Active with Southeast

Special focus on Indonesia

ASIA

Active with

Southeast Asia
Special focus on Indonesia

CONTENTS
FOREWORD  Angel Gurra, OECD Secretary-General Rezlan Ishar Jenie, Indonesia's Ambassador to France

SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH

1.1 Economic Policy 1.2 Southeast Asian Economic Outlook 1.3 Green Growth 1.4 Labour Markets and Social Policies 1.5 Employment and Skills Development at the Local Level 1.6 Agriculture and Food Security 1.7 Development Co-operation 1.8 Statistics 8 10 13 13 16 18 20 22

STRENGTHENED MARKETS
2.1 Investment 2.2 Trade 2.3 Export Credits 2.4 Competition 2.5 Financial Markets 2.6 SMEs and Entrepreneurship 2.7 Emerging Markets Network 2.8 Business and Industry Advisory Committee 23 25 26 28 29 31 32 32

INNOVATION AND INDUSTRY

5.1 Information Technology and Innovation 5.2 Shipbuilding and Steel 5.3 Chemicals 5.4 Transport 48 51 53 53

ENVIRONMENT AND ENERGY

6.1 Environment 6.2 Climate Change 6.3 Water 6.4 Energy 54 56 57 58

PUBLIC AND CORPORATE GOVERNANCE

3.1 Regulatory Reform and Administrative Simplification 3.2 Budgeting and Public Expenditures 3.3 Taxation 3.4 Fighting Corruption 3.5 Corporate Governance 33 34 36 38 39

ANNEXES
 outheast Asia-related OECD Publications S OECD Tokyo Centre  OECD's Engagement with Southeast Asian Economies: A Snapshot OECD-Asia Networks and their Participants About the OECD 60 63 64 67 68

SOCIETY
4.1 Society, Pensions and Health 4.2 Education and Training 4.3 Financial Education 4.4 International Migration 41 44 46 47

FOREWORD

chieving global prosperity, social inclusion and the well-being of citizens worldwide is at the heart of the OECDs work. Our mission is to build a stronger, cleaner and fairer world economy. And

close collaboration with regional organisations such as the Association of Southeast Asian Nations, the Asian Development Bank and the Asia-Pacific Economic Cooperation. Our relationship with Southeast Asia, and Indonesia in particular, has grown significantly over recent years. Today, that partnership is more important than ever because we all share a vital interest in achieving successful multilateral collaboration aimed at strengthening growth and development prospects, as well as at addressing global challenges such as climate change, food and energy security and international financial stability. Indonesia and other Southeast Asian countries increasingly participate in OECD committees and working groups, peer reviews and studies, as well as statistical data collection and international benchmarking exercises such as the Programme for International Student Assessment (PISA). Several Southeast Asian countries have also adhered to international standards and norms developed by the OECD, in such areas as tax transparency, chemicals assessment and development co-operation, in order to advance their own domestic reform agendas.

the D in OECD stands for development. We thus contribute to the development of all countries through analysis and fact-based policy advice, and by sharing knowledge and best practices. This Active with Southeast Asia brochure provides a glimpse of the scope and depth of our work with Southeast Asian countries and highlights the great potential to strengthen our partnership. It also gives a special focus to our work with Indonesia, a major emerging economy, with whom our relationship is particularly advanced and successful. The Southeast Asia region is one of the most dynamic and diverse areas in the world, with a growing influence on the world economy and an ambitious regional integration roadmap. Southeast Asia is also a region of strategic importance to the OECD. We are pursuing dual-track co-operation that combines country-specific work with regional initiatives, in

At the OECD, we recognise that there is a need to reflect the experiences of emerging and developing economies and to draw lessons from their approaches and development paths in order to design better policy tools. There is much that we can learn from Southeast Asian countries. In return, the OECD can share international best practices, facilitate peer dialogue and provide tailor-made guidance to support the implementation of Southeast Asias national and regional development strategies (such as the Master Plan for the Acceleration and Expansion of Economic Development of Indonesia, 2012-25). The Organisation has developed unique expertise in key policy issues of relevance to the region, such as effective public service delivery, public integrity and the fight against corruption, administrative simplification (cutting red tape), employment and social policies, innovation, and education and skills development. Celebrating its 50th anniversary this year, the OECD is honoured that Southeast Asian governments and institutions are increasingly turning to it as a partner. We will continue to put our full range of expertise at the service of Southeast Asia, working together with the regions policy makers to help create better policies for better lives.

Angel Gurra, OECD Secretary-General

FOREWORD

young and dynamic workforce is driving high potential growth, with those under thirty accounting for half of the working population. Indonesia has also managed to weather the global financial and economic crisis well thanks to robust macroeconomic policies and substantial macroeconomic and structural reforms undertaken since the Asian crisis of 1997/1998. GDP growth is predicted to reach close to 6,5% in 2011, making it the fastest growing country among ASEAN member states. Recently, in its effort to boost regional economic development and increase the welfare of its people, the Government launched the Master Plan for the Acceleration and Expansion of Indonesian Economic Growth (MP3EI). This Plan reflects its ambitious yet realistic target leading to its 2025 vision that Indonesia becomes an advanced country. I warmly note that Indonesias co-operation with the OECD since 2007 has increased significantly and now extends to a wide range 4

ndonesia is a country with great opportunities. A member of G20, it is the worlds third largest democracy, offering political stability, a large domestic market and rich and diversified natural resources. A

of policy areas of mutual interests, such as macroeconomic and structural reform policies, investment, taxation, financial affairs, education, regulatory reform and administrative simplification, and agricultural policy. This co-operation provides one of the important means to supporting our efforts to achieve inclusive and sustainable economic growth. In addition, through its participation in the OECDs Committees and regular work programme, Indonesia is able to contribute and enrich the international debate on global policy issues such as the fight against cross-border tax evasion, transnational bribery and investment protectionism. Regular interaction and peer dialogue with the OECD member and partner economies also enables Indonesia to learn from the experiences of other countries and to benefit from international good practices as it embarks on its own reform processes. As the Chair of ASEAN this year, Indonesia also welcomes and is supportive of the increased co-operation between the OECD and other Southeast Asian countries and regional organisations. Countries from the region may greatly benefit from the OECDs vast experiences to advance their domestic economic reform

agenda. With ASEAN Community in a Global Community of Nations as the theme of its chairmanship, Indonesia seeks to boost ASEANs voice on the international scene and to enhance its collective contribution to addressing global challenges in concert with its goal to establish the ASEAN Community in 2015. Finally, I commend and congratulate the OECD for its continuous work on the Southeast Asia Economic Outlook and sincerely hope that this publication can also benefit policy makers in the region. His Excellency Rezlan Ishar Jenie, Indonesia's Ambassador to France

SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH

STRENGTHENED MARKETS

PUBLIC AND CORPORATE GOVERNANCE

he text text text text

Key links: www.oecd.org/aboutoecd www.oecd.org/china www.oecdchina.org

SOCIETY

INNOVATION AND INDUSTRY

CLIMATE CHANGE
ENVIRONMENT AND ENERGY
MEETING THE CHALLENGES

1 2 3 4 5 6
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SUSTAINABLE, BALANCED AND INCLUSIVE GROWTH

Creating a favourable environment for sustained, balanced and inclusive growth, helping countries move to greener growth models, creating more and better jobs, improving agricultural efficiency and food security and delivering effective aid to lower income countries are some areas in which the OECD has proven expertise and upon which it actively engages with Indonesia and other Southeast Asian partners.

1.1 Economic Policy

The OECD examines macroeconomic and structural policies and developments, as well as the interactions between them. Issued twice per year, the OECDs Economic Outlook analyses major macroeconomic trends in forty OECD and emerging economies, including Indonesia. The annual Going for Growth report provides a comparative overview of structural policy developments in those countries, with the 2011 edition highlighting the potential gains that Indonesia could reap from further reform of its education system and its rigid labour code. Indonesia would also benefit from improving the regulatory environment for infrastructure, easing barriers to entrepreneurship,

strengthening institutions to fight corruption and phasing out energ y subsidies. The OECD also regularly produces Economic Surveys of member countries and partner economies, in close co-operation with national officials and independent experts.

Did you know? GDP growth in Indonesia is expected to reach almost 6.5% in 2011 (compared to 6.1% in 2010) thanks to increasing investment and exports.

Indonesia
Indonesia has achieved major economic and social progress in recent decades, and continues to weather the global economic crisis. With regard to achieving its ambitious medium term growth and poverty reduction targets, the OECDs 2010 Economic Survey of Indonesia made the following recommendations: Expansion of growth enhancing programmes, such as investment in infrastructure and education, and the increase in coverage of formal safety nets could be financed through better tax enforcement and the removal of energy subsidies. A comprehensive costing of all social programmes is imperative to ensure their long term sustainability. At Indonesias current stage of development, investments in infrastructure are likely to have large pay-offs and could be financed by moderate increases in public outlays. Removing legal obstacles to land acquisition is a priority to boost investment. The introduction of some form of unemployment insurance would better protect workers, while the scaling back of generous severance payments and limiting of minimum wage increases could further boost formal employment. Key link: www.oecd.org/eco OECD Committees: Economic Policy Committee Economic and Development Review Committee 10

1.2 Southeast Asian Economic Outlook

The OECD Development Centres annual Southeast Asian Economic Outlook (SAEO) monitors short-term macroeconomic challenges and medium-term economic trends in the Southeast Asia region, and includes a thematic focus which varies from year to year ('green growth' in 2011 and 'narrowing the development gap' in 2012). The SAEO also contains individual country notes that assess structural policy reforms of selected ASEAN countries. The 2011 edition includes notes for Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. The Outlook aims to support policy dialogue and peer-learning among OECD and Southeast Asian countries. From 2012, the publication will be produced in close collaboration with the ASEAN secretariat and the Asian Development Bank.

Did you know? GDP growth in the ASEAN 6 (Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam) is estimated to reach an average of 5.6% in 2012-16. In 2010, GDP growth was 7.6%.

Key policy messages and recommendations from the 2011 edition of the SAEO include the following: The regions outlook will be moderate but will remain solid in the medium-term. The nature of growth is gradually shifting. Domestic demand will play a more important role in the region over time. Inflationary pressures and the negative effects of large capital inflows should be managed using a macro policy mix, but appropriate structural policies will be also important. Well-targeted and co-ordinated structural policy reforms are needed for a timely implementation of national development plans. ASEAN countries should play a more active role in the international standard-setting process for carbon labelling. Fragmented, bottom-up approaches to carbon labelling may lead to a proliferation of different labelling schemes, acting as a constraint to ASEAN exports. Carbon labelling should be part environmental sustainability plans. of ASEAN countries

The Development Centre also produces This Quarter in Asia, a quarterly report that monitors business cycles in the region. Key link: www.oecd.org/dev/asiapacific www.oecd.org/dev/asiapacific/abcis

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1.3 Green Growth

At the 2011 OECD Ministerial Council Meeting, Ministers from OECD countries endorsed the Green Growth Strategy. The Strategy proposes a flexible policy framework to enable countries to promote economic growth while preventing environmental degradation and enhancing the quality of life. This framework can be tailored to countries different national circumstances and stages of development. The Strategy also examines international co-operation towards green growth. Three reports form the basis of this Strategy: Towards Green Growth; Monitoring Progress: OECD Indicators; and Tools for Delivering on Green Growth. The Government of Indonesia commented on preliminary versions of these reports and participated in the green growth discussions of the OECD Ministerial Council Meeting of 25-26 May, 2011. Green growth considerations are being increasingly mainstreamed into the Organisations analytical work, as the OECD looks at how the implementation of the Strategy, both globally and in developing countries, can maximise development outcomes as well as how best to monitor progress towards the transition to a greener economy. Green growth strategies, which offer a means of achieving poverty reduction while ensuring environmental sustainability, are increasingly sought by ASEAN economies. At the 28th ASEAN Ministers on Energy Meeting in July 2010, Ministers re-affirmed their commitment to strengthening efforts to address climate change and enhancing ASEAN energy co-operation towards low-carbon and green economy. The 2011 Southeast Asian Economic Outlook

formulates policy lessons and recommendations to help ASEAN countries adopt medium-term development plans in conformity with greener growth and to develop a region-wide green growth strategy. Did you know? Potential commercial opportunities related to environmental sustainability in natural resource sectors alone is estimated to reach USD 2.1 to 6.3 trillion by 2050.

Key link: www.oecd.org/greengrowth OECD Committees (horizontal project) Economic Policy Committee Environmental Policy Committee

1.4 Labour Markets and Social Policies

The OECD collects and compiles employment statistics that allow for cross-country comparisons on labour market indicators, policies and institutions. The OECDs annual Employment Outlook analyses labour market trends and monitors member and partner economy reforms in areas such as active labour market policies, employment protection and the minimum wage. 13

Did you know? Public social expenditure in Indonesia stands at 5% of GDP (compared to an average of almost 20% in OECD countries). The share of the workforce contributing to a pension plan and/or health insurance is about 10%.

for those who can afford it. This would encourage workers to stay employed or return to work when unemployed, increase the incentives to work in the formal sector, and allow freeing-up of resources that could be used to help those with insufficient savings.

Indonesia
The OECD also provides country-specific analysis and policy recommendations to help governments create jobs, particularly for vulnerable groups such as younger, older and disabled workers. An important challenge for Southeast Asian economies in developing adequate social protection systems is to ensure that these systems do not weaken work incentives or create obstacles to job creation in the formal sector. OECD analysis suggests that extending social protection systems does not necessarily have to entail adverse labour market effects. If well-designed, they may actually contribute to improved labour market outcomes, but would require: Targeting income support policies to those who need it most. Providing cash transfers to the poorest could increase labour force participation and reduce labour market mismatch (e.g., by allowing the poorest to engage in more effective job searching). Better integration of different social protection programmes and policies in order to improve their cost-effectiveness. Promoting self-insurance based on individual savings accounts 14 The Economic Survey of Indonesia reviewed labour market conditions in Indonesia, which is characterised by a dual labour market: a rigid formal market and a widespread informal sector. To boost formal employment, OECD analysis suggests making the labour code more flexible, reducing generous severance payments, introducing an unemployment insurance scheme and capping further increases in the minimum wage. The 2010 and 2011 editions of the OECDs Employment Outlook include chapters that focus on the impact of social protection policies (e.g., unemployment compensation, cash transfers and healthcare) on labour market outcomes in key emerging economies, including Indonesia. Key links: www.oecd.org/els www.oecd.org/els/social/inequality/emergingeconomies OECD Committee: Employment, Labour and Social Affairs Committee

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1.5 Employment and Skills Development at the Local Level

The OECD Programme on Local Economic and Employment Development (LEED) supports governments in fostering economic growth, employment and inclusion at the local level, by drawing on the experiences from some 50 countries in the Americas, Asia and Europe. In 2008, LEED, together with the International Labour Organisation (ILO) and the ASEAN, launched an initiative on Employment and Skills Strategies in Southeast Asia (ESSSA). This Initiative aims to help countries of the region design effective cross-cutting policies, to develop adequate governance mechanisms and to strengthen government capacities to implement effective local employment and skills development strategies. ESSSA gathers policymakers, practitioners and researchers from both developed and emerging economies, including Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, the Peoples Republic of China, Chinese Taipei, Mongolia, India, Japan, Korea, Australia and New Zealand. ESSSA emphasises that shifting from export-led growth towards greater reliance on domestic and regional sources of demand will be critical to sustain economic prosperity in Southeast Asia. Local governments can play a key role in this transition by: 16

Improving policy coherence between national and local levels of government. Implementing active labour market policies (e.g., through better equipped public employment services and more effective training for the unemployed). Harnessing infrastructure development and the transition to a low carbon economy to create new jobs. Promoting a sustainable business environment for micro, small and medium sized enterprises. Establishing stronger social protection systems. Did you know? In 2009, nearly 60% of workers in Asia and the Pacific around 1.1 billion were in vulnerable employment. The proportion was highest in South Asia at 77%, followed by Southeast Asia at 62%, and East Asia at 51%.

Key links: www.oecd.org/cfe/leed/employment/esssa https://community.oecd.org/community/esssa OECD Committees: OECD Working Party on SMEs and Entrepreneurship Co-operative Action Programme on Local Economic and Employment Development

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1.6 Agriculture and Food Security

The OECD undertakes analysis and provides policy advice to help governments design and implement agriculture policies that support productivity, competitiveness and sustainability, while avoiding unnecessary production and trade distortions. The Organisation has recently put in place a structured mechanism for further developing relationships with the G20 economies (which include Indonesia) through bi-annual meetings that enable policymakers to discuss the most pressing global agricultural policy issues. The OECD prepares analytical work to support G20 discussions on agriculture and with the United Nations Food and Agriculture Organisation (FAO) recently co-ordinated the report Price Volatility and Agriculture Markets: Policy Responses. Extreme volatility in international prices for agricultural commodities has an effect on Southeast Asian countries. The OECD, in collaboration with the FAO, monitors developments in global commodity markets through the annual OECD-FAO Agricultural Outlook. The OECD also provides a forum for high-level discussion on effective policy responses in areas such as agricultural support, food security and biofuels. Many Southeast Asian countries, including Indonesia, Thailand, Malaysia and Vietnam, have engaged in an ongoing dialogue with the OECD through the Global Forums on Agriculture and OECD regional meetings. 18

The Economic Importance of Agriculture for Sustainable Development and Poverty Reduction is a recent study of the role of agriculture in poverty reduction and features in-depth case studies of Indonesia and Vietnam. It finds that growth in labour productivity in agriculture contributed most to the poverty reduction in Vietnam while in Indonesia recent growth in worker productivity in services contributed most.

Indonesia
Indonesia is the subject of a comprehensive OECD Review of Agricultural Policies, due for release in 2012, which assesses changes in Indonesian agriculture over the last two decades. It evaluates Indonesian agricultural policy reforms, provides recommendations for improving policy performance and includes a special chapter on promoting sustainable investment in agriculture.

Did you know? In Indonesia agriculture accounts for 14% of GDP and 40% of total employment.

Key links: www.oecd.org/agriculture OECD Committees: Committee for Agriculture

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1.7 Development Co-operation

The OECD Development Assistance Committee (DAC) groups the worlds main donors and contributes to international efforts to alleviate poverty and achieve the UN Millennium Development Goals. It does this by gathering and publishing unique data on aid flows and development finance and by defining, promoting and monitoring good practice in development co-operation. The DAC engages with a range of public and private stakeholders to promote mutual learning and to facilitate innovative, integrated approaches to development co-operation. Indonesia and other Southeast Asian countries are important partners in this work, both in their capacity as aid recipients and in their growing role as aid providers. Cambodia, Indonesia, the Philippines, Thailand and Vietnam are all members of the OECD Working Party on Aid Effectiveness, an international forum working to improve aid delivery and who have endorsed, along with Lao PDR and Malaysia, the 2005 Paris Declaration on Aid Effectiveness. Progress in the implementation of the Paris Declaration principles are being assessed at the Fourth High Level Forum on Aid Effectiveness in Busan, Korea, on 29 November to 1 December, 2011. Discussions are based on the results of a survey which includes specific chapters on aid effectiveness in Cambodia, Indonesia, Lao PDR, the Philippines and Vietnam. 20

Through the Partnership in Statistics for Development in the 21st Century (PARIS21), the OECD has helped Cambodia, Lao PDR and Vietnam design and implement National Strategies for the Development of Statistics.

Indonesia
Indonesia has already made progress in implementing the Paris Declaration. Its government and 26 development partners have agreed on a number of actions in the 2009 Jakarta Commitment. Indonesia is also co-chairing a task team that is designing recommendations to adapt the Paris Declaration principles to the specific contexts and practices of South-South co-operation (development co-operation among developing countries).

Did you know? While Indonesia heavily relied on external aid (24% of the national budget) during the Asian crisis of 1998-1999, the country had drastically reduced its aid dependency by 2008, with aid accounting for only 4% of the national budget. Key links: www.oecd.org/dac www.oecd.org/dac/opendoors www.oecd.org/dac/cdsg www.paris21.org OECD Committtee: Development Assistance Committee (DAC)

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1.8 Statistics
The OECD Statistics Directorate provides internationallycomparable statistics for the analytical work of the Organisation as well as for users throughout the world. It promotes and develops international statistical standards and co-ordinates statistical activities both within the OECD and with other international agencies.

measures such as GDP. The project involves dialogue with developing and emerging countries through regional conferences such as the Asia-Pacific Conference on 'Measuring Well-Being and Fostering the Progress of Societies' in Tokyo on 5-6 December, 2011 and the OECD World Forum on 'Statistics, Knowledge and Policies'. These events aim to deepen on-going reflection on how to measure well-being and the progress of societies and to establish frameworks for future work.

Indonesia
A key element of engagement between the OECD and Indonesia is the inclusion of Indonesian data in OECD statistical databases. The Organisation has strengthened its relations with Statistics Indonesia and other official statistics producers such as Bank Indonesia. These relationships are leading to improvements in the coverage of Indonesian data in OECD flagship publications such as Main Economic Indicators, which presents a comparison of recent international economic developments in OECD and other major economies. Furthermore, a large and growing number of series for Indonesia are included in the widely consulted OECD Factbook, with work underway to include Indonesia in the National Accounts, Financial Statistics and numerous other OECD databases. Indonesia also participates in the OECD flagship project on 'Measuring Well-Being and Progress of Societies', which examines the use of a broad range of indicators to measure people's well-being and societal progress beyond economic 22

Did you know? In 2010, the unemployment rate in Indonesia stood at 7.4%, while in the OECD it reached an average 8.5%.

Key links: www.oecd.org/std www.oecd.org/statistics OECD Committee: Statistics Committee

STRENGTHENED MARKETS

Well-functioning markets are essential to growth and development. The OECD actively shares its expertise with governments in key policy areas such as investment, trade, competition and financial markets.

2.1 Investment
The OECD collects and compiles statistics on foreign direct investments (FDI), monitors investment protectionism in the context of G20 discussions and develops international instruments that are used worldwide. Instruments include the OECD Codes of Liberalisation of Capital Movements, the Declaration on International Investment and Multinational Enterprises and the Guidelines for Multinational Enterprises. The OECD conducts country-specific Investment Policy Reviews which are based on the Policy Framework for Investment (PFI), a self-assessment tool aimed at helping governments design and implement effective investment

policy reform. The OECD conducted an Investment Policy Review of Vietnam in 2009 in collaboration with the Vietnamese Ministry of Planning and Investment. The OECDs co-operation with the ASEAN Secretariat is also intensifying, and the first ASEAN-OECD Investment Policy Conference was held in November 2010 in Jakarta. The event provided a platform to share experiences and good practices between ASEAN and OECD stakeholders. Discussions highlighted that, despite important improvements in their investment climate, ASEAN countries face increasing competition from other emerging markets such as China in attracting FDI.

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Indonesia
In collaboration with Indonesias Ministry of Finance, the OECD conducted an Investment Policy Review of Indonesia in 2010 which highlights the countrys achievements in opening up its economy, including to foreign investment. However, Indonesias FDI policies remain relatively more restrictive than those of the average OECD country. The review recommends that the Government examines remaining restrictions on FDI and finds ways to meet legitimate public objectives while avoiding discrimination against potential foreign investors. Indonesia is a full participant in the OECDs Freedom of Investment roundtables. These roundtables bring together some 50 governments from around the world to exchange information on investment policies and develop common guidance to promote open, transparent and non-discriminatory investment policies.

2.2 Trade
The OECD conducts analytical work and facilitates dialogue in support of multilateral trade liberalisation, within an informal and non-negotiating setting. The Organisation is further developing its relationship with the G20 countries through biannual meetings that bring policymakers together to discuss important global trade policy issues. The OECDs Global Forum on Trade is another important vehicle for dialogue on trade-related policies between OECD members and partner economies. The November 2011 meeting of the Global Forum focused on trade, employment and inclusive growth. Policy experience in Indonesia, Thailand and Vietnam has been examined in the context of the International Collaborative Initiative on Trade and Employment (ICITE), a joint undertaking of 10 international organisations including OECD, UNCTAD, World Bank, World Trade Organisation and Asian Development Bank, that are working together to better understand the mechanisms by which trade interacts with employment. The OECD has also embarked on an ambitious long-term project to identify, catalogue and analyse barriers to international trade in services (i.e. domestic regulations that impact services trade). These regulations are being compiled in a database and used to compute Services Trade Restrictiveness Indices (STRI). So far work has been completed for all 34 OECD countries in four pilot sectors: computer and related services, professional services, 25

Did you know? Indonesia attracted over USD 13 billion of FDI flows in 2010, the highest level in its history. This represents 2% of its GDP. In comparison, the FDI/GDP ratio stood at an average 1.5% in OECD countries in 2010.

Key links: www.oecd.org/daf/investment OECD Committees: Investment Committee

construction, and telecommunications. Throughout 2011-12, the OECD will examine the full logistics chain and extend the STRI project to include partner economies, including those in Southeast Asia. This unique project will provide policymakers and trade negotiators with the information and measurement tools they require to identify barriers, improve the domestic policy environment, negotiate international agreements and open up international trade in services. The OECD currently collects information from around 100 countries, including Indonesia and other Southeast Asian countries, on export restrictions on raw materials. This information will be compiled in a database which will then be used to analyse the economic effects of export restrictions in exporting and importing countries. The OECD is actively working with other international agencies to improve the effectiveness of aid for trade. It welcomes the active engagement of Southeast Asian countries in the OECD/WTO Aid for Trade Initiative. The third edition of the joint OECD/WTO publication Aid for Trade at a Glance highlights the objectives, challenges and processes of trade-related assistance in the region and also showcases several case studies from Southeast Asia, including Cambodia, Indonesia, Lao PDR, Thailand, and Vietnam. Did you know? Services generate more than two-thirds of GDP globally and provide over 70% of employment in OECD economies. In Indonesia the services sector represents more than 47% of GDP and absorbs 40% of the workforce. 26

Key links: www.oecd.org/trade www.oecd.org/trade/stri OECD Committees: Trade Committee

2.3 Export Credits

Governments provide official export credits through Export Credit Agencies in support of national exporters competing for overseas sales. The OECD develops and monitors international disciplines in this area to ensure a level-playing field amongst exporters and to reduce trade distortions. The Arrangement on Officially Supported Export Credits stipulates the most generous financial terms and conditions for officially supported export credits. The OECD also provides a forum for discussion and co-ordination of national export credit policies. Key link: www.oecd.org/trade/xcred OECD Committee: Working Party on Export Credits and Credit Guarantees (Trade Committee)

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2.4 Competition
Competition policy is a key tool for improving economic performance, maximising consumer welfare, and promoting innovation, foreign trade and investment. The OECD promotes sound competition principles and helps build mutual understanding and international convergence. The Organisation has developed a Competition Assessment Toolkit that provides a general methodology, or checklist, to review laws and regulations that could restrain competition. The principles laid out in the Toolkit are simple and flexible enough to be applied to governmental activities across different sectors and countries. The OECD has also developed Guidelines for Fighting Bid Rigging in Public Procurement to assist governments in raising awareness of the risks and costs of collusion in public procurement. The OECD works closely with ASEAN member countries and the ASEAN Secretariat to support their efforts to introduce national competition law and policy by 2015. Through targeted national and regional workshops, the OECD helps countries build domestic competition capacity. The Competition Programme at the OECDKorea Policy Centre provides a hub to help officials from across Asia develop and implement effective competition law. Peer reviews of Indonesia have highlighted the policy measures necessary for further pro-competitive regulatory reforms.

of the Commission for the Supervision of Business Competition (KPPU) in 2000. While the regulatory framework has significantly improved since 1999 and has contributed to a fairer business environment, ensuring equal treatment regardless of ownership structure, the Review finds that a number of policy actions could be undertaken to further strengthen competition, including: Reviewing certain provisions to increase the enforcement power of KPPU and clarifying duplicate articles in the law. Issuing an implementation regulation to review anti-competitive mergers and acquisitions. Continuing efforts to address any anti-competitive practices by incumbent state-owned enterprises.

Did you know? At present, Indonesia, Singapore, Thailand and Vietnam have economy-wide competition laws and policies. Malaysias new competition law will come into force in 2012. Key links: www.oecd.org/competition OECD Committee: Competition Committee

Indonesia
The 2011 Investment Policy Review of Indonesia includes an analysis of Indonesias regulatory framework for competition since the enactment of the first Competition Law of 1999 and the establishment 28

2.5 Financial Markets

The OECD promotes open, efficient, stable and sound marketoriented financial systems, based on high levels of transparency, confidence and integrity. It monitors and surveys current market developments and structural changes, publishing key findings in the OECDs biannual publication Financial Market Trends. The OECD also suggests reform measures related to banking, securities and institutional investors, in particular with regard to insurance companies and private pension schemes. The 2010 report Challenges and Developments in the Financial Systems of the Southeast Asian Economies examined the financial systems of Southeast Asia and focused on challenges and developments across the region. The OECD also facilitates policy dialogue and exchange of experiences among OECD and Asian countries on issues such as capital market reforms and financial education. Established in 1999, the OECD-Asian Development Bank Insitute Roundtable on Capital Market Reform in Asia meets once per year in Tokyo to allow Asian and OECD country regulators, policymakers, experts, practitioners and scholars, as well as international organisations, to discuss the latest developments in capital market reform in Asia. The Roundtable has examined the development of Asian bond markets as well as policy frameworks for effective and efficient financial regulation in Southeast Asia.

The OECD also aims to improve financial literacy through its International Network on Financial Education, which regroups 170 institutions from 86 countries, and works closely with Bank Indonesia in this area. The OECD and the Indonesian Ministry of Finance have developed a co-operation programme on the following topics: (1) Financial institutions and institutional investors, (2) Promotion of financial literacy and awareness in the insurance and private pension sectors, (3) Insurance statistics data, (4) Insurance market development in Indonesia, (5) Private pensions and reform, (6) Debt management and government securities market development, (7) Effectiveness of financial regulation and supervision of financial markets and institutions and (8) Financial education, awareness and risk mitigation.

Did you know? In 2008, portfolio investments as a percentage of GDP were larger in Singapore, Hong Kong, China and Malaysia than the OECD average. Key links: www.oecd.org/daf/fin www.oecd.org/daf/fmt OECD Committees: Committee on Financial Markets Insurance and Private Pensions Committee 29

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2.6 SMEs and Entrepreneurship

Governments around the world have recognised the importance of Small and Medium Enterprises (SMEs) and their contribution to economic growth, social cohesion, employment and local development. The OECDs Working Party on SME and Entrepreneurship enables policymakers from Member and partner economies to come together to discuss policy experiences and to identify best practices for the promotion of entrepreneurship and SME development. Topics reviewed include the business environment and regulatory framework, innovation, financing, taxation, human resources, access to markets, electronic commerce, and womens entrepreneurship. The OECD has engaged with Southeast Asian countries in this policy area in a number of ways. For example, Indonesia, Vietnam and the Philippines endorsed the OECD Bologna Charter on SME Policies in June 2000, which provides guidance for developing effective SME policies and calls for increased co-ordination and dialogue amongst countries. Thailand is a regular observer in the OECD Working Party on SMEs and Entrepreneurship. The OECD has also produced thematic and country-specific Studies on SMEs and Entrepreneurship Policies, one of which focused on Thailand. The 2011 Review of SME and Entrepreneurship Issues and Policies at National and Local Levels in Thailand was undertaken

at the request of the Thai Ministry of Foreign Affairs and the Thai Office of SME Promotion, to support the preparation of Thailands Third SME Master Plan, 2012-16. The study provides a number of recommendations, including: reducing the large developmental gap between SMEs operating in the centre of the country compared to those in regions; preparing Thailand for the ASEAN Economic Community in 2015; increasing the number of innovation-driven entrepreneurs; further developing SMEs as an engine for growth; and increasing the number of Thai SMEs operating internationally.

Did you know? As in OECD countries, SMEs in Thailand generate a large share of jobs (78% of total employment) and contribute to economic growth (43% of non-agricultural GDP) and international trade (30% of total exports).

Key link: www.oecd.org/cfe OECD Committee: OECD Working Party on Small and Medium-sized Enterprises & Entrepreneurship (WPSMEE)

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2.7 Emerging Markets Network

The Emerging Markets Network (EmNet), launched by the OECD Development Centre in 2007, is an initiative dedicated to the private sector that serves as a platform for dialogue and experience-sharing among OECD-based multinational corporations and their counterparts in emerging economies. Discussions focus on global economic, social and environmental issues of interest to businesses, such as global economic prospects, international investment, financial markets and infrastructure. EmNet also proposes a wide range of services to member companies through privileged and customised access to the OECDs information resources and experts. With a large number of EmNet member companies operating and investing in the Southeast Asia region, the Network seeks to involve more local companies on a more regular basis, including through its annual event in Beijing, co-organised with the China International Council for the Promotion of Multinational Corporations which is an association for business promotion linked to Chinas Ministry of Commerce. The Development Bank of Singapore is currently a member of Emnet. Key link: www.oecd.org/dev/emnet

2.8 Business and Industry Advisory Committee

The Business and Industry Advisory Committee to the OECD (BIAC), established in 1962, is the formally recognised voice of the OECD business community. It represents 41 major national business and employers organisations in OECD member countries, and has an Observer programme through which national business organisations from non-OECD countries can actively engage in BIAC policy activities. Business organisations from Argentina, Brazil, India, Latvia, Morocco, Russia and South Africa have been participating for several years as BIAC Observers. BIAC welcomed the Indonesian Chamber of Commerce and Industry (KADIN) as an Observer in April 2011. KADIN can now provide its views and comments on OECD-Indonesia cooperation, as well as other broader OECD activities, through BIACs 37 policy committees and task forces in such areas as investment, trade, economic policy, anti-bribery, employment, and taxation, among many others. BIAC intends to reach out to other Asian national business organisations with a view to extending BIAC Observer status. Key link: www.biac.org

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PUBLIC AND CORPORATE GOVERNANCE

Effective public sector management, reduced 'red tape' and sound corporate governance are key to promoting growth and development. The OECD works closely with Southeast Asian countries in these areas and in the global fight against tax evasion and bribery of foreign public officials to promote good governance around the world.

3.1 Regulatory Reform and Administrative Simplification

By promoting regulatory quality and disseminating best practices in regulatory policy, institutions and tools, the OECD helps countries to design and implement regulations to enhance the functioning of markets, to protect health, safety and the environment, and to deregulate when appropriate and encourage more open competition. The OECD develops international instruments and tools, such as the Guiding Principles for Regulatory Quality and Performance

and the APEC-OECD Integrated Checklist on Regulatory Reform, conducts country peer reviews and facilitates policy dialogue among OECD and emerging economies. OECD work covers administrative simplification, regulatory compliance and enforcement, regulatory impact assessment, transparency and communication, and alternatives to regulation.

Did you know? Establishing and improving national regulations are at the heart of Indonesias Master Plan for the Acceleration and Expansion of Indonesias Economic Development 2011-25.

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Indonesia
The OECD's forthcoming Regulatory Reform Review of Indonesia aims to support the governments efforts to improve the design and enforcement of regulations that are necessary to attract and retain investment, improve public services and raise public welfare. The Review will examine the following issues: Administrative and institutional arrangements necessary for ensuring effective and efficient regulations. Regulatory settings for improving infrastructure connectivity across the Indonesian archipelago. Regulatory obstacles in the areas of ports, rail and shipping. Budgetary and governance arrangements for the management of Public Private Partnerships.

3.2 Budgeting and Public Expenditures

A countrys public expenditure system should promote fiscal discipline, the allocation and re-allocation of resources to where they are most needed, and the efficient operation of government. The OECDs Working Party of Senior Budget Officials is recognised as the worlds leading forum on international budgeting issues, and its Network of Senior Budget Officials for Asia brings together budget directors and senior officials from Asian and OECD countries to share policy experiences and discuss common budgetary issues. ASEAN countries, including Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Philippines, Singapore, Thailand and Vietnam, participate in the Network. The work of the Network is based on three pillars: 1) to conduct cross-country analytical studies in order to identify best practices based on the experience of the Asian region and of OECD countries. Current work includes studies on the fiscal response to the global financial crisis; 2) to conduct peer reviews (profiles) of the budgeting systems of countries in the region. Reviews have been carried out for Thailand, Singapore, Indonesia and the Philippines; 3) to maintain an extensive database of budget institutions and practices in the Asian region. This is being integrated into the overall OECD Budgeting Database. Recent meetings of the Network of Senior Budget Officials for Asia have been hosted by the Thai Bureau of the Budget in Bangkok.

The Review will involve co-operation from a wide range of stakeholders, including the Indonesian Ministry of Finance, the Ministry of Trade, the Competition Authority, the Ministry of Planning and the Coordinating Ministry for Economic Affairs. Key link: www.oecd.org/gov/regref OECD Committee: Regulatory Policy Committee

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Indonesia
The OECD report Budgeting in Indonesia shows that, since the economic crisis, important improvements have been introduced to budgeting in Indonesia, including the creation of a modern legal framework for budgeting and the unification of budget. Acknowledging the ardent role that Indonesias Parliament has taken in the budget process and the introduction of a national planning function alongside budgeting, the report suggests that further progress could be achieved by: Introducing a more operational expenditure-based fiscal rule. Avoiding the concentration of spending in the last months of the fiscal year.

Key link: www.oecd.org/gov/budget OECD Committee Working Party of Senior Budget Officials (Public Governance Committee)

Reducing the emphasis on unnecessary detail in its official budget documentation. Excessive detail could hamper some of the reform initiatives under consideration in Indonesia.

Did you know? In 2003, Indonesia adopted a fiscal rule which caps annual deficits at 3% of GDP and accumulated debt at 60% of GDP. Yet, the countrys actual fiscal performance has consistently been much better. Debt levels have continued to decrease, reaching 26% of GDP in 2010, and annual deficits have ranged between 0.5% and 1.2% of GDP since 2003.

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3.3 Taxation
The OECD analyses and provides advice on international and domestic tax policy and administration issues, including indirect and direct taxes, tax compliance, international tax co-operation and environmental taxation, and is actively involved in countering crossborder tax evasion. It has developed and oversees the implementation of international taxation instruments including the OECD Model Tax Convention on Income and on Capital and the Transfer Pricing Guidelines for Multinational Enterprises. The OECD organises approximately 20 seminars and policy dialogues per year in Southeast Asia, events that bring together tax officials from the region as well as OECD countries to share experiences and tax expertise on technical, policy and administrative issues. In 2011, Malaysia, Indonesia, Singapore and Thailand hosted events focusing on tax treaties, transfer pricing, exchange of information, tax administration and other important tax matters. Countries in the region have also actively contributed to the work of the OECD. Indonesia, Malaysia, the Philippines and Singapore play a key role as Members of the Global Forum on Transparency and Exchange of Information for Tax Purposes. The Global Forum, which brings together over 100 OECD and non-OECD jurisdictions, monitors the implementation of internationally-agreed tax transparency standards through country peer reviews. Peer reviews of the legal and regulatory framework for transparency and exchange of information for tax purposes in Singapore and the Philippines were released in June 2011. A similar review was released for Indonesia in 36

November 2011. All four countries have endorsed and substantially implemented international standards for transparency and exchange of information for tax purposes. Furthermore, Indonesia and Malaysia participate as Observers in selected Working Party meetings of the OECD's Committee on Fiscal Affairs and on 3 November 2011, Indonesia signed the OECD Convention on Mutual Administrative Assistance in Tax Matters. The rapidly increasing integration of Southeast Asian economies into the global economy highlights the importance of fostering co-operation between Southeast Asia and the OECD on taxation issues. Such co-operation has already helped countries in the region to design and implement taxation and administrative measures that reflect international best practices.

Did you know? Indonesia, Malaysia, the Philippines and Singapore are all members of the Global Forum on Transparency and Exchange of Information for Tax Purposes, the key international fora to fight cross-border tax evasion worldwide. Key links: www.oecd.org/taxation and www.oecd.org/tax/globalrelations www.itdweb.org OECD Committees: Committee on Fiscal Affairs Global Forum on Transparency and Exchange of Information for Tax Purposes

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3.4 Fighting Corruption

Corruption is a major obstacle to economic development because it undermines good governance, sustainable development and fair business practices. The OECD has developed a Convention on Bribery of Foreign Public Officials in International Business Transactions (commonly called the OECD Anti-Bribery Convention) and monitors its implementation through peer reviews that are discussed by the OECD Working Group on Bribery. This international instrument has been adopted by 38 countries around the world. The OECD Working Group on Bribery has also identified Thailand, Malaysia and Singapore as countries for closer engagement. Thailand and Malaysia already participate in the Working Group as ad hoc Observers. Indonesia, Vietnam, Thailand, Malaysia, Singapore, the Philippines and Cambodia are also active members of the ADB/OECD Anti-Corruption Initiative for Asia and the Pacific. This Initiative regroups 28 Asia-Pacific economies that have jointly developed the Anti-Corruption Action Plan for Asia and the Pacific and work together towards its implementation. The Initiative supports member governments' efforts through three channels: policy dialogue, policy analysis, and capacity building. Did you know? The G20 Anti-Corruption Action Plan entrusts to the OECD Working Group on Bribery a key role in engaging with all G20 countries on the standards of the OECD Anti-Bribery Convention. 38

Indonesia
Indonesias Corruption Eradication Commission (KPK) has participated in the Working Group on Bribery as an ad hoc Observer since 2009. The Indonesian Government also funded and jointly organised with the OECD a major international conference on foreign bribery in May 2011, back-to-back with a meeting of the G20 Anti-Corruption Working Group. In September 2010, the ADB/OECD Anti-Corruption Initiative published The Criminalisation of Bribery in Asia and the Pacific, a thematic review that provides analysis of domestic and foreign bribery offences in each of the 28 ADB/OECD Initiative members. One of the findings of the review is that Indonesian law does not provide for an express active or passive foreign bribery offence. To meet international standards, Indonesia could consider adopting a specific offence criminalising bribery of officials of foreign countries and public international organisations in the conduct of international business. Key links: www.oecd.org/corruption www.oecd.org/corruption/asiapacific OECD Committee: Working Group on Bribery in International Business Transactions (Invesment Committee)

3.5 Corporate Governance

OECD work on corporate governance is based on two international instruments: 1) the OECD Principles of Corporate Governance, which constitutes one of the 12 key standards for international financial stability of the Financial Stability Forum; and 2) the OECD Guidelines on Corporate Governance of State-owned Enterprises, which gives concrete advice to make such enterprises more competitive, efficient and transparent. The Asia Network on Corporate Governance of State-Owned Enterprises gathers high-level policy makers from 14 Asian countries, including Indonesia, Malaysia, Thailand, Singapore, Vietnam, and the Philippines to promote governance reforms in state-owned enterprises (SOEs), using the OECD Guidelines on Corporate Governance of SOEs as a reference. The Asia Network has developed a Regional Policy Brief, providing a set of recommendations and priorities for policy reform in order to improve the corporate governance of SOEs in Asia. The 2011 report Corporate Governance in Asia: Progress and Challenges highlights the improvements in corporate governance in Asia during the past decade, particularly with regard to countries legal and regulatory frameworks. The report also highlights ongoing challenges, and makes the following recommendations: All jurisdictions should strive for effective enforcement of corporate-governance laws and regulations.

Board performance needs to be further improved through training and evaluation. The quality of disclosure needs to improve in a timely and transparent manner. Jurisdictions should promote the adoption of emerging good practices for non-financial disclosure. The legal and regulatory framework should ensure that noncontrolling shareholders are protected from expropriation by insiders and controlling shareholders. Gatekeepers such as external auditors, rating agencies, advisors, and intermediaries must avoid conflicts of interest. Shareholder engagement should be encouraged, in particular by institutional investors. Governments should intensify their efforts to improve the regulation and corporate governance of banks.

Did you know? State-owned enterprises represent a significant part of the total stock market capitalisation in Asia: from around 20 % in Singapore, 25% in both India and Thailand, around 33% in both Indonesia and Pakistan, to around 50% in Malaysia and close to 60% in China. 39

Indonesia
The Asian Roundtable on Corporate Governance serves as a regional hub for exchanging experiences and advancing the corporate governance reform agenda in Asia, based on the OECD Principles of Corporate Governance. Hosted by Indonesia in 2011, participants evaluate implementation and enforcement as well as analyse policy options to support viable and effective corporate governance reforms. A bilateral policy dialogue programme between the OECD and Indonesia was launched in October 2011. It will focus on disclosure of beneficial ownership and control, a priority for the Indonesian Government. Key links: www.oecd.org/daf/corporateaffairs www.oecd.org/daf/corporateaffairs/roundtables/asia OECD Committee: Corporate Governance Committee

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4
Society

SOCIETY
The OECD helps shape social policy in areas such as education and vocational training, health and pensions, financial education and international migration, all of which promote citizens welfare, increase social cohesion and achieve more inclusive economic growth.

4.1 Society, Health and Pensions

Southeast Asian societies are undergoing significant change at a time when the global financial situation is putting additional stress on social protection and health systems. The regions social and health policies must therefore be adapted accordingly.

range of social issues. The report also demonstrates how social indicators can be used to measure well-being in Southeast Asian economies.

Pensions
Pensions are a major policy issue in Southeast Asian and OECD economies alike. The OECD has developed international standards and statistical data to help monitor the pensions industry, and is currently drawing up guidelines on the security of investments in pension funds. In 2009, the OECD/Korea Policy Centre, the OECD and the World Bank first published Pensions at a Glance: Asia/Pacific Edition. This report analysed the retirement income systems of several Southeast Asian economies and provided a reference for pension comparison throughout the region. 41

Society at a Glance Asia/Pacific, published by the OECD/Korea Policy Centre every two years, offers a broad overview of the state of Asia-Pacific economies using a wide variety of social and economic indicators that help inform policy on a broad

The OECDs analysis of pension systems in East and Southeast Asia will also feature in the forthcoming Asian Development Bank publication Pension Systems and Old-Age Income Support in East and Southeast Asia: Overview and Reform Directions.

Key links: www.oecd.org/health www.oecdkorea.org OECD Committees: Health Committee Employment, Labour and Social Affairs Committee

Health
The OECD uses health data to draw practical recommendations for improving health system performance. Additionally, it encourages the development of health accounting systems to track health expenditures and financing flows in the Asia-Pacific region. The 2010 OECD report Health at a Glance: Asia/Pacific provides comparative health data and trends in selected Asia/Pacific economies, while the Health Accounts Systems Green Papers for Malaysia (2009), Thailand (2007) and Indonesia (2011) provide country-specific analyses. The OECD and the World Health Organisation have assessed the effectiveness and the efficiency of prevention policies aimed at tackling chronic diseases, such as cardiovascular diseases. It is estimated that chronic diseases cause a reduction in GDP of 1-5% in low and middle-income economies, while the cost of effectively tackling the main risk factors, such as smoking and high blood pressure, may cost as little as USD 1.5 per capita per year. Did you know? Asian economies spend annually an average of USD 526 per capita on health (4% of GDP), compared to an average of USD 3,060 per capita in OECD countries (9% of GDP). 42

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4.2 Education and Training

Education, which is not only a pillar of economic growth but also a prerequisite for long-term development, empowers individuals to become fully active citizens. The OECD looks at understanding the impact of education on national growth and individual prosperity, as well as its role in combating poverty and social exclusion. The Organisation also provides cross-country data and analysis, as well as country-specific advice, on education policymaking ranging from early childhood to elementary and secondary school, higher education and adult learning. Southeast Asian economies have long been involved with the OECDs Programme for International Student Assessment (PISA), which assesses the reading, mathematics and scientific literacy skills of 15-year-old students. Indonesia and Thailand have participated in all PISA surveys since 2000. Malaysia and Singapore participated in PISA 2009 and along with Vietnam will participate in PISA 2012. The Teaching and Learning International Survey (TALIS) provides insights into the working conditions of teachers as well as teaching and learning practices in schools. Malaysia has participated in TALIS 2008 and Singapore is expected to participate in 2013. In the OECDs first Teaching and Learning International Survey, teachers in Malaysia reported benefitting from a well developed appraisal and feedback system, which provides them with a development plan and rewards them for improving quality or being more innovative. 44

In addition to cross-country benchmarking exercises, the OECD has also conducted country-specific reviews such as Higher Education in Regional and City Development: Penang, Malaysia in 2011. The forthcoming Review of Education Policies of Indonesia (due in 2013) will examine the countrys entire education system. Did you know? In Singapore, one in six students (16%) showed very advanced mathematical skills (proficiency level 6) compared to an OECD average of just 3%.

Key links: www.oecd.org/education www.oecd.org/edu/learningforjobs www.oecd.org/edu/pisa OECD Committee: Education Committee

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4.3 Financial Education

Financial education is required to develop the financial awareness and skills of both consumers and investors. In 2008, the OECD established the International Network on Financial Education (INFE), which brings together over 200 senior government officials from 88 economies, including Malaysia, the Philippines, Singapore, Thailand, and Cambodia. Officials exchange experiences and discuss programmes and research related to financial education with a view to identifying good practices and principles. To increase financial literacy, the OECD recommends that governments develop dedicated national strategies for financial education. Such strategies should be holistic in nature, involving various state and non-state actors, and should be based on an accurate diagnosis of the actual level of financial literacy amongst the population. Whenever possible, such a strategy should also call for the introduction of financial education in school curricula. Did you know? The Philippines Central Bank launched a Financial Education Master Plan in 2008, based on the vision that Financial Education is a Building Block for a Stronger Economy. The Plan targets college students, young professionals, entrepreneurs, retirees, and individuals from the marginalized sector.

Indonesia
The OECD has developed bilateral programmes with Bank Indonesia and the Indonesian Ministry of Finance. The objective is to facilitate collaboration in the areas of financial education and inclusion as well as a range of other areas, including: insurance (statistics, market development, and consumer awareness), debt management, private pensions reform, securities market development, and financial regulation and supervision. Co-operation with Bank Indonesia also aims to support the development of a national strategy on financial inclusion. Recent work has included a jointly organised regional seminar as well as a roundtable meeting of Asian Central Banks on financial literacy. Key links: www.financial-education.org www.oecd.org/daf/financialeducation OECD Committees: Committee on Financial Markets Insurance and Private Pensions Committee

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4.4 International Migration

With migration flows around the world having increased rapidly in recent decades, the link between migration and economic development in origin countries has become a topic of growing importance. Monitoring migration flows and policies, the OECDs Database on Immigrants in OECD Countries (DIOC) includes detailed information about Southeast Asian immigration into OECD countries. The Database has also recently extended its coverage to include immigration flows into most Southeast Asian countries. The OECDs 2012 edition of the International Migration Outlook will include a special chapter on migration in Asia. OECD work on migration dynamics and policies in Southeast Asia has focused on issues such as brain drain, return migration and international mobility of health professionals. Research in this area looks in particular at how the management of labour migration can better support economic growth in origin countries. In addition, the OECD and the Asian Development Bank Institute have started to co-organise Roundtables on Labour Migration in Asia (the first meeting took place in January 2011). Southeast Asian countries share some common concerns with OECD countries on key migration issues such as the management of labour migration, the fight against irregular migration, and the impact of remittances on development.

Between 2000 and 2005, the number of immigrants from Southeast Asian countries living in OECD countries rose by approximately 20%. The number of immigrants from Indonesia did not increase. Legal and illegal migration remains a pressing issue for Southeast Asian countries. During the 2008 global financial crisis, many migrants were forced to return home, facing a choice between deportation or else remaining illegally in host countries. This has had significant affects on most lowwage workers, while mobility among the highly skilled, both within and outside Southeast Asia, has increased. Did you know? In 2009, about 290,000 people left Southeast Asia for OECD countries, accounting for almost 6% of total immigration flows into the OECD area. More than half came from the Philippines.

Key links: www.oecd.org/migration www.oecd.org/migration/DIOC www.oecd.org/migration/imo

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5
48

INNOVATION AND INDUSTRY

In our knowledge-based economy, science and technology and their applications to industrial and services sectors are major sources of economic growth. The OECD advises governments on innovation and transport policies, analyses key trends in steel and promotes the mutual acceptance of chemicals-related data.

5.1 Information Technology and Innovation

The OECD collects and compiles quantitative and qualitative indicators on science, technology and innovation. It also analyses national policies, advises member and partner governments on effective science, technology and innovation strategies, and supports international co-operation in this area. Key publications include the bi-annual Science, Technology and Industry Scoreboard and the Science, Technology and Industry Outlook which has a country profile of Indonesia. Southeast Asia is in a period of transition as its national economies become more integrated into regional and global

production and knowledge networks. At the same time, there is much scope in the region for boosting science, technology and innovation activities, offering opportunities for economies to move up the value chain, catch up in terms of per capita income and increase the social well-being of the population. The OECD has launched an initiative to map the science, technology and innovation capacities of Southeast Asian countries, with a view to identifying the opportunities for co-operation between the region and OECD countries. It is an initiative greatly welcomed by the ASEAN Committee for Science and Technology. The forthcoming OECD Review of Innovation in Southeast Asia will include a set of country notes describing the dynamics of

national innovation systems and their relation to international knowledge f lows. A particular focus will be given to f lows between the Southeast Asian region and the European Union, Japan, the United States, China and India. The Review will serve as a basis for more in-depth, country-specific innovation policy reviews. A first joint OECD-World Bank Science, Technology and Innovation Review of Vietnam is currently under preparation. Recent OECD analysis finds that Southeast Asia could benefit from: Better leveraging on innovation for diversifying the economy and moving up the value chain. Increasing investment in innovation-related including in R&D and human capital. assets,

Did you know? Human resources in science and technology play a key role in innovation. In Indonesia, such workers accounted for 7% of the total workforce in 2008.

Key links: www.oecd.org/sti/stpolicy www.oecd.org/sti/innovation OECD Committee: Committee for Scientific and Technological Policy Committee for Information, Computer and Communications Policy

Moving towards a more enterprise-driven innovation system and fostering linkages and co-operation. Reforming the governance of innovation systems, by taking account of international experiences and good practices.

The OECD is also building a new online knowledge management system Innovation Policy Platform in support of innovation policy-making and analysis, for users in OECD and partner economies.

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5.2 Shipbuilding and Steel

The OECDs Council Working Party on Shipbuilding is the only international platform that allows governments and industry to discuss economic and policy issues pertaining to the global shipbuilding industry and to consider solutions to possible multilateral problems. The Working Party has made significant efforts to engage with ASEAN countries and further engagement remains a high priority. Did you know? Indonesia, Malaysia, the Philippines, Singapore and Vietnam together accounted for around 4% of global shipbuilding production in 2010. While China, Korea and Japan are the worlds main shipbuilding producers (accounting for almost 85% of world production in 2010), several ASEAN countries also have significant shipbuilding sectors. OECD analysis shows that: Between 2008 and 2010, the shipbuilding production of Vietnam and the Philippines more than doubled, at a time when production in traditional shipbuilding countries declined due to the impact of the global financial crisis. As shipbuilding activities shift to East and Southeast Asia (principally China, but also to some ASEAN countries), other traditional producers (especially in Europe) are increasingly focused on specialized niche markets.

The OECD Steel Committee is a global platform where multilateral steel-industry issues are discussed and policy solutions are explored. Malaysia is a Regular Observer to this Committee. The South East Asian Iron and Steel Institute (the voice of steel producers in the region) also participates in some of the Committees work. Six Southeast Asian countries have a notable steel industry: Malaysia, Thailand, Indonesia, Vietnam, Philippines and Singapore. Their crude steel production has increased in recent years, but because of the large number of rolling mills which do not make their own crude steel, the regions finished steel production is typically much higher than crude production. The bi-annual publication Developments in Steelmaking Capacity of Non-OECD Economies has monitored steel industry trends in Malaysia, Indonesia, Thailand, and Vietnam. Latest OECD analysis indicates that producers in the region are looking to expand their crude steel production capacity significantly, which in the future may reduce some of the regions dependency on imports and lead to significant changes in regional steel trade flows. Did you Know? In 2010, Malaysia, Thailand, Indonesia, Vietnam, the Philippines and Singapore produced almost 16 million tonnes of crude steel, accounting for more than 1% of global steel production.

Key links: www.oecd.org/sti/industry-issues OECD Committees: Council Working Party on Shipbuilding Steel Committee

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5.3 Chemicals
With a view to better protecting human health and the environment, the OECD works with countries to improve chemical safety, to make chemical control policies more transparent and efficient, to save resources for government and industry, and to prevent unnecessary distortions in the trade of chemicals and chemical products.

Did you know? The OECD Mutual Acceptance of Data system saves adhering governments and chemical producers over EUR 150 million every year. Key link: www.oecd.org/ehs OECD Committee: Chemicals Committee

Mutual Acceptance of Data (MAD)

The OECD Mutual Acceptance of Data in the Assessment of Chemicals System is a multilateral agreement which allows the results of non-clinical safety-testing done on chemicals and chemical products, such as industrial chemicals and pesticides, to be shared across adhering countries. Several Southeast Asian countries are involved in the OECD Mutual Acceptance of Data system. Singapore is a full adherent, alongside other partner economies such as Argentina, Brazil, India and South Africa. Full adherence for Singapore means that OECD members and other adhering countries will accept test data generated under MAD conditions in Singapore. This removes a potential nontariff trade barrier between Singapore and the other adhering countries. Malaysia and Thailand are provisional adherents.

5.4 Transport
The International Transport Forum, which has 52 member countries, acts as a strategic think tank for transport policy and organises an annual summit of ministers. These summits also re-group leading decision-makers and actors from the private sector, civil society and research, to address transport issues of strategic importance. Both India and China have recently joined the Forum as Members. Indonesia has been identified as a priority country for the Forums outreach activities over the next five years, alongside Brazil, South Africa, United Arab Emirates, Colombia and Peru. Key link: www.internationaltransportforum.org

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6
54

ENVIRONMENT & ENERGY

Protecting the environment, addressing climate change and developing new sources of energy are major global challenges that are testing governments capacity for co-operation. The OECD has been working on these issues for many years and supports Southeast Asian policy makers in developing and implementing adequate domestic and international policy responses.

6.1 Environment
The OECD helps countries to design environmental policies that are both economically efficient and environmentally effective. Indonesia has participated in aspects of the OECDs work on environment since 2008, which includes supporting policy-makers in addressing the global challenges and in analysing the economic aspects of climate change and biodiversity conservation. Biodiversity is fundamental to sustaining life, providing critical ecosystem services, and regulating climate. OECD policy analysis focuses on the economic valuation of biodiversity and ecosystem services, and the use of economic incentives and market-based instruments to promote the conservation and sustainable use of biodiversity. This work supports the UN Convention on Biological

Diversity. The OECD publication Paying for Biodiversity: Enhancing the Cost-Effectiveness of Payments for Ecosystem Services identifies good practices in the design and implementation of Payments for Ecosystem Services programmes so as to enhance their environmental and cost-effectiveness. Did you know? Without renewed international efforts, 10% of global biodiversity will be lost between 2000 and 2030, according to the OECD's Environmental Outlook to 2030. Key links: www.oecd.org/env and www.oecd.org/env/biodiversity OECD Committee: Environment Policy Committee

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6.2 Climate Change

At the forefront of climate change analysis, the OECD promotes environmentally and economically efficient policies related to adaptation, mitigation, technology, financing and development.

Developing effective adaptation strategies for urban areas will be critical to delivering cost-effective policy responses to climate change. The OECD Cities and Climate Change report identifies strategies to increase cities contribution to adaptation. Such work may be of particular relevance to Indonesia, as Jakarta, its capital, is one of the 20 most exposed cities in the world to flooding linked to climate change.

Climate Change Adaptation and Development Co-operation

Climate change poses a serious challenge to all countries, but developing countries are the most vulnerable. In Southeast Asia, Indonesia and several other countries emit significant amounts of greenhouse gas emissions and are at the front-line in terms of climate change impacts on populations, natural resources and livestock. The 2009 OECD publication Integrating Climate Change Adaptation into Development Co-operation examines how to better integrate adaptation considerations within national planning processes and budgets. The reports policy advice, which highlights the need to enhance capacity development at all governance levels, can be of particular relevance to decision-makers in Southeast Asia. The OECD has also analysed adaptation costs and benefits in key climate sensitive sectors and has examined the potential for economic and policy instruments to create incentive for adaptation action. The 2008 report Economic Aspects of Adaptation to Climate Change: Costs, Benefits and Policy Instruments can provide guidance for Southeast Asian countries to better assess relevant implications. 56

Climate Change Mitigation and Financing LowCarbon Development

The OECD assesses how policies can be applied to cost-effectively reduce greenhouse gas emissions. The OECDs Environmental Outlook to 2050 compares the environmental and economic performance of a range of policies, including fossil fuel subsidy reform, the expansion of global carbon markets, and R&D investments. With regard to fossil fuel subsidies, the OECD and International Energy Agency (IEA) indicate that removing such subsidies would save money for governments, shift the economy away from activities that emit CO2, encourage energy efficiency, and promote the development of low-carbon technologies and renewable energy sources. The analysis also indicates, however, that targeted compensatory measures may be needed, particularly in emerging markets where some populations are most vulnerable to transitional costs associated with greening growth. The OECD also assists countries in their efforts to find lasting solutions to finance climate change action, including identification of best practices for leveraging private investment to achieve low-carbon, climate resilient development.

Climate Change Post-2012 Framework

The OECD and the IEA jointly form the secretariat of the Climate Change Expert Group on the United Nations Framework Convention on Climate Change. This Group provides analytical input to the international climate change negotiations and organises seminars that bring together developed and developing countries, including some Southeast Asian countries, to exchange information on climate change policies and issues. Did you know? The Indonesian government has decided to fully eliminate fossil fuel subsidies by 2014.

6.3 Water
The UN Millennium Development Goals commit governments to reducing by half the number of people who do not have access to water and sanitation, by 2015. This requires a significant increase in investment in the water sector and reform in water governance. The OECD Horizontal Water Programme aims to help policy makers in OECD, emerging and developing countries meet these challenges and to promote sustainable water management. OECD work is focused on: 1) water governance (overcoming obstacles to reforms, improving co-ordination among actors at different levels of government, and enabling private sector participation in the water and sanitation sector); 2) water financing (options for ensuring financial sustainability of water management); 3) policy coherence between water, energy and agricultural policies; and 4) agricultural water management. Indonesia and other Southeast Asian countries participated in the OECD Global Forum on Environment: Making Water Reform Happen, in Paris on 25-26 October 2011, to share experiences with other countries in water policy reforms. Key link: www.oecd.org/water OECD Committee: Environment Policy Committee Regulatory Policy Committee 57

Key links: www.oecd.org/env/cc/ccxg www.oecd.org/sd-roundtable www.oecd.org/env/cc/adaptation www.oecd.org/env/cc/econ/beyond2012 www.oecd.org/environment/outlookto2030 OECD Committee: Environment Policy Committee

6.4 Energy
The International Energy Agency (IEA) is at the heart of the global dialogue on energy, providing unique statistics, research, analysis and recommendations on energy policy. A sister organisation of the OECD, the IEA acts as an energy policy advisor to 28 member countries. Southeast Asia is of strategic importance to the IEA. In 2002, a Memorandum of Understanding was signed between the IEA and the ASEAN Centre for Energy to frame IEA-ASEAN co-operation programmes. From 2003 09, regional programmes focused on three areas: 1) energy statistics, analysis and training, 2) oil emergency preparedness, and 3) regional electricity and gas regulatory frameworks. Subsequently, a two-track approach was adopted which maintained some regional programmes but also developed bilateral programmes with interested ASEAN countries such as Indonesia, Singapore and Thailand. In 2008, the IEA and Indonesias Ministry of Energy and Natural Resource jointly released the report Energy Policy Review of Indonesia. More recently, the IEA undertook a best practice review for Thailands future emergency response policy and procedures. The ASEAN is set to play an increasingly important role in global energy markets in the decades to come. Energy consumption in the region is approaching that of the Middle East, and is set to continue growing rapidly, fuelled by rapid economic and population growth, 58

and by continuing urbanisation and industrialisation. A key challenge will be to secure access to energy to meet the regions growing demand at affordable prices and in a sustainable manner. On 20 September 2011, the IEA and the ASEAN signed an ASEAN-IEA Memorandum of Understanding to further boost and consolidate co-operation, agreeing to collaborate on a broad range of areas, including cost-effective policies that improve energy efficiency, environmental and climate change policy, and the development and deployment of clean energy technologies. This co-operation will involve activities such as training courses and secondments; joint studies in areas of mutual interest; and the implementation of pilot projects and exercises.

Did you know? ASEANs primary energy demand is expected to increase by 84% between 2008 and 2035.

Key link: www.iea.org

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Annexes
Southeast Asia-related OECD Publications
Publications are available for sale or preview via the OECD Online Bookshop (www.oecdbookshop.org), and for subscribing institutions via the OECD iLbrary (www.oecd-ilibrary.org).

Recent publications/reports
Health at a Glance: Asia/Pacific 2010 http://www.oecd.org/bookshop?9789264096189 http://dx.doi.org/10.1787/9789264096202-en Southeast Asian Economic Outlook 2010 http://www.oecd.org/bookshop?9789264087002 http://dx.doi.org/10.1787/10.1787/9789264096004-en OECD Economic Outlook, Volume 2011 Issue 1 http://www.oecd.org/bookshop?9789264063471 http://dx.doi.org/10.1787/eco_outlook-v2011-1-en Economic Policy Reforms 2011:Going for Growth http://www.oecd.org/bookshop?9789264092570 http://dx.doi.org/10.1787/growth-2011-en Growth and Sustainability in Brazil, China, India, Indonesia and South Africa http://www.oecd.org/bookshop?9789264090194 http://dx.doi.org/10.1787/9789264090200-en 60

Job-Rich Growth in Asia: Strategies for Local Employment, Skills Development and Social Protection http://www.oecd.org/bookshop?9789264110977 http://dx.doi.org/10.1787/10.1787/9789264110984-en Atlas of Gender and Development: How Social Norms Affect Gender Equality in Non-OECD Countries http://www.oecd.org/bookshop?9789264075207 http://dx.doi.org/10.1787/9789264077478-en OECD Science, Technology and Industry Outlook 2010 http://www.oecd.org/bookshop?9789264084674 http://dx.doi.org/10.1787/sti_outlook-2010-en Pensions at a Glance 2011: Retirement-income Systems in OECD and G20 Countries http://www.oecd.org/bookshop?9789264096288 http://dx.doi.org/10.1787/pension_glance-2011-en OECD Tourism Trends and Policies 2010 http://www.oecd.org/bookshop?9789264077423 http://dx.doi.org/10.1787/tour-2010-en

SMEs, Entrepreneurship and Innovation http://www.oecd.org/bookshop?9789264080317 http://dx.doi.org/10.1787/9789264080355-en The Criminalisation of Bribery in Asia and the Pacific http://www.oecd.org/bookshop?9789264097438 http://dx.doi.org/10.1787/9789264097445-en OECD Economic Surveys: Indonesia 2010 http://www.oecd.org/bookshop?9789264083400 http://dx.doi.org/10.1787/eco_surveys-idn-2010-en OECD Investment Policy Reviews: Indonesia 2010 http://www.oecd.org/bookshop?9789264087002 http://dx.doi.org/10.1787/9789264087019-en Higher Education in Regional and City Development: State of Penang, Malaysia 2011 http://www.oecd.org/bookshop?9789264089457 http://dx.doi.org/10.1787/9789264089457-en Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews: The Philippines 2011:Phase 1: Legal and Regulatory Framework http://www.oecd.org/bookshop?9789264114616 http://dx.doi.org/10.1787/9789264114623-en OECD Journal on Budgeting: Budgeting in the Philippines http://dx.doi.org/10.1787/budget-10-5km7rqpf57hb Global Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews: Singapore 2011: Phase 1: Legal and Regulatory Framework http://www.oecd.org/bookshop?9789264114630 http://dx.doi.org/10.1787/9789264114647-en Administrative Simplification in Viet Nam: Supporting the Competitiveness of the Vietnamese Economy http://www.oecd.org/bookshop?9789264096639 http://dx.doi.org/10.1787/10.1787/9789264096646-en

Main Economic Indicators: January Volume 2009 Issue 1 http://dx.doi.org/10.1787/mei-v2009-1-en-fr Pensions at a Glance: Asia/Pacific 2009 http://www.oecd.org/bookshop?9789264059771 http://dx.doi.org/10.1787/9789264059771-en Globalisation and Emerging Economies: Brazil, Russia, India, Indonesia, China and South Africa http://www.oecd.org/bookshop?9789264044814 http://dx.doi.org/10.1787/9789264044814-en Shaping Policy Reform and Peer Review in Southeast Asia: Integrating Economies amid Diversity, 2008 http://www.oecd.org/bookshop?9789264039445 http://dx.doi.org/10.1787/9789264039445-en OECD Economic Surveys: Indonesia 2008 Economic Assessment http://www.oecd.org/bookshop?9789264049017 http://dx.doi.org/10.1787/eco_surveys-idn-2008-en Energy Policy Review of Indonesia, 2008 http://www.oecd.org/bookshop?9789264048294 http://dx.doi.org/10.1787/9789264048294-en Fighting Bribery in Public Procurement in Asia and the Pacific http://www.oecd.org/bookshop?9789264046955 http://dx.doi.org/10.1787/9789264046955-en Mutual Legal Assistance, Extradition and Recovery of Proceeds of Corruption in Asia and the Pacific: Frameworks and Practices in 27 Asian and Pacific Jurisdictions Final Report, 2008 http://www.oecd.org/bookshop?9789264100411 http://dx.doi.org/10.1787/9789264043701-en Complementary and Private Pensions throughout the World 2008 http://www.oecd.org/bookshop?9789264048829 http://dx.doi.org/10.1787/9789264048829-en

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Anti-Corruption Policies in Asia and the Pacific: Legal and Institutional Reform in 25 Countries, 2007 http://www.oecd.org/bookshop?9789264041349 http://dx.doi.org/10.1787/9789264041349-en Budgeting in Singapore, OECD Journal on Budgeting: Volume 6 Issue 1, 2006 http://dx.doi.org/10.1787/budget-v6-art3-en Budgeting in Thailand, OECD Journal on Budgeting: Volume 5 No. 3, 2006 http://dx.doi.org/10.1787/budget-v5-art16-en Denying Safe Haven to the Corrupt and the Proceeds of Corruption, 2006 http://www.oecd.org/bookshop?9789264041370 http://dx.doi.org/10.1787/9789264041370-en

OECD Journal: General Papers: The future of Chinese and SouthEast Asian migration to OECD countries http://dx.doi.org/10.1787/gen_papers-v2009-art8-en IEA Energy Papers: Deploying Renewables in Southeast Asia: Trends and Potentials http://dx.doi.org/10.1787/5kmd4xs1jtmr-en OECD Development Centre Policy Insights: Regional Integration in Southeast Asia: Better Macroeconomic Co-operation Can Mitigate http://dx.doi.org/10.1787/225082730565 OECD Local Economic and Employment Development Working Papers: Employment and Skills Strategies in Southeast Asia: Setting the Scene http://dx.doi.org/10.1787/5kmbjglh34r5-en OECD/ITF Joint Transport Research Centre Discussion Papers: The Singapore Experience: The evolution of technologies, costs and benefits, and lessons learnt http://dx.doi.org/10.1787/5kmjp6fk71f6-en

Freely available on the OECD iLibrary

OECD Economics Department Working Papers: Phasing Out Energy Subsidies in Indonesia http://dx.doi.org/10.1787/5km5xvc9c46k-en OECD Economics Department Working Papers: Tackling the Infrastructure Challenge in Indonesia http://dx.doi.org/10.1787/5km5xvc1kk47-en OECD Economics Department Working Papers: Does Fiscal Decentralisation Strengthen Social Capital?: Cross-Country Evidence and the Experiences of Brazil and Indonesia http://dx.doi.org/10.1787/5km347ntdnxn-en OECD Economics Department Working Papers: Long-term growth and policy challenges in the large emerging economies http://dx.doi.org/10.1787/5kmh79tm3n9r-en

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OECD Tokyo Centre

Established in 1973, the OECD Tokyo Centre serves as an information resource for OECD publications and public outreach across the Asia and Pacific region, with a particular focus on the ASEAN countries. The Centre regularly organises the following: Policy Forums that include themes such as regulatory reforms in ASEAN countries, Green Growth, Innovation, the International Migration Outlook, and the Southeast Asian Economic Outlook. Press Conferences for the release of flagship publications, such as the Southeast Asian Economic Outlook. Press Briefings for journalists about recent OECD studies and related policy recommendations. Visits to academic libraries in ASEAN countries and seminars on OECD publications and online services. Participation in selected exhibitions such as Online Information Asia Pacific 2011 in Hong Kong and Book Fairs in Malaysia, Thailand and Indonesia. Promotion of OECD publications in co-operation with more than 10 distributors in each ASEAN member country. For more information or enquiries, please contact: OECD Tokyo Centre Nippon Press Center Bldg. 3F 2-2-1 Uchisaiwaicho, Chiyoda-ku, Tokyo 100-0011 Japan Tel: (81-3) 5532-0021 Fax: (81-3) 5532-0035 Email: tokyo.contact@oecd.org

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OECDs Engagement with Southeast Asian Economies: A Snapshot (November 2011)

The OECD offers selected partners the possibility to adhere to OECD instruments and to participate in OECD Bodies. For non-members, participation in OECD Committees provides not only access to policy advice and analysis in free and open exchanges, but also an opportunity to influence the thinking of policy makers among OECD members and the development of new international instruments.

Full Participants
OECD Bodies, Projects and Instruments Governing Board of the Development Centre Freedom of Investment project (Investment Committee) Global Forum on Transparency and Exchange of Information for Tax Purposes Joint Meeting of the Chemicals Committee and the Working Party on Chemicals, Pesticides and Biotechnology (Environment Policy Committee) - for MAD issues only Indonesia Malaysia Singapore Thailand Philippines Vietnam

Working Group on Good Laboratory Practice Working Group of National Co-ordinators of the Test Guideline Programme

64

Regular Observers
OECD Bodies, Projects and Instruments Committee for Information, Computer and Communications Policy and its subsidiary bodies Competition Committee Fisheries Committee Healthcare Quality Indicators Expert Group (Health Committee) Programme for International Student Assessment (PISA) 1 Steel Committee Taskforce for the Safety of Novel Foods and Feeds (Working Party on Chemicals, Pesticides and Biotechnology) Working Group on Good Laboratory Practice Working Group of National Co-ordinators of the Test Guideline Programme Working Party on Aid Effectiveness (Development Assistance Committee) Working Party on SME and Entrepreneurship (Committee on Industry, Innovation and Entrepreneurship) Indonesia Malaysia Singapore Thailand Philippines Vietnam

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OECD Instruments
OECD Bodies, Projects and Instruments Bologna Charter on SME Policies Council Decisions on Mutual Acceptance of Data in the Assessment of Chemicals Declaration on Fostering the Growth of Innovative and Internationally Competitive SMEs (Istanbul Declaration) Declaration for the Future of the Internet Economy (Seoul Declaration) Guidelines on the Security of Information Systems and Networks International Standards for Transparency and Exchange of Information for Tax Purposes Paris Declaration on Aid Effectiveness and Accra Agenda for Action
1

Indonesia

Malaysia

Singapore

Thailand

Philippines

Vietnam

3 2

Singapore, Thailand and Indonesia participate in PISA and have observers on the PISA Governing Board. Malaysia participates but has no observer on the Board.
2

Provisional adherent. Indonesia also adheres to the Convention on Mutual Administrative Assistance in Tax Matters.

For more information on participation in OECD Bodies and Instruments, please visit: www.oecd.org/globalrelations

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OECD-Asia Networks and their Participants

OECD-Asia Network OECD/ADBI Roundtable on Capital Market Reform in Asia ('Tokyo Roundtable') Asian Roundtable on Corporate Governance Participants India, Indonesia, Japan, Korea, Malaysia, P.R. China, Philippines, Singapore, Thailand, Vietnam Singapore, Thailand, Malaysia, Hong Kong (China), Chinese Taipei, P.R. China, Indonesia, India, Korea, Vietnam, Philippines, Pakistan, Bangladesh Australia, Bangladesh, Bhutan, Cambodia, P.R. China, Cook Islands, Fiji Islands, Hong Kong (China), India, Indonesia, Japan, Kazakhstan, Korea, Kyrgyz Republic, Macao, Malaysia, Mongolia, Nepal, Pakistan, Palau, Papua New Guinea, The Philippines, Samoa, Singapore, Sri Lanka, Thailand, Vanuatu, Vietnam OECD and APEC member countries All OECD member countries, Bangladesh, Brunei Darussalam, Cambodia, Chinese Taipei, East Timor, Hong Kong (China), Indonesia, Lao PDR, Macao (China), P.R China, Philippines, Singapore, Sri Lanka, Thailand, Vietnam Australia, Chinese Taipei, Hong Kong (China), India, Indonesia, Japan, Korea, Malaysia, P.R. China, Philippines Singapore, Thailand, Vietnam Date of establishment 1999

1999

ADB/OECD Anti-Corruption Initiative for the AsiaPacific

1999

APEC/OECD Cooperative Initiative Regulatory Reform Network of Senior Budget Officials for Asia

2000 2001

OECD-Asia Network on Corporate Governance of State-Owned Enterprises

2006

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About the OECD

The OECD is an intergovernmental organisation, established in 1961, that today brings together 34 member countries. The OECDs core mission is to assist governments to design and implement more effective domestic policies while helping them work together in a co-ordinated way towards a stronger, cleaner and fairer global economy. Through a network of more than 250 specialised committees and working groups, the OECD provides a forum where member and partner governments can compare policy experience, seek answers to common problems, identify good practices and set global standards. Dialogue, search for consensus and peer review by governments are at the heart of this multidisciplinary approach. The OECD has an array of expertise across a wide range of public policy areas including agriculture, competition, education, employment, migration and innovation, and is also one of the worlds largest and most reliable sources of comparable economic and social data. Supporting the G20 process since December 2008, alongside other international organisations, the OECD provides contributions to discussions on the 'Framework for a Strong, Sustainable and Balanced Global Growth', taxation, corruption, employment and skills development, trade and investment protectionism and development. The OECD is expanding its membership and broadening its relations with over one hundred economies worldwide as it 68 strives to become more representative and sensitive to the many paths that lead to growth and development. In 2010, the OECD integrated four new members: Chile, Israel, Slovenia and Estonia, and is currently in accession talks with the Russian Federation. The OECD is also deepening its partnership with five major emerging economies: Brazil, India, Indonesia, Peoples Republic of China, and South Africa. Celebrating its 50th anniversary in 2011, the OECD's priorities today are to help restore confidence in markets through improved public and corporate governance; to foster and support new sources of growth through innovation and 'green growth' strategies; to help people of all ages develop the skills for the jobs of tomorrow; to address growing inequalities through targeted social policies; and to promote coherent policies for development.

This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

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The Global Relations Secretariat (GRS) develops and oversees the strategic orientations of the OECDs global relations with non-member economies. The GRS is the principal contact point at the OECD for non-members.

OECD Global Relations Secretariat 2 rue Andr Pascal, F-75775 Paris Cedex 16, France Tel.: +33 1.45.24.82.00, Fax: +33 1 45 24 91 77 E-mail: ccnmcont@oecd.org URL: www.oecd.org/globalrelations

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