Indonesia: another “I” in the BRIC?

The phenomenon of ’internationalization to best develop its potential should pay attention to the so-called “emerging-emerging” countries. This is the opinion of many international analysts and economists. And in their opinion, Indonesia will be part of the BRICs.

The emergence in the global economy of Brazil, Russia, India, and China has upset the world's economic, political, geopolitical, and social balances.The expression so-called BRIC, by British economist Jim O'Neill, now represents more than just a bet and is already a reality on which the future is and will be built. For the four BRIC countries, there are many significant demonstrations of power. Russia for example, despite internal problems both political and economic and lack of reform, continues to grow at a rate of 4% per year, depending almost entirely on the performance of metals and oil; between Beijing and Shanghai is concentrated the 40% of the most capitalized banks on the globe; India is growing with incredible speed and wants to establish itself not only economically but also politically in the global arena; and Brazil, which will host the 2014 World Cup and the 2016 Olympics, aims to become an oil superpower and beyond.

To date, while questions are being asked among economists as to who between India and China will lead the economy of the 21st century, other countries are appearing, not even too timidly, in global markets: just think of the ASEAN area from which important realities such as Indonesia are emerging. This country, which emerged with few injuries from the global financial crisis, has a 2010 GDP growth rate of 6.1% (some forecasts indicate 6.3% for next year) and GDP per capita is expected to grow by 20% in 2011-2012. Abundant natural resources (Indonesia is the world's largest exporter of wood, silver, and coal) and rapid growth in the manufacturing sector (thanks to China's gradual relocation of production) are the keys to the Asian country's rise.

Other elements in Indonesia's favor are political stability, confirmed by the recent presidential elections, FDI up by 34% since 2009 (it reached 3 bn), and prospects for growth in the purchasing power of civil society: in fact, by 2015 it is expected that some 52 million Indonesians could be back in the middle class. The main shortcomings, on the other hand, are corruption, shortages and the precarious condition of infrastructure, which undoubtedly contribute to holding back the country's development.

Indonesia's growth was also highlighted by O'Neill himself, who, after the term BRIC, coined another acronym: the MIKT (i.e., Mexico, Indonesia, South Korea and Turkey), a new group of countries on which international investors should focus.

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