REPUBLIKA.CO.ID, JAKARTA -- The United Kingdom's decision to leave the European Union (EU), reflected in the British Exit (Brexit) referendum results, offered several advantages for Indonesia, Coordinating Minister for Political, Legal and Security Affairs Luhut Binsar Pandjaitan stated.
"The Brexit can have positive or negative impacts on Indonesia. The government must be aware of a possible effect of Great Britain's exit after the implementation of the tax amnesty law," Pandjaitan stated after a meeting with Vice President Jusuf Kalla here on Monday.
The minister noted that the government should continue to improve the country's investment climate and security conditions in an attempt to attract foreign investors.
"The flow of money will increase in properties or other businesses. If the government can improve the country's investment climate, Indonesia will be one of the best destinations for foreign investors to invest their money," the minister stated.
The minister revealed that Indonesia could offer investment in the financial, infrastructure, and hydropower sectors.
"It is too early to comment on the consequences of Brexit. However, the government should prepare and calculate the implications of Brexit," the minister noted.
Vice President Jusuf Kalla had earlier stated that Great Britain's decision to leave the EU would lead to an increase in protectionist tendencies in Europe where nationalist sentiments of British and European regionalism abound.
"The exit may mean people wanting to be more nationalistic (for Britain), but protectionism, too, is definitely on the rise among them (EU countries)," Kalla stated here on Friday.
Vice President Kalla stressed that for six decades since the founding of the EU, all member states had enjoyed a free and open economy among themselves, but with the Brexit, the EU would become protective regarding British exports and vice versa.
"England will face problems in selling its products if rules are imposed, and European goods will not be able to gain free entry into the United Kingdom as it will adopt a protective approach," he argued.
Furthermore, the vice president pointed out that Brexit can also shake the confidence of foreign investors investing in the United Kingdom.
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