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Joining OECD Could Help Indonesia’s Trade Talks with the US, Minister Says

Arnoldus Kristianus
May 16, 2025 | 8:38 pm
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Senior minister Airlangga Hartarto meets OECD Secretary-General Mathias Cormann in Paris on March 5, 2025. (Photo Courtesy of Coordinating Ministry for Economic Affairs)
Senior minister Airlangga Hartarto meets OECD Secretary-General Mathias Cormann in Paris on March 5, 2025. (Photo Courtesy of Coordinating Ministry for Economic Affairs)

Jakarta. Indonesia is preparing to submit a key document to support its bid to join the Organisation for Economic Co-operation and Development (OECD), while aligning the process with ongoing trade negotiations with the United States, a top official said Friday.

The country officially became a candidate for OECD membership in 2023 and is currently drafting its initial memorandum, a key self-assessment document that measures the alignment of Indonesia’s policies and regulations with OECD standards. The document will be submitted at the OECD ministerial meeting in Paris on June 3–4, 2025.

“Why are OECD standards important? Because they are used as benchmarks in negotiations with the United States. It turns out the US refers to OECD standards for both tariff and non-tariff measures. So this aligns our path,” Airlangga said at a press briefing in Jakarta on Friday.

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Indonesia is in the process of compiling 32 chapters of the memorandum, assessing compatibility with 239 OECD legal instruments. Each section is being handled by relevant ministries and agencies in accordance with OECD committees.

Airlangga said in certain sectors, Indonesia already complies with a substantial portion of OECD benchmarks. “In the financial sector, we're already about 80 percent compliant. In trade, it’s roughly above 70 percent,” he said.

In parallel, Indonesia has entered a 60-day negotiation window with the United States, starting in early April, to address reciprocal tariff issues affecting several countries.

The OECD accession effort is also expected to benefit Indonesia’s negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which the government aims to conclude in the first half of 2025.

“Most of the reference points in the IEU-CEPA negotiations also come from the OECD. So completing the IEU-CEPA would also resolve many issues with the United States,” Airlangga said.

Indonesia has formally included the accession in its 2025–2029 Medium-Term National Development Plan. Joining the OECD is also part of President Prabowo Subianto’s Asta Cita, his eight-point policy agenda, which prioritizes national self-sufficiency in food and energy.

Although the OECD is not a free trade pact, membership requires extensive regulatory reforms and technical compliance reviews. Indonesia aims to complete its accession by 2027 but must gain unanimous approval from all 38 current members, which include the US, Japan, Canada, and Israel.

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