By : Agus *)
Indonesia with 56 founding countries of Asia Infrastructure Investment Bank (AIIB) which led by China signed the articles of association regarding the establishment of new institutions, in the Great Hall of the People, Beijing.
Indonesian delegations led by Finance Minister, Bambang Brodjonegoro and he said that the Indonesian government has set aside Rp 3 trillion to establish participation in AIIB.
Bambang added that, in addition to participation in the state budget allocated, Indonesia is also ready to invite some other countries to join into the system in order to have a bargaining position voting rights.
Indonesia considers AIIB is important because it is useful in accelerating the development of infrastructure in the country which include energy, transport, telecommunications agricultural development and rural infrastructure, water and sanitation, environmental protection, logistics and other productive sectors, he said further.
On the another hand The US has questioned the governance standards at the new institution, which it sees as spreading Chinese “soft power”, and tried to persuade others to stay away. Instead of staying away from Chinese, The UK, Germany, Australia and South Korea are among the founding members. Japan and the US, which oppose the AIIB, are the most prominent countries not to join.
AIIB set up in Beijing to support the connectivity, integration, improvement of competitiveness and the overall economy of Asia, and to close gaps in infrastructure funding that has not met the other multilateral development banks.
Delegates from 50 countries signed articles that determine each member’s share and the bank’s initial capital.
The UK, Germany, Australia and South Korea are among the founding members.
Japan and the US, which oppose the AIIB, are the most prominent countries not to join.
The US has questioned the governance standards at the new institution, which it sees as spreading Chinese “soft power”, and tried to persuade others to stay away.
The AIIB, which was created in October by 21 countries, led by China, will fund Asian energy, transport and infrastructure projects.
According to the document, China provides almost 30 billion dollars from a total of 100 billion dollars for this new bank, so it has 25 to 30 percent of the vote.
*) The Author is Brunei Darussalam Contributor