Indonesia’s Foreign Policy Evolution in the BRICS Era

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Kumari Krishna
Research Coordinator, Jindal Centre for the Global South,
O.P. Jindal Global University, India

Indonesia became the first state in Southeast Asia to attain full membership in BRICS (Brazil, Russia, India, China and South Africa) in early January 2025, and this membership became official on 6 January 2025 (Reuters, 2025; AP News, 2025) This is considered a milestone for Indonesia, making it important for Indonesia’s foreign policy because it aligns with Jakarta’s adherence to multilateralism and the Global South, while also fulfilling Indonesia’s “free and active” foreign policy(Antara News, 2025).

Indonesia’s accession to BRICS is expected to reshape its foreign policy outlook and strengthen its position in global trade and diplomacy. The effects are already visible, with Indonesia signing agreements and partnerships not only with fellow BRICS members but also with other major economies.

Security, Marine, and Technology Diplomacy

Shortly after acceding to BRICS, India hosted the Indonesian President Prabowo Subianto for a state visit from 23–26 January 2025. The nations signed numerous agreements encompassing defence, maritime security, counter-terrorism, energy, digitalization, as well as space cooperation reaffirming the value that their cooperation held in the Indo-Pacific region (MEA India, 2025).

The country also intensified and strengthened collaboration with Russia. President Prabowo and President Putin announced a new partnership in defence, energy and education in June 2025 in St. Petersburg. A key feature in this agreement was the setting up of a EUR 2 billion fund between Danantara, Indonesia’s sovereign wealth fund and the Russian Direct Investment Fund (RDIF), favouring advanced technologies, including nuclear energy. This is in line with the Indonesia’s plan to construct the first nuclear power plant by the year 2032 (Reuters, 2025).

Gains from Free Trade and Market Diversification

So, in parallel with enhanced interaction with BRICS member states, Indonesia has enhanced trade and economic diplomacy with other significant partners as well. Jakarta, in 2025, signed a series of important agreements with the United States (US), the European Union (EU), as well as Peru. The agreements highlight Indonesia’s strategy to diversify markets as well as deepen global economic linkages.

The US has, in August 2025, offered tariff relief to Indonesia for palm oil, cocoa, and rubber. Indonesia committed to ease restrictions on American imports and on American investment in energy and industries. These are among the steps that are expected to guide Indonesia’s GDP growth to 5.4% in the year 2026 (Reuters, 2025).

It achieved a political deal with the EU on the Comprehensive Economic Partnership Agreement (CEPA) on 13 July 2025. Once signed, this agreement is projected to reduce trade barriers considerably and attract fresh FDI flows (Reuters, 2025; EU Commission, 2025).

On 11 August 2025, Indonesia signed another CEPA with Peru, covering energy, food, mining, and defence. Bilateral trade in 2024 had already exceeded 331 million USD in export and 150 million USD in imports. The agreement is meaningful in enlarging market access to broader Latin American markets (Reuters, 2025).

Economic Growth: Investments in Infrastructures, Energy

Even prior to full membership as a BRICS member, Indonesia’s trade with BRICS nations already hit 150 billion USD in 2024, from commodities to processed products. Membership also guarantees access to the New Development Bank (NDB), which is one main source of financing projects in the field of infrastructure as well as green energy (Antara News, 2025; ASEAN Briefing, 2025).

The Danantara sovereign fund announced in 2025 will allocate 20 billion USD in energy, AI, and infrastructure projects (Reuters, 2025). A national energy program costing 40 billion USD will expand refining capacity, progress gasification, and achieve enhanced energy independence. Its intentions are to expand refinery capacity by another 1 million barrels daily and expand power production by another 71 GW. Renewable energy and nuclear power will provide for 70% of energy production by 2032 according to the Just Energy Transition plan (Reuters, 2025; AP News, 2025).

Following BRICS, Indonesia has pursued a multi-alignment strategy reinforcing ties towards new partners while preserving classical Western linkages. Its efforts to gain entry into the Organization for Economic Co-operation and Development (OECD), negotiations on trade with Japan and Korea, as well as closer integration with Gulf economies, reflects Indonesia’s vision of balanced and pragmatic actions towards foreign policy.

The large number of projects and agreements means the Indonesian government must coordinate closely between its trade, infrastructure, and finance ministries. Good governance will be important to turn these plans into real benefits. Clear public updates will also be needed especially about how the Danantara fund is managed since people are paying more attention to big projects and foreign investments.

Prospective Benefits from Membership in BRICS

Infrastructures and Access to Financing: Membership in BRICS as part of access to the New Development Bank (NDB) is available to Indonesia, which can offer low-interest loans to finance projects like the new capital city Nusantara as well as renewable energy projects (ThinkChina, 2025; ASEAN Briefing, 2025).

Diversification of Trade and Market Access: BRICS provides wider markets to Indonesian export products such as palm oil, coffee, seafood, and manufactured products, making them less dependent on Western markets. This furthers Indonesia’s ambitious 8% growth objective (ASEAN Briefing, 2025).

Industrial Upgrading through Technology Transfer: Joint collaboration with China, India, and Russia can provide manufacturing, digital, and energy technologies to improve Indonesia’s digital and industrial economy (Antara News, 2025; ThinkChina, 2025).

Financial Sovereignty: BRICS cooperation offers alternatives to dollar-dominated finance, including local currency trade mechanisms, which can strengthen Indonesia’s financial independence (ASEAN Briefing, 2025).

Social Development: New Foreign direct investment projects can generate jobs, increase healthcare and education, and aid inclusive development through BRICS-supported initiatives (TV BRICS, 2025).

Geopolitical Power: By being Southeast Asia’s largest economy, membership in BRICS adds to the diplomatic leverage as well as reinforces the position as The Association of Southeast Asian Nations (ASEAN) bridge to the Global South (ThinkChina, 2025; Antara News, 2025).

Conclusion

Its membership in BRICS is a watershed in Indonesia’s foreign policy; this membership marks a shift towards a greater engagement with new emerging economies amid the rise of a multipolar world order. This inclusion has created new avenues in trade, infrastructure, and technology, while enabling Indonesia to have a more balanced approach towards diplomacy. What lies ahead are benefits in increased access to finance, diversified markets, as well as increased geopolitical diplomacy along with new strategies for Indonesian foreign policy.

This BRICS membership strengthens Indonesia’s stance in global governance, advocating for a fairer representation of Global south in the international stage. However, the real test will be how Indonesia manages potential dependencies within BRICS while preserving its strategic autonomy, considering its dependency on larger economies like China and Russia. Indonesia’s period in BRICS predicts quick advancements on balanced and practical multilateralism fostering a balanced and inclusive world order.

References

The opinions expressed in this article are those of the author (s). They do not purport to reflect the opinions or views of the Jindal Centre for the Global South or its members.

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