Jakarta. President Joko "Jokowi" Widodo has been actively seeking the support of fellow leaders to secure Indonesia's membership in the Organisation for Economic Co-operation and Development (OECD). This move is part of an effort to elevate Indonesia to a high-income country.

In the upcoming presidential debate on Sunday, Jan. 7, 2024, presidential contenders -- Anies Baswedan, Prabowo Subianto, and Ganjar Pranowo - -are anticipated to discuss Indonesia's aspiration to join the OECD. The debate will center on defense, geopolitics, and international relations topics.

The list of countries endorsing Indonesia's bid for OECD membership continues to grow, with France, Lithuania, and the United States among the supportive nations. Currently, Japan and South Korea are the only Asian countries within the 38-member intergovernmental organization.

"Indonesia is considering joining the OECD. Why is it important? Because the OECD requires a high standard in the legislation and regulation-making process and the type of regulations implemented by ministries and other state agencies," Chief Economic Minister Airlangga Hartarto said during the announcement of Indonesia's bid in July.

To qualify for OECD membership, Indonesia needs to increase its per capita income to $5,500 (Rp 83.6 million) by 2024. Over the next two decades, the threshold for middle-income countries is expected to range between $17,000 and $19,000. As of 2022, Indonesia's per capita income stands at $4,580.

"Indonesia is entering a critical phase. To achieve an income level above $10,000, we have limited time—estimated at 10 years, coinciding with the demographic bonus. This makes investment and multilateral trade crucial. It means opening access to markets in 38 OECD countries and adopting the same best practice standards," he stated.

Despite being a key partner since 2007, the official process for a country to become a full-fledged OECD member typically takes four to eight years. Indonesia, however, aims to achieve membership within 3.5 years.

In preparation for OECD membership, the Indonesian government plans to establish a national committee involving various ministries and relevant institutions. Finance Minister Sri Mulyani Indrawati highlighted the committee's responsibilities, including identifying policies and regulations to meet OECD standards, monitoring the preparation process, collaborating with stakeholders, developing communication strategies, and undertaking activities to support Indonesia's OECD membership.

French Ambassador to Indonesia Fabien Penone expressed Paris's positive response to Indonesia's bid. "We need to work together because there are many issues to be tackled in the multilateral arena. So we value the importance of Indonesia’s candidacy to the OECD. This will be a crucial step in the reinforcement of the international world of Indonesia."

Head of the Center of Macroeconomics and Finance at The Institute for Development of Economics and Finance (Indef), M Rizal Taufikurahman, said that becoming an OECD member would benefit Indonesia, emphasizing the organization's focus on economic stability and structural reform. Rizal noted that OECD membership could enhance the country's economic efficiency and productivity across various sectors, such as finance, education, health, and infrastructure.

"OECD countries are strong, with stable economic growth, good productivity, and high per capita income, the collaboration among them is naturally a mutual support system to ensure economic parity among member nations," Rizal told Antara recently.
 

Add as a preferred source on Google +