History of Medco Group
Medco Group’s success was the result of intense hard work over a period of 30 years.
We went through various periods that were not always pleasant, experiencing at least as many obstacles on the surface as we did successes.
Meta Epsi Drilling Company (Medco) was founded by Arifin Panigoro in 1980. During the oil boom from 1979 – 1981, he saw the golden opportunity to joined this business and also the government back then pushed local players to acquire capability and to compete directly with some large-scale foreign contractors in the energy sector. With the government’s support, Arifin partnered with foreign players to win bigger projects installing giant pipelines.
As outlined in the business agreement with his foreign partners, Arifin had given the ownership of the logistics and heavy equipment for the initial projects. With the heavy equipment, Medco branched into other projects and eventually entered the oil and gas drilling business.
“This is the story of Medco’s beginning point. And it wasn’t easy, we fell and got up, and bled,” says Arifin.
In 1983, Medco Group decided to establish PT Multi Fabrindo Gemilang (Multifab), a company specializes in integrated steel manufacturing, starting from engineering, material procurement, manufacturing and material testing, as well as installation of steel construction. Multifab’s goal was to support the Medco Group needs and the demand of the oil and gas industry as well as related sectors especially those in the country.
After gaining success with oil and gas drilling business, Medco Group started to extend their line business. In 1993, Medco Group acquired Bank Saudara, a medium-sized foreign exchange-licensed commercial bank with assets approaching US$ 2 million. In the same year, Medco Group also acquired a 300 km2 palm oil concession on the island of Kalimantan. That acquisition based on the Medco Group’s management plans to provide long term stability in energy supplies.