International Sustainable Competitiveness Advantage 2020 317 Analysis of the Causes of Low Satisfaction Performance Appraisal, Study in PT Indonesia Power PLTU Adipala Kukuh Pambudi 1 , Ratno Purnomo 2 , Ade Irma Anggraeni 3 1 Jenderal Soedirman University, kukuh.pambudi@indonesiapower.co.id 2 Jenderal Soedirman University, ratno.purnomo@unsoed.ac.id 3 Jenderal Soedirman University, ade.anggraeni.gardjito@gmail.com ABSTRACT Every year the organization conducts an Employee Satisfaction Index (ESI) and Employee Engagement Index (EEI) survey for all of its employees. The purpose of this survey is to determine their level of satisfaction in the work environment from time to time. Supporting indicators used in the ESI survey include: satisfaction of the employee placement / promotion process, satisfaction of education and training, satisfaction of the performance appraisal process: satisfaction of the placement / assignment process and satisfaction of leadership guidance / direction. Based on the survey results, it turns out that the performance appraisal as a supporting indicator for ESI gets the lowest satisfaction score compared to other supporting indicators. This type of research uses quantitative and qualitative approaches. The quantitative approach is in the form of an employee satisfaction survey, while the qualitative approach is used to understand an issue or problem: dig deeper into the main factors that cause dissatisfaction in the performance appraisal. Key words : employee satisfaction, performance appraisal, key performance indicators, competency 1. Introduction Every year PT Indonesia Power - PLTU Adipala conducts satisfiction and engagement surveys for all of its employees. This survey was conducted by an independent surveyor appointed by the company, while the respondents were all employees of PT Indonesia Power - PLTU Adipala. Supporting indicators used in the ESI survey include: satisfaction of the employee placement / promotion process, satisfaction of education and training, satisfaction of the performance appraisal process: satisfaction of the placement / assignment process and satisfaction of leadership guidance / direction. The online survey was carried out by ensuring the confidentiality of the respondent's data, however there was a classification of respondents based on the level of position and age of the respondent. This classification is needed as material for further analysis. The survey results in 2019 show that the level of satisfaction of supervisor-level employees is above that of labor-level employees. Two items are assessed in the performance appraisal of each semester: KPI performance and competency performance. KPI performance uses a balance score card scheme (quantitative),