Jakarta –
Indonesia’s relations with the BRICS country group are getting tighter. Today, Indonesia declared itself to become a member of the New Development Bank (NDB) which is a development bank made by BRICS.
BRICS is a developing country group with membership consisting of Brazil, Russia, India, China and South Africa (South Africa). Indonesia follows Iran, Saudi Arabia, United Arab Emirates, Ethiopia, and Egypt as new members.
One of the BRICS policies is to encourage a reduction in the use of US dollars (US) alias dedolation. So, with the increasingly close relationship of BRICS how did Indonesia view the dedolation policy?
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Minister of Finance Sri Mulyani Indrawati opened his voice about this matter. It will still continue to monitor the impact of dedolation to the Indonesian economy.
“Later I will see, later,” he said briefly when asked about the government’s view of the Dedolarization policy at the Presidential Palace Complex, Central Jakarta, Tuesday (3/25/2025).
Indonesia has actually carried out many policies such as dedolation. Member of the National Economic Council (DEN), Mari Elka Pangestu once revealed that so far he has the same initiative, reducing transactions with the US dollar.
Indonesia already has a Local Currency Settlement (LCS) policy with several countries, one of which is with China. This effort was carried out well before Indonesia became a member of BRICS.
“Actually, we already have such initiatives. Like LCS, Local Currency Settlement, for example we want to trade with China, we don’t need from rupiah to new dollars to Yuan. We actually can now be from rupiah to Yuan,” said Mari at the Presidential Palace Complex, Central Jakarta, Tuesday (7/1/2025) ago.
Let’s declare Dedolarization is indeed the main agenda of BRICS. However, according to him until now transactions that do not use US dollars in the world are still small, meaning that this movement is still not enlarged and it is impossible to be greater.
Let’s continue with the entry of Indonesia as a member of BRICS there is indeed a possibility that it can accelerate the policy of reducing the use of US dollars. It’s just that in the near future, let’s believe the US dollar is still quite dominant in the world.
“So actually the processes are already running. Will Brics help for it to be accelerated? It is possible, but it will take time, because in reality the dollar is still dominant in the transaction or in holding assets,” said Mari.
(HAL/ARA)
