According to the information made public yesterday, Indonesia received the status of a full BRICS member. Currently, this association includes India, China, Russia, South Africa, Egypt, Ethiopia, Iran and the United Arab Emirates.
Indonesia, which is the fourth most populous country in the world, has long sought to become part of this community to strengthen the influence of developing countries and defend the interests of the Global South. Brazil, which will lead BRICS this year, noted that Indonesia’s application was unanimously supported by all participating countries. According to Brazilian officials, although Indonesia received carte blanche to join as early as the 2023 summit in Johannesburg, it decided to complete the accession process after the 2024 presidential election. In October, Prabowo Subianto took office as the country’s president.
In its statement, the Brazilian government emphasized that Indonesia, like the rest of the participating countries, supports the reform of global governing structures and actively promotes the strengthening of cooperation between the states of the Global South.
The role of Indonesia in the world economy
The “Land of a Thousand Islands” is one of the largest economies in Southeast Asia thanks to its natural resources, strategic location and large domestic market. It is part of the G20 and shows constant GDP growth. The size of its population – more than 270 million people – makes the country attractive for investors. The country’s economy is based on the export of natural resources, but the government is working to diversify through the development of industry, technology and tourism.
The “archipelagic state” is rich in oil, natural gas, coal and minerals, including nickel and gold. It is one of the leading exporters of coal and liquefied natural gas. Because of the high demand for nickel for electric vehicle batteries, Indonesia has become a world leader in this field.
The country is also the world’s largest producer of palm oil. In addition, rubber, coffee, cocoa, coconuts and rice are grown here. To increase productivity, Indonesia is actively implementing modern agricultural technologies.
It is worth noting that the government promotes the development of the digital economy and innovation. The number of startups is on the rise, and Indonesia has become a fintech hub in the region. The industry is engaged in the production of electronics, automobiles, textiles and chemical products.
Due to its unique nature, culture and beaches, particularly on the island of Bali, tourism is proving to be a very profitable source of income. “Land of a Thousand Islands” develops ecotourism and expands infrastructure for international tourists.
Indonesia is an important participant in international trade thanks to its export goods. The main partners of the state are China, the USA, India, Japan and the countries of the European Union. Its export strategy is focused on raw materials, but the country is gradually shifting to exports of value-added products.
Indonesia actively cooperates in international economic associations – the Association of Southeast Asian Nations (ASEAN), the World Trade Organization (WTO) and regional trade agreements, including RCEP (Regional Comprehensive Economic Partnership).
As for the challenges facing the tropical state, they include environmental problems due to deforestation for agro-industry, income inequality and dependence on a commodity economy. However, the state is determined to diversify the economy, invest in infrastructure and develop “green” technologies, which makes it a promising player in the world economy.
How the accession of Indonesia will change the balance of power in BRICS and the position of the Global South in world politics
BRICS expansion adds more resources, capabilities and influence to the bloc. Initially, it included Brazil, Russia, India, China and South Africa, but later it was decided to attract new members, seeking to change the global rules. The bloc was joined by Egypt, Ethiopia, Iran and the UAE, each of which has its own strategic interests.
Egypt seeks to develop the Suez Canal as a key trade route. Ethiopia, which is developing dynamically, is counting on the support of infrastructure projects and strengthening its position in Africa. Iran, under sanctions, is looking for new economic partners and opportunities to develop its energy sector. The UAE, in turn, is expanding its role as a global financial center, focusing on innovation and economic diversification.
Indonesia, one of the largest economies in Asia, becoming part of BRICS, can significantly affect global economic dynamics. Thanks to its population, natural resources, including nickel and gas, and strategic location, it is able to strengthen the bloc. As a leading player in the ASEAN region, Indonesia can become a link between the BRICS and Southeast Asian states, contributing to the opening of new markets and strengthening regional cooperation.
In addition, Indonesia can strengthen the role of BRICS in the development of the “green” economy by using its resources to support environmental innovation. Her experience in international diplomacy can help in uniting the interests of the countries of the Global South. The new members – the UAE, Iran and Egypt – supplement the block with their energy resources, creating conditions for strengthening the position of BRICS in the world energy market.
Expectations from BRICS cooperation
Indonesia has great hopes for cooperation with BRICS to strengthen the economy, improve international positions and implement important projects. Thus, the “Country of a Thousand Islands” expects, thanks to BRICS, to get access to investments in the construction of roads, ports, energy facilities and the introduction of modern, in particular, “green” technologies. Indonesia is also seeking the support of the BRICS development bank for its plans to create new green cities and industrial zones.
In addition, Indonesia is keen to participate in changing global rules to make them fairer for developing countries. It wants to influence reforms in the IMF and the World Bank, as well as create new financial mechanisms that will reduce its dependence on the US dollar.
In the field of trade, Indonesia plans to increase exports of products with high added value, such as technology or energy materials. It also supports the idea of using national currencies in calculations to strengthen its economic independence.
On the political side, Indonesia sees BRICS as an opportunity to strengthen its position in the world, become an influential voice for the countries of the Global South, and contribute to the creation of a fairer multipolar world.
Reaction of the international community to BRICS expansion
The US sees this as a challenge to its influence as BRICS tries to create an alternative economic system and reduce dependence on the dollar. They are concerned that BRICS synergy could undermine their global role, but also know that the bloc’s countries have divergent interests that could make it difficult for them to cooperate.
In turn, the EU is mostly cautious about BRICS expansion. They recognize the bloc’s economic weight, but see it as a competitor. The Eurozone is worried that BRICS can influence the IMF or the World Bank, where Europe itself currently has a strong position. At the same time, some EU countries seek dialogue with BRICS to cooperate on climate and trade issues.
Japan is primarily concerned about the growth of Chinese influence in the BRICS and the likely strengthening of its position in Asia. But at the same time, Japan seeks to cooperate with individual countries of the bloc in the fields of technology and joint projects.
In general, the US, EU and Japan see BRICS expansion as a sign that developing countries are gaining strength. This forces them to engage more actively with the Global South in order to maintain their influence. They are also looking for new ways of cooperation and are preparing to update international institutions to take into account the interests of the BRICS countries.
Experts believe that the expansion of BRICS can significantly affect the world economy and politics, although their opinions differ.
From an economic point of view, the accession of countries such as Iran, the UAE and Indonesia could make BRICS an important player in global trade and finance. The use of national currencies in calculations will help reduce dependence on the dollar and strengthen the economic independence of the bloc’s members. The new members will also give the bloc access to significant resources, including energy, making it more influential in the oil and gas market.
However, some analysts point out that due to differences in economies and national interests between countries, there may be difficulties in agreeing on joint strategies. This can slow down the implementation of large initiatives.
In terms of political expansion, BRICS is seen as a way to reduce the dominance of Western powers and strengthen the role of the countries of the Global South. New members, in particular, Egypt and Ethiopia, will add weight to the bloc in international organizations, for example, in the UN. At the same time, due to disputes between individual countries, for example between China and India, there may be difficulties in achieving unity.
Experts believe that the future of BRICS depends on the ability of countries to coordinate their interests and cooperate effectively. If it succeeds, the bloc can become a powerful force that will change the global order, making it more just and multipolar.
Tetyana Viktorova
