JAKARTA - PT Medco Energi Internasional Tbk (MEDC) is in the process of selling a 49% stake in one of its subsidiaries, PT Medco Cahaya Geothermal (MCG), to Ormat Geothermal Power for an undisclosed amount. Medco currently owns 100% of MCG through PT Medco Power Indonesia (MPI).
MCG owns the 110-MW Blawan-Ijen Geothermal Power Plant in East Java and has an electricity purchase agreement with PT PLN (Persero) for 30 years. The power plant is currently under development and scheduled to commence operations by the end of 2022.
Previously Medco has partnered with Ormat for the development of the Sarulla Geothermal Power Plant in Tapanuli, North Sumatra. According to MPI CEO Eka Satria, Medco’s latest collaboration with Ormat is expected to provide additional value to Medco stakeholders and support the Indonesian government’s efforts to develop the renewable energy sector. (MS)