Java 9-10: A Critical Turning Point to Translating Hana Financial Group's Commitment to End Coal Financing into Concrete Actions

Jakarta, March 23rd, 2021-Global divestment in the coal sector is on an increasing trend. The most recent commitment to get out of coal recently came from the Hana Financial Group which vowed to join the anti-coal campaign to support the Korean Government’s target of becoming a carbon-neutral country by 2050. They also promised not to provide financial assistance to businesses that damaging he environment or violating human rights. Hana is also known to be doing business in Indonesia.

This is in line with the increase in frequency and intensity of the climate crisis, as well as the concern for a green recovery from the Covid-19 pandemic.. A recent study [2] has identified a strong link between environmental damage and pandemic; air pollution, and the risk of covid-19 infection.

“There has been excessive damage to nature and environmental losses caused by the coal mines exploitation in Indonesia. By taking advantage of the technological advances that Korea has achieved, opportunities for environmentally friendly investment cooperation in Indonesia are very open, more profitable and sustainable. Undoubtedly Hana group will have a good reputation if it helps financing clean investment and its business in Indonesia will grow,” Faisal Basri said.

Unfortunately, Hana Bank Indonesia, a company under Hana Financial Group, still provides support for Java 9 and 10 coal power plants (CPP). This will certainly flawed Hana Financial Group’s commitment. Recently, President Joko Widodo has removed Fly Ash and Bottom Ash (FABA) from the list of Toxic and Hazardous Waste through Government Regulation (Peraturan Pemerintah Nomor 22 Tahun 2021) about the Implementation of Environmental Protection and Management, a decision that will trigger the environmental damage and health disasters.

“As a manifestation of their commitment to green investment, Hana Financial Group has to take concrete action to end their total support for dirty energy both domestic and abroad. Hana Bank Indonesia must immediately withdraw its support for the Java 9 and coal power plant project, in Banten. If it is not, Hana Financial Group’s latest commitment will only be a “pseudo commitment” that does not have a significant impact in an attempt to tackle the climate crisis, because it is still involved in foreign dirty energy investment,” Andri Prasetiyo, Researcher and Campaigner of Trend Asia said.

The construction of the Java 9 & 10 CPP has drawn resistance from residents. In the petition conducted through Change.org platform, a recent update showed that nearly 12,000 residents have been signing itt. On Wednesday, March 18, 2021, Suralaya residents also took part in the protest to fight the delisting of FABA from the Toxic and Hazardous Waste list, because this derivative regulation of the Job Creation Law will further degrade and reduces their living space which is already surrounded by air pollution of coal plants.

“As IFC’s client, Hana Bank Indonesia promised to exit coal by 2030, but instead it provided project finance for Java 9 and 10 coal plants which extend its exposure to coal until 2035. There are no more excuses: it is time for Hana Bank Indonesia to do the right thing, and divest from Java 9 and 10,” Kate Geary from Recourse said.