Indonesia joins BRICS: A Strategic Move for the Global South

On January 6, 2025, Indonesia was officially admitted as a full member of the BRICS group, as announced by Brazil, the current chair of the alliance. This membership marks a significant milestone for Southeast Asia’s largest economy and highlights the growing importance of the Global South in the international arena.

The decision for Indonesia's membership was unanimously supported by the member states at the BRICS summit in Johannesburg in August 2023. However, the formal admission was delayed until the formation of Indonesia's new government. With Indonesia as a member, the BRICS group now represents nearly 45% of the world’s population and about 35% of the global GDP.

As the fourth most populous country in the world and the largest economic power in Southeast Asia, Indonesia brings substantial resources and strategic advantages to the BRICS alliance. The country is rich in natural resources, including significant nickel deposits, which are crucial for battery production and other technologies. Through its BRICS membership, Indonesia can better represent its economic interests and benefit from enhanced collaboration in areas such as trade, investment, and technology.

Indonesia's accession to BRICS also signals a strengthening of cooperation within the Global South. In a time of increasing geopolitical tensions and economic uncertainties, the expanded BRICS group offers a platform for emerging economies to collectively represent their interests and explore alternative development paths. This could lead to a realignment of global power dynamics and challenge the dominance of traditional Western institutions.

For investors, the expansion of the BRICS group opens new opportunities. The member countries provide access to dynamic markets with high growth potential. Investing in these regions allows for portfolio diversification and participation in the economic booms of these nations. However, investors should carefully weigh the specific risks and challenges of each market.