Jakarta. Indonesia should pursue memberships in both OECD and BRICS as each alliance has its own pros and cons, according to a senior economist. 

Indonesia under the newly established Prabowo Subianto government recently announced its intentions of joining BRICS -- an informal grouping that originally brought together Brazil, Russia, India, China, and South Africa. Indonesia previously chose to opt out of BRICS for the time being under Former President Joko “Jokowi” Widodo, saying that it preferred to make the necessary calculations first. Under Jokowi, Indonesia primarily focused on securing a seat at the rich country club Organization for Economic Cooperation and Development (OECD). The preceding Jokowi government even set a goal for Indonesia to become a full-fledged OECD member by 2027.  

The recent announcement of Indonesia’s interest in BRICS sparked questions on what would happen to Jakarta’s OECD bid with Prabowo now in power. Senior economist Wijayanto Samirin said Wednesday that Indonesia should try to get into BRICS and OECD, so Jakarta could get the best of both worlds.

“Indonesia joining both BRICS and the OECD is the best possible option,” Wijayanto told a virtual conference.

There are currently no formal rules that forbid Indonesia from joining both groups. BRICS’ founding member Brazil is even currently trying to get into the OECD. Wijayanto said: “A membership in [both groups] is possible, … but Jakarta will have to engage in some intense negotiations.” 

Each club has its pros and cons. Indonesia is set to play a bigger role in the quite nascent BRICS compared to the already well-established OECD. A BRICS membership, however, is set to put strain in Indonesia’s ties with China’s rival: the US. Indonesia does not have to go through the years-long rigorous review processes if it wants to join BRICS, unlike the OECD which requires Jakarta to make reforms to meet the group’s standards. The OECD membership will also likely expedite the negotiations for Indonesia’s overdue trade pact with the European Union (EU). As many as 22 OECD economies are EU members.

A second-best option would be a membership in either BRICS or OECD. Wijayanto said: “But if Indonesia has to choose one, pick the group that has an easier, faster accession process, as well as one that brings the most benefits. But most importantly, the group that can put the country in a strategic position."

The worst possible scenario is staying out of BRICS or OECD as Indonesia will miss the chance to play a strategic role in influencing the organization’s grand design and policies, according to Wijayanto.

Last week, BRICS made Indonesia as one of its “partner countries”. This status puts Indonesia on sort of a probation before it can officially become a BRICS member. There is no specific timetable as to how long the partner country processes will last. In comparison, the typical OECD candidate finally gets accepted after years of rigorous policy reviews. Indonesia officially became a candidate member to the OECD earlier this year.