Indonesia Seeks to Become OECD Member State by 2027

Coordinating Minister for Economic Affairs delivers a press statement at the Presidential Palace Complex, Thursday (05/16). (Photo by: PR of Cabinet Secretariat/Rahmat)

Indonesia has been accepted as an accession member of the Organization for Economic Cooperation and Development (OECD) and thus seeks to become a member state within three years.

Coordinating Minister for Economic Affairs Airlangga Hartarto, in a press statement following a limited meeting on Thursday (05/16) at the State Palace in Jakarta, stated that Indonesia was accepted as an accession state along with Argentina at the OECD Ministerial Council Meeting (MCM) led by Japanese Prime Minister (PM) Fumio Kishida in Paris, May 2-3.

“At the Ministerial Council Meeting, Indonesia and Argentina’s proposal was approved. Argentina has gone through a five-year process until that meeting, while Indonesia has begun the process with a letter sent by the OECD seven months ago,” he said.

Airlangga pointed out that accession states are states that are in the process of becoming members, adding that other accession states are Brazil, Bulgaria, Croatia, Peru, and Romania, all of which have begun their membership process for more than two years.

“As for the countries that have become members after being accession states, Costa Rica took six years [to change the status], Colombia took seven years, and Chile took three years. We must learn from Chile, [learn] how they can become a member in a shorter period,” he said, adding that Indonesia has been an OECD partner since 2007 and has participated in its Southeast Asia regional programs since 2014.

Airlangga also stated that the limited meeting also discussed Indonesia’s initiatives in the Indo-Pacific Economic Framework (IPEF), which covers four important pillars, adding that Indonesia has finished negotiations concerning the second pillar of supply chains and is set to complete the first pillar of trade.

“We have not yet finished pillars related to labor, environment, digital economy, and trade facilitation and competition policy. No countries have completed those,” he said.

According to Airlangga, President Jokowi also highlighted the importance of semiconductors and critical minerals in the current global context.

Airlangga also said that the President has ordered the Endowment Fund for Education Agency (LPDP) to promote scholarships in microelectronics, which is strategic for the development of the semiconductor industry, adding that the Government has begun to build cooperation on human resources in the sector with Germany.

“During a meeting with the minister in Germany, I reported that we have been preparing Indonesian human resources to cooperate with Germany so that they can participate in their chip academy and intern at the semiconductor companies that they are building,” he said.

Airlangga expressed hope that participation in the OECD will bring a positive economic impact on Indonesia through increasing investment and adoption of best global practices and strengthen Indonesia’s standing in the global semiconductor ecosystem. (TGH/UN) (DH/MMB)