TEMPO.CO, Jakarta - Bank Indonesia (BI) made sure that Britain's exit from the European Union (EU) will have limited impact on the domestic economy. The central bank also made sure that Indonesia's economy can withstand any negative outcome of the UK's referendum result.

"Our economy can withstand the Brexit decision," BI spokesman Tirta Segara said in a press release on Sunday, June 26, 2016.

Amid the weakened markets in Europe and Asia, the rupiah can maintain its stability, traded for Rp 13,296 per US dollar as per Friday's closing.

Over at the stock market, the Jakarta Composite Index (JCI) only experienced a slight correction compared to other Asian countries like India, Thailand, and South Korea. Last week, the JCI only slipped 39.74 points to close at 4,834.57.

Despite projections of little impact, Samuel Asset Management economist Lana Soelistianingsih suggests the government to remain cautious. She said that UK's exit will cause the EU economy to fluctuate for about two years, affecting investments.

"Banks will tend to refrain from lending. They will consolidate with existing liquidity and risks," Lana said last week. This means that Indonesia's projects that require funds from overseas investors are likely to stall.

Chris Kanter, member of Chamber of Commerce's (Kadin) Advisory Council, said that Brexit threatens the free trade agreement between Indonesia and the European Union. Indonesia has recently initiated the Closer Economic Partnership Arrangement (CEPA) agreement with the EU, and the recent events "will toughen negotiations."

Chris predicts that the CEPA discussion, which was initially expected to be completed in a year or two, will be halted. "We might have to wait four or five years for it to happen," Chris said.

GHOIDA RAHMAH | VINDRY FLORENTIN