The Asian Development Bank (ADB) signed a $10 million financing agreement with PT TBS Energi Utama Tbk (TBS) to promote sustainable transportation in Indonesia by increasing the supply of electric motorcycles (e-motorcycles) and battery swapping stations (BSS).
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The funding comprises a $5 million ADB loan and another $5 million from the Australian Climate Finance Partnership (ACFP), administered by ADB. The funding will support investments by TBS in PT Energi Kreasi Bersama (Electrum) for procuring e-motorcycles and installing a network of BSS, which will reduce annual greenhouse gas emissions by at least 123,000 tons. ADB is joined by DBS Indonesia as a parallel lender.
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Indonesia has the largest automotive market in Southeast Asia, and it is one of the country’s biggest sources of greenhouse gas emissions. Road transport is a major contributor to these emissions. In 2022, there were around 148 million two-wheelers in the country, but only 26,000 were electric.
“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 promote their use.”
“This collaboration with ADB accelerates our efforts to redefine transportation in Indonesia. We aim to deliver eco-friendly, affordable, and sustainable mobility for the public, while supporting national targets to combat climate change. Electrum is more than just a business—it is our commitment to building a cleaner and more resilient future for Indonesia,” said TBS Co-Chief Executive Officer Pandu Sjahrir. “Through Electrum, we aim 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.”
ACFP is funded by up to A$140 million commitment from the Australian Department of Foreign Affairs and Trade. It focuses on private sector climate adaptation and mitigation projects in eligible countries in the Pacific and Southeast Asia while promoting gender equality and better economic opportunities for women and girls.
TBS is a leading energy company in Indonesia with a diverse business portfolio that includes waste management, renewable energy, and electronic vehicles. The company operates in Singapore and across its home turf, Indonesia. In 2021, TBS founded Electrum, which focuses on e-motorcycle manufacturing, battery technology, BSS, and charging infrastructure.
About ADB
The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development. Established in 1966, it is owned by 69 members—49 from the region.
