Indonesia to join China's infrastructure bank

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Indonesia to join China's infrastructure bank

Last week, Beijing welcomed Indonesia's decision to join the China-sponsored Asian Infrastructure Investment Bank (AIIB), which 21 other Asian countries joined as founding members.

In late October twenty-one Asian countries signed a Memorandum of Understanding (MOU) to establish the Asian Infrastructure Investment Bank (AIIB) as founding members in Beijing.

Chinese President Xi Jinping met with the representatives of the 20 other countries: Bangladesh, Brunei, Cambodia, China, India, Kazakhstan, Kuwait, Laos, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, the Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan, and Vietnam.

"China welcomes Indonesia's formal decision to join the AIIB as a founding member at an early date," Chinese Foreign Ministry spokesman Hong Lei said in a press briefing.

Hong's comments came in response to a question regarding Indonesian Finance Minister Bambang Brodjonegoro's remarks saying his country may decide to join the AIIB.

The AIIB's authorized capital is $100 billion, and the initial subscribed capital is expected to be around $50 billion, with a 20% paid-in ratio.

Founding members are expected to complete the signing and ratification of the Articles of Agreement (AOA) in 2015, and AIIB will be formally established by the end of 2015.

Japan, South Korea, Indonesia, and Australia did not join the bank, although there is an open debate in Australia and South Korea on doing so.

Brazil, Russia, India, China and South Africa (BRICS) have already joined hands to float the Brics Bank. The latter will be headquartered in Shanghai but India will have the presidency for initial five years.

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