RI And OECD Get More Friendly, Renew Sustainable And Inclusive Economic Cooperation

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The Indonesian government through the Ministry of Finance is said to renew cooperation with the Organization for Economic Cooperation and Development (OECD) which is summarized in the Framework of Cooperation Agreement (FCA) for the next five years.

Not only that, collaboration is also strengthened with the Joint Work Program (JWP) as a guide for cooperation between the two parties during 2022-2025.

Minister of Finance (Menkeu) Sri Mulyani said JWP focused on business climate reform and dynamic growth, social policies and inclusive growth, good governance, and green growth.

"JWP also assists Indonesia in implementing its commitments under the 2030 Sustainable Development Agenda," he said in a press statement on Saturday, July 16.

According to the Minister of Finance, further synergies will support Indonesia in pushing for policy reforms according to the government's priority agenda in the National Medium-Term Development Plan (RPJMN), achieving a resilient and sustainable recovery from the COVID-19 pandemic crisis.

"This program will focus on several priority issues, namely macroeconomic policies, strong tax compliance and governance, investment climate and digitalization, human resources and social inclusion, and sustainable development," he said.

To note, Indonesia's cooperative relationship with the OECD has continued since 2007, when the OECD designated Indonesia as a strategic partner, along with Brazil, China, India and South Africa.

The areas of cooperation between Indonesia and the OECD include tax policies that provide more certainty for the business world, strong macroeconomic policies, and better governance.

Meanwhile, Indonesia along with other G20 member countries also gave a mandate to the OECD to overcome tax challenges arising from economic digitization which eventually became the 15 BEPS (Base Erosion and Profit Shifting) Action Plan.

Indonesia is also a member of the BEPS Inclusive Framework and has expressed approval to join multilateral efforts against the erosion of the tax base and shifting profits through the Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalization of the Economy, including minimum taxes.