Jakarta, October 26, 2024 — Less than a week after the inauguration of the president and the new cabinet, Indonesia’s government has drawn public attention, both at home and abroad, following Foreign Minister Sugiono’s statement at the BRICS Plus Summit in Kazan on October 24, 2024. Sugiono submitted a letter expressing interest in joining the alliance of five major countries: Brazil, Russia, India, China, and South Africa (BRICS). Indonesia has now officially applied for membership.
Bhima Yudhistira, Executive Director of CELIOS, highlighted concerns about economic dependence on China. “Even without BRICS, China already accounts for a very large share of Indonesia’s investment and trade. Indonesia’s imports from China surged 112.6% over the past nine years, from USD 29.2 billion in 2015 to USD 62.1 billion in 2023. Meanwhile, investment from China increased elevenfold. Indonesia was also recorded as the largest recipient of Belt and Road Initiative loans compared with other countries in 2023.” He added that this dependence makes the economy more vulnerable, especially as China’s economy is projected to decline by 3.4% over the next four years.
Muhammad Zulfikar Rakhmat, Director of CELIOS’ China-Indonesia Desk, said, “There is currently no urgency for Indonesia to join the BRICS economic group, given concerns that China’s presence in the group could affect Indonesia’s independence in taking positions on various critical issues.” CELIOS researcher Yeta Purnama added, “Recently, as Indonesia celebrated the presidential inauguration, Chinese vessels caused a stir by entering waters under Indonesia’s jurisdiction in North Natuna, and the President did not respond immediately. This is evidence that the government is hesitant about how to act as it seeks to join BRICS.” Yeta emphasized that, compared with BRICS, Indonesia has a much greater urgency to join the OECD, in line with its efforts to become a developed country and diversify its partners beyond China.
Less than a week after the inauguration of the new president and cabinet, Indonesia’s government has drawn domestic and international attention following Foreign Minister Sugiono’s statement at the "BRICS Plus Summit" in Kazan on October 24, 2024. Sugiono submitted an expression of interest for Indonesia to join the alliance of five major countries—Brazil, Russia, India, China, and South Africa (BRICS). Indonesia has now officially applied for membership.
Bhima Yudhistira, Executive Director of CELIOS, highlighted concerns about economic dependence on China. “Even without BRICS, China already plays a major role in Indonesia’s trade and investment. Indonesia’s imports from China jumped 112.6% over the past nine years, from USD 29.2 billion in 2015 to USD 62.1 billion in 2023. Meanwhile, Chinese investment increased elevenfold. Indonesia was also the largest recipient of Belt and Road Initiative loans in 2023,” he said. Bhima added that such dependence could make the economy more vulnerable, particularly as China’s economy is projected to slow by 3.4% over the next four years.
Muhammad Zulfikar Rakhmat, Director of CELIOS’ China-Indonesia Desk, argued, “There is currently no urgency for Indonesia to join the BRICS economic group, given China’s presence may affect Indonesia’s independence in handling critical issues.” CELIOS researcher Yeta Purnama added, “Recently, as Indonesia celebrated the presidential inauguration, Chinese vessels alarmingly entered North Natuna waters, and there was no immediate response from the President. This shows the government is hesitant amid its interest in joining BRICS.” Yeta emphasized that Indonesia’s priority should instead be joining the OECD, which better aligns with its goals of becoming a developed nation and diversifying partners beyond China.
Contact Person:
Yeta (+62 813-2506-8100)
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