Indonesia Should Join Asian Infrastructure Bank

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  • TEMPO.CO, Jakarta – The Indonesian Chamber of Commerce and Industry (Kadin) hopes the country could soon join the Asian Infrastructure Investment Bank (AIIB), an institution initiated by China. Kadin chief Suryo Bambang Sulisto says he urges the government to make use of the AIIB to obtain infrastructure funding.

    "The constraints faced by the government in infrastructure development are mostly about funding; due to limited allocation in the State Budget," Suryo said at the opening of the Indonesia Infrastructure Week 2014 in Jakarta, yesterday.

    Finance Minister Bambang P.S. Brodjonegoro earlier said the government would soon decide to join AIIB. Reuters reported on Tuesday that President Joko Widodo will announce Indonesia's participation in AIIB during his meeting with China's president Xi Jinping on the sidelines of the APEC summit next week.

    The Asian infrastructure bank was launched in Beijing last week with an initial capital of US$50 billion. The launch was attended by representatives from 21 Asian countries. Some said that the AIIB was established to rival the roles of the World Bank and the Asian Development Bank, whose policies are dominated by Western countries.

    Bambang said Indonesia did not send an official to attend the AIIB launch because the time coincided with the government transition.