Indonesia pushes BRICS to prioritize agricultural trade and value-added products

Indonesia pushes BRICS to prioritize agricultural trade and value-added products

Indonesia is calling on BRICS member nations to broaden their industrial cooperation framework to include agriculture, seeking to boost trade in value-added commodities and processed agro-products within the expanding economic bloc.

Deputy Minister of Industry Faisol Riza made the appeal at an exhibition and business matching event in Jakarta on Monday, arguing that commodity-based agriculture should complement BRICS' existing focus on minerals and technology.

"This is an opportunity for us to encourage member countries to fully utilize the agricultural potential of each nation," Riza said.

Indonesia officially joined BRICS as its 10th member on January 1, 2025, becoming the first Southeast Asian nation to enter the bloc, which now accounts for approximately 40 percent of the world's population and around 36 percent of global GDP measured at purchasing power parity. The move came after President Prabowo Subianto, who took office in October 2024, prioritized membership—a shift from the previous administration under President Joko Widodo, which had hesitated over concerns about jeopardizing Indonesia's non-alignment policy.

Palm oil at the center of trade push

Riza noted that several BRICS member states remain primary importers of Indonesian agricultural output, particularly crude palm oil and its downstream derivatives. Indonesia controls over 60 percent of the global palm oil market, making it a decisive player in international trade for the commodity.

"Not just CPO, but also palm oil derivatives, so we can prepare value-added products for global and BRICS markets," Riza added.

Recent trade data underscores the sector's momentum. Indonesia's crude palm oil and derivative exports reached $4.69 billion in January and February 2026, marking a 26.4 percent increase compared to the same period in 2025, with export volumes rising from 3.33 million tonnes to 4.54 million tonnes.

Pointing to India as a key market, Riza said New Delhi has requested increased imports of Indonesian agro-products—including cashew nuts and raw materials—while showing keen interest in processed goods. In turn, Indian authorities have asked for regulatory adjustments to help narrow their trade deficit with Jakarta, which stands at approximately $17.7 billion, with palm oil being a key Indonesian export to India.

Indonesia's 2024 trade with BRICS nations totaled approximately $150 billion, with top exports being palm oil, coal, natural gas, and rubber.

Industrial transformation agenda

The diplomatic push aligns with broader efforts by the Industry Ministry to position Indonesia within the expanding economic bloc, which grew from five original members to nine in January 2024 with the addition of Egypt, Ethiopia, Iran, and the United Arab Emirates.

It follows Indonesia's participation in the 4th BRICS Partnership on the New Industrial Revolution Advisory Group Meeting in New Delhi on August 3. The PartNIR platform was established in 2018 at the Johannesburg Summit to deepen cooperation in digitalization, industrialization, innovation, inclusiveness, and investment.

During that session, Industry Minister Agus Gumiwang Kartasasmita presented three national priorities: strengthening small and medium industries, accelerating the green industrial transition, and building data-driven supply chains.

"Indonesia views PartNIR as an important platform for aligning its national industrial strategy with the collective capabilities of the BRICS countries," Kartasasmita said in a statement Friday.

"By pooling our strengths, we can address shared challenges and ensure technological progress benefits all member states."

With a GDP exceeding $1.3 trillion, Indonesia is Southeast Asia's largest economy and the world's fourth most populous country with over 280 million people, giving it significant leverage to advocate for agricultural trade expansion within BRICS.