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Indonesia’s Incoming Gov’t Ready to Implement OECD Roadmap, Airlangga Says

Jayanty Nada Shofa
February 29, 2024 | 4:18 pm
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Chief Economic Affairs Minister attends a dinner with ambassadors from OECD countries in Jakarta on Feb. 28, 2024. (Photo Courtesy of Coordinating Ministry of Economic Affairs)
Chief Economic Affairs Minister attends a dinner with ambassadors from OECD countries in Jakarta on Feb. 28, 2024. (Photo Courtesy of Coordinating Ministry of Economic Affairs)

Jakarta. Senior minister Airlangga Hartarto said late Wednesday that Indonesia’s incoming government was ready to implement the roadmap that would lead to a seat at the Organization of Economic Cooperation and Development (OECD). 

The rich country club recently announced it had begun membership talks with Indonesia. Not long after the announcement, Airlangga hosted a gala dinner with ambassadors from 33 OECD member states in Jakarta. Only representatives from countries who have established embassies in Indonesia were in attendance, thus leaving out Israel. Airlangga told the diplomats how Indonesia had recently held general elections that had almost 205 million registered voters, and that the future government would keep the OECD bid on its agenda. 

“Undoubtedly, the imminent launch of Indonesia’s OECD accession roadmap will coexist with our national agenda as we prepare for the incoming government,” Airlangga told the envoys in the opening session of the dinner on Wednesday evening.

“Our ambition remains to implement Indonesia’s accession roadmap in the next administration,” the chief economic affairs minister said.

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According to Airlangga, the launch of Indonesia’s OECD accession roadmap is expected to take place at the group’s upcoming ministerial meeting this May. Japan will chair the said talks. 

A large part of the dinner was not open to media coverage. The OECD accession process is expected to drive reforms as the group will push Indonesia into implementing its standards on open trade and investment, environmental protection, and anti-corruption measures, among others. 

In a follow-up press conference, Airlangga said that Indonesia had already complied with some of the OECD’s best practices. In 2020, Indonesia passed the job creation law that mainly aimed to cut bureaucratic red tape, particularly concerning investment and business permits.

“Indonesia is ready to make reforms. Because we have done structural reforms in the omnibus law on job creation,” Airlangga told the press. 

Indonesia’s partaking in international trade pacts --particularly those involving OECD nations-- show that Jakarta has implemented the group’s standards, according to Airlangga. The minister stated that Indonesia’s membership to the global money-laundering watchdog Financial Action Task Force (FATF) had earned OECD members’ support. Another proof is Indonesia’s membership in the Indo-Pacific Economic Framework (IPEF), a US-led economic initiative that encompasses fair trade and supply chain, among others.

“We have already complied with the best practice standards that they have. So it shows that it is not something impossible to do. However, countries still have the sovereignty to make their own regulations. Best practices do not mean having uniform standards. It is about having the same values,” Airlangga said. 

He added: “All 38 members support Indonesia’s bid to join the OECD. I’m sure of it.”

The General Election Commission (KPU) is still counting the votes and is expected to announce the results no later than March 20. The latest KPU data shows that Prabowo Subianto-Gibran Rakabuming Raka pairing is in the lead by securing 58.83 percent of the votes. The data covers 77.84 percent of the total polling stations. Whoever gets elected will take over from President Joko “Jokowi” Widodo this October. Airlangga chairs the Golkar party which is among the Prabowo-Gibran’s coalition parties. 

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