Information Bulletin of the BRICS Trade Union Forum

Monitoring of the economic, social and labor situation in the BRICS countries
Issue 16.2025
2025.04.14 — 2025.04.20
International relations
Foreign policy in the context of BRICS
BRICS countries approve Joint Declaration with focus on food security (Страны БРИКС одобрили Совместную декларацию с акцентом на продовольственную безопасность) / Brazil, April 2025
Keywords: concluded_agreement, social_issues
2025-04-19
Brazil
Source: brics.br

Priorities include strengthening family farming, combating hunger, and facilitating agricultural trade among bloc members.

Promoting Inclusive and Sustainable Agriculture through Cooperation, Innovation, and Equitable Trade among BRICS was the theme of the Ministerial Meeting held on Thursday, April 4, in Brasília. The event brought together Agriculture Ministers and leaders from the 11 member countries, who approved and signed a Joint Declaration reaffirming their commitment to sustainable agricultural development, food security, and reducing inequalities in rural areas. Signing the declaration symbolizes the group's dedication to concrete, cooperative action. It is a political gesture that reinforces their unity and shared responsibility in pursuing common goals on the global stage.

BRICS countries represent 54.5% of the world’s population, hold one-third of global agricultural land, and possess over one-third of the world’s freshwater resources, according to Brazil’s Ministry of Agriculture and Livestock (Ministério da Agricultura e Pecuária/MAPA). Together, they account for 75% of global agricultural production and are home to roughly half of the world’s 550 million family farms—many of which are run by small-scale producers.

“This data not only reveals the productive and economic strength of the BRICS countries but also their decisive role in the world's agriculture and food security. Meetings like this are a privileged space for dialogue and cooperation, and for building joint solutions,” stated Brasil's Minister of Agriculture and Livestock, Carlos Fávaro.

"We all wish to reach the same level as Brasil regarding food production. Agriculture is a key aspect, and discussing this theme at BRICS is extremely valuable. Coming from a much marginalized and poor continent, such as Africa, where agriculture is not as developed, it is of great importance for us to participate in this process."

Access the full text of the declaration PDF

Focused on food security, sustainability, and facilitating international agricultural trade, the document approved by the ministers represents a landmark for global agriculture, establishing clear guidelines for the 2025-2028 period.

According to South African Ambassador Vusi Mavimbela, BRICS represents a strategic opportunity for exchanging experiences and strengthening cooperation among member countries, particularly in such key areas as agriculture.

"We all wish to reach the same level as Brasil regarding food production. Agriculture is a key aspect, and discussing this theme at BRICS is extremely valuable. Coming from a much marginalized and poor continent, such as Africa, where agriculture is not as developed, it is of great importance for us to participate in this process."

Food Security: Global Alliance against Hunger and Poverty

The first commitment relates to food and nutritional security, with emphasis on ensuring equitable access to quality food for all populations, particularly in times of global crises. The declaration recognizes the importance of the Global Alliance against Hunger and Poverty to promote international cooperation.

The country representatives recognized the essential role of agriculture as a cornerstone for eradicating hunger and reducing social and regional inequalities. Moreover, given that the New Development Bank (NDB) and the International Fund for Agricultural Development (IFAD) are founding members of the Global Alliance, the Declaration encourages both institutions to engage with member countries willing to implement policy instruments and programs related to this theme.

Among the agreed actions are the strengthening of strategic food reserves, investment in storage infrastructure, and the promotion of public policy instruments such as minimum price support and the monitoring of production costs — all aimed at stabilizing access to essential food items. These measures are intended to address price volatility, identified as one of the main challenges to global food security.

The Declaration also includes a commitment that, in exceptional situations affecting any BRICS country —such as food shortages or sudden price spikes— cooperation among members can support emergency responses, grounded in solidarity among the countries.

While respecting each country’s agricultural strategy, BRICS encourages the formation of food stocks, whenever possible, through the purchase of products from small-scale family farming. This approach can help revitalize and develop rural areas, generate income for low-income communities, and promote the value and preservation of local and native food production and consumption.

Family Farming

Regarding small-scale agricultural producers, the Executive Secretary of Brazil’s Ministry of Agrarian Development and Family Farming (Ministério do Desenvolvimento Agrário e Agricultura Familiar/MDA), Fernanda Machiaveli, emphasized the importance of strengthening policies for family farming and reaffirmed the bloc’s role in building a more sustainable and just future for small-scale producers.

She underscored that although the world is experiencing significant technological advancements, it is essential for innovation to reach small-scale agriculture. “Technology must serve to facilitate work in the fields, generate income, and ensure the production of healthy and diverse foods,” she argued.

Among the strategic items highlighted by the secretary and included in the Joint Declaration is the promotion of partnerships among Global South countries aimed at producing machinery and equipment tailored to family farming. The goals, she argued, are to promote dignity, attract young people to rural areas, and accelerate a just transition.

“Family farming is not responsible for the global rise in temperatures, as it does not contribute significantly to greenhouse gas emissions. Yet, it is the sector suffering the most from climate change, precisely because it depends on the climate. In this sense, these producers must be included in the transition process — first, so they can adapt; and second, because they will play a key role in mitigation through carbon sequestration, by adopting increasingly sustainable practices,” said Fernanda Machiaveli. She also emphasized that “family farming has the potential to combine agroecology, sustainable natural resource management, and the conservation of biodiversity by traditional populations.”

Egyptian Ambassador Mai Khalil recalled that the document also addressed the promotion of women’s participation in the agricultural sector, noting that women in rural areas are more vulnerable to food insecurity and malnutrition than men. Empowering women and reducing gender disparities in agriculture and food systems are essential for eradicating hunger, malnutrition, and poverty, as well as achieving Sustainable Development Goal (SDG) 5, which aims to achieve gender equality and empower all women and girls by 2030.

“BRICS countries are committed to addressing the needs of women and vulnerable groups. This concern was reflected in the development of the Joint Declaration, where we emphasized the importance of designing programs to support women in the rural sector, with a particular focus on credit, knowledge, technology, training, and finance,” the ambassador highlighted.

Sustainability and Innovation

Another important argument presented in the Joint Declaration is that BRICS countries have the potential to play a strategic role in the sustainable and inclusive increase of global agricultural productivity through the alignment of their industrial capacities with the needs of small-scale producers, both within the bloc and in other Global South nations. To advance on this path, the document recommends the adoption of investment strategies that foster partnerships among companies and universities in the member countries, promoting the local production of agricultural machinery and the voluntary exchange of innovative technologies adapted to regional contexts.

The Declaration proposes the establishment of a structured financing mechanism, potentially involving international organizations, to support projects focused on soil conservation and the restoration of degraded areas such as mangroves, riverbanks, floodplains, and wetlands. Priority actions include correcting soil acidity, controlling salinization, and investing in research, infrastructure, and technical assistance for agricultural workers and rural landowners. To support the adoption of these practices, the document highlights the launch of the BRICS Partnership for Land Restoration, in alignment with the framework of the United Nations Convention to Combat Desertification (UNCCD).

Fewer Barriers for Agricultural Trade

The third and final pillar of the Declaration focuses on facilitating international agricultural trade, intending to reduce unnecessary barriers, promote transparency, and enable the exchange of agricultural and livestock products among member countries. It also proposes the adoption of digital certification to reduce bureaucracy, mitigate the risk of fraud, prevent falsification, and improve traceability.

Another commitment is the potential establishment of a mechanism to facilitate financing for food imports within BRICS, as a means of providing emergency financial relief to low- and middle-income countries affected by rising costs of food and other essential inputs, such as fertilizers and energy.

“The result of the work carried out during this two-month cycle of intense dialogue is reflected in the Declaration we signed today. It represents a political commitment to our BRICS partners and to the world. Above all, it expresses our shared desire to move forward on what we consider a priority: ensuring that our populations have access to nutritious and safe food,” concluded Rivetla Edipo Araujo Cruz, Executive Secretary of the Brazilian Ministry of Fisheries and Aquaculture (Ministério da Pesca e Aquicultura/MAPA).

2025–2028 Action Plan

The event also marked the conclusion of the 2021–2024 Action Plan for Agricultural Cooperation among BRICS countries and the launch of the 2025–2028 Action Plan, which reflects a more ambitious approach aligned with principles that seek to balance food and agricultural needs with environmental sustainability.

This new plan will operationalize the political commitments outlined in the Declaration, setting goals, deadlines, and concrete initiatives to be submitted for approval at the BRICS Summit, scheduled for July 6–7 in Rio de Janeiro.
Iran, India seek closer agricultural ties at BRICS summit (Иран и Индия стремятся к более тесным сельскохозяйственным связям на саммите БРИКС) / Iran, April 2025
Keywords: brics+, cooperation
2025-04-18
Iran
Source: www.tehrantimes.com

TEHRAN – Iran and India have called for expanded cooperation in agriculture during a meeting on the sidelines of the BRICS agriculture ministers’ summit in Brazil, underscoring their shared commitment to food security and sustainable development.

Iran’s Agriculture Minister Gholamreza Nouri Ghezeljeh met with his Indian counterpart, Shri Shivraj Singh Chouhan, in Brasília, where he stressed the need to activate the Iran-India Joint Agricultural Committee and deepen collaboration on food security, biotechnology, and agricultural research.

Nouri highlighted the long-standing trade relations between Tehran and New Delhi, calling for updated trade protocols and enhanced scientific exchanges in agriculture and food systems.

India’s agriculture minister, for his part, reaffirmed New Delhi’s readiness to expand bilateral and multilateral agricultural cooperation within the BRICS framework. Referring to the agreements reached during last year’s meeting between the Indian prime minister and Iran’s president, Chouhan said India is committed to strengthening agricultural ties across all areas.

He also noted the historical and cultural bonds between the two countries, citing extensive past exchanges in the arts, crafts, and other cultural domains.

Chouhan emphasized that both governments are actively working to broaden their cooperation, especially in agriculture, through continuous engagement and strategic partnerships.

Iran officially became a full BRICS member in January 2024, joining founding members Brazil, Russia, India, China, and South Africa. Egypt, Ethiopia, and the United Arab Emirates also joined the group last year.

The 15th BRICS Agriculture Ministers’ Meeting in Brazil is focused on three key themes: food and nutrition security and sustainability, innovation and agricultural finance, and international agricultural trade.
Ethiopia Prepares for a Transformative Role in BRICS Ahead of 2025 Participation (Эфиопия готовится к преобразующей роли в БРИКС в преддверии участия в 2025 году) / Ethiopia, April 2025
Keywords: brics+, Ethiopia
2025-04-15
Ethiopia
Source: www.thehabarinetwork.com

As Ethiopia gears up for its full participation in the BRICS alliance in 2025, the nation is strategically positioning itself to harness the opportunities and address the challenges that come with membership in this influential bloc. A recent policy dialogue hosted by the Institute of Foreign Affairs (IFA) shed light on Ethiopia’s roadmap, emphasizing the importance of collaboration, research, and strategic foresight as the country steps onto the global stage.

The dialogue, organized under the auspices of the BRICS Think Tank Council, took place at Jimma University on April 4th and 5th. Titled “Ethiopian Expert Institutions: BRICS Insights for National Aspirations,” the two-day event brought together policymakers, academics, and experts to explore how Ethiopia can leverage its membership in BRICS to achieve its national development goals while contributing meaningfully to the alliance’s broader objectives.

Strengthening Collaboration and Charting a Strategic Path

Ethiopia’s accession to BRICS in January of last year marked a significant milestone in its diplomatic and economic journey. The recent dialogue served as a follow-up to earlier assessments conducted within the BRICS Think Tank Council, aiming to deepen institutional cooperation and refine Ethiopia’s strategic priorities.

Participants focused on identifying growth opportunities, addressing potential challenges, and fostering research partnerships with counterparts from other BRICS nations.

In his opening remarks, IFA Director Jafar Bediru underscored the importance of proactive engagement as Ethiopia prepares for its active role in 2025. “This is a pivotal moment for Ethiopia,” he stated.

“We are here to deliberate on our national engagement strategies and chart a course that aligns with both our domestic aspirations and the collective goals of the BRICS alliance.”

Jafar emphasized the need for cross-institutional collaboration, noting that shared expertise and innovative ideas will be essential to navigating the complexities of membership in such a dynamic bloc. “Our success depends on how effectively we integrate our national interests with the broader vision of BRICS,” he added.

Recommendations to Shape BRICS’ Future

The outcomes of the dialogue are expected to play a key role in shaping Ethiopia’s contributions to BRICS over the coming years. According to Jafar, the recommendations developed during the event will be submitted to the bloc, offering insights that could influence its strategic direction.
“These proposals are designed not only to secure Ethiopia’s national interests but also to support BRICS in achieving its long-term objectives of fostering equitable global growth and prosperity,” he explained.

Experts speaking at the event highlighted the immense potential of Ethiopia’s inclusion in BRICS, particularly given the bloc’s emphasis on collaboration among emerging economies. With member nations representing vast populations and consumer markets, Ethiopia stands to benefit significantly from increased trade, investment, and knowledge-sharing opportunities.

A Platform for Emerging Economies

The BRICS policy dialogues have emerged as critical platforms for new member states like Ethiopia to strategize and innovate in response to global challenges. As the world grapples with economic uncertainties, climate change, and geopolitical shifts, these forums provide a space for emerging economies to develop solutions that promote sustainable development and equitable growth.
For Ethiopia, participation in BRICS represents more than just a seat at the table – it signifies an opportunity to redefine its role on the global stage. By engaging intellectually and collaborating across institutions, the country aims to position itself as a leader within the alliance while advancing its national priorities.

Looking ahead, Ethiopia’s journey within BRICS is poised to be one of transformation and impact. As the nation prepares for its active participation in 2025, the insights and strategies developed through initiatives like the Jimma University dialogue will serve as a foundation for meaningful engagement.
With a focus on collaboration, innovation, and shared prosperity, Ethiopia is ready to contribute to – and benefit from – the collective strength of the BRICS alliance.

By leveraging its unique strengths and embracing the opportunities ahead, Ethiopia is not only preparing to shape its own future but also to help build a more equitable and prosperous global landscape.
Investment and Finance
Investment and finance in BRICS
From Bandung to Brics: Indonesia’s evolving quest for Global South autonomy (От Бандунга до БРИКС: эволюционные поиски Индонезией автономии глобального Юга) / China, April 2025
Keywords: Indonesia, expert_opinion
2025-04-19
China
Source: www.scmp.com

Seven decades after hosting a summit that birthed the Non-Aligned Movement, Indonesia prioritises pragmatic ties over grand gestures

In April 1955, a city in West Java became the unassuming stage for a revolution in diplomacy. Leaders from 29 nations across Asia and Africa, most newly independent, converged in Bandung, Indonesia, to chart a path free from the Cold War’s suffocating binaries.

Seven decades later, the legacy of that gathering – known as the Bandung Conference – still lingers, though the world it sought to reshape has transformed beyond recognition. Now, with multipolarity re-emerging as a driving geopolitical force, the principles of the Non-Aligned Movement (NAM) are being tested in ways its architects could not have foreseen.

Indonesia’s founding president Sukarno described the Asia-Africa Conference at Bandung as “the first intercontinental conference of coloured peoples in the history of mankind”. It promoted a platform of 10 principles including peaceful coexistence, respect for sovereignty and territorial integrity, equality among nations, non-aggression, and non-interference in domestic affairs.

This year marks the 70th anniversary of that summit, but commemorations are expected to be subdued. While Indonesia celebrated the 50th and 60th anniversaries with grand gatherings under former presidents Susilo Bambang Yudhoyono and Joko Widodo, the country’s foreign ministry has announced there will be no “major” event to mark the occasion this time.

For some, the decision represents a “missed opportunity” for Indonesia to reassert its leadership in the Global South. But other analysts suggest it reflects President Prabowo Subianto’s broader recalibration of foreign policy – one that prioritises pragmatic partnerships over symbolic gestures.

While retaining Indonesia’s traditional bebas dan aktif (independent and active) diplomatic stance, Prabowo has embraced a more personal, efficiency-driven leadership style. Analysts see his decision not to host a high-profile anniversary event for the Bandung Conference as emblematic of a changed geopolitical reality: a world where multipolarity has replaced the old bipolar and unipolar systems.

“In today’s multipolar world, countries like Indonesia see greater value in engaging with flexible coalitions that deliver results, while still upholding the spirit of strategic autonomy that NAM originally championed,” said Joanne Lin, a senior fellow at the ISEAS – Yusof Ishak Institute in Singapore and co-coordinator of its Asean Studies Centre.

“This trend highlights the growing relevance of smaller, issue or interest-focused groupings over broader, ideologically anchored ones like NAM.”

Indonesia still upheld the principles of non-alignment, Lin said, but platforms like Brics were increasingly gaining traction as more pragmatic, interest-driven vehicles for engagement.

Prabowo formally secured Indonesia’s membership in Brics shortly after taking office last year. The bloc – founded in 2009 by Brazil, Russia, India and China, before being joined by South Africa in 2011 and a slate of other nations in 2024 – is often seen as a counterweight to Western-led institutions.

Indonesia and the Global South

NAM, formally established in 1961 after the Bandung Conference, was born out of a desire for an alternative to alignment with either the Western or Eastern blocs during the Cold War. Today, it boasts 120 member nations and held its most recent summit last year in Uganda. Yet its sheer size and internal diversity often render it ineffective as a unified actor on the world stage.

“Its large and heterogeneous membership makes consensus difficult to achieve, and the absence of binding commitments or enforcement mechanisms limits its effectiveness as a unified actor,” Christophe Dorigne-Thomson, a politics researcher at the University of Indonesia, told This Week in Asia.

However, while NAM’s global influence “has undeniably waned, its relevance has not disappeared”, he said. “Particularly as the post-Cold War unipolar moment gives way to a more fragmented and multipolar geopolitical landscape.”

This makes the Indonesian government’s decision not to commemorate the Bandung Conference this year a “missed opportunity”, according to Ahmad Rizky Umar, who specialises in Asian regionalism and Indonesia’s foreign policy at Aberystwyth University in Britain.

Such an event would have offered a rare chance “for Indonesia to engage with its Global South counterparts on such a large-scale”, he said.

In 2015, Prabowo’s predecessor Widodo brought together delegates from 109 countries, including Chinese President Xi Jinping, the late Japanese leader Shinzo Abe and former Singaporean prime minister Lee Hsien Loong, to mark the Bandung Conference’s 60th anniversary. But Indonesia’s current president appeared to have little appetite for this sort of “commemorative diplomacy”, Dorigne-Thomson said.

His administration has directed state resources to flagship programmes like the Danantara sovereign wealth fund and a free-meal initiative for schoolchildren and expectant mothers – projected to cost US$28 billion annually – as part of the government’s ambition to raise Indonesia’s annual growth rate from 5 per cent to 8 per cent by 2029.

In this context, hosting a high-profile event to commemorate the Bandung Conference was unlikely to be seen as “urgent or necessary”, Dorigne-Thomson said.

“Prabowo is also more focused on great power diplomacy,” he said, adding that while the conference had represented “a high point in Indonesia’s anti-colonial and Afro-Asian diplomacy under Sukarno”, that legacy had diminished over time.

Al Busyra Basnur, Indonesia’s former ambassador to Ethiopia and Djibouti, said that while past commemorations had bolstered ties, the “Bandung spirit” should not be confined to an anniversary.

“If we only rely on [this conference] to look at Asia-Africa relations once every year in April, we are missing opportunities to increase connectivity between Asean countries and Africa,” he said.

As a former military commander and son-in-law of Suharto, Prabowo is closely associated with the “New Order” era of Indonesia’s second president, which aligned the country more closely with Western partners and international financial institutions at the expense of Sukarno’s Afro-Asianism, according to Dorigne-Thomson.

The manifesto of Prabowo’s own political party, Gerindra, calls NAM obsolete and outdated, saying Indonesia’s foreign policy should be “devoted to national interests”.

“In the absence of a major symbolic gesture, Indonesia will need to demonstrate through action that it remains committed to principled, equitable engagement with Africa and other Global South partners,” Dorigne-Thomson said.

NAM in today’s world

For many countries in the Global South, NAM’s enduring relevance lies in its emphasis on strategic autonomy.

“The fundamental principles of peaceful coexistence espoused by NAM have become more crucial than ever,” said Samir Bhattacharya, an associate fellow at the Observer Research Foundation think tank in New Delhi whose research focuses on geopolitics and Africa’s role in the changing global order. This was especially true in a world where “great-power rivalries and realpolitik increasingly define today’s international relations”, he said.

Core NAM principles such as sovereignty, non-interference, and autonomy are still visible in regional groupings like the Association of Southeast Asian Nations. “Though Asean no longer explicitly aligns itself with NAM, the spirit of non-alignment remains important, especially for countries like Indonesia, Malaysia and Vietnam that seek to avoid taking sides in the growing US-China rivalry,” Lin said.

However, as the global order grows more multipolar, maintaining non-alignment becomes increasingly complex. Southeast Asian nations, heavily reliant on global trade and supply chains, face mounting pressure to take sides as tensions between the US and China escalate. Strategic flashpoints like the South China Sea, the Taiwan Strait and the war in Ukraine further narrow the space for neutrality.

“Under Prabowo, Indonesia is assessing where it should put its diplomatic capital,” said Alexander Arifianto, a senior fellow and Indonesia programme coordinator at the S. Rajaratnam School of International Studies in Singapore. “And it is focusing on Brics as its strategy to increase outreach towards other Global South nations.”

By joining Brics, Prabowo reversed his predecessor’s cautious approach towards the grouping, which was rooted in concerns that membership of the bloc might align Jakarta too closely with China and Russia, potentially compromising its non-aligned stance.

Although Indonesia had received an invitation to join Brics as early as 2023, Widodo hesitated, instead advocating for membership of the Organisation for Economic Cooperation and Development, which includes the US, Japan and 36 other nations.

Arifianto cautioned that many in Western capitals perceived Brics as a geopolitical tool for Beijing and Moscow to expand their influence.

But other analysts say joining will open up markets and investment opportunities for Indonesia at a time when US President Donald Trump’s tariffs are threatening to upend global trade.

How to navigate the economic impact of Trump’s tariff policy and the broader US-China trade war remains an open question for many in the Global South.

Indonesia, like many of its Asean neighbours, has called for engagement with the US, rather than retaliation. Vietnam and Thailand have already reached out to Washington to explore ways to reduce their tariff rates and protect their export-dependent economies, and more are expected to follow.

Arifianto said most countries were likely to pursue direct dialogue with the White House rather than attempt to coordinate a regional response – raising concerns that their efforts to appease the US could damage trade relations among Southeast Asian nations.

“Countries may turn inward,” he said. “I think under difficult circumstances like what we’re seeing now, most countries will try to focus on their own economic welfare.”

Arifianto predicted that more bilateral and minilateral cooperation would be the result.

“Countries like the US who have historically advocated for free trade and free markets are now turning back on that,” he said. “So what incentive do other countries have to not follow protectionist or developmentalist policies as well?”

As tensions between the US and China continue to rise, many countries in the Global South would like to adhere to the non-aligned principle of having “autonomy to pursue their own foreign policy interests” without pressure or influence from either major power, said Aberystwyth University’s Umar.

But their dependence on open trade and global supply chains complicated their ability to remain neutral amid the escalating trade confrontation, Dorigne-Thomson said.

“The room for manoeuvre is narrowing, especially as major powers grow less tolerant of ambiguity and seek to mobilise support across diplomatic and military domains,” he said.

“These pressures directly affect Asean countries, which, while committed to principles of neutrality and non-alignment or multi-alignment, face growing difficulties in maintaining such a posture in practice.”
Russia Seeks Local Currency Deal with Indonesia as BRICS Members De-Dollarize (Россия стремится заключить сделку с Индонезией в местной валюте, поскольку страны БРИКС дедолларизируют свою экономику) / Indonesia, April 2025
Keywords: Indonesia, trade_relations
2025-04-14
Indonesia
Source: jakartaglobe.id

BRICS member Russia is hoping to be able to use local currencies when trading with Indonesia one day, although Moscow has not set a target for when the use of rupiah and ruble in bilateral commerce could take place.

Russia has sent some of its senior officials to Indonesia in a move to forge stronger economic ties with the Southeast Asian nation. A Russian diplomat revealed early this year that both economies had engaged in talks to explore a local currency settlement deal as Indonesia joined the BRICS club.
On Monday, Russia’s Deputy Trade Minister Alexey Gruzdev told reporters that Moscow’s interest in the deal remained unchanged.

“Local currency settlement is one of the options. Nowadays, we [Russia] do trade in currencies alternative to the US dollar and euros. We see many perspectives for local currencies because it ensures stability,” Gruzdev said on the sidelines of a business forum in Jakarta.

"But it is also for the banks to be more active. That is what we advocate for, to have direct correspondent accounts that would serve the bilateral trade,” Gruzdev said.

Western sanctions have shut Russia out from international payments and the dollar-driven settlement systems. Russia has struck some local currency settlement deals with India and China -- both also part of BRICS. Reports show that Russian rubles and Chinese yuan already made up over 90 percent of their bilateral trade. The ruble and rupee have also become the go-to currencies when Russia does business with India.

Russian Ambassador to Indonesia Sergei Tolchenov said in late January that talks were underway for local currency settlement with Jakarta. Indonesia’s entry into BRICS gave impetus to the possible local currency pact.

BRICS is a bloc of emerging economies that is eyeing to reduce the US dollar's primacy in international trade. The group brings together Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates. Sergei also told the Jakarta Globe at the time the “de-dollarization” that BRICS had in mind was not to create a common currency between its members but was more on lessening global trade’s reliance on the American dollar through local currency use.

Official government figures showed Indonesia-Russia trade amounted to almost $3.6 billion in 2024. However, Indonesia ran a $925.6 million deficit with Russia that year. The trade imbalance had significantly improved compared to the $1.5 billion deficit logged in 2023. Indonesia is already trading with countries like China, Malaysia, and Thailand in local currencies.
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