JAKARTA: Environmental groups have submitted a formal complaint to the World Bank for providing financial support for two coal-fired power plants in Indonesia, violating a pledge to stop backing fossi
The World Bank's private sector subsidiary, the International Financial Corporation , is an indirect backer of the Suralaya coal-fired power complex via its equity investment in Hana Bank Indonesia, one of the project's financiers, a coalition of green groups said on Thursday .
"Harm to local communities, including the forced eviction of those who were living on the project site, is already occurring," said the letter, sent on behalf of local grassroots organisations by Inclusive Development International, a US non-governmental organisation.The IFC vowed to stop investing in coal in 2020, but it continues to hold stakes in financial institutions with coal investments, like Hana Bank, as long as they have plans to phase out their exposure.
The Helsinki-based Centre for Research on Energy and Clean Air said on Tuesday that the Suralaya power complex has had a severe impact on air quality in the region, incurring over US$1 billion in annual health costs. PT Indo Raya Tenaga, the developer of the Suralaya plants, has said it plans to power some of the new capacity with ammonia, along with coal, to reduce emissions.According to the Global Energy Monitor think tank, Indonesia was one of 11 countries to commission new coal plants last year. Total coal-fired capacity reached 40.6 gigawatts last year, up 60 per cent since 2015, with another 18.8 GW under construction, the third highest amount in the world behind China and India.
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