Indonesia Signs AIIB Establishment

Antara    •    29 Juni 2015 17:09 WIB
banking
Indonesia Signs AIIB Establishment
Financial Minister Bambang Brodjonegoro. Reuters / Darren

Metrotvnews.com, Beijing: Indonesia along with 56 founding countries of Asian Infrastructure Investment Bank (AIIB) led by China, signed the articles on the association off new foundation's establishment at the Great Hall of the People, Beijing, Monday (6/29/2015).

The signing was conducted by Financial Minister Bambang Brodjonegoro, as earlier in different occasion, he said that Indonesia has prepared Rp3 trillion to establish the country's participation in AIIB.

He added that aside from allocating the participation fund in the State Budget, Indonesia is also prepared to invite several other nations to join the system, in order to secure voting rights position within the multilateral foundation joined by 57 countries.

"We have invited three or four countries, but the majority is ASEAN. Aside from ASEAN, there is also Maldives," Minister Bambang said.

AIIB is established in Beijing to support the connectivity, integration, thorough economy developments and enhancing Asia's competitive power. It is also to cover the gap within the infrastructure fundings, which have not yet fulfilled by other multilateral development banks. 

Indonesia considers AIIB important as it is beneficial to accelerate the development of interior infrastructure sector, covering energy, transportation, telecommunication, agricultural developments and village infrastructures, sanitation and clean water, environmental protection, logistics and other productive sectors.

Australia became the first country singing the document at the Great Hall of the People in Beijing. The bank which will be the biggest competitor of the World Bank will possess millions of US Dollars to be lent to member countries, as it is estimated to be operational within this year.

The bank is considered to serve the same function of the World Bank, as well as the American and Japanese led Asian Development Bank, refusing to join AIIB. AFP news agency wrote that Washington even tried to lure its allies not to join, instead European countries such as Britain, France and Germany also signed the establishment of AIIB, to strengthen their relation with China, which is the second largest economic power in the world.

China has a special privilege since it is the largest shareholder, making it owns veto power within the new regional bank, wrote Wall Street Journal at the beginning of June. According to their document, China provides almost USD30 billion from the total of USD100 billion for the new bank, earning them 25 to 30 percent of votes. The supporters of the bank, from Australia to Vietnam, had dismissed the concern of Chinese influence, which they mentioned as exaggerated.


(WIL)

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