Indonesia is the largest economy in the rapidly growing region of Southeast Asia and a member of the G20. A young and dynamic workforce is driving high-potential growth and poverty has markedly declined, although it remains a challenge for the country.
Building on Indonesia’s growth momentum, its new leadership has committed to implementing structural reforms to stimulate investment, notably by improving the business environment and increasing infrastructure spending. However, sustaining growth and improvements in well-being will require additional measures to boost productivity and improve access to basic social services.
Working with the OECD
The OECD-Indonesia cooperation is guided by a biennial Joint Work Programme, which is being renewed for the period 2017-2018. Indonesia's co-operation with the OECD focuses on the following priority areas for the country:
The OECD actively supports the government in implementing its reform agenda in many policy areas, including macroeconomic policy, tax, investment, regulatory policy, budgeting, financial education and financial affairs, education, agriculture, trade and anti-corruption.
Indonesia was the first of the OECD’s Key Partners to sign a Framework of Co-operation Agreement in 2012, followed by the Privileges and Immunities Agreement in 2013. Its partnership with the OECD has served as a valuable motor to advance co-operation, including with the launch of the OECD Southeast Asia Regional Programme in 2014 and the opening of a representative office in Jakarta in 2015.
The partnership has delivered important tools, such as regular economic surveys which provide in-depth analysis of policies for inclusive and sustainable growth. Reviews on Investment Policy (2010), Regulatory Reform (2012), and Educational Policy (2015), along with Open Government (2016), have facilitated the implementation of policy reforms. Indonesia is also a member of the Global Forum on Transparency and Exchange of Information for Tax Purposes, and the Indonesia-OECD Corporate Governance Policy Dialogue.
Indonesian ministers have regularly attended and contributed to the OECD Ministerial Council Meetings and the country participates actively in the substantive work of the OECD’s specialised committees where senior officials from Member countries and non-Member economies meet to advance ideas and review progress in an array of policy areas.
This engagement provides an excellent basis to further develop and deepen OECD-Indonesia co-operation and partnership.
How is the co-operation organised?
The OECD’s Global Relations Secretariat develops and oversees the strategic orientation of this relationship and ensures that the dialogue remains focused, forward-looking and mutually beneficial. Usually, meetings are held between Indonesian officials and experts from OECD countries and the OECD Secretariat, on topics mutually agreed on and jointly prepared with analytical studies.
The OECD Jakarta Office also plays a key role in this respect, serving as a platform for intensified OECD work with Southeast Asia to foster mutual learning and the exchange of good practices between stakeholders from the region and the OECD. It also supports the implementation of the biennial Work Programme with Indonesia, helps to implement the Southeast Asia Regional Programme, and fosters close collaboration with regional organisations such as ASEAN, ADB, APEC, AMRO, ERIA, and UNESCAP.
Vice-President of Indonesia Muhammad Jusuf Kalla greets OECD Secretary-General Angel Gurria during the 2015 Southeast Asia Regional Forum.