TEMPO.CO, Jakarta - Indonesia has submitted the Initial Memorandum to the Organisation for Economic Cooperation and Development (OECD) during the OECD Council Ministerial Meeting in 2025 in Paris, France, on Tuesday, June 3, 2025.
The Coordinating Minister for the Economy, Airlangga Hartarto, revealed several benefits if Indonesia successfully secures ratification. "This is a good image for the market because it provides knowledge about the adoption of Indonesian standards and best practices in various sectors," Airlangga said in an online press conference from Paris on Wednesday night, June 4, 2025.
Airlangga said the OECD has always been a benchmark for global policies. Thus, the OECD can act as a buffer for Indonesia's trade, as 3 out of 4 countries have obtained accession. "Once Indonesia's accession is accepted, these 34 countries will open their markets to Indonesian goods and services." Therefore, Airlangga said that membership could make Indonesian products more competitive and expand their market.
In addition, Airlangga said, OECD accession could expedite and increase the value of investment, even though the global economic conditions are not good. "Investment interest and perceptions in countries with the same best practices can develop relatively quickly."
Aside from being a breath of fresh air for Indonesian trade, the Indonesian Ambassador to France, Mohammad Oermar, said OECD accession also facilitates foreign direct investment (FDI). "According to data, the source of direct investment to various countries is around 70 percent." Thus, Oemar said, access to international investment funds for national development will be more open.
Oemar also highlighted the crucial role of the OECD as the administrator of approximately 90 percent of official development assistance (ODA). If Indonesia obtains full membership, it will have the opportunity to discuss various formulas to support countries in need of development assistance with OECD members. "This does not mean that Indonesia depends on development aid," he said.
Indonesia is still in the early stages of the ratification process. The government targets completion of accession within four years. In the next two years, a technical review of the documents prepared by the Indonesian government is planned.
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