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Understanding Indonesia's decision to (eventually) join BRICS

Understanding Indonesia's decision to (eventually) join BRICS

 


Indonesia has officially become a new BRICS partner, joining countries like Malaysia, Thailand, Vietnam, Trkiye, Nigeria, Cuba and Kazakhstan. Sugiono, Indonesian Minister of Foreign Affairs announcement this change last week during the latest BRICS summit in Kazan, Russia. Last year, during negotiations in Johannesburg, South Africa, China advocated for BRICS expansion and Indonesia was identified as a potential member supported by the five existing BRICS countries. However, then-Indonesian President Joko Widodo was hesitant. He was still weighing the pros and cons, he saidand that there was no urgency for Jakarta to apply for membership.

With Prabowo Subianto now taking over the presidency, the new government in Jakarta appears to have a different perspective.

Sugiono underlines that Indonesia's membership in BRICS does not align the country with a specific bloc, but reflects a commitment to an independent and active foreign policy, allowing the country to engage in various international forums.

Joining BRICS as a partner shows that Indonesia wishes, under Prabowo, to be a more active participant in international forums while remaining independent.

Together, BRICS, named after Brazil, Russia, India, China and South Africa, represent 45% of the world's population and a third of the world's economy. During the Kazan summit, Russian President Vladimir Putin, holding the rotating presidency of the forum, proclaimed the beginning of a new world order designed to challenge the US-led international system, both politically and economically.

THE Kazan Declaration published following the summit envisages an international order similar to Chinese Community of Shared Destiny. Both promote principles such as sovereign equality, mutual respect, fairness, inclusion, common growth and respect for the legitimate and reasonable security concerns of all countries. The emphasis on democratization of international relations is an alternative language deeply rooted in Beijing and Moscow's belief that the US hegemonic order is the root cause of many international conflicts and problems.

Putin has previously expressed his intention to challenge the dominance of the US dollar in international trade and finance by advocating for an alternative international payments system. The Kazan Declaration promotes the use of local currencies in financial transactions between BRICS countries and their trading partners. This approach seems both feasible and necessary for Moscow, as the Russian central bank prohibited from using US dollars. Putin emphasized that 95% of trade between China and Russia is in renminbi (RMB) and rubles (RUB).

Stanislav Krasilnikov, brics-russia2024.ru
The expanded BRICS Summit meeting (Stanislav Krasilnikov, brics-russia2024.ru)

Indonesia's distrust of this program under Widodo may also stem from the idea that it could be seen as a too close to Beijing. But Prabowo does not carry this burden. Although Prabowo shows admiration for Chinaunder his leadership at the Ministry of Defense, Indonesia maintained closer defense cooperation with Western countries.

Additionally, countries such as Thailand, which has an alliance treaty with the United States, and NATO member Trkiye have become BRICS partners. These examples may have reassured Prabowo about the limits of potential negative reactions.

Furthermore, India is also aware of some of Russia and China's objectives towards BRICS and would concerned if the group appears hostile towards the West.

Indonesia's economic development is closely linked to that of China. In 2023, Indonesia was the largest recipient of funding from China's Belt and Road Initiative (BRI) with $7.3 billion investment. China is also Indonesia's largest trading partner. Prabowo seems willing to follow the Chinese logic that the BRI and BRICS are interconnected. President Xi Jinping highlighted this connection at the opening of the 2017 Belt and Road Forum, declaring that China will collaborate with the New BRICS Development Bank and other multinational development institutions to support BRI projects.

Furthermore, Indonesia has long been concerned about the conflict in the Middle East and shares its frustration with the response of other forums in the international community. At the top, Sugiono met with representatives of the Palestine Liberation Organization (PLO) and reaffirmed Indonesia's support for the creation of a Palestinian state. Indonesia sought to associate itself with the Kazan declaration as a direct expression of its concern over the Palestinian issue, also recognizing the interim measures taken by South Africa before the International Court of Justice regarding legal proceedings against Israel .

Joining BRICS as a partner shows that Indonesia wishes, under Prabowo, to be a more active participant in international forums while remaining independent. But the main goal is primarily to seek development opportunities, rather than to support Russia or China's views on the world order.

Sources

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2/ https://www.lowyinstitute.org/the-interpreter/understanding-indonesia-s-decision-eventually-join-brics

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