Indonesias Accession to OECD: A Strategic Move Towards Enhanced Global Economic Integration

Jakarta, INTI – The Indonesian government, spearheaded by the Coordinating Ministry for Economic Affairs, is advancing crucial steps toward international economic cooperation, notably in the process of becoming a member of the Organization for Economic Cooperation and Development (OECD).

Indonesia has become the first Southeast Asian country to achieve OECD accession status following the approval of Indonesia's Accession Roadmap. This milestone was officially handed over at the OECD Ministerial Meeting on May 2-3, 2024. Currently, there are seven OECD accession countries: Argentina, Brazil, Bulgaria, Indonesia, Croatia, Peru, and Romania.

Following the adoption of the OECD roadmap, the next steps for the Indonesian government include conducting a self-assessment and drafting an initial memorandum, planned to be completed within the next 250 days. To streamline national coordination, President Joko Widodo issued Presidential Decree No. 17 of 2024 on the National OECD Team. The Coordinating Minister for Economic Affairs has been appointed as the Head of the Executive Team, with the Foreign Minister and Finance Minister serving as Vice Chairs.

“The government has taken strategic steps towards OECD accession, aiming for full membership within the next three years. This includes integrating OECD accession into the National Long-Term Development Plan (RPJPN) and the National Medium-Term Development Plan (RPJMN), and planning the establishment of a Project Management Office (PMO) to support the National OECD Team,” stated Deputy for Coordination of International Economic Cooperation Edi Prio Pambudi during a media briefing at the Coordinating Ministry for Economic Affairs Media Center in Jakarta on Thursday, May 30.

Following the OECD Ministerial Meeting, OECD Secretary-General Mathias Cormann visited Indonesia on May 28-29, 2024. During his visit, Secretary-General Cormann met with President Joko Widodo, President-elect Prabowo Subianto (2024-2029), the Indonesian House of Representatives (DPR RI), the National OECD Team, and other stakeholders such as labor organizations, civil society, business representatives, and academics.

“By becoming an OECD member, our access to other OECD member markets will be significantly improved, and it will also drive investment. The national team comprises various stakeholders, and the media will also be involved in press freedom aspects. As a great nation, we must unite to achieve this goal,” Deputy Edi emphasized.

Additionally, the OECD will assist in developing Indonesia's semiconductor ecosystem. Indonesia is set to be reviewed by the U.S. Department of State in collaboration with the OECD. This review aims to help Indonesia contribute to strengthening the global semiconductor supply chain through the International Technology Security and Innovation (ITSI) Fund and increase foreign investment in Indonesia's semiconductor sector. The review process is expected to last 6-8 months, with the OECD Semiconductor Team scheduled to visit Indonesia in mid-2024 to complete a fact-finding mission on Indonesia's semiconductor industry.

“Semiconductors are crucial because of the intense competition in this field. Currently, the United States holds many standards for semiconductor production, such as for smartphones. Without proper management, we risk falling behind. We are building a semiconductor ecosystem involving ambassadors, entrepreneurs, and others. This is a broad industry, and we need to know where to start,” Deputy Edi concluded.

The media briefing also featured the Coordinating Ministry for Economic Affairs spokesperson Haryo Limanseto, Assistant Deputy for Asia Economic Cooperation Bobby Siagian, Assistant Deputy for Regional and Sub-Regional Economic Cooperation Netty Muharni, and Assistant Deputy for Multilateral Economic Cooperation Ferry Ardiyanto.