Indonesia’s BRICS Challenge Balancing Between Global Ambition and Domestic Reality
Amid the shifting balance of global power, Indonesia has officially become a full member of BRICS — the economic bloc that now includes Brazil, Russia, India, China, South Africa, and several new members from Asia and the Middle East.
This marks a new chapter in Indonesia’s diplomatic history: from a regional actor to part of a global alternative power forum.
Yet, as with every historical leap, this move also raises a pressing question: is Indonesia truly ready to face the strategic and economic consequences of its new position?
BRICS: A Symbol of Defiance Against the Old Order
BRICS was originally conceived as an economic idea — a symbol of the shifting global center of gravity from the West to the East and South.
Two decades later, it has evolved into a political and economic platform challenging the dominance of Western-led institutions like the IMF and the World Bank.
Indonesia’s entry strengthens BRICS’s claim to represent the “Global South,” a grouping that now accounts for over 45% of the world’s population and nearly 36% of global GDP (PPP).
For Indonesia, this is more than a diplomatic milestone. It is a statement of identity — a declaration that Jakarta seeks to move beyond the role of a compliant “developing country” to become a sovereign power capable of shaping the global economic order.
As the President put it, “We no longer want to be merely a market for global industries. We want to be producers and decision-makers.”
Yet every grand ambition comes with an equally grand test.
The Test of Economic Credibility: Growth and Inequality
The first challenge lies at home. BRICS is not only a political forum — it is also a test of economic resilience. Most of its members have large industrial bases, robust export capacity, and substantial foreign reserves.
In comparison, Indonesia’s position remains fragile. Although its economy grows steadily at around 5%, its industrial foundation is still shallow. The downstream processing of nickel and other minerals has only just begun, while dependence on raw commodity exports remains high.
Another pressing issue is inequality. Nearly 60% of GDP is concentrated on the island of Java, leaving eastern regions lagging behind. The world will judge not only Indonesia’s potential but also its ability to balance growth without widening social disparities.
This matters in the context of BRICS, which emphasizes South–South integration: trade among member countries, local-currency transactions, and the strengthening of the New Development Bank (NDB) as an alternative to the IMF.
The question is whether Indonesia can contribute meaningfully — or whether it will remain a spectator at the table of giants.
The Test of Foreign Policy: Balancing in a Polarized World
BRICS today is not just an economic forum; it has become a political pole that some perceive as “anti-Western.” Russia and China have strategic agendas that frequently clash with U.S. and European interests.
Indonesia’s entry therefore places its diplomacy on a tightrope — between asserting independence and maintaining stable relations with long-standing partners such as the U.S., Japan, and the EU.
Indonesia’s foreign policy has long been guided by the principle of being “free and active” — free from alignment with any bloc, yet active in promoting peace and global justice.
That principle will now be tested more severely than ever.
Jakarta is also a key member of the G20 and ASEAN, and a vital trade partner for Western economies. How can it maintain all these relationships without provoking suspicion?
This will require a delicate mastery of diplomatic equilibrium.
For instance, BRICS’s ambition to promote trade using local currencies could help Indonesia reduce its dependence on the U.S. dollar. Yet such a move could also trigger unease in Western financial markets or among rating agencies concerned about monetary stability.
The Institutional Test: Turning Membership into Real Benefit
Joining a major global forum does not automatically bring benefits. Many nations have entered BRICS with high expectations, only to find limited tangible gains.
For Indonesia, success depends on whether it can design a clear national strategy — one that leverages BRICS’s financial and technological networks to strengthen domestic manufacturing, logistics, and innovation.
The New Development Bank (NDB) — often dubbed the “IMF alternative” — presents a major opportunity. Indonesia could use it to finance green infrastructure, digital transformation, and energy transition projects without the political conditions typical of traditional loans.
But there’s a prerequisite: economic governance must be credible. The world trusts not rhetoric, but institutions. Without transparent fiscal management, reliable investment laws, and an efficient bureaucracy, Indonesia’s promises will ring hollow.
Credibility is not declared — it is demonstrated.
The Geopolitical Test: Between Two Currents of Power
The world today is divided between two great currents: the Western democratic bloc and a multipolar bloc led by China and Russia. BRICS is often seen as the latter’s political arm.
Indonesia must navigate carefully to avoid being drawn into this rivalry.
While BRICS promises “Global South autonomy,” in reality, China’s influence within the forum is overwhelming — in funding, agenda-setting, and strategic direction.
Without a clear national agenda, Indonesia risks falling into a new dependency — not on the West, but on Beijing or Moscow.
Thus, the wisest course is to position itself as a bridge builder — a connector between the developed and developing worlds, between West and East.
That bridging role has long earned Indonesia global respect — a role it must not lose in the pursuit of new prominence.
A Great Opportunity: The Global South Finds Its Voice
Despite these risks, the opportunities are immense. The world is weary of a global order seen as elitist and unjust.
BRICS offers a new platform for countries like Indonesia to voice demands for a reformed financial system, climate justice, and more inclusive development.
Here, Indonesia enjoys moral credibility. It harbors no expansionist ambitions, is committed to sustainable growth, and represents a large, upwardly mobile population.
Handled wisely, BRICS membership could become a catalyst for: expanding non-commodity exports, advancing joint research with India and China, building green financing mechanisms, and advocating a more equitable global economic order.
But everything depends on one crucial factor: domestic political direction.
Can the government align national policy frameworks with BRICS’s founding spirit — of self-reliant, innovation-based, and equitable development?
Conclusion: The Long Road Toward Economic Sovereignty
Joining BRICS is a major step — but it is only the first.
Indonesia now stands on the global stage, but the world stage demands more than presence; it demands performance.
The real challenge ahead is not about being accepted internationally, but about proving capacity: that Indonesia is not merely a “large potential market,” but a nation capable of leading with ideas, ethics, and independence.
BRICS opens the door to a fairer world.
But global justice can only be fought for by a nation that is, first and foremost, just to itself.
Jakarta, October 28th, 2025