Wanting To Create A Carbon-Free Society, Japan Stops Funding For PLTU Development In Indonesia And Bangladesh

Illustration. (Photo: Unsplash)

JAKARTA - Japan will stop providing loans for the construction of coal-fired power plants (PLTU) in several countries, including Indonesia. This policy is specifically for the construction of PLTU Indramayu.

Japan argued that the loan termination was in response to international criticism of coal-fired power plants, which are the main source of greenhouse gas emissions blamed for causing global warming.

"We have decided that we cannot continue further support for these projects (PLTU Indramayu and PLTU Matarbari) as subject to yen loans," said Foreign Ministry Press Secretary Hikariko Ono.

He also said the Japanese government would continue to assist developing countries in their efforts to create a carbon-free society.

Besides Indonesia, Japan also stopped funding for the construction of steam power plants in Bangladesh. Especially for PLTU Matarbari.

As is known, Indonesia and Bangladesh are currently conducting the survey phase for these projects with the support of Japan, but they are still in the planning stage and have not yet progressed to construction.

The G7 countries previously agreed in 2021 to end their funding support for coal-fired power plants. And previously, Japan also insisted on maintaining the ongoing PLTU project, triggering international pressure from pro-environment groups and considering that the G-7 countries had violated their commitments.

The G-7 consists of Britain, Canada, France, Germany, Italy, Japan and the United States, plus the European Union.