TOLL ROAD CONCESSION AGREEMENTS - MELAK EXTENSION TREE PLANTING AROUND INDONESIA

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TOLL ROAD CONCESSION AGREEMENTS - MELAK EXTENSION TREE PLANTING AROUND INDONESIA
English Version           Volume 02/2012

melak exTension       TRee PlanTing
Toll Road          aRound indonesia
ConCession agReemenTs
TOLL ROAD CONCESSION AGREEMENTS - MELAK EXTENSION TREE PLANTING AROUND INDONESIA
1000 Mangrove Tree Planting
                    Jakarta
         24 November 2011
TOLL ROAD CONCESSION AGREEMENTS - MELAK EXTENSION TREE PLANTING AROUND INDONESIA
Volume 02/2012

                                                 Thanks to our Safety Culture and the
                                                 programs we run to raise awareness and
                                                 encourage safe practices, Rian was one of
                                                 the lucky few to escape death that day.

                                                 In addition to community programs in
                                                 health, education, environment and safety,
                                                 Thiess Indonesia runs a world-class training
                                                 facility at our Balikpapan office. Our award
                                                 winning Training Centre provides on-the-
                                                 job training in electrical, mechanical and
                                                 welding trades, and has received a lot of
                                                 attention by the government. Recently,
                                                 Indonesia’s Minister of Manpower and
                                                 Transmigration, Muhaimin Iskandar, paid
                                                 a visit to our apprentices as well as the
                                                 Ambassador of Australia to Indonesia, HE
                                                 Greg Moriarty.

                                                 In December, Thiess Indonesia welcomed
                                                 three very important people to our Board
                                                 of Commissioners, Bambang Setiawan,

dear readers,                                    Gembong Priyono and Setia Purwaka. I
                                                 am confident under their guidance Thiess
                                                 Indonesia is poised for greater growth.
Thiess Indonesia has a long history of
                                                 These stories and more can be found in this
developing communities around us. We
                                                 edition of ExperThiess. I hope you will enjoy
run a number of ongoing health and
                                                 our latest edition of ExperThiess.
education programs across our sites. In
recent months, our environmental initiatives
have taken on greater importance as
our initiatives now reach beyond our
                                                 Best regards.
sites, where we are traditionally very
much focussed on revegetation. Our
environmental programs now include tree
planting programs across all sites and, in
Balikpapan, protection of the coral reef
ecosystem in the waters of Manggar Coast.
                                                 Roy Olsen
                                                 President Director
Since we prioritize safety first in everything
we do, we work to extend this culture
into our employees’ home. The Mahakam
Bridge collapse in Kutai Kartanegara in
late November 2011 was a national disaster
survived by one Thiess Indonesia employee,
Rian, who was on the bridge during leave.

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TOLL ROAD CONCESSION AGREEMENTS - MELAK EXTENSION TREE PLANTING AROUND INDONESIA
Contents

  6                                   8

 18                                  22

           Cover:                   No part of this publication may be reproduced or
           Students of SDN          transmitted in any form or by any means, electronic
           008 Gunung Binjai        or mechanical including by photocopy, recording or
           Balikpapan Timur,        information storage and retrieval system, without
           Kalimantan Timur,        permission in writing from PT Thiess Contractors
           adopted school of        Indonesia.
           Thiess Indonesia
                                    Copyright © 2012 PT Thiess Contractors Indonesia. All
           Feedback:                rights reserved.
           marketing@thiess.co.id
                                    Find us on:

                                                        Thiess Indonesia

                                                        @ThiessIndonesia

                                                        Thiess Indonesia

  4
TOLL ROAD CONCESSION AGREEMENTS - MELAK EXTENSION TREE PLANTING AROUND INDONESIA
Volume 02/2012

 10                                  15

 24                                 26

ProJeCT UPdaTe                      eNviroNMeNT
6 Toll Road Concession Agreements   24 Save Balikpapan’s Coral Reef
8 Melak Extension                   26 Tree Planting Around Indonesia
10 Great Performance!
   Best Production Ever             saFeTy
12 Continuing to Deliver            30 Adhitama (Gold) Award
15 Ambassadorial Visit              32 Golden Flag Awards

TraiNiNg & develoPMeNT              iNNovaTioN
17 Apprentice Graduation            34 Certified Cat 16H Rebuild Programme
18 Manpower Minister Visited
   Training Center                  oUr Pe0Ple
                                    35 Our New Commissioners
HUMaN resoUrCes                     36 Saved by the Seatbelt
20 ITB Careers Expo
21 UPN Studium Generale

CoMMUNiTy
22 Mentawai Donation
23 Our New Adopted School

                                                                        5
TOLL ROAD CONCESSION AGREEMENTS - MELAK EXTENSION TREE PLANTING AROUND INDONESIA
Project update

Toll Road
ConCession
agReemenTs
Four years after the Government of Indonesia invited us to tender for
three toll road concessions, Thiess Indonesia finally signed all three toll
road Concession Agreements through our toll road subsidiaries, PT Solo
Ngawi Jaya, PT Ngawi Kertosono Jaya and PT Cinere Serpong Jaya.

On Tuesday, 28 June 2011, three toll road       investment value of U$1.3 billion. These are
Concession Agreements were signed by            major infrastructure projects!
myself as President Director of our toll road
subsidiaries and Ir. Achmad Gani Ghazaly        The Trans Java toll roads are to be
Akman as Head of the Indonesian Toll            delivered as Public Private Partnerships
Road Authority or Badan Pengatur Jalan          (PPP) under the Government’s initiative to
Tol (BPJT). The signing took place at the       enhance investment in what is recognized
BPJT office and was witnessed by the Vice       as badly need infrastructure in the country.
Minister of Public Works, Dr. Ir. Achmad        Under PPP scheme, the Government
Hermanto Dardak, MSc. Coincidentally, the       provides subsidies in the form:
date of signing is also the same date as
BPJT’s sixth anniversary. It was a good sign    »   Funding/financing of the whole of the
to be signing on a lucky date.                      land acquisition for Solo–Kertosono toll
                                                    road;
As you may know, the toll road projects         »   Funding/financing, Design and
will include construction, maintenance              Construction for the distance of
and operation of three major sections: the          approximately 60 Km.
Solo-Ngawi and Ngawi-Kertosono sections
of the Trans Java as well as the Cinere-
Serpong section of the Jakarta Outer Ring       This means our toll road subsidiaries only
Road 2 (JORR2). I am pleased to report to       construct 118.71 Km of roadway, but will toll
you that the Concession Agreement has           approximately 180 Km and obtain the full
a period of 35 years and an approximate         tolling benefit from what is expected to be

  6
TOLL ROAD CONCESSION AGREEMENTS - MELAK EXTENSION TREE PLANTING AROUND INDONESIA
Volume 02/2012

the most heavily used Solo end of the toll     As such, our schedule of works is expected
road.                                          to be as follows:

In Jakarta alone, it is estimated that         For Trans Java
1,200 new vehicles join the city’s already     Land acquisition completion: Early 2013
congested roads every day. In a recent         Construction period: Mid 2012 to
report, the Jakarta administration predicts    September 2014
that without new roads or any further          Operation start: October 2014
infrastructure development, the city
would reach total traffic gridlock by 2012!    For JORR2
So although the Cinere-Serpong section         Land acquisition completion: Mid 2013
will only connect commuters from the           Construction period: Mid 2013 to Late 2014
West to the South of Jakarta, the section      Operation start: January 2015
is expected to ease quite a substantial
amount of traffic.                             For the 180 Km Solo-Ngawi-Kertosono
                                               sections, the road will be a 2-lane highway
The Government has also placed a high          with a design speed of 120km/hr and is
priority on the completion of the Trans Java   expected to have a tariff of Rp 650/Km
toll road in order to enhance economic         for Class I (2014). For the 10 Km Cinere-
development in Central and East Java. The      Serpong section, the highway will be a
Trans Java toll road links Jakarta to Merak    3-lane road with a design speed of 100km/
in the west and to Surabaya in the east,       hr and will have a tariff of Rp 840/km for
total 682 Km. For Thiess Indonesia, all this   Class I (2015). During the operation periods,
means we have enormous works to be             our toll road companies shall be entitled to
done ahead of us.                              an adjustment of the toll tariff once every
                                               2 years, based on the ongoing regional
President Susilo Bambang Yudhoyono             inflation rate. •
has given the Ministry of Public Works,
effectively BPJT, a deadline of 2014 to
complete construction of these toll roads.

                                                                                       7
TOLL ROAD CONCESSION AGREEMENTS - MELAK EXTENSION TREE PLANTING AROUND INDONESIA
Project update

  8
TOLL ROAD CONCESSION AGREEMENTS - MELAK EXTENSION TREE PLANTING AROUND INDONESIA
Volume 02/2012

melak
exTension
On 20 September 2011, Thiess Indonesia
was awarded a three-year extension and
expansion to our current contract with PT
Bayan Resources Tbk for works in Melak,
East Kalimantan. The US$500 Million
contract extension comes into effect on
01 January 2012, will see Thiess Indonesia
operate at the Teguh Sinar Abadi (TSA)
and Firman Ketaun Perkasa (FKP) Coal
Mines through to December 2016. A new
production target of 5 MT of coal and 70
MBCM of overburden per annum was set.

We believe this contract extension confirms
our ability to build and maintain long-term
relationships with our clients. Our ability to
deliver targets is a key factor of our success
in forging successful partnerships. We are
pleased that we will continue to grow our
operations with the Bayan Group, one of
Indonesia’s most successful coal mining
company.

To David Kettle and all the team at Melak
Coal Mine, congratulations on your efforts
to date. We look forward to seeing your
best. •

                                         9
TOLL ROAD CONCESSION AGREEMENTS - MELAK EXTENSION TREE PLANTING AROUND INDONESIA
Project update

 10
Volume 02/2012

                           GREAT PERFORMANCE!

      BesT PRoduCTion eVeR
This has been a great year for Satui and      monthly best production of 6,297,040 BCM
Senakin with production records at an         recorded in October 2009 at Senakin.
unbelievable all-time high.
                                              Not to be outdone, Senakin followed that
saTUi                                         record with an impressive 6,920,183 BCM
In May 2011, Satui recorded its best-ever     of waste moved in June as well as a new
production month with a total of 7,194,958    all-time record of 7,423,263BCM of waste
BCM of waste moved surpassing the             moved in July 2011.
previous monthly best production of
7,121,842 recorded in August 2009. This       The month of July also saw record for a
record did not last long as though since in   combined Satui and Senakin production
June the bar was again raised to 7,459,470    of 14,795,662 BCM. Congratulations go to
BCM.                                          each and every member of the Satui and
                                              the Senakin teams for this outstanding
It is also worth mentioning that the new      performance. Without your commitment
financial year started with a bang, with      this would not have been be possible.
7,372,399 BCM of waste moved in July 2011.
                                              I must also remind our teams at Satui and
seNakiN                                       Senakin that we should continue with all
Senakin has broken daily production           the good work and keeping it safe at the
record several times during May 2011 and      workplace. Records will only be records
so it comes as no surprise that the project   when everyone is safe. Let’s work in a safe
had a record production month with a          and efficient manner and return home safe
total of 7,106,962 BCM of waste moved         each day. Our aim is to achieve the best
at an average 229,257 BCM per day. This       safety records as well as best production
performance surpasses the previous            records. •

                                                                                     11
Project update

 ConTinuing
 To deliVeR
Vale is a major global mining
company and a leading producer
of nickel worldwide. Their nickel
business is Canadian-based with
operations and growth projects
in 20 countries. They are also an
important producer of copper,
precious metals, and cobalt and
a major producer of value-added
specialty nickel products.                     Nickel Plant site, and locally at various
                                               infrastructure locations associated with the
In Indonesia, their subsidiary PT              Plant.
International Nickel Indonesia Tbk, known
locally as Inco, operates open pit nickel      Examples of current projects being
mines and a processing plant in Soroako,       executed in parallel in and around Soroako
Sulawesi. The plants’ energy needs are self-   are:
generated through two large hydro-electric
plants on the Larona River. Inco also owns     »   Construction of a Water Supply Intake
and operates two ports, plus an airport in         Building, Pump and Water Piping Intake
Soroako, and have invested in Healthcare,          Installation - Pekaloa Project: $0.5 million
schooling and large housing schemes in the     »   Mangkasa Point Oil Pump Installation
surrounding neighborhood.                          Project: $0.4m

Over the last 14 years, Thiess Indonesia
                                               »   Sulphur Smelter Refurbish Project – Civil,
                                                   M&E: $0.2 million
have maintained a constant presence at
Inco, executing numerous civil, building,      »   Process Plant - Dryer 1 Multiclone Rebuild
and M&E projects ranging in size from              Project: $0.4 million
$100.000 to $60 million, both within the

  12
Volume 02/2012

          13
»   CCP1- Process Plant Dryer 1,2 & 3 Civil   The projects at Inco vary considerably.
    & Structure Construction Project: $0.3    One of the more challenging risk issues
    million                                   well managed by the site team was the
»   Installation of Reduction Kiln 4 Main     exclusion of some very large crocodiles
    Drive VSD Project: $0.5 million           from the working area of the Water Supply
                                              Intake. The underwater activities were
                                              very carefully planned with the help and
There has been a noticeable increase in       protection of the local villagers who know
both the volume of bids, and the size of      very well their daily movements and habits.
bid packages in June and July 2011, as Vale
were looking to rapidly increase Nickel       We serve Vale well, and are considered
outputs, while diversifying their choice of   by them as their contractor of choice. We
fuel for the plant. Following recent bids,    have started to promote the idea with them
we are currently under consideration for      that at some stage this may develop into a
the $4 million Soroako airport upgrade,       formal alliance. •
a $3 million Coal handling facility within
the Plant, and a structural upgrade of an
existing Screening station worth up to $3
million.

    14
Project update                                                        Volume 02/2012

         amBassadoRial VisiT

On Monday and Tuesday, 12-13 September      the Training Center where he was given
2011, Thiess Indonesia was honored with     a presentation on our Apprenticeship
a visit by the Australian Ambassador to     Program. At the Training Center, the
Indonesia HE Greg Moriarty during his       Ambassador took place in a tree planting
Ambassadorial Visit to East Kalimantan.     ceremony which has become a tradition
                                            when senior dignitaries visit BSF.
BalikPaPaN
His first stop at Thiess Indonesia was at   saNgaTTa
our Balikpapan Support Facility where       On the second day, the Australian
was welcomed by Joko Satianto (BSF          Ambassador visited our Sangatta Project.
Manager) and the BSF Team. After a Safety   Accompanied by Sangatta Project
Induction, he was escorted throughout the   Manager Syah Iran, he toured the site to
site by Warehouse Superintendent Septa      see our mining activities there. The visit
Tarigan, Joko Satianto, Plant Operations    was finished at Melawan Office where he
Manager Balikpapan & Sangatta Jannie        greeted our Sangatta’s employees. •
Koekemoer, Executive Manager – Mining
Ivan Mrsa and Executive Manager Regional
HR Development Bob Davis. The BSF Tour
included time at the Port and warehouse,
plant, the Administration facilities and

                                                                                   15
Project update
                                                                                                            Current Project
                                                                                                            Past Project
       12
            23
                                                                  10

                                                       15                          22
                                              19                 4
                                                       3         8
                 7                                          13
                     9                                 14
                                                   11 1                 16 5                           20
                         17
                                                   2

                              6   24
                                                                                        21
                                                                 18

1.     Senakin Coal Mine (PT. Arutmin Indonesia)                       13.     Samboja Coal Mine (PT. Inkor Prima Coal)
       Senakin, South Kalimantan                                               Samboja, East Kalimantan

2.     Satui Coal Mine (PT. Arutmin Indonesia)                         14.     Kideco (Pasir) Coal Mine
       Satui, South Kalimantan                                                 (PT. Kideco Jaya Agung)
                                                                               Tanah Grogot, East Kalimantan
3.     Melak Coal Mine (Bayan Resources Group)
       Melak, East Kalimantan                                          15.     Tabang Coal Processing Project
                                                                               (PT. Kaltim Supacoal)
4.     KPC Coal Mine (PT. Kaltim Prima Coal)                                   Tabang, East Kalimantan
       Sangatta, East Kalimantan
                                                                       16.     Balambano Dam
5.     Inco Construction Services Project                                      (PT. International Nickel Indonesia)
       (PT. International Nickel Indonesia)                                    Soroako, South Sulawesi
       Soroako, South Sulawesi
                                                                       17.     Musi Pulp Mill (Klockner-INA Germany)
6.     Darajat Unit 3 Geothermal Power Station                                 Palembang, South Sumatera
       (PT. Chevron Geothermal Indonesia)
       Garut, West Java                                                18.     NTT Mine Civil Construction
                                                                               (PT. Newmont Nusa Tenggara)
7.     Suban Phase 2 Gas Treatment Plant                                       Batu Hijau, Sumbawa
       (PT. ConocoPhillips)
       Jambi, Sumatera                                                 19.     Namuk Tailing Dam
                                                                               (PT. Kelian Equatorial Mining)
8.     Bontang Coal Handling Plant                                             Kelian, East Kalimantan
       (PT. Indominco Mandiri)
       Bontang, East Kalimantan                                        20.     Tanah Merah Baru Village (BP Berau Ltd)
                                                                               Berau Bay Babo, Papua
9.     Gas Transmission and Distribution Project:
       Sakernan to Kuala Tungkal                                       21.     General Purpose Wharf
       (PT. Perusahaan Gas Negara)                                             (PT. Prima Lirang Mining)
       Jambi, Sumatera                                                         Wetar Island, Maluku Province

10.    Berau Coal Terminal (PT. Berau Coal)                            22.     Telecommunication Towers
       Berau, East Kalimantan                                                  (Nokia Siemens Networks)
                                                                               Manado, North Sulawesi
11.    Jig and Dense Media Washplants & Port
       Facilities (PT. Arutmin Indonesia)                              23.     Telecommunication Towers (Ericsson
       Senakin, South Kalimantan                                               Indonesia)
                                                                               Medan, North Sumatera
12.    LPG Process Plant (PT. Moeladi for
       Pertamina)                                                      24.     Telecommunication Installation (PT. Mitra
       Pangkalan Brandan, North Sumatera                                       Global Telekomunikasi Indonesia)
                                                                               Central Java

      16
Training & development                                                 Volume 02/2012

    aPPRenTiCe gRaduaTion
On 19 October 2011, Thiess Indonesia         “Thiess Indonesia’s apprentice program is
conducted graduation ceremony for 99         a true implementation of ‘link-and-match’
apprentices Batch XVII at Balikpapan City    concept, where education and training
Hall. The graduates include 52 mechanics,    sector is in line with the need of the
10 welders and 37 auto-electrician,          industry, also ensures all of its graduates
including 6 female graduates. The            could be hired by company”, Mochtar Lutfie
ceremony was inaugurated by Executive        quoted Minister’s written speech.
Director Thiess Indonesia Sam Rumende,
witnessed by Secretary General of Minister   Since 1992, Thiess Indonesia has been
of Manpower and Transmigration Mochtar       recruiting a lot of high schools graduates
Lutfie, Vice Governor of East Kalimantan     to enroll in its 5 year apprentice program.
Farid Wadjdy, Mayor of Balikpapan Rizal      After tight recruitment process, students
Effendi, apprentices’ family and invitees.   will be trained 25% in-class and 75% on-
                                             job at various Thiess Indonesia’s sites. In
“We are very pleased because the program     addition to free of charge, the program has
produces skilled employees who are           been accredited internationally by TAFE
ready to work for Thiess Indonesia. This     Queensland Australia. At the end of the
year, we also welcomed a new batch of        program, the graduates will be hired as full
100 students. Most of them are from high     time employees and deployed to various
schools around Kalimantan. The program       Thiess Indonesia’s sites. In 2008, the
is Thiess Indonesia’s direct commitment      Apprentice Program was selected as The
to education and local community             Best Apprenticeship Program 2007 from
surrounding our sites,” said Sam Rumende     the Indonesian Ministry of Manpower and
in his speech.                               Transmigration. •

                                                                                     17
Training & development

manPoweR
                         On 26 October 2011, Thiess Indonesia was
                         honored to have a visit from Indonesian
                         Minister of Manpower and Transmigration
                         Muhaimin Iskandar at our Balikpapan
                         Training Centre to have a closer look of our

minisTeR
                         award winning Apprenticeship Program.
                         He was accompanied by other government
                         officials, including East Kalimantan Vice
                         Governor Farid Wadjdy and Mayor of
                         Balikpapan Rizal Effendi. The group was

VisiTed
                         welcomed by Executive Director Sam
                         Rumende and Superintendent Technical
                         Training Alusianyah.

                         In his speech, Muhaimin expressed the

TRaining
                         importance of the apprenticeship program,
                         not only to increase labor quality, but
                         also to encourage companies to improve
                         their business productivity through the
                         availability of quality workforce, and in

CenTeR
                         accordance with the competencies they
                         need.

                         “We have more than 5000 companies
                         here in East Kalimantan, but only Thiess
                         Indonesia provides a quality apprentice
                         program,” said Muhaimin quoted by Tribun
                         Kaltim newspaper.

                         During his visit, the Minister also toured
                         our training facility, met apprentices at
                         work, and planted a tree as a token of our
                         commitment to the environment. •

  18
Volume 02/2012

          19
Human Resources

iTB CaReeRs
                                             In mid-October 2011, Thiess
                                             Indonesia recruitment team
                                             and members of Corporate
                                             Communication Team along

exPo
                                             with several key senior Plant and
                                             Mining representatives travelled
                                             to Bandung for the annual ITB
                                             Student Career Expo.

As one of the largest, well known            to questions by students to give better
engineering graduates’ career expos,         understanding of what a career with Thiess
almost all big names of Indonesian mining    Indonesia entails. These features made our
and other heavy industry employers           booth one of the most popular space of the
participated in this exhibition.             event.

Students and graduates who visited our       At this year’s ITB Careers Expo we also
booth during the three days exhibition       introduced an onsite comprehensive testing
got to experience a unique interaction       of eligible graduates for our graduate
via our special iPad program. The booth      program. By the end of the expo, almost
was continuously crowd inviting and          200 chosen ITB graduates followed the 3
productive. The crew also gladly responded   hours comprehensive company testing. •

  20
Human Resources                                                       Volume 02/2012

uPn sTudium
                                             On late November 2011, Thiess
                                             Indonesia Recruitment Specialists
                                             along with members from
                                             Organization Development,

geneRale
                                             Safety, Plant and MEG teams,
                                             travelled to University
                                             Pembangunan Nasional (UPN)
                                             “Veteran” in Yogyakarta.

Thiess Indonesia had been invited            Following the presentations, students had
by Association of Students of Mining         the opportunity to ask questions on topics
Engineering to present at the Studium        of mining processes and safety procedures,
Generale, an annual event where keynote      to Thiess Indonesia’s undergraduate and
representatives from selected Indonesian     graduate programs.
mining companies share their knowledge
and experiences.                             The follow up graduate program testing,
                                             conducted on site by TCI Recruitment
On this occasion, Safety Superintendent      team, netted 106 students for further
BSF Masykur Nazar and, Superintendent        consideration across the disciplines
Mine Planning Eddy Sahputra delivered        of Mining Engineering, Mechanical
informative presentations on Mining Safety   Engineering, Occupational Health & Safety,
and Closure.                                 Accounting and Geology. •

Approximately 150 university students
from University of Gadjah Mada, University
of Diponegoro, and University of Jendral
Soedirman attended the discussion.

                                                                                   21
Community

menTawai
                                               audio-video collections. After its successful
                                               deploy in East Nusa Tenggara, the program
                                               is now brought to the Mentawai Islands,
                                               focusing on areas that were affected by
                                               2010 tsunami and are still in need of urgent

donaTion
                                               assistance.

                                               Each of the two new “Pondasi” is currently
                                               built in Mapinang village, South Pagai
                                               Island, and in Pasapuat village, northern
                                               North Pagai Island. The donated fund will
                                               go towards the physical construction of
                                               both “Rumah Pintar” and their supporting
                                               facilities.
Thiess Indonesia, through one of its
Community Development program “Thiess          This donation is a direct contribution from
Indonesia Peduli”, donated a total of IDR      both employees and the company as a
170 million to the Green Music Foundation      commitment of community development.
for the construction of two “Pondok            All collected funds are specifically allocated
Cerdas Indonesia” (Pondasi) in two villages    towards the rehabilitation phase of areas
in Mentawai Islands. The donation was          affected by disaster. Similar donations had
handed over by Executive Director, Samel       also been previously distributed to victims
Rumende, to Chairman of Green Music            of Aceh tsunami in 2004, Yogyakarta
Foundation, Glenn Fredly, and Director         earthquake in 2006, Padang earthquake in
of Green Music Foundation, Angga Dwi           2009 and Merapi eruption in 2010.
Sasongko at Jakarta Head Office, on
Wednesday, 7 September 2011.                   Currently, the construction of both
                                               “Pondasi” Mentawai has reached their final
“Pondasi” (The Smart House Indonesia) is       stages of completion including provisions
a program originated by Chairman, Glenn        of supporting facilities such as books and
Fredly in the form of a community-based        musical instruments for the library. Both are
school and integrated education center         targeted to be fully functional by the end
that is equipped with a library of books and   of 2011. •

  22
Community                                                              Volume 02/2012

ouR new adoPTed sCHool
After a successful deploy at SDN 005 Manggar Balikpapan, BSF
Community Development team now brings the Teaching Voluntary
program to a new elementary school to broaden their knowledge of
English.

Starting in September 2011, a total of 39     opened by the Mayor of Balikpapan H. Rizal
fifth and sixth grade students of SDN 008     Effendi, SE, together with BSF Manager
Mount Binjai, East Balikpapan Subdistrict,    Joko Satianto. Thiess Indonesia had also
can now follow an intensive English lessons   contributed supporting facilities such as
once every 2-3 weeks through the Teaching     textbooks, desks and chairs to support the
Voluntary implementation. This routine        daily operation of the public facility.
also involves several BSF employees who
work directly as volunteer teachers. SDN      These emphasize the focus of Thiess
008 itself was chosen after a site visit by   Indonesia’s CSR program towards
Business Services Manager Scott Beckwith.     education, and developing the community
The school’s initial assessment has been      surrounding its area of operation.
previously carried out since early 2011.
                                              In the near future, BSF Community
Earlier in 19 June 2011, Thiess Indonesia,    Development team plans to conduct an
in cooperation with the government of         English competition between the two
Balikpapan, has inaugurated the opening of    tutored elementary schools and boost more
a public library named “The Smart Garden”.    activities at the East Balikpapan Smart
The facility, located in Jl. Mulawarman,      Garden. •
Manggar, East Balikpapan, was officially

                                                                                   23
environment

saVe
BalikPaPan’s
CoRal Reef
               The coral reef ecosystem in the
               waters of Balikpapan is now
               in very poor condition. Data
               from the Balikpapan Marine and
               Fisheries Service show that only
               26% of the current reef population
               is in good condition.

 24
Volume 02/2012

The damage has a direct impact on levels       The event was attended by Business
of coastal erosion as well as the lack of      Service Manager Scott Beckwith and Thiess
breeding area for marine life which leads      Balikpapan Management, as well as the
to the reduction of catch for the local        Mayor of Balikpapan H. Imdaad Hamid SE,
fishermen.                                     Head of Balikpapan Marine and Fisheries
                                               Service, Head of Balikpapan Tourism
iNTeNse CooPeraTioN                            Service, Representatives of Balikpapan
In an attempt to improve this situation,       Environmental Institution, related East
Thiess Indonesia in partnership with           Balikpapan government officials, other
the Balikpapan government, sent                company representatives and local
representatives to Serangan Village, Bali,     fishermen.
to study a coral reef rehabilitation program
which has been successfully implemented        In his welcome speech, the Mayor conveyed
by local fishermen there. The delegate         his appreciation for Thiess Indonesia’s
team included four fishermen, an officer       contribution in coral reef conservation and
from the Balikpapan Marine and Fisheries       how he looks forward to similar initiatives
Service and BSF Community Development          from other companies in Balikpapan.
& Relation Officer Makmur.
                                               This ceremony marked the beginning of
The study visit resulted in a plan to          our reef rehabilitation and conservation
implement a similar rehabilitation plan in     program. Going forward, the BSF
the coastal area near BSF. On 15 March 2011,   Community Development team together
the BSF Community Development team             with local fishermen will continue to
and local fishermen ceremoniously planted      monitor the growth of the planted reefs
nine reef balls and four transplantation       regularly. •
tables in the Manggar Coast near BSF
office.

                                                                                     25
Environment

tree planting
around indonesia
In commemoration of World Environment Day on 5 June 2011,
the International Year of Forestry 2011, and in the spirit of a new
Environmental Policy, Thiess Indonesia has declared a commitment
towards tree planting.

The planting was held in all areas of         development of fisheries, etc.), Meranti,
Thiess Indonesia’s projects including         Ulin and Durian Hutan (as rare trees).
South Kalimantan (Kelumpang Bay               Approximately 1.900 trees were planted;
Nature Reserve, Senakin and Satui), East      1.200 mangrove trees and 700 other
Kalimantan (Melak, Sangatta and Coastal       mixture of different species.
Conservation barnacles, Balikpapan),
Soroako (South Sulawesi) and Jakarta Head
Office (Regions Ecotourism mangrove Toll      jakarta
Sedyatmo Pantai Indah Kapuk, North Coast      On 24 November 2011, Thiess Indonesia
Jakarta).                                     in cooperation with BKSDA DKI Jakarta
                                              planted 1.000 mangrove trees at the
All placed plants have either economic or     conservation area in Jakarta’s North Coast.
ecological functions/conservation. Plants     This represents the company’s commitment
with economic function (to improve the        towards environmental conservation and
economy of the population), include           the balance of the coastal environment, in
Mango, Sengon, Trembesi, Johar, Mahogany,     accordance with the new environmental
Lamtoro, etc. As for plants with ecological   policy “Smaller Footprint Bigger Future”.
function/ conservation include Mangrove
and Sea Pines (to reduce abrasion, wildlife
habitat restoration, coastal green belt,

  26
Volume 02/2012

saTUi                                            where each school was given 30 seedlings
Themed “Forest: Nature at Your Service”,         to be planted around the school. On each
the World Environment Day 2011 focused           activity, students were also gathered to
on increasing awareness of the importance        discuss the importance of tree planting
of forests preservation in human life.           and what they can do to preserve the
Correspondingly, Thiess Indonesia                environment.
launched a new Environmental Policy in
which tree planting become employees’            seNakiN
responsibilities on every project.               Coal mining process in general often brings
Employees’ commitment was collected via          an adverse impact to its surrounding
intranet, in which 181 people committed to       environment. Hence, an effective and well
plant trees in Thiess Indonesia Satui Project.   managed organization and monitoring are
                                                 crucial to minimize these impacts.
Another implemented program was the
“Green Schools and Green Talk” activities        In commemoration of World Environment
held at six elementary schools around            Day 2011, Thiess Indonesia Senakin Project
the project: SD Pabilahan, SDN 1 Sungai          held a tree planting activity on 13 June
Cuka, SD Trans, SDN 1 Sungai Danau, SDN
3 Sungai Danau and SDN 5 Sungai Danau.
The event was held on 4-5 November 2011

                                                                                       27
28
Volume 02/2012

2011 at areas of Port Sembilang, next to   The second tree planting was held at Wilas
the Kelumpang Bay’s conservation area.     Village’s Junior High School on 21 June 2011
Approximately 200 mangrove trees and 38    as a part of our community program, where
Australian sea pines were planted by 145   students and teachers planted 10 mango
employees of Thiess Indonesia, Arutmin     trees around the school area. It is hoped
and other subcontractors committed to      that this activity will encourage an early
preserving the environment. The mangrove   environmental awareness on the children. •
planting in Kelumpang Bay’s conservation
area was also supported by the local
Natural Resources Conservation Center
(BKSDA).

                                                                                  29
safety

adHiTama (gold) awaRd
Directorate of Mineral and Coal of Indonesian Ministry of Mines and
Mineral Resources together with an independent team from University
of Indonesia conducted regular safety audit across all mine sites in
Indonesia.

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Volume 02/2012

As the result, Thiess Indonesia Senakin site   These are very prestigious safety awards
received the Aditama (Gold) Award, for         and a fantastic achievement for the Senakin
mining contractors category. The award         Mine Project. The challenge going forward
was presented by the General Director          will be to maintain and improve the HSE
Thamrin Sihite to Senakin Deputy Project       culture on all levels and to ensure that
Manager Agung Y. Bayutomo on behalf            “Everyone Safe Everyday” remains our top
of Thiess Indonesia during a presentation      priority.
ceremony in Jakarta, 24 November 2011. In
conjunction with this, our client PT Arutmin   Congratulations! •
Indonesia Senakin Site also received the
Best of the Best (Overall) gold award for
mining companies in Indonesia.

                                                                                     31
safety

              A ceremony organised by the Ministry of

golden flag
              Manpower and Transmigration was held in
              Jakarta on 31st May 2011 to award Golden
              Flag (Safety) achievements to participating
              companies. The event was attended by
              representatives from all our Projects.

awaRds
 32
              The Golden Flag awards are issued to
              organisations achieving a score greater
              than 85% in the regulated (Per.05/
              MEN/1996,OHS Systems, Chapter 6, Article
              7{1}) Sistem Manajemen Keselematan
              Kesehatan Kerja (SMK3) Audit program.
Volume 02/2012

exCelleNCe sCores!                            Well done to all those participating in
External Auditors conducted the SMK3          ensuring a successful system compliance
Audits on each of our Projects last year      audit result. Let’s continue with this
during the month of July. The results of      performance so that everyone is safe
these audits clearly indicated the strength   everyday. •
in our system compliance, with excellent
audit result scores ranging from 94% to
98%. And where only a few organisations
achieve 98% within Indonesia, Thiess
Indonesia had three Projects achieve this
score; BSF, Sangatta, and Tabang.

                                                                                   33
innovation

               CeRTified CaT 16H
                            REBUIlD PROGRAMME

The first Rebuild Program case study            Prior to the machine’s arrival, two 16H
was performed by Superintendent –               Graders were stripped for components to
Plant Operations BSF, Soesanto and              support the rebuild program. The machine
his engineering team to improve the             was disassembled to the chassis, and all
performance of the new CAT M Graders            major components were sandblasted and
that previously failed to meet set              undercoated. Welding and Fabrication
expectations. This was proven to be a           Shop Superintendent, Lamaji Murdi and
viable decision, reinforcing the option to      team were given the task to carry out all
rebuild as opposed to replace.                  welding/fabrication repairs to the major
                                                components—the cabin being particularly
The first machine to be rebuilt was the         most time consuming. All pin and bush
GR7822 16H, serial no. 6JZ00690, with           areas on the components were rebuilt to
total machine hours of 51,647 hours. BSF        OEM specification.
Workshop Superintendent, Agus Wahyudi
appointed LH Mechanic Specialist Herry          Trakindo was then entrusted with
Djunianto to coordinate the program. His        transmission and differential overhaul,
first task was to refurbish hydraulic and       while BSF rebuilt all other components
pneumatic hoses / valves and clamps,            and purchased a new engine. The later
paying particular attention to the cab which    was decided as rebuild cost was 92% of
had to be in perfect condition. Electrical      replacement cost of the engine. •
Supervisor Yan Alfian and his auto
electrician team then replaced its electrical
harnesses and air conditioner components.

  34
our People                                                              Volume 02/2012

 ouR new CommissioneRs
                                         BamBang seTiawan
                                         Mr Setiawan, 61, joined the Thiess Indonesia
                                         Board of Commissioners in May 2011. Prior
                                         to his appointment, Bambang’s last position
                                         in the Government was Director General of
                                         Mineral and Coal, a position he held since July
                                         2008 to April 2011.

                                         Bambang brings a lot of experience in mining
                                         to the position. He will be working closely
                                         with our mining team.

gemBong PRiyono
Mr Priyono, 65, joined the Thiess Indonesia
Board of Commissioners in December 2011.
Prior to his appointment, Gembong ‘s last
position in the Government was Secretary to
Vice President Jusuf Kalla from 2005 to 2007.

He is currently the President Commissioner of
PT Jasa Marga and brings a lot of experience
in toll roads and infrastruction. He will be
working closely with our toll road team.

                                         seTia PuRwaka
                                         Mr Purwaka, 61, joined the Thiess Indonesia
                                         Board of Commissioners in December
                                         2011. Prior to his appointment, Setia’s last
                                         position in the Government was Head of the
                                         Presidential Staff.

                                         He is a Major General of the Indonesian Army
                                         and brings with him an extensive experience
                                         in government and military relations. He will
                                         be working closely with our government
                                         relations and security teams.

                                                                                    35
our People

                The collapse of Mahakam
             Bridge in Kutai Kartanegara,
              East Kalimantan still leaves
                    stories and questions
             unanswered. The 710 meters
                  long icon that connects
              Tenggarong Seberang with
              Tenggarong Kota collapsed
               on Saturday, 26 November
               2011, taking 21 lives and 17
                others which remained in
              search by the Rescue team.

 36
Volume 02/2012

               saVed By THe seaTBelT
                   SURVIVING ThE MAhAKAM BRIDGE COllAPSE

Rianoor Fuad, an employee of Thiess              off my seatbelt, opened the door lock and
Indonesia Melak project, was on that bridge      went out as soon as I could. Then I went
that day. This is his survival story of how      to help the other passengers,” he said
nurturing a safety habit helped save his life.   remembering his struggle that day.

FroM Bridge To dePTHs oF THe                     Still in shock, Rian sat at the top of the car
MaHakaM river                                    before swimming back to the ground to
“Tragedy!” was the first word Rian—how           get some help. “After calming myself down,
he is usually known—said when sharing the        I swam to the ground and looked for the
intense moments of the bridge’s collapse         nearest hospital to get proper treatment. I
into the depths of Mahakam River. “I was         got three stitches on a torn wound on my
travelling from Melak to Balikpapan that         ear.”
day. It went so fast. The big, strong bridge
collapsed in a blink of an eye,” told Rian.      “THe seaTBelT saved My liFe”
“I was in a very good condition during           “I always put on my seatbelt every time I
the trip. It was around 4 PM when our            am in the car. It is as if something is missing
car slowly entered the Mahakam bridge.           if I do not buckle up.”
We were at its first 10 meters when the
first pillar of the bridge suddenly tilted to    “That day, I was the only passenger with
the left. And within seconds, the bridge         the seatbelt on. I suffered only minor
collapsed straight below.”                       injuries and stitches on the ear, while others
                                                 suffered much severe ones, including
“Fortunately, thanks to a safety standard        broken bones,” told Rian.
habit, my seatbelt was well attached when
it happened. My body instantly tilted to the     The incident was a special lesson for Rian,
left as the car dropped on such an angle         and a harsh warning for all of us on the very
along with the collapse. Half of the car         importance of fastening seatbelts during
was already filled with water. It would be a     rides. “I want to share this experience to
totally different story if I did not wear my     remind people how important it is to fasten
seatbelt,” explained Rian.                       your seatbelts while travelling, and to
                                                 always stay alert during rides. Staying in a
“We fell so fast, there was only water on        good conscious mind will keep us aware of
the left and right side of the windows.          the circumstances happening around us.”
The water has reached the car’s ceiling. 5
people were trapped inside, 4 passengers         A thorough implementation of Safety
and a driver. I was right behind the driver’s    Culture is the most effective method to
seat, right next to the car’s right door.”       prevent accidents. This implementation
                                                 should be reflected on how safety habits
“Luckily, we were still able to open the         are nurtured, whether at work, or every day
right door. The left one was jammed into         in our daily lives. Together, let us create
the bridge’s fence at the drop. Looking at       “Everyone Save, Every Day”. •
the rapidly filling water, I immediately took

                                                                                           37
ouR awaRds lisT
»   2011 GOLDEN FLAG AWARDS from           »   2010 GOLDEN FLAG AWARD FROM
    THE MINISTRY OF MANPOWER AND               SUCOFINDO
    TRANSMIGRATION                             Received for excellence in OHS
    Received for Excellence in OHS             management system at Sangatta,
    Management System at Balikpapan,           Senakin and Satui Project
    Sangatta, Satui, Senakin and Tabang
    sites.                                 »   2010 HEALTH AND SAFETY
                                               PERFORMANCE AWARD FROM CLIENT
»   2011 BEST BIPARTITE AGREEMENT              KALTIM PRIMA COAL
    AWARD IN EAST KALIMANTAN from              Received for achieving 2 million
    MINISTRY OF MANPOWER AND                   manhours LTI Free at Sangatta Coal Mine
    TRANSMIGRATION                             Project
    Received for Excellence in Bipartite
    Agreement at Sangatta site.            »   2010 SAFETY AWARD FROM THE
                                               GOVERNMENT OF SOUTH SULAWESI
»   2011 ADITAMA AWARD from THE                PROVINCE
    MINISTRY OF ENERGY AND MINERAL             Received for strong performance in OHS
    RESOURCES                                  implementation at Inco Project site
    Received for Excellence Safety
    Performance at Senakin site.           »   2010 Customs and Excise Award dari
                                               Directorate General of Customs and
»   2011 KALTIM EDUCATION AWARD FROM           Excise
    GOVERNOR OF EAST KALIMANTAN                Received for the Highest Import Duty
    Received for the Best Company in           Contribution in East Kalimantan in 2009
    Education Support in East Kalimantan
                                           »   2009 ADITAMA MINING SAFETY AWARD
»   2010 LKS BIPARTITE BRONZE AWARD            FROM MINISTRY OF ENERGY AND
    FROM THE REGENT OF EAST KUTAI              MINERAL RESOURCES REPUBLIC OF
    Received for excellence Bipartite          INDONESIA
    implementation at Sangatta Coal Mine       Received for excellence in OHS
    Project                                    management at Satui Coal Mine Project

»   2010 SAFETY AND HEALTH                 »   2009 ZERO LTI AWARD FROM MINISTRY
    PERFORMANCE AWARD FROM                     OF MANPOWER AND TRANSMIGRATION
    DIRECTORATE OF MINERAL, COAL AND           Received for booked free LTI during
    GEOTHERMAL                                 01 Nov 2005 - 31 December 2008
    Received for Safety and Health
    performance at Senakin Coal Mine
    Project

    38
Volume 02/2012

»   2009 HEALTH AND SAFETY                    »   2008 BEST APPRENTICESHIP PROGRAM
    PERFORMANCE AWARD FROM CLIENT                 AWARD MINISTRY OF MANPOWER AND
    KALTIM PRIMA COAL                             TRANSMIGRATION
    Received for achieving 5 million              Received for excellence performance of
    manhours LTI Free at Sangatta Coal Mine       apprentice program in 2007
    Project

                                                                                   39
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