DELIVERING EXCELLENCE

DRIVING

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DRIVING GROWTH DELIVERING EXCELLENCE

Brand Book Guidelines & Applications

DRIVING GROWTH DRIVING DELIVERING EXCELLENCE PT XL Tbk XL Axiata PT Tower XL Axiata – 12, X5. Kav.11 Said Jl. HR Rasuna Selatan, Setiabudi, Timur, Kuningan - 12950 Jakarta 1881 576 (62-21) Tel. 1880 576 (62-21) Fax. www.xl.co.id DRIVING GROWTH DELIVERING EXCELLENCE

The life of modern society is inseparable from the digital world that serves as a means of communication to build relationship with families, a platform to shop, find information, learn, and conduct business transactions to develop the economy. The progress of a nation is as fast as the progress of its digitization. With this in mind, XL Axiata supports our beloved nation to continue to advance and develop by providing the best: Driving Growth, Delivering Excellence.

XL Axiata’s commitment to this nation is actualized in our goal, i.e “To Develop Indonesia through Technology Democratization.” However, our role is not only to develop the economy, but also to develop the society and the environment through various digitalization program. Building Prosperity, Nurturing People, Process Excellent, and Planet & Society are The 4 pillars that underlies the company in operating our sustainability strategy. Our plan to build XL Axiata into a sustainable Telecom company has begun to be implemented and will be constantly developed. We believe that digitization has a pivotal role in this journey, and we are committed that through connectivity, we will support the global citizens’ efforts to realize 17 SDGs targets by 2030.

2015 2016 2017 2018

CONTINUE GROWTH IN THE DIGITAL ERA 1 Ceo Report Achievements of XL Axiata Sustainability Commitment of XL Axiata Responsible Business About The Report 3

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Digital A onsumer ment tate Responsible Business S in C Giving INDEKS GRI STANDARD GRI INDEKS AND GRI THE SDG’S LINKING STNDARDS REPORT PERIOD REPORT OF CONTENT DETERMINATION AND SCOPE STAKEHOLDERS CUSTOMER PRIVACY CUSTOMER ABOUT THE REPORT 67 72 SISTERNET 73 65 PLANET & SOCIETY 67 62 63 64 81 77 77 75 79 79 85 89 66 84 74 78 T)

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PERFORMANCE XL Axiata XL PERFORMANCE PROCESS EXCELLENCE PROCESS 59 60 47 45 SUSTAINABILITY POLICY SUSTAINABILITY BUILDING PROSPERITY 28 31 31 37 43 Leadership 44 NURTURING PEOPLE NURTURING 35 AWARD 2019 AWARD 2019 HIGHLIGHTS EVENT ABOUT XL AXIATA CEO REPORT CEO ACHIEVEMENTS OF XL AXIATA SUSTAINABILITY OF COMMITMENT XL AXIATA 9 12 16 10 27 28 58 34 8 4 26 TABLE OF CONTENTS OF TABLE SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK XL AXIATA PT 2019 REPORT SUSTAINABILTY 2 ReportCeo

Connectivity is the key to realize CEO REPORT the 17 Sustainable [GRI 102-14] Development Goals by 2030. XL The presence of new Achievements of XL Axiata Axiata has become technology will bring up the leading and trusted information new opportunities too. technology DIAN SISWARINI President Director & CEO infrastructure provider, building

connectivity to Sustainability Commitment of XL Axiata improve community welfare and and more efficient. XL Axiata such as applying a “green environmental supports the development of building” concept in each of our preservation. the nation by providing digital buildings. Sustainability aspects services for the development are incorporated in our KPI of Indonesia. “Driving growth, performance measurements. delivering excellence” is our Dear stakeholders, commitment to drive the growth and progress of this nation by ECONOMIC Current developments in the providing service excellence. PERFORMANCE digital world are underlying

growth acceleration in many The growth of the overall digital Our support to this nation is not sectors. Digital services enable world supports the growth Responsible Business limited to taking a role in digital us to stay connected from afar, of XL Axiata. As the second technology only, as we also attend classes without having to largest telecommunications strive to utilize digital technology step on campus, sell products service provider in Indonesia, to develop social welfare and without having a store, and work XL Axiata currently provides environmental preservation. without having to come to the 3,319.9 Petabytes that are We actualize this commitment office. Everything seems possible transmitted through 130,217 BTS in a sustainability “roadmap” on a digital platform. (Base Transceiver Stations) in that is encompassed in our around 425 cities in Indonesia. 4P Sustainability Framework: Further, such developments of We continue to improve our Building Prosperity, Nurturing Indonesia’s digital world and service excellence, attracting People, Process Excellence, information technology are encouraging results and Planet & Society. Year to year, increasing rapidly year on year, increasing total customers to we determine specific targets to About The Report indicated by the expansion of 56.7 million, 1.8 million more realize an XL AXIATA 2022 that coverage areas, increase in the than our customer base of the is building itself as a company internet, and adoption of the previous year. that has a sustainability DNA. We latest technology that is faster adopt sustainability principles in every aspect of operations,

4 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 5 ReportCeo

to support and expand i.e. a women’s empowerment reporting year, we were able to Indonesia’s digital inclusion program using digital platform. save 122,010 joules of energy to more regions and even and reduce emissions equivalent reach beyond its operational No less important is building to 3.9 Tons of CO2. scope. Working closely with future leaders through the XL the government through the Future Leaders (XLFL) program. To reduce waste generation, Achievements of XL Axiata Universal Service Obligation This program has helped equip we have minimized the use of (USO) program, XL Axiata opens 1,150 university students and plastics such as in plastic cups, digital access in remote areas to 700 high school students from bottled mineral water, styrofoam help improve people’s welfare in various regions in Indonesia with plates, and others. We also sort these regions. the curriculum to enhance their domestic waste in our offices. communication, innovation, and Expanding beyond merely entrepreneurship skills. As part The growth and progress of providing digital facilities, XL of the XLFL program, e-Learn, XL Axiata are attributed to

Axiata wants everyone to have or online learning, has been hard work of the Board of Sustainability Commitment of XL Axiata the confidence, the knowledge accessed by 38,000 active Directors and all employees who and the skills to take part in the users from 2013 up until now. have given their thoughts and digital world in a safe, effective dedication to the development and efficient manner, and seek of this Company. We also Our infrastructure growth welfare by increasing salaries 24 hours a day, 7 hours a week, ways to promote this. Therefore, ENVIRONMENTAL recognize the support of our is in line with the growth in and remuneration as well as in addition to the 600 customer we have prepared applications PERFORMANCE stakeholders who encourage revenue in the reporting year, community investment in the and created a forum to help us to continuously achieve the service officers and 95 retail We continue to take every which reached Rp25,150 billion form of implementation of CSR realize this. One of these is best. To that end, we would outlets throughout Indonesia. effort to turn XL Axiata into a billion, or an increase of 9.34% programs. the Laut Nusantara app, which like to thank all the partners, sustainable telecommunications compared to the previous year. receives recommendation from employees and stakeholders company that cares about the Thus, government expenditure We believe that this increase the Ministry of Maritime Affairs who together have strived SOCIAL environment. We attempt to in the form of taxes will also is the result of the excellent and Fisheries, through which to make XL Axiata the most PERFORMANCE continuously save energy by

increase in 2019. This increased services we provide customers fishermen can get information trusted telecommunications and Responsible Business Digital access has not yet been setting schedule of electricity revenue of course allowed such as XL Care, which is ready about fish location, which digital company in Indonesia. We evenly distributed throughout usage, implementing “Green us to improve employee to respond to customer needs is expected to be able to hope that this cooperation can Indonesia, particularly in BTS” program, and so forth, ultimately help them increase continue to be developed in the remote and border areas. as our activities are mainly their income by preventing coming years for the progress XL Axiata believes that concentrated in buildings and them from wasting fuel and and development of our beloved connectivity and internet offices, thus consuming much going to sea without good nation and for the achievement access are rights of all people electricity. By doing so, in the results. We also built Sisternet, regardless of age, income, of sustainability goals. Our goal is “To ability or location. Connectivity opens relationships, expands Develop Indonesia insights and knowledge, and improves economic growth and through Technology community welfare. Our goal is On behalf of Board of Directors About The Report to “Develop Indonesia through Democratization.” Technology Democratization”. To that end, XL Axiata has implemented various initiatives

Dian Siswarini President Director & CEO

6 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 7 C PERFORMANCE eo Report XL Axiata 2019

Rp25,150 3,319.9 130,217BTS Achievements of XL Axiata billion Petabyte Number of BTS Income Total of Production (Base Transceiver Station)

30,474 718.3 1,606 Sustainability Commitment of XL Axiata kilo joule Ton CO 2 eq Number of employees ENERGY CONSUMPTION Emission (Permanent and contract)

28.65 Rp6.7trilion Rp13billion hours Expenditures for expenditures Average hours of training Government 2019 for society Responsible Business

6,650 1,000 >38,000 Number of women Total young leaders Total young leader empowered 2019 are built through candidates get online the Future Leaders training through eLearn.id ACHIEVEMENTS program

OF XL Axiata About The Report

routers & >25,000 We take our part in building Indonesia by 1,200 1,149 Total students get Total fishermen get benefit providing digital technology infrastructure to training from 85 from digital technology 271.97TB qouta support Indonesia’s development in the digital XL Axiata employees through the Nusantara Sea through the XL Shares Successfully donated to application 4.0 revolution era towards a brighter future. program schools through the qouta Donation Movement (GDK) program

8 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 9 AWARDS 2019 ReportCeo Achievements of XL Axiata

06. Sustainability Commitment of XL Axiata 04. 08. 02. 01. 03. 07. 09. 10&11

01. THE PR INDONESIA AWARD 05. Asia’s Power Businesswomen 07. The 11th IICD Corporate 10. Marketeers Editor’s Choice Governance Conference and Award 2019 Award from PR Indonesia for XL Axiata’s CEO of XL Axiata, Dian Siswarini, was named Award 2019 capability to maintain positive publications in one of Asia’s Power Businesswomen by Forbes XL Business Solutions Won Marketeers Editor’s the mass media. for her significant role in shaping business XL Axiata received “The Best Role of Choice Award 2019 in the “IoT Product of the landscape in the Asian region. Stakeholders” and was ranked 20th on “The Year” Category 02. APPRECIATION OF INNOVATION Biggest Market Capitalization Public Listed Companies” from the Indonesian Institute for 11. Marketeers Editor’s Choice Responsible Business XL Prioritas won the “Product and Technology Corporate Directorship (IICD) for its social Award 2019 Innovation” award in the “Apresiasi Inovasi responsibility. Through the Behind the Cubical webseries, XL (Innovation Appreciation)” event by SINDO 06.Indonesia’s Best Axiata achieved the Breakthrough Content Newspaper. 08. Apresiasi Perempuan Hebat Corporate Social Marketing of the Year award from Marketeers Initiatives 2019 Indonesia 2019 th 03. Selular Award Editor’s Choice Award 2019 in the 14 Annual Dian Siswarini, CEO of XL Axiata, was Markplus Conference 2020 event. XL Axiata’s flagship XL Axiata won 3 awards from Selular.id, elected as one of the recipients of Apresiasi CSR program, Laut namely: Best Network Transformation, Best Perempuan Hebat Indonesia 2019 (Indonesian B2B Service, and CEO of The Year conferred Nusantara, won “The Best Great Women Appreciation 2019) Award from upon Mrs. Dian Siswarini. Creating Shared Value” in SINDO Media. Indonesia’s Best Corporate 04. Indonesia’s Most Impactful 09. Stellar Workplace Award

Social Initiative 2019 About The Report Women Leaders 2019 award from SWA and MIX CEO of XL Axiata, Dian Siswarini, achieved an magazines. XL Axiata received an award in the category award as one of “Indonesia’s Most Impactful of Employee Commitment & Employee Women Leaders 2018” by Warta Ekonomi Satisfaction in the Stellar Workplace Award magazine. 2019 held by PT GML Performance Consulting in partnership with Kontan newspaper which aims to survey and analyze Employee Engagement and Organizational Performance.

10 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 11 EVENT HIGHLIGHTS 2019 ReportCeo CARES ABOUT PEOPLE BUILDS THE NATION

21 MARCH 2019 8 MARCH 2019 4 APRIL 2019

1 MARCH 2019 Aid for Natural Disaster Supporting Development Support For Development Achievements of XL Axiata Victims of The Outer Anambas Acceleration Outside 1000 Schools Acquired Besides aid to prepare always-on network Islands To date, XL Axiata’s data network has reached Internet Access during emergency, XL Axiata distributed XL Axiata’s service coverage reaches around 440 cities/regencies throuhgout Indonesia, in which 19,000 new BTS were XL Axiata distributed internet access aid to victims of natural disasters in various remote areas, including outer islands mostly installed outside Java and fiber optic donation to more than 1000 schools in regions, such as landslides victim (Jan4), like Anambas Islands, with the backbone networks of more than 45,000 km various regions across Indonesia which flood victims in (Jan25), flood activation of LTE network. will be continuously developed in , were used by more than 494,100 students. victims in Central Java & DIY. and Sulawesi. Sustainability Commitment of XL Axiata

4 APRIL 2019 14 APRIL 2019 27 APRIL 2019 XL Axiata Introduced Laut Nusantara Application to Banyuwangi Fishermen XL Axiata’s Support for XL Axiata & BNPB Built Disaster XL Axiata conducted dissemination session of Laut Nusantara apps to Indonesian Presidential Election 2019 Response Cooperation fishermen in Banyuwangi. This program was also attended by Banyuwangi Regent, PT XL Axiata Tbk (XL Axiata) has PT XL Axiata Tbk (XL Axiata) had prepared Abdullah Azwar Anas M.Si, Head of the Institute for Marine Research and Observation prepared a reliable network to adequate infrastructure to anticipate traffic (BROL) of the Ministry of Maritime Affairs & Fisheries (KKP), Dr. I Nyoman Radiarta M.Sc, anticipate traffic increase arising from surge during Presidential Election period. and XL Axiata’s President Director & CEO, Dian Siswarini. the Presidential Election event.

august-

1 JUNe 2019 30 august 2019 29 MAY 2019 26 AUGUST 2019 September 2019 Responsible Business

1,300 Partners Joined Digital Technology to Increase XL Axiata And Ministry XL Axiata Supported XL Axiata and Bakamla XL Axiata’s Mass Home- Fishermen’s Productivity of Transportation The Economy with 4G Ri Pioneered “Desa Coming Laut Nusantara apps was the topic brought forward Launched “Peta Network Extension in Maritim” in Various Continuing the routine program held in the “Inovasi Bahari (Maritime Innovation)” event Jelajah Nusantara” Sumbawa Islands every year, PT XL Axiata Tbk (XL initiated by the Institute for Marine Research and PT XL Axiata Tbk (XL Axiata) in XL Axiata continues to improve XL Axiata and Maritime Security Axiata) once again held Mass Home- Observation (BROL) of the Ministry of Maritime cooperation with the Ministry of customer convenience for fast Agency (Bakamla) of the Republic Transportation of the Republic of internet access and data services of Indonesia cooperates in building coming program for 1,300 retailer Affairs & Fisheries in Desa Perancak, Jembrana Indonesia (Kemenhub) launched across various parts of West “Desa Maritim” in several locations Regency, . Present at the event was Expert Staff partners of XL Axiata top-up voucher “Peta Jelajah Nusantara” digital Nusa Tenggara (NTB). One of the in the border area, such as Sebatik of the Minister of Maritime Affairs and Fisheries in and products coming from the Greater navigation apps as a guide for prioritized areas is Sumbawa Island. Island, Regencies of Nunukan Jakarta area. the Field of Ecology and Marine Resources, DR. Aryo people traveling on land. First present in 2017, now XL Axiata and Asahan, North Sumatra. This Hanggono, DEA. has 74% of a total 180 thousand cooperation includes the application About The Report customers that have accessed 4G of digital facilities and technology to services. improve life quality of the surrounding 17 NOVEMBER 2019 community.

XL Future Leaders Student Graduation OCtober-DeCember 2019 XL Axiata graduated batch 6 of XL Future Leaders (XLFL) Program students and began lecture sessions Inaugurated Uso Network in NTT, XL Axiata Supported Even Development in for the new batch. With the coming of this new batch, there are now around 300 students taking part in The Eastern Indonesia the program. These new students came from 45 universities located in 20 provinces. XL Axiata’s USO network development in 2019 covered 289 spots in various provinces which are mostly part of the Eastern Indonesia (KTI), including the Province of East Nusa Tenggara (NTT).

12 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 13 ReportCeo BUSINESS DEVELOPMENT SERVICE FOR CUSTOMERS

24 MAY 2019 24 MAY 2019 16 APRIL 2019 4 SEPTEMBER 2019 Achievements of XL Axiata

XL Axiata Launched A Package for Millenials XL Axiata and The 4G Wifi Modem to Improve Attractive Offers on To meet the needs of the youth segment for fast internet Ministry of Religious Customer Convenience National Customer Day services with large quotas, XL provides a new package. Besides Affairs Launced In order to maximize customer 2019 large quota, the customers will get affordable prices and access Madrasah Aliyah 4.0 convenience on XL Go IZI broadband Welcoming the National Customer to various social media apps and games. Program service, XL Axiata introduces premium Day 2019, PT XL Axiata Tbk (XL XL Axiata and the Ministry quality 4G WiFi Modem. This latest Axiata) introduced the theme of Religious Affairs of the WiFi Modem will help customers gain “Untukmu #JadiLebihBaik” (“For 3 JULY 2019 Republic of Indonesia fast internet access experience to the You #Become Better”) and held Sustainability Commitment of XL Axiata (Kemenag) worked closely maximum any where and any time. a number of attractive programs together to develop and offers as an appreciation to Princeton Digital Group Acquired Capital digitalbased education tens of millions of customers. Ownership Worth Usd 100 Million for Madrasah Aliyah which Princeton Digital Group (PDG), a -based investor, developer will reach at least 400 and operator of internet infrastructure supported by Warburg Pincus, Madrasah Aliyah spread reached an agreement to acquire 70% of ownership of Data Center throughout Indonesia. service portfolio business of PT XL Axiata Tbk (XL Axiata). The Joint Venture known as the Princeton Digital Group Data Centers will support the strategic existence of PDG in Indonesia as the largest digital economy in Southeast Asia by 2025.

19 JULY 2019 21 AUGUST 2019 25 SEPTEMBER 2019 16 APRIL 2019 Responsible Business

XL Axiata Continuted to XL Axiata Once Special Package of Hajj Pilgrims in Cooperation with All Operators in XL Axiata Performed Saudi Arabia Expand Data Network in Again Tested 5G Commercial Launch Kalimantan Technology of Nb-Iot Network XL Axiata through one of its XL Prepaid (XL) brands has prepared a special package for hajj The increasing data traffic of The trial of 5G technology Across 31 Cities pilgrims that features competitive tariff service, large data quota, and 4G network support 43% in the past year encouraged on the XL Axiata network from all operators in Saudi Arabia. XL Axiata launched the XL Axiata to prepare network was again carried out to Narrowband IoT (NB-IoT) expansion plan in West and North test various technical and technology network in 31 Kalimantan regions. technological performances. 9 OCTOBER 2019 FebruarY - DeCember 2019 The third 5G trial took place cities/regencies throughout in one of the rooms in the Indonesia to strengthen the XL Axiata Celebrated its XL Axiata Gave Away XL Axiata Building, Jakarta, service business in serving the 23Rd Anniversary Rp1.3 Billion for its Loyal About The Report attended by the Minister corporate and SME markets Celebrating its 23rd anniversary, PT XL Customers of Communications and to meet the needs of the IoT Axiata Tbk (XL Axiata) rolled out a number XL Axiata once again gave appreciation Informatics of the Republic of solution on an end-to-end and of special offers to all customer segments, to its loyal customers. Through two Indonesia, Rudiantara, and XL customized basis. Axiata’s President Director & both prepaid and postpaid card holders. loyalty programs, “XTRAvaganza & CEO, Dian Siswarini. FantAXIS” and “XpLay & BombAXIS”, XL Axiata granted a total prize worth Rp1.3 billion to selected loyal customers from various regions.

14 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 15 About

XL AXIATA ReportCeo

We take part in developing Indonesia by providing MARKET SHARE [GRI 102-6] digital technology infrastructure to support Indonesia’s As one of Indonesia’s leading cellular telecommunications companies, XL Axiata provides services for the following customers: development in the digital revolution 4.0 era towards a

brighter future. Achievements of XL Axiata

Digital technology is currently permeating every aspect company name [GRI 102-1] Low, middle to upper With a wide range of people’s lives, from politics, economics, science, PT XL Axiata Tbk. income individuals. of services and a defense, security, even to personal and family life. This digital technology continues to evolve like an unstoppable Corporate brand Micro to corporate companies. broad network, current, so there is no other choice but to master the digital world in order to stand at the forefront. Our For corporate consumer XL Axiata takes the critical goal is to “Develop Indonesia through Technology market, we offer Data, Voice, #2 largest market Sustainability Commitment of XL Axiata Democratization”, which needs to be soon realized given SMS and Other cellular the fast-moving digital technology that waits for no one. Product brand share of total telecommunication value- sales of cellular Seeing both needs and great potential in the digital world, added services. XL Axiata was present as the first private cellular company telecommunications in Indonesia back in 1996. XL Axiata continues to innovate and has just arrived to be the first telecommunications services and operator in Indonesia to launch 4.5G. Shares Ownership number of cellular Public XL Axiata is committed to delivering faster and more customers. stable connections through the implementation of the 2019 33.6% 4.9G – Massive MIMO technology, especially outside Java. Axiata Investments The use of this technology can accelerate data transfer to provide more convenience to customers. 2018 66.4% Responsible Business

Ownership and legal form Legal Basis of Establishment [GRI 102-5] Deed of Establishment No. 55 dated 6 October Internet 1989, as amended by Deed no. 79 dated 17 January The Company is legally established as a Limited Interconnection 1991, both of which were drawn up before Rachmat Services (NAP) Liability Company (Tbk)/Public Company At present, the majority of XL Axiata shares are Santoso, S.H., Notary in Jakarta, and have been Internet Service Voice Over owned by Axiata through Axiata Investments ratified by the MOLHR by virtue of his Decree No. Provider (ISP) Internet protocol (Indonesia) Sdn. Bhd (66.4%), and the rest is held C2-515.HT.01.01.TH.91 dated 19 February 1991, and by public (33.6%). registered in Company Register maintained by the Registry Office of South Jakarta District court About The Report under No. 670/not/1991/pn.JKT.SeL and No. 671/ Cellular mobile Ticker Code: ExCL not/1991/pn.JKT.SeL, both dated 21 August 1991, network XL Axiata is a subsidiary of Axiata group (“Group”) and published in the State Gazette of the Republic (including Data, ACTIVITIES, BRANDS, Voice, SMS over Closed fixed which is the largest telecommunications group of Indonesia No. 90 dated 8 November 1991, PRODUCTS, AND SERVICES 2G, and 4G network [GRI 102-2] in Asia. The following are subsidiaries and other Supplement No. 4070. technology) Telecommunication services and/or associations that are members of the Group; telecommunications network and/or (Malaysia), Dialog (Sri Lanka), multimedia services provider. (Bangladesh), Smart (Cambodia), (Nepal), Idea (India), and (Singapore).

16 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 17 ReportCeo Achievements of XL Axiata Sustainability Commitment of XL Axiata

External initiatives [GRI 102-12] Headquarters Location [GRI 102-3] Operational Location [GRI 102-4] We implement various certified operational standards covering XL Axiata Tower XL Axiata operates in four regions, each Jl. H.R Rasuna Said X5 Kav.11-12, Kuningan Timur having a representative office. In addition, Setiabudi Jakarta Selatan 12950 there are 95 XL Center outlets or XL Telp. : +62 21 576 1881 Axiata stores throughout Indonesia. ISO/IEC SMK3 27001:2005 Occupational Health and

Fax. : +62 5761880 Responsible Business e-mail : [email protected] Information Security Safety Management System www.xl.co.id Management System

Membership in associations [GRI 102-13] Scale of Organization [GRI 102-7] Up until the end of 2019, XL Axiata participated in the following bodies: Description 2019 2018 2017

Total employees (person) 1,606 1,677 1,652

Total operations 1 1 1 Indonesia Corporate Asosiasi penyelenggara Masyarakat Telematika Net revenue (billion Rupiah) 25,150 23,001 22,901 Secretary Association Telekomunikasi Seluruh Indonesia (Member) About The Report (Management) Indonesia Equity (billion Rupiah) 19,122 18,343 21,631 (Secretary General)

Liabilities (billion Rupiah) 43,603 39,271 34,691

Assets (billion Rupiah) 62,725 57,614 56,321

Total products/services 3,319.9 2,200.7 1,249.5 Asosiasi Kabel Laut Indonesia Asosiasi Kliring Telekomunikasi Dewan Telekomunikasi provided (petabyte) (Deputy of Secretary General (Supervisory board and Secretary Informatika & Komunikasi and supervisory board) General) Nasional (Advisory Team)

18 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 19 C eo Report XL AXIATA’S COMMITMENT Achievements of XL Axiata TO THE NATION

XL Axiata is aware that digital access is not Sustainability Commitment of XL Axiata equally Indonesia, especially for those living in remote and border areas. XL Axiata believes that Internet connectivity is the right of all, regardless of age, income, ability, or location. XL Axiata wants everyone to have the confidence, knowledge, and capability to participate in the

digital world in a safe, effective, and efficient Responsible Business manner. To that end, XL Axiata has implemented various initiatives to support and expand Indonesia’s digital inclusion into more regions and reach to reach areas in category of lagging, leading, and outermost in Indonesia. About The Report

20 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 21 C VISIon PURPOSE eo Report

To be the most preferred data connectivity We bring the world In a simple way provider in indonesia by 2020 closer in a simple way for • Life is getting more and more complex for people, and we are here to simplify it by

a brighter life. providing seamless experiences for all our Achievements of XL Axiata stakeholders (The world at your fingertips). • Simplifying adds value to people’s lives by saving time, energy and money, allowing STRATEGy We people to get more out of life. • This promise cannot be done alone, by ourselves. • Only through internal and external For a brighter life collaboration can we make this happen. • We are committed to helping people Revamp Sustainability Commitment of XL Axiata continuously improve their lives in terms of the core economic welfare and in terms of the well- revamp Bring the world closer being of fun, excitement, energy, inspiration • We enable and empower people to stay in and unleashing potential. touch and connect with their environments Reinvent Rise up and create new possibilities. way to play value leader • We are always close by to fulfill daily needs in 3R people’s lives.

Reinvent Rise up Responsible Business

CORPORATE CULTURE

Uncompromising Team Synergy Simplicity Exceptional Integrity About The Report Vigorously working Doing the best in providing Performance Having high ethical standards, together, ensuring all easy-to-use solutions Always be enthusiastic in having no tolerance for unethical processes are done to and exceeding customer providing the best performance. behavior. achieve a common goal. expectations.

22 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 23 MILESTONE ReportCeo

2009 2010 1995 PT Excelcomindo Pratama Tbk changed its Majority shareholder of XL Axiata, namely Axiata name to PT XL Axiata Tbk Investments (Indonesia) Sdn. Bhd. released a Achievements of XL Axiata 1996 portion of shares to increase the public float. Entered the telecommunications field after 2010 obtaining a GSM 900 operating license and 2011 officially launching its GSM services with XL Axiata embarked on a holistic focus on Jakarta, Bandung, and Surabaya as transformation in business strategy to its operational areas. 1997 embrace the future Data business and to 2012 Established an integrated microcell ensure long-term sustainability. One of XL Axiata’s major Shareholders, Etisalat, network in Jakarta’s Golden Triangle area. divested 9.1% of its share in XL Axiata. Therefore, 1998 public floating share became 33.5%. Launched proXL prepaid cellular service brand. 2013 • XL Axiata became one of the two cellular operators who won the tender selection Sustainability Commitment of XL Axiata 2001 for the third generation (3G) cellular 2014 2000 2000 • Granted a DCS 1800 spectrum frequency canal at the 2.1 GHz Radio • XL Axiata launched real mobile 4G-LTE Expanded the business into Sumatra and allocation and finalized fiber-optic Frequency. (Long Term Evolution) test. This XL Axiata • XL Axiata and Saudi Telecom Company markets. backbone. high speed internet service up to 100 Mbps (STC) and Teleglobal Investment B.V is supported by and Ericsson. • Launched m-banking and m-fun (Telegloval), a subsidiary of STC, entered • XL Axiata introduced a new logo that services. into Conditional Sales and Purchase features a “peel off” concept. The new • Expanded network coverage to Agreement (CSPA) to acquire PT Axis logo is meant to represent XL Axiata’s 2002 Kalimantan and Sulawesi. Telekom Indonesia (AXIS) commitment to eliminate barriers or open • Mendapatkan alokasi jaringan ke • Launched leased-line and IP (Internet wider access to new opportunities to daerah Kalimantan dan Sulawesi. develop customers’ maximum potential. • Meluncurkan layanan sirkuit sewa protocol) services. dan IP (Internet protocol). 2015 XL Axiata embarked on business transformation agenda that began in early 2004 2015, termed as the 3R Strategy; “Revamp, 2016 Rise up the value ladder & Reinvent”. 2015 • XL Axiata continued to be innovative 2005 Re-branding XL Axiata logo and individually and is the first telecommunications Responsible Business • Conducted Initial Public Offering (IPO), listed marketed prepaid and postpaid brands: operator to commercially launch 4.5G and registered 1,427,500,000 shares on IDX jempol (prepaid), bebas (prepaid) and Xplor Ready on the 1,800 MHz spectrum (currently BEI), with ticker code of EXCL (postpaid). • In the second semester of 2016, • Became a subsidiary of Indocel Holding 2017 XL Axiata deploys U900 services 2005 • XL Axiata supported the realization Sdn. Bhd., currently known as Axiata throughout state using frequency of “Nelayan Go Online” program by 900MHz for 3G data services so Investment (Indonesia) Sdn. Bhd.; all 2006 creating application named “Nelayan creating wider 3G coverage, better shares owned by TM International Sdn. Pintar (NELPIN)” and disseminating it to with improved cauldron. Launched the XL 3G “First Widest and Fastest” Bhd., (“TMI”) through TM International (L) fishermen in various regions. services. Limited. • XL Axiata launched “Quota Donation Movement” (GDK) to improve education quality of schools throughout Indonesia. 2018 • XL Axiata fully engaged in the • XL Axiata inaugurated the new integrated 2007 2008 development of Marine Cable services quality monitoring center named • Introduced Rp1/second tariff. - • TM Group completed divestment process Communication System of Australia- “Customer Experience & Service Operation Indonesia-Singapore, which connects ETISALAT became a shareholder of which resulted in separated entities: Telekom Center” (CE & SOC). between Australia and Singapore through • Laut Nusantara apps was launched for

XL Axiata. Malaysia Berhad (“TM”) and TM International About The Report Indonesian waters. fishermen to inform catchment areas, fish • ETISALAT became the second Berhad (changed the name into Axiata Group distribution, and weather. largest telecommunications Berhad/”Axiata”), in which Indocel Holding • XL Axiata launched IoT laboratory (IoT Lab) company in the Middle East. Sdn. Bhd. is an indirect subsidiary of Axiata called X-CAMP in Jakarta, which is the only • Started to consolidate brands under through TM International (L) Limited. 2019 recognized IoT Lab that is part of GSMA Lab Alliance in Southeast Asia. “XL prepaid” and “XL postpaid”. • Axiata acquired all XL shares owned by • Available in 400 cities and regions in Indonesia Khazanah Nasional Berhad, increasing Indocel • 130,217 BTS that provide Holding Sdn. Bhd.’s stake in XL to 83.8%. 4G-LTE services, and more than 40,264 of them are 4G BTS

24 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 25 Sustainability POLICY ReportCeo

We believe sustainability is our future together; thus, XL Axiata has designed a roadmap to grow into a sustainable company.

Sustainability development goals are XL Axiata’s benchmark in preparing strategy and running operational

activiites. Even further, we have developed dynamic sustainability programs and activities based on four Achievements of XL Axiata sustainability pillars of 4P Sustainability Framework.

Building Nurturing Prosperity PEOPLE

Building Digytal Nurturing Ecosystem Future Leaders Sustainability Commitment of XL Axiata Providing innovative programs Contribute to the development of youth in bridging the digital gap with leaders in Indonesia as well as uplifying EES(Economic, Environmental and Social) internal competencies. consideration.

Process PLANET Excellence & Society

Digitizing Processes & Environmental

Governance Management Responsible Business Process optimization through lean Enhancing services quality and process with technological innovation optimizing local potential with social to improve efficiency and business outreach to manage environmental continuity. impact.

SUSTAINABILITY Sustainability roadmap at XL Axiata COMMMITMENT OF XL AXIATA 2018 - 2019 2020 2021 - 2022 About The Report

Continuing on from providing products Paving the pathway Sustainability spirit XL Axiata has and services and improving national to sustainability is ingrained Sustainability DNA economy, XL Axiata is fully committed to giving contribution in the achievement of sustainability development goals.

26 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 27 Building PROSPERITY ReportCeo

XL Axiata contributes to improving the nation’s welfare by infrastructure to strengthen our position in the Customer (in million) telecommunications industry. Up to date, XL Axiata leveraging the national economy and well-being of local has produced 3,319.9 Petabytes, emitted through 2019 56.7 communities. 130,217 BTS6 BTS towers across Indonesia. 2018 54.9

Thanks to the development of innovative products Achievements of XL Axiata that cater to the needs of customers, XL Axiata 2017 53.5 managed to increase smartphone penetration by 6% to penetration rate of 86% compared to the previous year. At present, XL Axiata has 56.7 million Base Tranceiver Station customers customers, 48.8 million of them are smartphone users. Thus, the total number of XL 2019 130,217 Axiata customers in the reporting year increased by 1.8 customers compared to the previous year. 2018 118,596 In addition to customers, XL Axiata’s business Sustainability Commitment of XL Axiata development is also stated by total traffic and 2017 101,094 number of BTS facilities.

In 2019, XL Axiata successfully recorded good Trafic(In Peta Byte) economic performance amid various challenges and heavy competition. We managed to post 2019 3,319.9 revenue of Rp25,150 or an increase of 9.3% from the previous year at Rp23,001. The following 2018 2,200.7 table presents the acquisition and distribution of 1,249.5 economic value in the reporting years. [GRI 201-1] 2017 Responsible Business

ECONOMIC PERFORMANCE Description (in Billion Rp) 2019 2018 2017 This country’s growth is undeniably partly attributable to the development of digital world. The digital economy Economic value generated (A) It is estimated that Indonesia’s digital economy is Telecommunication Services Revenue 24,233 21,932 21,921 currently worth $40 billion with an average growth is key to the progress of 49% per annum. Indonesia’s digital economy and development Other Revenue 917 1,069 980 ranked first in Southeast Asia and will continue to grow to $130 billion by 2025. The digital world of the nation. XL Total Economic Value Generated 25,150 23,001 22,901 has likely penetrated aspects of nearly everyone’s Axiata participates in Economic Value Distributed (B) lives, both personal and professional life, as seen by a total of 355.5 million mobile phone service developing Indonesia Operating Costs 10,103 9,809 9,897 customers out of 268.2 people. by providing innovative Employee Wages and Benefits 1,140 1,037 1,351 About The Report This development offers opportunity for digital and inclusive digital Interest Payments to Investors 2,180 1,746 1,539 communication service providers like XL Axiata. services to help We provide the best connectivity for customers, Payment to Government 6,751 6,617 5,937 both corporate and individuals, from a variety grow and develop Community Investment 13.09 12.46 9.14 of different segments. Over the years, we our stakeholders’ have continuously improved and expanded Total Economic Value Distributed 20,186 19,221 18,733

1https://dailysocial.id/post/indonesias-digital-economy-is-now-at-40-billion- businesses. e-commerce-as-the-biggest-participant Retained Economic Value (A-B) 4,964 3,780 4,168 2https://datareportal.com/reports/digital-2019-indonesia

28 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 29 Building The Nation Together ReportCeo

Working at XL Axiata becomes meaningful, not only because it provides career development potential, but also because every employee can contribute to develop the country both personally and through Achievements of XL Axiata the company. “Sharing” is a means for employees to contribute their expertise and other resources to the community.

is an employee volunteering program where XL Axiata opens up great opportunities for employees to engage in various sustainable social activities according to the interests and knowledge of each employee Sustainability Commitment of XL Axiata

Inspire Held in Involve Donate 1,200 30 85 340 student school employees man hour

Disaster Relief, besides maintaining network • Flood and Landslide in Imogiri, Bantul to stay alive at the disaster site, XL Axiata also • Flood in Sungai Pinang District, Samarinda City The increase in revenue in the reporting year Axiata and the prevailing laws and regulations in distributed emergency aid to the surrounding • Flood in Kampar, Riau was around 9.3% compared to the previous Indonesia. XL Axiata strives to prioritize services community. • Lombok earthquake year. This increase was also accompanied by an from local suppliers, namely those from the • 2,400 people in the affected area • Development of School Building in North • Flood in South Sulawesi Responsible Business increase in tax payments to the government, country, provided that they are able to fulfil our Lombok • Flood in Pekalongan from Rp6,617 billion in 2018, to Rp6,751 billion in requirements. In the reporting year, there were • Post-tsunami Palu aid • Flood in Dayeh Kolot & Bojongsoang 2019, and increased community investment in 666 goods and services suppliers; 94% were local • Drought disaster in Cibingbin, Kuningan-West • Flood in Bengkulu the form of CSR programs to Rp13.09 billion or suppliers, and the rest were overseas vendors. Java • Flood in Purworejo an increase of 5%. The Company’s spending on goods and services from local suppliers as 97% of total expenditure in In its operational process, XL Axiata operates 2019. [GRI 204-1] with the support of various suppliers, including goods and services suppliers. Our main suppliers We conduct coaching, monitoring and evaluation are globally recognized telecommunications of business partners from time to time to ensure services and equipment that already have the fulfilment of quality, timeliness, cost and international reputations such as Huawei and compliance with applicable laws and regulations. Ericsson that have published sustainability In developing Supply Chain Management, XL About The Report reports. We pay attention to our main vendors on Axiata emphasizes sustainability principles sustainability issues. [GRI 102-9] and environmental preservation, for example, by implementing a paperless system and In addition to technical suppliers, we have e-transaction automation from e-PO process various other suppliers in place, such as to e-invoice process. It is expected that the stationery suppliers and special suppliers in implementation of this system will reduce waste each department. All XL Axiata suppliers have generation. complied with the applicable standards in XL

30 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 31 Laut ReportCeo Nusantara [GRI 203-1] Let’s use this app and tell all the fishermen! Susi Pujiastuti In the reporting period, XL Axiata held various The “Laut Nusantara” application is supported by Minister of Maritime Affairs Achievements of XL Axiata and Fisheries (2014-2019) CSR programs that focused on the community. a complete and real time information base with We provided innovative digital solutions to help full data sources from the Institute for Marine uplift tech literacy among people as well as their Research and Observation (BROL). As an agency readiness to compete in the 4.0 industry. In each under the Ministry of Maritime Affairs and Fisheries, 25,000 CSR program, we conduct a survey to understand BROL has extensively complete and very useful downloaders their needs, so that the programs implemented marine data for developments in the marine can be appropriate to the community and improve sector, which can also provide practical benefit their welfare, directly or indirectly. All of our CSR for small fishermen. Data from BROL is also up to

8,433 programs are prepared by involving the community date and based on sea research and observations active users Sustainability Commitment of XL Axiata and regularly evaluated to assess their impact and throughout the archipelago. All marine information effectiveness.[GRI 413-1] contained in Laut Nusantara Application is obtained In cooperation with: directly from the Institute for Marine Research and KKP-BROL, Bakamla Finding the best fishing spot is one of the Observation station to ensure its data accuracy. challenges faced by fishermen. As a matter of fact, Data updating is done every three days based on they frequently go out to sea, spending time and data from special satellites. Meanwhile, forecast fuel, only to get unworthy results, in other words, data is obtained based on data analysis for the suffering a loss. To address this, XL Axiata created past 20 years. XL Axiata and BROL teams have Laut Nusantara is an application specially designed for sea farers, in Laut Nusantara Apps. previously conducted research and surveys to a particular fishermen, where they can get information about fish populations to number of fishing communities in various regions achieve maximum results. [GRI 203-2] to identify their needs related to information about fishing activities.

Dissemination events in 2019 were held at: Responsible Business

18 20 19

15 8 10 14 16 9 4 7 11

3 22 2

17 About The Report 21 12 5 1

6 13

1. Desa Perancak – 5. Prigi – Trenggalek 10. Indramayu 17. Pengambengan 21. Ende-NTT Bali 6. Pekutatan – Bali 11. Banyuwangi 18. Natuna 22. Maumere The XL Axiata CSR Program, Laut Nusantara, was named “The Best 2. Pandeglang 7. Desa Sumber Waru 12. Pangandaran 19. Pulau Sebatik, Creating Shared Value” by SWA / MIX Magazine because considered 3. Lombok Tengah – Situbondo 13. Denpasar Kab. Nunukan, 4. Kenjeran - Surabaya 8. Desa Karangantu – 14. Tanjung Kait Kalimantan Utara to have clear and consistent goal and strategy, support the - Sendangbiru – Serang 15. Cilincing 20. Desa Silo Baru, achievement of SDGs, and have positive impact. Malang 9. Kecamatan Greges 16. Bekasi Kabupaten Asahan, - Gresik Sumatera Utara

32 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 33 XL Future Leaders (Xlfl) ReportCeo

Through XL Future Leaders (XLFL), we develop students’ skills to deal with today’s fast-changing world.

Students are trained to have the agility in managing change and uncertainty while maintaining their Achievements of XL Axiata focus on achieving goals. XLFL is a two-year leadership development program that not only benefits the participants, but also impacts the community where they contribute later. The curriculum of the XLFL program is developed by education experts from various extensive researches. The effectiveness of this program is supported by a factor learning system, which is a combination of online learning programs, face-to-face workshops, and work experience that is expected to prepare students to take leadership roles in their communities, as well as in various national and international companies.

XL Future Leaders Sustainability Commitment of XL Axiata (XLFL) is a leadership training and development program to train and develop the nation’s future leaders, dedicated to students throughout Indonesia. Responsible Business

Launched in 2012, it produced 8 batches by 2019 NURTURING PEOPLE Each class Not only driving Indonesia toward has 10 face- 17,000 150 150 to-face the digital era through digital workshops registered students were students

in Batch 8 accepted into graduated from About The Report infrastructure development, Batch 8. They Batch 6. They Face-to-face XL Axiata is also committed to workshops came from 45 came from 35 in 6 cities universities universities, improving human capital in this (Jakarta, Bandung, located in 20 both public and Yogyakarta, provinces private. digital era. Surabaya, Medan, Makassar)

34 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 35 Internet of Things (IoT) ReportCeo Service Prototype [GRI 203-1]

Each batch to graduate is required to prepare and complete an assignment that would be beneficial for the open perspective surrounding community. This year, Batch 6 students were assigned to create an IoT-based digital solution project aimed at adapting to the industry 4.0 era and digital technology. 25 IoT project initiatives were “The XLFL program opened my perspective of the produced by the XLFL batch 6. professional journey I want to pursue in my life. Its Achievements of XL Axiata organized curriculum helped to grow my outlook and Pakuan I-Sinus that has been critical to connect my background in Category Category engineering with the work I am doing now”. Transportation Wearable Jordi Lokananta (XLFL Batch 2) Description Description Monitor the number of passengers (in real time) to adjust Help people with sinusitis to monitor the surrounding the aircon temperature and inform density of train coach. environment conditions (specifically to temperature, pressure, and humidity) and give alert to the person if BUILD CHARACTER Impact the environment is not conducive. Sustainability Commitment of XL Axiata • Save energy (electricity). • Reduce theft and sexual harassment potential. Impact “XL Future Leaders is the best place to develop your • Increase customer satisfaction to encourage an Improve well-being of people with sinusitis. character and collaboration skills. Its positive support increase in the number of public transportation passengers, which is expected to ultimately reduce motivated me to work with interdisciplinary experts at emission. the international level”.

Annisa Ika (XLFL Batch 1) Tatanen (IPB) Track Fast

Category Category Smart Farming Logistic changing how to look at yourself

Description Description Responsible Business Count the amount of chicken feed, notify when feed Track and obtain data that will be used to control “XLFL changes me from someone who was reluctant is about to run out, and measure weight growth material usage. approximation, as well as monitor farm’s cleanliness to try new things and approached new people into Impact and environment (light, temperature. and moisture). someone who was cheerful and eager to explore new Efficiency and use of material and resources. Impact environment and meet new people! Being part of this • Efficiency and saving of natural resources (chicken program has changed my perspective on myself, and feed). Tatyana A. Ibrahim • Increase profitability of animal husbandry business. (XLFL Batch 7, Surabaya) that changes many other things.”

COLLABORATION LEARN Pilah Whereables About The Report Category Category “It is truly amazing to be a part of XLFL’s journey. I Waste Management Wearable step into something new, a positive environment, which

helps me grow into a better person, and to become Description Description a supportive friend, not to compete in class, but to Support waste bank operations and maximize space Minimize child abduction potential, especially for efficiency with e-money support. children with special needs. encourage one another.” Agnes Angela Impact Impact Stephanie Siregar • Waste banks have more active role in collecting Improve sense of security and family well-being. waste, thus reducing waste generation. • Efficient waste management

36 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 37 ReportCeo

Feat Savee

Category Category Transportation Smart Home

Description Description

Installed on each side of the car to give collision Monitor electricity usage via smartphone, schedule Achievements of XL Axiata potential warning. auto power off for electronic devices, and calculate monthly electrical usage. Impact Minimize accident frequency which will also reduce Impact fraud practice committed by vehicle insurance • Encourage its users to change their lifestyle and use customers. electricity wisely and efficiently. • Save energy.

AIR Bin

Category Category Sustainability Commitment of XL Axiata Water Management Waste Management

Description Description AiR is an IoT-based water monitoring device useful in waste picking up route. tracking and collecting data of the dynamic condition of Jakarta rivers. Provide a complete overview of the Impact: water condition, water level, salinity, Ph, and turbidity. • Reduce operational costs due to more efficient waste collection. Impact: • Effectiveness of waste management. • Improve public health through the cleanliness of water sources/water bodies.

PALMS Animaps Responsible Business Category Category Agriculture Wearable

Description Description Maximize palm oil’s production by providing a system Map and track Bekantan (one of the endangered to monitor nutrient provision and manage accurate species) if Bekantan steps out of the conservation mature stands for appropriate harvesting. area.

Impact: Impact: • Improve the efficiency of agricultural management. Protect the preservation of endangered wildlife. • Improve the quality of palm oil. • Increase economic value (selling price) of palm oil. • Efficient of waste management.

HelpMet Embracchium About The Report

Category Category Wearable Wearable

Description Description Identify the accident and notify emergency contacts of Smart bracelet intended to monitor children with the casualties through fast, measurable, and safe system. special needs, detect children’s temperature, heartbeat, and location. Impact: Speed up aid arrival time. Impact: Increase sense of security and family well-being. 38 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 39 ReportCeo

CEKATAN Hidrogotchi

Category Category Disaster Risk Reduction Agriculture

Description Description Achievements of XL Axiata Detect landslides by using several sensors connected Monitor pH, humidity, temperature, and early detect to a mobile application. pests and diseases.

Impact: Impact: • Protect people from disaster. • Increase production. • Improve well-being by providing sense of security. • Increase farmers’ welfare.

MinerMet Smark Sustainability Commitment of XL Axiata Category Category Wearable Smart Parking

Description Description Smart helmet that features wireless sensor network Smart parking solution at malls to help book parking nodes that can detect other hazard potential that can lot easier. occur in the mining area. Impact:

Impact: Save energy and reduce CO2 emissions from motor • Protect people from disaster. vehicle exhaust gases. • Improve well-being by providing sense of security.

XCure KuTaniku

Category Category

Smart Security Agriculture Responsible Business

Description: Ingenious padlock for motorcycle, Description: Detect the intensity of light, land equipped with network data for phone notification, moisture, and nutrients obtained by plants. GPS location, and alarm. Impact: Impact: • Improve the quality of agricultural products. Increase security • Increase production. • Improve the farmers’ welfare.

Hamil Pintar Bracelet

Category Wearable About The Report

Description: A bracelet to continuously monitor pregnant mother’s heart rate, body temperature, and blood pressure.

Impact: • Maintain the health of pregnant women and baby in the womb. • Increas sense of security and family well-being.

40 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 41 XL Axiata Youth Leadership Camp (XYLC) ReportCeo

Brasure LoadGuard

Category Category Healthcare Transportation Achievements of XL Axiata Description Description Measure blood pressure. Smart sensor to measure trucks’ weight and monitor suspension bridge power. Impact: Maintain people’s health. Impact: • Increase work efficiency. • Have the potential of reducing accident rate.

Healthsense Healthtree Sustainability Commitment of XL Axiata Category Category Healthcare Agriculture

Description Description Monitor workers’ health in an effort to prevent Provide real time health checking for trees to early productivity loss. prevent diseases that might attack the trees. XYLC is intended to build soft skills of young leaders in line with the World Economic Forum’s top 10 skills formulation to support success in industry 4.0 revolution era, i.e.: creativity, problem solving, critical Impact: Impact: and creative thinking, collaboration and coordination, communication, emotional intelligence and flexible • Increase workers’ well-being. Maintain environmental preservation. cognitive skills. • Increase business productivity.

Program objectives to encourage the emergence of the 600 student Responsible Business young generation having leadership character and spirit 400 school as the capital to build Held in 6 cities in Indonesia, namely: Jakarta, Semarang, Makassar, Indonesia’s future Medan, Yogyakarta adn Surabaya for high school and partner with vocational DIREKTORAT JENDERAL level PENDIDIKAN DASAR DAN MENENGAH About The Report

LEARN TO BE A LEADER THE GREAT ACTIVITY

“After I joined the XYLC activities in Makassar, “XYLC? This is a really cool activity! Where I got a picture of how a leader should behave else can you get cool but free training like in emergencies. A leader must be able to this? Try to register and be selected in the sacrifice for the sake of the people. Stay next XYLC. There’s nothing to lose. Trust me!” optimistic and think positive.” Anggi (Member XYLC) Bimo (Member XYLC)

42 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 43 e-Learn ReportCeo

DEVELOP ENTREPRENEURIAL SPIRIT

“The knowledge given by elearn.id is very important in

Following learning style trend of millennials where University, Kupang-Citra Bangsa University, our daily life, such as how to look good, job interview digital facilities are much preferred, we expand Mataram- Mataram State University, Palembang- questions, and also how to become an entrepreneurial Achievements of XL Axiata learning and self-development activities online Sriwijaya University. leader. eLearn.id is the online learning site I love the through eLearn.id. This year’s meet-up presented a variety of topics most. eLearn.id is absolutely the best!”. From time to time, XL Axiata has organized “meet- needed by young people such as: Sofia Nasution (Medan) ups” with eLearn participants in various cities. In • Education 4.0 (for lectures) 2019, we hosted 7 meet-ups in 6 cities attended • Creative Thinking (SCAMPER & The Bono’s Six by more than 880 participants, which were held Thinking Hats) at: Gorontalo-Gorontalo State University, Padang- • Career Planning & Creative Thinking LEARN INDEPENDENTLY Andalas University, Samarinda-Mulawarman Sustainability Commitment of XL Axiata

“eLearn.id increased my interest in independent learning. It is an amazing experience, especially for me, that eLearn.id helped me and hundreds of young people eLearn a digital that launched to complete ourselves with integrated experience in contains an XLFL in 2014 curriculum for self- leadership, entrepreneurship, and technology”. This platform can be development Muhammad downloaded for free (Raffi Padang) through eLearn.id and without selection

SPEAK SKILLS IN PUBLIC Responsible Business “Through its meet-up event, eLearn.id has helped me develop the potential to be able to speak in public as it allowed me to learn steps to master the stage well.”

Miftahul Jannah (Gowa)

BELAJAR SOFTSKILL About The Report “eLearn.id meet-ups are very helpful for our students in understanding and learning soft skills to complement their learning at the university.” 38,000 26 active users A total Ibu Alfina Dosen STKIP of online (Bulukumba) courses

44 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 45 Gerakan Developing Human Donasi Kuota (GDK) Capital at XL Axiata ReportCeo Achievements of XL Axiata Sustainability Commitment of XL Axiata

XL Axiata continues its focus on the goal of and so on. In addition, this digitization process also becoming the preferred data and digital services supports employee collaboration and solidarity provider in Indonesia. As such, employee, or Human through internal social media for all employees. HC The development of education world is because of limited funds to access it. To that Capital (HC), development is critical in our journey digitization is aimed towards two goals: inextricably linked to the opportunity to see the end, XL Axiata is driving GDK program where to achieve excellence and company goals. We • To increase the effectiveness and efficiency of world and get information online. However, not all customers can donate quotas for education are committed to building each and every one of the human capital management process. schools and students can have this opportunity development. our XL Axiata people to be competent and have • To help analyze decision making on HC and

integrity, as well as to become the backbone of the related business decisions. Responsible Business company by embracing those modern and smart principles relevant to the digitization process. We also apply an EVP (Employee Value Proposition), which is a strategy to reward GDK is a movement to raise customer We have prepared a reliable and up-to-date employees who have contributed their skills and infrastructure in the form of digital applications capabilities to the company. EPV also reflects participation and the public in general to to handle all HC processes such as recruitment, an “employee branding” where every employee performance management, training and can understand the uniqueness and excellence voluntarily donate their quotas, development, succession management, and more. of working at XL Axiata. It is expected that this Employee data updates, leave applications, and EPV will foster a sense of pride, loyalty, and which are then channeled for quality improvement of schools across Indonesia. other approvals are also processed digitally. togetherness, so that XL Axiata can attract and retain the best talent. The digitization process is also carried out to Dedicated to high support daily operational activities, such as school, vocational 494,100 1,943 booking meeting rooms, distributing documents, About The Report Beneficiaries Schools school, MA

XL provides 1 router 466.32 1,943 Employees for selected schools TB quotas Router 81% constitute 1,606 Each school gets 20GB of data quota every month for 1 year Millennial Generation and Total permanent and Generation Z contract employees

46 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 47 ReportCeo

EMPLOYEE DEMOGRAPHY [GRI 102-8] Description 2019 Total employees based on employment contract (permanent and temporary) and gender Male % Female % Total Description 2019 2018 2017 President Director - 0.00 1 100.00 1 Male Female Male Female Male Female Directors 3 75.00 1 25.00 4

Permanent Employees 954 432 1,001 460 1,003 466 Achievements of XL Axiata Chief 4 100.00 0 0.00 4 Temporary Employees 168 52 164 52 137 46 Group Head 31 65.96 16 34.04 47 1,122 484 1,165 512 1,140 512 Head 122 70.93 50 29.07 172

Total 1,606 1,677 1,652 Lead 12 92.31 1 7.69 13

Individual Contributor 950 69.60 415 30.40 1,365

Total 1,122 484 1,606 Total employees based on employment contract (permanent and temporary) and region

Region 2019 2018 2017 Sustainability Commitment of XL Axiata

Permanent Temporary Permanent Temporary Permanent Temporary 2019 Under 30 years old 30–50 years old Above 50 years old

Central 40 27 41 18 51 17 Total % Total % Total %

East 54 27 60 27 69 15 President Director 0 0 0% 0 1 3%

Jabo 1,244 148 1,313 156 1,298 144 Director 0 0 3 0 1 3%

West 48 18 47 15 51 7 Chief 0 0 3 0 1 3%

Total 1,386 220 1,461 216 1,469 183 Group Head 0 0 41 3% 6 15%

Head 0 0 169 13% 3 8%

Lead 0 0 12 1% 1 3% Total Employees based on Employment Contract and gender Individual Contributor 255 100% 1,084 83% 26 67% Description 2019 2018 2017 Total 255 100% 1,312 100% 39 100%

Male Female Male Female Male Female Responsible Business Full-time Employee 954 432 1,001 460 1,003 466 Talent Management Part-time Employee 168 52 164 52 137 46 To ensure the availability of leaders, XL Axiata cooperating with recruitment companies Total 1,122 484 1,165 512 1,140 512 strives to recruit, retain and train employees at home and abroad in order to seek highly through a “talent management” process. qualified candidates. Particularly through this talent management, we wish to ensure the availability of prospective In conducting recruitment, we consider the Diversity of Governance The following table illustrates the diversity in XL leaders across the company’s business lines. following four factors: Organs and Employees Axiata’s governance organs and employees. Organs We have prepared a well-structured succession • Competence: The ability/expertise/ here mean President Director, Director and Chief, [GRI 405-1] process, starting from identification, development, knowledge of candidates according to while employees are Group Head, Head, Lead, and placement, and work assessment stages. the applied position, which consists of Diversity at the workplace is a source of Individual Contributor. functional competencies or those relating

innovation and creativity that has a positive About The Report 1. Employee Recruitment to the implementation of the candidate’s impact on the company. Diversity drives different The process of developing highly qualified duties, leadership, and pivotal role, i.e. ideas, personalities, and experiences to emerge. employees starts from running the right talent competencies acquired during their work Therefore, opportunities to join XL Axiata are open recruitment system. Hence, XL Axiata widely experience. Functional and leadership for people from diverse backgrounds. opens job opportunities through LindkedIn, competencies are divided into several levels jobstreet, job exhibitions, and emails sent according to the responsibilities of different to [email protected] while constantly positions. • Cultural compatibility: Candidates’ self- values and their compatibility with XL

48 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 49 ReportCeo

all invol & vol Axiata values, which are broken down into agility measurements, as well as interviews Gender 2019 % 2018 % 2017 % values and management leadership model. about the candidates’ experiences.

• Commitment: Candidates’ professional Male 143 68.10 167 67.34 286 65.90 motivation at work and career aspirations In the reporting year, XL Axiata recruited 145 for the applied position and the Company. employees, consisting of 100 male employees Female 67 31.90 81 32.66 148 34.10

• Agility: The ability of candidates to adapt and 45 female employees. This recruitment Achievements of XL Axiata TOTAL 210 100 248 100 434 100 and deal with the dynamics of rapid change was carried out mainly to replace resigning (volatility), issues and uncertain events employees. Employee turnover rate in 2019 (uncertainty), organizational complexity was 13%. Employee Replacement Based on Age Group all invol & vol

(complexity), and ambiguity of a thing or Age 2019 % 2018 % 2017 % condition (ambiguity): all abbreviated as VUCA. These four aspects are assessed Recruitment of new employees and Age below 30 years old 72 34.29 52 20.97 84 19.35 through cognitive abilities and learning employee turnover [GRI 401-1] Age between 30-50 years old 135 64.29 183 73.79 319 73.50 Sustainability Commitment of XL Axiata Age above 50 years old 3 1.43 13 5.24 31 7.14

TOTAL 210 100 248 100 434 100 Employee Recruitment Based on Gender

Description 2019 % 2018 % 2017 % Employee Replacement Based on Region Region 2019 % 2018 % 2017 % Male 100 69 175 69 120 69 Central 9 4.29 16 6.45 9 2.07 Female 45 31 78 31 55 31 East 12 5.71 16 6.45 10 2.30 TOTAL 145 100 253 100 175 100 Jabo 184 87.62 212 85.48 408 94.01

West 5 2.38 4 1.61 7 1.61 Employee Recruitment Based on Age Group

Age 2019 % 2018 % 2017 % TOTAL 210 100.00 248 100 434 100 Responsible Business

Age below 30 years old 66 46 111 44 72 41 Reasons for Employee Replacement

Age between 30-50 years old 78 54 140 55 100 57 Reason 2019 2018 2017

Age above 50 years old 1 1 2 1 3 2 Male Female Male Female Male Female

Resign 119 58 133 71 253 133 TOTAL 145 100 253 100 175 100

Deceased 2 - 2 - - - Employee Recruitment Based on Region Termination of Contract 15 7 19 8 27 12 Region 2019 % 2018 % 2017 % Not Counted 6 2 5 - - 1 Central 14 10 7 3 6 3 Failed to Pass Probation 1 - 4 1 2 2 About The Report East 5 3 16 6 9 5 Retired - - 4 1 4 -

Jabo 120 83 222 88 159 91 TOTAL 143 67 167 81 286 148

West 6 4 8 3 1 1 XL Axiata is transparent and provides equal opportunities in all recruitment, development, and promotion TOTAL 145 100 253 100 175 100 processes, enabling each employee who has the potential to equally gain the same opportunity to develop. Therefore, there were no incidents of discrimination during the reporting year. [GRI 406-1] Employee Replacement Based on Gender

50 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 51 ReportCeo

2. Employee Training and Development employees: independent learning, coaching, Employee training and development programs telecommunications sector to ensure that all [GRI 404-2] buddying & inspiring sessions, and learning are specifically focused on the functions of employees have the expertise and certification Training program in XL Axiata is developed through assignments. These four holistic each employee in order to hone their skills needed to perform their duties, for example: according to fast-changing technology and approaches are focused on the following: in their respective field to directly support RF Planner; Signaling Engineering; Traffic business world. Training is carried out through • Personal development the company’s strategic vision. XL Axiata’s Engineering; Core Planning Engineering; as well

various methods such as face-to-face, virtual • Educational based development employee training and development program as Engineer, Operation and Maintenance RAN Achievements of XL Axiata classes, online learning applications (Lynda. • Relationship and interaction based consists of: Certifications. com), and e-LMS (Electronic Learning development Management System) which is applications • Experience based development. • Data Analytics: Business Optimization To ensure that all knowledge in the organization integrated with other HC programs such as Data Technology (Data Scientist & Data is optimally used, we have developed talent, performance and career management. XL Axiata’s employee development model is as Engineering), Power BI, Greenplum, a Knowledge Management system to follows: Teradata, Axiata Analytics Center & Ab systematically document existing knowledge, These training programs combine various Initio. be it tacit knowledge or knowledge acquired approaches that are tailored to the needs of • Scrum & Agile Development: Basic Scrum, personally by everyone, or explicit knowledge, Sustainability Commitment of XL Axiata Intermediate Scrum, Professional Scrum namely knowledge that has already been Certification (Professional Scrum Master & expressed. Professional Scrum Product Owner). • IT & Telco: Dev Ops, Cyber Security, Other activities that we do are knowledge Building Apps, COBIT 5, Automatic Testing, sharing within the organization for the IoT & 5G. development of XL Axiata in general, as well • Sales: GTM Strategy, Direct Channel & Key as the development of each employee, such as Account Management. Community of Practice (XL-Labs), Community • Leadership: 9 Leadership Transformation. of Experts (Train the trainer, PMCoE), Sharing BUSINESS IMPACT • Business Innovation: XBOKS Business from Executive/Expert (ShrEX), Knowledge Innovation & XCUBE Business Incubation. Day, and Book Review.

DEVELOPMENT FOCUS In addition to these programs, we also The following is a description of XL Axiata’s Organization Individual organized an SKKNI (Indonesian National employee training hours. . [GRI 404-1] Responsible Business Capabilities Capabilities In-Class Individual Assignment Coaching & Monitoring Work Competency Standards) program in the

ASSESMENT & gAP ANALYSIS Average training hours per year based on gender [GRI 404-1]

Description 2019 2018 2017 CRITICAL CRITICAL FuCTIONS & COMPETENCIES CRITICAL POSITIONS Male 26.30 32.69 25.99

Functional Leadership Core General MAPPING Female 24.93 27.18 23.33 Technical

Average training hours per year based on employee category [GRI 404-1] BUSINESS INPUT

Description 2019 2018 2017 About The Report

13 must have capabilities XL Business Plan Leaders’ Feedback 9 Leadership Transformation Top Management (Dir. Chief) 57.33 43.63 57.78

Middle Management (GH) 71.21 43.82 27.01

Lower Management (Head. Lead) 31.89 46.02 35.81

Staff (L4) 23.30 28.49 23.56

52 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 53 ReportCeo

3. Leadership Development prepared a tiered leadership program to train In the reporting year, we conducted To ensure that we provide competitive The development of a company is inseparable future leaders to manage XL Axiata. These performance assessment process for all remuneration, XL Axiata conducts remuneration from the development of the leaders who will programs are: employees (100%), both male and female surveys in similar industries. In addition to develop the company. To that end, we have employees, from the various position levels. remuneration in the form of salaries and facilities, [GRI 404-3] our employees receive long-term incentives that

are provided in cash or in the form of shares. Achievements of XL Axiata High Performance Leadership MBA/MM We also show our care about the employees’ • Connecting with yourself Post Graduate Scholarship GROUP Salary and Remuneration families through LLP (Let’s Learn Program), which • Connecting People Program is a fund provided for the development of skills HEAD Our competitive remuneration provides incentives • Setting Direction & Ensuring (For Selected Leaders) and knowledge of employees and their families Head for employees to continue their careers with XL (spouse and children). Programs funded include

ADVANCE Executing Axiata. We pay attention to employee welfare by certification programs, courses (cooking, financial providing attractive salaries and facilities, which planning, more), school fees, and other individual are provided objectively according to employee development programs. In the reporting year, achievements, positions, and competencies. We Sustainability Commitment of XL Axiata more than 90% of employees utilized the program. Intermediate 3C apply 3P principle, namely position, person and Intermediate 3A Intermediate 3B Strenghthen Their response was very positive, and they felt Coaching Skills Business Simulation performance, and we pay salaries or remuneration Leadership appreciated because the company cared about equally the same for both male and female developing themselves and their families. employees. [GRI 405-2] Intermediate 2A Intermediate 2B Intermediate 2C Managerial HEAD FLM Leading FLM Leading Others FLM Leading Work Effectiveness Yourself & Business Lead

Intermediate 1C Intermediate 1A Intermediate 1B Allowance provided to permanent employees not given to temporary employees [GRI 401-2] E xcellence Emerging Leadership FLM Leading Others FLM Leading Work & Business Form of Allowance Permanent Employees Temporary Employees

Religious Holiday Allowance √ √

Leave Allowance (given in the form of days off) √ √ Basic 3A Basic 3B Intermediate 3C

Supervisor Dev. Coaching & Personal Excellence Responsible Business Program Mentoring Dev. Income Tax Allowance √ √ STAFF Basic 1A Intermediate 2B Intermediate 2C Transportation Allowance √ √

basic Leading Self FLM Leading FLM Leading Work & Others Business Life Insurance (part of JKK jamsostek) √ √

Healthcare Facilities √ √

4. Employee Performance Review out in stages, starting with self-assessment Maternity Leave √ √ Besides being useful for evaluating employee by the employee, followed by review of self- Share Ownership √ √ productivity for the development of the assessment by the direct supervisor of the

company, performance assessment also person concerned, implementation of panel Education Allowance for employees and their families √ √ encourages employees to reach their highest evaluation at a higher level, and finally Board of potential. This performance assessment is also Directors’ approval as the last stage. Communication Allowance √ √ About The Report useful for their personal development and DPLK √ - career advancement. This performance assessment is used as a guide for developing short-term and long-term skills, Assessment is conducted twice yearly, involving in addition to determining remuneration. We XL Axiata pays basic salary and remuneration equally the same for both women and men. Salaries and all employees from the many employee also implement PIP (Performance Improvement remuneration are given based on competence. categories, both men and women. The Plan) program, which is a mandatory program assessment indicators include key performance for employees who need improvement to indicator (70%) and XL Axiata values (30%). To achieve certain targets, which is implemented maintain objectivity, the assessment is carried under the supervision.

54 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 55 ReportCeo

Retirement Preparation As a means for fostering relationships and P2k3 organization [GRI 201-3] increasing employee engagement, XL Axiata holds various activities that involve management and We appreciate the dedication and loyalty of our P3K3 employees as follows: employees who have worked with XL Axiata. We Chairman have prepared a retirement program for those • XL Club Achievements of XL Axiata who will enter the pension period, namely those • Group Gathering reaching the age of 56 years. We attempt to help • Employees’ Mass Homecoming General OHS expert them be financially and mentally prepared through • Break the Fast with Management our pension plan, i.e. Manulife insurance (pension) • Safari Ramadan and BPJS pension. For BPJS Pension, employees • Halal Bihalal Directorate would contribute their salary to an amount as • Fruit Attack determined by government regulations, and for • XL Axiata anniversary Manulife, they contribute 3% of basic salary less BPJS Pension. These programs are mandatory, yet The Company’s relationship with employees is Member Member Member Member Member Sustainability Commitment of XL Axiata we have prepared them in such a way as not to also stipulated in the Company Agreement, which burden employees. in detail governs salaries, working conditions, allowances, and other aspects relating to In addition to disseminating OHS to employees, We also periodically perform occupational health from time to time, we conduct emergency and safety audits conducted by third parties. In the In addition to financial preparation, we also provide compensation and workers’ rights. This agreement response drills for emergencies such as for a fire, reporting year, XL Axiata recorded audit results mental and skills preparation by holding special covers all employees (100%) working at XL Axiata. earthquake, explosion, riot, bomb threat and work above the provisions stipulated by the Ministry of seminars on entrepreneurship topic for those who [GRI 102-41] accident. The following are various activities that Manpower of the Republic of Indonesia. are starting to set up their own business. Another we regularly undertake to improve K2 performance: seminar is about preparation to apply for jobs for • Fire fighting simulation using fire hydrants In an effort to insure the health of employees, those who wish to continue working elsewhere. Occupational Health and Safety (OHS) • Simulation of the use of APAR we provide various health facilities such as gyms, • Simulation of emergencies and evacuations comprehensive medical check-ups, and clinics XL Axiata’s commitment to health and safety • Dissemination of National P2K3 activities complete with on-duty doctors at selected times. Work Relationship of each employee is reflected in provisions set • Fire fighting training Management out in the Company Regulations. We also have • OHS induction XL Axiata’s concern for employee welfare is “OHS Policy - XL Axiata” which states that “the Responsible Business realized by opening opportunities for employees to Company is committed to increasing customer express their voices through the labor union. Work satisfaction and providing an efficient, healthy, relationships with employee are managed based and safe workplace for workers and customers by on company rules by upholding Human Rights and implementing continuous improvement programs policies that uphold employee welfare. through Occupational Health & Safety Management System as we uphold and apply OHS aspects in the We respect the right to associate according to performance of operational activities.“ Labor Law No. 13/2003 and ILO Convention 87 and 98, which emphasize that employees have the We actualize this commitment by forming an freedom to establish organizations as a platform Occupational Health Safety Mentoring Committee that bridges between employees and management. (P2K3) team to realize the OHS conscious culture XL Labor Union (SPXL) has been registered with in a consistent and systematic manner. This About The Report the Ministry of Manpower and Transmigration team consists of 17 people from management since 2003, and since then, SPXL has been a (Directors, VP, and managers) as well as employee management partner in building a conducive work representatives from 5 regions. One of the tasks of climate for the company and each employee. this team is to provide safety performance reports of XL Axiata every quarter, and this committee represents all employees working at XL Axiata. [GRI 403-1]

56 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 57 ReportCeo PROCESS EXCELLENCE Governance [GRI 102-11] Excellent process of governance As one of the leading telecommunications companies in Indonesia, XL Axiata continues to transform We emphasize good and each of our operational activities to keep abreast of the latest industry trends and developments. We remain resolute in building a corporate governance company with a dynamic vision, a vision that is

underlying XL Axiata as a company expressly described in a clear and well-prepared as it provides a Achievements of XL Axiata “roadmap”. All this is possible as it is built on a structure toward which is sturdy and growing. foundation of good corporate governance (GCG). sustainable growth and The six GCG principles, namely: transparency, supports the company accountability, responsibility, independency, fairness, and digitalization, are applied in every to achieve excellence. aspect of XL Axiata’s operations with due observance of various laws and regulations as well Sustainability Commitment of XL Axiata as national and international standards: The application of best governance practices aims to: • Maintain accountability and independency • Law of the Republic of Indonesia No. 40 of in carrying out duties of each element of 2007 concerning Limited Liability Companies XL Axiata, from the GMS to the Boards of and its implementing regulations. Commissioners and Directors. • Law of the Republic of Indonesia No.8 of 1995 • Ensure that every decision is made and concerning Capital Market and its implementing implemented according to high moral standards by regulations. complying with all applicable laws and regulations. • Financial Services Authority Regulation • Encourage awareness of every element in XL No. 21/POJK.04/2015 dated 16 December Axiata to be responsible for preserving the 2015 Implementation of Code of Corporate environment and contributing to society. Governance for Public Companies. • Meet the expectations of stakeholders to • Financial Services Authority Circular No. 32/ build XL Axiata as a professional, long-term

SEOJK.04/2015 concerning Code of Corporate oriented company, with the support of Responsible Business Governance for Public Companies. superior human capital. • Best governance standards at the national and • Increase market confidence in XL Axiata. ASEAN levels through the ASEAN Corporate • Optimize competitive advantage in turning XL Governance Scorecard/ACGS. Axiata into a sustainable company. About The Report

58 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 59 Governance ReportCeo Structure [GRI 102-18]

Governance structure of XL Axiata is established according to the applicable laws and consists of the BOARD OF COMMISSIONERS BOARD OF DIRECTORS following elements: The Board of Commissioners is a corporate organ The Board of Directors is responsible for managing that performs collectively and responsible fro the the Company’s resources, functioning optimally following: while in accordance with the intended directives

Elements of Governance Structure • Give approval for business plans, including XL and objectives, and acting on behalf of the Achievements of XL Axiata Axiata strategy. company in matters both inside and outside of • Monitor the development of XL Axiata and the court. The Company’s management function performance of Board of Directors, including by the Board of Directors includes 5 (five) main reporting to the GMS regarding all supervisory duties, namely: GENERAL MEETING OF SHAREHOLDERS tasks and actions carried out during the • Management previous fiscal year. • Risk management BOARD OF BOARD OF • Hold and attend Board of Commissioners • Internal control DIRECTORS COMMISSIONER Meetings, Joint Meeting of Board of • Communication

Commissioners and Directors based on the • Social responsibility. Sustainability Commitment of XL Axiata applicable laws and regulations, as well as review and approve minutes of meeting In carrying out the duties of managing the President Director Nomination & prepared by Corporate Secretary. Company, the Board of Directors is guided by the Audit Committee Remuneration • Review and approve Annual Report prepared by Board of Directors’ Manual, which contains the Committee Board of Directors. Code of Conduct and the Code of Ethics for the • Propose Public Accountant and/or Public Board of Directors. Accounting Firm for the fiscal year in Company Director accordance with the applicable regulations to In accordance with their duties and roles, the Corporate obtain approval from the GMS. Board of Directors develops business development Secretary • Board of Commissioners of XL Axiata must strategies, work plans, performs operational review and approve the Company’s Corporate activities and evaluates performance achievements. Action based on the scope of authority in In order to guarantee the security of the Board of Directors Internal Audit & accordance with the provisions of the Articles management of all of the Company’s resources, the

Responsible Business

Committee Risk Management of Association and applicable Regulations. Board of Directors also prepares and implements • Each member of the Board of Commissioners risk management that includes all aspects of the of XL Axiata is required to periodically disclose Company’s operations. The Board of Directors shares owned by themselves or their families also establishes an internal control unit, ensures as well as their concurrent positions as required efficient internal (inter-section) and external (with in the Indonesian Company Law and POJK 33/ stakeholders) communication and prepares and POJK.04/2014. implements the Company’s social responsibility Through the GMS each shareholder has the GENERAL MEETING OF • Monitor and evaluate governance activities. right to voting rights, according to the number SHAREHOLDERS (GMS) implementation within XL Axiata’s environment. of owned shares, setting attitudes in the The GMS is an internal forum where shareholders process of strategic decision-making relating meet to discuss and decide on various strategic to the determination of the Company’s future. issues of the Company. In addition, the GMS In accordance with XL Axiata’s Articles of

evaluates the performance of the Board of Association, the GMS consists of: About The Report Commissioners and the Board of Directors in • Annual GMS held once a year, no later than 6 managing the company in the economic, social and months after the end of financial year. environmental fields as related to business interests • Extraordinary GMS held at any time as required. and based on the Articles of Association and regulations.

60 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 61 Company C Business Ethics [GRI 102-16] eo Report

In accordance with XL Axiata’s values of uncompromising integrity, team synergy, simplicity, and exceptional • Employees are required to sign a professional • The Board Manual is given to Commissioners performance, all XL Axiata employees are required to have high ethical standards and there is no tolerance commitment statement which is done once a and Directors at the beginning of their for unethical behavior (I) in their work every day. They are also required to produce team synergy (T), all to year. This letter includes explanations of: assignments. shape the behaviors and main competencies to provide service excellence and convenience for customers o Work ethics, including not abusing the (S), as well as with high enthusiasm in giving exceptional performance (XL) to deliver best experience for authority of the position. • The company has carried out several initiatives

customers. o Not accepting or requesting all forms to disseminate the Code of Conduct (ITS Achievements of XL Axiata of commissions and/or other forms of XL), including conducting e-learning for all These values are set forth in Company Regulations and Company Business Ethics/Code of Ethics which are compensation. employees, employee open discussions used as work rules for employees by upholding professional values and integrity. XL Axiata’s Code of Ethic o Confidentiality of Company documents. with Directors (for example: CEO Listen), covers the following principles: o Compliance with applicable laws and dissemination via email to all employees by regulations. providing examples of following the Code of o Avoiding/ensuring the condition of free Conduct (such as zero gift receiving). from any conflicts of interest. Equal Treatment, namely o Compliance with company regulations, and Sustainability Commitment of XL Axiata non-discriminatory company business ethics. treatment to employees in a sound work environment with integrity without Commitment to Customers, exception. namely holding the commitment to customers Anti by building an attitude of Trustworthiness and Corruption [GRI 205-2] providing appropriate solutions. “Uncompromising integrity” is one of XL Axiata’s and fraud prevention and handling efforts in XL

Healthy Partnership, namely values, and to realize this, we ensure that every Axiata are built according to the prevailing laws in building a sound business employee understands anti-corruption and fraud the Republic of Indonesia. In particular, we conduct partnership with third principles and practices these in the performance training on the following topics: parties to comply with of their duties and responsibilities on a daily basis. • Culture internalization of ITS XL workshops, XL policies and prevailing Anti-Corruption Culture, Specifically, we have a Zero Receiving policy, conducted for all directorates in groups. regulations. Responsible Business namely avoiding conflict of which is a prohibition on receiving or requesting • E-learning with Fraud Risk Assessment material, interest, and not accepting gratuities, as well as all forms of commission and/or other forms of culture and values of XL ITS for all employees. applying anti-corruption, compensation, either direct or indirectly. collusion and nepotism Data regarding communication and anti-corruption principles. In the enforcement of anti-corruption and fraud, training are listed in the table below: XL Axiata has set up a special committee, namely the Whistleblowing Committee. Anti-corruption

Based on Region XL Axiata also has Guidelines for Work Regulation and Code of Ethics for the Boards of Commissioners and Description Communicated by the organization on Attended training on anti-corruption Directors, called the Board Manual. Not to forget, XL Axiata also has put in place a Code of Business Ethics anti-corruption policy and procedure for business partners. Thus, it is expected that every element and person involved in XL Axiata’s business will apply the values and uphold the same ethics. Total % Total % About The Report Headquarter 1,341 100 1,341 100 The Company’s code of ethics is disseminated to every XL Axiata employee, from the highest level, namely the Boards of Commissioners and Directors to all employees through various means: Region Central 66 100 62 94

Region East 84 100 87 104 •. Company Regulations and Company Business Ethics/Code of Ethics is given from the start of the employee’s employment and can be accessed by all employees in the internal portal designated for Region Jabo 49 100 10 20

XL Axiata employees. Company Regulations and Business Ethics/Code of Ethics applies to all leaders Region West 66 100 68 100 and employees of XL Axiata. The Board of Directors is responsible for ensuring that this standard is implemented in all operational activities of the company. Total 1,606 1,563

62 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 63 ReportCeo

Based on employee category • On our website for “vendor registration” or vendor registration, there is an obligation to sign anti-

Description Communicated by the organization on Attended training on anti-corruption corruption and fraud commitments anti-corruption policy and procedure

Total % Total % Total % Domestic 15,168 97 Board of Directors 9 100 11 100 Achievements of XL Axiata Oversease 427 3 Senior management 236 100 236 100 Total 15,595 100 Staf 1,361 100 1,339 98

Total 1,606 1,584 All our business partners across all the regions have had communications regarding anti-corruption policies and procedures. This communication is conveyed in official business contact between XL Axiata and business partners where business partners sign a statement of commitment to business ethics. The following are methods that we have adopted ITS XL values, one of which is Uncompromising to promote the integrity principle, including anti- Integrity and e-learning.

corruption and fraud: Sustainability Commitment of XL Axiata • Each employee gives their commitment every Whistleblowing [GRI 102-17] • Other than through company regulations year through the signing of e-SKP or Electronic and company business ethics/code of ethics Professional Commitment Letter, which Over the years, the number of violation reports on ethics as well as fraud and corruption has declined due to that can be accessed at any time through contains an anti-corruption and fraud pact. consistent dissemination of values and commitment to anti-corruption and fraud. However, we understand the internal portal, XL axiata regularly This commitment is made by every employee, the importance of providing a means of reporting for the prevention of ethical violations as well as communicates via email, direct face-to-face including outsourced employees. This pact corruption, collusion, and nepotism. forums with employees when disseminating is known by the relevant supervisor and XL Company Regulations, and through culture Axiata’s Human Capital department. XL Axiata opened “Speak Up” hotline service as a platform to accommodate reports of alleged violations internalization where employees are that have occurred, including unlawful actions, as well as other behaviors that are against the norms and encouraged to have better understanding of In the reporting year there were no corruption the company’s business ethics. This hotline service is available in English and Indonesian language, and incidents recorded. [GRI 205-3] can be used by all employees, including business partners. This mechanism is under the supervision of the Investigation Department which is part of the Audit & Risk Management division. Responsible Business Directing of Anti Corruption The following systems and procedures apply in the whistleblowing process: in Business Partners Employees/business After the report Whistleblowers may partners can report is received, the seek for feedback through “Speak Up” completeness of the about the concerns In its relationship with business partners, XL the implementation of cooperation and tender Axiata always upholds professionalism, integrity, processes must be handled and treated as hotline via web, email, report and conflict raised by entering case and reliability as values. XL Axiata also has confidential information unless the information is free telephone calls, potential will be checked number and password Business Ethics guidelines for business partners. for public disclosure. and mobile applications and then followed- given to the “Speak For example, in the procurement of goods and • Every employee or party involved in the where there are up. Full details of the Up” hotline to get services that include a tender process, there are evaluation process and granting of approval for instructions to report investigation will not be updates (including the arrangements as follows: the tender results must provide a statement complaints. provided to maintain completion/closing of

• Tender process must involve relevant units and regarding the absence of a conflict of interest confidentiality and the investigation). About The Report comply with applicable regulations and related with the tender process. privacy. procurement policies/procedures, including • Employees are prohibited from promoting legal, administrative and other procedures. business partners, including its products and/ In carrying out the tender process, business or services during the tender process, and it is Reports that enter the “speak up” hotline are confidential, and the whistleblower’s identity will be protected partners must obtain equal and impartial strictly forbidden to receive presents, assistance, in accordance with XL Axiata’s “whistleblowing” policy. All reports will be handled professionally by the treatment. or gifts as a token of gratitude from XL Axiata Investigation Department and will be followed up in accordance with disciplinary actions as stated in • Confidentiality of all information, data and vendors. Company Regulations and the Company’s Business Ethics/Code of Ethics. Incident handling related to documentation provided by business partners in violations of company regulations and codes of conduct will be subject to disciplinary actions which may result in the imposition of penalties, from official reprimands or demotion to termination of employment.

64 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 65 Digital

Transformation ReportCeo

We believe that digital transformation is one of the keys to achieving sustainability goals (SDGs) considering Achievements of XL Axiata that through this technology, the community and the business world can achieve efficiencies and reduce energy use. Our digital transformation efforts include:

COUPA Electrical automation of

Coupa, a source to pay system (S2P), a digital meeting rooms system integrated in the sourcing and invoicing All meeting rooms in XL Axiata Tower have been process, i.e. creating sourcing requests, creating

installed with a device that enables automation Sustainability Commitment of XL Axiata PR/PO, invoicing submissions for PO and Non-PO of electricity usage, so that when not in use, the transactions. electricity in meeting rooms will be “turned off” and • This system enables the Company to avoid will only turn on when the user enters the room. stacks of office paper (supporting Go Green) This system is activated by connecting bluetooth • Easy access to purchasing applications with between users and automation tools in the room internet and intranet networks and greatly saves energy and reduces emissions. • Integrated procurement system • Simplify and speed up data analysis and can Video Conference Room monitor the ongoing transaction process. There are several meeting rooms with video Ting Room Application conferencing facilities at XL Axiata Tower office. This system has been proven effective in reducing Ting Room Application, an application that out-of-town business travel, thereby reducing facilitates all XL Axiata employees to book a room aircraft energy and emissions. Responsible Business in the office for meeting needs.

Environment XL Axiata is determined to protect and preserve PLANET AND SOCIETY the environment through energy Our strategy and operational activities No doubt that we all want to live on a good, About The Report healthy and sustainable earth. Therefore, all savings, technological are pro-environment and pro-social. The components of society, including the business world, are obliged to take part in maintaining a innovation, and other well-being of the planet and its people is sustainable environment in accordance with the initiatives. sustainable development goals. Environmental what determines the development of our responsibility has been one of the main pillars in XL company too. Axiata’s sustainability journey.

66 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 67 ReportCeo

In relation to the environment, our environmental Fuel (Joule) Energy Reduction [GRI 302-4] intensity [GRI 302-3] preservation initiatives are realized through energy 2019 84,400 We have taken various energy saving efforts, As a measurement of energy savings, we use the and emissions control besides other efforts such as: among others: energy intensity parameter, which is the energy • Replacement of copper cable to optical fiber. • The air conditioner (AC) and electricity usage consumption per unit of our production output, Past technology used copper cables for data 2018 46,410 which is data transmission unit (bandwidth) in are set between 06:30 to 18:30. If there are Achievements of XL Axiata transmission. However, copper mining is an overtime activities outside these hours, the terabytes. activity that damages the environment and 2017 46,410 interested parties will apply for additional produces toxic chemicals. Conversely, optical electricity usage hours. fiber has minimal environmental impact besides • Arrangement of electricity usage in meeting consuming 25x less energy than copper rooms. Power in all meeting rooms is “turned Total Energy Consumed (Joule) cables. Economically, the use of optical fiber off” when not in use. will produce more bandwidth than copper. Electricity (Joule) 2019 30,474,400 • Preparing a meeting room that is equipped Replacement of copper cable to optical fiber is with video conference facilities, reducing out- done in stages while striving to reduce the use 2019 26,160,000 2018

30,596,410 Sustainability Commitment of XL Axiata of-town business travel automatically reducing of paper through a digitization system in both energy and emissions. the procurement and all approval processes. 2018 26,330,000 2017 29,626,410 • Reducing the use of plastics such as plastic We also launched “Green BTS” program for energy cups, plastic bottles, and plastic cutlery in 2017 24,020,000 savings in the form of: offices, canteens, pantry, and meeting rooms. • Intelligent Ventilation Cooling System (IVS), the • Sorting out domestic waste. use of DC fans and Air Conditioning. Bandwith (Terabyte) • (AC) as a cooling system at BTS so that AC. operation was reduced by up to 30%. 2019 3,319.9 Energy Consumption [GRI 302-1] Solar (joule) • The use of a Single RAN BTS, which is the The main energy sources used in XL Axiata’s integration of several types of BTS into one 2018 2,200.7 operations are electricity, in addition to diesel as fuel 2019 4,230,000 single BTS that proved successful to reduce for BTS (Base Transceiver Station) locations that do energy consumption by 60%. 2017 1,249.5 not yet have electricity connections, and fuel used in 2018 4,220,000 • Use of Green BTS through network Responsible Business transportation. To date, we have not used energy from modernization with the latest technological renewable sources, apart from solar cells (solar energy) 2017 5,560,000 devices, able to save 50% in energy use. which are used as a backup when electricity goes out • Use of Hybrid System Charge Discharge Energy Intensity (joule/petabyte) at 20 existing BTS. The following table describes use Battery (CDC) on BTS in non remote areas with of energy throughout the XL Axiata operating area, no electricity so that diesel consumption is 2019 9,182 which is calculated according to the PLN meter, while reduced by 54%. fuel is calculated according to its use in liters. • The use of new refrigerators for cooling BTS 2018 13,907 and XL Axiata offices to cut down electricity consumption. 2017 23,720

As a result, there is a reduction in energy consumption amounting 122,010 joule. calculation

of energy reduction using electricity meter and About The Report fuel according to the purchase liter. Energy intensity in 2019 decreased by 33.9% compared to the previous year. Therefore to produce the same petabytes, we use less energy.

122,010 joule Total reduction (Joules) of energy sources

68 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 69 ReportCeo

Emission Indirect GHG Emissions (Scope 2) [GRI 305-2] Greenhouse Gases (GHGs) are gases in the atmosphere that can cause changes in the radiation Electricity ( Ton CO 2 eq) balance that affect the temperature of the earth’s 2019 588.0

atmosphere. We recognize the importance of Achievements of XL Axiata efforts to reduce GHG emissions by decreasing energy use. 2018 591.9

The sources of GHG emissions in our company 2017 540.0 are direct emissions from the use of fuel for transportation and diesel for generators, as well as indirect emissions from electricity use. The following are the data on emissions calculated. Sustainability Commitment of XL Axiata

0.8 ( Ton CO 2 eq)

Direct GHG Emissions (Scope 1) [GRI 305-1] Emission Reduction [GRI 305-5]

Fuel Oil ( Ton CO 2 eq)

2019 6.3

2018 3.5 The following is the intensity of GHG emissions, which calculates Scope 1 and Scope 2 GHG emissions using a bandwidth production unit with 2017 3.5 petabytes unit. [GRI 305-4] Responsible Business

Emission intensity 2019 2018 2017

Disel Genset ( Ton CO 2 eq) Total emission 718.3 719.1 706.6 2019 124.0 Bandwith 3,391.9 2,207.7 1,249.5 (petabyte) 2018 123.7

Total (Ton CO2 eq/ 0.2 0.3 0.6 2017 163.1 (petabyte)

The above table calculates Coverage 1 and Coverage

2 GHG emissions. Calculation of direct and indirect About The Report emissions, as well as emission reduction only count CO2 emissions, and use the standard/methodology 130,3( Ton CO 2 eq) from the Institute for Global Environmental Strategies List of Grid Emission Factors Year: 2019. Total Emission Electricity specific emission factor for grid electricity scope 1 Econometrica Year: 2011 World Resource Institute (2008), GHG Protocol tool for stationary combustion. Version 4.0. 2009 Guidelines to Defra/DECC© GHG Conversion Factors for Company Reporting.

70 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK . CONTINUE GROWTH IN THE DIGITAL ERA 71 USO (Universal Service Obligation) [GRI 203-1] SISTERNET ReportCeo

To create even distribution and provision of telecommunications services in areas that have not yet been As we all know, women are one of the main economic drivers that contribute to economic growth and reached by telecommunications and data services, XL Axiata continues to develop telecommunications and Achievements of XL Axiata stability in the future. Digitization provides the means to achieve this goal. All Sisternet activities are data networks in remote areas through USO (Universal Service Obligation) scheme. XL Axiata is the first collaborations with various partners from the government, NGOs, communities, and other private parties. telecommunications operator that launched USO network in 2019.

Construction of USO BTS in 2019 289

BTS USO Sustainability Commitment of XL Axiata

BTS 4G Modul Pintar Pojok Pintar Kelas Literasi Kelas Kreatif Education modules in the Learning space for Digital Inspiratif form of audio and video Indonesian women, Encouraging women to Through digital literacy 51 which contain various creating opportunities build digital skills, get program, women Regencies topics from experts for with easy access inspired, and connect in digitally isolated Indonesian women. to communication with each other through communities obtain Mostly built in central and eastern technology. digital literacy class. information and skills. Indonesia, including Sulawesi, NTT, Located in the Ministry Maluku, and Papua of Communications and Informatics Building.

SISTERNET: ONline OFFline Women’s

Launching BTS USO di Desa Aewora empowerment Responsible Business Maurole District, Ende Regency, NTT, with a series of activities: programs that aim 23,000 27 6,650 member online events women trained to inspire Indonesian In the city: Jakarta, Bali, Surabaya, • Dissemination • Education on the use of digital • Distribution of Quota women to further Palembang, Labuan Bajo dan Boalemo, session of the use services through Sisternet program Donation Movement develop and improve 864 1,095 Bandung, Lampung, Solo, Yogya, of Laut Nusantara with the theme “Becoming (GDK) for SMP Negeri Bandung, Makassar, Medan, Malang, their living standards. website articles social media content application for Children’s Friends in the Digital Aewora. The donation Nunukan, Asahan, Maumere. local fishermen, Era”. The training was attended by is in the form of LCD which was attended 40 people, including fishermen’s Projector unit, textbooks, by more than 40 wife and housewife in Aewora and and learning equipment. fishermen. surrounding areas. About The Report

72 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 73 Giving

The Best SERVICE ReportCeo

Customers are our XL Axiata’s approach to customer service main stakeholders, who • Providing a Customer Service Center contribute in ensuring (Call Center). Achievements of XL Axiata the business continuity • Building a Customer Experience & Service Operation Center (CE & SOC). of XL Axiata. Providing • Conducting customer satisfaction excellent customer surveys. service is part of our • Preparing always-available integrated policy. customer service. Sustainability Commitment of XL Axiata

Customer Service Center anticipate future needs, especially regarding (Call Center) network development plans and adoption of the latest technology. In an effort to increase customer satisfaction, we formed a Service Management Directorate to ensure that customer protection is always put as a Customer Satisfaction top priority. One of the targets of the Directorate of Survey Service Management is to improve the performance of the Customer Service Center (call center) by In order to continuously provide excellent customer upgrading employee skills in terms of: service, we evaluate our services and conduct • Handling customer complaints. periodic customer satisfaction surveys that are carried out by independent and competent • Listening and responding directly to customer consultants. Our commitment to customer calls. satisfaction is manifested in the following activities: • Providing clear information related to products. • Provision of products that are safe and Responsible Business meet applicable standards and regulations, Customer Experience & including compliance with ICNIRP (International Service Operation Center Commission on Non-Ionizing Radio Protection) rules. Our goal is to provide customers with a convenient • Intensive relationships through marketing and simple “customer experience”, as well as our communications and service media, directly support to solve all problems the customers face. with customers. • Provision of clear product information and The Customer Experience & Service Operation guarantee of consumer protection. Center (CE & SOC) is an integrated service • Provision of understanding to both prospective quality monitoring center, housed in an integrated and existing customers about matters relating monitoring room to operate 4 NOC (Network to products. RESPONSIBLE Operation Centers), namely: Telco Network, IT • Realization of investment in the development Infrastructure, IT Apps and Billing. One of the BUSINESS of key and supporting infrastructure as well functions of CE & SOC is to facilitate coordination About The Report as implementation of product development in overcoming potential problems related to programs in accordance with information network performance and service quality. CE & Developing quality products, providing service technology developments. SOC was built from network elements, hundreds of • Provision of customer service facilities and excellence, and ensuring the security and confidentiality thousands of alarms assisted by machines, not just settlement of all customer complaints. manual. This will increase the speed and accuracy of customer data are our efforts to build a responsible • Implementation of periodic customer of our services. This service center will also facilitate satisfaction surveys as key component of the business. XL Axiata in monitoring service dynamics, including quality improvement program. customer usage behavior. Thus, CE & SOC can

74 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 75 ReportCeo

Briefly speaking, there are six directions of our concern in an effort to deliver customer satisfaction: Integrated Customer regarding Telecommunications, XL Axiata operates Services its services by paying attention to consumer protection namely: Placing customers at the center of our business means providing them with a means where

customers can contact us at any time and for any Achievements of XL Axiata Reliable problem. They do not need to wait for office hours Product to report and have followed up the problems they The right to obtain correct, encounter. XL Axiata provides various channels for clear and honest product customers to contact us: and service information; Easy Wide • More than 600 customer service personnel Purchase Coverage Process consisting of call centers, XL Centers and XL The right for consumer Care that are ready to respond to customers’ complaints to be heard and needs 24 hours a day, 7 days a week on the 817 disputes resolved; customer telephone line. Sustainability Commitment of XL Axiata satisfaction • Customer messaging services through Twitter The right to obtain good social media accounts at @ask_ AXIS and service in a fair and non- Facebook myXLCare. • Customer service contact through myXL discriminatory manner. Good Quality Competitive application, live chat at xl.co.id, and email Network Price [email protected]. • 95 XL Centers spread throughout Indonesia.

XL Axiata has also published guidelines for The Best marketing publications and promotions that are Customer Customer Appreciation Service in line with the Advertising Code of Ethics and Hari Pelanggan merupakan kesempatan di mana Consumer Protection Act. We ensure that all Customer Day is an opportunity where Directors, promotional activities and product information are Responsible Business including President Director Dian Siswarini, can in accordance with the applicable requirements and meet and participate in serving loyal customers of regulations. Thus, in the reporting year there were XL, Axis and XL Prioritas. The event was held at no incidents of violation or non-compliance with Every input and complaint from our customers is reviewed so that we can later analyze and identify the Xplor Lotte Shopping Avenue, Ciputra Mall. Several marketing and labelling regulations. [GRI 417-3] driving factors of customer satisfaction. In addition, we conduct a Net Promoter Survey (NPS) that measures interesting events have been prepared, including “customer experience” and customer perceptions about our brand in order to determine business growth. a cashback program, and the Xtravaganza & This measurement is carried out twice a year. FantAXIS Quiz with the granting of a Grand Prize CUSTOMER PRIVACY for the winners. In addition, special meals are held We also measure Customer Service (CS) performance using criteria set by industry standards. The XL Axiata is fully committed to protecting customer at star-rated hotels, attended by Directors and measurement results show that XL Axiata does not only meet the standards of the Indonesian privacy in accordance with Indonesian and management, for customers who use all types Telecommunications Regulatory Authority (BRTI), but also exceeds these standards, as shown in the international laws and regulations. We adopt best of XL Axiata services. Through this event, we following table: practices of ISO 27001 regarding the application of can interact directly with customers from various Information Security Management System (ISMS). professional backgrounds who provide input for the

XL Axiata received this certification for its ability to About The Report Service Performance Parameter Standar BRTI 2019 2018 2017 improvement of XL Axiata service and quality. plan, manage, study and improve efforts to secure Customer complaint Percentage of responded >90% 99.24 99 99 information in the company, which in this case handling standard customer complaints relates to customer data. With strict compliance CONSUMER PROTECTION with regulations relating to customer privacy, we Service disruption report Number of service <50 0.7 0.9 2.7 standard disruption reports per In accordance with Law No. 8/1999 concerning have never received complaints regarding violations 1,000 customers Consumer Protection and Law No.36 / 1999 of customer privacy. [GRI 418-1]

76 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 77 ReportCeo

Sustainability issues are of serious concern to XL We have not used assurance service from external Axiata. Hence, we fulfill our commitment as part party in the preparation of this report. The use of of our efforts to participate in realizing Sustainable external assurance service will be considered in the Development Goals (SDGs) and report all this to next report. [GRI 102-56]. stakeholders. We hope that through this report we

can obtain support from stakeholders in order to Achievements of XL Axiata achieve optimal sustainability performance. DETERMINATION OF CONTENTS AND BOUNDARY [GRI 102-44] [GRI 102-45] [GRI 102-46] REPORT PERIOD This report contains data on sustainability This report contains information for the period performance of XL Axiata as a company only, as we 1 January 2019 to 31 December 2019. XL Axiata do not have any subsidiaries. publishes sustainability reports every year, and a report before this was published in April 2018. No In determining the report content, we apply four Sustainability Commitment of XL Axiata significant changes in the list of material topics with steps required by the GRI Standards, namely: the previous report. No significant changes in the • Identifying material aspects and boundaries company’s structure or supply chain. However, there (identification steps). is a restatement of information in terms of energy • Prioritizing the aspects identified in the previous and emissions, due to changes in the reporting and step (Priority step). calculation system that currently follows the XL • Validating the material aspects (Validation step). Axiata center. [GRI 102-10] [GRI 102-48] [GRI 102-49] • Conducting a review of reports after [GRI 102-50] [GRI 102-51] [GRI 102-52] publication to improve the quality of the following year’s report.

This report is prepared in accordance with GRI The process of determining the Report contents is Standards: Core Choices, with a list of GRI Standards carried out by taking into account the conformity index included on page 85. with the basic principles of the GRI, namely Responsible Business [GRI 102-54] [GRI 102-55] stakeholder inclusiveness; materiality; sustainability context and completeness.

FLOW CHART DETERMINES STATEMENT OF REPORT CONTENT

Step 1 Step 2 Step 3 ABOUT IDENTIFYING PRIORITY VALIDATION THE REPORT Sustainability Materiality Completeness Context About The Report

Through this sustainability report, we strive to provide STAKEHOLDER ENGAGEMENT stakeholders with an understanding of XL Axiata’s commitment and performance in economic, social and environmental issues as part of XL Axiata’s Step 4 responsibilities. REVIEW Sustainability Stakeholder Context Engagement

78 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 79 ReportCeo

Topics presented in this report are the results of the materiality testing that has been carried out by FGD These material aspects are summarized in the following table:

that involves stakeholders of XL Axiata. We prioritize topics that are relevant and have significant impact Material Topic Reason for selection and Disclosure Number Boundary on stakeholders, business continuity, and sustainability issues. This topic selection is illustrated in the [GRI 102-47] impact [GRI 103-1] following matrix. Inside XL Outside XL AXIATA AXIATA Achievements of XL Axiata Economy

Economic Performance Stakeholders 201-1, 201-3, 203-1, 203-2 √

MATERIALITY LEVEL Market Presence Stakeholders 204-1 √ √ Governance Laws and regulation 205-2, 205-3 √

Environment

Energy Sustainability 302-1, 302-3, 302-4 √ √

Employee’s welfare Sustainability Commitment of XL Axiata Emission Sustainability 305-1, 305-2, 305-4, √ √ High 305-5 Economic Performance Energy Social Usage Labor Employees 401-1, 401-2 √ Customer satisfaction Work Environment Employees 403-1, √ 404-1, 404-2, 404-3, Occupational 405-1, 405-2 Anti-Corruption health and safety Equality and Diversity Employees 406-1 √ Renewable energy Local Communities Stakeholders 413-1 √ √ Empowering k eholders sta Waste Carbon emissions the people’s Marketing and Labelling Customers 417-3 √ Medium economy to

Compliance in economic Laws and regulation 418-1 √ √ Responsible Business field

Local procurement Basic human Indirect practices rights economic STAKEHOLDERS I mportant impacts to Community community assistance Stakeholders are one of the elements that we consider in the preparation of this report, given their role in decision making and company operations. The following are XL Axiata’s stakeholders and our efforts in building relationships and paying attention to their interests:

Low Biodiversity Stakeholders Basis of Method of Engagement Frequency Topics [GRI 102-40] Determination [GRI 102-43] [GRI 102-44] [GRI 102-42]

Shareholders and -- Responsibility -- Annual GMS -- Annual -- Compliance with laws About The Report Investors -- Influence -- Extraordinary GMS -- as needed per and regulations Low Medium High -- Dependency -- Investor Conferences quarter -- Investment and/or NonDeal -- per quarter -- performance Important to Company Roadshows -- if needed -- Dividends -- Explanation of quarterly -- if needed -- Accountability & performance accuracy of financial -- Meetings and statements communication with -- Financial analysts performance and -- Meetings with investors outlook

80 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 81 ReportCeo

Stakeholders Basis of Method of Engagement Frequency Topics Stakeholders Basis of Method of Engagement Frequency Topics [GRI 102-40] Determination [GRI 102-43] [GRI 102-44] [GRI 102-40] Determination [GRI 102-43] [GRI 102-44] [GRI 102-42] [GRI 102-42]

Customers -- Responsibility -- Customer Gathering -- As required -- Quality of products Partners and -- Influence -- Implementation of At least once a year -- Transparency of the -- Influence -- Social Media Customer -- As required and services Suppliers -- Proximity product & service tender process

-- Dependency Service -- As required -- Affordable price -- Dependency contracts -- Transparent Achievements of XL Axiata -- XL Xplor -- Twice a year -- Customer complaints -- Periodic evaluation and reasonable -- Customer satisfaction -- As required handling forums supervision and survey -- As required -- Customer service performance -- Service Center evaluation -- XL Center -- Implementation of fair reward and Employees -- Responsibility -- Employee Engagement -- Every year -- Company punishment -- Influence Survey -- Every two months performance and -- A fair and transparent -- Dependency -- Employee and -- Twice a week updates. procurement process -- Representative Management -- As required -- Management of -- Implementation of Communication Forums -- As required performance and labor norms as well as

Internal Communication rewards Sustainability Commitment of XL Axiata occupational health & Media -- Employee welfare safety -- FGD -- AntiDiscrimination -- Environmental -- Labor Union Practices management -- Occupational Health -- Objective vendor and Safety selection and -- A conducive work evaluation environment -- Employee Rights and Society -- Influence -- Joint activities and joint As required -- Implementation of Obligations -- Proximity programs Social Responsibility -- Website -- Disaster response Government -- Responsibility -- Activities in the Law As required -- Compliance with laws -- CSR activities -- Coordination and -- Influence and Regulations section and regulations Consolidation -- Dependency -- Compliance and other -- Transparency and -- Representative regulatory reports and uptodate information updates -- Opportunity to play a -- Coordination meeting role in CSR programs

-- Integrated community -- Good corporate Responsible Business program governance -- Joint activity -- Coordination and consolidation -- Anticipation, To improve report quality, we value and accept every input, idea, and criticism from each reader for negotiation, discussion, improvement of the next report. The reader can also request information or further information about this development of report at: [GRI 102-53] relevant regulations -- Agreement with the Government PT XL Axiata Tbk -- Reporting -- Anti corruption and Head Office business ethics Corporate Communication Department

Media Influence -- Press conference As required -- Financial XL Axiata Tower -- Media release and performance Jl. H.R Rasuna Said X5 Kav.11-12, About The Report media engagement -- Clear and uptodate Kuningan Timur, Setiabudi, -- Clear and uptodate information on Jakarta Selatan 12950 information on corporate action and corporate action and strategic direction Telp : (62-21) 576 1881 strategic direction -- Progress and status Fax : (62-21) 579 59928 of nonfinancial e-mail : [email protected] performance -- The latest information www.xl.co.id on the company, products and services -- Media relations

82 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 83 Statement GRI Index GRI ReportCeo Standards in Accordance Check Standards [GRI 102-55]

GRI Standards Disclosure Page

No Indicator

General Disclosures

Organizational profile Achievements of XL Axiata GRI 102: General Disclosures 102-1 Organizational profile 16 2016 102-2 Activities, brands, products, and services 16

102-3 Location of headquarters 18

102-4 Location of operations 18

102-5 Ownership and legal form 17

102-6 Markets served 17

102-7 Scale of the organization 18 Sustainability Commitment of XL Axiata Statement GRI Standards in Accordance Check 102-8 Information on employees and other workers 48 102-9 Supply chain 30

102-10 Significant changes to the organization and its 79 The National Center for Sustainability Reporting (NCSR) supply chain has conducted a GRI Standards in Accordance Check on 102-11 Precautionary Principle or approach 59 PT XL Axiata Tbk Sustainability Report 2019 (“Report”). The 102-12 External initiatives 19

check communicates the extent to which the GRI Standards 102-13 Membership of associations 19

has been applied in the Report. The check does not provide Strategy an opinion on the sustainability performance of the reporter 102-14 Statement from senior decision-maker 5 or the quality of the information provided in the report. Ethics and Integrity

102-16 Values, principles, standards, and norms of 62

behavior Responsible Business

We conclude that this report has been prepared in accordance 102-17 Mechanisms for advice and concerns about 65 with GRI Standards - Core option. ethics Governance

102-18 Governance structure 60

Jakarta, 7 April 2020 Stakeholder Engagement

102-40 List of stakeholder groups 81, 82, 83

102-41 Collective bargaining agreements 56 National Center for Sustainability Reporting 102-42 Identifying and selecting stakeholders 81, 82, 83

102-43 Approach to stakeholder engagement 81, 82, 83

102-44 Key topics and concerns raised 79, 81, 82, 83 About The Report Reporting Practices

102-45 Entities included in the consolidated financial 79 Dewi Fitriasari, Ph.D., CSRA, CMA statements Director 102-46 Defining report content and topic Boundaries 79

102-47 List of material topics 81

102-48 Restatements of information 79

102-49 Changes in reporting 79

84 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 85 ReportCeo

GRI Standards Disclosure Page GRI Standards Disclosure Page

No Indicator No Indicator

102-50 Reporting period 79 ENVIROMENTAL IMPACTS

102-51 Date of most recent report 79 Energy Achievements of XL Axiata 102-52 Reporting cycle 79 GRI 103 Management Approach 103-1 Explanation of the material topic and its 81 2016 Boundary 102-53 Contact point for questions regarding the report 83 103-2 The management approach and its components 68-69 102-54 Claims of reporting in accordance with the GRI 79 Standards 103-3 Evaluation of the management approach 68-69

102-55 GRI content index 79 GRI 302: Energy 2016 302-1 Energy consumption 68

102-56 External assurance 79 302-3 Energy intensity 69

SPECIFIC TOPIC DISCLOSURE 302-4 Reduction of energy consumption 69

ECONOMIC IMPACTS Emissions Sustainability Commitment of XL Axiata

Economic Performance GRI 103: Management Approach 103-1 Explanation of the material topic and its 81 2016 Boundary GRI 103: Management Approach 103-1 Explanation of the material topic and its 81 2016 Boundary 103-2 The management approach and its components 70

103-2 The management approach and its components 29, 56 103-3 Evaluation of the management approach 70

103-3 Evaluation of the management approach 29, 56 GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG emissions 70

GRI 201: Economic Performance 201-1 Direct economic value generated and distributed 29 305-2 Indirect (Scope 2) GHG emissions 70 2016 201-3 Defined benefit plan obligations and other 56 305-4 GHG Emissions Intensity 70 retirement plans 305-5 Reduction of GHG emissions 70 Indirect economic impacts Social Impact GRI 103: Management Approach 103-1 Explanation of the material topic and its 81 2016 Boundary Employment

103-2 The management approach and its components 31-37 GRI 103: Management Approach 103-1 Explanation of the material topic and its 81 Responsible Business 2016 Boundary 103-3 Evaluation of the management approach 31-37 103-2 The management approach and its components 50-55 GRI 203: Indirect economic 203-1 Infrastructure investments and services 33, 37 impacts 2016 supported 103-3 Evaluation of the management approach 50-55

203-2 Significant indirect economic impacts 32 GRI 401: Employment 2016 401-1 Average hours of training per year per employee 50

Procurement Practices 401-2 Programs for upgrading employee skills and 55 transition assistance programs GRI 103: Management Approach 103-1 Explanation of the material topic and its 81 2016 Boundary Occupational Health and Safety

103-2 The management approach and its components 30 GRI 103: Management Approach 103-1 Explanation of the material topic and its 81 2016 Boundary 103-3 Evaluation of the management approach 30 103-2 The management approach and its components 56 GRI 204: Procurement Practices 204-1 Proportion of spending on local suppliers 30 2016 103-3 Evaluation of the management approach 56 About The Report Anti-Corruption GRI 403: Occupational Health 403-1 Workers Representation in Formal Joint 56 and Safety2016 Management–Worker Health and Safety GRI 103: Management Approach 103-1 Explanation of the material topic and its 81 Committees 2016 Boundary Training and Education 103-2 The management approach and its components 63-64 GRI 103: Management Approach 103-1 Explanation of the material topic and its 81 103-3 Evaluation of the management approach 63-64 2016 Boundary

GRI 205: Anti-Corruption 2016 205-2 Communication and training about anti- 63 103-2 The management approach and its components 52-55 corruption policies and procedures 103-3 Evaluation of the management approach 52-55 205-3 Confirmed incidents of corruption and actions 64 taken

86 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 87 Linking the SDG’s and GRI Standards ReportCeo

GRI Standards Disclosure Page SDG’s Business Relevansi GRI Disclosure Disclosure Title Page Theme Standard No Indicator 1. NO POVERTY Income, salary, GRI 201: Economic 201-1 Direct economic 29 GRI 404: Training and Education 404-1 Average hours of training per year per employee 53 and benefits Performance value generated and 2016 distributed 404-2 Programs for upgrading employee skills and 52 Achievements of XL Axiata transition assistance programs Economic GRI 203: Indirect 203-1 Infrastructure 33, 37 development economic impacts investments and 404-3 Percentage of Employees Receiving Regular 55 in areas of high services supported Performance and Career Development Reviews End poverty in all its poverty forms everywhere. Diversity and Equal Opportunity

GRI 103: Management Approach 103-1 Explanation of the material topic and its 81 2016 Boundary 2. ZERO HUNGER Economic GRI 201: Economic 201-1 Direct economic 29 Performance Performance value generated and 103-2 The management approach and its components 48-55 distributed 103-3 Evaluation of the management approach 48-55 Economic GRI 203: Indirect 203-1 Infrastructure 33, 37 GRI 405: Diversity and Equal 405-1 Diversity of governance bodies and employees 48 Sustainability Commitment of XL Axiata Opportunity 2016 development economic impacts investments and 405-2 Ratio of basic salary and remuneration of 55 End hunger, achieve in areas of high services supported women to men food security and poverty improved nutrition and Non-Discrimination promote sustainable agriculture. GRI 103: Management Approach 103-1 Explanation of the material topic and its 81 2016 Boundary

103-2 The management approach and its components 51 3 GOOD HEALTH AND Air quality GRI 305: Emissions 305-1 Direct (Scope 1) GRK 70 WELL BEING emissions 103-3 Evaluation of the management approach 51 305-2 Indirect (Scope 2) GRK 70 GRI 406: Non-Discrimination 406-1 Incidents of discrimination and corrective 51 emissions 2016 actions taken 305-4 GRK Emissions 70 Local Communities Intensity Ensure healthy lives and GRI 103: Management Approach 103-1 Explanation of the material topic and its 81 promote wellbeing 305-5 Reduction of GRK 70 2016 Boundary for all at all ages. emissions Responsible Business

103-2 The management approach and its components 33 Occupational GRI 403: Occupational 403-1 Workers 56 Health and Health and Safety Representation 103-3 Evaluation of the management approach 33 Safety in Formal Joint Management–Worker GRI 413: Local Communities 413-1 Operations with local community engagement, 33 Health and Safety 2016 impact assessments, and development programs Committees

Marketing and Labeling Customer GRI 417: Marketing 417-3 Incidents of 77 Safety and Labeling non-compliance GRI 103: Management Approach 103-1 Explanation of the material topic and its 81 concerning marketing 2016 Boundary communications 103-2 The management approach and its components 77

103-3 Evaluation of the management approach 77

GRI 417: Marketing and Labeling 417-3 Incidents of non-compliance concerning 77 2016 marketing communications About The Report Customer Privacy

GRI 103: Management Approach 103-1 Explanation of the material topic and its 81 2016 Boundary

103-2 The management approach and its components 77

103-3 Evaluation of the management approach 77

GRI 418: Customer Privacy 2016 418-1 Substantiated complaints concerning breaches 77 of customer privacy and losses of customer data

88 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 89 ReportCeo

SDG’s Business Relevansi GRI Disclosure Disclosure Title Page SDG’s Business Relevansi GRI Disclosure Disclosure Title Page Theme Standard Theme Standard

4 QUALITY EDUCATION Training and GRI 404: Training and 404-1 Average hours of 53 8 DECENT WORK AND Freedom of GRI 102: Disclosure 102-41 collective bargaining 56 Education Education training per year per ECONOMIC GROWTH association umum agreements employee Income, salary GRI 201: Economic 201-3 Defined Benefit Plan 56 and benefits Achievements of XL Axiata 404-2 Programs for 52 Performance Obligations and Other upgrading employee Retirement Plans skills and transition Ensure inclusive and assistance programs GRI 401: Employment 401-1 New Employee 50 quality education for all Support sustainable Hires and Employee and promote lifelong 404-3 Percentage of 55 economic development, Turnover learning. Employees Receiving productive employment Regular Performance and decent work for 401-2 Benefits Provided to 55 and Career everyone. Full-Time Employees Development Reviews That are Not Provided to Temporary or Part- Time Employees

5 GENDER EQUALITY Equal GRI 405: Diversity and 405-1 Average hours of 48 Equality GRI 405: Diversity and 405-1 Diversity of 48 remuneration Equal Opportunity. training per year per Equal Opportunity governance bodies Sustainability Commitment of XL Axiata for women and employee and employees men 405-2 Programs for 55 405-2 Ratio of basic salary 55 upgrading employee and remuneration of skills and transition women to men Achieve gender assistance programs equality and empower GRI 406: Non- 406-1 Incidents of 51 all women and girls. Discrimination discrimination and corrective actions taken

6 CLEAN WATER AND Employment GRI 401: Employment 401-1 Average hours of 50 SANITATION training per year per employee

401-2 Programs for 55 upgrading employee skills and transition

assistance programs Responsible Business

Occupational GRI 403: Occupational 403-1 Workers 56 Health and Health and Safety Representation 7 AFFORDABLE AND Energy GRI 302: Energy 302-1 Energy consumption 68 Safety in Formal Joint CLEAN ENERGY Efficiency Management–Worker 302-3 Energy intensity 69 Health and Safety Committees 302-4 Reduction of energy 69 consumption Training and GRI 404: Training and 404-1 Average hours of 53 Education Education training per year per employee Ensure access to affordable, reliable, 404-2 Programs for 52 sustainable and upgrading employee modern energy for all. skills and transition assistance programs

404-3 Percentage of 55

Employees Receiving About The Report Regular Performance and Career Development Reviews

GRI 205: Anti- 205-2 Communication and 63 Corruption training about anti- corruption policies and procedures

205-3 Confirmed incidents of 64 corruption and actions taken

90 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 91 ReportCeo

SDG’s Business Relevansi GRI Disclosure Disclosure Title Page SDG’s Business Relevansi GRI Disclosure Disclosure Title Page Theme Standard Theme Standard

9 INDUSTRY, INNOVATION Economic GRI 203: Indirect 203-1 Infrastructure 33, 37 13 CLIMATE ACTION Air quality GRI 305: emissions 305-1 Direct (Scope 1) GRK 70 AND INFRASTRUCTURE development in economic impacts investments and emissions areas services supported 305-2 Indirect (Scope 2) GRK 70

of high poverty Achievements of XL Axiata emissions

305-4 GRK Emissions 70 Take urgent action to Intensity Build resilient combat climate change infrastructure, and its impacts. 305-5 Reduction of GRK 70 promote sustainable emissions industrialization and Energy GRI 302: Energy 301-1 Energy consumption 68 foster innovation. Efficiency 302-3 Energy intensity 69

302-4 Reduction of energy 69 10. REDUCED Economic GRI 203: Indirect 203-1 Infrastructure 33, 37 consumption INEQUALITIES development in economic impacts investments and Sustainability Commitment of XL Axiata areas of high services supported 14. LIFE BELLOW WATER poverty 203-2 Indirect economic 32 impacts

Reduce inequality within and among countries. 15. LIFE ON LAND Air quality GRI 305: emissions 305-1 Direct (Scope 1) GRK 70 11 SUSTAINABLE CITIES Infrastructure GRI 203: Indirect 203-1 Infrastructure 33, 37 emissions AND COMMUNITIES investments economic impacts investments and services supported 305-2 Indirect (Scope 2) GRK 70 emissions 203-2 Significant Indirect 32 Economic Impacts 305-4 GRK Emissions 70 Protect, restore and Intensity promote sustainable Make cities inclusive, use of terrestrial 305-5 Reduction of GRK 70 safe, resilient and ecosystems, sustainably emissions sustainable. manage forests, combat Responsible Business desertification, and halt and reverse land degradation and halt 12 RESPONSIBLE Air quality GRI 305: emissions 305-1 Direct (Scope 1) GRK 70 biodiversity loss. CONSUMPTION AND emissions PRODUCTION 305-2 Indirect (Scope 2) GRK 70 emissions

305-4 GRK Emissions 70 Intensity

Ensure sustainable 305-5 Reduction of GRK 70 consumption and emissions production patterns. Information GRI 417: 417-3 Incidents of 77 and Labeling of Marketing and non-compliance products and Labeling concerning marketing services communications About The Report

92 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK CONTINUE GROWTH IN THE DIGITAL ERA 93 SDG’s Business Relevansi GRI Disclosure Disclosure Title Page Theme Standard

16. PEACE, JUSTICE AND Anti-Corruption GRI 205: Anti- 205-2 Communication and 63 STRONG INSTITUTIONS Corruption training about anti- corruption policies and procedures

205-3 Confirmed incidents of 64 corruption and actions taken Promote peaceful and inclusive communities Ethical GRI 102: General 102-16 Values, pronciples, 62 for sustainable and Legal Disclosure standards, and Norms development, Behaviour of Behaviors provide access to justice for all, and build Inclusive GRI 102: General 102-18 Governance Structure 60 effective, accountable Decision Disclosure 102-40 list of stakeholder 81,82,83 and inclusive institutions Making groups at all levels. 102-41 collective bargaining 56 agreements

102-42 Identifying and 81,82,83 Selecting Stakeholders

102-43 approach to 81,82,83 stakeholder engagement

102-44 Key Topics and 79,81, 82,83 Concerns Raised

17. PARTNERSHIP FOR External GRI 102: General 102-12 External Initiative 19 THE GOALS Initiative Disclosure

Strengthen the means of implementation and revitalize the global partnership for sustainable development.

94 SUSTAINABILTY REPORT 2019 PT XL AXIATA TBK