Stopping Coal Finance for Indonesia Crucial in the Fight Against Climate Change

 NGO Joint Press Release
Nobember 17th, 2016

Within the next couple of months, the Japan Bank for International Cooperation (JBIC) will decide whether to fund two giant dirty coal-fired power plants in Indonesia. These power plants will have a total capacity of 3000 Megawatts. Cirebon 2 coal-fired power plant is in West Java and Tanjung Jati B coal-fired power plant is in Jepara, Central Java.

Six months ago, JBIC approved funding for one of Southeast Asia’s largest coal-fired power plants in Batang in Central Java, which is already having terrible negative social and environmental impacts, and will make a massive contribution to climate change [1].

French Bank Crédit Agricole also wants to join JBIC in funding the coal power plant in Cirebon and the Tanjung Jati B power plant. This is in spite of a very recent public commitment made by Crédit Agricole to stop providing finance to new coal plants. Civil society groups from across the world, including Friends of the Earth France, Banktrack and Oxfam France, have criticized the double standards of Crédit Agricole in making new climate commitments a few weeks before COP22 in Marrakech, whilst continuing with its coal finance business as usual. They argue Crédit Agricole must not finance these two damaging power plants.

Almost everyday local people have been protesting in Cirebon, complaining of serious damage caused by the existing coal power plant. There have been protests in front of the Japanese embassy and local people submitted a formal complaint against JBIC [2] at the Japanese embassy in Jakarta last week, demanding the closure of the existing Cirebon plant and the rejection of funding for its expansion.

“Local communities have been persistently protesting the proposed power plant extension in Cirebon and other Japanese funded coal-fired power plants in Indonesia. We don’t want Japan or France or anyone to fund this destruction in our country. The proposed power plants in Indonesia are not to serve the needs of the poor who are without energy access. It is to serve the companies instead. Indonesia does not deserve, and cannot afford, a future built on coal. Don’t lock Indonesian futures into the dark ages with dirty coal,” said Arif Fiyanto, Greenpeace Indonesia.

“The Japan Bank for International Cooperation (JBIC) is 100% funded by the Japanese government, and it uses our public money to fund destruction abroad. Already this year they approved the devastating Batang coal-fired power plant in Indonesia. Their policies are unacceptable. We demand that they must stop funding these coal power plants in Indonesia and elsewhere,” said Ayumi Fukakusa of Friends of the Earth Japan.

“There have been recent wins with French banks in the fight to stop them funding coal. However Crédit Agricole says it is still committed to funding the extension of the Cirebon power plant as well as the Tanjung Jati B power plant. It is not longer acceptable for them to fund any coal, at a time when we are hurtling towards climate catastrophe. We demand they stop the finance of both these power plants right away,” said Armelle Le Comte, Oxfam France.

“Stopping coal and other forms of dirty energy and supporting the communities who are leading these fights on the ground will go a huge way towards stopping the climate crisis. Not only are these projects harming the climate, they are harming communities and workers, grabbing

land, polluting the air and water. At the same time, we are facing a crisis of energy access, since 1.2 billion people across the planet do not have access to electricity. We need energy for people, not corporations and elites. We need an energy transformation now,” said Dipti Bhatnagar of Friends of the Earth International.

ENDS –

1. http://www.foejapan.org/en/aid/160606.html
2. http://www.foejapan.org/en/aid/161110.html

Contacts

For more information you can contact our spokespersons below:
–     Arif Fiyanto, Greenpeace Indonesia. E-mail: arif.fiyanto@greenpeace.org. Phone: +62 811 1805 373.
–     Ayumi Fukakusa, Friends of the Earth Japan. E-mail: fukakusa@foejapan.org. Phone: +81 80 6917 0794.
–     Armelle Le Comte, Oxfam France, E-mail: alecomte@oxfamfrance.org.Phone: 0033 6 85 13 89 58
–     Dipti Bhatnagar, Friends of the Earth International, E-mail: dipti@foei.org.Phone: +212 6 95 54 61 07.

For more general information you can contact media coordinator Leonie Beunen (Friends of the Earth International). Mail: leonie@foei.org. Phone: 0031 6 51 00 56 30. Whatsapp/ sms: 0031 6 52 08 80 75 [22].

Press Conference @COP22

This press was released at COP22 Marrakech in November 17th, “Stopping Coal Finance for Indonesia (FoEI and allies)” , orginized by Greenpeace Indonesia, Oxfam France, Friends of the Earth International, and FoE Japan.

Additional Information:  Cirebon Coal-fired Power Plant Project in West Java, Indonesia

Cirebon Coal-fired Power Plant Project in West Java, Indonesia

The Cirebon Project – Unit 1 with a capacity of 660 megawatt has been developed by a consortium PT. Cirebon Electric Power (CEP) consisting of: Marubeni (32.5%), Korea Midland Power (27.5%), Samtan (20%), and Indika Energy (20%). PT. CEP signed a 30-year power purchase agreement (PPA) with the Indonesian state power utility Perusahaan Listrik Negara (PLN). The project has cost USD 850 million. JBIC, the Export-Import Bank of Korea, and private banks made a loan agreement with CEP with co-financing USD 595 million (USD 214 million from JBIC). The Unit 1 Plant started its commercial operation in July 2012.
In the Cirebon Project – Unit 2 with a capacity of 1,000 megawatt, Marubeni (35%), Indika Energy (25%), Samtan (20%), Korea Midland Power (10%) and Chubu Electric (10%) have invested in, and have established PT Cirebon Energi Prasarana (CEPR). CEPR entered into a 25-year PPA with PLN. The expansion project is estimated to require an investment of USD 2.1 billion, for 80 percent of which JBIC, the Export-Import Bank of Korea, and Japanese and French private banks are considering their co-finance. At the local level, PT. CEPR has been pushing through the construction of access road and land clearing before the commencement of main construction. The Unit 2 Plant is expected to be operational in 2020.

Reference:

Summary of Objection Procedures Based on JBIC Guidelines for Confirmation of Environmental and Social Considerations (Link)