Jakarta, Nov 29 (Antara) - The Ministry of Finance confirmed here on Saturday that Indonesia will participate in the Asia Infrastructure Investment Bank begun by China, after participation was postponed during the transition period to the new government.

The ministrys head of communication and information service, Yudi Pramadi, said in a statement that a memorandum of understanding had been signed by finance minister Bambang Brodjonegoro before the Chinese ambassador and several officials of the ministries of finance and foreign affairs.

By signing the memorandum, Indonesia, along with 21 other countries, will begin preparations for the AIIB operation, including drawing up articles of agreement and providing technical support in the negotiation process for the regulation.

For Indonesia, the establishment of AIIB is important as it will be useful to accelerate the development of the countrys infrastructure covering energy, transportation, agricultural development, telecommunications and rural infrastructure, sanitation and clean water, environmental protection, logistics and urban sectors, as well as other productive sectors.

The MOU for the establishment of AIIB was signed on October 23-24, 2014 by 21 countries, including ten ASEAN member countries, except Indonesia, covering seven areas regarding mandates, operations, capital and participation, membership, management, the central office and other concerns.

"Indonesia did not sigh then because it was still in the process of transition to a new government. However, Indonesia attended the signing of the MOU and acted as a potential founding member, with a special flexibility provided by China," he said.

The initiative to set up AIIB was made by China during the Asia Pacific Economic Cooperation Forum (APEC) meeting in Bali in 2013, aimed at supporting connectivity, integration and overall economic improvement, as well as increasing Asian competitive power and filling the gap in infrastructure funding, which cannot be filled by other multilateral development banks.
reporting by satyagraha


Editor: Suryanto
Copyright © ANTARA 2014