BREAKING NEWS:
Details

Indonesia Joins the BRICS Club: Shaking Up the Global Economy

by Bobby Mimmo

Well, there's some big news in the world of global economics—Indonesia has officially joined BRICS, now including Brazil, Russia, India, China, and South Africa, plus new members like Saudi Arabia and Egypt. And that's not all; with the recent addition of Indonesia as a member and 13 countries joining as partners—namely Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam—BRICS is underlining its strategy of expansion this year. Including these recently added partner states, the BRICS countries now account for 46% of global GDP and 55% of the world's population. This move could seriously shake things up in the world economy, especially with talks of creating their own money, backed by gold, no less.

Why Indonesia in BRICS Matters

Indonesia isn't just any country; it's the economic heavyweight in Southeast Asia with over 270 million people. It's also strategically located, kind of like the bridge between Asia and Australia. By joining BRICS, Indonesia's not just adding numbers; it's bringing a whole lot of economic muscle and resources to the table.

Indonesia's always been about keeping its options open, not aligning too closely with any one power, but this move? It's a clear sign they want to play a bigger role in how the global economic game is played.

What Does This Mean for Everyone Else?

With Indonesia in BRICS and these 13 nations joining as partners, the global economic landscape could see some significant shifts:

  • Less Love for the Dollar: BRICS has been talking about moving away from using the US dollar for everything. With Indonesia in the mix and these partner countries, this idea might gain even more steam, especially since they’re keen on using local currencies for trade. Take, for instance, Brazil and China, who agreed to a policy to trade directly using their own currencies, ditching the dollar for transactions. This could set a precedent for other BRICS and partner countries.
  • Gold-Backed Cash: Now, this is the juicy part. Imagine if BRICS succeeds in launching a currency backed by gold. It's like saying, "Hey, our money's as good as gold," literally. This could make their currency super stable, unlike the ups and downs we see with regular money. But, it's not without its headaches:
    • Matching Economic Levels: Everyone in BRICS and its partners is at different economic stages, so deciding how much gold equals what could be a headache.
    • Gold Hoarding: You need a lot of gold for this plan, and while some countries have been stockpiling, it's still a big ask.
    • Building Trust: Creating a new currency that people actually trust and want to use takes time and a lot of convincing.

If they pull this off, it could mean more trade within BRICS and among the partner countries without worrying about currency swings, which is great for countries like Indonesia with all those resources to export.

The Challenges and the Cool Stuff

Not everything's going to be smooth sailing. Indonesia will need to juggle its own economic policies with what BRICS wants, making sure local businesses aren't left out in the cold. Plus,
with such a diverse group, there's bound to be some friction, but also lots of opportunities:

  • Tech and Infrastructure: Indonesia could tap into BRICS' resources for new tech and building projects, maybe even through the New Development Bank, which is their way of saying, "We don't need Western banks."
  • Regional Growth: Joining BRICS could help Indonesia push its own vision of becoming a golden economy by 2045, by fostering more regional cooperation and development.

Indonesia joining BRICS and these 13 countries' partners is like watching new players enter a high-stakes game, potentially changing how we think about money, trade, and power on the global stage. The move by Brazil and China to trade directly in their own currencies is a taste of what's possible, and the idea of a gold-backed currency could be revolutionary. But it's going to be a complex journey.

As we watch this unfold, one thing's for sure: the global economic landscape is in for some interesting times, which could spell trouble for the US dollar!