INDONESIA BECOMES FOUNDING MEMBER OF ASIAN INFRASTRUCTURE INVESTMENT BANK

Beijing, June 29 (Antara) - Indonesia along with 56 other founding countries of Asia Infrastructure Investment Bank (AIIB) led by China have signed articles of the establishment of new institutions, in Beijing, Monday. Indonesian Finance Minister Bambang Brodjonegoro took his place to sign the document. On a separate occasion, the minister stated that the Indonesian government has set aside Rp three trillion to strengthen its participation in the AIIB. Bambang revealed that besides allocating the participation fund in the state budget, Indonesia is also ready to invite some other countries to join the system in order to have the "voting rights," which will increase its bargaining position in the multilateral institution that has the participation of 57 countries. "We have asked three or four countries, and most of them are from the ASEAN as well as Maldives," Bambang remarked. The AIIB was formed in Beijing to support connectivity, integration, improvement of competitiveness and the overall economy of Asia. The initiative also aims to close the infrastructure funding gaps that have not been filled by other multilateral development banks. Indonesia recognizes the importance of AIIB, as it will help to accelerate the development of the infrastructure sector in the country that encompasses energy, transport, telecommunications, agricultural development and rural infrastructure, water and sanitation, environmental protection, logistics, and other productive sectors. Australia became the first country to sign the document at the Great Hall of the People in Beijing. The bank, which will be going head-to-head with the World Bank, will have billions of US dollars to lend and is expected to become operational this year. AIIB will function on a working concept similar to that followed by the World Bank and the Asian Development Bank. The United States and Japan refused to join the AIIB. According to AFP news agency, Washington even tried to persuade its allies to not join AIIB, but European countries including Britain, France, and Germany have signed the AIIB founding, as they seek to strengthen ties with China, as the second-largest economic power in the world. China has the privilege of being the largest shareholder that has the veto power in the new regional bank, according to the Wall Street Journal this month. According to the document, China provides almost US$30 billion from the total of US$100 billion for this new bank, and so, it has 25 to 30 percent of its share. The regional bank's supporters such as Australia and Vietnam have dismissed concerns about China's exaggerated influence.