Indonesia Joins BRICS: Brazil Confirms Expansion
(MENAFN- The Rio Times) Indonesia, the world's fourth-most populous nation, has officially joined BRICS, potentially expanding the bloc's share of global GDP to over 32%. This strategic move, announced by Brazil's government on Monday, January 6, 2025, signals a significant shift in the global economic landscape.
Brazil, holding the BRICS presidency in 2025, stated that Indonesia's entry was approved by consensus among existing members. This decision aligns with the expansion initiative initially approved at the 2023 BRICS summit in Johannesburg.
The Brazilian government emphasized Indonesia's shared support for reforming global governance institutions and its positive contribution to deepening cooperation in the Global South.
Indonesia's journey to BRIC membership began years ago, gaining momentum after the 2024 presidential election. President Prabowo Subianto, who took office in October 2024, has prioritized BRICS membership as part of his administration's foreign policy agenda.
This marks a shift from the previous administration's more hesitant approach. Foreign Minister Sugiono had previously announced Indonesia's intention to join BRICS during the BRICS Plus Summit in Kazan.
He described the move as "a manifestation of our free and active foreign policy." This move aligns with Indonesia's goal to diversify its economic partnerships and reduce dependence on Western markets.
Opportunities and Challenges
For Indonesia, BRICS membership offers access to new markets and investment opportunities. In 2022, BRICS countries contributed 21.2% of Indonesia's total Foreign Direct Investment, a figure likely to increase with full membership.
The country's vast natural resources, including palm oil and nickel, make it an attractive partner for other BRICS nations. However, joining BRICS presents challenges for Indonesia's foreign policy.
The country must balance its new alliances with existing partnerships and navigate potential geopolitical risks, particularly in its relationships with China and Russia.
As BRICS expands its influence, it could lead to increased competition with Western-led economic institutions. This rivalry could lead to more diverse economic opportunities for developing countries.
It also has the potential to reshape the global economic order. Indonesia's entry into BRICS represents a calculated move to maximize economic benefits while maintaining its non-aligned stance.
This development underscores the growing importance of emerging economies in shaping global trade, investment, and geopolitical dynamics, marking a new chapter in the evolution of international economic alliances.
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