As full member of BRICS, Indonesia should be wary of ‘trade turbulence’ and Trump’s tariff threats: Analysts

Indonesia had recently expressed interest in joining the BRICS, and it received a recommendation from the union in 2023. &nbsp,

It officially applied for participation in 2024, following the formation of President Prabowo Subianto’s new leadership.

” The Indonesian Ministry of Foreign Affairs expresses its appreciation to Russia, as the 2024 BRICS Chair, for its aid and leadership in facilitating Indonesia’s entrance into BRICS, as well as to Brazil, the 2025 BRICS Chair, for announcing Indonesia’s participation”, the Ministry of Foreign Affairs said in a speech on Tuesday.

” This participation results from Indonesia’s effective relationship with BRICS over the past few years, including its presence at the BRICS Summit in Johannesburg in 2023 under South Africa’s management and the 2024 Summit in Kazan under Russia’s chairmanship”, the statement continued.

The government said that Indonesia is committed to constantly contributing to the BRICS plan, including promoting economic endurance, technical assistance, green growth, and addressing global issues such as climate change, food safety, and public health. &nbsp,

” BRICS is an important app for Indonesia to strengthen South-South assistance, ensuring the tones and dreams of Global South states are heard and represented in international decision-making methods”, the department said.

” We are fully dedicated to working together with all BRICS members, as well as with other parties, to realise the creation of a just, peaceful, and prosperous world”.

Teuku said that this was Prabowo’s” swift achievement” and proof that foreign policy is one of the important priorities in this administration.

” This is Prabowo’s swift achievement. Because he has thoroughly researched this matter since winning the presidency. Prabowo travelled a lot, was involved in international forums”, Teuku said.

BRICS, established in 2009, includes Brazil, Russia, India, China, and South Africa as its early members —countries with rapidly growing economies.

Over time, BRICS has attracted interest from other nations, leading to membership expansion. In 2024, new members included Egypt, Ethiopia, Iran, and the United Arab Emirates.

BRICS, which are made up of non-Western nations, are frequently viewed as challenging the political and economic dominance of wealthy and powerful nations in North America and Western Europe.

Not including Indonesia, BRICS member countries have a population of around 3.5 billion or 45 per cent of the global population. Combined, the economies of the BRICS countries account for about 28 per cent of the global economy.

TRUMP’S THREAT TO BRICS

But observers say Indonesia should be wary of US President-elect Donald Trump’s threats to BRICS.

Trump threatened to impose tariffs of up to 100 % on BRICS member nations if they proceeded with plans to create a new currency that would compete with the US dollar in early December of last year.

Trump reaffirmed on his social media platform Truth Social that” we require a commitment from these nations that they will not create a new BRICS currency nor back any other currency to replace the powerful US dollar. They should also expect to say goodbye to selling into the wonderful US economy,” according to Trump.

During the Johannesburg meeting in 2023, Brazil’s President Luiz Inácio Lula da Silva made the suggestion to create a BRICS currency. However, the proposal has not yet gained full support from all BRICS members.

Hikmahanto Juwana, a professor of international law at the University of Indonesia, claimed that Prabowo should be concerned about Trump’s threat.

This is something we need to be cautious about because Trump will be inaugurated later on January 20, and I worry that Trump will view Indonesia as hostile to the US, Hikmahanto told CNA.

” If so, then various privileges, facilities provided by the US so far to Indonesia will be withdrawn”.