JAKARTA – Coordinator of the Association for Economic Action and People’s Emancipation (AEER) revealed that domestic bank loans to the coal industry are still high, analysts said Tuesday. In the 2018-2020 period, funding for coal reached IDR 89 trillion.
“Funding for the coal industry is still much higher than loans to the renewable energy sector which is only IDR 21.5 trillion,” Ginting said in a written release, Tuesday (1/3), adding that he hopes that domestic banking institutions will stop funding the coal industry. Every stakeholder has big roles to play in stopping the climate crisis, including the banking sector.
Jeri Asmoro, Indonesia digital campaigner 350.org said, some banks have a big role in causing various climate disasters when they are still funding fossil energy projects and questioned “their role, are they part of the solution by practising true sustainable finance?”
He further said, currently there are four banks in Indonesia that are still funding coal dirty energy projects that contribute to the climate crisis. The banks are BNI, Mandiri, BRI and BCA. Meanwhile, interim 350.org Indonesia team leader Firdaus Cahyadi added that the role of these four banks in exacerbating the climate crisis through funding for dirty coal energy was very disappointing.
“Their policy of funding coal is very disappointing for all of us, including the customers of the four banks. BNI, for example, has several times claimed to support efforts to reduce greenhouse gases, the cause of the climate crisis, but in fact it is still funding coal. It’s really disappointing,” he said, adding that community involvement, including indigenous peoples, is also needed in overcoming the climate crisis.
“The recent IPCC report related to impact, adaptation and vulnerability emphasised the importance of the role of indigenous peoples and local communities because they have knowledge about the world, about nature,” said Climate Reality Leader Brigitta Isworo Laksmi.
Laksmi said that it is important to involve indigenous peoples since they are closest to nature and know how to solve the climate crisis. Moreover, Indonesia has so many indigenous peoples. “(The government) should be able to take strategic steps by involving them in planning development for climate resilience,” she said. (Hartatik)
