Where: Suralaya, Indonesia

Sectors:

  • Climate & environment
  • Energy – Fossil Fuels
  • Finance
About the project
In 2019, the IFC participated in a rights issue with Hana Bank Indonesia (HBI). HBI became the first financial intermediary with which IFC would pilot its new Green Equity Approach, designed to encourage financial intermediary clients to stop funding coal. However, less than a year later HBI, joined a consortium of funders that provided finance to the two new, huge coal-fired power plants known as Java 9 &10 in Suralaya. Java 9&10 represents a significant expansion of the already huge Suralaya coal complex, yet assessments prior to financing failed to recognise the cumulate impacts of this investment. In 2023, Trend Asia, Recourse and Inclusive Development International submitted a complaint to the CAO regarding IFC’s funding for HBI – a compliance investigation by CAO is currently underway.
Relevant IFC standards that were violated
  • Performance Standard 1 Assessment and Management of Environmental and Social Risks and Impacts
  • Performance Standard 3 Resource Efficiency and Pollution Prevention
  • Performance Standard 4 Community Health, Safety, and Security
  • Performance Standard 5 Land Acquisition and Involuntary Resettlement
  • Performance Standard 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources

For more information, read here.