Over the past couple of weeks, we have seen much news about Indonesia facing a significant, confusing decision regarding joining international economic organizations or forums. As of right now, Indonesia has been given 3 options of which prominent economic organizations they should prioritize to be members of. Those are the BRICS (Brazil, Russia, India, China, and South Africa), then the OECD (Organisation for Economic Co-operation and Development), and the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership). Each of these organizations had their own challenges and their own opportunities for Indonesia itself, and each of these organizations that Indonesia could choose reflects how Indonesia’s foreign policy goals and economic partners will be. Indonesia has shown some signs of interest and consideration between these three organizations, with even some organizations already giving an open welcome to Indonesia. But still, Indonesia has not made any clear choice and left this whole situation on a cliffhanger, wondering what will be the next move for their decision. In this essay, I will highlight or showcase each of the organizations that Indonesia still decides for and the future impact it might cause for Indonesia.

The Choice

Firstly, with the BRICS, we can see how Indonesia has strengthened its ties with some of the leaders of BRICS countries to show interest in joining their organization. Even the Indonesian Foreign Minister, Sugiono (2024), stated that BRICS could serve as a bridge to connect between the developed and developing countries, aligning with Indonesia’s vision on foreign policies. However, there are some potential risks that could affect Indonesia if they wanted to join the BRICS. The main problem Indonesia is facing will be the dynamic within the organization itself; we can see this from the different political spectrum of India’s democracy with Russia and China’s authoritarian regime (Kaloko, 2024). This dynamic composition could cause geopolitical conflicts that worsen the condition of Indonesia without receiving any economic benefits at all (Yohanes, 2024). Not only that, it could also affect the trade relations between western countries and Indonesia. This could happen because if we become a part of BRICS, the intensity of our trade with China will automatically become stronger (Rueland, 2023).

In contrast to BRICS, there is the OECD, which is a collective group of developed economic countries that focuses on promoting policies that aim at improving the economy and society around the world. Indonesia has been pursuing becoming a member of OECD since 2022, and recently they are trying to initiate a formal discussion regarding its membership (Basyari, 2024). One of the reasons Indonesia is attempting to become an official member of the OECD is because many nations consider it to be a “rich exclusive club of first world countries.”. From that, Indonesia could receive multiple benefits, such as insights into economic policies and governance that align with Indonesia’s foreign policies (Ghifari, 2024). There’s also a long-term positive impact that Indonesia could receive. It’s the credibility on the global stage that could make Indonesia be viewed as a high-standard country with promises of great economic policies and governance, and by this we could attract potential future foreign investments. But there is a difficult commitment that Indonesia must fulfill in order to achieve the criteria set by the OECD itself (Nurfitra, 2024). Indonesia must fully reform their economic system by abolishing poverty and improving their public welfare through fixing their practices. These commitments could not easily be achieved in a couple of years because Indonesia itself is still a developing country with a relatively stagnant average economy. Which means it will be a long process needed for major changes and support in order to improve Indonesia’s economy first (Muaqaffi, 2024).

There’s also one more organization that has caught Indonesia’s attention for a couple of months; it’s the CPTPP, which is an organization based in the Asia-Pacific region that focuses on trade agreements with several countries across the Asia-Pacific region and aims to reduce trade barriers between countries. If Indonesia joined CPTPP, it could significantly enhance Indonesia’s trade relations with multiple countries while also exploring new market areas (Mahardika & Nugroho, 2024). However, Indonesia must also take careful consideration of potential impacts that could happen, especially with their economic sovereignty (Jayanty, 2024). We must understand that CPTPP is an organization that’s perceived to be a counterbalance for China’s soaring economic trading influence in the Asia-Pacific region (Stephens & Stephens, 2024).

Conclusion

From what we have seen, Indonesia’s attempt to pursue membership in all of the economic organizations really shows its strategic ambition to enhance their global economic partnership, especially on a global scale. Each of these organizations had to offer their own advantages and risks and must realize that they must take their decision path very carefully, choosing options, as it could affect their diplomatic ties with other countries. Especially, we know that Indonesia has held their long-standing policy about the non-aligned movement and the principle of sovereignty in international relations (Kaloko, 2024). This sole decision not only could impact the economic future of Indonesia but also could impact the role of Indonesia on the global stage amidst conflicts and tensions between major superpower countries like China, America, India, and Japan. We can see this example in real time from the trade wars in the Asia-Pacific region that are still ongoing between China and the United States. By this, we could utilize this momentum to show that Indonesia is capable of playing a major role as the mediator for this conflict to create a global peace and stability (Febiola & Hantoro, 2024).