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ANTAM HUMAN CAPITAL DEVELOPMENT

(Sharing session at IPMI Business School)

Jakarta, 8 Mei 2010

Sales Composition Vertically Integrated National’s mining company operated in Indonesia

More than 4 decades experiences

High Quality Deposits on Gold Bauxite, and Nickel

State‘s share 65% and the rest is trade at (BEI) and Australia Securities Exchange (ASX)

Export orientation to Asia and Europe

2500 employees

Organic and inorganic growth Strategy

Antam Preview

44%Trading Emas

Based on Market Destination

8%Domestik

92%Ekspor

25%Feronikel

1%Bauksit

19%Bijih nikel

FY2008

5%Domestik

95%Ekspor

FY2009

FY2008 FY2009

11%Gold, Silver and Refinery Service21%

Trading Emas

37%Feronikel

2%Bauksit

31%Bijih nikel

9%Gold, Silver and Refinery service

Antam operation is vertically integrated started from exploration, mining, processing, refinery down to marketing

Operational Site and Development

April 2010 – Page 3

Pomalaa(Feronikel dan Bijih

Nikel)

Gee(Bijih Nikel)

Tanjung Buli(Bijih Nikel)

Mornopo(Bijih Nikel)

Proyek FeNi Halmahera

(Nikel)

Proyek Emas

Cibaliung(Emas)

Logam Mulia(Pengolahan dan

Pemurnian Logam Mulia)

Kijang(Bauksit)

Geomin(Unit Eksplorasi)

Operasional

Proyek Proyek PLTU Pomalaa

(Nikel)

Proyek CGA Tayan(Bauksit)

Pongkor(Emas)

Pasca Tambang

Tayan(Bauksit)

Proyek NPI Mandiodo

(Nikel)

Proyek Optimasi Pabrik Feronikel

(Nikel)

Proyek SGA Mempawah(Bauksit)

Pendapatan Komoditas

2005 2006 2007 2008 20090.000

2.000

4.000

6.000

8.000

10.000

12.000

14.000

3.175

5.520

11.534

7.583

4.861 76

109

474

2.009

3.850

1.8272.888

4.2074.981

3.730

0

472

1.963.783

842 1.553

5.11899999999999

1.368604

4.679

Rp Miliar Beban Pokok Penjualan

Laba Bersih

Sales and Profitability

6.941

9.5928.711

12.008

5.629

Pendapatan Trading

0

Beban Pokok Trading

3.251

7.513

Antam HR Issues on 2008

• Difficulties in measuring objectively the subordinate’s performance

• Lack of Leader’s ability to coach and to counsel• Structural and functional opportunity gap lead to the de-

motivated staff• No High Caliber/Internationally recognized

Mining/Geology/Processing Specialist/expert• No formalized Leadership Development Program• No clear concept of promotion and salary increase• No significant reward distinction for high performing and

under performing employees• Salary curve for management is at the floor of market

(P10-P25)

To Survive, Antam need to transform itself

- Market

- Productivity - Corporate

Culture- Regulation,

Decree- OTDA,

- dll

Vision 2020,

Mission &

Strategy

Burning Platform

Burning Desire

Transformation

ANTAM VISION 2020

MISSION

CORPORATE STRATEGIC

ORGANIZATION

BEHAVIOR

CORPORATE VALUES

CORPORATE CULTURE

LEADERSHIP

ANTAM ORGANIZATION CAPABILITY IMPROVEMENT PROCESS

BUSINESS RESULT

ORGANIZATION EFFECTIVENESS

EMPLOYEE ENGAGEMENT

PERFORMANCE & REWARD MANAGEMENT

COMPETENCY MANAGEMENT

RECRUITMENT MANAGEMENTMA

NA

GE

ME

NT

TOO

LS

AN

D M

EA

SU

RE

ME

NT

Page 8

ANTAM HR VISION 2015(DIRECTION)

To be a Mining company with International standard and Competitive advantage

in the Global Market

Vision 2010

To be a global mining-based corporation,

with healthy growth and world-class standards

Vision 2020

To reach Antam Human Capital

Excellence-BEST-

ANTAM 2015Strategic Objective

EMPLOYEES REWARD SYSTEM(Strategic Architect, Organization Designer, Business Ally)

SIP(ERS)

SMUK,

Job / position Grade

Personal Grade ++

Vision, Mission, RJPP

KPI, SMK

Organization Development

Evaluation

Job Standard

Performance standard

Position requirement

Competency Standard

Model

Competency Dictionary

Job Competency Profile

Assesment tools

Career Path Development

Model

Structural and Functional

path

Person

Position

Performance

HOW ANTAM LEADERS LEAD

SENSESpeed ENergize

ReSpect CouragEBASIC CHARACTERS - IMAM

HUMAN CAPITAL

EXCELLENCE

BESTBeyond

Expectation

Environment Awareness

Synergized ParTnership

20 BEHAVIOURS

LIVE BY ANTAM’S VALUES

PIONEERProfessionalism

IntegrityGlObal

MentalityHarmoNy

ExcEllence Reputation

VISION

2020

BUSINESS EXCELLENCEOPERATION EXCELLENCE

ANTAM CAPABILITY DEVELOPMENT ROADMAP

(Credible Activist, Operational Executor, Change Steward)

Selection &

Recruitment

SLDP

BLDP

Struktural Fungsional/Spesialis

MLDP

ELDP

Internship Program

EmployeeNew Old

ExecutiveSM/DSVP/VP/SVP

Manager UtamaManager/ASM

ManagerAM/Sederajat

Senior Spesialis

Spesialis Utama

Spesialis

Potential Assessment

BOD

Directorship

Induction Program

YesNo

Special AssignmentSpecial Assignment

YesNo

ALDP Model

SigningContract

SOE CHALLENGES ON HUMAN CAPITAL

LEADERSHIP (Business acumen, Interpersonal, Vision)

CULTURE (Historically and politically lack of competition)

WORKFORCE SIZE AND CAPABILITY (always need more people, lack of quality match workforce )

ANTAM’s HR Directorate CHALLENGES ON ORGANIZATION CAPABILITY

HR Roles and Competencies(Activist, Business ally, Strategy Architect, Change Steward, Operational executor, Org. Designer)

HR Practices(People, Performance, Communication, work)

Page 14

Thank You

PT Antam TbkHead Office:Gedung Aneka TambangJl. Letjen T.B. Simatupang No.1Lingkar Selatan, Tanjung BaratJakarta 12530, IndonesiaPhone: (6221) 7891234Fax: (6221) 7891224Email: corsec@antam.com

ANTAM’s VISION, STRATEGIC OBJECTIVES, VALUES, & LEADERSHIP ATTRIBUTE

VISION 2020“To be a global mining-based corporation with

healthy growth and world class standard.”

PROFESSIONALISM

INTEGRITY

GLOBAL MENTALITY

HARMONY

EXCELLENCE

REPUTATION

CORPORATE VALUESSPEED

ENERGIZE

RESPECT

COURAGE

LEADERSHIP ATTRIBUTE

STRATEGIC OBJECTIVES 2015Human Capital Excellence (BEST)

PIONEER SENSE

ANTAM HC Development (a frame work)

DirectorshipExecutive LDP

Senior LDPMiddle LDPBasic LDP

Teknis OperationTeknis Supporting

Professional SkillOthers

ALDP(Antam Leadership

Dev Program)

AFDP(Antam Functional

Dev Program)

AGDP(Antam General

Development Program)

COMPETENCYDasar (4)

Inti (3)Managerial (8)

Teknis

TNA

- S T A K O M -(sesuai dengan konsep STAKOM NASIONAL)

Kompetensi Manajerial (6)

KOMPETENSI TEKNIS (143)

Kompetensi Dasar (4)

Kompetensi Inti (3)

• Geologi/Eksplorasi (14)• Perencanaan/Pengembangan Tambang

(13)• Produksi/Penambangan (13)• Kesehatan, Keselamatan Kerja dan

Lingkungan Hidup (8)• Maintenance (8)• Processing (19)

• Manajemen Proyek (4)• Pemberdayaan Komunitas (5)• Logistik (5)• Sumberdaya Manusia (7)• Keuangan (8)• Pemasaran dan Pengembangan Bisnis

(9)• Teknologi Informasi (6)• Perencanaan Perusahaan (1)• GCG (14)• Lain-lain (9)

Total 156 unit kompetensi

STAKOM

Level 5 Hierarchy

LEVEL 4

LEVEL 3

LEVEL 2

LEVEL 1

LEVEL 5

EFFECTIVE LEADER Catalyzes commitment to and vigorous pursuit of a clear andCompelling vision, stimulating higher performance standards

COMPETENT MANAGEROrganizes people and resources toward the effective and efficient pursuit of pre-determined objectives

CONTRIBUTING TEAM MEMBERContributes individual capabilities fit the achievement of groupobjectives and works effectively with others in a group setting

HIGHLY CAPABLE INDIVIDUALMakes productive contributions through talent, knowledge, skill and good working habits

LEVEL 5 EXECUTIVEBuild enduring greatness through a paradoxial blend ofpersonal humility and professional will

taken from “Good to Great”