CHAPTER IVINTERNAL ENVIRONMENT4.1 Corporate Structure

4.2 Corporate CultureThe process of formation of corporate culture originated from the realization that companies require adhesive to unite the firms that are within the company group, namely Semen Padang and Semen Tonasa, to formulate corporate culture is universal and accommodate the aspirations of employees. With the formation of corporate culture that is both universal and accommodate the aspirations of employees, this culture has permeated and practiced in the daily activities of employees and become a growth accelerator performance of the Company to achieve its vision to become the leading cement company in Southeast Asia. Corporate culture is the source of all institutions organization (software) settings management company, which developed from the philosophy and the values and beliefs that guide the Company in performing their duties beings. SGG corporate culture are arranged in the acronym "CHAMPS" containing cultural values as follows: C ompete & Synergized With a Clear Vision H ave a High Spirit for Continuous Learning A ct with High Accountability M eet Customer Expectation P erform ethically with high Integrity S trengthening TeamworkSaid CHAMPS is a fragment of the English word "CHAMPION" which means "winner" or "champion". The letter S at the end of the word CHAMPS indicate that the winner amounted to plural or more than one person, namely the existing employees in all companies belonging to the groupCompany. Furthermore, cultural values is actualized into the behavior of the key (key behavior). Redefinition of Corporate Culture is part of an effort to improve the readiness of the whole range of the Company to realize the long-term plan and achieve business growth opportunities.4.3 Corporate Resources1. Marketing and Distribution ResourcesExcellence Company distribution network supported by 30 warehouse units buffer, the operation of 21 packing plant in a strategic location and is supported by 361 national distributors to ensure the smooth supply cement to the rest of the archipelago. The TLCC distributor in Vietnam amounted to 78 are scattered in Vietnam North, Central, and South America.The Company is currently building three additional packing plant in several locations prospect until the year in 2016 the Company plans an additional 12 units packing plant. The development objective of the packing plant is: The cost efficiency of transportation and distribution. Ensure continuity of supply of cement in the marketing area of the Company. Expansion of the marketThe Company's efforts to improve the security of supply of cement increased activity affects the entire consumer delivery to warehouses buffer and packing plant spread across Indonesia, so this gives the impact of increasing load distribution.To reduce the rate of increase in load distribution while ensuring the accuracy and availability of supply, the Company made efforts include: Implementation of the distribution and marketing synergies of the whole entity subsidiary that has activities in the field of cement and cement distribution Financial Performance Overview for supplying cement to the primary market with the nearest distance. (See the description of "Synergy program" and "Revenue Management ") Optimizing packing plant, packing plant construction and discharging ports in strategic areas, to improve the efficiency of transport and distribution. (See the description of "Development of Packing Plant"). Packaging. In order to suppress the effect of the increase packaging raw material prices, the Company continuously packaging development activities in the context of efficiency. (See the description of "Research and development", Development of packaging). Efforts undertaken in the field of research and development have proven packaging have a significant impact, the composition of the packaging load against the cost of revenue in 2014 amounted to 5.6% lower at 6.0% from the previous year..2. Financial Resources

Powered higher sales volume and selling prices of competing brands that are well known in the community, the Indonesian Cement recorded a revenue increase of up to 10%.However, the increase in production costs make the company recorded growth in profit attributable to owners of the parent amounted to 3.6% to Rp5.6 trillion3. Human ResourcesThe Company believes human resources are one of the main assets that have a central and strategic role in supporting the successful achievement of the vision and mission of the company. Therefore, the Company seeks to enhance the role and capability of human resources in a holistic competency development program through the container Cement Indonesian Center of The Champs are uniting and developing the ability of the Company to ensure the success of strategic business development plan over the long term.HR SYSTEMS DEVELOPMENT TOWARDS WORLDCLASS HUMAN CAPITALIn line with the transformation program Strategic Holding Corporation into a world-class company with coverage of business clusters of cement and non-cement, the Company made a Development of an integrated HR system in line with the Company's Long-Term Plan that has been set. Development of HR system includes optimization of 3 main components: process, technology and people.HR business processes developed from best practice business processes HR firms run by World Class, which consists of the process:1. Human Capital Planning2. Human Capital Acquiring3. Human Capital Development4. Human Capital Maintaining5. Retaining Human Capital

The Human Capital Planning process, the Company took the initiative in the aspects:- Organization Development: Transforming the Corporation in accordance with the company to develop the HR functionthe establishment of a level 2 Work Unit in the Department of Holding, namely:1. HR Systems Development Department focuses on improving human resource policies and systems that apply across the Group, as well as talent management, especially the Board of Directors, Echelon Echelon 1 and 2 and HR Business Process and Technology.

2. Department Center of Dynamic Learning (CDL) function Corporate University, the unit which was established in line with the company's strategy for managing the education and learning functions within the company with the aim of preparing human resources in order to help the company achieve its goals. Task CDL Department include: implementing the preparation and management of You Competence, curriculum, syllabus and Learning Module, coordinate and implement the Leadership Development Program (LDP) for Echelon Echelon 1 through 4 in the entire Group and implement policies and initiatives Knowledge Management functions in all elements company.

- Job Management: The Company did Evaluation and Reevaluation Weight Position (Job Grade) in all functions of the company, in line with the corporate transformation program and the development of organizational structures. Evaluation and Reevaluation conducted with experienced consultants in the field of Job Evaluation. The Company has sets the Evaluation Committee Position (KEJ), so as to gradually capabilities / competencies Job Evaluation owned by the company's internal, and can do without the assistance Job Evaluation consultant.- Man Power Planning: In line with the implementation of the Company's Long Term Plan (RJPP), the Company conducted a review of the human resource planning, with the aim to validate alignment qualification, number and additional human resources to match business growth. To reinforce the validity of the review, the Company did Workload Analysis. Through these efforts, the Company then formulate the optimal number of HR operational support companies in the future in Manpower Planning documents up to 2030.- The general process adopted Human Capital management in any corporate actions such as business expansion both at home and abroad are doing the calculations Man Power Planning. If of sufficient internal company stated it will use the power of the Company's internal. However, when judged lacking, it will be followed up with Recruitment Program, in accordance with the required fields and competencies required for each job position.- Meanwhile, when a new organization abroad is no vacancy, then the first thing to do is make the filling HC field position using a standard assessment of competence and performance needed in that position and will be filled with employees who have the right performance and competence. This will be obtained from the mapping Talent in Talent Management Company Program. The Human Capital Acquiring process, the Company has initiated in aspects:- Recruitment: Man Power Planning in accordance with predetermined, the company recruit new employees. Strip acceptance of new employees in the Company consists of:o Management Trainee: equivalent of graduate Bachelor (S1), is projected to occupy the post of Head of Section (Echelon 3)o Supervisory Trainee: equivalent of graduates Diploma (D3), is projected to occupy The head office team (Echelon 4)o Operator Trainee: equivalent vocational school graduates, Implementing positions (Echelon 5)- On Boarding: New employees who have been recruited, given briefing materials that support the process of understanding and acceptance of new employees for Culture, Environment.Work and competencies needed to deliver the best performance in the company. On Boarding Process consists of Susbintal, Corporate Profile, Corporate Culture (CHAMPS), Basic Management, Technical Competence, Personal Mastery, ESQ, Safety Riding, Plant & Office Visit, On the Job Training (OJT) and administration tasks during OJT.

The Human Capital Development process, the Company has initiated in aspects:- Job Competencies: according to the business needs of the company's current and future development in accordance RJPP, the Company developed a plan to update the Employee Competence. Job development Competencies will be in accordance with the Job Description and Job Family from each position, resulting in the identification and assessment of competence level for each gap competencies can be integrated with a valid method according to the needs of the company.

- Training Program: to support the initiative of the Indonesian Cement Center of CHAMPS (SICC) as the power house of the Indonesian Cement become a World Class Company, particularly the Center of Dynamic Learning (CDL) and the Center of Knowledge Management (CKM), the Department of CDL, has set the framework and organizational structure that will carry out the functions CDL Corporate University. Framework and organizational structure CDL is as follows: