How Indonesia’s OECD Membership Could Reshape Global AI Governance

Indonesia’s recent inclusion in BRICS has positioned the nation as a critical player in the evolving global order.

Indonesia’s recent inclusion in BRICS has positioned the nation as a critical player in the evolving global order. For instance, through BRICS, Indonesia has deepened collaborations in sectors such as renewable energy and digital technology, reflecting its growing influence in global economic and political dialogues. This membership signals an opportunity to deepen economic and political alliances with developing nations while amplifying Indonesia’s influence on global decision-making. However, as the world faces an intensifying technological race in artificial intelligence (AI) and a growing urgency to meet the Sustainable Development Goals (SDGs), Indonesia’s potential membership in the Organisation for Economic Co-operation and Development (OECD) becomes even more pertinent. This narrative explores how Indonesia’s integration into OECD could strategically benefit existing members, particularly in navigating the global AI competition and achieving sustainable development.

Bridging the North-South Divide in AI Governance

As a prominent nation in the Global South, Indonesia occupies a unique position due to its dual identity as an emerging economy with substantial geopolitical influence and its active leadership within ASEAN and BRICS. For instance, Indonesia spearheaded the ASEAN Outlook on the Indo-Pacific, emphasizing inclusivity and collaboration, while within BRICS, it has advocated for equitable economic policies and technological cooperation, showcasing its capacity to bridge diverse global priorities. This makes Indonesia an essential partner for the OECD in expanding the reach of responsible AI governance. For example, Indonesia’s proactive stance in ASEAN and its leadership in formulating the Stranas KA have shown its ability to influence regional policies, which can be instrumental in harmonizing OECD’s global frameworks. Indonesia’s strategic location and economic dynamism provide a bridge between developed and developing nations, allowing OECD to integrate diverse perspectives into its frameworks. By aligning Indonesia’s Strategi Nasional Kecerdasan Artifisial (Stranas KA) with OECD AI principles, the organization can promote a global standard that addresses disparities in AI adoption while ensuring that technology development across the Global South upholds universal values such as human rights, inclusivity, and democracy.

While Indonesia’s influence in ASEAN is significant, its ability to single-handedly harmonize OECD’s global frameworks should be viewed realistically. The OECD is a diverse organization with its own complex dynamics and varying interests among member states. For Indonesia to effectively contribute, it must navigate these dynamics carefully and collaborate strategically with other Global South nations to present a unified voice.

Indonesia’s existing strategy, Strategi Nasional Kecerdasan Artifisial (Stranas KA), aligns closely with OECD’s principles, emphasizing ethics, governance, and infrastructure. However, effective implementation of this alignment is crucial. This requires overcoming significant challenges, such as ensuring adequate resources, building technical capacity, and fostering public awareness about the ethical and practical implications of AI. Without addressing these challenges, the alignment risks remaining a theoretical exercise rather than a transformative initiative.

Moreover, while Indonesia offers valuable insights into the needs and challenges of the Global South, it is important to recognize the diversity within this group. The perspectives and priorities of countries in Africa, Latin America, and Southeast Asia can vary widely. For OECD frameworks to be truly inclusive, they must incorporate this diversity, with Indonesia acting as a key but not sole representative.

Expanding Market Access for OECD Technologies

Indonesia’s rapidly growing economy and ongoing digital transformation present a significant opportunity for OECD member states. With a GDP worth $1,371.17 billion in 2023, according to official data from the World Bank, Indonesia is Southeast Asia’s largest economy and the world’s fourth most populous nation, housing over 284,670,309 people as of January 11, 2025, according to Worldometer’s elaboration of the latest United Nations data. By mid-year, the population is estimated to reach 285,721,236. This GDP value represents 1.30 percent of the global economy, underscoring Indonesia’s importance in the world economic landscape. This massive domestic market, coupled with an expanding middle class, makes it a critical destination for advanced AI technologies. Indonesia also serves as a gateway for introducing these technologies to the broader ASEAN region, which collectively represents a market of over 680 million people. Collaboration with Indonesia could enable OECD members to expand their influence in AI-driven industries, including healthcare, agriculture, and urban development. Moreover, Indonesia’s market potential offers a scalable testing ground for AI innovations tailored to regional needs while adhering to global standards, making it indispensable for OECD’s technological and economic agenda.

Enhancing AI Research and Innovation

Indonesia’s dynamic demographic and economic landscape provide fertile ground for collaborative research and innovation in AI. With its strategic location and diverse challenges, Indonesia can serve as a hub for AI adoption research tailored to the Global South. OECD’s expertise in fostering international innovation networks can amplify Indonesia’s capabilities in sectors such as renewable energy, disaster management, and education while addressing unique regional needs. However, tailoring AI solutions to the Global South requires overcoming challenges such as limited digital infrastructure in rural areas, varying levels of digital literacy, and ensuring local relevance in AI applications. Joint initiatives could drive breakthroughs that not only benefit Indonesia but also contribute to global advancements in AI, particularly in creating scalable models for inclusive technology adoption. This symbiotic relationship would strengthen OECD’s position as a leader in sustainable and inclusive AI development while leveraging Indonesia’s pivotal role in addressing the diverse needs of emerging economies.

Advancing Global Standards and Trust

Indonesia’s growing presence in global forums enhances its potential to play a pivotal role in establishing robust AI standards, particularly given the escalating risks associated with unregulated AI. Experts, such as those from the United Nations and leading think tanks, have warned that the potential dangers of AI, including autonomous weapon systems and unchecked surveillance, could surpass those of nuclear technology. This makes safe and ethical governance of AI an urgent global priority, particularly for mitigating risks like misuse by rogue states or non-state actors. Membership in OECD would position Indonesia as a mediator between developed and developing nations, facilitating the creation of interoperable frameworks that not only promote trust in AI technologies but also mitigate existential risks. Such cooperation would solidify OECD’s leadership in shaping a secure, fair, and equitable global AI ecosystem.

Strategic Recommendations for Collaboration

To realize the full potential of Indonesia’s OECD membership, strategic alignment is essential. Both parties must prioritize policy harmonization, ensuring that Indonesia’s AI regulations are consistent with OECD’s frameworks. Capacity-building programs are particularly critical to ensure social and political stability. Without proper attention, the rapid adoption of AI could exacerbate economic inequalities, leading to heightened social tensions and fostering environments where extremist ideologies could thrive. In regions like Southeast Asia, where economic disparities remain significant, this could fuel political instability and even cross-border tensions, highlighting the need for equitable AI policies. Such ideologies, if left unchecked, could destabilize the broader region, where Indonesia’s strategic position as a hub in Southeast Asia makes it pivotal for maintaining regional stability. As the world’s largest archipelago and a leader in ASEAN, instability in Indonesia could ripple through trade routes, security frameworks, and economic partnerships vital to OECD countries. This instability poses significant risks to the interests of OECD member states, potentially disrupting economic ties, regional security, and the implementation of cooperative policies within Southeast Asia. Strengthening Indonesia’s AI workforce and creating a robust talent pipeline for both local and global markets would mitigate these risks. Additionally, investment in Indonesia’s digital infrastructure remains vital, enabling the widespread adoption of AI technologies that benefit communities across urban and rural areas while promoting equitable development.

Conclusion

Indonesia’s potential membership in OECD arrives at a crucial juncture in the global race for AI dominance. For OECD, integrating Indonesia represents an opportunity to expand its influence in Southeast Asia, promote responsible AI practices, and accelerate progress toward SDGs. Indonesia’s robust digital economy, including its growing fintech sector and burgeoning AI-driven startups, can provide valuable insights and contributions to OECD’s innovation agenda. Additionally, Indonesia’s natural resource management efforts, supported by AI technologies, align with OECD’s environmental sustainability goals. These capacities, combined with Indonesia’s leadership in ASEAN, offer OECD a partner capable of driving regional advancements in equitable and sustainable development. For Indonesia, membership provides a platform to amplify its global voice, align with international standards, and bridge the governance gap between developed and developing nations.

By embracing Indonesia as a member, OECD not only strengthens its own position in the global AI landscape but also advances a vision of technology that serves humanity equitably. In this collaboration, Indonesia and OECD have the chance to redefine global AI governance, ensuring that innovation and inclusivity go hand in hand.

Tuhu Nugraha
Tuhu Nugraha
Digital Business & Metaverse Expert Principal of Indonesia Applied Economy & Regulatory Network (IADERN)