Amid the growing urgency of the climate crisis, the national banking sector remains the main sponsor of the coal industry. Throughout 2021–2024, financial institutions in Indonesia have disbursed up to US$7.2 billion in loans to coal companies, with PT Bank Mandiri Tbk as the largest contributor. This finding was revealed in the latest report by the #BersihkanBankmu Coalition titled “Funding the Climate Crisis: How Banking in Indonesia Supports Coal Financing,” which notes that five national banks channeled up to US$ 5.6 billion to the coal sector.
This phenomenon reflects the government's weak commitment to promoting energy transition. Despite the Financial Services Authority (OJK) classifying coal mines and coal-fired power plants without emission reduction technology as environmentally damaging activities, the government still plans to increase coal-fired power plant capacity by 6.3 gigawatts (GW) in the 2025–2034 RUPTL. Furthermore, there are plans to build 11 GW of captive coal-fired power plants for industrial needs by 2026. This inconsistency in policy direction contradicts President Prabowo's statement targeting 100% renewable energy use within the next decade, made in Brazil in early July.
