Sustainability Report 2021 - PT Vale Indonesia

Sustainability Report 2021 - PT Vale Indonesia

Petani saat panen padi organik .


Embracing Our New Purpose

Awareness of taking care of our earth is the responsibility of all of us. We are aware of this and continues to improve our energy efficiency and reducing emissions in all its activities to reach our goal, towards net zero emission. We plan, set targets and goals, as part of our efforts to keep our earth sustainable. "Embracing Our New Purpose" will explain how we have moved towards realizing our goals, how we continue to inspire others by what we have been doing, both for now and for the future.

Gemba atau kunjungan pimpinan PT Vale ke lokasi SRI Organik

Message from our CEO

2021 marked a beginning of a new era for PT Vale Indonesia, an era of growing our business driven by our new Purpose — We exist to improve life and transform the future. Together.

The global decarbonization is creating significant projected increase in demand of nickel, one of the essential minerals required for the transition to cleaner energy options. As nickel is part of the solution to climate change issues, we believe it is important to ensure that our nickel is mined and processed through sustainable processes, particularly low carbon. We are committed to reduce absolute GHG emissions by 33% in 2030, and towards net zero emission in 2050.

Febriany Eddy
CEO and President Director

Portrait of Febriany Eddy

The Company at A Glance

Established in July 25, 1968, over half a century of operations in Indonesia.

PT Vale Indonesia Tbk grew to become one of the leading mineral mining companies, with a longterm commitment to positively contributing to Indonesia's sustainable development. Our operating areas are in Sulawesi, Indonesia.

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Our purpose

We exist to improve life and transform the future. Together.

Mining is essential for the development of the world. Therefore, we seek to serve what society needs and wants, with raw materials and other resources to improve life, taking care of the planet and generating prosperity for all.

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About Our Report

Our report was prepared with reference to Global Reporting Initiative (GRI) 2021 standards, with conformity: 'reference to the GRI Standards', Sustainability Reporting, Guidelines & Mining and Metals Sector Supplement (MMSS) GRI-4, 2007 Law No. 40, and OJK Regulation (POJK) No.51/POJK.03/2017. The report and its annexes also include indicators from the Sustainability Accounting Standard Board (SASB) and the Task Force on Climate-Related Financial Disclosures (TCFD).

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Material Topics

The process for determining material topics for internal stakeholders is different this year than in previous years. This year, the material topics were determined using various methods that involved internal and external stakeholders. The discussions resulted in ten material topics based on sustainability and aligned with efforts to achieve the Sustainable Development Goals (SDGs). There is an additional material topic ‘Equality and Diversity’ in the 2021 report.

Material Topics Matrix

Download Our Sustainability Report 2021 in PDF format

Unduh Laporan Keberlanjutan 2021 dalam format PDF

Sustainability Development Policy and Strategy

We carry out strategic priorities as a form of our commitment to maintaining sustainability in every activity we undertake. From the main sustainability strategy priorities until 2025, PT Vale has established sustainability strategies for 2022, as we did in 2021. These strategies focus on our commitments to reduce climate change; energy and water efficiency; conserving forests; and increasing social contribution; as a transitional step to Net Zero Emission mining.

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Transforming the future
by taking care of the present.

Environmental Sustainability Management Performance

PT Vale is committed to continuing to protect the environment through PTVI's Environment Health Safety and Sustainability (EHSS) Policy document, which discusses the Company's compliance with the environment that has been approved by the CEO and COO, as well as a specific PROPER Policy in every environmental aspect, such as energy efficiency, emission reduction, waste management, water efficiency and reducing the burden of pollution and conserving biodiversity.

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Towards Net Zero Carbon Emissions

Mining activities can have an unavoidable negative impact on the environment. However, we continue to strive to manage these impacts so the environmental pollution does not occur. Environmental management is confirmed to reduce by various policies, targets, and initiatives. We have set short term targets for energy efficiency solutions and for maximizing renewable energy usage; while the medium-term target for 2030 is a 33% reduction in absolute scope 1 and scope 2 emissions. The long-term target is to achieve net zero emissions by 2050.

Roadmap Towards Net Zero Emission 2050

28.6 tons

CO2eq/ton Ni GHG emission intensity


The GHG emission intensity in 2021 was 28.6 tons CO2eq/ton Ni, an increase of 2% from 27.91 tons CO2eq/ton Ni in 2020. This was due to a decrease in the total nickel in matte production and the consumption of lower nickel content ore when compared to 2020.


tons CO2eq reduced GHG


Overall in 2021, we succeeded in reducing GHG emissions by 147,705 tons CO2eq, or by 7% of GHG emissions in 2020 by, or up to 7.7% of the 2017 GHG emission baseline of 155,948 tons CO2eq.


SO2 Intensity (Ton SO2/Ton Ni)


The results of the calculation of SO2 emission levels always meet the quality standard threshold of 0.80 Ton SO2/Ton Ni. However, We committed to reducing SO2 emissions by continuing to conduct studies involving experts from academia and practitioners.

Energy Management and Low Carbon Economy Support

In 2021 we will replace the transformer (transformer) at the Larona LGS#1 hydroelectric power plant to save more energy which is the responsibility of the Department of Energy and Logistics and the authorities. We also manage energy use optimally and efficiently Energy Efficiency Policy 2021 of PT Vale by involving stakeholder's interests, including employees, contractors, and partner companies.

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Vale Power Shift

To support the transition to a future low-carbon economy, PT Vale follows the Vale Global internal program: Vale Power Shift. This program aims to improve PT Vale's energy matrix by focusing on the use of renewable energy and alternative fuels, as well as efficiencies by using new technologies. Initiatives related to Vale Power Shift are expected to contribute around 5% of the planned reduction by 2030. The Debottlenecking project was implemented in 2021 and is targeted for completion in 2024.

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Energy Usage and Efficiency

Total energy usage in 2021 was 24,633,246 GJ, down 10% from 28,004,485 GJ in 2020. The largest energy source is from coal usage of 9,340,201 GJ, a decrease of 22% from 11,371,381 GJ in 2020. PT Vale also used 24,633,246 GJ of renewable energy sourced from hydroelectric power or 32.2% and the remaining 67.8 came from non-renewable energy.

Post Mining Rehabilitation

Any negative impact from the mining processes is managed through the post-mining plans. In line with Vale Global's commitment, we are trying to rehabilitate postmining and cross-border land in other areas, especially on critical land, and PT Vale continues to carry out postmining rehabilitation and has planted more trees from its 2.5 ha nursery in Sorowako.


total trees planted


10,761 local tree type — 22,206 endemic tree type


hectares land rehabilitated


Post-mining rehabilitation land in 2021 reached 283.74 ha, 1.3% more than planned, resulting in a cumulative total of 3,249.11 ha.

90 Ha

Rehabilitated DAS


In 2021 we handed over 90 Ha of rehabilitated critical land and watersheds (DAS) to the Ministry of Environment and Forestry to fulfill our obligations as an IPPKH holder. The land handed over was in a protected forest area in Kawata Village and Ledu-Ledu Village, Wasuponda Subdistrict, East Luwu Regency.


tembeuwa seedlings


PT Vale together with the Government and the communities planted 1,000 tembeuwa seedlings in Muara Tapolemo, on the shores of Lake Matano, East Luwu Regency, to rehabilitate and maintain the lake ecosystem, especially on the shoreline. Tembeuwa (Kjellbergiodendron celebicum) is a type of vegetation often found on the shores of Lake Matano, and is endemic to Sulawesi.


Effluent Quality

The inspection results in 2020 showed that the quality of the processed effluent has met the quality standards. The analysis was carried out by an accredited independent laboratory, using the SNI 6989.59:2008 Water and Wastewater method and the American Public Health Association (APHA) standard method.

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Using our mobility to do something extraordinary.

Social Sustainability Management Performance

Employees and the community are part of our family. Together we build and live side by side to grow, empower, and maintain health, safety, and environmental sustainability.

Security, Safety, and Health in the Workplace

PT Vale's mining activities are strictly managed by following the Mineral and Coal Mining Safety System (SMKP Minerba). Our commitment is to have zero fatal work accidents and minimize occupational diseases (PAK). During 2021 there were zero fatal work accidents and 5,006,592 safe working hours.


OSH training sessions


We Company organized and included employees and contractor workers in OHS training. There were 64 OHS training sessions attended by 37,248 participants. Some of the OHS training involves certification to improve employees' competencies


SMKP compliance level


Minerba SMKP audit in 2021 was performed internally by PTVI's registered SMKP certified auditor. The audit results show a compliance level of 75.18%.


Recordable Injury Frequency Rate


In 2021, the average rate of accidents resulting in injury was 0.20%, while for near-miss incidents, there were 77 incidents consisting of 70 PT Vale and 7 contractors/suppliers. The OHS Severity Rate and Frequency Rate performance calculation is calculated per 1,000,000 working hours. The calculation does not include exceptions, and only includes PT Vale employees and contractors.


award for HIV/AIDS and COVID-19


We received a Gold Award from the Ministry of Manpower for HIV/AIDS Prevention and Control Program (P2 HIV/AIDS) and COVID-19 Response (P2 COVID-19), for organizing non-PAK health promotion activities on HIV/AIDS prevention and the COVID-19 pandemic for employees and contractor/supplier workers.

Diversity and Equal Opportunities

We respect human rights by implementing a commitment to gender equity. Diversity is fundamental for PT Vale as it builds a transparent and respectful work environment.

We has a policy about human rights contained in the Code of Conduct (CoC) and refers to the UN Human Rights Guiding Principles on Business and Human Rights. Every year all employees of PT Vale attended the human rights policy training.


local employees


By the end of 2021, there are 2,570 local employees (86.6% of PT Vale's total employees), 51.8% of whom are senior staff. Apart from this, the majority of contractor/supplier employees are also local residents.


female employees


Until the end of 2021, there are 256 female employees (8.63% of the total employees) and 3 employees with disabilities.


hours of training


During 2021 we held employee competency development training activities, with a total of 121,781 training hours. Thus, the average training hours per employee in the reporting period was 41 hours per person.

Empowered and Prosperous Communities

We has provided benefits to the local communities. During the reporting period we continued the Community Empowerment and Development Program (PPM) in accordance with PT Vale's 2018-2030 PPM Master Plan, as a form of corporate social responsibility (CSR) and allocated US$29,241,288.

US$2,6 million

total Funds for Integrated Community Empowerment and Development Program (PPM).


individuals, estimated number of beneficiaries in 38 villages.

Social Impact Assessment

Our social impact assessment involves stakeholders in all operation areas. The social impact assessment results show the community needs, maps vulnerable stakeholder groups, collaboration opportunities with local governments, and the complaint channels.

We manage the social impact through the PPM and Self Reliance Rural Area Development (PKPM) programs. Other social investments involve strategic partnerships and contributions that are adjusted based on the stakeholder mapping, as well as the East Luwu Regency Government development plan. Stakeholder mapping covers the Sorowako, Bahodopi, and Pomalaa areas.

Negative Impact Management in 2021

Management of Social Impact on Vulnerable Groups

One of our priorities for managing social impacts is our understanding that local community groups belong to vulnerable groups. During 2021 we continued our existing agreements with local communities, in accordance with PPM program directives and policies. Our cooperation continued through the Sustainable Environmental Friendly Healthy Agriculture and Fisheries Development Program (P3SRLB Program) in the form of infrastructure development and support for the P3SRLB infrastructure. P3SRLB activities carried out during 2021 included:

  • Constructing a Meeting Hall in Tabarano
  • Cultivating Organic Vegetable in Dongi
  • Creating Organic Vegetable Demonstration plots for the Padoe Group
  • Creating Organic Rice & Vegetables Demonstration plots for the Karunsie Group
  • Optimizing the Compost House for the Taipa Group

Dongi Resettlement, Wasuponda

As a form of the Company's concern for the local communities in the residential areas of Dongi in Wasuponda, PT Vale also carried out its infrastructure development and the P3SRLB Program throughout 2021.

For infrastructure development, PT Vale renovated residents' houses, constructed drainage and repaired roads. For the socio-economic sector, the Company provided assistance and technical capacity development for P3SRLB cultivation for groups in the Dongi area.

Building Synergy with the Government

PT Vale with the Ministry of Village, Development of Disadvantaged Regions, and Transmigration (PDTT), and the South Sulawesi Provincial Government st Luwu Regency Government signed a Memorandum of Understanding (MoU) and Collective Labor Agreement (CLA), covering the PPM program and the Self Reliance Rural Area Development Program (PKPM). This signing was carried out to synergize the programs and activities for realizing the welfare of the community in the PT Vale empowerment area.

Building Rural Areas Together

During the reporting period, the Company continued the 2018-2022 RI-PPM in four sub-districts in East Luwu Regency, namely Nuha, Malili, Wasuponda, and Towuti sub-districts. The support from PT Vale in 2021 included program financing in the Sorowako Block amounting to US$2,798,091. The program expenditure included:

  • Education - US$57,123
  • Healthcare - US$836,604
  • Real Income Level - US$690,304
  • Economic Independence - US$530,387
  • Socio-Cultural - US$135,457
  • Social Environment (Community Participation) -US$76,939
  • Community Community Institutions - US$471,278

Infrastructure Development to Support PPM

The PPM program also includes support for the development of supporting infrastructure for the PPM program. In 2021, the PPM supporting infrastructure costs in the Sorowako Block covering the Nuha, Wasuponda, Towuti, and Malili sub-districts was US$1,569,563, or 32% of the total cost of US$4,892,895.

The supporting infrastructure included:
  • Developing the infrastructure to support social and economic activities for people living in Dongi Village, Ledu-Ledu Village, Wasuponda sub-districts.
  • Providing electricity and lighting facilities and infrastructure for public facilities for the Nuha subdistricts area community, and pumps to supply water to the Towuti District area for use in communities in 8 villages in Asuli, Wawondula, Langkea Raya, Baruga, Lioka, Matompi, Timampu, and Pekaloa
  • Providing and improving public facilities such as futsal sports facilities in Balantang Village, a Multipurpose Building (GSS), repairs to floodgates for irrigating rice fields in Laskap Village, and other public facilities.
  • In 2021, PT Vale also carried out repairs to the clean water pipe network, and managed the distribution of clean water and provided water tank services in 8 villages in the Towuti sub-district.
  • Renovating and passing over ownership of Puskesmas buildings in Bahomatefe Village, Bungku Timur sub-districts through the signing of a Regional Grant Agreement (NPHD) with the Morowali Regency Government.
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Governance Sustainability Management Performance

Good governance implementation forms the basis for all of our operational and community activities to create more valuable sustainability, and increase the trust of all stakeholders.

Photo of several seedlings of plants on the ground.

Governance Sustainability

Board of Commissioners, Board of Directors, Company officials, employees and related parties are required to act responsibly, honestly, confidently, respectfully and loyally, as well as comply with applicable legal obligations. There is no relationship between members of the Board of Directors and the Board of Commissioners and internally between the respective Directors, which may cause a conflict of interest. None of the Shareholders has a direct or indirect relationship with the Company's suppliers or supply chain. And there is no indication of a conflict of interest in any decisions made by PT Vale.

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Governance Structure

There is no relationship between members of the Board of Directors and the Board of Commissioners and internally between the respective Directors, which may cause a conflict of interest. None of the Shareholders has a direct or indirect relationship with the Company's suppliers or supply chain. And there is no indication of a conflict of interest in any decisions made by PT Vale.

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Delegation of Authority

Until the end of the reporting period, responsibility and decision-making for sustainability management are still the collective responsibility of the entire Board of Directors under the coordination of the President Director as Chief Executive Officer (CEO) and supervision of the Board of Commissioners. Commissioner.
Each member of the Board of Directors can delegate their sustainable governance responsibilities to Company officials reporting to them, based on the area of duty under their responsibility.

Anti-Corruption Support

PT Vale conducts anti-corruption socialization and training to employees, the public and other stakeholders. This includes periodically holding refresher training for the Board of Directors on compliance with the Code of Ethics to ensure they always act with integrity and transparency and listen actively.

During the reporting period, PT Vale approved 421 of the 456 applications submitted for gifts and hospitality. PT Vale did not receive complaints of anti-corruption violations during the reporting period, either by employees or business partners.

Code of Conduct Compliance and Violation Reporting Channels

The Company has a number of internal policies that serve as guidelines for implementing the principles of good corporate governance (GCG). These policies include our Code of Ethics and Conduct. We provide several channels for reporting violations. Matters that can be reported include corruption, conflicts of interest, discrimination, and other matters that are considered to have violated regulations, or are not in accordance with the Company's code of ethics.

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33 reports

During 2021 VWC received 33 reports. All reports are investigated to ascertain if they should be followed up or not. Investigations can be carried out internally or by appointed external parties.

16 employees

receiving the lightest sanctions in the form of written directions, and 40 employees receiving written warnings.

Sustainability Risk Management Process Effectiveness

Risk management on the implementation of sustainability is part of implementing the Framework for Integrated Risk Management (FIRM), which was prepared to take into account ISO 31000, ISO 55001, and COSO-ERM on Risk Management and Asset Management.

Economic Performance To Build The Nation

Throughout 2021, PT Vale carried out critical maintenance in the operational processes, and maintained its production and sales, despite the challenges of tackling the COVID-19 pandemic, which is still our shared responsibility.


metric tons of nickel in matte


In 2021 we produced 65,388 metric tons of nickel in matte, with sales of 65,388 metric tons of nickel in matte, with operating revenues of US$953.17 million.


average production cost per ton


The average production cost of nickel in matte in 2021 will reach US$ 8,430 per ton, up from US$ 6,898 per ton in 2020 due to rising energy prices.


Thousand USD total economic value distribution


The average production cost of nickel in matte in 2021 will reach US$ 8,430 per ton, up from US$ 6,898 per ton in 2020 due to rising energy prices.

Economic Value Generated and Distributed

During 2021 we optimized the consolidated economic value generated from our Operating Revenue and Operating Profit. This report includes information on the economic value generated and distributed for PT Vale's operations in Indonesia.

Economic Value Generated and Distributed

Contribution to State Revenue and Tax-Related Policies

Total tax and PNBP payments in 2021 reached US$113,080 thousand, up 55% from US$72,995 thousand in 2020. This is due to an increase in nickel prices, which is one of the factors in the formula for paying royalties and water levy (Surface Water Tax for hydroelectric power) and corporate income tax due to the increase in Taxable Profit.

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2020 Sustainability Report

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