Indonesia leads the way as Southeast Asia enters BRICS
4 Aug 20259 min read
Summary
- Indonesia joins BRICS to deepen ties with Global South partners and access alternative financial tools like the New Development Bank. This aligns with its dual foreign policy—maintaining Western relations while diversifying partnerships, especially for infrastructure and trade.
- Indonesia’s accession and the partner status of Malaysia, Thailand, and Vietnam mark a shift in ASEAN’s role toward a multipolar order.
- BRICS expansion could restructure Southeast Asian supply chains by increasing reliance on China-India trade routes and infrastructure projects.
Now Indonesia is officially the first Southeast Asian nation to join BRICS as a full member. The move comes after Indonesia, Malaysia, Thailand, and Vietnam were invited last October to become “BRIC” partner countries, a status newly created at the Kazan summit. That invitation creates a pathway for full membership in the economic bloc and positions ASEAN countries closer to a multipolar world order.
Economic and trade implications
ASEAN’s increasing role in BRICS has profound economic implications. BRICS, which already contributes nearly 30% of global GDP, offers ASEAN nations an alternative economic framework that reduces dependency on Western-dominated institutions.By aligning with BRICS, ASEAN countries gain increased access to major economies outside the traditional Western markets. Trade with China, Russia, India, Brazil, and South Africa is expected to increase, potentially cutting into US and European markets. This may especially benefit the manufacturing, agriculture, and energy sectors, where ASEAN nations enjoy strong competitive advantages.Indonesia, for example, has major exports such as palm oil, coal, and nickel that could see expanded trade agreements with BRICS nations. Vietnam’s growing electronics and technology sector may also benefit from increased investment flows and partnerships with BRICS countries, particularly in digital infrastructure.
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