PLN manages OHS risks by regularly
communicating safety policies and providing training to employees and contractors.

GOVERNANCE

COMPANY’S COMMITMENT
PLN's view is that safety and well-being in the workplace is equally as important as good business and profitability. PLN
prioritizes OHS as a fundamental component of its operational activities, striving to cultivate a culture of workplace
safety to achieve its long-term goal of zero accidents in all endeavors. This commitment is clearly reflected in the
Company's policy on Safety, Health, Security, and Environment.

To realize this commitment, the PLN Group has implemented an OHS Management System in accordance with
Government Regulation No. 50 of 2012 and ensures that all units at PLN have OHS Management system
certification.

PLN's policy in OHS Management is integrated with the Environmental Protection policy, with the following policy
principles:
• Prioritizes the aspects of occupational, health, and safety and security and environmental protection in every
activity at PLN.
• Complies with laws and regulations and other OHS related requirements and those related to security and
environmental protection.
• Identifies OHS, and health hazards; identifies security threats; and identifies environmental protection aspects
according to the level of risk and undertakes preventive, protective and control measures while reviewing and
handling the risks periodically and continuously.
• Increases employee awareness and competence to allow the employees to do their work in a safe, reliable, and
environmentally friendly manner.
• Creates and maintains harmonious relationships with stakeholders in PLN's business activities to build
mutually beneficial partnerships.

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EXECUTIVE RESPONSIBILITY
In the Sustainability Committee, in terms of health and safety issues, the responsibility to manage this aspect is
allocated as follows:

The Responsible Director is held by the Director of Legal and Human Capital.

The Responsible Division is managed by the EVP of HSSE Division.

Responsible Management Level

• In each PLN Unit responsibility is managed by the General Manager, and for implementation within the PLN
units down to the implementing unit level, there is a designated department responsible for Health, Safety and
Security Management.
• In each sub-holding and subsidiary, responsibility for health and safety issues is managed by the chairperson
appointed by the authorized Leader or Director of the sub-holding or subsidiary.

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STRATEGY
GOVERNANCE
The Company holds a responsibility to manage employees properly by creating a healthy and safe workspace, and
by providing work protection to increase productivity and quality of employee performance.

PLN has implemented the following strategies:

IMPLEMENTATION OF ISO 45001-2018 AND OHS MANAGEMENT

SYSTEM
To consistently apply the OHS Management System in PLN, at the OHS Management System maturity level, the HSSE
Division requires all units to implement the OHS Management System and integrate ISO 45001-2018 and
Government Regulation No. 50 of 2012. Internal audits are conducted once a year to ensure the consistency of the
implementation of the OHS management system. The guidelines for the implementation of the program refer to
Director's Regulation No. 182 of 2022. In detail, the standard procedure for implementing the OHS Management
System at PLN refers to the Director's Circular No. 0013 of 2023. This Directors' Circular also includes emergency
preparedness procedures to prevent and manage workplace accidents or the emergence of work-related illnesses.

The internal audit is conducted annually by PLN's Internal Audit Unit, while the external audit for the OHS
Management System performance is carried out every three years. PLN also undergoes ISO 45001 certification
across all operational units.

CONTRACTOR SAFETY MANAGEMENT SYSTEM (CSMS)

In September 2021, PLN released the Director's Work In Progress
Decision No. 0325 of 2021 concerning the application Executing the work whilst in parallel monitoring and
/implementation of CSMS in the PLN workspace and evaluating the work through field inspections to
it is used by the Company as one of the social criteria ensure that HSSE implementation is carried out
for procurement of goods and services. consistently according to the HSSE plan.
Final evaluation
This guideline contained in SPLN U1.006:2021 Conducting final evaluation of all contractors' perfor-
involves several stages that need to be conducted in mance by assessing the implementation of HSSE
the following order: aspects during the CSMS stages.
Risk assessment
Determining the level of risk of the tendered work in Implementation of these stages are reported and
the Company. monitored through the website csms.pln.co.id.
Pre-qualification
Selecting competent contractors with HSSE The Company is committed to creating a safe work
management capabilities to match them against the space for employees and workers against workplace
level of risk imposed on the job. hazards. The Company's OHS guidelines include
Selection/appointment regulations for employees and workers across all PLN
Procuring goods/services for contractors after obtai- workplaces, focusing on the prevention, protection,
ning CSMS qualification certificate and approved and resolution of work accidents, work-related
HSSE Plan documents. illnesses, and occupational diseases. These regula-
Pre-Job Activity tions extend to the subsidiary level.
Ensuring all HSSE aspects have been fulfilled and
agreed upon by the contractor prior to work execution.

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MATURITY LEVEL OF OHS MANAGEMENT

All units in PLN apply the OHS Management in accordance with OHS Management Maturity Level criteria, which has
already been conveyed by the HSSE Division. This division monitors, verifies and assesses the OHS Management
Maturity Level every six months to record the OHS Management maturity in each PLN unit.

MOONSHOT TRANSFORMATION PROGRAM TO ACHIEVE ZERO

ACCIDENT TARGET
The “Zero Accident” program is in the PLN transformation program through a zero-accident breakthrough, which
went live on February 2, 2022. There are 4 Program Initiatives, namely: CSMS Implementation, Strengthening Safety
Culture, Structuring Corporate OHS Policies, Digitizing Safety Management Tools.

DEVELOPMENT
DEVELOPMENTON
OF SAFETY CULTURE
The development of an OHS Culture was strengthened in collaboration with the Expert Safety Culture
Transformation Consultant, DuPont Sustainable Solutions Indonesia, with a pilot project at UID Banten starting at
the beginning of 2022. Subsequently, in 2023, by adopting DSS, the rollout of OHS culture development was
extended to 10 Distribution Parent Units. For 2024, the program is targeted to be rolled out to all PLN Distribution
Units.

To reinforce the development of OHS culture, the HSSE Division collaborated with the HST Division by implementing
Safety Culture consisting of “Zero Work Accidents” and “Pointing and Calling".

ESTABLISHING THE STANDARDS RELATED TO THE IMPLEMENTATION

OF SAFETY IN PLN'S STANDARDS
The standards for implementing OHS in PLN's workspace are always reviewed and updated, and cover SPLN fire
protection systems, SPLN Personal Protective Equipment, SPLN CSMS, SPLN OHS signs, and others.

HEALTH & SAFETY CERTIFICATIONS

The Company has complied with the applicable safety standards, this is implemented through the fulfillment of
safety certification for the OHS management system and ISO 45001-2018 which have to be fulfilled by all existing
facilities in the PLN Group.

REVIEWING AND UPDATING THE COMPANY REGULATIONS FOR

CORPORATE OHS MANAGEMENT
The OHS program prioritizes regular reviews and updates of Company regulations to ensure they align with industry
standards. This proactive approach aims to maintain an e ective and current safety framework, fostering a
continuous improvement culture in OHS measures for the well-being of all employees, installations, and the
general public near the PLN workplace.

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PERFORMANCE MONITORING AND MEASUREMENT

The implementation of the OHS Management System includes a proactive approach to measure and monitor OHS
performance. This is achieved through regular audits of the OHS maturity level once every three months. These
audits are conducted to assess the e ectiveness and maturity of the OHS Management System practices within the
organization.

PLN prioritizes Occupational Health and Safety (OHS) by fostering a safe work culture to achieve its goal of zero
accidents across all activities. This includes construction projects such as power plants, transmissions, and
substations, as well as operations involving generation, transmission, distribution, and substations.

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METRICS & TARGETS

OHS MANAGEMENT SYSTEM PERFORMANCE

When evaluating the performance of PLN's OHS Maturity Level of OHS
Management System, various key indicators are Assessing the maturity level of OHS practices involves
closely monitored to ensure a comprehensive under- evaluating the e ectiveness and sophistication of
standing of the organization's safety landscape. OHS measures. As of December 2023, PLN's OHS
maturity level achievement was recorded at 4.08 out
Accident and Fatality Rate of the target of 3.75 (on a scale of 5). The maturity level
This indicator provides insights into the frequency of is the sum of score from 6 action plans, including:
accidents and fatalities within the organization. In • Leadership & Management Commitment;
2023, there were 22 workplace accidents involving • Audit, Assessment and Inspection;
PLN employees and contractor workers that were • Implementation of Hazard Identification, Assess-
working on projects under PLN's control, resulting in ment, and Risk Management;
the loss of 1 PLN employee and 14 contractor workers. • Safety Training and Education;
• Safety Campaign and Communication
Severity Rate • Reporting.
Tracking injuries that result in time away from work is
essential for assessing the impact of workplace ISO 45001-2018 Certification
incidents. In 2023, the severity rate was 388.44 Lost Certification reflects adherence to safety standards.
Work Days/1 Million Person Hours/Year. By the end of 2023, 36 out of 46 PLN units have
obtained ISO 45001:2018 certification, or 78% of the
Employee Medical Check-Up Data total PLN units. PLN targets that by 2027, all PLN
Regular medical check-ups for employees are part of parent units will be ISO 45001:2018 certified to fully
a proactive approach to health management. Every support the achievement of the PLN's Integrated
year, PLN organizes medical check-ups for its Management System targets.
employees. In 2023, a total of 24,742 PLN employees
underwent medical check-ups. The results showed By elaborately examining these indicators, PLN can
18.5% of employees as Fit for Work, 75.1% as Fit with continuously enhance its OHS Management System,
Medical Notes, and 6.4% as Temporarily Unfit. fostering a workplace culture that prioritizes the
health, safety, and well-being of its employees.

CSMS PERFORMANCE
The extensive business processes of PLN involve collaboration with external partners (vendors/ contractors),
making it imperative to ensure the OHS performance of these partners is in line with PLN's business processes. As
part of the Breakthrough Zero Accident program, an initiative was undertaken to prevent and mitigate the impact of
OHS related to business relationships. This initiative included the implementation of CSMS in 2021. In 2023, the
CSMS implementation clause in the Bidding Document and Contract for all work near the PLN workplace had
reached 100%.

Up until December 2023, contractor CSMS certification achievement reached 88.8%, with a total of 4,423
contractors already certified, while the full-cycle CSMS implementation achieved 32.4% with a total of 3,517
contractors, surpassing the 25% target set for 2023, and the target for the full cycle CSMS for 2024 is 50%.

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RISK MANAGEMENT
GOVERNANCE
In relation to OHS, there are several risks that have a very high financial impact on the Company. In PLN's work
related to electrical voltage, there is a high risk related to employee and contractor OHS. This results in the risk of
workplace accidents, both at construction sites and operational areas.

Table VI.1 Quantitative Risk Management of OHS

Related Metrics &

Related
Risks
Risk Risk
RiskAppetite
Level Treatment
TreatmentMeasurement
Measurement
Targets
Metric & Target

Occupational accidents Regularly socialize the OHS Policy and

occurred in the workplace provide awareness related to OHS before
Maturity level of OHS High (23)
(construction site or doing work at the construction site (for
operational area). example, playing a safety induction video)

Table VI. 2 Qualitative Risk Management of OHS

Related
Related Metrics &
Risks
Risk Risk Appetite
Risk Level Treatment
Treatment Measurement
Metric & Target
Targets

Prepare a roadmap for the fulfillment of the

Fire incidents during Moderate to
Maturity level of OHS fire detection and protection system in all
electricity installation. High (19)
units.

Improperly managed OHS risks can result in significant losses for the Company. To mitigate these risks, the
Company should regularly communicate OHS policies to all employees and ensure that contractors understand
the importance of OHS before starting work on construction sites. Employees should also receive training on OHS
related work procedures. Additionally, investing in asset insurance can help protect the value of assets in the event
of accidents.

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HUMAN CAPITAL
MANAGEMENT
PLN has implemented comprehensive strategies in Human Capital Management that prioritize
professionalism, skills development, and the creation of a safe, inclusive, and equitable workplace. It
emphasizes robust employee training programs, performance-based remuneration, gender equality
initiatives, and a commitment to respecting workplace diversity. PLN has identified human capital-related
risks and addresses it through enhanced development programs, competency training, and increasing work-
life balance initiatives.

GOVERNANCE

COMPANY’S COMMITMENT
Under the "Unleashing Energy and Beyond" program, the Company is undergoing Human Capital Transformation to
overhaul its resource management system. Currently, the HCMS fosters professionalism and integrity. The future
HCMS will focus on experience-based management, with pillars including Right Size, Right Skill, Right Spend, and
Right System.

The maturity of Human Capital Transformation is measured based on Human Capital and Organization Capital
Readiness Indicators. Human capital readiness refers to the preparedness of an organization's workforce in terms
of skills, knowledge, competencies, and motivation to fulfill the demands of the work environment, ensuring
e ective achievement of strategic goals.

The Company is committed to fostering human capital development through comprehensive training programs that
aims to improve employee skills and competencies. These initiatives encompass diverse areas such as technical
expertise, leadership capabilities, and soft skills development. Through these training programs, the Company
cultivates a culture of innovation and excellence, empowering employees to drive the Company's growth and
success.

As mentioned in the Code of Conduct document, PLN ensures that every employee has the freedom to associate,
and the Company's implementation of this policy helps the trade unions form Collective Labor Agreements. These
agreements ensure clarity on rights and obligations, establishes favorable working conditions, promotes a
harmonious workplace, and upholds good corporate governance.

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EXECUTIVE RESPONSIBILITY
In relation to Human Capital, the responsibility within the sustainability committee is allocated as follows:

The Responsible Director is held by the Director of Legal and Human Capital.

The Responsible Division is managed by the EVP of HST Division, EVP of HTD Division and EVP of HCS Division

Responsible Management Level

The scope of Human Capital is divided into 3 (three) parts, namely:
• Human Capital Strategy is managed by the EVP of HST Division that is responsible for the development and
management of business processes, organizational structure, job management, workforce planning, human
capital management strategies and policies, as well as PLN's competency system and culture that aligns with
PLN's strategy to enhance the human capital value in achieving PLN's vision and mission.
• Human Capital Talent Development is managed by the EVP of HTD Division and is responsible for leading,
nurturing, and managing the Talent Development, which includes development of PLN's talents at the Head
O ice, Regional O ices, Centers, Implementation Units, Service Units, and Subsidiaries centrally and
optimally in line with human capital management strategies and policies by collaborating all elements of PLN
to achieve PLN's vision and mission.
• Human Capital Services is managed by the EVP of HCS Division who is responsible for leading, nurturing, and
managing which includes controlling the management of services for employees and retirees at the Head
O ice, Regional O ices, Implementation Units, and Service Units in a centralized manner supported by
information systems as well as industrial relations and outsourcing.

In each sub-holding and subsidiary, responsibility for Human Capital issues is managed by the Chairperson who
is appointed by the authorized Leader or Director of the sub-holding or subsidiary. The implementation of human
capital management, as part of the sustainability performance of sub-holdings and subsidiaries, is monitored by
PLN's ETS Division.

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STRATEGY
GOVERNANCE
PLN ensures human capital management functions by implementing strategies and policies in achieving every
target.

PLN HUMAN RESOURCE MANAGEMENT

To cultivate harmonious relations with employees based on cooperation as outlined in the periodically reviewed
Collective Labor Agreement.
• To remain in full compliance with all applicable employment regulations.
• To apply a fair, transparent, and accountable performance-based remuneration system.
• To uphold human rights for the employees and ensure full support is given to the Trade Union.
• To establish programs for competence enhancement and training to improve the performance of individuals,
groups and ultimately the Company.
• To apply equality in career paths.
• To apply gender equality.

RESPECTFUL WORKPLACE POLICY

Through the Respectful Workplace Policy, the PLN group is committed to establishing a workplace that is free of
discrimination, violence, and harassment to create a more inclusive and productive working environment to drive
the Company's sustainability. PLN is committed to fostering workplace diversity by continually improving
recruitment programs to ensure the inclusion of talent from diverse backgrounds, irrespective of ethnicity, religion,
race, social status, gender, or physical condition. The Respectful Workplace Policy in line with the Commitment to
Respectful Behavior Policy in the Workplace and the Policy for a Discrimination Free, Violence-Free, and
Harassment-Free Workplace are the initiatives implemented that foster a peaceful workplace that encourages
productivity growth. The AKHLAK Culture Journey program also contributes to the establishment of a productive
workplace.

FREEDOM OF ASSOCIATION
Freedom of association for workers is a fundamental right incorporated in the constitution, is legally upheld and
ratified by PLN through the Code of Conduct document, and its implementation is guaranteed. PLN facilitates this
right through the establishment of a Trade Union, and the formation of a Collective Labor Agreement. This
agreement serves and covers several objectives, including providing clarity on the rights and obligations of PLN and
all employees working at PLN, establishing favorable working conditions, fostering a harmonious relationship
between PLN and its employees for Company's continuity and progress, and promoting the realization of Good
Corporate Governance principles.

DISCRIMINATION POLICY
By ratifying the ILO Convention, PLN is committed to participating in the program to eliminate acts of discrimination
(Employment and Occupation), and this commitment is implemented by using the ILO convention as one of the
references in the preparation of the Collective Labor Agreement between PLN and the PLN Trade Union. PLN has
updated their Collective Labor Agreement for 2022 – 2024.

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HUMAN CAPITAL READINESS (HCR) AND ORGANIZATION CAPITAL

READINESS (OCR) PROGRAM IMPLEMENTATION
HCR and OCR are crucial indicators in driving value creation within Human Capital and serve as a key to translating
strategic initiatives and Human Capital programs. HCR and OCR are programs that focus on essential aspects:
HCR, OCR Alignment, OCR Business Ecosystem, OCR Culture, and OCR Leadership. Optimizing the programs in
each of these aspects can enhance PLN's maturity in achieving its established aspirations and sustainable growth.

During 2023, the achievement of HCR and OCR performance indicators showed a level of governance in the
implementation of the Human Capital policies to support sustainable performance, and the development of talent
competencies related to OHS in PLN. This was accomplished through development programs to improve
competencies, such as training activities, certification, and knowledge management related to HSE, Emergency
Response, Cyber Security, Code of Ethics, and more.

THE IMPACT OF ESG PERFORMANCE ON REMUNERATION

PLN recognizes the importance of ESG performance in enhancing employee welfare and corporate sustainability.
Accordingly, PLN has integrated ESG aspects into the Company KPIs, and since 2023 all KPIs for Units and Divisions
at PLN have been tagged with ESG performance metric.
The ESG performance metrics that have a significant impact on the corporate KPIs include:

HSSE Compliance
HSSE compliance has been included in the Company's KPIs to demonstrate PLN's commitment to occupational,
safety, health and security as well as sustainable environmental management. With these KPIs, employees are
encouraged to always consider OHS aspects in every activity, thereby creating a safe and healthy work
environment.

Climate Change Management

Since 2021, climate change and the reliability of the power system have been included in the Company's KPIs. This
step is part of PLN's e orts to reduce carbon emissions and support a cleaner energy transition. By incorporating
climate change management into the KPIs, employees are expected to innovate and implement environmentally
friendly technologies in their daily operations.

Maturity Level Sustainability for Subsidiaries and Sub-holdings

Starting in 2024, PLN plans to include Maturity Level Sustainability in the KPIs for subsidiaries and sub-holdings.
This initiative aims to ensure that all entities under PLN also apply sustainability principles in their operations,
thereby supporting overall sustainability goals.

The ESG performance included in the KPIs a ects employee performance incentives, both semi annually and annually. By
incorporating ESG performance into the KPIs, PLN not only contributes to the environment and society but also enhances
employee motivation and productivity through ESG based incentives.

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In Reference with IFRS S1

METRICS & TARGETS

HUMAN CAPITAL AND ORGANIZATION CAPITAL READINESS
The e ectiveness of HCR and OCR can influence the
Target
creation of value in Human Capital, and this will be
Realization 4.57
crucial to the implementation of Human Capital
4.50 4.50
strategic plans and programs. Also, the OCR and HCR 4.45 4.45
4.41
performance can influence the value of human
4.35
capital, and their performance will be crucial in 4.30
putting strategic plans and human capital programs
into action.
2020 2021 2022 2023
In 2023, the training costs amounted to Rp525.76
Figure VII. 1: Human Capital Readiness
billion, lower than the 2022 training costs of Rp529.26
Performance (HCR)
billion. The average training hours per employee in
2023 reached 86 hours, an increase of 5 hours per
employee compared to 81 hours in 2022. The average
training hours per employee in 2023 increased by 6% Target 4.61

from 2022. Realization 4.50 4.50

4.45
4.43 4.42
Through the Human Talent Development division, PLN 4.35
4.30
monitors the performance of HCR and OCR, setting
annual performance targets for both. From 2020 to
2023, the performance of HCR and OCR has consis- 2020 2021 2022 2023
tently improved, even exceeding the targets set each
year, as shown in Figure VII.1 and Figure VII.2. Figure VII. 2: Organization Capital Readiness
Performance (OCR)

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RISK MANAGEMENT
GOVERNANCE
In Human Capital Management, there is a risk associated with the reduction of job opportunities related to coal due
to the planned decrease in the percentage of energy mix. This could result in additional costs for severance
payments for terminated coal-related employees, as PLN's scope of work involves electricity generation using non-
renewable energy. Additionally, there is a risk of the ine ective implementation of the Employee Well-Being
Program and the failure to achieve the performance targets for the human capital management aspect. Although
these risks do not have significant financial impacts on the Company, they still need to be managed to avoid
potential issues in the future.

To mitigate the risk of additional costs, the Company can create job opportunities that promote the co-firing of
biomass in power plants and expand the capacity of solar or wind power plants. To maximize the e ectiveness of the
program, the Company should enhance the Employee Well-Being Program for all employees. Additionally,
conducting regular training sessions every year can help ensure that the human capital performance targets are
met. The risks to human capital management are shown in Table VII.1 & Table VII.2.

Table VII.1 Quantitative Risk Mitigation of Human Capital Management

Risks Related& Targets

Related Metrics Impact Level Treatment Measurement
Risk Risk Level Treatment Measurement
Metric & Target

Create job opportunities related to

Decrease in coal-related job
increased biomass co-firing in coal-fired
opportunities due to the Human Capital Low to
power plants and the addition of solar
reduction in the target Management Moderate (7)
power plants/wind power plants and
percentage of energy mix.
Performing competency transfer/switching.

Failure to achieve a targeted Initiate coordination with external parties

number of new partners in Human Capital and conduct regular monitoring on the
Low (3)
energy transition capacity Management implementation of capacity building
building. programs.
Failure to implement employee
development programs and
Performance (KPI) Moderate (13) Implement employee development policy.
programs to fulfill the capacity
and capability of personnel

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Table VII.2 Qualitative Risk Mitigation of Human Capital Management

Related
Risk Related Metrics & Risk Level Treatment Measurement
Risks Metric & Target Risk Level Treatment Measurement
Targets

The Employee Well -being

Human Capital Increase the capacity of the Work -Life
Program is not effectively Moderate (14)
Readiness Balance Program for all employees.
implemented.

The implementation of Human

Capital Readiness and Provide regular training sessions for
Organization Capital Readiness Human Capital employees, at least twice a year, to
Low to Moderate (8)
performance work program did Readiness enhance the competence of each
not achieve the set personnel.
performance targets.

Increase in employee health

cost in implementing Implement corporate wellness program
Human Capital Moderate to High
preventive programs including and evaluate health cost as well as
Management (19)
standardized medical check - employee wellness index routinely.
up.

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GENDER EQUALITY, DISABILITY,

AND SOCIAL INCLUSION (GEDSI)

PLN is committed to Gender Equality, Disability, and Social Inclusion (GEDSI) through initiatives such as
increasing female representation in management, empowering women, and promoting inclusive
recruitment, particularly for people with disabilities and those from underdeveloped regions. PLN has also
identified GEDSI-related risks and implemented mitigation measures to ensure inclusive governance.

GOVERNANCE
COMPANY’S COMMITMENT
The Company provides equal employment opportunities for all, irrespective of gender, ethnicity, religion, race,
social status, or physical condition. Initiatives include increasing the proportion of female employees in managerial
positions at PLN and the proportion of PLN's female employees in nominated talent eligible for promotion to SOE
Directors, revisiting culture and leadership values to support women's development, and promoting inclusive
recruitment practices.

The implementation of gender equality is an important point in human capital management policies. PLN provides
full support for the empowerment of the potential of the Company through Women Empowerment programs, such
as increasing the share of management positions filled by women, increasing the coverage of women's facilities and
childcare services, and certified training in gender mainstreaming.

On the other hand, PLN also pays special attention to the protection of people with disabilities and social inclusion.
As one of the concrete actions, PLN has opened up special recruitment for the people of the eastern Indonesia
region with a system that has been adjusted and can be accessed easily.

EXECUTIVE RESPONSIBILITY
In relation to Gender Equality, Disabilities, and Social Responsible Management Level
Inclusion issues, the responsibility within the Sustainability • In each PLN Unit responsibility is managed by the
Committee is allocated as follows: Chairperson appointed by the General Manager
at each PLN Unit.
The Responsible Director is held by the Director of • In each sub-holding and subsidiary, responsibility
Legal and Human Capital. is managed by the Chairperson appointed by the
authorized Leader or Director of the sub-holding
At the division level, there are two persons in charge: or subsidiary. PLN's ETS Division monitors the
• EVP of ETS Division for Environmental and Social implementation of the GEDSI programs, as part of
Safeguards (Safeguards Requirements) issues. the sustainability performance of sub-holdings
• EVP of HTD Division for gender and disability and subsidiaries.
issues.

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STRATEGY
GOVERNANCE
DIVERSITY PROGRAMS
Through Director's Regulation No. 0015 of 2020 concerning Protection, prevention, and handling of sexual
harassment in PT PLN (Persero), the PLN group is committed to establishing a workplace that is free of
discrimination. PLN does not make any distinction in treatment, exclusion or preference made based on ethnicity,
race, nationality, color, gender, age, disability, or other characteristics in the Company activities that include but are
not limited to recruitment and selection, performance appraisal, training and development, wages and benefits,
promotion / demotion, termination of employment and social interaction in the work environment. PLN's Gender
Mainstreaming Policy in the Statement of Corporate Intent No. 0056 of 2023 outlines strategic initiatives to promote
equal opportunities and diversity, particularly by encouraging women's participation at all levels.

SRIKANDI PROGRAMS
PLN is committed to building gender equality through the representation of female in strategic positions, and by
creating a female-friendly workplace in all PLN o ices to support the development of female's talents. This
commitment is in line with the Ministry of SOE enhancement program for female empowerment. In response to this
program, PLN established the Srikandi Task Force Team through Director's Decision No. 0135 of 2023. In addition, in
2024, an update was made concerning the Srikandi Task Force Team at PLN through Director's Decision No. 0118 of
2024.

WOMEN TALENT RETENTION

PLN pays significant attention to talent retention for female employees as part of its e orts to enhance diversity and
inclusion in the workplace. One of the main programs initiated to achieve this goal is the Talent Pool for female
employees. This program is designed to identify and develop high-potential female employees within the
organization.

The Talent Pool for female employees also aligns with the metric for Women in Management Positions, a key
indicator for PLN to assess the program's success. Selected female talent to be groomed and prepared as potential
candidates for management positions, ensuring not only talent retention but also significant female representation
in decision-making and leadership. Through this Talent Pool, in 2023 PLN achieved a nominated talent proportion of
32.25%, exceeding the target of 22%. These female employees are anticipated to advance to Director positions
within State-Owned Enterprises.

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METRICS & TARGETS

EMPLOYEE DIVERSITY PROGRAM

Gender Equity
The increasing proportion of female employees in 2023 demonstrates PLN's commitment to promoting gender
equality and o ering equal opportunities for individuals to show their skills without gender discrimination.

Employee Diversity Based on Gender

18.92% 19.33% 19.53% 19.76% 20.94%

81.08% 80.67% 80.47% 80.24% 79.06%

2019 2020 2021 2022 2023

Men Women

Figure VIII. 1: Employee Diversity Based on Gender

Table VIII.1 Diversity in Leadership based on Gender

Year 2023 2022 2021

Year 2023 2022 2021
Diversity in Leadership
Diversity based on
in Leadership
basedGender
on Gender Male
Male Female
Female Male
Male Female
Female Male Female
Female

Special Senior Management 2 1 5 - 3 1

Senior Management 91 14 96 13 103 10
Middle Management 393 52 390 56 388 54
Junior Management 1,412 272 1,422 261 1,421 242
Senior Supervisory 2,964 454 3,146 512 3,148 540
Junior Supervisory 7,320 1,116 7,760 1,173 7,734 1,123
Expert 16 1 18 1 16 -
Functional 17,932 6,102 20,987 6,311 21,591 6,381
Total 30,472 8,070 33,824 8,327 34,404 8,351

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Disabilities
Through Director's Circular No. 0056 of 2023 concerning Employee Acquisition Management, PLN is committed
to o ering equal employment opportunities to all individuals, emphasizing gender equality and inclusivity,
including those with disabilities, as long as they are able to carry out their duties e ectively and maintain high
work quality. Every person with disabilities is considered to have the potential to be placed in positions or jobs
equivalent with the nature of their disability. In 2023 the number of PLN employees with disabilities reached 40
individuals, which is 0.10% of the total PLN workforce.

Recruitment for indigenous people from frontier, outermost, and underdeveloped regions (3T)
PLN also organizes special recruitment programs for indigenous people in each operational region, including
special operational areas such as 3T (Tertinggal/Underdeveloped, Terdepan/Frontier and Terluar/Outermost)
regions, as part of PLN's commitment to equal opportunities for all as outlined in the Respectful Workplace
Policy. In 2023, PLN recruited a total of 52 indigenous Papuans, consisting of 25 males and 27 females. As well as
Papua, PLN also implements similar programs in the Maluku, North Maluku, West Nusa Tenggara, and East Nusa
Tenggara regions.

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RISK MANAGEMENT
GOVERNANCE
In the GEDSI aspect, PLN faces risks related to regulatory compliance, particularly the mandate that SOEs employ at
least 2% of persons with disabilities, as specified in Law No. 8 of 2016, Article 53. Non-compliance could result in
financial penalties. Additionally, failing to meet the target of 20% female representation by 2025 will present another
risk. While the impact may be less severe, achieving this target remains important.

The quantitative and qualitative risks related to GEDSI are detailed in Table VIII.2 and Table VIII.3.

Table VIII.2 Quantitative Risk Mitigation of GEDSI

Risks Related Related& Targets Impact Level

Metrics Treatment Measurement
Measurement
Risk Metric & Target Risk Level Treatment

Open recruitment for people with

disabilities every year and provide job
Failure to achieve Indonesian
positions according to their abilities.
regulation, to employ at least 2% The number of
of persons with disabilities from employees with Low (3)
Collaborate with community associations
the total number of employees or disabilities.
and engage in developing the capabilities
workers.
of minority communities.

Table VIII.3 Qualitative Risk Mitigation of GEDSI

Related Metrics &
Related
Risks
Risk Metric & Target Risk Level
Risk Treatment Measurement
Treatment Measurement
Targets
Prioritize the recruitment of female
employees for positions that correspond to
their individual capabilities.
Failure to achieve the
target of female Female in management
High (22) Provide leadership training for female
management level.
employees to enable them to occupy higher
representation.
positions (as a representation of women in
management levels).

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ESG
PERFORMANCE
REPORT
2023
GOVERNANCE
PRODUCT GOVERNANCE
BUSINESS ETHIC
 ESG Performance Report 2023

PRODUCT
GOVERNANCE

PLN is committed to strong product governance through initiatives that strengthen business continuity,
cybersecurity, procurement, and asset management. Key strategies include emergency response protocols,
a cybersecurity framework, and sustainable procurement practices that prioritize environmental and social
responsibility. PLN also identifies and mitigates risks in these areas, ensuring resilience in electricity supply,
infrastructure development, and compliance with sustainability goals.

GOVERNANCE

COMPANY'S COMMITMENT
PLN implements Business Continuity Management procedures and strategies for the execution of its Sustainable
Business, as further detailed in Director's Circular No. 0036 of 2022.

Business Continuity Management is a holistic management process to identify the potential and impact of threats to the
Company and provide a framework for building organizational resilience with the ability to respond e ectively in protecting
the interests of key stakeholders, reputation, brand, and value creation activities. The BCMS of PLN encompasses four
main aspects namely Response, Resume, Recover, and Restore in accordance with ISO 22301: 2019.

Product governance is concerned with managing the risks that consumers face when using a Company's goods or
services. These risks include the social and environmental e ects of the goods and services, as well as making sure that
customers are fitting to avoid misconduct such as predatory lending, discriminatory lending, misleading investors through
insu icient disclosure, and illegal foreclosure practices. In this reporting year, the four focus areas of product governance
in support of PLN's Business Continuity Management were:
• Emergency Response
• Cybersecurity
• Procurement
• Asset Management

EXECUTIVE RESPONSIBILITY
Emergency Response
Referring to Director's Regulation No. 0072 of 2021, concerning disaster management, PLN has established the
Taruna Team, which is responsible for all PLN operational units. The mechanism for establishing the Taruna Team is
determined by:
• A Large-scale Taruna Team designated by the President Director, with the relevant Regional Business Director
serving as the executive chair.
• A Small/Medium-scale Taruna Team designated by the relevant Regional Business Director, with the General
Manager of the related Parent Unit serving as the executive chair.

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ADVISOR

CHAIRMAN

DIRECTOR VICE CHAIRMAN

SECRETARY

PUBLIC
HUMAN LOGISTIC IT &
RESOURCE
MATERIAL RELATION
& &
TELE SOCIAL
FINANCE & ELECTRICITY HSSE COMMERCE &
PUBLIC EQUIPMENT COMUNI HUMANITY
MEDICAL INSTITU
FACLITIES CATION
TIONAL

MEMBER MEMBER MEMBER MEMBER MEMBER MEMBER MEMBER MEMBER MEMBER

RAPID REACTION TEAM

CENTRE OF CSR
OF IMPLEMENTING UNIT

COORD COORD
COORD
PUBLIC KITCHEN TRAUMA HEALING
RESQUE FUNCTION
FUNCTION FUNCTION

Figure IX. 1: PLN Taruna Team Structure

Cybersecurity
The Head of Digital and Information Technology is responsible to the President Director in leading, nurturing, and
managing the Digital and Information Technology Unit, which includes planning, implementing, monitoring, and
evaluating digital management and centralized information technology system management to support e ective
and e icient business processes in achieving PLN's vision and mission.

Procurement
The Supply Chain Management Division, responsible for maintaining the sustainability of the supply chain, reports
to the Project Management and New Renewable Energy Directorate.

Asset Management
The EVP of Assets Management, Engineering, and Integrated Management System reports to the Director of
Transmission and System Planning according to its scope and responsibilities and main duties and oversees the
Strategy and Management Assets Development, Assets Implementation, Engineering Development and Integrated
Management System Fields.

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STRATEGY
EMERGENCY RESPONSE PROGRAM
The readiness for emergency responses is a crucial element of this strategy. To provide fast response in handling any
disruptions that might impact its operations, the organization has instigated strong emergency response policies and
procedures. In order to successfully coordinate emergency responses, this includes training sta members, running drills,
and setting up communication channels.

By adopting the ISO 22301:2019 standard, PLN rea irms its commitment to sustainability management in its operations.
This step not only strengthens the Company's e orts to maintain operational continuity but also integrates emergency
response principles in addressing disruptions that may a ect the delivery of PLN's products and services.

One of the follow-up steps taken by PLN in implementing ISO 22301:2019 is the development of robust emergency
response guidelines. These guidelines serve as essential guidance for all levels of the Company when facing emergency
situations that disrupt the delivery of PLN's products and services.

These emergency response guidelines are based on the Company's internal regulations and policies. One such policy is the
Disaster Emergency Response Guidelines outlined in Director's Regulation No. 0072 of 2021. This guideline provides clear
directives on the steps to be taken in response to disasters, including post-incident operational recovery. In addition, PLN
also has established a Strategic Policy for OHS, Installation Safety, and Public Safety within PLN through Director's
Regulation No. 0182 of 2022. This policy serves as the foundation for the Company's e orts to ensure OHS, as well as public
safety in the vicinity of PLN's operational areas.

CYBERSECURITY PROGRAM
Cybersecurity stands as a cornerstone of our daily After the ISO 27001 certification year in 2022, PLN
operations within PT PLN (Persero). As digital has successfully maintained its ISO 27001
transformation advances, PT PLN (Persero) recognizes certification through surveillance audit activities in
that safeguarding our digital infrastructure is paramount in the following years 2023 and 2024. This certification
an increasingly interconnected world. Despite our core demonstrates the Company's adherence to best
business of power generation, and supply, PT PLN practices in identifying, assessing, and mitigating
(Persero) has elevated cybersecurity to a top-tier risk information security risks, further solidifying our
alongside the operational and global supply chain commitment to maintaining high standards of
challenges. This strategic decision underscores our cybersecurity.
commitment to maintaining resilience and reliability of
electricity services, while protecting our customers from Based on Director's Regulation No. 0022 of 2023, an
potential cyber threats. update to Director's Regulation No. 0054.P/DIR/2022
concerning the Organization and Work Procedures of
As the sole electricity provider in Indonesia, our daily PT PLN (Persero), PLN established a Digital
operations rest at the heart of modern activities that Technology and Information Unit. This unit is divided
require electricity in every aspect. These indispensable into two divisions:
needs for electricity places PT PLN (Persero) as part of the
Vital Information Infrastructure based on the Presidential The Digital Management Division, responsible for
Decree No.82/2022. This has driven us to have zero digital and information technology planning, and the
tolerance towards cyberattack pon our IT infrastructure System and Information Technology Division, which
that sits on the core of our operational activities. handles operational aspects. Cybersecurity
management falls under the Information Technology
In July 2022, PT PLN (Persero) achieved ISO 27001: 2013 Planning and Strategy Sub-Division within the System
certification, an internationally recognized standard for and Information Technology Division.
information security management systems. To ensure the
continuity of its compliance, this certification is evaluated The Information Technology Planning and Strategy
on an annual basis through surveillance audits. Sub-Division is in charge of leading, fostering, and

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managing the Information Technology Planning and Monitoring the ISO 27001-based audit is necessary to
Strategy sector, which includes developing information make sure the implementation of ISO 27001 is carried
technology strategies and roadmaps that are aligned out correctly. Audits are carried out both by internal and
with corporate strategy by analyzing information external parties. PLN has reached a maturity level of 3.03
technology needs, compiling IT Architecture and IT by an external party. This is a governance platform for
Master Plans, compiling and monitoring the information calculating IT maturity in all SOEs and is carried out every
technology budget, IT solution architecture and business 2 years.
case, allocation of information technology resources,
with the following main duties: The Technology Information System division carries out
• Compiling and developing information technology training on cybersecurity awareness on a regular basis
architecture, strategy and roadmap for the and provides external training annually, including cyber
information technology master plan and information drill training. This training was included in PLN's Human
technology governance; Capital programs in 2023 to help employees understand
• Preparing an information technology disaster the importance of cybersecurity and how to protect
recovery plan; themselves and the Company from cyberattacks.
• Preparing solution architecture and business case
Information technology services and infrastructure; Since 2010, PLN has conducted monthly cyber security
• Managing information technology and operational awareness sessions for all employees. The primary goal
technology in accordance with information of these sessions is to enhance understanding of various
technology risk assessment and mitigation; cyber threats, such as phishing, malware, and
• Managing the budget and allocation of information ransomware, and to promote safe practices like using
technology resources; strong passwords and being cautious of suspicious
• Managing information technology project payment emails. The impact of these e orts has seen noticeable
recommendations; decline in the trend of employees falling victim to phising
• Performing integration of applications and aspects attacks.
of data and applications;
• Monitoring the progress of project implementation Table IX.1 Impact of Cyber Security Awareness
of information technology services;
Year 2021 2022 2023
• Arranging information technology governance
including management of information technology Sample employees
falling victim to phishing 8% 4% 2.4%
licenses;
attack
• Preparing work programs and performance
indicators for information technology services; and
In compliance with the emerging Indonesian Privacy
• Ensuring that the planning, implementation, and
Law, PLN places utmost importance on protecting
evaluation of all business processes in the divisions
personal data. The Company has implemented
are based on the principles of good corporate
stringent measures to secure customer information,
governance, risk management and compliance,
processing data legally, and adheres to legal require-
including implementing checks and balances
ments for safeguarding data privacy and preventing
through the 4 Eyes Principles for critical business
irresponsible disclosure.
processes within the framework of the 3 Lines
Model.

PLN operates a dedicated Security Operations Center

(SOC) that functions 24/7, equipped with advanced
monitoring tools and sta ed by skilled cybersecurity
professionals. In 2023, the SOC successfully
mitigated over 100,000 cyberattack attempts and
addressed all high-severity alerts. PLN has partnered
with the National Cyber and Crypto Agency since 2019
to enhance cybersecurity resilience. This collabora-
tion led to the establishment of CSIRT within PLN
Holding in 2022, with CSIRTs also established within
sub-holdings and subsidiaries in 2023. These CSIRTs
are integrated with the National CSIRT team.

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PROCUREMENT
PLN sees the procurement of goods and services as a critical component of the Company's sustainable
commitment. PLN is committed to collaborating with suppliers and contractors who prioritize environmental
sustainability and social welfare, thus maintaining a balance between business growth and the needs of the
community and the surrounding environment. In fulfilling this commitment, PLN invites suppliers operating within
the PLN work areas to actively consider sustainability principles by incorporating ESG aspects into their operational
activities. This is reflected in the policies issued regarding procurement activities within PLN's operational
environment, namely the Green Procurement Policy and the Social Policy for Suppliers and Contractors.

Green Procurement
PLN recognizes the significant environmental impact of procuring goods and services and is committed to adopting
environmentally friendly practices throughout its supply chain. A key concept implemented by PLN is the
Responsible and Sustainable Resource Utilization Principle, which focuses on selecting products and services with
high energy e iciency, using environmentally friendly raw materials, and minimizing waste and emissions. PLN also
prioritizes the integration of renewable energy into its operations, encouraging suppliers and contractors to provide
solutions like solar panels and wind turbines. To reduce its carbon footprint, PLN uses environmentally friendly
vehicles, implements e icient waste management, and reduces water and energy consumption in daily operations.

PLN has implemented significant green procurement practices across its various contracts, particularly within EPC
contracts and Main Distribution Material (MDU) and Main Transmission Material (MTU) contracts. For EPC contracts,
PLN ensures that 100% of vendors are ISO 14001 certified, reflecting a commitment to collaborating with suppliers
who prioritize sustainability and e ective environmental management.

In the case of MDU and MTU suppliers, out of the 106 manufacturer vendors that were contracted within the 2023
period and 2024 semester 1 period, a vendor survey shows that 72 vendor business entities are ISO 14001 certified.
While this certification is not mandatory from a government regulation standpoint, it shows the awareness of proper
waste and emission management by the related vendors, at least but not limited to 68% of the contracted
manufacturer vendors. PLN encourages its manufacturer vendors to obtain ISO 14001 certification to reinforce its
position as a Company dedicated to sustainability and responsible environmental management.

PLN is currently conducting a comprehensive study on Sustainability Supply Chain with the aim of developing
detailed guidelines for green procurement practices. This initiative involves evaluating current supply chain
processes, identifying areas for improvement, and integrating best practices related to sustainability. This guideline
will help PLN systematically incorporate green procurement principles into every stage of the supply chain,
enhancing the Company's commitment to reducing its environmental footprint and promoting responsible sourcing.

Supplier Social Assessment

The assessment of the social aspect for goods/ services providers reflects the Company's commitment to
sustainability principles and corporate social responsibility. The commitment is reflected in the Social Policy for
suppliers and Contractors.

The assessment of social aspects is a crucial part of the procurement process, where PLN not only considers the
quality of products/services and the reliability of suppliers, but also the social impact of the provider's activities on
the community and the surrounding environment.

To ensure that contractors meet high social standards, PLN establishes strict standards in the assessment of the
contractors' social component. Respect for PLN's social policies, which encompass values including ethical work
practices, occupational health and safety, and environmental preservation, is one of the primary requirements.

Related to this, PLN has tools in place for assessing suppliers of goods/services, such as the CSMS. One of the
aspects of CSMS is the implementation of stringent OHS practices, which includes identification and mitigation of
risks associated with the work being performed, the use of personal protective equipment, OHS training, and
monitoring of working conditions to ensure a safe working environment for all parties involved.

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ASSET MANAGEMENT
PLN needs to manage its assets to create and deliver value when providing electricity to the public of an adequate
quantity and quality, as well as to foster profits and carry out the government's assignment in the electricity sector to
support development.

Since 2021, the PLN BoD has been committed to carrying out the journey of Asset Management's development,
both when systems and capability are being pursued. The Asset Management System refers to ISO 55001, while
capability development refers to GFMAM Landscape Subject, Second Edition as seen in Figure IX.2 and Figure IX.3.

These development programs involve following up and fulfilling the maturity gap assessment findings found in 2021,
which resulted in 62 Major Non-conformities and 10 Minor Non-conformities to ISO 55001:2014 with its maturity
level score at 21% (developing) where a score of 45% or more (competent to e ective) is required to be certified.
Based on this closing compliance and ensuring appropriate capabilities in asset management implementations,
PLN targets ISO 55001 certification in 2026.

Commercial
Costumer Legislation Investor
Environment

Organisational Strategic Plan

Scope of Asset Management

Strategy & Planning O

pe
rate

Lifecycle
Di s p o

Delivery

Asset Management Risk

se

Organisa on
& Decision Making &
People Review

Asset Information

Figure IX. 2: Asset Management Six Box Model

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Group 1 - Strategy & Planning Group 3 - Life Cycle Delivery Group 5 -Organisation &
• Asset Management Policy Techincal Standards & People
• Asset Management Legislation • Procurement & Supply
Strategy & Objectives • Asset Creation & Chain Management
• Demand Analysis Acquisition • Asset Management
• Strategic Planning • System Engineering Leadership
• Asset Management • Asset Operation • Organisational Structure
Planning • Organisational Culture
• Competence
Management

Group 2 - Asset Management Group 4 - Asset Information Group 6 - Risk & Review
Decision Making Asset Information Strategy • Risk Assessment & Management
• Contingency Planning &
• Capital Investment • Asset Information
Resilience Analysis
Decision-Making Standars • Sustainable Development
• Operation & maintenance • Asset Information • Management of Change
Decision-Making Systems • Asset Performance & Health
Monitoring
• Lifestyle Value Realisation • Data & Information • Management Review, Audit &
• Resourcing Strategy Management Assurance
• Shutdown &Outage • Asset Casting & Valuation
• Stakeholder Engagement
Strategy

Figure IX. 3: Alignment of the 39 Asset Management Landscape Subject with The Six Subject Groups

As explained above, PLN implemented an Asset Management Improvement Program (AMIP) journey to focus on
areas to build core capabilities and good practices, which are divided into 2 parts namely Part 1: Building Solid
Foundations and Part 2: Building Good Practice (detailed AMIP Roadmap 2021 – 2027 on Figure IX.4).

AM Training by AM Academy,
e-Foundation, e-Certificate,
Priorities Investment Prioritization
Diploma (2021 - 2025)Risk AM Optimise Assessment &
Management Training, Digital Competency & Grow
Improvement, Maturity
Awareness Training 1 6
Foundation

FOCUS AREAS Assessment, Performance

Change Management Plan,
Part 2 Buildin

Management, Technology
Organizational Design, 2
To build
5
AM Setup
Core Capability Embed APM,
Reliability Training, & Direction
and
Business Process, AHI
Management Review Good Practice
id

3 4
sol

Implement
ing

Go

AM Policy, AM Objectives, & Change

Alignment
od
ild

Strategic Asset Management Bu

Pr
ac Investment Prioritization
Plan (SAMP), AMSF, Business Par
t1 tic
e Assessment &
Value Framework, Asset Improvement, WLC
Class Strategies, AM Plan - 2023 Model Template,
Template Decision-Making Criteria,
Strategic Business
Asset Infomation Strategy, High- Model, Asset
Level Asset Information Standard, Risk Appetite Critically, Asset Health
Asset register Standard, Asset on Statements, Review Risk
PLN's EAM, Digital Transformation Management Framework,
& Twin, Digital Vision, Data Quality Asset Risk
Assessment Analysis

Figure IX. 4: PLN's Asset Management Roadmap

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In 2023, Several products produced during the Building Solid Foundation included the followings:

• Director's Decisions of PT PLN (Persero) No. 0053.P/DIR/2022 concerning The Asset Management Policy;
• Director's Decisions of PT PLN (Persero) No. 0371.K/DIR/2022 concerning The Asset Management Objectives;
• Director's Decisions of PT PLN (Persero) No. 0372.K/DIR/2022 concerning The Asset Information Strategy;
• Director's Decisions of PT PLN (Persero) No. 0373.K/DIR/2022 concerning The High-Level Asset Information
Standard;
• And other regulations concerning asset management implementation.

In the Building Good Practice Stage, PLN is improving its capabilities in planning (how to create) and realizing (how to
realize) business value e ectively through several related projects.

Projects within the "How to Create Value" Program include:

• Asset Investment Planning (AIP) improvement project, which aims to improve PLN's capabilities in investment
planning, including prioritizing and optimizing PLN's investment proposals. The AIP program aims to increase
PLN's maturity level in investment planning from a score of 1.75 (scale 5) to above 3, which will ultimately
increase the Company's ROIC indicator;
• The project integrates the asset-risk framework into PLN's risk management framework based on AM good
practices, especially in its use for investment planning and decision-making;
• Projects to ensure the availability of data quality and information on assets to support investment planning and
decision-making;
• Projects to ensure organizational capabilities and structure that support PLN investment planning and
decision-making activities.

Projects within the " How to Realize Value" Program include:

• Project to integrates PLN's Business Value Framework in all activities in the asset delivery lifecycle;
• Project to align the Asset class strategy with the strategic of Asset Management Policy and Asset Management
Objectives of PLN;
• Project to integrate asset-risk frameworks into asset delivery lifecycle activities;
• Project to ensure the availability of robust data and information of assets to support tactical and operational
activities within the asset delivery lifecycle;
• Project to ensure organizational capabilities and structure in the lifecycle delivery of assets.

Formal Asset Management Policy

PLN has taken significant steps to manage their assets e ectively and sustainably, as part of its e orts to improve
the asset management system and deliver the quality of energy services for the Indonesian people. Through the
implementation of an asset management system based on ISO 55001:2014 standards, the Company has
strengthened its operational foundation.

To improve the e iciency of asset management, the Company has established an Asset Management Policy. This is
supported by Management Asset Guidelines outlined in the Director's Regulation No. 0053 of 2022 concerning the
Strategic Asset Management Policy of PLN, and includes detailed operational procedures, preventive
maintenance, as well as asset performance monitoring and evaluation strategies.

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PLN Stakeholder
Internal & External

RUPTL
RJPP
Corporate Objective

Asset Management
System Framework
Asset Management Policy
Strategic Asset Management Plan
(SAMP)
AM Policy Asset Information
Asset Management
Objectives Management Framework

Desicion-Making
Framework

Asset Management
Strategy

Asset Class
Objectives

Asset Class
Strategy

Long Term AM Plan

Plan and Implementation
Change Management

Asset Management Plan

AM System and Capabilities,

Asset Portofolio
Relevant support

Asset Management Yearly Plan

(RKAP, RKAU, RKA-AP)
AM System and Capabilities,
Asset Portofolio
Relevant support

Implementation of Plan

AM System and Capabilities,

Asset Portofolio
Relevant support

Performance & Improvement

Evaluation
AM System and Capabilities,
Asset Portofolio
Relevant support

Figure IX. 5: Asset Management System Alignment

Asset Management Plan

The preparation of the Asset Management Plan will be carried out after PLN has a Strategic Asset Management Plan
that is in the process of being prepared in 2024. The Strategic Asset Management Plan is a document that explains
the asset management strategic plan for assets and asset management systems & capabilities that are needed to
support the realization of business plans and the improvement of asset management activities stated in the Asset
Management Objective, so that the PLN objectives can be achieved.

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Regular Internal or External audits

The Company has conducted internal audits related to asset management by sampling units based on risk profiles
created by the units. The content of the audit results is confidential. PLN, through its Internal Audit Unit, conducts
regular audits of the implementation of Asset Management implemented in units.

As of December 2023, 6 out of 46 PLN's Parent Units, or 13%, have obtained ISO 55001:2014 certification. After PLN
receives ISO 55001 certification, PLN's Parent Units will align with the ISO 55001 certification obtained by PLN.

Continual Improvement
One of PLN's challenges in carrying out its business processes is the demand to increase the level of service to
customers, reduce the cost of electricity production and use of fossil energy, and the need for large funding to
increase power generation capacity from new and renewable energy sources. Renegotiation of Take-or-Pay
contracts with IPP is another challenge for the Company, especially when the growth in expenses is not in line with
the initial estimates.

In facing these challenges and to achieve the Company's vision, accurate (and consistent) decision -making is
required at various lines and levels of the organization. This needs to be supported by an Asset Management System
and capability that meets ISO 55001 standards and is in line with PLN's needs, including quality asset data and
information.

For this reason, PLN needs to determine matters that must be carried out and achieved for assets and the Asset
Management System to ensure the achievement of the Company's objectives. These matters are set forth in the
Asset Management Objective, which must be aligned with the Asset Management Policy and PLN Corporate
strategic objectives.

As part of e orts to improve employees' awareness in Asset Management, PLN has organized training sessions and
workshops in the form of webinars since 2022 and regular online knowledge sharing sessions held once a week, to
discuss Asset Management involving all PLN employees.

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METRICS & TARGET

GOVERNANCE

QUALITY MONITORING SYSTEM

Recognizing the significant impact of this quality aspect, PLN is committed to ensuring quality at every operational
step. This commitment is reflected in the e ort to meet the international quality standard ISO 9001-2015,
recognized as a global quality benchmark. By December 2023, 42 business units out of a total of 46 across
Indonesia have successfully obtained ISO 9001-2015 certification. In other words, the percentage of certified PLN
units by 2023 has reached 90%, demonstrating PLN's strong commitment to consistently improve quality. This
percentage is nearly approaching the target achievement of PLN's Integrated Management System, which is aimed
to reach 100% by 2027.

It is necessary to establish a monitoring system for the quality of electrical materials to be used by PLN. Hence, PLN
established Director's Regulation No. 0069 of 2016 to ensure the reliability of the quality of material provided by
contractors to support PLN in providing electrical energy, as well as to support the implementation of domestic
product utilization policies in the development of electrical infrastructure and supervision of imported products
that are not produced domestically. To fulfill the MDU and MTU requirements, PLN collaborated with material
suppliers, all of whom have manufacturing facilities domestically.

After implementing this initiative, PLN through its unit PLN PUSERTIF (PLN Certification Center), issued SPM
Certificates for contractors providing materials using domestic manufacturing processes. For contractors
supplying materials with manufacturing processes from overseas, PLN issues a Certificate in the form of SRM. Until
2023, PLN PUSERTIF has issued 1.217 SPM certificates to 126 contractors and 20 SRM certificates to 14
contractors.

IMPLEMENTATION AND CERTIFICATION OF ISO 27001

In 2022, PLN obtained the ISO 27001:2013 certification, which will be valid until 2025. Surveillance audits are
carried out annually observe how PLN is implementing the ISO standards. The 2024 surveillance audit's findings
verified PLN's continued eligibility to use the ISO 27001:2013 certification. PLN plans to maintain its certification for
ISO 27001:2022 in 2025. As part of its integrated cybersecurity system, PLN conducts annual evaluations of IT
maturity levels. Using the COBIT IT measuring criteria, the IT maturity level was determined to be 3.33 in 2023.

TRANSMISSION LOSS RATE

PLN plans The e iciency and reliability of the electrical transmission system are PLN's top priorities in maintaining
the quality of service to customers. One of the crucial performance indicators used to monitor the reliability of the
system is System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index
(SAIFI). SAIDI measures the average duration of power outages within a certain period, while SAIFI measures the
average frequency of outages experienced by customers.

Through the Strategic Distribution Planning Division, PLN routinely monitors SAIDI and SAIFI data and periodically
reports to the Company's BoD through the ESG SWR Dashboard, an integrated platform that enables the collection,
analysis, and reporting of ESG performance data.

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Table IX.2 Targets and Achievement of SAIDI and SAIFI

2023
2023 2022
2022 2021
2021
Target Achievement
Achievement Target Achievement
Achievement Target Achievement
Achievement
SAIDI (Minute/ Customer) 530.08 338.13 756 463.20 860 540.12
SAIFI (Event/Customer) 6.60 4.27 8.30 5.62 9.50 6.70

VENDOR EVALUATION
Vendor Evaluation is based on contractual performance monitoring, conducted at a corporate level within PLN. The
responsibility for contractual performance evaluation and rating is carried out by contract users/user representatives, as
stated in the applicable procurement regulation. Based on the current capabilities of the Enterprise Resource Planning
system, the data acquisition of Contract dataset and contractual performance dataset is conducted together with data
downloaded from the Supply Chain Management Marketplace Application and manual data acquisition.

The Vendor Management department has published the following vendor performance evaluation report:

Table IX.3 Vendor Performance Evaluation

Contract Organizational Vendor

No Cluster Publish Date Contract Quantity Organizational Vendor
Quantity Involvement Quantity

EPC (Semester 1 2023

1 20 November 2023 458 EPC Contracts 11 PLN Units 174 vendors
Period)
Distribution & 213 Umbrella
108 umbrella
Transmission Umbrella contracts (Resulting
2 26 February 2024 1 PLN Headquarters contract
Contract (Semester 1&2 6042 Derivative
vendors
2023 Period) Contracts)
1175 EPC & Non-
EPC & Non-Umbrella
Umbrella
3 Contract Procurement 22 March 2024 23 PLN Units 354 vendors
Procurement
(Semester 2 2023 Period)
Contracts
1 Umbrella 1 umbrella
Lubricant Umbrella contracts (Resulting contract
4 3 June 2024 1 PLN Headquarters
Contract (2023 Period) 58 Derivative vendor & 26
Contracts) distributors

Based on the cluster-based vendor performance evaluation reports, the assessments cover 471 private
companies, foreign companies, SOEs, CVs, and cooperatives. The objective is to create an information base that
can be utilized by procurement planners and implementers, both at the central and unit levels, to procure quality
vendors

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RISK MANAGEMENT
In the Product Governance aspect, PLN faces several high-impact risks. Providing electricity to the entire
community is critical for the Company's sustainability, making e ective product management essential for
delivering satisfactory services. Risks arise from inadequate investment in infrastructure development, grid quality
and resilience, high electricity demand, and the expansion of solar power plants. Infrastructure gaps in remote
areas can hinder the increase in electrification rates, while transmission grid resilience is vital to prevent electricity
loss, cyber-attacks, and damage from natural disasters, all of which contribute to high operational costs.

Table IX. 4 Quantitative Risk Mitigation of Product Governance

Related
Risks Risk Level Treatment Measurement
Metrics & Targets

Inadequate infrastructure in remote Extend PLN's infrastructure coverage to

Electrification Low (2)
areas slows down the increase in remote areas and ensure regular
Ratio
electrification ratios. monitoring procedures are carried out.

Conduct regular monitoring to ensure

There is electricity loss during the the quality of all components is well-
Transmission
transmission process from power High (23) maintained and implement Smart Grid
Loss Rate
plants to households or end-users. to e iciently manage electricity and
provide reliable power supply.

Develop a mapping of community

electricity needs regarding electricity
The increasing domestic energy availability and developing Renewable
Access to energy High (21)
demand. Energy Sources power plants along with
technologies to manage energy
fluctuations.

Ensure that PLN's electricity generation

Experiencing a significant price capacity meets the needs of the entire
increase due to electricity Access to energy Moderate (13) community and increase public
shortages. awareness about the importance of
conserving electricity usage.

Lack of resilience in electricity

Ensure the backup system readiness or
network infrastructure can lead to
Access to energy Low (4) recovery system readiness in case of
transmission and distribution
disruptions.
disruptions and blackouts.

Decrease electricity usage by Optimize market intelligent in

Moderate to High
customers resulting in electricity Access to energy conducting market research and
(16)
capacity sale gap. update customer surveys.

Failure in business development Business

High (24) Implement business strategy.
resulting in loss of revenue. Continuity

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Related
Risks Risk Level Treatment Measurement
Metrics & Targets

Cyber-attack on IT (Information Increase cyber security awareness

Technology) and OT (Operation High (24) and strengthen data protection
Cybersecurity
Technology). measures.

Evaluate current budget allocation

Limitation of internal funding in and source alternative fundings,
Green Funding High (23)
electricity investment. including launching corporate
bonds/obligations.

Table IX. 5 Qualitative Risk Mitigation of Product Governance

Related
Risks Risk Level Treatment Measurement
Metrics & Targets

Supervise and evaluate the

implementation of the local
The implementation of local
Sustainable Moderate to High procurement program periodically.
procurement has not achieved the
Supply Chain (19)
set target.
Collaborate with third parties,
including MSMEs.

Develop the IGSCE program

implementation.

Failure to achieve procurement

In 2024, a study will be conducted
performance target due to the failure
for the implementation of a
to implement Integrated Green Green Funding Moderate (13)
Sustainable Supply Chain.
Supply Chain Excellence (IGSCE)
program.
Ensure vendor/supplier
compliance with supplier
provisions from PLN.

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BUSINESS ETHICS

PLN upholds business ethics through a comprehensive Code of Conduct, actively enforcing anti-corruption
practices, including whistleblower protection and compliance management. PLN has identified business
ethics-related risks and implemented mitigation measures to ensure compliance with legal requirements
and foster a culture of ethical behavior throughout the organization.

GOVERNANCE

COMPANY'S COMMITMENT
PLN is determined and committed to fostering a professional culture and has the Code of Conduct and Business
Ethics to serve as behavioural guidelines in accordance with the Company's expectations. Within the Company's
business ethics framework, regulations have been established concerning conflict of interest, bribery, gratuities,
equal opportunities in employment, information protection, social and political activities, equal human rights,
and other related matters. PLN is also committed to conducting risk identification concerning business ethics,
referring to Director's Regulation No. 0015 of 2023 concerning strategic compliance management policies.
Operational guidelines pertaining to business ethics are detailed in derivative documents governing the
management of business ethics aspects as outlined in PLN's code of conduct/ business ethics document.

In the context of anti-corruption, the Company's commitment on Anti-Bribery is also reflected in Director's
Regulation No. 0015 of 2023. This policy regulates Anti-Bribery, types of bribery practices, exempted practices,
Anti-Bribery cultures, proactive strategies for bribery prevention and detection, reactive strategies, and sanctions.
PLN also established Director's Regulation No. 0076 of 2017 concerning Guidelines for Gratuity Control at PT PLN
(Persero). This policy regulated on the Principles of Gratification Control, Types of Gratification, Utilization and
Management of Gratification, Implementation of Gratification Control Guidelines, Reporting and Sanctions, and
Protection.

EXECUTIVE RESPONSIBILITY
In PLN, executive responsibility for business ethics programs falls under the Sustainability Committee, which
oversees implementation and monitoring. The EVP of Compliance Division reports to the Director of Legal and
Human Capital. At the unit level, General Managers handle responsible management, while Chairperson
appointed by the authorized Leader or Director manage sub-holdings and subsidiaries. These Leaders ensure
e ective execution and supervision of ethical practices and provide consultancy on ethical issues. For guidance on
anti-corruption and gratuities, the Gratuity Control Unit is available. The PLN ETS Division monitors the application
of business ethics across sub-holdings and subsidiaries.

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STRATEGY
PLN has implemented the following strategies to • Restriction on Using Company Resources:
prevent bribery and corruption: Employees are not allowed to use their positions,
assets, or Company facilities to support any poli-
Implementation of Code of Conduct and Business tical activities or interests.
Ethics. This document is a guideline for behaving in • Ban on Political Attributes: Employees are for-
accordance with the Company's expectations, bidden from wearing or displaying any political
thereby fostering distinctive behaviour that sets PLN party or social organization attributes within the
apart from other companies. The document outlines Company's work environment.
guidelines regarding conflict of interest, gratification, • Resignation for Political Ambitions: Employees
OHS, environment, non-discrimination, financial who wish to actively become members or leaders
reporting integrity, corporate information protection, of a political party, an organization a iliated with a
whistleblowing systems, protection of Company political party or run for positions such as Head/
assets, social and political activities, ethics related to Deputy Head of Region, President, Vice Presi-
stakeholders, the code of conduct, and violations and dent, or Legislative Member must resign from the
sanctions. In line with the management commitment PLN Group.
and the code of conduct and business ethics, every • Sanctions for Political Candidacy: Employees
year PLN personnel and their partners are required to who are found running for positions such as Presi-
sign an Integrity Pact as a form of full compliance and dent, Vice President, Head/Deputy Head of Re-
adherence to the 4 No's principle (No Bribery, No gion, or Legislative Member will face sanctions
Kickback, No Gift, and No Luxurious Hospitality). according to the Company's regulations.

In the terms of political activities, PLN upholds a The Compliance Management Strategy is imple-
strict code of conduct and business ethics concern- mented by managing Compliance Risk across all PLN
ing the involvement of its employees in political business processes and activities. This includes
activities. The Company is not a iliated with, nor does managing business ethics and anti-corruption
it sponsor, any political party or political activities. Any measures through the application and development
sponsorship or donations provided by the Company of assessment, prevention, detection, and response
are solely for branding purposes and as part of its systems. Monitoring and evaluation are conducted at
social and environmental responsibility due to the each stage: assessment, prevention, detection, and
Company's operations in various regions. response, as illustrated in the following diagram:

The Company respects the political rights of every

member of the PLN Group to exercise their political
rights in accordance with the applicable laws and
regulations. However, PLN sets specific boundaries
for the involvement of its employees in political
activities, as follows:
• Professionalism and Neutrality: Employees
must perform their duties and responsibilities
within the Company, act professionally, and
remain neutral in any political activities.
• Prohibition on Political Involvement: PLN em-
ployees are prohibited from becoming leaders,
members, or being directly involved in any politi-
cal party or any organization a iliated with a politi-
cal party.
Figure X. 1: Compliance Management Strategy

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PLN holds biannual business ethics awareness

programs, along with weekly behaviour campaigns
through its internal online platforms, https://cos.pln
.co.id and https://budaya.pln.co.id. These mandatory
programs ensure that all employees stay informed
and aligned with the company's ethical standards.

PLN's commitment to anti-bribery measures is under-

scored by its attainment of certification under SNI ISO
37001:2016. Implementation of the SNI ISO 37001: 2016
Anti-Bribery Management System is a form of
implementing an e ective anti-bribery management
system in PLN as a form of corruption prevention and
detection.

PLN's commitment on anti-bribery is also reflected in

Director's Regulation No. 0010 of 2022 concerning the
Whistleblowing System. This policy aimed to prevent and
reduce losses as a result from fraud and/or violations
through early detection. This policy regulated the
complaint mechanism and its follow-up actions.

The BoD as the person in charge of the policy is

committed to realizing a culture of compliance by
establishing a compliance management policy that
involves all PLN personnel and other stakeholders. In PLN has issued a policy on Confidentiality and
carrying out its commitment, the BoD is assisted by the Whistleblower/Witness Protection. Whistleblowers
Compliance Function Unit, Risk Function Unit, Internal and witnesses, including Company employees and
Audit Unit, and all Work Units including sub-directorates, external parties, are entitled to identity protection
divisions, units, Company secretariats, Parent Units, and confidentiality, with special protection and
Centres, Sub-holdings, and Subsidiaries. rehabilitation for Company employees; all informa-
tion and processes in this regulation are confidential,
Implementation of Whistleblowing System. This and disclosure of information may result in disci-
system allows all PLN personnel, consumers, plinary violations; whistleblower confidentiality in-
suppliers, and external parties to report violations of volves identity and complaint materials that are only
the code of ethics, illegal activities, or breaches of known by the managing unit with certain approvals.
Company regulations that could harm the Company
or its stakeholders. The program features indepen- Every report of a violation of the code of ethics and
dent hotlines and reporting channels available 24/7, non-compliance will be processed through the me-
including: chanism agreed upon in the Collective Labor Agree-
• Website Compliance Online System: ment where the sanctions will be adjusted to the level
https://cos.pln.co.id/wbs/lapor of the violation committed.
• PLN Mobile Application
• Phone, Short Message Service (SMS) or PLN also conducts compliance awareness programs
WhatsApp to 081-1986-1901 twice a year through its internal online training
• Email to [email protected], and platform, cos.pln.co.id. This program is mandatory
• Mail to: Executive Vice President Compliance for all employees. Categories included in this
Kantor Pusat PLN Kantor Pusat Jalan Trunojoyo Compliance Awareness program are Fraud, Integrity
Blok M – I No. 135 Kebayoran Baru, Jakarta 12160. Due Diligence, Anti-Bribery Management System,
Whistle-blowing System, and related case studies.

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METRICS & TARGETS

COMPLIANCE MANAGEMENT SYSTEM IMPLEMENTATION
The maturity level of the compliance management system implementation at PLN is categorized at six levels, ranging from
Level 0 to Level 5. Level 0 represents the initial stage with the lowest maturity, while Level 5 represents the highest level of
maturity. This measurement is based on a combination of quantitative and qualitative criteria fulfillment.

The compliance maturity level of PLN in 2023 was recorded at 4.52. This figure not only surpasses the 2023 target of
4.2 but also signifies notable progress in the Company's maturity journey. These achievements highlight PLN's
commitment to continuous improvement and adherence to high compliance standards, demonstrating significant
strides in enhancing its organizational maturity. Achieving these levels indicates a robust implementation of
management and process systems within PLN, reflecting a well-established and e icient operational framework.

To support this advancement, PLN has enforced integrity awareness e-learning on the Compliance Online System
channel as a mandatory activity for all personnel. This initiative is aimed at evaluating and enhancing the level of
understanding and commitment to integrity among employees.

The completion rates for the Awareness Integrity e-learning sessions were as follows:

Table X.1 Awareness Integrity Completion Rate

Awareness Integrity
Awareness Completion
Integrity Year
Completion
Rate Rate 2020 2021 2022 2023
2020 2021 2022 2023

1st Semester (%) 91.77 92.67 98.20 94.98

2nd Semester (%) 93.19 98.87 98.72 97.14

These completion rates underscore the e ectiveness and crucial role of integrity awareness programs in promoting
a culture of compliance and ethical behavior at PLN. The high rates, particularly in recent years, reflect PLN
personnel's strong commitment to these values and contribute significantly to the organization's overall maturity
and integrity.

The integrity awareness e-learning consists of a comprehensive set of materials designed to educate PLN
personnel on various aspects of compliance and anti-bribery management. The following table provides an
overview of the mandatory e-learning materials that PLN personnel have completed on the Compliance Online
System channel:

Table X.2 Mandatory e-learning Materials

Category
Category Materials
Materials

Fraud Characteristics of fraud

Integrity Due Diligence IDD Activities and assessment aspects
Anti Bribery Management System Anti Bribery Management System
Compliance Management Strategy Basic regulations of Compliance Management System
Whistle Blowing System Facilities protection, confidentiality and sanctions

The in-depth listing of materials further emphasizes PLN's dedication to ensuring all employees are well-versed in
compliance and integrity, supporting the Company's goal of achieving and maintaining high maturity levels in its
compliance management system implementation.

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 ESG Performance Report 2023

RISK MANAGEMENT
PLN continues to conduct preventive actions for violations of business ethics by continuing to provide socialization
to all employees to ensure that employees understand the Company's values and code of ethics. PLN is dedicated
to ensuring that policies and compliance are implemented in accordance with all legal requirements.

Table X.3 Quantitative Risk Mitigation of Business Ethics

Related
Risk Risk Level Treatment Measurement
Metric & Target

1. Raise awareness for employees

regularly at least once a year, related
to corporate governance policies
including the establishment of clear
Existence of concurrent Moderate to positions
Business Ethics
positions High (16)
2. Socialize to all employees that they
must avoid all forms of conflict of
interest, either directly or indirectly.

Organize Code of Conduct socialization

for all employees regularly on their rights
Existence of Legal Violations Business Ethics Low (3) and obligations including the do's &
don'ts for employees in the working
environment.

The whistleblower can face Organize socialization about the Whistle

intimidation, dismissal, or Blowing System procedures related to
other countermeasures from Business Ethics Low (3) whistleblower protection so that it can be
the parties involved in the implemented properly in the process of
o ense. handling violation reports.

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 ESG Performance Report 2023

FUTURE PLAN
In the upcoming financial year, PLN remains committed to transparent engagement on

sustainability performance and will continue to enhance its reporting approach in accordance

with the IFRS S1 Standard. Looking ahead, we plan to refine metrics and targets and establish

baselines for metrics that have not set targets yet.

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ATTACHMENT
 ESG Performance Report 2023

IFRS S1
ALIGNMENT
The PLN ESG Performance Report 2023 has been
developed to the best extent possible this year,
adopting the IFRS S1 Standard to initiate
compliance with international financial reporting
requirements for sustainability-related disclosures.
Looking ahead, PLN remains committed to
transparent sustainability communication and will
continue enhancing its reporting practices to better
align with the IFRS S1 Standard.

Main Elements IFRS S1 Sustainability-related Disclosure Report Section

The governance processes, controls and procedures Sub Section

to monitor and manage sustainability-related risks GOVERNANCE on each
and opportunities. Chapter
Governance

The approach to manage sustainability-related risks Sub Section STRATEGY

and opportunities. on each Chapter
Strategy

The performance in relation to sustainability-related Sub Section METRICS &

risks and opportunities, including progress towards TARGETS on each
any targets to meet by law or regulation. Chapter
Metric and Targets

The processes to identify, assess, prioritise and Sub Section RISK

monitor sustainability-related risks and opportunities. MANAGEMENT on each
Chapter
Risk Management

125 Sustainability-Related Financial Disclosure

8
 ESG Performance Report 2023

International Financial Reporting Standards (IFRS) S2

Climate-related Disclosure Alignment

Theme Recommended Disclosure PLN Report Report Sections

Governance Describe the governance body for oversight ESG Performance Climate Change
of climate-related risks and opportunities Report 2023 Management – Governance
- Company’s Commitment
Describe management’s role in the ESG Performance Climate Change
governance processes, controls and Report 2023 Management – Governance
procedures used to monitor, manage and - Executive Responsibility
oversee climate-related risks and
opportunities
Strategy Describe the climate-related risks and ESG Performance Climate Change
opportunities the organization has identifies Report 2023 Management – Strategy,
over the short, medium, and long term Risk Management
Describe business model and value chain ESG Performance We do not disclose in this
based on climate-related risks and Report 2023 report
opportunities
Describe strategy and decision -making ESG Performance Climate Change
based on how the entity responds to Report 2023 Management - Strategy
climate-related risks and opportunities
Describe financial position, financial ESG Performance We do not disclose in this
performance, and cash flows over the Report 2023 report
short, medium, and long term (anticipated
financial effects of climate -related risks
and opportunities
Describe the entity climate resilience ESG Performance Climate Change
strategy, how and when the climate -related Report 2023 Management – Strategy
scenario analysis was carried out
Risk Management Describe the process and related policies ESG Performance Climate Change
uses to identify, assess, priorities, and Report 2023 Management – Governance
monitor climate-related risks - Company’s Commitment
Describe the processes the entity uses to ESG Performance Climate Change
identify, assess, prioritize, and monitor Report 2023 Management – Governance
climate-related opportunities - Company’s Commitment
Describe how the processes for identifying, ESG Performance Risk Management
assessing, prioritizing, and monitoring Report 2023
climate-related risks are integrated into
organization’s overall risk management

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 ESG Performance Report 2023

Theme
Theme RecommendedDisclosure
Recomended Disclosure PLNReport
PLN Report Report Sections
Report Sections

Metric & Targets Disclose about information relevant to the ESG Performance Climate Change
cross-industry metric categories Report 2023 Management – Metrics &
(greenhouse gas (GHG), climate-related Targets
transition and physical risks and
opportunities, capital deployment, internal
carbon prices, and remuneration)
Disclose industry-based metrics that are ESG Performance We do not disclose in this
associated with the particular business Report 2023 report
models, activities, or other common
features that characterize participation in
and industry
Disclose targets set by the entity including ESG Performance Climate Change
metrics uses by the management, target Report 2023 Management – Metrics &
required to meet the regulation, mitigate, or Targets
adapt to climate-related risks and
opportunities

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 ESG Performance Report 2023

Taskforce on Nature-related Financial Disclosures (TNFD) Alignment

Theme
Theme Recomended Disclosure
Recommended Disclosure PLN
PLN Report
Report Report
Report Sections
Sections

Governance Describe the board's oversight of nature -related ESG Performance Nature Management -
dependencies, impacts, risks and opportunities Report 2023 Governance -
Executive
Responsibility
Describe management's role in assessing and managing ESG Performance Nature Management-
nature-related dependencies, impacts, risks, and Report 2023 Governance -
opportunities Company's
Commitment
Describe the organization's human right policies and ESG Performance Nature Management-
engagement activities, and oversight by the board and Report 2023 Strategy -
management, with respect to Indigenous Peoples, Local Engagement with
Communities, affected and other stakeholders, in the Local Community
organization's assessment of, and response to nature -
related dependencies, impacts, risks, and opportunities
Strategy Describe the nature-related dependencies, impacts, ESG Performance We do not disclose in
risks and opportunities the organization has identified Report 2023 this report
over the short, medium, and long term
Describe the effect nature-related dependencies, ESG Performance Nature Management -
impacts, risks and opportunities have had on the Report 2023 Risk Management
organization's business model, value chain, strategy and
financial planning, as well as any transition plans or
analysis in place
Describe the resilience of the organization's strategy to ESG Performance Nature Management -
nature-related risks and opportunities, taking into Report 2023 Strategy
consideration different scenarios
Disclose the locations of assets and/or activities in the ESG Performance Nature Management-
organization's direct operations and, where possible, Report 2023 Strategy - Biodiversity
upstream and downstream value chains that meet the Identification and
criteria for priority locations Management Plans
for Priority Areas
Describe how processes for identifying, assessing, ESG Performance Risk Management
prioritizing and monitoring nature -related risks are Report 2023
integrated into and inform the organizations overall risk
management processes.

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 ESG Performance Report 2023

Theme
Theme Recommended
Recomended Disclosure
Disclosure PLNReport
PLN Report Report Sections
Report Sections

Risk Describe the organizations processes for identifying, ESG Performance Nature Management-
Management assessing and prioritizing nature-related dependencies, Report 2023 Strategy - Best
impacts, risks and opportunities in its direct operations Practice of Mitigation
Hierarchy
Describe the organisations processes for identifying, ESG Performance Nature Management-
assessing and prioritising nature-related dependencies, Report 2023 Strategy- Best
impacts, risks and opportunities in its upstream and Practice of Mitigation
downstream value chains Hierarchy
Describe the organizations processes for managing ESG Performance Nature Management-
nature-related dependencies, impacts, risks and Report 2023 Strategy- Best
opportunities Practice of Mitigation
Hierarchy
Describe how processes for identifying, assessing, ESG Performance Risk Management
prioritizing and monitoring nature-related risks are Report 2023
integrated into and inform the organizations overall risk
management processes.
Metrics and Disclose the metrics used by the organization to assess ESG Performance Nature Management-
Targets and manage material nature-related risks and Report 2023 Metrics and Target
opportunities in line with its strategy and risk
management process
Disclose the metrics used by the organization to assess ESG Performance Nature Management-
and manage dependencies and impacts on nature Report 2023 Metrics and Target
Describe the targets and goals used by the organization ESG Performance Nature Management-
to manage nature-related dependencies, impacts, risks Report 2023 Metrics and Target
and opportunities and its performance against these.

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 ESG Performance Report 2023

Sustainability Accounting Standards Board (SASB) Alignment

Topic
Topic Metric
Metric Category
Category Unit of
UnitMeasure
Of Measure Code
Code Report Section
Report Section

Greenhouse Gross global Scope 1 Quantitative Metric tons (t) IF-EU- Climate Change
Gas Emissions & emissions, CO2-e, 110a.1 Management – Metric
Energy Resource percentage Percentage (%) & Targets
Planning covered under
emissions-limiting
regulations and
emissions-reporting
regulations

Greenhouse gas Quantitative Metric tons (t) IF-EU- Climate Change

(GHG) emissions CO2 -e 110a.2 Management – Metric
associated & Targets
with power deliveries

Discussion of long- Discussion and n/a IF-EU- Climate Change

and short-term Analysis 110a.3 Management –
strategy or plan to Strategy – GHG
manage Scope 1 Emission Reduction
emissions, emissions Programs
reduction targets, and
an analysis of
performance against
those targets

Air Quality Air emissions of the Quantitative Metric-tons (t), IF-EU- Environmental
following pollutants: Percentage (%) 120a.1 Management – Metric
(1) NOx (excluding & Targets – Non GHG
N2O), (2) SOx,(3) PM10, Air Emission
(4) lead (Pb), and (5)
mercury
(Hg); percentage of
each in or near areas
of dense population

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 ESG Performance Report 2023

Topic
Topic Metric
Metric Category
Category Unit of
UnitMeasure
Of Measure Code
Code Report Section
Report Section

Water (1) Total water Quantitative Thousand cubic IF-EU- Resource

Management withdrawn, meters (m³), 140a.1 Management – Metric
(2) total water Percentage (%) & Targets - Water
consumed;
percentage of each
in regions with High
or Extremely High
Baseline Water
Stress

Number of Quantitative Number IF-EU- We do not disclose

incidents of non- 140a.2
compliance
associated with
water quality
permits, standards
and regulations

Description of water Discussion n/a IF-EU- Resource

management risks and 140a.3 Management – Risk
and Analysis Management
discussion of
strategies and
practices to
mitigate those risks

Coal Ash (1) Amount of coal Quantitative Metric-tons (t), IF-EU- Environmental
Management combustion Percentage (%) 150a.1 Management – Metric
residuals (CCR) & Targets – Non-
generated, (2) Hazardous Waste
percentage
recycled

Description of coal Discussion n/a IF-EU- Information not

combustion and Analysis 150a.3 disclosed in this
products (CCPs) report
management
policies and
procedures for
active and inactive
operations

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Topic
Topic Metric
Metric Category
Category Unit of
UnitMeasure
Of Measure Code
Code Report Section
Report Section

Energy Average retail Quantitative Rate IF-EU- Information not

Affordability electric rate for 240a.1 disclosed in this
(1) residential, report
(2) commercial,
and (3) industrial
customers

(1) Number of Quantitative Number, Information not

residential Percentage IF-EU- disclosed in this
customer electric (%) 240a.3 report
disconnections
for non-payment,
(2) percentage
reconnected
within 30 days

Discussion of Discussion and n/a IF-EU- Information not

impact of external Analysis 240a.4 disclosed in this
factors on report
customer
affordability of
electricity,
including
the economic
conditions of the
service
territory

Workforce (1) Total Quantitative Rate IF-EU- Occupational Health

Health & Safety recordable 320a.1 & Safety – Metric &
incident rate Targets
(TRIR), (2) fatality
rate, and (3) near
miss frequency
rate
(NMFR)

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 ESG Performance Report 2023

Topic
Topic Metric
Metric Category
Category Unit of
UnitMeasure
Of Measure Code
Code Report Section
Report Section

End-Use Percentage of Quantitative Percentage (%) IF-EU- Information not

Efficiency & electric load served by megawatt 420a.2 disclosed in this report
Demand by smart hours (MWh)
grid technology

Customer Quantitative Megawatt IF-EU- Information not

electricity savings hours (MWh) 420a.3 disclosed in this report
from efficiency
measures, by
market
Nuclear Safety Total number of Quantitative Number IF-EU- Not relevant
& Emergency nuclear power 540a.1
Management units, broken
down by results of
most recent
independent
safety review

Description of Discussion n/a IF-EU- Not relevant

efforts to manage and 540a.2
nuclear Analysis
safety and
emergency
preparedness
Grid Resiliency Number of Quantitative Number IF-EU- Product Governance –
incidents of non- 550a.1 Strategy -
compliance with Cybersecurity Program
physical or
cybersecurity
standards or
regulations

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Topic
Topic Metric
Metric Category
Category Unit of
Unit OfMeasure
Measure CodeCode Report
Report Section
Section

Grid Resiliency (1) System Average Quantitative Minutes, IF-EU- Product Governance –
Interruption Number 550a.2 Metric & Targets
Duration
Index (SAIDI), (2)
System Average
Interruption
Frequency Index
(SAIFI), and (3)
Customer
Average Interruption
Duration Index
(CAIDI),
inclusive of major
event days4

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Activity Metric Category Unit of Measure Code Report Section

Number of: (1) residential, Quantitative Number IF-EU-000.A Information not

(2) commercial, and (3) disclosed in this report
industrial
customers served

Total electricity delivered Quantitative Megawatt IF-EU-000.B Information not

to: (1) residential, (2) hours (MWh) disclosed in this report
commercial, (3)
industrial, (4) all other retail
customers, and (5)
wholesale
customers

Length of transmission and Quantitative Kilometers (km) IF-EU-000.C Information not

distribution lines (6) disclosed in this report

Total electricity generated, Quantitative Megawatt hours IF-EU-000.D Resource Management

percentage by major energy (MWh), Percentage – Metric & Targets -
source, percentage in (%) Energy
regulated markets

Total wholesale electricity Quantitative Megawatt hours IF-EU-000.E Information not

purchased (8) (MWh) disclosed in this report

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Sustainable Development Goals (SDGs) Alignment

Topic
Topic Aspects
Aspects Support SDGs
Support SDGsIndicators
Indicators

Climate Change GHG Reduction Program 13.2.2 Total greenhouse gas emissions per year
Management
GHG Reduction Target 13.2.2.(a) Potential reduction in greenhouse gas emissions

Carbon Emission and Intensity 13.2.2.(b) Potential reduction in greenhouse gas emission
intensity

Scope of GHG Reporting and 13.2.1 Implementation of greenhouse gas (GHG) inventory,
GHG Emission Management as well as monitoring, reporting, and verification of GHG
Monitoring & Measurement emissions reported in the Biennial Update Report (BUR)
and National Communications.

Environmental Environmental Management 12.6.1.(a) Number of companies with SNI ISO 14001
Management System certification

Non-Hazardous Waste 11.6.1.(b) Percentage of national waste managed

Management 12.5.1.(a) Amount of recycled waste.

Hazardous Waste 12.4.2 (a) Hazardous waste generated per capita; and (b)
Management Proportion of hazardous waste treated/managed

Effluent Management 6.3.1.(a) Percentage of industrial wastewater safely treated

Non-GHG Air Emission 11.6.2.(a) Annual average concentration of PM10

Management 11.6.2.(b) Air Quality Index

Resource Management New Renewable Energy 7.2.1 Renewable energy mix.

Programs 7.3.1 Primary energy intensity.
7.b.1 Installed Capacity of Renewable Energy Power Plants
(in watts per capita)

Energy Efficiency 12.1.1 Plan and implementation of the Strategy for

Achieving Sustainable Consumption and Production
Patterns
12.a.1 Installed Capacity of Renewable Energy Power
Plants (in watts per capita)

Water management programs 6.4.1 Change in water use efficiency over time

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Topic Aspects Support SDGs Indicators

Water Risk Management 6.4.2.(a) Proportion of surface water withdrawal against

availability
6.4.2.(b) Proportion of groundwater withdrawal against
availability
6.5.1 Degree of integrated water resources management (0-
100)

Nature Management Biodiversity Identification & 15.9.1.(a) Biodiversity utilization Aichi Biodiversity Target 2
Management from the Strategic Plan.
15.5.1 Red List Index

Biodiversity and Land 15.2.1 Progress towards sustainable forest management

Rehabilitation 15.3.1 Proportion of degraded land

Community Development & 8.3.1 Proportion of informal employment, by sector and

Community Involvement gender
Program 8.3.1.(a) Percentage of MSMEs (Micro, Small, and Medium
Enterprises) with access to financial services
12.8.1.(a) Number of formal education units and community
organizations focused on environmental awareness

Community Relations Emergency Response 8.8.1 Frequency rates of fatal and non-fatal workplace
Program accidents, by gender, sector, and migrant status
8.8.1.(a) Number of companies implementing occupational
health and safety standards
13.1.2 Plan and implementation of national disaster risk
reduction strategy aligned with the Sendai Framework for
Disaster Risk Reduction 2015-2030

Access to Basic Service 1.4.1 Percentage of population living in households with

access to basic services.
6.1.1* Percentage of households using safely managed
drinking water services
7.b.1 Installed capacity of renewable energy power plants (in
watts per capita)

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Topic
Topic Aspects
Aspects Support SDGs
Support SDGsIndicators
Indicators

Customer Eco-Efficiency 12.1.1 Plan and implementation of the Strategy for

Program Achieving Sustainable Consumption and Production
Patterns.
12.8.1.(a) Number of formal education units and
community organizations focused on environmental
awareness.
17.17.1 Number of commitments for public-private
partnerships for infrastructure (in US dollars)
17.17.1.(b) Number of projects offered for implementation
under the Government and Business Entity Cooperation
scheme.

OHS Contractor Safety 8.8.1 Frequency rates of fatal and non-fatal workplace
Management System (CSMS) accidents, by gender, sector, and migrant status
8.8.1.(a) Number of companies implementing
occupational health and safety standards
12.7.1 Degree of public procurement policy and
implementation of action plans.

Maturity Level of OHS 8.8.1 Frequency rates of fatal and non-fatal workplace
Management accidents, by gender, sector, and migrant status
8.8.1.(a) Number of companies implementing
occupational health and safety standards.

Human Capital Labour Rights 5.1.1 Availability of legal frameworks that promote,
Management establish, and monitor gender equality and the elimination
of discrimination based on gender
8.8.2 Improvement in compliance with workers’ rights
(freedom of association and collective bargaining) based
on ILO textual sources and relevant national legislation

Human Capital and 8.5.1 Average hourly wage of workers

Organization Capital 8.b.1 Existence of a national strategy for youth
Readiness (HCR & OCR) employment that is developed and operational as a
specific strategy or as part of the national employment
strategy
9.5.2.(a) Proportion of human resources in science and
technology with a Doctorate (PhD)

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Topic
Topic Aspects
Aspects Support SDGs
Support SDGsIndicators
Indicators

GEDSI Diversity Programs 16.7.2.(c) Equality Index

Srikandi Programs & Women 5.1.1 Availability of legal frameworks that promote,
Talent Retention establish, and monitor gender equality and the elimination
of discrimination based on gender
5.5.2 Proportion of women in managerial positions

Product Governance Cybersecurity 7.1.1 Electrification ratio

7.1.1.(a) Electricity consumption per capita

Procurement 12.1.1 Plan and implementation of the Strategy for

Achieving Sustainable Consumption and Production
Patterns
12.7.1 Degree of public procurement policy and
implementation of action plans

Asset Management 7.1.1 Electrification ratio

7.1.1.(a) Electricity consumption per capita

Quality Monitoring System 7.1.1 Electrification ratio

7.1.1.(a) Electricity consumption per capita

Transmission Loss Rate 7.1.1 Electrification ratio

7.1.1.(a) Electricity consumption per capita

Business Ethics Business Ethics 16.5.1.(a) Anti-Corruption Behavior Index

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ESG
PERFORMANCE
REPORT
2023 139