Climate Change Data

Environmental Metrics

ESG Focus Areas

• Social and Environmental Responsibility

Social Achievements

• Donation to Yayasan Kasih Persaudaraan Bangsa (KARSA) for education and technology programs and economic empowerment.
• Donation to Yayasan Beri Tanpa Pamrih (BTP) to facilitate donations through the JANGKAU application.

Governance Achievements

• Implementation of Good Corporate Governance (GCG) based on the National Committee of Good Corporate Governance Policy and Indonesian regulations.
• Formation of an Audit Committee and a Nomination and Remuneration Committee.

Environmental Challenges

• Technical challenges related to time and cost of tower construction and land lease costs.
• Non-technical challenges, primarily land acquisition for tower construction.
• Risk of business competition from other independent telecommunication tower companies.
• Risk of failure or delay in development due to land acquisition difficulties, permits, construction delays, and human resource availability.
• Risk of land lease non-renewal or unilateral changes by landowners.
• Risk of changes due to government policies and regulations.
• Financial risks related to working capital, fixed capital, long-term lease payments, and tower equipment purchases.
• Risk of natural disasters affecting operational activities.

Mitigation Strategies

• Strategic approach and negotiation for land acquisition.
• Coordination between marketing and operational teams to evaluate prices and provide affordable services.
• Improved customer care services.
• Thorough planning and preparation for location selection, resource allocation, and funding.
• Competent survey team for potential location identification and landowner approach.
• Stricter location selection and choosing suitable locations.
• Appointing experienced and best tower sub-contractors.
• Maintaining good relationships with landowners, ensuring good condition of leased properties, early lease renewal negotiations, and finding alternative locations.
• Active involvement in independent tower company associations to voice concerns regarding government policies.
• Better financial planning, maintaining good relationships with suppliers and banks, and exploring alternative funding sources.
• Maintaining a balance between short-term and long-term debt.
• Insuring most of the company's assets with adequate coverage.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Occupational Health and Safety
• Employee Competency Training and Development
• Local Communities
• Energy and Emissions

Environmental Achievements

• Started using solar panels in several tower locations to reduce carbon emissions and contribute to a sustainable environment.
• Undertook 80 site audits to maintain environmental health in and around tower locations.

Social Achievements

• Collaborated with the Bersih Transparan Profesional Foundation to donate smartphones to underprivileged school children for online learning.
• Partnered with the Bersih Transparan Profesional Foundation to conduct a free Covid-19 vaccination program for 1,000 participants.
• Maintained a healthy work environment, including adherence to working hour regulations and overtime compensation.

Governance Achievements

• Implemented a robust complaint and feedback mechanism, addressing 48 complaints related to lightning damage in 2021.
• Established a five-practice governance system for anti-corruption, including regular audits and transparent operational procedures.

Climate Goals & Targets

Environmental Challenges

• Adaptation of staff to technological disruptions.
• Occupational health and safety risks during tower construction and maintenance.
• Environmental risks related to material disposal.
• Natural disasters.

Mitigation Strategies

• Employee training and capacity building through simulations.
• Strict adherence to occupational health and safety (OHS) protocols.
• Establishment of procedures for material disposal and site demolition.
• Insurance coverage for natural disasters and careful site selection and preparation.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Opportunities

• Increased use of renewable energy sources.

Reporting Standards

Frameworks Used: GRI Standards: Core option, POJK No. 51/POJK.03/2017

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions

The report details how various initiatives contribute to these SDGs, including education programs, waste management, renewable energy use, and OHS practices.

Awards & Recognition

• Silver recognition from Smartfren B2S Project for endurance and eligibility performance.

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Social Performance
• Environmental Performance
• Good Corporate Governance

Environmental Achievements

• Initiatives to use renewable energy sources (solar panels)
• Prevention of vegetation damage
• Collaboration with local communities to support ecosystem health
• 120 site audits conducted to monitor environmental impact

Social Achievements

• Prevention of child labor practices
• Maintenance of healthy work standards (8 hours/day, 40 hours/week)
• Addressing 32 complaints regarding lightning damage to community electronics
• Commitment to community development and empowerment
• 100% resolution of complaints

Governance Achievements

• Implementation of Good Corporate Governance (GCG) principles
• Establishment of Audit Committee, Nomination and Remuneration Committee, Internal Audit, and Corporate Secretary
• Regular meetings of Board of Commissioners and Audit Committee
• Transparent and independent reporting and audit mechanisms
• Compliance with relevant laws and regulations

Climate Goals & Targets

Environmental Challenges

• Global economic uncertainty due to geopolitical tensions
• Risks to business continuity
• Technical challenges in tower development (time and cost)
• Non-technical challenges in land acquisition
• Risk of business competition
• Risk of failure or delay in development
• Risk of change due to government policy
• Risk of finance
• Risk of natural disaster

Mitigation Strategies

• Risk mitigation strategies implemented
• Careful planning and preparation for tower development
• Competent survey team for land acquisition
• Negotiation strategies for land acquisition
• Coordination between marketing and operations teams
• Improved customer service
• Careful planning and preparation in determining location, preparing experienced resources and preparing funds according to the plan
• Forming a competent survey team to look for potential locations and approaching land owner
• Holding a tighter selection of location and finding the location which is more suitable for tower allotment, and appointing the best tower sub contractor having a sufficient experience
• Maintaining good relationships with landowners
• Early negotiation on lease period extension
• Seeking alternative locations
• Active involvement in independent tower companies association
• Better financial planning
• Maintaining good relationships with suppliers and banks
• Seeking alternative financing sources
• Maintaining a balance between short-term and long-term loans
• Insuring major assets

Supply Chain Management

Responsible Procurement

• Selection and evaluation of suppliers based on SOPs
• Ensuring compliance with legal requirements
• Verification of material quality and certifications

Climate-Related Risks & Opportunities

Opportunities

• Use of renewable energy

Reporting Standards

Frameworks Used: UN SDGs

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 16: Peace, Justice and Strong Institutions

Company initiatives contribute to these goals through job creation, infrastructure development, and community engagement

Awards & Recognition

• Good Cooperation and Enduring Commitment for Smartfren Project Rollout

Environmental Metrics

ESG Focus Areas

• Nation Building
• Education
• Environmental Sustainability
• Social Responsibility
• Economic Resilience
• Good Corporate Governance

Environmental Achievements

• Reduced energy intensity by 6%
• No environmental complaints regarding materials and waste

Social Achievements

• Supported social activities by the Pensil Peduli Indonesia Foundation, providing education in remote areas
• Resolved 100% of community complaints
• Zero work-related fatalities and injuries
• Lowest permanent employee remuneration 3.51% above the regional minimum wage

Governance Achievements

• Implemented robust self-assessment policy to ensure effective governance and oversight
• No violation reports received through the whistleblowing system
• No administrative sanctions received from regulatory authorities

Climate Goals & Targets

Environmental Challenges

• Rapidly evolving technology changes (5G, IoT)
• Time frame and cost of tower construction
• Land acquisition processes and extending land lease contracts
• Unextended land lease period and significant changes in lease terms
• Risk of change due to government policy and regulation
• Financial risks (market fluctuations, changes in economic conditions)
• Risk of natural disaster
• Requirement to obtain approval and permission from the local community
• Social inequality and lack of economic opportunities in areas surrounding the company’s tower sites
• Increase in energy consumption on The Company’s operational activities
• Waste generated from operational activities may lead to environmental pollution near tower sites
• Habitat disruption and biodiversity loss due to the construction and expansion of telecommunication infrastructure
• Compliance with complex regulatory requirements and industry standards in the telecommunications sector
• Compliance with various regional regulations across the country which involves sub-contractors

Mitigation Strategies

• Adapting to market changes and industry trends
• Careful and proactive approach in planning and execution of tower construction projects
• Maintaining good relations with landowners
• Negotiating lease extensions in advance
• Seeking alternative locations
• Actively engaging in independent tower company associations
• Revenue diversification
• Sensitivity analysis on market fluctuations
• Maintaining a balance between fixed and variable income sources
• Actively managing capital structure
• Maintaining sufficient liquidity
• Planning financial reserves
• Selecting safe locations for tower construction
• Implementing strict construction standards
• Ensuring most of the Company’s assets with adequate coverage
• Investing in robust compliance programs and regulatory risk management processes
• Coordination with sub-contractors across all regions
• Transition to renewable energy sources
• Implementing waste reduction and recycling programs
• Conducting regular environmental audits
• Implementing a proper plan with adequate research prior to the construction of towers
• Creating and maintaining a good relationship with the members of the local community
• Implementing community development projects

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Opportunities

• Transition to renewable energy sources

Reporting Standards

Frameworks Used: SDGs

UN Sustainable Development Goals

• Goal 8
• Goal 10
• Goal 16

The Company's activities contribute to these goals through various initiatives such as community development, employee training, and responsible business practices.