STRATEGIC ASSESSMENT. Economic Affairs Coordinating Minister Airlangga Hartarto said that Indonesia’s decision to join BRICS would not jeopardize the country’s progress toward Organization for Economic Co-operation and Development (OECD) membership, which began last year. BRICS can provide Indonesia with alternative funding and more equitable South-South cooperation while Indonesia’s active participation in the OECD can spur reform and boost the country’s competitiveness in the global market. Airlangga added that in November 2024, OECD Secretary-General Mathias Cormann will meet with President Prabowo Subianto to prepare an initial memorandum containing an independent assessment of how Indonesia’s current regulations align with OECD standards.
Indonesia’s possible membership at the BRICS grouping will likely open up access to new, less strict sources of funding, particularly from the alliance’s New Development Bank or NDB, according to an analyst from the think-tank Paramadina Public Policy Institute.
Josua Pardede, an economist at Bank Permata, said joining BRICS will benefit Indonesia’s investment and international trade, but that Indonesia should be wary of the perception of the Western world, particularly the United States. Meanwhile, Indonesian Employers Association (APINDO) Chair Shinta Kamdani said the business community interprets this step as Indonesia’s effort to balance its geopolitical position, after earlier this year stating its desire to become an OECD member.
