Medco Energi Management Cites External Factors Behind Market Volatility
PT Medco Energi Internasional Tbk (MEDC) has provided an official explanation to the Indonesia Stock Exchange (IDX) regarding recent volatility in the company’s share transactions. In an official letter dated 4 June 2026, management asserted that to date, there is no material information or facts that have not been disclosed to the public which could improperly affect the company’s securities or investor investment decisions.
Medco Energi Corporate Secretary, Siendy K. Wisandana, stated that the fluctuations in the oil and gas issuer’s shares were purely caused by a combination of external factors and global market sentiment. One primary trigger was the slump in global crude oil prices of almost 8% in early to mid-May 2026. Fading optimism regarding the conflict in the Middle East between the United States and Iran caused Brent crude prices to fall to around USD 101 per barrel and WTI to USD 95 per barrel, which automatically eroded the company’s upstream profit margin prospects.
In addition to commodity market pressure, the Indonesian capital market in general also experienced massive sell-off pressure (passive outflow) of tens of trillions of rupiah in mid-May 2026. This was triggered by an MSCI index rebalancing decision which dropped a number of Indonesian stocks, thereby prompting large-scale portfolio selling by institutional investment managers and foreign investors on the domestic exchange. This condition also affected MEDC’s share movement in the secondary market.
From an internal performance perspective, market participants are currently also digesting the release of the Company’s periodic financial report. Fundamentally, Medco Energi’s financial performance recorded a significant decline in net profit, reaching 72.5% compared to the previous year’s achievement. This factor in the profit decline became one of investors’ main considerations in reassessing their portfolio positions.
The negative sentiment was further exacerbated by the Rupiah exchange rate movement which continued to weaken, touching a new psychological level against the US Dollar throughout late May 2026. Although Medco has a revenue structure based on US Dollars, the company’s debt burden and funding which are also denominated in foreign currency increased the perception of operational fluctuation risk in the eyes of domestic investors. Management confirmed these dynamics are purely free market movements.
Concluding its statement, MEDC management stated it was unaware of any irregular activities by certain shareholders or plans for a change of ownership by the controlling shareholder. The Company also asserted it has no plans to undertake strategic corporate actions within the next three months that could affect its share listing status on the IDX. The nearest agenda to be implemented in the near future is solely the Annual General Meeting of Shareholders (AGM) according to the company’s regular cycle.