Jakarta. The Organization for Economic Co-operation and Development (OECD) has decided to open accession talks with Indonesia, paving the way for Jakarta to reach an advanced economic status.

OECD Secretary-General Mathias Cormann called the decision "historic" as this marked the first application coming from Southeast Asia -- a region that he called held one of the world's most dynamic growths. 

“As the largest economy in Southeast Asia and the world’s third-largest democracy, Indonesia is a significant global player, providing important leadership across its region and beyond. The decision to open accession discussions will benefit both Indonesia and the OECD,” Cormann was quoted as saying in a recent press statement.

“Importantly, Indonesia engaging in this process with the OECD as an accession country will also help to further strengthen our organization’s global relevance and impact,” Cormann said.

Indonesia officially applied to be part of the OECD last July, although it has been a key partner to this rich country club since 2007. 

According to the press release, the decision to open accession talks follows an assessment by the OECD members on the basis of its “evidence-based framework for the consideration of prospective members”. 

The secretary-general will then prepare a draft accession roadmap for Indonesia’s technical review process. Over 20 technical committees will also evaluate whether Indonesia has aligned with the OECD standards. The reviews will result in recommendations for Indonesia to further align with the group’s best practices. The reviews will also encompass areas such as open trade and investment, public governance, anti-corruption efforts, as well as actions to combat climate change.

There is no deadline for the accession process, meaning that the timeline depends on whether Indonesia can adjust to the OECD standards. But it usually takes 5-8 years for a country to reach a full-fledged member status. A new member's admission requires unanimity. In other words, all OECD countries have to give their consent before they can finally accept Indonesia into the group. 

Indonesia has set a goal to be among the world’s largest economies by its centennial in 2045. An OECD membership is expected to drive economic reforms in the country. If accepted, Indonesia will be the third Asian economy to join the OECD after Japan and South Korea.

Indonesia’s bid to the OECD has earned support from the group’s members, including the UK.

In a congratulatory message to Prabowo Subianto on his election win, British Prime Minister Rishi Sunak talked of how the UK also wanted to see Indonesia have a seat in the OECD.

“We have so many areas of shared collaboration. I am committed to deepening UK-Indonesia trading relationship, and have supported Indonesia’s application to join the OECD,” Sunak wrote.