Indonesia has officially joined BRICS as a full member, according to Bloomberg News advertisement By the Brazilian government on Monday.
This makes the Southeast Asian giant the latest addition to the alliance of emerging economies, which now consists of Brazil, Russia, India, China and South Africa, along with new members such as Egypt, Ethiopia, Iran, the United Arab Emirates and Saudi Arabia.
Indonesia has been eyeing the group for years, seeking to become part of its mission to challenge Western-dominated systems and amplify the voice of the Global South.
Approval came in 2023 during the BRICS summit in Johannesburg, but Indonesia, awaiting political stability after presidential elections, delayed formalizing its membership. Now, with President Prabowo Subianto in charge since October, the timing is finally right.
BRICS is getting stronger with Indonesia’s accession
BRICS has been expanding. Together, these countries represent 37.3% of global GDP on a purchasing power parity basis, and are home to more than 3.3 billion people.
With Indonesia’s inclusion, BRICS now boasts some of the fastest growing economies on the planet, along with a great deal of political and economic influence.
Indonesia’s economy is valued at more than $1 trillion, and its role in trade, manufacturing and natural resources makes it a valuable player for the bloc.
In addition, Indonesia has been vocal about its support for the BRICS goals of reforming global governance systems. The statement issued by Brazil summed it up as follows: “Indonesia contributes positively to deepening cooperation in the Global South.”
Agenda to get rid of the dollar
BRICS is working overtime on de-dollarization, to cut ties with the US dollar in trade and financial transactions. One key piece of the puzzle is the “BRICS Bridge,” a blockchain-powered payment system under development.
Think of it as an alternative to SWIFT, designed to allow member states to settle trade using their central bank digital currencies (CBDCs). For BRICS, blockchain technology is a weapon. You see, they are considering creating a new reserve currency, called “unit,” backed by a basket of member currencies and possibly gold.
India has already been a pioneer in local currency trade agreements. The country has concluded agreements with 22 countries, allowing trade in local currencies instead of dollars. This strategy has gained momentum as sanctions imposed on countries like Russia push them to look for financial solutions.
However, there is still a long way to go. Critics say the dollar’s dominance will not collapse overnight, no matter how hard BRICS tries. Internal issues such as currency volatility, economic disparities, and logistical challenges can slow the pace. But the BRICS don’t seem to care.
Putin, Trump, and the BRICS
This is where things get messier. Vladimir Putin’s Russia has been one of the loudest voices in the BRICS group, which has been pushing hard for the abolition of the dollar. But now there’s a new wildcard on the table: Donald Trump. His return to the presidency of the United States is expected to change things, especially regarding Russia’s economic plans and the overall strategic plans of the BRICS group.
Let’s break it down. The Trump administration has always been unpredictable when it comes to Russia. While there is speculation that Trump may seek to calm tensions with Moscow, many in his camp favor tougher sanctions. If Trump redoubles his economic warfare efforts, it could further isolate Russia from Western financial systems, making the BRICS efforts to de-dollarize even more important.
For Putin, BRICS is a lifeline. The Russian economy has been battered by sanctions, with inflation rising to nearly 30% last year and the ruble losing 33% of its value since August 2024. Oil revenues, once the backbone of the Russian economy, have fallen.
Daily profits from fossil fuels have halved since 2022, while Ukraine’s decision to cut transit rights for Russian gas to Europe has cost Moscow another $5 billion annually. Despite these setbacks, Russia is redoubling its efforts in the BRICS group.
For the rest of the BRICS countries, the dynamic between Trump and Putin is important. If Russia faces tougher sanctions, this could accelerate BRICS efforts to create alternative financial systems. On the other hand, if Trump opens up new opportunities for Russia, he may give the bloc more breathing room to focus on its long-term goals.
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