‘Ambitious’ OECD goal puts heat on Indonesia to overcome governance, accountability barriers to accession

Some state agencies are still ‘primarily controlled by the government’, while Indonesia’s score on the global corruption index is below that of OECD nations

Membership could help boost investor confidence, raise global profile and enforce accountability standards in line with OECD practices, analysts say

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The business district of Jakarta, Indonesia, along Jalan Sudirman, one of the city’s main avenues. Photo: Shutterstock

Published: 12:00pm, 31 May 2024

Indonesia this week stepped up its commitment to becoming a member of the Organisation for Economic Cooperation and Development (OECD) within the next three years, but experts say some internal governance and accountability challenges could scupper Jakarta’s “ambitious goals”.

Mathias Cormann, secretary general of the 38-member OECD, made a trip to Jakarta on Tuesday to meet Indonesia’s outgoing president, Joko Widodo, to follow up on discussions over the country’s accession into the bloc that began in February.

After the meeting, Indonesia’s Coordinating Economic Minister Airlangga Hartarto, who chairs the country’s OECD National Team to oversee the accession process, reaffirmed Jakarta’s aspirations to join the group in three years.

“The purpose of this meeting is to provide the latest information on the accession process and the steps that need to be taken by the Indonesian government,” he said.

OECD Secretary General Mathias Cormann during a ministerial council meeting in Paris, France, earlier this month. Cormann met Indonesian President Joko Widodo on Tuesday to discuss Indonesia’s OECD accession. Photo: EPA-EFE

While observers agree that Indonesia appears to be firmly on the path to joining the intergovernmental organisation, there are a number of significant challenges, particularly related to governance standards and institutional reforms, that might set back its three-year plan.

“If we reflect on current conditions, Indonesia will have difficulty keeping up with OECD standards, especially in accountability and state governance,” said Muhammad Rafi Bakri, a data and financial analyst at the Audit Board of Indonesia.