Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, announced that Indonesia's accession to the OECD will enter the technical review phase in July 2026. This move is part of efforts to strengthen Indonesia's trade and investment relations in light of global economic challenges.
During a national seminar on Indonesia's accession to the OECD, Hartarto confirmed that the government has submitted a preliminary memorandum regarding the process, paving the way for the upcoming technical review. He noted that this step reflects Indonesia's commitment to enhancing its position in the global economy.
Details of the Event
Hartarto explained that the government hopes the accession process will proceed smoothly, with discussions taking place sector by sector. He pointed out that Indonesia's membership in a multilateral organization like the OECD will bolster its standing in international trade and investment. The OECD comprises 38 countries, highlighting the significance of this step for Indonesia.
The OECD is an international organization focused on setting policy standards aimed at promoting economic growth, trade, and improving global welfare. The Indonesian government expressed its intention to join the organization in 2023, receiving the accession roadmap on May 2, 2024.
Background & Context
Historically, Indonesia has sought to enhance its economic relations with developed countries, and the accession process to the OECD is part of this strategy. On June 3, 2025, Indonesia submitted a preliminary memorandum containing a self-assessment of its national regulations' compliance with OECD tools, reflecting its readiness to adhere to international standards.
In this context, the OECD Secretary-General, Mathias Cormann, affirmed that Indonesia's accession is one of the most significant economic reform journeys of the current decade, noting that the private sector will be the main driver of this process.
Impact & Consequences
The accession process to the OECD is expected to contribute to improving the business environment in Indonesia by enhancing laws, increasing competition, and improving overall integrity. The accession will involve a comprehensive review by 25 technical committees across various policy areas, including trade, investment, and innovation.
This development may open new avenues for foreign direct investment in Indonesia, boosting economic growth and increasing job opportunities. Additionally, joining the OECD could help Indonesia better address global economic challenges.
Regional Significance
Given the increasing economic relations between Indonesia and Arab countries, Indonesia's accession to the OECD could open new areas for trade and investment cooperation. Arab nations could benefit from Indonesian experiences in areas such as innovation and economic development.
In conclusion, Indonesia's accession to the OECD represents a strategic step toward enhancing its economic position on the international stage, which could positively impact trade relations with Arab countries.