EXIM approves support for oil refinery in Indonesia despite Biden climate pledges
WASHINGTON – Today the U.S. Export-Import Bank approved almost $100 million in support for the expansion of the PT Kilang Pertamina Balikpapan Petroleum Refinery in Indonesia. This approval directly violates President Biden’s climate pledges for phasing out funding for overseas fossil fuel projects, which has been met with resistance from EXIM.
Friends of the Earth U.S. and Wahana Lingkungan Hidup Indonesia (WALHI) highlighted the following concerns with the project:
- Fires have already occurred at the project and the risk for future fires remains high.
- Oil spills have occurred at the project, resulting in negative impacts on the marine environment and local population.
- The project sponsor has failed to engage with local communities or update the Environment and Social Impact Assessment.
- Support for the project would violate President Biden’s Glasgow commitment to end overseas fossil fuel finance by the end of 2022.
Kate DeAngelis, international finance program manager at Friends of the Earth United States, said this:
This project is disastrous enough and yet continues to be a high risk of fires and spills that will harm local communities and the environment. While President Biden is putting forward policies to address climate change, he is financially backing climate disasters through the Export-Import Bank.
EXIM’s support of an oil refinery in Indonesia thumbs its nose at Biden’s pronounced need for responsible climate action, and his commitment in Glasgow to end overseas fossil fuel finance. The U.S. needs leaders who will make the right decisions for local communities and the planet.
Contact: Shaye Skiff, [email protected], 202-222-0723