FINANCING TO DELAY

The report identifies a systemic network of financial support for Indonesia's coal industry, noting that between 2020 and 2023, at least IDR 163 trillion was disbursed to coal-related activities. It highlights the role of state-owned banks, particularly Bank Mandiri and Bank Rakyat Indonesia, as primary funders. The document argues that this financial support, combined with 'regulatory capture' and the influence of a wealthy elite (the 1%), creates a state of 'climate delay.' It specifically criticizes the OJK's updated green taxonomy for labeling certain coal-fired power plants as 'Green' or 'Transition,' which the authors characterize as greenwashing. The report also maps the ownership and political affiliations of seven major coal companies, linking them to politically exposed persons and individuals listed in Offshore Leaks.

• Between 2020 and 2023, financial institutions disbursed at least IDR 163,930,132,583,916 to support coal-related industrial activities in Indonesia, based on the annual reports of the six largest coal corporate groups.
• Bank Mandiri is the largest provider of funds to coal-related industries, disbursing at least IDR 66,928,644,252,330 between 2020 and 2023, followed by Bank Rakyat Indonesia (BRI) with at least IDR 23,416,686,915,210.
• PT Dian Swaistika Sentosa (DSSA), part of the Sinar Mas group, received the highest total amount of loans among the investigated companies, totaling at least IDR 63,458,619,187,570 between 2020 and 2022.
• The Indonesian coal industry is heavily influenced by an elite 1% and oligarchic groups, with at least 89 politically exposed persons and 45 individuals listed in Offshore Leaks identified across seven coal companies.
• The OJK's Taxonomy for Indonesian Sustainable Finance (TKBI), published in February 2024, is accused of greenwashing by labeling coal-fired power plants slated for early retirement as 'Green' and those in the 2021-2030 RUPTL or captive plants as 'Transition.'
• The report argues that 'regulatory capture' has occurred in Indonesia's energy sector, where the government and OJK prioritize the financial interests of the coal industry over the public interest and climate goals.
• The Just Energy Transition Partnership (JETP) is criticized for its debt-heavy financing model and for failing to include a decarbonization scheme for off-grid or captive coal-fired power plants as of December 2023.
• Major coal conglomerates like Adaro, Sinar Mas, and Barito Pacific maintain integrated upstream and downstream operations, including the construction of new coal-fired power plants for industrial use.

APA

Aulia, Y., Syahni, M., Amali, Z., Primayogha, E., & Tamara, S. (2024). FINANCING TO DELAY. Trend Asia. https://trendasia.org/wp-content/uploads/2024/10/Financing-to-Delay-EN.pdf

Chicago

Aulia, Yassar, Meidella Syahni, Zakki Amali, Egi Primayogha, and Seira Tamara. FINANCING TO DELAY. Trend Asia, 2024. https://trendasia.org/wp-content/uploads/2024/10/Financing-to-Delay-EN.pdf.

Wikipedia

{{cite report |last1=Aulia |first1=Yassar |last2=Syahni |first2=Meidella |last3=Amali |first3=Zakki |last4=Primayogha |first4=Egi |last5=Tamara |first5=Seira |title=FINANCING TO DELAY |publisher=Trend Asia |date=June 2024 |url=https://trendasia.org/wp-content/uploads/2024/10/Financing-to-Delay-EN.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{aulia2024financing, author = {Aulia, Yassar and Syahni, Meidella and Amali, Zakki and Primayogha, Egi and Tamara, Seira}, title = {{FINANCING TO DELAY}}, institution = {Trend Asia}, year = {2024}, month = jun, url = {https://trendasia.org/wp-content/uploads/2024/10/Financing-to-Delay-EN.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }