TBS (TOBA) Becomes IDX's First Green Transition Equity

JAKARTA, investor.id – PT TBS Energi Utama Tbk (TOBA) has become the first company in Indonesia to receive the Green Equity Transition designation from the Indonesia Stock Exchange (IDX).

This category is granted to listed companies whose businesses are measurably moving towards a low-carbon economy, assessed on the basis of revenue and investment allocation committed to green activities.

The designation took effect on 28 August 2026, at the launch of the IDX Green Equity Designation, which involved three listed companies. TBS was the only company designated in the transition category.

“We applaud the IDX’s initiative in introducing this designation, which gives investors a measurable and independently reviewed picture of how far our business has transitioned. This designation sets a standard we must maintain every year, and we hope it connects us with investors who are precisely looking for companies like ours,” the company said in an official statement quoted on Monday (7 September 2026).

The designation framework rests on five pillars adapted from the Green Equity Principles of the World Federation of Exchanges (WFE): financial contribution, taxonomy alignment, governance, periodic assessment, and public information disclosure. Companies must demonstrate that more than half of their annual revenue, or more than half of their operating and capital expenditure, is in green or transition activities as defined in the Indonesian Sustainable Finance Taxonomy (TKBI). Each designation is reviewed annually by a recognised external review provider, and the IDX may amend or revoke it.

The designation was assessed on the basis of TBS’s audited annual financial statements for the 2025 financial year (FY2025), when its sustainable (non-coal) infrastructure business still contributed 47% of consolidated revenue. It was this revenue mix that placed TBS in the transition category.

IDX Director of Business Development Iding Pardi said the IDX Green Equity Designation is an important milestone in building an Indonesian capital market that is increasingly transparent, credible, and sustainability-oriented.

“We appreciate the participation of the companies receiving this inaugural designation, including TBS, and their commitment to undergoing an independent review process from the outset. We hope this designation encourages more listed companies to strengthen their sustainability practices and provide more credible information to investors,” he said.

TBS was reviewed by S&P Global Ratings, which assessed 92% of the company’s capital expenditure commitments for 2025 to 2030 as green, with no allocation to coal, well above the threshold required by the IDX. In its Climate Transition Assessment, S&P Global Ratings stated that TBS stands out among comparable companies in Indonesia for the ambition of its position, citing the fastest timeline for achieving carbon neutrality by 2030 and the redirection of capital into non-coal activities.

Although the sustainable infrastructure business contributed less than half of consolidated revenue in FY2025, its share surged in the first half of 2026 to 66.5% of TBS’s consolidated revenue, more than double the coal contribution of 31.4%, reversing a mix that a year earlier was still dominated by coal.

Waste management contributed 61.2% of consolidated revenue and 92% of consolidated EBITDA. Revenue from the electric vehicle ecosystem nearly tripled year on year. Consolidated gross profit more than doubled to US$28.2 million, and operating cash flow turned positive at US$14.6 million, from negative US$31.6 million in the same period a year earlier.

Green-based share designations remain an evolving practice globally. Nasdaq introduced the first designation of this kind in the Nordic market in 2021. The WFE published its Green Equity Principles in 2023 as the first global framework for designating listed shares as green, and it has since been adopted by several exchanges: B3 in Brazil in 2024, then the Philippine Stock Exchange, and now the IDX. Fewer than 20 listed companies worldwide currently hold such designations, concentrated in the clean technology, utilities, and property sectors, placing TBS in a small global group.

The IDX emphasised that the IDX Green Equity Designation is not a rating, an investment recommendation, or a guarantee of a share’s financial performance, return, or investment risk.