Jakarta. Indonesia’s recent accession to the BRICS bloc is expected to significantly bolster its economy and expand its global influence, according to Chinese economist Song Qinghui. Song sees Indonesia’s membership as a crucial step towards economic advancement and greater participation in global affairs.

“Indonesia’s entire economy is currently facing challenges in growth and transformation,” said Song. “For example, the economic growth rate does not meet the expected target. The target is 8 percent, but currently, it stands at 4.9 percent, which is quite far off,” Song said in an interview with video news agency Viory on Saturday.

According to Song, opening markets to BRICS countries would be a key factor for Indonesia’s economic growth. “The only way for the economy to grow is to open up the market to BRICS countries. Once its products and trade can enter BRICS countries, economic growth will follow,” he said.

Indonesia, as the largest economy in Southeast Asia and the world’s most populous Muslim-majority country, already holds significant weight in the region. However, Song pointed out that its international influence has not yet matched its status. “By joining the BRICS organization, Indonesia aims to enhance its influence and voice in the international market,” Song said.

Despite being a regional leader, Song acknowledged that Indonesia's industrial sector lags behind that of other BRICS members like China and Russia. “Currently, Indonesia’s economy is still mainly based on services and industry. However, compared to Russia and China, its industrial sector is relatively underdeveloped,” Song observed. He further explained that while Indonesia is a major nickel producer, the country's position in the global industrial chain remains at the lower end.

Song believes that Indonesia’s membership in BRICS will deepen its relationships with the bloc's member nations, particularly in areas such as industrial development. “In the nickel sector, China can provide technical support to help Indonesia improve its nickel industrial chain, developing both upstream and downstream,” Song stated. He added that Russia could assist Indonesia in strengthening its industrial capabilities. “In industrial deep processing, Russia can assist Indonesia in expanding and strengthening its presence in the entire industrial chain,” he added.

Song also pointed out that China’s emerging energy technologies and electric vehicles could play a significant role in Indonesia's economic future. “China's new energy technologies and electric vehicles, among other products, can also enter the Indonesian market,” he said. He said that such economic integration would enable China to further expand its influence in Southeast Asia and globally. “With such an ally, China can further expand its influence in Southeast Asia and globally,” Song remarked.

Discussing the broader regional impact, Song highlighted the alignment between ASEAN’s vision and BRICS' goals. “The vision of ASEAN is in line with the vision of BRICS, so joining BRICS will be beneficial for both sides,” Song said. He added that Indonesia’s membership could help foster inclusivity and cooperation across emerging markets.

However, Song also acknowledged the ongoing global dominance of the US and its currency. “The global political landscape is still dominated by the US, and it is currently impossible to change this. Although the influence of BRICS is growing day by day, the world is still a unipolar system with the US dollar,” he said.

Despite this, Song expressed optimism about the future. “BRICS countries have established the New Development Bank and created many mechanisms for de-dollarisation,” he said. “I believe that once these mechanisms are in place, the world will become more diverse and inclusive,” Song concluded.

In response to potential concerns about Indonesia’s BRICS membership affecting its trade relations with the US, Mari Elka Pangestu, deputy chairwoman of Indonesia’s National Economic Agency, reassured the public that Indonesia’s foreign policy is “free and active.” She emphasized that Indonesia can partner with any nation without feeling the need to pick sides or join military blocs.

“There is no need to worry. We have a free and active foreign policy that allows us to partner with anyone. We don’t interfere with US interests and can even serve as a bridge between developing and developed nations,” Mari said during a press briefing recently.

She also addressed the issue of de-dollarization, saying that the shift away from the dollar is part of an inevitable evolution in international finance. “It is every country’s right to choose the currency they transact in,” she said. “Indonesia already has local currency settlement frameworks with countries like China, allowing it to use the rupiah or yuan in bilateral trade.”

Luhut Binsar Pandjaitan, senior economic advisor to President Prabowo Subianto, shared Pangestu’s sentiment, stating that Indonesia is “too big” to rely on any one country, including the US or China. “We have to be independent, but there is nothing wrong with being a bit rebellious by showing that we have a say on things,” he said in Jakarta. “Indonesia is too big to lean on any country.”

Luhut also highlighted that BRICS membership will help expand Indonesia’s export markets. While China remains Indonesia’s top trading partner, membership in BRICS will open doors to other emerging markets within the bloc. 

Government data shows that China is Indonesia’s top bilateral trading partner, both overall and within BRICS. Indonesia-China trade amounted to nearly $108.9 billion in January-October 2024. However, the membership opens doors for Indonesia to tap into non-traditional markets within BRICS. Bilateral trade with South Africa stood at $2.1 billion over the same period—only a small fraction of what Jakarta had secured with China. Indonesia-Egypt trade totaled $1.4 billion in 2024 as of the end of October.

Indonesia’s entry into BRICS marks a significant milestone in its foreign policy. The 10-member bloc now includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, the United Arab Emirates, and Indonesia.