Long-term Incentive Plan

Objective

By : Febriati Nadira

To reward and retain key employees whose contributions

are essential to companys long-term growth and
profitability

To help deliver compensation packages that are

market competitive

To create an employee ownership culture and encourage

greater dedication

To motivate employees toward better performance

 Total Compensation

By : Febriati Nadira

Fixed Long-term
Basic Salary Variable Bonus
Cash Allowance Incentive

Reward for Drive

Market worth performance-based
For payment of short-term ownership culture
of position and
Car Allowance individual and alignment
responsibilities with shareholders
performance
 What position entitle for LTI

Long-term Incentive Plan is applied only

for structural position:
- Directors
- Vice Presidents
- General Managers
- Managers

Currently in place LTI Plan for performance year 2007, 2008 and 2009
 Design Features

Annual grant based on funding formula

Annual available funding based on achievement of
corporate financial KPI within 1-year performance
period (EBITDA and normalized net income)
Distribution of incentive to individual employees based
on months of service, individual performance rating
and Management level
50% of individual award vests on 1 year after grant date
50% remaining vests on 2nd year after grant date
Performance year 2007 and 2008 through deferred cash
mechanism; Performance year 2009 will be deferred
cash or cash based equity
 Funding Formula

Considerations
- Employers perspective: ensure that the companys margin
is not adversely impacted
- Shareholders perspective: value creation driven by
underlying earnings
- Employees perspective: provides competitive total
compensation package to top performers

EBITDA Performance Incentive Pool Funding Formula*)

<90% of budgeted EBITDA Nil
90 - 100% of budgeted EBITDA 0.5% of EBITDA
>100% to <110% of budgeted Additional 2% of EBITDA above budget
EBITDA
>110% of budgeted EBITDA Additional 4% of EBITDA above budget
*) Capped at 2.5% of normalized net income as publicly disclosed
 Payment mechanism

VP 1 is awarded Second
First Rp 50m Rp 50m
Rp. 100 m for 2 years
Year 2007
Cash payment Cash payment
Lock up
Granted 2008 April 2010 April 2011

VP 1 is awarded Second
2 years First Rp 50m
Rp. 100 m for Cash payment Rp 50m
Lock up
Year 2008 April 2011 Cash payment
Granted 2009 April 2012

VP 1 is awarded First Rp 50m Second

Rp. 100 m for 2 years Cash payment Rp 50m
Year 2009 Lock up April 2012 Cash payment
Granted 2010 April 2013
 Disqualifying factors

Employee shall not be entitled for the

Award and for payment if:
- For any reason leave or be asked to leave
the Company before the payment date
- Violate the Company Rules or Company
Business Ethics and would be issued 2nd or
3rd degree Warning Letter before payment
date