In a significant move, Indonesia has officially joined the BRICS bloc, which includes Brazil, Russia, India, China, and South Africa. This expansion marks a new chapter for the bloc, as Indonesia brings its vast natural resources and growing technological prowess to the table.
Indonesia’s Vast Reserves of Nickel, Oil, and Gas
Indonesia is a powerhouse when it comes to natural resources. The country holds the largest nickel reserves in the world, accounting for a significant portion of global production. This makes Indonesia a crucial player in the global supply chain for electric vehicle batteries and other high-tech applications.
Nickel smelter in Sorowako, Indonesia. Credit: Marcelo Coelho, courtesy of Vale
In addition to nickel, Indonesia has substantial oil and gas reserves. With approximately 2.5 billion barrels of proven oil reserves, Indonesia is a key player in the energy sector. The country’s oil and gas industry is poised to benefit from increased investment and collaboration within the BRICS framework.
The Highly Developed Microchip Industry
Indonesia is also making strides in the semiconductor industry. The country has been working to establish itself as a hub for microchip production, leveraging its natural resources and strategic partnerships. This development is part of Indonesia’s broader vision to become a major player in the global technology landscape.
The Global South’s Role in Reshaping the World Economy
The inclusion of Indonesia in BRICS is a testament to the growing influence of the Global South. Historically dominated by the USA and other Western powers, the global economy is now witnessing a shift towards a more multipolar world. The BRICS nations, with their combined economic might and diverse resources, are well-positioned to challenge the traditional economic order and promote a more inclusive and equitable global economy.
Outlook on BRICS Cooperation with President Donald Trump
As Donald Trump takes office today, the dynamics between the BRICS nations and the USA will be closely watched. Trump’s administration has already signaled a tough stance on trade, with threats of imposing tariffs on BRICS countries if they pursue alternatives to the US dollar. However, the BRICS bloc remains committed to exploring new payment systems and strengthening economic cooperation among its members.
Despite potential challenges, there is room for collaboration. The BRICS nations and the USA could find common ground in areas such as infrastructure development, technology transfer, and addressing global challenges like climate change. The future of BRICS-USA relations will depend on the willingness of both sides to engage in constructive dialogue and mutual respect.
