Sustainability
Our Commitment to Sustainability
Sustainability Development Goals
NO POVERTY
Implementing CSV (Creating Shared Value) in the form of agro-solutions to increase crop yields and welfare for 38,511 farmers.
ZERO HUNGER
Supporting Indonesia's food security by producing 14.01 million tons of fertilizer.
GOOD HEALTH AND WELL BEING
Developing an inclusive environment for children with special needs in Kampung Aren, East Kalimantan. The goal to be achieved is welfare. In this program, seed house assistance has been carried out (procurement of equipment, seeds, etc.).
QUALITY EDUCATION
Scholarships from elementary school to collegiate level.
GENDER EQUALITY
Fostering 108 women through the development of their businesses, so that they can get additional income and increase their skills.
CLEAN WATER AND SANITATION
Building public facilities and infrastructure for 18 programs, including house renovation, composting houses, SUVI training, with the total budget of Rp. 16.97 billion.
AFFORDABLE AND CLEAN ENERGY
Efficiency of energy consumption in general sourced mainly from natural gas by producing ammonia and urea with an energy consumption ratio of 35.51 MMBtu/ton Ammonia or 99% compared to the set company’s work plan and budget target, and 27.45 MMBtu/ton Urea or 98% compared to the set company’s work plan and budget target.
DECENT WORK AND ECONOMIC GROWTH
Support inclusive and sustainable economic growth, full and productive employment and decent work for all.
INDUSTRY, INNOVATION AND INFRASTRUCTURE
Build durable infrastructure, support inclusive and sustainable industrialization and foster innovation.
REDUCE INEQUALITIES
Build disability friendly empowered villages.
SUSTAINABLE CITIES AND COMMUNITIES
Build inclusive, safe, durable and sustainable cities and settlements.
RESPONSIBLE CONSUMPTION AND PRODUCTION
Ensure sustainable consumption and production patterns.
CLIMATE ACTION
Take urgent action to combat climate change and its effects.
LIFE BELOW WATER
The empowerment of floating net cages.
LIFE ON LAND
Protect, restore and promote sustainable use of terrestrial ecosystems, manage forests in a sustainable manner, combat desertification, halt and reverse soil degradation and halt biodiversity loss.
PEACE, JUSTICE AND STRONG INSTITUTIONS
Support peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable as well as inclusive institutions at all levels.
PARTNERSHIP FOR THE GOALS
Strengthen implementation measures and revitalize the global partnership for sustainable development.
Sustainability Governance
In line with its commitment, Pupuk Indonesia has established a structured team for the development and implementation of Environmental, Social, and Governance (ESG) initiatives, authorized by the President Director. The ESG team comprises divisional Directors and the Deputy President Director, each responsible for ensuring sustainability within their respective areas. The President Director provides guidance and oversees the sustainability activities undertaken by the team.
Risk- and Performance-Linked Remuneration
We implement a remuneration policy aligned with sustainable governance principles by directly linking compensation to performance, compliance, and risk exposure within defined tolerance limits. The remuneration structure is designed to be fair and accountable, aiming to drive the achievement of Key Performance Indicators (KPIs), reinforce a culture of compliance, and support the creation of long-term value that balances economic, social, and environmental aspects.
Duties and ResponsibilitiesTeam Decree
Sustainability Policy
Pupuk Indonesia has developed a Sustainability Policy that has been approved by the President Director. This policy serves as a guideline to ensure compliance with relevant regulations while promoting long-term value creation for stakeholders through sustainable business practices. The Sustainability Policy addresses Environmental, Social, and Governance (ESG) aspects.
Sustainability PolicyOur Priority Program for SDGs
Scholarships for Elementary to Collegiate Level
Pupuk Indonesia provides financial aid for underprivileged students to continue their education from elementary school to university level. In addition, the company also provides literacy education aid and the ABC package equivalence education. Outstanding students who receive educational sponsorship from Pupuk Indonesia come from various regions in Indonesia.
Disability-friendly Empowerment Village
Pupuk Indonesia, together with the community, has developed a program that not only focuses on environmental preservation, but also emphasizes the participation of all levels of society, including people with disabilities. This program conducts the cultivation of sugar palm plants that can absorb pollution, as well as providing an inclusive environment for people with disabilities. In addition, the Disability-friendly Empowerment Village is revitalizing the community interaction space and synergizing with business incubators in terms of Covid-19 emergency response that prioritize the benefits of all stakeholders.
The Empowerment of Floating Net Cages
Pupuk Indonesia fosters local communities in the Tanjung Limau, Tanjung Gusung and Bontang Kuala waters to diversify the cultivation of 4 types of Grouper fish and 5 types of Lobster which seeds have been given to 74 fishermen who are members of the BEM Union. Through this activity, union members have expanded the number of cages to 120 plots and receive additional income of up to IDR 450,000 – IDR 4.5 million per month. Pupuk Indonesia also fosters fisherwomen to manage processed fish cultivation products for sale in the market, and even for export inquiry.
Our Support to Food Security
We support Indonesia to be a sovereign country by strengthening its food security, helping the country to produce food, creating products, and services. Pupuk Indonesia also provides agricultural solutions needed by the country. The presence The presence of Pupuk Indonesia Group has a positive correlation with the realization of food security which can be achieved through 4 pillars, namely:
- Food availability (production and imports)
- Food reserves
- Diversification of consumption and food safety
- Prevention and control of food insecurity in the provision of such food.
Clean Energy, Environment-Friendly, and Focus on Community Empowerment
Pupuk Indonesia Group is proactively seizing the opportunity to play an important role in the ongoing wave of energy transition to a low-carbon energy system at the global level. Pupuk Indonesia Group is accelerating the decarbonization and democratization of renewable energy which is believed to provide opportunities for the country to build a cleaner, more resilient, cost-effective and safer energy system. Advances in technology can deliver big leaps and will go hand in hand with the affordability of clean energy. Pupuk Indonesia Group continues to strive to be a pioneer in the development of clean, new and renewable energy.
Materiality Topics
Pupuk Indonesia conducts a materiality assessment every year to ensure that its sustainability strategy remains aligned with the most significant issues for the business and its stakeholders. This process applies two approaches: an Internal Review (80% compartment representatives) and an External Review (involving 41 representatives of external stakeholders, including employees, customers, business partners, regulators, and the community).
The methodology employed includes surveys and other quantitative methods to measure:
The review identified 31 material topics, all of which are relevant and aligned with the GRI Topic Standards. These topics are mapped into a materiality matrix, integrated into the Enterprise Risk Management (ERM) process, and adopt the principle of double materiality, which considers both the Company’s impact on society and the environment, as well as external impacts on the Company. This materiality assessment is conducted annually through a review process and has been approved by the Board of Directors.
The materiality assessment serves as an important step to strengthen Pupuk Indonesia’s sustainability strategy in a structured and strategic manner, ensuring that the Company’s sustainability strategy is implemented in a focused and effective way. Pupuk Indonesia is committed to continuously refining its materiality assessment methodology in the future. Further information regarding the Materiality Assessment process is available on pages 44–49 of Pupuk Indonesia’s 2024 Sustainability Report.
Associations and Organizational Engagement
Alignment of Association Memberships with the Paris Agreement
Pupuk Indonesia (Persero) is committed to ensuring that all strategic association memberships—particularly with the International Fertilizer Association (IFA) and the United Nations Global Compact (UNGC)—are aligned with the objectives of the Paris Agreement. The company conducts regular reviews to assess the alignment of each association’s position with Pupuk Indonesia’s vision, mission, and climate commitments
Governance and Oversight
Pupuk Indonesia’s activities within IFA are coordinated across relevant divisions and overseen directly by the President Director of Pupuk Indonesia, who also serves as the Chairman of the IFA Sustainability Committee. This role ensures that the company’s engagement at both national and international levels remains consistent with its corporate sustainability vision.
Managing Misalignment
In the event of policy misalignment between the company and an association, Pupuk Indonesia prioritizes constructive dialogue to promote alignment. Should significant differences persist, the company will consider adjusting its level of involvement or terminating its membership.
Information Security
Pupuk Indonesia ensures the protection of all company information assets by implementing comprehensive policies and procedures. Data security is regarded as a foundational element of stakeholder trust and operational continuity. Through the company’s Information Security Management System (ISMS) policy, each business unit actively works to mitigate risks and adapt to technological advancements.
Our commitment is reflected in the following strategic actions:
- Establishing accountable functions and ensuring that each business unit fulfills its role in maintaining the effectiveness of the ISMS
- Continuously improving the information security system, including setting ISMS objectives, conducting internal audits, and review the effectiveness of the system periodically
- Socializing the ISMS policy to all stakeholders and ensuring that risk management strategies and processes are implemented in alignment with ISO 27001 standards
- Ensuring the availability of adequate resources to build, implement, and continuously improve the ISMS
Pupuk Indonesia held a Sharing Session themed “Information Security Awareness for Pupuk Indonesia Group Employees.” The event aimed to enhance employee awareness of the importance of information security and how they can contribute to safeguarding the confidentiality and integrity of company data.
The session was attended by over 450 employees from various divisions and job levels, promoting a shared understanding of information security responsibilities across the organization.
To ensure that Pupuk Indonesia has a clear process for handling incidents, vulnerabilities, or suspicious activities reported by employees, the company has implemented the IT Complaint Management Procedure, documented under reference number PI-TIN-PR-023. This procedure outlines the following steps:
- User: Submits a ticket to report IT service or non-technical complaints.
- Service Desk:
- Receives complaints from users related to IT services or non-technical issues
- Verifies the type of complaint and determines whether it is technical or non-technical
- If the complaint is technical, it is managed according to the Service Desk Management Procedure for incident types
- If the complaint is non-technical, the ticket is recorded and escalated to the Complaint Manager.
- Complaint Manager:
- Coordinates follow-up actions to ensure similar complaints do not recur
- Closes the complaint record upon resolution
Through these steps, Pupuk Indonesia is committed to safeguarding company data and information, and ensuring that all parties involved can easily report and address issues related to information security.
Tax Compliance
Pupuk Indonesia consistently upholds the principles of sound tax governance, emphasizing integrity in every aspect of tax management and ensuring full compliance with all applicable tax laws and regulations in Indonesia.
The company views tax compliance not merely as a legal obligation, but as a vital contribution to national development. Accordingly, Pupuk Indonesia continues to strengthen its tax management system to ensure transparency, accountability, and alignment with the principles of Good Corporate Governance.
Through a proactive and integrity-driven approach, Pupuk Indonesia—via the Joint Agreement of the 2024 Tax Working Group Agenda of Pupuk Indonesia Group—reaffirms its commitment to being a trusted partner to the government and all stakeholders in fostering a healthy and sustainable tax ecosystem.
