Press Release: Inauguration of Batam power plant

On October 30, 2004, PT Mitra Energi Batam (?MEB?), a joint power venture established by and among PT Medco Energi Menamas, a wholly owned subsidiary of PT Medco Energi Internasional Tbk. (?MedcoEnergi?) 54%, PT PLN Batam (?PLN?) 30% and YPK PLN (?YPK?) 16%, will inaugurate the first gas-powered plant in Batam Island.

The power plant has capacity of 55.5 megawatt which uses 2 Rolls Royce engines as generators, each with capacity of 27.75 megawatt. With gas as fuel, it is expected that power generation cost would be much lower that utilizing diesel fuel for power generation. Gas utilization would also be much cleaner compared to diesel fuel. This would be the first step for PLN towards its effort in diversifying its fuel for power generation, which thus far had been using diesel fuel for all of its power generation in the island. The gas would be supplied by PT Perusahaan Gas Negara (?PGN?). In the future, MEB plans to expand its capacity by installing combined cycle conversion, which would further improve efficiency of the plant.

Total installed power capacity on Batam Island is 180 Megawatt. Therefore, this gas-powered plant project would become an important integral system for the 150 kV systems on the island. In addition, the financing for this power plant would be the first project financing for power project by Indonesian banks after the Indonesia financial crisis in 1998, and it is expected that the project signals the return of trust from national banks to finance the infrastructure sector in Indonesia. (end of release)

For further information please call:
PT Medco Energi Internasional Tbk
Hilmi Panigoro - CEO/Corporate Secretary
Phone: 021-2505459, Fax: 021-2505536
E-mail: medc@medcogroup.com