PT Medco Energi Internasional Tbk (“MedcoEnergi” or the “Company”) announces that it has acquired a 77.68% interest in PT. Saratoga Power from Saratoga and other shareholders. With this transaction, the Company has increased its effective interest in PT. Medco Power Indonesia ("MPI”) from 49% to 88.62%. The remaining 11.38% effective share in MPI held by the International Finance Corporation (“IFC”) is unchanged.
Established in 2004, MPI is a leading mid-sized Independent Power Producer (IPP) in Indonesia with its primary focus on power from natural gas and geothermal sources. MPI currently operates over 520MW of gross installed capacity following the commercial operation of the Cibalapulang 1 mini-hydro facility in September 2017, and the expected commercial operation of the Sarulla Unit 2 geothermal plant in October 2017, one month ahead of schedule. MPI gross operated capacity will further increase when Sarulla Unit 3 (110MW) reaches commercial operation in Q2 2018, and Riau CCPP (275MW) in 2021.
MPI Operation & Maintenance (O&M) business has also expanded and now operates over 2,000MW of third-party power plants. This expansion is driven by two new O&M contracts signed in late 2016 where MPI now operates the Sarulla Geothermal units and PLN gas-turbine units in eight locations across Indonesia.
Hilmi Panigoro, the President Director of MedcoEnergi, said that “this acquisition allows the Company to regain majority control of MPI and to strengthen our position in the power generation sector, which is expected to continue growing at 9% per annum over the next ten years. Our increased control over MPI is consistent with the Company’s strategy to grow in three main sectors; oil and gas, mining and power, and unlocks greater potential for synergies with our upstream gas business.”