Complaint concerning IFC investment KEB Hana Indonesia Rights Issue IV, Project No 42034

The complaint argues that the Java 9 and 10 coal plants, with a combined capacity of 2,000 MW, cause severe environmental and health damage to local communities in Cilegon, Banten. It alleges that the IFC failed in its due diligence and supervision of Hana Bank Indonesia, which provided $56 million in project finance to the developer PT Indo Raya Tenaga despite being a pilot client for the IFC's Green Equity Approach. The complainants highlight deficiencies in the project's Environmental Impact Assessments (EIAs), including a lack of alternatives analysis, inadequate cumulative impact assessments, and failures in community consultation and displacement mitigation. They seek a full compliance review, redress for harms, and systemic policy changes to eliminate IFC's indirect support for coal.

• The Java 9 and 10 coal-fired power plants, with a combined capacity of 2,000 MW, are an expansion of the Suralaya power station, which is described as the "largest coal-fired power complex in Southeast Asia".
• The IFC is exposed to the project through a 2019 equity investment in Hana Bank Indonesia, which provided $56 million in project finance to the developer PT Indo Raya Tenaga in July 2020.
• The project is alleged to be unnecessary due to existing excess capacity in the Java-Bali electricity grid.
• Local communities in Banten Province suffer from severe air pollution and health issues; respiratory problems are reported to account for more than 30% of the local disease burden.
• The project's Environmental Impact Analysis (EIA) documents are described as deficient, specifically lacking an alternatives analysis and providing an inadequate assessment of cumulative impacts.
• The complaint alleges that the IFC failed to properly supervise Hana Bank Indonesia, as the IFC was seemingly unaware of the bank's investment in the coal plants until notified by civil society organizations.
• Community members report facing intimidation, threats, and retaliation for opposing the project, including the use of "thugs" to intimidate activists.
• The project has caused physical and economic displacement, including the destruction of Kelapa Tujuh beach and the forced eviction of residents from a company housing complex without sufficient compensation.
• The project's construction involved the partial leveling of Kahal Hill, described as an "old, sacred site" containing ancestral graves.
• The complainants argue that the investment contradicts the IFC's Green Equity Approach, which aims to eliminate coal exposure by 2030, especially since the project loan term extends to 2035.

APA

Trend Asia (2023). Complaint concerning IFC investment KEB Hana Indonesia Rights Issue IV, Project No 42034. https://trendasia.org/wp-content/uploads/2024/03/Java-9-and-10_CAO-complaint.pdf

Chicago

Trend Asia. Complaint concerning IFC investment KEB Hana Indonesia Rights Issue IV, Project No 42034. 2023. https://trendasia.org/wp-content/uploads/2024/03/Java-9-and-10_CAO-complaint.pdf.

Wikipedia

{{cite press release |author=Trend Asia |title=Complaint concerning IFC investment KEB Hana Indonesia Rights Issue IV, Project No 42034 |date=13 September 2023 |url=https://trendasia.org/wp-content/uploads/2024/03/Java-9-and-10_CAO-complaint.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{trendasia2023complaint, author = {{Trend Asia}}, title = {{Complaint concerning IFC investment KEB Hana Indonesia Rights Issue IV, Project No 42034}}, publisher = {Trend Asia}, year = {2023}, month = sep, url = {https://trendasia.org/wp-content/uploads/2024/03/Java-9-and-10_CAO-complaint.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }