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Indonesia’s Potential BRICS Membership: Economic Growth & Global Influence

An Intriguing Possibility: Indonesia and BRICS Membership

Indonesia, on the precipice of a significant economic crossroad, is considering the prospect of joining BRICS, an economic alliance of five major emerging national economies: Brazil, Russia, India, China, and South Africa. This move could open new economic opportunities for the country and could significantly enhance its global influence

Why BRICS?

The BRICS alliance signifies dynamic economies and a platform for significant global engagement. Indonesia aligns with these significant players due to several key factors. Notably, it has a defined 20-year development plan, called Vision 2045, that aspires to position the country as one of the world’s top five economies. Inclusion in BRICS could help bolster this development plan by providing an additional boost to economic growth, spurring infrastructure development, and allowing for increased global engagement.

Indonesia also aligns with the broader BRICS development agenda, including a commitment to reduce reliance on the U.S. dollar in favor of diversifying payment systems. Considering BRICS controls more than 40% of the world’s oil supply and over half of the gas reserves, Indonesian energy security could also be significantly enhanced by joining the group.

Economic and Trade implications

Ties with several BRICS nations are already robust. In 2022, Indonesia’s trade with BRICS nations reached $178.6 billion. Such an alliance’s membership could further strengthen these relationships, expanding Indonesia’s economic connections globally.

However, geopolitical tensions, such as those between the US and China and Australia’s involvement, could complicate relations with Western powers. The delicate balancing act between economic interests and security concerns may present a diplomatic challenge for Indonesia.

Other Considerations and Dynamics

Navigating global politics is not easy, and while BRICS alignment offers potential benefits, it may also bring its own set of challenges. For instance, Indonesia’s pursuit of membership within the Organisation for Economic Co-operation and Development (OECD) may clash with BRICS alignment.

The decision to join BRICS is also dependent on evolving domestic and international factors, chief among them the outcome of the 2024 Presidential election and the ebb and flow of foreign policy dynamics. It is critical, therefore, that collaboration with ASEAN members and consultation with domestic stakeholders shape Indonesia’s stance on joining BRICS.

Way Forward: Decision making in a Global Order

Joining BRICS could indeed increase Indonesia’s global influence and align notably well with its G20 membership. However, this decision requires careful evaluation of advantages and disadvantages in a globally shifting order. After all, the stakes for such an economic alliance are high, and the potential impact on Indonesia’s economic landscape is immense.

As Indonesia contemplates its economic future, the question of BRICS membership looms large. A decision either way signifies a step forward in Indonesia’s economic journey, with resounding implications on both domestic and international levels.

Stay tuned to althalla.com for insights and updates on this developing story.

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