Apr 12, 2019 by members
Coalition members’ Inclusive Development International (IDI) and Bank Information Center Europe (BIC Europe), with JATAM Indonesia released a new report showing how the World Bank Group is quietly bankrolling some of Indonesia’s most destructive coal mining companies despite instituting a virtual ban on coal financing in 2013.
The report examined in particular the impacts of the Kaltim Prima Coal company, which operates a 90,000-hectare strip mining operation in East Kalimantan, a province in Indonesian Borneo. Kaltim Prima Coal, one of the largest open-pit coal mining operations in the world, is owned by Bumi Resources. The International Finance Corporation (IFC), the World Bank’s private-sector arm, has in recent years provided hundreds of millions of dollars to client banks and private equity funds that have on-lent the money with limited oversight in Indonesia, including to the country’s largest coal producer, Bumi Resources, and other major players in the industry.
The investigation of the IFC’s financial-sector portfolio, led by Inclusive Development International and Bank Information Center Europe, has uncovered hidden financial flows to more than 150 companies and projects around the world that have violated human rights, damaged the environment and accelerated climate change, in violation of the IFC’s social and environmental Performance Standards. The organizations have been releasing the results of the investigation, which began in 2016, in a series of reports and a comprehensive database.