Indonesia Joins BRICS: US Official Hartarto Shares Insights
Indonesia’s decision to become an official member of the BRICS group has drawn attention globally, with insights from US official Hartarto shedding light on the dynamics behind this strategic move. Coordinating Minister for Economic Affairs, Airlangga Hartarto, recently revealed key details during the BNI Investor Daily Round Table in Jakarta.
Key Details Unveiled
During President Prabowo Subianto’s visit to the White House on December 12, 2024, Indonesia’s stance on joining BRICS was clearly communicated. Hartarto emphasized that the United States has a comprehensive understanding of Indonesia’s decision, indicating a positive reception from the US side.
Moreover, the White House’s support for Indonesia’s bid to join the Organisation for Economic Co-operation and Development (OECD) underscores the strengthening bilateral economic relations between Indonesia and the US through the Indo-Pacific Economic Framework (IPEF). President Prabowo has ratified three out of four pillars of the IPEF, solidifying cooperation in key areas.
Strategic Steps Amid Geopolitical Shifts
As global dynamics between the US and China evolve, Indonesia has strategically positioned itself to safeguard its interests. Participation in the Critical Mineral Alliance and potential expansion to include key allies like Canada and Australia demonstrate Indonesia’s proactive approach to securing its place in the global economic landscape.
Additionally, Indonesia’s appointment by the US as one of the countries authorized to develop a semiconductor ecosystem presents a significant opportunity for the nation to enhance its role in the technology supply chain. This strategic move aligns with Indonesia’s broader economic goals and aspirations for technological advancement.
Challenges and Opportunities Ahead
Despite these positive developments, Indonesia faces challenges in accessing the US market, with tariffs impacting key export sectors such as garments and footwear. The imposition of import tariffs ranging from 10 to 20 percent poses hurdles for Indonesian goods, contrasting with Vietnam’s zero-tariff advantage in the US market.
Hartarto’s insights provide valuable context on Indonesia’s diplomatic and economic strategies, offering a glimpse into the complex interplay of global trade dynamics and regional alliances. As Indonesia navigates these challenges and opportunities, its partnership with the US and participation in key initiatives like BRICS signal a forward-thinking approach to economic growth and cooperation on the world stage.
