The Indonesian government has agreed to an initial investment of $1 billion (Rp16.65 trillion at a rate of Rp16,655 per USD) after joining the New Development Bank (NDB) (02/12). The NDB is a multilateral financial institution established by the BRICS countries, Brazil, Russia, India, China, and South Africa.

“New Development Bank and the government have agreed to provide $1 billion for investment. So, we become members and immediately participate actively in NDB preparations,” said Coordinating Minister for Economic Affairs Airlangga Hartarto on Monday.

Strengthening Cooperation with BRICS and the Global South

The investment demonstrates Indonesia’s active role in enhancing cooperation among Global South countries through BRICS, continuing the spirit of the Asia-Africa Conference. Airlangga noted that joining the NDB is expected to open new market access and strengthen collaboration with other developing nations.

Expanding Economic Diplomacy and Trade Agreements

In addition to strengthening ties with BRICS, Indonesia continues to maintain balanced economic diplomacy with Western countries and Pacific nations. The government is preparing to begin the accession process for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2026.

“Yesterday in the meeting, Indonesia’s accession for next year was approved. Uruguay already formed its team, so they joined first. Next are Indonesia, Mexico, and Peru,” Airlangga said.

Indonesia’s progress toward membership in the Organisation for Economic Co-operation and Development (OECD) also shows positive developments. Following the completion of negotiations for the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) in September 2025, support from OECD members has strengthened.

“Of 37 OECD countries, around 34 have openly supported Indonesia. The target is to become a formal member by 2027,” Airlangga stated.

PHOTO: NDB

This article was created with AI assistance.