On January 6, 2025, Brazil, as the rotating chair of the BRICS in 2025, announced that Indonesia became a formal member of the BRICS.

Indonesia's process of joining the BRICS seems to be accomplished overnight, but in fact it has gone through a lot of considerations and preparations. As early as the 15th BRICS Leaders' Meeting held in Johannesburg, South Africa in 2023, Indonesia's candidacy was approved. However, due to domestic political agenda factors, Indonesia decided to advance related matters after the general election. On October 20, 2024, the new government of Prabowo came to power and quickly put the agenda of joining the BRICS on the agenda. Shortly after the new government came to power, Indonesian President Prabowo appointed Foreign Minister Sugiyono to attend the BRICS Kazan Summit held in Russia, during which he formally expressed his willingness to join. On January 1, 2025, Indonesia became a partner country of the BRICS. Therefore, it is a natural thing for Indonesia to formally join the BRICS at this moment.

So, how will this move affect the future international trade pattern, and what cooperation opportunities will it bring to my country's import and export fields? Let's explore it together!

How to influence the international trade pattern

1. Trade scale and market opportunities

• Market access: A huge emerging market has been formed within the BRICS. After Indonesia joins, its companies can more easily enter the markets of other BRICS countries, such as Brazil, Russia, India, China and South Africa. These countries have large populations and diverse consumer demands, providing a broader sales space for Indonesia's goods and services. At the same time, Indonesia also provides new market opportunities for companies in other BRICS countries, promoting the growth of trade scale.
• Opening up of new trade corridors: With the participation of Indonesia, more trade corridors connecting Asia, Africa and Latin America may be created, such as the optimization and expansion of sea transport routes and the construction of land transport channels, which will reduce trade costs, improve trade efficiency and create new growth points for global trade.

2. Trade Structure and Industrial Cooperation

• Resource complementarity and industrial synergy: Indonesia has rich natural resources, such as palm oil, coal, rubber, etc., and other BRICS countries also have advantages in different fields, such as China's manufacturing, India's information technology, Brazil's agriculture and mining, etc. After joining, Indonesia can achieve resource complementarity and industrial synergy with other member countries and promote the optimization and upgrading of the trade structure.
• Cooperation in manufacturing and service industries: Cooperation among BRICS countries in the fields of manufacturing and service industries will continue to deepen. Indonesia can learn from the advanced technology and management experience of other countries to enhance the competitiveness of its own manufacturing industry. At the same time, it can also cooperate with other countries in the fields of finance, logistics, tourism and other service industries to jointly explore the international market.

3. Trade rules and institutional innovation

• Promoting the reform of the multilateral trading system: As representatives of emerging economies, the BRICS countries have been committed to promoting the reform and improvement of global trade rules. After Indonesia joins, the BRICS countries will further enhance their influence in the multilateral trading system, strive for more favorable trade rules and status for developing countries, and promote the establishment of a more fair, reasonable and inclusive global trade order.
• Local currency settlement and financial cooperation: BRICS countries are continuously strengthening their cooperation in the financial field, including promoting local currency settlement and establishing the New Development Bank of BRICS. Indonesia will actively participate in it after joining, which will help reduce dependence on traditional international currencies such as the US dollar, reduce exchange rate risks, and improve the efficiency and security of trade settlement. At the same time, it also provides Indonesian financial institutions and enterprises with more international cooperation opportunities and development space.

Positive aspects for China's foreign trade

1. Export

• Market demand growth: After Indonesia joins the BRICS, economic development is expected to accelerate and domestic market demand will further expand, which will provide more export opportunities for Chinese companies. China's electromechanical products, high-tech products, textiles, clothing, home appliances, etc. are highly competitive in the Indonesian market. With the opening of the Indonesian market and the improvement of consumption capacity, Chinese companies can further expand their market share in Indonesia.
• Industrial cooperation drives exports: China and Indonesia will continue to deepen cooperation in infrastructure construction, energy development, manufacturing and other fields. Chinese companies can participate in Indonesian project construction through investment and contracting projects, thereby driving the export of related equipment, materials and technologies.
• Agricultural product export opportunities: Indonesia is a major producer and exporter of agricultural products, but it still has shortcomings in the processing of some agricultural products and the production of high-end agricultural products. China can use its advantages in agricultural technology and agricultural product processing to export agricultural production materials, agricultural product processing equipment, seed industry, etc. to Indonesia. At the same time, it can also strengthen cooperation with Indonesia in agricultural product quality standards, inspection and quarantine, and promote the export of Chinese agricultural products to Indonesia.

2. Import

• Increased imports of resource products: Indonesia's abundant natural resources are of great strategic significance to China. China is one of the world's largest energy importers. Indonesia's coal, natural gas, palm oil and other resources can meet part of China's energy and raw material needs. With the strengthening of trade cooperation between the two sides, China's imports of resource products from Indonesia are expected to increase further.
• Import of specialty agricultural products: Indonesia's tropical fruits, coffee, cocoa and other specialty agricultural products have certain consumer demand in the Chinese market. After Indonesia joins the BRICS, the degree of facilitation of agricultural product trade between the two sides will be improved. China can further expand the scale of importing specialty agricultural products from Indonesia to meet the diversified needs of domestic consumers.
• Import of manufacturing products: Indonesia also has certain advantages in some manufacturing fields, such as auto parts and electronic products. With the development of Indonesia's manufacturing industry and the improvement of its technological level, Chinese companies can import some cost-effective manufacturing products from Indonesia to enrich the supply of the domestic market.

Conclusion

Looking ahead, the prospects for cooperation between Indonesia and BRICS countries are bright. With the deepening of cooperation, the parties will spark mutual assistance and mutual benefit in more areas, injecting continuous impetus into world peace, stability, prosperity and development.