Brexit Affects Free Trade Agreement Between Indonesia and EU
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Kamis, 1 Januari 1970 07:00 WIB
TEMPO.CO, Jakarta - Advisory Council of the Indonesian Chamber of Commerce and Industry (Kadin) Chris Kanter said the result of the Brexit referendum which leads to the exit of the United Kingdom from the European Union des not have a direct impact on Indonesia.
However, these results threaten the free trade agreement between Indonesia and the European Union (EU).
Chris said that Indonesia has recently initiated the Closer Economic Partnership Arrangement (CEPA) agreement with the European Union.
"With Brexit, negotiations would be difficult," Chris told reporters on Saturday (25/6).
According to Chris, the EU countries will surely be cautious after the Brexit.
The agreement, initially targeted to be completed 1-2 years, Chris said will not be achieved.
"Maybe in 4-5 years, it can be done," he said.
Chris said that CEPA is very important to increase Indonesia's exports because a number of exports were hampered by regulations.
With CEPA, Indonesia's exports is expected to be easier to get to the European market.
VINDRY FLORENTIN
