Indonesia Encourages Acceleration Of Accession Of OECD And ASEAN Economic Integration

JAKARTA - Good Regulatory Practices Network (GRPN) is a strategic initiative designed to increase the regulatory capacity of ASEAN countries through collaboration with the Organization for Economic Co-operation and Development (OECD).

Deputy for International Economic Cooperation Coordination, Edi Prio Pambudi, said that the platform plays an important role in strengthening policy frameworks, encouraging economic integration, and supporting ASEAN's goal of becoming a more competitive, inclusive, and resilient region against global challenges.

Meanwhile, through an annual forum involving delegates from various countries, Indonesia affirms its commitment to accelerate the membership accession process in OECD.

Edi said that this process is expected to be a strategic step to align Indonesia's economic policies with international standards, as well as support the economic integration of the ASEAN region which is inclusive and sustainable.

I want to share with colleagues from ASEAN countries, why OECD is important to us, especially in supporting economic integration. Because in the next era, competition will be standard based. We may already have many free trade agreements (FTA). However, in the end, reducing tariffs alone is not enough. We need to align standards to be at an equal level. That way, our trade will run more smoothly," he said in his statement, Friday, November 29.

The cooperation between ASEAN and OECD has been strongly established since the signing of the Memorandum of Understanding (MoU) in February 2022. This MoU has been implemented through various work plans, in which Good Regulatory Practices (GRP) is one of the top priorities.

Edi conveyed one of the important achievements, namely the launch of the ASEAN Handbook on Good Regulatory Practice in December 2022, which is a guideline for improving regulatory quality in the ASEAN region.

The principles contained in the guidebook have been integrated into ASEAN's strategic planning, including the ASEAN Economic Community (AEC) 2025 Blueprint, to support the achievement of a strong, innovative, dynamic, and community-oriented ASEAN Community Vision.

On the same occasion, Deputy Head of the Regulatory Policy Division, OECD's Public Governance Daniel Trnka highlighted the importance of effective regulation in facing global challenges. As well as GRP principles not only support innovation, but also protect people's welfare, encourage public trust, and strengthen government institutions.

Regarding the UK Government's support for regulatory reform in ASEAN, the Charge dAffaires of the UK Mission to ASEAN Benjamin Matthews, who was present online, underlined Britain's commitment to supporting economic integration in ASEAN through knowledge-sharing partnerships, technical assistance, and capacity building.

In the national context, Indonesia has instilled the principles of the GRP in its regulatory framework since 2003, through the introduction of Regulatory Impact Analysis (RIA). Regulational reforms reached a new milestone with the ratification of the Job Creation Act in 2022 to simplify regulations and reduce bureaucratic barriers.

In addition, Indonesia has launched guidelines to face future challenges, such as the digital economy and artificial intelligence (AI), through the White Book of Indonesia's Digital Economy and the National Strategy for AI 2020-2045.

One of the next important milestones is that Indonesia's accession to join OECD and this poses requires structural reforms and improvements in various instruments, including the implementation of the GRP principle as a whole.

In addition, the accession process is in line with Indonesia's vision to improve regulatory quality in order to create a more business-friendly and community-oriented environment, as well as contribute to the realization of the 2045 Golden Indonesia Vision.