Indonesia Joins BRICS: A Strategic Move for Developing Economies
Indonesia has officially become the 10th member of the BRICS grouping, marking a significant milestone in its global economic strategy. Unlike the OECD, which Jakarta is also pursuing, BRICS does not require its members to pay membership dues—a fact highlighted by Mari Elka Pangestu, an economic advisor to President Prabowo Subianto. This move positions Indonesia as a key player in amplifying the voices of developing economies on the global stage.
What Does BRICS Membership Mean for Indonesia?
BRICS, originally comprising Brazil, Russia, India, China, and South Africa, expanded last year to include Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE). Indonesia’s inclusion underscores its growing influence in global economic and political arenas.
“As soon as we become a member of an association, of course we should have someone in the government to take care of the budget. BRICS does not have membership dues yet,” Mari Elka told reporters at the State Palace in Jakarta. However, she acknowledged that Indonesia is prepared to allocate funds if the alliance decides to introduce membership fees in the future.
A dual Focus: BRICS and OECD
While Indonesia celebrates its BRICS membership, it continues its pursuit of joining the OECD, a club of wealthy nations known for its rigorous membership standards. The OECD’s funding model is starkly different from BRICS, with member contributions split into Part I and part II budgets. The Part I budget for 2024 stands at 229.9 million euros, with the U.S.contributing the largest share at 18.3 percent.
OECD Secretary-General Mathias cormann has encouraged Indonesia to focus on regulatory reforms rather than rushing the accession process. “He had also told Indonesia to not rush with the accession process, citing that Jakarta should focus on getting the regulatory reforms right to meet OECD’s standards,” the article notes.
The Road Ahead
Indonesia’s dual strategy of joining BRICS and pursuing OECD membership reflects its ambition to balance its role as a leader in the developing world while aligning with global economic standards. The country aims to become a full-fledged OECD member by 2027, though the process could take up to seven years.
Key Differences Between BRICS and OECD
| Aspect | BRICS | OECD |
|————————|————————————|————————————|
| Membership Dues | None currently | Required,based on economic scale |
| Focus | Developing economies | Wealthy nations |
| membership Process | Relatively rapid | Rigorous and lengthy |
| Funding Model | No fixed contributions | Part I and Part II budgets |
A Strategic Vision
Indonesia’s swift accession to BRICS—achieved in less than three months—demonstrates its proactive approach to global economic diplomacy. By leveraging BRICS as a platform,Indonesia aims to ensure that the concerns of developing economies are not overshadowed by wealthier nations.
As the country navigates this dual path, it remains committed to fostering economic growth and regulatory reforms that align with global standards. Whether through BRICS or the OECD, Indonesia is poised to play a pivotal role in shaping the future of international economic cooperation.
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