- Indonesia, after initially showing interest, ponders joining the BRICS alliance, hinting at a deeper de-dollarization trend.
- Despite China’s backing, Indonesia’s initial exclusion was due to its non-urgent stance, but expansion phases might change this.
BRICS Expansion and Indonesia’s Strategic Positioning
Indonesia, a dominant player in Southeast Asia, is deliberating on joining the BRICS consortium, aligning itself with nations striving for de-dollarization. Earlier this year, amidst 23 contenders eager to align with BRICS, only six – namely Saudi Arabia, the UAE, Argentina, Egypt, Iran, and Ethiopia – made the cut. Although China advocated for Indonesia’s induction, President Joko Widodo’s assertion that Indonesia was in no immediate hurry played a role in its initial omission.
BRICS’ Upcoming Growth: Is Indonesia on the Horizon?
In light of the 15th summit in Johannesburg, South African President Cyril Ramaphosa relayed that the BRICS association, through the New Development Bank (NDB), is evaluating applications from numerous nations for a possible second enlargement phase. He emphasized the consensus on this primary expansion phase, promising subsequent ones. However, the exact time frame remains unspecified, leaving it unclear whether the next expansion announcement would be in this fiscal year or the subsequent one.
Secrecy shrouds the identities of the nations eyed for this second round. In this cloak-and-dagger game, BRICS has been tight-lipped about Indonesia’s potential inclusion during this expansion phase.
Indonesia’s alignment with BRICS would mark a significant shift, strengthening the alliance even further, especially given the nation’s similar ambitions to minimize reliance on the U.S. dollar. This move would undeniably influence various sectors in the U.S., especially if BRICS pivots away from dollar-based trade. Such alignment could expedite resolutions and regulatory formulations benefiting the national economies and currencies of these nations.
This sentiment isn’t just confined to Indonesia. A discernible pattern emerges as developing countries globally, in their quest for prosperous futures, seem intent on fortifying their domestic economies and currencies. At the crux of this move lies a growing sentiment: the perception that the U.S. might be leveraging the dollar’s strength, enacting sanctions on nations not aligned with their business ethos.