First in the Region: Indonesia's Road to OECD Membership in 2-3 Years

First in the Region: Indonesia's Road to OECD Membership in 2-3 Years
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Indonesia has set an ambitious goal to complete the process of joining the Paris-based Organization for Economic Cooperation and Development (OECD) within two to three years, according to Airlangga Hartanto, Coordinating Minister for Economic Affairs of the Republic of Indonesia. As the largest economy in Southeast Asia, Indonesia wants to increase its investment attractiveness and negotiate more trade agreements by becoming an OECD member.

Known as the "club of developed countries," the organization recently announced the opening of membership talks with Indonesia. Shortly after the announcement, Hartanto hosted a dinner in Jakarta with ambassadors from 33 OECD member countries. Only representatives of countries with embassies in Indonesia were present, excluding Israel. The dinner was held mostly in private, with no media coverage.

Hartanto expressed optimism that Indonesia will be accepted as an OECD member, as the country has adhered to several OECD best practices. In 2020, Indonesia successfully enacted the Job Creation Law, which is mainly aimed at reducing bureaucratic barriers, especially regarding investment and business permits.

He also mentioned that Indonesia will work with the OECD to finalize the roadmap document detailing the requirements, conditions, and stages of accession, which will be presented at the OECD Ministerial Council meeting in May.

It is hoped that the accession process will be completed within 2 to 3 years. For your information, Indonesia is the first Southeast Asian country to apply for OECD membership.

Indonesia will undergo a rigorous review during the OECD accession process, including comprehensive assessments on trade, anti-corruption and climate change issues. This is done to verify Indonesia's compliance with OECD standards.

The OECD has stated that there is no set deadline for the completion of this accession process. Its completion depends on Indonesia's ability to align itself with the standards and best practices advocated by the OECD.

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