Jakarta—The Japan Bank for International Cooperation (JBIC) has provided financing to several international liquefied natural gas (LNG) projects, including in Indonesia, which has drawn criticism from various circles. JBIC-financed projects are said to not only adversely affect the environment but also threaten the lives of local communities, as seen in the Donggi-Senoro LNG Project in Central Sulawesi.
According to the report titled “Faces of Impact: JBIC and Japan’s LNG Financing Harms Communities and the Planet,” published by a coalition of civil society organisations, including Friends of Earth Japan, Greenpeace, Walhi, and others, JBIC funding for fossil energy projects has increased. The report, published on Thursday, October 17, reveals that JBIC has allocated up to 18.6 billion USD since 2016 to expand gas projects, four times more than Japan’s contribution to the Green Climate Fund. This goes against the G7 countries’ pledge to end funding of fossil energy projects.
The USD 1 billion Donggi-Senoro LNG project in Uso Village, Banggai, is one concrete example of the impact of JBIC funding. Due to this project, villagers, especially fishermen and farmers, have experienced a drastic decrease in income. According to Walhi Nasional’s Spatial and Infrastructure Campaign Manager, Dwi Sawung, fishermen’s catches have dropped to a tenth of their previous yield.
“Not only are fishermen losing their catchment areas, but they are also facing a decline in catch quality due to the emissions released by the LNG plant. In addition, farmers have also reported a decline in crop yields due to pollution from the project,” Dwi said.
Before the project, residents could manage their natural resources independently, especially when catching skipjacks. However, they are now prohibited from fishing around the project site. This has caused local fishermen to lose their livelihoods.
Not only fishermen but also farmers in Uso Village were negatively affected by the project. Yields of coconut, banana, corn, and chilli have decreased significantly. These adverse environmental impacts have triggered demands from local communities for compensation and access to employment at the project.
However, according to the report, the project manager’s promise to employ local people still needs to be fulfilled. Of the total 570 workers, the majority came from outside the Central Sulawesi region, while only a small number of locals were employed and, even then, in irregular positions.
The Donggi-Senoro LNG project is just one of many similar projects worldwide that have received funding from JBIC. In Bangladesh, the Meghnaghat LNG project also sparked public complaints due to declining fish populations and rising electricity costs. While in Thailand and the Philippines, JBIC-funded LNG projects have also faced allegations of environmental violations and community displacement.
With growing criticism of JBIC’s role in supporting fossil energy projects, demands to stop funding projects that harm the environment and local communities are growing louder. (Hartatik)
Banner photo: shutterstock
