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Indonesia Responds to Israel Blocking Its OECD Membership

Jayanty Nada Shofa
February 6, 2024 | 10:27 am
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President Joko "Jokowi" Widodo, accompanied by Finance Minister Sri Mulyani, host OECD Secretary-General Mathias Cormann at the Merdeka Palace in Jakarta on August 10, 2023. (Photo Courtesy of Presidential Press Bureau)
President Joko "Jokowi" Widodo, accompanied by Finance Minister Sri Mulyani, host OECD Secretary-General Mathias Cormann at the Merdeka Palace in Jakarta on August 10, 2023. (Photo Courtesy of Presidential Press Bureau)

Jakarta. Indonesia has responded to reports of Israel blocking Jakarta’s membership at the Organization for Economic Co-operation and Development (OECD).

Financial news outlet Nikkei Asia reported that OECD member Israel had objected to starting Indonesia's accession process at a recent meeting of the group’s ambassadors. Israel apparently does not necessarily oppose Indonesia’s membership, but it is said to have cited its lack of diplomatic ties with Jakarta and the situation in the Middle East as reasons. But OECD Council -- the group’s decision-making body -- requires all its members, including Israel, to give their consent before Indonesia’s accession process to the rich country club can start.

According to the Foreign Affairs Ministry, Indonesia did not take part in the recent OECD meeting as it was not part of the group yet.

“The meeting in question, which had discussed OECD accession, was internal, meaning it was only attended by the member countries. Indonesia is not yet an OECD member, so of course, Indonesia did not take part in the discussion,” the ministry’s spokesperson Lalu Muhamad Iqbal told a press briefing on Monday. 

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“Indonesia also does not see any connection between its consistent support for Palestine and Indonesia’s membership at the OECD,” Lalu said. 

Indonesia has been eyeing the OECD as its ticket to become a developed economy. An OECD membership is expected to drive economic reforms within the country, as Indonesia aims to be among the world’s four largest economies by its centennial in 2045.

Indonesia officially expressed its intent to join the OECD last July. A month later, OECD Secretary-General Mathias Cormann also visited President Joko “Jokowi” Widodo at the State Palace in Jakarta. If the OECD agrees to commence the accession process, the group will then prepare a work program for Indonesia to follow. But it typically takes about 5-8 years before a country becomes a full-fledged member.

Despite Israel’s opposition, Indonesia has received overwhelming support from other OECD members. This includes the US, which has been a close ally to Israel. Late last year, US President Joe Biden told Jokowi that Washington would back Indonesia’s OECD candidacy. According to Biden, the US also intends to work with all OECD members to make sure Indonesia fulfills the OECD accession roadmap, including on making all the necessary economic and trade reforms.

Indonesia has been a key partner of the OECD since 2007, while Israel officially joined the group in 2010. If accepted, Indonesia will be the third Asian member country in the group after Japan and South Korea. 

Indonesia does not have diplomatic relations with Israel. But Indonesia has been vocal of its pro-Palestine stance as Israel continues to pound Gaza. Foreign Affairs Minister Retno Marsudi is scheduled to give a speech regarding the legal consequences of Israeli violations in occupied Palestinian territories at the International Court of Justice (ICJ) later this month. Jokowi earlier this year said Indonesian ports would not accept Israeli ships.

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