In September 2025, Trend Asia and Recourse, in collaboration with Wahana Lingkungan Hidup Indonesia (WALHI / Friends of the Earth Indonesia), debtWATCH Indonesia, Friends of the Earth Japan, and the Big Shift Global coalition, released a report titled "Tangguh LNG: Big Project, Huge Risks." The report highlights the adverse environmental impacts and increased risks to the livelihoods of indigenous communities in Papua due to the expansion of the Tangguh LNG plant, which has been classified as one of the National Strategic Projects (Proyek Strategis Nasional/PSN) by President Joko Widodo since November 24, 2023.

The Tangguh LNG project, located near Bintuni Bay in West Papua, has been operational since 2009, featuring three LNG production facilities to help meet the national gas production target of 12 billion standard cubic feet per day (BSCFD). It is expected to become the largest national producer of liquefied natural gas (LNG) by 2030. The project is operated by British Petroleum Berau (BP Berau) with financial support from multilateral development banks (MDBs), including the Asian Development Bank (ADB), the International Finance Corporation (IFC), and the Asian Infrastructure Investment Bank (AIIB). Perusahaan Listrik Negara (PLN), Indonesia’s government-owned electricity generation and distribution company, is one of the primary domestic consumers of the LNG supplied by Tangguh.

In February 2025, Purnomo Yusgiantoro, the Special Advisor for the Indonesian President on energy sectors, announced that the expansion of LNG Tangguh Train 4 will be a top priority for President Prabowo Subianto among other energy projects.

The report by Trend Asia and Recourse expresses concerns regarding the LNG plant expansion, particularly about the Indonesian government's and multilateral development banks' commitments to reducing greenhouse gas emissions and transitioning to renewable energy. The expansion is expected to further increase Indonesia’s reliance on fossil fuels, hinder the transition to renewable energy sources, and exacerbate the climate crisis.

Trend Asia and Recourse also detailed the history of the Tangguh LNG Project, noting that its construction, which began in 2005, has already displaced local indigenous communities and denied them access to their traditional fishing and hunting grounds. Additionally, the project intensifies the climate crisis through its emissions and threatens Papua’s ecosystem, particularly the only remaining glacier in the Jayawijaya Mountains, located between Central Papua and Papua Pegunungan Provinces.

The construction of the Tangguh LNG Project has caused significant damage to the mangrove forests in Bintuni Bay, which are essential for maintaining coastal ecosystem functions, including oxygen production, providing habitats for diverse marine species, and protecting the area from large waves.

Trend Asia and Recourse are calling for all multilateral development banks, international banks, and funding agencies that previously supported the development of the Tangguh LNG plant to cease funding for its expansion and other fossil-fuel energy projects. They also urge these banks to strengthen their safeguards and accountability mechanisms for their investment portfolios to uphold the rights of affected communities and protect the climate.

In response to inquiries about the allegations, the ADB stated that it currently has no plans or discussions to fund further development of Tangguh LNG Train 4, and any financing would align with the bank’s Energy Policy and Paris Alignment methodology. However, the policies and strategies of the ADB, as well as those of the IFC and AIIB regarding energy and Paris Alignment methodologies, are considered insufficient to prevent these banks from financing the LNG project.

To respond to the allegations, the Business Human Rights Resource Centre invited British Petroleum (bp), PT Sarana Multi Infrastruktur, PT Indonesia Infrastructure Finance, Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), Perusahaan Listrik Negara (PLN), Bayfront Infrastructure Capital IV Pte. Ltd (Clifford Capital), DBS Bank, United Overseas Bank (UOB), Mizuho Bank, Sumitomo (SMBC), The Bank of Tokyo-Mitsubishi UFJ, HSBC, Credit Agricole Corporate and Investment Bank, Oversea-Chinese Banking Corporation, BNP Paribas, China Construction Bank, Bank of China and Deutsche Investitions- und Entwicklungsgesellschaft (DEG).

British Petroleum (bp), Mizuho Bank, Sumitomo (SMBC), The Bank of Tokyo-Mitsubishi UFJ, Credit Agricole Corporate and Investment Bank, and BNP Paribas responded. Their responses are linked below.