Vice Chairman of the Chamber of Commerce and Industry (Kadin) Coordinator for Organisation, Law, and Communication, Yukki Nugrahawan Hanafi, sees Indonesia's participation in the BRICS (Brazil, Russia, India, China, and South Africa) economic bloc as a strategic step that can boost global competitiveness and expand market access for businesses.

‘With wider access to the markets of BRICS countries, Indonesian businesses have the potential to penetrate diverse new markets, including countries with high economic growth. This is a great opportunity to increase exports, both manufactured products and commodities, to countries whose import needs continue to increase,’ Yukki said (27/10/2024).

Membership in BRICS also offers trade cost efficiencies through potential reductions in tariff barriers and customs procedures. In addition, businesses benefit from the possibility of currency diversification in international transactions.

By using local or alternative currencies between BRICS countries, Yukki said dependence on the US dollar can be reduced, so transaction costs are reduced and the risk of exchange rate fluctuations is minimised.

‘For companies active in cross-border transactions, this is a strategic advantage that will strengthen operational efficiency and support long-term economic growth,’ Yukki added.

Furthermore, Yukki highlighted that BRICS also provides opportunities for collaboration in technology and financing. Through institutions such as the New Development Bank (NDB), Indonesia can access financing support for infrastructure projects and innovation in various industrial sectors. This opportunity can have a long-term positive impact on Indonesia's economic competitiveness and resilience in the global market.

As previously noted, Indonesia formally submitted its wish to join the inter-state economic cooperation organisation, BRICS, at the BRICS Plus Summit meeting in Kazan, Russia. In a written statement on Thursday evening, 24 October 2024, or early Friday morning, 25 October 2024 Indonesian time, Indonesia's Minister of Foreign Affairs, Sugiono, confirmed that Indonesia's process to become a BRICS member has begun.

Since the 1970s, the US dollar has served as the world's primary reserve currency, dominating international trade and banking. Although many countries adopted flexible exchange rates, the value of the dollar remained high. However, nowadays, many countries are starting to look for alternatives, including joining BRICS. BRICS plans to establish its own currency to reduce its members' dependence on the US dollar.

Indonesia, led by President Prabowo Subianto, has not officially declared joining BRICS, but has shown interest in being part of the organisation. This is mainly because BRICS' priorities are considered to be in line with Indonesia's vision and mission, especially in terms of economic improvement.

The significant economic growth of BRICS has caught the attention of global economists and investors, and is believed to continue. This is because the BRICS market share represents more than 40 per cent of the world's population, more than 25 per cent of total global GDP, and about 20 per cent of international trade.