Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Environmental Sustainability
• Governance

Environmental Achievements

• Implementation of fuel & cost-efficient fluidic batteries and CDC (Charge-Discharger Controller) solutions in Base Transceiver Stations (BTS) for a lower carbon footprint.
• Planting 43,000 trees along the Cisadane, Citarum and Ciliwung riversheds.

Social Achievements

• Launched new corporate culture to elevate customer experience and value-centric behavior.
• Implemented New Performance Management Talent Pool and Merit System.
• People development across all levels to unlock individual potential.
• Creating a young and open environment.
• Supported revitalization of farming in West Sumatera through the use of Information Technology and Telecommunications.
• Empowering women through cellular technology.
• Donated 100 Nokia Asha and 311 smartphones apps together with Indosat cards and vouchers valued at Rp200 million to Indonesia Red Cross volunteers.

Governance Achievements

• Received Indonesia’s 20 Most Admired Companies 2011 award from Fortune Indonesia magazine.
• Won an IICD 2012 Corporate Governance Award in the category of Best Corporate Governance Non Financial Sector from the Indonesian Institute for Corporate Directorship (IICD).
• Improved customer satisfaction scores from 87% in 2011 to 94% in 2012.
• Received ISO 14001 Certification related to Environmental Management Systems and OHSAS 18001 international certification related to Occupational Health and Safety management systems.

Climate Goals & Targets

Environmental Challenges

• Continuously challenging competitive landscape.
• Network congestion.
• Limited spectrum availability.
• Decreasing ARPU from voice services.
• Government suspension of premium SMS services.
• High churn rate.
• Dependency on telecommunications towers.
• Disruptions of supplies and services from principal suppliers.
• Potential for slowing economic growth.
• Possibility of price war resurgence in the industry.
• Corruption case filed against the Company or IM2 or their respective former President Directors.
• Inability to fund capital expenditures needed to remain competitive.
• Depreciation in the value of the Indonesian rupiah.
• Downgrades of credit ratings of the Government or Indonesian companies.
• Rapid technological changes.
• Security breaches on network or information technology.
• Government may give priority to Telkom’s or Telkomsel’s businesses over Indosat’s.
• Controlling shareholders’ interests may differ from those of other shareholders.
• Inability to recruit, train, retain and motivate key employees.
• Interest rate risk.
• Counter-party risk.
• Foreign currency exchange risk.
• Material weaknesses in internal controls over financial reporting.

Mitigation Strategies

• Network modernization initiative.
• Cost optimization program (Operation Excellence).
• Sale of 2500 towers to PT Tower Bersama Infrastructure Tbk.
• Improved customer insights and enhanced sales information system.
• Revamped product lineup with relaunch of Mentari and IM3 brands.
• Realigment of compensation for sales force and distributors.
• Exploration of alternative sales channels.
• Improved customer service standards and staff training.
• Launch of new online and social media customer care channels.
• Implementation of ISO 31000 in risk management.
• Implementation of fuel & cost-efficient fluidic batteries and CDC (Charge-Discharger Controller) solutions in Base Transceiver Stations (BTS).
• Connecting more sites to state electric utility company PLN.
• Use of fuel-efficient backup solutions.
• Strengthened linkages between the commercial wholesale side and the technical divisions.
• Improved communication with field teams.
• Revamping of the main service centers in Jakarta.
• Building a second call center for redundancy in Semarang.
• Further training frontliners for better customer service.
• Hedging policy to minimize interest rate risk exposure.
• Foreign currency swap and forward contracts to manage foreign currency exposure.
• Dedication of resources to remediate control processes and procedures.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Earthquakes
• Tsunamis
• Floods
• Volcanic eruptions
• Droughts
• Power outages

Awards & Recognition

• Indonesia’s 20 Most Admired Companies 2011
• Superbrands 2012 for IM3
• Indonesia Brand Champion Awards for IM3
• Brand Champion of Telecommunication - Most Widely Used of Mobile GSM Internet Provider Brand
• Brand Champion of Telecommunication - Most Widely Used of Mobile CDMA Internet Provider Brand
• Best CSR Program at the 2012 9th Selular Awards 2012
• The Best Contact Center Indonesia 2012
• The Best CSR at the 2012 Indonesia Cellular Awards (ICA)
• Best Consumer Service Innovation at the Global Telecoms Business Innovation Award 2012
• Green Telecommunication Company at the Indonesia Green Awards 2012
• 3rd place on Annual Report Awards 2011
• IICD 2012 Corporate Governance Award
• Indonesia Brand Champion Award 2012
• The Biggest Growing Profitable Telecommunication Company Indonesia

Environmental Metrics

ESG Focus Areas

• Women's Empowerment
• Community Investment
• Digital Inclusion
• Good Corporate Governance

Social Achievements

• Launched INSPERA (Inspiration for Indonesian Women) program supporting women entrepreneurs.
• Provided free internet access to 12 million traditional market traders.
• Launched various CSR initiatives recognized with several Stevie Awards (health, education, economic empowerment).

Governance Achievements

• Awarded the Indonesia Good Corporate Governance Award 2015 by Economic Review.
• Awarded as Indonesia Most Trusted Company from IICG-SWA Magazine.
• Implemented self-assessment using the ASEAN Corporate Governance Scorecard, achieving a score of 70.24.

Climate Goals & Targets

Environmental Challenges

• Intense competition in all business segments (cellular, MIDI, fixed telecommunications).
• Depreciation of the Indonesian Rupiah against the US Dollar.
• High customer churn rate in cellular services.
• Regulatory uncertainty and changes in the Indonesian telecommunications sector.
• Legal proceedings related to alleged corruption and price-fixing.
• High capital expenditure requirements.
• Dependence on interconnection agreements with competitors.
• Potential limitations on foreign ownership.
• Risks related to network security breaches.
• Government's potential prioritization of competitors.
• Rapid technological changes.
• High churn rate in prepaid cellular services.
• Dependence on telecommunications towers.
• Disruptions of supplies and services from principal suppliers.
• Potential cancellation of licenses.
• Significant increase in frequency fees.
• Allegations of health risks from electromagnetic fields.
• Declining margins from MIDI services.
• Limited operational life of satellites.
• Entry of additional operators in international long-distance services.
• Opening of new long-distance access codes.
• Inability to offset decrease in voice and fixed wireless services revenue.

Mitigation Strategies

• Network modernization project completed, improving service quality and user experience.
• Streamlined products and services, offering attractive pricing and promotions.
• Aggressive push to roll out LTE offers.
• Investment in attracting and developing strong talents.
• Strengthened cross-functional relationships and open communications.
• Streamlined cost structure through strategic partnerships.
• Systemically reduced US Dollar debt exposure.
• Good corporate governance (GCG) practices.
• Various partnerships with leading global digital brands (Facebook, Google, Twitter).
• Expansion of Indosat Ooredoo Stores and partnership with Erajaya for direct selling.
• Migration of fixed wireless customers to cellular customers.
• Expansion of FTTH fiber optic offerings.
• Transfer of non-core IT functions to subsidiary Lintasarta.
• Implementation of open working plan and agile corporate culture.
• Improved procedures on new product development and launching processes.
• Strengthened relationships with OTT partners.
• Implementation of interest rate swap contracts to minimize interest rate risk exposure.
• Hedging policy to manage foreign currency exchange risk.
• Continuous evaluation of technologies and vendors.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Earthquakes, tsunamis, floods, volcanic eruptions, droughts, power outages

Awards & Recognition

• Indonesia Good Corporate Governance Award 2015
• Indonesia Most Trusted Company
• Several Stevie Awards

Environmental Metrics

ESG Focus Areas

• Customer Experience
• Corporate Governance
• Corporate Social Responsibility
• Digital & Innovation
• Human Resources

Environmental Achievements

• Reduced fuel consumption for BTS sites by 6% year-over-year.
• More BTS in remote sites connected to the state power grid, reducing energy usage and greenhouse gas emissions.

Social Achievements

• Mobile Health Clinic served more than 700,000 beneficiaries.
• Women Empowerment Program (INSPERA) offered functional training, guidance, and seed capital.
• Employee Volunteer Program saw more than 450 employees participate in an initiative to improve education in Indonesia.

Climate Goals & Targets

Environmental Challenges

• Intense competition in the saturated cellular retail market where data is the major engine of growth.
• Low data yields across the industry made it challenging to monetize data subscribers.
• Low data prices.
• Currency fluctuations.
• Economic changes in Indonesia.

Mitigation Strategies

• Simplified product lineup and offered transparent, high-value packages.
• Bundled free video and music streaming.
• Improved customer touchpoints.
• Prudent fiscal policies and tight control on expenses.
• Substantially reduced foreign currency exposure.
• Customer segmentation to optimize monetization.
• Human resources development.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Internet Service Provider (ISP) TOP Brands Awards 2016
• Most Favorite Data Package SELULAR Award
• The Best Digital Campaign
• The Fastest Asset Growth Company in Telecommunication Industry 2016
• Most Admire Company - Data Center
• Business Service Innovation - eMagic Global Innovation Award 2016
• TOP Infrastructure 2016 on Telecommunication Sector
• Top 50 Public Listed Companies Indonesia Good Corporate Governance (IGCG)

Environmental Metrics

ESG Focus Areas

• Digital Literacy
• Innovation
• Corporate Social Responsibility
• Corporate Governance
• Human Resources

Social Achievements

• #BijakBersosmed campaign for digital literacy
• Indosat Ooredoo Wireless Innovation Contest
• Digital stock trading contest
• Java Cyber School
• Improved employee engagement scores (78 to 84)
• Reduced employee turnover (7.8% to 7.5%)
• Launched DigiOffice internal mobile application

Governance Achievements

• ASEAN Corporate Governance Scorecard assessment of 80.93 (above average)
• Increased transparency and disclosure
• Proactive campaign to reinforce awareness of anti-corruption policies

Climate Goals & Targets

Environmental Challenges

• Intense competition leading to decreased data margins
• Declining revenue from legacy services (voice and SMS)
• Government support for telecommunications industry development

Mitigation Strategies

• Aggressive market share growth through high-value data offers
• Network expansion in key areas
• Launch of new products (Yellow internet package)
• Improved operational efficiency
• Favorable contract terms with major vendors through Ooredoo Group synergy

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ASEAN Corporate Governance Scorecard

Certifications: OHSAS 18001:2008, ISO 14001:2015, ISO 27001, ISO/IEC 27001:2013

Awards & Recognition

• Frost & Sullivan Best Practice Award 2017
• Several World Communication Awards
• Several Stevie Awards
• Stellar Workplace Award 2017

Environmental Metrics

ESG Focus Areas

• Digital Transformation
• Customer Experience
• Corporate Social Responsibility
• Good Corporate Governance

Environmental Achievements

• Implemented Occupational Safety and Health Management Systems in accordance with Government Regulation No. 50 of 2012, OHSAS 18001:2008 and Environmental Management System ISO 14001:2015
• Achieved 12 percent average power savings per site while maintaining network KPI

Social Achievements

• Launched Indosat Ooredoo Digital Camp (IDCamp), a coding scholarship program for more than 26,000 young Indonesian programmers
• Fielded mobile clinics to provide free health services to flood victims
• Donated computer equipment to support education

Governance Achievements

• Achieved a high 2019 Asean Corporate Governance Scorecard score (83.58)
• Improved customer satisfaction scores
• Implemented a Whistleblowing System

Climate Goals & Targets

Environmental Challenges

• Continued shift from legacy services to digital services
• Talent war due to rapid growth in technology and digital industries
• Competition in the telecommunications sector

Mitigation Strategies

• Investing in building digital and analytical capabilities
• Implementing rigorous proactive hiring and talent retention programs
• Streamlining and simplifying business processes
• Strengthening network infrastructure
• Improving customer experience

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ASEAN Corporate Governance Scorecard

Certifications: ISO 14001, SMK3 PP.50/2012, OHSAS 18001, ISO 27001

Third-party Assurance: KAP Tanudiredja, Wibisana, Rintis & Rekan (PricewaterhouseCoopers)

Awards & Recognition

• Gold Stevie® Award Asia Pacific for Innovation in Technology Development
• Selular Awards for ‘Best Bundling Program’ and ‘Most Innovative Data Package’

Environmental Metrics

ESG Focus Areas

• Digital Transformation
• Customer Experience
• Corporate Social Responsibility
• Good Corporate Governance
• Employee Well-being
• Network Development

Social Achievements

• Launched IMClass, a smart package offering 30GB internet quota for Rp1 to support the Government’s Distance Learning Program.
• Collaborated with Nexford University to provide scholarships for up to 10,000 Indonesian students.
• Organized the second Indosat Ooredoo Digital Camp (IDCamp), a scholarship program for young developers and programmers.
• Partnered with various institutions to empower women and disabled communities.

Governance Achievements

• Consistent implementation of Good Corporate Governance (GCG).
• Support from Audit Committee, Nomination and Remuneration Committee, Risk Management Committee, and Budget Committee.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic causing unprecedented uncertainty and economic downturn.
• Decreased demand for legacy services.
• Weakening demand from corporate clients for MIDI services.
• Decreased international calls and international roaming traffic due to travel restrictions.
• Fierce competition in the market.

Mitigation Strategies

• Implemented Work-from-Home (WFH) policy for all employees.
• Dynamically adapted network deployment plan to meet growing customer demand.
• Refarmed spectrum and infrastructure from 2G and 3G to support 4G growth.
• Expanded physical sites and increased capacity of existing sites.
• Launched VoLTE service in 30 cities.
• Introduced SDWAN service.
• Established partnerships with Alibaba and NetFoundry.
• Developed relevant products to help everyone stay connected and productive.
• Intensified SIM Online Delivery services.
• Expanded and refined partnerships with non-traditional and digital channels.
• Revamped incentive structure to reward performance and partner compliance.
• Launched Distribution 2.0 initiative.
• Launched loyalty, upselling and cross-selling campaigns.
• Pricing optimization efforts.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• IMClass
• IMPreneur
• Freedom Internet
• Freedom Quota Harian
• VoLTE
• SDWAN
• MyIM3
• MPWR

Awards & Recognition

• Indonesian CSR Brand Equity Award 2020
• Iconomics Gold Brand Equity Award in Telecommunications
• Asia Corporate Excellence & Sustainability (ACES) Awards 2020
• MORS Group Top Community Care Companies
• Indonesia Top Digital PR Award 2020
• PR Indonesia Awards 2020
• UN Women 2020 Asia-Pacific WEPs Awards - Indonesia
• Asia Responsible Enterprise Award (AREA) 2020
• Frost & Sullivan Best Practices Award 2020
• TOP CSR Awards 2020
• HR Asia Award 2020
• Indonesia Law Awards 2020
• Silver Stevie International Business Award 2020
• TOP CSR of The Year 2020
• Padmamitra Award 2020
• Asia Pacific Enterprise Awards (APEA) 2020
• OpenSignal Global Mobile Experience Award 2020 (Global Rising Star in three categories)

Environmental Metrics

ESG Focus Areas

• Digital Inclusion
• Education
• Women's Empowerment
• Disaster Relief
• Sustainable Business Practices
• Employee Well-being

Environmental Achievements

• Reduced CO2 emissions by 4% due to Digital Operating Model implementation.

Social Achievements

• Launched IDCamp, providing over 39,000 scholarships for digital skills development, including for people with disabilities.
• Supported the Government's Distance Learning program, enabling millions of students to continue learning.
• Launched SheHacks 2021, an innovation program for women.
• Deployed Mobile Clinics to provide aid to communities affected by floods and the Mount Semeru eruption.
• Launched IMBeats, an Indonesian music streaming application.
• Launched IMove, a gamified health and fitness application.

Governance Achievements

• Adherence to the highest corporate governance standards.
• Transparency and meritocracy across the organization.

Climate Goals & Targets

Environmental Challenges

• Prolonged Covid-19 pandemic impacting social and economic life.
• Decreasing demand for fixed telecommunication services.
• Competition for talent in the telco and digital industries.
• Supply chain disruptions (implied).

Mitigation Strategies

• Disciplined execution of transformation strategy.
• Smart investment in network expansion.
• Focus on operational cost efficiency.
• Strengthening relationships with government and business customers.
• Strategic partnerships with global digital players (Google, Cisco, Mastercard).
• Investment in employee development and talent acquisition (INSPIRE, iAccelerate, iLead).
• Implementation of Digital Operating Model.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: OJK Rules

Certifications: ISO 14001, ISO 45001, SMK3 PP.50/2012, ISO 27001

Third-party Assurance: KAP Tanudiredja, Wibisana, Rintis & Rekan

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• HR Asia Most Caring Companies Award
• HR Asia Best Companies to Work for in Asia Awards
• Best Employer Brand Award
• Talent Management Award
• Excellence in HR through Technology Award
• Best Employee Engagement / Internal Communications - Silver Winner
• Asia-Pacific Stevie Award 2021 – Gold Stevie Awards
• Asia-Pacific Stevie Award 2021 – Bronze Stevie Awards
• PR Indonesia Awards 2021 Gold Winner (IDCamp)
• Indonesia Most Acclaimed Companies Award 2021
• Indonesia WOW Brand Award 2021
• Fastest Growing Telco Brand Award
• Asia-Pacific Stevie Award 2021 – Bronze Stevie Awards
• Asia-Pacific Stevie Award 2021 - Silver Stevie Awards
• The 12th IICD Corporate Governance Award
• Indonesia Excellent Millennials Brand Choice 2021
• Selular Awards 2021
• Stevie International Business Awards 2021 - Gold Stevie Awards
• Stevie International Business Awards 2021 - Silver Stevie Awards
• Zero Accident award
• IDX Channel Anugerah Inovasi Indonesia 2021
• WeCare: HR Asia Most Caring Companies Award 2021
• HR Asia Best Companies to Work for in Asia Awards 2021
• People’s Choice Stevie Awards for Favorite Companies 2021
• Global Telecoms Award 2021
• The Global CSR Awards 2021
• HerStory Indonesia Best Women Empowerment Awards 2021
• Asia Communication Awards 2021
• HerStory Indonesia Best Workplace for Women Awards 2021
• Pemimpin Public Relations Berpengaruh 2021
• Indonesian Most Admired CEO
• The Most Popular Leader in Social Media 2021
• DUDI Awards 2021