In News:

In January 2025, Indonesia officially joined the BRICS group as its 10th member, signaling the expansion of this influential coalition of emerging economies. The addition of Indonesia, a Southeast Asian powerhouse, strengthens BRICS' global position and highlights the group's evolving dynamics.

BRICS Overview:

BRICS (Brazil, Russia, India, China, South Africa) is an informal intergovernmental group that fosters cooperation among major emerging economies. Initially coined as BRIC by economist Jim O'Neill in 2001, the group became BRICS in 2010 with the inclusion of South Africa. The bloc has grown steadily, with Indonesia now joining as its 10th member.

Recent Expansion:

• In 2023, invitations were extended to Saudi Arabia, Iran, UAE, Egypt, Ethiopia, and Argentina.
• By 2024, Iran, Egypt, Ethiopia, and UAE had joined as permanent members.
• Indonesia's membership was finalized in 2025, following its presidential elections and government formation.

Key Objectives of BRICS:

• Economic Growth: Promote trade, investment, and infrastructure development.
• Global Governance Reform: Advocate for equitable representation in global institutions like the UN and IMF.
• Cultural Exchange: Strengthen people-to-people connections and cultural ties.
• South-South Cooperation: Foster collaboration among developing nations.

BRICS Structure and Mechanisms:

• New Development Bank (NDB): Established in 2014, the NDB finances sustainable development projects in BRICS countries.
• Contingent Reserve Arrangement (CRA): A $100 billion safety net for financial crises.
• BRICS Academic Forum: Encourages academic collaboration across member states.

Global Influence and Economic Impact:

• Global Share: BRICS+ represents over 45% of the world’s population and 35% of global GDP (PPP-based).
• Strategic Position: The group acts as a counterbalance to the G7, challenging Western-dominated global financial systems.
• Financial Independence: BRICS aims to reduce dependence on the US dollar by facilitating local currency transactions and exploring a common currency.
• Technology Collaboration: Member countries, such as India and China, collaborate on digital payments and renewable energy technologies.

Indonesia’s Entry into BRICS:

Indonesia, the world’s fourth-most populous nation, strengthens BRICS’ representation in Southeast Asia. The country brings a robust economy and extensive trade networks, boosting the group's negotiating power. Indonesia’s membership was approved during the 2023 BRICS Summit and finalized in January 2025.

• Strategic Importance for Indonesia: The membership aligns with Indonesia's goals to enhance global cooperation, particularly with the Global South. It also reflects Indonesia's growing influence in international trade and geopolitics.

BRICS Challenges:

• Diverse Interests: Differences in economic priorities, such as India's ties with the US and Russia-China’s geopolitical rivalry, complicate consensus-building.
• Geopolitical Tensions: Disputes like the China-India border issue and Russia’s sanctions limit BRICS' ability to present a unified stance.
• Economic Sanctions and Internal Challenges: Countries like Russia face Western sanctions, while domestic issues in Brazil and South Africa divert attention from regional collaboration.

Significance of BRICS’ Expansion:

The expansion of BRICS marks a pivotal shift in global power dynamics, with a focus on South-South cooperation and equitable global governance. Indonesia’s membership further solidifies the group’s influence in Southeast Asia and adds to its efforts to challenge the dominance of Western-led financial institutions.

• Local Currency Use: The group promotes the use of local currencies for trade to reduce reliance on the US dollar.
• Global South Advocacy: BRICS champions the cause of developing nations, ensuring that emerging economies have a voice in global governance.

Recent and Upcoming BRICS Summits:

• 16th BRICS Summit (2024): Held in Kazan, Russia, with a focus on strengthening local currencies and promoting non-dollar transactions.
• 17th BRICS Summit (2025): Scheduled for July 2025 in Rio de Janeiro, Brazil, under the theme "Global South," with an emphasis on payment gateways to facilitate intra-BRICS trade.