The fact that Indonesia becomes a BRICS member does not mean that the country supports the group's US dollarization program, Permata Bank's chief economic expert Josua Pardede, said.
According to him, the decision to join BRICS aims to further expand the trading partnership and consolidate the position of this Southeast Asian nation in the international arena.
Josua explained that the Indonesian government is encouraging the local currency transaction program (LCT) to reduce the dependence on the dollar in international trade. However, he emphasized that the complete abandonment of the US dollar is not in the overall strategy of this country.
"We participate in BRICS not to support China and Russia's non -US dollarization, but to expand its trading partners. The plan to not always depends on the dollar " - Mr. Josua spoke in a discussion about the exchange rate fluctuations in the context of global instability in Indonesia Bank of Aceh province last weekend.
Josua also rejected speculation that Indonesia will follow China and Russia in creating a single currency to replace the dollar. He noted that Indonesia's focus is to offer more options for business worlds, rather than changing the role of USD in the global financial system.
"China and Russia have the goal of creating a special currency to replace the dollar but Indonesia has no intention of going in that direction" - he affirmed.
Therefore, Indonesia still leaves many opportunities for currency diversification in international transactions, but does not leave the global financial system that is still dominated by the USD. This move is considered a more practical strategy in maintaining national economic stability in the context of global geopolitical fluctuations.
Indonesia officially joined the BRICS group in January 2025. With Indonesia's joining, BRICS has 10 official members: Brazil, Russia, India, China, South Africa, Egypt, United Arab Kingdoms, Ethiopia, Iran and Indonesia.
East Asia Forum pointed out that the decision to join Indonesia's BRICS marked the new chapter in its diplomatic activities. This decision has certainly been accelerated, with all BRICS member countries to admit Indonesia in less than 3 months.
This page said that the process of accepting Indonesia became an official member of BRICS is not only iconic. This shows the recognition of Indonesia's strategic position as the supporting side of the global Southern countries (Global South) and an important partner to promote more comprehensive global governance.
The BRICS member also allows Indonesia to contribute to an alternative economic system. BRICS has highlighted the importance of developing alternatives to traditional currencies in international trade. With experience in promoting local currency transaction programs and cross -border digital payment systems, Indonesia can share good practices to strengthen the global financial structure.
