President Donald Trump was sworn in on January 20, officially returning to the White House as the 47th president of the United States. In his inaugural address, President Donald Trump vowed to impose tariffs and taxes on foreign goods instead of American citizens. He also pledged to immediately overhaul Washington's trade system.
A month before taking office, Mr Trump threatened to impose 100% tariffs on BRICS members if they tried to weaken the dollar. BRICS currently comprises Brazil, Russia, India, China, South Africa, Egypt, Iran, Ethiopia, the United Arab Emirates (UAE) and Indonesia.
It is too early to know whether Donald Trump will actually impose tariffs. But Sergei Tolchenov, Russia’s ambassador to Indonesia, said BRICS would stand firm against the pressure as the group continues to push for the use of national currencies among its members.
"It is an internal matter for BRICS to resolve financial issues, whether by establishing a currency or making cross-border payments. I believe that BRICS is strong enough to withstand threats," Ambassador Tolchenov emphasized in an exclusive interview with The Jakarta Globe on January 21.
Ambassador Tolchenov said BRICS is focusing on using more national currencies rather than creating an entirely new one. Russia is pursuing local currency settlement agreements with BRICS members after Western sanctions kicked Russia out of the SWIFT international payment system.
Russia currently trades in local currencies with India and China, and is in talks to reach a similar deal with Indonesia.
Russia also wants Indonesia, a new member of BRICS, to have a similar attitude, to be strong enough not to succumb to pressure from any country or any non-BRICS country - Ambassador Telchenov told the Globe.
Deputy Chairman of the Indonesian National Economic Council (DEN) Mari Elka Pangestu recently told reporters that a shift away from the US dollar is inevitable in international finance. However, despite the de-dollarization process with the increase in settlements in local currencies, Mari Elka said that the US dollar still dominates global transactions.
Indonesia and the US have a comprehensive strategic partnership since November 2023. Official government figures show that Indonesia-US trade turnover reached 34.9 billion USD from January to November 2024, of which Indonesia had a surplus of 12.8 billion USD.
