Attaining the Highest ESG Rating in Indonesia for the Utility Sector, Pertamina Geothermal Energy is Committed to Driving Business Sustainability

Jakarta, November 15, 2023 - The Environment, Social, and Governance (ESG) implementation practices by PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO) have been recognized for their tangible benefits. This appreciation was expressed with a score of 8.4, indicating a negligible risk category from the global ESG rating agency Sustainalytics on Tuesday (14/11). The rating obtained by PGE signifies the company's successful ESG risk elimination.

This outstanding achievement positions the company as the utility sector entity holding the highest ESG score in Indonesia and third globally.

Sustainalytics' ESG assessment marks the inaugural evaluation for the company, post its transition to a public entity, considering environmental, social, governance, and corporate governance aspects.

Julfi Hadi, the President Director of PT Pertamina Geothermal Energy Tbk, expressed immense pride in receiving recognition from this global institution. However, he emphasized that this positive achievement translates into a responsibility that must be continuously maintained and enhanced.

"This rating reflects the company’s excellence in implementing ESG practices. This recognition demonstrates that PGE has integrated sustainability into its business operations. Once again, thank you," Julfi stated.

For reference, Sustainalytics is a global ESG rating agency that assesses the ESG risk exposure of companies operating in specific industries.

In measuring and evaluating ESG ratings, Sustainalytics gauges a company's exposure to material ESG risks in specific industries and how effectively the company manages these risks.

Julfi explained PGE's seriousness regarding ESG aspects, one of which has been implemented in the Lahendong area, North Sulawesi. In this area, PGE established the Mapalus Tumompaso Circular Economy System. This program has educated over 1,400 locals through the Sustainable Village Enterprise Program (Usaha Desa Wisata/SADEWI), Maria Self-Reliant and Empowered Business Group (Kelompok Usaha Bersama Mandiri dan Berdaya Maria/KUBEMADA), Livestock Business with Renewable Energy, and the Setor Jo Waste Bank.

"The Mapalus Tumompaso Circular Economy System has also empowered the community to gain supplementary employment and enhance the local economy," he mentioned.

Furthermore, Julfi noted that other ESG practices have been applied through the Kamojang Green Living Ecosystem (KANG ELIE) program in the Kamojang area, West Java.

According to Julfi, this program is an ecosystem innovation for environmentally conscious community empowerment with three main values: green lifestyle, sustainability, and resilience.

"KANG ELIE has achieved the Gold Champion award for the Economy Element category at the 2023 Indonesia Social Responsibility Awards (BISRA)," he added.

Julfi highlighted that all the ESG programs implemented reflect PGE's dedication to advancing sustainability agendas, with ongoing and future initiatives aimed at further enhancing ESG performance and delivering benefits to the environment and surrounding communities.

Fadjar Djoko Santoso, Vice President of Corporate Communication of PT Pertamina (Persero), added that this ESG rating strengthens Pertamina Group's role as a sustainable company. Apart from PGE, several Pertamina sub-holdings have also received positive ESG ratings, such as PT Pertamina Hulu Energi, PT Kilang Pertamina Internasional, and PT Pertamina Power Indonesia.

"The ESG rating reflects Pertamina Group's efforts in implementing ESG aspects, both for corporate business and ESG programs for the community, thereby impacting Pertamina's NZE efforts and social welfare," explained Fadjar.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**