How “Sustainable” Finance from the Asian Development Bank is Fueling Indonesia’s Coal Expansion

The report alleges that the Asian Development Bank (ADB) provided a $600 million loan to Indonesia's state-run utility, Perusahaan Listrik Negara (PLN), which lacks a 'no-coal' clause and may be used to fund coal expansion, including the Java 9 & 10 project. This contradicts ADB's public climate pledges and its October 2021 Energy Policy. The report highlights the severe health and environmental impacts of coal in Banten Province, where the Suralaya Power Station operates, and criticizes the lack of financial transparency as loan proceeds are mixed into PLN's general account.

• The Asian Development Bank (ADB) provided a $600 million loan in December 2021 to Perusahaan Listrik Negara (PLN) that lacks a 'no-coal' clause, potentially allowing funds to be used for coal-fired power plants.
• The loan's 'eligible expenditures' are defined as 'expenditures incurred under the PLN’s Program,' which refers to the RUPTL 2021-2030 business plan that includes the Java 9 & 10 expansion and over a dozen other coal projects.
• The ADB's financing practices for this loan violate its own green financing standards because funds are deposited into PLN's general bank account, making it impossible to trace the end use of the money.
• The Java 9 & 10 expansion of the Suralaya Power Station is projected by Greenpeace to cause between 2,400 and 7,300 premature deaths over its 30-year lifespan.
• Coal pollution in Banten Province has led to a public health crisis, with 2017 data showing up to 15,000 children under five suffering from Acute Respiratory Infection.
• The International Finance Corporation (IFC) is facing a complaint via its Compliance Advisor Ombudsman regarding indirect financing of Java 9 & 10 through its client, PT Hana Bank Indonesia.

APA

Roasa, D. (2024). How “Sustainable” Finance from the Asian Development Bank is Fueling Indonesia’s Coal Expansion. Trend Asia. https://trendasia.org/wp-content/uploads/2024/04/7636-IDI-Report-Smog-and-Mirrors-Digital-FA-3.pdf

Chicago

Roasa, Dustin. How “Sustainable” Finance from the Asian Development Bank is Fueling Indonesia’s Coal Expansion. Trend Asia, 2024. https://trendasia.org/wp-content/uploads/2024/04/7636-IDI-Report-Smog-and-Mirrors-Digital-FA-3.pdf.

Wikipedia

{{cite report |last1=Roasa |first1=Dustin |title=How “Sustainable” Finance from the Asian Development Bank is Fueling Indonesia’s Coal Expansion |publisher=Trend Asia |date=April 2024 |url=https://trendasia.org/wp-content/uploads/2024/04/7636-IDI-Report-Smog-and-Mirrors-Digital-FA-3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{roasa2024how, author = {Roasa, Dustin}, title = {{How “Sustainable” Finance from the Asian Development Bank is Fueling Indonesia’s Coal Expansion}}, institution = {Trend Asia}, year = {2024}, month = apr, url = {https://trendasia.org/wp-content/uploads/2024/04/7636-IDI-Report-Smog-and-Mirrors-Digital-FA-3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }