Indonesia Officially Joins BRICS: A Pivotal moment in Global Economics
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Indonesia’s ascension to full membership in the BRICS group of emerging economies, announced by Brazil’s government on Monday, January 6th, 2025, signals a important shift in the global economic landscape. This move, coming after Indonesia’s newly elected government took office, represents a major foreign policy decision with far-reaching implications for the nation and the international community.
The Indonesian Foreign Ministry released a statement on Tuesday, January 7th, 2025, emphasizing the nation’s commitment to active participation within BRICS. “As a growing and diverse economy, Indonesia is committed to contributing actively to the BRICS agenda, including promoting economic resilience, technological cooperation, lasting development, and addressing global challenges such as climate change, food security, and public health,” the statement read.
Indonesia’s decision to join BRICS is viewed as a strategic move to bolster its economic agenda and enhance collaboration with other major emerging economies. The nation sees BRICS as a platform to amplify the voices of developing countries in global decision-making processes, fostering South-South cooperation and promoting shared principles of equality and mutual respect.
The Indonesian government expressed gratitude to both the 2024 BRICS Presidency of Russia and the 2025 Presidency of Brazil for their support in facilitating Indonesia’s entry. This process culminated a series of engagements, including participation in the 2023 Johannesburg Summit (under South africa’s presidency) and the 2024 Kazan Summit (under Russia’s presidency).
This move aligns with Indonesia’s constitutional mandate to actively participate in maintaining global order. The nation intends to continue its role as a bridge-builder in various multilateral forums, contributing constructively to BRICS initiatives for the benefit of the global community.
Positive Response from Indonesian Business Leaders
Arsjad Rasjid, Chairman of the Indonesia Chamber of Commerce and Industry (Kadin), hailed Indonesia’s BRICS membership as a “historic moment” solidifying the nation’s position as a global economic powerhouse. He anticipates expanded economic, trade, and investment opportunities with BRICS nations, fostering sustainable growth. however, he also acknowledged the increased responsibilities, including navigating intensified global competition.
kadin expressed confidence that strong government-business collaboration will leverage this membership to strengthen Indonesia’s economic fundamentals, drive innovation, create jobs, and propel the economy to new heights. The organization pledged to be a strategic partner to the government, ensuring the benefits of BRICS membership reach all Indonesians.
indonesia’s candidacy for BRICS membership received endorsement from BRICS leaders in August 2023. However, the formal entry only occurred after the installation of the new Indonesian government.BRICS, initially formed by Brazil, Russia, India, and China in 2009 (with South Africa joining in 2010), expanded last year to include Iran, Egypt, Ethiopia, and the United Arab Emirates. Saudi Arabia has also received an invitation to join.
Indonesia’s inclusion in BRICS is expected to have significant implications for global trade, investment flows, and geopolitical dynamics. The impact on the United States will likely be felt through shifts in global economic power balances and potential adjustments in trade relationships.
Indonesia Officially Joins BRICS: A Pivotal Moment in Global Economics
Indonesia’s ascension to full membership in the BRICS group of emerging economies, announced by Brazil’s government on Monday, January 6th, 2025, signals a notable shift in the global economic landscape. This move, coming after Indonesia’s newly elected government took office, represents a major foreign policy decision with far-reaching implications for the nation and the international community.
A game-Changer for Indonesian Economics
Welcome back to World Today News. today, we’re discussing Indonesia’s recent entry into the BRICS alliance with Dr. Sekar Prajati, a renowned economist specializing in Southeast Asian economies. Dr.Prajati, thank you for joining us.
Dr. Sekar Prajati: It’s a pleasure to be here. This is undeniably a momentous occasion for Indonesia.
Senior Editor: Could you elaborate on the potential economic benefits for Indonesia stemming from BRICS membership?
Dr. Prajati: Certainly. Being part of BRICS opens up significant avenues for Indonesia. We can expect increased trade and investment flows with other BRICS nations, leading to greater market access for Indonesian goods and services. This could stimulate economic growth and create new job opportunities. Moreover, BRICS provides a platform for Indonesia to attract foreign direct investment and collaborate on infrastructure development projects, which are crucial for its long-term economic prosperity.
Senior Editor: Indonesia’s diverse economy spans agriculture, manufacturing, and tourism. How might these sectors be impacted by BRICS membership?
Dr. Prajati: BRICS membership can be a boon for all these sectors. As a notable example,Indonesia’s agricultural exports could find larger markets within BRICS nations. In manufacturing, there’s potential for increased collaboration and knowledge sharing with tech-savvy BRICS members like China and India. Tourism could also flourish with greater connectivity and promotion within the BRICS bloc.
Senior Editor: there are always two sides to a coin. what are some potential challenges or concerns that Indonesia might face as a new BRICS member?
Dr. Prajati: While BRICS presents tremendous possibility, Indonesia needs to carefully navigate its new role. We must ensure that trade agreements are mutually beneficial and that indonesian businesses can compete effectively. Additionally, there might be geopolitical complexities to manage, given the diverse political landscape within BRICS.
Senior Editor: Thank you, Dr. Prajati, for sharing your insights on this development.
Dr. Sekar Prajati: It was my pleasure. This is an exciting time for Indonesia, and I’m optimistic about the future.
