Public pressure on banks to cease funding high-emission projects is gaining significant momentum. A recent survey reveals that a growing number of Indonesians believe banks are directly contributing to climate change by continuing to finance coal mines and coal-fired power plants.
The survey, titled Banks and Coal Financing: Public Perception Survey across Indonesia, Malaysia, and Singapore, was conducted by the data analytics and market research firm YouGov in collaboration with Market Forces, a global organization dedicated to challenging financial institutions that fund environmentally destructive projects. The study engaged 4,000 respondents, comprising 2,000 participants from Indonesia, 1,000 from Malaysia, and 1,000 from Singapore.
The findings indicate that 60 percent of Indonesian respondents—roughly 1,200 people—agree that banks financing coal-related projects are major contributors to climate change. Meanwhile, 26 percent remained neutral, and only 13 percent disagreed. Furthermore, 71 percent of Indonesian respondents asserted that banks should strictly refrain from funding companies or projects that produce high levels of greenhouse gas emissions. These sentiments were consistently reflected among respondents in Malaysia and Singapore as well.
Bernadette Maheandiran, Asia Energy Finance Director at Market Forces, emphasized that the public concern across these three nations is deeply rooted in the tangible impacts of climate change. “From deadly heatwaves to more frequent flooding, storms, and landslides, the consequences are already being felt by the community,” Maheandiran stated in an official release on Tuesday (19/5).
Shifting Consumer Loyalty
A compelling discovery from the survey is that 43 percent of Indonesian respondents are considering switching to different banks if their current financial institutions do not halt funding for coal projects. Public trust appears to hinge not only on ending direct project financing but also on ceasing support for companies involved in building new coal-fired power plants.
More than half of the Indonesian respondents believe these commitments should apply to all types of energy projects, including captive power plants—independent facilities not connected to the national grid (PLN) that power nickel and aluminum industrial sites. Significantly, the majority of respondents do not view nickel—a primary component in electric vehicle batteries—as a green commodity if its production is fueled by coal.
“Banks in Indonesia, Malaysia, and Singapore must realize that financing coal projects poses serious risks to the climate, the economy, and their customers’ trust,” added Maheandiran.
Data from the independent research organization Earthwise highlights that 94 percent of electricity for nickel and 77 percent for aluminum in Indonesia is still supplied by captive coal-fired power plants. Indonesian banks continue to dominate the funding for these power plants that supply energy to mineral smelters.
“This serves as a critical alarm, not just for the banking sector but also for Indonesia’s critical mineral industry. Banks must take these survey results seriously when deciding their future investment allocations,” concluded Ginanjar Ariyasuta, a campaigner at Market Forces Indonesia.
Summary
A recent YouGov survey conducted with Market Forces reveals that 60 percent of Indonesians view banks funding coal projects as significant contributors to climate change. With 71 percent of respondents demanding an end to financing for high-emission projects, there is clear public pressure for financial institutions to align with environmental sustainability. This sentiment is driven by the visible impacts of climate change, such as flooding and extreme heatwaves, across the region.
The study highlights a major shift in consumer behavior, as 43 percent of Indonesians express a willingness to switch banks if their current institutions do not cease coal financing. Furthermore, the majority of respondents reject the notion that nickel production is environmentally friendly when powered by coal. Consequently, experts urge banks to address these concerns to maintain consumer trust and mitigate risks to both the climate and the economy.