Indonesia and Thailand Embark on Historic OECD Accession Journey

 

In a significant development for Southeast Asian economic integration, Indonesia and Thailand have begun formal accession discussions with the Organisation for Economic Co-operation and Development (OECD), marking the first candidate countries from the region since South Korea joined in 1996.

 

The milestone was highlighted during a high-level panel discussion titled "OECD membership – the journey and the destination," which was part of the broader OECD Southeast Asia Regional Forum on Friday.

 

The session brought together senior officials from both nations alongside OECD representatives to explore the significance and implications of this historic process.

 

The panel, moderated by Australia's First Assistant Secretary at the Department of Foreign Affairs and Trade, Robyn Mudie, provided a comprehensive overview of the accession journey and its potential to catalyse domestic reforms while elevating the region's voice in global economic governance.

 

 

A Rigorous Path to Membership

Gita Kothari, OECD's Deputy Director for Legal Affairs and Accession Coordinator, outlined the comprehensive nature of the accession process, describing it as "a multi-year technical dialogue" that encompasses numerous policy areas.

 

Gita Kothari

 

"The OECD accession process involves three phases: political approval, technical review, and a final decision by the OECD Council," Kothari explained. "Countries submit an initial memorandum—a self-assessment of their current alignment with OECD standards—and then work closely with OECD committees to implement reforms."
 

 

She emphasised that the process serves as more than just an assessment mechanism: "This process acts as a catalyst for change, helping countries transform their economies and governance structures."

 

According to Kothari, the accession journey requires comprehensive stakeholder engagement and sustained political commitment, as countries undergo evaluations across multiple policy dimensions ranging from investment frameworks to environmental standards.

 

 

Indonesia's Vision: Leveraging OECD Membership for Long-term Growth

Indonesia's Deputy Minister from the Ministry of Investment and Downstream Industry, Tirta Nugruha Mursitama, articulated how OECD accession aligns with the nation's broader economic ambitions.

 

Tirta Nugruha Mursitama

 

"Indonesia aims to transform into a high-income country through structural reforms, digital economy development, and social policy improvements," Mursitama stated. "Joining the OECD will support our efforts to attract investment, promote transparency, and align our policies with global norms."

 

The Deputy Minister highlighted Indonesia's target to become a high-income nation by 2045, viewing OECD membership as a strategic enabler for this vision. He emphasised the importance of domestic consensus-building around the necessary reforms.

 

"Reforms require the support of all sectors—government, business, and civil society—and the OECD process helps us build that consensus and momentum," Mursitama explained.

 

He revealed that Indonesia plans to submit its initial memorandum by mid-2024, demonstrating the country's commitment to advancing the accession process.

 

 

"Joining the OECD represents an opportunity for Indonesia and Thailand to demonstrate their commitment to international standards," added Mursitama. "It's a journey that benefits our economies, citizens, and regional stature."

 

 

 

Thailand's Journey: Building on Decades of Engagement

Chutintorn Gongsakdi, secretary to the Minister for Foreign Affairs of Thailand, provided historical context for Thailand's relationship with the OECD, which dates back to 1981.

 

"Thailand has always supported multilateralism and international standards," Chutintorn noted. "Our relationship with the OECD has been longstanding, and joining as a full member is a natural step to deepen our participation in global economic governance."

 

Chutintorn Gongsakdi

 

Chutintorn outlined Thailand's ambitious timeline, aiming for accession by the end of 2030, and highlighted the dual benefits of membership—both domestic and regional.

 

"We see OECD membership as a way to support our domestic reforms, promote good governance, and strengthen regional leadership," he said. "It's also about sharing our experiences and learning from others."

 

The Thai official emphasised the importance of OECD standards as benchmarks for policy development and how the accession process serves as a framework for implementing reforms across multiple sectors of the economy.

 

 

 

Building on Established Relationships

Andreas Schaal, Head of the OECD's Global Relations and Cooperation Directorate, provided valuable historical context on the organisation's engagement with both countries.

 

"Indonesia has been a key partner since 2007, and Thailand's engagement dates back to the early 2000s," Schaal noted. "Over the years, these countries have participated actively in OECD programs, co-chaired regional initiatives, and contributed to policy discussions, laying a solid foundation for their accession ambitions."

 

Andreas Schaal

 

Schaal emphasised that the formal accession process builds upon years of prior collaboration and policy alignment.

 

"The accession process is a way to formalise and deepen these relationships while bringing tangible reforms at the national level," he explained.

 

Drawing on the experiences of previous accession countries, Schaal highlighted the transformative potential of the process: "Countries have used the accession journey to improve their business climate, reduce inequalities, and enhance environmental sustainability. In the past, reforms like removing bank secrecy in Chile or overhauling state-owned enterprises in Slovenia have shown how the process can be a powerful catalyst."

 

 

 

Regional Significance

The panel underscored that the accession of Indonesia and Thailand represents more than bilateral engagement with the OECD—it signifies a broader recognition of Southeast Asia's growing economic importance.

 

"This is a journey of mutual benefit—bringing new voices into the OECD and positioning Indonesia and Thailand as trailblazers in Southeast Asia's integration into global standards," Schaal concluded.

 

Both countries' representatives acknowledged their potential role as regional leaders, with their accession processes potentially paving the way for other ASEAN nations to strengthen engagement with the OECD in the future.

 

 

 

The Road Ahead

As the panel discussion concluded, participants emphasised that while the accession process is rigorous and demanding, it offers substantial rewards in terms of policy improvement, investment attractiveness, and international credibility.

 

The process will involve extensive technical reviews across multiple policy areas, with both countries working closely with OECD committees to align their regulatory frameworks with international best practices. Indonesia aims to submit its initial memorandum by mid-2024, while Thailand has set an ambitious target for completing the process by the end of the same year.

 

The historic accession discussions mark a significant evolution in the OECD's engagement with Southeast Asia, reflecting both the growing economic significance of the region and the organisation's commitment to inclusive global economic governance.

 

As Indonesia and Thailand progress on their respective journeys toward membership, they are poised to serve as catalysts for broader regional integration with global economic standards and practices.