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Indonesia Joins BRICS: A New Chapter in Global Economic Dynamics
On January 6th, 2025, Indonesia officially became a member of BRICS, marking a significant shift in the geopolitical and economic landscape.
This decision places Southeast Asia’s largest economy at the heart of a group that has become a leading voice for the Global South.
What is BRICS?
BRICS is an acronym for a group of major emerging economies: Brazil, Russia, India, China, and South Africa. Established in 2009, the coalition was created to amplify the influence of developing nations on the global stage.
In January 2024, the group expanded to include Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates, forming what is now called BRICS+. With the addition of Indonesia, BRICS+ continues to strengthen its global influence.
A Global Economic Force
The BRICS+ nations represent:
– 46% of the global population.
– 37% of the world’s GDP in 2025, up from 36% in 2024, largely fueled by the inclusion of Indonesia.
– A rapidly growing share of global trade and investment flows.
For comparison, the G7, a group of advanced economies established in 1975, accounts for about 29% of global GDP as of 2025. While the G7 countries maintain higher GDP per capita (approximately $36,500 USD versus $15,000 USD for BRICS+ in 2025), the economic momentum is clearly shifting toward the BRICS.
Why Indonesia’s Membership Matters
Indonesia’s inclusion in BRICS is a natural step given its economic and geopolitical significance:
– Largest Economy in Southeast Asia: Indonesia’s GDP exceeds $1.5 trillion, making it a critical player in the region.
– Strategic Location: Situated along major trade routes, Indonesia bridges the Pacific and Indian Oceans.
– Resource Richness: From minerals to agriculture, Indonesia’s natural resources are vital to global supply chains.
– Non-Aligned Leadership: Historically neutral, Indonesia’s decision to join BRICS signals a strategic alignment with emerging economies rather than traditional Western powers.
BRICS vs. G7: A Shifting Balance
BRICS first surpassed the G7 in terms of contribution to global GDP in 2020, and the gap has widened since. However, the two groups represent different economic philosophies:
-G7: Focused on established industries, high-income markets, and addressing global challenges like climate change.
-BRICS+: Advocating for multipolarity in global governance and emphasizing equitable development for emerging markets.
Indonesia’s addition to BRICS underscores the group’s growing appeal and reflects a broader movement toward rebalancing global power structures.
Indonesia’s Role in the New World Order
In recent years, Indonesia has shown an increasing willingness to engage on the global stage. As the only ASEAN member in the G20, it chaired the group in 2023, showcasing its leadership capabilities. By joining BRICS, Indonesia aligns itself with countries advocating for a more inclusive and multipolar global order.
This decision comes at a time when traditional institutions like the IMF, WTO, and UN Security Council are facing challenges to their relevance. BRICS provides a platform for Indonesia to contribute to reshaping these institutions in favor of the Global South.
What’s Next for BRICS+?
With Indonesia on board, BRICS+ is poised to strengthen its influence in Southeast Asia and beyond. Economists predict further expansion as other nations express interest in joining.
For Indonesia, this membership offers opportunities to deepen trade ties, attract investment, and influence global decision-making. Yet, it must navigate this new role carefully to maintain its historical commitment to non-alignment while advancing its national interests.
Conclusion
Indonesia’s official membership in BRICS opens new avenues for global economic collaboration and growth.
For exporters, this is a timely opportunity to tap into Southeast Asia’s largest economy, now further integrated into a dynamic group of emerging markets.
With its growing middle class, strategic location, and enhanced role in global affairs, Indonesia presents a promising market for industries ranging from technology to agriculture and beyond.
By engaging with Indonesia today, you can position yourselves at the forefront of this transformative shift in the global economic landscape.
Don’t wait—now is the time to explore the potential of this rising economic powerhouse.
Contact us to discuss how this latest BRICS expansion can impact your business.
We are Cintasia, we bring your technology and industrial equipment to Indonesia and Asean.
Picture : chatgpt
Source : Our own article published on May 31, 2024 (check our website, section NEWS)