Volume 02/2012

Toll Road ConCession agReemenTs

melak exTensionTRee PlanTing

aRound indonesia

English Version

1000 Mangrove Tree PlantingJakarta

24 November 2011

dear readers,Thiess Indonesia has a long history of developing communities around us. We run a number of ongoing health and education programs across our sites. In recent months, our environmental initiatives have taken on greater importance as our initiatives now reach beyond our 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.

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.

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, Gembong Priyono and Setia Purwaka. I am confident under their guidance Thiess Indonesia is poised for greater growth.

These stories and more can be found in this edition of ExperThiess. I hope you will enjoy our latest edition of ExperThiess.

Best regards.

Roy OlsenPresident Director

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Volume 02/2012

Cover:Students of SDN 008 Gunung Binjai Balikpapan Timur, Kalimantan Timur, adopted school of Thiess Indonesia

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Copyright © 2012 PT Thiess Contractors Indonesia. All rights reserved.

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Contents

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ProJeCT UPdaTe6 Toll Road Concession Agreements8 Melak Extension10 Great Performance! Best Production Ever12 Continuing to Deliver15 Ambassadorial Visit

TraiNiNg & develoPMeNT17 Apprentice Graduation18 Manpower Minister Visited Training Center

HUMaN resoUrCes20 ITB Careers Expo21 UPN Studium Generale CoMMUNiTy22 Mentawai Donation23 Our New Adopted School

eNviroNMeNT24 Save Balikpapan’s Coral Reef26 Tree Planting Around Indonesia

saFeTy30 Adhitama (Gold) Award32 Golden Flag Awards

iNNovaTioN34 Certified Cat 16H Rebuild Programme

oUr Pe0Ple35 Our New Commissioners 36 Saved by the Seatbelt

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Volume 02/2012

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 Concession Agreements were signed by myself as President Director of our toll road subsidiaries and Ir. Achmad Gani Ghazaly Akman as Head of the Indonesian Toll Road Authority or Badan Pengatur Jalan Tol (BPJT). The signing took place at the BPJT office and was witnessed by the Vice Minister of Public Works, Dr. Ir. Achmad Hermanto Dardak, MSc. Coincidentally, the date of signing is also the same date as BPJT’s sixth anniversary. It was a good sign to be signing on a lucky date.

As you may know, the toll road projects will include construction, maintenance and operation of three major sections: the Solo-Ngawi and Ngawi-Kertosono sections of the Trans Java as well as the Cinere-Serpong section of the Jakarta Outer Ring Road 2 (JORR2). I am pleased to report to you that the Concession Agreement has a period of 35 years and an approximate

Toll Road ConCession agReemenTs

investment value of U$1.3 billion. These are major infrastructure projects!

The Trans Java toll roads are to be delivered as Public Private Partnerships (PPP) under the Government’s initiative to enhance investment in what is recognized as badly need infrastructure in the country. Under PPP scheme, the Government provides subsidies in the form:

» Funding/financing of the whole of the land acquisition for Solo–Kertosono toll road;

» Funding/financing, Design and Construction for the distance of approximately 60 Km.

This means our toll road subsidiaries only construct 118.71 Km of roadway, but will toll approximately 180 Km and obtain the full tolling benefit from what is expected to be

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Project update

the most heavily used Solo end of the toll road.

In Jakarta alone, it is estimated that 1,200 new vehicles join the city’s already congested roads every day. In a recent report, the Jakarta administration predicts that without new roads or any further infrastructure development, the city would reach total traffic gridlock by 2012! So although the Cinere-Serpong section will only connect commuters from the West to the South of Jakarta, the section is expected to ease quite a substantial amount of traffic.

The Government has also placed a high priority on the completion of the Trans Java toll road in order to enhance economic development in Central and East Java. The Trans Java toll road links Jakarta to Merak in the west and to Surabaya in the east, total 682 Km. For Thiess Indonesia, all this means we have enormous works to be done ahead of us.

President Susilo Bambang Yudhoyono has given the Ministry of Public Works, effectively BPJT, a deadline of 2014 to complete construction of these toll roads.

As such, our schedule of works is expected to be as follows:

For Trans JavaLand acquisition completion: Early 2013Construction period: Mid 2012 to September 2014Operation start: October 2014 For JORR2Land acquisition completion: Mid 2013Construction period: Mid 2013 to Late 2014Operation start: January 2015

For the 180 Km Solo-Ngawi-Kertosono sections, the road will be a 2-lane highway with a design speed of 120km/hr and is expected to have a tariff of Rp 650/Km for Class I (2014). For the 10 Km Cinere-Serpong section, the highway will be a 3-lane road with a design speed of 100km/hr and will have a tariff of Rp 840/km for Class I (2015). During the operation periods, our toll road companies shall be entitled to an adjustment of the toll tariff once every 2 years, based on the ongoing regional inflation rate. •

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Volume 02/2012

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Project update

melak exTensionOn 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. •

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Project update

GREAT PERFORMANCE!

BesT PRoduCTion eVeR

This has been a great year for Satui and Senakin with production records at an unbelievable all-time high.

saTUiIn May 2011, Satui recorded its best-ever production month with a total of 7,194,958 BCM of waste moved surpassing the previous monthly best production of 7,121,842 recorded in August 2009. This record did not last long as though since in June the bar was again raised to 7,459,470 BCM.

It is also worth mentioning that the new financial year started with a bang, with 7,372,399 BCM of waste moved in July 2011.

seNakiNSenakin has broken daily production record several times during May 2011 and so it comes as no surprise that the project had a record production month with a total of 7,106,962 BCM of waste moved at an average 229,257 BCM per day. This performance surpasses the previous

monthly best production of 6,297,040 BCM recorded in October 2009 at Senakin.

Not to be outdone, Senakin followed that record with an impressive 6,920,183 BCM of waste moved in June as well as a new all-time record of 7,423,263BCM of waste moved in July 2011.

The month of July also saw record for a combined Satui and Senakin production of 14,795,662 BCM. Congratulations go to each and every member of the Satui and the Senakin teams for this outstanding performance. Without your commitment this would not have been be possible.

I must also remind our teams at Satui and Senakin that we should continue with all the good work and keeping it safe at the workplace. Records will only be records when everyone is safe. Let’s work in a safe and efficient manner and return home safe each day. Our aim is to achieve the best safety records as well as best production records. •

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Volume 02/2012

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.

In Indonesia, their subsidiary PT International Nickel Indonesia Tbk, known locally as Inco, operates open pit nickel mines and a processing plant in Soroako, Sulawesi. The plants’ energy needs are self-generated through two large hydro-electric plants on the Larona River. Inco also owns and operates two ports, plus an airport in Soroako, and have invested in Healthcare, schooling and large housing schemes in the surrounding neighborhood.

Over the last 14 years, Thiess Indonesia have maintained a constant presence at Inco, executing numerous civil, building, and M&E projects ranging in size from $100.000 to $60 million, both within the

Nickel Plant site, and locally at various infrastructure locations associated with the Plant.

Examples of current projects being executed in parallel in and around Soroako are:

» Construction of a Water Supply Intake Building, Pump and Water Piping Intake Installation - Pekaloa Project: $0.5 million

» Mangkasa Point Oil Pump Installation Project: $0.4m

» Sulphur Smelter Refurbish Project – Civil, M&E: $0.2 million

» Process Plant - Dryer 1 Multiclone Rebuild Project: $0.4 million

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Project update

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Volume 02/2012

» CCP1- Process Plant Dryer 1,2 & 3 Civil & Structure Construction Project: $0.3 million

» Installation of Reduction Kiln 4 Main Drive VSD Project: $0.5 million

There has been a noticeable increase in both the volume of bids, and the size of bid packages in June and July 2011, as Vale were looking to rapidly increase Nickel outputs, while diversifying their choice of fuel for the plant. Following recent bids, we are currently under consideration for the $4 million Soroako airport upgrade, a $3 million Coal handling facility within the Plant, and a structural upgrade of an existing Screening station worth up to $3 million.

The projects at Inco vary considerably. One of the more challenging risk issues well managed by the site team was the exclusion of some very large crocodiles from the working area of the Water Supply Intake. The underwater activities were very carefully planned with the help and protection of the local villagers who know very well their daily movements and habits.

We serve Vale well, and are considered by them as their contractor of choice. We have started to promote the idea with them that at some stage this may develop into a formal alliance. •

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amBassadoRial VisiT

On Monday and Tuesday, 12-13 September 2011, Thiess Indonesia was honored with a visit by the Australian Ambassador to Indonesia HE Greg Moriarty during his Ambassadorial Visit to East Kalimantan.

BalikPaPaNHis first stop at Thiess Indonesia was at our Balikpapan Support Facility where was welcomed by Joko Satianto (BSF Manager) and the BSF Team. After a Safety Induction, he was escorted throughout the site by Warehouse Superintendent Septa Tarigan, Joko Satianto, Plant Operations Manager Balikpapan & Sangatta Jannie 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

the Training Center where he was given a presentation on our Apprenticeship Program. At the Training Center, the Ambassador took place in a tree planting ceremony which has become a tradition when senior dignitaries visit BSF.

saNgaTTaOn the second day, the Australian Ambassador visited our Sangatta Project. Accompanied by Sangatta Project Manager Syah Iran, he toured the site to see our mining activities there. The visit was finished at Melawan Office where he greeted our Sangatta’s employees. •

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Volume 02/2012Project update

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1. Senakin Coal Mine (PT. Arutmin Indonesia) Senakin, South Kalimantan

2. Satui Coal Mine (PT. Arutmin Indonesia) Satui, South Kalimantan

3. Melak Coal Mine (Bayan Resources Group) Melak, East Kalimantan

4. KPC Coal Mine (PT. Kaltim Prima Coal) Sangatta, East Kalimantan

5. Inco Construction Services Project (PT. International Nickel Indonesia) Soroako, South Sulawesi

6. Darajat Unit 3 Geothermal Power Station (PT. Chevron Geothermal Indonesia) Garut, West Java

7. Suban Phase 2 Gas Treatment Plant (PT. ConocoPhillips) Jambi, Sumatera

8. Bontang Coal Handling Plant (PT. Indominco Mandiri) Bontang, East Kalimantan

9. Gas Transmission and Distribution Project: Sakernan to Kuala Tungkal (PT. Perusahaan Gas Negara) Jambi, Sumatera

10. Berau Coal Terminal (PT. Berau Coal) Berau, East Kalimantan

11. Jig and Dense Media Washplants & Port Facilities (PT. Arutmin Indonesia) Senakin, South Kalimantan

12. LPG Process Plant (PT. Moeladi for Pertamina) Pangkalan Brandan, North Sumatera

13. Samboja Coal Mine (PT. Inkor Prima Coal) Samboja, East Kalimantan

14. Kideco (Pasir) Coal Mine (PT. Kideco Jaya Agung) Tanah Grogot, East Kalimantan

15. Tabang Coal Processing Project (PT. Kaltim Supacoal) Tabang, East Kalimantan

16. Balambano Dam (PT. International Nickel Indonesia) Soroako, South Sulawesi

17. Musi Pulp Mill (Klockner-INA Germany) Palembang, South Sumatera

18. NTT Mine Civil Construction (PT. Newmont Nusa Tenggara) Batu Hijau, Sumbawa

19. Namuk Tailing Dam (PT. Kelian Equatorial Mining) Kelian, East Kalimantan

20. Tanah Merah Baru Village (BP Berau Ltd) Berau Bay Babo, Papua

21. General Purpose Wharf (PT. Prima Lirang Mining) Wetar Island, Maluku Province

22. Telecommunication Towers (Nokia Siemens Networks) Manado, North Sulawesi

23. Telecommunication Towers (Ericsson Indonesia) Medan, North Sumatera

24. Telecommunication Installation (PT. Mitra Global Telekomunikasi Indonesia) Central Java

Current Project

Past Project

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Project update

On 19 October 2011, Thiess Indonesia conducted graduation ceremony for 99 apprentices Batch XVII at Balikpapan City Hall. The graduates include 52 mechanics, 10 welders and 37 auto-electrician, including 6 female graduates. The ceremony was inaugurated by Executive Director Thiess Indonesia Sam Rumende, witnessed by Secretary General of Minister of Manpower and Transmigration Mochtar Lutfie, Vice Governor of East Kalimantan Farid Wadjdy, Mayor of Balikpapan Rizal Effendi, apprentices’ family and invitees.

“We are very pleased because the program produces skilled employees who are ready to work for Thiess Indonesia. This year, we also welcomed a new batch of 100 students. Most of them are from high schools around Kalimantan. The program is Thiess Indonesia’s direct commitment to education and local community surrounding our sites,” said Sam Rumende in his speech.

aPPRenTiCe gRaduaTion“Thiess Indonesia’s apprentice program is a true implementation of ‘link-and-match’ concept, where education and training sector is in line with the need of the industry, also ensures all of its graduates could be hired by company”, Mochtar Lutfie quoted Minister’s written speech.

Since 1992, Thiess Indonesia has been recruiting a lot of high schools graduates to enroll in its 5 year apprentice program. After tight recruitment process, students will be trained 25% in-class and 75% on-job at various Thiess Indonesia’s sites. In addition to free of charge, the program has been accredited internationally by TAFE Queensland Australia. At the end of the program, the graduates will be hired as full time employees and deployed to various Thiess Indonesia’s sites. In 2008, the Apprentice Program was selected as The Best Apprenticeship Program 2007 from the Indonesian Ministry of Manpower and Transmigration. •

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Volume 02/2012Training & development

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

In his speech, Muhaimin expressed the 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 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. •

manPoweR minisTeR VisiTed TRaining CenTeR

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Training & development

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Volume 02/2012

In mid-October 2011, Thiess Indonesia recruitment team and members of Corporate Communication Team along with several key senior Plant and Mining representatives travelled to Bandung for the annual ITB Student Career Expo.

iTB CaReeRs exPo

As one of the largest, well known engineering graduates’ career expos, almost all big names of Indonesian mining and other heavy industry employers participated in this exhibition.

Students and graduates who visited our booth during the three days exhibition got to experience a unique interaction via our special iPad program. The booth was continuously crowd inviting and productive. The crew also gladly responded

to questions by students to give better understanding of what a career with Thiess Indonesia entails. These features made our booth one of the most popular space of the event.

At this year’s ITB Careers Expo we also introduced an onsite comprehensive testing of eligible graduates for our graduate program. By the end of the expo, almost 200 chosen ITB graduates followed the 3 hours comprehensive company testing. •

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Human Resources

On late November 2011, Thiess Indonesia Recruitment Specialists along with members from Organization Development, Safety, Plant and MEG teams, travelled to University Pembangunan Nasional (UPN) “Veteran” in Yogyakarta.

uPn sTudium geneRaleThiess Indonesia had been invited by Association of Students of Mining Engineering to present at the Studium Generale, an annual event where keynote representatives from selected Indonesian mining companies share their knowledge and experiences.

On this occasion, Safety Superintendent BSF Masykur Nazar and, Superintendent Mine Planning Eddy Sahputra delivered informative presentations on Mining Safety and Closure.

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

Following the presentations, students had the opportunity to ask questions on topics of mining processes and safety procedures, to Thiess Indonesia’s undergraduate and graduate programs.

The follow up graduate program testing, conducted on site by TCI Recruitment team, netted 106 students for further consideration across the disciplines of Mining Engineering, Mechanical Engineering, Occupational Health & Safety, Accounting and Geology. •

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Volume 02/2012Human Resources

Thiess Indonesia, through one of its Community Development program “Thiess Indonesia Peduli”, donated a total of IDR 170 million to the Green Music Foundation for the construction of two “Pondok Cerdas Indonesia” (Pondasi) in two villages in Mentawai Islands. The donation was handed over by Executive Director, Samel Rumende, to Chairman of Green Music Foundation, Glenn Fredly, and Director of Green Music Foundation, Angga Dwi Sasongko at Jakarta Head Office, on Wednesday, 7 September 2011.

“Pondasi” (The Smart House Indonesia) is a program originated by Chairman, Glenn Fredly in the form of a community-based school and integrated education center that is equipped with a library of books and

menTawai donaTion

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 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.

This donation is a direct contribution from both employees and the company as a commitment of community development. All collected funds are specifically allocated towards the rehabilitation phase of areas affected by disaster. Similar donations had also been previously distributed to victims of Aceh tsunami in 2004, Yogyakarta earthquake in 2006, Padang earthquake in 2009 and Merapi eruption in 2010.

Currently, the construction of both “Pondasi” Mentawai has reached their final stages of completion including provisions of supporting facilities such as books and musical instruments for the library. Both are targeted to be fully functional by the end of 2011. •

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Community

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.

ouR new adoPTed sCHool

Starting in September 2011, a total of 39 fifth and sixth grade students of SDN 008 Mount Binjai, East Balikpapan Subdistrict, can now follow an intensive English lessons once every 2-3 weeks through the Teaching Voluntary implementation. This routine also involves several BSF employees who work directly as volunteer teachers. SDN 008 itself was chosen after a site visit by Business Services Manager Scott Beckwith. The school’s initial assessment has been previously carried out since early 2011.

Earlier in 19 June 2011, Thiess Indonesia, in cooperation with the government of Balikpapan, has inaugurated the opening of a public library named “The Smart Garden”. The facility, located in Jl. Mulawarman, Manggar, East Balikpapan, was officially

opened by the Mayor of Balikpapan H. Rizal Effendi, SE, together with BSF Manager Joko Satianto. Thiess Indonesia had also contributed supporting facilities such as textbooks, desks and chairs to support the daily operation of the public facility.

These emphasize the focus of Thiess Indonesia’s CSR program towards education, and developing the community surrounding its area of operation.

In the near future, BSF Community Development team plans to conduct an English competition between the two tutored elementary schools and boost more activities at the East Balikpapan Smart Garden. •

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Volume 02/2012Community

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.

saVe BalikPaPan’s CoRal Reef

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environment

The damage has a direct impact on levels of coastal erosion as well as the lack of breeding area for marine life which leads to the reduction of catch for the local fishermen.

iNTeNse CooPeraTioNIn an attempt to improve this situation, Thiess Indonesia in partnership with the Balikpapan government, sent representatives to Serangan Village, Bali, to study a coral reef rehabilitation program which has been successfully implemented by local fishermen there. The delegate team included four fishermen, an officer from the Balikpapan Marine and Fisheries Service and BSF Community Development & Relation Officer Makmur.

The study visit resulted in a plan to implement a similar rehabilitation plan in the coastal area near BSF. On 15 March 2011, the BSF Community Development team and local fishermen ceremoniously planted nine reef balls and four transplantation tables in the Manggar Coast near BSF office.

The event was attended by Business Service Manager Scott Beckwith and Thiess Balikpapan Management, as well as the Mayor of Balikpapan H. Imdaad Hamid SE, Head of Balikpapan Marine and Fisheries Service, Head of Balikpapan Tourism Service, Representatives of Balikpapan Environmental Institution, related East Balikpapan government officials, other company representatives and local fishermen.

In his welcome speech, the Mayor conveyed his appreciation for Thiess Indonesia’s contribution in coral reef conservation and how he looks forward to similar initiatives from other companies in Balikpapan.

This ceremony marked the beginning of our reef rehabilitation and conservation program. Going forward, the BSF Community Development team together with local fishermen will continue to monitor the growth of the planted reefs regularly. •

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Volume 02/2012

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 Thiess Indonesia’s projects including South Kalimantan (Kelumpang Bay Nature Reserve, Senakin and Satui), East Kalimantan (Melak, Sangatta and Coastal Conservation barnacles, Balikpapan), Soroako (South Sulawesi) and Jakarta Head Office (Regions Ecotourism mangrove Toll Sedyatmo Pantai Indah Kapuk, North Coast Jakarta).

All placed plants have either economic or ecological functions/conservation. Plants with economic function (to improve the economy of the population), include Mango, Sengon, Trembesi, Johar, Mahogany, Lamtoro, etc. As for plants with ecological function/ conservation include Mangrove and Sea Pines (to reduce abrasion, wildlife habitat restoration, coastal green belt,

development of fisheries, etc.), Meranti, Ulin and Durian Hutan (as rare trees). Approximately 1.900 trees were planted; 1.200 mangrove trees and 700 other mixture of different species.

JakarTa On 24 November 2011, Thiess Indonesia in cooperation with BKSDA DKI Jakarta planted 1.000 mangrove trees at the conservation area in Jakarta’s North Coast. This represents the company’s commitment towards environmental conservation and the balance of the coastal environment, in accordance with the new environmental policy “Smaller Footprint Bigger Future”.

TRee PlanTing aRound indonesia

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environment

saTUiThemed “Forest: Nature at Your Service”, the World Environment Day 2011 focused on increasing awareness of the importance of forests preservation in human life. Correspondingly, Thiess Indonesia launched a new Environmental Policy in which tree planting become employees’ responsibilities on every project. Employees’ commitment was collected via intranet, in which 181 people committed to plant trees in Thiess Indonesia Satui Project.

Another implemented program was the “Green Schools and Green Talk” activities held at six elementary schools around the project: SD Pabilahan, SDN 1 Sungai 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

where each school was given 30 seedlings to be planted around the school. On each activity, students were also gathered to discuss the importance of tree planting and what they can do to preserve the environment.

seNakiNCoal mining process in general often brings an adverse impact to its surrounding environment. Hence, an effective and well managed organization and monitoring are crucial to minimize these impacts.

In commemoration of World Environment Day 2011, Thiess Indonesia Senakin Project held a tree planting activity on 13 June

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2011 at areas of Port Sembilang, next to the Kelumpang Bay’s conservation area. Approximately 200 mangrove trees and 38 Australian sea pines were planted by 145 employees of Thiess Indonesia, Arutmin and other subcontractors committed to preserving the environment. The mangrove planting in Kelumpang Bay’s conservation area was also supported by the local Natural Resources Conservation Center (BKSDA).

The second tree planting was held at Wilas Village’s Junior High School on 21 June 2011 as a part of our community program, where students and teachers planted 10 mango trees around the school area. It is hoped that this activity will encourage an early environmental awareness on the children. •

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Volume 02/2012

adHiTama (gold) awaRdDirectorate 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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safety

As the result, Thiess Indonesia Senakin site received the Aditama (Gold) Award, for mining contractors category. The award was presented by the General Director Thamrin Sihite to Senakin Deputy Project Manager Agung Y. Bayutomo on behalf of Thiess Indonesia during a presentation ceremony in Jakarta, 24 November 2011. In conjunction with this, our client PT Arutmin Indonesia Senakin Site also received the Best of the Best (Overall) gold award for mining companies in Indonesia.

These are very prestigious safety awards and a fantastic achievement for the Senakin Mine Project. The challenge going forward will be to maintain and improve the HSE culture on all levels and to ensure that “Everyone Safe Everyday” remains our top priority.

Congratulations! •

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Volume 02/2012

A ceremony organised by the Ministry of 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.

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.

golden flag awaRds

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safety

exCelleNCe sCores!External Auditors conducted the SMK3 Audits on each of our Projects last year during the month of July. The results of these audits clearly indicated the strength 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.

Well done to all those participating in ensuring a successful system compliance audit result. Let’s continue with this performance so that everyone is safe everyday. •

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Volume 02/2012

The first Rebuild Program case study was performed by Superintendent – Plant Operations BSF, Soesanto and his engineering team to improve the performance of the new CAT M Graders that previously failed to meet set expectations. This was proven to be a viable decision, reinforcing the option to rebuild as opposed to replace.

The first machine to be rebuilt was the GR7822 16H, serial no. 6JZ00690, with total machine hours of 51,647 hours. BSF Workshop Superintendent, Agus Wahyudi appointed LH Mechanic Specialist Herry Djunianto to coordinate the program. His first task was to refurbish hydraulic and pneumatic hoses / valves and clamps, paying particular attention to the cab which had to be in perfect condition. Electrical Supervisor Yan Alfian and his auto electrician team then replaced its electrical harnesses and air conditioner components.

CeRTified CaT 16H REBUIlD PROGRAMME

Prior to the machine’s arrival, two 16H Graders were stripped for components to support the rebuild program. The machine was disassembled to the chassis, and all major components were sandblasted and undercoated. Welding and Fabrication Shop Superintendent, Lamaji Murdi and team were given the task to carry out all welding/fabrication repairs to the major components—the cabin being particularly most time consuming. All pin and bush areas on the components were rebuilt to OEM specification.

Trakindo was then entrusted with transmission and differential overhaul, while BSF rebuilt all other components and purchased a new engine. The later was decided as rebuild cost was 92% of replacement cost of the engine. •

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innovation

ouR new CommissioneRsBamBang seTiawanMr 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 PRiyonoMr 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 PuRwakaMr 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.

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Volume 02/2012our 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.

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our People

Rianoor Fuad, an employee of Thiess Indonesia Melak project, was on that bridge that day. This is his survival story of how nurturing a safety habit helped save his life.

FroM Bridge To dePTHs oF THe MaHakaM river“Tragedy!” was the first word Rian—how he is usually known—said when sharing the intense moments of the bridge’s collapse into the depths of Mahakam River. “I was travelling from Melak to Balikpapan that day. It went so fast. The big, strong bridge collapsed in a blink of an eye,” told Rian. “I was in a very good condition during the trip. It was around 4 PM when our car slowly entered the Mahakam bridge. We were at its first 10 meters when the first pillar of the bridge suddenly tilted to the left. And within seconds, the bridge collapsed straight below.”

“Fortunately, thanks to a safety standard habit, my seatbelt was well attached when it happened. My body instantly tilted to the left as the car dropped on such an angle along with the collapse. Half of the car was already filled with water. It would be a totally different story if I did not wear my seatbelt,” explained Rian.

“We fell so fast, there was only water on the left and right side of the windows. The water has reached the car’s ceiling. 5 people were trapped inside, 4 passengers and a driver. I was right behind the driver’s seat, right next to the car’s right door.”

“Luckily, we were still able to open the right door. The left one was jammed into the bridge’s fence at the drop. Looking at the rapidly filling water, I immediately took

saVed By THe seaTBelT SURVIVING ThE MAhAKAM BRIDGE COllAPSE

off my seatbelt, opened the door lock and went out as soon as I could. Then I went to help the other passengers,” he said remembering his struggle that day.

Still in shock, Rian sat at the top of the car before swimming back to the ground to get some help. “After calming myself down, I swam to the ground and looked for the nearest hospital to get proper treatment. I got three stitches on a torn wound on my ear.”

“THe seaTBelT saved My liFe”“I always put on my seatbelt every time I am in the car. It is as if something is missing if I do not buckle up.”

“That day, I was the only passenger with the seatbelt on. I suffered only minor injuries and stitches on the ear, while others suffered much severe ones, including broken bones,” told Rian.

The incident was a special lesson for Rian, and a harsh warning for all of us on the very importance of fastening seatbelts during rides. “I want to share this experience to remind people how important it is to fasten your seatbelts while travelling, and to always stay alert during rides. Staying in a good conscious mind will keep us aware of the circumstances happening around us.”

A thorough implementation of Safety Culture is the most effective method to prevent accidents. This implementation should be reflected on how safety habits are nurtured, whether at work, or every day in our daily lives. Together, let us create “Everyone Save, Every Day”. •

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Volume 02/2012

» 2011 GOLDEN FLAG AWARDS from THE MINISTRY OF MANPOWER AND TRANSMIGRATION Received for Excellence in OHS Management System at Balikpapan, Sangatta, Satui, Senakin and Tabang sites.

» 2011 BEST BIPARTITE AGREEMENT AWARD IN EAST KALIMANTAN from MINISTRY OF MANPOWER AND TRANSMIGRATION Received for Excellence in Bipartite Agreement at Sangatta site.

» 2011 ADITAMA AWARD from THE MINISTRY OF ENERGY AND MINERAL RESOURCES Received for Excellence Safety Performance at Senakin site.

» 2011 KALTIM EDUCATION AWARD FROM GOVERNOR OF EAST KALIMANTAN Received for the Best Company in Education Support in East Kalimantan

» 2010 LKS BIPARTITE BRONZE AWARD FROM THE REGENT OF EAST KUTAI Received for excellence Bipartite implementation at Sangatta Coal Mine Project

» 2010 SAFETY AND HEALTH PERFORMANCE AWARD FROM DIRECTORATE OF MINERAL, COAL AND GEOTHERMAL Received for Safety and Health performance at Senakin Coal Mine Project

» 2010 GOLDEN FLAG AWARD FROM SUCOFINDO Received for excellence in OHS management system at Sangatta, Senakin and Satui Project

» 2010 HEALTH AND SAFETY PERFORMANCE AWARD FROM CLIENT KALTIM PRIMA COAL Received for achieving 2 million manhours LTI Free at Sangatta Coal Mine Project

» 2010 SAFETY AWARD FROM THE GOVERNMENT OF SOUTH SULAWESI PROVINCE Received for strong performance in OHS implementation at Inco Project site

» 2010 Customs and Excise Award dari Directorate General of Customs and Excise Received for the Highest Import Duty Contribution in East Kalimantan in 2009

» 2009 ADITAMA MINING SAFETY AWARD FROM MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA Received for excellence in OHS management at Satui Coal Mine Project

» 2009 ZERO LTI AWARD FROM MINISTRY OF MANPOWER AND TRANSMIGRATION Received for booked free LTI during 01 Nov 2005 - 31 December 2008

ouR awaRds lisT

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» 2009 HEALTH AND SAFETY PERFORMANCE AWARD FROM CLIENT KALTIM PRIMA COAL Received for achieving 5 million manhours LTI Free at Sangatta Coal Mine Project

» 2008 BEST APPRENTICESHIP PROGRAM AWARD MINISTRY OF MANPOWER AND TRANSMIGRATION Received for excellence performance of apprentice program in 2007

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Volume 02/2012