Indonesia Reaffirms Israel Stance Amidst OECD Accession Bid

Indonesia's Stance on Israel Remains Firm Amidst OECD Aspirations

Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, has reiterated that the country's stance on Israel will not change, even as Indonesia pursues accession to the Organisation for Economic Co-operation and Development (OECD). This affirmation comes despite the requirement for unanimous approval from all 38 existing OECD member states, which includes Israel, for Indonesia to achieve full membership.

Speaking in Jakarta on Thursday, Hartarto emphasized that Indonesia's position aligns with the foreign policy articulated by President Prabowo Subianto. President Subianto, in his address at the 80th session of the United Nations General Assembly, clearly stated that Indonesia would only recognize Israel as a state if Israel recognized Palestine as an independent and sovereign state.

Indonesia's Unwavering Support for Palestine

Indonesia, the world's most populous Muslim-majority nation, has historically maintained no formal diplomatic ties with Israel, consistently advocating for Palestinian statehood. This long-standing policy is rooted in Indonesia's anti-colonial worldview and strong public sentiment in favor of the Palestinian cause. Foreign Affairs Ministry spokesperson Lalu Muhamad Iqbal previously rejected media reports suggesting Indonesia would normalize diplomatic ties with Israel in exchange for OECD membership, stating, 'I affirm that, as of now, there are no plans to establish diplomatic relations with Israel, particularly given Israel's actions in Gaza.'

While formal diplomatic relations are absent, unofficial cooperation, particularly in trade, has occurred between the two nations. However, any overtures towards normalization have historically faced domestic backlash within Indonesia.

The OECD Accession Journey

Indonesia officially became a candidate for OECD membership on February 20, 2024, marking it as the first Southeast Asian nation to do so. The OECD Council adopted an accession roadmap for Indonesia on March 29, 2024. The accession process is a multi-year endeavor involving a comprehensive technical dialogue and in-depth reviews by up to 25 expert committees across various policy areas.

In June 2025, Airlangga Hartarto submitted Indonesia's 'Initial Memorandum' to OECD Secretary-General Mathias Cormann, a crucial step that initiates the technical phase of the accession process. This memorandum serves as a preliminary self-assessment of Indonesia's alignment with OECD standards and best practices. Key areas currently undergoing technical review include the environment, trade, and the digital economy. Indonesia aims to secure full membership by 2027, a process that typically takes several years.

Reports of Normalization Denied

In April 2024, several Israeli news outlets reported that Indonesia had agreed to normalize relations with Israel as a condition for joining the OECD, with some even claiming that OECD Secretary-General Mathias Cormann had brokered such an agreement. These reports suggested that the OECD had made normalization with Israel a precondition for Indonesia's membership.

However, Indonesian officials, including Airlangga Hartarto and the Foreign Affairs Ministry, have consistently denied these claims. They have maintained that Indonesia's foreign policy regarding Israel and Palestine remains unchanged and is guided by President Prabowo Subianto's clear directives. The OECD accession is expected to positively impact Indonesia's economy, potentially increasing investment from OECD countries and boosting its gross domestic product.