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Jakarta Post

Medco looks for strategic investors to support power plant development

  • News Desk

    The Jakarta Post

Jakarta   /   Tue, August 20, 2019   /   01:07 pm
Medco looks for strategic investors to support power plant development A woman walks past the Medco Energi Internasional office in Jakarta. (Kontan/Cheppy A. Muchlis)

Publicly listed energy company PT Medco Energi Internasional plans to sell shares of its subsidiary PT Medco Power Indonesia (MPI) as a part of its strategy to reorganize its portfolio and strengthen power plant development.

Medco Energi chief planning and financial officer Anthony R. Mathias said on Monday that his company had appointed US-based investment bank JP Morgan Chase to help with the process, which would be carried out through initial public offering (IPO).

He added that the process was in the final stage and the company was reviewing several offers it had received without elaborating further.

“Our focus is to invite and to partner with a company that can help us with MPI’s plant [development],” Anthony said during a press conference at the Indonesia Stock Exchange (IDX) on Monday.

MPI is now focusing to expand its business in converting natural gas to electric power, including the development of an independent power producer, Riau IPP.

The project development began in 2018 and has reached 34 percent completion. The power plant is expected to begin operation in the fourth quarter of 2021 and generate some 275 megawatts of electric power within Sumatra region.

As of June, MPI has sold 1,253 GWh of electricity generated from its five operating power plants in North Sumatra, Riau Islands, Lampung, West Java and East Java. (asp)