TBS Energi's Waste Business Displaces Coal Dominance

Jakarta, CNBC Indonesia — PT TBS Energi Utama Tbk (TOBA) has undergone a green business transformation, recording a significant shift in revenue composition during the 2025 financial year. The company has now established waste management as its primary revenue contributor, displacing the coal sector which previously dominated operations.

The repositioning strategy has proven successful, with the waste management segment generating revenues of US$155.4 million throughout 2025. This figure represents 41% of TOBA’s total revenue, demonstrating the company’s successful portfolio diversification into more sustainable energy sectors.

The substantial increase in the waste management segment has been largely driven by the completion of a strategic acquisition of Sembcorp Environment (Cora Environment) in Singapore. This corporate action not only strengthens the company’s position as a leading waste management player in the regional sector, but also provides stable revenue streams through long-term contracts.

Conversely, revenues from the mining and coal trading sector have contracted significantly to US$194.6 million, accounting for just 51% of total company revenues. This decline is marked when compared with the previous year’s composition, where the sector still dominated at 81%.

TOBA Director Juli Oktarina explained that the reduced exposure to coal represents an integral part of the company’s strategy to accelerate the transition towards a lower-carbon portfolio.

According to her, the adjustment decision, whilst resulting in net losses due to declining coal prices and the divestment of steam power plants, also constitutes the company’s strategy to secure higher-quality future cash flows.

“Following strategic repositioning of our business foundation in 2025, we look forward to 2026 and the years ahead with enthusiasm. The structural adjustment decision was made with consideration for long-term interests, to accelerate growth in three pillars of our future business — waste management, renewable energy, and electric vehicles,” said Juli in a written statement on Monday (9 March 2026).

The company is confident that business diversification is the key to resilience in facing global commodity price volatility. With solid fundamentals maintained, the company successfully sustained adjusted EBITDA at US$47.2 million and increased cash reserves to US$102.3 million.