PEFINDO has affirmed its idA ratings for PT Medco Power Indonesia

(April 8, 2026)--PEFINDO has affirmed its idA ratings for PT Medco Power Indonesia (MEDP) and its Shelf-Registered Bond I 2025, as well as its idA(sy) ratings for MEDP’s Sukuk Wakalah II Year 2019 and its Shelf-Registered Sukuk Wakalah I Year 2022. Outlook for the corporate rating is stable. The corporate rating reflects our view on MEDP’s position as a strategically important subsidiary of its controlling parent, PT Medco Energi Internasional Tbk (MEDC, idAA-/Stable). The rating is also supported by MEDP’s stable revenue stream, relatively consistent profit margins, and potential growth opportunities from domestic electricity demand. However, the rating remains constrained by execution and operational risks associated with its power projects, an aggressive capital structure, as well as weak cash flow protection metrics.

We may consider a rating upgrade if MEDP demonstrates a sustained improvement in its capital structure and cash flow protection measures. This could be supported by improved operational efficiency, additional revenue streams, deleveraging efforts, and higher cash flow generation. On the other hand, the rating may be lowered if MEDP incurs additional debt beyond projections. Continued divestment of strategic assets, which may weaken its cash flow generation capacity, could also negatively affect the rating. In addition, the rating may also be under pressure if we view that MEDP is no longer considered a strategically important subsidiary of MEDC, as reflected by the material divestment.

MEDP is an independent power producer (IPP) focusing on clean energy generation, primarily from gas, geothermal, and renewable sources, supplying electricity to the state-owned electricity company, PT Perusahaan Listrik Negara (Persero) (PPLN, idAAA/Stable), especially in the western part of Indonesia. As of 2025, the Company has successfully increased its installed capacity, mainly driven by the expansion of the ELB project, and also the commencement of operations of the Ijen geothermal project and the Bali Timur solar PV project. As of the end of 2025, MEDP’s shareholders comprised PT Medco Power Internasional (51.0%) and PT Medco Energi Internasional Tbk (49.0%). (ends)