Our People

Implementation of Good Mining Practice on Employment

The global market condition projects that the coal industry will continue to grow up to 30% until 2030. Therefore, the industry will still have demands for competent human resources to match the industrial growth. It is important for KPC to keep searching, maintain and develop the best equipped and suited human resources to join our team and grow with us.
GMP principle on employment is realized on implementation of competence-based recruitment process, employee development programs and trainings, periodic performance evaluations, career paths, as well as remuneration package.

Protecting Employees Rights

KPC upholds human rights, fairness and equity in our management practice and relationship with every employee as well as with our contractor. KPC does not discriminate against any religion, ethnicity, race and gender.

KPC firmly opposes any form of forced or underage labor. In assigning work to each employee, we always consider safety and health aspects. Therefore, employees are entitled to refuse any work assignment from superiors if it violates work procedures or endanger their safety. KPC also requires each contractor and supplier partner to comply with labor laws and standards of safety, health and environment that KPC observes.

Fair and Proper Recruitment

KPC always tries to recruit and select employee candidates who are competent and qualified. We work with various mass media and career centers at universities as well as hire a head hunter to recruit potential employee candidates. KPC recruitment process always upholds the principles of transparency, honesty and fairness regardless of ethnicity religion and race.
In order to attract potential candidates, we also open the opportunity for students of various majors that are relevant to the industry and KPC’s business process to join KPC Internship program.

Working Opportunity for Local Communities

Our mining areas are located in Sangatta, East Kutai, East Kalimantan. It has become our commitment since our inception to empower and develop any potentials that this area have by providing work opportunities for people in this local community.

Point of hire becomes one of the factors for KPC in conducting recruitment processes. We do our recruitment by prioritizing potential employees who live in the area around the point of hire, which is Sangatta and surrounding area. KPC adds various training, development and educational programs to the local communities recruitment process.

Career Path

We conduct periodic performance reviews for all employees to ensure their career and personal development. Moreover, KPC appreciates all of our employees who have performed well and contributed positively to the Company. In order to support employee development, KPC has developed Dual Career Ladder program which is prepared for functional carrer path development. Various programs have been planned and arranged starting from basic leadership training, discipline training, up to HR training for non-HR professionals.

Pre-retirement Program

KPC gives attention to all employees entering retirement age. We prepare a special training program for our employees prior to their retirement age called the Retirement Preparation Period (MPP). This program aims to prepare employees as well as their families to, both physically and mentally, embrace retirement. Moreover, there is a training on entrepreneurship which is accompanied by a full day field visit to review and share experiences with other retirees who have been successful in becoming entrepreneurs.

Employee Turnover

Various reasons behind this are including reaching retirement age, resignation, dismissal, health reasons and several other reasons. In accordance with Indonesian Labor Law no. 13 and applicable Collective Labor Agreement, any letter of resignation should be submitted to the supervisor at least a month earlier.

Comfortable and Convenient Working Environment

KPC’s operational area in Sangatta is located in the city area, in the capital of the East Kutai Regency. Sangatta has grown from just a village with a population of 4,000 people into the capital of East Kutai with a population of more than 125,000 people where 65% of the population is employees of KPC, our contractors and their families.

We provide various employee facilities both located within the mining area or in Sangatta and Bengalon cities, such as residential complexes, schools, various sports facilities and conference hall, health care facilities, and others, with a purpose that our employees, contractors and their families feel comfortable to work and live in East Kutai. Moreover, KPC routinely holds various gatherings to allow employees to have a break from their routines, and certainly to also build relationships.

Employee Gatherings

KPC establishes unity through some fun activities that are not work-related. One of the activities is holding a gathering party in each division once a year. In this gathering party, every employee gets a chance to get closer with each other and do activities to foster a sense of togetherness. Moreover, outbound activities are also organized at our own facilities to improve unity and solidarity among employees. We also use our post-mining area at Telaga Batu Arang as a location for family outings.

Work Life Balance

We recognize that family is the most important part of every human. Family support can become a spirit boost for the employees in performing their works. To that end, KPC carries out various programs and policies that support the balance between work and family life, such as work schedule and leave allowance, transport allowance during annual leave, ease of taking annual leave for employees who want to perform religious duties, family visit, 12 weeks of maternity leave and 2 days of paternity leave.

Employee Facilities

With various facilities provided for all employees, KPC expects all employees to feel comfortable in their workplace and be enthusiastic in their work. One facility that we provide is a place for employees to stay with 3 meals in a day. Around employees mess, We also provide recreational and sports facilities around employees housing facilities, such as golf course, soccer field, basketball court, swimming pool, and more.

Moreover, KPC provides shuttle bus service for employees to and from work. We also provide a pick up shuttle to and from Company’s school for our employees’ children. This is intended for security and also fuel efficiency purposes.

Employee Development and Training

We believe that human resource is an essential asset of a company. Therefore, employee development and training programs are needed to help our employees learning and developing their potentials so they can bring more effective results to all tasks and responsibilities that they perform.

Discipline Culture of KPC’s Employees

All KPC’s employees are trained to instill discipline to their own behaviors in order to increase employee performance as well as Company’s advance and bring positive effects personally to every employee.

Labor Unions

KPC provides employees the opportunity to join labor union organizations. Through these unions, employees can express their aspiration to propose improvements or suggestions to the Management program.

Labor unions are established, by and for employees, both within KPC and outside the KPC, which is free, open, independent, democratic, and accountable in fighting, defending, and protecting the rights and interests of workers / labors and improve the welfare of workers / labors and their families.

Not only the employees who are members of the union, each of KPC’s employees also have the same right to express their aspirations in regular meetings held by the unions or the Human Resource Division without having to be members of the unions.

Bipartite Cooperation Institution (LKS) been established in January 31, 2005 with members consisting of representatives of management and representatives of the unions.

We foster 6 labor unions, they are:
1. Korps Pegawai Pertambangan Batubara (KORPPRA)
2. Serikat Pekerja Kimia Energi & Pertambangan (SP-KEP)
3. Federasi Pertambangan & Energi Serikat Buruh (FPE-SBSI)
4. Persaudaraan Pekerja Muslim Indonesia (PPMI)
5. Serikat Pekerja Keadilan (SPK)
6. Federasi Serikat Pekerja Kimia, Energi, & Pertambangan Serikat Pekerja Seluruh Indonesia (FSP-KEP SPSI)

Collective Labor Agreement (CLA)

Collective Labor Agreement is an agreement that binds KPC and our employees. With this agreement, every employee’s rights and obligations are protected accordingly. This agreement is a form of deliberation and consensus between Labor Unions and the Company, on the basis of goodwill and mutual respect, in order to build harmonious and ethical industrial relations.

HRCR Forum and HR Network

HRCR Forum and HR Network is a media for KPC, together with subcontractors, to coordinate issues related to employment, industrial relations and local community development. The forum that is held twice a month has discussions on topics that are based on forum participants’ agreement. Besides HRCR Forum, KPC also establishes an intensive relationship with three other big mining companies (the big 4), which are PT FMI, PT Vale Indonesia Tbk, and PT NNT.

Appreciating Our Employees

KPC gives appreciation to employees based on their efforts and hard work in achieving every target that has been set before. This is conducted with the intention to keep employees motivated in giving their best effort for the Company’s continuity. Various forms of appreciation are given to employees, including salary and benefits, pension program, years of service bonus, scholarship program for employees’ children, and other allowances and facilities.

Remuneration and Employee Benefits

Remuneration and employee benefits given are determined according to employees’ performance, the Company’s financial performance and annual sectorial salary surveys. In fact, we always base our minimum salary and provide a higher salary ratio compared to the minimum wage standard at our operational area.

We give Religious Holiday Allowance paid minimum 15 days prior to Eid al-Fitr. Every employee has annual leave and leave allowance which premium is distributed at the maturity of the annual leave. Leave transportation allowance is also given to permanent employees and legal dependents.

Another benefit provided is pension benefit given to permanent employees. KPC provides years of service bonus, transportation allowance to a certain location, as well as pension severance payment. Soft loans for home ownership program are also offered to employees who have fulfilled requirements. Death and burial benefit is also given if employees, their dependents, parents, or in-laws pass away.

Scholarship for Employees’ Family

In addition to having employee appreciation program, we also show our cares for employees’ family, especially their children who are the younger generation who will continue developing our nation. KPC provides scholarship program for employees’ children in order to encourage them to pursue academic achievements.