SNI Award 2014 from the National Environmental Field Innovation 2014

Corporate Governance Implementation Report Corporate Social Responsibility Report Corporate Data Management Discussion and Analysis Financial Statements Assuring the Move Into Next Level 145 Company Innovation To strengthen the Company’s innovation culture development, the Innovation Boards has stipulated the Key Performance Indicators KPI related to the Innovation results by every Employees, and it’s being cascading into all Operating Units in Semen Indonesia Group, thereby the Company can monitor, evaluate and improve the participation of each employee in Innovation Movement of Semen Indonesia, as illustrated in the following innovation participation graph: In addition to the above, the Innovation Boards also established reward system for the innovators that participated in the Innovation Movement of Semen Indonesia GISI as the Company’s appreciation on employees’ contribution in creating added value to the Company. The ceremony of Semen Indonesia Award on Innovation SMI-AI is consistently held since 2010 up to now SMI_AI 2014. 1663 1924 1874 327 265 190 791 44 Total Employees Total Employees with Innovation SP ST TLCC SMI Business Development Report Management Reports Company Information Information For Investors Operational Review Assuring the Move Into Next Level 146 Following the significant growth of innovators participation, the Company consistently held SMI- AI every year in the company’s environment, and develops innovation group from 3 innovation group in 2011 expanded to 5 innovation group, as illustrated below: • Raw materials and products • Technology and production process: Mining - Raw mill • Technology and production process: Kiln - Packer • Management • Subsidiaries and Affiliates The above innovation group has been forecasted to develop in the years to come, by involving partners, academics, and communities to contribute in the Company’s competitiveness. The results of SMI-AI activity are periodically monitored especially the nominators of SMI-AI to ensure that the innovations will increase the Company’s efficiency, and it’s being synergized between other strategic business units. Innovation Management implementation is the appreciation media for the high achievers employees that enhances the spirit of innovation and competition, in the effort to create innovation culture towards critical and creative thinking. Operational Review Tinjauan Kinerja Company Innovation Total Innovations Total Nominees Innovation Implementation SP ST SMIG SMI 25 21 22 12 24 48 71 15 60.00 95.45 50.00 67.61