Will Indonesia’s BRICS Bank Membership Raise Debt Concerns?
- Indonesia has received the green light to contribute paid-in capital to the New Development Bank (NDB), formerly known as the BRICS Development Bank.
- The New Development Bank (NDB) was established in 2015 by the BRICS nations - Brazil, Russia, India, China, and South Africa - to serve as an alternative to...
- The bank focuses on infrastructure and enduring development projects in BRICS countries and other emerging economies.
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Indonesia Gains Approval to Invest in New Development bank (NDB)
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Indonesia has received the green light to contribute paid-in capital to the New Development Bank (NDB), formerly known as the BRICS Development Bank. The investment requires an undisclosed sum, payable in installments, to acquire shares in the institution.
Updated October 15, 2025, 11:09:32 AM PST
What is the New Development Bank?
The New Development Bank (NDB) was established in 2015 by the BRICS nations – Brazil, Russia, India, China, and South Africa – to serve as an alternative to the World Bank and International Monetary Fund. Its initial authorized capital was $100 billion, with an initial subscribed capital of $50 billion. Learn more about the NDBS mission and structure.
The bank focuses on infrastructure and enduring development projects in BRICS countries and other emerging economies. It aims to mobilize resources for projects that are tough to finance through traditional channels.
Indonesia’s Investment and Approval Process
Joining the NDB requires member states to purchase shares with a capital contribution. According to reports, Indonesia’s contribution will be made in seven installments. The exact amount of Indonesia’s investment remains undisclosed.
Chief Economic Minister Airlangga Hartarto announced last week that Indonesia had received approval to “pay the paid-in capital.” He indicated that calculations were underway to determine the final sum, as reported by the Jakarta Globe.
Why This Matters: Indonesia’s Role and Regional Impact
Indonesia’s participation in the NDB signifies its growing economic influence in the region and its commitment to multilateral cooperation. The NDB provides Indonesia with access to new funding sources for infrastructure development, which is crucial for supporting its economic growth.
indonesia’s investment also strengthens the NDB’s financial base, enabling it to expand its operations and support more projects in emerging economies. This aligns with Indonesia’s broader foreign policy goals of promoting regional stability and prosperity.
Timeline of Key Events
| Date | Event |
|---|---|
| 2015 | New Development Bank (NDB) established by BRICS nations. |
| [Date of Indonesia’s request – *to be researched and added*] | Indonesia applies for NDB membership. |
| [Date of Indonesia’s membership approval – *to be researched and added*] | Indonesia’s membership in the NDB is approved. |
| October 2025 (last week) | Chief Economic Minister Airlangga Hartarto announces approval to pay Indonesia’s paid-in capital. |