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Page 1
                                                                                                                                         Rating Summary
                                                                                                                                                November 13, 2023


                                                    PT TBS Energi Utama Tbk
Credit Rating(s)                                          PEFINDO has affirmed its idA ratings to PT TBS Energi Utama Tbk (TBS) and its Bond
General Obligation (GO)                  idA/Stable       I 2023. Outlook for the Company’s rating is “stable”. The rating reflects TBS’ well
Bond I                                   idA/Stable       diversified business, conservative capital structure and strong cash flow protection, as
                                                          well as strong demand from new businesses. The rating is constrained by risk of
Rating Period                                             developing new projects and exposure to fluctuating commodity prices.
November 9, 2023 – November 1, 2024
                                                          The rating may be raised if TBS successfully operates its new projects and generates
Published Rating History                                  higher revenue and profit margins than projected, while maintaining its conservative
NOV 2022                                 idA/Stable
                                                          capital structure. The rating may be lowered if the Company generates lower revenue
OCT 2022                                 idA/Stable
                                                          and profit margins than projected due to underperformed new projects. TBS’ policy
                                                          to be more aggressive to finance its investment strategy or capital expenditure with
                                                          substantial debt without compensating by a higher revenue may also negatively
                                                          affected to its credit rating. Delays in construction projects and deterioration of the
                                                          commodity prices, particularly coal, may also trigger a rating downgrade, as this will
                                                          adversely affect its financial profile.

                                                          PT TBS Energi Utama Tbk was founded in 2008 and has several operating subsidiaries
                                                          engaged in coal industry in East Kalimantan, coal-fired power plants in Gorontalo and
                                                          North Sulawesi, waste management in Singapore, mini-hydro power plant in
                                                          Lampung, and electric vehicle. The Company also plans to grow its business in
                                                          renewable energy in the near to medium term. As of September 30, 2023, its
                                                          shareholders were Highlands Strategic Holdings Pte., Ltd (61.478%), PT Toba Sejahtra
                                                          (8.936%), PT Bara Makmur Abadi (5.514%), and public (24.073%).




                                                         Financial Highlights
                                                          As of/for the year ended                                 Sep-2023             Dec-2022              Dec-2021      Dec-2020
                                                                                                                 (Unaudited)             (Audited)             (Audited)     (Audited)
Rating Definition                                         Total adjusted assets [USD mn]                                  896.1                898.3                853.5       756.4
 Debt security rated idA indicates that the issuer’s      Total adjusted debt [USD mn]                                    407.7                367.8                394.6       393.2
 capacity to meet its long-term financial commitments     Total adjusted equity [USD mn]                                  368.8                422.7                349.7       275.5
 on the debt security, relative to other Indonesian       Total sales [USD mn]                                            370.4                635.8                462.7       331.9
 issuers, is strong. However, the issuer’s capacity is
                                                          EBITDA [USD mn]                                                   21.0               111.7                 71.5        30.7
 somewhat more susceptible to adverse effects of
                                                          Net income after MI [USD mn]                                       7.5                 57.8                48.1        24.6
 changes in circumstances and economic conditions
 than higher-rated issuers.                               EBITDA margin [%]                                                  5.7                 17.6                15.4          9.3
                                                          Loan to Value (LTV) [%]                                           20.6                 14.6                18.6        41.9
                                                          Adjusted debt/EBITDA [X]                                        *14.5                    3.3                5.5        12.8
                                                          Adjusted debt/adjusted equity [X]                                  1.1                   0.9                1.1          1.4
                                                          Recurring cash inflow to                                           3.3                   6.3                3.0          2.0
                                                          Nondiscretionary cash outflow [X]
                                                          FFO/adjusted debt [%]                                           *(3.5)                 17.6                 9.5          1.2
                                                          EBITDA/IFCCI [X]                                                   0.8                   3.9                2.7          1.3
                                                          USD exchange rate [IDR/USD]                                   15,487               15,731                14,269      14,105

                                                         FFO = EBITDA – IFCCI + Interest Income – Current Tax Expense
                                                         EBITDA = Operating Profit + Depreciation Expense + Amortization Expense
                                                         IFCCI = Gross Interest Expense + Other Financial Charges + Capitalized Interest; (FX Loss not included)
 Contact Analysts:                                       MI= Minority Interest                *annualized
 kresna.wiryawan@pefindo.co.id
 fahrinaldi.akbar@pefindo.co.id                          The above ratios have been computed based on information from the company and published accounts. Where applicable, some items have
                                                         been reclassified according to PEFINDO’s definitions.


   http://www.pefindo.com                                                                    1/4                                                                            November 2023
Page 2
                                                                                                                          Rating Summary
                                                                                                                               November 13, 2023




DISCLAIMER
The rating contained in this report or publication is the opinion of PT Pemeringkat Efek Indonesia (PEFINDO) given based on the rating result on the date the rating
was made. The rating is a forward-looking opinion regarding the rated party’s capability to meet its financial obligations fully and on time, based on assumptions
made at the time of rating. The rating is not a recommendation for investors to make investment decisions (whether the decision is to buy, sell, or hold any debt
securities based on or related to the rating or other investment decisions) and/or an opinion on the fairness value of debt securities and/or the value of the entity
assigned a rating by PEFINDO. All the data and information needed in the rating process are obtained from the party requesting the rating, which are considered
reliable in conveying the accuracy and correctness of the data and information, as well as from other sources deemed reliable. PEFINDO does not conduct audits,
due diligence, or independent verifications of every information and data received and used as basis in the rating process. PEFINDO does not take any responsibility
for the truth, completeness, timeliness, and accuracy of the information and data referred to. The accuracy and correctness of the information and data are fully the
responsibility of the parties providing them. PEFINDO and every of its member of the Board of Directors, Commissioners, Shareholders and Employees are not
responsible to any party for losses, costs and expenses suffered or that arise as a result of the use of the contents and/or information in this rating report or publication,
either directly or indirectly. PEFINDO generally receives fees for its rating services from parties who request the ratings, and PEFINDO discloses its rating fees prior to
the rating assignment. PEFINDO has a commitment in the form of policies and procedures to maintain objectivity, integrity, and independence in the rating process.
PEFINDO also has a “Code of Conduct” to avoid conflicts of interest in the rating process. Ratings may change in the future due to events that were not anticipated
at the time they were first assigned. PEFINDO has the right to withdraw ratings if the data and information received are determined to be inadequate and/or the rated
company does not fulfill its obligations to PEFINDO. For ratings that received approval for publication from the rated party, PEFINDO has the right to publish the
ratings and analysis in its reports or publication, and publish the results of the review of the published ratings, both periodically and specifically in case there are
material facts or important events that could affect the previous ratings. Reproduction of the contents of this publication, in full or in part, requires written approval
from PEFINDO. PEFINDO is not responsible for publications by other parties of contents related to the ratings given by PEFINDO.



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Page 3
                                                                                                                             Ikhtisar Peringkat
                                                                                                                                          13 November 2023


                                                 PT TBS Energi Utama Tbk

Credit Rating(s)                                   PEFINDO menegaskan peringkat idA untuk PT TBS Energi Utama Tbk (TBS) dan
General Obligation (GO)             idA/Stable     Obligasi I 2023. Prospek untuk peringkat Perusahaan adalah “stabil”. Peringkat
Bond I                              idA/Stable     perusahaan mencerminkan bisnis TBS yang terdiversifikasi dengan baik, struktur
                                                   permodalan yang konservatif dan proteksi arus kas yang kuat serta permintaan yang
Rating Period                                      kuat dari bisnis baru. Namun peringkat tersebut dibatasi oleh risiko atas
November 9, 2023 – November 1, 2024                pengembangan proyek-proyek baru serta eksposur terhadap risiko fluktuasi harga
                                                   komoditas.
Published Rating History                           Peringkat dapat dinaikkan apabila TBS berhasil mengoperasikan proyek-proyek baru
NOV 2022                            idA/Stable
                                                   yang direncanakan dan menghasilkan pendapatan dan marjin laba yang lebih besar
OCT 2022                            idA/Stable
                                                   dibandingkan yang diproyeksikan, serta tetap mempertahankan struktur permodalan
                                                   yang konservatif. Peringkat dapat diturunkan apabila Perusahaan menghasilkan
                                                   pendapatan dan marjin laba yang lebih rendah dibandingkan proyeksi dikarenakan
                                                   kinerja proyek-proyek baru dibawah standar yang diproyeksikan. Kebijakan TBS untuk
                                                   lebih agresif untuk membiayai strategi investasi atau belanja modal dengan utang
                                                   tanpa terkompensasi dengan pendapatan yang lebih tinggi juga dapat berdampak
                                                   negatif terhadap peringkat Perusahaan. Keterlambatan pembangunan proyek dan
                                                   penurunan harga komoditas, terutama batubara, juga dapat memicu penurunan
                                                   peringkat, karena kondisi ini akan menurunkan profil keuangan Perusahaan.

                                                   PT TBS Energi Utama Tbk didirikan pada tahun 2008 dan memiliki beberapa anak
                                                   usaha yang bergerak di bidang batubara di Kalimantan Timur, Pembangkit Listrik
                                                   Tenaga Uap di Gorontalo dan Sulawesi Utara, pengelolaan limbah di Singapura, PLTM
                                                   di Lampung, dan kendaraan listrik. Perusahaan berencana untuk berkembang ke
                                                   energi terbarukan dalam waktu dekat dan menengah. Per 30 September 2023,
                                                   pemegang saham adalah Highlands Strategic Holdings Pte., Ltd (61.478%), PT Toba
                                                   Sejahtra (8.936%), PT Bara Makmur Abadi (5.514%), dan publik (24.073%).

                                                   Financial Highlights
                                                    As of/for the year ended                                 Sep-2023             Dec-2022              Dec-2021      Dec-2020
Rating Definition                                                                                          (Unaudited)             (Audited)             (Audited)     (Audited)
Efek utang dengan peringkat idA mengindikasikan     Total adjusted assets [USD mn]                                  896.1                898.3                853.5       756.4
bahwa kemampuan emiten untuk memenuhi
                                                    Total adjusted debt [USD mn]                                    407.7                367.8                394.6       393.2
komitmen keuangan jangka panjang atas efek utang
                                                    Total adjusted equity [USD mn]                                  368.8                422.7                349.7       275.5
tersebut, dibandingkan dengan emiten lainnya di
Indonesia, adalah kuat. Walaupun demikian,          Total sales [USD mn]                                            370.4                635.8                462.7       331.9
kemampuan emiten mungkin akan terpengaruh oleh      EBITDA [USD mn]                                                   21.0               111.7                 71.5        30.7
perubahan buruk keadaan dan kondisi ekonomi,        Net income after MI [USD mn]                                       7.5                 57.8                48.1        24.6
dibandingkan dengan emiten yang peringkatnya        EBITDA margin [%]                                                  5.7                 17.6                15.4          9.3
lebih tinggi..                                      Loan to Value (LTV) [%]                                           20.6                 14.6                18.6        41.9
                                                    Adjusted debt/EBITDA [X]                                        *14.5                    3.3                5.5        12.8
                                                    Adjusted debt/adjusted equity [X]                                  1.1                   0.9                1.1          1.4
                                                    Recurring cash inflow to                                           3.3                   6.3                3.0          2.0
                                                    Nondiscretionary cash outflow [X]
                                                    FFO/adjusted debt [%]                                           *(3.5)                 17.6                 9.5          1.2
                                                    EBITDA/IFCCI [X]                                                   0.8                   3.9                2.7          1.3
                                                    USD exchange rate [IDR/USD]                                   15,487               15,731                14,269      14,105

                                                   FFO = EBITDA – IFCCI + Interest Income – Current Tax Expense
                                                   EBITDA = Operating Profit + Depreciation Expense + Amortization Expense
                                                   IFCCI = Gross Interest Expense + Other Financial Charges + Capitalized Interest; (FX Loss not included)
Contact Analysts:                                  MI= Minority Interest                *annualized
kresna.wiryawan@pefindo.co.id
                                                   The above ratios have been computed based on information from the company and published accounts. Where applicable, some items have
fahrinaldi.akbar@pefindo.co.id
                                                   been reclassified according to PEFINDO’s definitions.


   http://www.pefindo.com                                                             3/4                                                                             November 2023
Page 4
                                                                                                              Ikhtisar Peringkat
                                                                                                                        13 November 2023




 DISCLAIMER
 Peringkat yang dimuat dalam laporan atau publikasi ini adalah pendapat PT Pemeringkat Efek Indonesia (PEFINDO) yang diberikan berdasarkan hasil
 pemeringkatan pada saat tanggal dibuatnya peringkat. Peringkat merupakan opini ke depan mengenai kemampuan pihak yang diperingkat dalam memenuhi
 kewajiban finansialnya secara penuh dan tepat waktu, berdasarkan asumsi yang dibuat saat pemberian peringkat. Peringkat bukan merupakan rekomendasi bagi
 pemodal untuk mengambil keputusan investasi (baik keputusan untuk membeli, menjual, atau menahan efek utang apapun yang diterbitkan berdasarkan atau
 berhubungan dengan peringkat atau keputusan investasi lainnya) dan/atau opini atas nilai kewajaran efek utang dan/atau nilai entitas yang diberikan peringkat
 oleh PEFINDO. Semua data dan informasi yang diperlukan dalam proses pemeringkatan diperoleh dari pihak yang meminta pemeringkatan yang dianggap dapat
 dipercaya keakuratan dan kebenarannya dan dari sumber lain yang dianggap dapat diandalkan. PEFINDO tidak melakukan audit, uji tuntas, atau verifikasi secara
 independen dari setiap informasi dan data yang diterima dan digunakan sebagai dasar dalam proses pemeringkatan. PEFINDO tidak bertanggung jawab atas
 kebenaran, kelengkapan, ketepatan waktu, dan keakuratan informasi dan data yang dimaksud. Keakuratan dan kebenaran informasi dan data menjadi tanggung
 jawab sepenuhnya dari pihak yang memberikan informasi dan data yang dimaksud. PEFINDO dan setiap anggota Direksi, Komisaris, Pemegang Saham, serta
 Karyawannya tidak bertanggung jawab kepada pihak manapun atas segala kerugian, biaya-biaya dan pengeluaran yang diderita atau timbul sebagai akibat
 penggunaan isi dan/atau informasi dalam laporan atau publikasi ini, baik secara langsung maupun tidak langsung. PEFINDO menerima imbalan untuk jasa
 pemeringkatan umumnya dari pihak yang meminta dilakukannya jasa pemeringkatan, dan PEFINDO sudah menginformasikan biaya pemeringkatan sebelum
 penetapan peringkat. PEFINDO memiliki komitmen dalam bentuk kebijakan dan prosedur untuk menjaga obyektivitas, integritas, dan independensi dalam proses
 pemeringkatan. PEFINDO juga memiliki code of conduct untuk menghindari benturan kepentingan dalam proses pemeringkatan. Peringkat bisa berubah di masa
 depan karena peristiwa yang belum diantisipasi sebelumnya pada saat peringkat diberikan pertama kali. PEFINDO berhak menarik peringkat jika data dan informasi
 yang diterima tidak memadai dan/atau perusahaan yang diperingkat tidak memenuhi kewajibannya kepada PEFINDO. Atas peringkat yang sudah mendapat
 persetujuan publikasi dari pihak yang diperingkat, PEFINDO berhak untuk mempublikasi peringkat dan analisisnya dalam laporan atau publikasi ini serta
 mempublikasikan hasil kaji ulang terhadap peringkat yang telah dipublikasikan, baik secara berkala maupun secara khusus dalam hal terdapat fakta material atau
 kejadian penting yang dapat mempengaruhi hasil pemeringkatan sebelumnya. Reproduksi isi publikasi ini, secara penuh atau sebagian, harus mendapat
 persetujuan tertulis dari PEFINDO. PEFINDO tidak bertanggung jawab atas publikasi yang dilakukan oleh pihak lain terkait peringkat yang diberikan oleh PEFINDO.



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