Indonesia Believes Brexit will Not Affect Bilateral Relations

TEMPO.CO, Jakarta - Indonesia believes the result of the British referendum (Brexit) on leaving the European Union would not affect bilateral relations and both countries would continue to foster cooperation in various strategic areas.

Foreign Affairs Retno Marsudi said here on Friday that Indonesia was closely studying the process and the results of the referendum, carried out in the UK on June 23, 2016. The referendum reflected the will of the majority of the British people.

Retno Marsudi, in a press statement received here on Friday, stated that the results of the referendum will give birth to a new political and economic order in the UK and Europe.

However, the direct impact of the referendum will be seen over the next two years.

The result of the referendum in the UK are not necessarily directly applicable, since Article 50 of the treaty of the European Union must be enabled and the process of negotiations between the UK and the European Union must take place to agree on the Withdrawal Agreement, affirmed Foreign Minister Retno.

Retno added that UK's relations and the EUs future will be determined and set in the Withdrawal Agreement. Related issues concerning trade tariffs, the freedom of movement of people, the financial arrangements and the legal status of English in various international agreements the EU has with other countries will be determined in the Withdrawal Agreement, noted the Foreign Minister.

In terms of the referendums direct impact on Indonesian politics, it will be very limited.

Indonesian-English partnership priority and the partnership between Indonesia and the European Union will not change.

"The impact of a number of agreements between Indonesia and the EU and the UK, such as Britains status in Indonesia-European Union Comprehensive Economic Partnership Agreement (Indonesia-EU CEPA) and licensed Forest Law Enforcement, Governance and Trade (FLEGT) will be connected to the approval of the Withdrawal Agreement between the UK and the EU," the Foreign Minister explained.

Britain is a strategic partner of Indonesia since 2012. 

The value of trade between the two countries reached US$ 2.35 billion (2015) and the value of British investment in Indonesia reached US$ 503.2 million (2015). A total of 69,798 British tourists visited Indonesia in 2015.

ANTARA