Indonesia's bold move: a deep dive into the BRICS opportunity
Yandhi Surya
by Yandhi Surya
Indonesia, an archipelago with a rich history and a dynamic economy, is preparing to make a transformative move onto the global stage. Under the leadership of President Prabowo Subianto, Indonesia has expressed a keen interest in joining the BRICS alliance – a powerful coalition of Brazil, Russia, India, China, and South Africa. This decision could redefine Indonesia’s role in the international arena, as the country seeks a new platform for geopolitical influence and to leverage economic advantages alongside these emerging powerhouses.
A balancing act: non-alignment and economic growth
Indonesia’s bid to join BRICS is not solely about political alignment but is deeply rooted in the quest for economic expansion. By associating with nations whose economies are rapidly advancing, Indonesia aims to diversify its trade relations, enhance foreign direct investment, and fuel its development initiatives. BRICS membership would place Indonesia in an exclusive circle, offering both influence and access to growth opportunities that could reshape its economy over the coming decades.
A new era of economic cooperation
Traditionally, Indonesia has upheld a “free and active” foreign policy, maintaining an independent stance without binding itself to any major geopolitical bloc. This non-alignment strategy has enabled Indonesia to remain flexible and engage in diplomacy that best suits its national interests.
Joining BRICS represents an opportunity for Indonesia to pursue economic prosperity without relinquishing its independent foreign policy. Collaborating with countries similarly focused on economic progress rather than political alignment, Indonesia can reinforce its sovereignty while gaining a foothold in the global economy.
Expanding market access and economic collaboration
One of the most promising aspects of BRICS membership for Indonesia is the potential to open new markets for its exports. Indonesian commodities, ranging from palm oil and rubber to coal and coffee, could reach billions of consumers across BRICS nations. This expanded market access could invigorate key industries and foster greater economic stability.
Indonesia could also benefit from the financial support of the New Development Bank (NDB), BRICS’ dedicated financial institution. With backing from the NDB, Indonesia could gain access to essential funding for infrastructure projects, including the development of roads, railways, ports, and other critical infrastructure. Such projects are vital for economic growth and for creating jobs, enhancing trade capabilities, and improving the quality of life for millions of Indonesians.
Navigating the challenges
Entering BRICS does have some obstacles. Integrating into this economic bloc requires a careful approach to economic strategy and risk management. Potential issues such as currency fluctuations, trade imbalances, and regulatory challenges must be navigated with foresight and flexibility. These factors, if not managed prudently, could impact Indonesia’s economy and offset the anticipated benefits of BRICS membership.
Yet, with a clear vision and robust diplomatic engagement, Indonesia is well-positioned to overcome these hurdles. By focusing on strategic initiatives, sound economic planning, and transparent policy making, Indonesia can harness the advantages of BRICS membership and build a foundation for long-term prosperity.
Yandhi Surya is a partner at Protemus Capital. He believes that every business has its own characteristics. Through Protemus, he is set to realise a strategy and approach designed specifically for each transaction.Contact Yandhi.
Protemus Capital specialises in M&A, divestment, and due diligence, crafting business legacies through innovative strategies. Its unique approach and global network empower businesses towards sustainable growth and success.
GCG member firmProtemus CapitalJakarta, IndonesiaT : +6221 3972 6868
Advisory, Corporate Finance
