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As the country still moves toward the adoption of accountable
and credible governance, Indonesia can push for better practices by
taking part in a peer review program carried out by the Organization
for Economic Cooperation and Development (OECD).
Speaking to the first OECD-Southeast Asia Regional Forum in Jakarta on
Tuesday, Coordinating Minister for the Economy Budiono said that by
joining the OECD's peer review program, Indonesia could improve the
policy-making process.
"The review will provide a credible independent assessment of our
policy reforms that will help the international community and our
business partners better understand the real performance of the
economy," Budiono told the seminar participants.
The OECD, which was founded in 1948 as a European regional institution
with a central role in the post-war reconstruction of Europe, now
comprises 30 developed countries, including two Asian countries, Japan
and South Korea.
Among the OECD's core strengths are its ability to offer its members a
framework to compare experiences, and examine best practices in a host
of areas ranging from economic policy to environmental protection.
OECD peer reviews, where each country's policy in a particular area is
examined by fellow countries on an equal basis, is a tested instrument
for these purposes.
Budiono did not say when Indonesia would start taking part in
OECD-sponsored peer reviews, but one of his advisors, senior economist
Mohamad Ikhsan, said the government wanted peer reviews to be conducted
as soon as possible as the country needed input and evaluation
regarding its current policy reforms.
"Pak Budiono, for instance, wants the peer review to identify the
sources of Indonesia's long-term growth," he said.
Ikhsan, one of the speakers at the forum, said that Indonesia needed
assessment from a credible international institution to convince
foreign investors that conditions in the country had improved.
"Foreign investors prefer to put their trust in reports from
independent institutions like the OECD, rather than government reports,
when making their decision. This is a marketing tool that Indonesia can
use to attract investment. This is like an oversight commission that
will inform us whether our programs are working or not, and will
propose to us what we need to do," he said.
Indonesia has been struggling to convince the international community
and foreign investors about what it says is an improving investment
climate. Many point to red tape, the chaotic legal system and
corruption as the main reasons for doubts among investors.
During the seminar, representatives from South Korea and Belgium
recounted their countries' experiences and the benefits they obtained
by participating in OECD peer reviews.
"The OECD recommendations were a great help in enhancing the
international community's understanding and support for our fiscal
measures," South Korea's permanent representative to the OECD, Kwon
Tae-shin, said.
Meanwhile, Belgian Ambassador to the OECD, Patrick Van Haute, said that
"Governments like the review process by the OECD because it helps them
convince their public opinion when policy adjustment are necessary.".
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