Decision Making for Succession Planning of PT Borneo Coal Dynamic (BCD) Business Unit Head

Abstract

PT BCD is a leading coal mining company in Indonesia, operating under a Coal Mining Concession Work Agreement (PKP2B) with an area of 24,100 Ha in Tanah Bumbu Regency, South Kalimantan. As one of the top three largest mining companies in the country, PT BCD aims to achieve an ambitious production target of 54 million tons per year. However, the company faces challenges related to leadership turnover over the next five years, with several key positions, such as Business Unit Head and Chief Operating Officer (COO), expected to become vacant due to retirement or internal rotation. To ensure the sustainability of operations and the achievement of production goals, effective succession planning becomes an urgent necessity. This study aims to explore and develop a leadership succession strategy for PT BCD, focusing on preparing internal talents with the technical and managerial competencies required for the Business Unit Head position. The research employs a qualitative approach, using semi-structured interviews with key stakeholders, including the COO, Business Unit Head, Division Heads, and HR personnel. The interviews identified three potential candidates for the Business Unit Head role, whose competencies were assessed using the SMART method and Nine Box Talent Matrix to evaluate their performance and potential. The findings revealed gaps in both technical and managerial competencies, which can be addressed through an Individual Development Program based on the 3E system (Exposure 20%, Educating 10%, Experience 70%). The research highlights the importance of a structured succession plan that includes employee competency mapping, internal talent development, and continuous evaluation. The proposed strategy aims to ensure that future leaders are equipped with the necessary skills to maintain the company's operational stability and competitive edge in the mining industry. The successful implementation of this succession plan will contribute to an effective leadership transition and support PT BCD's long-term success.