JAKARTA – Indonesian President Prabowo Subianto’s debut at the Brics summit in Brazil marked a bold step in Jakarta’s bid to elevate its global standing, though analysts warned the diplomatic milestone could strain ties with the rest of Asean, the United States and its allies.

The summit – on July 6 and 7 in Rio de Janeiro – marked Indonesia’s first participation as a full member of Brics, founded by Brazil, Russia, India, China and South Africa. The 11-member grouping aims to amplify the Global South’s influence by promoting cooperation among emerging economies.

Cabinet Secretary Teddy Indra Wijaya said in a statement that President Prabowo viewed Indonesia’s membership as a way to “strengthen its position globally” and “support global stability and prosperity” through broader international cooperation.

A major draw for Indonesia lies in access to the New Development Bank (NDB), a multilateral lender created by Brics members to fund infrastructure and development in emerging markets. Often seen as a rival to Western-led institutions such as the World Bank, Asian Development Bank (ADB) and the International Monetary Fund (IMF), the NDB offers loans with fewer political conditions.

Associate Professor Yohanes Sulaiman of Jenderal Achmad Yani University told The Straits Times that the NDB’s appeal is simple: “Money without much scrutiny. Keep in mind that many Asian and African countries find the conditions (for non-NDB funding) to be too strenuous and cannot be used for pet projects.”

He cited Indonesia’s new capital city in East Kalimantan, the national free lunch programme, and coastal infrastructure as examples of projects that require flexible, timely funding.

Mr Prabowo’s pivot to Brics also aligns with efforts to attract foreign investment through Indonesia’s sovereign wealth fund, Danantara. During a June visit to St Petersburg, Danantara signed a €2 billion (S$2.96 billion) joint investment deal with the Russian Direct Investment Fund. Mr Prabowo also expressed its gratitude to Russia for its backing of Indonesia’s Brics bid.