ADB and TBS Partner to Boost Indonesia's Electric Mobility Ecosystem with $10 Million Funding Initiative

The financing comprises a $5 million loan from ADB and $5 million from the Australian Climate Finance Partnership (ACFP), administered by ADB.

The Asian Development Bank (ADB) has signed a $10 million financing agreement with PT TBS Energi Utama Tbk (TBS) to advance sustainable transportation in Indonesia by expanding the supply of electric motorcycles (e-motorcycles) and battery swapping stations (BSS). This initiative aims to cut annual greenhouse gas emissions by at least 123,000 tons.

The financing comprises a $5 million loan from ADB and $5 million from the Australian Climate Finance Partnership (ACFP), administered by ADB. DBS Indonesia also joins as a parallel lender, showcasing a collaborative approach to achieving climate goals. The funds will support investments in PT Energi Kreasi Bersama (Electrum), a TBS subsidiary, for the procurement of e-motorcycles and the establishment of an extensive network of BSS.

Addressing Emission Challenges in Indonesia

As Southeast Asia's largest automotive market, Indonesia faces significant challenges with transportation emissions. In 2022, the country recorded 148 million two-wheelers, of which only 26,000 were electric. Road transport remains one of the leading contributors to greenhouse gas emissions, which makes the project both timely and critical.

“Indonesia is rapidly urbanizing and witnessing a surge in private vehicle ownership, particularly motorcycles. By working with TBS, ADB aims to enhance the reliability of e-motorcycles and expand sustainable transport options for Indonesians,” said Suzanne Gaboury, ADB Director General for Private Sector Operations.

TBS's Vision for Sustainable Transportation

TBS Co-Chief Executive Officer Pandu Sjahrir emphasized the broader vision of redefining transportation in Indonesia. “This collaboration with ADB accelerates our efforts to deliver eco-friendly, affordable, and sustainable mobility. Electrum is our commitment to building a cleaner and more resilient future for Indonesia.”

Electrum’s approach focuses on addressing critical barriers to e-vehicle adoption, including high upfront costs and range anxiety, by providing high-quality e-motorcycles supported by an extensive battery-swapping network.

ACFP’s Role and Broader Impacts

The ACFP, funded by up to A$140 million from the Australian Department of Foreign Affairs and Trade, supports private sector climate adaptation and mitigation projects across the Pacific and Southeast Asia. This initiative also promotes gender equality and economic opportunities for women and girls.

Strengthening Indonesia's E-Mobility Sector

The project represents ADB’s first private sector financing in Indonesia’s e-vehicle industry, setting a benchmark for future investments. By showcasing the commercial viability of e-motorcycles, the initiative aims to encourage further investments in Indonesia’s burgeoning e-mobility sector.

TBS's Contributions to Renewable Energy

TBS is a leading energy company in Indonesia with a diverse portfolio, including renewable energy, waste management, and electronic vehicles. Since its founding of Electrum in 2021, the company has focused on e-motorcycle manufacturing, battery technology, and charging infrastructure to accelerate the adoption of sustainable transportation.

Outlook for a Sustainable Future

This partnership aligns with Indonesia’s national targets to combat climate change and demonstrates the potential for transformative change in the transportation sector. The project is expected to serve as a model for sustainable development, fostering a cleaner, more resilient, and economically inclusive future.