2023 SUSTAINABILITY REPORTINSPIRING IMPACT
AND UNVEILINGOPPORTUNITIES

Growing Our Tomorrow

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Theme Explanation

Message from Top Management

Ecosystem

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Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

HARMONY BETWEEN BUSINESS AND COMMUNITY:
A Success Story of Community Empowerment andEnvironmental Preservation

For three decades, the Community Empowerment (CE)team of Indah Kiat Perawang has been accompanying its
surrounding community in achieving self-reliance.
This team’s key is approaching thecommunities with a holistic empowerment
program that encompasses capacity
building, local economic development, andenhanced well-being. One inspiring story isof Mr. Murseno and his CE team, who havebeen mentoring Mrs. Tati for years throughguidance and training to develop her
business, Usaha Aulia. Initially a small-scalechip production operation in a small town,
sold at local shops near her home, Usaha
Aulia has now grown exponentially, withproducts marketed in supermarkets andstores in the nearest city, Pekanbaru.
Over the years, Usaha Aulia hastransformed into a thriving business,
multiplying its revenue by 100 times.
Notably, it is evident that beyond Mrs. Tati’s
initiative and perseverance, the consistent
support from Mr. Murseno and his team(e.g., training and consultation,access to diverse markets, productpackaging, financial management
tools, etc.) has been a key factor
to Usaha Aulia’s success. Similar
to Usaha Aulia, Mr. Murseno
and his team are mentoring andcollaborating with hundreds ofprogram participants, empowering
them toward sustainable
development and achieving
positive impacts.

Mrs. Ta

ti

eno

urs
Mr. M

2

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Theme Explanation

Message from Top Management

APP Forestry fosters synergy between
nature conservation and community wellbeing through its Desa Makmur Peduli Api(DMPA; Integrated Forestry and Farming
System) program in its operational areas.
The DMPA program was established by Mr.
Agung Wiyono with the vision to provide
alternative livelihoods towards sustainable
income while protecting forests andpreventing land fires. DMPA is initiated by
mapping vulnerable natural conditions at
the forest borders within the operational
areas and the communities residing within,
as well as identifying livelihood programsfor the communities with a no-burning
approach.
One outstanding program among Mr.
Agung’s many inspiring forest protection
endeavors is the collaboration with thecommunity through the Village-Owned
Enterprise (BUMDes) Delima, led by Mrs.
Zuvita in 2017. The people of Delima
Village in Jambi often used fire to clear
forest land for agriculture. Inspired andempowered by the DMPA’s vision andapproach, Mrs. Zuvita, a member ofDelima, also participated in various DMPA
programs. With strong leadership skills,
Mrs. Zuvita embarked on a journey to

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

establish BUMDes Delima, a program
to produce compost. This program
attracted many community members
and significantly reduced humaninduced open forest fires. Today,
BUMDes Delima supplies compost
to APP Forestry in large quantities.
BUMDes Delima has become a catalyst
and key to the development of various
new economic development programs
and community empowerment initiatives
in Delima over the years. BUMDes
Delima has also been recognized withvarious awards at the national and local
levels.

Mrs. Zu

vita

ng

gu
Mr. A

3

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Performance Deep-DiveDisclosure

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4

TABLE OF CONTENT
COVER STORYECOSYSTEM

COVER STORY

2

13.9

10

5

MESSAGE FROM TOP MANAGEMENTMILLIONTONSPERFORMANCE DEEP-DIVE

Paper And Pulp
Production

APPROACH

THEME EXPLANATIONTHEME EXPLANATIONECOSYSTEMPERFORMANCE DEEP-DIVE
62

ECONOMIC62

TAX GOVERNANCE

66

ENVIRONMENTAL

68

UPSTREAM

68

15

DOWNSTREAM

102

GOVERNANCE

16

SOCIAL137

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) APPROACH:

20

APPROACH

CLIMATE-RELATED RISKS & OPPORTUNITIESMESSAGE FROM TOP MANAGEMENT

7MESSAGE FROM THE PRESIDENT

7STRATEGY

8STRATEGY

27

DISCLOSURE173

SUSTAINABILITY ROADMAP: VISION 2030

28

ABOUT THE REPORT174

SUSTAINABILITY PERFORMANCE INDEX FOR MILLS AND FORESTS28

STAKEHOLDERS176

DISCLOSURE

DIRECTORMESSAGE FROM THE CHIEFSUSTAINABILITY OFFICER

1.4

US$

BILLION

DETERMINATION OF MATERIAL TOPICS

32

MATERIAL TOPICS

35

Net Revenue
PERFORMANCE

99% of Critical Peat
Dome Areas Have Been
Restored2023 KEY RECOGNITION AND PARTICIPATIONSCOMPANY PROFILECOMPANY PROFILE

184

GOVERNANCE COMPOSITION AND

191

PERFORMANCE

45

2023 KEY RECOGNITION ANDECONOMIC

47

PARTICIPATIONS52

ENVIRONMENTAL

48

STRUCTURE

SOCIAL51

APP PERSONNEL199

OPERATING WITH ETHICS AND

204

INTEGRITY
POLITICAL INVOLVEMENT

208

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Performance Deep-Dive

INSPIRING
IMPACT AND
UNVEILINGOPPORTUNITIESThe theme “Inspiring Impact and Unveiling
Opportunities” reflects PT APP Purinusa
Ekapersada’s (“APP Indonesia, APP, We,
Our and The Company”) unwavering
dedication to sustainability. At the heartof this commitment lies the Sustainability
Roadmap Vision (SRV) 2030, which
outlines a comprehensive strategy forachieving environmental, social, andgovernance (ESG) goals. This roadmap
maps out APP’s sustainability performanceacross its pillars: Products, Forests, andPeople. By adopting the Science Based
Target Initiative (SBTI), APP further
strengthens its commitment to measurable,science-based sustainability goals. The
Group has also set a target to achieve
net-zero emissions by 2050, a concrete
manifestation of its sustainability efforts
amidst various challenges.

APP believes that sustainability is notjust a responsibility but also a key tounlocking new opportunities. By embracing
sustainability principles, APP not only
conserves the environment and empowers
communities but also drives innovation,enhances operational efficiency, andbuilds strong stakeholder relationships.
APP’s commitment to sustainability is
not just about meeting expectations; it’s
about creating a better future. Thesesustainability efforts are pivotal in meetingthe needs of environmentally conscious
consumers and investors who value
responsible companies.

This report serves as a testament to APP’stransparency in showcasing its impactfulsustainability initiatives. By placing theenvironment and communities at theforefront, APP invites all stakeholders tocollaborate in building a more sustainable
future for the environment and society.

Disclosure

Company Profile

5

APP prioritizes transparancy
on all operational aspects,
underlining our commitment
towards an open andresponsible corporate
governance.

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Performance

Achievements

MESSAGE FROM TOP
MANAGEMENTPRESIDENT DIRECTOR STATEMENT
As we have been navigating through a rapidly changing
world, our focus has remained on making a meaningful
impact and uncovering new avenues for growth andinnovation, while remaining steadfast to the vision andmission set forth by our founder.

we emphasize environmentally friendly operations,reflected in our efforts to reduce waste, manage water
wisely, and utilize renewable energy. This holistic approachensures that we not only meet sustainability standards but
also lead the way in sustainability best practices.

Today, we come together to unveil the remarkable strides
we’ve made and sharing the impacts that fuel our journey,
and to explore the boundless opportunities that lie ahead.

I would like to express my deepest gratitude to all
stakeholders for their support and cooperation. Our
success in implementing sustainable practices would not
be possible without the contribution and commitmentof all parties involved. Together, we can create a moresustainable and better future for future generations. Let
us continue to move forward for a better us and a better
future.

Through this report, APP fosters transparency across all
facets of our operations, underscoring our commitment toopen and accountable business practices. Aligned with our
Sustainability Roadmap Vision (SRV 2030), which centerson three main pillars: Products, Forests, and People, we
strive to create sustainable products by implementing
efficient and environmentally friendly operational
processes.
We realize this SRV 2030 through a multi-stakeholder
approach, engaging in dialogue and collaboration withgovernment entities, NGOs, local communities, andbusiness partners. By investing in the latest technologies,[GRI 2-22] [OJK D.1] [OJK D.1.a] [OJK D.1.b] [OJK D.1.c]Thank you for joining us on this journey.

Andrie S Yapsir
President Director

Performance Deep-DiveDisclosure

Company Profile

7

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CHIEF SUSTAINABILITY
OFFICER STATEMENT

Ecosystem

Approach

Strategy

Performance

Achievements

Dear Stakeholders,
At the core of our organization lies an unwavering belief
in doing the right thing. As a global leader in pulp andpaper products manufacturing, our commitment to asustainable economy, positive environmental impact, andsocial responsibility remains steadfast. Our ambitious goals
and performance over the years are a testament to thiscommitment.
We recognize that addressing the risks and opportunities
of sustainable development extends beyond businessas usual. Our efforts contribute positively on both global
and local levels. This is embodied in APP’s Sustainability
Commitment, a policy guiding responsible businesspractices throughout our value chain, and the Sustainability
Roadmap: Vision 2030, an organization-wide sustainability
strategy. These two governance initiatives serve as the
backbone of APP’s efforts in innovative technology, positive
forestry practices, and community empowerment. Since
their inception, our commitment to sustainable values has
deepened, emphasizing circular production, sustainable
forests, and community empowerment.

[GRI 2-22] [OJK D.1]

Performance Deep-DiveDisclosure

Company Profile

8

By 2023, we achieved 98% energy use from renewablesources at OKI plants, significantly reducing greenhousegas emissions. Additionally, a 9.8 MWp solar PLTS facility
was installed at the Tjiwi Kimia mill on the rooftop of
warehouses, office, and production facilities, with a planned
increase up 45 MWp across APP.
We believe a sustainable future must be inclusive andequitable. We strive to create a diverse, equitable, andinclusive environment where everyone feels valued andhas the opportunity to contribute. In 2023, we formed afocus group to develop strategies and plans, culminatingin the establishment of a Diversity, Equality, and Inclusion(DEI) Committee within APP. The committee’s initial focus
will be to develop governance structures and strategies toincrease diversity in leadership, promote equal opportunity,and foster an inclusive culture.

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Message from Top Management

For over a decade, APP has been committed to improving
community welfare, impacting around 400 thousands
beneficiaries surrounding our operations including oursanitation and clean water programs benefit around 250
households in East Java, by providing clean water facilities
and educating the public on the importance of cleanliness.
The year 2023 has been exciting, marked by significant
performance, by adhering to the ten universal principlesof the United Nations (UN) in human rights, employment,
environment, and anti-corruption, our entities havereceived recognition through 44 awards. Notably, we were
honoured with the PRISMA award for strong human rights
implementation and the PROKLIM award, a prestigious
environmental accolade in Indonesia. APP’s meaningful
and victorious sustainability journey is a collective effortof stakeholders and an empowered community. Together,
we can continue to push the boundaries of sustainable
practices to protect and preserve our planet for future
generations, inspiring impact & unveiling opportunities.
Thank you to everyone who has joined us on this journey.

Elim Sritaba
Chief Sustainability Officer

Ecosystem

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Performance

Achievements

Performance Deep-DiveDisclosure98%

9.8 MWp

44

of energy used in
OKI Mill comes fromrenewable sources

Solar panel installationin Tjiwi Kimia mill

Total of awards
APP has received
throughout 2023

Established theDiversity, Equity,and Inclusion
Committee

Company Profile

9

ECOSYSTEM
For more than a decade, APP has
committed to maintaining the environmentand surrounding community’s well-beingby minimalizing emissions through efficientwaste handling and sustainable innovations.

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Performance

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Performance Deep-DiveDisclosure

Company Profile

ECOSYSTEMOPERATIONAL AREAS
1 2
4

APP operates 14 mills and 6 forestry companies located in
Java, Sumatra, and Kalimantan Islands.
[GRI 2-6] [OJK C.3.d]

5

3

MILLS IN SUMATRA
1 Pindo Deli Perawang

2 Indah Kiat Perawang

3 OKI

Employees

1,570

5,666

Production Lines

22

4

19

9

6

Tissue and converted tissue
products

LBKP (pulp), wood-free
printing, writing, copier,coated papers, tissue andchemical products

LBKP (pulp) and tissue

TISSUE MACHINESTISSUE-CONVERTING
MACHINES

Key Products

2

PULP LINES TISSUE
MACHINESPAPERMACHINES

4 Univenus Perawang

5 Lontar Papyrus

2,958

37

1,551

2

1

2

PULP LINESTISSUE MACHINEPULP LINES

8

TISSUEMACHINES

TISSUEMACHINES
TISSUELBKP (pulp) andtissue11

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Theme Explanation

Message from Top Management

Ecosystem

698

Approach1014Strategy

15

Performance

Achievements

13
12

Performance Deep-DiveDisclosure

Company Profile

7

MILLS IN JAVA

11

6 Indah Kiat Serang
Employees

3,639

Production Lines

6

PAPER MACHINES

7 Tjiwi Kimia

8 Head Office Jakarta*

4,957
7

OFFSET
MACHINES

1,947

13

PAPER MACHINES

9 Indah Kiat Tangerang

10 Pindo Deli Karawang

761

4,017

3

12

PAPER MACHINESPAPER MACHINES

53CORRUGATORSMACHINES

Key Products

White cardboard packaging
paper, brown cardboard
packaging paper, corrugatedpaperboard, and packaging
and boxes from paper andcardboard

TISSUE MACHINES

Uncoated paper, coated paper,carbonless paper, medium paper,
linerboard, Kraft paper, notebook,memo pad, notepad, looseleaf
paper, spiral bound notebook,envelope, continues form, wrapping
paper, packaging paper, paper bag,and corrugated cardboard box used
for industrial packaging.

11 Ekamas Fortuna

12 Purinusa Semarang

Colored printing, writing
and copier, computer,and duplicator paper

13 Purinusa Demak

14 Purinusa Bandung

Writing, printing, copier,pre-print and other,premium wood-free
papers, cast-coatedpaper, paperboards,
carbon-less, packaging
paper, art paper, andtissue15 Purinusa Subang

Employees

850

253

188

287

167

Production Lines

2

1

1

2

1

Medium corrugated paper, gypsum face paper
gypsum backing paper, wrapping papers, kraft
linerboard, sheet of paper, chipboard, coreboard,paper tube, heavy board, paper corner, paper core,and pallet paper

Corrugated Paper
Packaging

Corrugated Paper
Packaging

Corrugated Paper
Packaging

Corrugated Paper
Packaging

PAPER MACHINESKey Products

12

CORRUGATOR MACHINECORRUGATOR MACHINECORRUGATOR MACHINESCORRUGATOR MACHINES

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Forestry
1
3

2
2

1
Employee

PT. Arara Abadi

1,523

Concession Area

License2

2 PT. Satria Perkasa Agung

3

242

53

SPA

SPA Serapung

SPA Sinar Merawang

296,164 ha

77,702 ha

11,927 ha

10,070 ha

•

•
•

•

SK.817/MENLHK/SETJEN/
HPL.0/9/2021
SK Addendum No.SK 1131/
MENLHK/SETJEN/HPL.2/11/
2022•

PT. Riau Abadi Lestari

SPA: NO.SK.725/MENLHK/SETJEN/HPL.0/9/2021
SPA SERAPUNG: SK.134/MENLHK/SETJEN/
HPL.0/2/2022
SPA SINAR MERAWANG: SK.135/MENLHK/SETJEN/HPL.0/2/2022

12,000 ha•

SK.985/MENLHK/SETJEN/
HPL.0/10/2021

13

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Strategy

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Performance Deep-DiveDisclosure

Company Profile

6
5
6

4

4
Employee

PT. Wirakarya Sakti

1,133

5 PT. Finnantara Intiga

216

Concession Area

License

6 PT. Sumalindo Hutani Jaya

140
SHJ I

SHJ II± 70,300 ha

287,166 ha

299,700 ha± 10,000 ha

•

•

•

SK.1141/MENLHK/SETJEN/
HPL.0/11/2021

SK PBPH NO.SK.1041/MENLHK/SETJEN/
HPL.0/11/2021•

SHJ I: SK.763/MENLHK/SETJEN/
HPL.3/9/2021
SHJ II: SK.764/MENLHK/SETJEN/
HPL.3/9/2021

14

APPROACH
In a constantly moving and dynamic era,companies are not only operating forprofitability, but it must also consider its
effects towards the environment, people,
and good corporate governance.

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Performance

GOVERNANCE
APP is committed toa responsible corporate
governance.

Achievements

Performance Deep-DiveDisclosure

Company Profile

16

GOOD CORPORATE
GOVERNANCE

This commitment is reflected in our comprehensive
governance framework, which takes into accounteconomic, environment, and social (triple bottom line)
aspects in every decision-making process.
This approach enables APP to:

Conduct inclusive and balanced
evaluations of the impacts of eachdecision, focusing not only on shortterm financial gains but also on longterm sustainability.

Ensure that the company’s operations
are aligned with its values andcommitments to sustainable
development.

Maintain the trust and support of
stakeholders, including investors,
employees, customers, andcommunities.

The implementation of Good Corporate Governance (GCG)
is the foundation for APP’s operations. We are committed
to making GCG an integral part of the company’s culture
and to upholding transparency, accountability, openness,
responsibility, independence, fairness, and justice.
To ensure the implementation of GCG throughout thecompany and its operational aspects, APP has established a
Governance Policy and Business Code of Conduct (BCoC).
This policy is approved by the Management Board andapplies to all aspects of APP’s employees. We also provide
dissemination and education to our partners with business
relationships with APP regarding the implementation andapplication of this policy. Thus, APP affirms its commitment
to conducting business in a responsible, fair, andsustainable manner. [GRI 2-24]
APP recognizes that compliance with laws and regulations
is an essential aspect of good corporate governance. Weview this compliance as one of the key pillars in conducting
our business operations responsibly and sustainably. We
have a structured process to ensure proper understanding
and implementation of these regulations throughout ourorganization. Due to this prudence, we comply with andadhere to applicable laws and regulations in the reportingyear. [GRI 2-27]

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Performance Deep-DiveDisclosure

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17

SUSTAINABILITY GOVERNANCE
APP established a Sustainability Committee chaired by the President Director of the company. This committee is responsible
for ensuring the implementation of the sustainability vision and mission and assisting in providing strategic direction onsustainability initiatives. [TCFD G1]

Sustainability
Board

The Sustainability Board consists of members of
the Board of Commissioners and members of theBoard of Directors. Together they lead the visionand mission of sustainability across the entire APP
organization.

Steering
Committee

APP Steering Committee (for Sustainability) consists of:Chief Sustainability Officer (CSO)••
Chief Human Resource Officer (CHRO); andChief of Corporate Affairs and Communication.
•
Together they lead the sustainability strategy and plansfor APP across the company value chain.

Business UnitsAt APP, the vision, mission, and sustainability
strategy are implemented, managed, and monitoredby various business functions, each led by theirrespective Division Head and relevant Department
Heads (Management Team).

[GRI 2-12] [GRI 2-13] [OJK E.1] [G.2.5]

By involving various relevantinternal stakeholders, theCommittee aims to ensurethat sustainability aspects
including human rights arecomprehensively consideredin all decisions and strategies
taken by the company.
The implementation ofsustainability initiatives is thendelegated to the relevant
divisions for execution
according to the establishedplan. Regular monitoringand evaluation are carriedout through meetings andreports. The Committee also
plays a role in assessing andmanaging climate-related risks
and opportunities. [TCFD G2]

Cover Story

Theme Explanation

Message from Top Management

The Management Team under the business
units as described in the governancestructure consists of senior management
team members who are responsible foroverseeing various departments. ThisManagement Team conducts a review
of economic, environmental, and social
aspects every three months. Concerning
sustainability reporting, the Board of
Directors is actively involved in providing
direction and feedback that contributeto the development of the sustainability
report. [GRI 2-14]

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveAn additional role of the management team is to build a strong culture of sustainability
throughout APP’s operations. APP has developed various programs to build a culture ofsustainability, including: [OJK F.1]

Forest andbiodiversity
conservation

Community
empowerment programs
to improve their wellbeing

Energy consumption
and emission
reduction programs

Development of ecofriendly products

Human resource development through various
employee training and development programs aimed
at improving their performance and understanding ofsustainability practices

Transparency
in reporting
sustainability aspects

And various otherprograms.

Disclosure

Company Profile18

To report significant or extraordinary
events, APP provides a means for reporting
to ensure that significant incidents arepromptly identified and addressed. Prompt
handling of such incidents is crucial toreduce any potential negative impacts
and ensure the smooth operation of thecompany.
In situations where significant or
extraordinary events are reported, theBoard of Directors has the authority tohold emergency meetings based on
the reports received. These meetings
allow the Board of Directors to directly
evaluate the situation, make necessary
decisions, and direct the actions to betaken by the company’s management. The
only significant issue discussed during
the reporting year was regarding theconstruction of a new mill in Karawang.
[GRI 2-16].

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

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Strategy

Performance

Achievements

SUSTAINABILITYCOMMITMENTOPERATIONAL POLICYThe Sustainability Commitment is APP’ssustainability policy designed as acomprehensive Environment, Social,
Governance (ESG) and Transparency
guiding principles and commitments. It
aims to seamlessly integrate sustainability
initiatives into our business processes.
Thus, we can mitigate climate changerisks while empowering opportunities. This
commitment also serves as the primary
overarching policy driving sustainability
transformation across our businessprocesses.

In today’s dynamic and ever-changing world, companies are not only
required to pursue profitability but also to consider their impact on theenvironment, society, and good governance. This drives companies toformulate sustainable policies. APP has established diverse policies
across the ESG aspect such as Forest Conservation Policy, Human rights,
Grievance Policy, etc.

To ensure widespread adoption andtransformation at the operational level, theSustainability Commitment is implemented
across all business functions throughvarious relevant policies. These policies
drive implementation, accountability,
tracking, monitoring, and transparency.

Performance Deep-DiveDisclosure

Company Profile

ENVIRONMENT
Forest Conservation Policy
Fiber Procurement and Processing Policy
Environmental Policy

A company’s sustainable policies are not merely formalities, but atangible manifestation of the company’s commitment to sustainability.
This commitment is embedded in the company’s values and culture andforms the basis for decision-making and actions at all levels.

Fire Prevention and Management Policy

The company’s sustainability policies are a derivative of its sustainability
commitment, translated into concrete and measurable policies. These
policies cover a wide range of aspects, from reducing carbon emissions
and responsible management of natural resources to empoweringcommunities and implementing good governance practices.

Human Rights Policy

SOCIAL

Working Hours Policy
Corporate Social Responsibility Policy
Health and Safety Policy
Speak Up Policy

GOVERNANCE
Governance Policy
Business Code of Conduct
Supplier Code of Conduct
Whistleblower Protection Policy
Anti-Bribery and Corruption Policy
Grievance Policy

19

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Ecosystem

Approach

TASK FORCE ON CLIMATERELATED FINANCIALDISCLOSURES (TCFD)
APPROACH: CLIMATERELATED RISKS ANDOPPORTUNITIES
Amidst the dynamic economic landscape,
APP commits to integrate sustainability
principles into its core strategy. One
concrete step towards realizing thiscommitment is by implementing theTask Force on Climate-related Financial
Disclosures (TCFD) framework into its
sustainability management approach.
TCFD provides APP with a comprehensive
framework to enhance climate-related
disclosures in financial reporting.
By adopting the TCFD framework,
APP demonstrates its commitment
to transparency and accountability inmanaging climate-related impacts andrisks.

In its endeavours to manage climaterelated risks and opportunities, APP
mapped out various climate-related
impacts and strategies in the short-term(1-2 years), medium-term (3-5 years), andlong-term (>6 years). [TCFD S1]

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

20

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Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Short-Term Risks

Short-Term Opportunities

Medium-Term Risks

Medium-Term Opportunities

Drought and Wildfires: Extreme
weather events due to climatechange could increase the risk ofdrought and wildfires, which could
damage plantation forests anddisrupt pulp and paper production.

Rising Demand for Eco-Friendly
Products: Consumers are
increasingly seeking ecofriendly products. This presents
opportunities for APP to develop
and market sustainable paper
and pulp products, such as
Foopak Bio Natura, Paperline
Box (cardboard boxes madefrom recycled and certified
PEFC-managed fibers), and othereco-friendly products.

Regulatory Changes: Governments
around the world are tightening
regulations related to greenhouse gas
emissions and forest management.
This could increase compliance cost
for APP.

Development of New Products: APP
can develop new, more eco-friendly
products.

Floods: Floods due to heavy
rainfall could disrupt the operationsof APP’s mills, distribution, andlogistics infrastructure.
Fluctuations in Raw Material
Prices: Climate change could leadto fluctuations in raw material prices
such as wood and pulp, which
could increase APP’s production
costs.
Changes in Product Demand:
Consumers are becoming moreaware of the environmental impactof the products they consume. This
could lead to a decrease in demandfor paper and pulp products.

Environmental Certifications:
By certifying its products, APP
expands its market to ecoconscious consumers.
Adoption of New Technologies:
New technologies can help APP
improve efficiency and reducegreenhouse gas emissions.

Product Competition and Changes:
The digitalization development could
reduce the demand for paper.

Expansion into New Markets: APP
can expand its market to developing
countries with high demand for paper
and pulp products.

Long-Term Risks

Long-Term Opportunities

Supply Chain and/or Value Chain:
Extreme temperatures, either very
low or very high, can cause damage
to tree species and may result in ashortage of our pulpwood supply,
which could ultimately affect thecontinuity of our production lines. The
magnitude of this impact is significant
for our business, and we need toconsider this risk in the medium tolong term.

Investment in Renewable Energy:
APP can invest in renewable energy to
reduce greenhouse gas emissions andincrease resilience to climate change.
Development of Sustainable
Plantation Forests: APP can develop
sustainable plantation forests toincrease resilience to climate change
and ensure a sustainable supply of raw
materials.
Investment in R&D: We are conducting
research on tree species to identify
species that can adapt to changes inphysical parameters and temperatures,
as well as being resistant to pests.

21

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Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

22

The presence of both climate risks and opportunities has prompted APP to adopt a strategic,sustainable and financially prudent approach that integrates these considerations, including:[TCFD S2]

Developmentof eco-friendly
products

Developing sustainable paper and pulp products
to meet the demands of environmentally conscious
consumers.

Investment
in new
technologies

Investing in new technologies to improve efficiency
and reduce greenhouse gas emissions, such as
pulp mills that boost production while reducing GHG
emissions, real-time control systems, and other
innovative solutions.

Budgeting taking
into account climaterelated risks andopportunities

Accounting for the costs and benefits of climatechange adaptation and mitigation strategies in its
annual budgets such as considering the possibility offlooding that could delay operations and impact thebudget, etc.

In line with the 1.5°C scenario, APP has engaged consultants to develop a carbon emission
reduction scenario aligned with the SRV 2030 targets. This scenario has been designed by
setting a series of targets, including reducing fossil fuel use, increasing renewable energy
utilization, and enhancing green energy adoption (i.e., solar panels). [TCFD S3]

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Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

RISK MANAGEMENTAPP fully recognizes that climate change
and its environmental impacts havethe potential to significantly affect ourbusiness. The Sustainability Committee
has developed a comprehensive risk
management framework, including risks
associated with climate change and otherenvironmental impacts. The Committee
regularly evaluates these risks, identifies
their potential impact on our operations,and designs appropriate mitigation
strategies. It is important to note that theresults of the risk evaluation and mitigation
recommendations from the Sustainability
Committee are regularly communicatedto the Board of Directors. This information
serves as a basis for supporting
strategic decision-making at the highest
management level, ensuring that APP canadapt to climate and environmental change
and effectively manage risks in an everchanging context. [TCFD R1]
The following are the various climaterelated risks, and APP’s management ofthese topics: [TCFD R2][OJK E.3]

1

2

REGULATORY RISKRegulatory risk management focuses on
addressing the potential negative impacts
arising from changes in or non-compliancewith government regulations. In the context
of APP, regulatory risks encompass a wide
range of policies that must be adhered
to. Examples include regulations from the
Ministry of Energy and Mineral Resourcesmandating energy usage reporting, as
well as carbon emission regulations forpaper products in diverse markets (i.e.,
Europe, etc.). Non-compliance with theseregulations can expose the company torisks such as fines, operational restrictions,or a loss of clients. Therefore, APP ensurescompliance with all applicable regulations
and actively manages regulatory risks
to safeguard its ongoing operations andreputation.

3

TECHNOLOGY RISKAPP adopts new technologies to enhance
operational efficiency, reduce its carbon
footprint, and protect the environment. Old
machinery and equipment often consume
more energy, making technologicalupgrades essential. However, adopting
new technologies poses risks such as highcosts, training requirements, and potential
operational disruptions. To manage
these risks, APP conducts thoroughevaluations, provides employee training,
and implements regular maintenance. As
a result, APP can achieve better efficiency
and sustainability while effectively
managing technological risks.

LEGAL RISKAPP actively monitors applicable legal
regulations and ensures compliance withall regulations. Additionally, APP sets
higher standards than required, such as
obtaining sustainable forest management
certifications. By complying with the law
and setting high standards, APP reduces
legal risks that could arise from noncompliance, such as sanctions, fines, or
reputational losses. This strategy ensuresthat APP not only meets legal obligations
but also contributes to sustainable andresponsible business practices.

23

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Theme Explanation

Message from Top Management

4

Ecosystem

Approach

Strategy

5

MARKET RISKThe current market increasingly demands
more eco-friendly products. To meet thisdemand, producers must comply with strict
ecolabel standards, often a requirement
for exporting products, particularly tointernational markets.
APP manages this market risk bycomplying with various nationally andglobally recognized environmental
standards and certifications. By obtaining
these certifications, APP not only meets
market demands but also demonstrates
its commitment to sustainable practices.
This helps APP to maintain and expand its
market share, reduces the risk of losing
customers, and enhances its sustainability
footprint.

Performance

Achievements

Performance Deep-Dive

6

REPUTATIONAL RISK

Reputational risk poses a significant
challenge to APP. The impact of
reputational risk can include a decline incustomer trust, loss of market share, andfinancial losses. A poor reputation canalso affect relationships with stakeholders,
including governments, local communities,
and investors. To maintain a good
reputation, APP strives to be a responsible
and value driven organisation by taking
a balanced approach to managing thecompany’s internal and external ESG
initiatives (i.e., conservative practices,carbon emission reduction, social
compliance, etc.).
Through diverse endeavours, APP not only
meets market expectations and regulations
but also builds trust and loyalty amongcustomers and stakeholders.

PHYSICAL RISKAPP faces various physical risks that
could disrupt its operations, including
extreme weather events, floods thathinder supply chains, and droughts that
impact water supplies. Long-term climatechange also poses a significant challengethat must be considered in managing
these physical risks. To manage theserisks, APP has specific guidelines, namely
the APP/SMK3/P/013 OHS Management
Procedure Guidelines on Emergency
Management. This guideline includes
clear procedures and innovative solutions
for addressing various emergencies. APP
ensures preparedness and rapid responseto physical risks, maintains operational
continuity, and minimizes disruptions to the
supply chain. These innovative solutions
also empower the company to adapt
to long-term climate change, ensuringbusiness sustainability and environmental
protection.

Disclosure

Company Profile

24

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Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

The process of identifying, assessing, and managing climate-related risks is integrated into the overall risk management of APP through astructured and holistic approach. The company implements the following key steps: [TCFD R3]

RISK IDENTIFICATIONRISK ASSESSMENTRISK MANAGEMENTINTEGRATION INTO OVERALLRISK MANAGEMENT

The first step is for APP to identify
climate-related risks by analysing thepotential impacts of climate change
on our operations and businessactivities. This involves assessing
factors such as changes in weather
patterns, rainfall levels, temperatures,and their impact on our supply
chains, infrastructure, and production
sites.

After identification, we conduct anin-depth assessment of the identified
risks. This assessment includes
analysing the probability of the risks
occurring and their potential impact
on various aspects of our operations
and business sustainability. We also
consider secondary risks that may
arise as a consequence of climatechange.

Based on the assessment results, wedevelop appropriate risk management
strategies. This involves formulatingconcrete action plans to reduce theprobability of risks occurring, mitigate
their impact if they do occur, or evenavoid the risks entirely. These strategies
may involve investing in climate-resilient
infrastructure, diversifying supply chains,using eco-friendly technologies, or otheradaptation policies.

Climate risk identification, assessment,
and management processes areintegrated into APP’s overall risk
management framework. This iscarried out by incorporating climaterelated risks into the existing risk
management framework, ensuringthat these risks are comprehensively
considered in strategic decisionmaking, operational planning, andresource allocation.

By integrating climate-related risk management into overall risk management, APP can be more responsive to the challenges posed by climatechange. These steps help us minimize our vulnerability to these risks and ensure sustainable operational continuity in an ever-changing
environment. APP is currently in the process of conducting financial calculations to establish climate-related risks and opportunities. [GRI 201-2]

25

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Strategy

Performance

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Performance Deep-DiveDisclosure

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26

GRIEVANCE MECHANISM
APP has established a policy that allows
stakeholders to raise concerns about
the company in an open and transparent
manner. This policy aims to create aneffective communication channel between
the company and its stakeholders, enabling
constructive feedback and input. The
grievance mechanism is available 24/7
through the Integrated Call Center (ICC),
accessible to both internal and external
stakeholders. Reports are directly managed
by the Corporate Risk and Integrity (CRI)
division.
The CRI team, consisting of officers andinvestigators, holds technical certifications
and receives regular training to enhancetheir skills in triage, investigation, andreporting processes. In line with SRV 2030,
the report handling process is targeted
to be completed within a maximum of
90 days. During the reporting year, APP
received 171 reports, and all reports havebeen followed up. Of the total reports,
75 were deemed unfounded due toinsufficient evidence. [G.1.2.3][G.1.2.6][GRI 2-25] [GRI 2-26] [OJK F.24] [S.4.2.1.4]

Furthermore, during meetings withstakeholders, APP actively seeks their
input and opinions. This approach not only
enhances the company’s transparency
and accountability but also enables abetter understanding of the needs andexpectations of stakeholders, allowing
them to be better integrated into thecompany’s policies and practices.
APP has established a whistleblowing
system to enable internal and external
stakeholders to report suspected violationsof company policies and procedures. Thissystem is crucial not only for preventing
and detecting violations but also forsafeguarding company assets, upholding
the company’s reputation, and enhancing
accountability and transparency. The
system is accessible to employees,
suppliers, contractors, customers, andthe public. We are committed to following
up on all reported violations in a detailed
and fair manner. APP also guarantees
the confidentiality of the whistleblower’s
identity and the information reported.

Whistleblowers are also protected from
retaliation.[G.1.2.2][G.1.2.4] [G.1.2.5] [G.1.2.8][OJK F.24]
Description

2021

2022

2023

Concerns Received

62

68

171

In Initial Assessment Process

10

0

0

Cases Closed

27

41

75

Management Action

20

25

76

Ongoing Investigations

5

2

11

STRATEGY
In this report, APP has summarized 10
material sustainability aspects that is essential
information to stakeholders. 10 material topics
are in line with the 25 standard indicators of
GRI 2021.

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Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

STRATEGYSUSTAINABILITY
ROADMAP:VISION 2030
SRV 2030 is APP’s comprehensive multi-yearsustainability strategy aimed at contributing
to reducing and mitigating the risks of global
climate change.
It outlines key impacts relevant to our stakeholders across our businesses andwider supply chain, with ambitious targets across three pillars (production,
forest and people) and mapped to international and national Sustainable
Development Goals.

SUSTAINABILITY PERFORMANCE INDEX FORMILLS AND FORESTS
APP monitors its sustainability
performance across its operations
through its in-house “Sustainability KPIIndex” – the Index serves as a valuable
tool for tracking key parameters thatreflect the company’s commitment
to sustainability, including resource
efficiency, environmental practices,
employee well-being, community
engagement, etc. For each parameter,
clearly defined KPIs are established,providing clear guidance on what needs
to be achieved.
The company regularly assesses its
achievements in various predefinedsustainability aspects both quarterly andannually, with the results thoroughly
discussed with both operations and[GRI 2-24] [GRI 2-25]

management teams. These evaluations
extend beyond simply assessing target
achievement; they also delve into
identifying opportunities for improvement
and innovation that can further enhance
the positive impact on sustainability. The
Sustainability KPI Index plays a crucialrole in linking employee and collective
organisational wide performance to theachievement of the SRV 2030 targets.
APP firmly believes that this comprehensive
approach empowers the company toeffectively measure its progress towards
its sustainability goals while ensuring thatit remains on track to achieve them. The
SRV 2030 targets are meticulously defined,
monitored, and evaluated through its
respective pillars.

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Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

PRODUCTION
TargetProgress in 2023 [E.1.2.9] [E.1.2.10]

Increase the share of renewable energy in the energy mix
30% reduction in carbon intensity based on the 2018 baseline[E.1.1.5] [E.1.7.0.3] [RR-PP-110a.2]

1.02 tCO2e/ton of product11% reduction compared to baseline

Increase the use of renewable fuelsby 50% from 2018 baseline [E.1.1.5] [E.1.8.1] [E.1.8.2]

168,122,335 GJ out of 291,722,207 GJ total energy
58% renewable fuels from the total use of energy sources

25% reduction in energy intensityfrom the 2018 baseline [E.1.1.5]

24.71 GJ/ton-product3.1% energy reduction from 2018 baseline data

30% reduction in water intensityfrom 2018 baseline [E.1.1.4]

27.3 m3/ ton-product17% reduction from the 2018 baseline data

30% COD emissions lower than government regulations* [E.1.1.5]

267.7 mg/ltr out of 350 mg/ltr
24% lowest across all our mills; lower than government regulations

Zero waste to landfill [E.1.1.5] [E.1.3.2.2] [E.1.3.2.3]
Zero waste to landfill

209,533 tons of waste to landfill
60% reduction in tons of waste to landfill from 2018 data

Increase recycled fiber composition
Minimum 30% recycled fiber composition

3,083,887 tons out of 6,480,129 tons
48% recycled fiber

Increase product biodegradability and resource efficiency
At least one new biodegradable productAchieved

On track[E.1.2.4] [E.1.2.5] [TCFD M3]

In progress

Product introduction to global brand owners is ongoing and commercialization hascommenced globally (launch, sales commenced)

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Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

30

FOREST
TargetProgress in 2023 [E.1.2.9] [E.1.2.10]

Source only from certified Sustainable Forests and increase fiber productivity
Maintain 100% of operating units achieving voluntary Sustainable Forest Management (SFM)
certification by 2030

All (100%) of APP’s Sustainable Forest Management Units (FMUs) (40 FMUs) have beenverified to voluntary certification readiness schemes, with 36 FMUs IFCC-PEFC certified.

Mean annual increment of 12 ADT/ha/year by 2030**

7.0 ADT/ha/year

Conserve HCS (High Carbon Stock) forests and HCV (High Conservation Value) forests and continue restoration efforts [E.1.1.1]
95% of natural forest concessions will be maintained in good condition by 2030

Maintaining 85% of natural forests in good condition

Conserve critical peatland ecosystems [E.1.1.1]
100% of critical peat dome areas are restored

99% of critical peat dome areas have been restored

Protect Indonesia’s flora and fauna, focusing on three priority wildlife species and ten species of rare trees [E.1.1.1]
Three animal species and ten tree species are conserved and protected

Monitoring minimum 42 Sumatran Tigers, 132 Sumatran Elephants, 17 Orangutans.
Repopulated 4 tree species in conservation areas: Balangeran, Ulin/Bulian, Kulim, and Ramin.

Reduce the number of human-wildlife conflicts with fatalities involving endangered species withinconcessionareas to no more than 10% of the total number of fatal conflicts in theprovince by 2030.

Conflicts with fatalities occurring within concessions at 50%.

Reduce the number of poaching tools found in concessions by 90%
compared to the 2019 baseline

91% reduction in illegal wildlife poaching tools found in concessions.

Maintain fire-impacted areas below 2% [E.1.1.1]
Less than 2% of total concession areas impacted by fire
Achieved

On track

0.008% of total concession area impacted by fire.

In progress

Notes:(*) Chemical Oxygen Demand (COD) is a parameter measuring the total organic matter in water. High COD depletes oxygen in water bodies, disrupting aquatic ecosystems.
(**) Average Dry Ton (ADT) is a unit of measurement for forest productivity

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31

PEOPLE
TargetProgress in 2023 [E.1.2.9] [E.1.2.10]

Reduce land conversion for agriculture purposes with the use of fire [E.1.1.1]
Reduce 75% of fire incidents in DMPA (Integrated Forestry and Farming System)

90% reduction in fires in DMPA villages achieved

Resolve 75% of conflicts

67% of conflicts resolved

Respect the rights of local communities and Indigenous people through increased multi-stakeholder engagement
Increase 30% partnerships with community groups and other key
stakeholders in APP operations.

Partnerships with 3,756 community groups by the end of 2023, an increase of 43% compared to
the 2020 baseline

Increase the number of women in management positions
30% of senior management positions at APP headquarters are held by women

27.46% of women hold senior management positions at APP Headquarters

Strengthen organizational capabilities
2,500 participants in the APP People Development Program

217 participants in People Development Programs, such as Management Trainee, Graduate
Trainee, and ITSB Program

Reduce lost time injury frequency rate (LTIFR) to below 1

0.77 LTIFR in Forestry
0.91 LTIFR in MillsBest practices for fraud reporting and managing whistleblowing reports.
Average number of days for handling whistleblower reports is 90 days

44 days average in handling whistleblower reports

Best practices to ensure compliance with the Business Code of Ethics
All APP employees, independent supplier companies, and outsourcing
companies are aware of and comply with APP Business Code of Conduct.

76% of employees have attended training and passed the post-test training passing grade.
100% of independent suppliers have been communicated with and signed the SCoC document.
79% of outsourcing suppliers have been communicated with and signed the SCoC document.

75% alignment of business processes with APP BCoC

Achieved

On track

In progress

Implementation and integration of BCoC Principles - Gift & Entertainment, Anti-Bribery &Corruption, and Whistleblower Program to all APP employees - Indonesia & IBOs.

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Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

MATERIALITY

APP has developed anassessment system toidentify and prioritize
the most critical issues
that align with its grouplevel business strategy
and material across its
subsidiaries.
This assessment relies on valuable input
from key stakeholders and conducted
through a materiality evaluation to identify
Economic, Environment and Social aspects
for annual performance and reporting
disclosure.
Recognizing the dynamic nature of thesocial and environmental landscape,
APP continuously adapts its strategies
and operations to remain relevant andresponsive. Thus, the aforementioned
is APP’s approach in elevating its
transparency meeting regulatory andindustry best practise standards.

[GRI 3-1] [GRI 3-2]

The material topics in this report were determined in accordance with GRI standards, by applying
the following four principles:

STAKEHOLDER INCLUSIVENESS.
APP engages stakeholders by incorporating relevant topics, as well as topics required by OJK. The process ofdetermining material topics was conducted in 2022 through a survey distributed to various stakeholders, including
employees, government officials, partners, etc. These surveys included a series of structured questions to gather
meaningful feedback on the priority topics for public reporting. The response rate to these surveys was significant,with 50% of the targeted respondents providing their responses. APP highly values the feedback received andconsiders it as important in shaping the materiality framework and reporting practices. The survey results played acrucial role in selecting and refining the material topics to be included in the 2023 report.

SUSTAINABILITY CONTEXTThis sustainability report covers priority topics related to sustainability, namely economic, environmental, and social
aspects.

MATERIALITY
The topics presented in this report are significant issues that can influence stakeholder decisions and organisational
impact.

COMPLETENESSAPP ensures that this report clearly discloses economic, environmental, and social impacts useful for stakeholders indecision-making.

32

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Ecosystem

Approach

Strategy

Performance

Achievements

The following is a chart of the material topic determination process:Evaluating current material
topics in line with current global
sustainability trends and the needsof our stakeholders.

Conducting a gap analysis andmateriality assessment (this werecarried out through surveys,
focus group discussions, expert
consultations), aligning it with thesustainability reporting framework
and requirements (i.e., GRI, OJK,etc.).

Determining the material topics that
influence stakeholder decisions
and their significant impacts
on the company’s economic,
environmental, and social aspects.

Disclose the Sustainability
performance based on the agreed
material topics.

Present the results and seek
approval from the Management
Board.

Performance Deep-DiveDisclosure

Company Profile33

The company systematically identifies
material topics as an integral part ofdetermining the scope of disclosurein this report that meets the interestsof stakeholders. The material topics
disclosed in the report are in parallel
with, and supports, the SRV 2030 plan’s
and target’s, including commitments, key
initiatives, and achievements to be met.
The determination of material topics iscarried out by considering the aspectsof positive and negative impacts, as wellas their significance for the company’ssustainability and taking into accountstakeholder concern.
The company involves internal andexternal stakeholders in this process toensure the identification of significant
material topics for the company’s strategic
direction, sustainability performance andreporting.

Theme Explanation

Message from Top Management

Based on the results of the various
stakeholder engagement and operational
impacts significance to both the company
and stakeholders, the following material
topics are identified for disclosure:1

Economic Impact

2

Material Use

3

Safeguarding Biodiversity

4

Water and Waste Management

5

Climate Resilience

6

Sustainable Forest Management7

Responsible Supply Chain

8

Creating Social Value

9

Employee Welfare

10

Sustainability Governance

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

34

High

INFLUENCE ON STAKEHOLDER ASSESSMENTS AND DECISIONS

Cover Story

9
1

10

3

8
7

6
5

4

Priority Material Topic

2

Emerging Material Topic

Low

High
SIGNIFICANCE OF ECONOMIC, ENVIRONMENTAL, AND SOCIAL IMPACTS

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Performance Deep-DiveDisclosure

Company Profile

MATERIAL TOPICS
APP summarized 10 material sustainability aspects deemed important to stakeholders for disclosure. These material topics are disclosed inaccordance with GRI standard’s topic, totalling 25 perimeters. We have mapped our material aspects in more detail to GRI topics, as can beseen below:

Impacted
Stakeholders

Material Topic(s)and GRI

Key Issues

Policies

1. Investors

1. Economic Performance [GRI 201]

1. Financial Performance and Taxation

1. Anti-Bribery and Anti-Corruption Policy

2. Government

2. Tax [GRI 207]

2. Governance Policy

3. Suppliers
4. Customers

ECONOMIC IMPACT
Importance: Our economic impact
creates and maintains value-added
for all stakeholders.

5. Local Communities
6. Media

Strategies, Monitoring and Evaluation:
1[GRI 3-3]

Monitoring internal and externalchanges and developments toadapt to the pandemic through joint
management plans with reliable
human resources.

2

Meeting target metrics for material
topics.

35

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Theme Explanation

Message from Top Management

MATERIAL USE
Importance: Disclosing material
use allows companies to track theirenvironmental footprint and identify
areas for improvement. It can also
help them comply with regulations thatare increasingly requiring companies
to report on their use of resources.
The disclosure also builds trust with
consumers who increasingly want toknow about the environmental and social
impact of the products they buy.

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Impacted
Stakeholders

Material Topic(s) and GRI

Key Issues

Policies

1. Government

1. Material Use [GRI 301]

1. Product Responsibility

1. Fiber Procurement and Processing Policy

2. Employees

2. Certification

2. Environmental Policy

3. Suppliers

3. Fiber Sources

3. Business Code of Conduct

4. Local Communities

4. Supplier Environmental
Assessment

4. Supplier Code of Conduct

5. Investors

Strategies, Monitoring and Evaluation:
1

Identify the most critical materials
based on factors like environmental
impact, scarcity, and cost.

2

Using less material to create a
product.

3

Replacing high-impact materials withmore sustainable alternatives.

4

Optimizing processes to minimize
material waste.

5

Meeting target metrics for material
topics.

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Theme Explanation

Message from Top Management

SAFEGUARDING BIODIVERSITY
Importance: Biodiversity is crucial
for maintaining the health ofecosystems that support all life onearth. The loss of biodiversity canhave significant impacts on humanhealth if ecosystem services are
no longer adequate to meet social
needs.

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Impacted
Stakeholders

Material Topic(s)and GRI

Key Issues

Policies

1. Government

1. Biodiversity [GRI 304]

1. High Conservation Value/High Carbon Stock

1. Environmental Policy

2. Local Communities

2. Wildlife Protection

2. Forest Conservation Policy

3. NGOs

3. Restoration

3. Corporate Social Responsibility Policy

4. Media37

4. Fiber Procurement and Processing Policy

5. Industry Associations

Strategy, Monitoring, and Evaluation:
1

Using a landscape approach toprotect and restore natural forests inconcession areas.

4

Protecting natural forests throughregular security patrols and specialist
technology.

2

Implementing HCV/HCS assessments.

5

Monitoring changes in forest land
cover through satellite imagery.

3

Establishing nurseries for local tree
species, in collaboration with local
communities, as part of community
empowerment programs.

6

Conducting snare removal
operations with stakeholders to clear
up snares that endanger key species.

7

Mitigating human-wildlife conflicts,
together with local Natural Resource
Conservation offices and otherorganizations, within and around our
suppliers’ concession areas.

8

Supporting and facilitating animal
relocation in conflict areas.

9

Fulfilling target metrics for material
topics.

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Theme Explanation

WATER AND WASTE
MANAGEMENT
Importance: Water and waste
management is crucial for
protecting our environment andensuring that we make the mostefficient use of our resources.

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Impacted
Stakeholders

Material Topic(s)and GRI

Key Issues

Policies

1. Government

1. Water & Effluents [GRI 303]

1. Water efficiency

1. Environmental Policy

2. Customers

2. Waste [GRI 306]

2. Waste and materials

2. Fiber Procurement and Processing Policy

3. Local Communities
4. Media
5. Industry Associations

Strategy, Monitoring, and Evaluation:
1

Optimizing wastewater recovery
systems and reducing fiber loss.

3

Revitalizing equipment in thewatering system.

2

Monitoring water consumption.

4

Fulfilling target metrics for material
topics.

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Theme Explanation

Message from Top Management

CLIMATE RESILIENCE
Importance: The detrimental impactsof climate change on our economy,
environment, and society are alreadyimmense and are projected toworsen in the future. By bolstering
our resilience, we can mitigate thenegative consequences of climatechange and adapt to the shifts thathave already occurred.

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Impacted
Stakeholders

Material Topic(s)and GRI

Key Issues

Policies

1. Government

1. Energy [GRI 302]

1. Energy Efficiency

1. Environmental Policy

2. Customers

2. Emissions [GRI 305]

2. Renewable Energy

2. Forest Conservation Policy

3. Carbon Footprint

3. Governance Policy

3. Local Communities

4. Emissions

Strategy, Monitoring, and Evaluation:
1

2

Monitoring and evaluating activities
and/or portfolios with the potential togenerate or contribute to Scope 1, 2,
and 3 GHG emissions in accordancewith pre-defined targets.
Conducting studies of potential
internal carbon insetting.

3

Implementing various energy
efficiency initiatives.

4

Fulfilling target metrics for material
topics.

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Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Impacted
Stakeholders

Material Topic(s)and GRI

Key Issues

Policies

1. Government

1. Supplier Environmental
Assessment [GRI 308]

1. Forest Fires

1. Forest Conservation Policy

2. Peatland Management

2. Environmental Policy

2. Local Communities
3. NGOs

3. Fiber Procurement and Processing Policy

4. Media

4. Corporate Social Responsibility Policy

5. Industry AssociationsSUSTAINABLE FOREST
MANAGEMENT (SFM)
Importance: Sustainable Forest
Management is crucial forpreserving the health and resilienceof forests and meeting the needsof present and future generations.
SFM promotes responsible forest
management practices, such asconservation, regeneration, andsocial engagement.

Strategy, Monitoring, and Evaluation:
1

2

3

Supplier Evaluation and Risk
Assessment (SERA) and other tools
facilitate the screening of pulpwood
suppliers, ensuring compliance withSRV 2030 and Forest Conservation
Policy.
Working towards 100% automation in
our nursery operations and planting
processes to achieve consistent anduniform tree growth and health.
Ensuring that purchased fiber iscertified under sustainable forest
management schemes.

4

Implementation of the Integrated
Sustainable Forest Management Plan
(ISFMP).

5

Utilizing precision forestry concepts,
including the use of unmanned aerial
vehicles (UAVs).

6

Implementing best peatland
management practices.

7

Implementing an integrated fire
management strategy.

8

Fulfilling target metrics for material
topics.

40

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Impacted
Stakeholders

Material Topic(s)and GRI

Key Issues

Policies

1. Government

1. Procurement Practices [GRI 204]

1. Product Responsibility

1. Fiber Procurement and Processing Policy

2. Suppliers

2. Materials [GRI 301]

2. Certification

2. Environmental Policy

3. Customers

3. Supplier Environmental Assessment[GRI 308]

3. Fiber Sources

3. Business Code of Conduct

4. Marketing and Labelling [GRI 417]

4. Supplier Environmental
Assessment

4. Supplier Code of Conduct

41

5. Corporate Social Responsibility Policy
6. Human Rights Policy

RESPONSIBLE SUPPLY CHAIN
Importance: Responsible supply chain
management is crucial for sustainable
development as it ensures that all products
and services are produced and delivered
ethically, with minimal negative impact on
the economy, environment, and people.

Strategy, Monitoring, and Evaluation:
1

2[GRI 3-3]

Conducting all aspects of due
diligence related to sustainabilityof customers/potential customers,
including through Sustainability
Due Diligence (SDD), Enhanced
Sustainability Due Diligence (ESDD),
and Sector Guidance.
Providing an Action Plan tocustomers/potential customers
who do not meet the Financial
Institutions's minimum sustainability
requirements.

3

Continuously encouraging customers/
potential customers to adopt andimplement sector-specific best practices
for sustainability.

5

Integrating and mainstreaming theimplementation of No Deforestation,
No Peat and Exploitation (NDPE)
through Sector Guidance.

4

Identifying and classifying Bank’s portfolio
based on sustainability risks, sustainablebusiness activity categories, andcategories of products and services withenvironmental, social, and sustainable
impacts (Green Social Sustainable Impact
Products and Services), and the Indonesia
Green Taxonomy.

6

Fulfilling target metrics for material
topics.

Cover Story

Theme Explanation

Message from Top Management

CREATING SOCIAL VALUE
Importance: Creating social value has
the potential to impact the surrounding
communities.

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Impacted
Stakeholders

Material Topic(s)and GRI

Key Issues

Policies

1. Local Communities

1. Indirect Economic Impacts [GRI 203]

1. Community Empowerment

1. Corporate Social Responsibility Policy

2. NGOs

2. Local Communities [GRI 413]

2. Conflict Resolution

2. Grievance Policy

3. Media

3. Human Rights Policy

4. Academic Institutions
5. Industry Associations

Strategies, Monitoring and Evaluation:
1

Providing long-term sustainable
livelihood enhancement tocommunities and fostering good
relations between the Company andcommunities.

2

Conducting Social Impact Studies(SIS) to help determine suitableempowerment programs for specificareas.

3

Community empowerment throughintegrated programs (i.e., Desa
Makmur Peduli Api - DMPA) withenvironmental conservation efforts
and directly synergized with fire
prevention efforts.

4

Encouraging multi-stakeholder
partnerships with communities toprevent and resolve land disputes.

5

Meeting target metrics for material
topics.

42

Cover Story

Theme Explanation

Message from Top Management

EMPLOYEE WELFARE
Importance: Employee welfare is
crucial to promote a healthy andproductive work environment.
Investing in our employees is not
only the right thing to do but can also
lead to increase productivity andprofitability for APP.

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Impacted
Stakeholders

Material Topic(s)and GRI

Key Issues

Policies

1. Government

1. Market Presence [GRI 202]

1. Health and Safety

1. Human Rights Policy

2. Employees

2. Employment [GRI 401]

2. Employee Welfare

2. Health and Safety Policy

3. Contractors

3. Labor or Management Relations [GRI 402]

3. Education and Training

3. Supplier Code of Conduct

4. Occupational Health and Safety [GRI 403]

4. Speak Up Policy

5. Training and Education [GRI 404]

5. Whistleblower Protection Policy

6. Child Labor [GRI 408]
7. Force or Compulsory Labor [GRI 409]
8. Security Practices [GRI 410]

Strategies, Monitoring and Evaluation:
1

Creating an environment that fosters
collaboration and values employees
by recognizing and rewarding
success and career development
programs.

3

4
2

Providing a confidential service for
employees to report discrimination
anonymously or other concerns
to our team at our Integrated Call
Center.

Managing health and safety at
individual mill level allowing bestsuited procedures to sites.
Maintaining the CSMS Program forour contractors working in medium tohigh-risk areas.

5

Employee training.

6

Meeting target metrics for material
topics.

43

Cover Story

Theme Explanation

Message from Top Management

SUSTAINABILITY GOVERNANCE
Importance: Sustainability governance is
crucial to ensure that APP’s sustainability
initiatives align with its overall businessstrategy and values. By implementing
effective sustainability governance,
APP can reduce its environmental andsocial impacts, increase transparency
and accountability, and build trustwith stakeholders, which can lead toenhanced reputation, resilience, andlong-term success.

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Impacted
Stakeholders

Material Topic(s)and GRI

Key Issues

Policies

1. Government

1. Anti-corruption [GRI 205]

1. Business Ethics

1. Governance Policy

2. Employees

2. Diversity and Equal
Opportunity [GRI 405]

2. Diversity and Equal
Opportunity

2. Anti-Bribery and Anti-Corruption Policy

3. Suppliers

3. Non-Discrimination [GRI 406]

3. Non-Discrimination

3. Grievance Policy

4. Contractors

4. Security Practices [GRI 410]

5. Industry Associations

5. Public Policy [GRI 415]

4. Human Rights Policy

Strategies, Monitoring and Evaluation:
1

2

Maintaining our four-pillar approachto overseeing ethics and risk
management consisting of asset
protection, integrity management,
fraud prevention, and businessethics.
Documenting our integrity strategy
through the Business Code of
Conduct (BCoC).

3

Conducting regular internal andexternal audits and assessments toensure cost-saving measures andpotential training to improve theCompany’s efficiency.

4

Striving to achieve our target of
having 30% female employees at the
management level or above.

5

Meeting target metrics for material
topics.

44

PERFORMANCE
We believe that management
will continue to focus searchingfor opportunities in elevatingcompany performance andstrengthen its position as
Indonesia’s reliable pulp, tissue,
and paper producer.

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

PERFORMANCE
Throughout 2023, the Board of Directors has steered the company with prudence andagility, navigating economic turbulence while simultaneously enhancing the efficiency ofbusiness operations to maintain its sustainability meeting market demand. In this effort,
the company’s management has implemented a series of strategic initiatives to streamline
operations and optimize the utilization of available resources without jeopardizing its
sustainability impact commitments. Having a strategy that is focused on the relatively
resilient Asian and domestic markets, coupled with penetration into prospective newmarkets, has bolstered positive horizon ahead.

46

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

ECONOMYECONOMIC PERFORMANCEHIGHLIGHTS

APP’s net sales in 2023 dropped by 10%
or approximately US$ 1 billion compared
to 2022.

Quantity of Production [OJK B.1.a]
51% drop in net income to US$ 1.4 billion.

Pulp

6,715

2021

Thousand
tons

6,594

2022

6,791

2023

Paper,
packaging,stationery
6,310

2021

6,295

2022

Thousandtons

TissueThousand
tons

Pulp, paper, and tissue production
dropped by 2% to 13.9 million tons, or
233 thousand tons lower than in 2022.

6,177

2023

728

859

1,014

2021

2022

2023

APP paid taxes of US$ 289.87 million to
the Indonesian Government.

Unit

2021

2022

2023

Net Sales [OJK B.1.b]Billion USD

8.2

9.5

8.5

Net Income [OJK B.1.c]

Billion USD

1.6

2.8

1.4

Foopak Bio Natura

Foopak Bio Natura

Foopak Bio Natura

96%

91%

94%

Eco-friendly products [OJK B.1.d]
Percentage of local suppliers [OJK B.1.e][OJK B.1]%

47

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

48

ENVIRONMENTUPSTREAM

Installing GPS collars on elephants to track their movement routes in real-time to help
mitigate negative human-elephant interactions.
Using better nursery mediums with fiber cells, which are more environmentally friendly as
they do not produce plastic waste.
Utilizing the latest technology and digitalization to optimize operations: modern nurseries,
solar panels, seed clones, the use of Artificial Intelligence and drones.

Forests and Biodiversity [OJK B.2.d]

Percentage
of concession
area affectedby fires

0.025

%

0.022

Community
Engagement
through Desa
Makmur Peduli
Api (DMPA)
program
3.3

3.7

USD
million441 villages have benefited from the DMPA programwith a total of ±87,500 beneficiaries.
4.1

0.008

2021

2022

2023

Consistent implementation of the Integrated Fire Management (IFM) System, training andeducation on fire prevention for local communities and company staff. The percentage ofconcession areas affected by fires was 0.008%, a 64% decrease compared to 2022.

As of 2023, the total area of peat dome restoration has reached 99%
of SRV 2030 target.
Land dispute resolution has reached a level of 67%.

2021

2022

2023

Implementing the Supplier Evaluation and Risk Assessment (SERA) system to ensure all
APP’s wood fiber suppliers comply with and adhere to the company’s fiber procurement
and management policies.
2021

2022

2023

Suppliers that meet the PEFC scheme and are certified by PHL-VLK (Timber Legality Verification System/SVLK)

100%

100%

100%

Industrial forest plantation wood from sustainably managed forests evaluated through the SERA implementation process

100%

100%

100%

Percentage of land disputes resolved

61%

63%

67%

[OJK B.2]

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Business units receiving the PROPER Bluerating:Riau Abadi LestariFinnantara Intiga

Satria Perkasa Agung

Sumalindo Hutani Jaya

Wirakarya Sakti

Biodiversity conservation:
Monitoring of:Repopulation of 4 tree species inconservation areas:

42 Sumatran Tigers

Balangeran

132 Sumatran Elephants

Ulin

17 Orangutans

Trembesi

17

Ramin

132

Elephants

42

Tigers[OJK B.2.d]

Orangutans

Performance Deep-DiveDisclosure

Company Profile

49

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

DOWNSTREAM
INPUTPROCESSOUTPUT

RAW MATERIALSWATER

PRODUCTION

Pulpwood

Total Water Consumption

Use of Reuse and Recycled Water

24,293,977 Tons

265,945 ML

49,211 ML

Pulp

Paper

6,791,000 Tons

6,177,000 Tons

[RR-PP-000.A]
ENERGY

Virgin Fiber/Plantation Fiber [RR-PP-000.C]
Local

Import3,045,600 Tons

350,642 Tons

PackagingChemicals

1,209,971 Tons

4,427,198 Tons

TissueChemicals

5,555,955 Tons

Renewable Energy Sources

Non-Renewable Energy Sources

1,014,000 Tons

168,122,335 GJ

123,599,872 GJ

Converted Products

1,798,536 Tons

Energy Intensity

24.71 GJ/ton of product

WASTE

Recycled Fiber

3,083,887 Tons
Business units receiving the PROPER Blue award:
Indah Kiat Perawang

Tjiwi Kimia

Indah Kiat Serang

Purinusa Ekapersada Semarang (Bawen)

Lontar Papyrus

Purinusa Ekapersada Demak[RR-PP-000.B]

Hazardous Waste
Generated

Non-Hazardous
Waste Generated

832,149 Tons

686,742 Tons

EMISSIONS

Purinusa Ekapersada Subang

Indah Kiat Serang mill installed an Anaerobic Waste Water Treatment (WWT) #2 to produce biogas (methane gas)
as a renewable energy source. The biogas is then used as fuel in a biogas boiler to generate steam supplied to
the Stock Preparation (SP) / Paper Machine (PM) production unit. The use of biogas increased by 25% compared
to 2019.
98% of the energy sources at the OKI mill come from renewable sources.
Indah Kiat Tangerang mill collaborated with the Tangerang Regency Government in managing the Ketapang
mangrove area. In this activity, the Tangerang mill planted a total of 150,000 Avicennia marina mangrove trees
from 2018-2023. This program aims to protect the northern coastal areas from erosion.
The bottom ash waste from the coal combustion process at the power plant is utilized by Tjiwi Kimia mill for
producing multiblock and received recommendations from relevant government agencies.

Scope 1

Scope 2 (Market based)

11,535,826 tCO2e

503,397 tCO2e

Scope 3Emission Intensity (Scope 1 & 2)

9,525,559 tCO2e

1.02 tCO2e/tons product

WATER
COD

AOX

100.9 mg/l

0.4 mg/l

TSS

BOD

24.8 mg/l

28.9 mg/l

AIR
NO2

SO2

153.11 mg/Nm3

132.03 mg/Nm3

Particulate

63.91 mg/Nm3

50

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

51

SOCIAL
Implementation of Human Rights Due Diligence (HRDD) at OKI mill andsuppliers of Bumi Andalas Permai. We plan to continue implementing
HRDD in all our mills annually.

Trainning and Dissemination

CE Program

Total
employees

Community groupand partner
engagement

30,6042021

30,8212022

PT Indah Kiat Pulp & Paper Tbk received the PRISMA (Business andHuman Rights Risk Assessment) award from the Ministry of Law and
Human Rights. The award recognizes the company’s leadership andcommitment to implementing high human rights standards.

33,044

2023

2,941

3,306

3,756

2021

2022

2023

2021

Prioritizing comprehensive health services for employees by providing
sports facilities, health programs, and hosting various health-related
webinars and seminars, covering topics such as nutrition, stressmanagement, hygiene, and mental health promotion.

2022

2023

EMPLOYEES
Percentage of women in senior management

24.5%

26.43%

27.46%TRAINING AND DISSEMINATION
Average training hours (hours/employee)

24

13

5

583,222

616,000

404,755

CE PROGRAM
Total CE program beneficiaries[OJK B.3]

Developing a comprehensive Diversity, Equity, and Inclusion (DEI)
Roadmap and preparing to establish a DEI committee consisting of
employees from various levels, including senior management and theBoard of Directors, to ensure that DEI values are embedded throughout
the company.
Our CE program empowers communities, builds strong relationships,aligns with UN SDGs, and measures success through monitoring andsocial return on investment.
17 villages received PROKLIM award in supporting waste management
programs and environmental conservation efforts.

RECOGNITIONSAs proof of APP's credibility,
we have compiled awards andcertificates given from credible
institutions. In addition, APP has
involved local communities in
multiple events and betterment
programs throughout the year.

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

KEY RECOGNITION AND PARTICIPATION IN 2023
AWARDS
January

Tjiwi Kimia

HIV/AIDS Prevention and Control

February

IKPPBest Local Currency Sukuk of theyear (2022)

March

Organizer

Category

Business Unit

January

HIV/AIDS Prevention and Control

Governor of East Java

Corporate

Tjiwi Kimia

February

Occupational Safety and Health Advisory Committee (K3)2023-Platinum category

Banten Provincial
Government

Corporate

IK TangerangFebruary

Best Local Currency Sukuk of the Year (2022)

Alpha Southeast Asia

Corporate

IKPP

February

COVID-19 Prevention and Management Program Award in theworkplace - Platinum Category

Banten Provincial
Government

Corporate

IK TangerangFebruary

P2HIV & AIDS Program Award - Platinum Category

Banten Provincial
Government

Corporate

IK Tangerang

MarchBest Partner of MoEF in 2023

Ministry ofEnvironment andForestry

Corporate

IKPP

April

1st Winner of Paritrana Award (Employment Social Security Award) at
Jambi Provincial Level 2022 Category of Large-Scale Companies in the
Agriculture, Animal Husbandry, Plantation and Fisheries Sector

BPJS
Employment

Corporate

LPPPI

May

Indonesia Green and Sustainable Award PT. Indah Kiat (Perawang,
Serang, Tangerang)

SWA

Corporate

IK Perawang

May

Bisnis Indonesia Award / Forestry & Paper Category

Bisnis Indonesia

Corporate

IKPP

May

Indonesia Green & Sustainable Companies Awards (IGSCA) 2023

SWA

Corporate

Tjiwi Kimia

June

Has Implemented the Occupational Health and Safety Management
System, with an Achievement of 92.77%

Ministry of
Manpower of the
Republic of Indonesia

Corporate

IK Perawang

JuneAward for the COVID-19 Prevention and Control Program at the
Workplace with the Platinum Category

Ministry of
Manpower of the
Republic of Indonesia

Corporate

IK Perawang

June

Top CSR Awards 2023

Top Business Magazine

Corporate

IK Serang

JuneAward for the COVID-19 Prevention and Control Programat the Workplace

Governor of
BantenCorporate

IK Serang

LPPPI

1st Winner of Paritrana Award(Employment Social Security
Award) at Jambi Provincial Level
2022 Category of Large-Scale
Companies in the Agriculture,
Animal Husbandry, Plantation andFisheries Sector
May

Award

IKPP

Best Partner of MoEF in 2023

April

Month

Tjiwi Kimia

Indonesia Green & Sustainable
Companies Awards (IGSCA) 2023

53

Cover Story

Theme Explanation

Message from Top Management

June

LPPPI

Zero Accident Award

July

AugustIK Perawang

Approach

Strategy

Performance

Achievements

IK Perawang

IK Serang, IK Tangerang,
Tjiwi Kimia, LPPPIPROKLIM Award

Company Profile

Organizer

Category

Business Unit

June

Occupational Health and Safety Supervisory Committee (P2K3)Award 2023 from the Provincial Government of Banten

Governor of
BantenCorporate

IK Serang

JuneAward for the HIV AIDS Prevention and Control Program at the
Workplace – Platinum Category

Ministry of
Manpower of the
Republic of Indonesia

Corporate

IK Tangerang

June

Top CSR Award 2023 #STAR4

Top BusinessCorporate

LPPPI

June

Company Receiving the Award for the COVID-19 Prevention andControl Program at the Workplace with the GOLD Category

Ministry of
Manpower of the
Republic of Indonesia

Corporate

LPPPI

June

Zero Accident Award

Ministry of
Manpower of the
Republic of Indonesia

Corporate

LPPPI

June

Top CSR Awards 2023 (Five Star)Top Business

CSR

Tjiwi Kimia

June

COVID-19 Prevention and Management Program Award in the
Workplace - Platinum Category

Ministry of Manpowerof the Republic ofIndonesia

Corporate

IK Tangerang

July

Pioneer Company for Green Industry in Accelerating
Sustainable Development in East Java

Governor of East
Java

Corporate

Tjiwi Kimia

AugustBest Business Entity Charter

BPJS
Employment

Corporate

IK Perawang

AugustAnti-Narcotics Award (ANA) / Most Inspirational National Private
Company in P4GN

Tangerang AntiNarcotics
Institution

Corporate

IK Tangerang

SeptemberAward in the Best Terminal Operator Category in ISPS Code
Implementation

Ministry ofTransportation

Corporate

IK Perawang

SeptemberAward in the Terminal Operator Category with the Most Ship Visits

Ministry ofTransportation

Corporate

IK Perawang

September

SDG Innovation Accelerator for Young Professionals – Waste
Management Collaborations

Global Impact
Network Indonesia

Corporate

IK Serang

October

Proklim Award

Ministry ofEnvironment andForestry

CSR

IK Perawang

October

Category Award for LKPM (PMA) Compliance, Rank 1

Investment
Coordinating Board

Corporate

IK Perawang

Award in the Terminal Operator
Category with the Most Ship Visits

October

Disclosure

Award

Best Business Entity Charter

September

Performance Deep-DiveMonthTjiwi Kimia

Pioneer Company for Green
Industry in Accelerating Sustainable
Development in East Java

Ecosystem54

Cover Story

Theme Explanation

November

Message from Top Management

OKI

ESG Business Awards
2023 - Kategori Renewable
Energy Adoption Award
December
The Best Sustainability
Program Corporate

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Month

Program/Award

Organizer

Category

Business Unit

October

Category Award for MSME Partnership (PMA), Rank 1

Investment
Coordinating Board

Corporate

IK Perawang

October

Proklim Award

Ministry ofEnvironment andForestry

CSR

IK Serang

October

Proklim Award

Ministry ofEnvironment andForestryCSR

IK Tangerang

October

Proklim Award

Ministry ofEnvironment andForestry

CSR

LPPPI

October

Proklim Award

Ministry ofEnvironment andForestry

CSR

Tjiwi Kimia

November

Climate Village Mentor of Serang Regency

Regent of SerangCorporate

IK Serang

November

ESG Business Awards 2023 - Category of Renewable
Energy Adoption Award

Asian Business
Review (Charlton
Media)

Corporate

OKI

NovemberAward for 10 Years of CSR Implementation and Participation
for Community Welfare in Air Sugihan Sub-District, OKI Regency

OKI Regency
Government

CSR

OKI

NovemberMisi Sejati (Mitra Sidoarjo Sehat, Sejahtera, dan Inspiratif / Sidoarjo
Healthy, Prosperous, and Inspirational Partner)

Sidoarjo Regency
Government

Corporate

Tjiwi Kimia

November

Sustainability Reporting Award

Global Corporate
Sustainability Awards

Corporate

APP

November

P4GN Program Award (Prevention, Eradication, Abuse and Illicit Drug
Trafficking)

BNN Banten
Provincial
Government

Corporate

IK Tangerang

December

Health Care Partner Stakeholder

Regent of SerangCorporate

IK Serang

December

CSR Awards 2023

Mayor of South
Tangerang

CSR

IK Tangerang

December

The Best Sustainability Program Corporate

Tangerang Pos

Corporate

IK Tangerang

DecemberBusiness and Human Rights Risk Assessment (PRISMA)

Ministry of Law
and Human Rightsof the Republic ofIndonesia

Corporate

Indah Kiat

IK Tangerang

55

Cover Story

Theme Explanation

Message from Top Management

EcosystemSIGNIFICANT EVENTS

United Nations Climate
Change Conference (UNCCC)
November 30 – December 12, 2023

DESCRIPTIONS/OBJECTIVESThe UNFCCC or COP (Conference of the Parties) is an annual
multilateral decision-making forum on climate change. Almost all
countries in the world are members of this forum. World leadersgather at the COP to agree on how to address the climate crisis,such as limiting global temperature rise to 1.5 degrees Celsius,
helping vulnerable communities adapt to the impacts of climatechange, and achieving net-zero emissions by 2050.

Speakers in several agendas
Zero Waste and Zero Emissions in Urban Waste
Unlocking Women’s Potential at the Grassroots:•

Promoting Gender•

Equality and Social Justice in Forest Protection•

Innovations in Ecosystem Restoration•

Strengthening the Future with Renewable Energy Solutions

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

56

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Inauguration of 9.8 MWp Rooftop Solar
Power Plant - PT Pabrik Kertas Tjiwi Kimia
Tbk
October 2, 2023

DESCRIPTIONS/OBJECTIVESThe Governor of East Java, Khofifah Indar Parawansa,
appreciated Tjiwi Kimia’s innovation in using solar power as an
eco-friendly alternative energy source.
Tjiwi Kimia’s adoption of solar panel technology is in line with
the Indonesian government’s commitment to achieve net-zeroemissions and promote FOLU Net Sink 2030.
The use of this technology in paper production not only increases
operational efficiency but also ensures significant carbon emission
reductions.

One of APP’s business units, Tjiwi Kimia, reaffirmed its
commitment to sustainability by integrating photovoltaic
technology through solar panels into its operations.
This step is tangible proof of Tjiwi Kimia’s commitment topromoting eco-friendly business practices and supporting theIndonesian government in reducing carbon emissions.
The inauguration of the 9.8 MWp Rooftop Solar Power Plant
installation, covering an area of 11.4 hectares, was held tocommemorate Tjiwi Kimia’s 51st anniversary.

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile57

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Promoting Early Writing Literacy,
SiDU Achieves MURI Record ThroughHandwriting Competition with Most
Elementary School Students
May 1 – June 22, 2023

DESCRIPTIONS/OBJECTIVES
Writing skills, along with reading, communication, filtering andanalyzing information, are crucial to enhance in order to acquire
knowledge to increase competitive economic opportunities globally.
This is a commitment that we continuously strive to uphold in order
to continuously support Indonesian children in advancing theircompetency levels for the future.

From this Writing Competition, 51 best student works wereselected and printed in a book entitled “Harta Karun
Indonesia” (Indonesia’s Treasures), with 2,000 copies printed
and distributed to schools across Indonesia.
We hope this book will inspire students to continue writing.
The launch of the “Harta Karun Indonesia” book was held
simultaneously with the awarding of the MURI record certificate at
SDN 10 Kebon Jeruk, Jakarta.

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

58

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Collaboration to Mitigate Human-Elephant
Conflicts in Air Sugihan Area, South
SumatraMarch 2023

DESCRIPTIONS/OBJECTIVES
As a collaborative effort with the South Sumatra BKSDA to reduce
the number of human-Sumatran elephant conflicts, APP handed
over GPS collars to be attached to elephants to monitor their realtime movements.
This collaboration adds to the previous installation of GPS collars on
two lead elephants in separate elephant groups.

Providing GPS Collars to be attached to wild elephants.

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PT OKI Pulp & Paper Mills and PT APP
Purinusa Ekapersada Officially Registeredas Members of the United Nations Global
Compact (UNGC)PT OKI Pulp & Paper Mills: June 2023
PT APP Purinusa Ekapersada: November 2023

DESCRIPTIONS/OBJECTIVESThe UNGC is a United Nations initiative for businesses toencourage stakeholders in countries to adopt sustainable policies
and social responsibility, and to report on the implementation
outcomes.
The Global Compact principles emphasize ten key areas including
human rights, labor, environment, and anti-corruption. These
principles align with the Sustainable Development Goals (SDGs).

Speakers in several agendas
Registered as a member of the UNGC.
*PT APP Purinusa Ekapersada registered as the parent companyof 6 previously registered APP mill companies

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PERFORMANCE
DEEP-DIVE
APP is commited to increase its economic
performance as an integral contribution for thenation's economic development. Through our efforts,
APP strives to give a positive impact towards financial
growth on a national level.

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PERFORMANCE
DEEP-DIVE
I. ECONOMY
APP is committed to enhancing
its economic performance as anintegral part of its contribution
to have a positive impact on
economic growth at the national
level.
In addition to focusing on economic performance, APP
also has a strong commitment to supporting economic
development through job creation. Thus, APP views
economic performance not only as a business goal
but also to support and strengthen the nation’s
economic foundation.
The global economy is moving towards sustainability,
prompting companies to enhance their responsible
and ethical business practices, and productcompetitiveness through improved sustainability
and efficiency. Competition in the cultural paper andindustrial paper business segments that the Company

operates in is becoming increasingly intense,
both domestically and internationally. Key factors
influencing the domestic and international markets
include brand, product quality, distribution, price, andsustainability. To this end, the Company is focusing
its efforts in various areas to enhance its sustainable
practices performance. One of its efforts is to develop
high value-added and sustainable products.
Amidst global economic uncertainty and slowdown
caused by the post-pandemic period, the Indonesian
economy remains robust and stable. Data fromthe Central Statistics Agency (BPS) suggests thatIndonesia’s economic growth for 2023 could reach
5%. However, in 2024, the global economy isprojected to continue facing various uncertainties(i.e., economic slowdowns, etc.), which could lead toeconomic fragmentation (as opposed to economic
integration), commodity price volatility, climate change
threats, a contraction of the global manufacturing

Purchasing Managers’ Index (PMI), etc. These global
conditions can undoubtedly have a significant impact
on the Indonesian economy if the government,
regulators, industry players, and other stakeholders
do not prepare anticipatory measures.

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In response to the current market situation, the Company’s
management will continue to closely monitor market
conditions, assess the situation, and actively respond to
mitigate any impact on the Company’s operations. The
Board of Directors encourages and expects the Company
to continue growing while maintaining a cautious approachand strive for excellence in conducting business with afocus on long-term business sustainability.
In 2023, APP recorded a significant decline in sales,
reaching approximately US$1 billion or 10% lower comparedto the previous year. This resulted in a total sales drop of
US$1.48 billion. The sales downturn also impacted thecompany’s net income, which plummeted by 51% compared
to 2022. In the reporting year, APP recorded a net incomeof US$1.4 billion. In terms of production, APP produced 13.9
million tons of paper and pulp, a 2% decrease or 233,000
tons compared to 2022.

US$1.4 BILLIONNet Income

13.9 MILLION TONSPaper and Pulp Production

Ecosystem

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Strategy

Performance

Achievements

APP is committed to strengthen its economic sustainability
in the global pulp and paper industry.
Financial statements for APP’s public listed subsidiaries(mills) and/or have issued conventional and sukuk bonds(Islamic) are available on the website https://app.co.id/
investors .
These subsidiaries are as follows:•
PT Indah Kiat Pulp & Paper Tbk (Indah Kiat),•
PT Pabrik Kertas Tjiwi Kimia Tbk (Tjiwi Kimia),•
PT OKI Pulp & Paper Mills (OKI),
PT Lontar Papyrus Pulp & Paper Industry (Lontar),•
PT Pindo Deli Pulp and Paper Mills (Pindo).
•

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DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED
2021

2022

2023

8,236

9,543

8,534

Operating costs

5,084

5,826

5,771

Employee costs

312

246

302

Payments to providers of capital

575

607

721

Tax payments

10

10

14

CSR costs

6

4

4

TOTAL ECONOMIC VALUE DISTRIBUTED

5,987

6,693

6,812

Total economic value retained

7,517

10,384

11,684In million USD

ECONOMIC VALUE GENERATEDNet Sales
ECONOMIC VALUE DISTRIBUTED

Note: As a private company, APP does not publish financial statements in public domain. The figures presented above are in accordance with the GRI Standards.

COMPARISON OF PRODUCTION, SALES AND NET REVENUE TARGETS AND PERFORMANCEThe Company targets an increase in sales and net revenue of 5% to 10% compared to the previous year’s achievements. However, in 2023, APP did not meet its set financial targets or at least maintained the same
performance as in 2022.

Production Realization(thousand Tons)

Net Sales Realization(in million USD)Net Revenue Realization(in million USD)

2023

13,981

8,534

1,403

2022

13,748

9,543

2,889

2021

13,753

8,236

1,638

[GRI 201-1] [OJK F.2]

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COMPARISON OF TARGETS AND PERFORMANCE ON
PROJECTS ALIGNED WITH SUSTAINABLE BUSINESS

Foopak Bio Natura is one of APP’s eco-friendly products. The board which has all thedifferent grades for food and beverage. They are considered eco-friendly due to the following
characteristics:

BIODEGRADABLERECYCLABLE

FOOD-SAFE CERTIFIED

Foopak Bio Natura cannaturally decompose
within 12 weeks, thus
not polluting theenvironment.

Foopak Bio Natura canbe recycled along withother paper products,
thereby reducing waste.

Foopak Bio Natura has
been certified safe foruse as food packaging.

Foopak Bio Natura is an innovative solution to reduce plastic usage in the food packaging
industry. This product helps conserve the environment and provides an eco-friendlier option
for consumers.
2021

2022

2023

Quantity (tons)

23,30813,72640,496

Value (USD)

30,719,562

15,246,723

48,015,059

Quantity (tons)

19,33915,824

21,258

Value (USD)

26,876,589

17,743,888

25,887,282

EXPORTDOMESTIC[OJK F.3]

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TAX GOVERNANCE
APPROACH TO TAX
The pulp and paper business, as operated
by APP, makes a significant contribution
to the nation’s tax revenue. Given thevast scale of APP’s projects, including
significant investments in the industry,the company receives tax incentives fromthe government as part of its support foreconomic development and growth.
The tax incentives provided by thegovernment play a crucial role in facilitating
the investment and infrastructuredevelopment required in the pulp andpaper business. In addition to contributing
through income tax, APP also actively
participates in paying import and export
duties, as well as other tariffs related
to transportation and trade activities.

Mill

Moreover, APP’s retail activities involve
large-scale sales transactions, which
generate consumption taxes and duties.
The pulp, paper, packaging, and tissue
manufacturing sector are labour intensein mills and offices, generating revenue
for the government through employment
taxes. These taxes are collected and paid
to the authorities.
Tax payments are part of APP’scommitment to national progress.
APP adopts a tax approach based oncompliance with tax regulations. APP’s tax
policies and strategies are reviewed andapproved by the Chief Financial Officer.
These policies and strategies are reviewed

Tax Rate

Statutory tax rate

22%

Effective corporate income tax rate

11%

Forestry

Tax Rate

Statutory tax rate

22%

Effective corporate income tax rate

2%

[GRI 207-1]

annually to align with applicable tax
regulations. APP’s commitment totaxation not only supports public trustin the Company but also contributes tonational development. [GRI 207-1]

ReasonThe effective corporate income tax rate is lower than the statutory tax rate due to the following reasons: tax credits, tax incentives in Indah
Kiat Perawang and Lontar Papyrus that allow the companies to accelerate depreciation expenses, government tax holiday for OKI (until
2027), tax losses arising in previous years that have been offset against current year profits, and a 3% reduction in the corporate income rate
for public company. [GRI 201-4]

ReasonThe effective corporate income tax rate is lower than the statutory tax rate due to tax losses
carried forward and tax credits. [GRI 201-4]

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TAX GOVERNANCE, CONTROL,
AND RISK MANAGEMENTSTAKEHOLDER ENGAGEMENT AND MANAGEMENT OF CONCERNSRELATED TO TAX

The tax governance and control framework within APP
is implemented as follows:
1. Consulting with tax experts and professionals toensure compliance and effectiveness.
2. Identifying and monitoring the company’s risks,
including tax risks.
3. Evaluating compliance with tax governance andregulations.
4. Establishing audit procedures or assurance
processes to ensure the fulfilment of tax
obligations.

In terms of taxation, the primary stakeholder is the Government through the tax office. Therefore, APP maintains a good
relationship with the tax office but does not engage in tax advocacy issues. APP adheres to all applicable tax laws andregulations.

In the event of unethical behaviour or tax-related
violations, APP has provided a whistleblowing
mechanism – a violation reporting system.

COUNTRY-BY-COUNTRY REPORTING
APP’s accounting is prepared based on the Indonesian Generally Accepted Accounting Principles (IDGAAP), the accounting
standards established by the Indonesian government. The following are APP’s payments of obligations to the Central andRegional Governments in 2022 (in USD).
Description

Pulp & Paper Mills

Forestry Companies

Statutory tax rate

22%

22%

Effective corporate income tax rate

11%

2%

Third-Party Revenue

6,117,084,833

41,227,638

Related-Party Revenue

3,533,517,894

678,240,369

Total Revenue

9,650,602,728

719,468,007

Profit Before Income Tax

2,188,987,820

1,062,583

Income Tax Paid

283,437,561

6,438,036

Income Tax Accrued

280,396,040

385,509

Stated Capital

2,042,287,515

317,863,782

Accumulated Earnings

7,364,969,304

552,943,941

Tangible Assets Other Than Cash or Cash Equivalents

9,225,973,992

1,341,332,336

In addition to taxes, APP also contributes to the Indonesian government through Non-Tax State Revenue (PNBP). In thereporting year, APP paid a total of US$289.87 million in taxes to the Indonesian government.

[GRI 207-2], [GRI 207-3], [GRI 207-4]

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II. ENVIRONMENTUPSTREAM
APP’s business depends on natural resources, particularly
forests.
Recognizing this, maintaining forest sustainability is not only an ethical obligation but also
a strategic necessity for the continuity and sustainability of the business, considering that
forests serve as the primary source of raw materials that support the company’s operations.
Therefore, APP is deeply committed to preserving forest sustainability through sustainable
management practices and biodiversity protection.
Preserving forest sustainability not only serves to ensure a supply of raw materials for APP
but also fosters APP’s business reputation among increasingly sustainability-conscious
consumers and investors. In addition, APP strives to protect forests as they are a sourceof livelihood for local communities. By working together to protect forests, APP is building
prosperous lives for communities in the vicinity of its operational areas.

Performance

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SUSTAINABLE
FOREST
MANAGEMENTFOREST POLICY AND COMMITMENTS

1.

No Deforestation [E.1.2.9.1] [E.1.2.9.5]
APP has been committed to zero deforestation
across its supply chain since 2013. This is managed
and monitored through a timber tracking systemthat ensures all raw materials come from sustainablesources.

4.

2.

Sustainable Forest Management (SFM) Practices
APP implements Sustainable Forest Management(SFM) principles across all its suppliers’ concessions.
The SFM initiative ensures that forests aremanaged sustainably to meet economic, social, andenvironmental needs. The key principle of SFM is toensure the sustainability of forests for the benefit ofpresent and future generations.

3.

Forest Conservation Policy (FCP)In 2013, APP launched the Forest Conservation
Policy (FCP) to protect natural forests and conserve
the biodiversity. The FCP encompasses a range ofcommitments, such as halting natural forest clearing
and restoring degraded forests.

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APP’s commitment to forest sustainability is realized through various sustainable forest management strategies and initiatives
such as: [GRI 2-23] [RR-FM-450a.1]

5.

Fibre Procurement and Processing Policy (FPPP)
Fibre Procurement and Processing Policy (FPPP)
ensures that all fiber raw materials used by APP are
derived from legal and sustainable sources. FPPP also
prohibits the utilization of raw materials from converted
natural forests. This policy mandates the terminationof partnerships with non-compliant suppliers. Through
FPPP, we ensure that each raw material supply chain
complies with all local and international regulations on
responsible forestry practices.
High Conservation Value (HCV) and High Carbon
Stock (HCS)APP is committed to maintaining HCV and HCS areas,such as tropical rainforests and wildlife habitats. Thiseffort is carried out through biodiversity cultivation andrestoration of degraded forests.

6.

Collaboration with Stakeholders
APP collaborates with various stakeholders, suchas governments, Indigenous communities, NGOs,
industries, and experts to maintain forest sustainability.
This collaboration is carried out through various
programs, such as research and development,
education and training, and community empowerment.

7.

Free Prior and Informed Consent (FPIC [S.4.2.9.2][S.4.2.9.5] [S.4.2.9.6]
APP recognizes land rights granted by the government
to indigenous and local communities. For this reason,
APP has implemented the Free, Prior, and Informed
Consent (FPIC) principle and involved stakeholders.
Furthermore, all community empowerment projects
developed in these areas are also consulted with thecommunities through the implementation of FPIC.

Responsible forest management has received a positive response from various institutions, appreciating APP’s endeavours in implementing the Forest Conservation Policy (FCP) that manages
forests sustainably and upholding no-deforestation. Responsible and sustainable forest management is beneficial for both the environment and APP’s business. Sustainably managed forests can
produce a continuous supply of timber and ensure a stable supply of raw materials for pulp and paper production.

[OJK F.10]

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INTEGRATED SUSTAINABLE
FOREST MANAGEMENT PLAN
As part of the Forest Conservation Policy (FCP), APP established guidelines for an Integrated Sustainable Forest
Management Plan (ISFMP). This plan has been developed with input from stakeholders, such as local communities,
governments, academics, and civil society.
POLICY COMMITMENT 1

PROTECTING
NATURAL FOREST

POLICY COMMITMENT 2

1

2

PEATLANDMANAGEMENT

Supporting activities: IFFS2/FMP3/HCV/HCS/Peatland
Research
Integrated Sustainable Forest Management
Plan (ISFMP): This is the process of implementing
sustainability
Measurement and Verification: GHG emission
modelling/MRV4/Sustainability reporting
Further information can be found in the Sustainability
Dashboard (link)

POLICY COMMITMENT 4

GLOBALSUPPLY CHAIN

43

POLICY COMMITMENT 3

SOCIALCOMMITMENT

In practice, ISFMP (Integrated Sustainable Forest Management Plan) is implemented through the following activities:
1. Growth and Yield - Assessing the current and potential state of forest plantations in all sustainable forest
management.
2. HCV Studies - Areas with extremely significant and/or highly important ecological, social, or cultural values.
3. HCS Studies - Areas with high above-ground vegetation/biomass cover, meaning that these areas store a large
amount of carbon.
4. Peatland Management - Expert peatland assessment and recommendations for best management practices.
5. Social Management - Establishing Free, Prior, and Informed Consent (FPIC)1 responsible and ethical social
engagement.
Free, Prior and Informed Consent (FPIC) is a principle and right of indigenous communities, particularly those living within or in the vicinity of the company
concession areas, to give approval or refuse projects that potentially impact their lands and livelihoods.
IFFS stands for Integrated Forestry and Farming System. This program is also known as Desa Makmur Peduli Api (DMPA, Prosperous and Fire-Aware Village)
initiative, aimed at reducing deforestation, strengthening local economies, and promoting environmental sustainability.
3
Forest Management Plan (FMP) refers to the sustainable forest management plan in APP’s concession areas, including forest inventories, area utilization
allocation, ecosystem protection, and conservation programs.
4
Measurement, Reporting and Verification (MRV) is a system to measure, report and verify the environmental impacts of APP's operations.
1

2

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FOREST PROTECTION ANDCONSERVATION
APP is committed to protecting natural forests andimproving the livelihoods of communities. To achieve thisgoal, APP has developed a sophisticated Forest Alert
System to monitor changes in forest cover across its
suppliers’ concession areas.
In this digital age, technology plays a crucial role in various
aspects of life, including nature conservation efforts.
One example is the Forest Alert System, which utilizes
RADARSAT-2 satellite technology to monitor and protect
Indonesia’s forests. RADARSAT-2 is a satellite launchedby the Canadian Space Agency in 2007. It is equippedwith Synthetic Aperture Radar (SAR) technology that canpenetrate clouds and smoke, enabling forest monitoringin all weather conditions. Its remarkable capabilities evenallow RADARSAT-2 to detect a single felled tree in theforest.
Forest Alert System utilizes RADARSAT-2 satellite data
to detect real-time changes in forest cover. This enables
authorities to take immediate action in the event of illegal
deforestation.
In 2023, the Forest Alert System yielded positive results,
detecting a decline in forest cover change from 0.29% to0.13%. This decrease indicates an improvement in forest
conservation efforts.

The success of the Forest Alert System demonstrates that
advanced technology is a powerful tool in protecting forests. By
continuing to develop and utilize the latest technologies, we canensure the sustainability of our forests.
APP collaborates with authorities to prevent illegal logging andprotect forests. In addition, APP also works with various parties
to improve the standard of living of the community. These efforts
are expected to help the community find sustainable sources ofincome and eliminate the need for illegal logging.
In the Kubu Raya region, APP collaborates with the West
Kalimantan Green Trade Initiative (IDH), a program involving
various stakeholders aimed at promoting sustainablecommodity trade in Indonesia. Together with IDH, APP conducts
conservation area rehabilitation, dome peak restoration, land
cover monitoring, fire prevention, and joint patrols with local
communities.

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FORESTRYINNOVATION

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APP is committed to optimizing timber production and harvesting by prioritizing innovation and the latest technology. This isachieved through the digitalization of processes and the utilization of advanced technologies. APP’s forestry innovations focus
not only on production optimization but also on environmental conservation and community welfare. APP’s forestry innovations
include:1

Modern Nurseries
APP builds and operates state-of-the-art
nurseries with the latest technology to
produce high-quality seedlings that areresistant to pests and diseases. These
nurseries are operated with more eco-friendly
media and do not generate plastic waste.

4

Seed Cloning
APP develops superior seed clones with desired
traits, such as fast growth, good wood quality, anddisease resistance. Seed cloning is carried out ingreenhouses using the latest technology.

2

Mechanization, Automation, and Digitalization
APP utilizes modern machinery to perform
a variety of forestry tasks, such as planting,fertilizing, and harvesting. In addition,
automation and digitalization systems are used
to control, monitor, collect and analyze dataon forest conditions, tree growth, and forestry
operations in real-time.

5

Artificial Intelligence (AI) and Drones
Artificial Intelligence (AI) and drones are used tomonitor and analyze forest conditions, as well as
map concession areas. Aerial imagery obtained
from drones provides detailed information, while
AI ensures accuracy and eliminates the possibilityof human error. This technology offers an effective
method to monitor various environmental andagricultural factors.

3

Solar Panels
APP established Solar Power Plants (PLTS) in
its concession areas to generate eco-friendly
renewable energy. Solar panels are installed
in ranger stations and security checkpoints to
replace generators. Although the efficiency ofsolar panel batteries is not yet as expected,
APP continues to follow the development ofsolar panel technology for wider application in
the future.

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FOREST CERTIFICATION
93% of APP’s pulpwood suppliers have obtained
sustainable forest management certification under the
Program for Endorsement of Forest Certification (PEFC). In
2023, our SERA compliant suppliers in West Kalimantan,
PT Wanakerta Ekalestari (WEL), obtained the IFCC-PEFC
Certification. Meanwhile, another supplier in the sameprovince, PT Buana Megatama (BMJ), is still in the processof obtaining its certification. We are targeting BMJ to obtain
this certification by 2024.

Management (SFM) scheme. SFM refers to the scheme
implemented by the Indonesian government to ensurethat timber harvesting activities in production forests arecarried out legally and sustainably.
Additionally, APP’s pulpwood suppliers also implement
the ISO 45001, ISO 14001, and OHSMS certification
standards.

All (100%) of APP’s pulpwood suppliers have obtained the
mandatory Indonesian government Sustainable Forest

Arara Abadi

Riau Abadi
LestariFinnantara
IntigaSatria Perkasa
Agung*

Wirakarya
Sakti

Sumalindo Hutani
Jaya I & II

Environmental Management System

ISO 14001

ISO 14001

ISO 14001

ISO 14001

ISO 14001

ISO 14001

Health & Safety

OHSMS

OHSMS

OHSMS

OHSMS

OHSMS

OHSMS

ISO 45001

ISO 45001

ISO 45001

ISO 45001

ISO 45001

ISO 45001

IFCC-PEFC

IFCC-PEFC

IFCC-PEFC

IFCC-PEFC

IFCC-PEFC

IFCC-PEFC

SFM

SFM

SFM

SFM

SFM

SFM

Description

Chain of Supervision* Includes SPA Serapung and SPA KTH SInar Merawang

Disclosure

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FOREST FIRE
PREVENTION
APP is committed to keeping the area impacted by forest
fires below 2% within its own concession and SERA
compliant suppliers’ concession. This effort is carriedout through the implementation of various strategies
and programs. One of APP’s key strategies is theimplementation of the Integrated Fire Management (IFM)

System. The IFM system is an integrated system thatcombines technology, human resources, and industry bestpractise to prevent and mitigate forest fires. APP’s forest
fire management consists of several key pillars, including:

PREVENTIONPREPAREDNESSEARLY DETECTIONRAPID RESPONSE

•

•

•

•

•

•

Conducting routine patrols inconcession areas.
Building and maintaining forest
fire prevention infrastructure, suchas firebreaks and fire towers.
Raising public awareness about
the dangers and prevention offorest fires, through Fire Aware
Community groups. Communities
are encouraged not to burn land
for income generation.

••

Preparing a trained firefighting
team equipped with adequate
equipment.
Developing a comprehensive
forest fire management plan.
Conducting simulations andforest fire management exercises
periodically.

•

Installing an early forest fire
detection system, such as CCTV
cameras and heat sensors.
Regularly monitoring forest
conditions via satellite and drone,through a blanket monitoring
system capable of detecting fires,hotspots, and measuring the sizeof impacted areas.

•

•

•

Following up on any signs of forest
fires promptly.
Modifying firefighting strategies
according to conditions and type of
fire.
Using helicopters for monitoring
and water bombing to extinguishfires.
Collaborating with relevant parties,
such as government, firefighters,
and local communities.

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APP is also actively involved in educating and training the community about the dangers
and prevention of forest fires. These activities aim to raise public awareness and build
partnerships to conserve forests. In addition, APP continues to train its personnel, including
firefighters and fire operations officers. During the reporting year, APP conducted nine
training classes:
1.

Fire Crews Basic Training, divided into three for Core, Backup and Support Fire Crews(mandatory for all Fire Crews, then operational staff appointed as Backup Fire Crews andexisting contractors as Support Fire Crews)

2.

Prevention Plan (mandatory for Prevention Officer)

3.

FROS reporting system training

4.

Field Fire Boss

5.

Crew Leader Training

6.

Helitack/Rapid Response Team (mandatory for all Fire Crews appointed to the Rapid
Response Team (RRT)

7.

Pump Operator

8.

IMT (mandatory for operational management at the Regional and District levels)

9.

Reporter (mandatory for personnel appointed to report to external parties)

Performance

Achievements

Performance Deep-DiveA new Rapid Response Team (RRT)
was formed in 2023 to strengthen
preparedness and response to potential
disasters in the West Kalimantan regions.
RRT members have been specificallytrained to handle various types of disasters
such as fires, floods, landslides, forest fires,and earthquakes. The RRT is equippedwith adequate equipment and supplies
to carry out evacuations, rescues, andprovide humanitarian assistance. The
formation of the RRT is a crucial step in
improving preparedness and response tofires in West Kalimantan.

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Total concession area
impacted by fire

0.025%
0.022%The implementation of IFM, comprehensive
forest fire management, and community
education are tangible manifestations ofcommitment to environmental sustainability
and social responsibility.

0.008%

2021

2022

2023

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Performance Deep-DiveDESA MAKMUR PEDULI API

Disclosure

Company Profile

DMPA activities include:(DMPA)The DMPA program is an innovative initiative by APP aimed at raising awareness and preparedness amongcommunities regarding the risks of forest fires and deforestation, as well as improving the economic well-being andsecurity of local communities. The program is designed to reduce the risk of fires within APP’s operational areas. APP
has developed the DMPA program since 2015 with the objectives of:•••Preventing forest and land fires (karhutla): Building economic resilience and awareness of the dangers of forest
and land fires.
Improving welfare: Training and assistance to improve living standards.
Protecting the environment: Promoting the preservation of forests and peatlands.

FARMER GROUPDEVELOPMENT:
Developing ecofriendly farming
businesses.

TRAINING:
Training in agriculture,animal husbandry,
processing, andentrepreneurship.

INFRASTRUCTURE:
Construction ofvillage infrastructure.

EDUCATION:
Education on thedangers of forest
and land fires andenvironmental
conservation.

2022
Total villages

421

2023

441

Villages

Villages

Budget±USD 3.7 Million±USD 4.0 Million

Beneficiaries

80,00087,500Partners

PeoplePeople

223

223

9

9

189

209

VILLAGE-OWNED ENTERPRISESCOOPERATIVESFARMER GROUPSVILLAGE-OWNED ENTERPRISESCOOPERATIVESFARMER GROUPS

76

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Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

77

Several successful DMPA empowerment programs
have preserved forests and improved community
livelihoods:

PROCESSING PLASTIC WASTE
INTO PAVING BLOCKSBACKGROUNDOBJECTIVEKEY FIGURE

INCOME

Indonesia as one of the largest producer of plastic
waste in the world. Untreated plastic waste causes
environmental pollution.

Raise awareness that plastic
waste can be recycled
into economically valuable
products.

BSM is managed by eight people, has 254 customer
families, and collects plastic waste for IDR 300/kg –IDR 800/kg.

Community members
earn additional incomeof IDR 300,000 – IDR
600,000 per year fromcollecting plastic waste.

LOCATION
Suka Maju Village – Bank Sampah Mandiri (BSM/
Independent Waste Bank).

PRODUCTION
BSM processes plastic waste into ±2,000 paving
blocks per month, sold for IDR 10,000 each,generating IDR 22 million per month.

AWARDS AND TRAINING
BSM’s success has attracted many parties to learn,
often invited to participate in training sessions, andreceive awards from the government.

[GRI 203-2] [OJK F.25]±2,000

PAVING BLOCKS

Produced per month254

MARKET

FAMILIES

Local community,
government offices, andschools.

As customers

300-600

IDR

Earned as additional
income for community
members

BENEFITS

THOUSAND

Company support and
BSM’s success havebrought significant
economic andenvironmental benefits to
Suka Maju Village.

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Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

MELLIFERA HONEY BEE FARMING IN
BENTENG HILIR VILLAGE, SIAK REGENCYBACKGROUND

KEY FIGURESDMPA SUPPORTINCOME

Improving the capabilities of honeybee farmers.

Tani Hutan Taruna
Jaya, consisting of
30 members and two
managers.

oAdditional monthly
income for member
IDR 3 to 10 million.

ooo

LOCATION

Improving honey product quality through training
in modern and hygienic bee farming.
Training in processing high-quality honey.
Facilities and infrastructure for honey farming.
Product marketing.

Benteng Hilir Village, in the vicinity of APP’sconcession area.

BENEFITSooo

Improving family welfare.
Boosting the community’s economy.
Maintaining ecological balance and supporting
sustainable development.

2

MARKET

Managers

o
o
o
o

30

Members

3-10

IDR

MILLION

Additional monthly income
for members[GRI 203-2] [OJK F.25]

Siak Regency
Java, Bali Island
Nusa Tenggara
Papua

78

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Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

VILLAGE-OWNED ENTERPRISE (BUMDES) KARYABERSAMA IN DELIMA VILLAGE, TEBING TINGGI SUBDISTRICT, TANJUNG JABUNG BARAT REGENCY, JAMBIBACKGROUND:KEY FIGURE

DMPA SUPPORTPRODUCTION

Economic improvement for Delima Village residents.

Zuvita, Director of
BUMDes Delima since
2017.

Capacity building through various training
programs.

Compost for PT WKS worth±IDR 3.3 billion/year.

LOCATION

ECONOMIC IMPACT

Delima Village, Tebing Tinggi Sub-District, Tanjung
Jabung Barat Regency, Jambi.

ACHIEVEMENTS
Zuvita represented BUMDes directors from Jambi
Province in the Indonesia Benchmarking programin China (2019) and received regional and national
awards.

[GRI 203-2] [OJK F.25]

3.3

IDR

BILLION

Yearly compost worth
for PT WKS

Driving the village economy,
providing scholarships
and home renovations forunderprivileged residents.

79Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

SUPPORTING RATTAN WEAVING EMPOWERMENTBACKGROUNDSUPPORTERS

DMPA SUPPORTTRAINING GOAL

Improving techniques and skills of rattan weaving
artisans.

Dokter Syahril
Foundation (YDS)
and Vintocraft.

Weaving techniques, design, andproduct marketing training.

Entering the export
market.

LOCATION

KEY FIGURE

Rikong Village, East Kalimantan.

Rattan weaving
SMEs.

IMPACT
Income source from product sales, preservation of
local culture, existence of local products, high-quality
woven products from Rikong Village.

[GRI 203-2] [OJK F.25]

80

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Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

DODOL KOPI “LIBERINA” BY MARIANA, A TOFFEE-LIKE
COFFEE SNACKBACKGROUND

KEY FIGURE

DMPA SUPPORTINCOMEMariana’s dream to create the traditional dodol recipeof her mother.

Mariana, founded
Liberina Dodol Kopi
in 2016.

Providing production
equipment andassistance.

Liberina’s income increased from IDR 1 million permonth to IDR 4 million - IDR 5 million per month alongwith market expansion.

LOCATION
MARKETING

Pematang Lumut village, Jambi.

BUSINESS INCUBATION
In 2023, received capacity building support throughthe APP - Doktor Sjahrir Foundation Business
Incubation.

EXPLORATION
Received input from mentors to explore theuniqueness of coffee in her products.

8

Expanded Liberina’s marketing from the local market
to souvenir centers in Jambi, Aceh, and Jakarta
provinces.

YEARS

of work experience4

IDR

MILLION

Income increment
because market
enlargement

In 2024, the company plans to evolve the Desa Makmur Peduli Api (DMPA) program across the organization. This marks the expansion of the program’s scope, going beyond a focus on
preventing forest and land fires, and venturing into overall nature conservation, community empowerment and green economic development. DMPA will strengthen nature conservation efforts
through various initiatives, including sustainable forest management, renewable energy development, responsible waste management, eco-friendly agricultural practices, etc. This initiative will
potentially encapsulate APP’s integrated sustainable approach to environmental and social development.
[GRI 203-2] [OJK F.25]

81

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Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

82

PEATLAND MANAGEMENT
One of APP’s commitments inclimate management is through the
management of carbon-rich peatlands,
playing a vital role in maintaining global
climate balance.

Peatlands are soils formed from the accumulationof dead and decomposed plant that endured
under anaerobic (oxygen-free) conditions.

Develop and implement peatland
best management practices

APP’s peatland management is illustrated in thefollowing diagram:
Mapping andanalysis ofpeatland

Improvingwater
management

Peatlandrehabilitation
and alternative
species
research

The partnerships and programs related to peatland management during the reporting year included:

1. Winrock
APP established a partnership with Winrock
International for peatland management in the
TORA (Land for Agrarian Reform Object) area ofapproximately 4,000 hectares in Siak Regency,
Riau Province. This program has a pilot project in
an initial area of 500 hectares and focuses on ninevillages. This partnership aims to implement theGreen District Strategy, promoting communities
to engage in land development while prioritizing
the conservation and preservation of peatlands.
These efforts include incorporating wetland-friendly
crop cultivation to provide income opportunities
for local communities. Currently, the project hasreached the finalization stage of the master planfor implementation at the site level. However,
the master plan is still awaiting approval from therelevant government.

2. PUSTANDPI – Mycorrhizal
APP collaborates with the Center for Standardization of Disaster Resilience Instruments and Climate Change(PUSTANDPI) to conduct a study on the use of mycorrhizal inoculants on native plants in peatland areas. This study
is a crucial and relevant step in efforts to restore a climate-resilient ecosystem. The objectives of this study include
accelerating the growth of stagnant native plants. One of the experiments being conducted is the implementationof mycorrhizal inoculation and the application of aero-hydroponics in flooded plant areas with stagnant growth.
Currently, the PUSTANDPI team is monitoring the experiment to obtain results to be used in developing standards.
This study is expected to provide new insights and practical solutions for managing flooded peatland areas.
The implementation of mycorrhizal inoculant and aero hydroponic technology is an innovative effort to accelerate thegrowth of native plants, thus supporting successful restoration and climate resilience. The findings of this study also
serve as the basis for the development of widely adoptable standards, contributing to the Forest and Other Land Use(FOLU) net sink 2030 target. The steps taken by PUSTANDPI and APP in this study is an example of collaboration
between scientific research and field practice to achieve sustainable environmental goals.

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

In the SRV 2030, APP aims to
restore 100% of critical peatlands.

In 2024, APP will focus on utilizing technology to enhance credibility, improvement, and integrity in the implementation ofpeatland areas, including:Peatland Ecosystem Function Recovery is an activity
carried out to restore the properties and functions of
the peatland ecosystem to or close to its original statethrough natural succession, hydrological restoration,
vegetation rehabilitation, and/or other methods
following the development of science and technology.

1.

The total peak peat dome restoration carried out until
2023 has reached 99% of the SRV 2030 target.

Intelligent Water Management
In collaboration with a third-party vendor, APP plans
to implement monitoring technology to obtain realtime information on the conditions of the water level
and water table. This technology is combined withhydrological modelling and data analysis approaches
to predict and estimate changes in water conditions.
The results of this initiative can be used to conductroot cause analysis and quantitative decision-making
in terms of priority issues. Thus, appropriate corrective
and preventive actions can be taken to maintain thedesired water table and water level conditions.

2.

83

Land Cover Change Detection and Alert (LCCA)
APP will employ remote sensing technology byleveraging the ESA Sentinel-1 active sensor satellite
and Deep Learning algorithms to continuously monitor
land cover changes. The Sentinel-1 satellite carries
a C-band Synthetic Aperture Radar (SAR), to collectdata unaffected by weather, day or night. Its ability topenetrate clouds addresses the issue of data coveragefor monitoring land in equatorial regions, where
APP’s forestry operations are located. This initiative
will cover all forest concessions managed by APP
Forestry. The system will provide monthly land coverchange detection and alerts to district managementlevels. Thus, field verification can be conducted, andcorrective actions can be registered and followed up.
This initiative is an effort to improve forest protection
efforts by APP’s Forestry arm.

By implementing these two technologies, APP is committed to enhancing credibility and integrity in implementing the Forest
Conservation Policy. This will enable timely and accurate data-driven decision-making and ensure sustainable water and forest
management.

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Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

RESOLVING LANDDISPUTE
APP has developed various initiatives to identify and resolve land disputes, including:Land dispute mapping:•
Action plans to address each land dispute and implement those plans•
Accelerating land dispute resolution as part of Key Performance Indicators (KPIs)•
Establishment of Social and Security Divisions (from central to district level) to handle land dispute
resolution•
Developing SOPs (Standard Operating Procedures) for land dispute resolution•
Formation of Regional Social Working Groups
APP provides public complaint channels through telephone, email, and call centers. The community canalso visit the local district office to seek assistance. During the reporting year, land dispute resolution
reached 67%, and the remaining 33% of disputes have been acknowledged with an ongoing resolution
process with the community resides in harmony and allows operational activities to proceed.

APP recognizes that conflicts over land may arise
in forestry management operations. Conflicts caninvolve land rights, community livelihoods, illegal
trade, unauthorized land use, and various otherissues. We are committed to resolving disputes ina responsible and fair manner. For this reason, APP
developed a transparent and accountable dispute
resolution procedure, allowing all parties involved
to voice their opinions and reach mutually beneficial
solutions.

PHASE 1PHASE 2

PHASE 3

PHASE 4Completion of land
dispute mapping,analysis, and actionplans.

Engagement,
exploring options,
negotiation process,achievement of initialagreement.

MOU/agreement
signedMOU implementation

84

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Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

FIBER SOURCING
AND VALUE CHAIN
APP’s commitment to a sustainable fiber supply isestablished through the use of local raw materials
from Industrial Forest Plantation (HTI) areas, recycled
fiber, and the implementation of the Supplier
Evaluation and Risk Assessment (SERA) system.

SERA’s 12 indicators include: [GRI 308-1]

No conversion ofnatural forests after
2013

Operating in certain
regions/countries

Planting specific tree
species

Obtaining Third-party
verification

Having a traceability
systemComplying withapplicable regulations
on licensing, forest
management, andtimber trade

Protecting High
Conservation Value(HCV) forests

Protecting IUCN and
CITES Red List andnear-threatened
species

Respecting
Indigenous peoples
and human rights

Complying with ILO
conventions

Implementing
occupational healthand safety principles

No introduction ofgenetically modified
organisms (GMOs)

The SERA system ensures supplier compliance withsustainability principles, enhances transparency, anddrives continuous improvement.

85

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Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

86

FIBER PROCUREMENTPROCESSTo ensure the integrity of the fiber supply, APP implements the following fiber procurement process:1.

Implement SERA for pulpwood fiber suppliers.

2.

For new suppliers, notify the public or stakeholders to gather feedback about the supplier.

3.

Notify relevant departments upon completion of SERA. Only low-risk and/or zero-risk suppliers are allowed to supply fiber
to APP.

4.

Acceptance of the supplier into the approved supplier list as a guideline for receiving raw fiber at mills.

5.

Conducting SERA annually to evaluate suppliers working with APP.

Conduct Supplier
Evaluation andRisk Assessment ofpotential fibre suppliers

Public notification
within 14 days forpotential fibre suppliers

Commercial contract/
agreement

Verify pulpwood
delivery, maintaining
detailed records of thechain of custody

Conduct Annual
Evaluations of all
suppliers to ensureongoing complianceTo ensure SERA implementation, APP conducts regular field reviews and assessments. We also provide feedback, conduct
audits, or terminate contracts with non-compliant suppliers. Before appointing suppliers, APP allows 14 days for the public andstakeholders to provide input and/or share concerns on prospective suppliers undergoing SERA consideration and evaluation.

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

INFORMATION GATHERING

Supplier
CandidateTwelve (12)Indicator SERA

Review
Feedback

Other Information
SourcesAchievements

Performance Deep-Dive

Internal Review &Risk Assessment

Stakeholder Notification(Announced in APP Dashboard within 14 days)

Risk

Stakeholder
FeedbackHigh

Mitigated
Yes

Yes

Recommendation

PublicSummaryNo
Forest Conversion after February 1st, 2013
(Conversion for business purposes only)

APP is committed to ensuring that 100% of its
plantation wood is sourced from sustainably
managed forests. To achieve this, APP requires
its wood suppliers to obtain certifications and/or verification such as:•
Sustainable Forest Management (SFM)
Best Practice•Timber Legality Verification (VLK)

JSC Decision

Reject•Verification

RejectRejectSERA is tool and an extension to APP’s Fiber
Procurement and Processing Policy (FPPP)
serving as a comprehensive guideline to APP’scommitment to eliminating deforestation acrossits supply chain and upholding sustainable
forest management. This policy is available on
the APP website (link)

Grievance

Input

Info Complete

Yes

Company Profile

DECISION

Risk
Mitigation

No

Disclosure

RISK ASSESSMENT

No

Request for
Information

Performance

Voluntary Program for theEndorsement of Forest Certification(PEFC)

To promote transparency, APP has
implemented E-Product Tracing at our mills,
enabling easy tracing of product origins.
This program is continuously being refined
to meet the demands of APP customers.
In the reporting year, all (100%) new
suppliers were screened/assessed using
environmental criteria (SERA), ensuringthat there are no negative environmental
impacts in APP’s supply chain.
[GRI 308-1] [GRI 308-2]

AcceptThe SERA assessment system has
been developed with high and robust
sustainability standards. APP provides
education and guidance to its supplierpartners to consistently meet thesestandards. Supplier partners that meet the
SERA standards strengthen their reputation
for sustainability practices. We refer toour pulpwood supplier partners that havemet SERA standards as SERA compliant
supplier (SERACS).
The comprehensive list of APP’s pulpwood
suppliers can be found at (link)

Approved Supplier List

87

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Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Percentage of wood fiber sourced from
SERACS suppliers:

100%

87%

Third parties withmandatory forest
certification

Third parties meetingother (i.e., IFCC-PEFC)
wood fiber standards

FOREST IMPACT BOUNDARYAPP VALUE CHAIN

Power Generator Facilities

Imported

Converting Facilities

Pulpwood

APP’s
Pulpwood
Supplier

Local

Recycled[RR-PP-430a.1]

Pulp Mill

Pulp

Associated Chemical Production

Paper Mill

Finished Product88

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Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

89

SAFEGUARDING
BIODIVERSITY
APP is dedicated to safeguarding
forests and the ecosystems they harbor,
including initiatives to protect wildlife. This
commitment is embedded as an integral
part of the company’s Sustainability
Roadmap Vision 2030 (SRV 2030). As
a concrete step, APP has established arobust monitoring system, using baseline
as a reference. APP has also set longterm goals that encompass biodiversity
management and conservation efforts inareas that are the focus of the company’s
operations.
Through this commitment, APP is
exploring innovations and best practices
in sustainable forest management,
prioritizing the balance between
economic activities and environmental
conservation. The aim is to achieve
long-term ecological sustainability andenhance environmental quality for future
generations.

APP’s conservation
strategies encompass:

ESTABLISHINGHIGH
CONSERVATIONVALUE (HCV)AND KEYBIODIVERSITY
AREAS (KBAS)

MAPPINGENDANGERED
SPECIESRESTORING
DEGRADED
FORESTSMONITORINGANDEVALUATIONDEVELOPINGFORESTPROTECTIONSTRATEGIESPROVIDINGHUMAN-WILDLIFECONFLICTMITIGATIONTRAINING[OJK F.9] [OJK F.10]

ADAPTINGOPERATIONSTO WILDLIFE
MOVEMENTS

DEVELOPINGHUMAN-WILDLIFECONFLICTMITIGATION SOPSAPP is also actively engaged in restoring naturalforests across our supplier concession areas,
aiming to revitalize degraded ecosystems while
simultaneously preserving intact ones. Our restoration
efforts encompass three key steps:
Eradication: This is implemented in areas•
dominated by acacia plantations,•
Natural Succession: This approach is applied toareas with vegetation cover ranging from young
shrubs to mature shrubs, andEnrichment Planting: This is carried out in areas•
with open land cover or sparse shrubland.
Key Highlights from 2023:
Maintaining Healthy Natural Forests: We•
maintained a remarkable 85% of our naturalforests in good condition across all regions.
•
Expanding Restoration Efforts: Despite
challenges such as encroachment, illegal mining,
limited access, and dispersed locations, we
successfully restored approximately 13,000
hectares of degraded natural forests and nontimber forests (include SERACS).
•
Collaborating for Ecosystem Restoration: In
partnership with PUSTANTDPI under BRIN
(National Research and Innovation Agency), we
embarked on initiatives to restore ecosystems
and develop mycorrhizal inoculants to enhance
the productivity of alternative tree species on
peatlands.

Cover Story

Theme Explanation

Message from Top Management

The total area of APP’s own concession
and SERACS’ pulpwood supplier forests
with mandatory PHL certification isapproximately 2.6 million hectares, ofwhich are with voluntary IFCC-PEFC
certification is approximately 2.4 million
hectares. [RR-FM-160a.1]

APP and SERACS
have achieved 100%
PHL certification
and 93% IFCC-PEFC
certification for theirforests

Ecosystem

Approach

StrategyNone of APP’s operational sites arelocated within protected forest areas.
It is APP’s policy to not operate withinprotected forest areas. [GRI 304-1][OJK F.9] The operational activities
of APP inevitably have an impact on
ecosystems, including changes in habitat
structure during logging operations.
These changes can have a significant
impact on the populations of animals
and plants within these ecosystems. [GRI304-2] APP is committed to implementing
a range of nature conservation programs,
drawing upon the expertise of renowned
conservationists, including those from the
Sriwijaya University.
This commitment is evident in our directsurvey and exploration efforts within ourconcession areas, complemented bycomprehensive flora and fauna inventory
and recording methodologies. It is
important to note that APP operates within
designated production forest areas.
[GRI 304-3][E.1.2.1.7] [E.1.2.1.8] [E.1.2.1.9] [E.1.2.1.3] [RR-FM-160a.2] [RR-FM-160a.3] [RR-FM-160a.4]

Performance

Achievements

Performance Deep-Dive

OKI Pulp and Paper Mill, in collaboration
with the South Sumatra BKSDA (Natural
Resource Conservation Agency),
conducted a biodiversity assessment
to evaluate the impact of the mill’s
operations and surrounding pulpwood
supplier plantations. The assessment
involved a survey of flora and fauna
within the forest environment of theTampin River - Tambatan River - Cakur
River area in Banyuasin Regency, South
Sumatra.
The survey identified 48 species offlora, including 18 tree species, 5 liana/
grass species, and 25 seedling species.
Based on the Ministry of Environment
and Forestry Regulation No. 106 of 2018
concerning the Conservation of Plant andAnimal Species, none of the identified
flora species fall under the protectedcategory. However, one species, Rengas(Gluta renghas), was classified as
Vulnerable (VU) under the IUCN Red List
2020, indicating a threatened status.
[GRI 304-4]

Disclosure

Company Profile

90

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Theme Explanation

Message from Top Management

Based on the fauna survey and records, several IUCN-listed
species were identified [GRI 304-4]

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

No

Indonesian Name

Scientific Name

IUCN List

1

Pecuk-ular asia

Anhinga melanogaster

Near threatened

2

Bangau tongtong

Leptoptilos javanicus

Vulnerable

3

Elang-ikan kepala-kelabu

Ichthyophaga ichthyaetus

Near threatened

4

Punai bakau

Treron fulvicollis

Near threatened

5

Pergam hijau

Ducula aenea

Near threatened

6

Bentet ekor panjang

Belocercus longicaudus

Near threatened

7

Kadalan beruang

Phaenicophaeus diardi

Near threatened8

Pelanduk dada-putih

Pellorneum rostratum

Near threatened

9

Kerak kerbau

Acridotheres javanicus

Vulnerable

10

Trenggiling

Manis javanica

Critically endangered

11

Lutung kelabu

Trachypithecus cristatus

Vulnerable

12

Monyet ekor panjang

Macaca fascicularis

Endangered13

Beruang madu

Helarctos malayanus

Vulnerable

14

Gajah Sumatra

Elephas maximus sumatranus

Endangered

15

Rusa sambar

Cervus unicolor

Vulnerable

16

Jelarang

Ratufa affinis hypoleucos

Near threatened91

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Theme Explanation

Message from Top Management

CONSERVATION
OF LOCALLYRARE TREESPECIESThe presence of rare local tree species is not only
an integral part of a region’s natural heritage but also
contributes to the overall ecosystem. In this context, APP
has recognized the importance of conserving rare local
tree species and has taken concrete steps to do so. APP
has placed a focus on conserving four rare local tree
species that hold high ecological and economic value:
the balangeran, ulin, trembesi, and ramin. These efforts
encompass a range of strategies, from monitoring andrestoring natural habitats to promoting replanting andconservation of these species.
It is noteworthy that APP has undertaken these
conservation initiatives through collaboration with the
Ministry of Environment and Forestry (MoEF) and the
National Research and Innovation Agency (as locally known
as BRIN). This cooperation strengthens the capacity andresources involved in conservation efforts, while ensuringthat these initiatives are integrated with broader national
conservation policies and programs.

[OJK F.10]

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

92

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Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

MANGROVECONSERVATION

Mangrove conservation plays a pivotal role in maintaining
coastal ecosystem balance and promoting environmental
sustainability. Mangroves, the dense forests that thrive
between land and sea, offer a multitude of benefits,
including serving as a habitat for diverse marine life,
protecting against coastal erosion, and acting as potent
carbon sinks. Recognizing the critical value of mangrove
conservation is, therefore, imperative.
APP, fully understands the urgency of mangrove
conservation, has pledged its unwavering commitment
to actively engage in these endeavours. As part of its
sustainability initiatives, APP has launched mangrove
conservation programs across various locations inIndonesia. Collaborating with the government and theMangrove Ecosystem Restoration Alliance (MERA), a multistakeholder platform spearheaded by Yayasan Konservasi
Alam Nusantara (YKAN), APP is making significant strides
towards preserving these vital ecosystems.

The Tangerang Mill has forged a collaborative
partnership with the Tangerang District Government
to manage the Ketapang mangrove area. Under thisinitiative, the Tangerang Mill has planted a total of
150,000 mangrove trees of the Avicennia marina
species between 2018 and 2023. This program aims
to safeguard the northern coastal region from erosion.
This multi-stakeholder collaboration exemplifies APP’s
unwavering commitment to actively participatingin environmental conservation efforts by engaging
diverse parties in the management and restoration ofIndonesia’s mangrove ecosystems.

150,000

Mangrove trees planted
throughout 2018-2023[OJK F.10]

Performance Deep-DiveDisclosure

Company Profile

93

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Theme Explanation

Message from Top Management

WILDLIFEBREEDING

APP is dedicated to supporting the Indonesian
government’s efforts in preserving biodiversity.
These efforts are focused on three species that
rely on forests as their habitat: the Sumatrantiger, the Sumatran elephant, and the Bornean
orangutan.
APP also engages its suppliers in biodiversity
conservation efforts within their forest areas.
Suppliers are mandated to conduct regularmonitoring to evaluate the populations ofthese animals, in addition to developing andimplementing sustainable forest management
plans. They also collaborate with localorganizations and governments to protect animal
habitats.

[OJK F.10]

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

94

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Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

PREVENTING NEGATIVE INTERACTION
BETWEEN HUMAN-WILDLIFE
Human-wildlife negative interaction
is a complex issue that demands
integrated solutions.

During the reporting year, data on hunting tools found in our concession
areas indicated 0.32 traps per kilometre, lower than our target of two traps
per kilometre. These traps are used to deter wild animals from entering
human territory and to divert them to safer paths.

0.32 TRAPSAPP recognizes this and is committed to preventing suchconflicts through a range of measures, including:
1. Establishing Standard Operating Procedures (SOPs)
for all forest activities.
2. Conducting pre-harvest surveys to identify wildlife
presence and habitat and establishing wildlife
evacuation routes. This minimizes the impact of
harvesting on wildlife.
3. Implementing camera trapping monitoring and utilizing
KMS (killing, maiming, capturing) mitigation tools toprevent wildlife from approaching human settlements
and causing harm.
4. Investigating the root causes of human-wildlife conflict
incidents.
5. Coordinating with the Natural Resources Conservation
Agency (BKSDA) to ensure effective wildlife
management and conservation.
6. Providing regular training and education toemployees, contractors, and local communities on
wildlife conflict prevention.

APP has collaborated with the South Sumatra Natural Resources
Conservation Agency (BKSD) to establish Independent Village Posts inan effort to mitigate negative interactions between humans and wild
elephants. This program involves two trained elephants to help prevent wild
elephants from causing damage or engaging in negative interactions with
communities.

2

The following is a list of the minimum populations of critically endangered
wild species listed in the IUCN Red List based on 2023 data, which are thefocus of APP’s wood suppliers:

per kilometre

TRAINED ELEPHANTS

to help preventwild elephants from
causing damage orengaging in negativeinteractions with
communities

132

Elephants

42

Tigers17

Orangutans

95

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Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDuring the reporting year, negativeinteraction leading to human-wildlife
fatalities persisted. To mitigate andaddress these negative interactions, we
implemented various measures, including:
1.

2.

3.

4.

Collaborating with the Natural
Resource Conservation Agency(BKSDA) to monitor elephantmovement using GPS data. An early
warning system was establishedto detect elephant movements inspecific areas and guide them to safer
locations, such as protected areas.
Enriching the elephants’ diet andencouraging local communities tocultivate crops around their fields.
Conducting joint patrols with BKSDA,
environmentalists, and village officials,
covering a distance of 16.5 km inseveral elephant and tiger habitats.
Ensuring that strategic activities
related to wildlife and flora population
management, habitat conservation,and community development continue
to involve experts from independent
institutions/individuals to guarantee
the authenticity, accuracy, and qualityof data collection and reporting.

Disclosure

Company Profile

96

Challenges Faced:1.

2.

Traditional practices employed bycommunities in partnership areas andland tenure conflict zones to protect
agricultural land are often detrimental
to wildlife. Additionally, the crops
grown in these areas are typicallyfavoured by herbivorous wildlife.
Furthermore, livestock such as cows
or goats are often raised in tiger
corridors. To address these issues,
APP conducts educational programs
to raise awareness, including
on topics such as criminal cases(investigation, prosecution, and law
enforcement).
Encroachments continue to occur
within forest management areas(PBPH). In response, APP has filed
civil lawsuits seeking compensation
for damages and environmental
restoration costs arising fromenvironmental destruction and/or
other illegal activities, as determinedby court rulings.

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

ENVIRONMENTAL
MANAGEMENTENVIRONMENTAL COST (USD)

2021

2022

2023

Planting Costs (Including Land Preparation and Seedlings)

30,113,078

34,285,585

36,758,212

Plantation Maintenance Costs

42,284,353

43,427,663

45,308,177

Harvesting Costs

138,004,941

186,624,485

194,410,986

47,30940,306

39,129210,449,680

264,378,039

276,516,505

Waste Management Costs
Total[OJK F.4]

Performance Deep-DiveDisclosure

Company Profile97

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Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

ENVIRONMENTAL INITIATIVES AND
PARTNERSHIPSAPP collaborates with a diverse range of partners and stakeholders to advance conservation and environmental protection
efforts. Key collaborations undertaken in 2023 include:
Initiative
The Forest Restoration Project:”SDGs Together!”Partner
BelantaraFoundation

Activities
Forest Restoration Project: “SDGs Together!” is an initiative that aims to donate a portionof the proceeds from the sale of APP Indonesia’s products to the Belantara Foundation.
The donations are used to plant seedlings of endemic tree species that are endangeredin Indonesian forests damaged by degradation and wildfires. This program has beenrunning since August 2020.

Focus
Forest restoration

By the end of 2023, we have successfully planted 40,366 trees on 94 hectares of land.
This project is being implemented in the Giam Siak Kecil Bukit Batu landscape, Riau
Province, which includes peat swamp forests and lowlands.
Living in Harmony

The Forest Wildlife Society
Rumah Sriksetra
Belantara Foundation

Belantara Foundation together with Masyarakat Satwa Liar Hutan (MSWH), Rumah
Sriksetra, and APP Indonesia, aims to empower communities in five villages in Ogan
Komering Ilir (OKI) Regency, South Sumatra, to manage conflicts with wild elephants in awise and sustainable manner. The program equips communities with the knowledge andtools to protect themselves and their property from elephant incursions, ensuring thesafety of both humans and wildlife.
Through this program, local communities receive training and capacity-building to better
handle conflicts. The Living in Harmony program also provides education and awarenessabout elephant conservation to students in seven schools.
Additionally, the program provides:• A nine-meter-high watchtower• Conflict mitigation equipment• Construction of artificial mineral sources (salt licks) to meet the mineral needs ofelephants
The Living in Harmony program is part of Belantara’s contribution to a broader landscapescale elephant conservation initiative. This program is initiated by various stakeholders,
including the government, private sector, NGOs, and local communities, to ensure thelong-term survival of the Sumatran elephant population. The program is funded by the
Keidanren Nature Conservation Fund.

Human wildlife
living in harmony

98

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Theme Explanation

Initiative

Message from Top Management

Partner

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-Dive

Activities

Disclosure

Company Profile

Focus

Creation of Artificial Mineral Sources (salt lick): We established artificial mineral sourcesat three locations, specifically in key corridors and areas frequently used by elephants.
The goal is to keep elephants within these corridors and reduce the likelihood of thementering residential areas. A salt lick is a mineral deposit used by animals, especially
herbivores, to obtain additional nutrients.
Installation of Camera Traps: We installed two camera traps in front of the artificial mineralsources to record elephant activity in the area. The cameras were activated for 30 days.
Observations showed that the mineral sources were used by various species, primarily
herbivores. We suspect that we have not yet captured photos of elephants because theymight still be on the other side of the landscape. Increasing the number of active days forthe cameras is expected to yield elephant photos.
Construction of a Watchtower: This tower was built to observe elephant movements
around the village. It is part of the human elephant conflict mitigation efforts, particularly
to support communities living in elephant habitats. The tower can also be used to monitor
land fires.
Digital Campaign and Crowdfunding: At the initial stage of the project, we conducted adigital campaign and fundraising through Kitabisa.com. Public donations amounted
to IDR 13 million. These funds were used to equip residents in Simpang Heran withhuman-elephant conflict mitigation tools.
Sumatra Peatland Restoration

Belantara Foundation
Wono Lestari
FarmerGroups

The Belantara Foundation is collaborating with the Wono Lestari Forest Farmer Groupto develop a peatland protection and restoration program in Jati Mulyo Village. Thisinitiative, called the Sumatran Peatland Restoration Program, began in March 2023
and has already planted at least 16,600 trees across 30 hectares.
The program aims to protect and restore 93 hectares of degraded peatland in the local
Community Forest over the next two years. Through this program, a minimum of fivemultipurpose tree species will be planted, providing both ecological and economic
benefits to the community.
The Sumatran Peatland Restoration Program is supported by One Tree Planted and APP.

Peatland restoration

99

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Theme Explanation

Initiative
Muda Mudi Konservasi

Message from Top Management

Partner
Belantara Foundation
PT Sharp Electronic
Indonesia
PT Smart Forum
Harimau Kita (FHK)The Indonesian ElephantConservation Forum (FKGI)The IndonesianOrangutan Conservation
Forum (FORINA)
Eat and Run
Biologeek

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-Dive

Activities
The Belantara Foundation organizes a youth education program called “Muda Mudi
Konservasi.” This program aims to educate and raise awareness among the younger
generation about the uniqueness, beauty, ecological role, and conservation methods ofIndonesia’s biodiversity and wildlife.

Disclosure

Company Profile

Focus
Educating and raising awareness ofyoung generation to care Indonesia’s
biodiversity and wildlife.

“Muda Mudi Konservasi” features engaging stories, photos, and infographics aboutIndonesia’s biodiversity and wildlife. Additionally, the program serves to publicize
the achievements of various initiatives undertaken by the Belantara Foundation incollaboration with different partners.
The main event of “Muda Mudi Konservasi” took place on September 9-10, 2023. The
dates were intentionally chosen to align with the celebrations of International Tiger Day(July 29), National Conservation Day (August 10), World Elephant Day (August 12), andInternational Orangutan Day (August 19).
The Belantara Foundation collaborates with the Forum Harimau Kita (FHK), the Indonesian
Elephant Conservation Forum (FKGI), the Indonesian Orangutan Conservation Forum(FORINA), Eat and Run, Biologeek, and other wildlife conservation organizations to hostthe series of “Muda Mudi Konservasi” programs. The goal is to increase public awareness,
especially among the youth, to actively participate in protecting and preserving wildlife
and their habitats in Indonesia.
The “Muda Mudi Konservasi” program is sponsored by APP, PT. SHARP Electronics
Indonesia, and Pristine 8.6+ (PT. Smart).

Orangutan Conservation Efforts
in Industrial Forest Plantations
in East Kalimantan and West
Kalimantan

ECOSITROP

Tjiwi Kimia supports the operational funding for the collaboration between wood suppliersand ECOSITROP in efforts to conserve orangutans in the industrial forest areas of Eastand West Kalimantan. The suppliers conducted an integrated orangutan conservation
training program, including orangutan evacuation simulations and rapid orangutan
surveys (detection and monitoring) using foot patrols, aerial drones, and camera traps.
Tjiwi Kimia also funds operational activities for the training and protection of orangutan
habitats in collaboration with the East Kalimantan BKSDA and West Kalimantan BKSDA.

Orangutan Conservation

100

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Initiative

Message from Top Management

Partner

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-Dive

Activities

Disclosure

Company Profile

Focus

Mangrove Restoration

Tangerang
Regency

The Indah Kiat Tangerang mill has collaborated with the Tangerang Regency Government
in managing the Ketapang mangrove area. As part of this initiative, the Indah Kiat
Tangerang mill has planted a total of 150,000 mangrove trees between 2018 and 2023.
The primary species planted is Avicennia marina. This program aims to protect thenorthern coastline from erosion.

Coastal protection of the north coastfrom erosion

Belibis Forest Park

Watershed Management
Center (Balai Pengelolaan
Daerah Aliran Sungai /BPDAS) Batang
Hari – Jambi

The Management of Belibis Forest Park, a biodiversity conservation effort carried out
by Lontar Papyrus in collaboration with the local government, namely the Batang Hari Jambi Watershed Management Agency (BPDAS), involved the nurturing of 500 superior
tree seedlings in 2023. These seedlings included Trembesi, Mahoni, Meranti, Bulian, andGaharu trees. The selection of Trembesi and Mahoni trees was based on their ecological
functions, while Meranti, Bulian, and Gaharu trees were chosen due to their status as rare
species listed as threatened by the International Union for Conservation of Nature (IUCN)
and included among the 10 species for rare tree protection. This initiative aligns with
the SRV 2030 agenda for biodiversity conservation. Additionally, signages for Belibis
Forest Park was installed within the habitat of these flat-billed birds.

Safeguarding Belibis Forest Park

FOREST STEWARDSHIP COUNCIL(FSC) ROADMAP PROCESS
Established in 1993, the Forest
Stewardship Council (FSC) is aninternational non-profit organization
dedicated to promoting responsible
and sustainable forest management.

One of FSC's key functions is to establish standards andprovide certification for responsible forestry practices. In
2023, APP continued its process for ending disassociation
through remedy framework. For more information and theprogress on the process, please visit: link101

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Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

DOWNSTREAMENERGY
Energyconsumption(GJ) [OJK B.2.a]

Renewable
Energy (%)
Gigajoule283,507,759 286,025,948 291,722,207

2021

2022

Energy intensity
reduction fromthe 2018
baseline

2023

56%

2021

EMISSION

57%

2022

58%

2023

6.6%

6%

3.1%

2021

2022

2023

Unit

2021

2022

2023

tonCO2eq

11,831,741

12,149,956

12,039,223

0.99

1.02

1.02

%

13%

11%

11%

Unit

2021

2022

2023

Waste intensity reduction from the baseline 2018 [OJK B.2.c]

%

5.23%

5.04%

9.25%

Recycled waste (%)

%

35%

37%

45%

Water consumption intensity reduction from the 2018 baseline

%

10%

17%

17%

Emission (tonCO2eq), Scope 1+2
Emission intensity tCO2eq/ ton
Emissions intensity reduction from the 2018 baseline [OJK B.2.b]

WASTE AND WATER

102

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Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

103

RESPONSIBLE
SUPPLY CHAIN
SUPPLY CHAIN AND SUPPLIERPOLICYSUPPLIER EVALUATION FORENVIRONMENTAL AND SOCIALRESPONSIBILITYLOCAL SUPPLIER

As a company committed to sustainable sourcing practices,
APP places integrity and business ethics at the forefront of
its relationships with its supply chain and suppliers. Driven
by a vision to create a positive impact on the environmentand society, APP has adopted stringent policies to ensurethat all entities within its supply chain adhere to APP Codeof Conduct and applicable integrity standards.

APP conducts regular evaluations of its suppliers, with afocus on environmental criteria. This assessment process
is designed to ensure that suppliers not only comply
with applicable legal regulations but also implement bestpractices in environmental management. Aspects suchas sustainable forest management, natural resource
conservation, and the use of safe chemicals are key points inthis assessment. In particular, the procurement of chemicals
is governed by the Chemical Procurement Policy, which
establishes specific quality and safety standards.

Prioritizing local suppliers is a strategy that has a positive
impact on supporting local economic growth, creating
jobs, and strengthening relationships between companies
and local communities. APP is taking concrete steps toprioritize raw materials from local suppliers, recognizing theimportance of mutually beneficial collaboration between
companies and local communities. In addition, local
procurement reduces transportation distances, which has
the effect of reducing carbon emissions. In this way, APP
is also contributing to efforts to reduce the environmental
impact. Local suppliers are suppliers who are domiciledin Indonesia. Around 94% of APP’s suppliers are local
suppliers from Indonesia. [GRI 204-1]
1. Percentage of pulpwood fiber weight sourced fromthird-party SERACS certified sustainable forest
management (percentage of weight): 55%[RR-PP-430a.1]
2. Total recycled wood fiber purchased: 3,083,887 tons
[RR-PP-430a.2]

APP’s supply chain encompasses a diverse range ofpartners, including suppliers of raw materials such as
pulpwood from HTI plantations, recycled fibers, andlong fibers; pulp and paper mills; local and international
distributors or traders; and customers. Additionally, APP
sources goods and services from a variety of providers,
including suppliers of chemicals, fertilizers, environmental
and social consultants, outsourced labour, etc.
A key initiative in ensuring supplier compliance is thecommunication of the Supplier Code of Conduct (SCoC)
to all wood fiber suppliers partnering with APP. This SCoC
serves as a clear and comprehensive guideline outlining
the expected behavioural standards for all suppliers. The
document covers critical aspects such as human rights,
environmental protection, occupational health and safety,
and fair and transparent business practices.

In addition, APP also conducts audits of suppliers focusing
on social criteria, ensuring their compliance with labourlaws and other social aspects. This initiative is in linewith APP’s commitment to operating its business withsocial responsibility and creating a positive impact on thecommunities involved in its supply chain. Every new suppliers
are screened for social issues, thus ensuring that there are
no negative social impacts in APP’s supply chain. [GRI 417-1][GRI 417-2]
Through these initiatives, APP goes beyond ensuring its
suppliers adhere to high social and environmental ethicalstandards; it actively drives positive change across its supply
chain.

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Performance Deep-DiveDisclosure

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104

RESPONSIBLE PRODUCTS
APP’s products include:
APP ensures that all its products are safe for customers. Our food-related products or food storage products are certified“food grade”. Other products comply with the regulations and safety standards of the countries where APP operates, such asbans on certain chemicals and reductions in plastic content in product packaging, among others. [OJK F.17]
Pulp

Packaging

Paper

Stationery

TissueSurgicalmasks

ENVIRONMENTALLY FRIENDLY
PRODUCT
Paper is inherently an environmentally friendly product.
However, there are still components in the papermaking
process that can be reduced or eliminated, resulting ina more environmentally friendly final product. One suchmeasure is the ban on “forever chemicals” (Per- andPoly-Fluoro Alkyl Substances) that were previously used
as greaseproof paper coatings. APP is also working toincrease the use of “biodegradable” packaging paper,as many packaging papers are still laminated with PE
plastic. The challenge here is the relatively higher cost of
biodegradable materials compared to PE laminate plastics.
Another initiative is to reduce the use of plastic in paperroll or pallet wraps, but this will take time as the strength
requirements cannot yet be met by existing paper grades.
[OJK E.5]

APP’S CUTTING-EDGE ECO-FRIENDLY PACKAGING SOLUTIONS:In addition to the FOOPAK Natura Cup with a PE lining developed by APP for food-grade paperboard packaging, here are
APP’s latest innovations to enrich its product portfolio:
1. FOOPAK Bio Natura: A groundbreaking solution for eco-friendly food and beverage packaging. This product utilizes
patented water-dispersion coating technology to replace plastic liners in foodservice packaging.
•
Optical Brightener Agent (OBA)-free for a safer, more environmentally friendly choice.
•
Remarkably temperature resistant, withstanding extreme conditions from freezing to scorching heat.
•
Engineered with exceptional edge wicking capability, outperforming standard cup stocks.
•
Compostable at home or in industrial facilities due to their non-plastic composition.
•
Readily recyclable and remanufactured without the need for additional processing.
2. FOOPAK Bio Container: Eco-friendly solution for takeaway boxes. This product utilizes patented water-based dispersion
coating technology to deliver water and moisture resistance without the need for plastic liners or extrusion.
Certified pulpwood sources.
••
Plastic-free, recyclable, and can be remade without additional treatment.
•
Heat-sealable, compatible with existing lunch box machines with minor adjustments.
3. FOOPAK Magna Board: High-quality, OBA-free premium carton, ideal for serving plates, trays, and takeaway packaging.
Suitable for food packaging that requires rigidity and high capacity.
4. FOOPAK Anchor Plus: A premium carton solution specifically designed for seafood packaging. This product offers
excellent barrier performance and strong absorbency to prevent liquid from seeping through cut edges, providing reliable
protection.
•
Prints well.
•
Meets food safety standards in accordance with the US FDA.

[OJK F.26]

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Strategy

Performance

Achievements

Performance Deep-DivePRODUCT CERTIFICATION

Product certification is an essential part of
APP’s business process, as it represents
official recognition from independent
organizations that the products meetcertain standards. APP’s products havereceived various certifications fromtrusted institutions, both in Indonesia andinternationally. These certifications ensurethat APP products meet high quality andsafety standards and are produced withenvironmental sustainability in mind.

All APP products undergo a meticulous
inspection process to guarantee
customer safety. Committed to premium
quality, these products are designed tomeet customer needs while ensuringsatisfaction. It is assured that no productspose harmful effects to consumers. On thecontrary, APP prioritizes environmentallyfriendly and safe products for customers.

Due to this diligence, no products wererecalled during the reporting year.
[OJK F.27] [OJK F.28] [OJK F.29]

Disclosure

Company Profile

105

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106

Below is information regarding the certifications of APP’s Mills:

Description
Quality Management System

Indah Kiat Perawang

Indah Kiat TangerangPindo Deli Karawang

Pindo Deli Perawang

ISO 9001

ISO 9001

ISO 9001

Halal

Halal

Halal

SNI 6991:2015

Environmental Choice – New Zealand
EcolabelEnvironmental Choice –New Zealand Ecolabel

SNI 8126:2014

Ecolabel IndonesianStandard

ISO 9001

Product
Singapore Green Labelling Scheme

Indah Kiat Serang
ISO 9001

Halal

Halal

Sirim Ecolabel 071:2018

Singapore Green Labelling Scheme

Ecolabel – Indonesian Standard

Green Mark – Taiwan Ecolabel Standard

Singapore Green Labelling
Scheme

SNI 6691: 2015
SNI 812:2014
Environmental Management
SystemOccupational
Health & Safety

ISO 14001

ISO 14001

ISO 14001

ISO 14001

ISO 14001

ISO 50001

ISO 50001

ISO 50001

ISO 50001

ISO 50001

SMK3

SMK3

SMK3

SMK3

SMK3

ISO 45001

ISO 45001

ISO 45001

ISO 45001

ISO 45001

PEFC

PEFC

PEFC

PEFC

PEFC

SVLK

SVLK

SVLK

SVLK

SVLK

RoHS

RoHS

RoHS

RoHS

RoHS

SVHC
screening

SVHC screening

Chain of Custody

SVHC
Screening
Product Specification
SVHC Screening

Food grade paper/board
food packaging directcontact

SVHC screening
ISO 22000

ISO 22000
OthersFood contract safety grade forpaper &
paperboard
Dermatological test on humans

ISO 17025

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Theme Explanation

Message from Top Management

Description
Quality Management System

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Lontar Papyrus

Tjiwi Kimia

Ekamas Fortuna

OKI

Univenus Perawang

ISO 9001

ISO 9001

ISO 9001

ISO 9001

ISO 9001

Halal

Halal

Halal

ISO 14001

Halal
Ecolabel – IndonesianStandard
Product

Halal
Green Seal
Singapore
Green Labelling Scheme

Environmental Management
SystemOccupational
Health & Safety
Chain of Custody

Product Specification

ISO 14001

ISO 14001

ISO 14001

ISO 50001

ISO 50001

ISO 50001

SMK3

SMK3

SMK3

ISO 45001

ISO 45001

ISO 45001

PEFC

PEFC

PEFC

PEFC

PEFC

SVLK

SVLK

SVLK

SVLK

SVLK

RoHS

RoHS

RoHS

RoHS

RoHS

SVHC screening

Food-grade paper/board

SVHC screening

SVHC screening

SVHC screening

SMK3

Note:
1. According to specific environmental evaluation
2. Scope of evaluation includes: Indah Kiat Perawang

Description
Quality Management System

Chain of Custody

Purinusa Semarang

Purinusa Demak

Purinusa Bandung

Purinusa Subang

ISO 9001

ISO 9001

ISO 9001

ISO 9001

PEFC

PEFC

PEFC

PEFC

107

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Strategy

Performance

Achievements

PRODUCT AND
MARKETING INFORMATION
Recognizing that transparency and trust are essential
pillars of strong customer relationships, APP is committed
to providing clear and accurate information on all our
products, including: [GRI 417-1]•
Material Composition: We provide a detailed list of
raw materials used in the product’s manufacturing,
including fiber types, chemicals, and other additives.
•
Product Characteristics: Information regarding productspecifications and applications is readily available toassist customers in selecting the most suitable productfor their needs.
•
Product Certifications: We display certification logos
associated with the product, such as PEFC™ and ISO,
as a testament to our commitment to quality andenvironmental sustainability.
•
Contact Information: We provide easily accessible
contact details for customers seeking further
information or wishing to raise concerns regarding the
product.

APP always prioritizes responsible and ethical marketing
practices. We ensure that all information conveyed inadvertisements and marketing materials is accurate andnon-misleading. This is crucial for maintaining customer
trust and building sustainable relationships. [GRI 417-3]
To ensure customer satisfaction, APP conducts regularcustomer satisfaction surveys annually, conducted by
the quality team in collaboration with the sales team. The
results of these surveys indicate high levels of customer
satisfaction. [OJK F.30]

There were zero product information violations during thereporting year. [GRI 417-2]

Customer Survey Report
Type

2021

2022

2023

4 out of 5

4 out of 5

4 out of 5

Questionnaires and Feedback Rating

Performance Deep-DiveDisclosure

Company Profile

108

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Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

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109

INNOVATIONS TO SUPPORT SUSTAINABILITY
APP continues to innovate to support sustainability acrossvarious aspects of its operations. Here are some examples
of innovations undertaken by APP:•
Cutting-edge Technology: APP employs state-of-theart technology to enhance precision, efficiency, andproductivity while reducing environmental impact. For
instance, APP utilizes computerized control systems tooptimize energy and raw material usage. Interlocking
systems help prevent machine damage and optimize
energy usage for operators handling the machines.
•
New and Advanced Machinery: APP invests in new
and advanced machinery that is more energy-efficientand environmentally friendly. For example, APP utilizes
advanced pulp paper machines to improve production
efficiency and reduce greenhouse gas emissions.
•Sustainable Products: APP’s Foopak Bio Natura, aflagship product made from environmentally friendly
materials that are free from plastics and other harmful
compounds. This ensures the safety of the productfor customers. Foopak Bio Natura is biodegradable
and compostable, making it a suitable choice for
an increasingly environmentally conscious world. In
the reporting year, Foopak Bio Natura’s export sales
reached USD 48 million, and local sales reached USD
25 million. [OJK F.26] [E.3.1.1]

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DIGITAL TRANSFORMATION THROUGH Garuda+

The three main objectives of Garuda+ are:
1. Vertical integration and enhanced
collaboration through the simplificationand harmonization of businessprocesses;
2. Leveraging the latest technology todevelop and implement the digitaltransformation roadmap of APP
Indonesia; and3. Implementation of business and digitaltransformation across all operational
activities of the company.

PEOPLE &CULTURETECHNOLOGYPROCESSES

ORGANIZATIONGOVERNANCE

Garuda+ Key Guiding Principles

For more efficient company management,
APP launched the Garuda+ digitaltransformation aimed at integrating all
business processes, human resources, anddigital technology within the company. This
digital platform is built on the principles
of 5S: simple, standard, sustainable,
seamless, smart.

G

GOVERNANCEA

AUTOMATIONRREALIZATION (VALUE)U

UNIFORMED (SOLUTIONS)DDATA DRIVENA

ALARM BELL (DASHBOARD)

Garuda+ is an ambitious and innovative digital transformation program that has had a significant positive impact on APP
Indonesia:• Efficiency: Garuda+ has helped to streamline and automate business processes, leading to improved efficiency andproductivity.
• Collaboration: The Garuda+ digital platform enables better collaboration between employees and departments acrossthe entire company.
• Data analytics: Garuda+ provides access to better data and analytics, helping the company make more informed
decisions.
• Sustainability: Garuda+ supports APP’s efforts to achieve sustainability by reducing energy consumption and greenhousegas emissions.

110Cover Story

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111

CIRCULAR BIO-ECONOMY
Amidst environmental issues and natural resource crises,
APP emerges with an innovative concept: Circular BioEconomy (CBE). This business model is not just a solution
but a revolution that changes our perspective on industry
and sustainability. Circular bio-economy focuses on thesustainable and efficient utilization of natural resources.
Instead of taking and disposing, this model encourages thecirculation of raw materials and products within a closed
loop. In APP, circular bio-economy consists of various
processes as follows:

•
•
•
•

Responsible management of industrial plantation forests, prioritizing High Conservation Value/High Carbon Stock areas,
and mitigating the potential of forest fires.
Efficient and environmentally friendly production, utilizing technology to optimize raw material usage and minimize energy
and water consumption.
Utilization of renewable energy sources (biomass) and energy from recycled materials such as sludge and bark. [E.2.1.7]
Utilization of waste that can still bring benefit for the community, such as composting, and overall reduction of productionwaste.

Water Supply

Imported Raw Material Pulp, Chemical, Fuels

Conservation HCV/HCS

Agroforestry DMPA

Sustainable
Plantation

Pulp & Paper
Producton

Sludge as Recycled Raw Material

Soil Conditioner, Compost

Community Empowerment

Customer

Bark Gasification, Incineration [Generate Energy]

Waste

Sent to Third Party

Landfilled

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112

MATERIAL
APP has designed and implemented innovative processes
to utilize raw materials in the most efficient way and reduce
waste. The primary focus of this initiative is on pulpwood fiber,
which is the main material in paper production. By developing
specialized systems, APP minimizes fiber loss in its production
processes.

MATERIAL BASED ON VOLUME
Pulp Production Material

Pulpwood

ChemicalsMillion tons

It is important to note that APP emphasizes the use of recycledmaterials as a strategic step in achieving sustainability goals.
In reaching the Sustainable Roadmap Vision (SRV) 2030
target, where at least 30% of raw materials should come fromrecycling, APP has achieved remarkable results with 48%
utilization of recycled fiber, or 3,083,887 tons out of a totalof 6,477,970 tons in 2023. [GRI 301-2] [E.2.1.7] This successsurpasses the expectations set in the SRV 2030. In addition
to optimizing efficiency in the use of wood fibres, APP alsoutilizes reclaimed materials in its packaging, amounting to19%. These products are sourced from local or imported postconsumer waste. [GRI 301-3]
The decision to transition to recycled materials aligns withthe growing demand for recycled products from customers.
Increased public awareness of environmental issues andsustainability has created significant opportunities for APP. By
integrating recycled fibers into the production process, APP
not only reduces pressure on forests and ecosystems but also
strengthens its commitment to sustainability.

[GRI 301-1] [OJK F.5]

23.8

2021

24.3

2022

24.3

2023

Description

Million tons

1.9

2021

1.8

1.5

2023

2022

Unit

2021

2022

2023

Virgin Fiber

Million tons

3.2

3.5

3.4

Recycled Fiber [E.2.1.7]

Million tons

2.9

3.1

3.1

ChemicalsMillion tons

1.2

2.5

2.9

Packaging materials

Million tons

0.4

0.4

1.2

Total renewable materials

Million tons

30.4

31.3

32.0

Total non-renewable materials

Million tons

3.2

4.3

4.4

Total amount of recycled materials

Percentage

48%

47%

48%

Paper Production Material

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Performance Deep-Dive

CLIMATE RESILLIENCEENERGY EFFICIENCY AND GREENHOUSE GAS (GHG) EMISSIONS REDUCTION
APP demonstrates a serious commitment to reducing its carbon footprint and environmental impact in its operational activities. In thecontext of climate change mitigation, APP takes strategic steps to minimize the use of non-renewable energy and maximize the utilizationof sustainable energy sources. Some of these initiatives involve:
1.

Utilization of Renewable Energy
Sources [E.1.8.3]
APP embraces renewable energy
sources, including biomass andsolar power. Investing in renewableenergy infrastructure helps reducethe company’s reliance on fossil
fuels and lower carbon emissions.

2.

Waste Utilization as an Energy
SourceAs a proactive measure, APP utilizes
the waste generated during its
production processes as an energy
source. This process involves
converting organic waste into
energy, transforming waste that waspreviously considered a burden intoa valuable resource. For instance,
B3 sludge and solid wood waste are
employed as boiler fuel substitutes.

3.

Biomass Utilization
APP utilizes biomass as one ofits energy sources. The biomass
employed can originate from wood
residues or other organic materials.

Biomass utilization contributes
to minimizing air pollution andgreenhouse gas emissions. Thisis because biomass combustion
releases carbon dioxide equivalent
to the amount absorbed by plants
during their growth.
4.

Energy Efficiency
Beyond adopting sustainableenergy sources, APP also prioritizes
enhancing energy efficiency
across its entire operations. This
encompasses the implementationof advanced technologies andbest practices to optimize energy
utilization and minimize unnecessaryenergy waste.

5.

Equipment Maintenance
Equipment maintenance is oneof the factors supporting energy
conservation. Therefore, APP
schedules maintenance andinspections for boiler systems andMiniature Circuit Breakers (MCBs) toprevent electrical leaks.

6.

Technology Innovation
APP continues to invest in researchand development of green
technologies to enhance energy
efficiency and identify innovative
solutions in managing carbon
footprints.

Disclosure

Company Profile

113

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114

ENERGY CONSUMPTION WITHIN AND
OUTSIDE THE ORGANIZATION
Renewable Energy Sources (GJ)

2021

2022

2023

Bark

24,845,883

21,713,549

23,683,898

Black Liquor

130,927,935

137,256,780

Sawdust155,020

Palm Shell

2021

2022

2023

Coal

99,714,071

104,115,199

108,406,572

140,669,805

Diesel Oil

1,091,256

698,085694,200

176,000

101,655

Gasoline Oil

20,112

23,201

22,143000Industrial Diesel Oil

71,193

123,90967,663

Wet Sludge

320,396488,740

287,414

Marine Fuel Oil

825,521705,161

344,129

Empty Fruit Bunches (EFB)

16,551580,020

383,203

Waste Oil

89,405

N/A

N/A

2,328,552

2,261,078

1,740,717

Natural Gas

19,828,442

14,152,175

12,400,076

Total (GJ)

121,640,000

119,817,729

121,934,782

Biogas64,048

8,857

9,471
3,034,885

1,668,820

N/A

419,550

467,120

Purchased Electricity(non REC)

3,343,755

Biodiesel
Methanol

N/A

430

419

Sold Electricity

52,10045,522

3,729

PLTS

N/A

N/A

12,488Purchased Electricity (REC)N/A

313,852

765,921

H2

N/A

N/A

224

Total energy consumption

283,507,759

286,025,948

291,722,207

159,070,267

162,905,302

167,356,413

Palm Fiber and Rubber
Compound Oil (RCO)

Total (GJ)

Non-Renewable Energy Sources (GJ)

Energy calculations are based on the following standards:• Energy calculations utilizes the IPCC methodology at Tier 3 level. We conduct laboratory analyses to determine the calorific values of our fuel’s usage.

[GRI 302-1] [GRI 302-2] [OJK F.6] [E.1.11] [RR-PP-130a.1]

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115

PERCENTAGE OF ENERGY GENERATED BASED ON FUEL SOURCES
Description

2021

2022

2023

Bark

8.9%

8.1%

8.2%

Black Liquor

46.6%

52.3%

48.7%

Sawdust

0.1%

0.1%

0.04%

Palm shell, palm fiber, RCO

0.83%

0.1%

1.43%

EFB

0.0%

0.8%

0.13%

Sludge & Biogas

0.1%

0.4%

0.1%

Methanol

0.1%

0.0%

0.0%

H2

0.0%

0.0%

0.0%

Coal

35.5%

35.6%

37.54%

Marine Fuel Oil

0.7%

0.6%

0.39%

Gas

7.1%

4.8%

4.36%

ENERGY CONSUMPTION WITHIN THE ORGANIZATION(GIGAJOULE)
Renewable
Sources

GigajouleNon-renewable
Sources

Gigajoule

163,218,427 168,122,335
159,070,267

2021

124,931,654 122,807,522 123,599,872

2022

2023

[GRI 302-1] [OJK F.6] [RR-PP-130a.1]

2021

2022

2023

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Performance

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Performance Deep-DiveDisclosure

Company Profile

APP acknowledges the importance of reducing the use of fossil-based energy in efforts to preserve the sustainability of theplanet. Therefore, approximately 58% of APP’s energy needs are sourced from renewable energy. This represents an 8%
increase from the 2018 baseline.

ENERGY CONSUMPTION OUTSIDE THE ORGANIZATION
Energy Sources

2021

2022

2023

Sold Electricity (GJ)

52,10045,522

3,729

Total (GJ)

52,10045,522

3,729

Energy Sources

2021

2022

2023

Intensity Energy(GJ/ton products)

23.84

23.98

24.71

ENERGY INTENSITY

In the SRV 2030, APP has set a goal to achieve a 25% reduction in energy intensity from the 2018 baseline of 25.5 GJ/ton of
production. In the reporting year, we have achieved a 3% reduction in energy intensity from the baseline. This is a remarkableachievement, as a result of various strategic initiatives undertaken by APP, such as improving operational equipment
effectiveness, conducting equipment maintenance, implementing energy efficiency measures, adopting new technologies,
and increasing biomass consumption.

±58%

APP's energy are sourced
from renewable energy[GRI 302-2] [GRI 302-3] [OJK F.6]

3%
Energy intensity
reduction from the 2018baseline116

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Company Profile

ENERGY CONSUMPTION REDUCTION
Energy Sources

2021

2022

2023

Electricity (GJ)

3,291,655

3,303,214

2,431,012

Fuels (Diesel Oil, Gasoline IDO, MFO) (GJ)

2,008,082

1,550,355

1,128,134

Natural Gas (GJ)

19,828,442

14,152,175

12,400,076

N/A

6,122,435

3,046,523

Total reduction (GJ) **) Energy usage comparison between the current and previous year

APP has taken concrete steps to reduce energy consumption in its operations, particularly through lighting and illumination
initiatives. These initiatives aim to achieve energy efficiency, lower carbon footprints, and support the transition to moresustainable energy sources. Some key steps include:
1.

Embracing LED Lighting
APP has proactively replaced conventional lighting
systems with more efficient LED lights. LED lights arerenowned for their lower energy consumption andlonger lifespan compared to conventional bulbs. Thisinitiative has significantly reduced energy consumption
in production areas.

2.

Switching to Translucent Roofs
As part of its energy reduction strategy, APP has
replaced roofs in production areas with materials
that allow sunlight penetration. Translucent roof is
employed to enhance natural lighting within buildings,
reduce reliance on artificial lighting, and optimize theutilization of renewable energy sources.

3.

Skill Development Activity (SDA) Program
Energy reduction efforts are integrated into thecompany’s Skill Development Activity (SDA) Program.

[GRI 302-4] [OJK F.7]

This program focuses on enhancing employee skills
in managing and optimizing resource usage, including
energy. It involves training and developing employees
to become experts in energy-efficient practices.
4.

Monitoring by the Olympic System Team (MBOS)
The effectiveness of the Skill Development Activity(SDA) Program in reducing energy consumption
is closely monitored by the Olympic System Team(MBOS). This team is responsible for measuringperformance, evaluating the impact of initiatives,
providing recommendations for continuous production
efficiency improvements, and identifying additionalenergy-saving opportunities.

117

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ENERGY CONSUMPTION FOR PRODUCTS AND SERVICES

3.1%

In 2023, energy intensity was recorded at 24.71 GJ/
ton, indicating a 3.1% reduction compared to 2018.
This demonstrates APP’s unwavering commitment
to sustainability and energy efficiency across its
operations. [GRI 302-5] [OJK F.6]

Energy intensity
reduction from year
2018

2021

2022*

2023

The energy required for
production (GJ)

283,507,759

286,025,948

291,722,207

Total production (ton)

11,893,089

11,928,343

11,804,030

23.84

23.98

24.71

*) Restatement energy year 2022

[GRI 302-5] [OJK F.6]

Disclosure

Company Profile

APP management is committed to further expanding
PLTS capacity in the coming years to maximize the use ofenvironmentally friendly renewable energy.

This reduction in energy consumption is measured
through energy intensity, which represents theenergy utilized during production. Aligned with the
Sustainability Roadmap Vision (SRV) 2030 targets, APP
aims to achieve a 25% reduction in energy intensity
compared to the 2018 baseline.

Energy per unit of productor service (GJ/ ton)

Performance Deep-Dive

APP subsidiary Tjiwi Kimia has installed a 9.8 MWp solar
power plant (PLTS), which is expected to reduce carbon
emissions by approximately 12,400 tons CO2eq. The PLTS
was inaugurated by East Java Governor Khofifah Indar
Parawansa on 2 October 2023. The PLTS is installed on
the rooftops of the company’s warehouses, offices, andproduction facilities, covering an area of 11.4 hectares,
without compromising Tjiwi Kimia’s green open space.

To reduce the energy consumption associatedwith its products and services, APP is committed toenhancing the efficiency of its operational equipment,
implementing optimal maintenance practices, utilizing
more efficient technologies, and increasing the use of
biofuels.

Energy Source

Achievements118

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EMISSION
APP is dedicated to rigorous emissions management
through the implementation of a Continuous Emissions
Monitoring System (CEMS). This system empowers APP tomonitor gas emissions from its mills in real time. [E.1.7.0.1].
This system also assists APP in identifying its primaryemission sources, enabling corrective actions to betaken. The emissions monitored by APP through CEMS
are Particulate Matters (PM), Sulfur Oxide (SO2), Nitrogen
Oxide (NOx), Mercury (Hg), and for Carbon Dioxide (CO2) ismonitored using other system. All of which are generated
from fuel combustion. Other emission reduction efforts
include the utilization of environmentally friendly renewablefuels, which have been implemented across various APP
mills. [E.1.1.6] [TCFD M2]
As part of its air emissions reduction program, APP has set
a target of reducing SO2 and NOx emissions by <10% below
the standard threshold through the implementation of the
Sustainability Index KPI. We conduct external monitoring
programs every three to six months based on the AMDAL(Environmental Impact Assessment) and in accordance withthe regulations of the Ministry of Environment and Forestry.
The data and information obtained from this monitoring areused for continuous improvement, both in APP’s operations
and in forward planning, to achieve cleaner operations.
[E.1.2.13] [E.1.7.0.2][RR-PP-110a.2] [E.1.7.0.7] [E.1.7.0.8] [E.1.7.0.10] [TCFD M1]

APP aims to reduce its carbon footprint by 30% by 2030.
In alignment with the Indonesian government’s goal ofachieving Net Zero emissions by 2060, APP is actively
supporting this initiative. Currently, APP is conducting a
study to align its Net Zero goals with the Science Based
Targets initiative (SBTi). Specific targets related to climate
risk management and opportunities are outlined on page
21. [TCFD M3]
In 2023, APP successfully achieved emission levels thatcomply with applicable regulations, demonstrating thecompany’s commitment to sustainability and environmental
compliance. Our ESG evaluation is available in our CDP(Climate Change, Forests and Water) report, which can beaccessed on our website.
However, these emission reduction efforts have faced
several challenges, including the limited availability of
biofuels and the high cost of renewable fuels, making theprocess uneconomical. Additionally, the lack of gas turbine
facilities poses a significant challenge when mills want toswitch from coal to gas fuel. Switching from high-calorificcoal to more readily available low-calorific coal presents thechallenge of increased carbon intensity. Nevertheless, APP
remains committed to achieving carbon emission reduction
targets across its operations. [OJK E.5]

EMISSION MANAGEMENTSTRATEGY
Implement continuous emissions monitoring(CEM) sensors to track exhaust gas emissions
in real-time, ensuring they remain below
regulatory limits.
Incorporate Spent Desulfurization Tail Gas(SDT) emissions treatment into the Recovery
Boiler (RB) unit. Burning SDT gas will both
reduce overall emissions and generateenergy.
Optimize the performance of Electrostatic
Precipitator (ESP) control devices toeffectively manage exhaust gas emission
loads.
Minimize emissions from the RB unit byreplacing the wet scrubber with a NaOH
scrubber. NaOH scrubbers are more efficientin capturing SO2 and NOx gases compared
to wet scrubbers, leading to reduced overall
emissions.

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GHG EMISSIONS (SCOPE 1, 2, 3)
GHG Emission (tCO2eq)

2021

2022*

2023

Scope 1

11,021,377

11,444,727

11,535,826

Scope 2 (electricity, market based)

810,364

705,229503,397

Subtotal Scope 1 & 2

11,831,741

12,149,956

12,039,223

Biogenic Scope 1 & 2

15,713,427

15,949,897

16,342,954

Scope 2 (electricity, location based)

810,364

781,261

688,945

Scope 39,340,532

7,353,064

9,525,559

Biogenic Scope 3

21,475,276

19,000,295

21,029,928* Restatement of 2022 data due to the update in calculation methodology to IPCC AR-6.
•
•
•
•
•
•
•
•
•

The assessment of greenhouse gas (GHG) emissions is based on the methodologies of the Intergovernmental Panel on Climate Change (IPCC) and the World
Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD) - Greenhouse Gas (GHG) Protocol.
Emission factors and global warming potential (GWP) for Scope 1 are based on the IPCC’s Sixth Assessment Report for 2022 and 2023, and on the Fifth
Assessment Report for 2021.
The gases included in the calculations are CO2, CH4, N2O, HFCs, and PFCs.
A consolidation approach for emissions; operational control.
Pertamina’s specifications are used to calculate fuel oil conversion factors.
Due to well-managed aerobic wastewater treatment system, GHG emission from wastewater treatment area assumed to be zero
Scope 1 includes direct emissions from fuel used in power generation, gasoline for company vehicles, purchased CaCO3 for lime kilns, solid waste to landfills,
and refrigerant consumption.
For Scope 2, APP calculate its location based and market-based emission from imported electricity. Scope 2 location based calculate total imported electricity
and scope 2 market based calculate only the fossil imported electricity. Both methods use emission factor of PLN (ESDM), where we assume that location andmarket based have the same emission factor.
Scope 3 for 2023 includes purchased goods and services, capital goods, activities related to fuel and energy not covered in Scope 1 or Scope 2, upstream
transportation and distribution, waste generated in operations, business travel, employee commuting, downstream transportation and distribution, andprocessing of sold products.

[GRI 305-1] [GRI 305-2] [GRI 305-3] [OJK F.11] [E.1.6.1] [E.1.6.2] [E.1.6.3] [RR-PP-110a.1] [TCFD M2]

120

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SCOPE 3 EMISSIONS BREAKDOWN

1

3

4
Breakdown of Scope 3 Greenhouse Gas Emissions (tCO2eq) [TCFD M2]

10.2%
5

29.5%

9.3%
6

2

3.1%
7

18.1%

27.3%

1.7%

Components (tCO2eq)
Purchased goods and services

2,808,058

Capital goods

298,145

Fuel- and energy-related activities notincluded in Scope 1 or 2

2,604,615

Upstream transportation and distribution

888,006

Waste generated in operations

18,735

Downstream transportation and distribution

975,423

Business travel

20,135

Employee commuting

28,4968

0.3%

Processing of sold products

1,726,72990.2%

End-of-life treatment of sold products

157,218

10

0.2%

Total Scope 3 fossil emissions* There have been improvements in the methods and categories for calculating coverage 3 in 2023

1

Purchase of goods and services

6

Capital goods

2

Energy and fuel-related activities not includedin scope 1 & 2

7

End-of-life treatment of sold products

8

Employee commuting

3

Processing of sold products

9

Waste generated in operations

4

Downstream transportation and distribution

10

Business travel

5

Upstream transportation and distribution[E.1.6.4] [TCFD M2]

2023*

9,525,559 TONS
Total Scope 3 Fossil
Emissions

9,525,559

121

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GHG EMISSIONS TREND

Approach

Strategy

Performance

Achievements

Disclosure

1.14
1.10

1.02

2019

2020

122

2021

2022

2023

Total emissions (tCO2eq)

11,831,741

12,149,956

12,039,223

Production Unit (ton)

11,893,089

11,928,343

11,804,030

0.99

1.02

1.02

1.02

Total
(Ton CO2eq/ton product)*) Emission intensity calculates Scope 1 and Scope 2 GHG emissions

0.99

EMISSION REDUCTION
2018

Company Profile

GHG EMISSION INTENSITY
Description

0.99

Performance Deep-Dive

2021

2022

2023

2023
Emission Reduction (tCO2eq)**) The reduction in absolute is compared to 2022

0.12
Trend decrease of emission
intensity from 2018 baseline[GRI 305-4] [GRI 305-5] [OJK F.11] [OJK F.12] [E.1.7.0.4] [E.1.9] [E.1.10]

110,733

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

In line with SRV 2030, APP is committed
to reducing carbon intensity by 30% by
the year 2030 [E.1.7.0.6]. To achieve this,we continue to implement measures toenhance the effectiveness of operational
equipment (OEE), apply equipment
maintenance programs, improve energy
efficiency, adopt new technologies, andincrease the use of biofuel and biomass.

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

123

OZONE-DEPLETING SUBSTANCE EMISSIONS (ODS)ODS Substance

2021

2022

2023

Production

0

0

0

Import (ton)

33.08

32.15

34.17

0

0

0

58,62756,68062,022

ExportTotal (tCO2eq)*Note:• In metric tons of trichlorofluoromethane (CFC-11) equivalent.
• Emission source factors and global warming potential (GWP) levels for 2023 & 2022 based on the IPCC AR6
Assessment Report while 2021 based on the IPCC AR5 Assessment Report.

NITROGEN OXIDES (NOX), SULPHUR OXIDES (SOX), AND
OTHER SIGNIFICANT AIR EMISSIONS
Non-GHG Emission Substance (mg/Nm3)

2021

2022

2023

NO2

138.11

114.17153.11

SO2

77.81

121.97132.03

ClO2

7.56

1.10

2.39

HCl

1.26

0.61

0.56

Cl2

1.17

0.66

0.34

TRS

3.60

1.91

1.56

Total particulate

34.75

40.00

63.91

Opacity

9.65

11.78

10.28

Non-GHG Emission Substance (x103 kg)

2021

2022

2023

NO2

29,50426,36525,457SO2

15,522

19,111

26,202[GRI 305-6] [GRI 305-7] [RR-PP-120a.1]

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Performance Deep-DiveDisclosure

Company Profile124

APP commits to consistently meeting the emission threshold requirements for non-GHG gases set by the government,
according to Decree No. 13 of 1995 and the Ministry of Environment and Forestry Regulation No. 15 of 2019. One of theinitiatives to reduce non-GHG emissions includes substituting fuel with biomass, such as bark. [E.1.3.3.1]

Here are some measures taken to control air pollution:•
Installing Continuous Emission Monitoring Systems(CEMS) on several major air emission sources.
•
Conducting periodic manual monitoring of air
emissions from other sources by an accredited
laboratory.
•
Regularly measuring ambient air quality, odour, andenvironmental noise.

••

Reporting the results of environmental management
activities to the relevant government agencies every
six months. Environmental monitoring results indicatecompliance with the safe quality standards required bygovernment regulations.
Substituting coal with biomass fuel to reduce Sulphur
Dioxide (SO2) emissions.

•••Controlling particulate matter by installing Electrostatic
Precipitators (ESP) and condensers on all boiler
operation units to reduce particulate emissions andopacity.
Controlling emissions from fiber line units by installingscrubbers to manage Cl2 and ClO2 emissions.
Installing scrubber units in recovery boiler units tocontrol Total Reduced Sulphur (TRS) emissions.

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Performance

Achievements

A JOURNEY
TOWARD NET ZERO
APP has an important role in the
Net Zero Hub, a program by KADIN(Indonesian Chamber of Commerceand Industry).
This initiative aims to encourage and support Indonesianbusinesses in achieving net zero emissions. The Net Zero
Hub seeks to align with the goals of the Science Based
Targets initiative (SBTi), a global partnership that promotes
climate action in the private sector:••

APP is committed to achieving targets assessed andapproved by SBTi based on rigorous criteria. We willsubmit our commitment targets in 2024. [E.1.7.0.5]
APP is preparing carbon-neutral photocopy paper
products from its subsidiary Tjiwi Kimia for the global
market.

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WATER MANAGEMENT
INTERACTION WITH WATER AS A SHARED RESOURCE
APP recognizes water as a vital and strategic resourcefor both communities and its business operations. To
ensure the sustainability of water resources and minimize
environmental impact, APP implements various responsible
water management approaches and practices. Water isused for steam generation, heating, cooling, and cleaningin APP’s operations. Here are some of the initiatives
undertaken by APP to value and use water efficiently:
1.

Measurement and Calibration
APP utilizes a water measurement tool called a flow
meter, which is installed on the water pump at the
intake point. By continuously measuring water flow, thecompany can monitor and manage water consumption
more effectively. Additionally, APP periodicallycalibrates the flow meter to ensure its accuracy,
thereby ensuring that the data obtained forms a solid
foundation for ongoing decision-making. [E.1.3.4.5]

2.

Determine the Right Location
APP is committed to not sourcing water fromareas experiencing water stress or shortages. By
understanding the ecological and social impactsof water extraction at each location, APP strives tooperate responsibly without further burdening regions
already facing water availability issues. Due to ourcommitment to avoid sourcing water from waterstressed areas, we do not appoint specific managers tooversee this, nor conduct water scarcity assessmentsor report on water shortage risks. [E.1.2.7.1.1] [E.1.2.7.1.2][E.1.2.7.1.3] [E.1.2.7.1.4] [RR-PP-140a.1]

3.

Water Reuse
To optimize water usage, APP implements water
recycling practices wherever possible. Water used inoperational processes, such as heating and cooling, isreclaimed for reuse within the production cycle. Thisapproach helps reduce the demand for raw water
sources and mitigates the ecological impact of fresh
water intake. [E.1.3.4.1] [E.1.3.4.3]

4.

Responsible Effluent Management
APP ensures that its effluent management complies
with applicable regulations. Through effective
and responsible effluent treatment methods, APP
strives to minimize the negative impact of effluent
on the surrounding environment. This includes
monitoring effluent quality and implementing thelatest technologies to ensure discharged water
meets established standards. All water intake, usage,
and discharge processes adhere to governmental
regulations and are reported to the authorities.
[E.1.3.4.6]

By implementing these approaches, APP demonstrates its commitment to acting sustainably and contributing to the wise management of water resources. This not only reflects environmental
responsibility but also plays a role in ensuring adequate water availability for communities and ecosystems around the company's operations.

[GRI 303-1] [OJK F.8] [OJK F.14]

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WATER DISCHARGE IMPACT MANAGEMENT

APP has set goals to reduce water intensity and Chemical
Oxygen Demand (COD) emissions by 2030. This initiative
is part of APP’s commitment to advancing sustainability andmaking a positive environmental contribution.
1.

2.

Water Intensity Reduction [E.1.3.4.1] [E.1.3.4.4]
APP aims to achieve a 30% reduction in water
intensity by 2030. Currently, water intensity stands at
27.3 m3 per ton of product equivalent, marking a 17%
decrease from the 2018 baseline of 33 m3 per ton of
product equivalent. By prioritizing water use efficiency
in its operations, APP aims to achieve significant
improvements in water resource availability andsustainability.
COD Emission Reduction
APP has also set a target to reduce Chemical Oxygen
Demand (COD) emissions by 30% below government
standards. COD is a parameter measuring the numberof organic substances in water that require oxygen forchemical degradation. APP has developed monitoring
tools for COD values that help track COD levels in realtime. As of 2023, the recorded highest value was 267.7
mg/ltr, which is 24% below the government's set limit of
350 mg/ltr.

•

•

•

•
3.

Wastewater Treatment [E.1.2.6.3.1] [E.1.2.6.3.3]
Wastewater management within APP is conducted
through a Wastewater Treatment (WWT) unit, involving
stages such as primary treatment, secondary
treatment, post-treatment, and sludge treatment.

[GRI 303-2] [OJK F.14] [RR-PP-140a.2]

Primary treatment. This process involves physicaltreatment of water by adding PAC (Polyaluminum
Chloride) and polymer chemicals in the flocculationand coagulation unit. The wastewater is thensettled in a primary clarifier process aimed atremoving Total Suspended Solids (TSS) from thewastewater, which refers to the number of solid
particles suspended in wastewater.
Secondary treatment. After undergoing
sedimentation, wastewater is treated to remove
COD and BOD values using microorganisms
or bacteria. Bacteria decompose the organic
content, expressed as COD and BOD values,
within a specific retention time. Subsequently, thesecondary clarifier process separates wastewaterfrom bacteria. Biological Oxygen Demand (BOD)
is a crucial parameter in wastewater analysis,
indicating the amount of dissolved oxygen
required by microorganisms to decompose organic
materials biologically in aerobic conditions over a
5-day period at 20°C.
Post-Treatment. The treated wastewater is thenready for disposal, meeting the government's
central and local regulations with values below thewastewater quality standards.
Sludge Treatment. The sludge produced during
the wastewater treatment process undergoes
dewatering to reduce the water content in thewastewater sludge.

By setting these targets, APP demonstrates its commitment
to manage liquid waste and reduce negative impacts onwater quality more effectively. The responsibility for water
management lies with the President Director, who sets
inclinations, budgets, as well as risks and opportunities
related to water. Additionally, APP’s Chief Sustainability
Officer (CSO) who analyses various water-related scenarios,
establishes policies and strategies concerning water
within the overall business strategy, and monitors progress
towards water-related targets. [E.1.3.4.2].
Zero water-related incidents occurred during the reporting
year that resulted in significant fines or penalties.
[E.1.2.6.3.5]

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INITIATIVES RELATED TO WATER IN APP MILLS

Tjiwi Kimia[E.1.2.6.3.2]• Water consumption for production has decreased as aresult of pump and motor automation connected to theunits.

OKI[E.1.2.6.3.2]• Reusing saturated cooling water for wood washing.
• Reusing blowdown water from the cooling tower for thepulp washing process.

• Implementing water reuse in production.
• Installing sludge waste treatment in Wastewater Treatment
Technology (WTT), a technology used to treat wastewater
to make it safe and environmentally friendly before
disposal into the environment.

• Increasing the ratio of reused white water from the Pulp
Dryer Machine for the bleaching process.
• Reusing condensate from the Vacuum Evaporator for thepulp production process.

• Utilizing tapioca residue for WTT.
Perawang[E.1.2.6.3.2]• A 9% decrease in water usage for production and nonproduction compared to 2022.

APP Purinusa Ekapersada[E.1.2.6.3.2]• The decrease in water consumption by 2% compared to2021.

• Reusing water used in pulp production.

Overall[E.1.2.6.3.2]• Overall, APP has reduced water usage intensity by 17%
from the 2018 baseline of 33.0 ML/ton.

• Improving Cooling Tower performance to reduce drift loss.
• Maximizing the reuse of condensate.
Karawang[E.1.2.6.3.2]• A decrease in water consumption by 6.2% from year 2022.
• Recycling purified water back into super purified water.

Indah Kiat
[E.1.2.6.3.2]• A 15% reduction in water consumption from year 2022.

• The water ratio usage in 2023 was 27.3 m3/ton, a decreaseof 8% from the 2018 baseline.
• Recycling treated wastewater into the production area.
• Diluting chemicals with treated effluent..

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WATER DISPOSAL

Description(Mega-litre)

2021

2022

2023

Description(Mega-litre)

2021

2022

2023

Surface water

345,906

325,542

322,674

Surface water

226,457

231,396

224,262

Groundwater

78

76

77

Water originating from a thirdparty

41

39

47

346,026

325,658

322,798

Total water intake*) The water taken is freshwater (TDS ≤1,000 mg/ltr), therefore the discharged water is also freshwater.
APP does not extract water from areas experiencing water stress. There is no third-party water sent
to other organizations for use.

*) Water taken is freshwater. (TDS ≤1.000 mg/ltr)
APP does not extract water from water-stressed areas.
Water calculations including extraction, consumption, and discharge are measured using flow meters

Regarding the water management from operational activities, APP has the following goals and targets:• Ensuring that discharged water into water bodies meets the required quality standards and regulatory requirements. [E.1.2.6.3.4]• Continuously perform the installation of integrated SPARING equipment systems within the Ministry of Environment and Forestry.

WATER CONSUMPTION
Description(Mega-litre)

2021

2022

2023

Description

2018(baseline)

2021

2022

2023

Surface water

274,634

274,456

265,829

Water intake (Mega Liter)

333,013

346,026

325,658

322,798

Groundwater

78

76

78

Water disposal (Mega Liter)

225,304

226,457

231,396

224,262

Water originating from a thirdparty

41

39

39

Water reuse & recycle (%)

15

14

14

17

274,753274,571

265,945

Water Reduction (%)

0

10

17

17

Water Intensity (m3/t) [E.1.2.7] [E.1.2.7.2]

33.0

29.7

27.3

27.3

Total water consumption

Note: APP does not extract or consume water from water-stressed areas[GRI 303-3] [GRI 303-4] [GRI 303-5] [E.1.2.6.3.6] [E.1.2.7.1.5] [E.1.3.4.6] [RR-PP-140a.1]

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WASTE MANAGEMENT
APP has implemented a robust
policy on waste management,
reflecting the company's
commitment to operate responsibly
and sustainably.
This policy is designed to reduce environmental impact,
minimize waste, and promote responsible waste
management practices.

IMPACT OF WASTE
Several types of waste are generated in the production
processes of APP, primarily solid and liquid waste. Solid
waste includes pulpwood fibers that cannot be utilized,
paper waste consisting of remnants from the production
process, sludge generated from wastewater treatment
processes, fly ash from fuel combustion in boilers, andhazardous waste such as batteries and chemicals.
Meanwhile, liquid waste comprises wastewater fromproduction processes and domestic waste.

EFFECTIVE MANAGEMENT OFSIGNIFICANT IMPACTS RELATEDTO WASTE
APP is strongly committed to supporting circular resources
through various waste management efforts, such as:
1. Waste Reduction [E.1.3.2.1]• APP prioritizes waste reduction strategies at thesource. This includes innovations in production
processes to avoid unnecessary waste generationand the development of products that are more
efficient in terms of raw material use.
• The company is committed to continuously
improving production efficiency through thelatest technologies and environmentally friendly
methods.
2.

3.

[GRI 306‑1] [GRI 306‑2] [OJK F.14]

3R Principles (Reduce, Reuse, Recycle) [E.1.3.2.2]• APP actively implements the 3Rs principle inwaste management. This includes efforts to
reduce the amount of waste generated, design
processes to reuse materials, and promote
recycling as a primary solution.
Zero Waste to Landfill by 2030
• APP has set an ambitious goal of achieving "Zero
Waste to Landfill" by 2030. This demonstrates thecompany's commitment to eliminating waste sent
to landfills and promoting a circular economy.

4.

Daily and Scheduled Waste Management Records• To monitor and evaluate waste management
performance, APP meticulously records daily
waste data. This information is used not only forinternal company purposes but also submitted
to government authorities for transparency andexternal monitoring.
• Continuous monitoring and evaluation ofwastewater quality are conducted through theContinuous and Online Wastewater Quality
Monitoring System (SPARING).
• Manual testing of wastewater quality is carried out
by accredited laboratories to ensure accurate test
results.

5.

Partner and Supplier Compliance:• APP requires its business partners and suppliers
to share a commitment to responsible waste
management. The company actively ensures thatits business partners comply with the establishedwaste management standards to maintain the
integrity of the supply chain.

6.

Environment Innovation:• APP invests in innovation and research to develop
more environmentally friendly solutions, including
the use of cutting-edge technology to minimize
the waste impact from the company's operations.

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The various waste-related initiatives within APP:

Perawang• Collaborated with the local government and Bogor
Agricultural University (IPB) for innovative waste management.

IKS• 100% of wastewater treatment plant sludge is used as raw
material for lowgrade brown paper.

• Utilized wastewater sludge and bark waste as substitutes for
raw materials in organic soil amendments (PTO) on mineral
soil.

IKT

• Develop the Clean Development Mechanism Project.
• Send sludge waste to the Serang mill, reducing waste byapproximately 1.1 million tons per year.

• Leveraged bio ash, pulp, and dreg and grits waste containing
calcium, magnesium, and micronutrients to be used as
inorganic soil amendments (PTA) on peat soil.
• Used sludge waste as a substitute for raw materials in the
production of deinking paper, liner paper, and medium, which
has received utilization permits from the relevant government
agencies.
Karawang• All (100%) of the wastewater treatment sludge is used as raw
material for low-grade brown paper.
• The utilization of sulfuric acid waste from the dichlorination
process is employed as a raw material to neutralize the pH
in the Wastewater Treatment Plant (WWTP). This utilizationof sulfuric acid waste allows the plant to save on the costs ofpurchasing chemicals for the WWTP.

Lontar Papyrus• In accordance with Government Regulation No. 22 of 2021, B3
waste FABA (Fly Ash Bottom Ash) can now be categorized asregistered non-B3 waste, utilized as a substitute raw material
for road soil stabilization.
• Sewage sludge, bark waste, and bio ash are used as
substitute raw materials for organic soil enhancers on mineralsoil.
• Coal ash, a by-product of coal combustion in Steam Power
Plant (PLTU) facilities, is included in the registered non-B3
waste category and is used as a substitute raw material forroad soil stabilization and log yards.

• Possess an Operational Feasibility Certificate (SLO) for theutilization of wastewater treatment sludge as an alternativefuel substitute.
OKI• Collaborating with IPB to conduct a study on utilizing dregs
and grits waste to produce Inorganic Soil Conditioner (ISC) as
an alternative to dolomite fertilizers.
• Partnering with Sriwijaya University for waste management.

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Approach• 100% of the sludge from the wastewater treatment plant(IPAL) is utilized as raw material for low-grade brown paper
and is also used as a substitute energy source for boiler fuel.
• Plastic waste generated from impurities in recycled papermaterial will be utilized by the Company. Therefore,
the Company is constructing a Waste Boiler facility toconvert plastic waste into RDF (Refuse Derived Fuel) as analternative fuel source in steam production, aiming to reducecarbon emissions by reducing coal consumption.
• The Company is currently constructing two secondary
clarifiers and anaerobic processing facilities with the goal of
reducing pollutant levels and producing biogas that can beused as an alternative fuel.
• 100% of non-hazardous bottom ash waste from coal
combustion in power generation processes is utilized by thecompany for manufacturing multiblock and soil compaction,with approval from relevant government agencies.
• Non-hazardous waste from company activities is recycled
into products with economic value, such as transforming
pallet wood scraps into new pallets, and crafting strapping
bands from dismantled packaging materials for community
empowerment activities.

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WASTE COLLECTION

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WASTE DIVERTED FROM FINAL DISPOSAL

Waste Composition

2021

2022*

2023

Category

2022

2023

Hazardous waste (ton)1,220,600

1,243,166

832,149

Hazardous waste (ton)609,482

550,836

Non-hazardous waste (ton)343,190362,912686,742

Non-hazardous waste (ton)75,148201,445*) There is restatement for non-hazardous waste in 2022

Total
waste
1,563,790

Waste Diverted from final disposal (ton)Ton
1,606,078

87,187 TONS

1,518,891

Total waste reduced
2021

2022

2022

2023

Onsite (ton)684,630

752,281

Offsite (ton)408,416

553,995

2023

Through various waste management initiatives, APP has successfully reduced the amountof waste sent to landfills by 60%, or 209,533 tons, compared to a baseline of 518,696 tons
in 2018.
Input

Category

Output(in mio ton)Type of waste

Activities

Coal: 6.3 million ton

0.35

Ash

Energy plant for pulp andpaper production

Raw material for paper
fiber: 6.5 million tons

0.51

SludgePulp and paper production

Fiber raw material for
pulp: 24.3 million tons

0.14

Dreg and grits

Pulp production process[GRI 306-3] [GRI 306-4] [OJK F.13] [E.1.3.2.4]

Several types of waste are diverted from final disposal by being reused as raw materials.
For example:•
Hazardous waste sludge is used as a raw material for making chipboard, which is aboard made from wood chips or sawdust mixed with adhesive and pressed into solid
sheets.
Hazardous waste sludge is also used as boiler fuel and for producing low-grade paper.
•
Non-hazardous fly ash and bottom ash are used for making paving stones and•concrete blocks.

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WASTE DELIVERED TO THE
FINAL DISPOSAL SITE (TON)

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WASTE DIVERTED FROM LANDFILLS BASED ON
RECOVERY OPERATIONS, IN METRIC TONS (WASTE
TYPE WITH RECOVERY ACTIVITIES)

Category

2022

2023

Hazardous waste (ton)515,914

209,533

Non-hazardous waste (ton)

6,210

3,537

Category

In place

OutsideTotal

546,885

68,662615,547

Incinerator (without energy recovery) (ton)

0

786

786

Temporary storage (to be recycled) (ton)

3,950

0

3,950

Total

550,836

69,448620,283

138,367

480,240

618,608

Incinerator (without energy recovery) (ton)

0

0

0

Temporary storage (to be recycled) (ton)63,078063,078

Total

201,445

480,240

681,686

Hazardous and toxic waste*) The waste sent to the final disposal site for hazardous waste goes to the internal landfill,while nonhazardous waste is taken to a landfill by a third party.

Recycle, reuse, recovery (ton)

THE INTENSITY OF
WASTE DISPOSAL (T/T)

Non-hazardous and non-toxic waste

Category

2021

2022

2023

Waste disposal intensity(ton waste/ton production)

0.04

0.04

0.02

Recycle, reuse, recovery (ton)

Waste prevention (ton)

0.02

60 %

Waste intensity
delivered to the final
disposal site

Reduced the amount of waste
sent to landfills compared tobaseline year 2018[GRI 306-5] [OJK F.13] [E.1.3.2.4]

1,301,969

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ENVIRONMENTAL COMPLAINTS
APP acknowledges that its operations have significant
impacts on society. Therefore, as a form of social
responsibility and environmental concern, APP has
established avenues for the community to provide
feedback and complaints regarding potential environmental
impacts arising from company activities.

[OJK F.16] [E.1.1.8]

Through an open and inclusive communication platform,
APP provides a space for the community to actively
participate in environmental monitoring processes andcontribute constructively to continuous improvement. Thismechanism enables the community to voice concerns,
provide suggestions, or report specific environmental
issues that may affect their well-being. Zero environmental
complaints were received through the whistle-blower
channel in 2023.

Due to the careful measures taken by APP, there were
zero spills reported during the reporting year. [OJK F.15] In
addition, the company consistently adheres to and complies
with environmental regulations, ensuring there are zero fines
or legal claims related to violations of regulations.
[GRI 2-27] [E.1.2.3]

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RESPONSIBLE BUSINESSAPP is committed to conducting business responsibly,
considering economic, social, and environmental
aspects while emphasizing technology and innovation toachieve sustainability goals. The vision, objectives, andsustainability targets have been established through the
SRV 2030 (Sustainability Roadmap Vision 2030), which has
been approved by APP Board [E.1.1.9]. The responsibility for
implementation has been delegated to each Board member
and relevant functions to ensure meticulous execution
across APP’s operation. [E.1.2.6] [E.1.1.1]•

Sustainable Products: APP develops sustainableproducts that contribute to the circular bio-economy.
For example, APP manufactures paper and tissue fromrecycled materials and environmentally friendly fiber
sources.

•

Carbon Footprint Reduction: APP employs various
technologies to reduce its carbon footprint, suchas using renewable energy and improving energy
efficiency. Our pulp and paper mills have generated
58% of their energy from renewable sources and utilize
biofuels and biomass to reduce reliance on fossil fuels.

••

Conservation of Natural Resources: APP continuously
strives to conserve natural resources by implementing
more efficient technologies and developing productsthat use fewer raw materials. We recycle and reuse
10% of our water to reduce water intake and haveachieved a 46% solid waste utilization rate.
Environmental Impact Mitigation: APP utilizes
technology and innovation to mitigate environmental[OJK A.1]

impacts, such as pollution prevention and control,
as well as sustainable forest management. We havealso made significant investments in environmental
management, including USD 49.2 million for waste andemission management, and USD 1.2 million for otherenvironmental management initiatives. [OJK F.4]••

International Certifications: APP holds globally
recognized international certifications such as ISO
14001 (Environmental Management System), ISO 50001(Energy Management System), and Programme for theEndorsement of Forest Certification™ (PEFC™), among
others. For a full list of certifications, please visit our
page 73, 106, 107. [E.1.1.3] [E.2.1.1.7] More than 75% of
APP’s activities have received external certification.
[E.1.3]Compliance with Legislation: APP adheres to all legal
regulations in the fields of economy, environment, andsocial matters that are applicable in Indonesia. [E.1.2.3]

Through the principles above, APP practices an approachthat prioritizes prevention principles to minimize
the environmental impact of APP and ensure theimplementation of socially responsible aspects. [GRI 2-23]
Specifically, APP implements an Environmental
Management System (EMS) based on ISO 14001, alongsidevarious other national and international standards andbest practices. The implementation of this EMS is a shared
responsibility among company management, employees,
and relevant stakeholders. [E.1.2.1] In the implementationof Sustainable Management of Landscape (SML), APP has

conducted an identification of its products and businessactivities that impact the environment, such as: [E.1.2.2]
Emissions of greenhouse gases from combustion•
processes.
•
Non-greenhouse gas emissions from production
processes.
•
Effluents or liquid waste from paper production.
•
Generation of hazardous and non-hazardous solid
waste from paper production processes.
•
Water intake for production processes.
Included in this SML are the organization of trainings
to support management and employee awareness inenvironmental matters. Some of the environmental training
sessions held in 2023 include: [E.1.2.7] [E.1.1.2]•
ISO 14001 and ISO 9001 training•
PEFC chain of custody training•
Hazardous and non-hazardous waste handling training•
SML audit training
Additionally, there are various certification training
programs available for workers performing specialized
tasks.

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III. SOCIAL

APP employees are the main pillars thatplay an active role in materializing thecompany's vision and mission. They are an
integral part of APP’s success in running asustainable business that produces highquality products. To ensure the well-being
and comfort of employees in their work,
APP has developed a human resource (HR)policy that focuses on supporting a goodwork-life balance for all employees. This
policy is designed to create a positive work
culture so that employees reach their full
professional potential.

The human resources management
policies and systems at APP are guided
by principles of human rights policies,
occupational health principles, and bestpractices both nationally and internationallyrecognized, such as listed below.
[GRI 2-23] [S.4.2.1.1]
International Bill of Human Rights
ILO Declaration on Fundamental
Principles and Rights at Work,
United Nations Guiding Principles on
Business and Human Rights

In addition, APP also adheres to applicable legal regulations, such as:
1.

Law Number 1 of 1970 concerning Occupational Safety and Health;2.

Law Number 13 of 2003 concerning Manpower;3.

Law Number 11 of 2020 concerning Job Creation;

4.

Republic of Indonesia Law Number 24 of 2011 concerning
Social Security Organizing Bodies; and5.

Minister of Manpower Regulation Number 17 of 2021 concerning
Procedures for Adjusting Minimum Wage.

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HUMAN RIGHTSAPP prioritizes human rights in its human resourcesmanagement and all operational aspects. To ensurecompliance with high human rights standards, we employ amechanism known as Human Rights Due Diligence (HRDD).
Our HRDD implementation is conducted in collaboration
with the Foundation for International Human Rights
Reporting Standards (FIHRRST), ensuring consistency andreliability throughout the process.
In our efforts to enhance understanding and awareness ofhuman rights, APP has adopted the UN Guiding Principles
on Business and Human Rights (UNGP) standards at two
APP mills, Indah Kiat Perawang and Indah Kiat Tangerang,
as well as at one supplier, Arara Abadi, in 2022. In thereporting year, APP continued HRDD implementation at the
OKI factory and Bumi Andalas Permai supplier. We plan tocontinue HRDD implementation across all our mills annually.
During routine HRDD assessments, if any gaps or humanrights-related risks are identified, APP promptly takes
necessary mitigation steps across its operations. We
consider this an unwavering commitment to ensuring
every aspect of our business is conducted responsibly withrespect for human rights.
Furthermore, in 2023, APP conducted a human rights
training session covering topics such as diversity, inclusion,equal opportunity, and the responsibility to respect humanrights across all APP’s operation.

[GRI 2-23] [S.4.2.1.1]

APP also provides human rights training to security
personnel to ensure these values are reflected throughout
our organization. We rely on security officers as the frontline
in maintaining operational smoothness and corporate
asset security. The company ensures responsible security
practices by providing human rights-related training so that
security officers can perform their duties professionally.
Training for security personnel includes various topics
related to ethics, company human rights policies, andgeneral knowledge of the rights of local indigenous
communities at the company's operational sites. As of thereporting year, 46% of security personnel working at APP
have received human rights training. [GRI 410-1] [S.4.2.1.8]
Further detailed information about our Human Rights Policy,
and Health and Safety Policy can be accessed through our
website. [GRI 2-23]

Performance Deep-DiveDisclosure

Company Profile138

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EMPLOYEE WELFARELABOR RIGHT ASPECTS
COLLECTINGBARGAINING
AGREEMENT
Freedom of association for workers is afundamental right recognized globally andguaranteed by legislation in Indonesia. We
respect workers' rights to associate andgather by forming the employee union of
APP. The union serves as a bridge between
employees and the company, enabling
workers to voice their opinions andparticipate in decision-making processes
concerning their rights. [S.1.1]
The company management and employees
maintain a harmonious industrial
relationship through a Collective Labor
Agreement (CLA) jointly formulated byboth parties. The CLA includes termsof employment as well as rights andresponsibilities of both the company
and employees. In the reporting year,
there are 12 labour unions in our factoryand 10 labour unions in the forestry unit.
A total of 69% of APP employees areunion members, and 99% of all company
employees are covered to safeguard theirinterests under the CLA. [GRI 2-30] [S.1.4][S.2.1.4][GRI 201-3] [GRI 404-2]

In addition to encompassing various essential aspects that serve as guidelines for employees
and companies in managing employment relationships, CLA also regulates significant
operational change notifications such as organizational restructuring or company acquisition
plans. If these changes directly impact employees, the company will provide notification to
the workers at least seven days prior to the implementation of such changes. [GRI 402-1]

EMPLOYEE PROTECTION GUARANTEE
APP adheres to government regulations by providing a retirement program aimed at
safeguarding and supporting long-term employee welfare. The company offers several
pension fund programs to all employees:
1. Retirement Guarantee Program by BPJS. Employees contribute 1% of their basic salary,
while the company covers 2%.
2. Old-Age Guarantee Program by BPJS Employment. Employees contribute 2% of theirbasic salary, and the company covers 3.7%.
3. Health Guarantee Program by BPJS. Employees contribute 1% of their basic salary, andthe company covers 4%.
In addition to financial support, APP equips employees with the knowledge and skills
necessary for independent living after retirement. Training includes familiarization withfarming techniques, entrepreneurship, livestock raising, handicrafts, and householdindustries. We also provide financial planning training programs to help employees manage
their retirement funds and income. APP involves retired employees in developing training
curricula for APP Academy through the Pool of Expert program. This initiative facilitates thetransfer of knowledge and skills to the next generation of employees, ensuring the continuityof valuable knowledge within the company.

99%
of APP employees arecovered to safeguard
their interests under the
CLA

139

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140

PARENTAL LEAVERATIO OF ENTRY-LEVEL WAGE BY GENDER TO LOCAL MINIMUM WAGE

The company understands that thorough preparation
before and after childbirth can have a positive impact
on the smoothness of the delivery process, the mother'srecovery, and family happiness. Therefore, we arecommitted to supporting female employees in welcoming
the birth of their children by providing maternity leave as
regulated by labour laws and Collective Labor Agreements(CLA). APP provides maternity leave for female employees:
1.5 months before childbirth and 1.5 months after childbirth,
without reducing their salary, rights, or position in theworkplace. We also recognize the importance of fathersin accompanying the childbirth process, hence male
employees are entitled to three days of leave to support
their wives during childbirth. In 2023, a total of 154 female
employees took maternity leave, and 1,669 male employees
took leave to support their wives during childbirth. Outof these 1,823 employees, 1,549 (85%) returned to their
original positions after their maternity or paternity leave.
Additionally, 1,387 (76%) of those who took leave in theprevious year were still employed in 2023.

APP offers a competitive remuneration system to attract top talent and maintain employee loyalty. Employee compensation is
objectively calculated based on performance, job level, tenure, and employment status. The company values its employees'
contributions equally by not distinguishing between male and female entry-level employees at the same job level and positionin terms of basic salary. Additionally, we ensure employee well-being by providing compensation equal to or greater thanthe Regional Minimum Wage (UMR) stipulated by the relevant local government in each working area. In the reporting year,
the lowest remuneration received by employees amounted to at least the Provincial Minimum Wage (UMR). Our commitment
to gender equality includes maintaining a 1:1 wage ratio at the entry level, ensuring fair and equal compensation from the
beginning of employees' journey with us.

BENEFITSIn addition to receiving a basic salary, employees of APP also receive other benefits in the form of allowances as incentives
to enhance work productivity. APP acknowledges employee performance by providing various components of remuneration
tailored to their employment status. The types of benefits received based on employee status are presented in the following
table:

Types of Allowances Received Based on Employment Status
Types of Benefits

Permanent Employee

Contract Employee

Life Insurance

✓

✓

154

Health Insurance✓✓

Parental Leave✓✓

Female employees havetaken maternity leavethroughout 2023

Special Recognition Program for Employee Achievements✓✓

Pension Fund✓✓

Company paid vacation✓✓

Annual Leave✓✓

Sabbatical Leave (Religious leave eg. Hajj leave)✓✓

Unpaid Leave✓✓[GRI 202-1] [GRI 401-2] [GRI 401-3] [OJK F.20] [S.1.5.2.3]

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141

EQUALITY AND DIVERSITYCREATING A DIVERSE AND
INCLUSIVE WORKPLACEThe Business Code of Conduct (BCoC), Supplier Code of Conduct (SCoC), and Human Rights Policy reflect APP’s commitment
to these values.
In 2023, out of 2,982 candidates in our recruitment screening process, 294 (10%) were women. In our mills and forestry units,
15 female employees hold senior management positions. Additionally, at APP Indonesia Headquarters, 67 out of 244 (27.46%)
senior management positions are held by women. The disparity in gender representation in senior management positions inremote areas is due to the majority preference for male candidates. However, the company continuously strives to enhance
the role and participation of women in senior management and other strategic positions. We are committed to ensuring a
recruitment and talent selection process that is free from bias and inclusive for women. Furthermore, we have developed
a high-level Diversity, Equity, and Inclusion (DEI) Roadmap and are in the process of forming a DEI Committee Structure toachieve our SRV 2030 goals, aiming to increase gender diversity and inclusivity in leadership roles by 30%.

The human diversity within APP is an asset that can beleveraged to enhance the company's competitiveness.
Employees from diverse backgrounds bring different
perspectives and experiences, which can aid the company
in developing creative solutions to address various
challenges. The company treats all employees equally byproviding them with equal opportunities for development
based on performance and competence. The principle oftolerance, tightly held by APP, is represented through thediverse demographics of its employees in terms of gender,
age, and educational level.

Below is a table depicting the composition of APP employees, illustrating the company's diversity in terms of gender, age, and educational level.
Composition of Employees Based on Gender and Job Level in 2023
[GRI 405-1] [S.1.5.2.7] [S.1.3.5]
2021

Position

Composition of Employees Based on Age Groups and Job Levels in 2023
[GRI 405-1] [S.1.5.2.7] [S.1.3.5]

2022

2023

2021

2022

2023

21-30

30-50

>50

21-30

30-50

>50

21-30

30-50

>50

Management

32

1,467

925

23

1,499

988

25

1,396

1,018

2,386 30,605

Non-Management

7,806

18,861

3,265

7,913

18,597

3,662

8,655

17,5084,442

2,734 33,044

Total

7,838 20,328 4,190

MaleFemale

Total

Male

Female

Total

Male

FemaleTotal

Management

1,888

350

2,238

1,960

370

2,330

2,091

348

2,439

Non-Management

26,1402,226 28,366

26,2562,235 28,491

28,219Total

28,028 2,576 30,604

28,2162,605 30,821

30,310[GRI 405-1] [OJK F.18] [S.1.3.5]

Position

7,936 20,096 4,650

8,680 18,904 5,460

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Workers Based on Educational Level Indah Kiat, Tjiwi Kimia, Pindo Deli, Lontar Papyrus, and OKI[GRI 405-1] [S.1.5.2.7] [S.1.3.5]
Educational Level

2021*

2022

2023

S2

265

300

286

S1

5,463

7,220

7,831

Diploma

1,530

2,190

2,482

SMA/equal

13,65017,58917,083

Total

20,90827,29927,682*Source: SR OJK Indah Kiat, Tjiwi Kimia, Pindo Deli, Lontar Papyrus and OKI 2023, 2022, 2021
*In 2021, Pindo Deli data is not included.

Achievements

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FEMALE EMPLOYEE DEVELOPMENT
APP is committed to providing strong support for womenin advancing their careers within the company. We fostera conducive work environment and consistently prioritize
gender equality across all our operational aspects.
Within our management structure, women are provided
opportunities to hold senior positions and play significant
roles in decision-making. We believe that diversity within
our management team is key to achieving sustainablesuccess.
However, we acknowledge that jobs in operational roles
within mills and forests may be less attractive to women.
We also face challenges in recruiting female leaders to fillsenior management positions in remote areas within ourmill and forestry units. [OJK E.5]
To address this issue, APP is reviewing its talent selection
process to ensure that women are consistently included in
the assessment of potential talent. We have also developed
a high-level Diversity, Equity, and Inclusion (DEI) Roadmap
and proposed the formation of a DEI Committee Structure.
We are committed to creating inclusive opportunities
and embracing diversity across all areas of the company,
including operations, with the hope that more women will
be encouraged to pursue careers in this field in the future.
[S.1.5.2.7] [S.1.3.5]

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RATIO OF BASIC SALARY AND
REMUNERATION OF WOMEN TO
MENAligned with Sustainable Development Goal (SDG) 5, whichaims to achieve gender equality, APP is committed toending discrimination and taking steps to promote genderequality in the workplace. This commitment is reflectedin equal base salary and compensation ratios between
female and male employees (ratio 1:1). APP implements anobjective meritocracy system in compensation. This system
ensures that employees are rewarded based on theircontributions, motivating them to continuously improvetheir performance.

ANTI-DISCRIMINATIONAPP strives to create a healthy and inclusive social
climate by emphasizing the principle of tolerance towards
differences. The company firmly rejects all forms of
discrimination and demeaning behaviour based on race,
religion, gender, political opinions, and other forms of
discrimination. The success of APP in implementing its
anti-discrimination policy is evidenced by the absenceof reports related to discrimination incidents during thereporting year.

1:1
Base salary and compensation
ratio between female and male
employees0Reports made regarding
discrimination incidents[GRI 405-2] [GRI 406-1] [OJK F.18] [S.1.3.5] [S.2.1.7]

143

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PROPORTION OF SENIOR MANAGEMENT HIRED FROM THE LOCAL COMMUNITIESAPP strives to contribute to Indonesia's economic equity by prioritizing local workforce residing around the company's operational areas to join
APP. Local workforce is defined as individuals born and living in the company's operational locations. APP is committed to empowering local
communities and developing regional potential by providing equal opportunities for local residents to take up senior management positions. In
2023, approximately 66% of APP’s total employees were from the local community.

Management Composition
Male

Year

FemaleSub total%

Sub total

%

2023

2,091

86%

348

14%

2022

2,122

85%

388

15%

2021

2,055

85%

369

15%

Non-Management Composition±66%
Total employee arefrom the local community

Male

Year

FemaleSub total%

Sub total%

2023

28,219

92%

2,386

8%

2022

27,794

92%

2,378

8%

2021

27,567

92%

2,365

8%

[GRI 202-2] [S.1.3.5]

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TRAINING PROGRAM
TRAINING STRATEGY AND
PROGRAM
Employee training is a critical investment for the future of
the company. Competent employees in their respective
fields produce higher quality products and services,
ultimately enhancing the company's competitiveness.
APP conducts regular training sessions in technical skills,
management skills, and leadership qualities, open to all
employees from field supervisors to corporate executives.
The implementation and development of these training
programs are managed by APP Academy and external
partners with expertise in relevant training areas. This
ensures that the training programs offered are aligned withthe company's needs and effective in improving employee
performance.
In 2023, APP organized employee training sessions
approximately 10 times per location, attended by all
employees. These training sessions included:[OJK E.2]

Safety Program.
Technical Skills.
Managerial Skills.
Corporate Program.
Environmental Program.
[GRI 404-2] [OJK E.2] [OJK F.22] [ S.1.5.2.2]

The Human Resources Development Program of APP
is designed to enhance and strengthen employees'
core competencies, equipping them with the skills andknowledge to effectively lead and support business growthat headquarters, mills, and in forestry. We aim for 2,500
participants to engage in this program by 2030. Currently,
217 employees are involved in the program, including:

62

PARTICIPANTS

Management Trainee Program

124 PARTICIPANTS
Graduate Trainee Program

31

PARTICIPANTSITSB Scholarship Program

Besides the Human Resources Development Program by
APP, leadership teams from each mill operation and forestry
unit have developed specialized training programs toensure alignment with operational goals. Over 900 digitalmodules are available to all APP employees, accessible
even to those who have left the company. The Metaverse
application provides a platform for employees to engage
in informal social media-based learning through interactive
Q&A sessions. Contributions from retired professionals
and experienced experts ensure employees receive
comprehensive training from diverse perspectives.
Additionally, APP offers standardized Occupational Healthand Safety (OHS) training across all mills and forestry units.

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A summary of average training hours by gender and employee position is presented in the following table:
Average Training Hours for Employee [GRI 404-1]
Description

Total Employee(people)Training hours(hours)Average Training
Hours per Employee (hours/person)

All
Based on GenderMale

151,692

785,934

5

Female8,518

43,585

4

Management

14,67391,9194

Non Management

145,537

737,600

4

Based on position

829,519 HOURS
Total training hours

PERFORMANCE REVIEWAPP conducts regular performance evaluations and assessments based on the achievement of Key Performance Indicators(KPIs) for each employee. Through this evaluation system, management monitors employee performance to enhance their
future work quality. Evaluation results are used as a basis for considerations regarding training program development,
incentive allocation, employee transfers, and promotions. In the reporting year, APP reviewed the performance of all company
employees, both male and female, across all levels of positions.

[GRI 404-3] [S.1.5.2.4]

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DECENT AND SAFEWORKING ENVIRONMENTOCCUPATIONAL HEALTH AND
SAFETY MANAGEMENT SYSTEM
APP prioritizes Occupational Safety and Health (OHS)
aspects as the main foundation of all company operational
activities to protect employees and achieve the target ofzero occupational accidents. To achieve this goal, APP has
developed an Occupational Safety and Health Management
System that refers to various national and international
standards, such as:•
Law No. 1 of 1970 concerning Occupational Safety.
•
Law No. 13 of 2003 concerning Manpower.
•
Law No. 36 of 2009 concerning Health.
•Government Regulation (PP) No. 50 of 2012.
Implementation of Occupational Safety and HealthManagement System.
•
Minister of Manpower Regulation Number 5 of 2018
Concerning Occupational Safety and Health of theWork Environment.
•
ISO 45001:2018 on Occupational Safety and HealthManagement System.
The OHS Standard of APP applies across all company
operational areas and must be adhered by all
employees, business partners, and any parties involvedin APP operations without exception. Every Mill Head is
responsible for implementing OHS measures, supported by
a competent team, and reporting to the President Director.
[S.1.6.2.1.2][GRI 403-1] [GRI 403-2] [OJK F.21] [S.1.6.2.1.1] [S.2.1.1] [S.1.6.2.1.3]

To enhance OHS effectiveness, the company has
established a policy to conduct internal audits of its
Occupational Health and Safety Management System(OHSMS) every three years. This internal OHSMS audit
is a meticulous and comprehensive process aimed atevaluating various critical aspects of occupational healthand safety management within the company. The primary
goal of these audits is to identify strengths and weaknesses
in OHSMS implementation, providing a foundation fordeveloping more effective strategies and improving
performance in the future.
The audit covers several key areas including strategy,
leadership, planning, support levels, operations, andperformance. Additionally, APP also undergoes external
audits conducted by independent third parties, such astriennial OHSMS recertification audits, annual ISO 45001
audits, and yearly OHS Performance audits. The results ofthese audits serve as the basis for developing appropriate
corrective action plans and formulating long-term strategies
to strengthen the company's OHSMS.
Furthermore, APP regularly reports to relevant departmentsof both central and regional governments. By conducting
regular reporting and OHSMS audits, the company ensuresthat its occupational health and safety management systemremains relevant, effective, and aligned with the latest
developments in this field. [S.1.6.2.1.9]

HAZARD IDENTIFICATION, RISKASSESSMENT, AND INCIDENTINVESTIGATION
APP implements a system of hazard identification andworkplace accident risk assessment to minimize the risk ofaccidents and occupational diseases. This process involves
strategies for investigating incidents to identify necessary
corrective actions to prevent recurrence of similar incidents.
The process of hazard identification, risk assessment, andincident investigation follows a codified and systematic risk
management procedure, encompassing various aspects
including:
Basic Principles of Risk Assessment.
Hazard Identification.
Occupational Safety and Health (OHS) Risk
Assessment and Other Risks: Inherent OHS Risks,
Existing OHS Risks, Residual Risks.
OHS Risk Assessment and Other Opportunities.
Planning Actions, Review, and Analysis of Risk
Management Programs.
Occupational Safety Analysis.

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Workplace risk assessment includes risk
reduction plans or action plans, which
involve monitoring activities to mitigate
identified risks. We utilize risk assessment
tools such as Job Safety Analysis (JSA) andHazard Identification Assessment and Risk
Opportunities (HIARO), which are integral
to our flagship Safety Performance Index(SPI) program.
APP maintains rigorous procedures forincident management, including structured
reporting and recording processes. Every
incident, whether minor or major, must be
promptly reported according to establishedprocedures, and accurate records must
be kept for each occurrence. Furthermore,
APP employs Root Cause Analysis (RCA)
tools to identify the underlying factors ofincidents, enabling corrective actions toprevent recurrence of similar events in the
future.
Additionally, APP has a policy to issue
alerts to all employees in the event ofsignificant incidents. These alerts are
aimed at raising awareness of safety
importance and preventing the recurrenceof similar incidents.

Ecosystem

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Performance

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Performance Deep-DiveWe also conduct regular inspections and risk assessments at potentially hazardous locations
and implement HIARO. Other efforts include:
Developing a workplace safety analysis program.
Reviewing and updating standard operating procedures and work instructions.
Installing guards around hazardous machinery.
Implementing a Stop Work Authority (SWA) Program to encourage employees to halt
work if they identify unsafe behaviours or conditions. Every worker has the right toleave a work situation they believe may jeopardize their health and safety. Employees
can report without fear of retaliation.

APP has a comprehensive emergency response system to mitigate risks arising fromemergency events. This emergency response system includes: [S.1.6.2.1.7]
Emergency Response Procedures.
Equipment and Supplies for Emergency Response such as fire trucks, ambulances, firstaid rooms, evacuation routes, safe assembly points, first aid kits, medical equipment,
evacuation tools, and others.
Emergency Response Team.
Certification of Emergency Response Personnel Competence.

Disclosure

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OCCUPATIONAL HEALTH SERVICES
Maintaining employee health is a crucial investment for companies because physically and mentally healthy employees are more productive and innovative. APP strives to create a comfortable
and safe work environment by providing accessible healthcare facilities for all employees. To achieve this goal, APP offers healthcare services that are promotive, preventive, and rehabilitativein nature:1.

Promotive Health Services focus on encouraging
employees to adopt healthy behaviours and creatinga healthy environment. APP provides these services
through:a. Delivery of Occupational Health and Industrial
Hygiene (OHIH) materials.
b. APP Health Forum webinars, delivering OHIH
content online by partnering practitioners from
APP (SehatQ doctors / Eka Hospital).
c. Bi-weekly Healthy Exercise Together sessions
coordinated by SPSI.
d. Cardiopulmonary Resuscitation (CPR) training.
e. Medical training.
f.
Annual blood donation drive in collaboration
with PMI (Indonesian Red Cross).

24 HOURS

2.

Preventive Health Services, which focus on
health promotion and early detection of diseases.
Preventive Health Services include:
a. Fogging for prevention of vector-borne
diseases.
b. Provision of iron supplements for female
workers.
c. Provision of supplementary food such as milk
for workers in specified high-risk occupations.
d. Regular health check-ups.
e. 24-hour open first aid room.
f.
Paramedics on standby 24/7 for first aid, light
medical consultations, and daily fit-to-workassessments.
g. Distribution of first aid kits at 15 locations.
h. Random screening for Non-Communicable
Diseases (NCDs) (blood pressure, blood sugar,cholesterol, and uric acid).
Medical consultation sessions with a doctor.
i.
Iva and pap smear tests for cervical cancerj.
detection.

3.

Rehabilitative Health Services refer to healthservices designed to assist employees who haveexperienced injury or illness to safely return to work.
These services include post-work accident recovery
monitoring programs, handling of workplace
accidents, as well as home visits to employees witha history of serious illness conducted by the firstaid team, occupational health doctor, HR, and theWorkers' Union.

Open First Aid Room
APP takes the confidentiality of employees' health information very seriously. Personal health information of employees is considered confidential and is rigorously protected. This health data
will not be used for purposes that could benefit or harm employees. With this commitment, APP ensures that the privacy and well-being of employees are maintained in all aspects of thecompany's health programs.
[GRI 403-3] [GRI 403-6] [S.1.6.2.1.10]

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WORKER PARTICIPATION,
CONSULTATION, AND
COMMUNICATION ON
OCCUPATIONAL HEALTH AND
SAFETYAPP has an Occupational Safety and Health Committee(P2K3) whose membership consists of representatives
from various work units. Additionally, the composition of
P2K3 includes representatives from labour unions andOccupational Health and Safety Experts (AK3). P2K3 serves
as a platform for all employees to actively participate inefforts to prevent work accidents that impact company
operations. The committee also functions to provide
a space for APP employees to convey information,suggestions, and voice their aspirations regarding
occupational health and safety management systems
to management. P2K3 meetings are held quarterly orfour times a year, and the outcomes are reported to the
Department of Manpower.
APP is committed to fostering open and transparent
communication between management and employees
to strengthen a culture of occupational health and safety
across the company's operational areas. One strategy toenhance communication related to occupational health andsafety is through regular field patrols conducted by seniorcompany leaders alongside union members. This programaims to improve the company management's understandingof on-site conditions and facilitate the identification ofvarious occupational health and safety issues requiring
management decisions.

[GRI 403-4]

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TRAINING FOR WORKERS ON
OCCUPATIONAL HEALTH AND
SAFETYINDUSTRIAL HYGIENE

PREVENTION AND MITIGATION OF
OHS IMPACTS

Increasing employees' awareness of the importance ofoccupational health and safety (OHS) is key to achieving
zero accident rates and preventing work-related illnesses.
Therefore, APP organizes various training sessions
related to health and safety at work, structured in a
training matrix to identify the necessary training basedon employees' positions. Training is provided throughinduction programs, skills training, certification programs,
and risk management courses.
Various training topics conducted include:
1. Personal Protective Equipment (PPE) Training.
2. Fireman Development Program, a comprehensive
program covering fire prevention, the use of
firefighting equipment, emergency evacuation, andeffective extinguishing tactics.
3. Safety Officer Development Program aimed attraining professionals in managing and enhancing
workplace safety standards.
4. Emergency Response Training to learn how to use
Fire Extinguishers (APAR) and hydrants.
5. Safety Riding Training designed to raise awarenessand improve safety skills for motor vehicle drivers
within the company environment.
6. Industrial Hygiene Training.
7. Incident Command System Training, etc.

APP ensures comprehensive access to healthcare services
for its employees by providing various programs aimed
at improving their health quality. These programs include
facilities such as gyms, swimming pools, basketball andtennis courts, along with organized group exercises
and other physical activities. Additionally, APP conducts
webinars and seminars on health-related topics including
nutrition, stress management, hygiene, and mental healthpromotion.
Furthermore, workplace environmental assessments are
conducted to identify potential health risks and mitigate
them. At each mill, APP implements promotive andpreventive programs such as behavioural interventions,chronic disease campaigns, first aid training, medical
exercises, health discussions, infectious disease prevention
programs, and blood donation drives. Through these
initiatives, APP supports and promotes a healthy lifestyleand fitness among its employees. The company alsoorganizes joint sports tournaments including futsal,
basketball, badminton, creative gymnastics, and e-sports.

Our company is committed to preventing workplace
accidents and ensuring the safety and welfare of ouremployees. As part of these efforts, we have implemented
various initiatives, including the Behaviour Based Safety(BBS) approach aimed at understanding employee
behaviours in the workplace and identifying risk factors that
may lead to accidents.

[GRI 403-5] [GRI 403-6] [GRI 403-7] [S.1.6.2.1.4]

Additionally, we regularly conduct training and capacitybuilding activities to enhance awareness of safety practices,knowledge of safe work procedures, and skills to identify
and address potential hazards. This training covers various
aspects, from the use of work equipment to emergency
response actions.
We also continuously evaluate and improve our safetysystems based on incident reports, employee feedback,and advancements in technology and best practices in
the industry. Through collaboration between management
and employees, our goal is to create a safe and healthy
work environment for everyone involved in our company's
operations.

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FIRE PREVENTION IN THE
WORKPLACE
APP is committed to preventing the possibility of fires
and minimizing associated risks. To achieve this goal, thecompany has implemented a comprehensive approach,including:Fire and Explosion Risk Analysis (FERA): We regularly•
conduct fire and explosion risk analyses to identify
potential vulnerable points and develop appropriate
preventive measures.
•
Hazard and Operability Study (HAZOP): We implement
hazard and operability studies to identify risks
associated with operational processes and takesuitable preventive actions.
Compliance with Regulations and Standards:•
We prioritize compliance with applicable safety
regulations and industry standards established by bothgovernmental bodies and relevant industry standards.
•
Preparedness Programs: We implement preparedness
programs that include regular fire readiness training for
all employees, routine inspections of equipment andfire protection systems, and periodic testing to ensure
their proper functioning.
Firefighter Personnel Training: We have a specialized•
Fire Mills Development Program designed to train
firefighting personnel. This program covers technical,
tactical, and procedural training to enhance skills andreadiness in responding to fire incidents.

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Through these holistic and proactive approaches, APP ensures that workplace fire risks are minimized as efficiently as
possible and that the company is always prepared to handle any emergency situations that may arise.

OHS MANAGEMENT FOR CONTRACTORSAPP is strongly committed to occupational health and safety (OHS), not only for its internal employees but also for contractors
working within the company environment. To ensure consistent safety standards, APP applies the same OHS standards tocontractors. A key step in ensuring compliance is through the implementation of Contractor Safety Management Systems(CSMS).
By using CSMS, we screen contractors based on their safety qualifications. Only qualified and certified vendors are permitted
to work at our mill facilities. This screening process ensures that contractors have a strong understanding of necessary
occupational health and safety practices and are trained to implement appropriate OHS standards.
Furthermore, we regularly evaluate and monitor contractors working at our facilities to ensure ongoing compliance withestablished OHS standards. These actions not only protect the safety of internal company employees but also mitigate
potential risks associated with contractor activities in the workplace.

WORKERS COVERED BY AN OCCUPATIONAL HEALTH AND SAFETY
MANAGEMENTThe Occupational Health and Safety Management System of APP implemented across the company covers all employees
and business partners including vendors, visitors, and other stakeholders across all operational areas of APP. Additionally,
discussions related to occupational health and safety (OHS) are included in the Collective Labor Agreement (CLA) which
protects all individuals within APP.

100%
Occupational Health and
Safety Management System
implemented in APP[GRI 403-7] [GRI 403-8] [S.2.2.5.1] [S.2.2.5.2] [S.2.2.5.5][S.2.2.5.7]

Achievements

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WORKPLACE ACCIDENT
To prevent incidents, common workplace accident risks have been identified through the Occupational Health and Safety Management System (OHSMS), namely: motor vehicle safety, traffic
safety, falls from heights, energy isolation, powered equipment, electricity, machine/conveyor guards, equipment failure, hazardous materials, confined spaces, excavation and trench work, hotwork, lifting and rigging.
The comprehensive implementation of OHS culture across all operational areas of APP has shown Total Recordable Injury Rate (TRIR) and Loss Time Injury Frequency Rate (LTIFR) results thatneed improvement in 2023 compared to the previous year. The company recorded one workplace accident resulting in a fatality among employees due to operational activities of APP. A
thorough investigation into the root causes of this workplace accident has been conducted, and the company is committed to continuously enhancing the OHS management system to prevent
similar incidents from recurring in the future.

Table of Work Accidents Rates [S.1.6.2.1.8]
2021

Year

2022

2023

EmployeeOutsource

EmployeeOutsource

EmployeeOutsource

Fatality rate

0.01

0.06

0.03

0.10

0.01

0.05

The rate of workplace accidents with significant consequences

0.03

0.08

0.11

0.06

0.00

0.00

The level of recorded workplace accident

3.57

0.8

2.95

0.59

3.08

0.90

Table Lost Time Injury Frequency Rate (LTIFR)
2021

2022

2023

Mills

0.73

0.86

0.91

Forestry Unit

1.91

1.12

0.77

*) The calculation is based on 1,000,000 working hours.

The company is committed to implementing various programs and strategies to achieve zero fatality target. Based on the evaluation results of fatal workplace accidents, APP has taken action by
tightening supervision of contractors leaving the work environment and conducting awareness campaigns on potential accident risks in the workplace.

[GRI 403-9]

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Occupational Diseases
APP prioritizes employee health and safety as an integral
part of its business operations. To safeguard employee
well-being and reduce the risk of occupational diseases,
APP implements structured and procedure-based measures
for the identification and management of occupational
diseases. The process begins with identifying conditions or
illnesses suspected to be caused by the work environment
based on findings from annual employee medical checkups. This is followed by the collection of adequate evidence
and information to support the claim, such as medical
reports and laboratory test results. A comprehensive
analysis of the collected data is then conducted todetermine the extent of the relationship between theworking conditions and the suspected illness.
Occupational diseases that have been identified as
potential risks include Acute Respiratory Infection (ARI),
Low Back Pain (LBP), and Pharyngitis. The company has
implemented various preventive measures, including
regular Health Talks, health training sessions, work
environment measurements and preventive measures, andperiodic Medical Check-Ups (MCUs). During the reporting
year, no employees were diagnosed with occupational
diseases. [GRI 403-10]

0

EMPLOYEES

has caught
occupational
diseasesthroughout 2023

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155

CREATING SOCIAL VALUE
In this report, APP employs the terminology of Community
Empowerment (CE) rather than Corporate Social
Responsibility (CSR) to emphasize a long-term approachto enhancing community welfare. Over the years, APP has
been focused to achieving measurable positive impacts.
Nonetheless, all our CE initiatives are aligned with the legal
definition of CSR as per Indonesian laws and regulations.
APP develops CE programs with a focus on empoweringcommunities, developing capacities, and fostering
symbiotic relationships with them. These CE programs
are coordinated by the Sustainability and Stakeholder

Engagement Division within the company. Essentially, thegoal of these CE programs is to create positive impacts
for the surrounding communities and the environment inwhich APP operates. We recognize that APP’s operations
is surrounded by communities; therefore, APP strives toco-habitat with the surrounding community through sharedvalues and CE initiatives. Through this empowerment, APP
seeks to enhance the quality of life of local communities
and help them elevate in economic development, etc.
[OJK F.23] [S.4.2.11.1]

In the reporting year, CE funds rolled out amounted toapproximately USD 2.219 million for various community
development programs, charitable initiatives, capacity
building, and infrastructure development. APP collaborated
with 3,756 partners and beneficiary communities, marking
an increase compared to previous years.

The Number of CE Program Beneficiaries Mills
Program

2021

2022

2023

Charity

14,88689,184110,242

Infrastructure

11,45527,04920,726

Capacity Building

52,546

323,848

75,476

Community Development

24,843

158,651

110,666

Total

103,370

598,732

317,110Program

2021

2022

2023

Partners

1,422

1,582

1,800

Beneficiaries Community

1,519

1,724

1,956

Number of Partners and Beneficiary Communities[OJK F.25]

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COMMUNITY ENGAGEMENT
APP is committed to building strong
relationships with the surrounding
community.
This involves open communication and collaboration withstakeholders such as local governments, non-governmentalorganizations, and the local community. By fostering thesestrong relationships, APP can better understand the needs
and aspirations of the community and work together tocreate beneficial solutions for all parties.
We also adhere to the principle of prior informed consent
and stakeholder engagement. Communication with thecommunity is realized through regular consultation forums
held as needed, at least once a year. In efforts to identify
community needs, APP conducts surveys to solicit feedback
and actively participates in Development Planning Meetings(Musrenbang) at the village, sub-district, and district levels.
The importance of Community Empowerment (CE)programs at APP is reflected in the management
processes associated with their implementation. Company
management periodically reviews the implementation ofthese policies and CE programs. This includes evaluating100%
CE Programs are Developed with
Local Communities Involvement[RR-FM-210a.1] [S.4.2.11.3] [S.4.2.11.5] [S.4.2.2.1] [S.4.2.2.6]

the impacts of implemented programs and making
necessary adjustments to enhance their effectiveness andrelevance in response to current needs and developments.
We conduct Social Impact Studies (SIS) in our operational
areas to map stakeholders and their social challenges,
enabling us to develop aligned and sustainable
development plans, as well as appropriate empowerment
programs. This mapping program involves experts andacademics, including partners such as UNSRI (University of
Sriwijaya) and Social Investment Indonesia (SII).
100% of our CE programs are developed involving
local communities and are based on in-depth research.
Consequently, within APP’s operational areas, there are no
significant negative impacts on the community resulting
from our activities. [GRI 413-1] [GRI 413-2]

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CE APP PROGRAM FRAMEWORKAPP has developed the CE program witha focus on empowering communities
and building strong relationships with thecommunity to support self-sufficiency andwell-being. APP believes that sustainable
operations are achieved by creating
a positive impact on the surrounding
communities and the environment inwhich APP operates. This commitment is arealization of the Sustainability Roadmap
Vision 2030 strategy under People
pillar, through which APP is dedicatedto supporting the lives of people in andaround its operational areas. The CE
program is implemented based on therecommendations from the Social Impact
Study (SIS), conducted every 4 to 5 years.
These recommendations form the basis
for a strategic five-year CE program plan,
which is then translated into an annual
short-term work plan. The CE programis executed across 14 mills, six forestry
companies within APP and extended to
SERACS, with an emphasis on community
empowerment initiatives to ensure asustainable positive impact.
In addition to the SIS, APP’s CE Programaligns with government development

programs and adheres to the United
Nations' Sustainable Development Goals(SDGs), specifically SDG 1 (No Poverty),
SDG 2 (Zero Hunger), SDG 3 (Good
Health and Well-being), SDG 4 (Quality
Education), SDG 5 (Gender Equality), SDG
6 (Clean Water and Sanitation), SDG 8(Decent Work and Economic Growth),
SDG 12 (Responsible Consumption and
Production), and SDG 14 (Life Below Water).
To track the progress of activities, theCE program is regularly monitored andupdated in a reporting and monitoring
system that also involves the government,
NGOs, and the community. The CE
program is measured to understand its
deeper impact on the community using
the Social Return on Investment (SROI)
methodology, where the outcomes of the
program are compared with the resources
invested in the community.

Social Impact dan
Stakeholder Assesment(every 4-5 years update)

Monitoring and Evaluation

Program Implementation

Recommendation

5 Years Strategic Plans

Annual Workplan andApproval

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APP’S COMMUNITYEMPOWERMENT FOUR PILLARSCHARITYINFRASTRUCTURE

CAPACITYBUILDINGCOMMUNITY
DEVELOPMENT

Social assistance including
food packages,
mass circumcisions, andfinancial aid.

Provision of public infrastructure
and amenities.

Training, education, campaigns,
and scholarships.

Community empowerment
programs for sustainable
livelihoods - Supporting MSMEs,
farmers, fishermen, and others.

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CHARITYINFRASTRUCTURE DEVELOPMENT[GRI 203-1]

APP has reaffirmed its commitment
to providing aid tailored to theneeds of the community throughspecial programs and support for
local events. By listening to andunderstanding the needs andaspirations of the local population,
APP can design initiatives that are
relevant and effective in enhancing
their well-being.

Assistance and support for village infrastructure play a crucial role in improving thequality of life and strengthening the resilience of local communities. By providing support
for the construction of roads and bridges, economic activities become more efficient,thus accelerating economic growth. For example, agricultural productivity is enhanced as
farmers no longer need to travel long distances from planting to harvest. This efficiency
boosts crop yields and increases farmers' incomes.

Providing holiday assistance(i.e., Eid al-Fitr) to residents
around the company.

Disclosure

Company Profile

Furthermore, with good infrastructure, villagers gain easier access to education,
healthcare, and markets. Some of the infrastructure support provided by APP in thereporting year includes:

Construction of various community social facilities such as places of worship (mosques and prayer rooms), schools, and healthfacilities like maternal and child health centers and community health clinics.
Construction of roads and bridges to facilitate economic access, particularly for agriculture.

Donating sacrificial animals for
the Eid al-Adha celebration.
Giving support to orphans offormer employees and local
residents.

Donation of concrete blocks for the improvement of public facilities and housing renovation in Sumberejo Village (Ekamas
Fortuna).
Construction of housing for those living in substandard conditions (Pindo Deli Karawang).
Utilization of bottom ash waste from coal combustion at power plants to produce multiblock (Tjiwi Kimia).

Employee blood donations for
local Red Cross blood banks.

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CONSTRUCTION OF UNINHABITABLE HOUSES (RUTILAHU)

PAVING BLOCK SUPPORT FOR COMMUNITYINFRASTRUCTURE

From 2017 to 2023, Indah Kiat Serang(IKS) supported the Serang Regency
Government through the Uninhabitable
House Program (Rutilahu). The recipientsof Rutilahu assistance were impoverishedfamilies recommended by the government.
IKS also conducted surveys to verify
the data and conditions of potential
beneficiaries. Funding for this program
came not only from IKS but also from thelocal government and the Indonesian
National Armed Forces (TNI). Additionally,
the local community also participated in thecontribution in the form of labour, materials,
food, beverages, etc. In 2023, six houses
with toilets were built. From 2017 to 2023,
IKS has supported the construction of a
total of 44 housing units.

Fly Ash and Bottom Ash (FABA), commonly
known as coal waste, have gained special
attention due to their potential use in
infrastructure projects such as bricks,
paving blocks, and roof tiles. According toGovernment Regulation No. 22 of 2021,
FABA is now classified as non-hazardous
waste, enabling its optimal utilization forthe benefit of the community, particularly inthe operational areas of Tjiwi Kimia throughits CSR programs. With programs designed
and supported by local governments, Tjiwi
Kimia has been able to positively impact
both the community and the surrounding
environment.

This program received high appreciationfrom the community and the Serang
Regency Government. On several
occasions, the Regent of Serang attended
the symbolic handover of the renovatedhouses. The impact of constructing thesepreviously uninhabitable houses was
directly felt by the beneficiaries, as thehomes became safer, more comfortable,
and healthier. This was in stark contrast
to their previous conditions, where thehouses were unfit for habitation, dirty, andnearly collapsing.

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Each year, Tjiwi Kimia produces
approximately 900,000 paving blocks,
which are distributed to the community,
successfully reducing FABA waste
accumulation and lowering the operationalcosts of FABA management. The
benefits of this initiative are felt by boththe company and the community. In
addition to reducing waste processing
costs, this program also contributes tothe implementation of corporate social
responsibility. Annually, the contribution
to the community is valued at IDR 1.5
billion. From the community's perspective,
infrastructure improvements, such as
school yards, village roads, mosquecourtyards, and other public facilities,
have become safer and more suitable foractivities. To date, a total of 17 schools
and religious educational institutions have
utilized paving block support from FABA.

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CAPACITY BUILDING PROGRAM[GRI 203-2]
APP has made community capacity building
programs one of its core focuses. Through various
initiatives designed to empower local communities,
APP commits to enhancing the quality of life,
education, health, and economic opportunities for
those living around its operational areas. Some of
the capacity building programs include:

Community health promotion, such as dental
health education for elementary school students
in collaboration with RS Wava Husada (Ekamas)
and local health centers.
Support for disaster preparedness and provisionof necessary infrastructure (Ekamas).
Empowerment of people with disabilities.

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COMMUNITY HEALTH PROMOTIONSTUNTING PREVENTION

The company collaborates with Wava Husada Hospital in
Malang to promote healthy lifestyles through community
health campaigns. This program includes education on
hygiene, nutrition, and common diseases, as well as healthscreenings and medical consultations. Implemented in
six areas with up to 500 participants per session, theprogram also targets school children by promoting Clean
and Healthy Living Behaviours (PHBS) and dental healthpractices.

The Posyandu Purinusa program is an initiative launchedby the company to improve maternal and child health. In
2023, the program also focused on combating stunting
by providing supplementary food in the form of local tofu
nuggets to toddlers, benefiting over 400 toddlers andmothers around the company area. These tofu nuggets
are produced by small and medium enterprises (SMEs)
supported by the company. Additionally, Posyandu activities
include maternal and child health check-ups, healtheducation, immunizations, and vitamin distribution. The
company believes that maternal and child health is key to abrighter future.

Health promotion activities are also routinely conducted
at Indah Kiat Perawang and Lontar Papyrus, in partnershipwith local health centers (Puskesmas) and local
governments, involving active community participation.
This program is carried out in areas that are relatively far
from public health facilities. In addition to educating thecommunity about PHBS as a disease prevention measure,
APP also provides free health check-ups.

EMPOWERING PEOPLE WITHDISABILITIES
Purinusa Ekapersada Semarang supports the growth of
SMEs run by people with disabilities in Semarang, Central
Java, by providing innovative training, equipment, andcapital. Through workshops, participants learn to transformwood waste into attractive furniture and handicrafts.
This program also facilitates product marketing throughexhibitions in Semarang, Magelang, and Salatiga. Thisinitiative enhances the economic independence of people
with disabilities, providing them with a monthly income of
one to two million rupiah.

Indah Kiat Tangerang demonstrates its commitment tocommunity health, particularly in the stunting prevention
program around its mill, by supporting the Posyandu
program. The support includes providing supplementary
food (PMT) for toddlers and pregnant women to improvetheir nutrition and health. The PMT provided consists oflocal ingredients such as mung bean porridge, milk, andvitamins. Support for Posyandu is provided to 27 Posyandu
in six sub-districts: Pakulonan, Pakualam, Jelupang,
Ponjati. Additionally, health education, PHBS, and stunting
prevention awareness are conducted in Posyandu activities
for the community.

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EDUCATION AND OUTREACH
PROGRAM [GRI 203-2]
The CE APP Program in education and leadershipdemonstrates the company's commitment to enhancing
the quality of life for the community and building abetter future. These programs provide opportunities
for employees and local communities to develop theirpotential and achieve success. The programs offeredinclude:Ecosystem

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1.

Scholarships for High-Achieving Employees' Children
APP offers scholarships to children of employees who excel academically and pass tests and interviews. This
program helps them pursue higher education.

2.

Talent Development for Future Leadership
APP has a talent development program for employees with the potential to become future leaders. Known as the"talent pipeline," this program has identified six employees in OKI with the potential to replace their superiors within
five years. At Tjiwi Kimia, 69 employees are being prepared for future leadership through this program.

3.

Vocational D4 Scholarships for Local Community Empowerment
In collaboration with the Bekasi Regency government, APP provides vocational D4 scholarships to local residents.
Graduates of this program are prioritized for recruitment at APP’s mills. This initiative is a form of local community
empowerment and prioritizes local hiring.

4.

Scholarships and Educational Discounts at Sinar Mas World Academy
For employees' children, Sinar Mas World Academy offers scholarships and discounts for quality education, enablingthem to receive the best education at affordable costs.

5.

College Scholarships for Underprivileged Communities
Indah Kiat Perawang (IKP) runs a scholarship program for high school graduates accepted into public universities.
In 2023, IKP supported 54 students from various districts in Siak Regency who are currently enrolled in public
universities. The scholarship process includes a preliminary screening test announced in local newspapers, followed
by several stages of selection. Successful candidates receive educational funding for nine semesters, provided they
maintain a minimum GPA of 2.75 on a 4.0 scale each semester.

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FUTURE SKILLS “SUSTAINABILITY IN BUSINESS”

AGRICULTURAL EXTENSION

To prepare young people for a world where
sustainable and responsible businesspractices are increasingly crucial, APP
collaborates with Pijar Foundation andGajah Mada University through the "Future
Skills" program. This initiative connects
industry with students, universities, andfuture talents in Indonesia.

Extension through demplot is the key
to success in enhancing agricultural
productivity. Demplot, short for"demonstration plot," is a program that
directly showcases best farming practices
to farmers, enabling them to learn firsthandfrom practical experience and enhancetheir skills in land and crop management.
APP conducts outreach sessions forfarmers in Jadimulya Village, right on theborder between Air Sugihan District andBanyuasin Regency through demplots.
Farmers are provided with initial fundingof three million Indonesian Rupiah perhectare. Through a rolling approach,farmers are given the opportunity to
optimally utilize their peatlands. This
program isn't just about providing funding;it also educates on the best agricultural
techniques. Through partnerships with
farmer groups and the involvement ofagricultural extension workers, successful
rice demonstration plots serve as examples
for surrounding villages. Thus, the program
not only brings economic benefits but also
shifts the paradigm regarding agricultural

The collaboration aims to introduce
sustainable thinking and empower
young individuals before they enter
the workforce. The program covers
various learning topics, from sustainable
forest management to corporate careerdevelopment. Innovation in sustainability
is a significant component, encouraging
participants of the Future Skills program to
explore sustainable product development.

In 2023, APP conducted two batchesof this program, involving a total of 591
participants from different provinces
across Indonesia. Each session included
brief interactive quizzes to ensure active
participation and valuable feedback
from participants. APP also provided
mentorship to sharpen participants'
skills. Students were required to prepare
final presentations showcasing theirlearning achievements. Upon completion,
participants received grades similar
to university courses, which could be
converted into Semester Credit Units (SKS)
at their respective universities.

Disclosure

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163

potential in peatland areas. By 2023, thesuccess of this program is evident in the
management of 18 hectares by 18 initialfunding recipients.
In Subang, Perusahaan collaborates with
the Department of Agriculture to support
farmers from planting to harvesting. This
collaboration has resulted in a remarkableincrease in rice production. Initially,
average rice yields were around 600
kilograms per season. However, throughcollective efforts and technical guidance,yields have increased to one ton perplanting season, significantly boostingproductivity across a four-hectare area.

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PROKLIM AWARD FOR
ENVIRONMENTAL CONSERVATIONENVIRONMENTAL PROGRAM
As a company committed to social andenvironmental responsibility, the CE program
implemented by APP not only focuses on
economic aspects but also encompasses
various initiatives aimed at protecting andenhancing the environment. The significance ofenvironmental programs within the frameworkof APP’s CE cannot be overstated, as it reflects
the company's commitment to maintaining
ecosystem balance, minimizing negativeenvironmental impacts, and making positive
contributions to nature conservation and overall
environmental sustainability.

The company supports waste management throughthe Maggot Waste Management Assistance Program in
Babagan Penghulu Subdistrict, Bandung. This program
utilizes Black Soldier fly larvae to decompose organic waste
and has benefited approximately 1,000 households across
3 neighbourhoods. With the use of shredding machines,
equipment, and guidance, the maggot method reduces
waste volume by up to 90% and produces organic fertilizer.
Due to this initiative, Babagan Penghulu Subdistrict wasawarded the PROKLIM MoEF Main Certificate in 2023 andhas received substantial environmental and economic
assistance from the government.
In addition to Babagan Penghulu Subdistrict, 13 othervillages under the stewardship of APP also received theMain PROKLIM Certificate award, two villages received theMain PROKLIM Trophy award, and one village achieved thehighest honour, the PROKLIM Sustainable Trophy.

REVIVING THE CITARUM RIVER

90%
Waste Volume Reduced
Using The Maggot Waste
Management Method

Purinusa Ekapersada (PEP) Bandung demonstrates its
commitment to preserving the ecosystem around its mill by
safeguarding the Citarum River. Through the Citarum Harum
program, PEP collaborates with the government and local
communities to plant over 600 trees along the river and in
nearby villages. They also provide cleaning equipment andother assistance. Mill staff actively participate in river cleanups every quarter, alongside educational initiatives aimed atraising environmental awareness among the community.

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164

CONSERVING MARINE LIFE
THROUGH MANGROVE FOREST
MANAGEMENT
Since 2016, PEP Demak, in collaboration with Diponegoro
University and the Tambak Bulusan village community, hasplanted over 40,000 mangrove trees across a 9-hectare
area. This initiative not only protects the coastline from
erosion and supports marine life but also promotes thegrowth of micro, small, and medium enterprises (UMKM)
by utilizing mangrove fruits and leaves for food andbeverage production. PEP Demak supports UMKM byproviding production equipment, empowering women, anddeveloping sustainable businesses.
The community empowerment and environmental
conservation program in coastal areas has been
undertaken by Indah Kiat Tangerang (IKT) since 2019, in
collaboration with local communities and with support
from relevant authorities. From 2022 to 2023, IKT planted
50,000 mangrove seedlings in three planting locations:Patramanggala Village, Kemiri District; TMC Tanjung
Pasir, Teluknaga District; and Ketapang Village, Mauk
District, Tangerang Regency. This brings the total numberof mangroves supported by IKT from 2018 to 2023 to
175,000. During the planting process, IKT worked closelywith mangrove farmer groups from Ketapang Village, theTangerang Regency Government, and the Buddha Tzu Chi
Indonesia Foundation. Concurrently, the local government
has developed the area into an ecotourism zone in
Tangerang Regency.

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TRANSFORMING WASTE INTOECONOMIC STRENGTH
COMMUNITY DEVELOPMENT
PROGRAM [GRI 203-2]

MUSHROOM HOUSE AND
MEDICINAL PLANTS
The cultivation program of oyster mushrooms andmedicinal plants started in January 2023, managed bya PKK group consisting of 14 residents operating on a
profit-sharing basis. Tjiwi granted land use permission formushroom houses and medicinal plant development at adesignated site. The company collaborated with the village
government, where the government constructed mushroom
houses while Tjiwi provided mushroom racks and 1,000
bags of mushroom spawn for planting mushroom seedlings.
The PKK group also achieved recognition for planting
125 medicinal plants and innovating natural beverage
products. Currently, oyster mushroom cultivation operates
independently, yielding 2-3 kg of mushrooms daily.
Mushroom and medicinal plant products are marketed
locally at affordable prices, contributing to the economic
improvement of the surrounding residents.

Since 2019, Indah Kiat Perawang has been actively involvedin processing pallet wood waste to support local economic
development through empowering the Tualang Wood
Working group. This group, consisting of five members,
has successfully transformed this waste into high-quality
products such as tables, chairs, cabinets, and more. As
demand increased, they have readily sought additional
workers, creating broader job opportunities within theircommunity. With full support from Indah Kiat Perawang inproviding raw materials, work equipment, and effective
marketing strategies within and outside of Riau, Tualang
Wood Working has significantly increased its monthly
income to IDR 10 million to IDR 15 million, proving thatsustainable waste management efforts can bring significant
economic benefits to society.

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165"The waste of one person is another's treasure" applies to
two weaving communities using plastic rope waste from the
Indah Kiat Perawang mill to create baskets and other crafts.
Together, these two groups, comprising approximately 60
members, mostly women, produce fruit baskets, tote bags,and various other types of bags. Through this initiative,
members earn additional income ranging from IDR 700,000
to IDR 2 million monthly. Additionally, the company
contributes to government waste management programs
based on the principles of Reduce, Reuse, and Recycle (3R).

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EMPOWERMENT OF WOMEN'S
ECONOMYThe UMKM (Micro, Small, and Medium Enterprises)
training program organized by APP throughout Indonesia
comprised 40 participants in the initial wave of 2022 and50 participants in the second wave of 2023, totalling
90 participants by 2023. This program is a result of
collaboration between the company and the Dr. Sjahrir
Foundation (YDS) – Womanpreneur Community Indonesia(WPC). The training began with identifying potential UMKM
beneficiaries, followed by intensive business incubation
over three months. One participant, Ms. Titin, who has
been running a bread business since 2013, took part in
the business incubation program in 2023. The training
was conducted online with expert mentors covering topics
ranging from business planning to marketing.

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166

EMPOWERMENT OFTAILORING SMESThe UMKM training program provided participants withnew knowledge to enhance their business operations
effectively and measurably. Participants saw a significant
increase in revenue, doubling or more from previous levelsof IDR 600,000 to IDR 700,000. They were also coachedon improving the personal branding of their UMKM
products. After completing the training, top graduates wereencouraged to mentor future participants, strengthening
the network and knowledge within the UMKM community.
Additional benefits of the program included enhancing
participants' ability to manage their businesses, particularly
during festive seasons when orders increase, allowing
UMKM owners to hire additional help. Many graduatesof the business incubation program were also offered
opportunities to become trainers, thus expanding thepositive impact of this training initiative.

This program involves 10 women from Bukit Batu
Village, Air Sugihan District, Ogan Komering Ilir Regency.
Launched in 2022, it provides sewing lessons primarily tohousewives, who receive training from specialists broughtin from Kayu Agung City. The intensive training runs daily
for three months, ensuring participants become proficient insewing. They are also supported with ten sewing machines
to facilitate productive sewing services.
Not only do they save on expenses for purchasing school
uniforms and clothes for their families, but these mothers
also engage in sewing as a business, generating additional
income ranging from IDR 1 to 3 million. Orders comefrom the village government, individuals, and companies.
Previously, community members had to travel to Palembang
for sewing services, but now they benefit from local
seamstresses.
This training program has positively impacted theeconomic well-being of participant families. It supports
Sustainable Development Goals (SDGs), particularly
gender equality, decent work, and economic growth.
By empowering women with skills that enhance theireconomic independence, the program helps reduce genderdisparities and enhances women's roles in both family andcommunity economies.

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ZIDNI'S JOURNEY TO SUCCESS:A TESTAMENT TO UMKM
EMPOWERMENTEMPOWERING WATERMELONFARMERS: A SUSTAINABLE
PARTNERSHIP

Zidni, a once humble Ramadan snack vendor, hastransformed into a thriving bakery and catering business,becoming a household name in the vicinity of the mill.
With unwavering support from PT Lontar Papyrus, Zidni's
remarkable growth trajectory is a testament to thetransformative power of UMKM empowerment initiatives.

CD Center, a sprawling seven-hectare mill, stands
as a beacon of agricultural innovation. Its primary
focus lies in cultivating vegetables and watermelons,
employing two dedicated teams of eight individuals
each. Harvested watermelons embark on a journey toBatam and Jambi, while locally grown vegetables grace
the bustling markets of Tebing Tinggi. Each watermelon
harvest yields a bountiful 20 tons per cycle, with threecycles transpiring annually, generating a revenue of IDR
sixty million. Vegetable harvests, on the other hand,contribute IDR seven million every two months.

In 2019, Zidni's workforce consisted of merely two
individuals. Today, that number has grown to 16, withdaily sales reaching an impressive IDR 4.5 million.
This remarkable progress can be attributed to thecomprehensive support provided by PT Lontar Papyrus,
encompassing business incubation and financial
assistance.

Recognizing the backbone role played by farmers intheir success, the mill has implemented a comprehensive
empowerment program. This initiative extends financial
assistance of IDR 25 million per harvest cycle, alongwith the provision of land for watermelon cultivation.
Vegetable farmers are further empowered throughcapital support for purchasing seeds and fertilizers, aswell as access to additional farming land. Through thisCorporate Social Responsibility (CSR) program, the millaims to not only uplift local farmers but also promotesustainable and responsible
agricultural practices.

Performance Deep-DiveDisclosure

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SUPPORTING THE DEVELOPMENT
OF CATTLE FARMING
The empowerment program for cattle farmers continues
into 2023. Lontar Papyrus has partnered with theAnimal Husbandry Office of Tanjabar District. Under thisagreement, the mill shares responsibilities, where it will
support with a monthly supply of 500 Liters of liquid
nitrogen, capacity enhancement through farmer training,and other forms of assistance. Meanwhile, the Animal
Husbandry Office will provide technical guidance on
cattle breeding, procurement of AI Officers (Inseminators),group organization, and livestock development. The
program aims to improve farmers' access to quality cattle
resources, increase cattle birth rates, and enhance theincome and welfare of farmers. This initiative contributes
to positioning Tanjabbar District as the largest cattleproducing district in Jambi Province.

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CREATING SHARED VALUE (CSV)
THROUGH ORGANIC FERTILIZEREMPOWERMENT GROUPSCSV INITIATIVE THROUGH DIGITALWASTE BANK GROUP SUPPORT(BSD)

In efforts to empower local communities, Lontar Papyrus
supports the use of organic fertilizers in agriculture,including those used by the Industrial Plantation Forest(HTI) of Wirakarya Sakti. Support is extended to the Sido
Makmur Composting Group in Purwodadi Village. The
mill aids the group by enhancing their capacity throughcomposting training, group mentoring, soft loan support,
and infrastructure for compost production facilities. Softloans are utilized to procure trucks for transportation and tobuild warehouses, ensuring the compost remains dry and its
required moisture content is maintained. With this support,
the composting group's production processes become more
efficient and the finished fertilizer becomes more secureagainst rain, thereby preserving its quality.

In alignment with governmental visions, the company iscommitted to increasing the use of recycled paper asa production input for Small and Medium Enterprises(SMEs). To achieve this goal, they have partnered with
the Digital Waste Bank (BSD) to enhance the absorptionof paper waste. Currently, 145 waste collection points areserving over 3,000 clients including communities, schools,
government offices, health centers, and organizations
spread across Serang and Cilegon. The company
collaborates with employee cooperatives of SMEs byforming profit-sharing schemes. This scheme ensures thatcooperatives collecting used paper receive incentives
and continue to work together to enhance the collection,
management, and distribution of recycled paper. Eachmonth, the SMEs absorb nine tons of paper waste throughthis initiative, with potential for future growth. In 2023,
expansion efforts are underway to further establish BSD
networks, including outreach and waste bank establishment
in schools and offices near the mill.

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168

EMPOWERING BAMBOO WEAVING
WOMEN
In efforts to empower women, the company supports agroup of women weavers from Tegalmaja Village engaged
in the Bamboo Collection SME unit of the Tegal Maja
Village-Owned Enterprise (BUMDES). This empowerment
initiative preserves the community's generational traditionof bamboo weaving to support local economic activities.
Bamboo weaving is combined with Paper Machine rope
waste to strengthen and smoothen bamboo weaves,ensuring safety by preventing sharp edges. Support
includes capacity building for women groups skilled inbamboo crafts. Product offerings include various finely
textured items such as baskets, miniature boats, tissue
holders, serving trays, bamboo caps, and more. The
company also supports these groups through businessincubation for SMEs, in collaboration with the Yayasan
Doktor Sjahrir (YDS) – Womanpreneur Community (WPC).
This empowerment initiative has positively impacted
Tegalmaja Village, increasing productivity among women'sgroups and individual incomes ranging from IDR 700,000
to IDR 1,500,000 per month. Currently, crafted products
are sold beyond the region in places like Bekasi, Bogor,
Cikarang, Karawang, and others. In 2023, collaborations
were initiated with Serang District Government to enhance
product quality and expand export markets throughbenchmarking studies, export standard training, and othersupportive measures.

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Several other MSME champions supported by the CSR program of Indah Kiat Perawang include:
No

Type of Program

Description

Achievement

1

UMKM Sido Mulyo(Turmeric Tamarind
and Rengginang)

Joined Smart House (Rumpin) in 2019, participated in training
organized by the company, and obtained a loan from the Rumpin
cooperative.

• Revenue has increased from 1 million per month previously to 3-4 million per month.
• Increased workforce.
• Production, once manual, is now automated with machines.

2

SMSE SmoothBusiness Barokah(Pare Chips)

Joined Rumpin in 2019. Subsequently participated in training in
2022, followed by company-organized training, and obtained aloan from the Rumpin cooperative.

• Turnover increased to 3.5 million per month with a total production of 30 kg per month.
• Establishing a production facility.
• Marketing has expanded beyond the province (Kalimantan).

3

UMKM Sekar-sari
specializes in
handcrafted rattan
weaving and strapping
cord crafts

Assisted by the company since 2020, initially producing only
one type of product. With the support of CE, the product range
expanded to include various types.

• Revenue doubled to 70 million per month with a total production of 30 kg per month.
• Increased workforce from just 7 employees initially to now 25 employees.
• Expanded marketing from Pekanbaru, West Sumatra, to the province of Jambi.

4

Livestock Farming(Lasiman Cattle &Goat Farmers)

Already received training in integrated agriculture, fisheries, andlivestock farming. Received assistance with pregnant cattle in2015.

• The livestock population has rapidly increased, starting from just 3 cows to now 23 cows
and 40 goats.
• We have expanded the farm area by an additional half hectare.
• Our marketing efforts have reached as far as the province of Jambi.

5

MSME Pirlisae(Palm Frond Weaving
Craftsmen)

Initially started crafting from strapping tape (2019). Subsequently
underwent training from a company in 2022. After the training,transitioned to crafting from coconut palm fronds and produced
items such as plates, lampshades, fruit baskets, etc.

• Be a speaker for several workshops since 2019.
• The marketing efforts have reached as far as Jambi Province.
• Achieve a net turnover of 3 million per month by selling one dozen plates every month.

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SUCCESS STORY
Trisna, the owner of "Dua
Bersaudara" bakery
in Lubuk Jering, Riau
Province, opened herbusiness in 2018 after
deciding to leave her officejob to focus on caring forher child.
Facing challenges adapting to this change,
she taught herself baking through YouTube
and Google, then honed her skills further
through government training programsin 2019. In 2023, Trisna participatedin the Business Incubation Program
in collaboration with APP– Dr. Sjahrir
Foundation and Womanpreneur Community
Indonesia, which empowered entrepreneurs
like herself with knowledge and skills.
Her participation in the program earned
Trisna recognition as one of the top 5"Most Improved Participants," which further
motivated her. Her flagship product, sweet
potato pizza pies, was well-received in
Siak District due to its unique flavour using
local sweet potatoes. Selling 50-100 sweet

potato pizza pies daily, Trisna was able
to employ two workers and increase hermonthly revenue from IDR 7 million to IDR
20 million, with net profits ranging from IDR
10 million to IDR 13 million per month.
Her success also led to frequent invitations
as a speaker in women empowerment
workshops by the local PKK sub-district,
where she shares her knowledge on
business and sweet potato processing.
From her business profits,
Trisna invested in purchasing
farmland, tending to hergarden, and building a home,demonstrating the positive
impact of her business onher family's well-being
and the surrounding
community.

10-13

IDR

MILLION

Net profits per month.

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CLEAN WATER COMMUNITYPROGRAMCOMMUNITY DRINKING WATERACCESS SUPPORTSANITATION FOR
PUBLIC HEALTH

Initiated in 2020, this program is a collaboration between Tjiwi
Kimia and the NGO "Habitat for Humanity" aimed at supporting
access to clean water and sanitation in Singkalan Village,
Sidoarjo. The program is managed by the Clean Water andSanitation Management Group in Singkalan, reporting annuallyto the village chief. The raw water source is from deep wells
sufficient for up to 1,000 customers. Prior to this program, thecommunity relied on privately owned wells with inadequate
water quality.

The village of Jadimulya is grappling with poor
groundwater quality characterized by high acidity
levels, leaving residents reliant on rainwater,
boreholes, surface water, and purchased gallon
mineral water from Palembang. The need for clean
drinking water is urgent, especially during the dry
season. In response, the company has constructed
25 units of clean water and drinking water treatment
plants (RO) around the village, managed by locallyappointed village government officials. The
processed water is sold at a lower price than market
rates. Previously purchased at IDR 15,000 per gallon,
residents can now access it for just IDR 7,000 per
gallon.

In Demak, companies have partneredwith the Association of Environmental
Health Experts (HAKLI) to implement theCommunity-Led Total Sanitation (STBM)
program since 2020. This initiative supports
Indonesia's government mission under
SDG 6 - Clean Water and Sanitation by
constructing 40 latrines for lower to middleincome communities around mill areas by
December 2023. Additionally, the program
includes promoting Clean and Healthy Living
behaviors (PHBS), enhancing sanitation
facilities and public awareness, and fosteringa healthier and sustainable future.

Tjiwi provided assistance in the form of a 9-meter high PAM
tower and installation of 1.5 kilometres of pipelines. To ensuresustainability, Tjiwi supported management training for the Clean
Water and Sanitation Management Group. With Tjiwi's assistance,
the cost of installing water pipelines became more affordable,
increasing the number of customers from 36 in 2020 to 136 aftersubsidizing for 100 customers, in addition to reservoir tanks andpipeline installations. Support from the local government in thefollowing year added 65 customers, resulting in a total of 250
customers by 2023. The clean water program also provides freewater to seven small mosques and two larger mosques.
The clean water program has provided significant benefits suchas cost savings for the community and attracting assistancefrom local government agencies. Currently, a similar program isbeing developed in Kramat Village to continue the government's
program that has not been fully implemented, targeting 150
customers across 4 neighbourhood units (RT). Tjiwi is assistingwith installations for 1 neighbourhood unit, demonstrating
ongoing commitment to supporting clean water provision.

Additionally, the company provides preliminary
training through expert vendors in collaboration withthe village government. Demand for treated water
ranges from 30 gallons per day and can spike to 200
gallons per day during the dry season. This program
generates an average net profit of IDR 2,500,000
per month outside the dry season, helping meet theclean drinking water needs of Jadimulya's residents
and enhancing community welfare.

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Performance Deep-DiveCOMMUNITY EMPOWERMENTPROGRAM EVALUATION
APP adopts progressive approachto Evaluating CE Programs using
Social Return on Investment (SROI).
A methodology that underscores ourunwavering commitment to ensuring that
CE endeavours deliver a significant positive
impact on surrounding communities andthe environment.
SROI-based evaluations hold immense
value as they provide a more holistic
understanding of the value generated bysuch investments. This method empowers
companies to meticulously measureand estimate the social, environmental,
and economic value created by their
CE programs. The significance of SROI
assessments further lies in their ability
to furnish clearer insights into theeffectiveness of CE programs. A SROI
value of less than one indicates that thebenefits generated are smaller than the
resources invested. This can serve as
an indication to revise and/or reassessresources invested to enhance the positive
impact of the program. Conversely, a SROI
value exceeding one signifies that thebenefits accrued outweigh the resources
invested, signalling the effectivenessand success of CE programs in achieving
beyond set objectives.
The SROI measurement methodology isapplied across all social, environmental,
and economic impacts of CE programs.
The roadmap involves data collection,
impact assessment, monetary valuation,and SROI ratio calculation. By employing

SROI measurement methods:

Datacollecting

Impactassessment

Monetary value
evaluation

SROI ratio
calculation

this approach, APP can gain a deeper
understanding of the value generated by
its CE investments, enabling it to makemore informed and sustainable decisions
for the future.

Disclosure

Company Profile

172

DISCLOSURESAPP has compiled this report inaccordance to GRI standards to givea clear and concise overview to ourstakeholders.

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ABOUT THE REPORT
APP’s commitment to economic, environmental, andsocial progress is presented in this annual sustainability
report.
This is APP’s 18th annual sustainability report, containing sustainability performance
information from January 1, 2023 to December 31, 2023. The previous report was publishedin June 2022. Several restatements from the previous report are included due to changes
in calculation methodologies, and changes in the reporting of subsidiary entities due to theaddition in three forest management companies.
[GRI 2-3] [GRI 2-4] [OJK C.6]

Performance

Achievements

Performance Deep-DiveDisclosure

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174

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175

ASSURANCEREPORTING STANDARDSThis report has been prepared in accordance with various
relevant standards to provide a comprehensive overview
to stakeholders. The standards applied in this report aremarked with coloured numbering for easy reference.
[OJK G.4]
•
•

•
•
•

GRI standards, marked in dark grey
Financial Services Authority Circular Letter No. 16/
SEOJK.04/2021 on the Form and Content of Annual
Reports of Issuers or Public Companies, marked in grey
TCFD standards, marked in light grey
SASB Forestry Management, marked in grey green
SASB Pulp and Paper, marked in grey blue

This report also serves as a Communication on Progress(COP) for the United Nations Global Compact (UNGC),
reporting our contributions to the Sustainable Development
Goals (SDGs) and the UN Global Compact’s CEO Water
Mandate. We adhere to the recommended guidelines andrelevant indicators to ensure that APP reports its economic,
social, and environmental impacts, as well as climate risk
mitigation activities.

The Company’s Sustainability Report highlights its
sustainability performance in accordance with the
Sustainability Roadmap: Vision 2030 covering three pillars.
These pillars reflect APP’s commitment in accordancewith the operational aspects of its legal entities: PT. Indah
Kiat Pulp & Paper Tbk., PT. Pabrik Kertas Tjiwi Kimia Tbk.,
PT. Pindo Deli Pulp and Paper Mills, PT. Lontar Papyrus
Pulp & Paper Industry, PT. OKI Pulp & Paper Mills, PT.
The Univenus, PT. Ekamas Fortuna, PT APP Purinusa
Ekapersada, PT. Arara Abadi, PT. Riau Abadi Lestari, PT.
Finnantara Intiga, PT. Satria Perkasa Agung, PT. Sumalindo
Hutani Jaya, and PT. Wirakarya Sakti.

For this report, APP has engaged the services of an
independent assurance provider, Bureau Veritas Indonesia,
selected based on its expertise and other requirements
set by the Board of Directors. This assurance provider has
no other employment relationship with APP other than thisassurance service. The assurance report, which adheresto the international AA1000 (AS) standard, is presented on
page 228. [GRI 2-5] [OJK G.1]
We invite all readers to provide feedback for the progress
and improvement of the subsequent report by filling out
the feedback form available at the end of the report orcontacting APP through: [GRI 2-3] [OJK G.2]

PT APP Purinusa Ekapersada (APP Indonesia)
Sinar Mas Land Plaza, Tower II
Jl. M.H. Thamrin No. 51, RT.9/RW.4,
Gondangdia, Kec. Menteng, Kota Jakarta Pusat,
Daerah Khusus Ibukota Jakarta 10350, Indonesia
Email : sustainability@app.co.id

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STAKEHOLDERS

We hear our
stakeholders
loud and clear.

In its pursuit of sustainability, APP is committed to fostering
harmonious relationships with its stakeholders, whilevaluing their valuable input in the strategic decision
making of our organisation and identifying the disclosure
perimeters of our sustainability report.

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STAKEHOLDER ADVISORY FORUM (SAF)
APP established the Stakeholder Advisory
Forum (SAF) as a platform for constructive
dialogue with stakeholders, to obtain up-todate input and discuss the implementationof SRV 2030. This is a proactive step by
the company to ensure active engagement
and transparency in the planning andimplementation processes of sustainability
initiatives.

On July 25, 2023, APP held its 12th SAF,
themed “Resilience through Adversity.” This
event was attended by 200 people fromvarious stakeholders, including customers,
NGOs, local communities, and other key
partners. The SAF provided an opportunity
for face-to-face interaction, encouraged
closer engagement, and facilitatedmeaningful dialogue with external
stakeholders. Presentation materials andmeeting minutes can be viewed in the
SAF section of our website. Additionally,
feedback generated by each SAF isarchived in our Sustainability Dashboard

Additionally, feedback generated
by each SAF is archived in our
Sustainability Dashboard
www.sustainability-dashboard.com

200

PARTICIPANTS

attended Stakeholder
Advisory Forum177

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LIST OF STAKEHOLDERS

Stakeholder

Basis of Identification

TopicsFrequency• Direct Engagement with APP’s Corporate Affairs andCommunication Team• Stakeholder Advisory Forum (SAF)• As necessary• Bilateral/multilateralmeetings• NDPE dan social standard• Product carbon intensity• Product traceability or chain of custody

•
•
•
•

Direct Engagement by Finance Team and Tax Team
Sustainability Monitoring Dashboard
Social Media
Stakeholder Advisory Forum (SAF)

Day-to-day, case by caseas required• Dependency• Influence• Responsibility• No Deforestation, No Peat, No
Exploitation (NDPE), and social
standards• Product carbon intensity• Product traceability or chain of custody• Product quality• Direct engagement by the Global Sales Team andStakeholder Engagement Team• Sustainability Monitoring Dashboard• Social Media• Stakeholder Advisory Forum (SAF)

Day-to-day, case by caseas required

Employees

•
•
•
•
•

Dependency
Influence
Responsibility
Concern
Geographical Proximity• Occupational Health and Safety• Diversity and Equality• Business Ethics• Various Internal Communication Channels• Skills training and certification• Equal opportunities policies and career consideration
based on employee performance appraisals

Day-to-day, case by caseas required

Communities

•
•
•
•

Dependency
Influence
Responsibility
Geographical Proximity

•
•
•
•

• Stakeholder Advisory Forum (SAF)• Bilateral/multilateral meetings

As necessary

Suppliers• Dependency• Influence• Responsibility• Forestry Management Practices• Third-Party Certifications• Supplier Assessments• Direct Engagement with Forestry Division and Chain of
Custody Certification Team for Forestry Products• Direct Engagement by APP’s procurement function for
non – forestry products and services

As necessary

Contractors• Dependency• Influence• Responsibility• Health and Safety• Business Ethics• Direct engagement via mill procurements teams
through meetings• Regular meetings to discuss safety

Day-to-day, as required

Government

•
•
•
•

Shareholders andInvestors• Dependency• Influence• Responsibility

Customers[GRI 2-29] [OJK E.4]

Dependency
Influence
Responsibility
Geographical Proximity

•
•
•
•

Engagement Method

Pulpwood Supplier Management
Compliance
Environmental Performance
Economic Impacts

Pulpwood Supplier Management
Compliance
Environmental Performance
Economic Impacts

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Basis of Identification

Approach

Strategy

Performance

TopicsAchievements

Performance Deep-DiveDisclosure

Engagement Method

Company Profile

Frequency

NGO’s• Influence• Responsibility• NDPE Commitments• Human Right• Land Dispute Management

•
•
•
•
•

Regional social working groups
SRV update meetings and events
Conflict resolution efforts
Sustainability dashboard
Stakeholder Advisory Forum (SAF)

As necessaryMedia• Dependency• Influence• Responsibility

•
•
•
•

•
•
•
•
•

Direct engagement
Media briefings
Press release
Sustainability update events
Mill visit

As necessary

Academic Institutions• Knowledge Advancement• Joint Research and Studies• CE Programs

Direct outreach from our sustainability division, Joint
research, and Study Team, and local CE teams based at
our mills and forestry suppliers

As necessary

Industry Associations• Dependency• Influence• Responsibility• Environmental Performance• Industry Compliance• CE Programs

Engagement through associations such as the Indonesian
Pulp and Paper Association (APKI), and the Indonesian
Forest Concessionaires (APHI)

As necessary

Sustainability Progress Updates
Mill CE Programs
Product
Field Visit

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Message from Top Management

APP actively engages
in collaborations withvarious stakeholders aspart of its commitment
to advancing
sustainability
initiatives.

Ecosystem

Approach

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Performance

Achievements

Performance Deep-DiveDisclosure

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180

Through these collaborations, the company aims to create a positive and sustainable impact
on the environment and society. The collaborations undertaken during the reporting year
include:
1.
2.

3.
4.

5.
6.

7.

Collaboration with the Carbon Reduction Institute to prepare a pilot project for carbonneutral photocopy paper products from Indah Kiat for the global market.
Collaboration with the Center for International Forestry Research (CIFOR) throughfacilitating free online training on green finance for sustainable landscapes for APP’s
fostered MSMEs.
Collaboration with Social Investment Indonesia to conduct Social Impact Study at APP’s
mills.
Collaboration with Doktor Sjahrir Foundation and the Indonesia Womenpreneur
Community in a business incubation course for 40 Micro, Small, and Medium Enterprises(MSMEs) in the mill and forestry program.
Collaboration with Gita Buana for the Empowerment Program for Indigenous People(SAD) in Sungai Paudi village, Jambi Province.
Collaboration with the Foundation for International Human Rights Reporting Standards(FIHRRST) to conduct a Human Rights Due Diligence Assessment at the OKI mill and oneof its suppliers (PT Bumi Andalas Permai - BAP).
Collaboration with Eco Nusantara for conflict resolution and accelerating multistakeholder conflict resolution.

STAKEHOLDER ENGAGEMENT IN DETERMINING
MATERIAL TOPICS
The process of determining material topics for this report has been discussed in the“Strategy” chapter. We greatly appreciate the input and opinions of all stakeholders.
Stakeholders have an interest in the company’s activities and valuable insights into the mostsignificant issues to them and the wider community. Their perspectives are crucial in shaping
the materiality assessment, ensuring that the sustainability report addresses topics relevantto those impacted by the company’s operations.

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Through various engagement channels, such as surveys, workshops, and interviews, the company gathered input from internal and external
stakeholders to identify the most significant ESG issues. This input is then analysed along with internal data and industry benchmarks todetermine the material topics to be disclosed in the sustainability report.

The following are the material topics and their impacts:
Topic

ImpactDisclosure Number

Economic Performance and Impact

Has an impact on shareholders and other stakeholders

201-1, 201-2, 201-3, 201-4

Market Presence

Has an impact on shareholders and stakeholders

202-1, 202-2

Indirect Economic Impact

Has an impact on the wider community, particularly those served through APP’s CE programs.

203-1, 203-2

Procurement Practices

Has an impact on the local economy.

204-1

Anti-Corruption

Has an impact on the trust of shareholders, the community, and other stakeholders.

205-1, 205-2, 205-3

Tax

Has an impact on public trust and welfare, as well as compliance with the government.

207-1, 207-2, 207-3, 207-4

Materials

Has an impact on sustainability, environmental conservation, and cost savings for APP

301-1, 301-2, 301-3

EnergyHas an impact on sustainability, environmental conservation, andcost savings for APP

302-1, 302-3, 302-3, 302-4, 302-5.

Water and EffluentsHas an impact on sustainability and environmental conservation.

303-1, 303-2, 303-3, 303-4, 303-5,

Biodiversity

Has an impact on sustainability and the conservation of various species.

304-1, 304-2, 304-3, 304-4

EmissionsHas an impact on sustainability, particularly in terms of global warming.

305-1, 305-2, 305-3, 305-4, 305-5, 305-6, 305-7

Waste

Has an impact on sustainability and environmental conservation

306-1, 306-2, 306-3, 306-4, 306-5

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Topic

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

ImpactCompany Profile

Disclosure Number

Supplier Environmental
Assessment

Has an impact on sustainability and environmental conservation

308-1, 308-2

Employment

Has an impact on employee comfort and performance

401-1, 401-2, 401-3

Labor/Management Relations

Has an impact on employee comfort and performance402-1

Occupational Health and Safety

Has an impact on employee comfort and performance403-1, 403-2, 403-3, 403-4, 403-5, 403-6,
403-7, 403-8, 403-9, 403-10

Training and Education

Has an impact on employee morale and performance

404-1, 404-2, 404-3,

Diversity and Equal Opportunity

Has an impact on employee comfort and performance

405-1, 405-2

Non-discrimination

Has an impact on employee comfort and performance

406-1

Child Labor

Has an impact on work comfort, public trust, and community welfare.

408-1

Forced or Compulsory Labor

Has an impact on work comfort, public trust, and community welfare

409-1

Security Practices

Has an impact on consumer trust.

410-1

Local Communities

Has an impact on the welfare of the community as a stakeholder

413-1, 413-2

Public Policy

Has an impact on sustainability

415-1

Marketing and LabelingHas an impact on consumer trust.

417-1, 417-2, 417-3

Product Responsibility

Has an impact on consumer trust

417-1, 417-2, 417-3

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IMPACT OF THE
COMPANY’S PRESENCEAPP recognizes that its success is
inextricably linked to the natural
resources derived from forests.
Therefore, we are committed to minimizing theenvironmental impact of our operations and fostering
sustainable partnerships. This commitment is realized
through the implementation of responsible forestry
practices, the purchase of pulp from certified suppliers,
and the implementation of the Supplier Evaluation and Risk
Assessment (SERA) to ensure compliance with the Forest
Conservation Policy (FCP) and Sustainability Commitment.
Going beyond mere resource extraction, APP aims to
make a positive impact on the communities surrounding its
operational areas. Through Community Empowerment (CE)programs designed in collaboration with local communities,
we strive to enhance livelihoods, environmental awareness,
access to education and healthcare, and greenhouse gas(GHG) emissions reduction.
APP’s success in achieving its sustainability goals cannot
be achieved alone. We are committed to collaboratingwith a wide range of stakeholders, including communities,
governments, non-governmental organizations (NGOs),
customers, and investors. Openness and transparency are
key to building strong and mutually beneficial relationships.

[OJK D.1.c]

Sustainability is not just a responsibility, but also an
opportunity to build a better future. With commitment
and collaboration, APP is optimistic that it can effectively
manage risks by minimizing negative impacts on theenvironment and communities while maximizing positive
impacts. We believe that together, we can achieve a moresustainable future for all.

Performance Deep-DiveDisclosure

Company Profile

183

COMPANYPROFILEAs a pulp and paper company with a global
footprint, we are committed to sustainable andresponsible innovation. We prioritize collaboration
to ensure a better future for our customers,
communities, employees, shareholders, and you.

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COMPANYPROFILE

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

185

PT APP Purinusa Ekapersada(APP Indonesia, APP) is a pulp andpaper producer headquartered inIndonesia.
With over 30,000 employees and an annual conversion
capacity of over 20 million tons. Through branch and sales
offices in several countries, APP markets its products toover 150 countries spanning six continents.

VISION AND VALUESAs a global pulp and paper company, we are committed
to sustainable and responsible innovation. We prioritize
collaboration to ensure a better future for our customers,
communities, employees, shareholders, and you.

WE VALUE:
•
•
•
•
•

[OJK C.1]

Our employees, who are an integral part of APP’s
success.
The environment, as we are a sustainable business.
Our customers and suppliers who sustain our business.
Our shareholders and the global community to whom
we are accountable.
The principles of good governance as we continue tobuild a sustainable business.

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Sinar Mas Land Plaza, Tower II [GRI 2-1] [OJK C.2]
Jl. M.H. Thamrin No. 51, RT.9/RW.4,
Gondangdia, Kec. Menteng, Kota Jakarta Pusat,
Daerah Khusus Ibukota Jakarta 10350, Indonesia

PT APP Purinusa
Ekapersada[GRI 2-1]

Strategy

Performance

Achievements

sustainability@app.co.id

Performance Deep-DiveDisclosure

Company Profile

Subsidiaries included in this Sustainability Report.
Subsidiaries that are public companies or offer financial
instruments such as bonds and sukuk to the public
have published separate financial reports through therespective companies’ Annual Reports. [GRI 2-2]

Legal Entity

PT APP Purinusa
Ekapersada

PT Indah Kiat Pulp &Paper Tbk

PT Pindo Deli Pulp
and Paper Mills

PT Pabrik Kertas
Tjiwi Kimia Tbk

PT Ekamas Fortuna

PT Lontar Papyrus Pulp
and Paper Industry

Mill(known as)

Purinusa Ekapersada Semarang,
Purinusa Ekapersada Demak,
Purinusa Ekapersada Bandung,
Purinusa Ekapersada Subang

Indah Kiat Perawang, Indah Kiat
Tangerang, Indah Kiat SerangPindo Deli Karawang (mill 1, 2, 3),
Pindo Deli Perawang

Tjiwi Kimia

Ekamas Fortuna

Lontar Papyrus

Legal Entity

PT OKI Pulp &Paper Mills

PT The UnivenusMill(known as)

OKI

Univenus Perawang

Legal Entity

PT Arara Abadi

PT Riau Abadi Lestari

PT Satria Perkasa
Agung

PT Wirakarya SaktiPT Finnatara Intiga

PT Sumalindo Hutani
Jaya I & II

Forestry Management(known as)

Arara Abadi / AA

Riau Abadi Lestari / RAL

Satria Perkasa Agung / SPA

Wirakarya Sakti / WKS

Finnantara / FISHJ 1, SHJ II

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EkosistemEcosystem
Pendekatan
ApproachStrategi
Strategy Kinerja
Performance
Pencapaian
Achievements
2023
Tinjauan
Performance
Kinerja Deep-Dive
Pengungkapan
Disclosure

PRODUCTS

Pulp

Paper

TissuePackaging

Stationery

Surgical
masks

MARKET SERVED
Publishing industry, packaging industry,sanitation and hygiene products, industrial
applications, food and beverage industry,retail and consumer goods, education
sector, and office supplies.

[GRI 2-6] [OJK C.4]

Company Profile

187

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188

SUPPLY CHAIN
APP’s supply chain encompasses a series of stages, from raw pulpwood materials to finishedproducts. This includes raw material suppliers (wood pulp and recycled fiber), production material
suppliers, labour contractors, distribution process, and recycling process.

COMPANY SCALE

Total Employees[OJK C.3.b]

Total Assets[OJK C.3.a]

Total Liabilities

Operational
Areas[GRI 2-6][OJK C.3.d]Marketing
Areas[GRI 2-6][OJK C.3.d]

Legal Entity[GRI 2-1][OJK C.3.c]Ownership[GRI 2-1][OJK C.3.c]

Titan (MY)Sdn. Bhd
Sinclair Ventures

150

Pte Ltd

countries in

33,044USD

31.9
billionUSD

12.2

billion

Java, Sumatra,
and Kalimantan
Islands

In the reporting year, there were no significant changes to the company’s activities, supply
chain, or corporate structure. [OJK C.6] [GRI 2-6]
[GRI 2-6] [OJK C.3]

6

continents

Limited Liability
Company

Othershareholders
below 6%

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COMPANY HISTORY

1972

1975

1976

1982

1990

1991

APP was started its
business in 1972 througha caustic soda (Sodium
Hydroxide) plant named
PT Tjiwi Kimia, which
later become PT Pabrik
Kertas Tjiwi Kimia Tbk. in
Mojokerto Surabaya.

Established PT Pindo
Deli Pulp & Paper Mill in
Karawang, West Java.

Established PT Indah Kiat
Pulp & Paper - TangerangMill.

Established PT Ekamas
Fortuna in Malang, EastJava.

PT Pabrik Kertas Tjiwi Kimia
conducted its initial public
offering.

PT Indah Kiat Pulp &Paper - Serang Mill wasestablished.

1994

2004

2012

2013

2017

PT Lontar Papyrus Pulp
& Paper commenced
commercial operations.

PT The Univenus
commenced commercial
operations.

Launch of SRV 2020,
followed by launch of SRV
2030 in 2020.

Forest Conservation Policy
was launched.

PT OKI Pulp & Paper Mills,
located in South Sumatra,
commenced its business
operations.

189

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ASSOCIATIONMEMBERSHIP
APP is part of various industry
organizations as a form of strategic
collaboration to promote sustainable
policies, practices, and goals. Thismembership serves not only as a means tostay up-to-date with the latest information
but also to share experiences with otherstakeholders.

Ecosystem

Approach

Association Name

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Role

Level

Indonesia Pulp & Paper Association (APKI)

Deputy Chairman

NationalIndonesian Forest Concessionaires (APHI)

Board Member

NationalIndonesian Association for Clinical Chemistry (AKIDA)

MemberNationalIndonesian Public Listed Companies Association (AEI)

MemberNational

Peat Society of Indonesia (HGI)

MemberNationalIndonesian Employers Association (APINDO)

MemberNational

Committee Chairman

National

Role

Level

UN Global Compact Network

Signatory member

International

Indonesia Global Compact Network (IGCN)

Board of Founders

National

UNGC CEO Water Mandate
Indonesia Water Mandate Working Group

Steering Board

NationalIndonesia Business Council for Sustainable
Development (IBCSD)

Executive Committee

National

MemberInternational

Indonesia Chamber of Commerce(KADIN Indonesia)

Initiative

Consumer Goods Forum (CGF)• Forest Positive Coalition• Human Rights Coalition• Sustainable Supply Chain Initiatives[GRI 2-28] [OJK C.5] [E.1.2.7.1.6]

Strategy

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Company Profile

GOVERNANCE COMPOSITION AND STRUCTURE

Board of Commissioners

Audit Committee
Nomination & Remuneration Committee

Committee: (Internal)• Procurement andSupply Chain
Committee• Sales & Marketing
Committee• Forestry Leadership
Committee• Sustainability
Committee

Board of Directors

COO Pulp

COO Tissue

BU HeadTissue(Domestic)[GRI 2-9]

COO
Forestry

COO Paper

BU Head Pack
Commerce& StationeryPaper

BU HeadTissue(International)

CFO

BU HeadPaper• Ethics Committee• People Committee• Financial Committee• Business
Development
Committee

Chief• Sustainability• Corp. Affar & comm.
• Risk & Integrity• Resilience• Commercial License& Import• Internal Audit• Human Resources• Information
Technology• MBOS• Logistic• Procurement• Automation• Legal191

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192

GENERAL MEETING OF SHAREHOLDERS (GMS)
The General Meeting of Shareholders (GMS) is a crucial forum in corporations where shareholders convene to discuss various strategic decisions for the company. The GMS holds the highest
authority, that is not granted to the Board of Commissioners and the Board of Directors. Decisions made at the GMS include ratifying financial statements, establishing company policies, electing
and dismissing members of the Board of Directors, and determining remuneration for management. The primary role of the GMS is to provide a platform for shareholders to participate indecision-making that affects the company’s direction and health. Additionally, the GMS plays a role in ensuring management’s accountability and transparency to shareholders.

BOARD OF COMMISSIONERSThe Board of Commissioners is a supervisory
body within a company tasked withensuring that the company’s management
is run effectively and in the best interests ofshareholders. The Board of Commissioners
has the authority to provide strategic direction
to management, oversee company policies,and evaluate executive performance. The
primary roles of the Board of Commissioners
include the selection and evaluation ofBoard of Directors members, overseeing thecompany’s compliance with regulations andethical standards, and making decisions on
crucial matters such as corporate restructuring
or mergers and acquisitions.
APP implements the principle ofindependence in the structure of its Boardof Commissioners, ensuring that Boardof Commissioners members do not havedirect interests in the company’s operations.
Within the Board of Commissioners, several
committees are responsible for specific

BOARD OF DIRECTORS
functions, such as the Audit Committee,
the Nomination and Remuneration
Committee, and the Compliance
Committee. The committees assist theBoard of Commissioners in carrying out
its duties more efficiently and thoroughly.
The Audit Committee is responsible foroverseeing the company’s compliancewith accounting regulations andprocedures, while the Nomination andRemuneration Committee is responsible
for the selection, evaluation, andcompensation process of Board of
Directors members. Meanwhile, theCompliance Committee is responsible
for ensuring that the company complies
with applicable regulations and ethicalstandards. Thus, through an independent
Board of Commissioners structure andeffective committees, APP can maintainthe quality of supervision and sounddecision-making in conducting its
business operations.

The terms of office, duties, andresponsibilities of the Board ofCommissioners can be found here

The Board of Directors of APP is
responsible for making strategic decisions
and overseeing management. The
Board of Directors has the authority
to set the company’s long-term goals,
monitor management performance,and make critical decisions that affectthe company’s direction and growth.
The Board of Directors’ role includes
selecting and overseeing executive
management, assessing risk, and financial
and investment policies. They are also
responsible for ensuring that the company
operates in compliance with applicableregulations and standards.
APP applies the principle of independence
in the Board of Directors structure by
not having Board of Directors members
who are also members of the Board ofCommissioners. This is carried out toprevent conflicts of interest and ensurethat Board of Directors’ decisions are
made objectively in the overall and bestinterests of the company. By separating
the roles of the Board of Directors and theBoard of Commissioners, APP reaffirms

its commitment to good governancepractices and transparency in decisionmaking, thereby providing confidence toshareholders and other stakeholders.
[GRI 2-11]
In the context of sustainability, the Board ofCommissioners and the Board of Directors
play a crucial role in approving thecompany’s strategies and policies related
to the implementation of sustainability
within the Company, as well as socialand environmental responsibilities. The
Board of Commissioners and the Boardof Directors also oversee the company’s
impact on economic, environmental,
and social aspects. Through the GMS,
shareholders can provide input andfeedback on the company’s endeavours topromote sustainability. [GRI 2-12] [GRI 2-13]

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Performance Deep-DiveNOMINATION AND
SELECTION PROCESSGOVERNANCE BODY
TRAINING

The selection process for the Board ofCommissioners and the Board of Directors is
carried out by the Nomination and Remuneration
Committee (NRC), beginning with identifying
the need for members of the Board ofCommissioners and the Board of Directors thatalign with the company’s requirements. The
NRC also establishes criteria for candidates
for the Board of Commissioners and the Boardof Directors. The committee then reviews
potential candidates who meet the establishedcriteria, including expertise, experience, andindependence.

Equipping business leaders with comprehensive training is crucial to ensure
they possess a comprehensive understanding of critical issues surrounding
corporate governance, including sustainability aspects. This training empowers
them to effectively grasp their roles and responsibilities, while also cultivating thecompetencies required to make informed and sustainable decisions. By gaining
a deeper understanding of relevant environmental, social, and governance (ESG)
issues, the Boards of Commissioners and the Board of Directors can more effectively
contribute to the formulation of strategies, policies, and practices that foster
sustainable corporate growth.

After the candidates are selected, the Nomination
and Remuneration Committee evaluates their
qualifications and ability to fulfil the expected
duties and responsibilities of a member of theBoard of Commissioners and the Board of
Directors. This process often involves interviews,
assessments of track records, and reference
checks. The committee also develops capacitybuilding programs for members of the Board ofCommissioners and the Board of Directors.
Subsequently, the committee makes
recommendations regarding the appointmentof members of the Board of Commissioners to
the General Meeting of Shareholders (GMS)
for final approval. This process ensures thatthe appointment of members of the Board ofCommissioners and the Board of Directors isbased on careful consideration and takes into
account the company’s best interests.
[GRI 2-10] [GRI 2-17] [OJK E.2]

Within the organizational structure, APP personnel are divided into two levels:
management and non-management. The management level is responsible forgovernance functions within the organization. The following are the training programs
attended by APP management employees:•
Managerial training: leadership development programs, training on becoming an
influential leader, how to train and develop new leaders, communication training.
•
Compliance training: ISO 9001, ISO 14001, ISO 45001, social audits, health andsafety.
•Governance training: Business Code of Conduct, human rights.

Compliance training:
Audit Social, Health & Safety

Disclosure

Company Profile

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GOVERNANCE BODY
EVALUATIONGOVERNANCE BODY
REMUNERATIONAPP evaluates the performance of theBoard of Commissioners and the Boardof Directors using a balanced scorecard
that emphasizes four key areas: finance,
customers, processes, and organization.
This performance evaluation is designed
to assess both individual performance andthe overall performance of the Board ofCommissioners and the Board of Directors.
Evaluations are conducted annually, andindividual target weights are adjusted
based on the roles and responsibilities ofeach member.

Remuneration for the Board ofCommissioners and the Board of Directors
includes components such as salaries,
honoraria, incentives, and/or allowances,both fixed and variable. The determinationof the structure, policies, and amount of
remuneration considers various factors,
including industry standards relevant to theCompany’s business activities and scale,as well as the duties and responsibilities
of board members. Additionally, otherfactors such as performance targets or
achievements are carefully considered toensure that remuneration is aligned withindividual contributions and demonstrated
performance. In addition to considering
individual performance, the determinationof remuneration also considers thebalance between fixed and variable
benefits, considering various risk factors
and the company’s financial stability. Thisholistic approach aims to ensure that the
remuneration provided to the Board ofCommissioners and the Board of Directors
is aligned with their contributions to thecompany and simultaneously fosters theachievement of the company’s overall
goals. [GRI 2-19]

In addition, for managerial positions andabove, APP implements a 360-degree
feedback assessment. Individual
performance is evaluated anonymously bysuperiors, peers, and subordinates. Thisapproach helps ensure that evaluations are
conducted holistically, fairly and provides
comprehensive feedback to assist in thedevelopment and improvement of theBoard of Commissioners and the Board of
Directors.

[GRI 2-18]

Performance

Achievements

Performance Deep-DiveThe steps in this process include
identifying the company’s needs, reviewing
relevant industry practices and regulations,evaluating individual performance, andconsulting with relevant parties such as
senior management and external auditors.
The determination of remuneration also
considers various factors such as job
responsibilities, risk levels, performanceachievements, and the balance between
fixed and variable components. The
determined remuneration packages arethen presented to the Board of Directors or
the General Meeting of Shareholders (GMS)
for final approval before implementation.
This process ensures that the remuneration
packages are aligned with good corporate
governance principles and support theachievement of the company’s goals.
[GRI 2-20]
APP does not disclose total annualcompensation for confidentiality reasons.
[GRI 2-21]

Disclosure

Company Profile

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COMPANYSUSTAINABILITY VALUE
APP’s unwavering commitment to climate action and sustainability is embodied in its Sustainability Roadmap Vision (SRV)
2030. SRV 2030 is APP’s strategy with clear sustainability goals anchored in three core pillars: product, forest, and people.
These sustainability values are elaborated as follows:

PRODUCT
APP is committed to producing eco-friendly products
while considering their entire life cycle. We strive to
reduce the environmental impact of our production
process, from raw material selection to the use of
eco-friendly energy and the disposal of end products.
Sustainable innovation is at the core of our productdevelopment, with a focus on resource efficiency,
recycling processes, and biodegradable products.

FOREST
APP is committed to managing forests responsibly,
ensuring that our forest management complies withinternational sustainability standards. Conservation
and rehabilitation of natural habitats, deforestation
control, and sustainable logging operations are an
integral part of our environmental protection strategy.
Specifically, APP develops conservation programs forprotected species, both flora and fauna.

APP regularly monitors and reports on the progress of SRV 2030 through sustainability reports and other platforms.
This is to ensure transparency and accountability to stakeholders.
[OJK D.1.a]

PEOPLEAPP is committed to creating a fair, inclusive, andsustainable work environment. We support careerdevelopment and employee wellbeing, as well as invest
in training and development to ensure our team isalways ready to face future challenges. In addition, APP
demonstrates its concern for the community throughvarious CSR programs that address community needs
and improve their welfare.

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LEADERSHIPCOMMITMENT
Achieving sustainability goals is impossible
without the commitment and support ofcompany leadership. The most crucial
aspect of this support is appointing asustainability officer. APP has a dedicatedteam led by a Chief Sustainability Officer(CSO) responsible for implementing
sustainability strategies. [OJK E.1]
Beyond internal operations, APP’sleadership actively participates in global
sustainability initiatives. Various global
initiatives and frameworks have been
designed to address climate change. FOLU
(Forestry and Other Land Use) Net Sink
2030 is one such concept that highlights
the crucial role of the land and forestry
sector in greenhouse gas emissions
mitigation. FOLU encompasses land andforest management to enhance carbon
sequestration and reduce emissions, acritical step in mitigating climate change
impacts. This target aims to achieve a
condition where the sector becomes a net
sink of greenhouse gas (GHG) emissions
by 2030. As one of Indonesia’s largest
forestry companies, APP plays a significant
role in contributing to this target. Therefore,
APP implements sustainable forest
management, technological innovations,[OJK D.1.a] [OJK D.1.b]

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

196

PERFORMANCE, ACHIEVEMENTS,
AND CHALLENGES
and conducts education to raise publicawareness.
In addition, APP also supports COP 28(28th Conference of the Parties), an annual
conference held by United Nations
Framework Convention on Climate
Change (UNFCCC) member countries
held in Dubai in November 2023. APP’scommitment to sustainability is evident in
the attendance of its Chief Sustainability
Officer at COP 28. In addition, APP is also
actively involved in various international
forums related to climate change, suchas the UNFCCC and the World Economic
Forum. APP also collaborates with various
non-governmental organizations andacademics to develop innovative solutions
to address climate change, manifested in
the Sustainability Roadmap Vision 2030.

The year 2023 was a year full of both challenges and opportunities. During the reporting
period, APP recorded various achievements and performances.
From an economic perspective,
APP remains one of the largest
pulp and paper companies inIndonesia, contributing significantly
to the national economy with net
sales of USD 8,534 million in 2023.
Additionally, APP contributed US$
289.87 million in taxes revenue.
Moreover, the group createdemployment opportunities for 33,044
people.
From an environmental perspective,
APP continues to promote
environmental protection by
employing cutting-edge technologies,
such as the Forest Alert System,
which utilizes RADARSAT-2 satellite
technology. This system can monitor
through clouds and smoke, evenenabling the detection of a single
felled tree. In recognition of its
environmental conservation efforts,
APP received the Award for Best
Partner of MoEF in 2023 and theProklim Award from the Ministry ofEnvironment and Forestry. APP’s

subsidiaries, Indah Kiat Perawang
and Tjiwi Kimia, received theIndonesia Green and Sustainable
Companies Awards (IGSCA) 2023
from SWA. Further details on otherawards can be found in this reporton page 53 - 55.
From a social perspective, APP
also received various awards,
including: the 2023 Occupational
Safety and Health Award from the
Banten Provincial Government,
and the 2023 Banten Provincial
Occupational Safety and Health
Advisory Committee Award fromthe Governor of Banten. Theseawards reflect APP’s achievements
and concern for the health, safety,
and welfare of its employees.
APP’s contributions to thecommunity were also recognizedwith the 2023 Top CSR Award.

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197

COMPANY IMPACT AND
RISK MANAGEMENT
However, the implementation ofsustainability initiatives is not without
challenges. One of the biggest challenges
faced by APP is the still relatively low
market demand for eco-friendly products.
Products that meet sustainability standards
tend to have higher production costs,
which in turn makes the selling priceof these products more expensive
compared to conventional products.
To address this, APP is continuously
working to raise awareness about thepositive environmental impacts by using
environmentally friendly products andencouraging consumers to pay more, tousing third-party certified (i.e., FSC andPEFC) products.
Another challenge is that sustainability
regulations and policies, both at thenational and international levels, are still
evolving and not yet finalized. This poses achallenge for companies like APP to adapt
their operations to frequently changing
regulations. In response, APP actively
participates in dialogue and consultation
with governments and international
institutions to help shape clearer andmore supportive sustainability policies.

[OJK D.1.c]

The company is also developing flexible
and adaptable operational systems toregulatory changes.
Gaining the commitment of all
stakeholders, including employees,
suppliers, and business partners, tosupport sustainability initiatives can also
be challenging. Not all parties may havethe same understanding or interestsin sustainability. To address this, APP
engages in communication and dialogue
with stakeholders, in addition to providing
education and training on sustainability.
Despite facing these various challenges,
APP remains committed to implementing
sustainable practices across its operations.
With a holistic and adaptive approach,
APP continues to strive to ensure that
all aspects of its production are alignedwith sustainability principles for the longterm benefit of the environment and thecompany.

We recognize that APP’s operations involve
natural resources derived from forests.
For this reason, APP strives to minimize
these impacts. In addition to sustainable
forest management, APP also emphasizes
a policy of purchasing pulp from supplierswith sustainable forest management
certificates. In making purchases, APP
implements a Supplier Evaluation and Risk
Assessment (SERA) to screen and ensurethat our suppliers adhere to our Forest
Conservation Policy (FCP) and SERA.
In relation to communities, APP strives
to expand its positive impact throughCE programs designed in collaboration
with local communities. Communities can
express their aspirations and complaints
through available grievance reporting
mechanisms. APP also evaluates its key
CE program, the DMPA program, using
Social Return on Investment (SROI).
The evaluation results indicate that the
DMPA program has helped to increase
the income of communities within APP’s
operational areas, in addition to raisingcommunity awareness of the importanceof environmental conservation. The DMPA
program has also helped to improve

community access to education and health.
Another very encouraging result is that the
DMPA program has helped to reduce GHG
emissions through activities such as tree
planting and forest fire prevention.
In the face of the complexities ofsustainability challenges, APP has
committed to implementing comprehensive
risk management that encompasses
critical aspects that can affect thecompany’s sustainability and reputation.
With a comprehensive risk management
approach, APP strives to minimize negative
impacts and maximize positive impacts
from its sustainability initiatives. In thisway, APP can reaffirm its commitment
to achieving sustainability goals while
ensuring the long-term sustainability of its
business.

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Approach

Strategy

EXTERNAL SITUATION ANDSUSTAINABILITY IMPLEMENTATION
The implementation of sustainability
initiatives faces several challenges,
including the low public awareness ofsustainable products. This has resulted
in limited demand for biodegradable
products, as consumers are not yet willingto pay more for sustainable products.
Additionally, regulatory frameworks arestill evolving, and methodologies are notyet standardized, even at the international
level. Despite these challenges, APP
has incorporated these factors into its
sustainability risk management framework,
ensuring that no significant risks impact its
operations.
On the other hand, the adoption ofsustainability practices in APP has opened
up various global business opportunities.
Growing global public awarenessof environmental issues has driven
demand for eco-friendly products. APP’scommitment to sustainability, including
the use of recycled fibers and renewableenergy, has enhanced the competitivenessof its products in the global market.
Moreover, this commitment has paved theway for collaborations with internationalorganizations such as the World Economic[OJK D.1.c] [OJK E.5]

Forum and the United Nations Global
Compact. These partnerships can facilitate
APP’s access to global markets and thelatest technologies and knowledge. The
year 2024 presents new opportunities
for APP as it continues its sustainability
journey towards its SRV 2030 vision andnet-zero target by 2050.

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

198

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile199

APP PERSONNEL
As of the end of 2023, APP employees
were recorded at 33,044 people. These
employees consisted of 30,829 permanent
employees and 2,215 contract employees(including expatriates). Employee data
was obtained from the HRD department’s
records. There was no significant employee
fluctuation during the reporting period.

Total Number of Employees by Employment Contract (Permanent and Temporary) and Gender [GRI 2-7] [OJK C.3.b]

MaleFemale28,18326,55426,063

Permanent Temporary Permanent Temporary

A comprehensive overview of APP’s
employee demographics over the past
three years is presented in the following
tables:

2021

Total

[GRI 2-7] [GRI 2-8] [OJK C.3.b] [S.1.5.2.7]

104

2,646

2,434

148

90

Permanent Temporary

Permanent Temporary

Permanent Temporary

Permanent Temporary

2023

2021

2022

2023

2022

2021

Description

Sub Total

2,472

2,125

2,176

1,474

2022

2023

Permanent

Temporary

Permanent

Temporary

Permanent

Temporary

29,026

1,578

28,4972,324

30,8292,215

30,60430,821

33,044

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

200

Total Number of Employees by Employment Contract (Permanent and Temporary) and Region [GRI 2-7] [OJK C.3.b]
2021

Description

2022

2023

Permanent

Temporary

Permanent

Temporary

Permanent

Temporary

Riau

9,007

265

8,910

339

8,965

126

Jambi

2,613

65

2,467

104

2,647

37

South Sumatera

1,624

536

1,826

890

2,233

725

Banten

4,562

154

4,391

236

4,291

109

West Java

4,326

416

4,261

418

4,235

1,125

East Java

5,971

9

5,822

30

5,775

32

Others

2,574

234

2,614

374

2,683

61

Sub Total

30,677

1,679

30,291

2,391

30,829

2,215

Total

32,35630,8292,215

Total permanent
employees on 2023

Total temporary
employees on 2023

32,682

33,044

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

EMPLOYEE RECRUITMENT AND
TURNOVER
APP is committed to building a solid andhigh-performing team through regular
employee recruitment carried out
through two channels, namely internal
recruitment, and external recruitment. Theinternal recruitment process is carriedout through promotion, rotation, andtransfer of employees, while external
recruitment is carried out by opening job
vacancies to general applicants who meetthe criteria for the required positions.
APP’s workforce selection is carried out
objectively and transparently, regardlessof ethnic, religious, racial, group, or genderbackground. The company upholds
equal opportunity and provides equal
opportunities for all prospective employees
to join and build a career with APP.
[S.1.2.2] [OJK F.18][GRI 401-1] [S.1.5.2.7] [S.1.5.2.1]

The employee recruitment and selection
process is in line with human rights
principles and consistently adheres toapplicable labour regulations, including
regulations regarding the minimum age
for prospective employees. The company
ensures that all employees have reachedthe legal working age in accordance withILO Convention No. 138 on the Minimum
Age for Admission to Employment, which
is 18 years. During the reporting year, no
incidents of employee rights violations
related to underage labour were recorded.
In addition, we do not employ forced
labour in any form, and this is in line withthe prevailing laws and regulations inIndonesia, including Law No. 13 of 2003
on Manpower and Law No. 39 of 2004 on
Human Rights. [GRI 408-1] [GRI 409-1][OJK F.19] [S.1.1.1] [S.1.2.3] [S.2.1.5] [S.2.1.9]

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

201

Cover Story

Theme Explanation

Message from Top Management

Throughout 2023, the company recruited
2,982 new employees from all overIndonesia. In addition to adding new
employees through recruitment, thenumber of APP employees also decreased
due to several employees leaving thecompany for various reasons such as
retirement, resignation, end of contract,
death, and others. In 2023, the numberof employees leaving the company
was recorded at 2,606 people. The low
employee turnover rate indicates a highlevel of job satisfaction and loyalty to thecompany. Details of employee recruitment
and turnover by gender, age, and region
are presented in the following tables:

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

202

Employee Recruitment by Age Group [GRI 401-1] [S.1.3.2]
Description

2021

%

2022

%

2023

%

Under 30 years old

1,479

76%

2,027

74%

2,364

79%

30—50 years old

379

19%

568

21%

489

16%

Over 50 years old

81

5%

134

5%

129

5%

Total

1,939

2,729

2,982

Employee Recruitment by Gender [GRI 401-1] [S.1.3.2]
Description

2021

%

2022

%

2023

%

Male

1,698

88%

2,441

89%

2,688

90%

Female

241

12%

288

11%

294

10%

Total

1,939

2,729

2,982

Employee Recruitment by Region [GRI 401-1] [S.1.3.2]
Description

2021

%

2022

%

2023

%

Riau

297

15%

549

20%

710

24%

Jambi

166

8%

278

10%

312

10%

South Sumatera

265

14%

694

26%

531

18%

2,982

Banten

322

17%

386

14%

212

7%

West Java

290

15%

242

9%

675

23%

Total new employee
recruited on 2023

East Java

487

25%

161

6%

139

5%

Others

112

6%

419

15%

403

14%

Total

1,939

2,729

2,982

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Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

203

Employee Turnover by Age Group [GRI 401-1] [S.1.3.2] [S.1.5]
Description

2021

%

2022

%

2023

%

Under 30 years old

732

22%

1,042

41%

909

35%

30—50 years old

1,755

52%

1,005

39%

919

35%

Over 50 years old

905

27%

521

20%

778

30%

Total

3,392

2,568

2,606

Employee Turnover by Gender [GRI 401-1] [S.1.3.2] [S.1.5]
Description

2021

%

2022

%

2023

%

Male

2,986

88%

2,327

91%

2,336

90%

Female

406

12%

241

9%

270

10%

Total

3,392

2,568

2,606

Employee Turnover by Region [GRI 401-1] [S.1.3.2] [S.1.5]
Description

2021

%

2022

%

2023

%

Riau

544

16%

539

21%

552

21%

Jambi

210

6%

443

17%

256

10%

South Sumatera

275

8%

282

11%

306

12%

2,606

Banten

442

13%

379

15%

382

15%

West Java

334

10%

281

11%

523

20%

Total employee turnoveron 2023

East Java

1,344

40%

170

7%

190

7%

Others

243

7%

474

18%

397

15%

Total

3,392

2,568

2,606

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

204

OPERATING WITH ETHICS
AND INTEGRITY
BUSINESS CODE OF
CONDUCT (BCOC)
APP affirms its commitment to upholding
integrity through proactive measures.
The company has developed a
BCoC that serves as a guide for all
employees in carrying out their duties
and responsibilities. This document ispublicly available on the company’s
website, ensuring accessibility for all teammembers. Additionally, APP regularly
conducts BCoC training as a mandatory
exercise for all employees. This training not
only aims to introduce the BCoC but also
to provide a thorough understanding of thecompany’s core values of integrity. Training
participants undergo an assessment at
the end of the training, and achieving aminimum passing score is mandatory todemonstrate sufficient understanding.
The topics covered in the BCoC covervarious aspects relevant to integrityand business ethics, such as abuse of
power, conflicts of interest, procedures
for reporting violations, confidentialityof information, discrimination, and fairtreatment of business partners. By

SUPPLIER CODE OF
CONDUCT
testing employees’ understanding andknowledge in these areas, APP ensuresthat each individual has a solid foundationin conducting business activities withhigh integrity and compliance. These
measures not only strengthen thecompany’s culture of integrity but also
help create a professional and ethicalworking environment.
One of the topics emphasized in the
BCoC training is Human Rights. During
the reporting year, APP conducted BCoC
training for 27,732 employees or 76% of
all employees. We also provided BCoC
training (including Human Rights) to 138
security personnel or 46% of the total
security officers. [GRI 410-1]

APP has established a Supplier Codeof Conduct (SCoC) as a crucial step inensuring that all its supplier partners
adhere to ethical and sustainable businesspractices. This SCoC is designed toensure compliance with environmental
responsibility, occupational health andsafety (OHS), and fair labor practices.
In this context, APP conducts regularassessments of its suppliers to ensurecompliance with the SCoC. These
assessments are carried out periodicallyand rigorously to confirm that suppliers’
business practices continue to meet theestablished standards.

It is important to note that failure tocomply with the SCoC can have severe
consequences. APP upholds theprinciple that if a supplier fails to meetthe established ethical and sustainability
standards, it may result in the terminationof the relationship with that supplier.
This action is necessary to maintainthe integrity and commitment of APP toresponsible and sustainable businesspractices.
During the reporting year, all wood pulp
suppliers (100%) and 118 suppliers, or
79% of all outsourcing suppliers, received
dissemination related to the SCoC.
[GRI 308-1][308-2]

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-Dive

CONFLICT OF INTEREST

ANTI-CORUPPTION

APP is firmly committed to preventing
conflicts of interest at all levels of its
organization. Conflicts of interest canlead to a variety of harms and losses,
such as biased decision-making, lossof stakeholder trust, and damage to thecompany’s overall reputation. To ensurecompliance with high ethical standards
and prevent conflicts of interest, APP
established an Ethics Committee.

APP has adopted a stringent anti-bribery and anti-corruption policy, emphasizing that there is
no room for bribery or corruption in any aspect of its operations. As part of this commitment,
APP does not tolerate any form of bribery or corruption within the company.

This Committee is tasked with overseeing
senior management and helping to prevent
deviations from the established ethicalstandards. They routinely hold meetings
to discuss sensitive investigative mattersand provide guidance on the company’s
approach to ethics, thereby ensuring thatthe decisions and actions taken by thecompany consistently align with its core
ethical values. Discussions of conflictsof interest are only disclosed to relevant
parties.

[GRI 2-15] [G.1.1.1]

To further solidify its anti-corruption stance, APP adopted the international ISO 37001
standard for anti-bribery management systems. By implementing this standard, APP ensuresthat its management system is effectively designed to prevent, detect, and address bribery
practices. Currently, Ekamas Fortuna mill is the only facility certified under ISO 37001, withplans to extend the certification to all APP mills in the future.
Additionally, APP actively conducts integrity risk assessment across its operations. This
assessment aims to identify and mitigate potential corruption and fraud risks. The process
is led by the Corporate Risk & Integrity (CRI) Division, responsible for risk management andcompliance with anti-bribery and anti-corruption policies. Among all operations, the strategic
procurement division is considered to have significant corruption-related risks. [GRI 205]

APP doesn't tolerate any
practice of bribing nor
corruption within its operations
as a company

Disclosure

Company Profile

205

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Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Anti-corruption communication and training by region [GRI 205-2]
Company Name

Location

Number of Participants

PT Indah Kiat Pulp & Paper Tbk

Perawang

5,641

Serang3,639

Tangerang

787

Mojokerto

4,957

Jambi

1,520

Karawang

4,017

Perawang

1,570

Ogan Komering Ilir

2,957

Semarang

253

Demak

188

Bandung287

Subang167

Jakarta and Tangerang

1,947

PT Pabrik Kertas Tjiwi Kimia Tbk
PT Lontar Papyrus Pulp & Paper Industry
PT Pindo Deli Pulp and Paper MillsPT OKI Pulp & Paper Mills
Purinusa Ekapersada

APP HQ

9.2%
Anti-corruption
communication andtraining by region[GRI 205-2]

Category
Management

Number of Participants
14,67390.8%
Category
Non-Management

Number of Participants
145,537

160,210
Total Management and NonManagement participants in
Communication andAnti-Corruption Training

206

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

207

BUSINESS PARTNER ENGAGEMENT IN ANTICORRUPTION TRAINING THROUGH SUPPLIER CODE
OF CONDUCT (SCoC) TRAINING
Enhancing integrity and preventing
corruption are crucial aspects of building
sustainable business relationships. One
effective way to achieve this is by engaging
business partners in anti-corruption
training, particularly through SCoC training.
This training aims to equip business
partners with knowledge andunderstanding of anti-corruption principles,
including prohibitions of bribery, gratuities,
and other fraudulent practices. Business
partners receive training on identifying andreporting potential corruption. They will
also be equipped with the knowledge tobuild an ethical environment within theirorganizations.
Business partner participation in anticorruption training offers several benefits,
including:1.

Increasing awareness andunderstanding of corruption: This
training helps business partners
understand what corruption is andhow it can jeopardize their businesses.

2.

3.

4.

5.

Promoting a culture of integrity: This
training helps create a culture of
integrity within the supply chain. All
parties are committed to conducting
business ethically and responsibly.
Preventing corruption violations:This training helps business partners
identify and report potential corruption
violations, allowing them to beprevented before they occur.
Strengthening business relationships:
This training demonstrates thecompany’s commitment to integrity
and transparency, which can in turnstrengthen business relationships withbusiness partners.
As responsible business partners, itis crucial to engage in anti-corruption
training. By understanding andapplying anti-corruption principles inbusiness practices, business partners
can contribute to fostering a fairer
and more transparent businessenvironment.

Business partners informed on APP’s anti-corruption policies and procedures by type
[GRI 205-2]
Category

Total%

Active Vendors (excluding outsourcing)

7,421

100%

Outsourcing Vendors

118

79%

Total

7,539

During the reporting period, there were 35 incidents of corruption processed in accordancewith company regulations or applicable Indonesian anti-corruption laws. [GRI 205-3]

35
Total incidents ofcorruption processed inaccordance with company
regulations or applicableIndonesian anti-corruption
lawsCover Story

Theme Explanation

Message from Top Management

POLITICAL INVOLVEMENT

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

208

APP does not engage in any political activities that
could potentially influence policy processes or politicaldecisions. We maintain its political neutrality as partof our commitment to prioritizing sustainable andresponsible business operations.
However, we recognize that our employees havethe right to engage in political activities outside of
their work. We respect freedom of expression andparticipation in the political process as individual rights.
Therefore, our employees are allowed to participate
in political activities without involving the company orusing company facilities. We ensure that this policy
is clear and consistently enforced throughout ourorganization. By doing so, we meet our obligations
while maintaining our focus on transparent, ethical, andsustainable business operations.
[GRI 415-1] [G.3.1] [G.3.2]

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

CONTENT INDEX
Whistleblower Reports in 2023 [OJK F.24] [G.1.2.7]

Total Incoming
whistleblower
reports

Total reports thathave been
followed up

Total reports thathave been not yet
been followed up

Total reports
closed due toinsufficientevidence

Total reports thathave been completedwith management
actions

Total reports requiring
investigation and havebeen completed in
the year

Total reports
requiring
investigation

Indah Kiat Perawang

13

13

0

3

7

1

2

Indah Kiat Serang

12

12

0

4

5

2

1

Indah Kiat Tangerang

8

8

0

6

1

1

0

Tjiwi Kimia

8

8

0

3

5

0

0

Purinusa Bandung

2

2

0

1

1

0

0

Lontar Papyrus

8

8

0

3

4

1

0

OKI

41

41

0

19

20

2

0

Pindo Deli Karawang

19

19

0

3

13

1

2

Pindo Deli Perawang

0

0

0

0

0

0

0

Purinusa Subang

0

0

0

0

0

0

0

Ekamas Fortuna

2

2

0

2

0

0

0

Univenus Perawang

0

0

0

0

0

0

0

Wirakarya Sakti

12

12

0

5

4

0

3

Purinusa Demak

0

0

0

0

0

0

0

Satria Perkasa Agung

1

1

0

0

1

0

0

Riau Abadi Lestari

0

0

0

0

0

0

0

Sumalindo Hutani Jaya

3

3

0

2

1

0

0

Purinusa Semarang

0

0

0

0

0

0

0

Arara Abadi

10

10

0

5

5

0

0

209

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Conflicts ofInterest

Company’s
Defamation

Discrimination (SARA)

Extortion

Fraud

Indah Kiat Perawang

1

0

0

3

1

Indah Kiat Serang

0

0

0

0

2

Indah Kiat Tangerang

0

0

0

0

0

Tjiwi Kimia

0

0

0

0

1

Purinusa(Bandung, Demak, Semarang, Subang)

0

0

0

0

0

Lontar Papyrus

1

1

0

0

0

OKI

1

0

0

0

3

Pindo Deli Karawang

1

1

0

0

3

Pindo Deli Perawang

0

0

0

0

0

Ekamas Fortuna

0

0

0

0

0

Univenus Perawang

0

0

0

0

0

Wirakarya Sakti

1

0

0

0

1

Satria Perkasa Agung

0

0

0

0

0

Riau Abadi Lestari

0

0

0

0

0

Sumalindo Hutani Jaya

0

0

0

0

0

Arara Abadi

0

0

0

0

2

210

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Grievance

Bribery

VerbalHarassment

Other

Total

Indah Kiat Perawang

4

0

0

4

13

Indah Kiat Serang

6

0

0

4

12

Indah Kiat Tangerang

7

0

0

1

8

Tjiwi Kimia

6

0

0

1

8

Purinusa(Bandung, Demak, Semarang, Subang)

2

0

0

0

2

Lontar Papyrus

6

0

0

0

8

OKI

24

1

0

12

41

Pindo Deli Karawang

12

0

0

2

19

Pindo Deli Perawang

0

1

0

0

0

Ekamas Fortuna

0

0

0

1

2

Univenus Perawang

0

0

0

0

0

Wirakarya Sakti

6

0

0

4

12

Satria Perkasa Agung

1

0

0

0

1

Riau Abadi Lestari

0

0

0

0

0

Sumalindo Hutani Jaya

1

0

0

2

3

Arara Abadi

7

0

0

1

10

211

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

212

ENVIRONMENTAL DATA

Water

Waste

Description

Unit

2021

2022

2023

Total Water Withdrawn by Source (Surface Water Only)ML

346,026

325,658

331,326

Percentage of Water Reused and Recycled

%

14%

14%

17%

Effluent Discharge to RiverML

226,455

219,368

224,262

Landfill

480,053

515,914

209,533

Utilized by Licensed Third Party

175,269

117,769

71,781

Recycled

551,932

600,104

546,885

Temporary Storage

13,346

9,379

3,950

1,220,600

1,243,166

832,149000272,845

210,845

481,9854

1,816

138,367

Temporary Storage

70,34173,332

63,078

Total Non-Hazardous Waste

343,190362,912686,742

30

16

32,76

40,896,654

39,920,963

49,218,228

3,925,024

2,063,871

1,242,465

Total Hazardous Waste
Landfill

TonnesUtilized by Licensed Third Party
Recycled

OthersODS Emissions in CFC-11 Eq

Environmental
Expenditure

Waste Disposal, Emissions Treatment, and Remediation Cost
Prevention and Environmental Management Cost

TonnesUSD

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

213

MILLS ENVIRONMENTAL DATA
Perawang Mill (Indah Kiat Perawang,
Pindo Deli Perawang, Univenus Perawang

Environmental Parameters
Water Emissions

Air Emissions

Air Emissions
Load

Indah Kiat Serang

Indah Kiat Tangerang

2021

2022

2023

2021

2022

2023

2021

2022

2023

7.5

7.2

7.5

7.6

7.7

7.6

7.5

7.7

7.6

TSS

72.5

65.3

64.4

24.1

26.1

26.1

4.8

6.8

5.3

BOD

68.5

63.1

69.1

38.0

36.8

24.4

11.1

10.9

5.6

COD

258.4

245.5

267.7

162.0

157.9

101.8

52.5

54.0

27.6

AOX

0.2

0.0

0.67

N/A

N/A

N/A

N/A

N/A

N/A

186.9

152.3

152.3

243.4

162.3

408.17

125.8

51.8

264.25

SO2

278.6

271.7

271.7

49.6

200.6

348.29

16.8

73.3

37.33

CIO2

13.1

1.1

1.1

N/A

N/A

N/A

N/A

N/A

N/A

HCI

3.0

0.6

<0.135

N/A

N/A

N/A

N/A

N/A

N/A

CI2

2.0

1.9

<1

N/A

N/A

N/A

N/A

N/A

N/A

Opacity

<20

<20

<20

<20

<20

<20

<20

<20

<20

TRS

5.6

6.0

3.91

N/A

N/A

N/A

N/A

N/A

N/A

Total Particulate

101.7

96.6

78.79

22.1

33.3

26.00

14.3

12.1

26.00

0.8

0.6

0.7

1.9

1.0

2.08

1.4

0.8

4

1.2

1.0

0.1

0.5

0.9

1.76

0.1

1.2

N/A

pH

NO2

NO2

mg/l

mg/Nm3kg/tonSO2
CIO2

0.00004

-

N/A

N/A

HCI

0.00001

-

N/A

N/A

CI2

0.00011

-

N/A

N/A

Total Particulate
GHG emission

GHG emissions
intensity

tCO2e/ton

OthersDistance toprotected Area

km

Local water
source &Discharge

1.23

0.6

0.94

-

0.2

0.1

1.19

1.23

1.14

1.14

1.19

1.28

0.2

1

1.38

1.44

50 km to Tesso Nilo
National Park

Halimun Mountain
National Park

20 km to Rawa Danau Tukang
Gede Conservation Area

Siak River

Ciujung River

Cisadane RiverCover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Lontar Papyrus
Environmental Parameters
Water Emissions

Air Emissions

Air Emissions
Load

GHG emission

OthersCompany Profile

214

Pindo Deli Karawang

2021

2022

2023

2021

2022

2023

7.5

7.5

7.0

7.6

7.7

7.6

TSS

59.2

53.0

31.5

26.3

27.1

25.7

BOD

45.2

59.5

67.9

18.6

22.1

15.3

COD

257.6

260.9

210.5

75.8

89.8

62.5

AOX

3.5

3.3

2.9

0.1

0.1

0.1

196.4

209.7

295.21

136.4

164.6

141.6

SO2

293.8

341.3

472.54

19.9

108.8

114.3

CIO2

8.8

7.7

6.75

N/A

0.0

0.0

HCI

1.1

1.7

2.5

2.3

0.5

2.0

CI2

4.4

4.3

5.25

0.1

0.1

0.0

Opacity

<19

<20

17.06

<20

<20

<20

TRS

15.0

14.3

15.75

N/A

N/A

N/A

Total Particulate

81.4

82.0

93.63

24.5

12.8

17.1

1.3

0.6

6

4.1

4.2

15.8

SO2

1.0

1.8

5

1.3

4.3

1.6

CIO2

-

N/A

-

-

N/A

-

HCI

-

0.00003

-

-

N/A

-

CI2

-

0.00004

-

-

N/A

-

Total Particulate

-

0.6

2

-

1.1

-

0.81

0.88

1.02

PD1: 1.90

PD1: 1.98

PD1: 1.90

PD2: 1.18

PD2: 1.38

PD2: 1.82

PD3: 1.18

PD3: 1.24

PD3: 1.25

pH

NO2

NO2

GHG emissions intensity

Distance to protected Area
Local water source & Discharge

mg/l

mg/Nm3kg/tontCO2e/tonkm

30 km to Bukit
Tigapuluh National Park

40 km to Natural Reserve
Tangkuban Perahu Mountain

Pengabuan River

Citarum RiverCover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Tjiwi Kimia
Environmental Parameters
Water Emissions

Air Emissions

Air Emissions
Load

Achievements

Performance Deep-DiveDisclosure

Ekamas Fortuna

Company Profile

215

OKI

2021

2022

2023

2021

2022

2023

2021

2022

2023

7.5

7.5

7.5

7.5

7.4

7.7

7.6

7.4

7.1

TSS

9.9

24.1

19.5

12.1

14.8

8.0

20.8

17.7

45.4

BOD

21.2

29.8

28.9

22.0

29.5

20.8

62.4

69.1

62.6

COD

47.8

79.2

76.4

76.6

95.2

73.7

231.1

241.8

205.0

AOX

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

117.9

200.8

227.75

161.4

155.4

132.0

216.4

73.0

73.0

SO2

43.5

64.6

234.45

151.8

14.8

229.8

40.1

32.5

23.5

CIO2

N/A

N/A

N/A

N/A

N/A

N/A

23.5

4.4

4.38

HCI

0.14

0.2

0.55

N/A

N/A

N/A

2.3

4.5

1.0

CI2

0.13

0.1

0.21

N/A

N/A

N/A

1.7

1.6

1.56

Opacity

<20

<20

<20

<20

<20

16.0

20.0

<20

20.0

TRS

0.02

0.0

0.0

N/A

N/A

N/A

4.5

2.6

3.0

Total Paticulate

41.28

67.0

61.34

23.2

38.2

39.8

26.6

30.0

30.64

10.9

11.8

9.6

1.0

0.9

0.88

0.6

0.2

0.18

4.5

4.0

10.14

1.0

0.1

1.77

0.1

0.1

0.06

pH

NO2

NO2

mg/l

mg/Nm3kg/ton

SO2
CIO2

N/A

N/A

N/A

HCI

0.00001

N/A

0.00001CI2

0.00002

N/A

0.00002

Total Particulate

0.0380

2.6

1.92

1.78

GHG emission

GHG emissions
intensity

tCO2e/ton

OthersDistance toprotected Area

km

Local water
source &Discharge

2.12

1.20

0.3

0.2

1.25

1.22

0.08

0.1

0.09

0.07

0.06

80 km to Bromo
Tengger Semeru National Park

30 km to Pulau Sempu
Nature Reserve

Berbak Sembilang National
Park Sungai Padang

Brantas River

Lesti River

Padang RiverCover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Purinusa Ekapersada - Subang
Environmental Parameters

Water Emissions

Air Emissions

Air Emissions
Load

Achievements

Performance Deep-DiveDisclosure

Purinusa Ekapersada - Bandung

Company Profile

216

Purinusa Ekapersada - Demak

2021

2022

2023

2021

2022

2023

2021

2022

2023

7.3

7.2

7.2

7.0

7.0

7.2

7.5

7.4

7.3

TSS

28.6

72.4

28.0

10.1

10.9

19.7

16.3

14.9

13.5

BOD

19.6

37.9

27.0

25.3

20.4

28.2

16.2

9.4

15.9

COD

58.3

92.5

92.8

63.4

89.3

113.7

38.9

20.0

37.9

AOX

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

80.0

18.5

23.75

104.9

49.3

100.30

131.5

129.6

72.1

SO2

3.6

22.0

25.40

12.3

113.0

42.70

64.5

255.1

401.5

CIO2

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

HCI

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

CI2

N/A

N/A

N/A

N/A

N/A

N/A

<20

<20

N/A

Opacity

<20

<20

6.00

<20

<20

16

N/A

N/A

15.85

TRS

N/A

N/A

0.00

N/A

N/A

0.00

N/A

N/A

0.00

Total Paticulate

20.5

152.5

99.75

76.5

20.9

170.40

50.1

33.5

82.95

0.2

0.1

0.1

0.3

0.1

0.6

0.3

0.7

0.5

0.0

0.1

0.05

0.3

0.2

0.5

0.1

0.7

0.5

pH

NO2

NO2

mg/l

mg/Nm3kg/ton

SO2
CIO2

N/A

N/A

N/A

HCI

0.00001

N/A

0.00001CI2

0.00002

N/A

0.00002

Total Particulate

0.0380

-

0.20

0.18

GHG emission

GHG emissions
intensity

tCO2e/ton

OthersDistance toprotected Area

km

Local water
source &Discharge

0.20

0.30

0.3

1.9

0.27

0.28

0.19

0.1

-

0.21

0.20

0.65 km to Cilamaya
River

0.3 km to
Cipanjalu River

2 km to nearest
river body

Ground water &Cilamaya River

Ground water &Cipanjalu River

Ground water &Sipon Sidogemah
RiverCover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

Purinusa Ekapersada – Bawen (Semarang)
Environmental Parameters
Water Emissions

Air Emissions

Air Emissions Load

2021

2022

2023

7.6

7.4

7.7

TSS

7.8

11.1

8.6

BOD

6.4

5.6

7.8

COD

15.8

13.5

18.8

AOX

N/A

N/A

N/A

136.3

130.3

93.65

SO2

71.2

236.3

157.80

CIO2

N/A

N/A

0.00

HCI

N/A

N/A

0.00

CI2

N/A

N/A

0.00

Opacity

<20

<20

8.00

TRS

N/A

N/A

0.00

Total Particulate

50.1

35.4

132.25

0.1

0.1

0.3

SO2

0.1

0.1

0.5

CIO2

N/A

N/A

pH

NO2

NO2

mg/l

mg/Nm3kg/tonHCI

0.00001CI2

0.00002

Total Particulate

0.0380

-

0.17

0.17

GHG emission

GHG emissions intensity

tCO2e/ton

OthersDistance to protected Area

km

Local water source & Discharge

0.17

0.2 km to nearest river body and
10 km to Rawa Pening Lake
Third Party (PDAM) which intake form Rawa Pening Lake &Sigebyok River217

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

218

MILL AND FORESTRY SOCIAL DATA

Indah Kiat Perawang
Description

Unit

Male

Indah Kiat SerangFemaleMale

Female

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

Employee
New employee

#

381

34

24

17

0

0

153

24

8

7

1

1

Rate of new employee

%

34.4%

1.2%

1.8%

44.7%

0.0%

0.0%

14.4%

1.2%

1.8%

15.9%

1.5%

4.3%

Employee turnover

#

69

69

217

-

5

5

149

111

70

3

9

3

Rate of employee turnover

%

5.9%

2.3%

13.7%

0.0%

2.7%

10.4%

12.3%

5.3%

13.7%

6.4%

12.0%

11.5%

EmployeeOutsourcing

EmployeeOutsourcing

0.00

1.00

0.00

0.00

Fatality rate

0.00

0.04

0.00

0.00

High consequence work related
injury rate (excluding: fatality)*

0.00

0.00

0.00

0.00

Rate of recordable
work-related injuries**

1.67

0.08

2.34

1.30

Health & Safety
Fatality#

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveIndah Kiat Tangerang
Description

Unit

Male

Disclosure

Company Profile

219

Lontar Papyrus
FemaleMale

Female

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

Employee
New employee

#

15

0

0

2

1

0

202

24

4

9

0

0

Rate of new employee

%

20.3%

0.0%

0.0%

11.1%

1.4%

0.0%

42.3%

3.4%

1.2%

40.9%

0.0%

0.0%

Employee turnover

#

6

12

15

1

1

2

76

54

26

2

1

0

Rate of employee turnover

%

7.5%

2.3%

15.5%

5.3%

1.4%

18.2%

13.7%

7.2%

7.3%

8.3%

6.7%

0.0%

EmployeeOutsourcing

EmployeeOutsourcing

0.00

0.00

0.00

0.00

Fatality rate

0.00

0.00

0.00

0.00

High consequence work related
injury rate (excluding: fatality)*

0.00

0.00

0.00

0.00

Rate of recordable
work-related injuries**

1.20

0.00

2.57

0.00

Health & Safety
Fatality#

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-Dive

Pindo Deli Karawang
Description

Unit

Male

Disclosure

Company Profile

220

Pindo Deli Perawang
FemaleMale

Female

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

Employee
New employee

#

151

49

24

6

1

24

56

2

0

3

0

0

Rate of new employee

%

25.2%

2.2%

2.6%

12.2%

0.7%

70.6%

25.5%

0.2%

0.0%

27.3%

0.0%

0.0%

Employee turnover

#

70

71

177

7

18

12

10

31

2

1

1

1

Rate of employee turnover

%

10.4%

3.0%

16.1%

12.5%

11.0%

26.1%

4.3%

2.4%

6.5%

8.3%

3.3%

50.0%

EmployeeOutsourcing

EmployeeOutsourcing

1.00

0.00

0.00

0.00

Fatality rate

0.10

0.00

0.00

0.00

High consequence work related
injury rate (excluding: fatality)*

0.00

0.00

0.00

0.00

Rate of recordable
work-related injuries**

1.88

1.16

3.07

0.00

Health & Safety
Fatality#

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Univenus Perawang
Description

Unit

Male

Company Profile

221

Tjiwi Kimia
FemaleMale

Female

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

Employee
New employee

#

2

0

0

0

0

0

88

10

2

4

1

0

Rate of new employee

%

66.7%

0.0%

0.0%

0.0%

0.0%

0.0%

7.4%

0.4%

0.3%

4.1%

0.2%

0.0%

Employee turnover

#

0

1

0

0

0

0

42

54

31

4

6

6

Rate of employee turnover

%

0.0%

3.0%

0.0%

0.0%

0.0%

0.0%

3.4%

2.1%

4.3%

4.0%

1.4%

8.8%

EmployeeOutsourcing

EmployeeOutsourcing

0.00

0.00

0.00

0.00

Fatality rate

0.00

0.00

0.00

0.00

High consequence work related
injury rate (excluding: fatality)*

0.00

0.00

0.00

0.00

Rate of recordable
work-related injuries**

0.00

0.00

1.69

6.16

Health & Safety
Fatality#

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Ekamas Fortuna
Description

Unit

Male
<30

30-50

222

OKI
Female>50Company Profile

Male

Female

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

2

0

0

384

114

9

23

1

0

Employee
New employee

#

32

0

0

Rate of new employee

%

27.8%

0.0%

0.0%

16.7%

0.0%

0.0%

29.1%

8.6%

4.6%

24.7%

3.7%

0.0%

Employee turnover

#

2

8

36

0

0

1

137

127

25

13

4

0

Rate of employee turnover

%

1.7%

1.6%

15.3%

0.0%

0.0%

20.0%

9.4%

8.8%

11.4%

12.3%

12.9%

0.0%

EmployeeOutsourcing

EmployeeOutsourcing

0.00

0.00

0.00

1.00

Fatality rate

0.00

0.00

0.00

0.12

High consequence work related
injury rate (excluding: fatality)*

0.00

0.00

0.00

0.00

Rate of recordable
work-related injuries**

8.52

29.24

12.06

1.29

Health & Safety
Fatality#

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DivePurinusa Ekapersada Semarang
Description

Unit

Male
<30

30-50

Company Profile

223

Purinusa Ekapersada Demak

Female>50Disclosure

Male

Female

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

1

0

0

5

3

0

1

0

0

Employee
New employee

#

3

4

0

Rate of new employee

%

20.0%

2.1%

0.0%

20.0%

0.0%

0.0%

17.9%

2.1%

0.0%

0.0%

0.0%

0.0%

Employee turnover

#

2

9

2

0

0

0

0

8

0

0

1

0

Rate of employee turnover

%

11.8%

4.4%

11.1%

0.0%

0.0%

0.0%

0.0%

5.4%

0.0%

0.0%

7.1%

0.0%

EmployeeOutsourcing

EmployeeOutsourcing

0.00

0.00

0.00

0.00

Fatality rate

0.00

0.00

0.00

0.00

High consequence work related
injury rate (excluding: fatality)*

0.00

0.00

0.00

0.00

Rate of recordable
work-related injuries**

3.93

14.16

15.09

6.94

Health & Safety
Fatality#

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DivePurinusa Ekapersada Bandung
Description

Unit

Male

Disclosure

Company Profile

224

Purinusa Ekapersada Subang

FemaleMale

Female

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

Employee
New employee

#

6

0

0

1

0

0

5

3

0

1

0

0

Rate of new employee

%

11.3%

0.0%

0.0%

12.5%

0.0%

0.0%

7.9%

3.4%

0.0%

10.0%

0.0%

0.0%

Employee turnover

#

4

6

1

1

0

0

9

5

1

0

0

0

Rate of employee turnover

%

7.0%

3.5%

2.2%

11.1%

0.0%

0.0%

12.5%

5.4%

16.7%

0.0%

0.0%

0.0%

EmployeeOutsourcing

EmployeeOutsourcing

0.00

0.00

0.00

0.00

Fatality rate

0.00

0.00

0.00

0.00

High consequence work related
injury rate (excluding: fatality)*

0.00

0.00

0.00

0.00

Rate of recordable
work-related injuries**

0.00

1.86

5.07

0.00

Health & Safety
Fatality#

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-Dive

Arara Abadi
Description

Unit

Male

Disclosure

Company Profile

225

Riau Abadi Lestari
FemaleMale

Female

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

Employee
New employee

#

148

15

1

19

1

0

2

0

0

0

0

0

Rate of new employee

%

40.9%

2.1%

0.3%

38.0%

1.3%

0.0%

33.3%

0.0%

0.0%

0.0%

0.0%

0.0%

Employee turnover

#

41

34

34

4

1

3

0

2

1

0

0

0

Rate of employee turnover

%

10.2%

4.6%

10.1%

7.4%

1.3%

13.0%

0.0%

5.6%

9.1%

0.0%

0.0%

0.0%

EmployeeOutsourcing

EmployeeOutsourcing

0.00

0.00

0.00

0.00

Fatality rate

0.00

0.00

0.00

0.00

High consequence work related
injury rate (excluding: fatality)*

0.00

0.00

0.00

0.00

Rate of recordable
work-related injuries**

2.77

0.14

0.00

0.00

Health & Safety
Fatality#

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveFinnantara Intiga
Description

Unit

Male

Disclosure

Company Profile

226

Satria Perkasa Agung
FemaleMale

Female

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

Employee
New employee

#

24

6

0

3

0

0

2

3

0

0

0

0

Rate of new employee

%

43.6%

4.8%

0.0%

60.0%

0.0%

0.0%

3.6%

2.5%

0.0%

0.0%

0.0%

0.0%

Employee turnover

#

15

20

5

0

0

0

6

6

7

0

1

0

Rate of employee turnover

%

21.4%

13.8%

20.0%

0.0%

0.0%

0.0%

9.7%

4.8%

11.1%

0.0%

11.1%

0.0%

EmployeeOutsourcing

EmployeeOutsourcing

0.00

0.00

0.00

0.00

Fatality rate

0.00

0.00

0.00

0.00

High consequence work related
injury rate (excluding: fatality)*

0.00

0.00

0.00

0.00

Rate of recordable
work-related injuries**

0.00

0.69

0.00

0.63

Health & Safety
Fatality#

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-Dive

Wirakarya Sakti
Description

Unit

Male

Disclosure

Company Profile

227

Sumalindo Hutani Jaya
FemaleMale

Female

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

<30

30-50

>50

Employee
New employee

#

56

11

0

5

1

0

0

0

0

0

0

0

Rate of new employee

%

19.0%

1.9%

0.0%

15.2%

2.4%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Employee turnover

#

40

29

22

2

3

1

3

5

1

0

0

0

Rate of employee turnover

%

11.9%

4.7%

12.3%

5.7%

6.7%

7.1%

5.9%

6.2%

9.1%

0.0%

11.1%

0.0%

EmployeeOutsourcing

EmployeeOutsourcing

0.00

0.00

0.00

0.00

Fatality rate

0.00

0.00

0.00

0.00

High consequence work related
injury rate (excluding: fatality)*

0.00

0.00

0.00

0.00

Rate of recordable
work-related injuries**

3.78

0.87

5.41

17.91

Health & Safety
Fatality*#

High-consequence work-related injury** Recordable work-related injury or ill health work-related injury or ill health that results in any of the following: death, days away from work, restricted work or transfer to another job, medical treatment beyond first aid, or loss of consciousness; or significant injury or ill healthdiagnosed by a physician or other licensed healthcare professional, even if it does not result in death, days away from work, restricted work or job transfer, medical treatment beyond first aid, or loss of consciousness.
*** This disclosure covers work-related hazards that pose a risk of high-consequence injury if not controlled, even when there are control measures in place. The hazards might have been identified proactively through risk assessment, or reactively as a result of either a highpotential incident or a high-consequence injury. Examples of work-related hazards causing or contributing to high-consequence injuries include excessive workload demands, tripping hazards, or exposure to flammable materials.

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

INDEPENDENT ASSURANCE STATEMENT

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

228

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile229

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

230

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

231

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

POJK REFERENCE INDEX AND GRI STANDARDGRI Content Index
Statement of use

Asia Pulp & Paper (APP Group) has reported in accordance with the GRI Standards for the period January 1, 2023, to December 31, 2023.

GRI 1 used

GRI 1: Foundation 2021

Applicable GRI Sector Standard

GRI Standard

Disclosure

Location

Omission
Requirement
omittedGRI 2GeneralDisclosure
2021

THE ORGANIZATION AND ITS REPORTING PRACTICES
2-1 Organizational details
2-2 Entities included in theorganization’s sustainability reporting

186, 188
186

2-3 Reporting period, frequency,
and contact point

174 - 175

2-4 Restatements of information

174

2-5 External assurance

175

ACTIVITIES AND WORKERS
2-6 Activities, value chain and otherbusiness relationships

11, 187 - 188

2-7 Employees

199 - 200

2-8 Workers who are not employees

199

GOVERNANCE
2-9 Governance structure andcomposition
[G.4]

191

ReasonExplanation

GRI Sector Standard
REF. No.

232

Cover Story

Theme Explanation

GRI Standard

Message from Top Management

Disclosure

Ecosystem

Approach

Strategy

Performance

Location193

2-11 Chair of the highest governance
body

192

2-12 Role of the highest
governance body in overseeing themanagement of impacts

17, 192

2-13 Delegation of responsibility for
managing impacts

17, 192

2-14 Role of the highest governancebody in sustainability
reporting18

2-15 Conflicts of interest

205

2-16 Communication ofcritical concerns

18

2-17 Collective knowledge of thehighest governance body193

2-18 Evaluation of the performanceof the highest governance body194

2-19 Remuneration policies

194

2-20 Process to determine
remuneration

194

2-21 Annual totalcompensation ratio

194

SRATEGY, POLICIES AND PRACTICES
2-22 Statement on sustainable
development strategy
2-23 Policy commitments

7, 8
69, 136 -138

Performance Deep-DiveDisclosure

Omission
Requirement
omitted2-10 Nomination and selection of
the highest governance bodyAchievements

ReasonExplanation

Company Profile

GRI Sector Standard
REF. No.

233

Cover Story

Theme Explanation

GRI Standard

Message from Top Management

Ecosystem

Disclosure

Approach

Strategy

Performance

Location

16, 282-25 Processes to Remediate Negative
Impacts

26, 282-26 Mechanisms for seeking advice andraising concerns

26

2-27 Compliance with Law and Regulation

16, 135

2-28 Membership Associations

190

STAKEHOLDER ENGAGEMENTGRI 3:
Material Topic 2021

2-29 Approach to
Stakeholder Engagement

178

2-30 Collective Bargaining
Agreements

139

MATERIAL TOPIC
3-1 Process to determinematerial topics

32

3-2 List of material topics

32

3-3 Management ofMaterial Topics

35
TOPIC-SPECIFIC DISCLOSURE

GRI 3: Material
Topic 2021

ECONOMIC PERFORMANCE
3-3 Managementof Material Topics

35

Performance Deep-DiveDisclosure

Omission
Requirement
omitted

2-24 Embedding Policy
Commitments

Achievements

ReasonExplanation

Company Profile

GRI Sector Standard
REF. No.

234

Cover Story

Theme Explanation

GRI Standard

Message from Top Management

Ecosystem

Disclosure

Approach

Strategy

Performance

Location

201-1 Direct economic value
generated and distributed

64

201-2 Financial implications andother risks and opportunities due
to climate change

25201-3 Defined benefit plan
obligations and other retirement
plans

139

201-4 Financial assistance received
from government66

GRI 3: Material
Topic 2021

MARKET PRESENCEGRI 202:
Market Presence
2016

3-3 Management of Material Topics

43

202-1 Ratios of standard entry level wage
by gender compared to local minimum
wage

140

202-2 Proportion of senior management
hired from the local community

144

GRI 3: Material
Topic 2021
GRI 203:
Indirect Economic
Impacts 2016

INDIRECT ECONOMIC IMPACTS
3-3 Management of Material Topics

42

203-1 Infrastructure
investments and services supported

159

203-2 Significant indirect economic
impacts

77 - 81, 161 - 162,
165

GRI 3: Material
Topic 2021

PROCUREMENT PRACTICESGRI 204:
Procurement
Practices 2016

3-3 Management of Material Topics

41

204-1 Proportion of spending on local
suppliers

103

Performance Deep-DiveDisclosure

Omission
Requirement
omittedGRI 201:
Economic
Performance 2016

Achievements

ReasonExplanation

Company Profile

GRI Sector Standard
REF. No.

235

Cover Story

Theme Explanation

GRI Standard

Message from Top Management

Disclosure

Ecosystem

Approach

Strategy

PerformanceGRI 205:
Anti-corruption
2016

GRI 3: Material
Topic 2021
GRI 207:
Tax 2019

GRI 3: Material
Topic 2021

ANTI-CORRUPTION
3-3 Management of Material Topics

44

205-1 Operations assessed for risks
related to corruption

205

205-2 Communication andtraining about anticorruption
policies and procedures

206 - 207

205-3 Confirmed incidents ofcorruption and actions taken

207

TAX
3-3 Management of Material Topics

35

207-1 Approach to tax

66

207-2 Tax governance,
control, and risk management67

207-3 Stakeholder engagement andmanagement of concerns related to tax

67

207-4 Country-by-country reporting

67

MATERIALS
3- 3 Management of material topics

36, 41

Performance Deep-DiveDisclosure

Omission

Location
Requirement
omittedGRI 3: Material
Topic 2021

Achievements

ReasonExplanation

Company Profile

GRI Sector Standard
REF. No.

236

Cover Story

Theme Explanation

Message from Top Management

GRI Standard

Disclosure

Ecosystem

Approach

Strategy

Performance

GRI 3: Material
Topic 2021
GRI 302:
Energy 2016

GRI 3: Material
Topic 2021
GRI 303:
Water andEffluents 2018

301-1 Materials used by weight orvolume112

301-2 Recycled input materials used

112

301-3 Reclaimed products and theirpackaging materials

112

ENERGY
3-3 Management of Material Topics

39

302-1 Energy consumption within
the organization

114, 115302-2 Energy consumption
outside of the organization

114, 116

302-3 Energy intensity

116

302-4 Reduction ofenergy consumption

117

302-5 Reductions in energy
requirements of products and services

118

WATER AND EFFLUENTS
3-3 Management of Material Topics

38

303-1 Interactions with water as ashared resource

126

303-2 Management of water
dischargerelated impacts

127

303-3 Water withdrawal

129303-4 Water discharge

129

303-5 Water consumption

129

Performance Deep-DiveDisclosure

Omission

Location
Requirement
omittedGRI 301:
Material 2016

Achievements

ReasonExplanation

Company Profile

GRI Sector Standard
REF. No.

237

Cover Story

Theme Explanation

GRI Standard

Message from Top Management

Ecosystem

Disclosure

Approach

Strategy

Performance

Location

GRI 304:
Biodiversity 2016

BIODIVERSITY
3-3 Management of material topics

37

304-1 Operational sites owned, leased,managed in, or adjacent to, protected areas
and areas of high biodiversity value
outside protected areas90

304-2 Significant impacts of activities,
products and services on biodiversity

90304-3 Habitats protected or restored90

304-4 IUCN Red List species and national
conservation list species with habitats inareas affected by operations
GRI 3: Material
Topic 2021
GRI 305:
Emissions 2016

90 - 91

EMISSIONS
3-3 Management of material topics

39

305-1 Direct (Scope 1)
GHG emissions120

305-2 Energy indirect (Scope 2)
GHG emissions120

305-3 Other indirect (Scope 3)
GHG emissions120

305-4 GHG emissions intensity

122

305-5 Reduction of GHG emissions

122

Performance Deep-DiveDisclosure

Omission
Requirement
omittedGRI 3: Material
Topic 2021

Achievements

ReasonExplanation

Company Profile

GRI Sector Standard
REF. No.

238

Cover Story

Theme Explanation

Message from Top Management

GRI Standard

Ecosystem

Disclosure

Approach

Strategy

Performance

Location

123

305-7 Nitrogen oxides (NO), sulfur
oxides (SO), and other significant air
emissions123

GRI 3:
Material
Topic 2021

WASTE
3-3 Management of Material Topics

38

GRI 306:
Waste 2020306-1 Waste generation andsignificant waste related impacts

130306-2 Management of significant
waste-related impacts

130306-3 Waste Generated

133

306-4 Waste Diverted
from Disposal

133

306-5 WasteDirected
to Disposal134

GRI 3:
Material
Topic 2021

SUPPLIER ENVIRONMENTAL ASSESMENT
3-3 Management of Material Topics

40, 41

GRI 308: Supplier
Environmental
Assesment 2016308-1 New suppliers that werescreened using environmental criteria

85, 87, 204

308-2 Negative environmental
impacts in the supply chain andactions taken

87, 204

Performance Deep-DiveDisclosure

Omission
Requirement
omitted305-6 Emissions of ozone-depleting
substances

Achievements

ReasonExplanation

Company Profile

GRI Sector Standard
REF. No.

239

Cover Story

Theme Explanation

GRI Standard

Message from Top Management

Ecosystem

Disclosure

Approach

Strategy

Performance

Location

EMPLOYMENT
3-3 Management of Material Topics

GRI 401:
Employment 2016

401-1 New employee hires andemployee turnover43
201 - 203

401-2 Benefits Provided to Full-Time
Employees That are Not Provided toTemporary or Part-Time Employees

140

401-3 Parental Leave

140

GRI 3: Material
Topic 2021

LABOR/MANAGEMENT RELATIONSGRI 402:
Labor/Management
Relations 2016

3-3 Management of Material Topics

43402-1 Minimum notice periods
regarding operational changes

139

GRI 3: Material
Topic 2021

OCCUPATIONAL HEALTH AND SAFETY

GRI 403:
Occupational
Health and Safety
2018

3-3 Management of Material Topics

43

403-1 Occupational health and safety
management system147

403-2 Hazard identification, risk
assessment, and incident investigation

147

403-3 Occupational health services

149403-4 Worker participation, consultation,and communication on occupational healthand safety

150

Performance Deep-DiveDisclosure

Omission
Requirement
omittedGRI 3: Material
Topic 2021

Achievements

ReasonExplanation

Company Profile

GRI Sector Standard
REF. No.

240

Cover Story

Theme Explanation

GRI Standard

Message from Top Management

Ecosystem

Disclosure

Approach

Strategy

Performance

Location

GRI 3: Material
Topic 2021
GRI 404:
Occupational
Health and Safety2016403-6 Promotion of worker health149, 151

403-7 Prevention and mitigation ofoccupational health and safety impacts
directly linked by business relationships

151 - 152403-8 Workers covered by an
occupational health and safety
management system152

403-9 Work-related injuries

153

403-10 Workrelated ill health

154

TRAINING AND EDUCATION
3-3 Management of Material Topics

43404-1 Average hours of training
per year per employee

146404-2 Programs for upgrading
employee skills and transition
assistance programs

139, 145

404-3 Percentage of employees
receiving regular performance andcareer development reviews
GRI 3: Material
Topic 2021
GRI 405:
Diversity and Equal
Opportunity 2016

151

146

DIVERSITY AND EQUAL OPPORTUNITY
3-3 Management of Material Topics		
		405-1 Diversity of governance bodies
and employees

44
141 - 142

Performance Deep-DiveDisclosure

Omission
Requirement
omitted403-5 Worker training on occupational
health and safety

Achievements

ReasonExplanation

Company Profile

GRI Sector Standard
REF. No.

241

Cover Story

Theme Explanation

GRI Standard

Message from Top Management

Ecosystem

Disclosure

Approach

Strategy

Performance

Location

GRI 3: Material
Topic 2021
GRI 406:
Non-Discrimination
2016

143

NON-DISCRIMINATION
3-3 Management of Material Topics		
		406-1 Incidents of discrimination andcorrective actions taken

44
143

GRI 3: Material
Topic 2021

CHILD LABORGRI 408: Child Labor
2016

3-3 Management of Material Topics

43

408-1 Operations and suppliers at significant
risk for incidents of child labor201

GRI 3: Material
Topic 2021

FORCED OR COMPULSORY LABORGRI 409: Forced orCompulsory Labor 2016

3-3 Management of Material Topics

43409-1 Operations and suppliers at
significant risk for incidents of forced
or compulsory labor201

GRI 3: Material
Topic 2021

SECURITY PRACTICES
3-3 Management of Material Topics

43 - 44

GRI 410:
Security Practices
2016

410-1 Security personal trained inhuman rights policies or procedures

138, 204

GRI 3: Material
Topic 2021

LOCAL COMMUNITIES
3-3 Management of Material Topics

43

Performance Deep-DiveDisclosure

Omission
Requirement
omitted405-2 Ratio of basic
salary and remuneration of
women to men

Achievements

ReasonExplanation

Company Profile

GRI Sector Standard
REF. No.

242

Cover Story

Theme Explanation

GRI Standard

Message from Top Management

Ecosystem

Disclosure

Approach

Strategy

Performance

Location

GRI 415: Public
Policy 2016413-1 Operations with local community
engagement, impact assessments, anddevelopment programs

156

413-2 Operations with significant
actual and potential negative impacts on
local communities

156

POLITICAL CONTRIBUTIONS
415-1 Political contributions

GRI 3: Material
Topic 2021

MARKETING AND LABELING
3-3 Management of Material Topics

GRI 417:
Marketing andLabeling 2016

207

41

417-1 Requirements for product and service
information and labeling103, 108417- 2 Incidents of non-complianceconcerning product and service informationand labeling103, 108417-3 Incidents of non-complianceconcerning marketing communications

108

Performance Deep-DiveDisclosure

Omission
Requirement
omittedGRI 413: Local
Communities 2016

Achievements

ReasonExplanation

Company Profile

GRI Sector Standard
REF. No.

243

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

244

POJK REFERENCE INDEX
Index Number

Disclosure

Page

Sustainability Strategy
A.1

Sustainability Strategy Explanation

136

Sustainability Aspect Performance Overview
B.1

Economic Aspect

B.1.a

The Quantity of Sold Production or Service

47

B.1.b

Income or Sales

47

B.1.c

Net Profit or Loss

47

B.1.d

Eco-Friendly Product

47

B.1.e

Involving Local Parties Related to The Sustainable Finance Business Process

47

B.2

Environmental Aspects

48

B.2.a

Energy Usage

102

B.2.b

Result of the emissions reduction

102

B.2.c

Waste and Effluent Reduction

102

B.2.d

Biodiversity Conservation

B.3

Social Performance Overview which Describes the Positive and Negative Impacts of Implementing Sustainable Finance for Society and the Environment

48 - 49
51

Company ProﬁleC.1

Vision, Mission, and Values of Sustainability

185

C.2

Company's Address

186

C.3

Company’s Scale

189

C.3.a

Total Assets or Asset Capitalization and Total Liabilities

188

C.3.b

Number of Employees by Gender, Position, Age, Education, and Status

188, 199 200

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Index Number

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Disclosure

Company Profile

245

Page

C.3.c

Percentage of Share Ownership

188

C.3.d

Operational Area

11, 188

C.4

Products, Services, and Running Business Activities

187

C.5

Membership in the Association

190

C.6

Significant Changes in Issuers and Public Companies

174, 188

Explanation of the Board of Directors
D.1.a

Policies to Respond Challenges in Fulfilling the Sustainability Strategy

D.1.b

Sustainable Finance Implementation

D.1.c

Target Achievement Strategy

7, 8, 195 – 196
7, 8, 195
7, 8, 183, 197,
198

Sustainability GovernanceE.1

Responsible for Implementing Sustainable Finance

17, 196

E.2

Competency Development Related to Sustainable Finance

145, 193

E.3

Risk Assessment of the Implementation of Sustainable Finance

23

E.4

Stakeholders Relations

178

E.5

Problems with the Implementation of Sustainable Finance

104, 119, 143,
198

Sustainability Performance
F.1

Sustainability Culture Activities

18

Economic Performance
F.2

Comparison of Targets and Performance of Production, Portfolio, Financing, Income and Profit and Loss

64

F.3

Comparison of Portfolio Targets and Performance, Financing Targets, or Investments in Projects in line with Sustainable Finance65

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Index Number

Strategy

Disclosure

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

246

Page

General Aspect
F.4

Environmental Costs

97, 136

Material Aspect
F.5

Environmentally Friendly Materials Used

112

Energy Aspect
F.6

Amount and Intensity of Energy Used

F.7

Efforts and Achievements of Energy Efficiency and Use of Renewable Energy

114 - 116, 118
117

Water Aspect
F.8

Water Usage

126

Aspects of Biodiversity
F.9

Impacts of Operational Areas That are Near or in Conservation Area

F.10

Efforts to Conserve Biodiversity

89 - 90
69, 89, 92 - 94

Emission Aspect
F.11

Amount and Intensity of Emissions Generated by Type

120, 122

F.12

Efforts and Achievements of Emission Reduction Made

122

Waste and Effluent Aspects
F.13

Amount of Waste and Effluent Generated by Type

F.14

Waste and Effluent Management Mechanism

F.15

Occurring Spills (if any)

133 – 134
126 – 127, 130
135

Complaint Aspects Related to the Environment
F.16

Number and Material of Environmental Complaints Received and Resolved

135Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Index Number

Strategy

Disclosure

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

247

Page

Social Performance
F.17

Commitment to Provide Services on Equal Products and/or Services to Consumers

104

Employment Aspect
F.18

Equal Employment Opportunity

141, 143, 201

F.19

Child Labor and Forced Labor

201

F.20

Regional Minimum Wage

140

F.21

Decent and Safe Work Environment

147

F.22

Employee Capability Training and Development

145

Community Aspect
F.23

Impact of Operations on Surrounding Communities

F.24

Community Complaints

F.25

Environmental Social Responsibility Activities (TJSL)

155
26, 209
77 – 81, 155

Responsibility for Sustainable Product/Service Development
F.26

Innovation and Development of Sustainable Financial Products/Services

104, 109

F.27

Products/Services That Have Been Evaluated For Safety For Customers

105

F.28

Product/Service Impact

105

F.29

Number of Product Recalls

105

F.30

Customer Satisfaction Survey on Sustainable Financial Products and/or Services

108

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-Dive

Index Number

Disclosure

Company Profile

248

Page
OthersG.1

Written Verification from Independent Party (if any)

175

G.2

Feedback Form

175

G.3

Responses to Feedback on the Previous Year's Sustainability Report

263

G.4

List of Disclosures According to Financial Services Authority Regulation Number 51/POJK.03/2017 concerning Implementation of
Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies

175Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

249

SUSTAINABLE DEVELOPMENT GOALS (SDGs) INDEX
SDG’sBusiness ThemeGRI Standard RelevanceDisclosure

Title Disclosure

Page

Income, salary andbenefits

GRI 202:
Market Presence (2016)

202-1

Ratios of standard entry level wage by gender compared to
local minimum wage

140

Economicdevelopment in areasof high poverty

GRI 203:
Indirect Economic Impacts (2016)

203-2

Significant indirect economic impacts

GRI 207:
Tax (2019)

207-1

Approach to tax

66

207-2

Tax governance, control, and risk management

67

207-3

Stakeholder engagement and management of concerns
related to tax

67

207-4

Country-by-country reporting

67

413-2

Operations with significant actual and potential negative
impacts on local communities

156

64

1. No Poverty
End poverty in all its forms everywhere

Operations
that impact thecommunity

GRI 413:
Local Communities (2016)

77 - 81,
161 - 162,165

2. Zero Hunger
End hunger, achieve food security and improved nutrition and promote sustainable agriculture
Economic
performance

Economic Performance (2016)

201-1

Direct economic value generated and distributed

Economicdevelopment in areasof high poverty

Indirect Economic Impacts (2016)

203-2

Significant indirect economic impacts

Operations
that impact thecommunity

GRI 413:
Local Communities (2016)413-2

Operations with significant actual and potential negative
impacts on local communities

77 - 81,
161 - 162,
165
156

Cover Story

SDG’s

Theme Explanation

Message from Top Management

Business Theme

EcosystemGRI Standard RelevanceApproach

Strategy

Performance

Disclosure

Achievements

Performance Deep-DiveDisclosure

Company Profile

Title Disclosure

250

Page

3. Good Health and Well-Being
Ensure healthy lives and promote well- being for all at all ages
Economicdevelopment WellBeing in areas ofhigh poverty

GRI 203:
Indirect Economic Impacts (2016)

203-2

Significant indirect economic impacts

Air quality

GRI 305:
Emissions (2016)

305-1

Direct (Scope 1) GHG emissions

120

305-2

Energy indirect (Scope 2) GHG emissions

120

305-3

Other indirect (Scope 3) GHGnemissions

120

305-6

Emissions of ozone-depleting substances (ODS)

123

305-7

Nitrogen oxides (NO), sulfur oxides (SO), and othersignificant air emissions

123

306-1

Waste generation and significant waste-related impacts

130

306-2

Management of significant waste- related impacts

130

306-3

Waste generated

133

306-4

Waste diverted from disposal

133

306-5

Waste directed to disposal

134

GRI 401:
Employment (2016)

401-2

Benefits provided to full-time employees that are notprovided to temporary or part-time employees

140

GRI (403):
Occupational Health and Safety (2018)403-6

Promotion of worker health403-9

Work-related injuries

153

403-10Work-related ill health154

GRI 306:
Waste (2020)

Well-being

77 - 81,
161 - 162,
165

149, 151

Cover Story

SDG’s

Theme Explanation

Message from Top Management

Business Theme

Ecosystem

Approach

Strategy

GRI Standard Relevance

Performance

Disclosure

Achievements

Performance Deep-DiveDisclosure

Company Profile

251

Title Disclosure

Page

404-1

Average hours of training per year per employee

146

404-2

Programs for upgrading employee skills and transition
assistance programs

2-9

Governance structure and composition

191

2-10

Nomination and selection of the highest governance body193

GRI 202:
Market Presence (2016)

202-1

Ratio of basic salary and remuneration of women to men

140

GRI 203:
Indirect economic impact (2016)

203-1

Infrastructure investments and services supported

159

GRI 401:
Employment (2016)

401-1

New employee hires and employee turnover

401-2

Benefits provided to full-time employees that are notprovided to temporary or part-time employees

140

401-3

Maternal Leave

140

GRI 404:
Training and Education (2016)

404-3

Percentage of employees receiving regular performanceand career development reviews

146

GRI 405-1:
Diversity and Equal Opportunity (2016)405-1

Diversity of governance bodies and employees

405-2

Ratio of basic salary and remuneration of women to men

4. Quality Education
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
Training andeducation

GRI 404:
Training and education (2016)

139, 145

5. Gender Equality
Achieve gender equality and empower all women and girls
Equal opportunity

Equal remuneration
for women and men

GRI 2:
General Disclosures

201 -203

141 - 142
143

Cover Story

SDG’s

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Business ThemeGRI Standard RelevanceDisclosure

Non-diskriminasi

GRI 406:
Non-Discrimination (2016)

Achievements

Performance Deep-DiveDisclosure

Company Profile

252

Title Disclosure

Page

406-1

Incidents of discrimination and corrective actions taken

143

303-1

Interactions with water as a shared resource

126

303-2

Management of water discharge- related impacts

127

303-3

Water withdrawal

129

303-4

Water discharge

129

303-5

Water consumption

129

304-1

Operational sites owned, leased, managed in, or adjacentto, protected areas and areas of high biodiversity value
outside protected areas

90

304-2

Significant impacts of activities, products and services on
biodiversity

90

304-3

Habitats protected or restored

90

306-1

Waste generation and significant waste-related impacts

130

306-2

Management of significant waste- related impacts

130

6. Clean Water and Sanitation
Ensure availability and sustainable management of water and sanitation for all
GRI 303:
Water and Effluents (2018)

GRI 304:
Biodiversity (2016)

GRI 306:
Waste (2020)

Cover Story

SDG’s

Theme Explanation

Message from Top Management

Business Theme

EcosystemGRI Standard RelevanceApproach

Strategy

Performance

Disclosure

Achievements

Performance Deep-DiveDisclosure

Company Profile

Title Disclosure

253

Page

7. Affordable and Clean Energy
Ensure access to affordable, reliable, sustainable and modern energy for all
Energy efficiency

GRI 302:
Energy (2016)

302-1

Energy consumption within the organization

114, 115

302-2

Energy consumption outside of the organization

114, 116

302-3

Energy intensity

116

302-4

Reduction of energy consumption

117

302-5

Reductions in energy requirements of products andservices

118

2-7

Employees

199 –
200

2-8

Workers who are not employees

199

8. Decent Work and Economic WorthPromote sustained inclusive and sustainable economic growth, full and productive employment and decent work for all
Job opportunities

GRI 2:
General Disclosures

Economic
improvement

GRI 201: Economic Performance (2016)

201-1

Direct economic value generated and distributed

64

Income, salary andbenefits

GRI 202: Market Presence (2016)

202-1

Ratios of standard entry level wage by gender compared to
local minimum wage

140

202-2

Proportion of senior management hired from the local
community

144

GRI 203:
Indirect economic impact (2016)

203-2

Significant indirect economic impacts

GRI 204:
Procurement practices (2016)

204-1

Proportion of spending on local suppliers

103

GRI 301:
Materials (2016)

301-1

Materials used by weight or volume

112

77 - 81,
161 - 162, 165

Cover Story

SDG’s

Theme Explanation

Message from Top Management

Business Theme

EcosystemGRI Standard RelevanceApproach

Strategy

Performance

Disclosure

Achievements

Performance Deep-DiveDisclosure

Company Profile

Title Disclosure

254

Page

301-2

Recycled input materials used

112

301-3

Reclaimed products and their packaging materials

112

302-1

Energy consumption within the organization

114, 115

302-2

Energy consumption outside of the organization

114, 116

302-3

Energy intensity

116

302-4

Reduction of energy consumption

117

302-5

Reductions in energy requirements of products and services

118

401-1

New employee hires and employee turnover

401-2

Benefits provided to full-time employees that are notprovided to temporary or part-time employees

140

401-3

Parental leave140

GRI 402:
Labor/Management Relations (2016)

402-1

Minimum notice periods regarding operational changes

139

GRI 403: Occupational Health and
Safety (2018)403-1

Occupational health and safety management system

147

403-2

Hazard identification, risk assessment, and incident
investigation

147

403-3

Occupational health services

149

403-4

Worker participation, consultation, and communication on
occupational health and safety

150

403-5

Worker training on occupational health and safety151

GRI 302:
Energy (2016)

201 - 203

Cover Story

SDG’s

Theme Explanation

Message from Top Management

Business Theme

Training andeducation

EcosystemGRI Standard RelevanceApproach

Strategy

Performance

Disclosure

Achievements

Performance Deep-DiveDisclosure

Company Profile

Title Disclosure

255

Page
151 - 152403-7

Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships

403-8

Workers covered by an occupational health and safety
management system

152

403-9

Work-related injuries

153

403-10Work-related ill health

154

404-1

Average hours of training per year per employee

146

404-2

Programs for upgrading employee skills and transition
assistance programs

139, 145

404-3

Percentage of employees receiving regular performanceand career development reviews

146

405-1

Diversity of governance bodies and employees

405-2

Ratio of basic salary and remuneration of women to men

143

GRI 406:
Non-discrimination (2016)406-1

Incidents of discrimination and corrective actions taken

143

GRI 408:
Child Labor (2016)

408-1

Operations and suppliers at significant risk for incidents ofchild labor201

GRI 409: Forced or Compulsory Labor(2016)

409-1

Operations and suppliers at significant risk for incidents offorced or compulsory labor201

GRI 404:
Training and education (2016)

GRI 405:
Diversity and equal opportunity (2016)

141 - 142

Cover Story

SDG’s

Theme Explanation

Message from Top Management

Business Theme

Ecosystem

Approach

Strategy

GRI Standard Relevance

Performance

Disclosure

Achievements

Performance Deep-DiveDisclosure

Company Profile

Title Disclosure

256

Page

9. Industry, Innovation and Infrastructure
Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Economicdevelopment in areasof high poverty

GRI 201:
Economic Performance (2016)

201-1

Direct economic value generated and distributed

64

GRI 203:
Indirect Economic Impacts (2016)

203-1

Infrastructure investments and services supported

159

GRI 2:
General Disclosures(2021)

2-7

Employees

2-8Workers who are not employees

199

GRI 207:
Tax (2019)

207-1

Approach to tax

66

207-2

Tax governance, control, and risk management

67

207-3

Stakeholder engagement and management of concerns
related to tax

67

207-4

Country-by-country reporting67

GRI 401:
Employment (2016)

401-1

New employee hires and employee turnover

GRI 404:
Training and education(2016)

404-1

Average hours of training per year per employee

146

404-3

Percentage of employees receiving regular performanceand career development reviews

146

GRI 405: Diversity and equal opportunity(2016)

405-2

Ratio of basic salary and remuneration of women to men

143

10. Reduced Inequalities
Reduce inequality within and among countries

Economicdevelopment in
impoverished areas

199 - 200

201 - 203

Cover Story

SDG’s

Theme Explanation

Message from Top Management

Business Theme

EcosystemGRI Standard RelevanceApproach

Strategy

Performance

Disclosure

Achievements

Performance Deep-DiveDisclosure

Company Profile

Title Disclosure

257

Page

11. Sustainable Cities and Communities
Make cities and human settlements inclusive, safe, resilient and sustainable
Infrastructure
investments

GRI 203:
Indirect Economic Impacts (2016)

203-1

Infrastructure investments and services supported

159

301-1

Materials used by weight or volume

112

301-2

Recycled input materials used

112

301-3

Reclaimed products and their packaging materials

112

302-1

Energy consumption within the organization

302-3

Energy Intensity

116

302-4

Reduction of energy consumption

117

302-5

Reductions in energy requirements of products and services

118

GRI 303:
Water and Effluents (2018)

303-1

Interactions with water as a shared resource

126

GRI 305:
Emission (2016)

305-1

Direct (Scope 1) GHG emissions

120

305-2

Energy indirect (Scope 2) GHG emissions

120

305-3

Other indirect (Scope 3) GHG emissions

120

305-6

Emissions of ozone-depleting substances (ODS)

123

305-7

Nitrogen oxides (NO), sulfur oxides (SO), and othersignificant air emissions

123

306-1

Waste generation and significant waste-related impacts

130

12. Responsible Consumption and Production
Ensure sustainable consumption and production patterns
Materials

GRI 301:
Material (2016)

GRI 302:
Energy (2016)

Air Quality

Waste

GRI 306:
Waste (2020)

114, 115

Cover Story

SDG’s

Theme Explanation

Message from Top Management

Business Theme

Product and service
information andlabeling

EcosystemGRI Standard RelevanceGRI 417:
Marketing and Labeling(2016)

Approach

Strategy

Performance

Disclosure

Achievements

Performance Deep-DiveDisclosure

Company Profile

Title Disclosure

258

Page

306-2

Management of significant waste- related impacts

130

306-3

Waste generated

133

306-4

Waste diverted from disposal

133

306-5

Waste directed to disposal

134

417-1

Requirements for product and service information andlabeling

103, 108

13. Climate Action
Take urgent action to combat climate change and its impacts
64

Economic impact

GRI 201:
Economic Performance(2016)

201-1

Direct economic value generated and distributed

Energy use

GRI 302:
Energy (2016)

302-1

Energy consumption within the organization

114, 115

302-2

Energy consumption outside of the organization

114, 116

302-3

Energy intensity

116

302-4

Reduction of energy consumption

117

302-5

Reductions in energy requirements of products andservices

118

305-1

Direct (Scope 1) GHG emissions

120

305-2

Energy indirect (Scope 2) GHG emissions

120

305-3

Other indirect (Scope 3) GHG emissions

120

305-4

GHG emissions intensity

122

305-5

Reduction of GHG emissions

122

Air quality

GRI 305:
Emissions (2016)

Cover Story

SDG’s

Theme Explanation

Message from Top Management

Business Theme

Ecosystem

Approach

Strategy

GRI Standard Relevance

Performance

Disclosure

Achievements

Performance Deep-DiveDisclosure

Company Profile

Title Disclosure

259

Page

14. Life Below Water
Conserve and sustainably use the oceans, seas and marine resources for sustainable development

Air Quality

Waste

GRI 305:
Emissions (2016)

GRI 306:
Waste (2020)

304-1

Operational sites owned, leased, managed in, or adjacentto, protected areas and areas of high biodiversity value
outside protected areas

90

304-2

Significant impacts of activities, products and services on
biodiversity

90

304-3

Habitats protected or restored

90

304-4

IUCN Red List species and national conservation list species
with habitats in areas affected by operations

305-1

Direct (Scope 1) GHG emissions

120

305-2

Energy indirect (Scope 2) GHG emissions

120

305-3

Other indirect (Scope 3) GHGemissions

120

305-4

GHG emissions intensity

122

305-5

Reduction of GHG emissions

122

305-7

Nitrogen oxides (NO), sulfur oxides (SO), and othersignificant air emissions

123

306-1

Waste generation and significant waste-related impacts

130

306-2

Management of significant waste- related impacts

130

306-3

Waste generated

133

90 - 91

Cover Story

SDG’s

Theme Explanation

Message from Top Management

Business Theme

EcosystemGRI Standard RelevanceApproach

Strategy

Performance

Disclosure

Achievements

Performance Deep-DiveDisclosure

Company Profile

Title Disclosure

260

Page

15. Life on Land
Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
GRI 304:
Biodiversity (2016)

GRI 305:
Emissions (2016)

GRI 306:
Waste (2020)

304-1

Operational sites owned, leased, managed in, or adjacentto, protected areas and areas of high biodiversity value
outside protected areas

90

304-2

Significant impacts of activities, products and services on
biodiversity

90

304-3

Habitats protected or restored

90

304-4

Red List species and national conservation list species with
habitats in areas affected by operations

305-1

Direct (Scope 1) GHG emissions

120

305-2

Energy indirect (Scope 2) GHG emissions

120

305-3

Other indirect (Scope 3) GHG emissions

120

305-4

GHG emissions intensity

122

305-5

Reduction of GHG emissions

122

305-7

Nitrogen oxides (NO), sulfur oxides (SO), and othersignificant air emissions

123

306-1

Waste generation and significant waste-related impacts

130

306-2

Management of significant waste- related impacts

130

306-3

Waste generated

133

90 - 91

Cover Story

SDG’s

Theme Explanation

Message from Top Management

Business Theme

EcosystemGRI Standard RelevanceApproach

Strategy

Performance

Disclosure

Achievements

Performance Deep-DiveDisclosure

Company Profile

Title Disclosure

261

Page

16. Peace, Justice and Strong Institutions
Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
GRI 2:
General Disclosures (2021)

Anti-corruption

GRI 205:
Anti-corruption (2016)

GRI 403:
Occupational Health and Safety (2018)

2-22

Statement on sustainable development strategy

7, 8

2-23

Policy commitments

2-24

Embedding policy commitments

2-26

Mechanisms for seeking advice and raising concerns

26

2-9

Governance structure and composition

191

2-11

Chair of the highest governance body

192

2-10

Nomination and selection of the highest governance body

193

2-15

Conflicts of interest

205

2-17

Collective knowledge of the highest governance body

193

2-25

Processes to remediate negative impacts

26, 282-19

Remuneration policies

194

205-1

Operations assessed for risks related to corruption

205

205-2

Communication and training about anti-corruption policies
and procedures

205-3

Confirmed incidents of corruption and actions taken

207

2-27

Compliance with laws and regulation (2016)

16, 135

403-4

Worker participation, consultation, and communication on
occupational health and safety

150

69, 136 - 138
16, 28206 - 207

Cover Story

SDG’s

Theme Explanation

Message from Top Management

Business Theme

EcosystemGRI Standard RelevanceApproach

Strategy

Performance

Disclosure

Achievements

Performance Deep-DiveDisclosure

Company Profile

Title Disclosure

262

Page

403-9

Work-related injuries

153

403-10Work-related ill health154

GRI 408:
Child Labor (2016)

408-1

Operations and suppliers at significant risk for incidents ofchild labor201

GRI 410:
Security Practices (2016)

410-1

Security personnel trained in human rights policies orprocedures

GRI 415:
Public Policy (2016)

415-1

Political contributions

GRI 417:
Marketing and Labeling (2016)

417-2

Incidents of non-compliance concerning product and service
information and labeling

417-3

Incidents of non-compliance concerning marketing
communications

108

207-1

Approach to tax

66

207-2

Tax governance, control, and risk management

67

207-3

Stakeholder engagement and management of concerns
related to tax

67

207-4

Country-by-country reporting

67

138, 204207
103, 108

17. Partnership for the Goals
Strengthen the means of Implementation and revitalize the global partnership for sustainable development
GRI 207:
Tax (2019)

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

INDEX SASB FORESTRY MANAGEMENT

263

Page

RR-FM-160a.1

Ecosystem Services & Impacts

Area of forestland certified to a third-party forest management
standard, percentage certified to each standard 1

Quantitative

Hectares (ha), Percentage (%)

90

RR-FM-160a.2

Ecosystem Services & Impacts

Area of forestland with protected conservation status

Quantitative

Hectares (ha)90

RR-FM-160a.3

Ecosystem Services & Impacts

Area of forestland in endangered species habitat

Quantitative

Hectares (ha)90

RR-FM-160a.4

Ecosystem Services & Impacts

Discussion and Analysis

Quantitative

n/a

90

RR-FM-210a.1

Rights of Indigenous Peoples

Area of forestland in indigenous land

Discussion and Analysis

Hectares (ha)156

RR-FM-210a.1

Rights of Indigenous Peoples

Description of engagement processes and due diligence practices
with respect to human rights, indigenous rights, and the local
community

Discussion and Analysis

n/a

156

RR-FM-450a.1

Climate Change Adaptation

Description of strategy to manage opportunities for and risks toforest management and timber production presented by climatechangeQuantitative

n/a

69

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

INDEX SASB PULP AND PAPER
RR-PP-110a.1

Greenhouse Gas Emissions

RR-PP-110a.2

Company Profile

264

Page
Gross global Scope 1 emissions

120

Discussion of long- and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and ananalysis of performance against those targets

29, 119123

RR-PP-120a.1

Air quality

Air emissions of the following pollutants:(1) NOx (excluding N2O),(2) SO2,(3) volatile organic compounds (VOCs),(4) particulate matter (PM), and(5) hazardous air pollutants (HAPs)

RR-PP-130a.1

Energy Management(1) Total energy consumed,(2) percentage grid electricity,(3) percentage from biomass,(4) percentage from other renewable energy and(5) total self-generated energy 1

114 - 115

RR-PP-140a.1

Water Management(1) Total water withdrawn,(2) total water consumed; percentage of each in regions with High or Extremely High Baseline Water Stress

126, 129

Description of water management risks and discussion of strategies and practices to mitigate those risks

127

RR-PP-140a.2
RR-PP-430a.1

Supply Chain Management

Percentage of wood fibre sourced from
(1) third-party certified forestlands and percentage to each standard and(2) meeting other fibre sourcing standards and percentage to each standard 2

88, 103

RR-PP-430a.2

Amount of recycled and recovered fibre procured 3

103

RR-PP-000.A

Pulp production50

RR-PP-000.B

Paper production50

RR-PP-000.C

Total wood fibre sourced 450

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-Dive

TCFD INDEX

Disclosure

Company Profile

265

Page
Governance

G1

Describe the board’s oversight of climate-related risks and opportunities.

17

G2

Describe management’s role in assessing and managing climate-related risks and opportunities.

17

Strategy
S1

Describe the climate-related risks and opportunities the company has identified over the short, medium, and long term.

20

S2

Describe the impact of climate-related risks and opportunities on the company’s businesses, strategy, and financial
planning

22

S3

Describe the resilience of the company’s strategy, taking into consideration different climate-related scenarios,
including a 2°C or lower scenario.

22

Risk Management
R1

Describe the company’s processes for identifying and assessing climate-related risks.

23

R2

Describe the company’s processes for managing climate-related risks

23

R3

Describe how processes for identifying, assessing, and managing climate-related risks are integrated into thecompany’s overall risk management.

25

Metrics and Targets
119

M1

Disclose the metrics used by the company to assess climate-related risks and opportunities in line with its strategy andrisk management process.

M2

Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.

119 - 120

M3

Describe the targets used by the company to manage climate-related risks and opportunities and performance against
targets.

29, 119

Cover Story

Theme Explanation

Message from Top Management

Ecosystem

Approach

Strategy

Performance

Achievements

Performance Deep-DiveDisclosure

Company Profile

266

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