ID EN

Along the horizon of hope and optimism, as expression of gratitude to the God presence, i announce that during the year of 2011, the company has been printed a very positive and promising  perfomance record. The boast achievement was supported by the spirit of continous innovation, striving integrity, and certainly, a solid team work between all the company’s element. As a State-Owned Enterprise worked in coal - mining field, the effort to increase the corporate value and widen the corporate role to the nation’s development are become the moral obligation we should obey for.

The increasing in coal demand was right-response by the company with successfully raising its production to 12.95 million tons , or 3.9% higher than previous year’s production quantity about 12.46 million tons. The sales volume also increased by 4.0% from 12.95 million tons to 13.47 million tons. The increasing in average selling price in domestic and export market was increased the company’s trading value significantly, about 33.8% to amount IDR 10.58 trillion compare to previous year amount IDR 7.91 trillion. The increasing in trading  value was established the EBITDA value to 54.9%, or amount IDR 4.13 trillion from previous position amount IDR 2.66 trillion.
 
In order to maintain the positive performance of the company and to façade a very various chalenge in year 2012, the company set to run the strategy to focus in enhancement operational efficiency. In implementing various improvement program including improving coordination at management level, optimization of mining operations, increasing self-managed production targets, increasing reliability of production’s equipment and supporting equipment, and also increasing efficiency in the path of supply chain through implementation of Supply Chain Management System (an information and technology-based system which integrate the chain of business process from mine planning, production, stockpile management as far as transportation and marketing). In the future, this system is expected to support the acceleration of decision making in operational and strategic field.
 
The company’s procurement also strive to make simpler by E-procurement System. This system was begin to launch at year 2011, intended to increase the transparent in procurement of goods and services, speed up the process, and enhance the efficiency.
 
Gradually, the realization of  development projects in order to support the increasing in production and trading process are obtaining with strong commitment and well-planned calculation. On year 2011, the company has signed the agreement of longterm tariff with PT KAI for year 2012 to year 2016. This aggrement was intended to increase the existing rail freight capacity to 22.7 tons per year. The new railway project by rail freight about 25 million tons per year from Tanjung Enim to Lampung is on the land acquisition stage. The agreement for the new rail freight with the capacity of 35 million tons per year is also involving the government of South Sumatera province and Adani Global limited. The company also develop several steam power plant projects.
 
On November2011, the first firing on unit 1 of 3x10 steam powerplant at Tanjung Enim has been done, this power plant is aimed to be own-used. The project of Bangko Tengah steam power plant size 2x620 MW (Sumsel 8) at Tanjung Enim, will be build along together with China Huadian, based on LOI published by PT. PLN on December 2011. Moreover, further steam power plant is Banjarsari Steam powerplant size 2x110 MW at Lahat, South Sumatera which the groundbreaking has been done on July 2011.
 
The company also take hold of Coal Bed Methane project at Tanjung Enim Mine. The progress of the project until  December of 2011 is reach the drilling and exploration stage at two spots of core hole and will be prepared for well pilot drilling.
 
The reliable human resources is the most fundamental asset to run the strategic plans of the company. To manage it’s human resources, the company set to adjust an sustainability program to increase the employee’s competences and to develop the employee’s career based on their competences. The implementation of Key Perfomance Indicator (KPI) and Balanced Scorecard are used as tools to measure  each employee’s and unit perfomance  
 
Along with the application of Good Corporate Governance including eradication of corruption, bribery, and other fraudulent practices, the company has prepared the Wisthle Blowing  System unit, and the guidance of wisthle blowing system.
 
Sustainable Mining Business is implemented by the company by running the Good Mining Practice and Corporate Social Responsibility (CSR) Program. The CSR strategic planning for five years ahead (2011-2015) is formulated to achieve prosperous society, independent, and enviromentally care. The programs which designed for that propose include : (i) Alignment of CSR organization and the development of communication forum (ii) The development of capability and society competences  (iii) The development of independent business (iv)The development of finance institutions by small business funding program (v) community empowerment through the company’s partners (vi)increasing the awareness of the environment (vii) the development of infrastructures and public facilities (viii)disaster relief
 
The company’s responsibilty to the environment, also put in order for the future years. A master plan be made up of to develop post –mining region. About 5.934 ha are planned to be wide forest park which estimated will be accomplished on the next fourty years ahead. The result of consistentcy of the company to manage the environment is the success of the company to maintain the award of proper received  from environmental ministries for three time in a row. It become the company’s goal to reach the gold proper on the future years to come. The company also received aditama award from the ministry of energy and mineral resources. 
 
The opportunities lies in front of us, should be become our motivation and challenges to overcome our vision in becoming the greatest integrated coal-mining company. Supported by large amount of reserved, the well-planned development strategies, good quality of human resources and the commitment to the implementation of GCG, the better future will be reach with confident.