Airlangga Calls Regulatory Alignment A Challenge In Accessing OECD

JAKARTA - The alignment of various regulations with standards set by the Organization for Economic Co-operation and Development (OECD) is considered a major challenge in the accession process.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the challenge was of course benchmarking regulations to best practices.

"And of course to bring all ministries to the same frequency," said Airlangga quoting Antara.

Airlangga said that the challenge for policy synchronization was not only faced by the central government, but also local governments which also contributed to implementing the rules that were in harmony later.

"Of course this is a practical challenge that we must see in the future, which therefore is not only in terms of the commitment of the central government, but the implementation also runs up to the local government," he said.

Currently, Indonesia is focusing on compiling an 'Initial Memorandum' as a fulfillment of the standards and full membership requirements of the OECD. The memorandum will be a tool for Indonesia to convey to the world regarding the reforms to be carried out.

The initial Memorandum includes 26 sectors in the OECD "steering commitment". Memorandums compiled include from the financial, economic, anti-corruption sectors, healthy competition, consumer policy, digital economy, to polycy technology.

Coordinating Minister Airlangga explained, during the accession process, the National Team for the Acceleration of OECD will also involve all parties related to the 26 sectors to complete the Initial Memorandum.

"We have some, for example, related to the practice of not corruption. We have joined the FATF (Financial Action Task Force). Then our transparency also exists. For example, the KNKG (National Committee for Governance Policy). Then there is in terms of taxation, we also have data exchange that we have ratified. So we have done some fundamentals," explained Airlangga.

On the same occasion, OECD Secretary General Mathias Cormann said the OECD accession process could help design future reform momentum.

Access to OECD can help continue the positive transformation of the country's economy and help provide further improvements in people's income and living standards to support Indonesia's ambition to become a developed country by 2045.

"The process is to realize development, trade and investment, new infrastructure, ensure higher quality and accessible education reforms to further improve the business environment in Indonesia, simplify regulations, encourage digital transformation, strengthen anti-corruption measures that further increase investment in human resources, and more," said Mathias Cormann.