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Jakarta Post

Big banks support firms linked to deforestation

  • The Jakarta Post

Jakarta   /   Wed, September 21 2016   /  07:25 am

The link between the world of finance and the destruction of forests has become clearer with a recent study finding that global banks, including three large banks in Indonesia, have been financially supporting forest-risk companies.

The study titled “Forest & Finance” revealed that financial institutions provided more than US$38 billion worth of commercial loans and underwriting facilities to 50 companies implicated in deforestation in the Asia-Pacific region, in the period between 2010 and 2015.

The banks provided loans and underwriting facilities to companies through their production and primary processing operations in four sectors: palm oil, pulp and paper, rubber and tropical timber.

The report was drawn up by the community group TuK Indonesia, California-based Rainforest Action Network (RAN) and Dutch consultancy Profundo. “This study aims to provide ...