Thailand and Indonesia’s Push for OECD Membership: Why Southeast Asia’s Rising Economies Are Joining the ‘Rich Countries’ Club

Thailand and Indonesia are accelerating their bids to join the OECD, a move that would position them as Southeast Asia’s first members of the “rich countries’ club” and mark a major shift in the region’s economic ambitions.

According to the Organisation for Economic Co-operation and Development (OECD), both nations have intensified reforms in taxation, labor markets, and regulatory frameworks to meet the bloc’s strict membership criteria. Thailand’s push follows a formal application in 2023, while Indonesia submitted its bid in 2024 after years of preparatory work. The OECD’s 38-member states—including the U.S., Germany, and Japan—require candidates to demonstrate sustained economic stability, high living standards, and adherence to global standards on transparency and governance.

Why are Thailand and Indonesia prioritizing OECD membership?
The primary driver is economic prestige and access to high-income markets. OECD membership would unlock preferential trade terms, attract foreign investment, and align both countries with global financial rules. For Indonesia, the world’s fourth-most populous nation, it could also signal a shift from its long-standing “emerging market” classification to a developed-economy status, potentially lowering borrowing costs.

Thailand’s economy, which relies heavily on tourism and manufacturing, has faced stagnation in recent years. “Joining the OECD would be a validation of our economic reforms and a tool to boost investor confidence,” said a senior official from Thailand’s Board of Investment (BOI), who requested anonymity. Indonesia, meanwhile, has leveraged its vast natural resources and growing digital economy to push for inclusion, with President Prabowo Subianto framing it as a key legacy of his administration.

What reforms are required—and how far have they come?
The OECD’s accession process is rigorous, requiring candidates to overhaul tax systems, combat corruption, and strengthen social protections. Thailand has already aligned its corporate tax rate with OECD standards (20% as of 2025) and is working to reduce tax evasion, though critics note enforcement remains weak. Indonesia, meanwhile, has simplified its business registration process and is negotiating a bilateral investment treaty with the OECD to ease foreign capital flows.

A 2025 report by the Asian Development Bank (ADB) highlighted Indonesia’s progress in digital infrastructure but warned that labor market flexibility—particularly for women and informal workers—remains a hurdle. Thailand’s BOI has pledged to create 1.5 million high-skilled jobs by 2027, a target tied to OECD labor standards.

How do regional peers compare?
Southeast Asia’s other major economies—Vietnam, the Philippines, and Malaysia—have not pursued OECD membership, opting instead for closer ties with the Association of Southeast Asian Nations (ASEAN) and China-led initiatives like the Regional Comprehensive Economic Partnership (RCEP). Vietnam, for instance, has focused on manufacturing exports and FDI inflows without seeking OECD accession, according to a 2026 analysis by the Peterson Institute for International Economics.

What happens next?
The OECD’s accession committee will review Thailand and Indonesia’s applications in 2027, with a decision expected by 2028. Analysts at the Institute of Southeast Asian Studies (ISEAS) in Singapore note that political stability will be critical: Thailand’s recent military-civilian transitions and Indonesia’s upcoming 2029 elections could delay reforms if priorities shift.

For now, both countries are racing to meet deadlines. Thailand’s Finance Ministry has earmarked $1.2 billion for OECD-aligned infrastructure projects, while Indonesia’s Coordinating Ministry for Economic Affairs has launched a “Fast-Track OECD” task force. The stakes are high: successful membership could redefine Southeast Asia’s economic trajectory, but failure risks exposing gaps in governance and competitiveness.