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ANALYSIS: INDONESIA DENIES NORMALIZATION WITH ISRAEL TO ENTER OECD

Tenggara Strategics (The Jakarta Post)
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Wed, April 24, 2024


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President Joko “Jokowi“ Widodo welcomes on Aug. 10 a delegation from the
Organisation for Economic Co-operation and Development (OECD) with Finance
Minister Sri Mulyani Indrawati and Foreign Minister Retno LP Marsudi at the
Presidential Palace. (Presidential Secretariat Press Bureau/Lukas)


T

he Indonesian government has refuted Israeli reports that it is actively seeking
to normalize diplomatic ties with the State of Israel. Said reports suggested
that Indonesia's alleged pursuit of such a normalization is tied to the
Southeast Asian country’s ongoing efforts to join the multilateral Organization
for Economic Co-operation and Development (OECD), of which Israel is already a
member. Indonesia sees entry to the economic forum of developed nations as a
pivotal phase in its journey to become a developed country.

According to an Israeli official, Indonesia could normalize its relations with
Israel in exchange for expediting its entry to the OECD. The official also
verified Israeli media reports that OECD Secretary-General Mathias Cormann had
negotiated a commitment from Indonesia to soften its stance on Israel in
exchange for Israel waiving its objection to Indonesia's bid to enter OECD. But
Israel reportedly insisted Indonesia must commit to normalization before Israel
could retract its opposition. Cormann then reportedly mediated an agreement
which included Israel’s demand.



As the OECD requires unanimous agreement from its members to proceed with any
decisions, the bloc could not initiate Indonesia’s entry process to the OECD due
to Israel's objection. Israel justified its stance by citing the absence of
diplomatic ties with Jakarta and the "situation in the Middle East." At the same
time, Israel did not seem to inherently oppose Indonesia's membership in the
bloc. Israel’s position could also be seen as a response to Indonesia's vocal
opposition to Israel's recent and historical actions against Palestine.



Plans for diplomatic reconciliation between Indonesia and Israel reportedly
started during Joe Biden's present tenure as United States (US) President, but
they were interrupted by the heightened conflict between Israel and Palestine.
However, Indonesia's progress to enter the OECD may have triggered a shift in
relations with Israel, signaled by Israel permitting Indonesia to deliver aid to
Gaza via airdrop. In contrast, Israel denied a similar request from Turkey to
send aid despite having diplomatic relations with the North Atlantic Treaty
Organization member.



In response to reports of potential normalization with Israel, Indonesia's
Foreign Ministry clarified that there are no plans at present to pursue such a
course of action, particularly amid Israel's ongoing atrocities committed in
Palestine’s Gaza Strip. The ministry also reiterated that Indonesia continues to
be committed to supporting Palestine's independence in the framework of a
two-state solution, which preserves the existence of the Israel state. Moreover,
the ministry announced that Indonesia will unveil a roadmap for its OECD
accession process by May 2024.






The government is caught in a quandary because of Israel's ultimatum. Israel's
significant influence within the OECD and the bloc’s technical committees poses
a formidable challenge to Indonesia's pursuit to realize its Indonesia Gold 2045
target. However, reneging its positions of condemning Israeli aggression could
lead to severe domestic and international repercussions for Indonesia which
could potentially outweigh the country’s efforts to enter the OECD.




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