FINANCING TO DELAY

This report by Indonesia Corruption Watch and Trend Asia examines the financial and political networks sustaining the coal industry in Indonesia. It identifies significant funding from state-owned and private banks to coal corporations and argues that regulatory capture and the influence of a wealthy elite are delaying a just clean energy transition.

• Between 2020 and 2023, financial institutions disbursed at least IDR 163,930,132,583,916 in project, corporate, and syndicated loans 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 funding among the investigated companies, with at least IDR 63,458,619,187,570 in loans between 2020 and 2022.
• The Indonesian coal industry is heavily influenced by oligarchic groups and politically exposed persons. An investigation of seven coal companies identified at least 89 politically exposed persons and 45 individuals listed in Offshore Leaks.
• The report alleges that regulatory capture in the energy sector has led to greenwashing and the delay of climate action. Specifically, the Financial Services Authority (OJK) revised the green taxonomy to the 'Taxonomy for Indonesian Sustainable Finance' (TKBI) in February 2024, which allows financial support for extractive industries and labels certain coal-fired power plants as 'Green' or 'Transition'.
• The Just Energy Transition Partnership (JETP), launched in November 2022 with an initial commitment of $20 billion, is criticized for its reliance on debt financing and for failing to accommodate decarbonization schemes for off-grid or captive coal-fired power plants as of December 2023.
• Major coal conglomerates in Indonesia maintain integrated upstream and downstream operations. For example, Adaro operates extensive concessions and the Batang coal-fired power plant, while Barito Pacific acquired PT Multi Tambangjaya Utama in 2023 to complete its coal portfolio.

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} }