Jakarta. President Prabowo Subianto landed in New Delhi for the BRICS Summit late Friday local time, as local currency talks gain momentum in the China-backed bloc.

Indonesia has only been a full member for almost two years. Russian President Vladimir Putin, whom Prabowo had just met last week, is attending the talks. His Iranian counterpart Masoud Pezeshkian is also joining the conference, with the US war versus Tehran set to be a major elephant in the room. Fellow BRICS economy the United Arab Emirates (UAE) had faced the brunt of the retaliatory Iranian missile strikes for hosting an American military installation.

Susiwijono Moegiarso, the secretary at the Economic Affairs Coordinating Ministry, revealed the group would push for local currency settlement.

Countries have been trying to cut their dependence on the US dollar by pursuing deals that let them trade in their respective currencies. The same goes for Indonesia, although its current reach remains Asia-heavy. 

“Under India's chairmanship, BRICS will discuss a wide range of issues, ranging from economy, trade, … as well as local currency settlement, … and the push for a transparent and rules-based trade,” Susiwijono said on Saturday.

BRICS finance and central bank chiefs had already met to discuss the pivot to local currencies ahead of the leaders’ gathering.

According to Bank Indonesia governor Destry Damayanti, BRICS now has a “strategic opportunity to turn multiple challenges into more concrete partnership”.

“This includes the use of local currency in transactions and cross-border payment connectivity [in a process] that pays attention to each country’s development and national priorities,” Destry said. 

Indonesian businesses are already settling their payments in either rupiah or the renminbi when trading with China. Jakarta is now negotiating with New Delhi to link their QR payment systems.

The rupiah has been free-falling against the dollar; hence, such mechanisms can ease the greenback pressure.

Sergei Tolchenov, an envoy from BRICS founding member Russia, recently told the press that Jakarta’s fears of Western secondary sanctions had hampered any possible QR payment linkage. The European Union had already slapped sanctions on an Indonesian port for allegedly helping Russian crude move past the oil price cap.

BRICS brings together Brazil, Russia, India, China, and South Africa, a combination that gives the group its acronym. In 2024, the bloc — which analysts have named as an attempted counterweight to the West — brought Egypt, Ethiopia, Iran, and the UAE into its fold. Jakarta secured its seat the following year. The club made up nearly half of the world’s population and around 40% of the global gross domestic product.

Add as a preferred source on Google +