TBS Energi Utama Expands Sustainable Transport in Indonesia with ADB Partnership
Deal News | Dec 19, 2024 | Asian Development Bank
The Asian Development Bank (ADB) has entered into a $10 million financing agreement with PT TBS Energi Utama Tbk (TBS) to enhance sustainable transportation in Indonesia, with a focus on increasing the supply of electric motorcycles and a network of battery swapping stations. Known for its large automotive market and high greenhouse gas emissions, Indonesia has only a minor fraction of its millions of motorcycles electrified. This project, a collaboration among ADB, TBS, and DBS Indonesia as a parallel lender, aims to demonstrate the commercial viability of electric motorcycles in the country, thereby encouraging further investments. ADB's funding, partly administered via a $5 million loan from the Australian Climate Finance Partnership, aligns with Indonesia's national climate strategies. TBS, a major energy player, emphasizes that this initiative is not only a business venture but a commitment to a sustainable future. Established in 2021, TBS's Electrum unit will spearhead the e-motorcycle push, aiming to overcome adoption barriers like cost and range concerns. Meanwhile, the ACFP continues to support the wider climate adaptation efforts in Southeast Asia with a focus on economic opportunities for women.
Sectors
- Sustainable Transportation
- Renewable Energy
- Private Equity and Investment
Geography
- Indonesia – The primary focus of the article is on sustainable transportation initiatives being implemented specifically in Indonesia.
- Southeast Asia – The article touches upon regional implications and funding strategies guided by Southeast Asian climate targets and economic improvements.
- Australia – The Australian Climate Finance Partnership, administered by ADB, plays a vital role in financing the project, underlining Australia's involvement.
Industry
- Sustainable Transportation – The article discusses an initiative to increase the supply of electric motorcycles and battery swapping stations in Indonesia, which is a significant development in sustainable transportation.
- Renewable Energy – The funding supports TBS, which has a portfolio including renewable energy, aligning the project with broader climate goals.
- Private Equity and Investment – The financial agreement involves significant backing from ADB and the Australian Climate Finance Partnership, highlighting the role of investment in fueling sustainable projects.
Financials
- $10 million – Total financing for sustainable transportation project, split between ADB and ACFP.
- $5 million – Loan amount provided by ADB directly.
- $5 million – Financing from the Australian Climate Finance Partnership.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Asian Development Bank (ADB) | Lender and Facilitator | Company | ADB provides $10 million financing to support sustainable transport in Indonesia and aims to demonstrate electric motorcycle viability. |
| PT TBS Energi Utama Tbk | Project Implementor | Company | An energy company in Indonesia, leading the electric motorcycle and battery network project. |
| PT Energi Kreasi Bersama (Electrum) | Subsidiary Manufacturer | Company | Founded by TBS, focuses on e-motorcycle manufacturing and battery infrastructure development. |
| Australian Climate Finance Partnership (ACFP) | Co-funder | Company | Provides $5 million of the financing, focusing on climate adaptation and private sector investments. |
| DBS Indonesia | Parallel Lender | Company | Acts as an additional lender alongside ADB in this financing deal. |