Indonesia Eyes Dual Membership in OECD and BRICS for Optimal Growth

Jakarta is exploring the possibility of joining both the Organization for Economic Cooperation and Development (OECD) and the BRICS alliance, a move seen as a strategic play for enhanced global economic influence. A leading economist argues that such memberships would provide Indonesia with distinct advantages, despite the challenges each affiliation presents.

Strategic Shift Under Prabowo Subianto

Under the new administration of Prabowo Subianto, Indonesia has expressed interest in joining the BRICS grouping, which originally united Brazil, Russia, India, China, and South Africa. This change comes after a period of hesitation during the presidency of Joko “Jokowi” Widodo, who prioritized getting Indonesia into the OECD, setting a lofty target for full membership by 2027.

The recent excitement surrounding Indonesia’s ambitions for BRICS membership has raised questions about its ongoing efforts towards OECD accession. Senior economist Wijayanto Samirin remarked during a virtual conference, "Indonesia joining both BRICS and the OECD is the best possible option."

The Pros and Cons of Dual Membership

The potential for dual membership in BRICS and OECD opens multiple doors for Indonesia. Currently, there are no formal regulations barring Indonesia from pursuing membership in both alliances. Notably, Brazil, a founding member of BRICS, is concurrently seeking status within the OECD.

Advantages of Joining BRICS

• Increased Influence: As a member of a nascent BRICS, Indonesia is poised to play an influential role in shaping policies and activities within the group.
• Streamlined Accession: The pathway to becoming a BRICS member is less arduous compared to the stringent evaluations required for OECD membership.

Advantages of Joining OECD

• Access to Rich Economies: Approximately 22 OECD members are also part of the European Union (EU), facilitating potential negotiations for overdue trade agreements.
• Global Standards: Membership would propel Indonesia towards higher economic and governance standards, fostering sustainable growth in the long term.

Wijayanto elaborated on the necessity of negotiations, stating, "A membership in both organizations is possible… but Jakarta will have to engage in some intense negotiations."

Navigating Diplomatic Waters

However, the desire to join BRICS may complicate Indonesia’s relations with the United States, which views China—one of BRICS’s largest members—as a rival. The Indonesian government will need to tread carefully, balancing its newfound association with BRICS while maintaining strong ties with Western nations.

A Question of Priorities

"If Indonesia has to choose one, pick the group that has an easier, faster accession process," Wijayanto suggested, emphasizing the importance of strategic positioning. The risks of remaining outside both alliances could lead to missed opportunities for economic and political influence.

The Path Ahead: From Partner to Member

In a recent development, Indonesia was named as one of BRICS’ "partner countries," placing it on a pathway toward full membership. This designation allows Indonesia to participate in some BRICS activities but does not guarantee immediate accession.

The typical candidate for OECD membership undergoes years of rigorous policy evaluations, a process Indonesia officially entered earlier this year. Thus, the timeframe for BRICS-related membership remains uncertain.

Implications for Indonesia’s Future

This strategic shift reflects an adaptable Indonesian diplomatic posture, eager to engage with diverse global platforms. The balance of pursuing memberships in both BRICS and OECD could be pivotal in elevating Indonesia’s status on the global stage.

In conclusion, the decisions facing Indonesia’s government resonate deeply within both the domestic and international arenas, shaping economic policy and international relations in the coming decade.

Readers are encouraged to share their thoughts on Indonesia’s potential memberships in BRICS and OECD in the comments section below. How do you envision these alliances influencing Indonesia’s role in global affairs?

For further reading on related economic topics, visit our articles on Indonesia’s Economic Growth Strategies and The Role of BRICS in Global Economy.

Image Credit:

<Foreign Affairs Minister Sugiono, who dons a peci or black cap at the back, attends the BRICS Plus Summit in Kazan, Russia, on Oct. 24, 2024. (Photo Courtesy of Foreign Affairs Ministry)>