Transition to Low Carbon Energy

MedcoEnergi's Transition to Low Carbon Energy strategy serves as a roadmap for aligning our business with the evolving energy landscape. This strategy prioritizes a pivot from fossil-based fuels towards renewable energy sources, ultimately contributing to a low-carbon future. In recognition of natural gas' role as a bridge fuel during this energy transition, we are strategically expanding our natural gas production capacity while simultaneously building a robust renewable energy portfolio. This approach allows us to address the region's growing energy demand while mitigating our environmental footprint.

Investment in people for our climate action is also a key enabler. Through digital transformation and structured capability-building programmes, we built in-house climate expertise, delivered e-learning to our workforce and reinforced our commitment to human rights. In 2025, we developed a Just Transition Plan to further uphold human rights and support an inclusive energy transition.

MedcoEnergi is committed to augmenting our electricity supply portfolio through the strategic expansion of gas-fired power generation. The following section details our achievements in gas infrastructure development throughout 2025:

70 MW (Existing) +
39 MW (Add-on Combined Cycle)

Energi Listrik Batam

Batam

• Owned and operated by PT Energi Listrik Batam (ELB)
• The existing Simple Cycle Power Plant (SCPP) has been operating since 2017
• Installation of the 39 MW add-on Combined Cycle unit has been completed, with commercial operations date in November 2025

85 MW (Existing) +
Potential Expansion

Dalle Energy Batam

Batam

• Owned and operated by Dalle Energy Batam (DEB)
• Current capacity of 85 MW with plan to expand its capacity as required by Batam grid system

70 MW (Existing) +
39 MW (Add-on)

Energi Listrik Batam

Batam

• Owned and operated by PT Energi Listrik Batam (ELB)
• The existing Simple Cycle Power Plant (SCPP) has been operating since 2017
• Installation of the 39 MW add-on Combined Cycle unit has been completed, with commercial operations date in November 2025

85 MW (Existing) +
Potential Expansion

Dalle Energy Batam

Batam

• Owned and operated by Dalle Energy Batam (DEB)
• Current capacity of 85 MW with plan to expand its capacity as required by Batam grid system

Geothermal Projects
MedcoEnergi through its subsidiary, Medco Power, is actively expanding its geothermal capacity in Indonesia based on its commitment to deliver clean and reliable energy. Below are the highlights of our key geothermal projects:

110 MW

Ijen Geothermal (Phase 1)

East Java

• Owned & operated by Medco Cahaya Geothermal
• O&M services by Medco Power Geothermal Services
• Potentially reduces 235,000 tCO₂e/year
• Began commercial operations in phases, with the first 35 MW unit commencing in February 2025
• Supplies clean energy to the grid under a 30-year Power Purchase Agreement (PPA)
• New O&M contract for Phase-1 until 2030

60 MW

Bonjol Geothermal

West Sumatra

• Completed exploration activities under the Preliminary Survey and Exploration (PSPE) Bonjol geothermal project in 2025

40 MW

Samosir Geothermal

North Sumatra

• Continued resource studies, including geoscience surveys, with completion targeted in the Q1-2026

110 MW

Ijen Geothermal (Phase 1)

East Java

• Owned & operated by Medco Cahaya Geothermal
• O&M services by Medco Power Geothermal Services
• Began commercial operations in phases, with the first 35 MW unit commencing in February 2025
• Supplies clean energy to the grid under a 30-year Power Purchase Agreement (PPA)
• New O&M contract for Phase-1 until 2030

60 MW

Bonjol Geothermal

West Sumatra

• Completed exploration activities under the Preliminary Survey and Exploration (PSPE) Bonjol geothermal project in 2025

40 MW

Samosir Geothermal

North Sumatra

• Continued resource studies, including geoscience surveys, with completion targeted in the Q1-2026

Solar Photovoltaic (PV) Projects
We have continued to expand our solar PV portfolio, with the following highlights for our projects as of 2025:

MedcoEnergi's Onshore oil & gas assets in the South Sumatra Block, Rimau, and Lematang have successfully completed a series of decarbonization initiatives. These initiatives encompass process efficiency enhancements, solar photovoltaic (PV) installations, and facility footprint reductions. Our offshore assets are also making significant progress in their decarbonization efforts, focusing on operational improvements and the integration of solar PV technology.

Mini Hydropower
MedcoEnergi leverages its subsidiary, PT Medco Hidro Indonesia, to operate two mini hydropower plants in Cianjur, West Java. These facilities, Cibalapulang and Pusaka Parahiangan, boast a combined capacity of 18 MW.

Wind Energy Project

Medco Power has installed two 140-metre measurement towers in West Sumbawa as part of the initial feasibility study for its first wind power project in December 2025. The towers will collect wind and meteorological data over the next 12 months to assess the area’s renewable energy potential and support further technical, environmental, and commercial evaluations. This initiative reflects Medco Power Indonesia’s commitment to expand its clean energy portfolio and support Indonesia’s energy transition..

Electric Vehicles (EV) Ecosystem
Medco Power further contributed to energy transition by expanding the number of Electric Vehicle Charging Units (EVCUs) at The Energy Building in November 2025. This enhancement confirms Medco Power’s continued commitment to support government initiatives to accelerate the adoption of electric mobility and reduce carbon emissions nationwide.

Pursuing Decarbonisation through CCS/CCUS
Carbon Capture and Storage (CCS) is part of our climate change strategy in building our commitment to net zero. MedcoEnergi’s Oil & Gas PSCs have the potential to provide CO₂ storage and management services for neighbouring high-CO₂ gas fields. These PSCs may serve as regional CO₂ storage hubs for CO₂-intensive industries.