Collaboration with DBS Indonesia - TBS Energi Utama Drives Decarbonisation through CTP
Collaboration is currently very important to preserve the environment. From this premise, PT TBS Energi Utama Tbk (TBS) has launched the Climate Transition Plan (CTP) as a strategic roadmap to achieve carbon neutrality targets by 2030. This initiative is fully supported by Bank DBS Indonesia as the main financial institution facilitating sustainable funding to accelerate the low-carbon energy transition in Indonesia.
Juli Oktarina, Director of PT TBS Energi Utama Tbk, stated in a press release in Jakarta yesterday that TBS’s Climate Transition Plan is a tangible commitment and credible strategic guide towards decarbonisation, focusing on the gradual cessation of coal operations, reinvestment in low-carbon growth, and operational efficiency towards the 2030 net-zero target. “Supported by a US$600 million investment and collaboration with DBS Bank Ltd (DBS Bank), this plan affirms that sustainability is not an add-on to TBS’s business — but the core of the company’s long-term growth strategy,” she said.
To date, TBS has achieved various important milestones recorded in the CTP. For context, TBS’s Climate Transition Plan is an evolution of the TBS2030 strategy launched in 2022, with more comprehensive guidance on operational and portfolio decarbonisation. Through transition financing collaboration from Bank DBS Indonesia, these decarbonisation ambitions are realised in a tangible and credible manner. DBS Indonesia’s support strengthens TBS’s access to sustainable financing while enhancing investor confidence in the company’s long-term transformation strategy.
Through the publication of this CTP, TBS becomes one of the first integrated energy companies in Indonesia to openly formalise its transition strategy in the form of a Climate Transition Plan, making the company’s low-carbon transition more credible and measurable for the financial industry and stakeholders.
Through this plan, TBS commits to shifting its revenue base from fossil fuel-based businesses to three low-carbon business pillars, namely waste management, renewable energy, and electric mobility (EV). The preparation of the CTP also refers to international practices in the European Sustainability Reporting Standards (ESRS) E1 - Climate Change, including disclosure of transition strategies, emission targets, action plans, as well as relevant financial implications and governance.
As a concrete step in implementing the CTP, TBS records an important historical milestone through the divestment of two coal-fired steam power plant (PLTU) subsidiaries in 2024. This strategic step is projected to significantly reduce the company’s total annual operational emissions (Scope 1 and 2), given that the divested PLTU assets in 2024 contributed around 86% to total operational emissions based on full-year data prior to the transaction.
In addition, TBS plans to cease coal mining operations in 2027, consistent with its strategic plan to focus on low-carbon businesses. Waste Management: Building a regional waste platform through the acquisition of AMES, ARAH, and Cora Environment (formerly Sembcorp Environment), Singapore’s largest integrated waste management company.