Human Capital


Human resources are one of the important parts in supporting company's activity. Therefore, PT Krakatau Steel truly strives to develop and retain its employees to have superior ability and be able to contribute maximally.
In managing employees, the company applies human capital approach, where they are considered as human capital to condition them as company's assets, requiring them to create values and not simply generate an added value.
In creating humans with superior ability, PT Krakatau Steel, in managing human capital, applies an approach with the following pillars:

  1. Human capital strategy.
  2. Human capital development.
  3. Human capital learning and knowledge management.
  4. Human capital performance and reward management.
  5. Human capital integration.
  6. Human capital infrastructure.


Is a human capital management strategy which describes company strategy, where a long-term human capital strategy is arranged in harmony and intregration with other areas of the strategy referring to the company's vision, mission, goals, and values. Target achievement strategy is outlined in the annual work program in order to achieve the set target of human capital capabilities.

In developing human capital, PT Krakatau Steel develops a Human Capital Development model, comprising related elements including Competency Management, Recruitment, Succession Planning, and Career Development.
Definition of Competency Management used in PTKS is a process of determining what is required to meet the goals/objectives of the organization, and what is owned by the organization, as well as developing a strategy for recruitment or internal development of the required competency level.
Formulation of the necessary competency requirement by some positions can easily be done through catalogue or competency models (soft and hard competency), owned by the company and supported by an integrated Information System (SAP).  Measuring employees' level of competence, particularly managerial level has also been done by using PTKS' Assessment Center tool.

Competency level and gaps of each employee to an occupied position or based on the Company's Succession Plan and Career Development program will be ascertained through competency mapping. Development program through education, training, assignment, rotation, mutation, and other development programs is arranged and implemented for each employee according to the company's needs or the individual needs of employees in meeting the competency gaps and employee career development program.

3. Human capital learning and knowledge management
To support the employee development program, the company has prepared adequate infrastructure, i.e: training and education center (Pusdiklat), knowledge management web facility which can be accessed by all employees, Information System Unit that helps Krakatau Steel Knowledge Management, and competent personnel.
Knowledge management is a facility to accommodate the company's knowledge assets carried through exploration of the employees and related work units. The results are used to map, analyze, and complete the company's knowledge needs.
Every employee is given extensive opportunities to share and gain knowledge through the available facilities.

4. Human capital performance and reward management
The company measures performance and provides incentives to employees based on KPI/Sasaran Kerja Karyawan (SKK) performance achievement, where KPI/SKK is defined based on what the corporate strategies spell out (LTDP, RJPP dan RKAP).
To encourage employees' performance, the company applies remuneration system based on Hay System. According to this system, incentives are provided to employees based on their individual contribution and performance.
Other awards granted to employees are based on the improvement and innovation they make, awards for years of service, and some other criteria.

5. Human capital integration
In order to maintain work conduciveness, the company developed proper pattern of industrial relations between the company and the labor union (Krakatau Steel's labor union) and other stakeholders. Communication is done through meetings, BOD's Briefing, Company Bulletin, Web and Internet. That is intended to maintain harmonious and conducive work atmosphere in supporting the success of the company's business as well as employees' career path.

6. Human capital infrastructure.
To facilitate the ongoing operational management of the human capital, the company takes advantage of the infrastructure that has been developed such as HRIS, which has been integrated in the Information System (SAP).
In addition, PT Krakatau Steel has also developed standard human capital management system in the Systems and Procedures as part of the Krakatau Steel Management System (KSMS).
There is still room for the entire existing infrastructure to get further improved in order to maintain harmony and to keep up with the development according to the business development demands.