Medco Energy, A Company Owned By Arifin Panigoro Conglomerate Forms Strategic Alliance With Japanese Electricity Company

Conglomerate Arifin Panigoro. (Photo: Doc. Forbes)

JAKARTA - PT Medco Energi Internasional Tbk announced the completion of the transaction to form a strategic alliance between its subsidiary PT Medco Power Indonesia and Kansai Electric Power Company from Japan.

Medco Energy President Director Hilmi Panigoro said the alliance will work together through a new jointly owned business unit to develop and operate gas-fired power plants, as well as expand its operations and maintenance business in Indonesia.

In addition, the alliance will bring together Kansai Electric's global technical expertise with Medco Power's experience in developing and operating power plants in Indonesia.

"We hope this strategic alliance can develop the electricity business together", said Hilmi Panigoro, quoted from Antara, Friday, April 9.

Meanwhile, Medco Power President Director Eka Satria said the alliance with Kansai Electric will further strengthen Medco Power's capabilities to continue to develop its standalone gas power generation (IPP) business as well as its operations and maintenance business in Indonesia through the application of the latest technology and the best international standards.

Medco Power was founded in 2004, engaged in the gas business and renewable electricity producers with a gross contract capacity of approximately 3.100 megawatts, as well as operating and maintenance services. The Company appointed JP Morgan as Medco Power's sole financial advisor.

Kansai Electric is one of Japan's largest power companies located in 13 countries in Asia, Europe, and the United States with a total generating capacity of 33.5 gigawatts.

In the first trading session today, Medco Energi shares with the issuer code MEDC closed up 1.72 percent at IDR 590 per share with a transaction value of IDR 10.76 billion.