PT. Bumi Resources Tbk. - Human Resources

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Human Resources

“Employees are the Company’s strategic partner in achieving the Company’s objectives. Working relationships between the employee and the Company that are based on mutual interest will drive the optimum performance. Development programs such as performance evaluation, remuneration package, education and training, and other programs serve as part of the Company’s routine agenda in its quest to enhance its human resources quality so as to enhance their contribution to the Company.”

The Company and its subsidiaries have already acquired effective systems that can ensure right placement for people. Throughout the year 2009, the Company achieved several milestones:

The application of the Company Regulations that had been approved by the Ministry of Manpower and Transmigration as a reference in the implementation of company policies on human resources management in order to ensure harmonious industrial relation between employees and Company.
The development of competency standards for key positions in all business units and provision of appropriate training to fill employee competency gaps.
The implementation of performance assessment based on objective achievements - which have been agreed by respective supervisors - has facilitated easier monitoring of employees performance.
The sustainable improvement of employee remuneration to ensure the competitiveness of their packages in promoting improvement of employee performance and retention.

As for the compensation and benefit of employees, the Company had also carried out a number of efforts such as taking part in salary survey to ensure the competitiveness of the Company’s remuneration packages in comparison to other similar companies. By doing so, we acknowledge the areas of improvement in the Company’s remuneration package competitiveness. Salary adjustments have been given to all levels of employees. The Company also introduced travel insurance for employees to enhance convenience and transfer financial risk for overseas business trips.

In line with business growth targets, the HR competency development strategy has always been synergized with the Company’s strategy in reaching short and mid-term targets. In a short-term strategy, the Company strives to diversify into other non coal business. Meanwhile, the production increase of 110 million tonnes per annum had become the Company’s mid-term target that has to be reached in the next few years.

In order to guarantee target accomplishments, the HRD has implemented various programs in 2009 to improve the quality and quantity of the HR, such as:

Increasing the number of employees and improving the training to support the Company’s operations in the preparation of various corporate actions, mainly for the employees within the Finance and Legal divisions.
Identifying the risks in HR and preparing a risk mitigation program, mainly associated with succession plans for key positions within the Company.
Encouraging cross assignments within the Company, which serve to develop an employee’s competency and create alternative potential career routes for employees.

The company recognizes the importance of HR in a competitive Business environment. Therefore, in addition to the cross assignment methods, the Company has also improved HR quality through education and training programs. The Company has increased the educational and training intensity, whereby in 2009 the amount of implementation and training had significantly risen, as seen in the table below.

To support the explansion plan, the Company placed strategic programs for 2010, consisting of:

The competency development for key-position successors within the Company.
The renewal of Company regulations in 2010 and improvement of remuneration program for employees to increase employee retention and decrease turnover.
The Pension Program for employees by using DPLK (Financial Institution Pension Funds) as an additional severance package, as stated in the Company Regulations.
Designing a Management Employee Stock Options Program (MESOP) program as part of the remuneration package improvement for all employees in the Holding Company as well as business units, in order to cultivate a sense of belonging, supporting business sustainability.