Brexit may affect Indonesia-EU negotiation process on CEPA
The UK's decision to depart from the EU is likely to delay the negotiation process of the Indonesia-EU Comprehensive Economic Partnership Agreement (IE-CEPA), according to Indonesian Trade Minister Thomas Lembong.
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The minister made the remark in the margin of a meeting of the Indonesian House of Representatives, reported Jakarta Post on June 28.
Thomas said Brexit was an event that would significantly affect the global economy, particularly the UK and the EU.
According to the minister, the Indonesian Government still wants to continue the IE-CEPA negotiation, however, the process is likely to be affected as there is a great possibility that EU Commission will now focus on its “divorce” step with the UK.
The Indonesian Government will coordinate with the EU Embassy in Indonesia to deal with the issue and keep monitoring the progress of Brexit, Thomas added.
Regarding the impact of Brexit on trade ties between Indonesian and the UK, he said that it will depend on the terms of the UK’s departure from the 28-nation bloc – primarily whether the country will leave or remain in the EU single market.
Earlier, Indonesian Foreign Minister Retno Marsudi announced that Brexit’s direct impacts will not impact much on Indonesia’s politics.
She added that the prioritised cooperation and relationship between Indonesia and the EU will not change.
Britain has been a strategic partner of Indonesia since 2012. Trade value between the two countries reached US$2.35 billion in 2015, while investment from Britain in Indonesia reached US$503.2 million.
UK Ambassador to Indonesia Moazzam Malik also affirmed that the UK’s decision to leave the EU will not affect the bilateral ties between the two countries.
