Indonesia is on the brink of joining the Organization for Economic Cooperation and Development (OECD), aiming to strengthen its investment climate and rival Singapore as a Southeast Asian investment hub.
Indonesia is nearing a significant milestone in its ambition to join the OECD, potentially enhancing its position as a major investment destination in Southeast Asia.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, announced that Indonesia has entered the accession phase to join the OECD. Unlike Argentina, which took five years to reach this stage, Indonesia has advanced to this critical phase in just seven months.
Photo: Detik Finance (2024)
Indonesia has garnered support from 38 countries for its OECD membership and is now preparing to submit an initial memorandum, detailing its alignment with OECD standards across various policy areas.
Airlangga expressed confidence that OECD membership would significantly boost Indonesia’s ability to attract foreign investment, potentially outpacing Singapore in attracting American investments and other global funds.
Indonesia has set a goal to complete the accession process within three years, drawing parallels with Chile’s swift accession. The process is overseen by a dedicated project management office under the Ministry of Economic Affairs to expedite the integration.
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OECD Secretary-General Mathias Cormann is scheduled to meet with President Joko Widodo by the end of the month, underscoring the strategic importance of this accession.
Indonesia’s potential OECD membership signals a significant shift in the regional investment landscape. This move is expected to bolster Indonesia’s economic reforms and position it as a leading destination for foreign investments in Southeast Asia.
Indonesia is poised to enhance its global economic standing by joining the OECD, aiming to attract more investments and rival Singapore as a key player in the regional market. This strategic move underscores Indonesia’s commitment to aligning with international best practices and economic policies.
Source: Detik (2024)
