On Monday, January 6, Brazil officially announced Indonesia's inclusion as a full member of BRICS, an influential economic bloc that consists of Brazil, Russia, India, China, and South Africa.
This milestone underscores Indonesia's intent to elevate its status on the global economic stage, embracing new opportunities to strengthen its role in international trade and diplomacy.
Indonesia's Journey to BRICS Membership
The decision for Indonesia to join BRICS was not made overnight. It followed months of rigorous analysis and evaluation conducted by the Indonesian Ministry of Foreign Affairs. This step aligns with Indonesia’s broader vision to expand its participation in global economic forums, ensuring its policies and strategies align with international trends.
BRICS, representing nearly half of the world’s population and over a quarter of the global economy, has grown in prominence as a powerful coalition. For Indonesia, the bloc offers more than just membership—it presents a platform to engage in cooperative policies aimed at reshaping global economic governance.
By focusing on reducing dependency on the US dollar and promoting trade through local currencies, BRICS also positions itself as a viable alternative to conventional financial institutions like the International Monetary Fund and World Bank.
Read also: Indonesia Joins BRICS: A New Era of Global Collaboration
Unlocking Economic Opportunities
Indonesia’s entry into BRICS heralds a new chapter of economic prospects. BRICS nations collectively contribute 28% of the world’s economic output, with intra-BRICS trade showing a remarkable 56% growth from 2017 to 2022, according to data from the United States Institute of Peace (USIP).
For Indonesia, this partnership provides an avenue to bolster exports in key sectors, including energy and agriculture. Additionally, the focus on local currency transactions within BRICS reduces Indonesia's vulnerability to fluctuations in the US dollar, creating a more stable environment for international trade.
Membership also positions Indonesia as an attractive destination for foreign investment. With its vast natural resources and growing consumer market, the country could become a vital hub for BRICS-related projects and initiatives. This diversification of economic partnerships is particularly critical as Indonesia seeks to lessen its dependence on traditional Western trade partners.
Read also: Malaysia Joins BRICS: Amplifying Its Global Voice and Expanding Market Reach
Navigating Potential Challenges
Despite the opportunities, joining BRICS brings with it a set of challenges that Indonesia must address. One significant risk lies in ensuring that the country maintains its role as a key player in the bloc and does not merely serve as a market for goods from other member states. Without a well-defined industrial strategy, Indonesia risks undermining its bargaining position in trade negotiations.
Geopolitical dynamics within BRICS also pose potential obstacles. Diverging national interests among member countries could lead to internal tensions, impacting the bloc's cohesion. Indonesia’s principle of an independent and active foreign policy will play a critical role in navigating these complexities while safeguarding its national interests.
Read also: BRICS Summit: Putin Proposes Alternative Payment Solutions to Counter Western Dominance
Insights from Experts
Experts view Indonesia’s BRICS membership as a bold and strategic move. Citing CNBC Indonesia, Mari Elka Pangestu, Deputy Chair of the National Economic Council (DEN), emphasizes that BRICS offers a unique platform to bridge the gap between developing and developed nations, fostering greater inclusivity in global economic policymaking.
However, she also underscores the importance of strong governance to maximize the benefits of this membership. Effective collaboration between key ministries—such as the Ministry of Foreign Affairs, Ministry of Finance, and the Coordinating Ministry for Economic Affairs—will be essential in managing Indonesia’s role within BRICS, especially if financial contributions or commitments are required in the future.
Indonesia's Role in Shaping the Future of BRICS
As a newly inducted member, Indonesia has the opportunity to make a meaningful impact on the future trajectory of BRICS. With its large and youthful population, abundant natural resources, and a fast-growing economy, the country is well-positioned to contribute to the bloc’s initiatives and play a leading role in shaping policies that promote equitable economic development.
Beyond economic benefits, BRICS membership provides Indonesia with a platform to amplify its voice on global issues, including climate change, technology, and infrastructure development. These areas align with Indonesia’s long-term goals of fostering sustainable growth and enhancing its global influence.
Read also: BRICS Adds 13 New Nation Partners, ASEAN Gains Stronger Presence with 4 Member Countries
Balancing Opportunities with Challenges
While the road ahead presents challenges, the potential rewards far outweigh the risks. By leveraging the benefits of BRICS membership, Indonesia can further solidify its status as a regional economic powerhouse and expand its influence on the global stage.
A thoughtful approach, coupled with sound governance and strategic policies, will ensure that Indonesia not only maximizes the opportunities offered by BRICS but also addresses the challenges effectively. In doing so, the country can contribute to a more balanced and inclusive global economic order while securing its position as a key player in international relations.
Source:
- Emir Yanwardhana, Mari Elka Beberkan Sederet Keuntungan RI Gabung BRICS, CNBC Indonesia, 09 Jauary 2025, https://www.cnbcindonesia.com/news/20250108073324-4-601501/mari-elka-beberkan-sederet-keuntungan-ri-gabung-brics
- Andre Kurniawan Kristi, Resmi Gabung, Ini Tujuan Utama BRICS dan Manfaatnya Bagi Indonesia, Liputan 6, 09 January 2025, https://www.liputan6.com/hot/read/5868501/resmi-gabung-ini-tujuan-utama-brics-dan-manfaatnya-bagi-indonesia?page=6
