Earlier, US President-elect Donald Trump threatened to impose a 100% duty on imports of goods from BRICS countries if they continued efforts to develop an alternative to the US dollar, but Indonesia joined the bloc despite the threats, according to bne IntelliNews.
Muhammad Zulfikar Rakhmat, Director of the China-Indonesia Desk at Celios (Centre of Economic and Law Studies), urged the Indonesian government to stay vigilant against potential threats from Trump, as he previously followed through on his statements.
This would cause a sharp decline in export volumes, particularly for products heavily reliant on the US market.
If tariffs are imposed, Indonesia’s economy could face instability over the short to medium term. Trump’s re-election also risks escalating the trade war between the US and China.
Celios Executive Director Bhima Yudhistira also said Jakarta should develop partnerships with other BRICS countries rather than China. If Indonesia focuses on China, its membership in BRICS will only reinforce Beijing’s dominance.
Researcher Yeta Purnama urged the Indonesian government to co-operate on green investment and develop green capital markets.
Multilateral cooperation has its benefits, but if it revolves around the same economic circle, any downturn in a dominant member’s economy, such as China, could undermine domestic economic stability.
On Tuesday, Indonesia’s Foreign Ministry (Kemlu) described the country’s BRICS membership as a reflection of its active engagement in global issues and its commitment to promoting multilateral dialogue.
Indonesia sees its BRICS membership as a strategic step to enhance collaboration and cooperation with other developing countries based on principles of equality, mutual respect and sustainable development.
The move underscores Indonesia’s burgeoning influence on the world stage. It also raises the issue of the country’s development within BRICS and the wider global economy.
