Human Resources Management

Adaro Energy believes it is important for our people to have good characters to support our operations. All of our employees are expected to have good attitudes, be determined in achieving their goals, be responsive, care for others, be creative, and be of good integrity. Adaro Energy's management must create an environment that fosters such attributes and creates team work.

Adaro Energy's approach to HR is that the relationship between management and employees is similar to that of a harmonious family. By implementing the philosophy that every Manager is a Human Resources Manager, we are able to fully nurture the potential of our employees.

Training Programs
The mission of the HR department is to support management by providing future leaders. This is achieved through good training programs, which also helps to improve productivity. Adaro Energy offers various training programs of both soft and hard skills. Examples of training programs held in 2008 include: on site learning of the proper and safe use of all mining and hauling equipment, training on the safe use of explosives, continuous leadership programs, English and Japanese language training, Bloomberg skills enhancement, and psychological training such as the Myers - Briggs Type Indicator training which helps people understand their personality type and how to better form cohesive teams.

Recruitment Policy
Our recruitment policy is to look for the best talent in the market. We believe our ability to recruit talent is not only because we are one of the largest coal mining companies in Indonesia, but also because we create environments that value individual achievement. Our recruitment policy also emphasizes non-monetary factors.

Organization Development
Adaro intents to retain the best talent, by increasing both the technical and managerial skills of current employees and new recruits.

Remuneration Policy
Remuneration is largely based on performance and should be competitive enough to retain our employees. Each individual has predetermined annual performance indicators, which are monitored closely by their supervisors and upon which salary increases and bonuses are determined.

Pension Fund Management
Adaro's post-retirement benefits are managed through a contribution benefit plan, on top of what is required by Labour Law No.13/2003 and the Indonesian Labour Social Security Program (Jamsostek).

Employee and Labor Relations
Adaro's management attempts to create a work environment where employees and management behave and treat each other as a family, and social events for both management and employees are encouraged. In 2008, Adaro held or sponsored family gatherings, and religious, sports and arts events. A regular HR newsletter internal magazine is published to help employees understand their rights and obligations and as a means for employees and management to communicate.

Labor relations are managed through a Collective Labor Agreement, and employees have the right to form certain labor unions. Labor unions have formed at Adaro's operating subsidiaries and management intends to maintain harmonious relationships with these unions.

Compliance to Government Requirement
The Government of Indonesia now requires all Indonesian citizens obtain a tax number (NPWP). To ensure all employees obtain their tax number and report their tax properly, in 2008, Adaro held several sessions to educate employees on how to fill their tax forms and also provided a tax consultant.