JAKARTA, January 11th, 2023 – PT Medco Power Indonesia (“Medco Power”), through its subsidiary, PT Medco Cahaya Geothermal (“MCG”), signed a Financing Agreement with PT Sarana Multi Infrastruktur (Persero) (“SMI”) for the development of Ijen, a Geothermal Power Plant (“PLTP Ijen”). The first phase of the development is expected to generate 34 MW in 2025. MCG, a jointly owned company between Medco Power and Ormat Technologies (“Ormat”) (NYSE: ORA), will develop and operate this, the first geothermal power plant in East Java.
The signing was witnessed by Harris Yahya, Geothermal Director of the Ministry of Energy and Mineral Resources, Adi Lumakso Director of Generation Management of PT PLN (Persero), Hilmi Panigoro President Director of MedcoEnergi, Doron Blachar CEO of Ormat, Eka Satria President Director of Medco Power and Edwin Syahruzad President Director of SMI.
“This signing is another milestone of our climate change strategy to expand our renewable power portfolio,” said Hilmi Panigoro. Eka Satria added, “This signing demonstrates Medco Power’s commitment to developing clean and renewable power for Indonesia post completion of the Riau gas-fired CCPP of 275MW and Sumbawa Solar PV of 26MWp in 2022.”
“This signing is another step to support Indonesia’s economy towards clean renewable energy and another step in Ormat’s long term plan to increase its presence in the country both as a power plant owner and as an equipment supplier” said Doron Blachar, Ormat’s Chief Executive Officer.
Through his speech, Edwin Syahruzad also mentioned his appreciation for this partnership, “This project is a milestone to contribute Indonesia’s commitment to climate change. PT SMI also would thank USAID SINAR for their support in this project”.
About PT Medco Power Indonesia
Established in 2004, Medco Power Indonesia is one of the leading Independent Power Producers under MedcoEnergi group. Operating in the business of IPP and O&M, Medco Power owns and operates power plants with gross capacity over 3.1 GW in 15 locations in Indonesia. Currently Medco Power is developing Ijen Geothermal project in East Java, PV plant projects in West and East Bali. Medco Power is wholly owned by PT Medco Energi Internasional Tbk.
PT Medco Energi Internasional Tbk (“MedcoEnergi”) is a leading Southeast Asian energy and natural resources company listed on the Indonesia Stock Exchange (MEDC-IDX). MedcoEnergi has three key business segments, Oil & Gas, Clean Power and Copper Mining. MedcoEnergi explores for and produces oil and gas primarily in Indonesia and is expanding its presence in Southeast Asia. The Group operates gas, geothermal and hydro power plants in Indonesia through Medco Power Indonesia and a non-consolidated interest in Amman Mineral Nusa Tenggara which operates a large Indonesian copper and gold mine.
About PT Sarana Multi Infrastruktur (Persero) (“PT SMI”)
PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) was established on February 26, 2009 as a State-Owned Enterprise under the coordination of the Ministry of Finance in the form of a Non-Bank Financial Institution (LKBB), with a role and mandate as a catalyst for the acceleration of infrastructure development. PT SMI has various functions and unique products/features to support the acceleration of infrastructure development which not only functions as an infrastructure financing but also as an enabler through the implementation of a Public Private Partnership (PPP) scheme which includes various financial institutions, both private and multilateral. PT SMI actively supports the PPP implementation and encourages the acceleration of infrastructure development in the regions through regional loan products.
PT SMI has three business pillars, namely (1) Funding and Investment, financing for infrastructure projects (2) Consultancy Services, solutions to the needs of professionals and experts in the infrastructure sector, and (3) Project Development, assistance for the Person in Charge of Cooperation Projects (PJPK) inpreparing infrastructure projects.
About Ormat Technologies
With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,200 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,173 MW with a 1,085 MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and an 88 MW energy storage portfolio that is located in the U.S.