01 October 2025

Banks Should Stop Funding Coal-Powered Nickel of Harita Group

Jakarta, 1 October 2025 — Civil society groups Market Forces, Enter Nusantara, JATAM, Trend Asia, and two pastors from Obi Island have staged a theatrical protest outside Jakarta offices of banks financing Harita Group’s nickel smelter operations on Obi Island, North Maluku.

The groups unveiled a striking Trojan Horse installation to symbolize how banks are disguising coal finance as necessary behind the clean ‘energy transition’ agenda. Nickel is being framed as critical for electric vehicles and renewable energy, but Harita’s smelters on Obi Island are powered by massive new captive coal plants, undermining the company’s commitments to global climate goals.

Harita’s operations already emit nearly 11 million tonnes of carbon dioxide annually, nearly 1% of Indonesia’s 2023 emissions. Toxic pollution from Harita operations are undermining global climate goals as they are set to double to 22.45 million tonnes by 2028 if current expansion plans proceed, locking in decades of dangerous pollution.

There is no room for new coal power in a world aiming to limit global warming to 1.5 degrees as agreed in the Paris Agreement, according to scientists and experts, including the International Energy Agency and International Institute for Sustainable Development.

Ginanjar Ariyasuta, Market Forces campaigner said:

“Singaporean and Malaysian banks, including OCBC, UOB, DBS, Maybank, and CIMB have public coal exclusion policies, claiming they will no longer fund new coal power projects.” “Southeast Asia’s biggest banks are violating their sustainability commitments by financing companies like Harita, whose nickel smelters rely on 890 MW of new industrial coal plants. Planned construction would double up to 2.1 GW, polluting coal power generation in the coming years.”

Ramadhan, Enter Nusantara Action Coordinator said:

“As climate disasters worsen, it is time Indonesia’s banks come clean, dump coal power and do what’s best for Indonesians by supporting clean energy and a safer future.” “Recently, Bank Mandiri provided IDR 3.1 trillion in financing for Harita’s smelter projects. To limit global warming to 1.5-degrees, the science is clear: there must be no new coal power plants.”

“Indonesian banks must stop funding dirty energy projects immediately and shift their financing toward renewable energy.”

Alfarhat Kasman, JATAM campaigner said:

“Harita’s upstream mining operations on Obi Island have already caused severe environmental destruction and human rights violations.”

“Local communities report long-term contamination of water sources with toxic chromium-6 far above safe levels, and there are well-documented cases of forced evictions of Indigenous residents living in areas affected by Harita’s operations.” “Banks should not be complicit in financing a company that harms both people and our precious environment.”

Novita Indri, Trend Asia Campaigner said:

“Coal is still the most polluting fossil fuel, even if it is hidden behind the promise of enabling electric cars and clean energy.” “Banks that fund Harita are not supporting a just transition to clean and reliable renewable energy, they are only exacerbating environmental damage and undermining efforts to achieve Paris Agreements.”

Financing coal power for industry exposes Indonesian and other Southeast Asian banks to serious reputational and regulatory risks, particularly as global investors and policymakers demand the immediate and credible phasing out of coal.

The action concluded with the submission of a report and open letter by two pastors from Obi Island. They demand that OCBC, UOB, DBS, Maybank, CIMB, and Bank Mandiri end new financial support for Harita Group, and redirect funding to projects that advance a just and sustainable energy transition.

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