Japanese, Singaporean banks finance controversial Indonesian coal plant
A consortium of Asian banks will provide US$3.36 billion in loans to support the expansion of the Tanjung Jati B coal-fired power plant project in the Jepara district of Indonesia’s Central Java province. Plans to expand Tanjung Jati B are part of a broader initiative that aims to add 35,000 megawatts to Indonesia’s electrical grid by 2019. The government is relying heavily on coal to meet this ambitious goal, with 117 new coal-fired power plants planned. The Tanjung Jati plant, and its expansion plans, have been the target of sustained protests from both local and international groups. The 2,640-megawatt plant began operating in 2006, and local fisherman say their catches —and, correspondingly, their earnings — have since declined. The planned expansion will add another 2,000 megawatts of capacity, drawing protests from activists who say the expansion further threatens the health and livelihoods of the surrounding communities.
