Indef: OECD Policy Can Provide Great Benefits For Indonesian Economic Stability

Photo: Doc. Antara

JAKARTA - The Institute for Development of Economics and Finance (Indef) said that the policies of the Organization for Economic Cooperation and Development (OECD) could provide benefits to Indonesia.

Head of the Center of Macroeconomics and Finance Indef M Rizal Taufikurahman gave the example that the OECD prioritizes the economic stability of each of its members. Therefore, if Indonesia succeeds in becoming an OECD member, it will indicate that Indonesia has achieved economic stability.

“Economic stability is very important for OECD members. "So, it is hoped that economic growth will also be controlled," said Rizal in an online Indef discussion in Jakarta, quoted from Antara, Tuesday 15 August.

Apart from economic stability, the OECD also prioritizes structural reform factors. Rizal said that this factor needed to be an important note for Indonesia, namely how reform could increase economic efficiency and productivity.

This also needs to be accompanied by a commitment to a number of sectors, especially finance, education, health, and infrastructure.

Rizal added that transparency and implementation of international standards required by the OECD could improve the quality of Indonesia's financial and taxation systems.

The OECD also prioritizes human rights (HAM) as well as the environment and sustainability which its members need to fulfill.

"So, Indonesia needs to be committed to the environment in order to reduce negative impacts," said Rizal.

Furthermore, Rizal also touched on the benefits that South Korea received after joining the OECD. OECD membership opens up opportunities for cooperation for South Korea with other member countries in the field of taxation.

Rizal sees this as an advantage, especially considering that most of the countries that are members of the OECD are developed countries.

"Because OECD countries are strong countries and have stable economic growth, good productivity, high per capita income, of course, the cooperation carried out is cooperation that can support each other so that the economy between member countries can also be equal," explained Rizal.

For this reason, with plans to join the OECD membership, it is hoped that Indonesia can also receive these benefits.