Indonesia’s assumption of the rotating chairmanship of the Developing-8 (D-8) organization in 2026 presents a significant, potentially transformative, development in the landscape of South-South cooperation and global economic governance. This transition, underscored by a focused agenda centered on equality, solidarity, and shared prosperity, demands careful scrutiny of its implications for alliances, economic development, and the ongoing evolution of multilateral institutions. The D-8, comprising Azerbaijan, Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Türkiye, represents a substantial economic force—over 1.3 billion people and a combined GDP exceeding $5.1 trillion—and its strategic direction under Indonesian leadership could reshape geopolitical dynamics.
The D-8’s origins trace back to the 1997 Kuala Lumpur Summit, spurred by a desire among these rapidly developing nations to address common economic challenges and promote collective bargaining power within the framework of the World Trade Organization (WTO). The organization was formally established in 1999, reflecting a growing recognition of the need for a distinct South-South platform, separate from traditional North-South dialogues. Prior summits have primarily focused on trade liberalization, investment promotion, and infrastructure development, but recent shifts, particularly concerning the geopolitical environment and the rise of new economic powers, necessitate a recalibration of the organization’s strategy. “The D-8 is a strategic Global South economic forum,” stated Ambassador Tri Tharyat, “Amid geopolitical dynamics and the current test of multilateralism, Indonesia’s role at the helm of the D-8 will serve as an important platform to advance equality, solidarity, and concrete economic cooperation.”
The current strategic context is defined by several interconnected factors. The protracted conflict in Ukraine has disrupted global supply chains, contributing to inflationary pressures and highlighting the vulnerabilities of globally interconnected economies. Simultaneously, the rise of China’s economic influence and its increasingly assertive foreign policy present a challenge to the traditional dominance of Western economic models. Furthermore, the erosion of trust in international institutions and the fragmentation of multilateralism demand innovative approaches to cooperation. The D-8, with its focus on a geographically diverse group of nations, potentially offers a viable alternative model for addressing these challenges. According to a 2023 report by the Brookings Institution, “The D-8’s success hinges on its ability to translate dialogue into tangible outcomes, particularly in areas where existing multilateral institutions are perceived to be failing to deliver.”
Key Stakeholders and Motivations: Indonesia’s ambitions for the D-8 Chairmanship are driven by several strategic imperatives. Domestically, Indonesia, with its large population and burgeoning economy, seeks to leverage the D-8 platform to enhance its economic diplomacy and promote its own interests. Internationally, Indonesia’s role as a major regional power in Southeast Asia and a growing voice in global affairs provides it with considerable influence within the D-8. The other D-8 members, each with their unique economic and political agendas, will undoubtedly shape the organization’s trajectory. For instance, Pakistan’s strategic location and significant population contribute to the D-8’s importance in South Asia, while Nigeria's membership reflects the growing influence of African nations in global economic discussions. Egypt and Iran represent key players in the Middle East, potentially offering opportunities for expanded cooperation within the organization.
The theme chosen for Indonesia’s chairmanship – “Navigating Global Shifts: Strengthening Equality, Solidarity and Cooperation for Shared Prosperity” – signals a deliberate alignment with the Bandung Principles of 1955, emphasizing non-alignment, mutual respect, and collective security. The specific priorities outlined—economic integration, halal economy development, the blue economy, green transition, digital transformation, and institutional strengthening—reflect a pragmatic response to the evolving global landscape. The planned Halal Expo, for example, is a deliberate investment in a rapidly expanding global market segment, while the focus on the “blue economy” acknowledges the increasing importance of ocean resources for many D-8 member states. Data from the UN Conference on Trade and Development (UNCTAD) indicates that intra-D-8 trade has grown steadily over the past decade, suggesting a viable foundation for further expansion.
Short-Term and Long-Term Outlook: Over the next six months, the D-8 Summit in Jakarta will be pivotal in solidifying Indonesia’s leadership and setting the agenda for the coming years. Key outcomes will likely include the adoption of a revised strategic framework and the commencement of several concrete projects. Furthermore, Indonesia’s ability to secure the participation of additional countries as observer states will be a crucial test of its influence. Long-term, the D-8’s success will depend on its ability to foster genuine economic integration and create a more level playing field for its member states. By 2050, projections from the Asian Development Bank suggest that several D-8 nations could become among the world’s largest economies, presenting a significant opportunity for the organization to play a leading role in shaping the future of global trade and investment. “D-8 member states to become major global economic powers by 2050, making the D-8 an important investment in political engagement and foreign relations,” noted a recent analysis by the Centre for Strategic and International Studies (CSIS).
Ultimately, Indonesia’s D-8 Chairmanship represents more than just a rotating position; it’s a calculated move within a complex geopolitical landscape. The organization's ability to adapt, innovate, and genuinely foster a spirit of solidarity amongst its diverse membership will determine its long-term success. It compels a broader reflection on the enduring relevance of South-South cooperation in an increasingly multipolar world, a world increasingly shaped by shifts in global power and the imperative for a more equitable and just global order. The question remains: can the D-8, under Indonesian leadership, truly become a force for positive change, or will it succumb to the headwinds of geopolitical fragmentation and institutional inertia?