Yokohama. Indonesia called for greater cooperation among multilateral development banks in Asia on infrastructure development to ensure inclusive growth amid fresh challenges posed by shifting policies in the West.

"I think we want the ADB [Asian Development Bank] to cooperate with other institutions, such as the AIIB [Asian Infrastructure Investment Bank] or the World Bank, so that they become more effective," Indonesian Finance Minister Sri Mulyani Indrawati said on the sidelines of ADB's 50th annual meeting in Yokohama, Japan, on Thursday (04/05).

Sri Mulyani said these multilateral institutions may need to come up with common standards in their loan procedures so that "member countries would not be burdened with administrative tasks and procedures that are different between these institutions."

"We hope the ADB becomes more responsive toward developmental needs in Asia, be it in infrastructure, health care, education or policy responses," the minister added.

Despite rapid growth in Asia over the past five decades, 330 million people in the region still live in poverty, posing challenges for governments to close the inequality gap.

In infrastructure alone, the ADB estimates that the region would need $1.7 trillion annually to develop electricity, transportation, telecommunications, water and sanitation infrastructure – a massive amount that few governments or multilateral organizations can meet single-handedly.

On a separate occasion, ADB president Takehiko Nakao said his institution and the AIIB could be allies instead of rivals in financing infrastructure projects.

"We can cooperate with the AIIB. The financing need is so large that we don't need to regard them as rivals," Nakao said at a press conference on Thursday.

Nakao echoed a remark by fellow countryman, Bank of Japan Governor Haruhiko Kuroda, who earlier this week embraced the AIIB's expansion.

Nakao said he and AIIB president Jin Liqun have met nine times over the past two years to discuss co-financing projects.

"We agreed to three projects, two last year, one this year, and we also discussed how we can use local currencies for co-financing. There are many areas in common where we can cooperate," he said.

The ADB also addressed concerns over the prospect of tighter monetary policies and rising protectionism in the United States and United Kingdom, which may clash with the open-market principles the bank has encouraged in Asia.

"The reason [countries in] Asia have been growing very fast, is because they enjoyed an open, free-trade system in the world," Nakao said.

"Protectionism is starting to harm Asia. People are worried and there is reason for concern [...] but the effects of the risk will take some time to materialize," he added.

Established in 1966, the ADB dedicates its efforts to reduce poverty in Asia and the Pacific through inclusive, environmentally sustainable economic growth and regional integration.

More than 5,000 delegates are expected to attend the ADB's 50-year anniversary meeting on May 4-7, as the Manila-based lender reflects on its journey of turning Asia from the poorest region in the world into one with the most vibrant economy.

"Is the ADB obsolete? I say no. Of course, we must change, we must expand private-sector cooperation, we must expand public-private partnerships, infrastructure etc. I'm confident that our role is very important in attracting private-sector resources," Nakao said.

 The Jakarta Globe was in Yokohama at the ADB's invitation.