Jakarta. Indonesia’s possible membership at the BRICS grouping will likely open up access to new sources of funding, particularly from the alliance’s New Development Bank or NDB, according to an analyst.

Indonesia recently unveiled its intentions to secure a seat at the now-enlarged BRICS, which initially brought together Brazil, Russia, India, China, and South Africa. BRICS just last week made Indonesia its “partner country”, a status that puts Jakarta on probation before it can become a full-fledged member. Ahmad Khoirul Umam, the managing director of the think-tank Paramadina Public Policy Institute, said that Indonesia could tap into NDB financing by joining BRICS. 

The NDB is a multilateral development bank established by the BRICS’ initial member states to financially support infrastructure and sustainable development projects in BRICS and developing economies through loans, guarantees, equity participation or other financial instruments.

.“Indonesia joining BRICS will diversify our sources of financing and investments. BRICS has the NDB, which can be a funding alternative for our infrastructure and development projects. The requirements [for the NDB financing] are also not as strict,” Umam told a virtual conference on Thursday.

Despite Jakarta’s lack of BRICS membership, China -- which is the alliance’s biggest economy -- is already a major investor in Indonesia. Government data showed that China invested about $5.8 billion in Indonesia in the first nine months of 2024. This made China the country’s third-largest foreign investor. The China Development Bank also largely funded the Jakarta-Bandung $7.3 billion high-speed railway. Umam said: “In terms of investments, we are already leaning towards BRICS, particularly China.”

Earlier this week, Russian Ambassador to Indonesia Sergei Tolchenov talked about the NDB loans as one of the possible economic benefits that Jakarta could enjoy as a BRICS partner country and especially as a full member. Just a few months ago, NDB inked a loan agreement worth 5 billion Rands (almost $284.5 million) with South Africa’s freight company Transnet to modernize the country’s freight rail sector.

“The NDB has put around dozens of billions of American dollars in BRICS member states. Perhaps Indonesia as a member -- or even as a partner state -- can use this NDB potential,” Tolchenov told reporters in Jakarta on Tuesday.

According to the bank’s official website, the NDB has approved $32.8 billion worth of financing so far. The money went to 96 projects. BRICS started out with the five aforementioned initial member countries, and has expanded with the addition of Iran, Egypt, Ethiopia, and the United Arab Emirates. Saudi Arabia is not yet an official BRICS member despite having already been invited to accede to the group. In 2021, Bangladesh became the first country outside of the BRICS founding members to be part of the NDB. The bank’s membership is open to UN member countries.

Newly inaugurated President Prabowo Subianto sent his Foreign Minister Sugiono to attend the recent BRICS Plus Summit in the Russian city of Kazan. It was also then that Indonesia announced its pursuit of a seat at BRICS table. In what became his first ministerial overseas trip, Sugiono met with NDB President Dilma Roussef. He even brought up Prabowo’s signature mid-day meal program during the conversation.

For reference, Prabowo seeks to provide free lunches for Indonesian students across the country. The nutritious meals are expected to help lower Indonesia’s national stunting rate, which stood at 21.5 percent as of last year. The NDB already asked Indonesia to become a member in 2022.