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Developments of Indonesia’s OECD accession journey
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I
n an effort to strengthen its role in the global arena, Indonesia is currently an accession country to the Organisation for Economic Co-operation and Development (OECD) alongside Argentina, Brazil, Bulgaria, Croatia, Peru, Romania and Thailand.
Indonesia is currently in the process of self-assessing national policies, regulations and standards in comparison to OECD instruments, which will then be submitted in the initial memorandum document.
In relation to the accession process, OECD secretary general Mathias Cormann made a working visit to Indonesia from Monday to Thursday.
After attending the launch of the OECD Economic Survey of Indonesia 2024 on Tuesday, he met with Coordinating Economic Minister Airlangga Hartarto at a luncheon the following day.
The meeting explored the development of the Indonesian economy, including the focus of President Prabowo Subianto’s administration, as well as the development of Indonesia's membership process in the OECD.
"I would like to express my gratitude, as yesterday the OECD launched the Indonesia report. Most of the issues I have reported to the President. And of course, hopefully, some points, some lines are in accordance with the government's planning, including the road map for green energy. And then also in line with energy securities, as well as the food security program, including free nutritious food, which is also a priority," said minister Airlangga.
Airlangga also mentioned that Indonesia continued to intensively carry out reforms in various sectors, carried out by a number of related ministries to adjust to OECD standards. In addition, the ministries will also adjust their budgets and structures so that the OECD task force will immediately make related structural adjustments.
Responding to coordinating minister Airlangga’s remarks, secretary general Cormann explained that the accession process would bring benefits to Indonesia and the OECD. In the future, Indonesia still has a lot of room to improve, and the OECD can also learn from new sectors, one of which is the digital economy.
Furthermore, he also expressed his hope that Indonesia’s OECD membership efforts could support the achievement of the vision to become a developed country with a high-income economy by 2045.
"I believe that together, we can work to support Indonesia to become even better. This accession process covers the entire spectrum of broad economic, social and environmental policies. And this process focuses on identifying best policy practices. Global best practices based on what has worked before," he said.
Following the luncheon meeting, Airlangga accompanied President Prabowo Subianto in a meeting with Secretary General Cormann at the Presidential Palace in Jakarta on Thursday.
“The meeting was a follow-up to the previous report submitted by the OECD, which stated that Indonesia's economic targets until 2025 were fundamentally projected to be achieved impressively.” Airlangga said.
Furthermore, the meeting was also held to discuss the development of Indonesia's accession process to the OECD, which is currently underway. In the meeting, the OECD provided a number of strategic inputs related to a number of sectors that could still be improved, such as productivity, digitalization, food security, energy security and various other superior government programs.
For the future process, Airlangga said the time target and follow-up would be discussed in more detail and would await direction from President Prabowo Subianto.
"The OECD can provide benchmarking, rather than data from countries covered by the OECD, as there are 38 countries there," he said.
After meeting with Prabowo, Cormann expressed his appreciation for a number of Indonesia's achievements over the past few decades related to positive economic transformation, economic strengthening and a significant increase in income and living standards in Indonesia.
"What I can also focus on is Indonesia's membership process in the OECD and how OECD membership can help strengthen Indonesia's structural reform agenda in the future, helping realize strong, sustainable, resilient and inclusive economic growth, and be on Indonesia's path to becoming an advanced high-income economy by 2045, in line with Indonesia's vision 2045," concluded secretary general Cormann.
This article was published in collaboration with Coordinating Ministry for Economic Affairs Republic of Indonesia
