In 2020, the IFC client PT Bank KEB Hana Indonesia joined a consortium of commercial and public banks that provided financing for the expansion of the Suralaya coal-fired power plant complex in Indonesia.

The two new power plants, Java 9 and 10, are being developed by PT Indo Raya Tenaga near Suralaya village in Banten Province. In May 2025, both plants began commercial operations. The two-unit expansion has an estimated capacity of 2 GW.

In September 2023, CAO received a complaint submitted by four Civil Society Organizations (CSOs) – Inclusive Development International (IDI), Recourse, Trend Asia, and PENA Masyarakat – on behalf of residents of the Suralaya Village.

The complaint raised concerns related to the expansion of the Suralaya coal-fired power plant complex, including: (i) air pollution from the existing power plants, causing health problems that would be further intensified by the construction of additional power plants; (ii) impacts of air pollution on human health; (iii) land acquisition and resettlement impacts; (iv) impacts on the livelihoods of community members, particularly fishermen; (v) impacts of environmental pollution on ecosystem services; (vi) lack of transparency, information, and meaningful consultation with communities; (vii) construction impacts; (viii) threats and reprisals; and (ix) IFC’s lack of due diligence and appropriate supervision.

In October 2023, CAO found the complaint eligible and conducted an assessment. During the assessment, the parties decided to proceed with a compliance process. Consequently, in accordance with the CAO Policy, the case was transferred to CAO’s Compliance function for appraisal on March 12, 2024. The Assessment Report is available in English and Bahasa. 

In June 2024, CAO completed its Compliance Appraisal (available in English and Bahasa) regarding  the complaint related to IFC’s investment in PT Bank KEB Hana Indonesia, concluding that the complaint merited a compliance investigation. CAO found that: (i) there were preliminary indications of harm associated with the Java 9 & 10 coal-fired power plants, including impacts on air quality, community health, livelihoods, resettlement, and exposure to threats and reprisals; (ii) IFC may not have complied with its environmental and social (E&S) policies, particularly in relation to its E&S due diligence and supervision of the financial intermediary client, including the assessment of the client’s E&S risk profile, the adequacy of its Environmental and Social Management System (ESMS), and the application of Performance Standards to high-risk sub-projects; and (iii) the alleged harm to the complainants is plausibly linked to IFC’s potential non-compliance, as adequate due diligence and supervision could have helped prevent or mitigate the reported impacts.