Ecobiz.asia — PT TBS Energi Utama Tbk (TOBA) has become the first company to receive the Green Equity Transition designation from the Indonesia Stock Exchange (IDX), marking the inaugural use of the transition category under the exchange’s new green equity framework.
The designation took effect on Aug. 28, 2026, as part of the launch of the IDX Green Equity Designation, which aims to help investors identify listed companies contributing to the green economy or transitioning toward a low-carbon business model.
TBS was the only company to receive the transition designation at the initial launch, alongside PT Hero Global Investment Tbk (HGII) and PT Kencana Energi Lestari Tbk (KEEN), which were designated as Green Equity companies.
The designation followed an independent review by S&P Global Ratings against Indonesia’s Sustainable Finance Taxonomy (TKBI) and the World Federation of Exchanges (WFE) Green Equity Principles.
S&P Global Ratings assessed that 47% of TBS’s 2025 revenue came from non-coal businesses, while 92% of its capital expenditure commitment for 2025-2030 was classified as green, with no capital expenditure allocated to coal-related activities.
The 47% revenue contribution from sustainable infrastructure businesses placed TBS in the transition category under the IDX framework. Companies seeking the designation must demonstrate that more than half of their annual revenue or more than half of their operating and capital expenditure is directed toward green or transition activities as defined by the TKBI.
TBS President Director and CEO Dicky Yordan said the designation reflected the company’s ongoing transformation rather than the completion of its transition.
“For us, this designation isn’t an endpoint, it’s another milestone in a transformation we’re still in the middle of,” Dicky said.
He said the independent review provides investors with a measured assessment of how far the company’s business has shifted toward lower-carbon activities.
The company’s business mix has shifted further toward non-coal activities during 2026. Sustainable infrastructure businesses accounted for 66.5% of consolidated revenue in the first half of 2026, compared with 31.4% from coal, according to the company.
Waste management alone contributed 61.2% of revenue and 92% of consolidated EBITDA during the period, while revenue from the electric vehicle ecosystem nearly tripled year-on-year. Consolidated gross profit more than doubled to US$28.2 million, while operating cash flow turned positive at US$14.6 million from negative US$31.6 million a year earlier.
S&P Global Ratings also cited TBS’s target to reach carbon neutrality by 2030 and its shift in capital allocation toward non-coal activities as indicators of the company’s transition ambition.
IDX Director of Business Development Iding Pardi said the designation was intended to improve the quality and credibility of sustainability information available to investors.
“We hope this designation will encourage more listed companies to strengthen their sustainability practices and provide investors with more credible information,” Iding said.
The designation is subject to annual review by an approved external reviewer, and IDX retains the authority to amend or revoke it.
Green equity designations remain relatively uncommon globally. The World Federation of Exchanges issued its Green Equity Principles in 2023, following the introduction of similar designations by Nasdaq’s Nordic markets in 2021. Brazil’s B3 and the Philippine Stock Exchange have since adopted the framework. Fewer than 20 listed companies worldwide currently hold such a designation, according to TBS.
IDX has stressed that the Green Equity Designation is not a rating or investment recommendation, and does not guarantee a company’s financial performance, investment return or risk profile. ***
