Organizational Development: Infrastructure Readiness Reward Management: Rewarding Employee Contribution Performance Management: Corporate Objectives Alignment Employee and Industrial Relations: Togetherness and Harmony

44 Adaro Energy Annual Report 2009 From Us to Y ou Running Adaro Management Report Owning Adaro Governing Adaro Financial Report Contact Us Corporate Social Responsibility Adaro in Summary www.adaro.com Djohan Nurjadi, Albert Taulu Toar and Haryanto Simin discuss module training for the HR system. Human resources and IT personnel forming ideas for the next family gathering activities. Human Resources Management and employees. Informal meetings are organized between the Board of Directors BOD and Senior Management and managerial level employees on a regular basis with the aim of discussing ongoing company developments and information exchange in order to promote team synergy.

5. Organizational Development: Infrastructure Readiness

A robust infrastructure foundation in Human Resources Management was built in 2009 to support the company growth toward a bigger and better Adaro. It commenced with job analysis process for all employees, then job evaluation, and job competency proiling. Given the critical role of technology, we implemented a human resources information system to speed up this process.

6. Reward Management: Rewarding Employee Contribution

Our philosophy in reward management relies on the importance of both inancial and non inancial rewards. Annually, we participate in a salary survey to identify our remuneration policy against the market and ensure it is in line with market best practices. Despite our awareness of the importance of the spirit of team work for Adaro’s success, we also recognize employees who contribute more and stand out from the crowd. Our non inancial rewards cover such areas as special assignments, job enrichment, and job rotation.

7. Performance Management: Corporate Objectives Alignment

To assure employee contributions to the achievement of corporate objectives every employee’s individual objectives are aligned with corporate objectives and line managers play a critical role in deining, monitoring, and assessing these objectives. Adaro attempts to align every employee’s objectives with corporate objectives.

8. Employee and Industrial Relations: Togetherness and Harmony

Adaro has consistently created a working environment that values togetherness among employees and between employees and management. Employee relations activities conducted during 2009 include a get-together evening for all employees, a family gathering, religious events, and sports events. An internal HR Newsletter is also published regularly as a communication media for all employees. Adaro Energy works hard to achieve the ultimate goal of creating mutual understanding and building harmonious working relationships. Employee Composition by Education Education Background AE AI ATA IBT MSW SDM SIS CTI JPI High School 2 255 209 4 8 2,654 2 Diploma 3 57 6 21 2 2 224 2 Bachelor Degree 12 150 17 40 12 11 522 4 1 Master Degree 8 6 2 5 2 2 1 Total 25 468 25 270 23 23 3,402 9 1 including only permanent employees Adaro Energy Annual Report 2009 45 www.adaro.com Interview With Christian Ariano Rachmat, VP Director With Adaro’s strong capital structure, is there a possibility for acquisitions? Our primary goal is to create value from Indonesian coal. Our main strategic focus to accomplish this is through annual organic growth from our existing large reserves. However, we will always consider acquisitions of world class coal deposits in Indonesia if they will add value. What do you think is Adaro’s main challenge to stay on track to be bigger and better? The challenges for mining companies are plentiful. There are many things we cannot control. We just have to remember to not overcomplicate things, to remember our core competencies and to leverage those strengths to create maximum value. For a miner this means focussing on long term, keeping costs low and ensuring large reserves of high quality coal. What was your greatest achievement in 2009? My greatest achievement as well as challenge in 2009 was building and improving the organization within Adaro. During the year we were able to become more integrated as a company. We focused on developing a spirit of openness so that our people, coming from all sorts of backgrounds, can exceed their own expectations and get excited about building Adaro Energy into something even bigger and better. I am happy to see the culture of Adaro Energy developing into that of a happy productive home. What do you hope to achieve in 2010? I am hoping we can continue to build on what we achieved in 2009. It is about inding the right people. All across the organization we want to put the most capable people in the most appropriate positions. 46 Adaro Energy Annual Report 2009 From Us to Y ou Running Adaro Management Report Owning Adaro Governing Adaro Financial Report Contact Us Corporate Social Responsibility Adaro in Summary www.adaro.com Senior Managers of the Adaro Group Adaro Energy’s senior management is made up of people with a diversity of backgrounds, education and experience. With a dedication to professional excellence and team work, Adaro’s managers are passionate about building a bigger and better Adaro Energy. Adaro Energy’s senior managers regularly meet to align their job goals with corporate objectives. Fostering team work and unity, the meetings employ a management system called Plan Do Check Action PDCA, to monitor performance and determine targets. Adaro Energy Annual Report 2009 47 www.adaro.com

1. Cameron Tough Head of Investor Relations AE