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Indonesia still eyes BRICS membership despite Trump tariff threat

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Indonesia remains cautiously determined to join BRICS despite a threat from U.S. President-elect Donald Trump to double tariffs on members of the Russia- and China-led bloc if it pursues its stated goal of establishing an alternative to the U.S. dollar in international trade.

At a parliament meeting this month with the Indonesian Foreign Ministry, legislators expressed their concern about Trump’s threats.

“Although we are confident in expanding our diplomatic relations, Indonesia’s presence in BRICS may be considered as a departure from traditional trade relations with U.S. and the European Union,” said Sumail Abdullah, a ruling party legislator with a role in foreign affairs. “Don’t let this become a reality, because countries like Russia and China will certainly dominate BRICS.”

Foreign Minister Sugiono defended his decision to join BRICS, arguing that there are many benefits to being a member.

“Essentially, BRICS is a good platform that we can utilize as our vessel to discuss and bring forward the interests of developing countries. It is also an implementation of our independent and active foreign policy,” he told legislators at the December 2 session.

Sugiono stressed the importance of strengthening Indonesia’s economy by building food and energy security and developing downstream industries. Indonesia, he added, should be less reliant economically on other countries so it can better decide its own foreign policy.

Although the BRICS countries have made it a goal to reduce reliance on the U.S. dollar as an exchange currency, Sugiono said the issue was not brought up during the October 2024 BRICS Summit in Russia.

However, the minister left the door open to reconsidering the decision in light of Trump’s threat.

“If we think there are things that could harm our national interests, then we can review our membership in BRICS. What is important is that our attempt to join any multilateral group is focused towards maintaining our national interests,” he told the legislators.

Indonesia’s journey to join BRICS

BRICS is a global economic cooperation organization that was formed in 2006 to focus attention on investment opportunities among its founding countries: Brazil, Russia, India, China and South Africa.

Indonesia expressed its desire to join the bloc at the October summit in Kazan, Russia, where Sugiono proposed several concrete steps to strengthen BRICS and Global South cooperation.

FILE – Chinese President Xi Jinping and Indonesian President Prabowo Subianto attend a welcome ceremony at the Great Hall of the People in Beijing, China, Nov. 9, 2024.

President Prabowo Subianto has repeatedly underlined his intention to befriend both China and the United States, saying Indonesia will not join any military bloc.

Teuku Rezasyah, a professor specializing in diplomacy and foreign policy at Universitas Padjadjaran, told VOA that joining BRICS places Indonesia in the geopolitical center between the rival power blocs.

“We’re not only close with the U.S., the European Union, but also getting closer with Russia and China. As a result, we have more bargaining power, which will benefit us,” he said at a national seminar.

Teuku argued that the shared BRICS vision, as laid out in a 2021 joint statement, calls for a restructured global political, economic and financial architecture with a reformed United Nations at its center. He said this vision reflects a contemporary world that is more equitable, balanced and representative.

Political benefits, challenges

Although Indonesia has been invited to become a BRICS member since 2022, it did not officially express its intention until this October. Indonesia is currently a BRICS partner country, a status that applies to 12 other countries, including fellow ASEAN states Malaysia, Vietnam and Thailand.

Teuku said the organization “is commonly understood as an attempt to form a geopolitical bloc capable of counterbalancing the influence of Western-dominated global institutions such as the International Monetary Fund and the World Bank.”

Muhsin Shihab, an expert adviser on institutional relations at Indonesia’s foreign ministry, said in November that by joining BRICS, Indonesia can increase its global clout and can help to shape the agenda of the Global South.

But Tobias Basuki, co-founder of Aristoteles Consults, a political consultancy and legal services firm, said in an interview with VOA that he doubted Indonesia would gain much from joining the bloc because most of its political and economic goals can be achieved through bilateral ties with the BRICS members.

Russia and China have more to gain from expanding the group’s membership, he said, adding that they “have their own agenda and interests, which are not necessarily always aligned with the Global South’s needs and interests.

“So by joining BRICS, you’re actually entering their playground. It may not give Indonesia the position that Prabowo wants to be as a bridge-maker between the two competing powers.”

Basuki said that “if Indonesia wants to be a leader of the Global South, then it’s better to revive the [Indonesia-led] Asia-Africa conference and Non-Aligned Movement, which already has 120 countries, a true reflection of a Global South alliance.”

Apart from joining BRICS, Indonesia is also seeking membership at the Organization for Economic Cooperation and Development, which signals its ambition to align with global standards of governance and economic openness.

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