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New Delhi: The Asian Development Bank (ADB) provided a $10 million loan to PT TBS Energi Utama Tbk (TBS) to promote sustainable transportation in Indonesia by increasing the supply of electric motorcycles and battery swapping stations. The financing involves a $5 million ADB loan and another $5 million from the Australian Climate Finance Partnership, administered by ADB. TBS will invest in Electrum for procuring e-motorcycles and installing battery swapping stations, which will reduce annual greenhouse gas emissions by at least 123,000 tons, an ADB press release stated.
TBS, an Indonesian energy leader, operates in waste management, renewables, and electric vehicles. It operates across Singapore and Indonesia. In 2021, TBS founded Electrum, which focuses on e-motorcycles, batteries, battery swapping, and charging infrastructure.
Indonesia, Southeast Asia’s largest automotive market, is a major source of greenhouse gas emissions and road transport significantly contributes to these emissions, the release said.
“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. In 2022, there were around 148 million two-wheelers in the country, but only 26,000 were electric,” the release noted.
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