CHAPTER IV

INTERNAL ENVIRONMENT
4.1 Corporate Structure

4.2 Corporate Culture

The process of formation of corporate culture originated from the realization that companies
require adhesive to unite the firms that are within the company group, namely Semen Padang and
Semen Tonasa, to formulate corporate culture is universal and accommodate the aspirations of
employees. With the formation of corporate culture that is both universal and accommodate the
aspirations of employees, this culture has permeated and practiced in the daily activities of
employees and become a growth accelerator performance of the Company to achieve its vision to
become the leading cement company in Southeast Asia. Corporate culture is the source of all
institutions organization (software) settings management company, which developed from the

philosophy and the values and beliefs that guide the Company in performing their duties beings.
SGG corporate culture are arranged in the acronym "CHAMPS" containing cultural values as
follows:
C ompete & Synergized With a Clear Vision
H ave a High Spirit for Continuous Learning
A ct with High Accountability
M eet Customer Expectation
P erform ethically with high Integrity
S trengthening Teamwork
Said CHAMPS is a fragment of the English word "CHAMPION" which means "winner" or
"champion". The letter S at the end of the word CHAMPS indicate that the winner amounted to
plural or more than one person, namely the existing employees in all companies belonging to the
group
Company. Furthermore, cultural values is actualized into the behavior of the key (key behavior).
Redefinition of Corporate Culture is part of an effort to improve the readiness of the whole range
of the Company to realize the long-term plan and achieve business growth opportunities.
4.3 Corporate Resources
1. Marketing and Distribution Resources
Excellence Company distribution network supported by 30 warehouse units buffer, the operation
of 21 packing plant in a strategic location and is supported by 361 national distributors to ensure
the smooth supply cement to the rest of the archipelago. The TLCC distributor in Vietnam
amounted to 78 are scattered in Vietnam North, Central, and South America.
The Company is currently building three additional packing plant in several locations prospect
until the year in 2016 the Company plans an additional 12 units packing plant. The development
objective of the packing plant is:
The cost efficiency of transportation and distribution.
Ensure continuity of supply of cement in the marketing area of the Company.

 Expansion of the market

The Company's efforts to improve the security of supply of cement increased activity affects the
entire consumer delivery to warehouses buffer and packing plant spread across Indonesia, so this
gives the impact of increasing load distribution.
To reduce the rate of increase in load distribution while ensuring the accuracy and availability of
supply, the Company made efforts include:
Implementation of the distribution and marketing synergies of the whole entity subsidiary that
has activities in the field of cement and cement distribution Financial Performance Overview for
supplying cement to the primary market with the nearest distance. (See the description of
"Synergy program" and "Revenue Management ")
Optimizing packing plant, packing plant construction and discharging ports in strategic areas,
to improve the efficiency of transport and distribution. (See the description of "Development of
Packing Plant").
Packaging. In order to suppress the effect of the increase packaging raw material prices, the
Company continuously packaging development activities in the context of efficiency. (See the
description of "Research and development", Development of packaging). Efforts undertaken in
the field of research and development have proven packaging have a significant impact, the
composition of the packaging load against the cost of revenue in 2014 amounted to 5.6% lower
at 6.0% from the previous year..
2. Financial Resources

Powered higher sales volume and selling prices of competing brands that are well
known in the community, the Indonesian Cement recorded a revenue increase of up
to 10%.
However, the increase in production costs make the company recorded growth in
profit attributable to owners of the parent amounted to 3.6% to Rp5.6 trillion

3. Human Resources
The Company believes human resources are one of the main assets that have a central and
strategic role in supporting the successful achievement of the vision and mission of the company.

Therefore, the Company seeks to enhance the role and capability of human resources in a holistic
competency development program through the container Cement Indonesian Center of The
Champs are uniting and developing the ability of the Company to ensure the success of strategic
business development plan over the long term.
HR SYSTEMS DEVELOPMENT TOWARDS WORLD
CLASS HUMAN CAPITAL
In line with the transformation program Strategic Holding Corporation into a world-class
company with coverage of business clusters of cement and non-cement, the Company made a
Development of an integrated HR system in line with the Company's Long-Term Plan that has
been set. Development of HR system includes optimization of 3 main components: process,
technology and people.
HR business processes developed from best practice business processes HR firms run by World
Class, which consists of the process:
1. Human Capital Planning
2. Human Capital Acquiring
3. Human Capital Development
4. Human Capital Maintaining
5. Retaining Human Capital

The Human Capital Planning process, the Company took the initiative in the aspects:
- Organization Development: Transforming the Corporation in accordance with the company to
develop the HR function
the establishment of a level 2 Work Unit in the Department of Holding, namely:
1. HR Systems Development Department focuses on improving human resource policies
and systems that apply across the Group, as well as talent management, especially the
Board of Directors, Echelon Echelon 1 and 2 and HR Business Process and Technology.

2. Department Center of Dynamic Learning (CDL) function Corporate University, the unit
which was established in line with the company's strategy for managing the education
and learning functions within the company with the aim of preparing human resources in
order to help the company achieve its goals. Task CDL Department include:
implementing the preparation and management of You Competence, curriculum, syllabus
and Learning Module, coordinate and implement the Leadership Development Program
(LDP) for Echelon Echelon 1 through 4 in the entire Group and implement policies and
initiatives Knowledge Management functions in all elements company.

- Job Management: The Company did Evaluation and Reevaluation Weight Position (Job
Grade) in all functions of the company, in line with the corporate transformation program and
the development of organizational structures. Evaluation and Reevaluation conducted with

experienced consultants in the field of Job Evaluation. The Company has sets the Evaluation
Committee Position (KEJ), so as to gradually capabilities / competencies Job Evaluation
owned by the company's internal, and can do without the assistance Job Evaluation
consultant.
- Man Power Planning: In line with the implementation of the Company's Long Term Plan
(RJPP), the Company conducted a review of the human resource planning, with the aim to
validate alignment qualification, number and additional human resources to match business
growth. To reinforce the validity of the review, the Company did Workload Analysis.
Through these efforts, the Company then formulate the optimal number of HR operational
support companies in the future in Manpower Planning documents up to 2030.
- The general process adopted Human Capital management in any corporate actions such as
business expansion both at home and abroad are doing the calculations Man Power Planning.
If of sufficient internal company stated it will use the power of the Company's internal.
However, when judged lacking, it will be followed up with Recruitment Program, in
accordance with the required fields and competencies required for each job position.
- Meanwhile, when a new organization abroad is no vacancy, then the first thing to do is
make the filling HC field position using a standard assessment of competence and
performance needed in that position and will be filled with employees who have the right
performance and competence. This will be obtained from the mapping Talent in Talent
Management Company Program. The Human Capital Acquiring process, the Company has
initiated in aspects:
- Recruitment: Man Power Planning in accordance with predetermined, the company recruit
new employees. Strip acceptance of new employees in the Company consists of:
o Management Trainee: equivalent of graduate Bachelor (S1), is projected to occupy the post
of Head of Section (Echelon 3)
o Supervisory Trainee: equivalent of graduates Diploma (D3), is projected to occupy The
head office team (Echelon 4)

o Operator Trainee: equivalent vocational school graduates, Implementing positions (Echelon

5)
- On Boarding: New employees who have been recruited, given briefing materials that
support the process of understanding and acceptance of new employees for Culture,
Environment.
Work and competencies needed to deliver the best performance in the company. On Boarding
Process consists of Susbintal, Corporate Profile, Corporate Culture (CHAMPS), Basic
Management, Technical Competence, Personal Mastery, ESQ, Safety Riding, Plant & Office
Visit, On the Job Training (OJT) and administration tasks during OJT.

The Human Capital Development process, the Company has initiated in aspects:
- Job Competencies: according to the business needs of the company's current and future
development in accordance RJPP, the Company developed a plan to update the Employee
Competence. Job development Competencies will be in accordance with the Job Description
and Job Family from each position, resulting in the identification and assessment of
competence level for each gap competencies can be integrated with a valid method according
to the needs of the company.

- Training Program: to support the initiative of the Indonesian Cement Center of CHAMPS
(SICC) as the power house of the Indonesian Cement become a World Class Company,
particularly the Center of Dynamic Learning (CDL) and the Center of Knowledge
Management (CKM), the Department of CDL, has set the framework and organizational
structure that will carry out the functions CDL Corporate University. Framework and
organizational structure CDL is as follows: