BRICS Membership Value Economist Improves Indonesia's Offering Position In OECD's Eyes

Illustration (Photo: Doc. ANTARA)

JAKARTA - Economist Wijayanto Samirin assessed that Indonesia's joining the Brazilian, Russian, Indian, Chinese and South African groups (BRICS) is a strategic step that can increase Indonesia's bargaining position in the global arena.

In particular, he continued, in the eyes of the Organization for Economic Co-operation and Development (OECD).

This was revealed by Wijayanto in response to the official announcement from Brazil, as Chair of the 2025 BRICS, regarding the inauguration of Indonesia's full membership in the organization.

"I think the decision to become a member of BRICS is appropriate, as long as we also continue to encourage the OECD membership process. Indonesia is a potential economic force in this world, that potential must be unlocked by being more daring to take a stand. The decision to join BRICS will actually increase Indonesia's bargaining position in the eyes of OECD, which so far seems as if we have been positioned as unequal from other countries," said Wijayanto as quoted by ANTARA, Tuesday, January 7.

Regarding the denOLization agenda which is one of the BRICS agenda, Wijayanto assessed, this phenomenon will naturally occur along with the decline in the economic dominance of the United States (US).

The role of the US economy in the world, although it will remain important, tends to decline due to the emergence of new forces such as China, India, Russia, Brazil, Mexico, or even Indonesia.

According to Wijayanto, the dedolarization trend will occur more in the context of inter-BRICS trading, as has been implemented by China and Russia by using local currencies for 90 percent of their export-import transactions.

However, he is skeptical of the possibility of creating a global alternative currency or SWIFT replacement transfer system in the near future.

Indonesia needs to reduce its dependence on the US dollar by using more local currencies for exports and imports with other countries. However, we don't need to make dedolarization an economic-political movement, this will be counterproductive and beyond our interests," explained Wijayanto.

In Wijayanto's view, being part of BRICS also provides an opportunity for Indonesia to participate in determining the direction and blueprint of the organization in the future.

He emphasized the importance of the country to take advantage of this membership to open up opportunities for cooperation in various fields, such as technology, food security, and climate change.

However, Wijayanto also highlighted the potential impact of Donald Trump's re-electability as US President on the dynamics of multilateral organizations.

Trump's election would actually make Western-based organizations less effective, as Trump prefers unilateral, bilateral approaches. Multilateral commitments include COP, WTO, OECD, and even NATO tend to deny, "he explained.

Thus, Wijayanto considered that Indonesia's membership in BRICS, although a bit late, was a strategic step to expand its influence and strengthen Indonesia's position in the international arena.

Meanwhile, the Indonesian Ministry of Foreign Affairs in its official statement welcomed Indonesia's full membership at BRICS.

Indonesia welcomes its full membership status at BRICS, as announced by Brazil as Chair of the 2025 BRICS, and is committed to actively contributing to the organization's agenda in the future.

"As a country with a growing and diverse economy, Indonesia is committed to actively contributing to the BRICS agenda, including encouraging economic resilience, technology cooperation, and sustainable development," said the Indonesian Ministry of Foreign Affairs (Kemlu) in a press statement.

Indonesia is committed to continuing to play a role through BRICS in helping to overcome global challenges such as climate change, food security, and public health, as well as realizing a more inclusive and just global order.

"Indonesia is also unanimously dedicated to working with all members of BRICS and other parties for a fairer, more prosperous world."

According to the Indonesian Ministry of Foreign Affairs, joining Indonesia into BRICS is a reflection of the increasing active role of Indonesia in the global arena and the momentum to increase multilateral cooperation.