Despite being the region’s largest coal producer and one of the world’s biggest users of coal power, Indonesians are more supportive of a rapid coal phaseout than people in neighbouring Singapore and Malaysia, according to new research commissioned by advocacy group Market Forces.
A survey conducted by YouGov found that 65 per cent of Indonesians believe rapidly phasing out coal power is one of the best ways to tackle climate change, compared to 61 per cent of Singaporeans and 58 per cent of Malaysians.
The findings are notable given Indonesia’s deep economic dependence on coal, which remains central to the country’s electricity system, export economy and industrial expansion plans, including energy-intensive nickel processing projects tied to the electric vehicle supply chain.
The representative survey of 4,000 people across the three Southeast Asian countries also found extremely high levels of concern about climate change overall, particularly in Indonesia, where 96 per cent of respondents said they were moderately to extremely concerned about climate change. The figure was lower, though still substantial, in Malaysia (84 per cent) and Singapore (81 per cent).
The stronger support for a coal phaseout in Indonesia may reflect the country’s increasing exposure to climate-related disasters and pollution linked to coal development, analysts said.
Indonesia has experienced worsening floods, extreme heat and air pollution in recent years, while coal power continues expanding to support minerals processing, particularly nickel but also aluminium and steel.
The poll also found Indonesians were the most likely to consider changing banks over coal financing. Some 43 per cent of Indonesian respondents said they would consider switching banks if they learned their bank still financed new coal projects, compared to 37 per cent in Malaysia and 28 per cent in Singapore.
More than seven in 10 respondents across all three countries said banks should not finance companies or projects that emit high levels of greenhouse gases.
A survey of 4,000 people found Southeast Asians are strongly against banks that contribute to climate change. Source: YouGov
The findings come amid growing scrutiny of Southeast Asian banks over continued financing for coal and other fossil fuel projects, despite many lenders announcing net-zero commitments and restrictions on coal financing.
In February, Singapore-headquartered OCBC, Southeast Asia’s second largest bank, faced a complaint over its funding of captive coal in Indonesia despite its commitment to stop funding new coal projects.
The survey suggests that public expectations may be moving faster than parts of the financial sector, particularly around captive coal plants built to power industrial facilities such as nickel and aluminium smelters.
Around two-thirds of respondents in Singapore (69 per cent) and Indonesia (66 per cent), and 59 per cent in Malaysia, said they expected bank commitments to end coal financing to include these industrial coal plants as well.
A majority of respondents also rejected the idea that nickel could be considered “green” if it is produced using coal power. This view was strongest in Indonesia, where 61 per cent said coal-powered nickel production should not qualify as green.
Indonesia has rapidly expanded nickel refining capacity over the past decade to position itself as a global EVe supply chain hub, but many smelters continue relying on captive coal plants for power.
“There’s overwhelming concern about climate change in Singapore, Malaysia and Indonesia and most people agree that rapidly ending coal mining and power will protect us from dangerous global warming,” said Bernadette Maheandiran, Asia energy finance director at Market Forces.
“Banks in Singapore, Malaysia and Indonesia must recognise that funding coal poses serious risks to the climate, the economy and threatens the loss of a third of their customers,” she added.
