Indonesia Joins BRICS: Technology Export Restrictions and Their Consequences

Indonesia's inclusion in the BRICS can be seen as the first step to take advantage of geopolitical momentum.

Indonesia’s inclusion in the BRICS membership can be seen as the first step to strengthen Indonesia’s role as a country that can connect to the interests of developed and developing countries as well as the form of foreign policy that has been pursued and maintained. Indonesia’s inclusion in the BRICS can be seen as the first step to take advantage of geopolitical momentum; at the same time, it is a strategic challenge for Indonesia, considering that the issue of threats from the United States (US) is starting to emerge, especially in technology issues, the problem that the US will impose tiered restrictions on the export of artificial intelligence chips. Besides that, Indonesia’s participation in BRICS can also affect Indonesia’s relations with western countries. Indonesia needs to take strategic steps to deal with this geopolitical dynamic. The emphasis is on the need for a balance of diplomacy, domestic policies that support technological development, and wise international cooperation.

Indonesia’s joining the BRICS, if viewed as a positive step, can be a positive encouragement to take advantage of the initial momentum of creating and developing its technology through the use of access to more affordable technology, especially from China and India, which have a significant technology production capacity. This is Indonesia can be used to meet technological needs and can encourage an increase in economic indices and build an alternative way out of the threat sanctions regime. However, it still needs to strengthen regulations, strong political commitment, appropriate communication strategy steps, and practical cooperation to face challenges while maximizing available opportunities. Considering that current regulations may not be fully ready to support technology development, Indonesia needs to update rules that are more adaptive to technological developments and global markets.

It is necessary to strengthen domestic regulations by being more open to the development of new technology industries, such as AI, blockchain, and technology to encourage the transition to renewable energy, for example, by developing regulations that support foreign technology investment in Indonesia on the condition of technology transfer and providing incentives to local companies that invest in technology research and development (R&D), as well as cybersecurity needs to be improved.

Indonesia must overcome the limitations of domestic technology infrastructure to compete in the global market, both with the BRICS and Western countries, because Indonesia is still experiencing technological and infrastructure constraints. In addition, it is also necessary to reform the technology education and training sector so that human resources are more prepared, and stronger education in the field of technology and the development of digital skills are needed to support the adoption of new technologies. Diversifying trading partners or expanding trade cooperation with more countries is necessary to maintain economic stability and reduce risks in the event of tensions or changes in trade relations with certain countries. Due to geopolitical restrictions and limited trade policies, Indonesia must navigate increasingly complicated technology export and import requirements.

Indonesia’s membership in BRICS makes geopolitics one of the key factors in shaping global technology trade policies, opening up opportunities to strengthen the bargaining position in the global economy. However, it is also risky for Indonesia because it can be considered inclined to certain blocs, such as the BRICS, which consists of Brazil, Russia, India, China, South Africa, and the countries of the Global South. This could invite pressure from Western countries, especially the United States, the European Union, and its allies such as G7 members Canada, Japan, the United Kingdom, Germany, Italy, and France, as well as security alliances such as NATO (North Atlantic Treaty Organization) which have significant consequences interest in maintaining geopolitical dominance and global technology trade. Tensions between Western countries and the BRICS could force Indonesia to take a sensitive position, especially in the event of an escalation of the conflict, especially regarding technology.

The geopolitical dynamics of the influence of BRICS on technology export restrictions for Indonesia have significant consequences if the right strategy is implemented. Indonesia’s attitude towards BRICS can:

–     Harnessing geopolitical momentum to strengthen technological independence.

–     To be an essential player in the global supply chain.

–     Strengthening its position as a country that bridges the interests of developed and developing countries.

In addition, Indonesia’s accession to BRICS also invites geopolitical challenges that can trigger the assumption that Indonesia will lean towards the bloc of developing countries, which has the potential to provoke pressure from Western countries. To mitigate this, Indonesia needs to maintain a free and active foreign policy stance and diplomatic balance to continue cooperating with all parties. Indonesia can take a stance not entirely siding with certain blocs but use this BRICS membership to expand economic and trade networks, rally support for global development issues, such as technology, food security, and energy transition, and fight for the reduction of inequality between developed and developing countries.

So that the geopolitical momentum of Indonesia’s entry into BRICS membership can be built as an opportunity to focus on Indonesia’s technological and economic independence to access more affordable technology, especially from China and India, increasing collaboration in the high-tech sector, including for the development of new and renewable energy which is currently still a challenge, utilizing infrastructure funding from the New Development Bank (NDB) and The Contingent Reserve Arrangement (CRA), the development bank of the BRICS, but also needs to ensure that the NDB and CRA can replace the role of the International Monetary Fund (IMF) or the World Bank, considering that the dependence on the US dollar is quite dominant, stability and trust have been built for decades. On the other hand, political uncertainty still affects confidence in the stability of the new currency. Therefore, it is necessary to cooperate to strengthen the capacity of financial institutions more closely among BRICS members.

Wulan Fitriana
Wulan Fitriana
Wulan Fitriana is a researcher with a background in Business Law. She holds a Master's degree in Law from Universitas Gadjah Mada, Indonesia, and focuses on legal frameworks for energy transition and climate change policy. Currently, Wulan is a PhD candidate and a researcher at the NHRG Research Group, Power System Laboratory, Bandung Institute of Technology . She is passionate about exploring the intersection of law, business, and sustainability in addressing global challenges.