JAKARTA – Indonesia has denied allegations that it will establish diplomatic ties with Israel to gain membership to the Organisation for Economic Cooperation and Development (OECD).

Israeli newspaper Yedioth Ahronoth reported on April 11 that Indonesia had agreed to normalise its ties with Israel. The media outlet said Jakarta needed Israel to approve its request to join the OECD.

Yedioth Ahronoth said the agreement was reached after three months of secret talks between Israel, Indonesia and the 38-nation OECD.

Under the agreement, Indonesia, the world’s most populous Muslim country, would undertake to normalise its ties with Jerusalem.

The media outlet cited a recent letter from OECD secretary-general Mathias Cormann to Israel’s Foreign Minister Israel Katz, saying any future decision to accept Indonesia as a member of the organisation would require unanimous agreement among all the members, including Israel.

Mr Katz, in a letter to Mr Cormann, was quoted by Yedioth Ahronoth as saying he expected a positive change in Indonesia’s policy towards Israel, “and in particular a renunciation of the discriminatory policy towards Israel, towards the establishment of full diplomatic relations between the parties”.

Another media outlet, The Times of Israel, confirmed the report, citing an Israeli official who spoke on condition of anonymity about Indonesia’s possible normalisation of ties with Israel. 

There was no official comment from OECD on the media reports.

Indonesian Foreign Ministry spokesman Lalu Muhamad Iqbal said Indonesia’s stance towards Palestine remains unchanged, and it maintains its “unwavering support for Palestine’s independence” by way of a two-state solution. This refers to Palestine and Israel existing as two independent states.

“Until today, there are no plans to open diplomatic ties with Israel, particularly amid Israel’s atrocities in Gaza,” Mr Lalu said on April 11. 

“Indonesia will always be consistent to be at the forefront of defending the rights of the Palestinians,” he added. 

Indonesia has strongly condemned Israel’s war in Gaza and backed South Africa’s litigation against Jerusalem at the International Court of Justice in The Hague.

On Feb 20, the OECD said it would begin accession talks with Indonesia following a decision by its ruling council.

The OECD council, which consists of all member countries, including Israel, sets the terms, conditions and process for accession. Unanimous agreement from all existing members is necessary to accept new members.

Ms Julia Lau, senior fellow and co-coordinator of the Indonesia Studies Programme at ISEAS – Yusof Ishak Institute, said the current situation in Gaza will not permit the Indonesian government to “contemplate such a dramatic move” such as expediting formal diplomatic relations with Israel. 

“That would be political suicide for the current administration and cause severe tensions,” she told The Straits Times.

“It would also not be in keeping with Indonesian policy so far, calling for ceasefire and humanitarian assistance to Palestine in addition to a two-state solution.”  

The Indonesian Air Force, in cooperation with their Jordanian counterpart, air-dropped humanitarian aid comprising 3,200kg of food and medicine in Gaza on the eve of Hari Raya Aidilfitri on April 9.

Dr Dinna Prapto Raharja, associate professor of international relations at Bina Nusantara University, shared a similar view, saying that given the continuing violence in the Gaza Strip, the Indonesian government would not normalise ties with Israel. 

She said the media reports might be used by certain Israeli hardline groups, which tend to discredit Indonesia. 

“Every time Indonesia actively seeks information about Palestine and takes measures towards Palestine, they issue surprising statements. But we should not buy them,” she added. 

Dr Dinna said such reports might be seen as efforts to break “Indonesia’s persistent campaign to humanise Palestinians and set Palestine free”.

Ms Lau said the OECD issue might be used by certain groups in Israel to “pressurise Jakarta into a corner”. But if this is the case, it would backfire on Israel more than anything, she added.

“The Israelis would know that world opinion is increasingly arrayed against them, even among Western governments that have long had positive ties with Israel.” 

There have been reports in the past about Indonesia’s plan to establish ties with Israel, including one in February, but the Indonesian authorities denied them. 

In 2016, a report by The Times of Israel quoted Prime Minister Benjamin Netanyahu as saying: “It’s time for there to be official relations between Indonesia and Israel. We have many opportunities for bilateral cooperation, especially in the fields of water technology and high-tech.”

But the Indonesian government rebuffed Mr Netanyahu’s call for closer relations.

“We want to assert that Indonesia’s support and efforts to push for the independence of Palestine will not change,” The Jakarta Post quoted Foreign Ministry spokesman Arrmanatha Nasir as saying at the time.

In 2022, former Indonesian vice-president Jusuf Kalla suggested that the government open diplomatic ties with Israel to enable Indonesia to act as a mediator between Israel and Palestine, The Jakarta Post reported.

In 2023, Indonesia lost its bid to host the soccer U-20 World Cup championship due to a domestic controversy over Israel’s participation.

On Indonesia’s process to become an OECD member, Mr Lalu said the process will require “quite a long time” and Indonesia will adopt the road map for its OECD membership in May. Indonesia would be the OECD’s first South-east Asian member.

“The duration of time needed by each country to fully achieve full membership in the OECD varies. All depends on its readiness,” he said. 

Indonesia, South-east Asia’s largest economy, hopes to finish the process of joining the group within two or three years, Coordinating Minister for Economic Affairs Airlangga Hartarto said on Feb 28. 

Its participation in the OECD, which requires its institutional reforms to comply with the group’s high standards, is seen as supportive to its goal to become a developed country by 2045, when it marks its 100th anniversary of independence.