Indonesia made historical momentum on January 6, 2025 by becoming the first and only country in Southeast Asia to become a full member of BRICS, a group of developing countries consisting of Brazil, Russia, India, China, and South Africa, as well as several other new members. This membership marks a strategic step for Indonesia in expanding its influence on the global stage and strengthening its position as the largest economy in Southeast Asia.
BRICS is a group of developing countries that have a key role in the global economy. This group has emerged as a new symbol of economic power which acts as a counterweight to the dominance of Western countries in the world economic order. It serves is an alternative to the dominance of the Western economy, and allows Indonesia to strengthen cooperation with other developing countries and strengthen its bargaining position in international forums. This membership aligns with Indonesia’s vision of itself as a leader among Global South countries fighting for fairer global governance reforms.
Indonesia currently has a better opportunity to obtain cooperation or transactions for certain commodities at more competitive prices, such as the potential purchase of Russian crude oil at more affordable prices due to the Western embargo, which could reduce the burden of national energy subsidies.
Indonesia's decision to join BRICS is certainly the implementation of a foreign policy strategy to further expand international networks, strengthen its global economic-political position, and support a more inclusive and fair world system for developing countries. BRICS consists of countries with large and developing economies. Thereafter, Indonesia has joined BRICS and expects to be able strengthen its bargaining position in global forums and expand its investment and trade opportunities.
Indonesia's economic growth is supported by several main factors, including: 1) strong and stable domestic consumption; 2) exports of key commodities such as palm oil and coal that support state revenues; 3) investment in the infrastructure and digital sectors that continues to increase, including the growth of the digital economy and e-commerce, which reached a value of more than $70 billion in 2024; 4) relatively stable fiscal and monetary policies, and efforts to diversify the economy through the development of renewable energy.
However, Indonesia currently still faces several challenges, such as fluctuations in world currency values, slowing growth in several of its regions, and the need to accelerate regulatory reforms, as well as increase private investment in national development projects.
Indonesia's interest or potential to join BRICS can be identified from the following perspectives.
First, Strengthening Diplomacy between Nation-States. BRICS is a strategic platform for developing countries to advocate for global economic reform. By becoming a member, Indonesia can push for more inclusive changes, such as a fairer distribution of voting rights in global institutions such as the IMF and the World Bank. As the third largest democracy in the world, Indonesia can provide a new perspective in BRICS as a counterweight to global economic policy; this will increase Indonesia’s international diplomatic influence.
Second, Diversification of Global Economic and Political Cooperation. Indonesia wants to reduce its dependence on traditional blocs such as Western countries (G7, IMF, etc.). Indonesia will therefore further expand its economic and diplomatic partners, gain access to alternative resources such as financing from BRICS' New Development Bank (NDB), and support a new world order that prioritises more balanced and sustainable multipolarity. BRICS provides the opportunity to connect with a market of more than 3 billion people. Indonesia's main products, such as palm oil, coal, and textiles, can reach a wider market share, and via the New Development Bank (NDB), Indonesia can access funding for strategic infrastructure projects. In addition, it can explore its potential to develop the digital technology and renewable energy sectors.
Third, Global South Development Vision Conformity. Indonesia and its BRICS partners are developing countries that share similar aspirations, such as: economic independence, sustainable development, and reforming the global financial order in order to improve fairness.
Fourth, Harmonious and Aligned Economic Potential. Indonesia has the largest economy in Southeast Asia and among the largest economies in the world (G20); it is strategically positioned as one of the main economic powers in the region and is ranked 17th in the world according to the IMF, surpassing countries such as Turkey and placing just below Spain. Its gross domestic product (GDP) has consistently grown by around 5% annually since 2022. However, in terms of growth rate, it has often been outperformed by the Philippines and Vietnam in recent years.
Indonesia's economic growth in the first quarter of 2025 reached 4.87% annually (yoy); its GDP in the first quarter of 2025 reached IDR 5,665.9 trillion at current prices and IDR 3,264.5 trillion at constant 2010 prices. It is expected that Indonesia's GDP in 2030 will be around $2.07 trillion. Various innovation efforts at adjusting economic policy have been applied so that from 2025 onwards, there will be an overall increase of around $635.77 billion. This sustainable economic growth is expected to reflect a continuous stable upward trend, and describe the gross domestic product at current prices.
Fifth, Increasing Geopolitical Influence. Indonesia has a strategic geographical position and actively implements an independent foreign policy; therefore, it is expected to be able to play a bigger role in global issues and maintain a balance of interests between the West and East.
Sixth, Access to Alternative Finance. BRICS has its own development bank, the New Development Bank (NDB), which provides infrastructure financing with more flexible terms than Western institutions and is suited to Indonesia’s national development needs.
Indonesia's strategy of joining BRICS is intended to expand international networks, strengthen its global economic-political position, and support a fairer and more inclusive multipolar world system for developing countries.
Indonesia can play a key role in driving regional economic integration through ASEAN and is a rapidly growing manufacturing hub and digital market. Forward projections from the Asian Development Bank (ADB) show that Indonesia can maintain sustainable growth of around 5% in 2025, supported by private consumption, infrastructure spending, and increasing investment.
Indonesia has officially joined BRICS as part of its strategy to expand its global influence in the international economy, build momentum, and diversify its strategic partners at present and in the future. The journey to becoming a new member is not easy, because Indonesia must be able to take advantage of opportunities, overcome risks, and still face the dynamics of global politics and economics, which are full of uncertainty but offer new possibilities within the scope of BRICS.
Indonesia's economic growth in Southeast Asia overall reflects positive overall dynamics and a relatively good level stability amidst tight competition with neighbouring countries such as the Philippines and Vietnam. Therefore, with large domestic market potential, export strength, and rapid digital transformation, Indonesia remains the main driver of economic growth in the region, although it needs to continue to adapt to global and regional challenges in order to maintain its competitiveness.
Indonesia's role in BRICS is that of a regional economic power that contributes to strengthening the position of developing countries on the global stage. Its ambition is to expand access to markets and investment, and fight for fairer and more inclusive global governance, while maintaining independence and implementing an active and free foreign policy.
Indonesia, however, should be able to navigate the complex internal dynamics of BRICS, including differences in ideology and interests between members, such as geopolitical tensions between Russia and the West and China's economic dominance. Indonesia should be wiser and more astute in understanding the international situation so that it is not easily trapped in the friction of global conflicts of interest, while remaining focused on achieving its national goals and interests.
Views expressed are of individual Members and Contributors, rather than the Club's, unless explicitly stated otherwise.