The International Finance Corporation (IFC) has agreed to buy an 11 per cent stake in PT Medco Power Indonesia in a bid to help the independent power producer (IPP) achieve its growth plans.
The investment is part of a $112 million equity investment in Medco Power by a consortium of financial firms. Medco operates natural gas-fired and hydroelectric power plants in Indonesia and is aiming to expand its generation portfolio over the next few years.
Saratoga Capital, which leads the consortium of investors, said that the equity investment and Medco Power’s plans would improve Indonesia’s power infrastructure and “build a better Indonesia”.
Medco Power is planning to complete five new power projects and take its total generating capacity to 390 MW.
“Infrastructure development including power and clean energy has been one of IFC’s focus areas,” said Sarvesh Suri, IFC Country Manager for Indonesia. “IFC’s investment in PT Medco Power Indonesia will help catalyze private sector investment in Indonesian independent power producers, while demonstrating the viability of cleaner energy sources in this country.”
