Indonesia is taking a bold step in its global economic strategy by officially joining the New Development Bank (NDB). President Prabowo Subianto announced the decision after meeting with NDB President Dilma Vana Rousseff at the Merdeka Palace in Jakarta on Tuesday, March 25, 2025. So, what exactly is the NDB, and what impact does it have on Indonesia?
This move signals Indonesia’s commitment to strengthening its ties with emerging economies and multilateral financial institutions. During the meeting, discussions covered Indonesia’s development plans for the short, medium, and long term.
The two leaders also explored concrete opportunities for cooperation in key sectors. One of the most significant moments of the meeting was NDB’s formal invitation for Indonesia to become a member.
After a comprehensive assessment by the Ministry of Finance, Indonesia decided to accept the offer. “The Indonesian government has decided to join the New Development Bank and will comply with the procedures and requirements set for us,” President Prabowo stated.
Understanding the NDB
The New Development Bank (NDB) is an international financial institution that funds development projects and offers innovative financial solutions aimed at creating a more inclusive and sustainable global economy. Established by Brazil, Russia, India, China, and South Africa (BRICS), NDB plays a crucial role in mobilizing financial resources for infrastructure and sustainable development in emerging markets.
According to its official mission, the bank works closely with member countries and stakeholders to accelerate economic growth, enhance environmental sustainability, and promote social development. By leveraging financial capital, NDB aims to improve the quality of life in its member nations while fostering long-term economic resilience.
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Although initially founded by the five BRICS nations, NDB has expanded its reach as a global multilateral institution. In 2021, the bank’s Board of Governors approved the inclusion of Bangladesh, the United Arab Emirates, Egypt, and Uruguay as new members.
What NDB Means for Indonesia
Indonesia’s membership in NDB opens up new opportunities for infrastructure financing and economic collaboration with other developing nations. The partnership is expected to bring fresh investments and enhance Indonesia’s ability to execute large-scale projects that support long-term growth.
By joining NDB, Indonesia aligns itself with a financial institution that prioritizes development goals tailored to the needs of emerging economies. This decision reflects the country’s commitment to fostering economic resilience and strengthening its presence in the global financial landscape.
