Coordinating Minister Airlangga: Indonesia Strives To Meet OECD Requirements In 3 Years

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto. (Photo: Doc. ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia is trying to meet all requirements to become a full member of the Organization for Economic Cooperation and Development (OECD) within three years.

Airlangga said Indonesia managed to enter OECD within six months, but there are still requirements that must be met to become a full member.

"Brazil to enter OECD for five years, (Meanwhile) Indonesia for six months. Therefore, we will also encourage in three years to meet all requirements (to become a full member)," said Airlangga as quoted by ANTARA, Wednesday, July 24.

He admitted that the move was ambitious but the Organization for Economic Cooperation and Development (OECD) had also received a political umbrella in the form of the 2025-2045 National Long-Term Development Plan (RPJPN) law.

"THE OECD already has a hook, and thus it is hoped that we can carry out the best practice carried out by the OECD," he said.

He revealed that the government is currently carrying out structural reforms through the Job Creation Act.

Indonesia revised around 70 laws.

"The usual route takes 70 years. And this is one of the changes and breakthroughs made," he said.

According to the Coordinating Minister for the Economy, with this breakthrough, Indonesia's competitiveness rating according to the Institute for Management Development (IMD) increased from 34 to 27.

"So actually some of these steps have been recognized by several countries in the world," said Airlangga.

He added that efforts to meet the OECD requirements will continue to be encouraged so that Indonesia can immediately become a full member and enjoy the benefits of this membership.

"We are one of the countries that wants to move up towards high-income countries. And OECD is a country with high income. Therefore, by entering access to OECD, Indonesia is a country that is in the process of entering the fastest OECD," said Airlangga.

Currently, Indonesia is focusing on compiling an Initial Memorandum as a fulfillment of standards and full membership requirements for 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.

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.

Airlangga assessed that it is important for Indonesia to become an OECD member in order to be able to get out of the trap of middle income traps.

"If we look now, Indonesia has a per capita income at the end of this year of around 5 thousand US dollars," he said.

According to him, Indonesia, which currently has a population of around 270 million people with a per capita income of around 5 thousand US dollars, in 2045 it is estimated that it will have 320 million inhabitants with a per capita income of between 26 thousand and 30 thousand US dollars.

If they manage to escape the middle income trap, Indonesia will occupy the fourth largest position in the world, with gross domestic income (GDP) of around US$9 trillion per capita.

In addition, in the long term, Indonesia still has various challenges, namely economic growth must reach 6-7 percent. With investment, the average growth is close to 7 percent per year.

"Presiden terpilih papak Prabowo Subianto berharap pertumbuhan kita bisa mencapai 8 persen di tahun ketiga, empat, atau lima. Kemudian ada juga tantangan untuk keluar dari middle income trap. Ini kita punya tantangan agar pertumbuhan kita bisa dalam income 6-7 persen ke depan," kata Airlangga.