February 03, 2014
To: Mr. Hiroshi Watanabe,Governor
Japan Bank for International Cooperation (JBIC)

We, representatives from 90 civil society groups from 27 countries, wish to draw yourattention to the problems surrounding JBIC’s coal financing and to urge you to abandon plans tofinance the proposed Batang coal fired power plant in Central Java, Indonesia. The Batang power
plant has already been beset by delays, controversy, and local opposition. We strongly call on JBIC
to cancel plans to finance the Batang power plant and to join the growing international consensus tostop financing coal projects abroad.
1.Violation of Indonesian law
The Batang project has already violated several aspects of Indonesian law. As a
Public-Private Partnership project (PPP), the Batang power plant must follow President’s regulation
No.67/2005 (since amended by Presidential Regulation No. 13/2010 and No. 56/2011) which
requires power projects to achieve financial close within 1 year. The project’s guarantee agreement
was signed on October 6th, 2011 with a financial close deadline of October 6th, 2012. However, theproject was delayed due to local opposition1 and financial close was extended for 2 consecutive
years to 2014.
Moreover, the proposed power plant infringes upon the Ujungnegoro-Roban coastal area,
which is protected as a Marine Protected Area and Local Sea Tourism Object under Government
Regulation No. 26/2008. Part of the power plant will be built at sea and infringes upon a protected
area, in direct violation of Central Java provincial bylaw No 6/2010 on spatial planning. Therefore,
the project violates JBIC’s Guidelines for Confirmation of Environmental and Social Consideration[hereinafter “JBIC Guidelines”], which requires that “projects must comply with laws, ordinancesand standards relating to environmental and social considerations established by the governmentsthat have jurisdiction over the project site (including both national and local governments).”
2. Opposition by local community:
More than 7,000 villagers have expressed concern over the proposed power plant. Fifty
local landowners have refused to sell 55 ha of land that is needed for the proposed 226 ha power
plant. The local community has protested on over 22 occasions in the local as well as in Jakarta. On
July 22nd, 2013, about 180 Batang locals protested at the Japanese embassy in Jakarta. The
following week, on July 30th, local authorities and the military resorted to taking violent action
against protestors, which resulted in 17 injuries, according to local news reports. These events makeit difficult to see how the project has secured “social acceptability,” as required by JBIC
1http://www.bloomberg.com/news/2013-10-04/j-power-partners-delay-4-billion-indonesia-coal-power-plant.html
1Guidelines.
In addition, local people are concerned about the plant’s impact on their livelihood andhealth. Construction will destroy fertile agricultural land. Emissions from the plant will pollute local
coastal areas where more than 10,000 fishers earn their living. It is estimated that the facility canemit some 226 kg of mercury per year. Just 0.907 grams of mercury in a lake has the potential makeany fish in a 0.1km2 area unfit to eat.2
3. A turning tide against public finance for coal:
In 2013, as part of a growing international consensus, several financial institutions andgovernments declared their intention to cut financing for coal projects abroad. The US
government, the 5 Nordic countries, the World Bank, the European Investment Bank, and theEuropean Bank for Reconstruction and Development, all took steps to set stricter standards forcoal financing. JBIC should follow suit and implement a ban on financing coal projects
overseas.
4. Indonesia’s commitment to reducing greenhouse gas emissions:
There have been major initiatives by the Indonesian government to combat climate change.
In 2009, the government pledged to reduce its greenhouse gas emissions by 26% by 2020. However,the Batang power plant alone is likely to emit 10.8 million tonnes of CO2 per year. If coal fired
power plants continue to be built, Indonesia’s energy sector emissions could double by 2020.3 If weare to have any chance of avoiding catastrophic climate change, according to scientists we must
limit global temperature rises to 2ºC from pre-industrial level. We must phase out coal which isresponsible for more than 40% of global CO2 emissions. The $4 billion dollars required for theplant should be used to promote renewable energy, which is becoming increasingly cost-competitive
and avoids negative impacts on communities, health and the environment.
In conclusion, we call on JBIC to:(i) Confirm the above concerns by conducting a field investigation and talking directly withlocal residents/ NGOs rather than relying solely on the project implementer and theIndonesian government.
(ii) Disclose all social and environmental documents related to the project, including theEnvironmental Impact Assessment and Resettlement Action Plan in both Indonesian andEnglish.
(iii) Reject financing for the Batang coal-fired power plant in Indonesia.
(iv) Release an official policy statement that pledges an end to coal financing and support for
funding cleaner, more sustainable renewable energy projects using innovative Japanesetechnology.

2http://www.greenpeace.org/seasia/id/press/releases/Batang-Coal-fired-Power-Plant-Will-destroy-health-and-liveliho

ods/
3 ditto2

Thank you in advance for your consideration and we look forward to your response.

Yours sincerely,
Contact Information:
Friends of the Earth Japan
3-30-22-203, Ikebukuro, Toshima-ku, Tokyo 171-0014 Japan
Tel: 03-6907-7217 Fax: 03-6907-7219
Japan Center for a Sustainable Environment and Society (JACSES)
401, Sanshin Bldg., 2-3-2 Iidabashi, Chiyoda-ku, Tokyo 102-0072 Japan
Tel: 03-3556-7325 Fax: 03-3556-7328
Kiko Network
6F, Ichibancho-Murakami Bldg., 9-7, Ichibancho, Chiyoda-ku, Tokyo 102-0082, JAPAN
Tel: 03-3263-9210, Fax: 03-3263-9463
This letter is endorsed by the following 90 organizations.
350.org
Asian Peasant Coalition
Carbon Market Watch
Climate Action Network (CAN) EuropeECA Watch
Focus on the Global SouthGreenpeace International
The Alliance for Future Health, Australia
Bimblebox Nature Refuge, Australia
Friends of the Earth Australia
Friends of the Earth Brisbane, Australia
Front Line Action on Coal, Australia
Market Forces, Australia
ECA Watch Austria
GLOBAL 2000 - Friends of the Earth Austria
11.11.11, Belgium
Center for ecology and energy, Bosnia and Herzegovina
National Committee for the Defense of Flora and Fauna (CODEFF) - Friends of the Earth Chile
Greenovation Hub, China
Zelena akcija - Friends of the Earth Croatia
Egyptian Center for Economic and Social Rights (ECESR), Egypt
Les Amis de la Terre - Friends of the Earth France3

Bund für Umwelt und Naturschutz Deutschland (BUND) - Friends of the Earth Germany
Urgewald, Germany
Conservation Action Trust, India
Himal Prakriti - A Trust for Nature., India
National Adivasi Alliance, India
South Asian Dialogues on Ecological Democracy (SADED), India
BALIFOKUS Foundation, Indonesia
Greenpeace Indonesia
IMPARSIAL - The Indonesian Human Rights Monitor, Indonesia
Indonesian Women's Coalition, Indonesia
Institute for Essential Services Reform (IESR), Indonesia
International NGO Forum On Indonesian Development- INFID, Indonesia
JKLPK (Jaringan Kerja Lembaga Pelayanan Kristen)(Christian NGO's Networking), Indonesia
Suara Perempuan Desa (SPD) (Rural Women's Voices), Indonesia
Wahana Lingkungan Hidup Indonesia - Friends of the Earth Indonesia
ReCommon, Italy
A SEED JAPAN, Japan
Finance GreenWatch, Japan
Friend of the Earth Japan
Japan Center for a Sustainable Environment and Society (JACSES) , Japan
Japan Tropical Forest Action Network (JATAN), JapanJUBILEE KYUSHU ON WORLD DEBT AND POVERTY, Japan
Kiko Network, Japan
Kyoto Mizu to Midori wo Mamoru-Kai (Liaison group for Preservation of Water and Green inKyoto), JapanNAGOYA CENTER FOR PHILIPPINE CONCERNS, Japan
Network for Indonesian Democracy, Japan (NINDJA), Japan
Pacific Asia Resource Center (PARC), Japan
People to People Aid, JapanWWF Japan, Japan
Institute for Climate Change Action, Korea
Korea Federation for Environmental Movement (KFEM) - Friends of the Earth Korea
Ecodev, Myanmar
Both ENDS, The Netherlands
Environmental Rights Action - Friends of the Earth Nigeria
Norges Naturvernforbund - Friends of the Earth Norway, Norway
Center for Environmental Law and Community Rights Inc (CELCOR) - Friends of the Earth Papua
New Guinea
Alyansa Tigil Mina (ATM), Philippines
BAN Toxics!, Philippines
Bohol People's Art Development Center, Philippines
Central Visayas People's Network for Life and Environment, Philippines
4Cordillera Peoples Alliance, Philippines
Farmers Development Center-Bohol, Philippines
KAPAKANAN-Bohol (Kabatan-onan Para sa Kalambuan sa Nasud), Philippines
KATRIBU Partylist, Philippines
Northern Media Information Network, Philippines
Philippine Movement for Climate Justice (PMCJ), Philippines
Visayas Primary Health Care Services-Bohol, Philippines
Women's Development Center in Bohol, Philippines
Euronatura, Portugal
groundWork - Friends of the Earth, South Africa
Taiwan Youth Climate Coalition (TWYCC), Taiwan
AIDS Access Foundation, Thailand
BIOTHAI Foundation, Thailand
Centre for Ecological Awareness Building (EAB), Thailand
Ecological Alert and Recovery - Thailand (EARTH), Thailand
Foundation for Consumers, Bangkok, Thailand
FTA Watch, Thailand
Greenpeace Southeast Asia, Thailand
Sustainable Development Foundation, Thailand
Thai Climate Justice Working Group (TCJ), Thailand
Thai Holistic Health Foundation, Thailand
The World Development Movement, UK
Accountability Counsel, USInstitute for Energy Economics and Financial Analysis, US
Montana Environmental Information Center, US
Oil Change International, US
Pacific Environment, USSierra Club, US

Cc: Mr. Shinzo Abe, Prime Minister, Japan
Mr. Taro Aso, Minister of Finance, Japan
Mr. Masahiro Okafuji, President & Chief Executive Officer, ITOCHU Corporation
Mr. Yasuo Maeda, Chairman, Electric Power Development Co.,Ltd. (J-POWER)
Mr. Masayoshi Kitamura, President, Electric Power Development Co.,Ltd. (J-POWER)
Mr. Takeshi Kunibe, President, Sumitomo Mitsui Banking Corporation
Mr. Yasuhiro Sato, President & CEO, Mizuho Bank, Ltd.
Mr. Nobuyuki Hirano, President, The Bank of Tokyo-Mitsubishi UFJ, Ltd.

5