This article was provided by Duane Dizon, expert on Strategic and Crisis Communications of International Digital Economies Association (iDEA).
Membership in BRICS provides Indonesia with more diversified sources of loans, including access to the New Development Bank (NDB), which offers funding to accelerate infrastructure and energy projects that support its ambitious growth targets.
BRICS membership also helps Indonesia expand trade, creating opportunities to boost exports and attract foreign direct investment (FDI). Additionally, Indonesia’s high Incremental Capital Output Ratio (ICOR) could improve through technological and financial partnerships within BRICS. Member countries like China and India bring expertise in cost-efficient industrial and infrastructure development, which Indonesia can leverage.
Membership in BRICS aligns closely with domestic targets. President Prabowo Subianto’s ambitious goal of achieving 8 per cent economic growth requires significant resources and partnerships. By fostering collaboration in energy, infrastructure, and trade, BRICS membership supports Indonesia in working towards these objectives. While Indonesia’s projected growth rate of 5–5.1 per cent for 2025–2026 surpasses the 4 per cent average for developing economies, BRICS membership could provide the additional boost needed to approach pre-pandemic growth levels.
As the largest economy in Southeast Asia for decades, Indonesia’s accession reinforces its leadership role in ASEAN while bridging the region with BRICS. Moreover, BRICS membership enhances the optimisation of natural resources. Indonesia can leverage its resource wealth, such as nickel and coal, to form strategic partnerships with BRICS nations, particularly those investing in renewable energy and electric vehicle (EV) technologies.
Finally, Indonesia’s accession to BRICS holds significant geopolitical value. It strengthens the country’s advocacy for a multipolar world and aligns with its vision of supporting a balanced global order, where developing nations have greater influence.
How Indonesia’s accession to BRICS can affect ordinary citizens
The influx of foreign direct investment (FDI) and expanded trade within BRICS is expected to create more jobs in key industries like manufacturing, renewable energy, and digital technology, which could help reduce unemployment and strengthen the country’s middle class.
Additionally, citizens could benefit from lower costs for essential goods and services, as trade partnerships make imports like energy and technology more affordable. Access to funding through the New Development Bank (NDB) could also accelerate infrastructure development, improving transportation, healthcare, and education services that directly impact citizens’ quality of life.
Programmes like the Kartu Indonesia Pintar (Smart Indonesia Card), which currently target low-income groups, could be expanded to include the lower-middle class, alleviating the financial burden of rising education and healthcare costs. This expansion, supported by BRICS partnerships, would enable more Indonesians to access quality education and healthcare, strengthening the country’s human capital.
What social changes can be promoted by BRICS engagement
With technological and financial assistance from BRICS nations, Indonesia could reduce its high incremental capital output ratio (ICOR), ensuring more efficient use of investment funds. This efficiency would not only drive economic growth but also create a ripple effect, narrowing the wealth gap and fostering greater economic equity. Enhanced infrastructure funded by the New Development Bank (NDB) would improve connectivity and access to essential services, particularly in underserved and rural areas, contributing to more inclusive development.
Formal industries, bolstered by investments and trade partnerships within BRICS, would regain their competitiveness, creating better-paying jobs that help lift families into the middle-income bracket. Social initiatives, such as expanded healthcare and education programmes supported by BRICS partnerships, would empower individuals to improve their quality of life and actively participate in economic growth.
Finally, BRICS membership aligns with Indonesia’s geopolitical ambitions to advocate for a multipolar world, where developing nations like itself have a stronger voice.
African Times published this article in partnership with International Media Network TV BRICS
