Indonesia Considers Joining BRICS New Development Bank to Boost Sustainable Development Financing

Jakarta - Economist Arif Budimanta suggests Indonesia could benefit from joining the New Development Bank (NDB), owned by the BRICS nations. With a capital of $100 billion, the NDB aims to support sustainable development and infrastructure financing, particularly in developing nations. Founded by Brazil, Russia, India, China, and South Africa, the BRICS nations hold a majority stake in the NDB, ensuring they control at least 55% of the shares. Budimanta noted that developing countries require substantial development financing and will continue to seek alternatives from multilateral institutions like the World Bank and the Asian Development Bank. Joining the NDB would entail obligations such as capital contributions and membership fees. Indonesia should also consider the voting mechanism within the NDB, even though member states do not have veto power. Budimanta emphasized that Indonesia should align its plans to join the NDB with a pipeline of sustainable development projects to propose to the bank. He also highlighted the importance of carefully examining the financing schemes offered, including interest rates, loan terms, currency, and other project-related costs.