A new era has begun for TBS Energi Utama. In a strategic move that aligns with the company’s commitment for green transition and sustainability, TBS entered the waste management sector by welcoming a new business under its portfolio, Asia Medical Enviro Services.
With its origins dating back to 1989, Singapore-based Asia Medical Enviro Services “AMES” stands as a market leader in the country’s medical and biohazardous waste management industry. For over 30 years AMES has supported private and public hospitals across the nation with all-round services, starting with the waste collection process to the treatment and disposal stages. As Singapore’s pioneer and industry leader, AMES currently manages nine types of waste encompassing both human and animal medical waste.
TBS successfully completed the acquisition of AMES on August 28, 2023. A move that was preceded by a credit agreement of US$33 million with Bank Mandiri and Bank DBS Indonesia to support TBS in achieving its goal of carbon neutrality by 2030. The process of acquiring 100% ownership of AMES from Dymon Asia Private Equity signifies a milestone for TBS. It not only represents the company's second environment-oriented foray outside of its renewable energy venture, but also reflects TBS’ fresh approach to reach its Towards A Better Society 2030 (TBS2030) goal.
Explaining the rationale behind the action, Nafi Sentausa, TBS' Senior Vice President of Corporate Strategy and Investor Relations, highlighted several factors that made the acquisition happen.
From a sustainability perspective, the waste management sector is in line with TBS' renewed strategic direction, which places a strong emphasis on reducing the emission intensity associated with the company's past and current operations. “To redirect our revenue streams towards environmentally friendly enterprises, we begin our journey in medical waste management, a sector renowned for its notably lower emission intensity when compared to the coal and power plant operations,” stated Nafi.
Nafi adds that the acquisition of AMES marks the initial phase of TBS’ long-term plan to establish a waste management platform with a regional reach. Although AMES currently operates only in Singapore, its potential lies beyond the Lion City, and TBS envisions an exciting future where they extend a positive influence for the whole Southeast Asia region.
Looking at the current landscape, the Southeast Asian healthcare sector reveals promising prospects. For example, Singapore houses 11,000 hospital beds that generate up to 1.5 kilograms of medical waste per bed daily. The country has also outlined plans to expand its health infrastructure in the coming years. Meanwhile, in Indonesia, economic growth and an ageing population ensure a growth of medical waste. Conditions at these two nations reflect a considerable potential for the waste management business, and TBS is dedicated to play an active role in developing sustainable medical waste management.
Not stopping at regional expansion, TBS aims for a bigger goal, committing to contribute through innovations and advanced technologies. According to Nafi, TBS is currently exploring methods to enhance the recycling of generic medical waste items like plastic containers. While the majority of medical waste is classified as biohazardous, TBS is researching more effective ways to process these materials and eliminate their biohazard status, thereby contributing to the circular economy. “This is one of the potentials we identify in this acquisition - how we can bring an added value to the industry, both in terms of economics and sustainability,” says Nafi.
As TBS moves forward to achieving TBS2030, the acquisition of Asia Medical Enviro Services represents TBS’ dedication to developing sustainable business practices and championing waste management in Southeast Asia. With a strong vision and unwavering commitment, TBS is ready to advance its role in preserving both environmental and business sustainability through this new venture.