Jakarta. An American business lobby said Tuesday that Indonesia’s membership in the China and Russia-led BRICS grouping had little to no impact on US companies’ interest in investing in the Southeast Asian nation.

Indonesia’s membership in BRICS has sparked worries as it could potentially provoke the United States. BRICS, which is now a bloc of 10 nations, also brings together Brazil, India, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE).

The US -- a global economic superpower and a large source of Indonesian foreign direct investments (FDI) -- has just witnessed BRICS’ top critic Donald Trump return to the White House. Trump had previously threatened to slap 100 percent tariffs on US-bound goods that come from BRICS nations should the group create a rival currency to the dollar. He repeated the tariff threat again just shortly after taking his oath of office.

Despite Trump’s tough stance on BRICS, American companies appear to not share his concerns, according to the US-ASEAN Business Council (USABC). 

“In the discussions I have had with USABC companies, they are not too worried [about Indonesia being in BRICS]. Companies sometimes want to diversify. So they don’t see any direct, financial impact,” Brian McFeeters, the senior vice president and regional managing director at USABC, told reporters in Jakarta. 

“No issue that I have heard from the companies so far,” he added.

Government data shows that the US ranked Indonesia’s fourth-largest FDI in January-September 2024, reaching $2.8 billion. Its top rival China was Indonesia’s third biggest investor in that period. Chinese investments at the time totaled almost $5.8 billion.

The USABC’s official website shows that the council’s members include a wide range of American large corporations such as oil giant Freeport-McMoran. Its subsidiary Freeport Indonesia mines one of the world’s largest copper and gold deposits in Papua.

The USABC also lists tech giant Apple as one of its members. Apple is planning to set up a production facility for its tracking device AirTag in Batam. However, according to Industry Minister Agus Gumiwang Kartasasmita, the AirTag facility would not count as a locally-made part that could let Apple sell its iPhone 16 in Indonesia. The Southeast Asian country has imposed a sales ban on the iPhone 16 as it has not met the domestic content rules.