Indonesia officially became the 10th member of BRICS in January 2025, joining Brazil, Russia, India, China, and South Africa.

Minister of Industry Agus Gumiwang Kartasasmita stated that this membership would bring strategic benefits, particularly in accelerating the digital transformation and strengthening the global competitiveness of Indonesia’s manufacturing sector.

BRICS currently represents over 40% of the world’s population and nearly one-fourth of global GDP.

With Indonesia’s inclusion, the bloc gains additional economic weight as an alternative to the dominance of developed nations.

“The membership of Indonesia in BRICS is a strategic move to expand international cooperation, particularly in industrial development, technology investment, and strengthening global supply chains,” said Agus in his official statement on Tuesday, May 20.

Economic, Diplomatic, and Financial Impact of BRICS Membership

Indonesia’s entry into BRICS is expected to deliver positive effects across multiple sectors.

Economically, the country will gain wider market access, potential funding from the New Development Bank (NDB), and more diversified trade partnerships.

Diplomatically, the platform offers space to advocate for global economic reforms and elevate Indonesia’s international standing.

On the financial front, BRICS can assist Indonesia in reducing dependence on the US dollar by offering alternative financial mechanisms.

Industry 4.0 Development through BRICS Cooperation

Minister Agus emphasized that Indonesia’s involvement in BRICS aligns with the national roadmap Making Indonesia 4.0.

He explained that the collaboration would accelerate the transformation of domestic industries toward digitalization and smart manufacturing.

“Indonesia is committed to advancing digital transformation, smart manufacturing, and industrial automation to increase national productivity and competitiveness. This aligns with BRICS' spirit of strengthening cooperation in technology and innovation,” he stated.

The government continues to promote technological innovation, the development of sustainable green industries, and the construction of inclusive and resilient supply chains.

Technology and AI Access for SMEs

In addition to large industries, Agus underscored the importance of supporting small and medium-sized enterprises (SMEs).

BRICS collaboration is expected to expand SME access to digital technology and artificial intelligence.

“Digitalization and AI are not just for large industries. Our SMEs must also access this technology so they are not left behind. This is the importance of BRICS collaboration to reduce the technology gap,” he said.

Indonesia’s Potential in Bioindustry and Circular Economy

Indonesia also sees major potential in the bioindustry sector due to its rich biodiversity and renewable natural resources.

Agus stated that BRICS will facilitate the development of bioindustry technology and advance an environmentally friendly circular economy.

“Indonesia has a great opportunity to become the global hub for bioindustry. BRICS cooperation will accelerate the development of bioindustry technology and promote a green circular economy,” he explained.

According to World Bank data, Indonesia’s Manufacturing Value Added (MVA) reached USD 255.96 billion in 2023.

This places the country fourth among BRICS members after China (USD 4,658.79 billion), India (USD 461.38 billion), and Brazil (USD 289.79 billion).

Other BRICS members posted lower MVA figures: Russia (USD 251.58 billion), Iran (USD 78.54 billion), Egypt (USD 59 billion), UAE (USD 55.76 billion), South Africa (USD 49.35 billion), and Ethiopia (USD 7.33 billion).

In Asia, Indonesia ranks fifth after China, Japan, India, and South Korea. Within ASEAN, it holds the top position ahead of Thailand and Vietnam.

PHOTO: KEMENPERIN

This article was created with AI assistance.