Early Warning System

Regions

East Asia and Pacific

Geographic location where the impacts of the investment may be experienced.

Countries

Indonesia

Geographic location where the impacts of the investment may be experienced.

Specific Location

Cirebon, West Java Province

Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.

Financial Institutions

Asian Development Bank (ADB)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Proposed

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Borrower

PT Cirebon Electric Power

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Energy
Finance
Law and Government

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 125.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Loan Amount (USD)

$ 125.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Project Cost (USD)

$ 325.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Bank Documents

Media Documents

ADB responds to criticism of Cirebon 1 refinancing deal: Primary channel for grievance redress sits

Campaign Documents

Primary Source

Original disclosure @ ADB website

Updated in EWS Jul 1, 2025

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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the ADB, the project is the first transaction under the Asian Development Bank (ADB) Energy Transition Mechanism (ETM) and involves financing the early closure of the Cirebon-1 660- megawatt coal-fired power plant (CFPP), owned by CEP, an independent power producer in West Java Province, Indonesia, which is, in turn, owned by Marubeni Corporation, Korea Midland Power Company Limited, ST International Corporation and PT Indika Energy Terbuka. By demonstrating an independent power producer's early retirement financing-inclusive of programs that promote a just and gender-equal energy transition-the project will facilitate (i) Indonesia's design, adoption and implementation of policies and strategies for coal-to-clean transition, (ii) private investor driven efforts to reduce carbon footprint, (iii) mobilization of private sector financing for the energy transition, and (iv) contribution to carbon emission reduction.

Through a blended finance CFPP retirement facility, ADB supports the shortening of the tenor of the power purchase agreement (PPA) between CEP and PLN while maintaining net present value neutrality for the owners (i.e., ensuring that the early retirement does not result in any loss or gain for the owners in terms of the present value of dividend cash flows). At the end of the shortened PPA, the CFPP owners would be contractually obligated to permanently terminate unabated coal-fired operations and prepare a post-PPA plan to be agreed with ADB. Post-PPA plan activities would involve decommissioning or repurposing the assets in favor of low-carbon power generation.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The project E&S risks were categorized as follows:

Environment - B;
Involuntary Resettlement - C;
Indigenous Peoples - C.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

Asian Development Bank (ADB)

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by Bloomberg, PT Cirebon Electric Power is headquartered in Indonesia. The company's line of business includes the generation, transmission, and/or distribution of electric energy.

According to the ADB, PT Cirebon Electric Power is owned by Marubeni Corporation, Korea Midland Power Company Limited, ST International Corporation and PT Indika Energy Terbuka.

As stated by Bloomberg, Korea Midland Power Co., Ltd. provides electricity generation services. The Company offers electricity transmission, electricity distribution, power transformation, and other related services. Korea Midland Power provides services in South Korea.

Samtan Co., Ltd. wholesales and distributes consumer staples. The Company wholesales and distributes solid fuel and other related products. Samtan markets its products throughout South Korea.

PT Indika Energy Tbk is an energy company. The Company provides energy services, energy resources and infrastructure, primarily in the areas of coal production, engineering, procurement and construction services and power generation services.

Private Actor 1	Private Actor 1 Role	Private Actor 1 Sector	Relation	Private Actor 2	Private Actor 2 Role	Private Actor 2 Sector
Korea Midland Power Company Limited	Parent Company	Energy	owns	PT Cirebon Electric Power	Client	Energy
Marubeni Corporation	Parent Company	Industry and Trade	owns	PT Cirebon Electric Power	Client	Energy
PT Indika Energy Tbk	Parent Company	Energy	owns	PT Cirebon Electric Power	Client	Energy
ST International Corporatio	Parent Company	Industry and Trade	owns	PT Cirebon Electric Power	Client	Energy

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ADB Team Leader:

Yuichiro Yoi - Project Officer

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.