Prabowo sees no problem in Indonesia’s BRICS, OECD, CPTPP ambitions
Jakarta Globe - 14 November 2024
Prabowo sees no problem in Indonesia’s BRICS, OECD, CPTPP ambitions
By Jayanty Nada Shofa
President Prabowo Subianto recently said that there was nothing wrong about Indonesia trying to join multiple economic blocs — be it BRICS or the OECD — at once, saying that the country only wants what is best for the people.
Indonesia is currently applying to the OECD — short for the Organization for Economic Cooperation and Development. The OECD, also known as the rich country club, brings together the US and 37 other countries. China is not an OECD member, but is part of BRICS: a separate grouping that Indonesia is also trying to get into. Indonesia’s pursuit of both blocs amid US-China rivalry has sparked concerns over Jakarta’s BRICS ambition affecting its ties with Washington. But according to Prabowo, memberships in multiple groups could give Indonesia the stimulus to grow its economy.
“I don’t see any issue [of Indonesia being in BRICS and the OECD],” Prabowo told reporters in Washington on Wednesday local time.
US President Joe Biden recently invited Prabowo to the White House for some bilateral talks. It was then that Biden reassured the ex-army general that Washington would back Jakarta’s OECD membership. Prior to his Washington trip, Prabowo met his Chinese counterpart Xi Jinping in Beijing. The meeting resulted in a joint statement that also touched on Indonesia’s possible BRICS membership. According to the joint statement, China “welcomes” Indonesia’s intentions to join BRICS “at an early date”.
Indonesia officially became a candidate member to the OECD in May, and aims to get a full membership by 2027. The OECD has standards and best practices that can pave the way for Indonesia to be an advanced economy by its centenary. BRICS recently granted Indonesia the “partner country” status, which puts Jakarta on probation as the group assesses whether it is ready to join. A seat at BRICS will possibly open up Indonesia’s access to funding from the alliance’s New Development Bank (NDB).
Prabowo also talked of Indonesia’s interest in the 11-membered CPTPP free trade agreement, and its current membership at the US-led Indo-Pacific Economic Framework (IPEF). CPTPP members include Australia, Mexico, Peru, to name a few, but neither rivals US and China are part of the group.
“We are already in the IPEF, and Indonesia is even [applying to] the CPTPP. We are joining several economic groups to find the best opportunities for our economy. We have to think of the prosperity of our people,” Prabowo told reporters.
Indonesia had already submitted an application letter to the CPTPP in September. The CPTPP cuts trade-related tariffs. IPEF is not a traditional trade deal that incorporates tariff eliminations, but aims to create a resilient supply chain.
