Over the span of 10 years, loans and guarantees for fossil fuel-based companies are 10 times higher than for the renewable energy sector, according to the research findings by Fair Finance Guide International (FGGI) network.
“Some banks began to reduce the proportion of fossil fuel financing, but bank lending and guarantees for fossil fuels are still far higher than renewable energy,” explains the researcher from FGGI, Rotua Tampubolon in Jakarta, Thursday (5/11).
She had examined 11 financial institutions in Indonesia, 8 companies engaged in the coal mining sector and 3 from the utility companies. The finding reveals a still high percentage of loans and guarantees in the fossil fuel sector.
She pointed out financial institutions like CIMB and Panin are still investing 100% in the fossil fuel sector.
In addition to the two institutions, she also said that Bank Mandiri is investing 99%, while BRI and BCA are 98% respectively.