Indonesia Urges BRICS to Expand NDB Funding Access for new Members
Jakarta, Indonesia—As the BRICS alliance continues to expand, Indonesia is pushing for a critical change: allowing newcomers to access funding from the New Development Bank (NDB). The NDB, established in 2014, has so far exclusively financed projects for the original five members—Brazil, Russia, India, China, and South Africa.
Last year, BRICS welcomed Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE) into its fold. Indonesia, the tenth member, joined just last week. Though, the NDB’s funding regulations remain unchanged, prioritizing the founding members. “The NDB to this day has not made any amendments to its [financing] facilities and regulations. So its funding mainly prioritizes the [BRICS’] founding members.The money has not reached the [BRICS’] new members,” analyst Habib told the press in Jakarta.
Habib emphasized that Indonesia should advocate for amendments to ensure new members also benefit from NDB financing. “Indonesia should include these [NDB] amendments in its BRICS agenda. That is to make sure that the [BRICS] new joiners also get prioritized for the NDB financing,” he said.
Egypt has already attempted to tap into the NDB’s resources.Suez Wind Energy S.A.E requested $100 million for a 1.1-gigawatt wind farm in the Suez region, while the Cairo-based African Export-Import Bank sought $200 million for infrastructure and sustainable development projects. Though, the NDB has yet to approve these proposals.
The UAE, which joined the NDB in 2021—before formally entering BRICS—has not submitted any financing requests. Meanwhile,Bangladesh,a non-BRICS member,has also sought funding,but its proposals remain pending.In contrast, the NDB has approved significant projects for founding members. India received a $490 million loan to expand state highways in Madhya Pradesh, while China secured $150 million to acquire liquefied natural gas (LNG) carriers, boosting its LNG import capacity.
Key NDB Funding Highlights
| Country | Project | Funding Approved |
|————-|————-|———————-|
| India | State highway expansion | $490 million |
| China | LNG carrier acquisition | $150 million |
| Egypt | Wind farm & infrastructure | Pending |
| Bangladesh | Various projects | pending |
Indonesia’s push for NDB reforms could reshape the alliance’s financial landscape, ensuring equitable access for all members.As BRICS continues to grow, the NDB’s role in fostering sustainable development and infrastructure projects remains pivotal.
Will the NDB adapt to the changing dynamics of BRICS? Only time will tell.
Indonesia Pushes for NDB Funding Reforms: A Conversation with BRICS Expert Dr. Amina Rahman
As Indonesia joins BRICS and advocates for equitable access to the New Development Bank (NDB), we sit down with dr. Amina Rahman, a leading expert on international finance and BRICS dynamics, to discuss the implications of these reforms and the future of the alliance.
Interview with Dr. Amina Rahman
Senior Editor,world Today News: Dr.Rahman, thank you for joining us. Indonesia recently joined BRICS and is pushing for reforms to allow new members access to NDB funding.Why is this such a critical issue for the alliance?
Dr. Amina Rahman: Thank you for having me. This is a pivotal moment for BRICS. The NDB was established to provide an option to customary Western-dominated financial institutions like the World Bank and IMF. However, its current funding structure prioritizes the founding members—Brazil, Russia, India, China, and South Africa. With the recent expansion of BRICS to include countries like Egypt, Ethiopia, Iran, the UAE, and now Indonesia, there’s a growing need to ensure that the NDB’s resources are accessible to all members. Without this, the alliance risks creating a two-tier system, which could undermine its unity and long-term goals.
Senior Editor: Indonesia’s push for reforms seems timely, especially as new members like Egypt have already submitted funding requests. why do you think the NDB has been slow to adapt to these changes?
dr. Rahman: the NDB’s cautious approach likely stems from its desire to maintain financial stability and ensure that its founding members continue to benefit from its resources. However, this hesitancy could backfire. For example, Egypt’s request for $100 million for a wind farm and $200 million for infrastructure projects remains pending, while founding members like India and China have secured meaningful funding. This disparity sends a message that new members are secondary, which could discourage further engagement and investment in the alliance.
Senior Editor: Do you think Indonesia’s advocacy will succeed in bringing about these reforms?
Dr. Rahman: Indonesia’s role is crucial. As one of the largest economies in Southeast Asia and now a BRICS member, it has significant influence. If Indonesia can rally support from other new members and even some founding members, there’s a strong chance that the NDB will revise its policies. However, this will require diplomatic finesse and a clear demonstration of how equitable funding can strengthen the alliance as a whole.
Senior Editor: What about non-BRICS members like Bangladesh, which have also sought NDB funding? Should the bank consider expanding its reach beyond the alliance?
Dr. Rahman: That’s an interesting question. while the NDB’s primary mandate is to serve BRICS members,there’s a strong case for extending its reach to other developing nations. Bangladesh, as a notable example, has significant infrastructure and development needs that align with the NDB’s goals.Though, any expansion beyond BRICS would need to be carefully managed to avoid diluting the bank’s resources or alienating its core members.
Senior Editor: what do you see as the future of BRICS and the NDB in the next five years?
Dr. Rahman: BRICS is at a crossroads. Its expansion signals growing influence, but it also brings challenges, particularly in terms of governance and resource allocation. The NDB must adapt to these changes by becoming more inclusive and responsive to the needs of all members.If it succeeds, BRICS could emerge as a truly transformative force in global finance. If not, it risks becoming fragmented and losing its relevance. The next few years will be critical in determining which path the alliance takes.
Senior Editor: Thank you, Dr. Rahman, for your insights. It’s clear that the NDB’s role in shaping the future of BRICS cannot be overstated.
Dr. Rahman: Thank you. It’s been a pleasure discussing this important topic.
