Governance

📢 Whistleblowing System

Pupuk Kaltim implements a Whistleblowing System (WBS) based on ISO 37002:2021 as a transparent, secure, and accessible means for all stakeholders to report violations. This system is designed to foster a culture of integrity by ensuring confidentiality and protection for whistleblowers, and by ensuring that every report is followed up objectively and professionally.

Through the implementation of an effective WBS, Pupuk Kaltim strengthens its commitment to anti-corruption, anti-fraud, and the application of GCG in accordance with applicable standards.

Pupuk Kaltim has synergized with PT Pupuk Indonesia (Persero) in providing the Integrated Whistleblowing System platform for Pupuk Indonesia Group. Every individual can anonymously report various violations occurring within Pupuk Kaltim and Pupuk Indonesia Group.

📊 Reporting on Code of Ethics Violations

🌱 Development of Ethical and Anti-Corruption Culture

Pupuk Kaltim consistently builds and strengthens a culture of ethics and anti-corruption as part of its commitment to integrity and Good Corporate Governance for all Pupuk Kaltim personnel and stakeholders. Through the implementation of a code of ethics, regular training, socialization of integrity values, and a secure and anonymous violation reporting system, the company encourages the creation of a clean and transparent work environment.

🤝 Implementation of ESG in Procurement Process

Pupuk Kaltim integrates ESG principles from the upstream of the procurement process, ensuring that sustainability values flow downstream to operations and are felt by customers. Every decision in supplier selection and management considers quality, cost, and timeliness alongside business ethics, respect for human rights, fair labor practices, occupational health and safety, and environmental protection.

Through the Supplier Code of Ethics Guidelines, due diligence, and risk-based assessment, Pupuk Kaltim builds accountable partnerships and encourages continuous improvement. We accompany these efforts with supplier and MSME capacity development and the provision of secure reporting channels. With this approach, Pupuk Kaltim minimizes risks, improves service quality, and contributes to Scope 3 emissions management—creating long-term value for all stakeholders.

🤝 Vendor Gathering 2024

PKT held the Vendor Gathering 2024 with the theme "Grow Together Towards a Synergistic Partnership" on August 29, 2024, in Balikpapan in a hybrid format, attended by 134 offline participants and 233 online participants (total 367 participants). One of the main sessions reviewed "How is CSMS (Contractor Safety Management System) Implemented at Pupuk Kaltim?" which guided participants to understand the introduction of CSMS, the importance of compliance with OHS regulations, the role of Standard Operating Procedures (SOP) as an implementation reference, the design of OHS programs that must be prepared within the CSMS framework, and the urgency of OHS coordination meetings to ensure consistent implementation in the field.

This session also explained the framework and weighting of assessments in CSMS documents, so that supplier partners gain clarity on fulfillment stages, expected evidence, and evaluation standards. Through this forum, PKT aligns work safety expectations with suppliers while strengthening the integration of ESG aspects in the procurement process, especially dimensions S (safety & fair labor practices) and G (compliance & accountability), to foster synergistic, transparent, and sustainable partnerships.

🌱 Vendor Gathering 2025

Through this alignment, PKT and suppliers build more accountable, transparent partnerships ready for continuous improvement, ensuring that daily procurement decisions are increasingly aligned with the company's ESG targets and create long-term value for all stakeholders.

� ESG-Based Supplier Screening

Pupuk Kaltim screens significant suppliers through the PKT Supplier Code of Ethics, which integrates Environmental, Social, and Governance (ESG) aspects as a prerequisite for cooperation. Suppliers must comply with company regulations and policies and maintain business integrity (G); respect human rights—including the prohibition of forced labor and child labor, anti-discrimination, fair wage and labor practices, occupational health and safety, and environmental protection (S); and demonstrate adequate environmental management, complete permits, pollution prevention, and documented hazardous substance management (E).

To strengthen the ESG pillars, PKT also requires suppliers to sign an Integrity Pact which includes: a commitment to anti-KKN, anti-fraud, and conflict of interest management; labor compliance prohibiting forced/illegal labor and underage workers and ensuring reasonable working hours, wages, workload, and benefits; proactive measures to control OHS risks in accordance with regulations; prohibition of discrimination and support for workers' rights; environmental compliance including waste minimization and resource efficiency; and operational efficiency efforts to reduce greenhouse gas emissions and energy consumption.

With the combination of the Supplier Code of Ethics + Integrity Pact and a risk-based due diligence mechanism, PKT ensures that suppliers operate ethically, legally compliant, safely, and with social-environmental responsibility.

📋 Related Documents

Download official documents related to PKT's supplier code of ethics and integrity pact for reference and guidance on sustainable partnerships.

📊 Supplier Performance Review

In the Supplier Screening & Performance Review process, PKT implements a Corrective Action Plan (CAPA) as a quality tool to close compliance and supplier performance gaps. In line with partner performance assessment, PKT provides coaching opportunities for suppliers in the Good, Fair, and Poor categories. Coaching is conducted through a structured form that guides suppliers: describing findings, analyzing root causes, setting improvement targets (OHS/environmental/compliance/operational), developing phased action plans, and attaching implementation evidence.

The PKT team assesses the feasibility of plans, agrees on deadlines, and conducts regular monitoring until closure is achieved. Each business partner not only meets operational needs but also contributes to the Pupuk Indonesia Group's ESG targets, including reducing Scope 3 emissions and improving ethical business practices.

📋Independence Statement

As of October 16, 2025, Pupuk Kaltim's Board of Commissioners consists of 6 members and the Board of Directors consists of 5 members. A total of 4 members of the Board of Commissioners are Independent Commissioners based on the Extraordinary GMS Decision according to Pupuk Kaltim's Independent Commissioner qualification definition, and 6 members of the Board of Commissioners meet the independence qualifications according to S&P Global CSA criteria.

🏛️Board of Commissioners' Committees

In carrying out its duties, the Board of Commissioners has supporting organs, including the Audit Committee, Good Corporate Governance, Human Resources, Nomination-Remuneration, and Investment Committee (KGSRI), Risk Monitoring Committee (KPR), and Corporate Governance Committee (KTKT). The term of office for Committee members is set for 3 years and can be extended once for a 2-year term.

⚖️ Ethics and Compliance

Pupuk Kaltim is committed to conducting business ethically, transparently, and responsibly in accordance with applicable laws and regulations. We apply GCG principles as the foundation for every decision-making process and operational activity of the company.

Through the implementation of a code of ethics and conduct guidelines, all Pupuk Kaltim personnel are encouraged to uphold integrity, professionalism, and avoid all forms of violations and conflicts of interest.

In addition, the company strengthens its compliance culture with a whistleblowing system mechanism, compliance training, and strict supervision to ensure all business activities comply with high legal and ethical standards.

With this commitment, Pupuk Kaltim strives to maintain stakeholder trust and create a clean, integrated, and sustainable work environment.

🌐 UN Global Compact Membership

As a member of the UN Global Compact, Pupuk Kaltim is committed to integrating the 10 UNGC Principles into its business strategy and operations. This commitment includes respect for human rights, labor standards, environmental protection, and the eradication of corruption in all its forms.

Through this membership, Pupuk Kaltim strengthens its active role in promoting sustainable and responsible business practices, and contributes to achieving the Sustainable Development Goals (SDGs).

📋 Code of Conduct

Pupuk Kaltim is committed to conducting business with integrity, professionalism, and responsibility through the implementation of the Company's Code of Ethics as a guide for the conduct of all company personnel. This code of ethics serves as a foundation for interacting with fellow employees, customers, business partners, shareholders, and the wider community.

As a form of this commitment, all Pupuk Kaltim personnel, including members of the Board of Commissioners, Directors, members of the Board of Commissioners' Supporting Committees, and every individual employee (organic and non-organic) of Pupuk Kaltim, are required to sign the Integrity and Compliance Charter annually as a statement of compliance with the Company's Code of Ethics. The signing has been done using a web-based electronic system accessible at epi.pupukkaltim.com.

In addition, the signing of the integrity pact is also carried out by external parties related to the Company's business, such as vendors, interns, fostered partners, distributors, and the implementation of corporate actions.

The implementation of the code of ethics includes compliance with laws and regulations, rejection of corruption, bribery and gratuity practices, whistleblowing system, management of conflicts of interest, anti-fraud, anti-discrimination, anti-monopoly and anti-unfair business competition practices, money-laundering, insider trading, occupational safety and health and environmental preservation, as well as maintaining information confidentiality and company reputation.

Through this commitment, Pupuk Kaltim builds a clean and transparent work culture, and strengthens the trust of all stakeholders in the company.

📊 Compliance

Pupuk Kaltim is committed to building a strong compliance culture through the implementation of ISO 37301:2021 – Compliance Management System. This standard ensures that all business processes comply with laws, internal policies, and international standards. With a structured compliance system, Pupuk Kaltim strengthens transparent and integrated corporate governance.

Through the implementation of this system, Pupuk Kaltim strengthens its culture of integrity and transparency, and ensures the realization of clean and sustainable corporate governance.

🤝 Vendor Gathering 2024

PKT held the Vendor Gathering 2024 with the theme "Grow Together Towards a Synergistic Partnership" on August 29, 2024, in Balikpapan in a hybrid format, attended by 134 offline participants and 233 online participants (total 367 participants). One of the main sessions reviewed "How is CSMS (Contractor Safety Management System) Implemented at Pupuk Kaltim?" which guided participants to understand the introduction of CSMS, the importance of compliance with OHS regulations, the role of Standard Operating Procedures (SOP) as an implementation reference, the design of OHS programs that must be prepared within the CSMS framework, and the urgency of OHS coordination meetings to ensure consistent implementation in the field.

This session also explained the framework and weighting of assessments in CSMS documents, so that supplier partners gain clarity on fulfillment stages, expected evidence, and evaluation standards. Through this forum, PKT aligns work safety expectations with suppliers while strengthening the integration of ESG aspects in the procurement process, especially dimensions S (safety & fair labor practices) and G (compliance & accountability), to foster synergistic, transparent, and sustainable partnerships.

🌱 Vendor Gathering 2025

As a continuation of PKT's commitment to ESG implementation within third-party scope, PKT once again held the Vendor Gathering 2025 with the theme "Together for Sustainability, Equity, and Integrity" on September 30, 2025, in Balikpapan in a hybrid format (attended by 175 offline company participants and 100 online participants). This forum aims to align sustainability expectations between PKT and supplier partners while emphasizing the implementation of Sustainable Procurement, where environmental, social (including OHS & Human Rights), and governance aspects are considered equally with quality, cost, and timeliness in the procurement process.

The core material of the activity discussed supplier sustainability criteria, supplier code of ethics (business integrity, anti-bribery/corruption, regulatory compliance), and the assessment - monitoring - improvement flow: from risk assessment and due diligence, integration of ESG clauses in tender/contract documents, to periodic audit mechanisms and corrective action plans (CAPA). Participants also received practical guidance related to strengthening traceability, incident reporting, and measuring supplier contributions to ESG targets (including aspects relevant to Scope 3 emissions).

Through this alignment, PKT and suppliers build more accountable, transparent partnerships ready for continuous improvement, ensuring that daily procurement decisions are increasingly aligned with the company's ESG targets and create long-term value for all stakeholders.