Managing Contractor’s Community Development

for Operation Sustainability by Contractor Engagement

Balikpapan, September 03th, 2014

Johnson Har Anom

Head of Contractor Management

PT. Indo Tambangraya Megah Tbk.

KALIMANTAN COAL

Contractor Management 2

WORKING EXPERIENCES:

o BANPU Public Company Limited, November 2004 - present

• PT. ITM Tbk, 2010 - Present : Head of Contractor Management

• BANPU PCL (Bangkok), 2007 - 2010 : Division Manager - Corporate System

• PT. ITM Tbk, 2004 - 2007 : Manager - Business Process & Change

Management

o Ednovation Pte. Ltd. (Singapore),

o 2001 - 2004 : Manager - Software/System Integration

o Daiichi Media Pte. Ltd. (Singapore),

o 2000 - 2001 : Multimedia Specialist

o PT. Trinet Pacific International (Jakarta),

o 1999 – 2000 : IT Consultant

o PT. SONEL.Com (Yogyakarta),

o 1998 - 1999 : Multimedia Manager

o PT MULTIVIEW TM (Yogyakarta), 1994 - 1998

• 1995 - 1998 : Multimedia/Project Manager

• 1994 - 1995 : Multimedia Instructor

Johnson Har Anom Your Presenter

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Why Community Development?

- Requirements from Government

- Local License

- Corporate Social Responsibility

- Company’s Moral Obligation

- Empowering Local Community to be Able to

Participate in Our Operation

- Preparing Local Community to be independent after

our Mining Operation Ended

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Why Community Development?

Is Community Development

Important for our Mining

Operation?

Is There Any Impact Resulted

From Community Development to

Mining Operation?

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Internal factors:

- Technical:

Geological data, Mine planning, etc.

- Non-Technical:

Finance, Management, Human resources,

etc.

External factors:

1. Permits

2. Land compensation

3. Community/ stakeholders support

Mine Stockyard

Coal Crushing Coal Washing

Clear & Grub Activity

Dumping Activity

Overburden Removal + Blasting

Coal Mining ROM Stock

Coal Hauling to Port

Port Stockyard

Oversea Conveyor

Overland Conveyor

Coal Loading

Mine Reclamation

“Acceptance”

“License to

Operate”

Com-Dev and Mining Operation

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Com-Dev and Mining Operation

Problems in Mining Operation

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Why Our ComDev Programme is Not Effective?

- Lack of Knowledge

- Lack of Man Power

- Lack of Funds

- Lack of Strategy and Implementation

- Lack of Communication

- Contractor:

- Redundancy in Comdev Programme

- Unhealthy Competition in Comdev Programme

Com-Dev and Mining Operation

“Acceptance” “License to Operate”

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Principal Contractor

What to Do With It?

ComDev and Mining Operation

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ComDev and Mining Operation

PRINCIPAL CONTRACTOR

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ComDev and Mining Operation

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CMS - ComDev

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CMS - ComDev

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Synergy

• Stronger and united

• Better coordination of all

related parties

• Sharing of knowledge, good

practice and information

Effective management • Time saving for all related parties

• Wider range of services for

beneficiaries

• More integrated approach to local

needs

• Positive PR opportunities with

less duplication

13

CMS - ComDev

Financial savings • Sharing budget

• Better use of existing

resources

Benefit gained from the

Collaboration in CD Projects

Sharing of risk • Win-win possibilities

• More participation view

• Solving shared problems;

pursuing shared

objectives

• Acknowledging the

uncertainty

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14

CMS - ComDev

Aspects to be

measured:

Performance Indicators of CMS-CD

Commitment

Organization Competency

Delivery

Empowerment

Agreements signed Joint action

plans for 2014 CD projects

Collaboration in CD competency

development programs

Number of collaborated CD programs Increased

number of beneficiaries with lower budgets

Number of training courses provided for villagers

Number of groups formed – group management

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CMS - ComDev

Development Stage of CMS-CD

• Build common thoughts of CD between ITM and Contractors at all sites

• Build equal competency of CDO’s of ITM and Contractors in CD-PDCA

• Establish forum collaboration between ITM and Contractors, for permanent sharing of

experiences and programs

• Put CMS-CD in contractors activity and appraisal

• Establish the system • Integrate CD as part of

operation strategy

P D

C A

P D

C A

P D

C A

P D

C A

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Internal Meeting with Operation Support, EMC 2013

Comparative Study with ASTRA International Tbk

HSEC Meeting in Bangkok 1st Internal introduction

Short Technical Training on CD-CSR for KTD Employee and Contractors

Initial Meeting with PAMA to get input

CMS - ComDev

Journey to CMS-ComDev

Contractor Management

Kick Off CMS-CD, Jakarta

Kick Off CMS-CD Site and workshop

Journey to CMS-ComDev

CMS - ComDev

Contractor Management

Principal and Contractors can manage social-

external issues that may affect the Mining Operation

through early warning system and mitigate those

risks together continuously

Principal as well as Contractor’s Mining operation

can run smoothly without any serious social

(external) disturbance

Result

Contractor Management

Documentation

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Documentation

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Open Discussion

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Johnson Har Anom

+62-87896454468 Johnson_A@banpuindo.co.id