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Medco Energi & SMI to partner on financing for geothermal exploration in Indonesia

Drilling rig at Sarulla project, partly owned by PT Medco Energi, Indonesia (source: Sarulla Operations)
Alexander Richter Alexander Richter 20 Dec 2018

PT Medco Energi Internasional Tbk (MEDC) through its subsidiary, PT Medco Power Indonesia, has signed a memorandum of understanding with PT Sarana Multi Infrastruktur (SMI) to develop financing for geothermal projects in the exploration phase.

Announced yesterday from Jakarta, PT Medco Energi Internasional Tbk (MEDC) through its subsidiary, PT Medco Power Indonesia, which is engaged in electricity production, has signed a memorandum of understanding with PT Sarana Multi Infrastruktur (SMI) to develop financing for geothermal projects in the exploration phase.

PT Sarana Multi Infrastruktur (SMI) is a company engaged in the field of infrastructure financing. Established on 26 February 2009, PT SMI is a State-Owned Enterprise (SOE) with its total capital shares owned by the Republic of Indonesia through the Ministry of Finance. PT SMI implements the mandate as the catalyst in fostering infrastructure financing in Indonesia. PT SMI is managing the geothermal risk mitigation scheme funded by the World Bank and announced last year.

Medco Power and SMI have agreed to exchange information in business and programs that can support the development of geothermal project financing conducted by Medco Power through its subsidiary, Medco Cahaya Geothermal, which is currently exploring Blawan, Ijen.

“This is a new breakthrough because until now there is still no financing for geothermal projects in private electricity companies that are still in the exploration stage,” Eka Satria, President Director of Medco Power, said this week.

In the future Medco Power and PT SMI will work together to realize the financing of geothermal exploration development projects in private electricity companies in Indonesia.

Darwin Trisna Djajawinata, Project Director of SMI’s Development and Advisory, said that currently SMI is prioritizing assistance for environmentally friendly infrastructure projects.

Medco Power is an independent power plant producer that is under the auspices of the MedcoEnergi business group. At present, Medco Power owns and operates power plants with a total gross capacity of 645 MW (IPP) and runs operation and maintenance services for third-party (O & M) plants with a total capacity of 2,489 MW.

In the near future, Medco Power will begin the development of the Riau PLTGU project (275 MW), Ijen PLTP (110 MW) and Sumbawa Solar Power (2x20MW). Going forward, MPI will continue to prioritize business development in the clean and renewable energy sector.

“This is in line with Medco Power’s vision to become an environmentally friendly IPP company and a reliable O & M service provider with a mission to build and operate IPPs fuelled by natural gas, geothermal and other renewable energy such as solar power and gas infrastructure,” Eka said.

Source: Dunia Energi