‘Ambitious’ OECD goal puts heat on Indonesia to overcome governance, accountability barriers to accession

After the meeting, Indonesia’s Coordinating Economic Minister Airlangga Hartarto, who chairs the country’s OECD National Team to oversee the accession process, reaffirmed Jakarta’s aspirations to join the group in three years.

“The purpose of this meeting is to provide the latest information on the accession process and the steps that need to be taken by the Indonesian government,” he said.

While observers agree that Indonesia appears to be firmly on the path to joining the intergovernmental organisation, there are a number of significant challenges, particularly related to governance standards and institutional reforms, that might set back its three-year plan.

“If we reflect on current conditions, Indonesia will have difficulty keeping up with OECD standards, especially in accountability and state governance,” said Muhammad Rafi Bakri, a data and financial analyst at the Audit Board of Indonesia.

To join the group, a country must undertake significant reforms to ensure its laws, policies and practices comply with rigorous OECD standards. Observers say Indonesia’s primary challenges in meeting those standards are ensuring that its corruption levels are kept in check and that state institutions have sufficient independence.

Rafi said several state agencies, including the Corruption Eradication Commission (KPK) and the Financial Audit Agency, were still being “primarily controlled by the government”, adding that there was room for improvement in their performance.

Indonesia’s 2023 Corruption Perceptions Index score of 34 was far behind the average score of 66 achieved by OECD member countries.

Six ministers in Widodo’s cabinet have been arrested on graft charges, raising concerns about government vetting measures. Last November,