IRIA News

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Indonesia has officially joined the BRICS bloc as the tenth full member state. The announcement was made by Brazil, the current chair of BRICS, on January 7, 2025, and was welcomed by Indonesia the following day.

This move marks a new chapter in Indonesia’s engagement with global multilateral platforms, aligning it more closely with other developing nations to address shared economic and political challenges.

The Indonesian Ministry of Foreign Affairs described the decision as “a strategic step to improve collaborations and cooperation with other developing nations, based on equality, mutual respect, and sustainable development.” The ministry also expressed gratitude to Russia, the 2024 BRICS chair, for supporting Indonesia’s inclusion in the group.

Expansion of BRICS

BRICS, originally formed in 2009 by Brazil, Russia, India, and China, expanded in 2010 with the inclusion of South Africa. In recent years, the bloc has been positioning itself as a counterweight to Western-dominated global institutions.

In 2023, BRICS added Iran, Egypt, Ethiopia, and the United Arab Emirates to its roster, further diversifying its membership and broadening its global reach. Saudi Arabia has also been invited to join the organization, however, the decision is yet to be made.

Indonesia’s inclusion adds significant weight to the group, given its status as Southeast Asia’s largest economy and the world’s fourth most populous nation. As a founding member of ASEAN and a key player in the Indo-Pacific, Indonesia brings strategic value to BRICS.

The move is in line with Indonesia’s broader foreign policy agenda to champion multilateralism and reform global governance structures. Brazil’s foreign ministry highlighted Indonesia’s shared commitment to these goals, stating that the nation “shares with other members the will to reform the institutions of global governance and contribute positively to cooperation within the Global South.”

Reducing dependence on the US dollar

BRICS has long called for reforms in international financial institutions like the International Monetary Fund (IMF) and the World Bank, arguing that these bodies disproportionately favor Western nations. Additionally, the bloc has been vocal about reducing dependency on the U.S. dollar in global trade, a concept referred to as “de-dollarization.”

China, a leading figure and one of the founding members of the BRICS organization, welcomed Indonesia’s entry with enthusiasm. Chinese Foreign Ministry spokesman Guo Jiakun described Indonesia as a “major developing country and an important force in the Global South” that will “make a positive contribution to the development of the BRICS mechanism.”

One of the bloc’s key initiatives under Brazil’s presidency is the exploration of alternative means of payment for trade between member nations. This aligns with the overarching goal of minimizing reliance on the US dollar, a move that some members argue could reduce the political leverage Washington holds in global markets.

However, this vision has drawn criticism and even threats from the West. U.S. President-elect Donald Trump recently warned of imposing 100 percent tariffs on BRICS nations should they replace the dollar in international trade. Despite such challenges, the bloc remains steadfast in its pursuit of economic sovereignty.

The timing of Indonesia’s decision to join BRICS is noteworthy. Although its candidacy was endorsed during the Johannesburg summit in August 2023, the formal decision came after the formation of Indonesia’s new government last year. This underscores Jakarta’s strategic intent to amplify its global influence and align with nations that advocate for a more inclusive and equitable world order.

“This achievement shows Indonesia’s increasingly active role in global issues and commitment to strengthening multilateral cooperation to create a global structure that is more inclusive and fair,” the Indonesian Foreign Ministry noted.

Path ahead

Indonesia’s entry into BRICS is likely to pave the way for deeper cooperation between Southeast Asia and the bloc. The development also raises the possibility of further expansion, as countries like Turkey, Azerbaijan, and Malaysia have formally applied for membership.

With Indonesia’s inclusion, BRICS not only gains a dynamic new member but also reaffirms its relevance as a platform for fostering South-South cooperation. As the group continues to grow, it is poised to play an increasingly influential role in shaping the global economic and political landscape.

For Indonesia, this marks a significant step toward solidifying its position as a key player in the Global South. For BRICS, it is another milestone in its evolution as a counterbalance to Western dominance, offering a vision of global governance rooted in inclusivity and mutual respect.