Unlocking Indonesia’s Economic Potential Through OECD Accession
Authors
Deasy Pane
Krisna Gupta
Accession to the OECD will pave the way for Indonesia to boost its gross domestic product (GDP), strengthen its trade balance and attract greater investment, thereby supporting sustained economic growth by aligning Indonesia’s governance, economic policies and trade standards with international best practices, enhancing investor confidence, improving market efficiency and strengthening trade relations.
The computable general equilibrium (CGE) model estimates that OECD accession will bring notable benefits to Indonesia’s macroeconomic performance. If Indonesia joins the OECD, the country is projected to receive investment inflows totalling USD 87.7 billion in 2028, equivalent to 0.1% of Indonesia’s GDP in that year. The maximum share of this investment (25%) is expected to come from OECD countries.
Fresa Yuriza
