In the environmental domain, we focus on preserving nature and minimizing ecological degradation. We implement robust Environmental Governance to mitigate environmental impacts and ensure that our operations leave a sustainable planet for future generations.
Environmental Governance
Environmental management is an integral part of our mining operations, implemented from exploration and development, through production, and into post-mining activities. This includes land stabilization, rehabilitation, reclamation, and biodiversity enhancement. Our environmental commitments are aligned with applicable regulations and outlined in our KPLKPB and PKB Policies (Mining Safety, Environmental Protection, Security, Sustainable Development) and (Business Performance Improvement).
Our core environmental management commitments include:
Pollution Prevention
Returning post-mining land to safe, stable, and productive conditions
Preserving biodiversity
Water and energy conservation
Climate-change mitigation
To uphold these commitments, we continuously enhance our environmental performance. All environmental processes are planned, implemented, evaluated, and improved consistently. We have implemented the ISO 14001 Environmental Management System (EMS) since 2004 to ensure continual improvement.
We also develop industry-leading standards to strengthen environmental performance. Several best-practice initiatives include:
- Dual-function ponds combining detention storage (flood control) and labyrinth-type sedimentation design
- Utilization of Fly Ash and Bottom Ash (FABA) as cover material
- Use of 100% reclaimed oil as blasting fuel
- Utilization of heavy-duty tyres for drop structures and other applications
Pollution Prevention
Pollution prevention is a primary focus of our operations. Mining activities may generate significant pollution risks if not properly managed. Our prevention efforts target water, air, and hazardous waste pollution.
Water Pollution Control
We ensure that all wastewater generated from our operations is discharged only through government-approved compliance points. All discharged is monitored and reported regularly. We operate wastewater treatment facilities for mining effluents, (Drainage) port activities, and domestic wastewater
Mining Wastewater Quality
1. Settling Pond with Flood-Control and Labyrinth System
Open-pit mines located in equatorial regions with extremely high rainfall and large catchment areas pose significant challenges in managing water quality. High water volumes can greatly influence the quality of mining discharge. Since 2015, we have developed a settling-pond strategy using a dual-configuration system consisting of a detention storage pond (for flood control) and labyrinth-type sedimentation pond
This system effectively regulates water flow, allowing efficient water management even during periods of intense rainfall. With controlled discharge through a dedicated outflow channel, the neutralization and sedimentation processes within the labyrinth pond can operate optimally. This ensures that water quality consistently meets compliance standards under all conditions.
The labyrinth design also simplifies pond maintenance, making long-term management more efficient and reliable
2. Prevention and Control of Acid Mine Drainage (AMD)
The release of Acid Mi Drainage (AMD) into the environment can cause significant negative impacts, particularly on receiving water bodies. Preventing the formation of AMD has been a priority since the earliest stages of our mining operations.
Preventions efforts begin with the identification of acid-forming rock types, followed by selective dumping strategies to separate Potential Acid Forming (PAF) materials from Non-Acid Forming (NAF) materials, as well as the application of engineered dump-cover systems. In accordance with our reclamation specification guidelines, we currently apply four types of dump-cover strategies to ensure (PAF) materials remain stable and to prevent the generation of AMD.
In certain conditions, AMD formation is unavoidable due to ongoing mining activities. In such cases, the acidic water is treated using quicklime to achieve neutral pH and is discharges to receiving water bodies only after meeting all requires quality standards.
Port Area Water Quality
Wastewater generated in the port area originates from coal stockpile activities, the coal-fired power plant, and the temporary storage facility for Fly Ash and Bottom Ash (FABA). Wastewater from coal stockpiles and the FABA storage area is managed through settling ponds, while wastewater from the power station is treated at a dedicated Water Treatment Plant (WTP).
All wastewater discharged into the environment is ensured to meet applicable quality standards and is released only through government-approved compliance points.
Domestic Wastewater Management
Domestic wastewater has been a priority since the beginning of our operations. Our sewage Treatment Plants (STPs), which utilize activated-sludge technology, have been in operation since 1995. These STPs continue to operate effectively and comply fully with the requirements of the Ministry of Environment and Forestry Regulation No. P68/Menlhk/Setjen/Kum.1/8/2016 on Domestic Wastewater Quality Standards.
We currently operate 11 STPs across our residential and office areas. Through these facilities, we are able to significantly reduce domestic wastewater loads, which are commonly a major environmental challenge in urban areas.
Air Pollution Management
Air pollution in mining operations may arise from activities such as excavation, overburden hauling and dumping, coal extraction, coal transportation, and coal processing. In addition, air pollution can also result from emissions generated by both mobile and stationary sources, as well as vibration produced during blasting activities.
Dust Pollution Management
Dust pollution poses a significant challenge in open-pit mining areas with extensive exposed surfaces. To ensure that dust generation is effectively controlled, we implement the following measures:
1. Road Watering
Roads are regularly sprayed using water mixed with dust-binding agents. This mixture enhances dust adhesion compared with plain water, prolonging the time before dust reappears and improving overall watering effectiveness.
2. Dust Source Control at the Coal Processing Plant (CPP)
Dust emissions from coal processing are managed through both mechanical and non-mechanical controls.
- Mechanical controls are preventive measures applied before dust is generated, including the use of:
- Dust Deflectors, Chutes, Curtains, and Skirts.
- Non-mechanical controls complement the mechanical systems and include:
- Water fogging, water spraying, and the application of dust-binding agents.
We optimize the use of treated mine wastewater for dust suppression, ensuring that no river or groundwater resources are utilized thereby preserving raw water supplies for local communities.
Additionally, we carry out tree planting in industrial areas to further prevent dust dispersion into nearby settlements, serving as an additional protective buffer when residual dust escapes primary controls.
Emission Pollution Management
We recognize that the use of fossil fuels is a major source of carbon emissions. These emissions arise from several activities, including the use of diesel fuel for boilers and generators, diesel consumption for operational vehicles and mining equipment, and coal combustion at the power plant.
We regularly monitor and report emissions from both mobile and stationary sources in accordance with regulatory requirements. This is part of our commitment to maintaining environmental quality, particularly air quality.
To ensure that gas emissions from mining equipment and operational vehicles consistently meet applicable standards, we conduct routine maintenance to maintain optimal combustion efficiency. For the procurement of new equipment such as trucks and heavy machinery, we adhere to Environmental Protection Agency (EPA) emission standards Tier 1, Tier 2, and Tier 3 ensuring that all operational equipment on-site is compliant and fit for use.
Since 2017, we have implemented an Air Pollution Reduction Policy, derived from our broader HSES Policy, which outlines detailed commitments, initiatives, and reduction targets. In the 2021 revision of this policy, KPC committed to:
- Reducing Conventional Air Pollutants, specifically:
- SO₂ by 300 tons/year
- NOx by 20.66 tons/year
- CO by 11.67 tons/year
- Reducing Greenhouse Gas Emissions by 1,236,430.10 tons CO₂-eq/year
Noise and Vibration Pollution Management
Noise and vibration are forms of air pollution that also require careful management. To reduce their impact, we implement several measures, including:
- Planting green barriers around the Overland Conveyor (OLC)
- Regulating dump-truck speeds to not exceed 60 km/hour
- Conducting controlled blasting in accordance with KPC’s blasting methods and Standard Operating Procedures (SOPs)
Hazardous Waste (B3) and Hydrocarbon Management
Hazardous Waste (B3) Management
Hazardous waste generated from our operations is managed in accordance with government regulations, covering all stages from temporary storage, internal utilization, and on-site processing, to delivery to licensed third-party operators for further treatment. These licensed operators are hazardous-waste management facilities within Indonesia that hold official permits from the Ministry of Environment and Forestry (KLHK) to process part or all types of hazardous waste from registered generators. We do not export hazardous waste outside the country. To ensure proper governance, we implement a single-gate policy, meaning all hazardous waste generated by both KPC and its contractors must be managed through the system established by KPC.
We operate two government-approved hazardous waste treatment units: a thermal treatment facility using an incinerator, and a biological treatment unit for oily sludge generated from wastewater treatment plants. These facilities ensure continuous compliance with hazardous waste management regulations.
We are a pioneer in utilizing used oil as an auxiliary fuel for blasting activities. Our practice of using reclaimed oil served as a reference for the development of the Indonesian National Standard (SNI) 7642:2010 on the Procedures for Utilizing Used Oil in Ammonium Nitrate–Fuel Oil (ANFO) mixtures for open-pit mining, using an 80:20 ratio. In 2017, we further advanced this initiative by becoming the first to increase the reclaimed-oil composition to 100%, following utilization permits issued by KLHK.
We also pioneered the utilization of Fly Ash and Bottom Ash (FABA) as cover material for acid-forming layers in mining reclamation. We received approval for full-scale field trials in 2017 and a formal utilization permit in 2019. This option represents an innovative solution for large-scale and sustainable FABA management and is expected to contribute valuable insight for addressing FABA challenges in Indonesia. Following the issuance of Government Regulation No. 22/2021, which reclassified FABA from hazardous waste to registered non-hazardous waste, the use of FABA as a cover material continues to serve as an effective and sustainable solution for managing large volumes of FABA.
Hydrocarbon Spill Management
The extensive use of diesel fuel and lubricating oil at KPC presents a potential risk of spills. To address this, we maintain an Oil Spill Response Team and established procedures for managing hydrocarbon spills both on land and in water, ensuring that any incident can be handled immediately. We also ensure the availability of oil spill kits in every work unit with spill risk potential, such as workshops and fueling stations. For land-based spill response, we operate an oil response truck equipped with complete emergency tools. Additionally, Oil Spill Equipment including oil booms, skimmers, and deployment stations is stationed at Lubuk Tutung Port and Tanjung Bara Port to support rapid hydrocarbon spill response in port areas.
Photo: Muhammad Faiq
Photo: Muhammad Faiq
Restoring Safe, Stable, and Productive Post-Mining Land
Restoring former mining areas to safe, stable, and productive conditions is one of the most critical aspects of environmental management in mining. Effective reclamation, carried out in accordance with its intended land use, is essential. One of our key commitments is the implementation of progressive reclamation, and since 2014 we have consistently reclaimed more than 1,000 hectares each year. Several important elements must be considered in the reclamation process, including:
1. Land Preparation
Land preparation for reclamation begins with the placement of cover layers over Potential Acid Forming (PAF) materials, the formation of stable spoil slopes, and the development of water-management structures such as drainage channels, erosion-control facilities, and the placement of rooting-zone soil.
To ensure work quality, comprehensive quality assurance and quality control procedures are carried out through inspections and audits. These land-preparation inspections and audits are conducted during:
- Land clearing activities and the collection of rooting-zone soil.
- The final placement of overburden, specifically to assess the performance of the PAF cover system.
- The final construction stage of reclamation, which includes slope formation, drainage construction, erosion-control structures, and the spreading of rooting-zone soil.
2. Revegetation
The plant species selected for reclamation areas are determined based on land-cover functions that align with the designated land use. Referring to the provisions of the Ministry of Energy and Mineral Resources Decree No. 1827/K/30/MEM/2018, revegetation at KPC reclamation sites is categorized into four groups: cover crops, fast-growing pioneer species, native species, and fruit-bearing species. Seedlings are supplied both from KPC’s own nurseries and through procurement from local communities supported by the company. To ensure consistent seedling availability throughout the year, regular monitoring is conducted on the number of seedlings produced and planted each month. In 2024, a total of 790,814 seedlings were produced, of which 656,699 were successfully planted that same year.
3. Final Maintenance
Maintenance activities in 2021 were carried out entirely on revegetated reclamation areas and were aimed at removing competing weeds, stimulating plant growth through fertilization, and replacing dead plants. The first maintenance cycle is conducted when the plants reach five to six months of age, involving weed removal and replanting where necessary. The second maintenance cycle takes place at ten to twelve months of age and includes additional weeding and fertilization. We believe that through proper reclamation and responsible mine management, post-mining land can deliver significant added value and long-term potential for community sustainability.
To ensure reclamation is carried out consistently, we have developed a comprehensive Reclamation Specification Manual, which is continuously updated to reflect regulatory developments and best practices. The criteria within this Reclamation Specification align with the requirements set out in the Ministry of Energy and Mineral Resources Decree No. 1827/2018 (Appendix VI, Matrix XVI).
Biodiversity Management
Biodiversity serves as an important indicator of the success of mine reclamation. We are committed to preserving biodiversity by establishing dedicated conservation areas within our mining concession. These conservation zones include the Payau Park Conservation Area, reclaimed in 1998 with an area of approximately 163.60 hectares; as well as the Murung and Swarga Bara Arboretum Conservation Areas, the Pinang Dome Conservation Area, and the Tanjung Bara Mangrove Conservation Area.
To protect biological resources and the ecosystems within them, we have established a biodiversity management policy designed to safeguard specific plant species, wildlife, and their habitats. Species targeted for protection include various nesting and feeding vegetation such as Shorea leprosula, Vitex pubescens, Shorea seminis, Gmelina arborea, Anthocephalus sinensis, Syzygium species, and Ficus species.
As a result of these efforts, a significant number of wildlife species have returned to the reclaimed areas. These include sambar deer (Rusa unicolor), muntjac (Muntiacus muntjak), porcupines (Hystrix brachyura), orangutans (Pongo pygmaeus morio), plantain squirrels (Callosciurus notatus), mouse-deer (Tragulus napu), and painted treeshrews (Tupaia picta). Their presence is a strong indicator of the success of our post-mining reclamation initiatives.
In 2021, we worked with independent consultants to conduct periodic monitoring of wildlife presence in reclaimed areas. One notable finding was that orangutans (Pongo pygmaeus morio), a protected and critically endangered species, were detected in all monitoring locations. Orangutans were observed directly, through camera traps, and via nest identification. The individuals recorded included infants, adult females, juveniles, and adult males—demonstrating that orangutans are successfully adapting and reproducing within the reclaimed landscapes.
In addition to orangutans, proboscis monkeys (Nasalis larvatus), another protected species, inhabit the Tanjung Bara Mangrove Conservation Area. This mangrove ecosystem spans approximately 382.92 hectares along 9,571.94 meters of coastline in the Aquatic and Tanjung Bara region. Third-party studies have confirmed that the area provides suitable habitat conditions for Nasalis larvatus, offering adequate space for living, foraging, and protection for at least two groups totaling around 50 individuals. The proboscis monkey and the white-bellied hornbill serve as key species of this conservation area, which is also home to no fewer than 19 individual hornbills and approximately 48 other bird species—making the site a distinctive attraction frequently enjoyed by employees and company visitors.
To maintain and protect these areas, we collaborate closely with the Kutai National Park Office (BTNK), the Natural Resources Conservation Agency (BKSDA), the Forest Research and Development Center (Puslitbanghut), the Ecology and Conservation Center for Tropical Studies (Ecositrop), the School of Agricultural Sciences (STIPER), and the Wehea Protected Forest Indigenous Institution. This collaboration encompasses research and development, area protection, community empowerment, ecosystem restoration, and the development of nature-based tourism. Through these partnerships, we aim to align conservation area management with national programs, enabling more efficient and effective outcomes.
Water Conservation and Energy Efficiency
We recognize that water is a fundamental human necessity that must be preserved. Our commitment to water conservation is outlined in the KPLKPB and PKB Policies (Mining Safety, Environmental Management, Security, Sustainable Development, and Business Performance Improvement). This commitment aligns with Article 24 of Law No. 17/2019 on Water Resources.
One of our primary efforts to safeguard water resources is the implementation of progressive reclamation and the optimization of sediment pond configurations, including detention storage ponds (for flood control) and labyrinth sedimentation ponds. These measures ensure that water can continue to be utilized by downstream communities.
1. Energy Consumption and Conservation
Since 2008, we have implemented a fuel-saving program by assigning a dedicated team to identify the root causes of excessive fuel use and to apply systematic improvements. This program has been continuously enhanced over time. In 2020, we strengthened the program through digitalized monitoring and control systems, enabling better oversight. Through various energy-saving initiatives, we successfully reduced energy consumption by approximately 2.8 million GJ in 2020.⁴
2. Electricity Savings
Since 2010, we have also implemented an electricity reduction program that has significantly improved energy efficiency performance. Key initiatives include installing light switches with automatic sensors, placing AC timers in office buildings, enforcing SOPs requiring all electrical equipment to be switched off when not in use, deploying energy-efficient lighting, installing solar panels in selected locations, reducing excessive lighting, incorporating energy-efficiency criteria into equipment design, and revising environmental improvement programs to include energy-saving measures.
3. Fuel Savings
In 2017, we introduced an Energy Policy as an extension of our existing HSES Policy. This document outlines our commitments, initiatives, and targets for energy efficiency in greater detail. In the revised 2021 Energy Efficiency Policy, KPC committed to achieving annual energy savings of 3,300,000 GJ.
Our commitment to renewable energy is also demonstrated through the use of B30 biodiesel across all operational areas. In 2020, our biodiesel use contributed nearly 8 million GJ of renewable energy.
Climate Change Mitigation
Climate change has become a global concern, prompting us to take proactive measures to reduce emissions that contribute significantly to global warming. One of our key initiatives is the gradual replacement of R22 refrigerants with environmentally friendly alternatives, ensuring that all newly installed air-conditioning units utilize eco-friendly refrigerants. We have also established an emissions baseline and implemented reduction strategies based on the baseline results. In addition, we conduct Life Cycle Assessments (LCA) to examine the lifecycle impacts of our operational processes and identify opportunities for energy conservation.