No Brexit Impact on Indonesia-UK Trade, Finance Minister Says
24 June 2016 15:40 WIB
TEMPO.CO, Jakarta - Finance Minister Bambang Brodjonegoro said the UK's exit from the European Union will not interfere with trade relations between Indonesia and Britain. Any impact on Indonesia's financial market will also be brief.
"Every symptom in the financial sector will be temporary, and there is no issue concerning trade," Bambang said Friday, June 24.
UK's vote to exit the EU shocked the nation's economy instantly. The British pound sterling took an immediate plunge to be traded for US$1.3525 a quid, Reuters reported, the lowest rate since 1985.
Bambang said the British exit or 'Brexit' sentiment will be all over the global financial world until the market finds balance. "Over the next few days, currency rates, stock indexes and state bonds will come under pressure," the Minister predicts.
The Minister also said that the EU will lose its bargaining power considering the UK is its second biggest GDP producer after Germany.
"The European Union will lose its power as an economic group, and it will lose the potentials developed with other countries," Bambang said.
PUTRI ADITYOWATI
