Indonesia’s OECD Accession Technical Review to Resume in July: Key Step for Competitiveness and Investment Growth

Indonesia’s OECD accession technical review is set to resume in July, following a pause in negotiations that began in 2023. The Organisation for Economic Co-operation and Development confirmed the timeline during a bilateral meeting with Indonesian officials in Jakarta, stating that working groups will reconvene to assess Indonesia’s alignment with OECD standards in areas including regulatory reform, public governance, and market openness. The resumption comes after Indonesia formally submitted its memorandum of understanding to the OECD in late 2022, initiating the accession process. Since then, technical evaluations have proceeded intermittently, with delays attributed to domestic policy adjustments and global economic shifts. Indonesian authorities have emphasized that the review is not a formality but a rigorous assessment requiring measurable progress on commitments related to competition policy, tax transparency, and environmental sustainability. Kadin, Indonesia’s chamber of commerce and industry, welcomed the announcement, noting that OECD membership would enhance the country’s credibility in global investment circles and support ongoing efforts to improve the business environment. The organization cited recent reforms in licensing procedures and foreign investment regulations as evidence of Indonesia’s readiness to meet OECD benchmarks, though it acknowledged that further perform remains, particularly in state-owned enterprise governance and digital trade rules. Airlangga Hartarto, Indonesia’s coordinating minister for economic affairs, reiterated that OECD accession is central to the nation’s strategy to boost competitiveness and economic resilience. He pointed to the Rp1,400 trillion in investment secured over the past three months — spanning manufacturing, infrastructure, and green energy projects — as proof of growing international confidence in Indonesia’s economic trajectory. Hartarto stressed that OECD alignment would aid consolidate these gains by anchoring reforms in internationally recognized frameworks. The OECD has not issued a public timeline for when Indonesia might achieve full membership, noting that accession timelines vary significantly based on national performance. Current members undergoing similar reviews have typically required two to four years to complete the process, depending on the pace of reform implementation. Indonesia’s delegation has indicated it aims to conclude the technical phase by late 2025, contingent on sustained progress in priority areas. No official statement has been released by the OECD Secretariat regarding potential obstacles or outstanding conditions tied to Indonesia’s accession. Diplomatic sources familiar with the process say that while political commitment remains strong, technical teams are still negotiating the scope of commitments in sectors such as agriculture subsidies and financial sector oversight. The next scheduled meeting of the OECD accession working group is set for early July in Paris, where Indonesian representatives will present updated progress reports on regulatory impact assessments and anti-bribery enforcement. Further sessions are expected throughout the third quarter, with a mid-year review planned to evaluate whether benchmarks are being met on schedule.