Indonesia is stepping up efforts to join the Organisation for Economic Co-operation and Development (OECD).
To achieve this milestone, the government is placing strong emphasis on investment diplomacy, alongside historic achievements in international agreements such as the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU–CEPA) and the Indonesia–Canada Comprehensive Economic Partnership Agreement (ICA–CEPA).
Deputy for Investment Cooperation at the Ministry of Investment and Downstreaming/BKPM, Prof. Dr. Tirta Nugraha Mursitama, Ph.D., stressed that investment diplomacy should not be confined to the negotiation table but must also be understood by the public.
“Investment diplomacy is the key for Indonesia to move up the global ladder. OECD is our target, and the public needs to understand its significance,” Tirta said during a Media Gathering in Menteng, Jakarta, Thursday, October 2, 2025.
According to Tirta, diplomacy has often been narrowly perceived as a matter of trade. In reality, investment plays a crucial role in strengthening Indonesia’s position in international negotiations, including the CEPA with the European Union.
Tirta also underlined Indonesia’s current investment strategy, which prioritizes industrial downstreaming and technology transfer. This direction aligns with President Prabowo Subianto’s vision of transforming Indonesia into a high-income country, with accelerated accession to the OECD, an organization of 38 member states founded in 1961.
Historic Milestones: IEU–CEPA and ICA–CEPA
Indonesia’s investment diplomacy has gained significant momentum with the signing of IEU–CEPA and ICA–CEPA, both considered historic milestones. These agreements expand Indonesia’s access to markets, boost foreign investment, and strengthen cooperation with key partners in Europe and North America.
The ICA–CEPA signing was witnessed by President Prabowo Subianto and Canadian Prime Minister Mark Carney in Ottawa on Wednesday, September 24, while the substantive agreement on IEU–CEPA was announced in Bali on Tuesday, September 23 by Coordinating Minister for Economic Affairs Airlangga Hartarto and European Commission Executive Vice-President for Trade and Economic Security Maroš Šefčovič.
Concrete Benefits for Indonesia’s Economy
Economist Sunarsip highlighted that the European Union accounts for roughly 10% of Indonesia’s total exports, making it a strategic trade partner. Key Indonesian exports—such as metal minerals for the automotive industry, steel, electronics, as well as palm oil and other vegetable oils—are expected to gain broader access and greater competitiveness through the IEU–CEPA.
The agreement is projected to boost Indonesia’s export share to Europe and reinforce foreign exchange reserves, particularly at a time when demand from major partners like China and India is slowing.
Meanwhile, communication expert Firman Kurniawan from the University of Indonesia stressed the importance of effective public communication.
He urged the government to simplify the complex substance of CEPA agreements into practical language, enabling businesses, especially MSMEs, to fully grasp and maximize the economic opportunities.
“To avoid misinformation, both conventional and digital media must be engaged in public dialogue to explain the meaning and advantages these agreements bring for Indonesian society,” Firman noted.
The Long Road to OECD
Through a combination of investment diplomacy, industrial downstreaming, and strengthened international trade agreements such as IEU–CEPA and ICA–CEPA, Indonesia’s path toward OECD membership is becoming increasingly realistic.
These milestones are expected not only to enhance Indonesia’s global standing but also to ensure inclusive and sustainable economic growth. (AT Network)
