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Indonesia has become a full member of the BRICS group, the its current rotating chair country, Brazil, announced on Monday (January 6). It brings the full member number of BRICS countries to ten, with the others being Brazil, Russia, India, China and South Africa, in addition to Egypt, Ethiopia, Iran, and the UAE.
Several other countries have applied for BRICS Partner status, a lesser category that gives some trade benefits but not a voting capability. These include Belarus, Bolivia, Kazakhstan, Thailand, Cuba, Uganda, Malaysia, and Uzbekistan.
Indonesia is quite a prize. It is the world’s fourth-most populous nation of about 283 million, a full member of ASEAN and has an economy worth US$3.8 trillion in PPP terms. Indonesia’s economy is forecast to grow by 5.1% this year.
The Brazilian government said in a statement that “Indonesia shares with the other members of the group support for the reform of global governance institutions, and contributes positively to the deepening of cooperation in the Global South. With the largest population and economy in Southeast Asia, Indonesia shares with other members a commitment to reforming global governance institutions and contributes positively to deepening South-South cooperation.”
Last year, the group was expanded to include Iran, Egypt, Ethiopia and the United Arab Emirates as full-fledged members. Such nations as Belarus, Bolivia, Kazakhstan, Thailand, Cuba, Uganda, Malaysia, and Uzbekistan were named among those expected to officially become BRICS partner states this year. Saudi Arabia has also yet to make a decision.
Indonesia is the world’s largest Muslim nation, and a multi-trillion-dollar economy in its own right. It is the only G20 member state in Southeast Asia and has the largest economy in the region. Services are the economy’s largest sector and account for 43.4% of GDP, followed by industry (39.4%) and agriculture (12.8%). Indonesia is the world’s largest producer of nickel. It is also a major Asian tourism destination, and especially to Bali.
Indonesia is a member of ASEAN, which also includes Brunei, Cambodia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. It also has free trade agreements with Australia, China, Hong Kong, India, Japan, South Korea, and New Zealand.
Indonesia’s digital economy is among the fastest growing in Southeast Asia, projected to exceed US$130 billion in value by 2025. Indonesia also has the world’s fifth-highest number of internet users.
Russia-Indonesia bilateral trade has been increasing and rose from US$3.3 billion in 2021 to about US$4.2 billion in 2024. Russian tourism to the country is increasing, while several Russian manufacturers, including Kamaz, are operational in Indonesia. Russia’s Softline, a prominent, Moscow based, publicly traded IT developer, has opened a new office in Indonesia to promote its products and services, in addition to providing vendor solutions. It sees its expert knowledge as a good match for the development potential in Indonesia. Membership of BRICS will enhance Russia-Indonesian bilateral trade and is good news for Russian exporters, as is the currently under negotiation Indonesia-Eurasian Economic Union free trade agreement, which is expected to be finalised later this year.
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