TBS Energi Main Subsidiary Acquires Singapore Waste Management Company

Cooperation (Photo: dock. Unsplash)

JAKARTA - PT TBS Energi Utama Tbk approved its subsidiary to acquire 100 percent of Sembcorp Environment Pte. Ltd. (SembEnviro) shares. Where, the company is the leading waste manager in Singapore, so it is hoped that technology transfer and innovation will be created for Indonesia.

SembEnviro is the leader of the waste management industry with a very good track record in Singapore. SembEnviro has a waste management platform that is integrated with energy production from waste, which supports the application of circular and sustainability economic principles," said FFB Director Juli Oktarina quoting Antara.

This acquisition was carried out through a subsidiary of FFB, SBT Investment 2 Pte. Ltd., and has obtained shareholder approval through the Extraordinary GMS which will be held on Friday, December 20, 2024.

The transaction is targeted to be completed following the obtaining of all approvals from regulatory authorities and marks an important milestone in FFB efforts to build a sustainable integrated waste management platform at the regional level.

According to July, this acquisition complements the previous TBS expansion step, namely the integration of the Asia Medical Environmental Services Pte. Ltd. in Singapore and the DIRECTION of the Environmental Group in Indonesia.

Together, these businesses form regional waste management platforms that include medical, industrial and domestic waste, with more than 5,000 collection points and more than 15,000 tons of processed waste each year.

By utilizing integrated capabilities, FFB answers the challenges of waste management in Indonesia and Singapore, as well as taking advantage of opportunities from the large volume of waste in these two countries.

Deputy President Director of FFB Pandu Sjahrir stated that this acquisition is one of the strategic steps in realizing FFB 2030's ambition to achieve carbon neutrality by 2030.

"We are committed to optimizing SembEnviro's capabilities as a platform that encourages sustainable innovation, as well as has a real positive impact on the communities we serve," he said.

Pandu also emphasized that after all transactions are complete, this corporate action will accelerate the realization of the FFB vision in building an integrated regional waste management platform in Southeast Asia.

This acquisition, he said, is expected to provide long-term value for shareholders by strengthening FFB's strategic position in the regional waste management sector.