Indonesia Officially Joins New Development Bank with US$1 Billion Commitment

Indonesia Commits US$1 Billion to New Development Bank

Indonesia has officially become a member of the New Development Bank (NDB), a multilateral financial institution established by the BRICS nations. The Indonesian government has committed an initial fund of US$1 billion, equivalent to approximately Rp16.6 trillion, as an investment in the bank. This significant step was confirmed by Coordinating Minister for the Economy Airlangga Hartarto on December 1, 2025, following President Prabowo Subianto's announcement of the decision to join in March 2025.

Minister Hartarto stated that Indonesia's membership in the NDB, which follows its recent entry into the BRICS intergovernmental organization, is a strategic investment. He noted, 'Indonesia's joining is also followed by joining the New Development Bank, and the government has agreed to provide US$1 billion for investment in the New Development Bank.' President Subianto had previously met with NDB President Dilma Vana Rousseff on March 25, 2025, where he conveyed Indonesia's decision to accept the NDB's invitation to join.

Strategic Alignment and Economic Benefits

President Prabowo Subianto emphasized that joining the NDB aligns with Indonesia's long-term economic and infrastructure goals, providing access to crucial funding. He stated, 'The Indonesian government has decided to join the New Development Bank and follow the procedures and requirements given to us.' The President also expressed optimism, saying, 'I think the NDB can become a strong booster to accelerate our transformation strategy.'

Indonesia's membership is expected to yield several economic advantages, including:

• Access to development funding for major infrastructure projects.
• Strengthened trade and investment links with NDB member countries.
• Support for renewable energy goals and technological advancements.
• Facilitation of knowledge exchange and technical expertise.

The Role of the New Development Bank

The NDB, formerly known as the BRICS Development Bank, was established in 2015 by its five founding members: Brazil, Russia, India, China, and South Africa. Its primary mission is to mobilize resources for infrastructure and sustainable development projects in emerging markets and developing countries.

NDB President Dilma Rousseff welcomed Indonesia's inclusion, highlighting the country's strategic importance in the region and globally. She noted that Indonesia shares the NDB's vision for supporting sustainable development and appreciated Indonesia's clear and long-term development planning, particularly its progress with biofuels.

Future Collaborations and Impact

Discussions between Indonesia and the NDB have identified several key areas for potential collaboration and funding. The NDB has expressed interest in financing projects in Indonesia, particularly in sectors such as:

• Renewable energy
• Infrastructure development, aimed at reducing logistics costs
• Waste-to-energy conversion
• Smart city development
• Transportation improvements

Indonesia's entry expands the NDB's global reach, joining other non-founding members such as Bangladesh, United Arab Emirates, Egypt, Algeria, Colombia, and Uzbekistan. This membership is anticipated to significantly contribute to Indonesia's efforts in accelerating its economic transformation and fostering sustainable growth through enhanced international partnerships.