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OECD decision to grant talks for accession to Indonesia opens new chapter in history
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ollowing an expression of intent by the Indonesian government to join the Organization for Economic Cooperation and Development (OECD) through a letter from Coordinating Economic Minister Airlangga Hartarto to OECD secretary-general Mathias Cormann, as a follow-up to the directive of President Joko “Jokowi” Widodo, the OECD Council decided to open accession discussions with Indonesia on Wednesday. This decision follows an assessment by OECD members based on the evidence-based Framework for the Consideration of Prospective Members.
The decision to open accession discussions is also a continuation of Indonesia's increased engagement and cooperation as one of the key partners of the OECD since 2007. As a forum emphasizing the importance of collaboration and setting global standards, the OECD has been a strategic partner for the government in efforts to formulate progressive and globally accepted national policies.
"The OECD member countries' decision today is historic. Indonesia's application is the first from Southeast Asia, one of the most dynamically growing regions in the world. As the largest economy in Southeast Asia and the third-largest democracy globally, Indonesia is a significant global player, providing crucial leadership in this region and beyond," said secretary-general Cormann.
He added that the decision to open accession discussions would benefit Indonesia and that through the discussions, the OECD hoped to support Indonesia in continuing its reform efforts to achieve its vision of becoming a developed country with a minimum per capita income of US$30,300 by 2045. Additionally, secretary-general Cormann also hoped that Indonesia's involvement in the accession process would help strengthen the OECD's global relevance and impact.
In line with this, minister Airlangga also said the accession process was expected to serve as a catalyst for increasing Indonesia's per capita income. Moreover, Indonesian membership in the OECD and its alignment of regulations with the international body’s standards are anticipated to have positive impacts on the general public, such as boosting investment value, promoting small and medium enterprises (SMEs) as global players and enhancing human resource quality.
"We also hope that OECD accession can support the priorities of the Indonesian government, including the green economy, digitization, human resource development, good governance and pushing Indonesia to escape the middle-income trap," said minister Airlangga.
He also mentioned that written support for Indonesia's accession process had been obtained from Australia, Japan, Germany and Slovakia.
Next, secretary-general Cormann mentioned that a draft road map for the accession process's technical review would be prepared in collaboration with the Indonesian government for consideration by the OECD Council at the next meeting. Encompassing various policy areas and focusing on several priority issues such as open trade and investment, public governance, integrity, anti-corruption efforts, environmental protection and climate change mitigation, the technical review process will be conducted to ensure the alignment of national regulations with OECD standards.
This article was published in collaboration with Coordinating Ministry for Economic Affairs Republic of Indonesia
