COORDINATING MINISTRY FOR ECONOMIC AFFAIRS
REPUBLIC OF INDONESIA

PRESS RELEASE
HM.4.6/290/SET.M.EKON.3/05/2024

Indonesia: Step Toward the Global Player

Paris, May 2nd, 2024
 

Today, Airlangga Hartarto, Coordinating Minister for Economic Affairs, will join the Organisation for Economic Cooperation and Development (OECD) Ministerial Council Meeting in Paris to launch Indonesia's historic Accession Roadmap. This significant step reinforces Indonesia’s economic transformation, as well as having far-reaching implications for the region and the global economy.

The OECD accession process is not just about Indonesia, it's about opening new avenues for trade and investment, diversifying linkages with advanced economies, and fostering innovative approaches for cooperation and development. These developments are set to deliver substantial benefits, supporting prosperity throughout Southeast Asia.

Indonesia's unique position as the largest economy in the dynamic ASEAN region is underscored by the level of support shown by OECD members. As a key partner for 17 years, Indonesia's closer collaboration with OECD members is consequential to the organisation's role in a changing global system. It has been less than a year since Minister Airlangga sent the letter on behalf of the Government of Indonesia requesting open accession discussions. Indonesia is the first country in Southeast Asia to become an accession country, representing only the third country from Asia, following Japan and South Korea, who joined decades ago.

Welcoming Indonesia to the OECD is a step toward a more inclusive membership against rising global fragmentation and geopolitical uncertainty. As a new OECD accession country ― the fourth most populous in the world and third largest democracy ― Indonesia dramatically boosts the organisation’s global legitimacy and the enlargement of its mission of Better Policies for Better Lives throughout the Indo-Pacific.

With the potential to emerge as the world's fourth-largest economy by 2045 and a projected GDP of USD9.8 trillion, Indonesia is also a key player in promoting the interests of the Association of Southeast Asian Nations (ASEAN) and the OECD in the global economy. The accession process and rigorous technical peer reviews will ensure that Indonesia, a major emerging market economy and G20 member, will play an outsized role in amplifying OECD standards and practices and the ASEAN principles of sovereignty, cooperation, and consensus-building, which are the enduring foundation of peace and stability in the region.

In the near term, Indonesia will benefit because the Accession Roadmap guides better policymaking and a more robust business-enabling environment, helping to improve well-being throughout its archipelago of more than 17,000 islands. Despite Indonesia’s remarkable successes in consolidating political and macroeconomic stability, expanding trade and investment, and significantly reducing poverty, becoming a newly upper-middle-income country presents new challenges. However, these challenges also present opportunities. Embracing change and identifying new approaches to economic cooperation and development can move Indonesia forward, helping to avoid stagnation and the middle-income trap.

To become an advanced economy by 2045, as envisaged in Indonesia Emas, it is critical to lift growth and deliver higher-quality growth at 6-7% over the next 20 years. Swiftly implementing the roadmap and aligning the Medium-Term Development Plan 2025-2029 will build a platform for a step change in Indonesia's standards and practices, setting a trajectory to future-proof economic productivity, competitiveness, and resilience. (dep7/map/fsr)

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The Spokesperson of Coordinating Ministry for Economic Affairs
Head of Communications, Information Services, and Meetings Bureau
Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Haryo Limanseto

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