TBS Energi to Improve Energy Business Portfolio through Acquisition

Sumber: https://dinsights.katadata.co.id/read/2023/01/30/tbs-energi-to-improve-energy-business-portfolio-through-acquisition

PT TBS Energi Utama Tbk (TOBA) intends to boost its renewable energy business portfolio this year. TBS Energi deputy president director Pandu Sjahrir revealed the company's plan to acquire a mystery company engaged in the green energy business. "[We are interested] in acquiring a power plant, a renewable energy company," he confirmed Thursday.

Pandu added that TBS Energi Utama would also work on three to four new renewable energy projects this year. "We have to develop, at least add, about 200-300 megawatts of capacity from the non-coal sector," he said.


Our View

TBS Energi Utama keeps trying to recycle revenue from fossil fuel businesses into green energy and contribute to Indonesia's energy transition and carbon-neutral targets by 2030. For this reason, TOBA is willing to spend US$500 million worth of investment in renewable energy and electric vehicle businesses by 2025. This year, 80-90 percent of the company's capital expenditure (capex) to non-coal firms is around US$50 million-US$60 million. In the renewable energy sector, TOBA, through its subsidiaries, has been developing a mini hydro power plant (PLTMH) on the Way Besar River, Sumber Jaya District, Lampung.

The PLTMH project, with a capacity of 6 megawatts, is expected to be operational in June 2024. PT Adimitra Energi Hidro, an associate entity of TBS Energi Utama with 49 percent indirect ownership, has signed a Power Purchase Agreement (PPA) with PT Perusahaan Listrik Negara (PLN) in 2021. However, according to the TOBA public exposure in December 2022, the project was 25 percent complete. The company has also been trying to acquire potential hydro, wind, and solar power projects and brownfield or operational assets.

Subsidiary PT Toba Bara Energi, for example, has signed a memorandum of understanding (MoU) on the development of a floating solar power plant (PLTS) on the Tembesi Reservoir, Batam, Riau Islands, with the Batam Free Trade Zone Authority (BP Batam) in August last year. Moreover, TOBA will allocate more than a third of this year's capex for an electric motorcycle project with PT GoTo Gojek Tokopedia Tbk through PT Energi Kreasi Bersama (Electrum) to accelerate EV adoption in Indonesia. Electrum intends to develop an electric motorcycle manufacturing plant, battery packaging technology, battery-swap infrastructure, and finance EV purchases.

TBS Energi Utama vows to keep applying environmental, social, and governance (ESG) principles in every business and investment process as part of the company's sustainable growth commitment. In its business development roadmap by 2030, for example, TOBA plans to phase out its fossil fuel businesses gradually. For starters, the company sold a 5 percent stake in PT Paiton Energy worth more than Rp 1 trillion last year. Paiton Energy is the largest independent power producer (IPP) in Indonesia, with a total installed capacity of a coal-fired power plant of up to 2,045 MW. Nevertheless, TBS Energi Utama managed to operate Sulut-3 coal-fired power plant with a 2x50 megawatts (MW) capacity in July 2021 and the Sulbagut-1 coal-fired power plant with a capacity of 2x50 MW in December 2021 through its subsidiaries, PT Minahasa Cahaya Lestari and PT Gorontalo Listrik Perdana, respectively.

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