The company was established in 2006 and commenced its business activities in enviromental friendly electric power generation. Electricity demand in Indonesia continues to outpace supply growth. The potential growth of electricity demand is restricted by the capability to increase the generation and distribution capacity. The ratio of electrification in Indonesia is only 54% and the electricity crisis is mostly located in Sumatra and Kalimantan. Currently, the government is encouraging utilization of coal to generate power considering that coal is available in abundance in Indonesia. However, coal combustion produces high CO2 emissions and coal is definitely not so clean source of energy. New opportunity in re-introducing the long abundant Indonesian gas resources which was rising in investment in the early 1990s but again suspended due to the financial crisis that hit the country in the late 1990s has brought PT Meppo-Gen as a joint venture company of Metaepsi, PJB (PLN’s subsidiary), Widjayatunggal Sejahtera and Portek System, to plan, build and operate 4 x 40 MW combined cycle gas powered power plants in Gunung Megang, Muara Enim District, South Sumatra Province. The produced power will be connected to South Sumatra-Riau grid. The gas supply for the power generation is secured through a purchase agreement with Medco E&P.

The first Phase (Phase I) 2 x 40 MW has been under construction since March 2006 and is expected for commissioning in November 2006. The second phase (Phase II) 2 x 40 MW is expected to start the construction phase in January 2007 and the commissioning phase in October 2007.

This project which consider as a more environmentally friendly due to the usage of natural gas instead of more polluted sources as the source of fuel, has been applied for “Clean Development Mechanism (CDM)” as part of Certified Emission Reductions (CER) program endorsed by the United Nation based on Kyoto Protocol Agreement.