Indonesia And BRICS: Balancing Economic Opportunities With Geopolitical Risks – Analysis
The recent meeting of BRICS (comprising Russia, Brazil, China, India, and South Africa) in Kazan in October 2024 has significant implications for the evolving dynamics of global governance. As there are increasing demands for a multipolar world to counter Western hegemony, BRICS has emerged as a critical platform for nations aiming to reshape global power structures.
Indonesia, recognized as Southeast Asia’s largest economy, is meticulously evaluating the benefits and risks of joining BRICS, with an emphasis on enhancing its global influence while adhering to its longstanding policy of non-alignment. This essay analyzes how Indonesia could derive benefits from economic, political, and technological cooperation within BRICS while concurrently confronting challenges associated with its geopolitical position and commitments to ASEAN. The potential outcomes of the Kazan meeting—particularly concerning the expansion of BRICS membership—situate Indonesia at a pivotal crossroads between its traditional non-aligned posture and the prospect of adopting a more proactive role in international affairs.
Economic Cooperation: Prospects and Pitfalls
Indonesia’s aspiration to join BRICS is largely motivated by the bloc’s potential to facilitate economic diversification and resilience. As BRICS member countries grapple with vulnerabilities stemming from Western-dominated financial systems, the bloc is actively pursuing strategies to diminish dependence on the US dollar and Western markets through initiatives such as currency swaps and intra-bloc trade agreements.
For Indonesia, these initiatives represent a substantial opportunity to fortify its trade relationships with emerging markets while mitigating its reliance on conventional Western partners. Membership in BRICS would also provide Indonesia with access to the New Development Bank, enabling the financing of large-scale infrastructure projects, and thereby delivering a crucial impetus to national development.
However, the economic benefits are accompanied by potential drawbacks. Indonesia’s extensive trade ties with Western economies, notably the European Union and the United States, could be jeopardized if Jakarta aligns too closely with BRICS. Given that Western nations have imposed sanctions on Russia and maintained strained relations with China, Indonesia must navigate this landscape judiciously to avoid compromising its economic connections with these essential markets. Furthermore, joining BRICS could complicate Indonesia’s position within ASEAN, as it would necessitate a careful balancing act between regional cooperation and participation in a bloc that occasionally operates in contradiction to ASEAN’s principles of neutrality and non-interference.
Geopolitical Alignment: Balancing BRICS, ASEAN and Politics
BRICS presents an attractive platform for Indonesia to assert its leadership on the global stage. As the group advocates for a multipolar world order, Indonesia could amplify its voice in global governance, contributing to discussions on key issues such as global security, climate change, and economic inequality.
Furthermore, membership in BRICS would allow Indonesia to strengthen ties with China and Russia, two major global powers that possess significant strategic interests in Southeast Asia. However, Indonesia’s entry into BRICS poses substantial diplomatic challenges. Indonesia’s foreign policy, which is deeply rooted in non-alignment, could be tested by BRICS’ more assertive political stance.
For instance, BRICS has expressed varying degrees of support for Russia amid the Ukraine conflict, a position that may conflict with Indonesia’s emphasis on peace, dialogue, and non-intervention. Moreover, Indonesia’s leadership role within the Association of Southeast Asian Nations (ASEAN) could be compromised, as ASEAN has traditionally prioritized regional consensus and neutrality. If Indonesia joins BRICS, it risks being perceived as aligning with a bloc that occasionally challenges Western-led international norms. The delicate balance between these two roles—being a leader in ASEAN and a BRICS member—will require Indonesia to maintain diplomatic flexibility, ensuring that its engagement with BRICS aligns with both its national interests and regional responsibilities.
Technological Innovation: A Path to Development
One of the most promising areas for Indonesia’s potential collaboration within BRICS is technological innovation. The bloc has made significant strides in promoting digital currencies, cybersecurity, and advanced research and development (R&D). As Indonesia aims to enhance its digital economy and technological capabilities, BRICS could provide a platform for greater cooperation in these domains. Joint R&D initiatives with BRICS nations could accelerate Indonesia’s progress in key sectors such as fintech, artificial intelligence, and cybersecurity, enabling the country to catch up with more technologically advanced nations.
Nevertheless, the technological benefits of BRICS membership are contingent upon Indonesia’s capacity to scale up its technological infrastructure. While BRICS can offer partnerships and support, Indonesia will need to invest significantly in its digital infrastructure and workforce development to fully leverage these opportunities. Additionally, Indonesia must navigate the geopolitical dimensions of technology cooperation. As Western nations increase scrutiny of BRICS technology initiatives—particularly those led by China and Russia—Indonesia may face pressures to limit its engagement in certain technology partnerships within BRICS.
Cultural and Social Cooperation: Power, Soft Diplomacy and Economics
Beyond geopolitics, BRICS provides Indonesia with an opportunity to enhance its soft power through cultural and social exchanges. As a member of BRICS, Indonesia could engage in educational and cultural initiatives designed to foster greater understanding among member states. Such exchanges would enable Indonesia to project its cultural influence on a global stage, thereby strengthening its image as a diverse and inclusive society. However, Indonesia must also navigate cultural differences within BRICS, particularly given the varied political systems and societal norms of the member countries.
By promoting its values of democracy, pluralism, and tolerance, Indonesia could position itself as a cultural bridge within the bloc. Concurrently, Indonesia needs to exercise caution to avoid compromising its principles while engaging with BRICS members who may adhere to different governance and human rights standards.
Recommendations
In deciding to join BRICS, Indonesia should be guided by a comprehensive assessment of its strategic priorities. First, Indonesia must ensure that BRICS membership aligns with its economic objectives of diversification and technological advancement without jeopardizing its relationships with Western markets and ASEAN. Second, Indonesia should advocate for diplomatic flexibility within BRICS, maintaining its non-aligned stance while contributing to the bloc’s broader geopolitical objectives. Finally, Indonesia must invest in its technological infrastructure to maximize the benefits of cooperation with BRICS in innovation research and development.
Conclusion
The BRICS meeting in Kazan in October 2024 represents a pivotal moment for Indonesia as it deliberates on joining the bloc. While BRICS offers Indonesia opportunities for economic diversification, geopolitical influence, and technological cooperation, these advantages must be weighed against the potential risks of alienating Western partners and straining its position within ASEAN. To succeed within BRICS, Indonesia will need to maintain a careful balance between its national interests, regional responsibilities, and global ambitions. Ultimately, Indonesia’s participation in BRICS could enhance its position in a multipolar world, provided that it effectively navigates the challenges of alignment and cooperation.
The opinions expressed in this article are the author’s own.
References
- Hurrell, Andrew. On Global Order: Power, Values, and the Constitution of International Society. Oxford University Press, 2007.
- Stuenkel, Oliver. The BRICS and the Future of Global Order. Lexington Books, 2015.
- Acharya, Amitav. Constructing a Security Community in Southeast Asia: ASEAN and the Problem of Regional Order. Routledge, 2001.
