JBIC Must Immediately Review and Repeal its Loan Agreement for Illegal Indonesian Coal Project

(Friends of the Earth Japan, Tokyo, 19 April 2017) Following objections from local affected villagers, on April 19th the regional court in Bandung, West Java revoked the environmental permit for the 1000MW Cirebon coal-fired power plant expansion plan known as Cirebon 2 (which Marubeni and JERA invested in). The Japan Bank for International Cooperation (JBIC) had concluded a loan agreement for Cirebon 2 on April 18, the day immediately before the court verdict was due. JBIC now must sincerely take into account the local villagers’ rights and the judicial decision in the host country. JIBC must immediately review and repeal its decision to provide financing for Cirebon 2, as the project is illegal according to local law and in violation of the “JBIC Guidelines for Confirmation of Environmental and Social Considerations” (Guidelines) which require “the compliance with environmental laws of the host nation and local governments concerned” and “the submission of environmental permit certificates issued by the host governments.”