After deciding to open accession discussions with Indonesia on Feb. 20, 2024, and presenting Indonesia's accession road map at the OECD Ministerial Meeting in May 2024, OECD Secretary-General Mathias Cormann held a meeting with President Joko “Jokowi” Widodo at the Bogor Presidential Palace on Tuesday. On this occasion, Coordinating Economic Minister Airlangga Hartarto, as the chairman of the National Team for Indonesia's Preparation and Acceleration of OECD Membership (OECD National Team), accompanied Jokowi.

"Today's meeting is the second between President Joko Widodo and Secretary-General Cormann regarding Indonesia's accession process. The first was in August 2023. The purpose of this meeting is to provide the latest information on the accession process and the steps that need to be taken by the Indonesian government," Airlangga said during a press conference.

Furthermore, Airlangga mentioned that during the meeting it was conveyed that Indonesia remains committed to becoming an OECD member within the next three years. Subsequently, the government will establish a Project Management Office (PMO) to support the National Team and will continue to promote the OECD accession process to be integrated with the National Long-Term Development Plan (RPJPN) and the National Medium-Term Development Plan (RPJMN).

Airlangga also said that there are several lessons from some new OECD member countries that have achieved better economic performance. For example, Costa Rica reduced its budget deficit to 5 percent of GDP in 2021, Colombia reduced foreign bribery by implementing the OECD Anti-Bribery Convention and Lithuania and Chile completed their accession processes within three years.

Regarding the current accession process, Indonesia is receiving technical and non-technical support from several OECD member countries. Support commitments in the form of capacity building, funding and communication are provided by Australia, the Netherlands and various other countries. Additionally, Japan is providing technical assistance through the Japan International Cooperation Agency (JICA).

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After adopting the OECD road map, the next step the government will take is the self-assessment process, followed by the preparation of the initial memorandum, which is planned to be completed within the next 250 days.

"During the conversation between the President and Secretary-General Cormann, it was also discussed that in this OECD process, the OECD will also assist in developing the semiconductor ecosystem, and they will learn how ASEAN has implemented the Digital Economy Framework Agreement (DEFA) road map, which will also be a learning process for the OECD," Airlangga concluded.

Additionally, at the end of 2024, Secretary-General Cormann is also scheduled to visit Indonesia again to launch the Indonesia Economic Survey. This survey is one form of OECD support for Indonesia to improve its investment climate and become a country comparable to current OECD member countries in regulatory development, thus encouraging continued investment in Indonesia.

This article was published in collaboration with Coordinating Ministry for  Economic Affairs Republic of Indonesia

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