Speech by Angel Gurría,
Jakarta, Indonesia, 24 October 2016
(As prepared for delivery)
Dear Ambassadors, Ladies and Gentlemen:
Welcome to today’s breakfast for the Friends of the OECD in Indonesia ─ it is great to see you all again! I would like to thank New Zealand, and Ambassador Trevor Matheson in particular, for hosting our discussion this morning.
The OECD and Indonesia enjoy a productive and mutually beneficial partnership. Just last year, Minister Bambang Brodjonegoro and I opened the OECD’s Jakarta office ─ our first in Southeast Asia ─ which has deepened our strategic collaboration and supported implementation of our joint activities. It has also facilitated our strengthened engagement with Southeast Asia, including the ASEAN Secretariat.
Indonesia is one of the OECD’s Key Partners, along with Brazil, China, India, and South Africa, and participates in most OECD activities and the substantive work of our specialised committees. We also work closely with Indonesia through the G20, APEC and other global and regional fora. Under our 2012 Framework of Co-operation Agreement ─ the first for a Key Partner ─ the OECD and Indonesia develop biennial work programmes that focus on priority areas for strategic engagement.
Our first Joint Work Programme, covering 2015-2016, has delivered concrete results. We worked with Indonesia to reform its financial market regulations based on the G20/OECD Principles of Corporate Governance, and contributed to the revised National Anti-Corruption Strategy through our Integrity Review. We also delivered reports tailored to Indonesia’s specific priorities, including Managing Food Insecurity Risk. The Programme has supported Indonesia’s participation in many OECD bodies, instruments, and databases, and complemented Indonesia’s efforts to implement the SDGs through strategic policy advice in health, education, infrastructure and the environment.
Later today, I will launch the second Joint Work Programme for 2017‑2018 with Minister Sri Mulyani Indrawati targeting 15 priority areas framed around four themes: (i) developing the business climate and fostering dynamic growth; (ii) improving social policies and inclusive growth; (iii) supporting governance; and (iv) promoting green growth. I will discuss these priorities with President Widodo and key government ministers during my visit.
Over the next two years, the OECD ─ working closely with Indonesia’s ministries ─ will conduct reviews on investment, SMEs, innovation, health systems, vocational education and training, government spending, and green growth. We seek to bring Indonesia closer to the OECD, our standards, our committees and our legal instruments, and eventually welcome Indonesia to the OECD family as a member.
The breadth of our collaboration is reflected in two publications that I will launch with Minister Bambang and Minister Sri Mulyani this afternoon ─ our fifth Economic Survey of Indonesia, and our first-ever Open Government Review of Indonesia.
The Economic Survey proposes measures to improve the effectiveness of Indonesia’s decentralisation efforts, including performance-monitoring of sub-national governments, building technical capacity to improve spending and budget administration, and sharpening oversight of the inter‑governmental transfer framework. It also encourages the removal of poorly-targeted energy subsidies – that account for 7% of total public expenditures and promote pollution-intensive activities – the reform of food resilience measures, and the prioritisation of policies with high payoffs to improve public spending efficiency. More broadly, the Survey makes recommendations to advance industrialisation; boost competitiveness and investment; fight corruption; improve governance; strengthen education and skills; address child stunting; and sustainably manage Indonesia’s precious natural resources and unique ecosystems.
Our Open Government Review showcases Indonesia’s efforts to achieve more participatory, transparent and accountable institutions to restore citizens’ trust and promote inclusive growth. The Review encouragesIndonesia to address the digital divide across regions and income levels, and improve the public sector’s capacity to design, implement and monitor open government reforms at national and local levels.
Dear Friends: Indonesia and the OECD are building a most fruitful and productive association. Indonesia and the OECD are better exploiting their obvious synergies and complementarities. So, let’s keep working together to promote more inclusive and sustainable growth in Indonesia by designing, developing and delivering better policies for better lives.
I look forward to hearing your views.