- Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto ("Coordinating Minister"), has affirmed that Indonesia is striving to comply with all of the requirements that have to be met in order to become a full member of the Organization for Economic Cooperation and Development ("OECD") within three years. While Indonesia has been a successful OECD participant over the last six months, the Coordinating Minister has stated that several remaining requirements must still be fulfilled.
- Acknowledging the ambition that will have to be realized in order to become a full member of the OECD, the Coordinating Minister has stated that OECD membership has already gained political support under the 2025 - 2045 National Long-Term Development Plan. Moreover, the Coordinating Minister has affirmed that the government is currently implementing structural reforms through the framework of Law No. 11 of 2020 on Job Creation, as amended by Regulation of the Government in Lieu of Law No. 2 of 2022, which amends around 70 laws, a process that would otherwise take up to 70 years to realize under normal circumstances. These reforms have boosted Indonesia’s competitiveness ranking from 34 to 27 according to the Institute for Management Development (IMD).
- In order to expedite the country’s OECD accession, the government is currently focusing on drafting an initial memorandum as part of the requirements and standards that have to be met in order to become a full member of the OECD. This initial memorandum broadly covers 26 sectors (e.g. finance, digital economy, technology and so forth).
- According to the Coordinating Minister, Indonesia’s membership of the OECD is essential if the country is to escape the so-called “middle income trap”. In this regard, it has been predicted that Indonesia’s per capita income could rise from its current level of US$ 5,000 to between US$ 26,000 and US$ 30,000 by 2045, positioning it as the world’s fourth-largest economy with a gross domestic product (GDP) of US$ 9 trillion. However, achieving these figures will require sustained economic growth of 6% - 7% annually and investment growth of nearly 7% per year. (ANT)
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