Diversifying, expanding and sharing<\/p>\n
Debuting as an oil drilling contractor about two decades ago,
\nMedco Group has since that time expanded its reach into different
\nbusinesses in the land and water of Sumatra, Kalimantan, Java,
\nBali and Sulawesi.<\/p>\n
When one discusses the Medco Group, one is talking about a
\npioneer among locally owned companies in the country's oil and
\ngas industry.<\/p>\n
Starting with one oil drilling rig in 1980, Medco Group has
\nexpanded into numerous oil and gas-related activities, such as
\nexploration, production, onshore and offshore drilling, and
\npipeline construction, as well as other non-related businesses
\n(see graph A).<\/p>\n
\"But our core business is still the oil and gas sector,\" said
\nYani Panigoro, a member of Medco Group's board of directors. And
\nYani promised the group would continue to focus on its core
\ncompetence in the future.<\/p>\n
In the oil and gas sector, the group has PT Medco Energi
\nInternasional, which has been publicly listed since Oct. 12,
\n1994. This company supervises three other subsidiaries, namely PT
\nApexindo Pratama Duta (offshore and onshore drilling), PT Exspan
\nNusantara (oil and gas exploration and production) and PT Medco
\nMethanol Bunyu (petrochemical industry).<\/p>\n
Early in 1988, the Medco Group took its first steps into the
\npipeline manufacturing and construction business, founding PT
\nCitra Panji Manunggal, which today is widely known as a leading
\nunderwater pipeline construction firm.<\/p>\n
Five years earlier, PT Multifabrindo Gemilang was founded to
\nsupport the core business activities of the group. The firm
\nspecializes in fabricating pressure vessels, which are very much
\nneeded by companies in the oil and power industries.<\/p>\n
In 1992, Medco expanded into the banking sector by taking over
\nthe Bandung-based Bank Himpunan Saudara 1906, known as Bank HS
\n1906, which specializes in providing financing to small and
\nmedium-scale businesses (SMEs). Two years later, the group
\nfounded PT Sarana Jabar Ventura, also in Bandung, with the same
\ngoal of helping SMEs by providing venture capital.<\/p>\n
In the food industry, Medco Group set up PT Sentrafood
\nIndonusa in 1994, with its factory in Karawang, West Java,
\nproducing instant noodles under the brand names of Salam Mie and
\nCinta Mie, as well as Planet crackers. To fulfill the unexpected
\nmarket demand, Sentrafood set up a subsidiary, PT Sentraboga
\nIntiselera, which has a production plant in Pandaan, East Java.<\/p>\n
In the agribusiness sector, the group established PT Medco
\nAgro in 1993. The company manages a 50,000-hectare palm oil
\nplantation in Central Kalimantan. At the end of this year, the
\nsubsidiary will complete work on a crude palm oil (CPO) plant in
\nthe area, which will allow it to meet the growing domestic and
\noverseas demand for CPO.<\/p>\n
The country's unique geographical situation, with its
\nthousands of scattered islands, led the Medco Group to found PT
\nMetrix Indonesia to distribute goods. Currently, Metrix owns some
\n70,000 outlets with a distribution network stretching from
\nGreater Jakarta to other major towns in Java, Sumatra, Bali and
\nSulawesi.<\/p>\n
Together with competent partners in the hotel industry, Medco
\nfounded PT Meta Archipelago Hotels, which currently oversees
\npublicly listed PT Grahamas Citrawisata (which co-owns Novotel
\nBukittinggi in West Sumatra), PT Satria Balitama (Hotel Bali
\nImperial in Bali) and PT Bina Inti Dinamika (Hotel Preanger in
\nBandung).<\/p>\n
In the construction and management industry, the group owns a
\nshare at PT Graha Niaga Tata Utama, which is developing the Graha
\nNiaga tower on Jl. Sudirman in Jakarta.<\/p>\n
Sharing the light<\/p>\n
While busily diversifying and expanding its businesses, Medco
\nGroup remains highly committed to sharing a percentage of its
\nrevenues with the local communities and administrations near its
\nareas of business operations.<\/p>\n
Since its founding, owners and management of the group have
\nbeen committed to making significant contributions to the
\nimprovement of the social welfare of local communities, and the
\ndevelopment of facilities and infrastructure badly required by
\nlocal administrations.<\/p>\n
In general, the community development programs of Medco and
\nall its subsidiaries are carried out in different ways, such as
\nthrough recruitment, scholarships, medical aid, food aid and
\nfinancial support, such as providing low-interest loans to local
\nSMEs.<\/p>\n
\"So far this year we have spent Rp ..... for our community
\ndevelopment programs,\" Yani explained. On average, she added, the
\ngroup spends Rp ... per annum and plans to continue increasing
\nthis amount gradually.<\/p>\n
\"The public might not know very much about Medco's community
\ndevelopment programs because we prefer to keep a low profile in
\nthe work we do with local communities,\" she said.<\/p>\n
These community development programs, while numerous, are only
\na small portion of the grand and noble aspirations inherent in
\nthe establishment of Medco Group as \"a bridge toward better
\nnational welfare\".<\/p>\n
And as for the group's strong management team, the journey of
\nsuccess for Medco will never have an end. Just like life, every
\nday is a challenge. And Medco's strong workforce and management
\nteam dare to take on any and all challenges that lie ahead.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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