President Prabowo Subianto officially declared Indonesia's membership in the New Development Bank (NDB) during a meeting with NDB President Dilma Rousseff at Merdeka Palace, Jakarta, on March 25, 2025. This strategic move strengthens Indonesia’s cooperation with developing nations and multilateral financial institutions to boost long-term economic growth.

Strengthening Indonesia’s Development Strategy

President Prabowo emphasized that discussions with Dilma Rousseff, former President of Brazil (2011–2016), focused on Indonesia's short-, medium-, and long-term development plans. The meeting explored concrete cooperation opportunities across priority sectors, reinforcing Indonesia’s commitment to economic transformation.

Following a thorough evaluation by the Ministry of Finance, Indonesia officially accepted NDB’s invitation to join. "Indonesia has decided to become a member of the New Development Bank and will follow all required procedures," Prabowo stated. He highlighted that this membership aligns with Indonesia’s vision for accelerating infrastructure development and economic transformation.

NDB Recognizes Indonesia’s Strategic Role

NDB President Dilma Rousseff welcomed Indonesia’s decision, acknowledging the country's vital role in regional and global economic stability. She emphasized the shared vision between Indonesia and NDB in supporting sustainable development, particularly in infrastructure, logistics, digital connectivity, and energy transition. She also praised Indonesia’s 40% biodiesel adoption, calling it a remarkable achievement.

Key Considerations for Indonesia’s NDB Membership

Senior economist Arif Budimanta noted that Indonesia could leverage NDB as an alternative funding source for infrastructure projects. However, he cautioned that the government must carefully assess financial implications, including investment contributions and membership fees.

NDB’s majority ownership is held by BRICS founding members—Brazil, Russia, India, China, and South Africa—with a collective stake of no less than 55%. Despite this, Indonesia must still evaluate other financing options, including World Bank, Asian Development Bank (ADB), and Asian Infrastructure Investment Bank (AIIB).

Indonesia is required to meet investment commitments, with Minister of Economic Affairs Airlangga Hartarto confirming that contributions can be made over seven years, though the exact amount remains undisclosed. Additionally, while NDB does not grant veto rights, Indonesia must carefully analyze the voting structure and funding mechanisms, including interest rates, loan terms, and currency policies.

Maximizing NDB Membership Benefits

Arif Budimanta stressed that Indonesia’s NDB membership should be accompanied by a clear pipeline of sustainable development projects. This will ensure that Indonesia fully capitalizes on its participation in the bank, driving long-term economic growth and infrastructure development.

PHOTO: X/NDB

This article was created with AI assistance.