TBS Secures $15 Million Funding from ADB, DBS for E-Mobility
Summary
TBS will use the $15 million funding for the procurement of electric motorcycles and the development of battery-swapping stations (BSS) across Indonesia.The initiative is expected to reduce greenhouse gas emissions by up to 123,000 tons per year while providing a more eco-friendly, affordable, and accessible mobility solution for the public. This initiative marks a pivotal moment for TBS, representing a dynamic blend of grant, development, and commercial financing -- the first of its kind for an infrastructure project in Indonesia.It highlights TBSs evolution into a more resilient and collaborative institution, capable of fostering strategic alliances with development finance institutions (DFIs) to unlock greater opportunities for sustainable growth.TBS is proud of the confidence ADB, ACFP, and Bank DBS Indonesia has placed in Electrum, highlighting its immense potential in the electric vehicle sector and energy transition inIndonesia. This development financing not only strengthens our resolve but also equips us with the resources and partnerships needed to turn this vision into reality, " Pandu Sjahrir, Co-CEO of TBS, was quoted as saying in a recent press statement.According to Pandu, Electrum aims 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. Support from all of our partners not only validates our vision but also ensures this initiative delivers meaningful environmental, social, and gender impacts, benefiting all segments of society, Pandu said.As the largest automotive market in Southeast Asia, Indonesia has over 148 million motorcycles in operation, but only around 26,000 are electric. 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 ADBs first private sector financing for the countrys e-vehicle industry, the project can demonstrate the commercial viability of e-motorcycles and encourage further investments to encourage their use.Support from ACFP -- a program funded by the Australian Department of Foreign Affairs and Trade -- also highlights the importance of combining climate action with social benefits in developing the electric mobility industry, including empowering women and expanding economic opportunities for underrepresented communities.Bank DBS Indonesia expressed its enthusiasm about this partnership.We are very excited to be part of the effort to accelerate the adoption of electric vehicles in Indonesia.