Jakarta. Luhut Binsar Pandjaitan, a senior economic advisor to President Prabowo Subianto, said Thursday that BRICS newcomer Indonesia is “too big” to lean on any country, saying that Jakarta should not worry about ruffling US’ feathers by joining the alliance that includes China.

Indonesia’s freshly announced BRICS membership has been making headlines due to the opportunities and risks that it may bring. BRICS originally brought together Brazil, Russia, India, China, and South Africa who all formed the bloc as a counterweight to Western dominance. Last year, BRICS expanded with Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE). 

Most recently, Indonesia officially became a full-fledged member after a “probation period” of almost three months. Indonesia’s new status caught attention with experts commenting on the possible opportunities and risks it may bring. The membership has sparked fears that it might take a toll on Jakarta’s ties with Washington, especially with now US President-Elect Donald Trump just days away from being inaugurated.

“We are a sovereign and large country. … I remember saying back then that Indonesia is too big to lean on any country. I was referring to the US and China back then. We don’t need to do so [rely on others], especially now that we have a president like Mr. Prabowo Subianto,” Luhut said in Jakarta in response to the press’ question on BRICS membership.

“We have to be independent, but there is nothing wrong with being a bit rebellious by showing that we have a say on things. If you ask about the benefits [of joining BRICS], well it will expand our export market,” Luhut said.

Government data shows that China is Indonesia’s top bilateral trading partner, both overall and within BRICS. Indonesia-China trade amounted to nearly $108.9 billion in January-October 2024. But the membership opens doors for Indonesia to tap into non-traditional markets within BRICS. Bilateral trade with South Africa stood at $2.1 billion over the same period -- only a small fraction of what Jakarta had secured with China. Indonesia-Egypt trade totaled $1.4 billion in 2024 as of end-October.

Luhut, who chairs the National Economic Council, said that his team had been monitoring the situation that is unraveling across the globe. This includes the looming energy crisis in Europe. Kyiv recently refused to renew a deal that had enabled Russia to export its natural gas to Europe via Ukraine. BRICS member China is witnessing an economic slowdown.

“Not to mention the high uncertainty surrounding Trump’s tariff threats. This combination of problems becomes something that we are really keeping a close eye on before giving our recommendations to Mr. President," Luhut said.

Trump plans on raising the tariffs on Chinese goods once he returns to the White House. The businessman-turned-politician has threatened to slap 100-percent tariffs on the BRICS alliance should they create a rival currency to the dollar. 

At present, Indonesia has witnessed some progress in its attempt to move away from the dollar. It has established local currency settlement frameworks with economies like China, allowing Jakarta to use the rupiah or yuan in bilateral trade. BRICS is synonymous with its quest to de-dollarize the international market. Luhut’s aide Septian Hario Seto commented on BRICS’ de-dollarization agenda, saying that Indonesia would put its national interests first in whatever it does. 

“Well, if de-dollarization is against our national interest, why would we be part of it? Indonesia joins BRICS because of its national interests. The same goes for the US-initiated Indo-Pacific Economic Framework [IPEF],” Seto told the same press briefing.

The IPEF is a separate economic grouping that represents 40 percent of the world’s economy. Its members include Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Vietnam. The group aims to catapult growth for its member economies.

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