On November 23, 2025, Indonesia made a decisive move that could ripple through the global financial system: it announced plans to launch new foreign-exchange operations centered on the Chinese yuan, with the Japanese yen playing a secondary role. This bold step, revealed by Bank Indonesia officials, is the clearest sign yet that the world’s fourth most populous country is serious about reducing its dependence on the U.S. dollar. The initiative marks a new chapter in the ongoing story of BRICS’ efforts to reshape the global economic order—and it’s not just Indonesia making waves.
According to Bank Indonesia Senior Deputy Governor Destry Damayanti, the rationale is both economic and strategic. "Settling transactions directly in partner currencies will ease pressure on the U.S. dollar and strengthen Indonesia’s FX ecosystem," Damayanti explained. She pointed out that local currency transactions (LCT) between Indonesia and China have already reached a staggering $1 billion each month, but demand is still outpacing capacity. That’s why regulators are developing new yuan-rupiah instruments for monetary operations and futures markets, aiming to make the yuan a seamlessly integrated settlement currency and reduce exposure to dollar-driven volatility.
This isn’t just a matter of saving on conversion costs or improving liquidity (though those are real benefits). For Indonesia, it’s about aligning with the broader ambitions of BRICS—a bloc that now includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, the United Arab Emirates, and, most recently, Indonesia itself. The group’s long-term goal? To weaken the dollar’s global dominance by building parallel financial rails centered on the Chinese yuan.
The momentum behind this de-dollarization push is unmistakable. Russia, for instance, is preparing to issue its first batch of Chinese yuan-denominated government bonds—a major step in financial cooperation between two of the bloc’s most influential members. As reported in multiple financial outlets, the BRICS nations are also exploring a new payments system specifically designed to bypass the U.S. dollar, and central banks across the alliance are ramping up their gold purchases while reducing their U.S. dollar holdings. It’s a coordinated effort that, some experts argue, could even offer indirect benefits to cryptocurrencies like Bitcoin, as alternative stores of value gain traction in a world less tethered to the greenback.
The recent 16th BRICS summit, held in Kazan, Russia, only underscored this shift. According to summit summaries, delegates discussed advancing the de-dollarization agenda and expanding the use of local currencies and payment systems. The coalition is also attracting new interest: just one week after a recent foreign ministers’ meeting, seven countries applied to join BRICS, eager to participate in this evolving ecosystem.
But what’s driving these developments? The answer lies partly in the broader context of global governance. As UK Prime Minister Keir Starmer declared in April 2025, "The world has changed; globalization is over, and we are now in a new era." His words, echoed in the British press, reflect a reality where the World Trade Organization’s influence is waning. The WTO, once the bedrock of global trade rules, is now hamstrung by stalled negotiations, ineffective dispute settlement, and a surge in trade protectionism. Major powers like the U.S. and China increasingly prefer bilateral or regional deals, leaving multilateral frameworks in the dust.
In this environment, BRICS has stepped into the vacuum. Formed in 2009, the group’s combined GDP reached $28.5 trillion in 2024, accounting for 36% of the global total and surpassing the G7. The bloc’s plans to introduce a new currency or promote alternatives to the U.S. dollar have not gone unnoticed—especially by former U.S. President Donald Trump, who warned BRICS nations of 100% tariffs if they moved forward with such initiatives. This response, as Organiser noted, highlights Washington’s growing unease as its financial supremacy is challenged.
Yet, as BRICS expands—now including Indonesia and other major economies—it’s not just about economic might. The group is also offering a new model of global governance. In a recent analysis in Pearls and Irritations, experts described a “quiet debate” emerging in Seoul about whether South Korea should seek early alignment with BRICS. The logic is clear: early movers secure influence and benefits, much as Australia did in the early days of the United Nations. Middle powers like South Korea, Malaysia, and Turkey are weighing whether to join the parade, recognizing that their participation lends legitimacy and diversity to institutions otherwise dominated by great powers.
Indonesia’s embrace of its role as an early legitimizer is a case in point. By embedding itself in the BRICS ecosystem now, Indonesia stands to gain access to new financing channels, infrastructure partnerships, and diplomatic visibility—advantages that may not be available to latecomers. As the Pearls and Irritations article put it, “Middle powers do not design systems—they choose when to endorse them. And in a world moving from hegemonic order to competitive institutionalism, early legitimisation may once again become the primary currency of middle-power strategy.”
Of course, the internal dynamics of BRICS are far from egalitarian. China, followed by India and Russia, sets much of the strategic direction, while other members provide sovereign endorsement and legitimacy. The New Development Bank, for example, increasingly reflects Beijing’s priorities. But for countries like Indonesia, the trade-off is clear: by offering legitimacy, they secure a seat—if not at the head of the table, then close enough to matter.
This shift is not happening in a vacuum. Around the world, economic nationalism is on the rise. The Swadeshi philosophy, championed by figures in India (or Bharat), emphasizes self-reliance and a “win-win” approach to international relations. As the Organiser piece observed, “Every major country including Canada and members of the G8 emphasises self-reliance.” Even China’s Communist Party has made self-sufficiency in technology a top priority for its next five-year plan.
For the United States, the challenge is to avoid viewing BRICS as merely an anti-Western bloc. As India’s leaders have argued, the organization can serve as a bridge for dialogue, not just a competitor. The next BRICS summit, scheduled to be hosted by India in 2026, will be another critical moment for the bloc to define its role in a world where old certainties are crumbling and new alliances are taking shape.
With Indonesia’s yuan-centric foreign exchange strategy, Russia’s yuan-denominated bonds, and a growing chorus of middle powers considering their place in the new order, the global financial landscape is shifting underfoot. Whether this marks the beginning of the end for dollar dominance—or just another chapter in the ongoing contest for influence—remains to be seen. But one thing is certain: the world’s economic map looks more multipolar than ever before.
