Jakarta, October 28, 2025 – The irony surrounding energy sector financing in Indonesia is increasingly under public scrutiny. Enter Nusantara has released a concise study highlighting high awareness among young customers regarding domestic banks’ financial support for the coal industry. The report urges financial institutions to immediately stop funding coal, which is seen as undermining national climate commitments.
During the launch event at Ruang Belajar Alex Tilaar, Enter Nusantara disclosed that domestic banks channeled a massive $19.5 billion—equivalent to over Rp305 trillion (estimated rate)—to the fossil fuel sector between 2016 and 2022. This figure stands in stark contrast to the allocation for renewable energy projects, which only amounted to about $1.7 billion—around Rp28.286 trillion.
The research conducted by Enter Nusantara, surveying young customers aged 17–35 in the Greater Jakarta area (Jabodetabek), strongly indicates that this generation is ready to take action.
“The survey results prove that the younger generation has given a mandate for change, that transparency is the trigger for activism. This report is crucial for formulating a measurable advocacy strategy to urge banks, including Danantara, to prioritize transparency and the transition to renewable energy, in order to fulfill Indonesia’s climate commitments,” said #BersihkanBankmu Project Lead, Ramadhan.
The report also highlighted the dilemma of national coal production. While Indonesia is on the frontline of the global climate crisis, over 88% of its electricity still relies on fossil fuels, with 60% coming from coal.
Ironically, in 2024, Indonesia’s coal production hit a record high of 836 million tonnes—an increase of nearly 8% from the previous year. Coal demand projections for power plants are even expected to climb from the current 90 million tonnes to 150–160 million tonnes by 2028–2030.
The simple research by Enter Nusantara specifically analyzed the role of Danantara, the state-owned strategic investment manager, which controls Indonesia’s largest coal-funding banks. These findings form the basis for Enter Nusantara and its CSO partners to increase public pressure and drive more sustainable investment policies.
A panel discussion involving the Center of Economic and Law Studies (CELIOS), Enter Nusantara, and the Energy Shift Institute emphasized that the accountability of financial institutions, especially Danantara and domestic banks, is critical in determining Indonesia’s energy future. Experts stressed that banks must take responsibility and immediately redirect their investments toward clean energy.
“As a society, we must demand that the government and banks be more open about the transparency of our money. Because when we have perfect information, we can make better decisions,” concluded CELIOS Researcher, Rani Septyarini.
“If Indonesia is serious about attracting green investment, then the OJK (Financial Services Authority), BKF (Fiscal Policy Agency), and ministries must start answering the question of whether the current taxonomy is encouraging or weakening the signal for energy transition to the market? An incredible taxonomy could actually make climate and green investors hesitate to invest in Indonesia. Indonesia must look ahead and set strict limits for coal-fired power plants (PLTU) not to be included in either the green or transition categories. This is a very important step to convince green investors that Indonesia is serious about the green transition,” explained Senior Analyst at Energy Shift Institute, Nabila Gunawan.
“We don’t want the future place where we live to be further damaged because our money is being used to fund the dirty coal industry. Banks in Indonesia must be transparent about where their public funds are flowing. All of us, young people, have the right to know what their money is being used for. Because our money represents our actions!” asserted Program Manager at Enter Nusantara, Nabila Putri.
The presentation of this concise research is expected to be a catalyst, urging domestic banks and Danantara to immediately stop coal financing and accelerate a just and sustainable energy transition agenda in Indonesia.
Read the other findings from this survey here: bit.ly/SurveiPersepsiNasabahMuda_BersihkanBankmu
