REPUBLIKA.CO.ID, JAKARTA -- The impact of the British Exit (Brexit) from the European Union will not be significant on Indonesia's economy, an economic observer from the Institute for Development of Economics and Finance Heri Ahmad Firdaus stated.
"Indonesia does not need to worry as (Brexit) will not significantly affect the nation. The European Union will surely be affected, and it will also have a domino effect on developing countries, including Indonesia, but the economy will become stable in the long term," Ahmad noted when contacted by Antara on Friday.
According to Ahmad, Great Britain is one of Indonesia's export destination countries in the EU, but the country still exports to other nations, such as Germany and Spain.
Moreover, the United Kingdom will face labor problems, given that one of the fundamental principles of the European Union is related to the free movement of workers in the union that will pose a hurdle.
Some 800 thousand people from Poland as well as those from other European Union countries work and live in the United Kingdom.
Workers from outside the United Kingdom will potentially move to other countries, such as France, Germany, or the Netherlands. It is forecast that Britain will face difficulties in finding new human resources to drive the domestic economy.
Workers staying in the United Kingdom are also not expected to receive the same treatment as before. For instance, they will no longer be able to avail benefits and social assistance.
Labor issues are certainly judged to singlehandedly have an impact on the British economy.
"The industry in the United Kingdom will grow at a slower pace, which means the demand for British imports will also slow down. Hence, our exports to the United Kingdom will also be affected," Ahmad pointed out.
Earlier, Coordinating Minister for Economic Affairs Darmin Nasution had said, with the United Kingdom exiting from the European Union, Indonesia could eventually establish a bilateral free trade agreement with Great Britain.
The government is currently completing the negotiation process with the EU on the European Union Comprehensive Economic Partnership Agreement in order to boost international trade.
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