Indonesia has officially submitted a memorandum of accession to the Organisation for Economic Co-operation and Development (OECD), aiming to join the group by 2027. Coordinating Minister for Economic Affairs, Airlangga Hartarto, made the announcement last week, signaling the country’s intention to align more closely with developed economies.
Now, as someone who’s invested in real estate here in Bali and has watched Indonesia’s development over the past decade, I see this as more than just bureaucratic news — it’s a long-term signal of where the country is headed.
The OECD brings together 38 member states — mostly high-income democracies — that collectively represent 62% of global GDP. Membership isn’t just a label; it implies structural reforms, improved governance, and adherence to international norms that make a country more predictable and investor-friendly.
This move comes not long after Indonesia joined BRICS, a bloc more aligned with China and other emerging economies. At the time, it raised questions about how Indonesia would maintain its traditionally neutral, non-aligned foreign policy. But in choosing to pursue OECD membership, Jakarta is clearly making a calculated decision to hedge toward Western institutions — or at least balance both spheres strategically.
For context, only one country today is a member of both BRICS and the OECD: South Africa. And even that dual membership has been tested — like last year, when the ICC’s arrest warrant for Vladimir Putin forced South Africa into a legal and diplomatic dilemma ahead of the BRICS summit. That kind of tension is a reminder of the complexities involved in straddling two very different global power structures.
As an investor, especially someone with property and long-term interests in Bali, I see Indonesia’s OECD bid as a bullish sign. It suggests greater regulatory maturity is coming, perhaps more transparency, and certainly stronger global ties. That’s the kind of foundation I want under any market I’m exposed to — especially one with as much untapped potential as Indonesia.
