Successfully Leaving Coal Behind, TOBA Leads Green Business Transition in Indonesia
The bold move by PT TBS Energi Utama Tbk (TOBA) to transform from a coal-based company towards a greener and more diversified business is now bearing fruit and gaining widespread recognition. Based on the latest research from the Energy Shift Institute (ESI) August 2026 edition titled ‘Indonesia’s Coal Sector: Outlook, Risks, and Mitigation Strategies’, TOBA has been named as the company that has most successfully and clearly demonstrated its diversification progress compared to other coal companies. In the report analysing 13 coal mining companies through seven stages of diversification, TOBA was assessed as having successfully taken the lead, having reached the revenue mix stage. Meanwhile, many of its competitors were considered to still be stuck at the narrative stage.
TOBA’s diversification direction is unique and directly targets the heart of the energy transition. Based on ESI’s mapping, TOBA’s portfolio now focuses on three main pillars: renewable energy, electric vehicles, and waste management. This approach differs from several other players who prefer the coal downstreaming route or expansion into the minerals and metals sector. In fact, TOBA is placed as one of the issuers with the highest level of revenue diversification within ESI’s analysis group.
TOBA’s fundamental corporate change is strongly reflected in its first quarter 2026 financial report. Sustainable business lines are beginning to dominate, while dependence on coal continues to be reduced. TOBA’s total revenue soared to US$86.29 million in the first quarter of 2026, an increase of approximately 20.6% from US$71.52 million in the same period the previous year. Gross profit grew significantly from US$7.07 million to US$10.38 million.
Interestingly, revenue from waste processing and disposal reached US$51.96 million in the first quarter of 2026, surging from US$9.49 million in the same period the previous year. TOBA also recorded a rapid increase in EV sales and leasing to US$3.20 million, up from US$1.35 million. Plantation products contributed revenue of US$1.60 million. Meanwhile, coal revenue was successfully reduced to US$29.52 million in the first quarter, compared to US$47.95 million in the same quarter the previous year.
Despite the rapid diversification, ESI noted that TOBA is currently still in the low operating margin-high diversification area. This means that the high contribution of non-coal businesses has not yet been directly accompanied by thick profitability margins. However, this is not a sign of strategic failure. MNC Sekuritas analyst Christian Sitorus agreed with ESI’s findings. He explained that low margins are a logical short-term consequence of the early phase of investment and adjustment of new business operational models.
‘As long as the business transformation has begun to be reflected in revenue, room for efficiency also opens up over time. For TOBA, revenue contribution from sustainable businesses such as waste management and EV is already significant and visible in the first quarter of 2026. Margins and profitability will follow going forward,’ Christian explained. He added that the results of a major transformation usually only begin to feel optimal in the third to fifth year. Before operational scale and asset utilisation rates reach their peak, the company requires disciplined execution. ‘TOBA is still in the early phase of transformation from a coal company to a sustainable business. Its development has been positive so far. Going forward, a sustainable growth story, thick profitability and margins, and strong cash flow are the direction TOBA is heading,’ he concluded.