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Human Resources Management

The year 2009 has been a very challenging and rewarding year for Adaro Energy with its excellent human resources playing a significant role in its success. We are focusing on finding the best talent available from the market, developing and rewarding them and making them productive in creating a bigger and better Adaro. We value the alignment of new employees’ characters and personalities with our strong corporate culture and technical competency. In 2009, Adaro Energy, Adaro Indonesia and SIS spent a total of US$1.4 million of training, an increase of 51% over 2008. By implementing the philosophy that “Every Manager is an HR Manager”, we encourage line managers to exercise their leadership in nurturing the potential of every employee.

1. Recruitment Policy: Identifying Future Leaders
   Highly qualified and competent employees with above average motivation form the basis of a bigger and better Adaro. Our recruitment policy puts internal resources first to meet our manpower needs. This provides our employees with substantial opportunities to optimise their self-development according to their job aspirations. External recruitment is conducted to locate the best talents from the market to strengthen our manpower resources. Cooperation with reputable universities is also made through regular campus recruitment and job fairs.

2. Training Program: Developing Future Leaders
   We do believe that a correct Training Programs are one of the best ways to develop future leaders. Adaro offers both soft and hard skills Training Programs. With 2009 Training Programs consisting of: Corporate Culture, Leadership, Languages, Mining Operations, Safety, Health, and Environment (SHE) and other technical programs.

3. Safety, Health, and Environment : Towards Operating Excellence
   Given the importance of SHE towards Adaro’s operating excellence, we ensure every employee and those of our business partners posses sufficient level of SHE awareness. Our continuous approach to intensify the awareness on SHE has been conducted through daily morning talks at operating subsidiaries together with routine training programs.
   

Every employee is obliged to hold the required certification to ensure technical competency and so minimize operational risk.

4. Communication Culture: Openness and Synergy
   Adaro realizes we would never enjoy employee support without appropriate communication from senior management. In line with this spirit, we encourage open communication between management and employees. Informal meetings are organized between the Board of Directors (BOD) and Senior Management and managerial level employees on a regular basis with the aim of discussing ongoing company developments and information exchange in order to promote team synergy.

5. Organizational Development: Infrastructure Readiness
   A robust infrastructure foundation in Human Resources Management was built in 2009 to support the company growth toward a bigger and better Adaro. It commenced with job analysis process for all employees, then job evaluation, and job competency profiling. Given the critical role of technology, we implemented a human resources information system to speed up this process.

6. Reward Management: Rewarding Employee Contribution
   Our philosophy in reward management relies on the importance of both financial and non financial rewards. Annually, we participate in a salary survey to identify our remuneration policy against the market and ensure it is in line with market best practices.

Despite our awareness of the importance of the spirit of team work for Adaro’s success, we also recognize employees who contribute more and stand out from the crowd. Our non financial rewards cover such areas as special assignments, job enrichment, and job rotation.

7. Performance Management: Corporate Objectives Alignment
   To assure employee contributions to the achievement of corporate objectives every employee’s individual objectives are aligned with corporate objectives and line managers play a critical role in defining, monitoring, and assessing these objectives. Adaro attempts to align every employee’s objectives with corporate objectives.

8. Employee and Industrial Relations: Togetherness and Harmony
   Adaro has consistently created a working environment that values togetherness among employees and between employees and management. Employee relations activities conducted during 2009 include a get-together evening for all employees, a family gathering, religious events, and sports events. An internal HR Newsletter is also published regularly as a communication media for all employees.

   Adaro Energy works hard to achieve the ultimate goal of creating mutual understanding and building harmonious working relationships.

Djohan Nurjadi, Albert Taulu Toar and Haryanto Simin discuss module training for the HR system.		Human resources and IT personnel forming ideas for the next family gathering activities.