Biden Supports Indonesia’s OECD Bid as Prabowo Seeks BRICS
Jakarta. US President Joe Biden recently told his Indonesian counterpart Prabowo Subianto that Washington would help Jakarta get into the rich-country club Organization for Economic Co-operation and Development (OECD).
Biden’s statement came not long after Indonesia under the Prabowo government announced it sought membership in BRICS, a separate grouping that includes US’ rival China. Biden had hosted Prabowo for a state visit at the White House on Tuesday local time. The meeting resulted in a joint statement for both countries agreeing to strengthen their bilateral ties. As Indonesia seeks a seat in the China-dominated BRICS, Biden reminded Indonesia of its OECD candidacy.
“President Biden expressed his support for Indonesia’s efforts towards an expedited accession bid to the OECD, which provides a pathway to faster and higher quality economic growth through stronger and more accountable policy,” a joint statement issued by the White House after the talks with Prabowo reads.
As the candidacy process gets underway, the US said it would look forward to partnering with Indonesia on having its policies align with the OECD standards and best practices.
“[This includes] supporting Indonesia as it undertakes all necessary economic, governance, trade, and labor reforms,” the statement reads.
Ex-President Joko “Jokowi” Widodo spent the final years of his term pursuing an OECD membership. Jokowi considered the OECD could be Indonesia’s golden ticket to becoming an advanced economy. Indonesia officially became a candidate member of the OECD in May, just months before Jokowi retired. Jakarta aims to become a full-fledged OECD member by 2027. OECD Secretary-General Mathias Cormann, however, had told the Indonesian government to not rush with the accession process and focus on getting the reforms right instead. The typical OECD candidate has to go through years-long rigorous policy reviews to prove they already satisfy the group’s standards.
BRICS, whose membership requirements are not as tough as those of the OECD, comprises original members Brazil, Russia, India, China, and South Africa. It has admitted new members Iran, Egypt, Ethiopia, and the United Arab Emirates. Saudi Arabia has yet to formally join BRICS despite having received the invitation.
BRICS has appointed several countries, including Indonesia, as its key partners at its recent Kazan summit. The key partner status puts Indonesia on probation before it can officially be part of BRICS. It was also at this Kazan summit that Indonesia declared its intentions to join.
Jakarta’s eventual pursuit of BRICS marked its change of heart. Jokowi previously wanted to weigh Indonesia’s options first before formally applying to the group.
Senior economist Wijayanto Samirin not long ago already warned that a BRICS membership could put a strain on Indonesia’s relations with the US due to Chinese influence in the group. Wijayanto suggested that Indonesia should try to join both OECD and BRICS so Jakarta could get the best of both worlds.
The OECD brings together 38 countries, including the US, Australia, and France.
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