Indonesia Joins BRICS: How This Power Move Reshapes Global Economics

Indonesia's admission to BRICS, confirmed by Brazil, signifies a shift in global economic alliances. This move enhances South-South cooperation and broadens the bloc's influence.

In a significant development for global economic alliances, Brazil, the current presiding nation of BRICS, announced Indonesia’s full membership in the bloc. This marks another expansion for the group of developing economies, following last year’s inclusion of Iran, Egypt, Ethiopia, and the UAE.

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Indonesia Joins BRICS

Brazil's foreign ministry confirmed that the decision to admit Indonesia, the world’s fourth-most populous nation, was finalized by BRICS leaders in August 2023. However, Indonesia opted to formalize its membership only after the formation of its newly elected government.

“The Brazilian government welcomes Indonesia's entry into the BRICS,” read an official statement. “With the largest population and economy in Southeast Asia, Indonesia shares a commitment to reforming global governance institutions and will play a pivotal role in deepening South-South cooperation.”

A Growing Bloc of Influence

BRICS originally began in 2009 with Brazil, Russia, India, and China as founding members, while South Africa joined a year later in 2010. In recent years, the group has actively expanded its membership, with Saudi Arabia receiving an invitation but yet to join.

Notably, Turkey, Azerbaijan, and Malaysia have also applied for membership, signaling growing interest among nations seeking alternatives to traditional Western-dominated institutions.

The Currency Debate

BRICS members, particularly China and Russia, have been advocating for alternatives to the US Dollar in global trade and finance. India, however, has taken a more cautious approach. The currency debate gained further attention after U.S. President-elect Donald Trump issued a stern warning.

In December 2024, Trump urged BRICS nations to commit to neither creating a new currency nor backing alternatives to the U.S. Dollar. “We require a commitment that they will neither create a new BRICS Currency nor back any other currency to replace the mighty U.S. Dollar, or they will face 100% tariffs,” Trump stated, threatening severe economic repercussions for non-compliance.

Strengthening Global South Ties

Indonesia’s entry into BRICS underscores the bloc's mission to champion South-South cooperation and challenge existing global power dynamics. With its inclusion, the group now represents even broader economic and demographic diversity, solidifying its influence on the world stage.

BRICS remains a rare international alliance where the United States holds no membership, further highlighting its distinct geopolitical role.