In an era marked by profound transformations in global economic governance, the BRICS bloc—comprising Brazil, Russia, India, China, and South Africa—has emerged as a driving force in advancing multilateralism. It offers a fresh framework for economic integration and collaboration among leading emerging economies.
Collectively, the BRICS nations account for over 25% of global economic output and encompass 42% of the world’s population, spanning one-third of the planet’s landmass and contributing to a quarter of international trade. As of 2023, the bloc held approximately $4 trillion in consolidated foreign exchange reserves and attracted 11% of global foreign direct investment.
With the inclusion of new members such as Iran, Egypt, Ethiopia, and the United Arab Emirates, BRICS has expanded its share of global GDP by purchasing power parity to 35 percent. The bloc holds a pivotal role in the global commodities market, accounting for over 40 percent of the world’s oil production and approximately 25 percent of commodity exports. Furthermore, Brazil, China, India, Iran, Russia, and South Africa collectively possess around 30 percent of the world’s iron ore reserves.
BRICS countries collectively exhibit the economic potential to surpass the economies of the Group of Seven (G7) wealthiest nations by 2050. The bloc has consistently maintained robust economic growth, driven by factors such as large populations in certain member states, abundant natural resources, and rapid economic reforms.
BRICS advocates for the establishment of an open, transparent, non-discriminatory, and inclusive multilateral trade system. The guiding principles regulating foreign trade have critical importance when it comes to ensuring the fair distribution of the benefits and costs resulting from integration within BRICS considering the differences among its member countries in terms of economic structure and scale.
In October, Indonesia Foreign Minister Sugiono attended the BRICS Plus Summit in Kazan, Russia, to express Indonesia’s interest in joining the bloc. He emphasized Indonesia’s aspiration to advance the shared interests of developing nations, often referred to as the Global South, through BRICS. The BRICS nations aim to deepen economic cooperation, including boosting trade, investment, and infrastructure development.
Sugiono highlighted several tangible benefits Indonesia could gain from joining BRICS. Representing approximately three billion people, BRICS offers significant export market opportunities for Indonesian products, including agricultural goods, textiles, and electronics. With ongoing trade tensions between the West and East, such diversification is vital for Indonesia’s economic resilience. This becomes even more critical in light of potential developments in U.S. trade policy, especially if Donald Trump implements stricter trade policies. Such measures could heighten the risk of a U.S.-China trade war, which would have far-reaching effects, particularly on emerging markets like Indonesia.
Membership in BRICS could further strengthen Indonesia’s position by unlocking new market potential, reducing dependence on the U.S. dollar, and facilitating bilateral agreements. Economically, BRICS membership would expand access to global markets for Indonesia’s industrial products. An additional attraction lies in the potential increase in intra-BRICS trade among member nations. Moreover, BRICS encourages the use of local currencies in trade and financial transactions, which aligns with Indonesia’s goals of enhancing financial stability and reducing vulnerabilities tied to dollar dependence.
Data from the United States Institute of Peace (USIP) indicates a 56% increase in intra-BRICS trade between 2017 and 2022, a trend that is expected to continue rising in the coming years. Indonesia’s potential membership in BRICS is anticipated to enable the country to secure more favorable trade agreements, strengthened by a stronger bargaining position afforded by its membership benefits.
BRICS bloc has emerged as a potentially dominant economic force. Its advocacy for a multipolar world holds the promise of transforming globalized industries, such as shipping. Over recent decades, the industrial and financial capacities of BRICS nations have expanded significantly, positioning them as key players in international markets for goods, services, and capital—or setting them on a trajectory to achieve such prominence. Projections indicate that the BRICS economies will experience robust growth, further expanding their global influence.
The expansion of BRICS, coupled with strengthened intra-bloc ties, has been pivotal in reshaping the international trade landscape. Strategically located at the nexus of major global transportation routes, BRICS countries are driving rapid growth in multi-modal shipments. They occupy critical positions along key international corridors, including the East-West corridor, the Belt and Road Initiative, the North-South Corridor, and maritime routes connecting Brazil and Egypt via the Sea of Azov and the Black Sea. This geographic and infrastructural diversity enhances BRICS’ competitiveness in the logistics sector, fostering effective trade and supply chain collaboration.
Therefore, Indonesia’s potential inclusion in BRICS could open significant opportunities for exporters and importers to expand businesses on a global scale. Joining the bloc would provide access to larger and more diversified markets, fostering trade partnerships with some of the world’s fastest-growing economies. Indonesian businesses could benefit from improved trade infrastructure, streamlined logistics along key international corridors, and enhanced financial cooperation within BRICS. Moreover, participation in BRICS’ initiatives aimed at promoting a multipolar trade environment could reduce reliance on traditional markets, allowing Indonesia to leverage its strategic geographic position and abundant natural resources.
