Indonesia to join the New Development Bank of BRICS
International Organisations
5 min read
Indonesia has agreed to join the New Development Bank established by the BRICS group. When Indonesia joins the New Development Bank, it will become the 9th country to become a member of the New Development Bank.
The decision to join the New Development Bank was announced by the Indonesian President Prabowo Subianto during his meeting with the New Development Bank’s President Dilma Vana Rousseff on 25th March 2025.
The decision of Indonesia to join the New Development Bank follows its full membership of BRICS on 6 January 2025.
Indonesia is the 10th member country of BRICS and the first from Southeast Asia.
About BRICS
The BRICS is an intergovernmental organisation that was set up by Brazil, Russia, India, and China.
The Term BRIC (Brazil, Russia, India, and China) was coined by the British economist Jim O'Neill in 2001. In a research report, he forecasted that these countries' economic growth would outperform the world in the coming decade.
With the joining of South Africa in 2010, the name of the Group was changed to BRICS from BRIC.
On 1st January 2024, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates joined BRICS.
However, later, Saudi Arabia said that it is still considering the proposal to join BRICS.
Indonesia is the latest country to join BRICS, taking its total membership to 10.
Members - 10 countries: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Indonesia, and the United Arab Emirates.
The 16th BRICS summit meeting was held in Kazan, Russia, in October 2024.
Brazil will host the 17th Summit meeting of the BRICS leaders in 2025.
New Development Bank (NDB)
During the 6th BRICS Summit meeting held in Fortaleza, Brazil, in 2014, a decision was taken by the BRICS leaders to set up a multilateral development bank.
In 2015, the BRICS bank was established, which was later renamed as the New Development Bank.
Function
- To provide loans to develop infrastructure and sustainable development projects in emerging markets and developing countries.
Authorized Capital of Bank: USD 100 billion
Members:
The membership of the National Development Bank is open to all members of the United Nations.
The founding members of the Banks are Brazil, Russia, India, China, and South Africa.
New members- Bangladesh, the United Arab Emirates, and Egypt.
Total - Eight- Brazil, Russia, India, China, South Africa, Bangladesh, the United Arab Emirates, and Egypt.
Indonesia is yet to join the bank.
Headquarters and Regional offices
- Headquarters: Shanghai, China
Regional Offices of the Bank :
- Indian Regional Office- Gujarat International Finance Tec-City (GIFT City) in 2022.
- Africa Regional Center- Johannesburg, South Africa, in 2017.
- Americas Regional Office- São Paulo, Brazil, in 2019
- Eurasian Regional Centre-Moscow, Russia, in 2020.
President: Dilma Roussef of Brazil
5 MoUs signed between India & Indonesia during President Subianto's visit
