Jakarta – PT TBS Energi Utama Tbk (TBS) has partnered strategically with the Asian Development Bank (ADB) and Bank DBS Indonesia to accelerate the adoption of electric motorcycles in Indonesia.
TBS said in a statement late last month that it will support its initiatives through PT Energi Kreasi Bersama (Electrum) through a USD15 million financing package, which includes USD5 million from ADB, USD5 million from Bank DBS Indonesia, and USD5 million from the Australian Climate Finance Partnership (ACFP), which ADB administers.
This USD15 million funding will be used to procure electric motorcycles and develop battery-swapping stations (BSS) across Indonesia. The initiative is expected to reduce greenhouse gas emissions by up to 123,000 tons per year while providing a more eco-friendly, affordable, and accessible mobility solution for the public.
The company said this initiative marks a pivotal moment for TBS. It represents a dynamic blend of grant, development, and commercial financing—the first of its kind for an infrastructure project in Indonesia. The initiative highlights TBS’s evolution into a more resilient and collaborative institution capable of fostering strategic alliances with Development Finance Institutions (DFIs) to unlock greater opportunities for sustainable growth.
“TBS is proud of the confidence ADB, ACFP and Bank DBS Indonesia have placed in Electrum, highlighting its immense potential in the electric vehicle sector and energy transition in Indonesia. We all share the same vision that energy transition is critical for a better society,” said Pandu Sjahrir, co-CEO of TBS.
“This development financing not only strengthens our resolve but also equips us with the resources and partnerships needed to turn this vision into reality,” he said.
Indonesia Country Director of ADB Jiro Tominaga said sustainable transportation is crucial for Indonesia’s green future. The loan facility aims to accelerate the adoption of electric vehicles through TBS Energi’s subsidiary, Electrum.
He noted the agreement with TBS Energi, alongside the Australian Climate Finance Partnership (ACFP) and DBS Indonesia as a parallel lender, will support critical investments in expanding the electric motorcycle fleet, installing battery swapping stations across Indonesia and reducing annual greenhouse gas emissions by 123,000 tons.
“As ADB’s first private sector financing in Indonesia’s e-vehicle industry, we aim to demonstrate the commercial viability of e-motorcycles while making sustainable transport more accessible to Indonesians,” he said.
Indonesia has the largest automotive market in Southeast Asia, one of the country’s biggest sources of greenhouse gas emissions. Road transport is a major contributor to these emissions. In 2022, there were around 148 million two-wheelers in the country, but only 26,000 were electric.
“Indonesia is rapidly urbanising and seeing a surge in private vehicle ownership, particularly motorcycles. By working with TBS in this project, ADB aims to increase the reliability of e-motorcycles and expand sustainable transport options for Indonesians,” said ADB Director General for Private Sector Operations Suzanne Gaboury. (Roffie Kurniawan)
