Leading global law firm Herbert Smith Freehills has advised Japan’s Kansai Electric Power Co., Inc., on the completion of its strategic alliance with PT Medco Power Indonesia (MPI) to develop and operate power plants in Indonesia.
Under the strategic alliance, Kansai, its wholly owned subsidiary Kanden Power-Tech Corporation (KPT), and MPI will jointly develop new gas-fired power plants and expand their power plant operation and maintenance (O&M) business in Indonesia.
The parties have now established a joint business vehicle to take ownership of existing power producers and to begin development of new gas-fired power projects.
One of Japan’s leading energy generation and distribution companies, this is Kansai’s first international power joint venture on this scale.
Part of PT Medco Energi Internasional, Indonesia’s largest listed energy company, MPI owns and operates 18 Indonesian power plants with a total generating capacity of over 3.3GW.
“This transaction continues the sustained trend of regional companies investing in the Indonesian power market,” said Jakarta senior international counsel Matthew Goerke, who co-led the team advising Kansai. “The long-term prospects for Indonesia’s power industry remains very strong and we are very pleased to have acted on this innovative and significant partnership.”
“Herbert Smith Freehills is proud to have worked with Kansai on its first development collaboration with an international power company,” said Singapore partner Jamie McLaren. “Our cross-Asia energy experience and expertise, particularly in Singapore, Japan and Indonesia, was vital to guiding the client through such a complex cross-border deal.”
Partners Matthew and Jamie led the team advising Kansai on this stage of the transaction, assisted by Singapore senior associate Kok Jin Ong. Senior associate Aditya Rachman and associate Paskalia Deviani at Hiswara Bunjamin & Tandjung, Herbert Smith Freehills’ longstanding associate firm in Jakarta, provided crucial Indonesia law support and were instrumental in bringing the deal to a close.
Singapore law advice was provided by director Sandra Tsao and associate Weihong Lin at Herbert Smith Freehills' associate law firm Prolegis.