In 2020, 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. As of September 2023, about 80% of the construction of Java 9 & 10 has been completed, with full operation scheduled for 2025. The two-unit expansion will have an estimated 2GW capacity.

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 will 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 CAO Policy, the case was transferred to CAO’s Compliance function for appraisal on March 12, 2024.

In June, 2024, CAO completed its compliance appraisal with the decision that a compliance investigation was merited. The appraisal report is available in English and Bahasa Indonesia.