Restoring vegetation cover on rehabilitated post-mining land, PT Borneo Indobara
2025 SUSTAINABILITY REPORT SUMMARY
STRENGTHENING OUR COMMITMENT
To A Low-Carbon Future
A concise, evidence-based account of how PT Golden Energy Mines Tbk (GEMS) creates lasting value — for shareholders, communities and the planet — while responsibly managing coal as a transitional energy source. This summary follows GEMS's sustainability journey from Who We Are, through Why Responsible Mining Matters, Our Strategy, Value Creation and Performance, to The Road Ahead.
Winner · Indonesia Sustainability Innovation of the Year — Metals & Mining
Runner-up · Low Carbon Transport Category, Enlit Asia 2025
This Summary distils GEMS's full 2025 Sustainability Report (prepared under GRI Standards 2021, GRI 12 Coal Sector, SASB Metals & Mining, and SEOJK 16/2021, externally assured by PT Sucofindo under AA1000AS v3 and ISAE 3000 Revised) into a navigable, evidence-first narrative for external audiences and award reviewers.
— About This Report
2025 Key Highlights
54.95
MILLION TONS
Coal Production (+8% YoY)
2,414
USD MILLION
Total Revenue
0.07
LTIFR
Zero Fatalities, Zero Occupational Disease
8.13M
M³ WATER
Stored in the Andaru Water Legacy Reservoir
5.88x
SROI RATIO
Social Return on Investment, Andaru Program
82.4%
SATISFACTION
Community Satisfaction Index, Andaru
4.20
SLOI INDEX
Social License to Operate — "High Approval"
3.56
BIODIVERSITY IDX
"Good–Very Good" category, on track to 2030 target
02
CHAPTER 01 · WHO WE ARE
A Leading Indonesian Energy Producer
PT Golden Energy Mines Tbk (GEMS) is a publicly listed coal mining company founded in 1997 and listed on the Indonesia Stock Exchange since 2011. GEMS mines, transports and trades thermal coal across a range of calorific values, supplying domestic power generation and international energy markets while positioning itself as one of Indonesia's leading, most responsibly-run coal producers.
Vision
To be the leading mining company in Indonesia by creating added value for customers and stakeholders.
Mission
Building a corporate culture centred on our people
Focusing on operational excellence
Building sustainable growth through safety, community programs and environmental resilience
The Golden Way of Sinar Mas — Our Values
Integrity
Commitment
Loyalty
Positive Attitude
Innovation
Continuous Improvement
Scale & Footprint, 2025
844.4
MILLION TONS
Coal Reserves across 66,204 ha
674
EMPLOYEES
+17,501 contractor workers (64% local)
5
SUBSIDIARIES
BIB · KIM · TKS · EMS Group · BSL
672
BUSINESS PARTNERS
99.96% of procurement spend is local
11
EXPORT MARKETS
Incl. China (52%) & India (6%)
35%
DMO FULFILMENT
vs 25% minimum requirement (18.90 Mt)
Ownership
51.0%
30.0%
10.4%
7.0%
PT Dian Swastatika Sentosa Tbk (51.0%)
PT Radhika Jananta Raya (30.0%)
Public shareholders (10.4%)
Golden Energy Resources Ltd (7.0%)
PT Sinar Mas Cakrawala (1.6%)
03
CHAPTER 01 · WHO WE ARE
Our Journey & How We Govern Sustainability
Key Milestones
1997
Founded as PT Bumi Kencana Eka Sakti
2006
Acquired PT Borneo Indobara (BIB), our flagship South Kalimantan concession
2010–11
Renamed Golden Energy Mines Tbk; listed on the Indonesia Stock Exchange
2015
Majority stake transferred to Golden Energy and Resources Ltd, Singapore
2016–18
Expanded into Sumatra (EMS Group) and acquired PT Barasentosa Lestari
Record production of 54.95 Mt; Carbon Neutral Miner 2031 roadmap advanced
Sustainability Governance
A dedicated Sustainability Division, headed by the Head of Sustainability & General Manager Office (GMO), reports directly to the President Director — coordinating GEMS's full sustainability agenda, reporting quarterly to executive leadership and annually to the Board of Commissioners and Board of Directors. The Board conducts due-diligence and impact-management reviews monthly in joint BOC/BOD sessions, ensuring sustainability oversight sits at the top of the organisation rather than in a peripheral function.
Board of Commissioners & Board of Directors → Sustainability Division → Site-level ESG & CDE teams (BIB, KIM, TKS, EMS, BSL)
Value Chain, In Brief
Coal Mining
5 concessions across 66,204 ha (BIB, KIM, TKS, EMS Group, BSL)
→
Trading
Direct sales & via GEMS Trading Resources Pte Ltd, Singapore
Before presenting a single performance figure, GEMS believes context matters. Coal remains structurally important to global and Indonesian energy security — but that importance carries a direct obligation to manage its impacts honestly and rigorously. This is the "why" behind every KPI in this report.
25–30%
Share of global primary energy consumption still met by coal (Energy Institute, 2025)
32Bt
Indonesia's coal reserves — among the world's largest producers & exporters
Rp124.6T
Non-Tax State Revenue contributed by Indonesia's mineral & coal sector in 2025
"Coal mining activities generally continue to pose significant negative environmental impacts if not consistently controlled. Activities such as land clearing, excavation, blasting, and coal transportation have the potential to cause greenhouse gas emissions, air pollution, water contamination, and disturbances to biodiversity."— GEMS 2025 Sustainability Report, acknowledging the industry's inherent risk
"We view coal as a transitional energy source that must be managed responsibly. The integration of ESG principles serves as the foundation of the Company's decision-making to ensure business sustainability amid the evolving energy landscape."— GEMS Board Message, 2025 Sustainability Report
How We Decide What Matters — Our Materiality Process
A four-step process — understanding sustainability context, identifying actual and potential impacts, assessing their significance, and prioritising material topics — anchors every strategic decision. In 2025, a Focus Group Discussion held with relevant divisions, subject-matter experts and the National Center for Corporate Reporting confirmed material topics spanning economic performance, anti-corruption, energy, water, biodiversity, emissions, waste, employment, occupational health & safety, human rights and local communities, each mapped to GRI topic-specific standards.
05
CHAPTER 03 · OUR STRATEGY
Planet, People, Profit — Anchored in Governance & Values
GEMS's sustainability strategy is built on three material pillars, underpinned by strong governance and shared values, each translated into concrete strategic objectives and tracked against 2030/2040 targets.
Planet
Mitigate environmental impact of operations
Promote biodiversity conservation and land restoration
Advance toward a Carbon Neutral Mining Operation
People
Develop sustainable, capable human capital
Build an independent, self-reliant society around our operations
Uphold occupational health & safety as a non-negotiable
Profit
Provide sustainable livelihoods across stakeholders
Manage a sustainable, locally-anchored value chain
Grow production responsibly within reserve and market limits
Governance
Strengthen good corporate governance and a responsible business culture — from Board-level oversight to site-level compliance.
Values
Integrate sustainability best practice into everyday operations through The Golden Way culture of integrity and continuous improvement.
06
CHAPTER 03 · OUR STRATEGY
Our Targets: 2020 Baseline to 2040
Focus Area
Metric
2020 Baseline
2025 Actual
2030 Target
2040 Target
Climate Change
Scope 1+2 intensity (tCO2eq/ton)
0.020
0.025*
0.015
0.010
Biodiversity
Shannon-Wiener Index
0.1
3.56
>3.0
>3.0
Waste Circularity
Hazardous (B3) recycling rate
93.3%
92.97%
90.0%
90.0%
Mine Closure
Cumulative reclaimed area
18.00%
20.02%
91.00%
91.00%
Water Stewardship
Groundwater consumption (BIB)
2.3%
2.30%
2.0%
1.5%
OHS
Fatalities
1
0
0
0
OHS
LTIFR (BIB)
0.07
0.07
<0.10
<0.05
Equality
Female employees
17.8%
21.07%
30.0%
35.0%
Equality
Local workforce
17.6%
17.5%
20.0%
25.0%
Community
Contribution to community prosperity / total costs
26.0%
38%
35.0%
50.0% (by 2050)
Community
Human Development Index, Ring 1 (BIB)
67.66
69.60
70.10
75.00
Aspiration: Carbon Neutral Mining Operation by 2031 — ahead of Indonesia's national Net Zero 2060 pathway. Electrification targets: 25% of mining fleet electric by 2026, rising to ~75% within the following two years; fuel-use reduction of ~58% vs. business-as-usual across the value chain.
Governed under a four-pillar TCFD framework (Governance, Strategy, Risk Management, Metrics & Targets). GEMS transparently discloses that a formal climate transition plan and 2°C-scenario analysis are not yet in place — both are active work areas for 2026–2027, alongside the start of Scope 3 emissions calculation.
* During the reporting year, emissions intensity increased by 7.5% compared to the previous year, primarily driven by the expansion of the emissions calculation scope — specifically the recognition of direct emissions from Land Use, Land-Use Change, and Forestry (LULUCF) in 2025, in alignment with ISO 14064-1 standards. By adopting this standard, the Company enhances the transparency, consistency, and completeness of its GHG emissions reporting, while ensuring that all relevant emission sources are identified and quantified in a more comprehensive, structured, and verified manner. This shift also improves long-term data comparability, strengthening the credibility of the emissions information disclosed by the Company.
07
CHAPTER 04 · VALUE CREATION MODEL
How GEMS Turns Resources Into Shared Value
Every GEMS activity — from a coal seam to a community water tap — follows the same value-creation logic: capital is invested, activities are performed responsibly, outputs are produced, and those outputs compound into outcomes and long-term impact for stakeholders and the planet.
Input
Financial capital, 66,204 ha of concessions, 674 employees + 17,501 contractors, community partnerships, technology & infrastructure.
→
Activities
Responsible mining, processing, logistics, decarbonisation programs, community development (CDE), stakeholder engagement.
→
Outputs
54.95 Mt coal delivered, USD 2,414M revenue generated, Rp65.8bn in community programs, restored land & treated water.
Energy security, self-reliant post-mining communities, national economic contribution, a lower-carbon legacy.
Economic Value Generated & Distributed (USD million)
2025
2024
2023
Total economic value received
2,421.81
2,716.13
2,912.96
Operating cost1
1,670.05
1,623.68
1,686.09
Employee salaries & benefits
48.30
47.19
38.90
Non-tax revenue payments2
321.52
350.74
463.70
Other payments (taxes)3
110.26
199.55
182.98
CSR / community development funds4
5.73
6.07
5.33
Dividend payments
214.08
484.26
424.31
Interest paid to creditors
6.17
5.77
7.21
Total economic value retained5
45.70
(1.13)
104.43
1 All operational expenses excluding employee salaries & benefits, interest to creditors, royalties, taxes, dividends and CSR funds. 2 Royalties, deadrent and non-tax state revenue. 3 Corporate income tax & other permits. 4 Excludes local community involvement cost embedded in the Company's business value chain (USD 91.36 million). 5 2024 value is negative due to payment that year of the 2023 final dividend (USD 85 million).
On the following pages, GEMS demonstrates this model not in the abstract but through a single, deeply-verified flagship case: Andaru Water Legacy — chosen because it is independently measured end-to-end (SROI, IKM/CSI, water-quality assurance) and stands as living proof, not a one-off CSR anecdote, of the Company's sustainable development commitment.
08
CHAPTER 05 · FLAGSHIP VALUE CREATION IN ACTION
Andaru Water Legacy
Transforming a Former Mining Void into a Living Water Reservoir
In Angsana District, Tanah Bumbu Regency (South Kalimantan), a coal pit worked out by PT Borneo Indobara (BIB) naturally filled with rain and groundwater after mining ceased. Since 2019, GEMS has invested in transforming that void — "Andaru" — into a community drinking-water source serving Desa Banjarsari and Desa Mekarjaya: not an isolated CSR gesture, but a fully-costed, independently-measured proof point of sustainable post-mining land use.
From Liability to Lifeline
BEFORE · MINE VOID
Environmental liability
Water scarcity
Community dependency
Closure obligation
→
AFTER · CIRCULAR WATER ASSET
Environmental value
Water security
Community enterprise
Long-term legacy
A Three-Stage Transformation
STAGE 1 · 2019–2023
Access Enablement
Foundation phase — core intake, treatment & household connections for underserved villages.
STAGE 2 · 2023–2024
System Enhancement
Expansion phase — wider village coverage, reliable supply through the dry season.
40 home enterprises enabled: laundry, RO refill, fishery, farming
"Thank God, I have my own income now — I can send my children to school and help my husband."
— Ibu Umi, laundry business owner, Mekarjaya
10
CHAPTER 05 · ANDARU WATER LEGACY
Long-Term Impact: A Living Proof of Sustainable Development
Environmental Legacy
A hazardous, unstable post-mining void — previously a drowning and acid-mine-drainage risk — is now a managed community asset, with 77.9 hectares of surrounding vegetation restored. Andaru redefines mine closure from a regulatory obligation into a platform for regenerative development, directly advancing GEMS's priority Sustainable Development Goals:
Priority SDGs identified in GEMS's dedicated Andaru Water Legacy submission, reflecting the program's most material, directly-attributable contributions.
5.88×
For every Rp1 the Company invests, it generates Rp5.88 in social and economic value.
Social Return on Investment figure is cumulative figure (from 2021–2024) — see Chapter 05 dimension detail on the previous page.
Local Leadership, Recognised Nationally
Sundari Puji Rahayu ("Mbak Ayu"), Treasurer of KP-SPAMS Tirta Wangi, revived the dormant water group and co-authored the village regulation now governing fair water tariffs — earning the community nickname "Wonder Woman of the Pipe Gang."
M. Solih, Chair of KP-SPAM Tirta Lumintu Jaya (Mekarjaya), led his group to be named Best KP-SPAM Manager for Kalimantan & Sulawesi (2023) and appeared on national television (Kick Andy) to share the model.
National Award Recognition
Gold Award · CSR & Sustainable Village Development 2025
Platinum · Indonesia CSR & ISDA 2025
This case is presented as GEMS's flagship proof of sustainable development — not one CSR program among many — because it is the Company's most rigorously, independently measured social investment: quantified through a dedicated SROI study, a Community Satisfaction Index survey, and ongoing third-party (Sucofindo) water-quality assurance.
11
CHAPTER 06 · OUR PERFORMANCE 2025 — ENVIRONMENTAL
Environmental Performance
11,299
TJ ENERGY
Total consumption, down from 12,299 TJ (2024)
0.025
tCO2eq/TON
Emissions intensity, on path to 0.015 (2030)
2.30%
GROUNDWATER USE
Vs. 2030 target of 2.0% (BIB)
92.97%
B3 RECYCLING
Hazardous waste recycling rate
3.56
BIODIVERSITY IDX
"Good–Very Good"; 8,148 ha cumulative restoration
Decarbonisation in Motion
31 electric hauling trucks operating (2025); 200 targeted for 2026
1,837,444 GJ energy reduction achieved in 2025 (vs. 739,791 GJ in 2024)
Bunati Port genset-to-PLN renewable switch cut 36,220 tons CO2 (79% cost saving)
Water Stewardship
Zero water-quality breaches recorded in 2025
All discharge parameters (pH, TSS, Fe, Mn, Cd) within regulatory standards
Continuous monitoring via the SPARING sensor system
Biodiversity & Land
10,121 m² cumulative coral reef conservation
4 ha orchid conservation park; active mangrove & aviary programs
20.02% of concession area reclaimed cumulatively
12
CHAPTER 06 · OUR PERFORMANCE 2025 — SOCIAL
Social Performance: Our People & Communities
0
Fatalities · 59.16M safe working hours in 2025
17.29 hrs
Average training per employee (Rp4.8bn budget)
21.07%
Female employees, up from 17.8% baseline (2020)
Community Development & Empowerment (CDE)
Rp 65.76 billion allocated across 8 pillars in 2025, reaching 1,114 households (3,342 people). Stunting in Ring-1 villages fell 42% (168 → 98 children). Local BUMDes coal-hauling partnerships contributed USD 41.81 million in 2025 (cumulative local economic contribution: USD 91.36 million).
Anti-corruption communication to all 672 business partners
0
INCIDENTS
Critical incidents reported to Board; 0 contracts terminated for corruption
Local Economic Multiplier
644 of 672 suppliers (99.96% of spend) are local — ≈USD 1,466 million
USD 205 million directed to provincial/regency-level suppliers
4 BUMDes now operate as coal-hauling logistics partners
Governance Safeguards
Whistleblowing system open to employees and external stakeholders
Zero substantiated complaints in 2025 (tax, discrimination, CDE-related)
Zero political contributions; zero environmental complaints via HSE Call Center
14
CHAPTER 07 · STAKEHOLDER RESPONSIVENESS
Beyond Channels: Proof That We Listen and Respond
Rather than list our communication channels, this chapter demonstrates responsiveness end-to-end: what a stakeholder raised, what GEMS did about it, and the measurable result. This evidence is drawn from a dedicated, independently-facilitated Stakeholder Engagement / Social License to Operate (SLTO) assessment applying the AA1000 Stakeholder Engagement Standard.
4.20
Overall Social License to Operate Index — "High Approval"
72 → 51
Stakeholders mapped, then prioritised as "To Be Engaged" via Power-Interest & AA1000 analysis
Both flagged internally as priority improvement areas for 2026
15
CHAPTER 07 · STAKEHOLDER RESPONSIVENESS
Concern → Action → Outcome (I)
Stakeholder
Concern Raised
Company Action
Measurable Outcome
National & Provincial Govt.
Siltation of the Karuh River; restricted fishing-ground access for coastal communities
River-siltation management under the "100-0-100" universal water-access program; "Kenari Jaya" fisherman empowerment program (Angsana & Bunati)
2,886 household water connections delivered; SROI of 8.23 achieved on the Kenari Jaya program
District & Sub-District Govt.
Local labour absorption; child stunting prevalence; garden/plantation land damage from mud runoff
Dump-truck driver training program; "Desa Bebas Stunting" (Stunting-Free Village) with Dinas Kesehatan; mud-canal construction
100 people trained as operators across 19 villages; clean-water stunting intervention reached 77 children (2,668 connections); food-security program reached 531 children
Village Government (20 villages)
Desire for local business opportunity in the Company's core logistics value chain; clean-water shortage (Banjarsari, Mekarjaya)
"Kampung Transporter" BUMDes hauling-contractor scheme (since 2017); Andaru / Banyu Biru Andaru clean-water program; UMKM Center
Grew from 2 to 5 BUMDes across 6 villages; UMKM Center benefited 6,703 household heads; 78% (891 of 1,133) of poor Ring-1 households lifted out of poverty
Business Partners
Desire for fair, transparent access to the Company's logistics and procurement value chain
99.96% of procurement spend (≈USD 1,466M) now flows to local suppliers; 672 registered business partners
16
CHAPTER 07 · STAKEHOLDER RESPONSIVENESS
Concern → Action → Outcome (II)
Stakeholder
Concern Raised
Company Action
Measurable Outcome
Local Community & Civil Society
Dust & noise from haul roads (Bunati); river siltation (Sebamban Lama/Baru, Trimartani); clean-water access (KPSPAMS Banjarsari & Mekarjaya)
Regular environmental monitoring with negotiated noise-compensation program; mud-canal construction; Andaru Water Legacy program
Noise compensation formally allocated to village development funds via dialogue; 1,811 households now served with clean/potable water
NGOs & Civil Society Organisations
Need for a credible, formal grievance channel to submit complaints and criticism (raised by LEKEM, a Kalimantan community-leaders forum)
Established the BLHI (Bina Lingkungan Hidup Indonesia) multi-stakeholder forum as a joint grievance and dialogue secretariat; actively vetted NGO membership for legal legitimacy
3 of 6 initial NGO members removed for failing legal-registration checks; BLHI subsequently helped de-escalate a planned protest and resolve a customary land-claim dispute (2022–2023)
Employees
Fair labour practice, competency and career development, and a safe working environment
Collective Labour Agreement fulfilment; structured training incl. future-leader development; Whistleblowing System; OHS facilities and communication
17.29 average training hours/employee; 59.16 million safe working hours logged in 2025 with zero fatalities
Shareholders & Investors
Transparency on financial condition, accountability, and ESG performance amid a softening coal-price environment
Annual General Meeting of Shareholders; Annual & Sustainability Reports assured by PT Sucofindo (AA1000AS v3 / ISAE 3000); active Investor Relations communication
Externally assured 2025 disclosures published on schedule; USD 214.1M in dividends paid despite a lower-price cycle
17
CHAPTER 08 · AWARDS & RECOGNITION
Independent Recognition of Our Commitment
ISO 45001:2018 & ISO 14001:2015 — Certified Management Systems
Occupational Health & Safety (45001) and Environmental Management (14001) certifications held Group-wide — the compliance backbone underpinning every award below.
1
The Best CEO 2024 — Best CEO category, SWA
2
Indonesia Regulatory Compliance Award — Best Enterprise, Mineral & Coal (PROPER B)
3
Indonesia Best Business Transformation 2025 — Predicate "Very Good," SWA
4
Power & Energy Awards 2025 — Runner-up, Low Carbon Transport, Bangkok
5
Indonesia Green & Sustainable Companies 2025 — Best Innovation in ESG Implementation
6
Top 50 Big Capitalization Public Listed Company — 16th IICD Corporate Governance Award
7
Appreciation Public Company 52 — Main Index, High Growth, High Dividend & High Market Cap, TEMPO IDN
8
CSR & Sustainable Village Development Awards — Gold, Karin Feed Mill Program
8
CSR & Sustainable Village Development Awards — Gold, Andaru Potable Water Program
9
Subroto Award 2025 — Ministry of Energy & Mineral Resources
10
Asian Innovation Excellence Awards 2025 — Indonesia Sustainability Innovation of the Year, Metals & Mining
11
iCIO 2025 — The Most Influential CIO, Risetiyawan Dimas Sutejo
12
ASRRAT 2025 — Platinum Rank (4-star)
13
PROPER Hijau (Green) — Ministry of Environment & Forestry rating
14
ISDA Indonesian SDGs Awards — Platinum, Andaru Potable Water Program
Click any award to view the full-resolution certificate. These awards corroborate — rather than substitute for — the performance and stakeholder evidence presented throughout this report, each independently verified by the respective awarding body.
ClimateNet Zero, aligned with Indonesia's national NZE agenda
Environment Targets
Groundwater consumption down to 1.5% by 2040
Biodiversity index sustained above 3.0
Scale the Andaru model toward an aspirational 11,000 household connections across 20 villages
Social & OHS Targets
LTIFR below 0.05 by 2040; sustained zero fatalities
Female workforce to 30% by 2030, 35% by 2040
Community prosperity contribution to 50% of total costs by 2050
In the spirit of credible reporting, GEMS discloses openly that a formal climate transition plan and 2°C-or-lower scenario analysis are not yet finalised — both are active priorities for 2026, alongside the first full Scope 3 emissions inventory.
19
CHAPTER 10
Our Footprint & How to Read More
Concessions & Mining Permit Areas
Click a marker to view subsidiary detail.
PT Borneo Indobara (BIB)
OPERATING
Location Tanah Bumbu Regency, South Kalimantan
Area 24,100 ha
Permit & Term Coal Contract of Work (CCoW), 2006–2036
Market Footprint (Share of Volume)
Domestic 37%
China 52%
IN
OTH
India (IN) ~6% · Other Asia-Pacific (OTH) ~7%: Malaysia, Taiwan, the Philippines, Vietnam, South Korea, Cambodia, Singapore, New Zealand & Bangladesh. Bar widths normalised to 100%; source shares are independently rounded.
About This Summary & Full Disclosure
This document summarises the PT Golden Energy Mines Tbk 2025 Sustainability Report (388 pages), prepared with reference to GRI Standards 2021, GRI 12: Coal Sector, SASB Metals & Mining Standards, and Indonesia's SEOJK 16/SEOJK.04/2021, and externally assured by PT Sucofindo under AA1000AS v3 and ISAE 3000 (Revised). All figures in this Summary are drawn directly from that assured report and its underlying program-level SROI and community satisfaction (IKM/CSI) assessments.
PT Golden Energy Mines Tbk
Sinar Mas Land Plaza Tower II, Jl. MH Thamrin No. 51, Jakarta Pusat, Indonesia
Sustainability Division — reporting directly to the President Director
