BRICS Receives 6 New Members, Indonesia is Still Studying

BRICS now has eleven members. The aim is to provide a variety of options for economic cooperation. Indonesia is still studying and does not want to rush into joining.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found in BRICS Terima 6 Anggota Baru, Indonesia Masih Kaji

AFP/POOL/ALET PRETORIUS

A group photo of BRICS leaders, namely Brazilian President Ignacio Lula da Silva (far left), Chinese President Xi Jinping, South African President Cyril Ramaphosa, Indian Prime Minister Narendra Modi, and Russian Foreign Minister Sergey Lavrov representing Russian President Vladimir Putin. They attended the BRICS High-Level Conference in Johannesburg, South Africa on August 23rd, 2023.

JAKARTA, KOMPAS - At the 15th summit, the Brazil, Russia, India, China and South Africa cooperation bloc or BRICS received six new members. The six new members are Saudi Arabia, the United Arab Emirates, Egypt, Iran, Argentina and Ethiopia. The announcement was made by South African President Cyril Ramaphosa as the host of the Summit in Johannesburg, Thursday (24/8/2023). Indonesia is still reviewing membership in the BRICS.

Before these new members join, BRICS represents 41% of the world's population, 24% of global domestic income, and 16% of world trade. Although they have a great power, BRICS stresses that they do not intend to form a new hegemony or exacerbate global geopolitical competition. BRICS wants to ensure diversity in economic cooperation and development that does not have to refer to Western standards.

Also read: BRICS, Formerly an Eliminated Group, Now Ready to Replace G7

The BRICS Summit was attended by Indian Prime Minister Narendra Modi, Brazilian President Ignacio Lula da Silva, Chinese President Xi Jinping, and Russian Foreign Minister Sergey Lavrov. Russian President Vladimir Putin participated in the summit via teleconference. He could not attend in person to South Africa because the country is a member of the International Criminal Court (ICC). This institution has sentenced Putin as a war criminal following Russia's attack on Ukraine. If Putin sets foot in an ICC member country, he must be arrested.

As reported by the Mail and Guardian newspaper, Ramaphosa stated that there are 20 countries that have sent official requests to join BRICS, and four of them are from Africa. "The foreign ministers will coordinate to develop the BRICS cooperation model and monitor potential member candidates," he said.

(GIANLUIGI GUERCIA/POOL VIA AP)

The delegation attending the BRICS summit in Johannesburg, South Africa, listened to a virtual speech delivered by Russian President Vladimir Putin, on Wednesday (23/8/2023).

Ramaphosa emphasized that BRICS is not interested in becoming a new geopolitical force that adds to existing competition. BRICS wants to play a role in the multilateral world system. The goal is to provide various alternatives for countries, especially in the global south, to increase their economy.

Read also: BRICS Is Not a New Hegemon

"The spirit of de-dollarization, for example, is needed to improve the world's financial architecture. We need currency options other than the US dollar for trade to avoid dependence on only one currency," he said.

One example, as reported by Bloomberg, is the announcement of Argentine Finance Minister Fernando Haddad regarding Brazil's offer to use the Chinese yuan currency in bilateral trade between Buenos Aires and Brasilia. Brazil's consideration is that this method eases Argentina's shortage of US dollars reserves. Argentina is still considering the proposal.

Xi Jinping said in his speech that through BRICS, global rules are created together by its members. Rules should not be made and dictated by countries with more power than others.

Effectiveness

The addition of six new members should be observed for its effectiveness by analysts. Social observer from South Africa, Gugu Ndima, stated that it cannot be concluded outright that BRICS will compete with Western countries.

Also read: BRICS Needs Saudi Arabia and Indonesia

Indeed, there are now Iran, Russia, and China in it, who are opposed to the United States and its allies. However, other members have a fairly harmonious relationship with the US, especially South Africa, India, and Saudi Arabia.

BRICS is present to diversify the supply chain in the region. Prior to the BRICS Summit, 54 out of 55 African countries signed the African Continental Free Trade Area (AfCFTA). The goal is to diversify and strengthen supply chains in the region. At the same time, these efforts are expected to promote self-sufficiency for each member.

"For developing countries, the standards set by the World Trade Organization (WTO) are mostly unattainable. BRICS is here to establish more grounded standards," said Ndima.

According to him, the effectiveness of BRICS can only be seen from trade among its members. So far, only 7.1 percent of South Africa's exports to BRICS member countries, prior to the addition of six more, are made up of raw materials. There needs to be an effort by BRICS to increase the added value of those exports.

According to White House National Security Advisor Jake Sullivan, the United States does not view BRICS as a geopolitical opponent. The US is closely allied with India, Brazil, and South Africa. The US also continues to strive towards positive relations with China. In regards to Russia, the US is committed to holding them accountable for the attack on Ukraine.

Indonesia's position

Indonesia is still assessing its participation in BRICS. "We want to study it first, and calculate it first. We don't want to rush," said President Joko Widodo in his statement after attending the 15th BRICS Summit held in Sandton Convention Centre, Johannesburg on Thursday (24/8).

The President evaluated that Indonesia's relationship with BRICS member countries is currently very good, especially in the economic sector. However, up until now, Indonesia has not submitted an expression of interest letter that is a requirement for the process of becoming a new BRICS member.

BPMI SEKRETARIAT PRESIDEN

President Joko Widodo encouraged equal and inclusive cooperation during the 15th BRICS Summit held at the Sandton Convention Center in Johannesburg, Republic of South Africa, on Thursday (24/8/2023). BRICS is expected to be at the forefront of advocating for development justice and reforming global governance to be more just.

On that occasion, President Jokowi reiterated the importance of collaboration. "As fellow leaders of The Global South, representing 85 percent of the world's population who want a win-win formula. My presence here is also based on the desire to continue living the Bandung Spirit which is still very relevant to this day, where solidarity, solidarity, and international cooperation need to be continually strengthened," he said.

Also read: Indonesia Takes Advantage of RCEP to Boost Exports

Furthermore, the President has invited developing countries to unite and fight for their rights. "We must reject trade discrimination, and industrial downstreaming must not be hindered. We must all continue to advocate for equal and inclusive cooperation. BRICS can be at the forefront of fighting for development justice and reforming world governance that is fairer," said the President, who is also present as the Chairman of ASEAN.

Political researcher at the National Research and Innovation Agency, Emilia Yustiningrum, explained that, for Indonesia, there is no urgent situation that requires joining BRICS. Indonesia has joined 500 international organizations, majority of which are unproductive, so Indonesia is now very careful in weighing the benefits and drawbacks of joining an entity.

"The consideration of Indonesia is that bilateral relations and free trade agreements with each BRICS member continue to increase without the need to become a member," he said.

Emilia stated that Indonesia, along with China, Russia, Saudi Arabia, Brazil, India, and Argentina, is a member of the Group of 20 (G20), which is comprised of the world's largest economies. Indonesia is also a member of the Regional Comprehensive Economic Partnership (RCEP), the Organization of Islamic Cooperation, and the Asia-Pacific Economic Cooperation (APEC), which overlaps with the 11 members of BRICS.

The principle of Indonesia, according to Emilia, is that all competition must be resolved through cooperation and collaboration that aims to generate mutual benefits.

In economic cooperation, Indonesia always considers various options without leaving one party behind. Emilia explained that BRICS is indeed attractive to developing countries because it offers loan schemes that are not as strict as those from Western countries or institutions. For some countries, BRICS is a gateway to accessing global cooperation that may be difficult to achieve if they act alone.

"If Indonesia wants to join BRICS, the government will definitely form a study team to ensure that this is the right decision. Even joining RCEP takes seven years of in-depth analysis," he said. (DNE/INA)