- Indonesia has committed $1 billion to the New Development Bank as a new BRICS member.
- The funding supports sustainable projects and reinforces global South financial infrastructure.
- This move aligns with efforts to reduce dependency on the U.S. dollar among BRICS nations.
- Indonesia’s contribution aids 77 national projects including infrastructure and energy transition.
- The New Development Bank remains mainly controlled by founding BRICS members holding 94% of shares.
Indonesia announced a $1 billion allocation to the New Development Bank during a national leadership meeting in Jakarta on December 1, 2025. This investment marks a major step for Southeast Asia’s largest economy as it expands its relationship with the BRICS bloc after formally joining in January 2025. The contribution aims to back sustainable development projects across BRICS countries and demonstrate Indonesia’s commitment to cooperation among developing nations.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that “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.” The participation positions Indonesia to take an active role in shaping the bank’s development funding.
The New Development Bank, with authorized capital of $100 billion, is primarily controlled by its five founding members—Brazil, Russia, India, China, and South Africa—who collectively hold 94% of subscribed shares. As of now, the bank has financed approximately $39 billion across 120 projects in areas such as transport infrastructure, clean energy, and sustainability. Additional members include Bangladesh, the United Arab Emirates, Egypt, and Algeria.
NDB President Dilma Rousseff highlighted Indonesia’s importance, saying “Indonesia is an important country in the region and worldwide.” She also praised Indonesia’s achievements in biofuels, noting a 40% success rate in biodiesel production.
The BRICS bloc is actively working to reduce reliance on the U.S. dollar by promoting trade payments in local currencies and developing alternative payment systems. While nations like China and Russia conduct much of their bilateral trade in yuan and rubles, the dollar remains dominant in global financial markets, accounting for roughly 90% of foreign exchange trades and nearly 48% of SWIFT payments in 2024.
Indonesia’s involvement in the New Development Bank supports its economic diversification strategy. The $1 billion allocation offers funding access without the policy constraints typically imposed by Western-led institutions like the IMF. This contribution will help finance 77 national strategic projects, including infrastructure development, digital connectivity improvements, and energy transition initiatives.
Despite challenges such as the ongoing dominance of the U.S. dollar and differing member interests, Indonesia’s integration into the BRICS financial framework signals growing commitment among developing countries to pursue more balanced global financial systems.
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