(Jakarta, 23/7) – International NGO Forum on Indonesian Development (INFID), Center of Economic and Law Studies (CELIOS), The PRAKARSA, Transparency International (TI) Indonesia, Publish What You Pay (PWYP) Indonesia, and Migrant CARE have completed a rapid assessment “Indonesia’s Accession to the OECD from a Civil Society Perspective”. In general, this study considers that Indonesia’s current policy governance is still far from high OECD standards. Indonesia still has complex homework to adapt to OECD policy recommendations.

This was stated at the dissemination event for this study on Tuesday, July 23 2024 in Jakarta. This study of civil society was carried out across issues with six themes, namely; (1) Understanding the Political Position of Indonesia’s Economic Liberalization and Geopolitics towards the OECD; (2) Decent Work and Safe Migration Agenda in Indonesia’s Accession to the OECD; (3) The Urgency of Improving the Basic Elements of a Welfare State in Indonesia’s Accession Efforts as an OECD Member; (4) Eradicating Corruption in Indonesia and OECD Accession; (5) Indonesia’s Accession to the OECD and Implementation of Responsible Business Conduct (RBC) in the Extractive Sector; and (6) Looking at Development Fund Grant Opportunities for the CSO Sector in Indonesia’s OECD Accession.

This study looks at Indonesia’s challenges and development which are in the spotlight in Indonesia’s accession to the OECD amidst Indonesia’s aspirations to become a developed country and the ambition of a Golden Indonesia 2045. Indonesia, for example, has the challenge of how to provide a competitive market for domestic business actors whose activities are mostly The current economy is still supported by the MSME and informal sectors. Apart from that, civil society also considers how necessary the label of developed country is when compared to domestic budget needs. “Ideally, Indonesia would become a developed country first because the history of the OECD is a group of developed countries. With this situation, Indonesia (it is feared) will spend a lot of funds in the OECD accession process.” responded Bhima Yudhistira from the Center of Economic and Law Studies (CELIOS) and is one of the authors of this study.

In contrast, the ‘developed country’ status that the government is fighting for also needs to be seen from a critical perspective on how this status is able to empower civil society. Moreover, this ‘developed country’ status will mean that support for international development grants for civil society and the government will decrease, because Indonesia’s economic situation is increasingly improving. On the other hand, the Indonesian government does not yet have a domestic development funding scheme when the time comes for international grant funding to stop. By regulation, fellow OECD member countries cannot receive aid from each other. “The irony is that the Indonesian government even create a grant fund scheme for foreign countries in 2019. Indonesia needs to immediately establish a domestic non-governmental organization (NGO) endowment fund, because NGO endowment funds not only empower and increase the role of civilians, but can also contribute to increasing the democracy index and corruption index. continues to decline,” explained Bona Tua Parlinggomon, writer from INFID.

The situation dealing with corruption also continues to decline. Indonesia’s 2023 Corruption Perception Index score launched by Transparency International Indonesia puts Indonesia’s stagnant handling of corruption at a score of 34, which makes Indonesia ranked 115th out of 180 countries. This score places Indonesia below the scores of Timor Leste (43) and Vietnam (score 41).

“The situation of weakening handling of corruption continues to occur in Indonesia. This situation is in stark contrast to Indonesia’s ambition to become a developed country with minimal corruption, high integrity and open governance from the government and the private sector. “We hope that the KPK leadership selection situation can be accountable and the KPK committee can work independently without intervention from any party,” stressed Wawan Sudyatmiko, writer from Transparency International in Indonesia.

As a country with abundant natural resources and many businesses in the extractive sector, Indonesia must maintain its commitment to implementing responsible business regulations. “Responsible businesses not only report to the public, but also consider environmental and sustainability aspects. This must be a priority for the government and private sector in Indonesia’s OECD accession. “The government must increase awareness and compliance regarding corporate responsibility along with incentives for those who have successfully demonstrated corporate integrity,” said Meliana, author of Publish What You Pay in Indonesia (PWYP).

Other challenges also come from the competency side of human resources and employment policies in Indonesia. Instead of complying with international standards, civil society considers that the Omnibus Law on the Job Creation Law does not protect workers, including migrant workers. “There must be efforts for safe migration and protection of overseas workers in accordance with OECD principles and human rights. “Indonesia must immediately prepare a road map for decent work, especially for migrant workers, so that security and welfare for migrant workers can be guaranteed,” explained Wahyu Susilo, study author from Migrant CARE.

In the end, Indonesia’s entry into the OECD should not only mean that Indonesia is ‘forced’ to follow international standards. Rather, it needs to be an opportunity to strengthen Indonesia’s influence in producing international policies that benefit national interests. “Indonesia is also expected to not only accept OECD standards but also need to provide recommendations for improvements to the OECD,” emphasized Ah Maftuchan, writer from The PRAKARSA.

Civil society believes that Indonesia’s accession to the OECD must prioritize national development interests that are oriented towards the welfare of the people. This is in accordance with tagline the OECD “Better Policies for Better Lives”. The people need to be at the center of all decisions, because it is often the people who bear the burden of the implications of asymmetric development economic policies. High and rigorous OECD policy standardization needs to be utilized to improve people’s welfare, both in the economic, health, education, fulfillment of decent work sectors, environment, accompanied by transparent and accountable governance. (END)

Contact person:

Angelika Fortuna, Program Officer for Sustainable Development Goals (SDGs) INFID, angelika@infid.org

Download publication: s.id/INFIDaboutOECD