Indonesia’s Path to OECD Membership: Strategic Steps for a Stronger Economy

Jakarta, INTI – Indonesia is taking significant strides toward enhancing its role on the global stage by pursuing membership in the Organisation for Economic Co-operation and Development (OECD). Alongside countries such as Argentina, Brazil, Bulgaria, Croatia, Peru, Romania, and Thailand, Indonesia is undergoing a self-assessment process to align its policies, regulations, and national standards with OECD frameworks. This assessment is expected to culminate in an Initial Memorandum, marking an initial step toward full membership.

OECD Secretary-General’s Visit: A Positive Milestone for Indonesia

As part of the accession process, OECD Secretary-General Mathias Cormann visited Indonesia from November 25 to 28, 2024. The visit included various engagements, notably a meeting with Coordinating Minister for Economic Affairs Airlangga Hartarto. The warm discussion on November 27 focused on Indonesia’s economic progress, President Prabowo Subianto’s administration’s priorities, and the country’s ongoing OECD accession.

Minister Airlangga stated, “I would like to express our gratitude as the OECD recently launched the Indonesia Report. I have shared most of these findings with the President. Hopefully, some of these points align with the government’s planning, including our roadmap for green energy and food security, which are top priorities.”

Sectoral Reforms and Budget Adjustments

In its efforts to meet OECD standards, Indonesia is actively reforming various sectors. Minister Airlangga explained that relevant ministries are recalibrating budgets and organizational structures to support this process. “These reforms will ensure that the OECD task force can swiftly adapt the necessary structures,” said Airlangga.

Benefits of Accession for Indonesia and the OECD

Secretary-General Cormann underscored that Indonesia’s accession would be mutually beneficial. “OECD will gain insights from new sectors, such as digital economy, where Indonesia is a trailblazer through the ASEAN Digital Economy Framework Agreement,” Cormann noted. He emphasized that the accession aims to support Indonesia’s vision of becoming an advanced, high-income country by 2045.

“I am confident that we can work together to help Indonesia progress even further. This accession process encompasses a broad range of economic, social, and environmental policies. It focuses on identifying global best practices,” added Cormann.

Launch of The OECD Economic Survey of Indonesia 2024

On November 26, 2024, Secretary-General Cormann attended the launch of “The OECD Economic Survey of Indonesia 2024.” This publication is part of the OECD’s regular policy dialogue with policymakers from both developed and developing countries. The survey provides insights into Indonesia’s economic situation and recommendations for bolstering critical sectors.

Meetings with Key Officials

The visit also saw participation from several key officials, including the Deputy Minister of Investment and Coordinating Investment Board, the Deputy Minister of National Development Planning/Head of Bappenas, and Indonesia’s Ambassador to France, Andorra, Monaco, and the Permanent Delegation to UNESCO. These officials contributed to discussions aimed at facilitating the accession process and implementing necessary reforms.

Accession Process: Ensuring Economic Vision Consistency

President Prabowo Subianto emphasized the importance of aligning the accession process with Indonesia’s long-term goals. By joining the OECD, Indonesia aims to broaden its understanding of best practices in policies adopted by developed nations.

“This process is not just about policy alignment,” President Prabowo stated, “but about building a solid foundation for sustainable economic growth and improving the quality of life for Indonesians.”

A Bright Future with the OECD

The accession process also brings optimism for developing strategic sectors in Indonesia. With OECD support, the country is poised to adopt best practices in areas ranging from economic policy and infrastructure development to environmental sustainability.

“We want to ensure that this development is not just centered in Java but spreads to all regions, creating more equitable opportunities for everyone,” said Minister Airlangga.

Indonesia’s accession to the OECD represents a strategic move to strengthen its economy and expand its global network. With OECD support, the country hopes to achieve its goal of becoming a high-income, developed nation, reinforcing vital sectors, and reducing economic disparities. Through collaboration between the government and the private sector, this initiative aims to foster inclusive and sustainable economic growth.