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Indonesia Joins BRICS: A New Era for Global Economic Alliances

Indonesia Joins BRICS: A New Era for Global Economic Alliances

EthnewsEthnews2025/01/08 11:44
By:By Bhushan AkolkarEdited by AnnJoy Makena
  • Indonesia, Southeast Asia’s largest economy, officially joined BRICS in January 2025, becoming the tenth member of the influential bloc.
  • This move highlights BRICS’ growing influence, representing over 51% of the global population and 40% of global GDP.

In a significant development for global economic governance, Indonesia officially joined the BRICS bloc (Brazil, Russia, India, China, South Africa) on January 1, 2025.

With this strategic move, Indonesia becomes the tenth member of a coalition that already includes emerging powers such as Iran, Egypt, Ethiopia, and the UAE. The addition of Indonesia strengthens BRICS ‘ collective economic clout and underscores its growing ambition to provide an alternative to traditionally Western-dominated institutions.

This historic integration was announced by Brazil, which currently holds the rotating presidency of BRICS. Indonesia’s membership follows its successful candidacy approval at the 2023 BRICS summit in Johannesburg.

According to Indonesia’s Ministry of Foreign Affairs, the country’s inclusion reflects its “active global role” and commitment to fostering a

“more inclusive and equitable global structure.”

Strategic Goals and Economic Significance

The inclusion of Indonesia, Southeast Asia’s largest economy, aligns with BRICS’ overarching objective to enhance collaboration among countries of the Global South. Jakarta’s entry is seen as a calculated step towards strengthening multilateral ties focused on sustainability, equity, and mutual respect among member nations.

Indonesia brings substantial economic and financial expertise to the table. Positioned as a critical hub in the Indo-Pacific region, the country is poised to play a pivotal role in one of BRICS ‘ key initiatives—developing alternative payment mechanisms to reduce reliance on the US dollar for trade among member nations.

This agenda, heavily discussed during the 2024 Kazan summit in Russia, is aimed at enhancing financial sovereignty among BRICS countries.

Brazil, under its current leadership of the bloc, has prioritized reforms of global financial institutions and boosting South-South cooperation. Indonesia’s membership aligns seamlessly with these priorities, further solidifying BRICS’ ability to shape global economic policy.

What’s Next for BRICS?

The upcoming BRICS summit, scheduled for July 2025 in Rio de Janeiro, will serve as a critical platform for Indonesia to integrate fully into the group’s ambitious discussions. Topics are expected to include furthering sustainable development, implementing alternative trade mechanisms, and enhancing the group’s geopolitical influence.

By joining BRICS , Indonesia not only elevates its position on the global stage but also contributes to the bloc’s mission of creating a credible counterweight to the economic dominance of Western-led institutions.

The inclusion of such a dynamic economy marks a transformative chapter in the evolution of BRICS, reinforcing its role as a cornerstone of the emerging multipolar world order.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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