Publications

In October 1994, P.T. Medco Energi Corporation became the first public listed oil company on the Jakarta Stock Exchange, opening up the energy sector for local investors and foreign fund investment.As a result of the listing, the company raised capital funds amounting to US$ 44 million before costs, which is being used for funding of its projects. These projects include funding of gas exploration and production projects in East Kalimantan, the purchase of a jack-up rig and provision of working capital for projects under negotiation, but not yet finalized.The importance of this method of raising funds is that it is, generally, the least expensive source of company financing. With world-wide investor interest in Asian Stocks, it is feasible for both local Indonesian oil and gas companies, and local subsidiaries of international companies to raise funds for their oil and gas activities.With limited capital resources available to an international company headquarters, the strategic floating of subsidiary companies could help to increase sources of capital for investment in its overseas local companies.The purpose of this paper is to describe Medco Energi's experience in the Initial Public Offering (IPO) process, as well as highlight the role of technical personnel in these processes.