BRICS Expansion: Indonesia Joins Growing Economic Alliance

Indonesia has officially become the first Southeast Asian nation to join BRICS as a full member on the 1st of January 2025. This decision, announced by Brazil’s rotating presidency in 2025, marks a significant shift in Indonesia’s foreign policy and reinforces its increasingly active role in shaping global geopolitics, particularly in representing the interests of the Global South. As the world’s fourth-most populous country, Indonesia’s decision to join BRICS as an official country brings the group’s membership ten, following the inclusion of Egypt, Iran, Ethiopia, and the United Arab Emirates (UAE) in 2024.

Sugiono, Indonesia's Foreign Affairs Minister, emphasised that this move is consistent with Indonesia's commitment to strengthening multilateral cooperation and promoting a more inclusive and fair global order. Indonesia is known for its long-standing free and active foreign policy, which aims to maintain neutrality while participating in various international forums. 

Former President Joko Widodo was hesitant to join the bloc, arguing that there was a need to weigh the pros and cons of membership more carefully. His successor, President Prabowo Subianto, who took to office after winning the 2024 general election, had no such reservations.  Prabowo’s administration views BRICS membership as a means to enhance Indonesia’s development opportunities, particularly in areas such as “food and energy security, poverty eradication, and human capital development,” as mentioned in a statement by Sugiono.

Indonesia’s entry into BRICS comes at a time of heightened geopolitical tensions. As a member of BRICS, Indonesia will need to strategically navigate these dynamics while maintaining its relationships with Western nations as well as its leadership role in the Association of Southeast Asian Nations (ASEAN). Some experts believe that Indonesia could serve as a "balancer" in BRICS, using its position to mediate between the global North and South.

Teuku Rezasyah, an international relations expert at Padjadjaran University, notes that Indonesia’s membership in BRICS provides it with greater influence in the global order. However, he emphasizes that Indonesia’s main goal is to seek development opportunities rather than align itself with the geopolitical agendas of Russia or China, as was mentioned by President Prabowo Subianto. This strategy is consistent with Indonesia’s non-aligned stance and its desire to maintain friendly relations with both the West and the East.

Joining BRICS also opens up new economic prospects for Indonesia. The bloc now with Indonesia account for 55% of the world’s population and 42% of global GDP with Indonesia and the inclusion of the 9 Partner countries (Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Thailand, Uganda, Uzbekistan and Nigeria). This now offers Indonesia access to vast markets and potential investment opportunities from the BRICS New Development Bank (NDB). The NDB could provide funding for critical infrastructure projects, particularly in the areas of renewable energy and technology, which are key priorities for Indonesia’s development. This is of utmost importance as the Indonesian government aims to achieve high-income status by 2045 and has set an ambitious goal of 8% GDP growth by 2028. To achieve this, Indonesia will need to boost private investment, implement fiscal stimulus, and enhance productivity through structural reforms. 

Despite these potential advantages, Indonesia's new membership in BRICS is not without its challenges. The country will need to strategically and carefully navigate its relationships with both BRICS members and Western nations to optimise the achievement of its national interest. Maintaining a delicate balance is a challenging task, especially given the ongoing defence strategies deployed by the US to combat its hegemony. 

Southeast Asia: Other Southeast Asian countries are also demonstrating an increasing interest in the region, as evidenced by Indonesia's recent decision to join the bloc officially. Malaysia and Thailand have also joined Indonesia as a partner countries. These countries see BRICS as a viable alternative to Western-dominated global institutions. 

Indonesia recognises that BRICS is not an anti-West grouping, but one that strives for multipolarity on the global stage. Indonesia, like India, maintains positive relations with Western countries and is unlikely to take sides in the geopolitical conflict between the United States and its adversaries. Instead, Indonesia's BRICS membership aims to broaden its economic and diplomatic horizons in an increasingly multipolar world. Indonesia's move may lead to more regional engagement with BRICS, which will further strengthen the bloc’s role as a counterweight to global institutions dominated by the West.

Zena Harvey: Associate at BRICS+ Consulting Group India & Southeast Asia Specialist