Number of Employees RISK MANAGEMENT IMPROVEMENT PLAN 2014

380 PT KERETA API INDONESIA PERSERO 2013 ANNUAL REPORT 380 PT KERETA API INDONESIA PERSERO 2013 ANNUAL REPORT 380 Jenjang Pendidikan S2 S1 D3 SMA SMP SD Total Educational Level Master Bachelor Diploma Senior High School Junior High School Elementary School Total 2013 75 1033 419 20.260 2.872 2.269 26.928 2012 73 809 340 19.507 3.415 2.886 27.030 Perubahan 2,7 27,68 23,24 3,86 15,9 21,3 94,68 2. KomposisI SDM Berdasarkan Jabatan Jumlah pegawai sebanyak 26.928 terdiri dari 25 Executive Vice President, 136 Vice PresidentGeneral Manager Senior Manager, 561 Manager, 1.245 Junior Manager Assistant Manager, sisanya terdiri dari supervisor dan staf atau pelaksana. Pada tahun 2013 terdapat penurunan pegawai pelaksana dari 21 ribu menjadi 20 ribu pegawai. Penurunan ini merupakan bagian dari pelaksanaan program restrukturisasi pegawai. Sementara itu pada level Vice President terjadi penambahan dari 21 pegawai pada tahun 2012 menjadi 25 pegawai pada 2013, sebagai bagian dari upaya strategis revitalisasi Perseroan. 3. Komposisi Pegawai Berdasarkan Jenjang Pendidikan Pada tahun 2013 terjadi peningkatan jumlah pegawai lulusan SMA ke atas. Peningkatan tertinggi pada lulusan perguruan tinggi Strata 1 sebesar 27 menjadi 1.033 pegawai dari 809 pegawai pada tahun 2012. Sementara itu lulusan SMP ke bawah turun. Jumlah pegawai lulusan SD turun 21 dari menjadi 2.269 pegawai dari tahun 2012 sejumlah 2.886 pegawai. 2. Human Resources composition by Job Position The number of 26,928 employees comprises 25 Executive Vice Presidents, 136 Vice PresidentsGeneral Managers Senior Managers, 561 Managers, 1.245 Junior Managers Assistant Managers, and the rest are Supervisors and Staff or Officers. In 2013 there was a reduction from 21 thousand to 20 thousand officers. This reduction was part of the employee restructuring program. Meanwhile, there was an increase from 21 people in 2012 to 25 people at the level of Vice President in 2013 as a part of the strategic efforts in revitalizing the Company. 3. Employees Composition by Education Level There was an increase of employee number from Senior High School or above in 2013. The highest increase was on Bachelor degree S1 by 27 from 809 employees in 2012 to 1.033 employees. Meanwhile, the number of employees from Junior High School graduates or below decreased. The number of employees from Primary School graduates decreased 21 from 2.886 in 2012 to 2.269 employees. Komposisi Pegawai PT Kereta Api Indonesia Persero 2013 Berdasarkan Jenjang Pendidikan Composition of PT Kereta Api Indonesia Persero Employees by Educational Level Business Prospects and Corporate Strategy Analysis and Managerial Discussion PT KERETA API INDONESIA PERSERO LAPORAN TAHUNAN 2013 381 PT KERETA API INDONESIA PERSERO LAPORAN TAHUNAN 2013 381 Supporting Business Report Usia 51-56 41-50 31-40 30 TOTAL Age 51-56 41-50 31-40 30 TOTAL 2013 4.847 5.663 5.949 10.469 26.928 2012 4.562 6.487 6.478 9.503 27.030 Perubahan 6,2 12,7 8,1 10,1 37,1 4. Komposisi Pegawai Berdasarkan Usia Pada tahun 2013 terjadi jumlah penurunan pegawai berusia di atas 40-50 sebesar 13 dan peningkatan jumlah pegawai di bawah usia 30 tahun sebesar 10. Perubahan ini merupakan bagian dari program regenerasi di Perseroan. 4. EmployeeS Composition by Age In 2013, there was a 13 decrease of employee number at the age of 40-50 and a 10 increase of employee number under the age of 30 years. These changes were part of a regeneration program in the Company. Komposisi Pegawai PT Kereta Api Indonesia Persero 2013 Berdasarkan Usia The Composition of PT Kereta Api Indonesia Persero Employees in 2013 by Age 382 PT KERETA API INDONESIA PERSERO 2013 ANNUAL REPORT 382 PT KERETA API INDONESIA PERSERO 2013 ANNUAL REPORT 382 5. Komposisi Pegawai Berdasarkan Fungsi Pada tahun 2013 terdapat penambahan jumlah pegawai untuk fungsi operasional dan komersial dari 6.150 pegawai menjadi 7.270 pegawai. Perubahan ini merupakan upaya untuk meningkatkan fungsi pelayanan. Sementara itu, jumlah pegawai stasiun mengalami penurunan 58 dari 696 pada tahun 2012 menjadi 294 pegawai pada 2013. Penurunan jumlah pegawai stasiun terutama disebabkan pemberlakuan sistem e-ticketing: 6. TurnOver Pegawai 2013 Dalam pengelolaan SDM tersebut, tingkat keluar masuk turnover pegawai menjadi perhatian perseroan. Pada tahun 2013 terdapat penambahan 1.354 pegawai dan pengurangan pegawai 1.456 orang. Penambahan pegawai merupakan hasil perekrutan. Pengurangan pegawai disebabkan pegawai pensiun normal, pensiun dini, pengunduran diri, meninggal dunia, atau pensiun dikarenakan menjadi direksi. 6. Employees Turnover in 2013 In the management of human resources, employees turnover is of the company’s concern. In 2013 there were 1,354 additional employees and employee reduction as many as 1,456 people. The addition was resulted from recruitment, while the reduction was due to normal retirement, early retirement, resignation, death, and retirement for becoming a member of the Board of Directors. 5. Employees Composition by Function In 2013, there was an increase of employee number for operational and commercial functions from 6,150 into 7,270 people. This change was an effort to improve the service function. Meanwhile, the number of employees inrailway stations decreased 58 from 696 in 2012 to 294 employees in 2013. The decreasing number of employees was mainly caused by the implementation of e-ticketing system: Komposisi Pegawai PT Kereta Api Indonesia Persero 2013 Berdasarkan Fungsi Composition of PT Kereta Api Indonesia Persero Employees by Function Pemeliharaan Sarana Operasional Komersial Perawatan dan Pengawasan Prasarana Pengoperasian Prasarana Pegawai Stasiun Optimalisasi Aset Umum Jumlah Fungsi F UNCTIONAL 2013 2012 Facilities Maintenance Operational Commercial Infrastructure Maintenance and Supervision Infrastructure Operation Railway Station Employees Asset Optimization General Total 5.398 5.700 5,30 7.270 6.150 18,21 4.001 4.353 8,09 7.103 6.943 2,30 294 696 57,76 430 383 12,27 2.432 2.805 13,30 26.928 27.030 391,25 Business Prospects and Corporate Strategy Analysis and Managerial Discussion PT KERETA API INDONESIA PERSERO LAPORAN TAHUNAN 2013 383 PT KERETA API INDONESIA PERSERO LAPORAN TAHUNAN 2013 383 Supporting Business Report PT Kereta Api Indonesia Persero memanfaatkan dua sumber untuk melakukan perekrutan, yaitu sumber umum dan sumber khusus. Sumber umum menggunakan dua jalur, yaitu jalur kampus melalui Job Fair dan kerja sama dengan TNI. Pada tahun 2013, PT Kereta Api Indonesia Persero merekrut lulusan baru dari Sekolah Tinggi Transportasi Darat STTD. Selain itu, Perseroan juga bekerja sama dengan TNI untuk pengadaan Polisi Khusus Kereta Polsuska. Dalam perekrutan jalur khusus, PT Kereta Api Indonesia Persero merekrut profesional berpengalaman dan merekrut mahasiswa berprestasi. Pada tahun 2013, jumlah pegawai yang dan mengikuti seleksi sebanyak 10.770 orang dan yang dinyatakan lulus sebanyak 1.354 orang. PT Kereta Api Indonesia Persero uses two sources for recruitment, namely general and special sources. General source uses two paths, namely campus path through a job fair and cooperation with TNI Indonesian National Army. In 2013, PT Kereta Api Indonesia recruited new graduates from Academy of Land Transport STTD. In addition, the Company also cooperated with TNI to provide Special Police for Train Polsuska. In the recruitment through special path, PT Kereta Api Indonesia Persero recruited experienced professionals and outstanding university students. In 2013, the number of employees who passed the recruitment amounted 1.354 people. Hasil Perekrutan Karyawan PT Kereta Api Indonesia Persero 2013 Result of Employee Recruitment of PT Kereta Api Indonesia Persero 2013 Customer Service Polsuska Eksternal dari Pegawai Tewas Jobfair Masinis Outsourcing Rekrut Khusus Teknik Sipil Operasional, Pemeliharaan, Adm TOTAL 12 243 3 139 420 111 52 24 350 1.354 Customer Service Polsuska Special Police for Train External from Death Employees Jobfair Engineer Outsourcing Special Recruitment Civil Engineering Operation, Maintenance, Adm TOTAL Fungsi P EGAWAI E MPLOYEE F UNCTIONAL B. PEREKRUTAN DAN SELEKSI B. RECRUITMENT AND SELECTION 384 PT KERETA API INDONESIA PERSERO 2013 ANNUAL REPORT 384 PT KERETA API INDONESIA PERSERO 2013 ANNUAL REPORT 384 Secara konsisten PT Kereta Api Indonesia Persero melakukan pengembangan pegawai guna meningkatkan kapabilitas dan kompetensi mereka. Dengan memiliki kompetensi dan kapabilitas yang tinggi, pegawai dapat meningkatkan produktivitas mereka dan berkontribusi pada peningkatan kinerja Perseroan. Sasaran utama pengembangan SDM adalah mengubah mindset pegawai untuk mendukung Perseoran bertransformasi menjadi service company. Untuk mencapai sasaran tersebut segenap jajaran manajemen memiliki komitmen yang kuat untuk terus melakukan perubahan pengelolaan SDM dengan mengajak seluruh pegawai untuk mendukung perubahan. Perseroan telah menyusun strategi pengembangan SDM berdasarkan kebutuhan dan dibuat secara fleksibel agar senantiasa mengikuti kemungkinan perubahan dan transformasi yang mungkin terjadi di masa datang. Strategi pengembangan SDM dibuat berkelanjutan dari tahun 2013 sampai 2018 sehingga pegawai bisa lebih siap menghadapi tantangan perubahan di masa depan. Berdasarkan pertimbangan tersebut, maka fokus rencana kerja pengembangan SDM di tahun 2013 dapat dijabarkan sebagai berikut: Pemantapan assessment dan sistem pengembangan SDM berbasis CBHRM dan SBHRM dibagi menjadi dua semester: 1. Semester pertama, melakukan evaluasi pengem- bangan SDM yang sudah ada. Di semester ini Perseroan melakukan asesmen kompetensi untuk pemetaan kompetensi pada level jabatan manajerial sebagai dasar executive and management development program. 2. Semester kedua, merencanakan sistem pengembangan sesuai dengan kompetensi yang sudah dimiliki. Di semester ini Perseroan melanjutkan kegiatan asesmen seperti yang sudah dilakukan di semester pertama dan hasilnya baru dijadikan landasan bagi pembangunan sistem pengembangan SDM Perseroan. The Company has made a human resource development strategy based on the need in a flexible way in order to keep following the possible changes and transformation that may occur in the future. The human resources development strategy was continuously made from 2013 to 2018 so that employees can be more prepared to face the challenges of change in the future. Based on those considerations, then in 2013, the focus of the work plan of human resources development can be described as follows: The strengthening of Human Resources assessment and development system based CBHRM and SBHRM are divided into two semesters: 1. First semester, evaluating the existing human resource development. In this first semester, the company conducted a competence assessment to map the competences on position level as a basic executive and management development programs. 2. Second semester, planning the development system in accordance with the competence that already possessed. In this semester, the Company continued the assessment as has been done in the first semester, and the result is used as the foundation for developing the Company’s system of human resource development. PT Kereta Api Indonesia Persero consistently conducts human resources development to improve their capabilities and competences. By having high competences and capabilities, the employees can increase their productivity and contribute to improving the Company performance. The main target of human resource development is to change the employees’ mindset to support company in transforming itself into a service company. To achieve this target, the whole management has a strong commitment to consistently making changes in Human Resources management by encouraging all employees to support the change. 1. Road Map Pengembangan SDM 1. Road Map of Human Resources Development C. PELATIHAN DAN PENGEMBANGAN SDM

C. TRAINING AND HUMAN RESOURCES DEVELOPMENT

Business Prospects and Corporate Strategy Analysis and Managerial Discussion PT KERETA API INDONESIA PERSERO LAPORAN TAHUNAN 2013 385 PT KERETA API INDONESIA PERSERO LAPORAN TAHUNAN 2013 385 Supporting Business Report 2015 Establishment of CBHRM and SBHRM in the Process of Assessment and the development systems of HR HUMAN RESOURCES DEVELOPMENT ROADMAP 2013 2014 Stabilization of Assessment and the development systems of HR based on CBHRM and SBHRM Establish the development systems of HR Evaluate the implementation of the development systems of HR Facilitating the growing knowledge of individuals, organizations or HR environment Semester 1 Semester 1 Semester 1 Semester 2 Semester 2 Semester 2 Implementation of CBHRM and SBHRM in the Process of Assessment and the Development Systems of HR Implement the development systems of HR Implement the concepts of HR development to the employees of PT KAI Persero Manager – EVP Implement the concepts of HR development to the employess of PT KAI Persero Supervisor – Junior Manager Develop the concepts of the existing HR development Train the trainers so that all the employees are able to implement the HR development program Plan the development systems of HR in accordance to the competence Evaluate the existing HR development Conduct the competency assessment to map competency on managerial position level as a basis of executive and management development program Conduct the program of executive and management development program Level 3 Conduct the program of management development program Level 2 and 1 Set an effective strategy in optimizing the existing development systems of HR Adapun gambaran lengkap mengenai proses pengembangan SDM PT KAI dapat dijelaskan sebagai berikut: A complete description of PT KAI’s human resources development can be explained as follows: Selanjutnya Perseroan juga membuat pengembangan SDM berdasarkan strategi input-proses-output yang dapat dijelaskan seperti berikut ini: Then, the Company also conducted human resources development based on the strategy input-process-output that can be explained as follows: OUTPUT INPUT PROCESS The HRs are able to support the corporate dynamics E XCELLENCE P ERFORMANCE • Individual Performance • Unit Performance • Corporate Performance The HRs are able to implement 4 main pillars of PT Kereta Api Indonesia Persero: • Safety • Punctuality • Service • Comfort That support 5 main values of corporate culture: • Integrity • Professional • Safety • Innovation • Excellent service Identify the Position Profile Map the Employee Profile Development Program External factors that will influence the process of HR development: • Customer’s demand • Changes of competition map, technology, environment, and culture • The policy of government and regulator The process of HR development aims to maintain and retain employees in order to giving contribution to the company