Jakarta. Energy company TBS Energi Utama recently announced that it had signed a financing package with the Asian Development Bank (ADB) and Bank DBS Indonesia to accelerate the adoption of electric motorcycles in Indonesia.

The financing package is worth $15 million (Rp 241.17 billion). It consists of $5 million from ADB, $5 million from Bank DBS Indonesia, and another $5 million from the Australian Climate Finance Partnership (ACFP) administered by ADB.

This investment will support TBS’ initiatives through its electric two-wheeler company Energi Kreasi Bersama (Electrum). TBS will use the $15 million funding for the procurement of electric motorcycles and the development of 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. This initiative marks a pivotal moment for TBS, representing a dynamic blend of grant, development, and commercial financing -- the first of its kind for an infrastructure project in Indonesia. 

It 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 has 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 a critical component for a better society. This development financing not only strengthens our resolve but also equips us with the resources and partnerships needed to turn this vision into reality, " Pandu Sjahrir, Co-CEO of TBS, was quoted as saying in a recent press statement.

According to Pandu, Electrum aims to address key barriers that have hindered the adoption of electric vehicles, such as high upfront costs and concerns over range. 

“By offering high-quality electric motorcycles supported by an extensive battery-swapping network, we aim to provide a solution that truly meets the needs of the public. Support from all of our partners not only validates our vision but also ensures this initiative delivers meaningful environmental, social, and gender impacts, benefiting all segments of society,” Pandu said.

As the largest automotive market in Southeast Asia, Indonesia has over 148 million motorcycles in operation, but only around 26,000 are electric. Reducing emissions in the transportation sector is a key step in achieving Indonesia's net-zero emissions target by 2060. 

Through Electrum, TBS is introducing innovative solutions that not only focus on sustainability but also make it easier for the public to transition to practical and affordable electric transportation.

“Indonesia is rapidly urbanizing 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. 

“As ADB’s first private sector financing for the country’s e-vehicle industry, the project can demonstrate the commercial viability of e-motorcycles and encourage further investments to encourage their use.”

Support from ACFP -- a program funded by the Australian Department of Foreign Affairs and Trade -- also highlights the importance of combining climate action with social benefits in developing the electric mobility industry, including empowering women and expanding economic opportunities for underrepresented communities.

Bank DBS Indonesia expressed its enthusiasm about this partnership. 

“We are very excited to be part of the effort to accelerate the adoption of electric vehicles in Indonesia. No one can tackle the challenges of climate change alone; developing a robust ecosystem through multi-stakeholder partnerships will speed up the transition to a low-carbon economy. Highlighting our role as green loan coordinator and a trusted partner for sustainable financing solutions, this program is in line with Green Loan Principles and is evidence of Bank DBS Indonesia’s commitment to being a financial institution that supports Asia’s transition to a low-carbon future,” said Heru Hatman, Executive Director for Institutional Banking Group of Bank DBS Indonesia.

Since founding Electrum in 2021, TBS has continuously innovated in areas such as electric motorcycle assembling, battery technology, and charging infrastructure. These efforts form a key part of TBS2030's strategy, which is committed to making green businesses not only sustainable but also profitable.

Pandu Sjahrir reaffirmed TBS's long-term vision for a greener future. 

“This collaboration with ADB, ACFP and Bank DBS Indonesia is setting a new benchmark for infrastructure financing in Indonesia – one that supports innovation, resilience, and long-term growth in the nation’s energy transition journey. It also accelerates our efforts to redefine transportation in Indonesia. Electrum is more than just a business. It is our commitment to building a cleaner and more resilient future for Indonesia.