TransJakarta explores green bond issuance on London Stock Exchange

TransJakarta explores green bond issuance on London Stock Exchange

A free TransJakarta tour bus picks up passengers at a bus stop in Jakarta on May 4, 2022. (ANTARA PHOTO/Akbar Nugroho Gumay/tom/uyu)

We have started operating electric buses since March 2022.
Jakarta (ANTARA) - Region-owned enterprise (BUMD) PT Transportasi Jakarta (TransJakarta) is considering to issue green bonds on the London Stock Exchange to support the government in achieving the net-zero emission target.

Mochammad Yana Aditya, the company's president director, said that his side had met with Head of the Debt Capital Markets and Funds of the London Stock Exchange, Shrey Kohli.

“During the meeting, we discuss TransJakarta's plans to develop electric buses and sustainable transportation in Jakarta. Hence, we need financial support," he remarked here on Friday.

Aditya noted that the company’s plans aligned with the concept of green bond issuance at the London Stock Exchange that aims to support environment-friendly projects.

Hence, his side is making efforts to collaborate with the stock exchange to reduce carbon emissions in the Indonesian public transportation sector through the issuance of the bond.

The use of electric buses is estimated to reduce pollution by up to 28 percent. In addition, carbon dioxide (CO2) emissions of electric buses is less by up to 50.3 percent as compared to the emissions by diesel buses.

“We have started operating electric buses since March 2022,” the president director stated.

Hence, to strengthen the electric bus utilization program, he also discussed the development of cooperation regarding the program during the visit.

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The cooperation has been running for about a year under the United Kingdom (UK) government’s International Climate Finance (ICF) portfolio called UK Partnering for Accelerated Climate Transitions (PACT).

Aditya stated that the cooperation is a follow-up to their previous project. Under the project, the UK PACT, through the Institute for Transportation and Development Policy (ITDP), provided technical assistance to TransJakarta in developing a healthy final business case (FBC).

He expected that the collaboration will expedite the provision of electric bus services in Jakarta.

Earlier, Jakarta Governor Anies Baswedan highlighted the provincial government's target that 50 percent of the regional-run corporation’s bus fleet will be converted into electric vehicles by 2025. 

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