2011 Annual Report


Telkom’s HRD Programs


A. HR Competency Development

Our Human Capital competency development strategy is articulated in our Human Capital Master Plan 2011 – 2015, which is updated every year to adjust to the dynamics of our business. Its implementation is aligned with our business strategy, which refers to our Corporate Strategic Scenario (“CSS”), Master Plan for Human Capital (“MPHC”), Training Needs Analysis (“TNA”), our organizational transformation as well as the Company’s financial condition.

We have also adopted a Competency-Based Human Resources Management (“CBHRM”) approach to assess our existing human resource competencies. The CBHRM model comprises Core Competencies (values), Generic Competencies (personal qualities), and Specific Competencies (skills and knowledge). These models continued to be developed and improved in support of fair and transparent employee competence evaluation.

The competencies needed by the Company are specified in our competency directory, which is regularly updated to keep pace with changes in our business. With the application of our core values, i.e. Commitment to the Long Term, Customer First, Caring Meritocracy, Co-Creation of Win-Win Partnerships and Collaborative Innovation, collectively known as Telkom 5C, we have also updated a number of the skills and knowledge competencies in the competency directory to reflect the transformation of our business portfolio to TIME.

Our competency development approach emphasizes the following:

  1. Culture Development, which focuses on the internalization and reinforcement of our corporate core values as the foundation for building a culture.
  2. Role Development, which emphasizes the development of the personal qualities required by each selected/defined role category.
  3. Job Related Capability Development, which focuses on the improvement of the capabilities required by the job.

Following the transformation of our business to the TIME business, our competency development has been affected through education and training to either shift competencies or develop competencies that have a direct or indirect impact on our business and operational strategies. Training under the ‘Shifting Competencies’ banner develops employee competencies in response to the shift from TDM-based telecommunications competencies to IP-based telecommunications competencies and IME (Information, Media and Edutainment) competencies. Developing competencies, meanwhile, equips employees with the competencies that support changes in the business portfolio that have a direct or indirect impact on our business strategy.

Education and training programs in 2011 focused on technology, telecommunications, marketing and management, business information and the development of new wave business, in line with our vision of becoming the market leader in TIME (Telecommunications, Information, Media and Edutainment). These trainings were organized in cooperation with a number of leading educational institutions.

Our overall competency development strategy encompasses the following:

  1. Lateral Strategy: training on many-to-many marketing and community marketing;
  2. Empower Strategy: training on delivery channels, empowering people and improving sales;
  3. Accelerate Strategy: training to support penetration and acquisition, as well as improvement of business processes; and
  4. DNA Strategy: training on exploiting the Telkom Group’s product offerings, including devices, network and applications or content.

In the interests of enhancing cooperation between Telkom Group business units and increasing cost efficiency, the Telkom Group is building synergies on program cooperation, participant cooperation, and cooperation on facilities.

Our future leaders are developed through a series of leadership programs:

  • Basic Leadership (Fundamental Supervisory Leadership, Functional Supervisory Leadership);
  • Mid-Level Leadership (Suspim 135 B, Public Leadership for Middle Management); and
  • Senior Leadership (Suspim 135 A, Functional Leadership, Commander Training, Public Leadership for Senior Management).

A total of 11,874 employees were trained in relation to Shifting Competencies and Developing Competencies during 2011. Under the Shifting Competencies program, 3,864 employees were trained on Telecommunications, 6,362 employees were trained on Information, 3,266 employees were trained on Media and Edutainment, both in Indonesia and abroad.

The Developing Competencies program consisted of Leadership & Talent Development, attended by 3,172 employees, Telkom’s New Culture (1,714 employees), Telkom Group Synergy (450 employees), Education program (3 employees), Certification Program (161 employees) and Core Functions (11,874 employees). Selected employees who participate in the overall development of competency or training programs determined by Company’s interest and employee necessitates with respect to gender equality.

Telkom spent Rp157.0 billion to its education and training program in 2011, or an average Rp7.9 million for each employee participating in the program.

Other initiatives to develop employee competencies include our Knowledge Management facility, which gives each employee the opportunity to exchange ideas, concepts and information through articles that are accessible by all employees.

In order to motivate employees to participate in the various competency development tracks, we have adopted an objective performance assessment system. For each employee, the performance assessment has two aspects: results, based on individual targets, and process, based on required competencies. An online assessment is conducted of all related behavior indicators demonstrated by the employee at work.

The results of the competency assessment are linked to other HR processes, such as competency development, career development, rewards and remuneration, performance, and our early retirement policy.

To strengthen our career development management, we have a dedicated competency development track for employees who are particularly talented. This consists of standard and specific competency development activities, which are articulated in the Individual Development Program (“IDP”) of the employee concerned to prepare them to take up key leadership positions in the Company. The Group has established the Telkom Group Top Talent, a pool of employees who have demonstrated outstanding competency or performance and have high potential. Through our Assessment Center, Telkom uses the Top Talent data to fill layer 1 and 2 positions (below Board of Directors level) throughout the Telkom Group.

Career movements of our employees refer to the Staffing Plan and may be effected through a request to fill vacant positions at the Unit Manager/Board of Directors level to Telkom’s HRD Director.

Our HR management has earned external recognition. We won five awards at the Indonesian Human Capital Studies 2011 held by Dunamis Human Capital and Business Review Magazine on June 30, 2011, and received the runner-up award for Best SOEs HR Innovation at the 2011 State-Owned Enterprises Awards on December 1, 2011 from BUMN Track Magazine, the SOEs Public Relations Forum and the Ministry of SOEs.



Education and training programs in 2011 focused on technology, telecommunications, marketing and management, business information and the development of the new wave business.

B. Competitive Remuneration

Telkom offers a competitive remuneration package that reflects market prices as well as the prevailing regulations, and consists of a basic salary and certain allowances, bonuses and benefits, including a pension program postretirement health care plan, health benefits for themselves and certain immediate family members, and housing allowance and other benefits, including those related to their work unit. The remuneration package is regularly evaluated to ensure that it keeps pace with market movements in salaries.

Bonuses are budgeted in advance and paid out in the year following that in which they were accrued. The total bonuses paid in a year ranged from Rp236 billion to Rp518 billion over the last five years. Bonuses accrued in 2011 will be paid to all employees following the completion of our 2011 audited financial statement and the approval of the 2011 GMS.

Subsidiaries similarly provide competitive remuneration.

C. Employee Rewards

As a mark of our appreciation for employees whose efforts have made a particular contribution to the achievement of our business targets, as well as for external parties who have contributed to Telkom’s success, the Company awards a number of rewards each year.

The following table shows the rewards presented to Telkom employees in 2011:

No Reward Type Reward Recipients
Number Type
Internal Rewards    
1. Religious Devotion Award (Hajj, Umrah, Christian Pilgrimage, Tirtayatra) 104 Individual
2. The Healthiest Family 3 Individual
3. Best Manager & Staff 16 Individual
4. Best Innovator 15 Individual
5. Special Recognition for Innovation in CSR 1 Individual
6. Kampiun Award 3 Individual
7. Main Reward 4 Individual
External Rewards 179 Individual
  Customer Service Award    
Internal Rewards    
1. Best Unit Award 11 Unit
2. Kampiun Award 3 Unit
External Rewards    
3. Best Channel Award 35 Unit
4. TCSR Award 20 Unit
TOTAL 69 Unit


Subsidiaries also maintain employee reward programs.

D. IT-Based HR Services

To make it easier for employees to do their jobs, Telkom has developed an integrated communications infrastructure to facilitate the coordination and dissemination of corporate policies and business strategies between policy makers, HR managers and employees. The heart of this infrastructure is the Human Capital & General Affairs website, which enables all employees to access HR policies and other HR-related information.

Since 2009 we have also taken steps to develop and improve IT-based HR services, including online personal work targets, online attendance, online travel warrants, online leave, online careers, and online training needs analysis (“TNA”). We have also introduced various other IT applications, including business automation processes in the form of electronic memos, virtual meetings, shared files, online surveys, and the intranet.

To ensure that employee-related issues are handled and communicated effectively, we established our employee relations media and human resources care center (“HRCC”) in October 2007. We deploy telephone, in-person, email and website strategies to enable communication between employees and HR.

Subsidiaries similarly deploy various communications strategies by which their HR functions reach their employees.

E. Pension Programs

  1. Ongoing Early Retirement Program
    Telkom's early retirement program was designed to create a more effective and competitive business environment. The program is aligned with our Human Capital Master Plan 2011-2015, which projects a reduction of 2,870 employees. The program is offered on a voluntary basis to employees who meet certain criteria (related to education, age, position and performance). Since it started in 2002 until December 31, 2011, a total of Rp7 trillion was paid out to 13,414 employees under this program.
  2. Defined Benefit Pension Plan

    The retirement age for all Telkom employees is 56. Telkom offers two pension programs:

    1. The Defined Benefit Pension Plan for permanent employees who joined the Company before July 1, 2002; and
    2. The Defined Contribution Pension Plan for all other permanent employees.

    Under the defined benefit pension plan, the pension is based on an employee’s length of service and salary level upon retirement, and is transferable to dependents upon the employee’s death. The defined benefit pension plan is managed by Telkom’s Pension Fund and is funded by contributions from us and our employees. Eligible employees contribute 18% of their basic salary (prior to March 2003, the employee contribution was 8.4%), while we contribute the remaining amount required to fund the plan. The minimum monthly pension benefit for retired employees is approximately Rp425,000. Our total contributions to the pension fund under the defined benefit pension plan amounted to Rp889 billion, Rp485 billion and Rp187 billion for the years 2009, 2010, and 2011, respectively.

  3. Defined Contribution Pension Plan

    We provide a defined contribution pension plan for permanent employees recruited on or after July 1, 2002. The defined contribution pension plan is managed by the Pension Fund Institution, a Financial Institutions Pension Fund (“FIPF”). Under this plan, employees may choose from plans sponsored by several recognized pension fund institutions. Our annual contribution to the defined contribution pension plan is determined based on a certain percentage of the participating employees’ salaries, and amounted to Rp4 billion, Rp4 billion and Rp5 billion for the years 2009, 2010 and 2011, respectively. Employees who have served more than a certain number of years are entitled to additional rewards such as retirement housing, a post-retirement cash award, and retirement travel with certain allowances which are determined upon resignation or retirement.

    Telkomsel provides a defined benefit pension plan to its employees. Under this plan, employees are entitled to pension benefits based on their latest basic salary or take-home pay and the number of years of service. PT Asuransi Jiwasraya, a state-owned life insurance company, manages the plan under an annuity insurance contract. Until 2004, the employees contributed 5% of their monthly salaries to the plan and Telkomsel contributed any remaining amount required to fund the plan. Starting in 2005, the entire contributions are fully made by Telkomsel.

    Telkomsel also provides long service awards in the form of cash or leave days to its employees based on their length of service. These awards may be provided at employment anniversary dates or at the time of termination. Some of these awards are at the discretion of management.

    Infomedia also provide a defined benefit pension plan to its employees.

F. Healthcare Programs

  1. Employee Health Management

    We believe that improving employees’ welfare has a positive impact on our productivity. In support of this, Telkom provides health services for our employees and retirees and their immediate family members through the Yakes health foundation. As of December 31, 2011, a total of 130,660 employees, retirees and family members were registered participants in the Yakes program. This figure represents a decrease from the previous year, among other matters due to the expiry of Yakes membership as a result of death or exceeding the stipulated age limit.

  2. Post Retirement Healthcare

    Telkom also provides post-retirement healthcare benefits for all retired employees as well as their spouses and children. There are two types of funding for these benefits:

    1. Employees who were hired before November 1, 1995 and who served our Company for at least 20 years are entitled to benefits managed by the Telkom Healthcare Foundation (“Yakes”). Our total contributions to this healthcare program were Rp1,101 billion, Rp991 billion and Rp361 billion respectively for the years ended on December 31, 2009, 2010 and 2011.
    2. All other permanent employees are entitled to a health insurance allowance. Our contributions to this program amounted to Rp23 billion, Rp20 billion and Rp19 billion respectively for the years ended on December 31, 2009, 2010 and 2011.

Subsidiaries provide health care benefits through a government-sponsored health care program known as Jamsostek.

G. Health, Safety and Security at Work (“K3”)

Telkom is committed to creating a safe and healthy operational environment as well as security for all production resources, process and equipment. This commitment is realized through our Health, Safety and Security at Work (“K3”) program.

Since 2009, our K3 management has been focused on achieving zero accidents. This program is based on the K3 provisions and regulations of the local Labor Office and is evaluated annually.

In 2009, a K3 survey was carried out in conjunction with the Telkom’s Employee Opinion Survey (“TEOS”). The K3 Survey was the first of its kind ever undertaken to determine whether we have provided a working environment that is at par with requirements. Our score on that K3 survey was 77.7%, or “satisfactory”. Our success in managing K3 has been widely recognized, with the most recent achievement being the 6 (six) awards in 2011.

H. Employee Relations Management

Pursuant to Presidential Decree No.83/1998 regarding the Ratification of ILO Convention No.87/1948 regarding Freedom of Association and Protection of the Right to Organize, several Telkom employees established the Telkom Employees Union (SEKAR). As of December 31, 2011, SEKAR represented a total of 18,691 employees, or 94.5% of our total workforce.

In accordance with Law No.13/2003 regarding labor, SEKAR is entitled to represent our employees in the negotiation of the Collective Work Agreement (“CWA”). The current CWA is effective until 2012. We anticipate that negotiations for the fifth next CWA will commence in June 2012.

Telkomsel and Infomedia also have employee unions. The employee union in Telkomsel is known as “SEPAKAT” (Serikat Pekerja Karyawan Telkomsel) and represents a total of 3,730 employees or 84.0% of Telkomsel’s total workforce.

I. Extracurricular Activities

In the belief that it supports employee productivity, we offer all employees the opportunity to take part in various religious, cultural and sporting activities. Many of these are also open to employees’ families, such as Al-Quran reciting competitions, church choirs and Hindu chanting (Ustawa Dharma Gita) as well as a range of sports.