Public pressure on the banking sector to divest from high-emission projects is intensifying across Southeast Asia. A recent survey reveals that a significant portion of the Indonesian public now views banks as direct contributors to the climate crisis if they continue to fund coal mining and coal-fired power plant operations.
The survey, titled “Banks and Coal Financing: Public Perception Survey across Indonesia, Malaysia, and Singapore,” was conducted by the market research firm YouGov in partnership with Market Forces, a global environmental advocacy organization dedicated to curbing investments that harm the planet. The study gathered insights from 4,000 respondents, including 2,000 from Indonesia, 1,000 from Malaysia, and 1,000 from Singapore.
The findings for Indonesia are stark: 60 percent of respondents—approximately 1,200 individuals—agreed that banks financing coal-related projects contribute significantly to climate change. While 26 percent remained neutral, only 13 percent disagreed. Furthermore, 71 percent of Indonesian respondents asserted that banks should strictly refrain from financing any companies or projects associated with high greenhouse gas emissions. These sentiments were broadly mirrored by participants in Malaysia and Singapore.
Bernadette Maheandiran, Asia Energy Finance Director at Market Forces, noted that the growing climate concern in these nations is rooted in the tangible reality of environmental degradation. “From deadly heatwaves to more frequent flooding, storms, and landslides, the impacts are already being felt by the public,” Maheandiran stated in an official release on Tuesday (19/5).
Consumer Willingness to Switch Banks
A critical takeaway from the research is the potential for consumer migration. Approximately 43 percent of Indonesian respondents indicated they would consider switching to a different financial institution if their current bank fails to end its funding of coal projects. Public trust is clearly contingent upon a total exit, with participants expecting banks to stop financing not just specific projects, but the parent companies behind coal-fired power plants.
More than half of the Indonesian respondents believe that these commitments must be universal, covering all types of energy projects. This includes captive power plants—industrial-grade energy facilities that operate outside the national grid (PLN), such as those powering nickel and aluminum processing plants. Notably, the majority of respondents rejected the notion that nickel, a key raw material for electric vehicle batteries, is a “green” commodity if its production is still powered by coal.
Maheandiran emphasized the urgency of the situation, stating, “Banks in Indonesia, Malaysia, and Singapore must realize that financing coal projects poses serious risks to the climate, the economy, and the trust of their customers.”
Supporting these concerns, data from the independent research firm Earthwise indicates that 94 percent of electricity used for nickel production and 77 percent for aluminum production in Indonesia are still supplied by captive coal plants. Domestic banks currently dominate the financing landscape for these power facilities that supply energy to mineral smelters.
Ginanjar Ariyasuta, a campaigner for Market Forces in Indonesia, stressed that these findings should serve as a wake-up call. “This is a critical alarm, not just for the banking sector, but for the entire critical mineral industry in Indonesia. This survey should be taken seriously by banks when they determine where to allocate funds in the future,” he concluded.
Summary
A recent survey by YouGov and Market Forces across Indonesia, Malaysia, and Singapore highlights growing public pressure on banks to divest from coal financing. In Indonesia, 60 percent of respondents agreed that banks funding coal contribute significantly to climate change, with 71 percent asserting that banks should strictly refrain from financing high greenhouse gas emission projects. This intensifying climate concern is rooted in the tangible reality of environmental degradation, such as deadly heatwaves and increased flooding.
Critically, 43 percent of Indonesian respondents would consider switching banks if their current institution continues to fund coal projects, emphasizing that public trust is contingent upon a total exit from coal financing. Respondents expect banks to stop funding parent companies behind coal-fired power plants and even captive power plants, rejecting the notion of “green” commodities like nickel if their production relies on coal. This underscores a significant wake-up call for banks to address climate risks to their customers, the economy, and their own reputation.
