ENERGY MANAGEMENT (GRI 3-3, 305-5) IndoAgri is committed to reducing energy consumption and improving efficiency through the following core strategies: Implementing Certified Energy Management Systems: We have implemented ISO 50001-certified energy management systems in two refineries and 19 mills, with two more mills currently undergoing certification. Optimising Boiler Operations: We have optimised boiler combustion chambers by lowering oxygen levels, resulting in reduced overall energy use. Energy Conservation through Water Reuse: We reuse condensate water from boilers, conserving water and cutting the energy required to heat new water. Ensuring Maximum Operational Efficiency: We conduct regular maintenance and review operational parameters to ensure boilers operate at maximum efficiency Reduce Reliance on Non-Renewable Energy Sources: We are gradually increasing the use of renewable alternatives in our refineries and palm oil mills. Our sustainability team collaborates closely with Indofood Group to share best practices and drive continuous improvement. In 2024, our Komering factory underwent an energy audit through the Indonesia Denmark Energy Partnership Programme (INDODEPP)8. The audit identified key areas for improvement. We will utilise these findings to develop and implement a comprehensive energy efficiency plan, aiming to reduce energy consumption and operational costs. We carried out a similar audit at the Pati Sugar Factory in August 2025 in collaboration with the Indonesian Ministry of Energy and Mineral Resources (ESDM) and the Indofood Group. The audit focused on identifying opportunities to expand the use of recycled condensate water. Two energy audits were also conducted in 2025, one at a factory in Bandung and another in East Java. These audits, funded by the Indonesia-UK PACT country fund9, identified key opportunities to improve energy efficiency. The Kertasarie Tea Factory audit provided suggestions on lighting, motor optimisation, and process improvements. At the Alas Sukses Factory, the audit included recommendations for installation of a capacitor bank to improve power factor and boiler fuel replacement to biomass. We are now reviewing the audit findings to develop and implement targeted energy-saving initiatives tailored to each factory. We recorded a 5% reduction in energy consumption intensity in our mills in 2025 compared to the 2020 baseline. We observed a 20% increase in energy consumption intensity in our refineries relative to the 2020 baseline. This was due to the commissioning of a refinery and fractionation plant. 8 INDODEPP refers to the Indonesia–Denmark Energy Partnership Programme, an initiative between the Indonesian government and the Danish Energy Agency aiming to support Indonesia’s transition to a sustainable and low-carbon energy system. 9 The Indonesia–UK PACT Country Fund is part of the UK government’s Partnering for Accelerated Climate Transitions (UK PACT) initiative. Assessment and feasibility study for an energy conservation programme at PT Laju Perdana Indah Sugar Factory, Pati, Central Java. 29 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
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