Saratoga-led consortium buys top Indonesia power producer

Saratoga, headed by Sandiaga "Sandi" Uno, one of Indonesia's most prominent businessmen, leads an investment group that includes the World Bank's International Finance Corp. (IFC), which has contributed $25 million.

The unit, PT Medco Power, is said to be the country's largest independent energy producer, managing seven plants. Medco Energi's CEO Lukman Mahfoedz told Reuters that Saratoga has been brought in to help fund Medco Power's expansion, enabling it to meet he Indonesia's growing demand for electricity. Currently, only 65% of the country's electricity demand is being met, the newswire added.

Mahfoedz added that Medco Power's shares will be divided between Medco Energi and Saratoga Power.

Saratoga has a deep history of investing into Indonesia's energy sector. Uno previously told AVCJ that Saratoga's most iconic transaction was the purchase of a 51% stake in Adaro Energy, a coal mining and processing company that that is now the second-largest coal player in the country. By working with management and local communities to minimize labor force dissatisfaction, Saratoga increased production and profitability, boosting Adaro's coal production from 17.7 million tons in 2001 to 40.6 million tons in 2010. Uno is largely credited for driving that growth.

Adaro listed on the Jakarta Stock Exchange in July 2008, raising $1.3 billion. It remains Indonesia's largest-ever IPO.

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• Topics
• Southeast Asia
• Saratoga Capital Group
• Sandiaga S. Uno
• Indonesia
• energy