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OECD OPENS ACCESSION TALKS WITH INDONESIA

Jayanty Nada Shofa
February 21, 2024 | 11:21 am
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President Joko "Jokowi" Widodo shakes hands with Organization for Economic
Co-operation and Development (OECD) Secretary-General Mathias Cormann at the
Merdeka Palace in Jakarta on Aug. 10, 2023. (Photo Courtesy of the Presidential
Press Bureau)

Jakarta. The Organization for Economic Co-operation and Development (OECD) has
decided to open accession talks with Indonesia, paving the way for Jakarta to
reach an advanced economic status.

OECD Secretary-General Mathias Cormann called the decision "historic" as this
marked the first application coming from Southeast Asia -- a region that he
called held one of the world's most dynamic growths. 

“As the largest economy in Southeast Asia and the world’s third-largest
democracy, Indonesia is a significant global player, providing important
leadership across its region and beyond. The decision to open accession
discussions will benefit both Indonesia and the OECD,” Cormann was quoted as
saying in a recent press statement.

“Importantly, Indonesia engaging in this process with the OECD as an accession
country will also help to further strengthen our organization’s global relevance
and impact,” Cormann said.

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Indonesia officially applied to be part of the OECD last July, although it has
been a key partner to this rich country club since 2007. 

According to the press release, the decision to open accession talks follows an
assessment by the OECD members on the basis of its “evidence-based framework for
the consideration of prospective members”. 

The secretary-general will then prepare a draft accession roadmap for
Indonesia’s technical review process. Over 20 technical committees will also
evaluate whether Indonesia has aligned with the OECD standards. The reviews will
result in recommendations for Indonesia to further align with the group’s best
practices. The reviews will also encompass areas such as open trade and
investment, public governance, anti-corruption efforts, as well as actions to
combat climate change.

There is no deadline for the accession process, meaning that the timeline
depends on whether Indonesia can adjust to the OECD standards. But it usually
takes 5-8 years for a country to reach a full-fledged member status. A new
member's admission requires unanimity. In other words, all OECD countries have
to give their consent before they can finally accept Indonesia into the group. 

Indonesia has set a goal to be among the world’s largest economies by its
centennial in 2045. An OECD membership is expected to drive economic reforms in
the country. If accepted, Indonesia will be the third Asian economy to join the
OECD after Japan and South Korea.

Indonesia’s bid to the OECD has earned support from the group’s members,
including the UK.

In a congratulatory message to Prabowo Subianto on his election win, British
Prime Minister Rishi Sunak talked of how the UK also wanted to see Indonesia
have a seat in the OECD.

“We have so many areas of shared collaboration. I am committed to deepening
UK-Indonesia trading relationship, and have supported Indonesia’s application to
join the OECD,” Sunak wrote.



Tags:
#International
Keywords:
OECD Organization for Economic Co-Operation and Development Mathias Cormann OECD
Membership Indonesia in OECD Rishi Sunak OECD Secretary-General
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