Navigating Complexity: A Soft Systems Approach to Indonesia's OECD Membership Bid

Abstract

This study examines Indonesia's readiness for OECD membership through the lens of Soft Systems Methodology (SSM), focusing on the complex interplay between policy reform requirements and institutional capacity. Using data from in-depth interviews with key stakeholders, public discussions, and document analysis, the research reveals significant gaps between current conditions and OECD standards across regulatory, economic, and institutional dimensions. Key challenges identified include the ambitious three-year accession timeline and a highly complex regulatory environment, often described as a "jungle of regulation". The study proposes five critical and actionable areas for transformation: (1) the establishment of a centralized Project Management Office (PMO), (2) the digitalization of coordination processes, (3) the strengthening of parliamentary involvement, (4) the enhancement of public-private dialogue, and (5) the maintenance of national policy autonomy while pursuing international alignment. The findings suggest that while Indonesia's political commitment to OECD accession is strong, substantial challenges remain in harmonizing domestic policies and building the necessary institutional capacity. This research contributes a structured framework for developing nations to navigate the intricate process of international policy alignment while preserving their strategic autonomy.