PT ANEKA TAMBANG (ANTAM) Tbk

Key Performance Indicator

Research Report - Individual Assignment

Corporate Performance Management – MM6024

Jonathan Pratama - 29116346

Master of Business Administration

School of Business and Management

Institut Teknologi Bandung

2018
Company Background

PT Aneka Tambang, Tbk (ANTAM) is a vertically integrated, export-oriented,

diversified mining and metals company. With operations spread throughout the mineral-rich
Indonesian archipelago, ANTAM undertakes all activities from exploration, excavation,
processing through to marketing of nickel ore, ferronickel, gold, silver, bauxite and coal. The
company has long term loyal blue chip customers in Europe and Asia. Due to the vastness of
the company's licensed exploration areas as well as its known large holdings of high quality
reserves and resources, ANTAM has formed several joint ventures with international partners
to profitably develop geological ore bodies into profitable mines. ANTAM's objectives are
focused on increasing shareholder value. The company's main objective is to enhance
shareholder value by lowering costs while profitably expanding operations in a sustainable
manner. The strategy maintains focus on ANTAM's core business of nickel, gold and bauxite
with a view to maximize output in order to increase revenue and lower per unit costs.

ANTAM's Vision 2030:

"To be a leading natural resources based global corporation through business

diversification and integration" .

ANTAM's Mission 2030:

• To provide high quality products with a view of achieving maximum added

value through best industry practices and competitive operational performance

• To optimize resources with emphasis on sustainability, occupational safety

and environmental conservation

• To maximize the shareholder and stakeholder value

• To improve the employee's competency and welfare as well as the

independency of the communities In the vicinity of the operational areas.

ANTAM adopts corporate values known as PIONEER (Professionalism, Integrity,

Global Mentality, Harmony, Excellence, Reputation), which is actualized from a leadership
with SENSE (Speed, Energize, Respect, Courage) that will lead ANTAM workforce to an
Human Capital excellence level that meet the BEST (Beyond Expectations, Environment
Awareness, Synergized Partnership) criteria.

1
Perspective of the KPI

Based on ANTAM’s 2016 Annual Report.

Financial and Market Perspective (5 indicators) (26%):

 Growth of Business Income (5%)

 Asset Growth (5%)
 EBITDA Margin (5%)
 Sales to average asset (5%)
 Average asset to average equity (6%)

Customer Focus (2 indicators) (20%):

 Customer Satisfaction Index (10%)

 GCG Score (10%)

Effectiveness of Product and Process Perspectives (5 indicators) (22%):

 Lower Cost per Production Volume (5%)

 Increasing Refinery Plant (Smelter) (5%)
 Production Growth (5%)
 Sales/ton Growth (5%)
 HSE Performance (2%)

Manpower Focus (2 indicators) (16%):

 Employee Engagement Index (8%)

 Employee Productivity (8%)

Leadership, Governance, and Social Responsibility Perspectives (5 indicators) (16%):

 Community Satisfaction Index (3%)

 PK Rate and BL Realization (3%)
 KPKU Score (MBfPE) (3%)
 Level of Company’s Health (4%)
 The State Capital Participation (PMN) Realization (3%)

2
AHP for KPI’s Perspective Selection Based on Weight

Weighting KPI
Perspective

Effectiveness of Leadership,
Financial & Market
Customer Focus (20%) Product & Process Manpower Focus (12%) Governance, and Social
Perspective (32%)
(24%) Responsibility (12%)

Growth of Business Customer Satisfaction Lower Cost per Employee Engagement Community
Income Index production volume Index Satisfaction Index

Increasing Refinery PK Rate and BL

Asset Growth GCG Score Employee Productivity
Plant Smelter Realization

EBITDA Margin Production Growth KPKU Score

Level of Company's
Sales to average asset Sales/ton Growth
Health

State Capital
Average asset to
HSE Performance Partizipation
average equity
Realization

3
Excel Calculation on AHP

Effectiveness
Financial & Leadeship, governance, and
Customer Focus of Product & Manpower Focus
Market social responsibility
Process
8 5 6 3 3

Leadeship,
Effectivene
Financi governance
Custom ss of Manpower
al & , and social Sum Normalize
er Focus Product & Focus
Market responsibili
Process
ty
Financial & 1.3333333 2.6666666 2.66666666 9.26666 0.3188987
1 1.6
Market 33 67 7 7 67
Customer 0.8333333 1.6666666 1.66666666 5.79166 0.1993117
0.625 1
Focus 33 67 7 7 29
Effectivenes
0.2391740
s of Product 0.75 1.2 1 2 2 6.95
75
& Process
Manpower 0.1195870
0.375 0.6 0.5 1 1 3.475
Focus 38
Leadeship,
governance,
0.1230283
and social 0.375 0.6 0.6 1 1 3.575
91
responsibilit
y
29.0583
1
Total 3

4
Variable Linkage of the Key Performance Indicator Using Balance Score Card (BSC)
Perspective

*Excel Data on appendix section.

Learning and Internal Business

Processes
Customer Financial
Growth

A. Growth of E. Employee J. Customer O. Level of

Business Income Productivity Satisfaction Company’s health

0.781

B. Asset Growth F. Increasing K. GCG Score P. State Capital

Refinery Plant Participation
Realization

C. Production G. Lower Cost L. Community Q. Sales to

Growth per Production Satisfaction Index Average Asset
Vol.
0.997

D. Employee H. Sales/Ton M. KPKU Score R. Sales to

Engagement Index Growth Average Equity

I. HSE N. PK Rate and S. EBITDA

Performance BL Realization Margin

5
 Appendix
KPI Scoring

A B C D E F G H I J K L M N O P Q R S
Learning and Growth Internal Business Processes Customer Perspectives Financial Perspectives
Growth Producti Employe Employe Increasin Lower HSE Custome Commun KPKU PK Rate Level of State Sales to Average
Data Asset Sales/ton GCG EBITDA
of on e e g Cost per Performa r ity Score and BL Company Capital Average Asset to
Growth Growth Score Margin
Business Growth Engagem Productiv Refinery Producti nce Satisfacti Satisfacti (MBfPE) Realizati ’s Health Participat Asset Average
2016 51.67% 0.00% 105.00% 105.00% 101.32% 100.00% 105.00% 105.00% 90.60% 101.57% 99.46% 102.60% 104.68% 105.00% 105.00% 100.00% 94.76% 98.57% 84.30%
2015 44.36% 112.43% 92.46% 105.00% 98.57% 84.63% 100.00% 100.04% 105.00% 100.01% 100.21% 102.92% 100.12% 101.93% 115.52% 94.25% 93.00% 99.00% 0.99%
2014 105.35% 102.29% 104.93% 103.00% 100.00% 95.00% 105.00% 105.00% 86.93% 105.00% 103.40% 103.95% 101.20% 105.00% 108.62% 100.00% 120.00% 110.00% 107.15%
2013 41.91% 35.15% 98.87% 105.00% 105.00% 90.69% 90.00% 92.00% 65.73% 102.90% 102.55% 102.13% 105.00% 97.08% 104.13% 100.00% 92.10% 120.00% 50.63%
2012 65.75% 50.00% 75.00% 100.79% 100.79% 101.70% 103.13% 103.13% 102.00% 104.08% 100.00% 104.08% 104.00% 104.00% 103.16% 100.00% 85.75% 105.25% 43.00%
2011 105.00% 105.00% 104.00% 102.00% 102.00% 104.00% 104.00% 104.00% 104.00% 103.00% 103.00% 102.00% 102.00% 102.00% 102.00% 100.00% 105.00% 105.00% 105.00%
2010 105.00% 105.00% 104.00% 102.00% 102.00% 104.00% 104.00% 104.00% 104.00% 103.00% 103.00% 102.00% 102.00% 102.00% 102.00% 100.00% 105.00% 105.00% 105.00%
2009 9.00% 90.00% 9.00% 99.00% 80.00% 90.00% 8.00% 90.00% 90.00% 102.00% 102.00% 102.00% 102.00% 102.00% 101.00% 100.00% 51.00% 56.00% 46.00%
2008 31.72% 76.16% 57.06% 22.07% 66.97% 33.28% 89.49% 6.31% 83.00% 67.01% 4.33% 65.04% 21.29% 79.46% 100.00% 41.80% 5.07% 70.00% 17.59%
2007 75.96% 15.50% 57.79% 97.09% 89.38% 83.24% 86.92% 41.60% 99.00% 64.77% 77.26% 80.92% 97.13% 86.89% 100.00% 29.34% 38.27% 10.63% 33.50%
2006 47.34% 15.30% 79.80% 69.74% 34.24% 1.25% 71.32% 71.96% 79.81% 11.87% 23.56% 25.22% 16.62% 34.52% 100.00% 10.84% 83.42% 22.82% 15.99%
2005 64.47% 26.96% 66.29% 92.04% 20.84% 25.73% 5.29% 83.86% 85.00% 45.70% 24.92% 69.89% 21.79% 10.43% 100.00% 26.14% 75.10% 8.38% 37.49%
2004 87.01% 76.61% 68.74% 60.68% 97.39% 97.14% 52.90% 43.88% 39.26% 68.29% 85.38% 70.17% 92.64% 50.14% 100.00% 89.62% 21.84% 30.23% 39.79%
2003 91.49% 4.46% 30.00% 53.46% 10.97% 96.45% 27.08% 82.10% 76.00% 77.23% 79.71% 32.19% 41.05% 21.49% 100.00% 37.70% 16.59% 3.27% 58.81%
2002 66.09% 50.84% 82.77% 91.24% 83.35% 23.96% 7.47% 96.70% 99.01% 77.25% 63.33% 93.75% 76.97% 22.17% 100.00% 32.63% 42.40% 21.50% 12.45%
2001 86.29% 70.84% 43.02% 60.96% 18.12% 32.03% 86.31% 58.57% 70.75% 51.69% 84.91% 17.14% 5.60% 41.09% 100.00% 38.42% 57.90% 19.84% 52.06%
2000 56.10% 86.82% 44.19% 14.36% 67.25% 39.14% 24.92% 69.68% 73.28% 77.98% 19.96% 43.99% 55.73% 90.57% 100.00% 54.61% 4.89% 96.33% 39.22%
1999 17.48% 16.94% 93.31% 82.82% 23.90% 60.90% 12.23% 63.17% 52.00% 27.28% 17.72% 34.19% 92.67% 70.25% 100.00% 66.53% 93.88% 2.31% 81.42%
1998 14.15% 18.78% 68.52% 13.51% 84.81% 88.74% 10.85% 4.06% 53.00% 63.19% 24.51% 94.28% 97.20% 8.99% 100.00% 6.76% 76.71% 8.26% 35.06%
Linear Regression Result

Linkage R-Square Linkage R-Square Linkage R-Square

A-B 0.35964 D-K 0.065133 H-R 0.47833
A-C 0.146978 D-L 0.086479 H-S 0.271691
A-D 0.454052 D-M 0.00944 I-J 0.047525
A-E 0.007675 D-N 0.101592 I-K 0.049291
A-F 0.397375 D-O 0.299781 I-L 0.008405
A-G 0.367297 D-P 0.192638 I-M 0.334976
A-H 0.384894 D-Q 0.021459 I-N 0.269488
A-I 0.146067 D-R 0.00114 I-O 0.008973
A-J 0.370263 D-S 0.140466 I-P 0.112557
A-K 0.501607 E-F 0.053179 I-Q 8.08E-05
A-L 0.000115 E-G 0.388633 I-R 0.634372
A-M 0.182147 E-H 0.350093 I-S 0.000123
A-N 0.119699 E-I 0.44656 J-K 0.30372
A-O 0.153461 E-J 0.058761 J-L 0.181237
A-P 0.192438 E-K 0.143048 J-M 0.028718
A-Q 0.628286 E-L 0.32492 J-N 0.037806
A-R 0.00% E-M 0.505725 J-O 0.277958
A-S 0.654808 E-N 0.495429 J-P 0.570072
B-C 0.014572 E-O 0.478369 J-Q 0.223678
B-D 0.11199 E-P 0.384213 J-R 0.278349
B-E 0.188356 E-Q 0.024593 J-S 0.349409
B-F 0.009079 E-R 0.542979 K-L 0.083178
B-G 0.058434 E-S 0.072165 K-M 0.076388
B-H 0.04804 F-G 0.331836 K-N 0.104871
B-I 0.273499 F-H 0.358944 K-O 0.089313
B-J 0.003035 F-I 0.123436 K-P 0.14337
B-K 0.297693 F-J 0.231804 K-Q 0.554183
B-L 9.1E-05 F-K 0.031255 K-R 0.362895
B-M 0.836243 F-L 0.018539 K-S 0.382935
B-N 8.81E-05 F-M 0.075677 L-M 0.014333
B-O 0.098483 F-N 0.13154 L-N 0.352295
B-P 0.155622 F-O 0.727991 L-O 0.104753
B-Q 0.289448 F-P 0.560972 L-P 0.002899
B-R 0.009945 F-Q 0.027697 L-Q 0.001427
B-S 0.007252 F-R 0.023778 L-R 0.00812
C-D 0.143691 F-S 0.529632 L-S 0.045217
C-E 0.050525 G-H 0.99768 M-N 0.05458
C-F 0.009039 G-I 0.517376 M-O 0.366202
C-G 0.012434 G-J 0.032812 M-P 0.377768
C-H 0.01825 G-K 0.010815 M-Q 0.265133
C-I 0.054396 G-L 0.096549 M-R 0.135531
C-J 0.002051 G-M 0.137298 M-S 0.002331
C-K 0.285985 G-N 0.832259 N-O 0.011057
C-L 0.328386 G-O 0.005448 N-P 0.006493
C-M 0.022625 G-P 0.016941 N-Q 0.091739
C-N 0.001652 G-Q 0.175261 N-R 0.453095
C-O 0.006686 G-R 0.513581 N-S 0.088084
C-P 0.044806 G-S 0.235361 O-P 0.781738
C-Q 0.47086 H-I 0.476241 O-Q 0.000247
C-R 0.004442 H-J 0.044522 O-R 0.092402
C-S 0.432054 H-K 0.006974 O-S 0.390161
D-E 0.005489 H-L 0.092226 P-Q 0.06004
D-F 0.522566 H-M 0.116636 P-R 0.185445
D-G 0.240274 H-N 0.83153 P-S 0.575653
D-H 0.24268 H-O 0.011316 Q-R 0.013624
D-I 0.272484 H-P 0.030194 Q-S 0.534301
D-J 0.418325 H-Q 0.190581 R-S 0.013168

References
www.antam.com. 2018

Annual Report 1998-2016, PT Aneka Tambang Tbk. Jakarta. 2018.