Indonesia has officially become a member of the economic forum BRICS, which consists of Brazil, Russia, India, China, and South Africa.
The government of Brazil, as the chair of BRICS, made this announcement on Monday (Jan. 6), local time. Brazil congratulated Indonesia, seeing its decision to join BRICS as a strategic move with potential.
With the right strategy, Indonesia could leverage its membership to strengthen its economic position and play a more significant role on the global stage.
International Relations expert Professor Poppy Sulistyaning Winanti from UGM’s Faculty of Social and Political Sciences (Fisipol UGM) sees Indonesia’s membership in BRICS as an opportunity to strengthen its diplomatic position globally.
In recent years, this group has become an important forum for discussing strategic issues such as fair payment system reforms, the forefront of de-dollarization, and global governance reform, including in international financial institutions like the International Monetary Fund (IMF) and the World Bank.
However, Professor Winanti acknowledges that Indonesia’s decision to join BRICS is partly driven by its effort to increase its bargaining power with the Western world.
“I believe this is an attempt by Indonesia to raise its bargaining position with Western countries,” Professor Winanti said in a statement to reporters on Saturday (Jan. 11).
Moreover, this move also aims to anticipate the potential domestic impacts of President Donald Trump’s policies. Past experiences have shown the United States’ international commitments under his leadership have been unpredictable.
“The Western world, under the influence of the United States, is full of uncertainties, especially in the global context, even more so under Donald Trump’s second term,” she said.
Nevertheless, Professor Winanti still questions BRICS’ strength as an alternative global economic forum.
Although BRICS has two financial institutions, namely the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), which are recognized for their potential economic contributions, she remains skeptical about whether these institutions can replace the role of the IMF or World Bank.
“This is still a homework that needs further exploration because 80% of countries worldwide still use the dollar, and the question is whether BRICS can truly become an alternative,” she stated.
In addition to strengthening Indonesia’s international diplomacy by joining BRICS, Professor Winanti highlighted that President Prabowo Subianto’s government must also consider the potential and impact of BRICS policies on domestic changes.
“No specific conditions need to be fulfilled with other BRICS members. However, Indonesia’s accession process to the OECD and domestic economic reform efforts also need to be taken into account,” she said.
According to her, Indonesia’s commitment to joining the OECD is currently focused on improving governance to meet global standards. Even in terms of economic development and environmental management, Indonesia is aligning itself with global standards.
Author: Kezia Dwina Nathania
Editor: Gusti Grehenson
Post-editor: Afifudin Baliya
Photo: IDX Channel