This report has been replaced with an updated version. See the new Banking Climate Failure report here.

Status: Financial close/First disbursement made November 14, 2017.

Update November 2019: The company building Cirebon 2 – Korean Hyundai Engineering and Construction – stands accused of bribery and corruption. On  15 November 2019, the Indonesian Corruption Eradication Commission (KPK) announced Hyundai’s general manager as a suspect in bribery of the former regent of Cirebon.

According to KPK, the former regent received 6 billion rupiah (approx US$423,000) to give the project the go-ahead.  PT. Cirebon Energi Prasarana (CEPR), the project sponsor, is also implicated in these corruption allegations. KPK has imposed a six-month travel ban on both the CEO and CEPR’s director. If the project licensing is proven illegal, this project could be cancelled.

The original environmental permit for the plant was revoked on 19 April 2017. However the sponsors filed another permit in July, which was issued in September 2017. Bandung Legal Aid challenged that new permit and is having the legality of the verdict in this case reviewed. Loans have been disbursed despite this legal uncertainty. Visit WALHI Jawa Barat for updates on this ongoing case.

Video: alleged bribery and corruption of Korean Hyundai Engineering and Construction

Location: Central Jawa, Indonesia

Total project cost: US$2.175 billion

Debt-to-equity ratio: 80:20

(Debt: US$1.74b)
(Equity: US$435m)

PPA: 25 years (signed October 2015)

It expands upon the existing Cirebon power station and will sit alongside Cirebon 3.


Project Vehicle:

Cirebon Energi Prasarana (CEPR)

  • Marubeni Corporation (35%)
  • Samtan (20%)
  • IMECO (18.75%)
  • Korea Midland Power (10%)
  • JERA – a joint venture between Tokyo Electric Power and Chubu Electric (10%)
  • Indika Energy (6.25%)
  • Black & Veatch
  • Financial: ING
  • Legal:
    • Latham & Watkins
    • Milbank Tweed Hadley & McCloy
    • Ali Budiardjo Nugroho Reksodiputro (ABNR)

Export Credit Agencies (ECAs) [66% of project debt / US$1.148b]

  • Japan Bank for International Cooperation (JBIC): $730.8m
  • Export–Import Bank of Korea (Kexim): $417.6m

Banks [34% of project debt / US$592m] – Debt covered by NEXI ($487.2m) and KEXIM ($104.4m)

  • Bank of Tokyo-Mitsubishi UFJ: $155.68m
  • Mizuho Bank: $155.68m
  • Sumitomo Mitsui Banking Corporation (SMBC): $155.68m
  • ING Bank: $124.55m
  • Nippon Export and Investment Insurance (NEXI)


Information updated: 22 November 2019

In addition to the references noted above, Market Forces also considers information from financial journals, companies’ public disclosures, and news reports.