Medco Energi Internasional Converts Intercompany Loan to US Dollars

Financial Restructuring Move

PT Medco Energi Internasional Tbk (MEDC), an Indonesian energy company listed on the Indonesia Stock Exchange, has announced the conversion of a loan from its subsidiary PT Medco Energi Global Pte Ltd (MEG) amounting to US$ 41.68 million. The conversion, agreed upon on December 23, 2025, involves changing the loan denomination from British Pounds (GBP) to US Dollars (USD).

Transaction Details

The loan conversion is part of an intercompany loan agreement between MEDC and its subsidiary MEG. This transaction highlights the company's financial management strategies within its corporate structure. The conversion to USD may provide better alignment with the company's operational currency or financial obligations.

Business Implications

This financial restructuring demonstrates MEDC's active management of its corporate financing arrangements. The decision to convert the loan currency could be driven by various factors including currency risk management, operational requirements, or financial planning considerations.

Company Background

Medco Energi Internasional is an Indonesian energy company operating in the oil and gas sector. As a publicly listed company on the Indonesia Stock Exchange (IDX: MEDC), it is required to disclose significant financial transactions and corporate actions.