Both Indonesia and Thailand have initiated steps towards joining the Organisation for Economic Co-operation and Development (OECD), often referred to as the “Developed Countries Club.” While the criteria for being classified as a developed country are not universally defined, it generally encompasses nations with high income levels, education standards, social welfare systems, political stability, and social maturity. Thailand aims to achieve developed country status by 2037 through its National Strategy 2018-2037, whereas Indonesia targets the same by 2045, coinciding with its 100th independence anniversary as outlined in its Golden Indonesia 2045 Vision. However, before these countries can become OECD members, there are several crucial steps they must undertake.
In February 2024, the OECD Council decided to begin accession talks with Indonesia, with an accession roadmap being adopted by the end of March, making Indonesia the first candidate country from Southeast Asia. On the other hand, Thailand submitted a letter expressing its intent to join the OECD in February 2024.
Expectations
Indonesia anticipates that OECD membership will enhance economic efficiency and governance by standardizing taxation, labor laws, environmental protection measures, and other areas. It also aims to improve poverty reduction policies and the quality of education through the transfer of knowledge and technology from developed nations. As the only G20 member in ASEAN, OECD entry would present Indonesia with an opportunity to extend its global influence.
Thailand, on the contrary, believes that joining the OECD would raise the country’s standards and contribute to a better quality of life for its citizens. According to Prommin Lertsuridej, the Secretary-General to the Prime Minister, the Thailand Development Research Institute estimates that OECD membership could contribute 270 billion baht to the economy, boosting GDP by 1.6 percent.
However, gaining OECD membership is not a mere formality. The organization does not merely seek expansion but aims to apply its standards and policies globally. Indonesia and Thailand will need to revise their laws and regulations to meet OECD requirements while overcoming other challenges.
For instance, the European Union has objected to Indonesia’s ban on raw mineral exports, citing it as unreasonable export restriction. Additionally, approval from all OECD member states is needed for membership, and Indonesia currently lacks diplomatic relations with Israel, which is a condition for accession. Thailand also faces obstacles related to democratization and human rights, with emphasis on maintaining a fair judicial system, political pluralism, and respecting human rights.
Japan as a Bridge
In its 50th Anniversary Vision Statement in 2011, the OECD called for enhancing cooperation with developing nations. Japan played a pivotal role in strengthening relations between the OECD and ASEAN through the Southeast Asia Regional Programme (SEARP) launched by then-Prime Minister Abe Shinzo in 2014. This cooperation has led to the adoption of an accession roadmap for Indonesia and Thailand’s application for OECD membership.
During the OECD Ministerial Council Meeting in May 2024, Prime Minister Kishida Fumio announced plans to establish the Japan OECD-ASEAN Partnership Program (JOAPP) to enhance Japan’s role as a bridge between the OECD and ASEAN. Japan’s investment in Southeast Asia for over 60 years has positioned it well to facilitate partnerships and address challenges through initiatives such as private investment, sustainability, and the digital realm.
By connecting ASEAN with the OECD, Japan aims to improve the investment environment in ASEAN, benefiting all parties involved. Ultimately, Japan stands to gain from the maturation and stability of ASEAN through its collaboration with the OECD.
SUKEGAWA Seiya is a professor at the Faculty of Political Science at Kokushikan University and a visiting professor at the Thai-Nichi Institute of Technology.