Jakarta. Indonesia said Thursday that Jakarta would continue to keep its distance from Israel despite needing its approval to join the rich country club OECD.

Indonesia has been eyeing a seat at the OECD -- short for Organization for Economic Cooperation and Development -- as Jakarta believes aligning with the group’s high standards can supercharge its growth. Indonesia, known for being a staunch supporter of Palestinian independence, requires the unanimous approval of all OECD members before it can join the club. And that includes Israel, which has been in the OECD since 2010. Jakarta to this day has not formed any diplomatic ties with Israel, although both sides have quietly been engaging in trade.

The Jakarta Globe asked senior minister Airlangga Hartarto whether the OECD bid meant Indonesia was considering normalizing relations with Israel to gain acceptance. Airlangga, at the time, had just hosted OECD Deputy Secretary-General Frantisek Ruzicka for some talks on the accession. 

“Our membership requires a unanimous decision. But President Prabowo Subianto has been very clear at the UN that [normalization] will require Israel to settle its political matters with Palestine,” Airlangga told a press briefing.

Speaking at the UN podium a few months ago, Prabowo said that Jakarta would only form ties with Israel if it recognized a Palestinian state. In other words, the internationally recognized two-state solution will be a prerequisite for any normalization. This is the internationally recognized framework that calls for the establishment of an independent Palestinian state that exists alongside Israel.

Shortly before leaving Airlangga’s office, the Globe asked Ruzicka what if Israel rejected Indonesia’s candidacy, and whether the OECD members would convince Israel to say yes if that happens.

“[Membership] is a consensual decision. During the process, all the issues will be resolved. We support the policy that the bilateral issues should not be taken into the accession process. By the end of the day, all countries will reach a consensus," Ruzicka said.

The OECD requires any candidate to align with the club’s internationally recognized standards and best practices. This process will eventually encourage candidates to make massive reforms, which might lead to positive economic outcomes. According to the accession roadmap, Indonesia has to undergo technical reviews across many fields, including trade and investments, before members vote on its candidacy. 

Official statistics showed that Indonesia-Israel trade totaled $240.3 million between January and October. About $206.8 million was in Indonesian exports. Jakarta officially became a candidate for the OECD in May 2024. Indonesia hopes to secure the membership by 2027.

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