Jakarta, Indonesia, February 24, 2012—
IFC, a member of the World Bank Group, has acquired an approximately 11 percent ownership interest in PT Medco Power Indonesia, an independent power producer that generates electric power through natural gas and hydroelectric sources, providing cleaner electricity to more than 2 million residential customers in Indonesia by 2016.
This investment is part of a $112 million equity investment arranged by a consortium of financial investors led by Saratoga Capital to provide growth capital to the company. IFC’s investment will assist PT Medco Power Indonesia in its plans to complete five additional power projects, increasing the company’s total generation capacity to approximately 390 megawatts. The company will provide cleaner electric power, with approximately 500,000 tons equivalent of carbon dioxide emissions avoided per year compared with coal-fired power generation.
Sandiaga Uno, Founding Partner of Saratoga Capital, said, “Saratoga and IFC’s partnership has gone back a long way and we are excited to be working closely with them through this investment in PT Medco Power Indonesia. Together, we look forward to improving Indonesia’s power infrastructure and build a better Indonesia.”
“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.”
IFC has been at the forefront of addressing infrastructure development challenges. IFC’s engagement in this project helps PT Medco Power Indonesia consolidate its position as a provider of sustainable energy solutions while expanding into new areas such as small-scale hydropower projects.
About Saratoga
Saratoga Capital is a leading Indonesia-focused private equity manager headquartered in Jakarta, with a second office in Singapore. Founded in 1998, Saratoga Capital currently manages the Saratoga Asia II Fund. The fund invests in control-oriented, buy-out opportunities as well as provides minority growth capital, in each case, focusing on market-leading medium-sized companies in Indonesia / Southeast Asia. Sectors that the firm has invested in include mining, oil and gas, telecommunication, infrastructure, shipping, plantations and consumer goods and services
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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