In today’s rapidly changing world, there’s a growing recognition that environmental consciousness and sustainability is not simply a trend, but rather the key to the future. Along with this awakening, businesses are increasingly adapting and innovating, each finding its own path to leave behind a positive impact. Among these companies, TBS Energi Utama stands as a trailblazer in the pursuit of sustainability through a fierce commitment to redefine its operations.
A name once renowned for coal mining, TBS Energi Utama is on a mission to build a better and more sustainable future by entirely altering its business model to renewable energy. Triana Krisandini, our Senior Vice President of Sustainability, shared this remarkable transformation journey at the ASEAN Climate Forum 2023 on September 2, 2023, alongside other ASEAN business leaders.
At the panel discussion exploring the theme of net zero transition in ASEAN, TBS Energi Utama represented local Indonesian industry players who are optimistic for change. Triana began with a powerful statement: “In TBS we translate sustainability not just on how we spend our money, but specifically how we make our money.” To achieve the final objective of becoming a green business, TBS has set out several targets. Some in progress, some already done.
Aiming to reduce and compensate for past ecological footprints, one of TBS's ambitious commitments is achieving carbon neutrality by 2030. This doesn’t only mean refraining new coal investments, but also retiring our existing coal mines and coal-fired power plants by 2030. To turn this vision into reality, we signed an agreement with the Indonesian Investment Authority in September 2022 to expedite early retirement for our power plants.
Furthermore, Triana explained that TBS believes the future of business lies in identifying opportunities while addressing critical environmental issues. In 2021 we divested 5% of our ownership in Paiton Energy, the largest power plant supplying the Java-Bali region. This strategic move resulted in an annual dividend of approximately $15 million, allowing us to reinvest in the ‘industries of the future’ such as renewable energy, where we plan to achieve 100 MW by 2025. Additionally, it has allowed TBS to tap the electric vehicle industry through a partnership with Indonesia’s largest ride hailing app, GoTo, and also make way for a recent acquisition of a waste management company.
Understanding that such a big ambition demands collaboration, TBS actively builds partnerships with government bodies, businesses, and various stakeholders to make sure the ecosystem is in place. “A lot of collaboration is what we need right now,” states Triana, adding that change doesn’t only come from a better product, but also a strong ecosystem to support us going forward.
A big part of TBS’ exciting transformation agenda is the Towards A Better Society 2030 (TBS2030) initiative that was launched earlier this year. The change TBS is committing to is not just a simple categorical transition, but we want to achieve a "just transition" and maintain trust within our communities. While our actions and numbers are opening new doors, the relationship we continuously enhance with our internal workforce and external communities allows a successful journey towards the shift. As said by Triana: “transition does sound sexy, but just transition is a little bit more intimidating than that.”
With TBS2030’s social pillar as our guiding light, we focus on enabling our people, both internally and externally, through upskilling and reskilling initiatives so they can be resilient to change. To build trust, TBS actively engages with communities, ensuring they’re involved in every step of the process. Strategic social investments in economic development, job training, education, and health are key aspects to create a long-term impact. A solid example of such action is evident in our subsidiary, Adimitra Bara Nusantara, who recently won 1st Runner-Up in ASEAN Coal Awards 2023 CSR-Medium Category.
Apart from external commitments, internal development is equally important for TBS. “When it comes to our transformation, our people are our most valuable asset, and that's where we focus our investment right now,” stated Triana. We work closely with HR to assess our talents, identify opportunities, and invest in capacity building programs to enhance our employees’ capabilities.
Looking into the future, TBS aspires to be known for creating value and solving problems, a hope implied in the tagline “Towards A Better Society”. Moving on from our initial coal-based operations, we envision a future of seized opportunities that allow us to ensure energy security from the most sustainable sources, introduce clean mobility in the country, and champion waste management in the region. But before all that, we have to “walk our talk” by translating our 2030 commitments into tangible objectives and measurable metrics that can withstand challenges, allow us to stay accountable, and be honest with our journey, whether it’s good or bad.
