KPC Human ResourcesKPC Human ResourcesPresentation for Public Lecture

UPN “Veteran” Yogyakarta4 July 2011

Presentation for Public LectureUPN “Veteran” Yogyakarta

4 July 2011

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VisionIndonesia’s leading coal producer for global needs, delivering optimum value to all stakeholders

MissionFostering a culture that considers health, safety and environment in everything we doMaintaining good corporate governance and promoting good corporate citizenshipProviding an environment for learning to achieve excellence and improve livelihoodOptimising return for all stakeholdersCarrying best practice in management and operations to deliver consistent high quality performance

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Reasons for BeingKPC for the World, throughPowering industries and homes with energyCaring for the people and the environmentTransforming and enhancing livelihood of the community around us

KPC for the World

More than Mining

Powering

Caring

Trans-forming

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1 Human Resources Overview

2 Learning and Development

3 Competency System Development

Table of ContentsTable of Contents

Part 1

HR OverviewPart 1

HR Overview

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Chief Executive Officer

Endang Ruchijat

GM Human Resources

Khudori

GM Health Safety

EnvironmentI Manege

Chief Financial Officer

Ashok Mitra

Chief Operating Officer

R Utoro

GM Mining Operations

F Sinatra

GM Processing &

Infrastructure

M Sumali

GM Mining Support

R Schloss

GM Mining Development

S Bennett

GM Marketing

H Siagian

GM External Affairs &

Sustainable Development

H Akma

GM Contract Mining

M Rudy

GM Supply Chain

Pratikto

Manager Business AnalysisS Putra

Mgr Geology

A Susatyono

Mgr Mine Planning

A Rusmin (A)

Mgr Compensation

& Benefits

T Siregar

Mgr Learning & Development

P Sirait

Mgr Industrial Relations & Recruitment

M Nispalah

Mgr Strategic Planning

A Lau

Mgr Community

Empowerment

W Sarosa

Mgr Land Management

B Sila Sakti

Mgr External Relations

H Sani

Mgr Project Management & EvaluationL Pessireron

Mgr Marketing

D Manurung

Mgr Sales Operations

T Sirait

Mgr Coal Technology

C Stanford

Mgr Contract Mining (DH)

A Tobing

Mgr Contract Mining (TCI)

B Sembiring

Mgr Contract Mining (Pama)

A Syarifudin

Mgr Environment

C NugrahaMgr

Occupational Health & Safety

H Wardono

Mgr Mining Services

E Salehudin

Mgr Pit Bintang

R Sinulingga

Mgr Pit Hatari

H Ichwanto

Mgr Pit J

A Prananto

Mgr Coal Mining

R Sitohang

Mgr Mine Optimisation

I Muzammil

Mgr Heavy Equipment

MaintenanceU Prihardiyanto

Mgr Haul Truck

MaintenanceHendrawan

Mgr Maintenance

SystemT Urohman

Mgr Contract Maintenance

A Siregar

Mgr Maintenance

ServicesA Riza

Mgr Coal Processing

PlantA Abdullah

Mgr Coal Terminal OLC

& Power

A Sagala

Mgr Accounting

& TaxR Supin

Mgr Treasury

W Antarini

Mgr Risk & Asset

ManagementH Sianturi

Mgr Logistics

A Pribadi

Mgr Supply

H Basar

Mgr Stores & Inventory ControlS Rizal

Head Expansion

ProjectB Hopkins

GM Business & Performance Improvement

Dasril

Mgr Infrastructure

Support

R Maha

Mgr Civil & Bengalon

Development

A Harunsjah

Mgr Procurement ExpansionA Suprajogi

Mgr Coal Crushing &

Handling Facilities

S Rudianto

Mgr Power & Electrical Support

EH Cahyono (A)Mgr OLC &

Coal TerminalP Sinaga

Mgr Business & Performance Improvement

D Fotunadi

Mgr Security

Darsono

Mgr Government

RelationsG Budiarso

Mgr Marine

L Pudinaung

Mgr Legal

A Kurnia

Head of EP Coordinator

Y Subian

Mgr Equipment & Workshop

Facilities

A Wilasari

Mgr Business & Performance Improvement

G Ambara

KPC Organisation StructureKPC Organisation Structure

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■ No of KPC employees: ● Indonesian: 5,194● Expatriate: 8

■ No of contractor employees: + 15,000■ Percentage of female Indonesian employees: 6.9%■ No of graduates/engineers/senior engineers by discipline:

● Mining Engineering: 76● Geology: 47● Mechanical Engineering: 47● Civil Engineering: 20● Electrical Engineering: 16● Geotechnical Engineering: 7● Environmental Engineering: 4

HR HighlightsHR Highlights

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Mining Engineering; 76; 33.48%

Geology; 47; 20.70%

Mechanical Engineering; 47; 20.70%

Civil Engineering; 20; 8.81%

Geotechnical Engineering; 7; 3.08%

Environmental Engineering; 4; 1.76%

Others; 10; 4.41%

Electrical Engineering; 16; 7.05%

Distribution of Graduates/Engineers/Senior EngineersDistribution of Graduates/Engineers/Senior Engineers

Part 2

Learning and DevelopmentPart 2

Learning and Development

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■ HR is developing competency-based human resource management system

■ Competency system development● 5 core competencies and 12 managerial competencies have been

selected● Technical competencies are being developed with subject matter

experts from divisions■ Assessment center

● KPC is an assessment centre for National Professional Competency Certification for the Mining and Geology sectors

● KPC has held 2 assessment events in 2009 and 2010 with total 96 assessees from various mining companies

● Certification areas assessed in KPC:♦ Mining Operations – NQF-4, NQF-5♦ Geology/Exploration – NQF-4, NQF-5♦ Short-Term Open-Cut Mine Planning – NQF-4, NQF-5♦ Long-Term Open-Cut Mine Planning – NQF-6♦ Mine Equipment Maintenance Management – NQF-4, NQF-5

Learning and Development HighlightsLearning and Development Highlights

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■ Graduate development program● KPC currently has 88 graduates from various disciplines: Mining

Engineering, Geology, Mechanical Engineering, Electrical Engineering, Civil Engineering, Accounting, etc

● To develop their managerial and technical competencies, these graduates are put in rotational placement and are given mentoring and in-class training

■ Package training programs● Pre-employment training for new operators and mechanics● Leadership development programs for all leaders – from executives

down to supervisors ● “Reinduction” for newly promoted staff

■ Regular training programs● Regular leadership and management programs for supervisors and

specialists● Language training

Learning and Development HighlightsLearning and Development Highlights

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68781

6079

151326

101601

83879

0 20000 40000 60000 80000 100000 120000 140000 160000

General & Management

Engineering

HSE

Operation

Maintenance

2010 KPC Training Hours2010 KPC Training Hours

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■ On-site S2 program is held in cooperation with MM-Universitas Mulawarman with 32 participants, from engineer/specialist to manager levels

■ Opportunities for students/lecturers/government officials:● Internships for students

♦ Work experience (high school, academy, university)

♦ Final assignment (university)

● Internships for lecturers/government officials

● Scholarships for students

Learning and Development HighlightsLearning and Development Highlights

Part 3

Competency System Development

Part 3

Competency System Development

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Background■ Manpower Law No 13/2003■ Minister of Energy and Mineral Resources’ decree No 39/2008 on

implementation of national competency system in long-term open-cut mine planning

■ MoU between KPC and LSP-Perhapi concerning designation of KPC as a Competency Assessment Center (Tempat Uji Kompetensi/TUK)

■ KPC’s need for an integrated competency system for employee training and development, performance appraisal and other HR management purposes

Purpose■ To provide a competency system as a solid basis for HR management. For

initial stage, this system links with:● Training and Development● Performance Appraisal

Main Sources■ Department of Energy and Mineral Resources’ National Qualification

Framework (NQF)■ KPC-unique technical competency units

Competency System DevelopmentCompetency System Development

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Function-wise ≠ position-wise

OrganisationOrganisation

Department/FunctionDepartment/Function

GM/DomainGM/DomainDivision/DomainDivision/Domain

SectionSection

Manager/FunctionManager/Function

SuperintendentSuperintendent

Competency Unit Development ApproachCompetency Unit Development Approach

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Competencies

Required Level

General Manager(NQF 9)

Manager(NQF 8)

Superin-tendent

(NQF 6-7)

Supervisor/Specialist(NQF 4-6)

Operator(NQF 2)

Concern for Health, Safety & Environment 5 4 3 2 2

Business Ethics & Organisational Commitment 5 4 3 2 2

Achievement Orientation 5 4 4 2 1

Teamwork 5 4 4 2 1

Continuous Learning 5 4 3 2 1

Core CompetenciesCore Competencies

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Competencies

Required Level

General Manager(NQF 9)

Manager(NQF 8)

Superin-tendent

(NQF 6-7)

Supervisor/Specialist(NQF 4-6)

Operator(NQF 2)

Communication 5 4 3 2 2

Leadership 5 4 3 2 1

Work Planning & Management 5 5 4 3 2

Problem Solving & Decision Making 5 5 3 2 1

Business Acumen 5 5 4 2 1

Social & Cultural Environment Sensitivity 5 5 4 3 2

Developing Others 5 4 3 2 N/A

Budgeting & Cost Control 5 4 3 2 N/A

Adaptability 5 4 3 2 1

Continuous Improvement 5 4 3 2 1

Client Focus 5 4 3 2 1

Report Writing & Presentation 4 4 3 2 1

Managerial CompetenciesManagerial Competencies

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Generic (KPC)

Technical competencies for structural positions across divisions. Examples:

■Human Resources Management

■Financial Planning

■Project Management, etc.

Generic (Division/Department/Section)

Cluster of technical competencies shared by a number of positions in a division/ department/ section. Examples, for Mining Operations Division: ■Mine Feasibility Study■Long Term Mine Planning ■Mine Rehabilitation Planning■Stockpile Management, etc.

Specific (Position)

Competencies related to a specific functional capacity of work according to its position. Example: Drill & Blast competency for Mining Engineer

Technical CompetenciesTechnical Competencies

MANAGERIAL • Leadership• Communication• Work Planning &

Management• Problem Solving & Decision

Making• Social & Cultural

Environment Sensitivity• Adaptability• Business Acumen• Developing Others• Budgeting & Cost Control• Continuous Improvement• Client Focus• Report Writing &

Presentation

TECHNICAL – GENERIC (KPC)• Human Resources Management• Financial Planning• Project Management• Community Empowerment• Logistic Management• …

CORE• Concern for HSE• Business Ethics &

Organisational Commitment• Achievement Orientation• Teamwork• Continuous Learning

TECHNICAL – GENERIC (DIV, DEPT)• Mine Feasibility Study• Long Term Mine Planning• Drilling-Blasting Planning• …

TECHNICAL – SPECIFIC (POSITION)

Core and managerial competencies covers 60% of all competencies required for every position

Sample: Pit ManagerSample: Pit Manager

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Competency System

Competency Integration to HRM SystemCompetency System

Competency Integration to HRM System

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Competency System

Competency Integration to HRM SystemCompetency System

Competency Integration to HRM System

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